Full text of Federal Reserve Bulletin : May 1975

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M AY

1975

FEDERAL RESERVE

BULLETIN




A c o p y o f th e F e d e r a l R e s e r v e B
a d d itio n a l c o p ie s
U n ite d

m ay

secu re

is s e n t to e a c h m e m b e r b a n k w ith o u t c h a r g e ; m e m b e r b a n k s d e s ir in g

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at a s p e c ia l

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$ 1 0 .0 0

a n n u a l ra te.

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r e g u la r

s u b s c r ip t io n

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in

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or $ 2 .5 0

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FEDERAL RESERVE BULLETIN
N U M B E R 5 □ V O L U M E 61 □ M A Y 1975

CONTENTS

A

263 Consumer Lending at
Commercial Banks

1 Financial and Business Statistics

273 The Current Recession
in Perspective

A 1 Contents
A 2 U.S. Statistics
A 58 International Statistics

280 Statements to Congress

A 76 Board of Governors and Staff

299 Record of Policy Actions
of the Federal Open Market Committee

A 78 Open Market Committee and Staff;
Federal Advisory Council

306 Law Department

A 79 Federal Reserve Banks and Branches

335 Announcements

A 80 Federal Reserve Board Publications

339 Industrial Production

A 82 Index to Statistical Tables
A 84 Map of Federal Reserve System
Inside Back Cover:
Guide to Tabular Presentation
Statistical Releases: Reference

E D IT O R IA L C O M M IT T E E

J. Charles Partee
Ralph C. Bryant

Lyle E. Gramley
Joseph R. Coyne

Robert Solomon
Elizabeth B. Sette

The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial com m ittee. This
com mittee is responsible for opinions expressed except in official statements and signed articles. Direction for
the art work is provided by M ack R ow e.




Consumer Lending at Commercial Banks
Commercial banks continue to supply a signifi­
cant volume of funds to finance consumer ex­
penditures for automobiles, nonautomotive
consumer goods, housing, and other personal
items, even though the rate of lending for
such purposes declined more rapidly during
1974 at banks than at other sources of consumer
funding. To some extent, the decline at com­
mercial banks reflected the increasing unwill­
ingness of large banks to supply such credit
after the first quarter of last year. By early 1975,
however, these banks were showing a greater
inclination than previously to extend not only
short- and intermediate-term consumer credit
but also long-term home mortgage loans. But
demand for consumer financing remained slack
through the winter quarter, except in February
when automobile credit expanded as a result of
new-car buying stimulated by the automobile
manufacturers’ price rebate programs.
The contraction in bank lending during the
fourth quarter of 1974, and again—but to a
lesser extent—in the first quarter of 1975, oc­
curred as consumers liquidated total outstanding
instalment and noninstalment debt at the highest
rate in more than 30 years. In addition, there
was a further slowing in the over-all rate of
growth in mortgage credit for 1- to 4-family
residences—reflecting the depressed activity in
markets for both new and existing homes.
Notwithstanding the recent sharp decline in
consumer lending by commercial banks, these
institutions still held almost one-half of the
consumer instalment credit outstanding in the
United States at the end of April, a little more
than one-third of the noninstalment consumer
credit, and about one-fifth of the mortgage credit
on 1- to 4-family structures. While the propor­
tions for both instalment and noninstalment
credit are down somewhat from the record levels
of late 1972-early 1973, the share of home
mortgage financing has changed little since then.




Instalment lending by commercial banks has
been most prominent for three types of con­
sumer financing—new and used automobiles,
“ other consumer goods,” and personal loans.
Home improvement credit, the fourth major
type of instalment financing, constitutes only a
small proportion of the consumer loan portfolios
at commercial banks. Of the major types of
instalment credit held by banks, lending on bank
credit cards—a component of the “ other con­
sumer goods” category—and on check-credit
plans—a component of personal loans—showed
the largest relative growth during 1974. This
was particularly true of bank-card credit.
On the other hand, automobile credit, after
a period of rapid expansion during 1972 and
the first half of 1973, has contracted quite
sharply since introduction of the 1975-model

C o n su m e r lending a t c o m m ercial b an k s
Billions of dollars
INSTALMENT CREDIT
112

II

JlM
SB S 4

NONINSTALMENT CREDIT
-■ M...■...1...■. a J - ■i—i .

...^ .....n —

HOME-MORTGAGE CREDIT
1-TO 4 -F A M I L Y U N I T S

12

I
1971

1973

n

.
15

Quarterly net change in outstandings at seasonally adjusted
annual rates.

264

Federal Reserve Bulletin □ May 1975

cars last fall. Noninstalment credit, mainly in
the form of single-payment loans to consumers,
has also decreased substantially in recent
months.
Commercial bank holdings of home mortgage
credit are exceeded only by those of savings
and loan associations, which account for more
than one-third of the total. On a seasonally
adjusted basis, net lending by commercial banks
on construction and permanent mortgages se­
cured by 1- to 4-family properties declined
markedly during the second half of 1974. In
percentage terms, the decline in mortgage loans
at banks was even greater than the reduction
at nonbank thrift institutions, despite the large
outflows of savings deposits experienced by the
thrift institutions last summer when short-term
market interest rates rose sharply. Mortgage
lending by banks declined further in the first
quarter of 1975, but net mortgage debt forma­
tion picked up at the nonbank thrift institu­
tions—particularly at savings and loan asso­
ciations—as inflows of deposits strengthened.
Although their deposit inflows also improved
during early 1975, commercial banks concen­
trated on building liquid asset balances at a time
of generally slack loan demands.

IN S T A L M E N T C R E D IT
During the postwar period, fluctuations in the
rate of change in consumer instalment credit
outstanding at short and intermediate term have
tended to lead cyclical changes in aggregate
business activity, and the pattern of the recent
contraction has been no exception. On a sea­
sonally adjusted basis, the peak growth in in­
stalment credit outstanding at all lenders—at a
record annual rate of $24 billion—occurred
during the first quarter of 1973, somewhat be­
fore the economy as a whole reached its cyclical
high.
The peak in instalment credit growth at com­
mercial banks coincided with that for total in­
stalment credit, and banks accounted for almost
$12 billion of the over-all increase in that
quarter—one-half of the total. By the fourth
quarter of 1974, however, growth in total in­
stalment credit outstanding had become nega­




tive; that is, repayments on existing indebt­
edness exceeded new extensions of credit—at
a seasonally adjusted annual rate of $3.2 billion.
On balance, all of the fourth-quarter decline in
instalment credit occurred at commercial banks,
where the amount outstanding declined at an
annual rate of more than $4 billion.
The reduced rate of growth in instalment
credit outstanding after the first quarter of 1973,
as well as the contraction during the fourth
quarter of 1974 and in the first quarter of 1975,
can be attributed to a number of factors. On
the demand side, consumer purchasing power
has been reduced because of the rise in unem­
ployment, the slowing of wage rate increases,
and the continuing, though diminishing, ad­
vance in the consumer price index. Measures
of consumer sentiment and intentions-to-buy fell
to exceptionally low levels near the end of 1974.
In addition, a near-record proportion of dispos­
able personal income had already been commit­
ted to the repayment of existing instalment
loans. As a result, consumer demand for major
durable goods that generally require financing,
such as mobile homes, automobiles, and furni­
ture and major appliances, declined markedly
after mid-1974. Automobile sales dropped from
a level that had already been depressed by the
energy shortage and high gasoline prices.
While demand factors have probably had the
most influence on recent changes in consumer
credit outstanding, supply considerations have
also been important. Under the general condi­
tions of credit restraint that prevailed throughout
much of 1974, lenders appeared less willing to
extend new credit. Consumer loan rates ad­
vanced somewhat after a lag that may have been
related in part to the existence of the Committee
on Interest and Dividends during the early
months of 1974. And by late in the year rates
for some types of consumer loans reached legal
ceilings in a number of States. But despite rising
consumer loan rates, the spread narrowed during
the summer between these rates and the cost
of funds to lenders. As a result, net returns
available from consumer financing declined rel­
ative to other lending opportunities, especially
for banks. In addition, the record postwar level
of consumer loan delinquencies warranted cau­
tion on the part of lenders.

Consumer Lending at Commercial Banks

265

Delinquency rates at commercial banks
Per cent

A

u t o m o b il e

C

r e d it

Commercial banks still provide most of the
financing for consumer purchases of new and
used cars, even though the bank share of out­
standing automobile credit declined during 1974
and in the early part of 1975. Banks currently
hold nearly three-fifths of the automobile instal­
ment credit outstanding in the United States;
most of the remainder is held by the subsidiary
finance companies of automobile manufacturers
and by credit unions, both of which have en­
larged their share of the automobile credit mar­
ket since late 1973.
Commercial banks sharply reduced their vol­
ume of consumer new-car financing during
1974, both absolutely and relative to other
lenders. While total unit sales of new cars—
including imported models and domestic fleet
sales—declined 23 per cent during 1974 from
the previous year, the number of new cars
financed by banks fell 26 per cent, and the dollar
volume of credit extensions was off 19 per cent.
As is typical in periods of lessened willingness
to extend consumer credit, the percentage de­
clines in the number of units financed and in
the dollar volume were down somewhat more
for direct new-car loans—29 and 23 per cent,
respectively—than for the larger category of
contracts purchased from retail dealers, which
declined 23 per cent in number and 17 per cent
in dollar volume.
Possible explanations for the lesser volatility
in purchased-paper volume can be found in the
relationship between banks and auto dealers, as
well as in other institutional factors. During
periods of limited credit availability such as in




Per cent

Per cent

1974, commercial banks may continue to ac­
quire consumer automobile finance contracts
from cooperating dealers, either because of prior
commitments—possibly related to dealer inven­
tory-financing agreements—or because of a de­
sire to maintain business relationships and
dealer balances for long-run profit. Also, banks
may find it relatively easy to deter direct lending
by reducing their consumer loan promotion and
their advertising efforts. Conversely, when
funds become more available, banks may ex­
pand consumer lending activity more readily by
increasing their advertising and by rationing
direct loans less strictly than by purchasing
additional automobile paper from participating
dealers.
During 1973 and through the first quarter of
1974, banks commanded a relatively stable
share—around 63 per cent—of the volume of
credit extended for new and used cars com­
bined. But the bank share of the auto credit
market began to slide in the second quarter of
last year, and by December it had fallen to just
over 55 per cent. The drop was particularly
marked during the fourth quarter—almost 3
percentage points—as automobile credit exten­
sions at banks contracted as much as 20 per
cent on a seasonally adjusted basis.
While the bulk of the drop in automobile
credit volume at commercial banks is obviously
related to the depressed level of car sales, other
factors account for the decline in the bank share
of the market. In part, the decline came in
reaction to the vigorous expansion of automo­
bile financing by banks that had occurred after
1970. Total automobile credit extended by
banks expanded 66 per cent between the end

266

Federal Reserve Bulletin □ May 1975

A u to m o b ile fin a n c in g a t com m ercial b an k s
Thousands of units

Billions of dollars
EXTENSIONS OF CREDIT

NUMBER FINANCED

Purchased
paper

Purchased
paper

Hundreds of dollars
AVERAGE NOTE
Purchased
paper
Direct
loans

Direct loans

Direct loans

USED CARS
Purchased paper

Purchased paper
Purchased paper
Direct loans

Direct loans
Direct loans

Q u a r te r ly t o t a ls f o r e x t e n s io n s o f c r e d it a n d n u m b e r o f c a r s f in a n c e d . A v e r a g e n o t e in c lu d e s f in a n c e c h a r g e s .

of 1970 and the end of 1973. In contrast, finance
companies—the second largest source of this
type of financing—raised auto credit extensions
only by 29 per cent during the same period.
With such a sharp expansion in lending,
banks apparently made loans to some higherrisk borrowers. Delinquency rates on automo­
bile loans at commercial banks trended upward
throughout most of 1972 and 1973 while re­
maining stable or rising only moderately at other
financial institutions. The incentive for banks to
restructure their automobile loan portfolios in­
creased during 1974 as delinquencies rose even
more sharply at banks than at other lenders.
Because of strong competing demands for
credit—particularly short-term business credit
for inventory and other financing needs—banks
were also pressured during the period of general
financial stringency to curtail all types of dis­
cretionary consumer instalment lending. With
businesses and consumers drawing upon exist­
ing credit lines, banks limited approval of new
requests for non-line credit such as consumer
applications for automobile loans. In addition,




there was a decline in the relative profitability
of auto loans and this further discouraged auto
financing. Increases in auto finance rates failed
to match those for other types of loans, even
without allowance for the higher servicing costs
of consumer loans. During part of 1974, in fact,
the prime rate for business loans at many banks
was higher than the finance rates that these
banks charged consumers for new cars.
Commercial banks adopted various means to
restrict or discourage automobile credit demand
during 1974— by both rate and non-rate terms.
At such banks, on the average, the most com­
mon finance rate on direct new-car loans with
36-month maturities rose from about 10.5 per
cent, annual percentage rate, in the fall of 1973
to 11.6 per cent by the end of 1974— somewhat
more than the rate increase on retail new-car
contracts purchased by finance companies over
the same period. Also, it appears that many
banks tightened their standards of credit­
worthiness; others curtailed advertising, re­
stricted lending to depositors only, eliminated
marginal dealer accounts, stopped seeking ad-

Consumer Lending at Commercial Banks

New-car finance rate compared with prime rate
Per cent

1974

267

Finance rates on new-car loans have also
begun to ease at commercial banks, with the
average most common rate falling below 11.5
per cent in March. Further, the sharp decline
in short-term market interest rates and the
slackening of business loan demands since late
1974 have begun to make automobile financing
relatively more attractive to banks than it had
been during most of last year.
Proportion of over-36-month new-car contracts
at banks and at finance companies

75

F ir s t w e e k o f m o n t h . P r e d o m in a n t p r im e r a te t o la r g e b u s i ­
n e s s b o r r o w e r s a n d th e a v e r a g e o f “ m o s t c o m m o n ”

Per cent

rates o n

d ir e c t 3 6 - m o n t h n e w - c a r lo a n s t o c o n s u m e r s .

ditional dealer arrangements, or raised down­
payment requirements.
These restrictions were offset in part by a
lengthening of maturities on some new-car con­
tracts. Data from a recently revised survey at
commercial banks indicate that the proportion
of new-car contracts with maturities exceeding
36 months rose from 8.3 per cent in May 1974
to 10.6 per cent in February 1975. However,
almost all of this liberalization has been ac­
counted for by paper purchased from retail
dealers; the proportion of direct loans with ma­
turities in excess of 36 months at commercial
banks—5 per cent in February—was virtually
unchanged from May 1974.
At finance companies, meanwhile, the
proportion of new-car contracts having maturi­
ties of more than 36 months soared to 21.6 per
cent in February, up from 4.4 per cent in Feb­
ruary 1974 and from 6.8 per cent in May 1974.
Most of this increase is the result of longer
maturities on contracts purchased from retail
dealers by the subsidiary finance companies of
the automobile manufacturers.
Despite the relative severity of bank curtail­
ment of automobile financing volume last year,
signs of a turnaround have become evident in
1975. A number of banks instituted partial in­
terest rebate plans on car loans during February
and March analogous to the auto producers’
partial price rebate plans, and the bank share
of automobile credit extensions was somewhat
above the December 1974 low in each month
of the first quarter.



F

in a n c in g

“ O

t h e r

C

o f
o n s u m e r

G

o o d s

”

Even though the rate of growth in instalment
credit outstanding for “ other consumer goods”
slowed markedly during 1974—and the decel­
eration was especially abrupt toward yearend—the total amount of such credit outstanding
at all holders exceeded automobile debt in De­
cember for the first time on record. At most
nonbank financial institutions—finance compa­
nies, credit unions, and m iscellaneous
lenders—other consumer goods credit consists
primarily of loans to purchase mobile homes,
recreational vehicles and motorcycles, boats,
furniture, household appliances and electronic
equipment, jewelry, and miscellaneous items.
In addition to these items, outstanding balances
on bank credit-card accounts are included as
other consumer goods credit by commercial
banks.
Financial institutions held 63 per cent of the
$52 billion total in other consumer goods paper
outstanding at the end of 1974, and commercial

268

Federal Reserve Bulletin □ May 1975

banks accounted for two-thirds of all holdings
by financial institutions. The remaining 37 per
cent of other consumer goods credit—more than
$19 billion—was held by retail outlets, with a
substantial part in the form of revolving credit
account balances.
MOBILE HOMES. Until late 1973 the
growth in mobile home credit outstanding at
commercial banks and finance companies
matched the rapid rate of growth in bank creditcard balances. During 1974, however, con­
sumer demand for mobile homes and for related
financing fell sharply, and the mobile home
industry experienced a severe retrenchment in
production, shipments, and sales. At the same
time, with rates of delinquency and repossession
measurably higher, financial institutions became
considerably more reluctant to extend credit to
consumers for purchases of mobile homes.
Their reluctance reflected in part the relative
unattractiveness of finance rates on mobile

M obile h o m e f in a n c in g
Billions of dollars
COMMERCIAL BANKS
Extensions

Repayments

FINANCE COMPANIES
Extension:

Repayments

Quarterly totals at seasonally adjusted annual rates.




homes, given the risk involved, and in part the
rapid lengthening in mobile home loan maturi­
ties in recent years.
Commercial banks cut back their net mobile
home lending from a peak of $1.6 billion, at
a seasonally adjusted annual rate, in the first
quarter of 1973 to a negative rate of $184
million in the fourth quarter of 1974. By the
first quarter of 1975 repayments to banks on
mobile home loans exceeded bank extensions
of new credit by $460 million at a seasonally
adjusted annual rate, and extensions of credit
for consumer mobile home purchases had de­
creased from nearly 15 per cent of banks’ total
financing for other consumer goods in the fourth
quarter of 1973 to less than 8 per cent.
BANK CREDIT CARDS. Growth in bank­
card credit outstanding—either cash advances or
credit for retail purchases—continued strong
until the final month of 1974, when repayments
exceeded extensions on a seasonally adjusted
basis for the first time since January 1972. Even
with the decline in December, and another in
March 1975, bank credit-card outstandings at
the end of the first quarter amounted to $7.9
billion, an increase of nearly 20 per cent from
the $6.7 billion total of such balances a year
earlier. As a proportion of total instalment credit
extensions at banks, card credit expanded from
22.6 per cent in January 1974 to as much as
28.0 per cent in November. The credit-card
share of extensions had averaged less than 20
per cent during 1973.
The continued growth in amounts outstanding
on credit cards reflects the special cyclical be­
havior of this type of indebtedness. On the
demand side, card credit may be used for a
wide variety of relatively small purchases, and
consumers may increase their use of such
credit during the early stages of cyclical down­
turns in an attempt to maintain customary
standards of living; that is, over the short run
they use credit cards instead of cash. On the
supply side, banks find it difficult to curtail card
usage because, for the most part, such usage
involves exercising lines of credit already au­
thorized. In contrast, banks can restrict direct
automobile lending more readily; since each

Consumer Lending at Commercial Banks

C red it-card usage in relatio n to
to tal b a n k instalm en t lending to co n su m ers

P
Per
25

20
15

B ank-card o u tstan d in g s

Billions
2.4

NET CHANGE
1.6

.8

1971

.......... n

1972________1973_______ 1974

0

’75

automobile loan requires individual approval,
the banks can tighten lending standards and
apply those standards immediately to all subse­
quent extensions of credit.
Last year’s expansion of indebtedness on card
credit also reflected a trend at banks toward
diverting to credit-card plans many small per­
sonal and goods-financing loans. The reasons
for the shift include the lower administrative
costs of handling original and repeat extensions
of credit under a card plan, the greater likelihood
of generating additional borrowing, and the
higher finance charges that are generally applied
on credit-card balances.
At some point during a cyclical downturn,
however, the countercyclical strength in bank­
card credit must lessen unless the downturn is
brief because the forces tending to expand such
credit cannot operate indefinitely. In time, the
increased use of credit-card lines during a
downswing will push outstanding balances up
against credit ceilings; as a result, tighter bank
standards for issuing new cards and for raising
credit limits on existing cards will become grad­
ually more effective. The December decline in
credit-card balances and the relatively weak
first-quarter increase suggest that such a tempo­
rary saturation point may have been reached for
many accounts.




e r s o n a l

L

269

o a n s

Finance companies still hold the largest share of
the market for personal instalment loans, but
commercial banks and credit unions have become
increasingly important participants in this type of
financing. Some of the rise in bank participation
reflects the growth in availability and usage of
check credit—classified as personal loans. Most
check-credit plans allow bank customers to over­
draw checking-account balances within pre-es­
tablished limits, with the amount of the over­
draft—generally rounded to an incrementally
larger figure—considered as a personal instalment
loan on which interest is charged.
At the end of March 1975 the amounts due
from consumers on check-credit plans were 11
per cent larger than a year earlier, and they
accounted for 16 per cent of the $15.1 billion
in personal instalment loans outstanding at
commercial banks. However, the bank share of
the over-all $44 billion personal loan market
was up only slightly from the previous year,
mainly because the expansion at banks in per­
sonal loans other than check credit lagged the
expansion in personal loans at other financial
institutions—particularly at credit unions.
The rise in check-credit-plan loans during
1974 is analogous to the increase in bank
credit-card balances discussed earlier. A line of
credit has already been allocated to a prospec­
tive user at a predetermined rate of interest, and
from the standpoint of customer relations, it is
difficult for a bank to make the terms more
restrictive on existing accounts.
Rates on check-credit-plan loans vary from
around 10 per cent, annual percentage rate, at
some banks to a more general level of 12 per
cent to 18 per cent. In this respect, such loans
are reasonably competitive with conventional
direct personal instalment loans at banks—for
which the average most common rate is now
about 13.5 per cent for 12-month maturities.

H O M E M O R T G A G E C R E D IT
Commercial banks are second only to savings
and loan associations as a source of home mort­
gage credit. During 1974 banks accounted for

270

Federal Reserve Bulletin □ May 1975

about one-fifth of the long-term home mortgages
acquired by all major lenders.
Most of the long-term home mortgage loans
held by commercial banks are made directly to
households. Occasionally, however, banks buy
in the secondary market home mortgages that
are insured by the Federal Housing Administra­
tion or are guaranteed by the Veterans Admin­
istration. During 1974, in fact, banks originated
98 per cent of the dollar volume of all long-term
home mortgages that they acquired. Further­
more, although commercial banks sometimes
originate and sell home mortgages to other types
of investors—while retaining the servicing
function—they hold in their own portfolios most
of the home mortgage loans that they make.
Home mortgage loans sold by banks during
1974 were equivalent to 11 per cent of the
volume of loans originated (Table 1).

TABLE 1
Commercial bank activity in 1- to 4-family
mortgages, 1974
Ite m

C o n s tr u c tio n lo a n s ;
N e t a c q u is itio n s
.......................
L o n g - te r m lo a n s ;
G r o s s a c q u i s i t i o n s ..................
L o a n s o r i g i n a t e d ...............
L o a n s p u r c h a s e d ...............
L o a n s s o ld
....................
N e t a c q u is itio n s
.
N e t c h a n g e in h o ld in g s 1 . .

Less:
Equals:

A m ount
(in m illio n s
o f d o lla r s )

B ank s as a
p e r c e n t o f a ll
m a jo r le n d e r s

6 ,5 4 1

40

1 6 ,2 2 3
1 5 ,8 3 9
384
1 ,7 8 6
1 4 ,4 3 7
6 ,9 8 7

18
23
2
8
22
22

TABLE 2
Originations of long-term mortgages on 1- to
4-family properties at commercial banks, 1974
By type of mortgage and property

Ite m

L o a n s o r i g i n a t e d ............................
N e w p r o p e r t i e s .........................
F H A -in s u r e d
.........................
V A - g u a r a n t e e d ....................
C o n v e n t i o n a l .........................
E x is t in g p r o p e r t ie s
...............
.........................
F H A -in s u r e d
V A - g u a r a n t e e d ....................
C o n v e n t i o n a l .........................

A m ount
(in m illio n s
o f d o lla r s )

B ank s as a
p e r c e n t o f a ll
m a jo r le n d e r s

1 5 ,8 3 9
4 ,2 8 1
144
286
3 ,8 5 1
1 1 ,5 5 8
226
467
1 0 ,8 6 5

23
18
9
11
19
27
7
9
31

S o u r c e . — U .S . D e p a r tm e n t o f H o u s in g a n d U r b a n D e v e lo p ­
m e n t.

20 per cent for all other major lenders combined
(Table 2).
On the average, commercial banks charge
somewhat lower interest rates on conventional
home mortgage loans than do most other major
lenders. The lower finance rates reflect in part
lower loan-to-value ratios and shorter maturities
C o n v en tio n al m ortgages o n existing hom es
Average terms
Per cent

Per cent
1N e t a c q u is itio n s le s s r e p a y m e n ts a n d o th e r liq u id a tio n s .

S o u r c e . — U .S . D e p a r tm e n t o f H o u s in g a n d U r b a n D e v e lo p ­

LOAN-TO-PRICE RATIOS

m e n t.

Almost three-fourths of the long-term mort­
gage loans made by banks to households last
year were secured by homes that had been
previously owned rather than newly built. As
a result, banks occupied a somewhat more
prominent position in the existing-home mort­
gage market than in the new-home market.
Moreover, banks have been making relatively
few FHA-insured or VA-guaranteed home
loans. In 1974 Government-underwritten loans
accounted for only about 7 per cent of the
volume of long-term home mortgages originated
by commercial banks, compared with more than



1974

Federal Home Loan Bank Board data.

’75

Consumer Lending at Commercial Banks

at banks than at other lending institutions. In
1974 the average loan-to-value ratio on conven­
tional loans for existing homes originated by the
principal lending institutions ranged from 67 per
cent at commercial banks to 86 per cent at
mortgage companies; and the average contract
maturity ranged from 20 years at banks to 29
years at mortgage companies, according to data
from the Federal Home Loan Bank Board. On
improved properties, national banks are prohib­
ited by law from making conventional mort­
gages with loan-to-value ratios greater than 90
per cent and with maturities exceeding 30 years.
Until recently, mortgage loans made by na­
tional banks had to constitute first liens, and
second and other junior mortgages were pro­
hibited. Among other things, the Housing and
Community Development Act of 1974, which
became effective last August, amended the
Federal Reserve Act to permit national banks
to make junior mortgages under certain condi­
tions. In three-fourths of the States, banking
regulations authorize State-chartered banks to
make second mortgages, although many of these
States allow such loans only if the bank holds
the first mortgage or if the second mortgage is
for the purpose of liquidating other loans by the
same borrower at the bank.

271

L E N D IN G
B Y S IZ E O F B A N K
Virtually all commercial banks extend credit to
consumers, but the relative importance of con­
sumer financing in the total loan portfolio and
the degree of specialization within the major
categories of consumer credit vary widely by
deposit size of bank. Of some 14,200 insured
commercial banks, fewer than 50 banks reported
no holdings of short- or intermediate-term con­
sumer credit, according to the Federal Deposit
Insurance Corporation report of condition for
December 31, 1974; less than 5 per cent held
no home mortgages.
Consumer and mortgage loans combined ac­
counted for around one-third of total commer­
cial bank loans outstanding, almost equal to the
amount of commercial and industrial loans. The
breakdown was 16 per cent of all bank loans
as consumer instalment loans, 5 per cent as
single-payment loans to individuals and others,
and nearly 15 per cent as mortgage loans on
1- to 4-family properties. The bulk of such
credit is held at the largest banks—the three
largest deposit-size groups hold nearly twofifths of total consumer and mortgage credit at
all banks (Table 3). Even so, such banks gener­

TABLE 3
Loans at FDIC-insured commercial banks, December 31, 1974
L o a n s o u ts ta n d in g
( in b il l i o n s o f d o lla r s )

B anks

R a t io s to to ta l lo a n s (in p e r c e n t )

C o n s u m e r lo a n s
D e p o s it s iz e
(in m illio n s o f d o lla r s )

L e s s th a n 2 5
. . .........................
2 5 - 9 9 . 9 9 9 .......... ...........................
1 0 0 - 4 9 9 .9 9 9
..............................
5 0 0 - 9 9 9 .9 9 9
..............................
1 , 0 0 0 - 9 , 9 9 9 . 9 9 9 ....................
1 0 ,0 0 0 a n d o v e r
....................

A ll b a n k s

.................................

N um ber

T o ta l

C on su m er
and
m o r tg a g e

C on su m er
and
m o r tg a g e

T o ta l

I n sta lm e n t

S in g le
p aym en t

1- to 4 fa m ily
m o r tg a g e
lo a n s

1 0 ,5 3 1
2 ,8 7 9
631
91
75
9

6 0 .5
8 0 .4
8 2 .9
4 5 .6
1 2 3 .2
1 0 9 .5

2 9 .1
4 0 .9
3 7 .5
1 7 .7
3 4 .1
1 7 .6

4 8 .1
5 0 .9
4 5 .3
3 8 .7
2 7 .6
1 6 .0

2 8 .8
3 0 .6
2 7 .4
2 3 .1
1 5 .3
8 .0

2 2 .3
2 4 .1
2 2 .1
1 6 .9
1 2 .0
5 .8

6 .5
6 .5
5 .3
6 .1
3 .3
2 .2

1 9 .3
2 0 .3
1 7 .9
1 5 .6
1 2 .3
8 .0

1 4 ,2 1 6

5 0 2 .1

1 7 6 .8

3 5 .2

2 0 .5

1 5 .9

4 .6

1 4 .7

N o t e .— D a t a f r o m F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n r e p o r t o f c o n d i t i o n f o r D e c . 3 1 , 1 9 7 4 .
R e p o r t o f c o n d it io n f ig u r e s f o r c o n s u m e r in s t a lm e n t a n d n o n in s t a lm e n t lo a n s o u t s t a n d in g o n D e c . 3 1 , 1 9 7 4 , a r e n o t s t r ic t ly
c o m p a r a b le w ith th e r e g u la r m o n th ly c o n s u m e r c r e d it to t a ls p r e v io u s ly p u b lis h e d b y th e F e d e r a l R e s e r v e B o a r d fo r th e c o r r e s p o n d in g
d a te b e c a u s e o f c e r ta in a d ju s tm e n ts m a d e in th e m o n th ly s e r ie s , a n d b e c a u s e o f th e tim e la g in b e n c h m a r k in g th e m o n th ly
s e r ie s to r e p o r t o f c o n d it io n d a ta . A l s o , r e p o r t o f c o n d it io n d a ta fo r 1- to 4 - f a m ily m o r tg a g e s in c lu d e c o n s tr u c tio n a n d la n d
lo a n s f o r s u c h p r o p e r t ie s . P e r c e n t a g e s b a s e d o n d o lla r a m o u n t o f lo a n s o u t s t a n d in g .




272

Federal Reserve Bulletin □ May 1975

TABLE 4
Selected types of consumer instalment loans as a proportion of total consumer
instalment loans at FDIC-insured commercial banks, December 31, 1974
“ O th er c o n s u m e r g o o d s ”

B anks
A u to m o b ile
D e p o s it s iz e
(in m illio n s o f d o lla r s )

N u m b er

T o ta l

B a n k c r e d it
card s

M o b ile
hom e

P erson al

H om e
im p r o v e m e n t

L e s s th a n 2 5
..................
2 5 - 9 9 . 9 9 9 .........................
1 0 0 -4 9 9 .9 9 9
..................
5 0 0 - 9 9 9 .9 9 9
..................
1 ,0 0 0 - 9 ,9 9 9 .9 9 9 . . . .
1 0 ,0 0 0 a n d o v e r
____

1 0 ,5 3 1
2 ,8 7 9
631
91
75
9

5 1 .7
4 8 .1
4 0 .0
3 4 .2
3 2 .3
2 7 .5

2 2 .3
2 4 .8
3 0 .1
3 5 .6
3 5 .4
3 6 .6

.8
2 .8
1 0 .8
1 6 .7
1 8 .4
2 6 .0

1 1 .6
1 2 .5
1 1 .7
1 1 .1
1 0 .9
6 .3

2 0 .4
2 0 .8
2 2 .8
2 2 .6
2 4 .5
2 7 .8

5 .6
6 .3
7 .1
7 .6
7 .8
8 .0

A l l b a n k s .......................

1 4 ,2 1 6

4 0 .9

2 9 .5

1 0 .3

1 1 .2

2 2 .6

6 .9

N

o te

.— S e e N o t e t o T a b le 3 .

ally commit a smaller share of their total loan
portfolio to this type of lending than do smaller
banks, where credit demands tend to be less
diversified.
As of the end of 1974, except for the smallest
deposit-size category—consisting mostly of
rural banks that make mainly farm loans—the
proportion of consumer and mortgage loans in
the total portfolio declined as the deposit size
of banks increased. This pattern was most pro­
nounced for instalment loans; the home mort­
gage category traced a similar but less marked
pattern. Single-payment loans, including such
loans for nonconsumer purposes, showed little
variability in portfolio concentration, except for
a lower proportion at banks with $1.0 billion
and over in deposits.
Within the instalment loan category, banks
differ according to deposit size in the type of
loan emphasized (Table 4). On the average, car
financing accounted for 41 per cent of all instal­
ment credit outstanding at banks at the end of
1974 (down from 43 per cent in June), but the
smaller banks exceeded this proportion and the
larger banks fell below it. Large banks showed
a comparative preference for loans for home
improvement and for other consumer goods.
The latter category includes credit-card bal­




ances, which account for 10 per cent of total
instalment credit outstanding. In this field the
larger banks, which are often “ card-issuing”
banks, tend to dominate, whereas smaller banks
tend to be “ agent” banks that may hold little,
if any, credit under this form of lending ar­
rangement. The nine largest banks in deposit
size held 20 per cent of all credit-card receiv­
ables at the end of 1974. On the other hand,
emphasis on mobile home loans appeared to be
unrelated to the size of bank, if banks with $10
billion and over in deposits are excluded.
The data, while clearly showing variations in
loan distribution among banks grouped by de­
posit size, nevertheless obscure a wide range
of loan practices among banks within given size
groups. For instance, in each size group—
including the largest—some banks held no mo­
bile home loans; in contrast, for some banks
in the small- to medium-sized categories, mo­
bile home loans comprised 60 to 70 per cent
of their entire consumer instalment loan portfo­
lios. Similar diversity existed in the other in­
stalment loan categories; several banks with
deposits of less than $100 million made only
auto loans or only personal loans. For all types
of loans other than card credit, the smaller banks
tended to specialize more than the larger ones.

273

The Current Recession in Perspective
I am glad to meet with this distinguished group
of business and financial journalists in a lei­
surely setting. As a policy-maker, I feel I have
much in common with the members of your
profession. Both you and I must be alert to every
twist and nuance of the changing economic
scene. Both you and I must keep busy searching
the business skies for some clues to the eco­
nomic future. I find this aspect of my work
exciting and intriguing as I am sure you do.
But it does involve a certain risk for both of
us.

Sharing—as we do—the problem of contin­
ually meeting deadlines, we are in danger of
becoming so preoccupied with the very short
run that we fail to see economic events in
perspective. For that very reason, I have wanted
to take advantage of your invitation so that we
might ponder together the historical develop­
ments that have brought our economy to its
present condition. This is a large and highly
important subject. I cannot hope to do full
justice to it on the present occasion. Never­
theless, I shall make a start this evening.
As you are well aware these past few years
have been trying times for the American people.
Not only have we lived through the agony of
Vietnam and Watergate but some of us have
even begun to wonder whether our dream of
full employment, a stable price level, and a
rising standard of living for all our people is
beyond fulfillment.
Early last year economic expansion began to
falter in our country as it did in other countries
around the world. At the same time, the pace
of the inflation that had been building for more
than a decade accelerated sharply further. As

N o t e . — Paper presented by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve System , at
the 12th annual m eeting of the Society of American
Business Writers, W ashington, D .C ., M ay 6 , 1975.




the year advanced it became increasingly clear
that our economy was moving into a recession.
During the past two quarters the real gross
national product has declined by 5 per cent, and
the level of industrial production is now 12 or
13 per cent below that of last September. The
unemployment rate has risen swiftly and so also
has the idle capacity in our major industries.
The decline in business activity since last fall
has been the steepest of the postwar period, and
yet the advance of the price level—while con­
siderably slower than last year—is continuing
at a disconcerting pace.
No business-cycle movement can be compre­
hended solely in terms of the events that occur
within that cycle or the one preceding it. The
economic currents of today are heavily in­
fluenced by longer-range developments—such
as changes in economic and financial institu­
tions, the course of public policy, and the atti­
tudes and work habits of people. By examining
the historical background of recent ecomomic
troubles, we should be able to arrive at a better
understanding of where we now are.
The current recession is best viewed, and I
believe it will be so regarded by historians, as
the culminating phase of a long economic cycle.
There have been numerous long cycles in the
past—that is, units of experience combining two
or more ordinary business cycles. One such long
cycle ran its course from 1908 to 1921, another
from 1921 to 1933. And if we go back to the
19th century, we encounter long cycles from
1879 to 1894 and from 1894 to 1908. These
long cycles differ in innumerable ways from one
another. But they also have some features in
common—in particular, each culminates in an
economic decline of more than average inten­
sity.
The beginning of the long cycle that now
appears to be approaching its natural end may
be dated as early as 1958, but it is perhaps best

274

Federal Reserve Bulletin □ May 1975

to date its start in 1961. The upward movement
of economic activity that began in that year was
checked briefly in 1967 and was interrupted
more significantly in 1970. Although these in­
terruptions were watched with concern and
some anxiety by practicing economists and other
interested citizens, they will be passed over
lightly by economic historians concerned with
large events.
The reason is not hard to see. Putting aside
monthly and quarterly data and looking only at
annual figures, we find that total employment
rose every year from 1961 through 1973. So
also did disposable personal income and per­
sonal consumption expenditures—both viewed
on a per capita basis and in real terms. This
sustained upward trend of the economy came
to an end in 1974.
The successive phases of the long upswing
from 1961 to 1974 provide a useful perspective
on our current problems. Some years ago in my
work at the National Bureau of Economic Re­
search, I observed a pattern in past long up­
swings—an initial stage that may be called the
“ industrial phase” followed by what is best
described as the “ speculative phase.” The im­
balances that develop in this latter phase lead
inevitably to the final downturn. The events of
the past 15 years conform rather closely to this
pattern.
The period from 1961 through 1964 may be
regarded as the industrial phase of the long
upswing. Productivity grew rapidly—increasing
in the private nonfarm sector at an annual rate
of 3.6 per cent between the final quarters of
1960 and 1964, or well above the average rate
of the preceding decade.'Unit labor costs were
then remarkably stable, and so too was the
general price level. Real wages and profits rose
strongly. During this period of sustained eco­
nomic expansion, unemployment fell from
about 7 per cent of the labor force to 5 per cent,
while the rate of use of industrial capacity rose
substantially.
The second—or speculative—phase of the
long upswing began around 1965 and continued
through much of 1974. This 10-year period was
marked by a succession of major, interrelated,
and partly overlapping speculative waves that
in varying degrees gripped the other leading




industrial countries as well as the United States.
The first speculative movement involved cor­
porate mergers and acquisitions. In the euphoria
of what some commentators have called the
“ go-go” years, rapid growth of earnings per
share of common stock became the overriding
goal of many business managers. Other yard­
sticks of corporate performance—such as the
rate of return on new investments—were ne­
glected, and so too were the serious risks of
increased leveraging of common stock.
The aggregate volume of large corporate ac­
quisitions, which for some years had been run­
ning at about $2 billion per year, jumped to
$3 billion in 1965, $8 billion in 1967, $12.5
billion in 1968, and then tapered off. This was
the great era of conglomerates, when a variety
of unrelated businesses were brought together
under a single corporate management. Entre­
preneurs who displayed special skill in such
maneuvers were hailed as financial geniuses—
until their newly built empires began to crum­
ble. Being preoccupied with corporate acquisi­
tions and their conglomerate image, many busi­
nessmen lost sight of the traditional business
objective of seeking larger profits through better
technology, aggressive marketing, and im­
proved management. The productivity of their
businesses suffered and so too did the Nation’s
productivity.
The spectacular merger movement of the late
1960’s was reinforced, and to a degree made
possible, by the speculative movement that de­
veloped in the market for common stocks. The
volume of trading on the New York Stock
Exchange doubled between 1966 and 1971, and
for a time trading volume on the American
Exchange rose even faster. The prices of many
stocks shot up with little regard to actual or
potential earnings. During the 2-year period
1967-68, the average price of a share of com­
mon stock listed on the New York Exchange
rose 40 per cent, while earnings per share of
the listed companies rose less than 2 per cent.
On the American Exchange the average price
per share rose during the same years more than
140 per cent on an earnings base that again was
virtually unchanged.
Much of this speculative ardor came from a
section of the mutual fund industry. For the new

The Current Recession in Perspective

breed of “ performance funds,” long-term in­
vestment in the shares of established companies
with proven earnings became an outmoded con­
cept. In their quest for quick capital gains these
institutions displayed a penchant for risky in­
vestments and aggressive trading. In 1965 a
typical mutual fund turned over about one-fifth
of its common stock portfolio; by 1969 that
fraction had risen to nearly one-half. As Wall
Street then had it, the “ smart money” went into
issues of technologically oriented firms or into
corporate conglomerates—no matter how well
or poorly they met the test of profitability.
Speculation in equities was cooled for a time
by the stock market decline of 1969-70, but
then it resumed again and took on new forms.
Money managers began to channel a prepon­
derant part of their funds into the stocks of large
and well-known firms—apparently with the
thought that earnings of those companies were
impervious to the vicissitudes of economic life.
A huge disparity was thereby created between
the price/earnings ratios of the “ favored 50”
and those of other corporations. Share prices
of these “ favored” companies were, of course,
especially hard hit in the subsequent shakeout
of the stock market.
Speculation in common stocks was not con­
fined to the United States. From the late 1960’s
until about 1973 nearly every major stock ex­
change in the world experienced a large run-up
in share prices, only to be followed by a drastic
decline. Indeed, speculation reached a more
feverish pace in some countries than in the
United States. On the Tokyo stock exchange,
for example, both share prices and the trading
volume actually doubled in the 12 months be­
tween January 1972 and January 1973 and then
suffered a sharp reversal.
The third speculative wave that nourished the
long upswing of our national economy occurred
in the real estate market. Homebuilding fluc­
tuated around a horizontal trend during the
1960’s. The vacancy rate in rental housing was
at a high level from 1960 to 1965, then fell
steadily until the end of the decade, and thus
helped pave the way for a new housing boom.
Between January 1970 and January 1973 the
volume of new housing starts doubled. Since
then, homebuilding has plunged, and in some



275

sections of the Nation it has virtually come to
a halt. Failures of construction firms and unem­
ployment among construction workers have
reached depression levels. These unhappy de­
velopments stem in large measure from the
excesses of the housing boom that got under
way in 1970.
Inflationary expectations clearly played a
substantial role in bolstering the demand for
houses. But the boom was fostered also by an
array of governmental policies designed to
stimulate activity in the housing sector. These
governmental measures, however well-inten­
tioned, gave little heed to basic supply condi­
tions in the industry or to the underlying demand
for housing.
In response to easy credit and Federal subsi­
dies merchant builders moved ahead energeti­
cally, put up 1-family homes well ahead of
demand, and thus permitted the inventory of
unsold homes to double between 1970 and
1973. Speculative activity was even more in­
tense in the multifamily sector—that is, in
apartments built for renting, and particularly in
condominiums and cooperatives, which ac­
counted for a fourth of the completions of mul­
tifamily structures by the first half of 1974.
The boom in housing was financed by a huge
expansion of mortgage credit and construction
loans. Real estate investment trusts played an
exceptionally large role in supplying high-risk
construction loans for condominiums, recrea­
tional developments, and other speculative ac­
tivities. The growth of real estate trusts was
extraordinary by any yardstick. Their assets,
amounting to less than $700 million in 1968,
soared to upwards of $20 billion by 1973.
Unsound practices accompanied this rapid
growth and, as a result, many real estate trusts
now face difficult financial problems.
The speculative boom in real estate was not
confined to residential structures. It extended to
speculation in land, widespread building of
shopping centers, and construction of office
buildings. By 1972 the vacancy rate in office
buildings reached 13 per cent, but this type of
construction still kept climbing.
The real estate boom in the United States
during the early 1970’s had its parallel in other
countries. Speculation in land and properties

276

Federal Reserve Bulletin □ May 1975

became rampant in the United Kingdom. In
1972 alone new house prices rose 47 per cent
on the average. The amount of credit absorbed
in real estate ventures rose so rapidly that the
Bank of England felt forced to place special
controls on bank lending for such purposes. And
in Germany the boom in residential construction
during 1971-73 left an inventory of about a
quarter million unsold units—more than a third
of a peak year’s output—that now overhang the
market.
It is in the nature of speculative movements
to spread from one country or market to another.
Just as the speculative wave in real estate was
beginning to taper off in 1973, a new wave of
speculation got under way—this time in inven­
tories. That was the fourth and final speculative
episode of the long economic upswing from
1961 to 1974. It involved massive stocking up
of raw materials, machinery, parts, and other
supplies in the United States and in other indus­
trial countries.
The inventory speculation of 1973 and 1974
was the outgrowth of a boom in business activity
that had raised its head by 1972 in virtually
every industrial country of the world. The
synchronism of economic expansion in these
countries was partly coincidental, but the ex­
pansion that stemmed from ordinary businesscycle developments was reinforced by the
adoption of stimulative economic policies al­
most everywhere. As a result, production in­
creased rapidly around the world and led to a
burgeoning demand for raw materials, machine
tools, component parts, and capital equip­
ment—goods for which our country is a major
source of supply. The pressure of rising world
demand was reinforced in our markets by the
devaluation of the dollar, which greatly im­
proved our competitive position in international
trade.
By the beginning of 1973, as business firms
attempted to meet intense demands from both
domestic and foreign customers, serious bottle­
necks and shortages had begun to develop in
numerous industries—especially those produc­
ing steel, nonferrous metals, paper, chemicals,
and other raw materials. In this environment of
scarcities, the rise in prices of industrial com­
modities quickened both here and abroad. The




dramatic advance of food prices in 1973, and
later in energy prices, greatly compounded the
worldwide inflationary problem. In our country
these price pressures were suppressed for a time
by price and wage controls, but the general price
level exploded when controls were phased out
in late 1973 and early 1974.
One of the unfortunate consequences of in­
flation is that it masks underlying economic
realities. As early as the spring of 1973 a
perceptible weakening could be detected in the
trend of consumer buying in this country. The
business community, however, paid little atten­
tion to this ominous development. The escalat­
ing pace of inflation fostered expectations of still
higher prices and persistent shortages in the
years ahead so that intensive stockpiling of
commodities continued. Inventories increased
out of all proportion to actual or prospective
sales. In fact, the ratio of inventories to sales,
expressed in physical terms, had risen by the
summer of 1974 to the highest figure for any
business-cycle expansion since 1957—another
year when a severe recession got under way.
In summary, the period from 1965 to 1974
was marked by a succession of interrelated,
partly overlapping, speculative waves—first, in
buying up of existing businesses; then, in the
stock market; next, in markets for real estate;
and finally, in markets for industrial materials
and other commodities.
A prolonged speculative boom of this kind
can seldom be traced to a single causal factor.
In this instance, however, a dominant source
of the problem appears to have been the lack
of discipline in governmental finances.
The industrial phase of the long upswing drew
to a close in late 1964 or early 1965. By then
the level of real output was very close to the
limits imposed by our Nation’s physical capac­
ity to produce. By then the level of wholesale
prices was already moving out of its groove of
stability. Nevertheless, our Government did
nothing to moderate the pace of expansion of
aggregate monetary demand. On the contrary,
it actually embarked on a much more expansive
fiscal policy. The tax reductions of 1964 were
followed in 1965 by fresh tax reductions and
by a huge wave of spending both for new social
programs and for the war in Vietnam. These

The Current Recession in Perspective

misadventures of fiscal policy doomed the
economy to serious trouble, but we were slow
to recognize this. Indeed, substantial tax reduc­
tions occurred again in 1969 and 1971, and they
too were followed by massive increases of ex­
penditures .
Deficits therefore mounted, and they persisted
year in and year out. Over the last ten complete
fiscal years—that is, from 1965 through 1974—
the Federal debt held by the public, including
obligations of Federal credit agencies, rose by
more than 50 per cent. The large and persistent
deficits added little to our Nation’s capacity to
produce, but they added substantially to aggre­
gate monetary demand for goods and services.
They were thus directly responsible for much
of the accelerating inflation that has taken place
in the past decade.
Monetary and credit policies were not without
some fault. As every student of economics
knows, inflation cannot continue indefinitely
without an accommodating increase in supplies
of money and credit. It is very difficult, how­
ever, for a central bank to maintain good control
of money and credit when heavy governmental
borrowing drives up interest rates and when the
public is unwilling to face squarely the long-run
dangers inherent in excessively stimulative eco­
nomic policies.
To make matters worse, laxity in our national
economic policies spilled over into private mar­
kets. The “ new economics,” of which less is
heard now than before, held out the possibility,
if not the actual promise, of perpetual prosper­
ity. Many businessmen and financiers came to
view the business cycle as dead and to expect
the Federal Government to bail out almost any
enterprise that ran into financial trouble. All too
frequently, therefore, the canons of financial
prudence that had been developed through hard
experience were set aside.
Many of our business corporations courted
trouble by permitting sharp reductions in their
equity cushions or their liquidity. In the manu­
facturing sector, the ratio of debt to equity—
which had been stable in the previous decade—
began rising in 1964 and nearly doubled by the
end of 1974. Moreover, a large part of the
indebtedness piled up by business firms was in
the form of short-term obligations, and these




277

in turn grew much more rapidly than holdings
of current assets.
Similar trends developed in some segments
of commercial banking. Large money market
banks came to rely more heavily on volatile
short-term funds to finance their business cus­
tomers, and at times they increased their loan
commitments to businesses beyond prudent
limits. A few bank managers, too, began to
concern themselves excessively with maximiz­
ing short-run profits so that the prices quoted
for their common stock would move higher.
Capital ratios of many banks deteriorated;
questionable loans were extended at home and
abroad; insufficient attention was given here and
there to the risks of dealing in foreign exchange
markets; and too much bank credit went into
the financing of speculative real estate ventures.
A variety of loose practices also crept into
State and local government finance. Faced with
rapidly expanding demands for services and
limited sources of revenue, some governmental
units resorted to extensive short-term borrowing
and employed dubious accounting devices to
conceal their budget deficits. Statutory debt
limits were circumvented through the creation
of special public authorities to finance the con­
struction of housing, schools, and health facili­
ties. Some of these authorities issued so-called
“ moral obligation” bonds, which investors in
many instances regarded as the equivalent of
“ full faith and credit” obligations. The novel
financial devices seemed innocuous at the time,
but they have recently become a source of
serious concern to investors in municipal se­
curities .
A nation cannot realistically expect prosper­
ous economic conditions to continue very long
when its Federal government fails to heed the
warning signs of accelerating inflation, when
many of its business leaders spend their “ fin­
est” hours arranging financial maneuvers, and
when aggressive trade unions push up wage
rates far beyond productivity gains. After 1965
the strength of the American economy was
gradually sapped by these ominous trends. Pro­
ductivity in the private nonfarm sector, which
had grown at an annual rate of 3.6 per cent
from 1961 through 1964, slowed to a 2.2 per
cent rate of advance from 1964 to 1969, then

278

Federal Reserve Bulletin □ May 1975

to 1.5 per cent from 1969 to 1974. Expansion
in the physical volume of national output like­
wise declined during successive quinquennia.
The rate of inflation, meanwhile, kept acceler­
ating.
With the pace of inflation quickening, seeds
of the current recession were thus sown across
the economy. Rising prices eroded the purchas­
ing power of workers’ incomes and savings.
Corporate profits diminished—a fact that busi­
nessmen were slow to recognize because of
faulty accounting techniques. New dwellings
were built on a scale that greatly exceeded the
underlying demand. Inventories of commodities
piled up, often at a fantastic pace, as business­
men reacted to gathering fears of shortages.
Credit demands, both public and private,
soared, and interest rates rose to unprecedented
heights.
These basic maladjustments are now being
worked out of the economic system by reces­
sion—a process that entails enormous human
and financial costs. Our country has gone a
considerable distance in developing policies to
alleviate economic hardships, and these policies
have been strengthened recently. Nevertheless,
the recession has wrought great damage to the
lives and fortunes of many of our people.
This recession has cut deeply into economic
activities. It must not, however, be viewed as
being merely a pathological phenomenon. Since
we permitted inflation to get out of control, the
recession is now performing a painful—but also
an unavoidable—function.
First, it is correcting the imbalances that
developed between the production and sales of
many items, between orders and inventories,
between capital investment and consumer
spending, and between the trend of costs and
prices.
Second, business managers are responding to
the recession by moving energetically to im­
prove efficiency—by concentrating production
in more modern and efficient installations,
eliminating wasteful expenditures, stimulating
employees to work more diligently, and work­
ing harder themselves.
Third, the recession is improving the condi­
tion of financial markets. Interest rates have
moved to lower levels as a result of declining




credit demands and of the Federal Reserve’s
efforts to bolster the growth of money and
credit. Commercial banks have taken advantage
of the reduced demand for loans to repay their
borrowings from Federal Reserve Banks, reduce
reliance on volatile sources of funds, and rebuild
liquid assets. The rapidly rising inflow of de­
posits to thrift institutions has likewise permitted
a reduction of their indebtedness and an addition
to their liquid assets.
Fourth, the recession is wringing inflation out
of the economic system. Wholesale prices of
late have moved down, and the rise of consumer
prices has also slowed. Although general price
stability is not yet in sight, a welcome element
of price competition has at long last been re­
stored to our markets.
These and related business developments are
paving the way for recovery in economic activ­
ity. No one can foresee with confidence when
the recovery will begin. The history of our
country indicates clearly, however, that the cul­
minating downward phase of a long cycle need
not be of protracted duration.
Signs are multiplying, in fact, that an upturn
in economic activity may not be far away. For
example, employment rose in*April after six
successive months of decline. The length of the
workweek also stabilized last month. The rate
of layoffs in manufacturing is now turning
down, and some firms have been recalling
workers who formerly lost their jobs. Sales of
goods at retail—apart from autos—have risen
further. Business and consumer confidence has
been improving. And prospects for an early
upturn in economic activity have been strength­
ened by passage of the Tax Reduction Act of
1975.
Our Nation stands at present at a crossroads
in its history. With the long and costly cycle
in business activity apparently approaching its
end, the critical task now is to build a solid
foundation for our Nation’s economic future.
We will accomplish that only if we understand
and benefit from the lessons of recent experi­
ence.
Since World War II a consensus has been
building in this country that the primary task
of economic policy is to maintain full employ­
ment and to promote maximum economic

The Current Recession in Perspective

growth. We have pursued these goals by being
ever ready to stimulate the economy through
increased Federal spending, lower taxes, or
monetary ease. Neglect of inflation, and of
longer-run economic and financial problems,
has thus crept insidiously into public policy­
making. Our Government has become accus­
tomed to respond with alacrity to any hint of
weakness in economic activity, but to react
sluggishly, and sometimes not at all, to signs
of excess demand and developing inflationary
pressures.
The thinking of many of our prominent econ­
omists has encouraged this bias in our economic
policies. During the 1950’s and 1960’s they
frequently argued that “ creeping inflation” was
a small price to pay for full employment. Some
even suggested that a little inflation was a good
thing—that it energized the economic system
and thus promoted rapid economic growth.
This is a dangerous doctrine. While inflation
may begin slowly in an economy operating at
high pressure, it inevitably gathers momentum.
A state of euphoria then tends to develop, eco­
nomic decision-making becomes distorted,
managerial and financial practices deteriorate,
speculation becomes rampant, industrial and
financial imbalances pile up, and the strength
of the national economy is slowly but surely
sapped. That is the harsh truth that the history
of business cycles teaches.
To emphasize this truth I should now like to
offer this distinguished group of journalists a
bit of professional advice. Since few of you are
reluctant to pass along hints as to how I should
do my job, I have decided to suggest to you
what the really big economic news story of 1975
is likely to be.
The story has to do with the drama now
unfolding on Capitol Hill in the implementation
of the Budget Control Act adopted last year.
If I am right in thinking that our present eco­
nomic difficulties are largely traceable to the
chronic bias of the Federal budget toward defi­
cits, there can be no doubt about the importance
of what is now being attempted. No major
democracy that I know of has had a more
deficient legislative budget process than the
United States—with revenue decisions sepa­




279

rated from spending decisions and the latter
handled in piecemeal fashion. Budgets in this
country have just happened. They certainly have
not been planned.
We are now attempting to change that by
adopting integrated congressional decisions on
revenues and expenditures. My advice to you
journalists is to follow this new effort closely.
It has a significance for our Nation that may
carry far into the future. But nothing can be
taken for granted here. We have tried budgetary
reform once before under the Legislative Reor­
ganization Act of 1946 and it failed. It failed
partly because of the challenge to cherished
committee prerogatives, partly also because the
Congress as a whole balked at accepting so
much self-discipline. I would urge you to study
the history of that earlier effort and to watch
the present undertaking for telltale signs of a
similar faltering.
The potential gain for our Nation from budget
reform is enormous even in this first year of
a “ dry run.” If, in fact, the work of the new
budget committees produces in the Congress a
deeper understanding of the impossibility of
safely undertaking all the ventures being urged
by individual legislators, a constructive begin­
ning toward a healthier economic environment
will have been made. On the other hand, if the
new budget procedures are scuttled, or if they
are used with little regard to curbing the bias
toward large-sized Federal deficits, there ulti­
mately may be little anyone can do to prevent
galloping inflation and social upheaval.
I am inclined to be optimistic about the out­
come. More and more of our people are be­
coming concerned about the longer-range con­
sequences of Federal financial policies. A
perspective on our Nation’s economic problems
is gradually being gained by our citizens and
their congressional representatives. A healthy
impatience with inflation is growing. You jour­
nalists are becoming more actively involved in
the educational process. I therefore remain
hopeful that we shall practice greater foresight
in dealing with our Nation’s economic problems
than we have in the recent past and that we
will thus build a better future for ourselves and
our children in the process.
□

280

Statements to Congress
Statement by Jeffrey M . Bucher , M em ber ,
B oard of G overnors of the Federal R eserve
System , before the Subcommittee on Consumer
Affairs of the Committee on Banking , Currency
and Housing, U.S. House of R epresentatives,
A pril 22, 1975.

I appreciate the opportunity to appear before the
Subcommittee on Consumer Affairs to offer the
views of the Board of Governors of the Federal
Reserve System on H.R. 3386, amending the
Equal Credit Opportunity Act, which was intro­
duced by you, Mr. Chairman, and co-sponsored
by other members of this subcommittee. The
Act forbids discrimination in the extension of
credit on the basis of sex or marital status. The
bill would add to these categories race, color,
religion, national origin, and age.
Let me begin by stating, as I did in testifying
before this subcommittee on June 20, last year,
that the Board strongly favors the elimination
of discrimination based on factors other than
creditworthiness in credit transactions.
Although no legal right to receive credit exists
and the creation of such a right would be inap­
propriate in our free enterprise system, the
Board believes a great deal can be done to assure
that there is access to credit on a just and fair
basis for equally creditworthy people. The de­
nial of credit based upon group identification
without reference to creditworthiness works to
the economic disadvantage of applicants and
creditors alike.
Nevertheless, the Board recommends that the
Congress delay enactment of this legislation
until such time as experience is available to
assess the impact of the Equal Credit Opportu­
nity Act, which goes into effect later this year.
Our study of this proposed legislation has come
at a time when the Board and its staff are
immersed in the preparation of regulations to




implement the existing Act. In working on those
regulations, we have come to appreciate more
fully the many problems inherent in regulations
of this nature and the serious possibility that
without a thorough and detailed examination of
these problems such regulations may be inef­
fective or even counterproductive. There is
always the risk that Federal regulations
might—without intending to do so, and without
even accomplishing positive benefits—so hob­
ble the credit-granting process as to significantly
increase credit losses. The result of such in­
creased losses would be either increased costs
to other borrowers or a general raising of credit
standards—with the resulting exclusion of some
of the more marginal credit risks, typically
among the disadvantaged, who are now able to
obtain credit. Either kind of reallocation of
credit risks, if at all extensive, would be con­
trary to the public interest.
We must say, in all candor, that even in the
area of preventing credit discrimination on the
basis of sex or marital status it will be extremely
difficult to accomplish the worthy objectives
while successfully avoiding the pitfalls along the
way. Our best hope for achieving this will
depend upon our efforts to study and understand
the problems as thoroughly as possible, to con­
sult as extensively as we can, to draft the
regulations as carefully and objectively as we
know how, and then to stand ready to amend
them promptly as may prove necessary in the
light of experience. Each of us at the Board
is spurred by the keen realization of how much
is at stake in this endeavor. Unless it is carried
out in the best possible manner, we not only
may fail to gain the positive benefits that are
so earnestly sought but we also may damage
the credit machinery—and even bring discredit
upon this and other laudable efforts to dispel
bias and prejudice by reasoned and orderly
developments in our legal system.

Statements to Congress

The experience with truth in lending—a
subject that is inherently far less difficult and
less controversial than that of discrimination in
lending—can, we believe, be instructive here.
Truth in lending was discussed and debated in
congressional committees over an extended
period. Representatives of all points of view had
ample opportunity to consider and present their
positions. After carefully weighing the various
presentations, the Congress spelled out in the
law a great portion of the principles and even
the details that it wished to have followed. The
Board of Governors was then given a year
within which to write regulations filling in the
remaining details.
I am convinced that a good part of whatever
success has been achieved in administering
truth in lending can be attributed to the
thoroughness with which the subject was studied
and the explicitness with which the Congress
set forth its intention.
Even though legislation on credit discrim­
ination probably cannot be as explicit or detailed
as that on truth in lending or fair credit
billing, we believe it is of vital importance that
any extensions of the Equal Credit Opportunity
Act be launched with optimal prospects for
success. Crucial to such prospects will be the
extent to which the Congress identifies and
analyzes the issues, sets forth its intentions in
the statute, and allows adequate time for the
writing of regulations.
In light of these considerations, we are con­
vinced that further extension of the Equal Credit
Opportunity Act should be preceded by exten­
sive exploration, delineation, and resolution of
the extremely complex issues that are inherent
in this subject. In this connection, the category
of “ age,” one of the additional categories
which would be covered by H.R. 3386, poses
unusually complex questions. For example,
there is a very important issue as to what extent
it may be valid to analogize statistical credit
experience to the actuarial tables dealing with
life expectancy that are used by insurance com­
panies in setting premium rates. Should a credi­
tor be permitted to take into account the bor­
rower’s statistically predicted life expectancy in
making a long-term loan to an individual 65 or
70 years of age? Or should the creditor be



281

restricted to an inquiry as to the probable stabil­
ity of income of the particular applicant—an
inquiry which might or might not properly in­
clude a question as to that individual’s health
and life expectancy?
At the other end of the spectrum, should a
creditor in deciding whether to lend to a 20year-old applicant be permitted to take into
consideration the creditor’s own experience in
the particular geographical area with the pay­
ment record of persons in, say, the 18- to
25-year age bracket? Or must the creditor re­
strict inquiry to the credit record—possibly quite
a limited record—of the individual applicant?
If the latter, then a further question arises as
to whether alternative indexes of stability are
available that will make it possible for the
creditor to distinguish between good and bad
credit risks within a particular age bracket as
effectively as he could do on the basis of
statistics derived from his general experience.
The creditor’s cost of granting credit will be
increased to the extent that such alternative tests
do not eliminate bad credit risks as efficiently
as can be done through statistically based scor­
ing (and offsetting benefits do not occur). The
cost of credit will also be increased to the extent
that the alternative tests are more expensive to
apply. And any such increased costs, of course,
will have to be borne by borrowers generally,
unless the creditor chooses the alternative of
raising credit standards. This, in turn, will have
the effect of depriving marginal borrowers—
often those in lower income brackets—of access
to credit.
Even though different forms of discrimination
require somewhat different remedies, we would
hope that experience under the regulations to
prevent discrimination on the basis of sex or
marital status would be helpful to both the Board
and to the Congress in formulating measures to
deal with other forms of unfair discrimination.
Accordingly, we would suggest that the
Congress continue its study of the problems
involved in extending the Equal Credit Oppor­
tunity Act to cover the proposed new categories
not only to permit full analysis of the issues
but also to get the benefit of experience under
the regulations with respect to credit discrim­
ination based on sex and marital status (we will

282

Federal Reserve Bulletin □ May 1975

issue these regulations this week for comment).
We believe it essential for the Congress to have
the benefit of assessing the experience of con­
sumers and creditors in living under the regula­
tion in this particular area of credit discrim­
ination before enlarging the scope of the Equal
Credit Opportunity Act.
If the Congress, after considering these fac­
tors, nevertheless chooses to proceed with the
inclusion of additional categories under the Act,
the Board would wish to emphasize the impor­
tance of adequate time in rulewriting in these
new and little-studied areas in order to afford
a suitable opportunity for public participation
in the rulewriting process. Draft regulations
must be prepared and submitted for public
comment. This process in itself requires exten­
sive informal consultation with consumer and
creditor groups, as well as background eco­
nomic studies—wherever feasible—in the effort
to illuminate some of the difficult trade-offs

mentioned above. It may also be desirable to
provide an opportunity for oral presentation of
comments before the Board. Resulting com­
ments must be analyzed and the earlier draft
revised.
In adopting the Equal Credit Opportunity Act,
the Congress deferred the effective date of the
statute for 1 year in order to allow time for these
procedures to be carried out in an orderly fash­
ion. It is becoming evident that a year will
provide a bare minimum of the time needed for
writing rules in a single category of credit dis­
crimination.
In view of the increased number and com­
plexity of the issues that are likely to be inherent
in the proposed extension of the Equal Credit
Opportunity Act to cover discrimination on the
basis of race, color, religion, national origin,
and age, we believe that 2 years should be
allowed for the difficult and vitally important
task to be performed,
□

Statement by A rthur F. Burns , Chairman ,
B oard of G overnors of the Federal Reserve
System , before the Committee on Banking,
Housing and Urban A ffairs , U.S. Senate , M ay

The recession has been accompanied by a
notable degree of moderation in the rate of
inflation. Nevertheless, despite the severity of
the economic decline, the general price level
has continued to advance quite rapidly. In other
respects this recession resembles earlier declines
of the past 30 years. Thus, consumer demand
for autos, furniture, household appliances, and
other durable goods has fallen. Orders or con­
tracts by business firms for new facilities and
equipment have likewise declined. And in this
as in earlier recessions, a shift from inventory
accumulation to inventory liquidation has been
a major depressant of production and employ­
ment.
Last fall business firms were rather slow in
reacting to the weakness that had been develop­
ing in consumer markets, in part because of their
lingering concern about shortages of raw mate­
rials and other supplies. As a result, a build-up
of in v e n to r ie s — much of it in v o lu n ­
tary—occurred in the final quarter of 1974. In
the opening months of this year, however, as
sales to final users stabilized in real terms,

1, 1975.

I welcome the opportunity to discuss with this
distinguished committee the condition of the
national economy and the course of monetary
policy.
As you well know, our Nation at present is
experiencing a severe recession. During the past
two quarters the real gross national product has
declined by 5 per cent and the level of industrial
production is now 12.5 per cent below last
September. This is the steepest decline of eco­
nomic activity in a long generation.
The recession has resulted in a large reduction
of jobs and in substantial underemployment of
our labor and capital resources. The unemploy­
ment rate has risen swiftly, the amount of over­
time work has been cut drastically, and the
number of employees placed on a part-time
basis has also risen.



Statements to Congress

liquidation of inventories got under way on a
huge scale. Actually, all of the decline in the
Nation’s physical volume of production between
the fourth quarter of 1974 and the first quarter
of 1975 reflects a shift on the part of the business
community from inventory investment to in­
ventory liquidation.
As production declined much of our industrial
capacity was idled, and this has left its mark
on commodity prices. Sensitive prices of indus­
trial raw materials had already begun to weaken
in the spring of 1974. By late fall the effects
of declining business activity began to show up
in wholesale prices of intermediate materials,
supplies, and components, and later on in prices
of finished goods. Since November the over-all
index of wholesale prices has moved down, with
farm prices falling substantially and the advance
of industrial prices moderating. In recent
months the index of consumer prices has also
risen less rapidly than during 1974, and the
prices of many products have been marked
down in retail markets.
These price developments have served as a
significant stimulus to consumer spending. Al­
though after-tax incomes of consumers in the
first 3 months of this year were lower in real
terms than in the final months of 1974, con­
sumer purchases— especially of durable
goods—have perked up in response to price
concessions on autos and other items. In fact,
consumer expenditures rose in real terms as well
as in dollars during the first quarter. Largely
for this reason the efforts of business firms to
work down their excess stocks have been nota­
bly successful, and inventories are now in better
balance with sales.
This has been one of the economic adjust­
ments needed to lay the basis for recovery in
production and employment. Other corrective
adjustments have also been under way. Business
managers have been moving energetically to
improve efficiency—by concentrating produc­
tion in more modern installations, eliminating
wasteful expenditures here and there, stimu­
lating employees to work more diligently, and
working harder themselves. Significant progress
has also been made in strengthening the finan­
cial position of businesses. Exceptionally large
amounts of longer-term securities have been



283

issued by corporations this year, and stock of­
ferings have also increased somewhat. A part
of the proceeds of these financings has been used
to repay short-term debt, thereby improving
corporate liquidity.
Financial institutions have also improved
their financial condition. Commercial banks
have taken advantage of the reduced demand
for business loans to repay their borrowings
from Federal Reserve Banks, reduce reliance on
volatile sources of funds, and rebuild liquid
assets. At nonbank thrift institutions, the rapidly
rising inflow of deposits has likewise permitted
a reduction of indebtedness and an addition to
liquid asset holdings. Thus, financial institutions
are now in a better position to meet the needs
for credit that will accompany the renewal of
economic expansion.
No one can foresee with confidence when an
economic recovery will begin. Signs are
emerging, however, that the turn in business
activity may not be far away.
For example, new mortgage loan commit­
ments by savings and loan associations have
risen strongly since last October. Industrial pro­
duction and total employment fell further in
March, but the declines were much smaller than
in the previous 4 months. Prices of sensitive
industrial raw materials have stabilized recently
as supply and demand have come into better
balance. Sales of goods at retail—apart from
autos—rose further in March. Of late, consumer
surveys have indicated that there is some im­
provement in confidence. And stock prices, an­
other indicator of confidence, have continued to
rise briskly.
Prospects for an upturn in economic activity
have also been strengthened by passage of the
Tax Reduction Act of 1975. The large rebate
of 1974 tax liabilities, the additional payment
to social security beneficiaries, and the reduction
in withholding of 1975 taxes will soon add to
disposable incomes and bolster consumer
spending. Larger consumer buying will help to
stem the erosion in business investment plans,
and the liberalization of the investment tax
credit will also stimulate business capital out­
lays. More business investment is urgently
needed not only to provide additional jobs but
also to improve the capacity and efficiency of

284

Federal Reserve Bulletin □ May 1975

our industrial plants—thereby contributing to
moderation of inflationary pressures.
Let me turn now to the contribution that
monetary policy has made to establishing a basis
for recovery in business activity.
Once evidence began to accumulate during
the summer of last year that economic activity
was weakening, the Federal Reserve took steps
to ease credit conditions and bolster growth rates
of the monetary aggregates. Open market
operations became more accommodative, and as
the year progressed they were persistently
directed toward more ample provision of re­
serves to the banking system. Other monetary
instruments reinforced open market policy. Re­
ductions of reserve requirements of member
banks were ordered last September, November,
and again this January. The discount rate was
also reduced—once in each month from De­
cember through March.
These Federal Reserve actions to augment the
supply of loanable funds, together with the
weakening of private demands for credit, had
a dramatic effect on short-term rates of interest.
For example, the Federal funds rate—the rate
banks pay when borrowing reserves from one
another—has declined from a level of about
13Vi per cent, registered in July of last year,
to about 5Vi per cent at present. The interest
rate on commercial paper declined from over
12 per cent last July to around 6 per cent. And
the prime rate of interest on bank loans to
businesses has fallen from 12 to l l/i per cent.
Short-term market rates of interest in the
United States fell earlier, more rapidly, and to
lower levels than in other industrial countries.
Consequently, investors were able to obtain
higher yields by shifting funds out of dollar
assets into investment in other currencies. These
interest rate differentials help to explain the
large decline that occurred in the foreignexchange value of the dollar between September
1974 and early March of this year. During
recent weeks short-term interest rates in foreign
countries have declined relative to those here,
and the dollar has strengthened in exchange
markets.
In the markets for long-term securities, inter­
est rates in the United States have also declined
from their previous peaks, although much less




than short-term rates. Of course, long-term rates
typically fluctuate within a narrower range than
short-term rates; but in the present instance,
other powerful factors have also been at work.
Fears of inflation are still widespread in the
business and financial community and long-term
interest rates therefore still contain a sizable
inflation premium. Moreover, as I noted earlier,
corporations have issued an enormous volume
of bonds in the past several months, and State
and local governments have also borrowed large
sums in the capital markets.
More recently, the huge financing demands
of the Treasury have become a major disturbing
element in the money and capital markets. By
the end of this fiscal year, new Federal borrow­
ing—including borrowing by the off-budget
agencies and Government-sponsored enter­
prises—will probably amount to more than $60
billion. A large part of that total deficit is due
to the recession, and it has been financed thus
far without undue difficulty because private
credit demands have been declining. During the
next fiscal year, however, the total deficit will
rise to perhaps as much as $100 billion. Partici­
pants in financial markets recognize that private
credit demands, too, may be rising soon, and
they have therefore become concerned about the
strains that may develop in financial markets.
The Federal Reserve has responded to these
developing tensions in the capital market by
shifting the emphasis in its open market opera­
tions from Treasury bills to longer-term Gov­
ernment securities. Since the end of February
System purchases of coupon issues of the
Treasury and Federal agencies have amounted
to almost $2.5 billion. In view of the limited
scope of the market for longer-term Federal
securities, this is a very large volume of buying
in a short span of time.
These purchases have been helpful in steady­
ing the bond market. But let there be no mis­
taking the fact that Federal Reserve operations
in the market can have only an ephemeral influ­
ence on long-term interest rates. The funda­
mental factor forcing up long-term interest rates
in recent years has been the high rate of infla­
tion. Appreciably lower long-term interest rates
are needed now to stimulate economic expan­
sion, but they are unlikely to be attained unless

Statements to Congress

further progress is made in bringing inflation
under control.
Success in this endeavor will require more
fiscal discipline than we have managed to
achieve in recent years. It will also require a
course of moderation in monetary policy— a
course that will provide an expansion in supplies
of money and credit adequate to facilitate a good
economic recovery but not so large as to re­
kindle the fires of inflation.
What the Federal Reserve has been trying to
accomplish in this regard cannot be understood
adequately by focusing on a single measure of
money balances. Some observers believe that
the Federal Reserve should devote almost ex ­
clusive attention to the behavior of the narrowly
defined money supply ( M x)— that is, currency
plus demand deposits— in the conduct of m one­
tary policy. We in the Federal Reserve do not
take so narrow a view of our responsibilities.
The public’s demands for currency, for
checking deposits, for savings deposits, and for
a host of other liquid assets are constantly
changing. Financial technology in our country
has developed rapidly in the past 2 0 -3 0 years.
As a rule consumers and business firms no
longer hold all, or even most, of their spendable
funds in the form of currency or demand depos­
its. More and more corporate treasurers have
learned how to get along with a minimum of
deposits in their checking accounts. Consumers,
too, are learning to keep an increasing part of
their transactions and precautionary balances in
the form of savings deposits at commercial
banks, of shares in savings and loan associa­
tions, of certificates of deposit, of Treasury
bills, or other income-earning liquid instru­
ments. Moreover, as yields vary, many individ­
uals and business firms have become accus­
tomed to shifting their liquid resources fre­
quently among these assets. The result is that
no single concept of money now conveys ade­
quately the spendable funds held by the public.
The behavior of the narrowly defined money
supply, M i, can prove to be a misleading guide
to the degree of monetary ease or restraint. For
example, in periods of declining economic ac­
tivity, weakness in transactions demands for
cash and in business and consumer demands for
credit will tend to slow the growth of M x. But




285

during such periods market rates of interest
usually decline and stimulate faster rates of
growth of consumer-type deposits at banks and
nonbank thrift institutions.
For example, the growth of M x since last
summer had been quite modest until recent
weeks. The annual rate of increase in this
measure of money was 1.6 per cent during the
third quarter of 1974, 4 .6 per cent in the fourth
quarter, and 3.5 per cent in the first quarter of
this year. Over this time span, however, the
annual rate of growth of consumer-type time
deposits at commercial banks increased from
7.1 per cent during the third quarter of 1974
to 12.7 per cent in the first quarter of 1975.
The improvement in deposit inflows to nonbank
thrift institutions— that is, mutual savings
banks, savings and loan associations, and credit
unions— was even more pronounced.
During periods of economic expansion, the
behavior of Mj may again be misleading. At
such times large demands for credit and money
are likely to strengthen the growth of
but
interest rates will tend to rise and thereby curtail
the flow of interest-bearing deposits to banks
and savings institutions. A monetary policy for­
mulated on the basis of M x alone would ignore
the pressures of disintermediation that develop
in periods of economic expansion and thus
threaten further damage to the mortgage market
and to the homebuilding industry.
In an effort to avoid errors of this kind, the
Federal Reserve takes into account the behavior
of a variety of monetary and credit aggregates
in conducting monetary policy. W e also pay
careful attention to the condition of financial
markets— that is, to movements in interest rates,
lending terms, the liquidity needs of businesses
and financial institutions, and other variables,
including the international value of the dollar,
all of which must be given weight in the conduct
of monetary policy.
Included with my statement today are four
tables. Two show the recent behavior of a
number of the principal monetary and credit
aggregates, and the others show the recent be­
havior of the various components of the several
measures of money.
Let me describe briefly what is encompassed
in each of these m oney and credit measures.

286

Federal Reserve Bulletin □ May 1975

TABLE 1
Growth in measures of money and credit
Seasonally adjusted percentage change, at annual rates
Y e a r or
q u a r te r

1972
1973
1974

.........................
.........................
.........................

1974— Q l
Q2
Q3
Q4

.............
.............
.............

1975— Q l

N

o te

.— T h e s e

My

m2

m

3

m4

m

5

C r e d it
proxy

8 .7
6 .1
4 .7

1 1 .1
8 .8
7 .4

1 3 .2
8 .8
6 .8

1 2 .5
1 1 .6
1 0 .8

1 4 .0
1 0 .6
9 .1

1 1 .3
1 0 .4
1 0 .2

5 .5
7 .0
1 .6
4 .6

9 .3
7 .9
4 .5
7 .0

8 .9
6 .8
4 .0
7 .0

1 0 .9
1 5 .4
6 .0
9 .2

1 0 .0
1 1 .6
5 .1
8 .6

8 .2
2 0 .4
6 .7
4 .2

3 .5

8 .5

1 0 .3

7 .2

9 .2

3 .1

p e r c e n ta g e

ra tes

of

g r o w th

are

c a lc u la te d

f r o m a v e r a g e l e v e l s in l a s t m o n t h s o f t h e a n n u a l o r q u a r t e r ly
p e r i o d s . P e r c e n t a g e r a t e s o f g r o w t h b a s e d o n q u a r t e r ly a v e r a g e
d a ta w o u ld s h o w

a s o m e w h a t d if fe r e n t p a tte r n .

M1? as I have already noted, includes currency
in circulation plus demand deposits at commer­
cial banks. M2 is derived by adding to M x the
time deposits at commercial banks other than
large-denomination negotiable certificates of
deposit (CD’s). M3 is obtained by adding to M2
the time and savings deposits held at nonbank
thrift institutions—that is, savings banks, sav­
ings and loan associations, and credit unions.
M4 is obtained by adding large CD’s to M2;
M5 is derived by adding large CD’s to M3. This
last measure, M5, is the most comprehensive
of this group, for it includes the currency hold­
ings of the public plus deposits at all financial
institutions. Finally, the credit proxy indicates
the funds that member banks of the Federal
Reserve System have available for lending and
is thus an indicator of changes in their total loans
and investments.
Each of these magnitudes reflects a different
dimension of monetary policy. For example, the
annualized growth rate of M x in the first quarter
of this year was 3.5 per cent, as noted earlier.
Growth in the credit proxy was marginally
lower—reflecting, in part, an outright decline
in the outstanding volume of CD’s and of
nondeposit liabilities of member banks. The
other measures of money, on the other hand,
show growth rates in the 7 to 10 per cent range,
or about as high as in 1973.
Of late, there has been some concern in the
Congress and elsewhere that supplies of money



and credit were not growing rapidly enough.
This judgment, based largely on the behavior
of Mx, could have been avoided by taking a
more comprehensive view of the economy’s
needs for money, credit, and liquid assets, and
how these needs are met by our complex finan­
cial system.
We in the Federal Reserve recognize that the
growth rates of money and credit that are ap­
propriate at any moment of time depend on
underlying economic conditions. At present, our
Nation is experiencing very high rates of unem­
ployment and idle industrial capacity. Thus,
even though an upturn in business activity may
be near at hand, the restoration of full employ­
ment of our labor and capital resources will
remain a central objective of public policy for
many months to come.
The Federal Reserve System is presently
seeking a moderate rate of expansion in the
monetary and credit aggregates. We believe that
the course we are pursuing will promote an
increase in M x of between 5 and IVi per cent
over the 12 months from March 1975 to March
1976. This is a rather high rate of expansion
by historical standards, but it is not too high
when idle resources are extensive and financing
needs still reflect rising prices.
A growth rate of M t in the range of 5 to
IV2 per cent would, we believe, be accompanied
by higher rates of increase in; the other major
monetary and credit aggregates—ranging from
SV2 to 10V2 per cent for M2, 10 to 12 per cent
for M3, and 6 V2 to 9 V2 per cent for the credit
proxy. Increases of this order of magnitude
TABLE 2
Levels of money and credit measures
Seasonally adjusted, billions of dollars
Y e a r or
q u a r te r

1972— D ec.
1973— D ec.
1974— D ec.

Mt

m

2

m

3

m

4

m

5

C r e d it
p roxy

..
..
...

2 5 5 .8
2 7 1 .5
2 8 4 .3

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

8 4 4 .9
9 1 9 .6
9 8 2 .5

5 6 9 .7
6 3 6 .0
7 0 4 .6

8 8 8 .8
9 8 3 .4
1 ,0 7 2 .8

4 0 6 .4
4 4 8 .7
4 9 4 .3

1 9 7 4 — M a r . ..
J u n e ..
S e p t.
.
D e c . ..

2 7 5 .2
2 8 0 .0
2 8 1 .1
2 8 4 .3

5 8 5 .5
5 9 7 .1
6 0 3 .8
6 1 4 .3

9 4 0 .0
9 5 5 .9
9 6 5 .5
9 8 2 .5

6 5 3 .4
6 7 8 .5
6 8 8 .7
7 0 4 .6

1 ,0 0 7 .9
1 .0 3 7 .2
1 .0 5 0 .3
1 ,0 7 2 .8

4 5 7 .9
4 8 1 .2
4 8 9 .2
4 9 4 .3

1 9 7 5 — M a r ....

2 8 6 .8

6 2 7 .4

1 ,0 0 7 .8

7 1 7 .2

1 ,0 9 7 .5

4 9 8 .1

Statements to Congress

would imply a good inflow of deposits to non­
bank intermediaries and a relatively ample sup­
ply of mortgage funds.
These rates of monetary and credit expansion
are sufficient, we believe, to finance a vigorous
econom ic recovery. If past experience is any
guide, the strength of the recovery will depend
principally on the w illingness of the public to
use existing money balances, rather than on the
growth rate of the money stock. The first few
quarters of a cyclical recovery in business ac­
tivity typically witness increases in the turnover
of money that are much larger than the rate of
rise in the money stock. This characteristic of
business-cycle experience is of vital importance
to monetary policy, and it must never be neg­
lected.
We recognize that our capacity to foresee the
future is very limited and that our control of
the monetary ancj credit aggregates is imperfect.
The growth ranges for the aggregates we havp
set out to achieve may need to be adjusted in
one way or another. New information on eco­
nomic and financial developments becomes
available daily, and the course of monetary
policy must therefore be reappraised continu­
ously. In an econom y as dynamic as ours,
subject to unforeseen developments— such as a

TABLE 3
Growth in components of money stock measures
Seasonally adjusted percentage change, at annual rates

Y ear or
q u a r te r

1972
1973
1974

....................
....................
....................

C om m er­
N onbank
c ia l
b a n k tim e d e p o s i­
d e p o s it s
ta r y
o th e r th a n c l a i m s ’
C D s

C u r­
rency

D em and
d e p o s it s

8 .2
8 .3
1 0 .1

8 .9
5 .5
3 .2

1 3 .5
1 1 .4
9 .7

1 6 .8
8 .9
6 .0

3 1 .0
4 5 .3
4 1 .5

C D ’s

1974— Q l

....

Q2
Q3
Q4

....
....
....

1 1 .0
8 .2
8 .0
1 1 .5

3 .8
6 .6
- 0 .2
2 .4

1 2 .8
8 .8
7 .1
9 .0

8 .2
4 .9
3 .1
7 .4

2 6 .3
7 8 .2
1 7 .2
2 5 .9

1975— Q l

....

9 .4

1 .7

1 2 .7

1 3 .1

-2 .2 .

d e p o s i t s in m u t u a l s a v i n g s b a n k s , s a v i n g s a n d l o a n a s s o c i ­
a tio n s , a n d c r e d it u n io n s .
N o t e .— T h e s e p e r c e n t a g e r a t e s o f g r o w t h a r e c a l c u l a t e d
f r o m a v e r a g e l e v e l s in l a s t m o n t h s o f t h e a n n u a l o r q u a r t e r l y
p e r io d s . P e r c e n t a g e r a t e s o f g r o w t h b a s e d o n q u a r t e r ly a v e r a g e
d a ta w o u ld s h o w a s o m e w h a t d if f e r e n t p a tte r n .




287

TABLE 4
Levels of components of money stock measures
Seasonally adjusted, billions of dollars

Y e a r or
q u a r te r

C om m er­
c ia l
N onbank
b a n k tim e d e p o s i­
d e p o s it s
ta r y
o th e r th a n c l a i m s ’
C D s

C u r­
rency

D em and
d e p o s it s

..
..
..

5 6 .9
6 1 .6
6 7 .8

1 9 8 .9
2 0 9 .9
2 1 6 .6

2 6 9 .9
3 0 0 .7
3 3 0 .0

3 1 9 .1
3 4 7 .4
3 6 8 .3

4 3 .9
6 3 .8
9 0 .3

1 9 7 4 — M a r. ..
J u n e ..
S e p t. .
D e c . ..

6 3 .3
6 4 .6
6 5 .9
6 7 .8

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

3 1 0 .3
3 1 7 .1
3 2 2 .7
3 3 0 .0

3 5 4 .5
3 5 8 .8
3 6 1 .6
3 6 8 .3

6 8 .0
8 1 .3
8 4 .8
9 0 .3

1 9 7 5 — M ar.

6 9 .4

2 1 7 .5

3 4 0 .5

3 8 0 .4

8 9 .8

1972— D ec.
1973— D ec.
1974— D ec.

..

C D ’s

1Deposits in mutual savings banks, savings and loan associ­
ations, and credit unions.

major business failure or a disruption of energy
supplies— the econom ic and financial outlook
can change quickly and dramatically. The Fed­
eral Reserve must stand ready to make promptly
such adaptations in the course of policy as may
be needed to minimize economic and financial
difficulties. The Board and the Federal Open
Market Committee therefore meet frequently.
Thus, while I have given you our present views
on the appropriate ranges of growth in the
monetary and credit aggregates, these views
may need to be modified a month or two from
now.
The rates of growth in monetary and credit
aggregates presently desired by the Federal Re­
serve, while appropriate in the present environ­
ment, could not be maintained indefinitely
without running a serious risk of releasing new
inflationary pressures. As the econom y returns
to higher rates of resource utilization, it will
be necessary to reduce the rate of monetary and
credit expansion so that the basis for a lasting
prosperity is laid.
Let me remind this committee that the
principal cause of the current recession is our
earlier failure to bring inflation under control.
As the pace of inflation quickened in recent
years, the seeds of recession were sown across
the economy. Rising prices eroded the purchas­
ing power of workers’ incomes and savings.
Managerial practices of business enterprises be­

288

Federal Reserve Bulletin □ May 1975

came lax, productivity languished, and cor­
porate profits diminished—a fact that business­
men were slow to recognize because of faulty
accounting techniques. New homes, recrea­
tional dwellings, and condominiums were built
on a scale that greatly exceeded the underlying
demand. Inventories of raw materials and other
supplies piled up, often at a reckless pace, as
businessmen reacted to fears of shortages and
still higher prices. Credit demands, both public
and private, soared and interest rates rose to
unprecedented heights. Commercial banks be­
came overextended; the quality of loans tended
to deteriorate, and the capital position of many
banks was weakened.
These basic maladjustments are now being
worked out of the economic system by reces­
sion—a painful process that could have been
avoided if the inflation had not gotten out of
control. Fortunately, the rate of inflation has
declined substantially in recent months, but the
behavior of prices is still unsatisfactory. The
general price level still appears to be rising at
a 7 to 8 per cent annual rate; wage increases
continue to exceed by a wide margin the longrun trend of productivity; and interest rates
remain at high levels by historical standards.
The menace of inflation is by no means behind
us. Defeat of inflationary forces must therefore
remain a major goal of public policy.

The Federal Reserve is firmly committed to
do what it can to restore general price stability
in this country. The Federal Reserve is also
firmly committed to restore full employment in
this country.
During the next year this Nation can, and I
believe it will, make progress toward the
achievement of both of these objectives. The
immediate need is to get the economy moving
again. But as we go forward, I hope we will
be mindful of the damage that has been wrought
in our economy by allowing inflation to get out
of control, and that we will deal resolutely with
the serious longer-range economic problems
facing our country. A better measure of disci­
pline is needed in Federal finances. The pro­
gressively diminishing fraction of the national
income that goes to people who work and invest
requires searching scrutiny. Regulatory prac­
tices that weaken private enterprise need to be
relaxed or scrapped. Ways must be found to
stimulate production of energy ’supplies, to in­
crease incentives for expansion and moderni­
zation of productive capacity in other lines, and
to strengthen the state of business finances.
Attention to these longer-range problems is
essential; for the critical task now facing our
country is not only to encourage the process of
economic recovery but also to build a solid
foundation for our Nation’s economic future.

Statem ent by G eorge W. M itchell , Vice Chair­
m an , B oard of G overnors of the Federal R e ­
serve System , before the Subcommittee on D o ­
mestic M onetary Policy of the Committee on
Banking , Currency and H ousing , U.S. House
of R epresentatives, M ay 8, 1975.

The bill would authorize the GAO to conduct
an annual audit, and in so doing the Comptroller
General would be accorded access to such
records, including reports of examinations of
member banks, from whatever source, as he
finds necessary for the conduct of the audits.
The Comptroller General would be required to
submit a report of each audit to the Congress.
As we understand the bill, the Comptroller
General would be granted virtually unrestricted
authority to look into the financial and opera­
tional aspects of the Federal Reserve System and
would thus have the authority to review and
evaluate all aspects of Federal Reserve activi­
ties, including formulation and implementation
of monetary policy.

Mr. Chairman and members of the subcommit­
tee, I welcome the opportunity you have af­
forded me to present the views of the Board
of Governors on H.R. 4316, a bill to authorize
and direct the General Accounting Office to
audit the Federal Reserve Board, the Federal
Advisory Council, the Federal Open Market
Committee, and the Federal Reserve Banks and
their branches.



Statements to Congress

The Board of Governors over the years has
consistently opposed such proposals. Our ob­
jections stem not from any reservations about
the GAO, which enjoys a well-deserved reputa­
tion for competence and integrity. Rather, our
objections stem from a basic concern about the
optimal functioning of the Nation’s money and
credit system.
In summary, the Board believes:
1. An audit by the GAO of the Federal
Reserve System’s accounts and expenditures,
compliance with applicable laws and regula­
tions, and efficiency and economy of operations
would be a needless duplication of present ef­
forts and would result in unnecessary additional
expenditures.
2. To go further and authorize the GAO to
audit Federal Reserve policies, including the
processes by which those policies are reached,
would unwisely inject a third party into the
sensitive area of monetary policy. This would
run contrary to congressional decisions over the
years based on the view that noninterference
with the internal management of the Federal
Reserve would, in the long run, provide better
monetary and credit policies. We believe the
Congress has acted prudently and that the Sys­
tem should not be inhibited, directly or indi­
rectly, from exercising its best professional
—and entirely independent—judgment.
3. The recent passage of House Concurrent
Resolution 133 by the Congress has sharply
altered the context in which the question of a
GAO audit must be considered. As you know,
this resolution provides for a direct “ audit” of
Federal Reserve policy by the congressional
principals—the Committee on Banking, Cur­
rency and Housing in the House of Repre­
sentatives and its counterpart in the Senate.
Thus, a policy audit by the GAO not only could
fault public policy but also would be literally
redundant to the action taken by the Congress
this year.
4. Certain functions and activities of extreme
sensitivity having to do with bank examinations
and international monetary relations would be
or would need to be substantially modified were
a GAO review to be put into effect. The need
for exclusion of these activities was recognized
to some degree in the bill (H.R. 10265) reported




289

by the full Committee on Banking and Currency
in the 93rd Congress, and to a greater extent
in the bill finally adopted by the House of
Representatives last year.
With your permission, I’d now like to sketch
briefly the background on this subject.
1. From its establishment in 1913 until 1921
the Board of Governors was audited by the
Treasury.
2. The Congress created the GAO in 1921.
For the next 12 years the Board of Governors,
but not the Federal Reserve Banks and branches,
came under the GAO’s scrutiny.
3. The Banking Act of 1933 provided that
the Board’s funds should not be construed to
be “ Government funds or appropriated
moneys.” In this Act, the Congress deliberately
voted to remove the Board from the jurisdiction
of the GAO. The purpose, described in a com­
mittee report, was to “ leave to the Board the
determination of its own internal management
policies.”
4. In the years between 1933 and 1952, audit
teams from Federal Reserve Banks performed
the audit of the Board’s books.
5. Beginning in 1952 and continuing up to
this time, the Board, using the discretion that
the Congress provided, voted to employ nation­
ally recognized public accounting firms to per­
form this function in order to assure an inde­
pendent oversight of the Board’s administrative
activities. Each year the audit report is repro­
duced in the Board’s Annual R eport , and copies
of the audit report are furnished to this commit­
tee and to the Senate Committee on Banking,
Housing and Urban Affairs.
6. Meanwhile, year in and year out, the
Board’s examiners have examined the Reserve
Banks. Since 1952 the procedures used by the
Board’s examination staff have been observed
by the outside accounting firms employed to
audit the Board’s books. This provides an ex­
ternal evaluation of the adequacy and effec­
tiveness of the examination procedures. A copy
of the latest such report, from Touche Ross &
Company, was recently transmitted to this
committee and to the Senate Committee on
Banking, Housing and Urban Affairs, along
with a response to the report prepared by the
Board’s staff.

290

Federal Reserve Bulletin □ May 1975

7. In 1945 during hearings on the Govern­
ment Corporation Control Act, the GAO ex­
pressed the view that the Reserve Banks should
be excluded from the Act because they are
examined frequently and thoroughly by exam­
iners under the direction of the Board of Gover­
nors.
8. In 1954 at hearings on H.R. 7602, the
Bureau of the Budget stated that the inde­
pendence of the Federal Reserve System was
“ an important cornerstone of the Administra­
tion’s fiscal and monetary policies.”
THE INTEGRITY
OF THE CENTRAL B A N K
This brief chronology indicates, among other
things, that both the Board of Governors and
the Boards of Directors of the Federal Reserve
Banks have traditionally been committed to
thorough audits of System activities. We are so
committed because the Federal Reserve System
has the responsibility, above everything else, of
maintaining the integrity of its operations as the
Nation’s central bank.
These audits not only serve to meet the re­
sponsibility that the Congress has placed on the
Federal Reserve but also serve to remove any
doubt, throughout a world that uses the dollar
as a reserve and a vehicle of currency, as to
the integrity of the System’s accounts. This
involves a full and prompt disclosure of Federal
Reserve assets and liabilities and the assurance,
given the powers conferred upon it by the
Congress, that the Federal Reserve stands ready
and able to meet the commitments on its balance
sheet at home and abroad.
In 1974 the Reserve Banks handled 21.8
billion pieces of currency and coin having a
value of $63.9 billion. Of the 26 billion checks
written in 1974, 11.7 billion checks in the
amount of $4.4 trillion, passed through the
System. In addition, 14.5 million wire transfers,
which moved $30 trillion, were handled, and
2.5 billion food coupons, having a value of $5.6
billion, were redeemed and destroyed. To per­
form these functions as well as the numerous
transactions in securities,1 which also involve
xS ee p . 2 9 5 for in form ation on the v o lu m e o f secu ri­
ties transactions.




billions of dollars, with a minimum loss or
defalcation, requires a comprehensive control
and audit program. If we have erred in the extent
of control, it has been toward overcontrol, and
it has been intentional. No system is perfect,
and we have had our occasional difficulties and
problems, which have not been hidden from
public view; but the record shows a high rate
of success in preventing irregularities.
We believe that a GAO audit would duplicate
the audit costs and resources the Federal Re­
serve must, by necessity, incur regardless of any
audit activity on the part of the GAO. The
System spends $8.5 million annually for audit­
ing the Reserve Banks and the Board. While
this is a large sum of money, it is less than
1 l/i per cent of the total expenses of the System
and is miniscule in comparison with either the
assets or the transactions that the audit program
is designed to protect.
The Congress originally established the Board
of Governors, which is an agency of the Gov­
ernment, as the organizational unit designated
by the Congress to review the operations of the
Reserve Banks. The record clearly shows the
Board is continuing to fulfill this charter.

THE FEDERAL RESERVE SYSTEM
AU DIT PROGRAM
Let me briefly summarize our audit program.
First, we have audits of financial operations and
legal compliance. Audits of this type are per­
formed on an unannounced basis in the various
departments of each Reserve Bank and branch
by the internal auditors on a frequency schedule
agreed to by the System’s Conference of Gen­
eral Auditors and approved by the Board’s staff.
Also, once each year, the Board’s examiners
perform a financial examination in each Bank
and branch, which includes a review of compli­
ance with approved procedures, policies, and
regulations. Thus, at least twice each year the
assets and liabilities of each Bank and branch
are verified or confirmed. Going beyond this,
policies, procedures, and transactions are re­
viewed at each location by internal auditors to
evaluate how well the organization carries out
its programs and activities and how well it uses

Statements to Congress

its financial, property, and personnel resources.
There is latitude in the scope of these reviews
because it can always be expanded if conditions
warrant a review in greater depth. To provide
further assurance, at least once in 3 years the
Board’s operations analysts review the operating
functions of each Reserve Bank and each
branch. These reviews are more than a routine,
periodic check for their scope and frequency
reflect deficiencies observed by the Board’s fi­
nancial examiners, deficiencies or problems
reported by internal auditors, the occurrence of
irregularities, conditions found at the previous
review performed by the operations analysts,
requests from Bank management or Boards of
Directors, and other situations. In most cases,
the reports comment on management attention,
planning, sufficiency and effectiveness of
supervision, adequacy of staff, staff knowledge,
procedures employed, adequ^py of facilities,
and operating problems. Also, recommenda­
tions are made to improve procedures either to
increase efficiency or to provide better controls.
H.R. 4316 provides specific authority for the
GAO to audit both the Federal Open Market
Committee and the System Open Market Ac­
count. The Committee by statute is exclusively
a policy-making body. The Committee has de­
signated the Federal Reserve Bank of New York
to carry out transactions, including open market
operations in domestic securities markets and
in foreign currency transactions, for the 12
Reserve Banks. The annual examination of the
New York Bank includes a comprehensive ex­
amination of the accounts relating to these
transactions. The internal auditors in the New
York Reserve Bank also conduct a continuous
audit of these transactions. Both the audits and
the examinations include procedures to deter­
mine that open market operations are consistent
with directives from the Federal Open Market
Committee.
In the last few years, with the advent of
extensive use of computers, the Board’s staff
and the audit departments in the Reserve Banks
have developed a comprehensive electronic data
processing review procedure. In late 1974 the
Board employed a nationally recognized con­
sulting firm to review our staff’s procedures and
to make recommendations for further improve­



291

ments. The following statement was included
in the report prepared by the consultants:
I am very impressed with the quality of
the staff you have organized. They have a
good appreciation of the balance needed
between management concerns, audit re­
quirements, and complex technical analysis
in the EDP area. We have worked with many
organizations on EDP audits in the past few
years. Your organization matches the very
best that we have worked with in large
commercial banks, financial institutions, and
multidivisional corporations. I am pleased to
see that the Federal Reserve System is in
the forefront of this previously neglected,
but critical, area of EDP operational audit.

Another examination activity performed by
the Board’s staff covers the internal audit
departments in the Reserve Banks. Our staff not
only reviews the monthly reports of audit activ­
ities and findings prepared by the Bank’s Gen­
eral Auditors but on-site visits are made to
review and observe programs and practices. The
competence and effectiveness of the staff and
supervisors are also appraised during these
visits, and an evaluation is made concerning the
independence of the General Auditor from Bank
management.
Organizationally the audit function in a Re­
serve Bank is independent of the Bank’s man­
agement as the General Auditor is the only
individual in a Bank, except for the President,
who reports directly to the Chairman of the
Board of Directors. In addition, each Bank’s
Board of Directors has an Audit Committee,
which meets frequently with the General Audi­
tor to discuss his reports. Well before it was
a general practice for directors of private enter­
prises to have an audit committee, the Reserve
Banks had this feature in their organization. The
independence of the General Auditor is further
strengthened by the fact that appointments to
the position are made by each Bank’s Board
of Directors, not Bank management, and ap­
proved by the Board of Governors. Likewise,
salary adjustments for incumbents in the posi­
tion are recommended by the Board of Directors
at each Bank and approved by the Board of
Governors.
Thus, there are at least three lines of defense
at the Reserve Banks against irregularities. The
first is the operating management of the Bank;
the second is the internal auditing staff directed

292

Federal R eserve Bulletin □ M ay 1975

by the Bank’s Board of Directors; and the third
is the examination staff, which works under the
direction of the Board of Governors. Each of
these groups is also committed to improving
operating effectiveness.
From time to time Boards of Directors of
individual Banks have also had public account­
ing firms review their auditing departments for
further assurance that the programs and person­
nel are effective and up to date. In these cases,
the primary difference in the recommendations
made by the outside firms and those of the
Board’s staff is that the Board’s staff has insisted
on either more frequent or more in-depth audits
than have the outside firms.

ECONOMY AND
EFFICIENCY OF OPERATIONS
Now let me comment on the System’s commit­
ment to economy and efficiency of operations.
While the integrity of Federal Reserve System
statements and accounts relating to assets, lia­
bilities, and operations is of paramount impor­
tance to the Board of Governors, the prospective
expenditures of the Banks also receive continu­
ous scrutiny and attention. Budgets are initially
prepared by management in the Banks, under
general guidelines from the Board of Governors.
The budgets are then reviewed by each Bank’s
Board of Directors and adjusted if, in the judg­
ment of the Directors, such adjustment is
needed. The staff of the Board of Governors
also reviews the budgets and resolves issues
related to unusual requests and adherence to
guidelines. This review incorporates a detailed
analysis of rates of expense growth in the Banks
arising from new initiatives, volume increases,
and increasing operating costs in order to satisfy
the Board as to the reasonableness of the pro­
jected expenditures. Final approval, in light of
the foregoing review, is given by the Board of
Governors.
During recent years the volume of operations
in the Reserve Banks has grown significantly,
and several new areas of responsibilities have
been added to our workload. As you know, the
Congress has given the Federal Reserve in­
creased, or new, responsibilities for supervision




and regulation of bank holding companies, truth
in lending, fair credit billing, equal credit op­
portunity, and “unfair or deceptive” practices
by banks. We have also lived up to our assur­
ances to the Congress to reduce float in the
payments mechanism. Through changes in reg­
ulations, improvements in the check trans­
portation system, and establishment of regional
check processing centers and automated clearing
houses, the average daily payments mechanism
float has been reduced from $3.5 billion in 1969
to $2.3 billion in 1974. Without the improve­
ments initiated by the Federal Reserve System,
the float would now be in the range of $5.6
billion.
Even with the added assignments, the budget
discipline imposed within the Federal Reserve
System has held growth in its expenses to rea­
sonable dimensions. During the period 1970
through 1973, total System expense growth
averaged 15 per cent per year. A report on
Reserve Bank expenses for 1,974, which repre­
sented further improvement, was recently trans­
mitted to this committee and to the Senate
Committee on Banking, Housing and Urban
Affairs. That report showed an increase in ex­
penses in 1974 of 12.1 per cent over the ex­
penses in 1973. We believe this is an excellent
record in light of our expanding responsibilities
and the cost trends in the economy. Moreover,
the System’s approved total expense budget for
1975 represents a targeted increase of only 10.3
per cent above 1974 expenses.
In addition to the programs carried on by
internal auditing departments in the Reserve
Banks and by the Board’s staff of operations
analysts for improving operating procedures and
making them more effective and efficient, the
Conferences of Reserve Bank Presidents and
First Vice Presidents have developed an effec­
tive program that focuses upon improving the
efficiency of operations. Bank planning depart­
ments, inter-Bank operations research groups,
and task forces with Board staff participation
are working out most of the technological adap­
tations needed in the System’s electronic ac­
counting, automated currency handling, and
electronic fund transfer systems. Outside con­
sultants are employed on an ad hoc basis as
needs develop.

Statements to Congress

CAPACITY FOR
INDEPENDENT JUDGMENT
Let me say a word now about the need to
maintain the present capacity of the System to
exercise, within the Government, its best judg­
ment regarding monetary policy without being
unduly affected by external pressures. Even
many who oppose this or that action of the
Federal Reserve willingly concede that the
maintenance of independent judgment by the
Nation’s central bank is essential if monetary
policy is to play its proper role in achieving
economic stability and growth, a high level of
employment, and stability in the purchasing
power of the dollar. This independence is not
absolute, of course. Since the Federal Reserve
System is a creation of the Congress, the System
is clearly accountable to the Congress, and we
attempt to meet our responsibilities to the
Congress and the public fully and consci­
entiously.
ESesides publishing more detailed information
about its activities than any other central bank
in the world, the Federal Reserve furnishes a
steady flow of information to the Congress. Our
release of data about Federal Reserve operations
is continuous and wide-ranging, covering trans­
actions on a daily, weekly, monthly, quarterly,
annual, and ad hoc basis. Members of the Board
testify frequently at congressional hearings on
the System’s policies and operations, and the
Board responds promptly to the congressional
inquiries that come to us every working day.
In the past, when requested, we have provided
congressional committees, on a confidential
basis, with volumes of materials pertaining to
audit and examination procedures, as well as
reports of examinations of Federal Reserve
Banks.
It is clear that the Congress and its commit­
tees have the right to inquire into the effec­
tiveness with which the System is discharging
its responsibilities. And, as I have already
noted, today’s discussion occurs in a framework
entirely different from that which prevailed in
1973 and 1974. By the adoption of House
Concurrent Resolution 133, the Congress has
established a systematic mechanism for the re­
view of Federal Reserve monetary policy.
Under the terms of the resolution, the full



293

Committee on Banking, Currency and Housing
will hold semiannual hearings in conjunction
with its Senate counterpart to hear “the Board
of Governors’ and the Federal Open Market
Committee’s objectives and plans with respect
to the ranges of growth or diminution of the
monetary and credit aggregates in the upcoming
twelve months.” In short, the Congress has
established a policy “ audit” of monetary policy
in the most direct and responsible manner
through the expedient of the congressional
oversight hearing. We have every confidence
that the two banking committees will do an
exemplary job in overseeing monetary policy.
(I should note that the first of these hearings
was held on May 1.)

ACCESS TO
CERTAIN INFORMATION
My final point goes to the System’s concern
about the access by any outside organization to
certain System records, operations, and trans­
actions. These records include examination
reports of commercial banks, transactions con­
ducted with and on behalf of foreign central
banks, and information about open market and
lending operations.
The record of the Federal Reserve in making
information relative to its operations available
should demonstrate that we do not begin with
any bias for secrecy per se. In fact, a great deal
of effort is required to properly protect certain
information. We recognize, too, that the GAO
now is accorded access to highly sensitive in­
formation in the Department of Defense and in
other departments and agencies and that no
compromise of security results from these ar­
rangements. Nevertheless, we firmly believe
that there are compelling reasons that argue for
the maintenance of certain information—in the
possession of the Federal Reserve—from access
by any outside organization. Public knowledge
that the GAO—or anyone else—had review
powers over such information could have an
adverse effect on the bank supervisory process,
would alter our relationships with foreign gov­
ernments and central banks, and might necessi­
tate a change in our open market and discount
functions.

2 94

Federal R eserve B ulletin □ M ay 1975

An audit by the GAO of foreign accounts held
by the Federal Reserve System, we believe,
would jeopardize the existing relationships be­
tween foreign monetary institutions, the Federal
Reserve, and the U.S. Treasury. It could, as
a result, aggravate the Nation’s international
financial relationships.
Foreign monetary authorities channel a sub­
stantial proportion of their dollar transfers and
U.S. dollar reserve holdings through their ac­
counts with the Federal Reserve Banks. Nearly
130 foreign central banks, foreign governments,
and international financial institutions have ac­
counts with Federal Reserve Banks. These cor­
respondents held $60 billion of U.S. Treasury
and Federal agency securities in their accounts
at the end of 1974. During 1974 transactions
in these securities through their accounts at the
Reserve Banks totaled $85 billion. These trans­
fers and investments are often the counterpart
of official foreign exchange intervention or offi­
cial reserve investment operations that reflect
sovereign actions and policies these authorities
insist on keeping confidential. It is their explicit
understanding that use of an account with a
Federal Reserve Bank maintains this confiden­
tiality. Only those employees with a need-toknow have access to the information concerning
foreign transactions. Extreme care is taken in
assigning either internal auditors or examiners
from the Board of Governors, although no
compromises in the sufficiency of the audits are
tolerated.
Just what action the foreign central banks,
foreign governments, and international financial
institutions might take if the confidential status
of accounts with Reserve Banks were not main­
tained cannot be predicted with certainty. It is
probable, however, that their use of accounts
at the Federal Reserve Banks would be consid­
erably curtailed. They might even change the
composition of their reserve holdings so that the
dollar assets would be a smaller part.
Action that resulted in transferring the in­
vestments of foreign official institutions to non­
governmental financial institutions would make
it more difficult for the Federal Reserve System
to conduct its open market operations because
the Federal Reserve would no longer be able
to coordinate its own very large transactions



with the comparably large transactions that it
conducts on behalf of foreign monetary authori­
ties. There would also be a reduced flow of
financial information, and the relationships
maintained with foreign financial institutions
and governments could be harmed.
A similar issue was discussed when legisla­
tion (Public Law 91-599) was being considered
regarding audits of the Exchange Stabilization
Fund by the GAO. The following is quoted from
the hearings pertaining to that legislation:
T h e E x c h a n g e S t a b i l i z a t i o n F u n d d e a l s in
e x tr e m e ly c o n fid e n tia l a n d h ig h ly s e n s it iv e
m o n e t a r y tr a n s a c tio n s w ith f o r e ig n g o v e r n ­
m e n t s . It i s im p o r t a n t n o t o n l y th a t s u c h
tr a n s a c tio n s a n d th e a r r a n g e m e n ts u n d e r ly ­
i n g t h e m r e m a i n c o n f i d e n t i a l b u t a l s o th a t
n o t h i n g b e d o n e w h i c h w o u l d in a n y w a y
i m p a ir t h e c o n f i d e n t i a l i t y o f s u c h t r a n s a c ­
tio n s . T h e p r o s p e c t o f d e c is io n s o f th e S e c ­
r eta ry o f th e T r e a s u r y w ith r e s p e c t to tr a n s­
a c tio n s th r o u g h th is F u n d b e in g s u b je c te d to
p o s s ib le p u b lic q u e s tio n a n d d e b a te w o u ld
u n d o u b t e d ly b e d is tu r b in g to m a r k e ts a n d to
fo r e ig n g o v e r n m e n ts , a n d w o u ld th e r e fo r e
h a m p e r th e u s e o f th e F u n d b y th e S e c re ta r y
o f t h e T r e a s u r y f o r it s in t e n d e d p u r p o s e .

The Congress wisely recognized that foreign
exchange operations and other aspects of inter­
national financial policy must not be subject to
premature disclosure under any.circumstances.
The legislation exempted “ information deter­
mined by the Secretary to be of an internation­
ally significant nature” from audit by the GAO.
We believe providing the; GAO access to
“reports of examination of member banks, from
whatever source,” as H.R. 4316 would do,
could reduce the flow and change the character
of communications essential to effective bank
supervision. It should be emphasized that al­
though the Federal Deposit Insurance Corpora­
tion is audited by the GAO, reports of exami­
nation of insured banks are properly exempt
from the scope of the audit authority. Neither
does the GAO have access to reports of exami­
nations conducted by the Comptroller of the
Currency. Enactment of H.R. 4316, as it is
presently worded, could give the GAO access
to reports of examination prepared not only by
the Federal Reserve but also by the other super­
visory agencies. We strongly oppose providing
such access to the GAO. In this connection, I
might note that H.R. 10265, as reported by the
full committee in 1973, provided an explicit and

Statements to Congress

complete exemption for both transactions con­
ducted on behalf of foreign central banks and
examination reports of member banks.
We also believe it would be unwise to allow
access to specific files and memoranda contain­
ing information relating to Federal Reserve
Bank lending cases. It has long been an estab­
lished practice in the field of banking that private
information relating to a borrower and made
available to the lending institution is held in
strictest confidence. This practice is founded on
the very sound principle that the lender should
have access to all the information it needs to
make a prudent lending decision without expos­
ing the borrowers’ private, internal plans and
operations to scrutiny by its competitors or the
public. As with other forms of banking, lending
to a member bank requires the borrower to
provide confidential information on its financial
condition and internal operations as well as
certain plans. Administration of such credit re­

295

quires very candid communications between the
borrowing bank and the Reserve Bank with
respect to problems a bank may be encountering
in its day-to-day operations and the specific
strategies that it plans to follow to remedy its
difficulties. Because the information required
from borrowing banks is sensitive, we strongly
oppose providing anyone access to these files
except those charged with the responsibility for
the lending function.
At a time when financial markets are already
nervous, when citizens of this country are fear­
ful of the inflationary impact of the growing
Federal deficit, and when foreign central banks
are looking to the Federal Reserve for leadership
in international financial matters, enactment of
this legislation would be particularly unfortu­
nate. We see no need to risk damaging effects
upon our efforts toward international financial
negotiations or to risk reinforcing the financial
uncertainties at home.
□

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM:
STAFF MEMORANDUM
S e c u r it ie s

In

1974

th e

T r a n s a c t io n s

F ederal

R eserv e

F ederal

o f

Banks

is s u e d ,

R eserve

re­

d e e m e d , a n d e x c h a n g e d U .S . G o v e r n m e n t s e c u r i­

B ank s

r e v e r sin g

e n a b le s

th e

m arket

m is in te r p r e ta tio n o f S y s t e m

to

a v o id

p o s s ib le

a c tiv it ie s .

t ie s v a lu e d at $ 3 . 0 8 tr illio n .
fo r th e p u r p o s e o f o f f s e t t in g th e p o t e n tia lly d e s t a ­

Volume of System Open Market Operations
Transactions in Government Securities in 1974

b i l i z i n g m a r k e t i m p a c t o f s h o r t - t e r m v a r i a t i o n s in

(In m illions of dollars)

T h e b u lk o f S y s t e m o p e n m a r k e t o p e r a tio n s a re

m e m b e r b a n k r e s e r v e s a r is in g fr o m s u c h te c h n ic a l
f a c t o r s a s m o v e m e n t s in b a n k f lo a t a n d c h a n g e s

Type

Amount

in t h e T r e a s u r y d e p o s i t b a l a n c e a t F e d e r a l R e s e r v e
B a n k s . T o a c h ie v e th is p u r p o s e , th e F e d e r a l R e ­
s e r v e m a k e s e x te n s iv e
m en ts

and

m a tch ed

u se

o f rep u rch a se

s a le -p u r c h a s e

agree­

tr a n s a c tio n s .

T h e v o l u m e o f s u c h t r a n s a c t i o n s in 1 9 7 4 a m o u n t e d
t o s o m e w h a t m o r e t h a n $ 1 7 2 b i l l i o n ( o r t w i c e th a t
if b o th

th e

about 88

s a le

per

and p u rch ase

cen t o f

th e

are

to ta l o f

in c lu d e d ),
sy ste m

or

open

m a r k e t tr a n s a c tio n s o f a p p r o x im a te ly $ 1 9 5 b illio n .
W h e n th e S y s te m u s e s r e p u r c h a se a g r e e m e n ts a n d
m a tc h e d s a le -p u r c h a s e

tr a n s a c tio n s , m a r k e t p a r ­

tic ip a n ts im m e d ia t e ly u n d e r s ta n d th a t th e S y s t e m
is o n ly te m p o r a r ily s u p p ly in g (a b s o r b in g ) r e s e r v e s ,
a n d t h a t t h i s p r o c e s s w i l l b e r e v e r s e d in a s h o r t
p e r io d .
The

k n o w le d g e




th a t

th e

p rocess

is

s e lf-

Repurchase agreem ents ....................................................
M atched sale-purchase transactions ...........................
Outrights:
Treasury bills—
Purchases ......................................................................
Sales ................................................................................
Treasury notes and bonds—
Purchases ......................................................................
Sales ................................................................................
R edem ptions ................................................................
Federal agencies—
Purchases ......................................................................
Sales ................................................................................

108,147
6 4 ,2 2 8

T otal ..........................................................................

19 4 ,6 9 9

11,659
5 ,8 2 9
1,746
........
........
3,0 8 7
3

N o t e .— D ata for repurchase agreem ents and matched
sale-purchase transactions reflect the initial side of these trans­
actions only. Thus, for exam ple, the total for repurchase
agreem ents is the sum o f purchases made by the System under
such contracts, and it does not include the subsequent resale
of securities back to their original ow ners.

296

Federal R eserve Bulletin □ M ay 1975

Statement by Robert C. Holland, Governor,
Board of Governors of the Federal Reserve
System, before the Committee on Banking,
Currency and Housing, U.S. House of Repre­
sentatives, May 12, 1975.
I am pleased to meet with this committee to
present the views of the Board of Governors
of the Federal Reserve System on H.R. 6676.
This bill would establish a program of manda­
tory reporting on the volume of commercial
bank credit channeled to various categories of
credit that are designated as national priorities.
It raises serious and complex issues that extend
to the fundamental structure of our economic
system and to our Nation’s primary reliance on
market processes to resolve the allocation of
credit among competing uses.
The stated purpose of the bill is “to maximize
the availability of credit for national priority
uses.” Although the bill does no more than
establish a mandatory reporting system at this
time, it could facilitate later efforts to impose
mandatory credit controls and, by the force of
what is perceived as congressional intent, it
might well influence current lending policies at
banks. In any event, the bill is likely to be
construed by the market as a first step in the
direction of a credit allocation program that
could ultimately supplant the decision-making
processes of the private market. In the Board’s
view, moving in this direction would represent
a grave error for no good substitute has been
found for our highly developed and intensely
competitive private financial markets in distri­
buting credit resources.
Any governmental program for allocating
credit on a priority basis at commercial banks
would be subject to serious problems. There is,
first of all, the fundamental question of choosing
which specific credit uses should be accorded
a “national priority” designation and which
should be denied it. Second, borrowing at
banks—which is all that is covered by this
bill—represents only one, highly variable, part
of the total flow of credit being channeled into
various uses by our financial system. For ex­
ample, over the last 5 years banks have pro­
vided, on average, about three-eighths of the
total nonfinancial funds raised in our credit



markets. Furthermore, many customers who
have borrowed from banks also have ready
access to other sources of credit. Thus, if a
particular customer, or class of customer, were
to be denied access to bank credit, he might
well be able to obtain funds in the open market
or from other institutional lenders.
On first glance it might seem that if certain
bank customers were to be diverted to the mar­
ket, more funds would be left in the bank for
lending to higher-priority users or to those not
having access to nonbank sources. However,
banks must compete in the market for funds like
anyone else. To the extent that former bank
customers would also turn to the open market
for financing, interest rates would tend to rise,
raising the cost of funds to banks and reducing
their willingness to lend, except at higher loan
rates and on stiffer nonprice terms. Thus, look­
ing at the results in credit markets as a whole,
designated priority credit users at commercial
banks might well find that the cost of funds had
risen and the availability had’become limited.
Efforts to deal with these shortcomings would
ultimately require a credit control program
going beyond the banks and encompassing all
suppliers of funds. Such a comprehensive credit
control program is just not feasible in this
country, at least in peacetime. Controls would
need to include not only banks but also other
institutional lenders, such as mutual savings
banks, savings and loan associations, finance
companies, insurance companies, and pension
funds. The open markets for debt and equity
securities would need to be covered, not to
mention the network of trade credit. Moreover,
borrowers’ access to credit obtained from
abroad would have to be regulated.
Any attempt to impose a comprehensive
credit allocation program would disrupt the or­
derly processes of financial markets and could
well lead to imbalances in the markets for goods
and services. The present bill, of course, does
not establish such a program. The basic diffi­
culty, however, is that market participants may
come to believe that it will lead to over-all,
mandatory credit controls or, at a minimum, to
controls on banks alone. When and as this
conviction becomes strong among private bor­
rowers, they would be likely to protect them­

Statements to Congress

selves by borrowing substantial sums in antici­
pation of their future credit needs. Such actions
would tend to exert upward pressure on interest
rates and would tend to work to the disadvantage
of borrowers with limited flexibility—such as
homebuyers, small businesses, and consumers.
Given the possibility that this bill will be
interpreted as a step in the direction of manda­
tory credit allocation, the Board believes that
the bill should not be enacted. To the extent
that the collection of information on credit uses
from commercial banks is necessary, the Board
believes that it should continue to be on a
voluntary basis.
The Board has already been collecting some
credit use information from a sample of about
125 large banks. The initial survey was under­
taken in January of this year and was designed
to determine how banks had adapted their lend­
ing policies in light of a statement issued by
the Federal Advisory Council in September
1974. (See the Federal Reserve B u l l e t i n for
March 1975, pages 129 and 130, for a summary
of responses to the initial survey.)
The initial survey showed that banks contin­
ued to respond to the expressed credit needs of
businesses, homebuilders, and individuals. The
number of loan requests for financial or specu­
lative purposes had dropped off to a much lower
level than usual, and 90 per cent of the banks
reported that they had approved either none at
all or a significantly smaller-than-normal
proportion of such applications.
The Federal Advisory Council’s statement
was issued during a period of monetary re­
straint, and economic and financial conditions
have, of course, changed considerably since
then. A second survey, on which we made some
modifications in light of our experience with the
first survey, was conducted in April. We do not
have a complete tabulation of responses yet, but
I can report that about three-fifths of the
respondents in our latest survey found that
problems of allocating credit at their individual
banks were significantly less than in the fall of
last year. In the January 1975 survey only
one-third had so indicated. Allocation of credit
among competing creditworthy borrowers is
clearly fading as a problem at our banks, re­
flecting both the larger inflows of funds and the



297

smaller over-all demands for credit that they are
now experiencing.
The banks surveyed have cooperated very
well in these two surveys. In developing the
questions for the surveys, the Board has had
to take into account the practical availability of
information at banks and the desirability of
avoiding heavy administrative and cost burdens.
Most of the material obtained has been qualita­
tive rather than quantitative in nature because
the banks simply are unable to provide actual
dollar figures without reviewing and reclassify­
ing all of their loans. That would be a very
costly process.
The Board could, of course, revise the ques­
tionnaire to seek quantitative data on a voluntary
basis should the Congress so direct. But it must
be kept in mind that the resulting information—
though appearing to be hard numbers—might
not be of much value for the public purposes
being sought.
Our long experience in data collection indi­
cates that it is difficult to define lending cate­
gories that can be related in a meaningful way
to customer uses of the funds borrowed. Money
is an all-purpose commodity. Virtually all bor­
rowers have funds that become available from
a variety of sources, and they make expenditures
for a variety of purposes. It is difficult to sort
these various sources and uses of funds into
particular pockets, even when both borrowers
and lenders have the best intentions. But when
one kind of credit use is indicated to be preferred
over another, both parties to the loan transaction
will tend to take advantage of the fungibility
of money to classify the purpose as being for
the preferred use.
This is a shortcoming of any system of loan
classification by purpose. But the loan classifi­
cations for indicated priority uses contained in
this bill involve other difficult definitional and
interpretive problems as well. In many cases,
for example, the definitions could be interpreted
as involving the need for subjective judgments
on the part of banks—such as deciding which
loans represent funds for ‘'essential structures
and equipment” or for “uses essential to or­
derly functioning of markets.” These judgments
would be likely to differ bank by bank so that
the reported results could mean little in the

298

Federal R eserve B ulletin □ M ay 1975

aggregate. Moreover, if the banks utilize na­
tional priority categories as a basis for discrim­
inating among borrowers, the subjectivity of
interpretation could lead to inequitable treatment
of borrowers as some banks apply stricter
standards than others.
There is also a practical problem at this mo­
ment—H.R. 6676 might adversely affect the
urgently needed economic recovery. The bill’s
mandated questionnaire on national priority uses
of credit, under current circumstances, could
have counter-productive effects in terms of
stimulating economic recovery. It would create
uncertainties at banks as to interpretation. It
would run the risk that some banks, already in
a cautious frame of mind, might hold back on
approving some otherwise sound credits for fear
that they might be inconsistent with the priority
scheme.
Thus, it is doubtful, in the Board’s view,
whether such a survey of credit allocation is
desirable at this time when private credit de­
mands on banks are extremely weak and when




monetary policy is attempting to stimulate eco­
nomic recovery. Indeed, the results of the
Board’s two voluntary surveys of bank lending
policies suggest that there is little or no further
economic and financial need for such surveys
under prevailing circumstances.
For the various reasons I have noted, the
Board is unable to support this or any other bill
related to mandatory reporting of bank credit
accommodation along explicit or implied prior­
ity lines. The Board as a general matter believes
that if any information on credit use is to be
collected, it should be done on a voluntary basis
and tailored to what a voluntary reporting effort
would support in order to minimize possibilities
of market misinterpretation. If the Congress
nevertheless feels that it is essential to pass this
kind of legislation, the Board would strongly
suggest that the categories not be termed “na­
tional priority uses of credit” because this
could, under current circumstances, discourage
some lending and in that degree retard economic
recovery.
□

299

Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON MARCH 18, 1975
1.

Domestic Policy Directive

The information reviewed at this meeting suggested that real output
of goods and services was continuing to fall sharply in the first
quarter of 1975, that the rise in prices was moderating, and that
nominal GNP was declining. Staff projections, like those of a month
earlier, suggested that real economic activity would recede further
in the second quarter and that price increases would continue to
moderate; they also suggested that activity would turn up later in
the year.
In February retail sales had risen slightly, according to the
advance estimate. Largely because of continuing efforts by business
to liquidate inventories, however, cutbacks in production were
again substantial and widespread. Curtailments in employment also
were substantial, particularly in manufacturing establishments, and
the factory workweek was reduced sharply. Although unemploy­
ment rates increased for adult males and heads of households, the
over-all rate was unchanged, at 8.2 per cent, as the civilian labor
force declined sharply.
The advance in the index of average hourly earnings for private
nonfarm production workers accelerated somewhat in February, but
it remained considerably less rapid than in the spring and summer
of last year. Wholesale prices of industrial commodities again
increased moderately—although the rise in prices of both consumer
and producer finished goods slowed—and wholesale prices of farm
and food products declined sharply further. In January, as in
December, the increase in the consumer price index had not been
so large as in most months in 1974.
Staff projections suggested that the decline in real GNP would
not be nearly so sharp in the second quarter as in the first, in
large part because of the behavior of business inventories; it was
anticipated that inventories, after shifting from heavy accumulation
in the fourth quarter of 1974 to substantial liquidation in the current
quarter, would decline at only a moderately faster pace in the




300

Federal R eserve B ulletin □ M ay 1975




second quarter. The extent of the inventory liquidation expected
in the first half—along with the improved conditions in credit
markets and the stimulative fiscal measures in prospect—
strengthened the probabilities of an upturn in economic activity
in the second half.
Exchange rates for the dollar against leading foreign curren­
cies—which had rallied in early February, owing in part to official
intervention purchases of dollars—declined during the remainder
of the month. However, the dollar strengthened again in early
March, as short-term interest rates abroad continued to decline
relative to rates in the United States and as market attitudes toward
the dollar were improved somewhat by, among other things,
moderation of the rise in U.S. prices. In January the U.S. foreign
trade deficit had been only moderately above the rate in the fourth
quarter of 1974, despite a large bulge in recorded imports of oil
in advance of the February 1 increase of $1 per barrel in import
fees. Net outflows of capital reported by banks continued large
as foreigners drew down deposits in U.S. offices.
Total loans and investments at U.S. commercial banks grew very
little from the end of January to the end of February. Outstanding
bank loans to business declined, as business demands for short-term
credit remained weak both at banks and in the commercial paper
market. Consumer loans at banks also declined, while real estate
loans edged up. Bank holdings of U.S. Government securities
expanded sharply.
The narrowly defined money stock (M*)—which had expanded
at an annual rate of about 4.5 per cent in the fourth quarter of
1974 and then had declined at a rate of about 9 per cent in
January—grew at a rate of about 7 per cent in February. Net inflows
of consumer-type time and savings deposits to banks and nonbank
thrift institutions were particularly large, and broader measures of
the money stock (M2 and M3) increased at substantial rates. Banks
reduced the outstanding volume of large-denomination CD’s and
Euro-dollar borrowings, reflecting the growth in demand deposits
and in time deposits other than CD’s as well as the weakness in
loan demand.
System open market operations since the February 19 meeting
had been guided by the Committee’s decision to seek bank reserve
and money market conditions consistent with more rapid growth

R ecord of Policy A ctions of FO M C

in monetary aggregates over the months ahead than had occurred
in recent months, while taking account of developments in domestic
and international financial markets. Accordingly, operations had
been directed toward a gradual further easing in bank reserve and
money market conditions. The Federal funds rate, which had
averaged 6lA per cent in the statement week ending February 19,
had declined to about 5V2 per cent in the days preceding this
meeting.
Private short-term market interest rates declined a little further
over the inter-meeting period, in response to the easing in money
market conditions and the weakening in private demands for short­
term credit, but the declines were small, as market participants
apparently came to expect that money market conditions would
not ease much further in the near future. Treasury bill rates rose
somewhat over the period despite strong demands for bills because
the Treasury had enlarged the supply in the weekly and monthly
auctions. On the day before this meeting the market rate on 3-month
Treasury bills was 5.39 per cent, compared with 5.32 per cent
on the day before the last meeting. Effective March 10, Federal
Reserve discount rates were reduced from 6%. to 614 per cent at
10 Reserve Banks; shortly thereafter, rates were reduced at the
remaining 2 Banks.
Yields on longer-term bonds increased during the inter-meeting
period, in response to continuation of a large volume of offerings.
On February 24 the Treasury announced that over the period to
mid-April it would raise about $7 billion in new cash by auctioning
coupon issues. Public offerings of corporate bonds remained heavy
in February, and a substantial increase was in prospect for March.
Actual and prospective offerings of State and local government
issues during March and April also were large; in addition, the
market for such securities was being adversely affected by the
financial problems of a major State corporation. In the home
mortgage market, yields declined somewhat further.
The Committee decided that the economic situation and outlook
called for more rapid growth in monetary aggregates over the
months ahead than had occurred in recent months. A staff analysis
suggested that the demand for money would be weak in the near
term—in association with the expected weakness in economic
activity—and that money market conditions would have to ease




301

302

Federal R eserve B ulletin □ M ay 1975




slightly further in the period immediately ahead if Mx were to grow
at a rate consistent with the Committee’s longer-run objectives for
the monetary aggregates. Some further increase in net inflows of
consumer-type time and savings deposits to banks and to nonbank
thrift institutions was anticipated, in response to lower short-term
interest rates. While private demands for short-term credit were
likely to remain weak, the Treasury would be borrowing sizable
amounts of new cash over the months ahead.
The Committee decided that growth in Mt and M2 over the
March-April period at annual rates within ranges of tolerance of
5 to 7Vi per cent and 8 to 10 per cent, respectively, would be
consistent with its longer-run objectives for the monetary aggre­
gates. The members concluded that such growth rates would be
likely to involve growth in reserves available to support private
nonbank deposits (RPD’s) within a range of 3% to 5Vi per cent.
They agreed that in the period until the next meeting the weekly
average Federal funds rate might be expected to vary in an orderly
fashion in a range of 43A to 5% per cent, if necessary, in the
course of seeking monetary growth rates within the ranges speci­
fied. The members also agreed that in the conduct of operations,
account should be taken of developments in domestic and interna­
tional financial markets.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
T h e in f o r m a t i o n r e v i e w e d a t t h is m e e t i n g s u g g e s t s th a t r e a l o u t p u t
o f g o o d s a n d s e r v i c e s i s c o n t i n u i n g t o f a l l s h a r p l y in t h e c u r r e n t
q u a r t e r . I n F e b r u a r y in d u s t r ia l p r o d u c t i o n a n d e m p l o y m e n t d e c l i n e d
s u b s ta n tia lly

fu r th e r . T h e

u n e m p l o y m e n t r a te w a s

u n c h a n g e d , at

8 . 2 p e r c e n t , a s t h e c i v i l i a n la b o r f o r c e d e c l i n e d s h a r p l y . A v e r a g e
w h o l e s a l e p r i c e s o f in d u s t r ia l c o m m o d i t i e s r o s e m o d e r a t e l y a g a i n
i n F e b r u a r y , a n d p r i c e s o f f a r m a n d f o o d p r o d u c t s d e c l i n e d s h a r p ly
fu r th e r .

The

advan ce

in

average

w age

r a te s,

a lth o u g h

la r g e , r e ­

m a in e d w e ll b e lo w th e in c r e a s e s o f la s t s p r in g a n d s u m m e r .
T h e f o r e i g n e x c h a n g e v a l u e o f t h e d o l l a r d e c l i n e d in F e b r u a r y ,
b u t it s t r e n g t h e n e d s o m e w h a t in e a r l y M a r c h , a s s h o r t - t e r m i n t e r e s t
r a te s a b r o a d f e l l fu rth e r a n d a s m a r k e t a ttitu d e s to w a r d th e d o lla r
im p r o v e d s o m e w h a t . In J a n u a r y th e U . S . f o r e ig n tr a d e d e fic it w a s
o n l y m o d e r a t e l y a b o v e t h e r a t e in t h e f o u r t h q u a r t e r o f 1 9 7 4 d e s p i t e
a l a r g e b u l g e i n r e c o r d e d im p o r t s o f o i l . N e t o u t f l o w s

o f c a p ita l

r e p o r te d b y b a n k s c o n tin u e d la r g e a s fo r e ig n e r s w ith d r e w d e p o s it s .

R ecord of Policy Actions of FO M C

T h e n a r r o w ly d e fin e d m o n e y

s t o c k , w h i c h h a d d e c l i n e d s h a r p ly

in J a n u a r y , e x p a n d e d c o n s i d e r a b l y in F e b r u a r y , a n d b r o a d e r m e a s ­
u r e s o f th e m o n e y
c o n su m e r -ty p e

sto c k g r e w

a t s u b s t a n t ia l r a t e s . N e t i n f l o w s o f

tim e a n d s a v in g s d e p o s its w e r e

p a r t ic u l a r ly la r g e .

L a r g e - d e n o m i n a t i o n C D ’s o u t s t a n d i n g c o n t r a c t e d in F e b r u a r y a n d
to ta l b a n k c r e d it s h o w e d little

net ch a n g e.

B u s in e s s d e m a n d s fo r

s h o r t - t e r m c r e d i t r e m a i n e d w e a k , b o t h a t b a n k s a n d in t h e c o m m e r ­
c i a l p a p e r m a r k e t , w h i l e d e m a n d s in t h e lo n g - t e r m m a r k e t c o n t i n u e d
e x c e p t i o n a l l y s t r o n g . S i n c e m id - F e b r u a r y s h o r t - t e r m m a r k e t i n t e r e s t
r a te s h a v e

d e c lin e d

a little

w h ile

lo n g e r -te r m

y ie ld s

F e d e r a l R e s e r v e d is c o u n t r a te s w e r e r e d u c e d fr o m

have

r is e n .

6 3A t o 6 Va p e r

c e n t in e a r l y M a r c h .
In l i g h t o f t h e f o r e g o i n g

d e v e l o p m e n t s , it i s t h e p o l i c y

o f th e

F e d e r a l O p e n M a r k e t C o m m i t t e e t o f o s t e r f in a n c ia l c o n d i t i o n s c o n ­
d u c i v e t o s t i m u l a t i n g e c o n o m i c r e c o v e r y , w h i l e r e s i s t i n g in f la t io n a r y
p r e s s u r e s a n d w o r k i n g t o w a r d e q u i l i b r i u m in t h e c o u n t r y ’ s b a l a n c e
o f p a y m en ts.
T o i m p l e m e n t t h is p o l i c y , w h i l e t a k i n g a c c o u n t o f d e v e l o p m e n t s
in d o m e s t i c a n d in t e r n a t io n a l f in a n c ia l m a r k e t s , t h e C o m m i t t e e s e e k s
to

a c h ie v e b a n k

w ith m o r e

reserve

r a p id g r o w t h

and m o n ey

m a rk et c o n d itio n s

c o n s is te n t

in m o n e t a r y a g g r e g a t e s o v e r t h e m o n t h s

a h e a d t h a n h a s o c c u r r e d in r e c e n t m o n t h s .

V o te s

fo r

t h is

a c t io n :

M essrs.

B u rn s,

H a y es,

B a u g h m a n , C o ld w e ll, H o lla n d , M a c L a u r y , M a y o ,
M itc h e ll, a n d

W a llic h .

V o te s

a g a i n s t t h is a c t io n :

M e s s r s . B u c h e r , E a stb u rn , an d S h e e h a n .

Messrs. Bucher, Eastburn, and Sheehan dissented from this
action because they believed that the economic situation and out­
look together with recent slow growth in the monetary aggregates
called for more aggressive efforts in the near term to achieve the
Committee’s longer-run objectives for the aggregates. In particular,
they favored higher upper limits on the 2-month ranges of tolerance
for the monetary aggregates and a lower inter-meeting range for
the Federal funds rate than adopted by the Committee.
Subsequent to the meeting, on March 27, the available data
suggested that in the March-April period the annual rates of growth
in both
and M2 would be above the upper limits of the ranges
of tolerance that had been specified by the Committee. During the




303

304

Federal R eserve B ulletin □ M ay 1975




latest statement week the Federal funds rate had averaged about
5% per cent. In light of the behavior of the aggregates, the System
Account Manager would, under normal circumstances, have per­
mitted the weekly average Federal funds rate to rise to the upper
limit of its range of tolerance—namely, 5% per cent. However,
members of the Committee—with the exception of Mr. Sheehan—
concurred in the Chairman’s recommendation of March 27 that,
in view of the weakness in the economy and of the sensitive
conditions in financial markets, particularly bond markets, the
Manager be instructed to treat 5Vi per cent as the approximate
upper limit for the weekly average funds rate for the time being.
Mr. Sheehan did not concur because he believed that, in light of
past shortfalls in monetary growth and of sensitive conditions in
the bond market, the Committee should continue its easing posture
by gradually reducing the funds rate.
2. Authorization for Domestic Open Market Operations
On March 10 Committee members had voted to amend a provision
of paragraph 2 of the authorization for domestic open market
operations to raise from $1 billion to $2 billion the limit on System
holdings of special short-term certificates of indebtedness purchased
directly from the Treasury. This action had been taken on the
recommendation of the Account Manager, who had advised that
he would recommend restoration of the $1 billion limit as soon
as it appeared reasonable to do so. In view of the likelihood that
the higher limit would be required from time to time over coming
months, the Committee voted at today’s meeting to maintain the
limit at $2 billion for a period of 1 year, unless in the interim
the Committee decided otherwise.
V o te s

fo r

B aughm an,
L aury,

th is

a c t io n :

B ucher,

M ayo,

M essrs.

C o ld w e ll,

M itc h e ll,

B u rn s,

H a y es,

E a stb u rn ,

S h eeh an ,

and

M ac-

W a llic h .

V o t e a g a i n s t t h i s a c t io n : M r . H o l l a n d .

Mr. Holland dissented from this action because he preferred to
tailor the ceiling more closely to changing needs on a month-tomonth basis.

R ecord of Policy Actions of FO M C

3. Review of Continuing Authorizations
This being the first meeting of the Federal Open Market Committee
following the election of new members from the Federal Reserve
Banks to serve for the year beginning March 1, 1975, and their
assumption of duties, the Committee followed its customary prac­
tice of reviewing all of its continuing authorizations and directives.
The Committee reaffirmed the Authorization for Domestic Open
Market Operations, the Authorization for Foreign Currency Opera­
tions, and the Foreign Currency Directive in the forms in which
they were presently outstanding.
V o t e s fo r th e s e a c tio n s : M e s s r s .

B u rn s, H a y e s,

B a u g h m a n , B u c h e r , C o ld w e ll, E a stb u r n , H o lla n d ,
M a c L a u r y , M a y o , M itc h e ll, S h e e h a n , a n d W a llic h .
V o t e s a g a in s t th e s e a c tio n s : N o n e .

*

R e c o r d s o f p o lic y a c tio n s ta k e n b y th e F e d e r a l O p e n M a rk et C o m m itte e at e a c h
m e e t in g , in th e fo r m in w h ic h th e y w ill ap p ear in th e B o a r d ’s A n n u a l R e p o r t ,
are r e le a s e d a b o u t 4 5 d a y s a fter th e m e e tin g an d are s u b s e q u e n tly p u b lis h e d in
th e B u l l e t i n .




305

306

Law Department
Statutes, regulations, interpretations, and decisions

RESERVES OF MEMBER BANKS AND
FOREIGN ACTIVITIES OF NATIONAL
BANKS

2 0 4 . 3 ( a ) ( 2 ) , a n d d e f i c i e n c i e s u n d e r t h is p a r a g r a p h
s h a ll b e s u b je c t to § 2 0 4 . 3 ( b ) . 8

T h e B oard o f G overn ors has ap p roved am en d ­
m e n ts

to

R e g u la tio n

D ,

R eserv es

B a n k s , a n d to R e g u la tio n M ,
per

c e n t th e

reserve

M em ber

F o r e ig n A c t iv it ie s

o f N a tio n a l B a n k s , to r e d u c e fr o m
4

of

8 p er c e n t to

r e q u ir e m e n t o n

8The term “ com putation period” in § 2 0 4 .3 (a )(3 ) and (b)
shall, for this purpose, be deem ed to refer to each w eek of
a m aintenance period under this paragraph.
S e c tio n

213.7—

B ran ch

D e p o sits.

m em b er

b a n k s ’ E u r o -d o lla r b o r r o w in g s a n d fo r e ig n b r a n c h
lo a n s to U n it e d S t a te s r e s id e n t s .

(a ) T r a n s a c t io n s

and

1 9 7 5 , S e c tio n s 2 0 4 .5 ( c ) o f

2 1 3 .7

of

204.5—

D u r in g

R e g u la tio n

M

are

( “ m a in te n a n c e ” )

p e r io d ,

a

m em b er

m a i n t a i n w i t h t h e R e s e r v e B a n k o f it s d i s t r i c t , a s
a g a i n s t it s

fo r e ig n

branch

d e p o s its ,

a

d a ily a v e r a g e b a la n c e e q u a l to 4 p e r c e n t o f th e
d a ily a v e r a g e to ta l o f —

a m e n d e d to rea d a s fo llo w s :
S e c tio n

bank.

b a n k h a v i n g o n e o r m o r e f o r e i g n b r a n c h e s s h a ll
a reserve

D

parent

2 2 , 1 9 7 5 , a n d d u r in g e a c h w e e k o f e a c h s u c c e s s i v e

AMENDMENTS TO REGULATIONS D
AND M
R e g u la tio n

w ith

e a c h w e e k o f th e f o u r - w e e k p e r io d b e g in n in g M a y
fo u r -w e e k

E ffe c tiv e M a y 2 2 ,

R e s e r v e s A g a in s t F o r e ig n

( 1 ) n e t b a la n c e s d u e fr o m

it s d o m e s t i c o f f i c e s

to s u c h b r a n c h e s , a n d

R e s e r v e R e q u ir e m e n ts

(2 ) a s s e ts (in c lu d in g p a r tic ip a tio n s ) h e ld b y s u c h
b r a n c h e s w h ic h w e r e a c q u ir e d fr o m
(c ) R e s e r v e p e r c e n t a g e s a g a in s t c e r ta in d e p o s ­
its b y

fo r e ig n

b a n k in g

o ffic e s . D e p o s its r ep re ­

o ff ic e s (o th e r th a n
te n d ed

to

it s d o m e s t i c

a s s e t s r e p r e s e n tin g

p erso n s

not

r e s id e n ts

of

c r e d it e x ­
th e

U n ite d

s e n te d b y p r o m is s o r y n o t e s , a c k n o w le d g e m e n t s o f

S t a t e s ) , d u r in g t h e f o u r - w e e k c o m p u t a t i o n p e r i o d

a d v a n c e , d u e b il ls , o r s im ila r o b lig a t io n s d e s c r ib e d

e n d in g o n th e W e d n e s d a y fif te e n d a y s b e fo r e th e

in § 2 0 4 . 1 ( f ) t o f o r e i g n o f f i c e s o f o t h e r b a n k s , 7

b e g in n in g o f th e m a in te n a n c e p e r io d .
(b )

o r to in s tit u tio n s th e tim e d e p o s it s o f w h ic h are

C r e d it

e x te n d e d

to

U n it e d

S ta te s

r e s i­

e x e m p t fr o m th e r a te lim ita t io n s o f R e g u la t io n Q

d e n t s . D u r in g e a c h w e e k o f th e fo u r - w e e k p e r io d

p u r s u a n t to § 2 1 7 . 3 ( g ) t h e r e o f , s h a ll n o t b e s u b je c t

b e g in n in g M a y 2 2 ,

to p a r a g r a p h (a ) o f th is s e c t io n o r to § 2 0 4 .3 ( a ) ( 1 )

o f e a c h s u c c e s s iv e fo u r - w e e k m a in te n a n c e p e r io d ,

a n d ( 2 ) ; b u t d u r in g e a c h w e e k
p e r io d b e g in n in g M a y 2 2 ,

o f th e fo u r - w e e k

1 9 7 5 , a n d d u r in g e a c h

a

m em b er

bank

1 9 7 5 , a n d d u r in g e a c h w e e k

h a v in g

one

or

m ore

fo r e ig n

b r a n c h e s s h a ll m a in ta in w it h th e R e s e r v e B a n k o f

s u c c e s s iv e fo u r - w e e k ( “ m a in te n a n c e ” ) p e r io d , a

it s d i s t r i c t , a s a r e s e r v e a g a i n s t it s f o r e i g n b r a n c h

m em b er

R eserv e

d e p o s it s , a d a ily a v e r a g e b a la n c e e q u a l to 4 p er

B a n k o f it s d is t r ic t a d a i l y a v e r a g e b a l a n c e e q u a l

c e n t o f th e d a ily a v e r a g e c r e d it o u t s ta n d in g fr o m

to 4 p er c e n t o f th e d a ily a v e r a g e a m o u n t o f s u c h

s u c h b r a n c h e s to U n ite d

bank

s h a ll

m a in ta in

w ith

th e

d e p o s i t s d u r in g t h e f o u r - w e e k c o m p u t a t i o n p e r i o d
e n d in g o n th e W e d n e s d a y fif te e n d a y s b e fo r e th e
b e g in n in g o f th e m a in te n a n c e p e r io d . A n e x c e s s
o r d e f ic ie n c y in r e s e r v e s in a n y w e e k o f a m a in ­
te n a n c e p e r io d u n d e r th is p a r a g r a p h s h a ll b e s u b ­
je c t to

§

2 0 4 .3 (a )(3 ) ,

as

if

c o m p u te d

under

§

7 A ny banking office located outside the States o f the U nited
States and the D istrict o f C olum bia o f a bank organized under
dom estic or foreign law .




S ta te s r e s id e n ts 7 (o th e r

7 (a) A ny individual residing (at the time the credit is e x ­
tended) in any State o f the U nited States or the District of
Colum bia; (b) any corporation, partnership, association or
other entity organized therein ( “ dom estic corporation” ); and
(c) any branch or office located therein of any other entity
wherever organized. Credit extended to a foreign branch,
office, subsidiary, affiliate or other foreign establishm ent
( “ foreign affiliate” ) controlled by one or more such dom estic
corporations w ill not be deem ed to be credit extended to a
United States resident if the proceeds w ill be used in its foreign
business or that of other foreign affiliates of the controlling
dom estic corporation(s).

L aw D epartm ent

th a n a s s e t s

a c q u ir e d

a n d n e t b a la n c e s d u e fr o m

307

INTERPRETATION OF REGULATION M

it s d o m e s t i c o f f i c e s ) d u r i n g t h e f o u r - w e e k c o m p u ­
ta tio n p e r io d e n d in g o n th e W e d n e s d a y fif te e n d a y s
b e f o r e t h e b e g i n n i n g o f t h e m a i n t e n a n c e p e r io d :
P r o v i d e d , T h a t th is p a r a g r a p h d o e s n o t a p p ly to
c r e d it e x te n d e d
$ 1 0 0 ,0 0 0

(1 )

or le s s

in

th e

to a n y

a g g reg a te

U n ite d

am ount

of

S ta te s r e s id e n t,

( 2 ) b y a f o r e i g n b r a n c h w h i c h a t n o t i m e d u r in g
th e c o m p u ta tio n p e r io d h a d c r e d it o u t s ta n d in g to
U n it e d S ta te s r e s id e n ts e x c e e d in g $1
to

e n a b le

th e b o r r o w e r

to

c o m p ly

m illio n , (3 )
w ith

th e

re­

q u ir e m e n ts o f th e O ffic e o f F o r e ig n D ir e c t I n v e s t ­
m e n ts,

D e p a r tm e n t

of

C o m m e r c e ,8

(4 )

under

b i n d i n g c o m m i t m e n t s e n t e r e d in t o b e f o r e M a y 1 7 ,
1 9 7 3 , o r ( 5 ) t o a n o t h e r m e m b e r b a n k th a t w i l l b e
m a in ta in in g

reserves

on

such

c r e d it

under

§

U n d e r t h e t h ir d p a r a g r a p h o f s e c t i o n 2 5 o f t h e
F ederal

R eserv e

A c t,

as

am end ed

(1 2

U .S .C .

6 0 1 ) , a n y n a tio n a l b a n k in g a s s o c ia t io n 1 p o s s e s s in g
a c a p ita l a n d s u r p lu s o f $ 1 , 0 0 0 ,0 0 0 o r m o r e m a y
f il e

a p p lic a tio n

w ith

th e

B oard

fo r

p e r m is s io n ,

u p o n s u c h c o n d it io n s a n d u n d e r s u c h r e g u la tio n s
a s m a y b e p r e s c r i b e d b y t h e B o a r d , “ t o a c q u ir e
a n d h o ld ,

d ir e c tly

e v id e n c e s

of

or

in d ir e c tly ,

o w n e r sh ip

in

o r g a n iz e d u n d e r th e la w

one

sto c k
or

or

m ore

o th er
banks

o f a fo r e ig n c o u n tr y or

a d e p e n d e n c y o r i n s u la r p o s s e s s i o n o f t h e U n i t e d
S t a t e s a n d n o t e n g a g e d , d i r e c t l y o r i n d i r e c t l y , in
a n y a c t i v i t y in t h e U n i t e d S t a t e s e x c e p t a s , in t h e
ju d g m e n t o f th e B o a r d s h a ll b e in c id e n ta l to th e
in t e r n a t io n a l o r f o r e i g n b u s i n e s s o f s u c h f o r e i g n

2 0 4 .5 ( c ) o f R e g u la tio n D .

b a n k ; a n d , n o tw ith s ta n d in g th e p r o v is io n s o f s e c ­
tio n 2 3 A

INTEREST ON DEPOSITS
T h e B o a r d o f G o v e r n o r s h a s a m e n d e d its R e g u ­
la tio n Q to p r o h ib it m e m b e r b a n k s fr o m a c c e p t in g
d e p o s it s s u b je c t to n e g o t ia b le o r d e r o f w ith d r a w a l
(N O W ) fr o m

o f th e F e d e r a l R e s e r v e A c t (1 2 U .S .C .

3 7 1 c ) , to

m a k e lo a n s

or fo r th e

in

th e m a n n e r

g e n e r a l o r s p e c ific r e g u la tio n o r r u lin g .”
o f th e F e d e r a l R e s e r v e A c t,

th e B o a r d h a s p r o m u lg a te d s e c t io n

AMENDMENT TO REGULATION Q

2 1 3 . 4 o f t h is

p a r t ( R e g u l a t i o n M ) , w h i c h s e t s f o r t h a p p r o p r ia t e

1 6 , 1 9 7 5 , S e c tio n 2 1 7 . 1 (e )(3 ) o f

(1 2 C F R

bank

P u r s u a n t t o it s a u t h o r it y u n d e r t h e t h ir d p a r a ­

g o v e r n m e n t a l u n it s .

E ffe c tiv e M a y

su ch

a n d w ith in th e lim its p r e s c r ib e d b y th e B o a r d b y

g ra p h o f s e c tio n 2 5

R e g u la tio n Q

or e x t e n s io n s o f c r e d it to

accou nt o f

2 1 7 ) is a m e n d e d t o r e a d

c o n d itio n s

and

lim ita tio n s

on

a m em b er

b a n k ’s

a c q u is itio n a n d h o ld in g , d ir e c tly o r in d ir e c tly , o f
t h e s t o c k o r o t h e r e v i d e n c e s o f o w n e r s h i p in o n e

as fo llo w s :

o r m o r e f o r e i g n b a n k s , a n d s e c t i o n 2 1 3 . 5 o f t h is
S e c t io n

2 1 7 .1 — D e f in it io n s

part w h ic h a llo w s a m e m b e r b a n k ,

w h ic h h o ld s

d ir e c tly o r in d ir e c tly 2 s to c k o r o th e r e v id e n c e s o f
o w n e r sh ip

in a f o r e i g n

bank,

to

m ake

lo a n s

or

e x t e n s io n s o f c r e d it to o r fo r th e a c c o u n t o f s u c h

(e ) S a v in g s d e p o s its .

fo r e ig n b a n k w ith o u t r eg a rd to th e p r o v is io n s o f
s e c tio n 2 3 A o f th e F e d e r a l R e s e r v e A c t (1 2 U .S .C .
( 3 ) I n t h o s e S t a t e s w h e r e b a n k s a r e p e r m it t e d
to o ffe r d e p o s its s u b je c t to

n e g o tia b le o r d e rs o f

w ith d r a w a l, s u c h d e p o s its m a y b e
such

d e p o s it c o n s is t s

of

m a in ta in e d

fu n d s d e p o s ite d

to

if
th e

c r e d i t o f o r in w h i c h t h e e n t i r e b e n e f i c i a l in t e r e s t
is h e ld b y o n e o r m o r e in d iv id u a ls , or o f a c o r ­
p o r a tio n ,
o p e r a te d

a s s o c ia tio n ,
p r im a r ily

fo r

or

o th e r

r e lig io u s ,

o r g a n iz a tio n
p h ila n th r o p ic ,

c h a r i t a b l e , e d u c a t i o n a l , f r a t e r n a l, o r o t h e r s i m i l a r
p u r p o s e s , a n d n o t o p e r a t e d f o r p r o f it . A n y d e p o s i t
a c c o u n t s u b je c t to n e g o t ia b le o r d e r s o f w ith d r a w a l
e s t a b l i s h e d p r io r t o M a y 1 6 , 1 9 7 5 , w h i c h c o n s i s t s
o f fu n d s d e p o s ite d

to th e c r e d it o f o r in w h ic h

th e e n tir e b e n e fic ia l in te r e s t is h e ld b y a g o v e r n ­
m e n ta l u n it n o t q u a lif y in g

h e r e in m a y b e

m a in ­

ta in e d th r o u g h D e c e m b e r 3 1 , 1 9 7 5 .

8The branch m ay in good faith rely on the borrow er’s
certification that the funds w ill be so used.




3 7 1 c ).
In

sev era l

recent

a p p lic a tio n s

file d

w ith

B o a rd b y m e m b e r b a n k s u n d er s e c tio n 2 5

th e

o f th e

A c t , t h e i s s u e h a s a r i s e n a s t o w h e t h e r p a r t ic u l a r
fo r e ig n in s tit u tio n s c a n b e c o n s id e r e d a s f o r e ig n
b a n k s fo r th e p u r p o se s o f s e c tio n 2 5

o f th e A c t

a n d s e c t i o n s 2 1 3 . 4 a n d 2 1 3 . 5 o f t h i s p a r t. W h i l e
th e

B oard

has

by

r e g u la tio n

d e fin e d

th e

te r m

“ f o r e ig n b a n k ” to m e a n a b a n k o r g a n iz e d u n d e r
th e la w

o f a fo r e ig n

c o u n try

and not en g a g ed ,

d ir e c tly o r in d ir e c t ly , in a n y a c t iv it y in th e U n it e d
S t a t e s e x c e p t a s , in t h e j u d g m e n t o f t h e B o a r d ,
s h a ll b e in c id e n ta l to th e in te r n a tio n a l o r f o r e ig n
b u s in e s s

of

su ch

fo r e ig n

b a n k ,3 s u c h

d e fin itio n

Paragraph 20 of section 9 of the Federal R eserve Act (12
U .S .C . 335) also m akes the provisions of section 25 applicable
to State member banks.
2 W hether through a corporation operating under section 25
of the Act or organized under section 25(a) of the A ct, or
oth erw ise.
3 Section 2 1 3 .2 of this part.

308

Federal R eserve B ulletin □ M ay 1975

im p o s e s th e s ta tu to r y lim it a t io n o n a c t iv it ie s in th e

In th e B o a r d ’s j u d g m e n t,

a fo r e ig n

bank

fo r

U n i t e d S t a t e s th a t c a n b e c o n d u c t e d b y a f o r e i g n

p u rp o ses

b a n k , th e s h a r e s o f w h ic h are o w n e d b y a m e m b e r

2 1 3 . 4 a n d 2 1 3 . 5 o f t h i s p a r t s h o u l d b e in t e r p r e t e d

b a n k , a n d d o e s n o t d e fin e a s a th r e s h o ld m a tte r

to m e a n , w ith c e r ta in lim ite d e x c e p t io n s h e r e in ­

w h ic h

fo r e ig n

in s tit u tio n s

c a n b e c o n s id e r e d

as

fo r e ig n b a n k s e li g ib le fo r in v e s tm e n t a n d B o a r d
e x e m p tio n

fr o m

th e

p r o v is io n s

of

s e c tio n

23A

u n d er s e c tio n 2 5 o f th e A c t.
in c o r p o r a tio n a n d

o th e r

r e q u i r e m e n t s i n t e n d e d t o e n s u r e th a t a f o r e i g n b a n k
a c q u ir e d u n d e r th a t s e c t i o n
d o m e s tic

b a n k in g

b u s in e s s .

h ow ever,

s p e c ify

in

fo r e ig n

in s tit u tio n

c o n s id e r e d

a

fo r e ig n

is n o t e n g a g e d
C o n g ress

s e c tio n

m u st

25

s a tis fy

bank

fo r

s e c t i o n . 4 T h e t h ir d p a r a g r a p h
e n a c t e d in

s e c tio n

d e s c r ib e d ,

p r in c ip a lly

a

25

o f th e A c t a n d

fo r e ig n

engaged

in

a

in s tit u tio n
c o m m e r c ia l

s e c tio n s

th a t

is

b a n k in g

b u s in e s s . T h e B o a r d b e lie v e s th a t s u c h a n in te r ­
p r e t a t io n i s c o n s o n a n t w i t h t h e l i m i t e d p u r p o s e s

C o n g r e s s i n t h e t h ir d p a r a g r a p h o f s e c t i o n 2 5
o f th e A c t h a s im p o s e d

a fte r

of

th e
in

in

d id

c r ite r ia

order

p u rp o ses

a

n o t,
to

a
be

o f s e c tio n 2 5
in e n a c t i n g

a n d a c c o r d s w i t h C o n g r e s s ’ in t e n t

th a t s e c t i o n .

T h i s in t e r p r e t a t i o n

w ill

a p p ly b o th fo r p u r p o s e s o f d e te r m in in g p e r m is s ib le
in v e s tm e n ts fo r m e m b e r b a n k s u n d er s e c tio n 2 1 3 .4
o f t h is

part an d

e x e m p tio n

fr o m

fo r p u r p o se s
th e

o f th e

p r o v is io n s

of

r e g u la to r y

s e c tio n

23 A

u n d e r s e c t i o n 2 1 3 . 5 o f t h i s p a r t. I n a d o p t i n g t h i s

of

th a t

in t e r p r e t a t i o n , h o w e v e r , t h e B o a r d h a s d e t e r m i n e d

o f s e c tio n 2 5

w as

t h a t , in g e n e r a l , c e r t a i n m i n i m u m

1 9 6 6 in o r d e r to g iv e m e m b e r b a n k s

b e m e t in e v e r y c a s e .

c r i t e r ia s h o u l d

A c c o r d i n g l y , in o r d e r f o r

o r g a n i z a t i o n a l f l e x i b i l i t y in c o n d u c t i n g t h e ir b a n k ­

a fo r e ig n in s titu tio n to b e c o n s id e r e d a s p r in c ip a lly

i n g o p e r a t i o n s a b r o a d . P r io r t o it s e n a c t m e n t , t h e

e n g a g e d in

B o a r d h a d in te r p r e te d th e “ s to c k p u r c h a s e ” p r o ­

in s titu tio n

h ib itio n s o f S e c t io n 5 1 3 6 o f th e R e v is e d S ta tu te s

s u b s t a n t i a l e x t e n t in t h e r e g u la r c o u r s e o f it s b u s i ­

a s p r e v e n tin g

m e m b e r b a n k s fr o m

a c q u ir in g d i­

a c o m m e r c ia l b a n k in g
m u st,

at le a s t ,

th a t th e d e p o s it o r h a s

tim e , m e m b e r b a n k s w e r e lim ite d to c o n d u c t in g

on dem and.

t h e ir

fo r

b a n k in g

o p e r a tio n s

abroad

e ith e r

th r o u g h

d e p o s its

th e
to

a

n e s s , a n d a ls o h a v e th e p o w e r to a c c e p t d e p o s its

r e c t l y t h e s h a r e s o f f o r e i g n b a n k s . T h u s , u n t il th a t

b r a n c h e s e s t a b lis h e d u n d e r s e c tio n 2 5 or th r o u g h

b u s in e s s ,

r e c e iv e

a fo r e ig n

fo r e ig n

a l e g a l r ig h t t o

w ith d r a w

I n a d d i t i o n , t h e B o a r d b e l i e v e s th a t

bank

in s titu tio n
under

to

be

s e c tio n

c o n s id e r e d

25,

th e

as

a

in s t i t u t i o n

a g e n c i e s , b r a n c h e s o r s u b s i d i a r i e s o f t h e ir E d g e

s h o u ld a ls o b e s u p e r v is e d , r e g u la te d , e x a m in e d or

or

resp ec­

o th e r w is e r e c o g n iz e d a s a c o m m e r c ia l b a n k b y th e

o f th e

a p p r o p r ia t e b a n k s u p e r v i s o r y o r m o n e t a r y a u t h o r ­

A greem en t

tiv e ly , u n d er

C o r p o r a tio n s

e s t a b lis h e d ,

s e c tio n 2 5 (a ) or s e c tio n 2 5

F e d e r a l R e s e r v e A c t. B e c a u s e th e la w s o f s o m e

i t y o f e i t h e r t h e c o u n t r y o f it s o r g a n i z a t i o n o r t h e

fo r e ig n c o u n tr ie s p r e v e n te d

c o u n t r y o f it s p r i n c i p a l b a n k i n g o p e r a t i o n s .

branches and

b ecau se

fo r e ig n b a n k s th r o u g h
p o r a tio n

th e e s t a b lis h m e n t o f

th e h o ld in g

of

sh ares

of

E d g e or A g reem en t C or­

s u b s id ia r ie s r e s u lte d

in

an

u n n ecessa ry

T h e B o a r d h a s a l s o d e t e r m i n e d , h o w e v e r , th a t
n o t w ith s ta n d in g th e a b o v e te s t a n d m in im u m

c r i­

t e r ia , f o r e i g n

s o le

in s tit u tio n s

o r g a n iz e d

fo r th e

la y e r in g o f o r g a n iz a tio n a l r e la tio n s h ip s , th e e n a c t ­

p u r p o se o f h o ld in g th e sh a r e s o f a fo r e ig n b a n k ,

m e n t o f t h e t h ir d p a r a g r a p h o f s e c t i o n 2 5 e s s e n ­

o r o r g a n iz e d fo r th e s o le p u r p o s e o f p e r fo r m in g

tia lly w a s in te n d e d to a llo w m e m b e r b a n k s to h o ld

n o m in e e , fid u c ia r y , o r o th e r b a n k in g s e r v ic e s in ­

d ir e c tly th e

in s te a d

of

c id e n ta l to

E dge

or

b a n k i n g a f f ilia t e o f a m e m b e r b a n k m a y b e c o n ­

A g r e e m e n t C o r p o r a tio n s u b s id ia r ie s .5 T h e p r o v i­

s id e r e d a s fo r e ig n b a n k s fo r p u r p o s e s o f s e c t io n

h o ld in g

sh ares

th em

o f fo r e ig n

in d ir e c tly

b a n k s,

th r o u g h

t h e ir

th e

a c tiv it ie s

o f a fo r e ig n

branch

or

s i o n in t h a t p a r a g r a p h w h i c h g i v e s t h e B o a r d t h e

2 5 a n d s e c t i o n s 2 1 3 . 4 a n d 2 1 3 . 5 o f t h is p a r t. T h e

p o w e r to w a iv e th e r e s tr ic tio n s o f s e c tio n 2 3 A o n

B o a r d m a y r e c o g n iz e o th e r e x c e p t io n s to th e c r i­

lo a n s o r e x t e n s io n s o f c r e d it fr o m a m e m b e r b a n k

t e r ia a d o p t e d

t o it s f o r e i g n b a n k a f f ilia t e w a s s u p p o r t e d b y t h e

d e t e r m i n e s th a t a n y s u c h e x c e p t i o n w o u l d n o t b e

B o a r d b e c a u s e s e c tio n 2 3 A

in a p p r o p r ia t e u n d e r s e c t i o n 2 5 o f t h e F e d e r a l R e ­

te n d s

to

r e s t r ic t

norm al

in s u c h c ir c u m s t a n c e

co rresp o n d en t

b a n k in g

in

th is

general

in t e r p r e t a t i o n

if

it

s e r v e A c t a n d th is p a rt ( R e g u la t io n M ).

r e l a t i o n s h i p s b e t w e e n b a n k s a n d t h e ir f o r e i g n b a n k
a ffilia te s .
4 W hile the term “ bank” is defined in section 1 o f the Federal
R eserve A ct (12 U .S .C . 2 2 1 ), that definition
. . State bank,
banking association, and trust com pan y” is not applicable in
the context o f section 25.
5See 112 C ong. R ec. 11866 (1 9 6 6 ) (remarks of Senator
Robertson).




INTERPRETATION OF REGULATION Q
INTEREST ON DEPOSITS
The

B oard

of

G overnors

has

been

ask ed

to

r e c o n s i d e r it s v i e w , a d o p t e d i n 1 9 3 6 , t h a t a m e m ­
b e r b a n k m a y n o t p e r m it a d e p o s ito r to w ith d r a w

Law D epartm ent

fu n d s fr o m
te le p h o n e

h is
or

s a v in g s

o th er

accou nt by

oral

order

m eans o f

(1 9 3 6

F ed.

The

a

R es.

B oard

r e c o g n iz e s

309

th a t th e t e le p h o n e

b e c o m e an a c c e p t e d m e d iu m

has

f o r t r a n s m i t t i n g f i­

B u l l e t in 6 2 4 ) . T h a t p o s it io n w a s b a s e d u p o n th e

n a n c ia l d a ta a n d th a t th e t e le p h o n e m e r e ly p r o v id e s

B o a r d ’s c o n c e r n

th e c u s to m e r w ith a n a d d itio n a l m e th o d o f c o m ­

fo r

m em b er bank

s e c u r ity

and

a l s o u p o n it s c o n c e r n t h a t u n r e s t r ic t e d t e l e p h o n e

m u n ic a tin g in s tr u c tio n s r e g a r d in g

a c c e s s to s a v in g s a c c o u n ts m ig h t le a d d e p o s ito r s

h is b a n k . In f a c t , n u m e r o u s o th e r d e p o s it o r y in s t i­

to

tu tio n s

tr e a t

such

a c c o u n ts

as

e x te n s io n s

of

t h e ir

in c lu d in g

h is a c c o u n t to

n o n m e m b e r c o m m e r c ia l

banks

c h e c k in g a c c o u n ts a n d d e s tr o y th e d is tin c t io n b e ­

a n d s a v i n g s a n d lo a n a s s o c i a t i o n s h a v e f o r s o m e

tw e e n th e a c c o u n ts .

tim e b e e n p e r m itte d to o ffe r t e le p h o n e w ith d r a w a l

T h e B o a r d h a s s tu d ie d th e t e le p h o n e w ith d r a w a l
s y ste m s

c u r r e n tly

b e in g

d e v e lo p e d

by

s e r v ic e s .
T h e r e fo r e ,

several

th e

B oard

w ith d r a w s

it s

p o lic y

m e m b e r b a n k s a n d f e e l s th a t t h e s e c u r i t y a n d r e c ­

a g a in s t th e o ff e r in g o f t e le p h o n e w ith d r a w a l s e r v ­

o r d -k e e p in g d e v ic e s m a d e p o s s ib le b y n e w

ic e s w h ile

n o lo g y

a n d in c o r p o r a te d

in to th e s e s y s t e m s

te c h ­
w ill

k e e p e rr o r s a n d u n a u th o r iz e d u s e to a m in im u m .

a d v is in g

m e m b e r b a n k s to

sa fe g u a r d

s u c h t r a n s f e r s w i t h p r o p e r p r o c e d u r e s a n d in t e r n a l
c o n tr o l.

BANK HOLDING COMPANY AND
BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS
ORDERS UNDER SECTION 3 OF BANK
HOLDING COMPANY ACT
T he B ank

N ova

of

S c o t ia ,

C anada,

has

$1

m illio n

S c o tia ,

a p p lie d

fo r

T o r o n to , O n ta r io ,

th e

B o a r d ’s

app roval

U pon

(1 2

1 8 4 2 ( a ) ( 1 ) ) o f fo r m a tio n
th r o u g h

a c q u is itio n

b e c o m in g

a bank

of

a bank

of

75

per

s e c tio n 4 o f th e

T ru st C o m p a n y , a n d T h e N o v a S c o tia
c o r p o r a tio n .

com pan y

Y o r k S ta te

A ct

t o r e t a in it s in t e r e s t in T h e B a n k o f N o v a S c o t i a
tio n ,

U .S .C .

in d e p o s i t s .

w i l l f il e a p p l i c a t i o n s u n d e r

N ova

u n d e r § 3 ( a ) ( 1) o f t h e B a n k H o l d i n g C o m p a n y A c t
h o ld in g

Y ork, a N ew

h o l d i n g c o m p a n y , A p p l i c a n t h a s i n d i c a t e d t h a t it

H o ld in g C o m p a n y
of

Y ork, N ew

c h a r t e r e d tr u s t c o m p a n y , w h i c h h a s a p p r o x i m a t e l y

O r d e r A p p r o v in g F o r m a tio n o f B a n k

B ank

a n d o w n s T h e B a n k o f N o v a S c o tia T ru st C o m ­
pany, N ew

T o r o n t o , O n t a r io

The

a g e n c y e a c h in N e w Y o r k C i t y a n d S a n F r a n c i s c o ,

N ew

Y ork,

N ew

Y ork,

a

C orpora­

dorm an t

s h e ll

B a n k , w ith d e p o s it s o f $ 8 7 m illio n at D e c e m b e r

c e n t o r m o r e o f th e v o t in g s h a r e s o f B a n c o M e r -

31,

c a n t il d e P u e r t o

C o m m o n w e a lt h o f P u e r to R ic o a n d o p e r a te s o n e

R ic o , I n c .,

S a n Ju an (R io

P ie -

1974,

is

o r g a n iz e d

b r a n c h o ff ic e e a c h

d r a s ), P u e r to R ic o ( “ B a n k ” ).
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity

under

th e

la w s

of

th e

in R i o P i e d r a s , S a n t u r c e , a n d

P o n c e , a n d h a s r e c e iv e d

a c o n d it io n a l lic e n s e to

and

e s t a b lis h a fo u r th o ff ic e at H a to R e y . In te r m s o f

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w i t h § 3 ( b )

d e p o s i t s a t D e c e m b e r 3 1 , 1 9 7 3 , B a n k r a n k e d 1 0 th

fo r

in te r e s te d

p erso n s

to

s u b m it

co m m en ts

o f th e A c t . T h e tim e fo r filin g c o m m e n t s a n d v ie w s

am ong

h a s e x p ir e d ,

banks

and

th e

B oard

h a s c o n s id e r e d

th e

14

n o n g o v e r n m e n t-o w n e d

o p e r a tin g

in

P u er to

c o m m e r c ia l
B ank

a

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d in l i g h t o f
t h e f a c t o r s s e t f o r t h in § 3 ( c ) o f t h e A c t ( 1 2 U . S . C .

G r o u p , I n c . , H a t o R e y , P u e r t o R i c o , e n g a g e d in
le a s in g

A p p lic a n t, a C a n a d ia n c o m m e r c ia l b a n k c h a r ­
te r ed

under

th e

B ank

A ct of

C anada,

has

982

o f f i c e s l o c a t e d in C a n a d a a n d a b r o a d a n d c o n t r o l s

a c tiv itie s ,

w h ic h

B ankm erc

has

w h o lly -o w n e d

1 8 4 2 (c )).

s u b s id ia r y ,

R ic o .

In v e stm e n t

A p p lic a n t w ill

seek

to

r e t a in u n d e r s e c t i o n 4 o f t h e A c t a f t e r 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 .
A p p lic a n t a n d

B ank

are p r e s e n tly

tw o

o f th e

b illio n o f d e p o s it s .1 A p p li­

s m a l l e r c o m p e t i n g b a n k s in t h e S a n J u a n b a n k i n g

c a n t h a s b e e n d o i n g b u s i n e s s in P u e r t o R i c o f o r

m a r k e t,3 w h e r e th e fo u r la r g e s t b a n k s c o n tr o l a p ­

a p p r o x im a te ly $ 1 2 .1

65

years

a n d o p e r a te s fo u r b r a n c h e s th e r e

d e p o s its a g g r e g a t in g $ 8 0 .5

w ith

m i l l i o n , r a n k in g A p ­

p r o x im a te ly 7 1 . 6

p e r c e n t o f t h e m a r k e t ’s $ 2 . 3

b i l l i o n o f d e p o s i t s . 4 A p p l i c a n t r a n k s n in t h in t h e

p l i c a n t , in t e r m s o f d e p o s i t s , a s t h e n in t h l a r g e s t

m a r k e t w ith

b a n k in P u e r t o R i c o . 2 A p p l i c a n t a l s o m a i n t a i n s a n

m a r k e t ’s d e p o s i t s , a n d B a n k r a n k s e l e v e n t h w i t h

1All banking and financial data for Applicant and its subsid­
iaries are as o f October 3 1, 1974.
2 A pplicant’s deposit data for Puerto R ico are as o f D ecem ber
31, 1973, unless otherw ise indicated.

3 The San Juan banking market consists o f the San Juan
SM SA .
4 A ll deposit data for the San Juan banking market are as
of June 30, 1973.




a p p r o x im a te ly

3 .1

per

cen t o f

th e

310

Federal R eserve Bulletin □ M ay 1975

a p p r o x im a te ly 2 . 0 p e r c e n t o f th e m a r k e t’s d e p o s ­

tie th c a le n d a r d a y f o ll o w i n g th e e f f e c t iv e d a te o f

its . 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 a d v a n c e

t h i s O r d e r o r ( b ) la t e r t h a n t h r e e m o n t h s a f t e r t h e

A p p l i c a n t ’s r a n k t o s i x t h i n t h e m a r k e t , a s it w o u l d

e f f e c t iv e d a te o f th is O r d e r , u n le s s

in c r e a s e A p p l ic a n t ’s s h a r e to 5 .1

is 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 r d , o r b y

m a r k e t ’s

d e p o s its .

W h ile

p e r c e n t o f th e

c o n s u m m a t io n

of

th e

p r o p o sa l w o u ld e lim in a te s o m e e x is t in g c o m p e ti­
tio n

b e tw e e n

A p p lic a n t

and

B ank

and

th e F e d e r a l R e s e r v e B a n k o f N e w

p e r io d

Y o rk pu rsu an t

t o d e l e g a t e d a u t h o r it y .
B y o rd er o f th e B o a r d o f G o v e r n o r s, e ffe c tiv e

w o u ld

s lig h t ly in c r e a s e th e c o n c e n tr a tio n o f b a n k in g r e ­

su ch

A p r il 9 ,

1975.

s o u r c e s in t h e m a r k e t , i n t h e B o a r d ’ s j u d g m e n t ,
th e s e a n t ic o m p e titiv e e ff e c t s w o u ld b e c le a r ly o u t­
w e ig h e d

in

th e

p u b lic

in te r e s t b y

e f f e c t o f t h e t r a n s a c t i o n in

th e

p r o b a b le

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s an d G o v e r ­
n o r s S h e e h a n , B u c h e r , H o lla n d , W a llic h , an d C o ld w e ll.
A b s e n t an d n o t v o tin g : G o v e r n o r M itc h e ll.

m e e tin g th e c o n v e n ­
(S ig n e d ) T h e o d o r e E . A l l i s o n ,

ie n c e a n d n e e d s o f th e c o m m u n ity to b e s e r v e d ,
b e c a u s e B a n k ’s v ia b ility

a s a c o m p e tito r

m arket has b een

g r e a tly

le s s e n e d a s a r e s u lt o f

its

m a n a g e r ia l

f i n a n c ia l

and

B a n k ’s c o n d i t i o n ,

it w o u l d

p r o b le m s .
a ls o

in

th e

D ue

A p p li­

c a n t a n d B a n k i s b e i n g f o r e c l o s e d , a n d , w h i l e it
m ig h t b e m o r e d e s ir a b le to h a v e B a n k s e r v e

S e c r e t a r y o f th e B o a r d .

G o o s e R iv e r H o l d i n g

Com pany,

to

a p p e a r th a t n o

s u b s ta n tia l p o t e n tia l c o m p e t it io n b e t w e e n

[s e a l]

as

M a y v il l e , N o r t h D a k o t a
O r d e r A p p r o v in g F o r m a tio n o f B a n k
H o ld in g C o m p a n y

a f o o t h o ld e n tr y fo r a n o th e r b a n k in g o r g a n iz a tio n
o u t s id e

th e

m a r k e t,

th e

n e c e s s ity

of

fin d in g

G oose

a

R iv e r

C om pany,

th e d o m in a n t c o n s id e r a t io n .
T h e f i n a n c ia l a n d m a n a g e r i a l r e s o u r c e s a n d f u ­

p r o v a l u n d er § 3 (a ) (1 ) o f th e B a n k H o ld in g C o m ­

tu re p r o s p e c ts o f A p p lic a n t are r e g a r d e d a s s a tis ­

a b a n k h o ld in g

f a c t o r y a n d c o n s i s t e n t w i t h a p p r o v a l . T h e f i n a n c ia l

9 3 .1 p er c e n t or m o r e o f th e v o tin g sh a r e s o f T h e

a n d m a n a g e r ia l r e s o u r c e s a n d fu tu r e p r o s p e c t s o f

G oose

B a n k are c o n s id e r e d to

( “ B a n k ” ).

c o n tin u e a s a v ia b le b a n k in g

in s tit u tio n

h a s a p p lie d

p a n y A c t (1 2 U .S .C .

R iv e r

fo r

M a y v ille ,

N o r th

b e p o o r , a n d i f it i s t o

D a k o ta ,

H o ld in g

t i m e l y r e s o l u t i o n o f it s p r e s e n t p r o b l e m s m u s t b e

th e B o a r d ’s

ap­

1 8 4 2 ( a ) ( 1 ) ) o f fo r m a t io n o f

com pany

B ank,

th ro u g h

M a y v ille ,

a c q u is itio n

N o r th

of

D a k o ta

N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity

it m u s t

b e a c q u ir e d b y a s o u n d a n d w e l l - m a n a g e d b a n k i n g

fo r in t e r e s t e d

in s titu tio n s u c h a s A p p lic a n t. A c q u is it io n o f B a n k

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w i t h § 3 ( b )

b y A p p lic a n t w ill p r o v id e B a n k

w ith n e e d e d

f i­

p erso n s

to

s u b m it

c o m m en ts

and

o f th e A c t. T h e tim e fo r filin g c o m m e n t s a n d v ie w s

n a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d w ill g r e a tly

h a s e x p ir e d ,

i m p r o v e it s f u t u r e p r o s p e c t s . P a r t i c u la r ly i m p o r ­

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d in l i g h t o f

ta n t f r o m

t h e f a c t o r s s e t f o r t h in § 3 ( c ) o f t h e A c t ( 1 2 U . S . C .

upon

th e B o a r d ’s v ie w p o in t is th e fa c t th a t

c o n s u m m a tio n

of

th e

p r o p o s a l,

A p p lic a n t

to w a r d

a p p r o v a l,

as

th e

c o n tin u ity

of

c o m p a n y th r o u g h th e a c q u is itio n o f B a n k . B a n k
(d e p o s its

of

$ 1 2 .3

M a y v ille , is th e

w o u ld b e m a in ta in e d in

th e

th o se areas n o w

A p p lic a n t in t e n d s to

th e

A p p lic a n t is a n o n -o p e r a tin g c o r p o r a tio n o r g a ­

b a n k in g s e r v ic e s b y a lo c a lly -c h a r te r e d in s tit u tio n

by B ank.

h a s c o n s id e r e d

n iz e d fo r th e p u r p o se o f b e c o m in g a b a n k h o ld in g

C o n v e n ie n c e a n d n e e d s fa c to r s a ls o le n d g r e a t
w e ig h t

B oard

1 8 4 2 (c )).

w ill ta k e fu ll m a n a g e r ia l c o n tr o l o f B a n k . T h e s e
fa c to r s le n d g r e a t w e ig h t to w a r d a p p r o v a l.

a n d th e

served

o p e r a te B a n k

r e le v a n t

m illio n ),

th e

o n ly

bank

in

s e c o n d l a r g e s t o f f i v e b a n k s in

m a r k e t,

a p p r o x im a te d

by

T r a i ll

as

C o u n t y , a n d h o ld s 2 8 .8 p e r c e n t o f th e c o m m e r c ia l

a s e p a r a t e s u b s i d i a r y , p e r h a p s in c o m b i n a t i o n w i t h

b a n k d e p o s i t s i n t h e m a r k e t . 1 T r a i ll C o u n t y ( p o p ­

it s o t h e r b r a n c h o f f i c e s i n P u e r t o R i c o . T h i s s h o u l d

u la tio n

a ls o

n a n t l y a g r ic u lt u r a l a r e a i n t h e e a s t c e n t r a l p o r t i o n

im p r o v e .th e r a n g e

and

q u a lity

of

b a n k in g

of

a p p r o x im a te ly

1 0 ,0 0 0 )

is

a p r e d o m i­

s e r v ic e s a v a ila b le to th e p u b lic at B a n k ’s o ff ic e s .

o f N o r th D a k o ta d ir e c tly a d ja c e n t to th e M in n e s o ta

I t i s t h e B o a r d ’ s j u d g m e n t th a t c o n s u m m a t i o n o f

b o r d e r . S in c e th e p r o p o s a l is e s s e n t ia lly a r e s tr u c ­

th e p r o p o s e d tr a n s a c tio n w o u ld b e in th e p u b lic

t u r in g o f B a n k ’ s o w n e r s h i p w h e r e b y t h e o w n e r s h i p

i n t e r e s t a n d th a t t h e a p p l i c a t i o n t o a c q u i r e B a n k

of

s h o u ld b e a p p r o v e d .

c o r p o r a tio n o w n e d b y th e s a m e in d iv id u a ls , c o n ­

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

B ank

w ill

be

s h ifte d

fr o m

in d iv id u a ls




a

s u m m a t io n o f th e p r o p o s a l w o u ld e lim in a t e n e ith e r

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e
t r a n s a c t i o n s h a l l n o t b e m a d e ( a ) b e f o r e t h e t h ir ­

to

JA11 banking data are as of June 30, 1974.

L aw D epartm ent

e x is tin g

or

p o te n tia l

c o m p e tit io n ,

nor

w o u ld

it

i n c r e a s e t h e c o n c e n t r a t i o n o f b a n k i n g r e s o u r c e s in
a n y r e le v a n t a rea . A c c o r d in g ly ,

on

th e b a s is

M id w e s t B a n c s h a r e s , I n c .,
P o p l a r B l u f f s , M is s o u r i

of

th e fa c ts o f r e c o r d , th e B o a r d r eg a r d s c o m p e tit iv e
c o n s id e r a t io n s in v o lv e d

in t h e p r o p o s a l a s b e i n g

O r d e r D e n y in g F o r m a tio n o f B a n k
H o ld in g C o m p a n y

c o n s is t e n t w ith a p p r o v a l o f th e a p p lic a tio n .

M i d w e s t B a n c s h a r e s , I n c . , P o p la r B l u f f s , M i s ­

T h e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u ­
tu r e p r o s p e c t s o f

311

s o u r i, 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

A p p lic a n t a re d e p e n d e n t u p o 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

th o se o f B a n k , w h ic h are c o n s id e r e d to b e g e n e r ­

U .S .C . 1 8 4 2 ( a ) ( 1 ) ) o f fo r m a tio n o f a b a n k h o ld in g

a l l y s a t i s f a c t o r y . B a n k ’s p r o j e c t e d i n c o m e a p p e a r s

c o m p a n y th r o u g h a c q u is it io n o f 8 0 p e r c e n t o f th e

a d e q u a t e t o s e r v i c e t h e d e b t th a t w i l l b e in c u r r e d

v o tin g s h a r e s o f D e x te r

by

M is s o u r i ( “ B a n k ” ).

A p p lic a n t

as an

in c id e n t

to

th e

a c q u is itio n .

T h e r e fo r e , c o n s id e r a t io n s r e la tin g to th e b a n k in g

N a tio n a l B a n k ,

D e x te r,

N o t ic e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity

fa c to r s a re c o n s is t e n t w ith a p p r o v a l o f th e a p p li­

fo r

c a tio n . A lth o u g h c o n s u m m a t io n o f th e tr a n s a c tio n

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w i t h § 3 ( b )

in t e r e s t e d

p erso n s

to

su b m it

co m m en ts

and

is n o t e x p e c t e d t o p r o d u c e a n y i m m e d i a t e c h a n g e s

o f th e A c t. T h e tim e fo r f ilin g c o m m e n t s a n d v ie w s

in B a n k ’ s o p e r a t i o n s n o r i m m e d i a t e b e n e f i t s t o t h e

h a s e x p ir e d ,

p u b lic , c o n s id e r a t io n s r e la tin g to th e c o n v e n ie n c e

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d , i n c l u d i n g

and

needs

of

c o n s is t e n t w ith

th e

c o m m u n ity

to

be

served

a p p r o v a l o f th e a p p lic a tio n .

t h e B o a r d ’s j u d g m e n t th a t t h e a c q u i s i t i o n

are
It is

w o u ld

b e c o n s i s t e n t w i t h t h e p u b l i c i n t e r e s t a n d th a t t h e
a p p lic a tio n s h o u ld b e a p p r o v e d .

and

th o s e s u b m itte d

th e

B oard

h a s c o n s id e r e d

b y th e C o m p t r o lle r o f th e

r e n c y , in l i g h t o f t h e f a c t o r s s e t f o r t h in
o f th e A c t (1 2 U .S .C .

th e
C ur­

§ 3 (c )

1 8 4 2 (c )).

A p p l i c a n t is a n o n o p e r a t i n g c o r p o r a t i o n

orga­

n iz e d u n d e r th e la w s o f M is s o u r i fo r th e p u r p o se
is

o f b e c o m in g a b a n k h o ld in g c o m p a n y th r o u g h th e

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e

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

a c q u is itio n o f B a n k . W ith d e p o s it s o f $ 8 m il lio n ,

t r a n s a c t i o n s h a l l n o t b e m a d e ( a ) b e f o r e t h e t h ir ­

B ank

t ie t h c a l e n d a r d a y f o l l o w i n g t h e e f f e c t i v e d a t e o f

to ta l d e p o s its

t h is O r d e r o r ( b ) la t e r th a n t h r e e m o n t h s a f t e r t h e

r e le v a n t b a n k in g m a r k e t (a p p r o x im a te d b y S t o d ­

e f f e c t iv e d a te o f th is O r d e r ,

d a r d C o u n t y ) a n d is t h e t h ir d la r g e s t o f t h e m a r ­

is e x t e n d e d f o r

good

cau se

u n le s s
b y th e

su ch

p e r io d

B oard or b y

th e F e d e r a l R e s e r v e B a n k o f M in n e a p o lis p u r su a n t
t o d e l e g a t e d a u t h o r it y .

a p p r o x im a te ly
h e ld

by

1 5 .1

p er c e n t o f th e

c o m m e r c ia l b a n k s

in

th e

k e t ’ s s i x b a n k s . 1 I n a s m u c h a s t h is p r o p o s a l r e p r e ­
s e n ts m e r e ly a r e o r g a n iz a t io n o f e x is t in g o w n e r ­
s h ip in t e r e s t s , a n d s in c e A p p lic a n t h a s n o p r e s e n t

B y o rd er o f th e B o a r d o f G o v e r n o r s , e f fe c tiv e
A p r il 7 ,

h o ld s

1975.

b a n k in g s u b s id ia r ie s , th e a c q u is itio n o f B a n k b y
A p p lic a n t w o u ld n o t h a v e a n y s ig n ific a n tly a d v e r s e

V o tin g fo r th is a c tio n : G o v e r n o r s S h e e h a n , H o lla n d ,
an d B u c h e r . V o tin g a g a in s t th is a c tio n : V ic e C h a ir m a n
M itc h e ll an d G o v e r n o r W a llic h . A b s e n t an d n o t v o tin g :
C h a ir m a n B u r n s a n d G o v e r n o r C o ld w e ll.
(S ig n e d ) T h e o d o r e E . A l l i s o n ,
[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 tin g S ta te m e n t o f V ic e C h a ir m a n
M itc h e ll a n d G o v e r n o r W a llic h

e f f e c t u p o n e ith e r a c tu a l o r p o t e n tia l c o m p e t it io n
w ith in

th e

r e le v a n t

B o a rd c o n c lu d e s

m a r k e t.

A c c o r d in g ly ,

th a t c o m p e t it iv e

th e

c o n s id e r a tio n s

are c o n s is t e n t w ith a p p r o v a l o f th e a p p lic a tio n .
T h e B o a r d h a s in d ic a te d o n p r e v io u s o c c a s io n s
th a t it b e l i e v e s

th a t

p r o v id e

a

sou rce

str e n g th

to

it s

of

a

h o ld in g
f in a n c i a l

s u b s id ia r y

com pany
and

b a n k (s),

s h o u ld

m a n a g e r ia l
and

th a t

th e

B o a r d w ill c l o s e l y e x a m in e th e c o n d it io n o f th e

T h e b a n k h o ld in g c o m p a n y fo r m o f o r g a n iz a tio n

A p p l i c a n t in e a c h c a s e w i t h t h i s c o n s i d e r a t i o n in

e n h a n c e s m a n a g e m e n t p o w e r s a n d o p p o r t u n i t i e s in

m in d . In c o n n e c t io n w it h th is p r o p o s a l, A p p lic a n t

b a n k i n g a n d b a n k r e l a t e d a c t i v i t i e s . T h e r e c o r d in

w i l l in c u r a c q u i s i t i o n d e b t w h i c h

t h is c a s e d o e s n o t i n d i c a t e th a t a n y d i r e c t p u b l i c

s e r v ic e

over

b e n e fit is f o r e s e e n a s a r e s u lt o f th e fo r m a t io n o f

th r o u g h

d iv id e n d s

th is h o ld in g c o m p a n y . M o r e o v e r th e r e c o r d , in o u r

v i e w , th e p r o je c te d e a r n in g s o f A p p lic a n t o v e r th e

o p in io n ,

o th e r th a n

d e b t-r e tir e m e n t p e r io d a p p e a r to b e s o m e w h a t o p ­

e n h a n c e m e n t o f th e c o r p o r a te in te r e s t, a n y in d ir e c t

t i m i s t i c in v i e w o f B a n k ’s p r e v i o u s e a r n i n g s a n d ,

su p p o r ts th e

in f e r e n c e th a t,

a

tw e lv e -y e a r
fr o m

B ank.

it p r o p o s e s t o

p e r io d
In

th e

p r im a r ily
B o a r d ’s

e f f e c t s a r e l i k e l y t o b e n e g a t i v e s o fa r a s t h e p u b l i c
in t e r e s t i s c o n c e r n e d . F o r t h a t r e a s o n
d e n y th e a p p lic a tio n .




w e w o u ld

*A11 banking data are as of June 30 , 1974, unless otherw ise
indicated.

312

Federal R eserve B ulletin □ M ay 1975

e v e n if a c tu a lly r e a liz e d , w o u ld n o t p r o v id e A p ­

Y ork S tate C o m pa n y ,

p lic a n t w ith th e fin a n c ia l f le x ib ilit y n e c e s s a r y

Y o r k , N ebrask a

to

m e e t it s a n n u a l d e b t s e r v i c e r e q u i r e m e n t s w h i l e
m a in ta in in g
m ore,

th e

a d e q u a te
fin a n c ia l

c a p ita l

at B a n k .2 F u rth e r ­

r e q u ir e m e n ts

im p o se d

A p p lic a n t a s a r e s u lt o f th e d e b t c o u ld
it f r o m
m ay

r e s o lv in g

a r is e

any

u n fo r ese en

a n d th er e b y

upon

preven t

p r o b le m s

im p a ir B a n k ’s

th a t

a b ility

to

c o n tin u e to s e r v e th e c o m m u n ity a s a v ia b le b a n k ­
in g o r g a n iz a tio n .
O n th e b a s is o f th e a b o v e

a n d o th er fa c ts o f

r e c o r d , t h e B o a r d i s o f t h e v i e w t h a t it w o u l d n o t
b e in t h e p u b l i c i n t e r e s t t o a p p r o v e t h e f o r m a t i o n
o f a b a n k h o ld in g
s tr u c tu r e

th a t

c o m p a n y w ith a n in itia l d e b t

c o u ld

r e s u lt

in

im p a ir in g

B a n k ’s

o v e r a l l f in a n c i a l c o n d i t i o n . A c c o r d i n g l y , t h e B o a r d
c o n c l u d e s th a t t h e c o n s i d e r a t i o n s r e l a t i n g t o t h e
b a n k in g

fa c to r s

w e ig h

a g a in s t

above,

th e

ap p roval

of

th e

a p p lic a tio n .
As

in d ic a te d

p rop osed

fo r m a tio n

e s s e n t ia lly in v o l v e s th e r e o r g a n iz a t io n o f th e o w n ­
e r s h ip

in te r e s t

of

B ank

w ith o u t

any

s ig n ific a n t

c h a n g e s in B a n k ’ s o p e r a t i o n s o r t h e s e r v i c e s o f ­
fe r e d to c u s to m e r s o f B a n k . C o n s e q u e n tly , 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 ity

to b e

served

le n d

no

w e ig h t

to w a r d a p p r o v a l o f th e a p p lic a tio n .
O n t h e b a s i s o f a ll o f t h e c i r c u m s t a n c e s c o n ­
c e r n i n g t h is a p p l i c a t i o n , t h e B o a r d c o n c l u d e s th a t
th e b a n k in g c o n s id e r a t io n s
p osal

p resen t

a d v erse

i n v o l v e d in t h i s p r o ­

fa c to r s

b e a r in g

upon

th e

f in a n c ia l c o n d i t i o n s a n d p r o s p e c t s o f b o t h A p p l i ­
c a n t a n d B a n k . S u c h a d v e r se fa c to r s are n o t o u t­
w e ig h e d

by

any

p r o c o m p e titiv e

e ffe c ts

or

by

b e n e f i t s t h a t w o u l d r e s u l t in s e r v i n g t h 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 ity . A c c o r d in g ly ,
it i s t h e B o a r d ’ s j u d g m e n t t h a t a p p r o v a l o f t h e
a p p l i c a t i o n w o u l d n o t b e in t h e p u b l i c i n t e r e s t a n d
th a t t h e a p p l i c a t i o n s h o u l d b e d e n i e d .
O n th e b a s is o f th e fa c ts o f r e c o r d , th e a p p lic a ­
t io n is d e n ie d fo r th e r e a s o n s s u m m a r iz e d a b o v e .
B y o rd er o f th e B o a r d o f G o v e r n o r s, e ffe c tiv e
A p r il 1 7 , 1 9 7 5 .

Y o r k S ta te C o m p a n y , Y o r k , N e b r a sk a , 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 § 3 ( a ) ( 1 ) o f
th e

B ank

H o ld in g

C om pany

A ct

(1 2

U .S .C .

1 8 4 2 ( a ) ( 1 ) ) o f fo 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 r o u g h a c q u is itio n o f

1 0 0 p er c e n t o f th e

v o tin g s h a r e s ( le s s d ir e c to r s ’ q u a lify in g s h a r e s ) o f
Y o r k S ta te B a n k , Y o r k , N e b r a s k a ( “ B a n k ” ).
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
fo r

in t e r e s t e d

p erso n s

to

s u b m it

co m m en ts

and

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w i t h § 3 ( b )
o f th e A c t. T h e tim e fo r filin g c o m m e n t s a n d v ie w s
h a s e x p ir e d ,

a n d th e

B oard

h a s c o n s id e r e d

th e

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d in l i g h t o f
th e fa c to r s s e t fo r th 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 , a n o n o p e r a t in g c o r p o r a tio n w ith n o
s u b s id ia r ie s ,
b e c o m in g

w as

o r g a n iz e d

a bank

h o ld in g

fo r

th e

com pany

p u rp o se
th r o u g h

a c q u is itio n o f B a n k . B a n k (d e p o s it s o f $ 2 1

of
th e

m il­

l i o n ) i s t h e s m a l l e r o f t w o b a n k s in Y o r k a n d t h e
secon d

la r g e s t

r e le v a n t

o f seven

b a n k in g

banks

o p e r a tin g

m a r k e t,1 c o n tr o llin g

in

th e

a p p r o x i­

m a t e l y 2 9 p e r c e n t o f t h e t o t a l d e p o s i t s in c o m ­
m e r c i a l b a n k s in t h e m a r k e t . 2 U p o n a c q u i s i t i o n o f
B a n k , A p p lic a n t w o u ld c o n tr o l a p p r o x im a te ly 0 . 4
p e r c e n t o f t h e t o t a l c o m m e r c i a l b a n k d e p o s i t s in
th e S ta te . S in c e th e p u r p o s e o f th e p r o p o s e d tr a n s ­
a c tio n is e s s e n t ia lly

a r e o r g a n iz a t io n

to e ffe c t a

tr a n sfe r o f th e o w n e r s h ip o f th e s h a r e s o f B a n k
fr o m a n in d iv id u a l to a c o r p o r a tio n o w n e d b y th e
sam e

in d iv id u a l,

c o n s u m m a tio n

o f th e

p rop osal

w o u ld n o t e lim in a te a n y e x is t in g c o m p e tit io n , n o r
w o u l d it a p p e a r t o h a v e a n y
o th e r b a n k s or o n
c o m p e titio n

in

a d v erse e ffe c ts

on

th e d e v e lo p m e n t o f p o t e n tia l

th e

r e le v a n t

m a r k e t.

T h e r e fo r e ,

c o m p e t it iv e c o n s id e r a t io n s are c o n s is t e n t w ith a p ­
p r o v a l o f th e a p p lic a tio n .
T h e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u ­

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r ­
n o r s M it c h e ll, H o lla n d , a n d C o ld w e ll. A b s e n t a n d n o t
v o tin g : G o v e r n o r s S h e e h a n , B u c h e r , an d W a llic h .
(S ig n e d ) T h e o d o r e E . A l l i s o n ,
[s e a l]

O r d e r A p p r o v in g F o r m a tio n o f B a n k
H o ld in g C o m p a n y

S e c r e t a r y o f th e B o a r d .

tu re p r o s p e c t s o f
th o se

of B ank.

A p p lic a n t a re d e p e n d e n t u p o n

T h ose

of B ank

are

regard ed

as

s a tis fa c to r y . A lth o u g h A p p lic a n t w ill a s s u m e d e b t
in a c q u i r i n g t h e

s h a r e s o f B a n k , it a p p e a r s th a t

in c o m e fr o m B a n k w ill p r o v id e s u ffic ie n t r e v e n u e
to s e r v ic e th e d e b t a d e q u a te ly w ith o u t im p a ir in g
t h e f in a n c i a l

c o n d it io n

of

B ank.

C o n s id e r a tio n s

r e la tin g to th e b a n k in g fa c to r s are c o n s is t e n t w it h
2In a letter dated March 4 , 1975 to the Board, the C om p­
troller o f the Currency indicated that he w as not recom m ending
approval of the application because B ank’s past earnings h is­
tory and capital structure made it seem unlikely that the annual
debt service requirements and the anticipated growth in bu si­
ness volum e w ould be m et by B ank’s projected net earnings.




xThe relevant banking market is approximated by York
C ounty.
2Banking data are as of June 30, 1974.

Law D epartm ent

a p p r o v a l o f th e a p p lic a tio n . A lth o u g h c o n s u m m a ­

s u b s id ia r y

tio n o f th e tr a n s a c tio n w o u ld h a v e n o im m e d ia te

flo w in g fr o m

e f f e c t o n a r e a b a n k in g n e e d s , c o n s id e r a t io n s r e la t­

to a n in d iv id u a l. I c a n n o t b e l i e v e th a t th e p u b lic

in 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 ity

in t e r e s t i s s e r v e d b y u s e o f t h e h o l d i n g c o m p a n y

to b e s e r v e d are c o n s is t e n t w ith a p p ro v a l o f th e

s t r u c t u r e in t h is f a s h i o n .

a p p l i c a t i o n . It i s t h e B o a r d ’ s j u d g m e n t t h a t c o n ­

bank,

and

w here

th e

o n ly

313

th e p r o p o s a l are th o s e

b e n e fits

t h a t p e r t a in

F o r th e s e r e a s o n s , I w o u ld d e n y th e a p p lic a tio n .

s u m m a t io 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 b e
c o n s is t e n t w ith

th e

p u b lic

in t e r e s t

and

th a t

th e

a p p lic a tio n s h o u ld b e a p p r o v e d .

DETROITBANK

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 r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e

Order Approving Acquisition of Bank

t r a n s a c t i o n s h a ll n o t b e m a d e ( a ) b e f o r e t h e t h ir ­
t ie t h c a l e n d a r d a y f o l l o w i n g t h e e f f e c t i v e d a t e o f
t h is O r d e r o r ( b ) la t e r t h a n t h r e e m o n t h s a f t e r t h e
e f f e c t i v e d a t e o f t h is O r d e r , u n l e s s

su ch

p e r io d

is e x t e n d e d f o r g o o d c a u s e b y t h e B o a r d , o r b y
th e F e d e r a l R e s e r v e B a n k o f K a n s a s C ity p u r su a n t
t o d e l e g a t e d a u t h o r it y .

D E T R O I T B A N K C o r p o r a tio n , D e t r o it , M ic h i­
g a 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 t h e B o a r d ’s a p p r o v a l u n d e r
A ct (1 2 U .S .C .

1975.

v o tin g s h a r e s (le s s d ir e c to r s ’ q u a lify in g s h a r e s ) o f
( “ B a n k ” ).
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n it y

V o tin g fo r th is a c tio n : G o v e r n o r s S h e e h a n , B u c h e r ,
H o lla n d , a nd W a llic h . V o tin g a g a in s t th is a c tio n : G o v ­
e rn o r C o ld w e ll. A b s e n t an d n o t v o tin g : C h a ir m a n B u rn s
and G o v e r n o r M itc h e ll.

fo r

in t e r e s t e d

p erso n s

to

s u b m it

co m m en ts

and

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w i t h § 3 ( b )
o f th e A c t. T h e tim e fo r filin g c o m m e n t s a n d v ie w s
h a s e x p ir e d ,

(S ig n e d ) G r i f f i t h
[s e a l]

§ 3 ( a ) ( 3 ) o f th e

1 8 4 2 ( a ) ( 3 ) ) t o a c q u i r e a ll o f t h e

F ir s t N a t i o n a l B a n k o f W a r r e n , W a r r e n , M i c h i g a n

B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t iv e
A p r il 2 4 ,

C o r p o r a tio n ,

D e t r o it , M ic h ig a n

and

th e

B oard

h a s c o n s id e r e d

th e

L. G a rw o o d ,

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d in l i g h t o f

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 .

th e f a c t o r s s e t f o r t h in § 3 ( c ) o f t h e A c t ( 1 2 U . S . C .
1 8 4 2 (c )).

D is s e n tin g S ta te m e n t o f G o v e r n o r C o ld w e ll
I w o u ld
C om pany

deny
to

th e

a p p lic a tio n

becom e

a

bank

of

Y ork

h o ld in g

A p p lic a n t, th e fo u r th la r g e s t b a n k h o ld in g c o m ­
S ta te

com pany

th r o u g h th e a c q u is itio n o f Y o r k S ta te B a n k , Y o r k ,
A b a n k h o ld in g c o m p a n y fo r m o f o r g a n iz a tio n
e n h a n c e s m a n a g e m e n t p o w e r s a n d o p p o r t u n i t i e s in
b a n k in g , a n d e n a b le s th e o r g a n iz a tio n

to p u rsu e

e x p a n s io n in to p e r m is s ib le n o n b a n k in g a c t iv it ie s .
T h u s , it is im p o r t a n t t h a t t h e f in a n c ia l s o u n d n e s s
o f t h e b a n k h o l d i n g c o m p a n y b e a s s u r e d a n d th a t
th e h o ld in g c o m p a n y b e a s o u r c e o f s tr e n g th to
it s s u b s i d i a r i e s . T h e a m o u n t o f d e b t b e i n g a s s u m e d
b y t h e h o l d i n g c o m p a n y in t h i s p r o p o s a l i s h i g h
in

my

v ie w ,

is

a

q u e s tio n a b le

e le m e n t.

M o r e o v e r , t h e r e c o r d in t h i s c a s e d o e s n o t i n d i c a t e
th a t a n y d i r e c t b e n e f i t s t o t h e p u b l i c w o u l d r e s u lt
fr o m th e fo r m a tio n o f th e h o ld in g c o m p a n y . T h e
o n l y d i s c e r n i b l e b e n e f i t s th a t w i l l r e s u lt a r e t h o s e
r e l a t i n g t o t h e p e r s o n a l f in a n c i a l i n t e r e s t s o f t h e
p resen t

ow ner

of

B ank,

w ho

w ill

a ls o

be

th e

p r in c ip a l o w n e r o f th e h o ld in g c o m p a n y . In m y
v ie w , th e a p p r o v a l o f a h o ld in g c o m p a n y p r e su p ­
p o s e s a r e a l p u b l i c i n t e r e s t b e n e f i t . It s h o u l d n o t
b e a p p r o v e d b y th e B o a r d w h e r e th e d e b t to b e
in c u r r e d b y t h e h o l d i n g c o m p a n y i s h i g h , p o t e n ­
tia lly

w ith

a g g reg a te

d e p o s its

of

about

$ 2 .3

b illio n ,2

r e p r e s e n tin g a p p r o x im a te ly 8 .1 p e r c e n t o f th e to ta l
c o m m e r c i a l b a n k d e p o s i t s in t h e S t a t e . A p p l i c a n t ’ s

N eb ra sk a .

and,

p a n y in M i c h i g a n , c o n t r o l s t h r e e s u b s i d i a r y b a n k s 1

im p a ir in g




th e

fin a n c ia l

sou n d n ess

of

th e

a c q u is itio n

of

B ank

w o u ld

in c r e a s e

A p p lic a n t’s

s h a r e o f c o m m e r c i a l b a n k d e p o s i t s in t h e S t a t e b y
0 . 2 p e r c e n t a n d w o u l d n o t r e s u l t in a s i g n i f i c a n t
in c r e a s e in t h e c o n c e n t r a t i o n o f b a n k i n g r e s o u r c e s
in M i c h i g a n .
B a n k (d e p o s its o f $ 4 5 .2

m i l l i o n ) i s l o c a t e d in

W a r r e n , a su b u r b o f D e tr o it, a n d o p e r a te s in th e
D e tr o it

b a n k in g

b a n k in g m a r k e t.

m a r k e t,3 w h ic h
S o m e 41

is

th e

r e le v a n t

b a n k in g o r g a n iz a tio n s

w ith a to ta l o f 6 3 8 o ff ic e s c o m p e t e in th e D e tr o it
b a n k in g m a r k e t.

A p p l i c a n t ’s l e a d

b a n k o p e r a te s

8 5 o f f i c e s in t h e D e t r o i t b a n k i n g m a r k e t , i n c l u d i n g
o ffic e s w h ic h s e r v e th e W a r r e n a r e a a n d c o m p e t e
d i r e c t l y w i t h B a n k . T h u s , it a p p e a r s t h a t c o n s u m ­
m a tio n

of

th is

a c q u is itio n

w o u ld

r e s u lt

in

th e

e lim in a tio n o f s o m e e x is t in g a n d fu tu r e c o m p e t i­
t i o n in t h e D e t r o i t b a n k i n g m a r k e t , a l t h o u g h t h is
s i t u a t i o n i s m i t i g a t e d t o s o m e e x t e n t b y t h e la r g e
*Two of A pplicant’s subsidiary banks are recently formed
de novo banks.
2Banking data are as of June 3 0 , 1974.
3The D etroit banking market is approximated by M acom b,
Oakland, and W ayne C ounties.

314

Federal R eserve B ulletin □ M ay 1975

n u m b e r o f c o m p e t in g b a n k s o p e r a tin g in th e m a r ­

Federal

k e t . W h i l e it i s t h e B o a r d ’ s v i e w 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 w o u ld r e s u lt in

d e l e g a t e d a u t h o r it y .

R eserv e

B ank

s o m e a d v e r s e e f f e c t s o n c o m p e t i t i o n in t h e D e t r o i t

A p r il 1 1 , 1 9 7 5 .

of

C h ic a g o

p u rsu an t

to

B y o rd er o f th e B o a r d o f G o v e r n o r s, e f f e c tiv e

b a n k in g m a r k e t, th is s itu a t io n m u s t b e e x a m in e d
in lig h t o f th e fin a n c ia l, m a n a g e r ia l, a n d c o n v ie n c e
a n d n e e d s c o n s id e r a t io n s d is c u s s e d b e lo w .

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s an d G o v e r ­
n o r s M it c h e ll, S h e e h a n , H o lla n d , an d C o ld w e ll. A b s e n t
an d n o t v o tin g : G o v e r n o r s B u c h e r an d W a llic h .

T h e f in a n c i a l a n d m a n a g e r i a l r e s o u r c e s a n d f u ­
tu r e

p ro sp ects

of

A p p lic a n t

and

it s

s u b s id ia r y

(S ig n e d ) T h e o d o r e E . A l l i s o n ,
[s e a l]

S e c r e t a r y o f th e B o a r d .

b a n k s a r e r e g a r d e d a s f a v o r a b l e . T h e f in a n c i a l a n d
m a n a g e r ia l r e s o u r c e s a n d fu tu r e p r o s p e c t s o f B a n k
a re n o t e n tir e ly s a tis fa c to r y at th e p r e s e n t tim e b u t
are e x p e c te d to s h o w

m a r k e d im p r o v e m e n t a s a

G e n e r a l B a n c s h a r e s C o r p o r a t io n ,
S t . L o u i s , M is s o u r i

r e s u l t o f B a n k ’ s a f f ila t io n w i t h A p p l i c a n t . A p p l i ­
c a n t h a s c o m m it te d th a t, u p o n c o n s u m m a t io n o f

O r d e r A p p r o v in g A c q u is itio n o f B a n k

t h e a c q u i s i t i o n , it w o u l d m a k e a s u b s t a n t i a l c o n ­
G eneral

t r ib u t io n o f f u n d s t o i n c r e a s e B a n k ’ s c a p i t a l p o s i ­

B an csh a res

C o r p o r a tio n ,

m e a n in g

of

th e

( “ A c t” ),

has

a n d b e lie v e s th a t fin a n c ia l a n d m a n a g e r ia l fa c to r s

u nder

3 (a )(3 )

le n d

th e

1 8 4 2 ( a ) ( 3 ) ) t o a c q u ir e 1 0 0 p e r c e n t ( l e s s d i r e c t o r s ’

e n a b le B a n k

N a tio n a l B a n k o f K a n s a s C it y ,,K a n s a s C ity , M is ­

and

w o u ld

B oard

p r o v id e

a d d itio n a l

e x p e r ie n c e d

a u g m e n t B a n k ’s m a n a g e m e n t.

regard s th ese
s u b s t a n t ia l

c o m m itm e n ts

w e ig h t

to w a r d

as

The

s ig n ific a n t

ap p roval

of

§

B ank

a p p lie d
of

com pany

L o u is ,

bank

tio n

h o ld in g

S t.

a

p e r so n n e l to

M is s o u r i,

H o ld in g
fo r
th e

th e

w ith in

B o a r d ’s

A ct

th e

C om pany
(1 2

A ct

app roval

U .S .C .

§

q u a lify in g sh a r e s ) o f th e v o tin g sh a r es o f T ra d ers

a p p lic a tio n .
A ffilia tio n w it h

A p p lic a n t w o u ld

t o d r a w u p o n A p p l i c a n t ’s r e s o u r c e s a n d e x p e r t i s e

s o u r i ( “ B a n k ” ).
N o t ic e o f a p p lic a tio n , a ffo r d in g o p p o r tu n ity fo r

a n d t h e r e b y o f f e r e x p a n d e d s e r v i c e s t o it s c u s t o m ­
e r s . A p p lic a n t s ta te s th a t, f o ll o w i n g c o n s u m m a t io n
o f th e a c q u is itio n , B a n k w o u ld m a k e a v a ila b le to
it s c u s t o m e r s n u m e r o u s n e w

a n d im p r o v e d s e r v ­

in te r e ste d p e r so n s to su 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
A ct (1 2

U .S .C .

in a c c o r d a n c e w i t h
§

§ 3 (b ) o f th e

1 8 4 2 (b )). T h e tim e fo r filin g

i c e s , i n c l u d i n g : p e r s o n a l a n d c o r p o r a t e tr u s t s e r v ­

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 r d

i c e s , i n t e r n a t io n a l b a n k i n g s e r v i c e s , a c c o u n t s r e ­

h a s c o n s i d e r e d t h e a p p l i c a t i o n a n d a ll c o m m e n t s

c e iv a b le

lo c k

r e c e i v e d in l i g h t o f t h e f a c t o r s s e t f o r t h in § 3 ( c )

ex­

o f th e A c t ( 1 2 U .S .C . § 1 8 4 2 (c )) .
A p p lic a n t is th e s e v e n t h la r g e s t b a n k in g o r g a n i­

b oxes,

fin a n c in g ,
and

c o m p u te r iz e d

p erso n a l

p r o p e r ty

s e r v ic e s ,

le a s in g .

It is

p e c t e d th a t e n a b l i n g B a n k ’ s c u s t o m e r s t o o b t a i n
t h e s e s e r v i c e s t h r o u g h B a n k w o u l d r e s u l t in B a n k ’s
b e c o m i n g a m o r e a t t r a c t iv e b a n k i n g a l t e r n a t i v e a n d
a s tr o n g c o m p e tit o r in th e W a r r e n a r e a . C o n v e n ­
ie n c e a n d n e e d s c o n s id e r a t io n s a ls o

le n d w e ig h t

t o w a r d a p p r o v a l o f t h e a p p l i c a t i o n . T h e B o a r d is
o f t h e v i e w t h a t , u n d e r t h e c i r c u m s t a n c e s o f t h is
c a s e , th e c o n v e n ie n c e a n d n e e d s fa c to r s , c o n s id ­
e r e d to g e th e r w ith
fa c to r s d is c u s s e d
in te r e st th e

t h e f in a n c i a l a n d

above,

a d v erse

m a n a g e r ia l

o u t w e i g h in t h e p u b l i c

c o m p e tit iv e

e ffe c ts

of

t h is

p r o p o s a l . I t i s t h e B o a r d ’ s j u d g m e n t th a t c o n s u m ­
m a t io 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 b e

in

t h e p u b l i c in t e r e s t a n d t h a t t h e a p p l i c a t i o n s h o u l d

in

M is s o u r i

a n d c o n tr o ls s e v e n

M is s o u r i

s e n tin g

a p p r o x im a te ly

2 .4

per

c e n t o f th e

to ta l

d e p o s i t s h e l d b y c o m m e r c i a l b a n k s in t h e S t a t e . 1
In

a d d itio n ,

A p p lic a n t

c o n tr o ls

th r e e

banks

in

I l l i n o i s a n d o n e in T e n n e s s e e , a ll o f w h i c h w e r e
a c q u i r e d b y A p p l i c a n t p r io r t o t h e e n a c t m e n t o f
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 . A c q u i­
s itio n o f B a n k w o u ld in c r e a s e A p p lic a n t ’s sh a r e
o f S ta te d e p o s its b y a p p r o x im a te ly o n e -h a lf o f o n e
p e r c e n t , w h i l e A p p l i c a n t ’ s r a n k a m o n g t h e S t a t e ’s
b a n k i n g o r g a n i z a t i o n s w o u l d r e m a in u n c h a n g e d .
B a n k (d e p o s it s o f $ 8 1 .5 m illio n ) is th e e ig h th
la r g e s t c o m m e r c i a l b a n k i n t h e K a n s a s C i t y b a n k ­

b e ap p roved.
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

z a tio n

b a n k s w ith to ta l d e p o s it s o f $ 3 6 2 .8 m il lio n , r e p r e ­

is

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e
t r a n s a c t i o n s h a l l n o t b e m a d e ( a ) b e f o r e t h e t h ir ­

in g m a r k e t a n d c o n tr o ls a p p r o x im a te ly 1 .9 p e r c e n t
o f th e to ta l d e p o s it s h e ld b y c o m m e r c ia l b a n k s in
t h is m a r k e t . 2 A p p l i c a n t ’s c l o s e s t M i s s o u r i b a n k i n g

tie th c a le n d a r d a y f o ll o w i n g th e e f f e c t iv e d a te o f
t h i s O r d e r o r ( b ) la t e r t h a n t h r e e m o n t h s a f t e r t h e
e f f e c t iv e d a te o f th is O r d e r u n le s s s u c h p e r io d is
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 r d or b y th e




*A11 banking data are as of June 3 0 , 1974.
2The Kansas C ity banking market is approximated by the
Kansas City S M SA le ss Ray C ounty, and the southern half
of Cass C ounty, M issouri.

Law D epartm ent

s u b s id ia r y to B a n k is lo c a t e d a p p r o x im a te ly 2 4 0

U n it e d B a n k s o f C o l o r a d o , I n c .,

m i l e s e a s t o f B a n k in S t . L o u i s C o u n t y , M i s s o u r i .

D en v er , C olorado

T here

is n o

s ig n ific a n t e x is t in g

c o m p e titio n

be­

t w e e n a n y o f A p p lic a n t ’s b a n k in g o r n o n b a n k in g
s u b s i d i a r i e s a n d B a n k , a n d it a p p e a r s u n l i k e l y th a t
a n y s u c h c o m p e t i t i o n w o u l d d e v e l o p in t h e f u t u r e
d u e in p a r t t o M i s s o u r i ’ s b r a n c h i n g l a w . I n a s m u c h
a s th e s ix la r g e s t M is s o u r i b a n k h o ld in g c o m p a n ie s
e a c h o w n t w o o r m o r e b a n k s in t h e m a r k e t , a c q u i ­
s itio n o f B a n k b y A p p lic a n t m a y p r o m o te c o m p e ­
t i t i o n b y i n t r o d u c i n g a n e w b a n k i n g a l t e r n a t i v e in t o
th e m a r k e t a n d b y s tr e n g th e n in g B a n k ’s c o m p e t i­
t iv e p o s it io n th e r e in . A c c o r d in g ly , o n th e b a s is o f
t h e f a c t s o f r e c o r d , t h e B o a r d c o n c l u d e s th a t c o m ­
p e tit iv e c o n s id e r a t io n s are c o n s is t e n t w ith a p p r o v a l
o f th e a p p lic a tio n .
tu r e

p ro sp ects

of

A p p lic a n t

and

it s

s u b s id ia r y

s a tis fa c to r y a n d

c o n s i s t e n t w i t h a p p r o v a l o f t h e a p p l i c a t i o n . B a n k ’s
a f f ilia t io n

w ith

s tr e n g th e n in g

A p p lic a n t

of

s h o u ld

r e s u lt

B a n k ’s o v e r a l l f in a n c ia l

tio n , a s w e ll a s p r o v id in g
m a n a g e r ia l e x p e r t is e .

B a n k w ith

T h u s,

in

a

c o n d i­

a d d it io n a l

th e b a n k in g fa c to r s

le n d w e ig h t to w a r d a p p r o v a l o f th e a p p lic a tio n .

U n ite d B a n k s o f C o lo r a d o , 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 r o v a l u n d e r
A c t (1 2 U .S .C .

ie n c e a n d n e e d s , A p p lic a n t in te n d s to s u p p ly B a n k
w ith a c c e s s to A p p lic a n t ’s w id e r a n g e o f b a n k in g
e x p e r t i s e , p a r t ic u l a r ly in t h e a r e a o f d a t a p r o c e s s ­
i n g s e r v i c e s . In a d d i t i o n , B a n k ’ s c o n s t r u c t i o n a n d
c a ttle le n d in g a c t iv it ie s w o u ld b e e x p a n d e d . T h e s e
r e la tin g

to

th e

c o n v e n ie n c e

n e e d s o f th e c o m m u n ity to b e se r v e d

and

le n d a d d i ­

tio n a l w e ig h t to w a r d a p p r o v a l o f th e a p p lic a tio n .
It i s t h e B o a r d ’ s j u d g m e n t th a t t h e p r o p o s e d a c ­
q u i s i t i o n w o u l d b e in t h e p u b l i c in t e r e s t a n d th a t
th e a p p lic a tio n s h o u ld b e a p p r o v e d .

o r m o r e o f th e v o tin g s h a r e s o f R e p u b lic N a tio n a l
B ank

of

E n g le w o o d ,

E n g le w o o d ,

C o lo r a d o

( “ B a n k ” ).
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
fo r

in te r e s te d

p erso n s

to

s u b m it

co m m en ts

and

v i e w s , h a s b e e n g i v e n in a c c o r d a n c e w i t h § 3 ( b )
3 6 3 9 4 , O c to b e r

9 , 1 9 7 4 ). T h e tim e fo r filin g c o m m e n t s a n d v ie w s
h a s e x p ir e d ,

a n d th e

B oard

h a s c o n s id e r e d

th e

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d in l i g h t o f
t h e f a c t o r s s e t f o r t h in § 3 ( c ) o f t h e A c t ( 1 2 U . S . C .
1 8 4 2 (c )).
A p p lic a n t c o n tr o ls 1 6 b a n k s w ith a g g r e g a t e d e ­
p o s its o f a b o u t $ 9 1 8 . 6

m illio n ,

r e p r e s e n tin g a p ­

p r o x im a t e ly 1 3 .7 p e r c e n t o f th e to ta l c o m m e r c ia l

b a n k i n g o r g a n i z a t i o n in t h e S t a t e . 1 T h e a c q u i s i t i o n
o f B a n k (d e p o s its o f $ 1 3 .1 m illio n ) w o u ld in c r e a se
A p p lic a n t’s c o n tr o l o f c o m m e r c ia l b a n k d e p o s its
in C o l o r a d o

by

0 .2

o f o n e per cen t and

w o u ld

n o t a lte r A p p l i c a n t ’ s r a n k a m o n g C o l o r a d o b a n k ­
in g o r g a n i z a t i o n s .
B a n k , w h i c h i s l o c a t e d in a s u b u r b a n a r e a a b o u t
7 m i l e s f r o m d o w n t o w n D e n v e r , c o m p e t e s in t h e
D e n v e r b a n k in g m a r k e t (a p p r o x im a te d b y D e n v e r ,
A d a m s , A r a p a h o e a n d J e ffe r s o n C o u n t ie s a n d th e
B r o o m fie ld a r ea o f B o u ld e r C o u n ty ) a n d c o n tr o ls
a p p r o x i m a t e l y .3 o f. o n e p e r c e n t o f t o t a l m a r k e t

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 r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e
t r a n s a c t i o n s h a l l n o t b e m a d e ( a ) b e f o r e t h e t h ir ­
tie th c a le n d a r d a y f o ll o w i n g th e e f f e c t iv e d a te o f
t h i s O r d e r o r ( b ) la t e r t h a n t h r e e m o n t h s a f t e r t h e
e f f e c t iv e d a te o f th is O r d e r , u n le s s

§ 3 ( a ) ( 3 ) o f th e

1 8 4 2 ( a ) ( 3 ) ) to a c q u ir e 9 0 p e r c e n t

b a n k d e p o s i t s in C o l o r a d o a n d i s t h e s e c o n d l a r g e s t

In r e g a r d t o c o n s id e r a t io n s r e la tin g to c o n v e n ­

c o n s id e r a t io n s

O r d e r D e n y in g A c q u is itio n o f B a n k

o f th e A c t ( 3 9 F e d e r a l R e g is t e r

T h e fin a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u ­
b a n k s are r e g a r d e d a s g e n e r a lly

315

su ch

p e r io d

is 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 r d , or b y
th e F e d e r a l R e s e r v e B a n k o f S t. L o u is p u rsu a n t
t o d e l e g a t e d a u t h o r it y .

d e p o s its .

A p p lic a n t

is

a ls o

r ep re sen te d

D e n v e r m a r k e t a n d r a n k s th e r e in

a s th e

in

th e

secon d

la r g e s t b a n k in g o r g a n iz a tio n w ith s ix s u b s id ia r ie s
in t h e

m a r k e t c o n tr o llin g

a p p r o x im a te ly

17

per

c e n t o f th e to ta l m a r k e t d e p o s its . 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 h a v e s o m e a d ­
v e r s e e f f e c t s o n th e c o n c e n tr a tio n o f b a n k in g r e ­
s o u r c e s b y i n c r e a s i n g A p p l i c a n t ’ s p o s i t i o n in t h e
m a r k e t a n d b y in c r e a s in g th e p e r c e n ta g e o f d e p o s ­

B y o rd er o f th e B o a r d o f G o v e r n o r s , e ffe c tiv e
A p r il 1 , 1 9 7 5 .

it s h e l d

by

th e fiv e la r g e s t o r g a n iz a tio n s

in

th e

m a r k e t to a b o u t 6 9 . 3 p e r c e n t o f th e to ta l.
In a d d itio n to th e e f f e c t s o f th e p r o p o s a l o n th e

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r ­
n o r s M it c h e ll, B u c h e r , H o lla n d , a n d W a llic h . A b s e n t
a n d n o t v o tin g : G o v e r n o r s S h e e h a n a n d C o ld w e ll.

c o n c e n tr a tio n o f b a n k in g r e s o u r c e s , th e p r o p o s a l

(Signed) T h e o d o r e E. A l l i s o n ,

*A11 banking data are as of Tune 30, 1974, and reflect bank
holding com pany form ations and acquisitions approved by the
Board through January 3 1 , 1975.

[s e a l]




Secretary of the Board.

316

Federal R eserve B ulletin □ M ay 1975

w o u ld h a v e a d v e r s e e f f e c t s o n e x is t in g a n d fu tu r e

U n it e d B a n k s o f C o l o r a d o , In c .,

c o m p e tit io n w ith in th e D e n v e r m a r k e t. A s n o te d

D en v er , C olorado

above,

A p p lic a n t

is

a lr e a d y

r ep re sen te d

in

th e

r e le v a n t m a r k e t, a n d th e r e c o r d in d ic a te s th a t th e r e

O r d e r A p p r o v in g A c q u is itio n o f B a n k

is m e a n in g fu l c o m p e t it io n b e t w e e n A p p lic a n t a n d
B a n k w h ic h w o u ld b e e lim in a t e d b y th is p r o p o s a l,
a s e v id e n c e d b y th e fa c t th a t t w o o f A p p l ic a n t ’s
s u b s id ia r ie s d e r iv e

s ig n ific a n t

a m o u n ts

of

lo a n s

a n d d e p o s its fr o m th e a rea se r v e d b y B a n k . F u r­
th e r m o r e , th e p r o p o s a l w o u ld fo r e c lo s e th e d e v e l­
o p m e n t o f fu tu r e c o m p e tit io n b y r e m o v in g B a n k
a s a n in d e p e n d e n t c o m p e tit o r .
B o a r d is o f th e v ie w

A c c o r d in g ly ,

th a t c o n s u m m a t io n

th e

is tin g a n d fu tu r e c o m p e tit io n .
O n th e b a s is o f th e fo r e g o in g a n d o th e r fa c ts

to th is a p p lic a tio n

w e ig h

s u f f i c i e n t l y a g a i n s t a p p r o v a l s o th a t it s h o u l d n o t
b e a p p r o v e d u n le s s th e a n t ic o m p e titiv e e ff e c t s are
fle c te d

in

by
th e

o th e r
record

p o s itiv e
su ch

as

f o r t h e B o a r d ’s a p p r o v a l u n d e r
of

c o n s id e r a t io n s
th e

f i n a n c ia l

re­
and

p lic a n t a n d B a n k o r 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 .
f i n a n c ia l

and

m a n a g e r ia l

resou rces

and

are r e g a r d e d a s g e n e r a lly s a tis fa c to r y a n d c o n s is t ­
e n t w ith a p p r o v a l o f th e a p p lic a tio n , a lth o u g h s u c h
c o n s id e r a tio n s d o n o t p r o v id e w e ig h t fo r a p p ro v a l
o f t h e a p p l i c a t i o n . T h e s a m e c o n c l u s i o n p e r t a in s
n e e d s o f th e c o m m u n itie s to b e se r v e d . A c c o r d ­
B oard

f in d s

th a t n e it h e r

th e

c o n s id ­

e r a t io n s r e la tin g to th e b a n k in g fa c to r s n o r th o s e
r e la tin g to

c o n v e n ie n c e

and needs

o u t w e ig h

th e

a d v e r s e c o m p e t i t i v e e f f e c t s t h e B o a r d f in d s p r e s e n t
in A p p l i c a n t ’ s p r o p o s a l .
s e t f o r t h in § 3 ( c ) o f th e

A c t , it i s t h e B o a r d ’s j u d g m e n t t h a t a p p r o v a l o f
t h e p r o p o s a l w o u l d n o t b e in t h e p u b l i c in t e r e s t .
A c c o r d in g ly ,

th e

(le s s

d ir e c to r s ’ q u a lify in g

N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
fo r

in t e r e s t e d

p erso n s

to

s u b m it

c o m m en ts

and

o f th e A c t ( 3 9 F e d e r a l R e g is t e r 4 1 3 1 2 , N o v e m b e r
2 6 , 1 9 7 4 ). T h e tim e fo r filin g c o m m e n t s a n d v ie w s
h a s e x p ir e d ,

a n d th e

B oard

h a s c o n s id e r e d

th e

a p p l i c a t i o n a n d a ll c o m m e n t s r e c e i v e d , i n c l u d i n g
t h o s e o f F r o n t ie r B a n k o f D e n v e r , D e n v e r , C o l o ­
r a d o ( “ P r o t e s t a n t ” ) , in l i g h t o f t h e f a c t o r s s e t f o r t h
in § 3 ( c ) o f t h e A c t ( 1 2 U . S . C .

1 8 4 2 (c )).

A p p lic a n t c o n tr o ls 1 6 b a n k s ’w ith a g g r e g a te d e ­
p o s its o f a b o u t $ 9 1 8 .6

m illio n ,

r e p r e s e n tin g a p ­

bank

d e p o s its

in

C o lo r a d o ,

la r g e s t b a n k in g o r g a n iz a tio n

and

is

th e

secon d

in t h e S t a t e . 1 S i n c e

B a n k i s a p r o p o s e d n e w b a n k , it s a c q u i s i t i o n b y
A p p lic a n t w o u ld n o t im m e d ia t e ly in c r e a s e A p p li­
c a n t ’ s s h a r e o f c o m m e r c i a l b a n k d e p o s i t s in t h e
S ta te .
B a n k is a n e w b a n k w h ic h h a s r e c e iv e d p r e lim ­
in a r y c h a r t e r a p p r o v a l f r o m t h e C o m p t r o l l e r o f t h e
C u r r e n c y a n d i s t o b e l o c a t e d in s o u t h e a s t D e n v e r
w ith in th e D e n v e r m a r k e t, w h ic h is a p p r o x im a te d
by

D enver,

C o u n t ie s

A d am s,

and

th e

A rapahoe,

B r o o m fie ld

and

area

J e ffe r so n

of

B o u ld e r

C o u n t y . W i t h s i x s u b s i d i a r i e s in t h e D e n v e r m a r ­

O n t h e b a s i s o f a ll t h e f a c t s i n t h e r e c o r d , a n d
in l i g h t o f t h e f a c t o r s

sh ares

C o lo r a d o ( “ B a n k ” ) , a p r o p o s e d n e w b a n k .

to c o n s id e r a t io n s r e la tin g to th e c o n v e n ie n c e a n d
th e

v o tin g

p r o x im a t e ly 1 3 .7 p er c e n t o f th e to ta l c o m m e r c ia l

p r o s p e c t s o f A p p l i c a n t , it s s u b s i d i a r i e s , a n d B a n k

in g ly ,

th e

sh a r e s) o f U n ite d B a n k o f M o n a c o , N . A . , D e n v e r ,

m a n a g e r ia l r e s o u r c e s a n d fu tu r e p r o s p e c t s o f A p ­

The

§ 3 ( a ) ( 3 ) o f th e

A c t ( 1 2 U . S . C . 1 8 4 2 ( a ) ( 3 ) ) t o a c q u ir e 1 0 0 p e r c e n t

v i e 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 r e c o r d , th e B o a r d c o n c lu d e s th a t c o m p e t it iv e

o u t w e ig h e d

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

o f th e

p r o p o sa l w o u ld h a v e a d v e r se e ffe c ts o n b o th e x ­

c o n s id e r a t io n s r e la tin g

U n ite d B a n k s o f C o lo r a d o , 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

a p p lic a tio n

is

d e n ie d

fo r

th e

r e a s o n s s u m m a r iz e d a b o v e .
B y o rd er o f th e B o a r d o f G o v e r n o r s , e ffe c tiv e

k e t (th e r e le v a n t m a r k e t), A p p lic a n t c o n tr o ls d e ­
p o s it s o f $ 6 5 9 . 8 m il lio n , r e p r e s e n tin g a b o u t 1 7 p e r
c e n t o f th e m a r k e t d e p o s its , a n d ra n k s th e r e b y as
th e

secon d

la r g e s 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 . T h e fir s t a n d t h ir d la r g e s t b a n k i n g o r g a n i ­
z a tio n s in th e m a r k e t c o n t r o l, r e s p e c t iv e ly , a b o u t
2 2 a n d 1 4 p er c e n t o f th e m a r k e t d e p o s its . S in c e

A p r il 1 1 , 1 9 7 5 .

B a n k is a p r o p o s e d n e w b a n k , c o n s u m m a tio n o f

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r ­
n o r s M it c h e ll, S h e e h a n , H o lla n d , a n d C o ld w e ll. A b s e n t
a n d n o t v o tin g : G o v e r n o r s B u c h e r a n d W a llic h .

A p p lic a n t’s p r o p o s a l w o u ld n o t e lim in a te a n y e x -

(Signed) T h e o d o r e E. A l l i s o n ,
[s e a l]




Secretary of the Board.

*A11 banking data are as of June 30 , 1974, and reflect bank
holding com pany form ations and acquisitions approved through
January 31 , 1975.

L aw D epartm ent

317

i s t i n g c o m p e t i t i o n , n o r w o u l d it h a v e a n y i m m e d i ­

P r o te s ta n t, in d ic a te th e a r ea w o u ld su p p o r t a n o th e r

a te e f f e c t o n A p p l ic a n t ’s s h a r e o f c o m m e r c ia l b a n k

b a n k . W i t h r e s p e c t t o t h e f in a l c o n t e n t i o n th a t t h e

d e p o s its

p rop osal

in

th e m a r k e t.

W h ile

A p p lic a n t is

th e

w o u ld

a d v e r s e ly

a ffe c t

P r o te sta n t,

th e

s e c o n d l a r g e s t b a n k i n g o r g a n i z a t i o n in t h e m a r k e t ,

B o a r d r e c o g n i z e s th a t t h e in t r o d u c t i o n o f a n e w

it i s n o t e d t h a t it s m a r k e t s h a r e h a s b e e n d e c l i n i n g

b a n k in g a lte r n a tiv e m a y s lo w

r e c e n tly ,

t a n t ’ s g r o w t h ; h o w e v e r , t h e e v i d e n c e in t h e r e c o r d

and

it d o e s

n o t a p p e a r th a t

A p p lic a n t

o c c u p ie s a d o m in a n t p o s itio n w ith in th e m a r k e t.
I n it s

a n a ly s is o f th e s u b je c t a p p lic a tio n ,

th e

B o a r d h a s a ls o c o n s id e r e d th e c o m m e n t s s u b m itte d

th e r a te o f P r o t e s ­

i s n o t s u f f i c i e n t , in t h e B o a r d ’s j u d g m e n t , t o c o n ­
c lu d e

th a t

th e

p rop osal

w o u ld

a d v e r s e ly

a ffe c t

P r o te s ta n t a s a v ia b le b a n k in g o r g a n iz a tio n .

o n b e h a lf o f P r o te s ta n t, a b a n k lo c a t e d le s s th a n

A c c o r d in g ly , o n th e b a s is o f th e fa c ts o f r e c o r d

t w o m ile s fr o m th e p r o p o s e d s ite o f B a n k . G e n e r ­

a n d h a v in g c o n s id e r e d th e c o m m e n ts o f P r o te sta n t,

a lly

s p e a k i n g , P r o t e s t a n t c o n t e n d s th a t t h e p r o ­

p o s a l w o u ld h a v e a n t ic o m p e titiv e e ff e c t s . In s u p ­

th e B o a r d
p rop osed

c o n c lu d e s

th a t c o n s u m m a t i o n

a c q u is itio n

w o u ld

not have

of

th e

s ig n ific a n t

p o r t o f th is c o n t e n t io n , P r o te s ta n t a r g u e s th a t th e

a d v e r s e e f f e c t s o n e x is t in g o r p o te n tia l c o m p e t it io n

a r e a th a t w i l l b e s e r v e d b y B a n k i s “ in t h e s t a t e

a n d th a t c o m p e t it iv e c o n s id e r a t io n s a re c o n s is t e n t

o f e c o n o m ic

w ith a p p r o v a l o f th e a p p lic a tio n .

le th a r g y ”

and

i s n o t in

need

of

a

T h e f i n a n c ia l a n d m a n a g e r i a l r e s o u r c e s o f A p ­

n e w b a n k ; A p p l i c a n t i s a lr e a d y d o m i n a n t in t h is
area, and

th e

e sta b lis h m e n t

of a

new

bank

by

p l i c a n t a n d it s s u b s i d i a r i e s a r e r e g a r d e d a s g e n e r ­

A p p lic a n t at th is tim e w o u ld a d v e r s e ly a ffe c t P r o ­

a lly s a tis fa c to r y . B a n k , a p r o p o s e d n e w b a n k , h a s

t e s t a n t , a r e c e n t l y o p e n e d b a n k . 2 In t h e B o a r d ’ s

no

ju d g m e n t, th e is s u e s r a is e d b y P r o te s ta n t are n o t

p r o s p e c ts a s a s u b s id ia r y o f A p p lic a n t a p p ea r f a ­

f i n a n c ia l

or

o p e r a tin g

h is to r y ;

how ever,

s u ffic ie n t to w a r r a n t d e n ia l o f th e s u b je c t a p p lic a ­

v o r a b le . C o n s id e r a tio n s r e la tin g

tio n .

to r s , th e r e fo r e , are c o n s is t e n t w ith a p p r o v a l o f th e

O n th e b a s is o f th e fa c t s o f r e c o r d , th e B o a r d
d is a g r e e s w ith P r o te s ta n t’s a s s e s s m e n t o f th e a d ­

to b a n k in g

it s

a p p lic a tio n . In r eg a r d to c o n v e n ie n c e

fa c ­

and need s

c o n s id e r a t io n s , B a n k w o u ld s e r v e a s a n a d d itio n a l

v e r s e e ff e c t s o f th e p r o p o s a l. A s n o te d a b o v e , th e

s o u r c e o f fu ll b a n k in g s e r v ic e s to th e r e s id e n ts o f

r e le v a n t b a n k in g m a r k e t fo r a s s e s s in g th e c o m p e t ­

th e a r e a , in c lu d in g th e b u s in e s s e s a n d c u s to m e r s

itiv e e f f e c t s o f th e p r o p o s a l is th e D e n v e r m a r k e t.

o f th e n e a r b y s h o p p in g c e n te r w h o n o w m u s t tr a v e l

A p p l i c a n t ’s p o s i t i o n w i t h i n t h i s m a r k e t h a s b e e n

a p p r o x im a te ly t w o m ile s to th e n e a r e s t b a n k . A c ­

d e c l i n i n g in r e c e n t y e a r s a n d t h e in s t a n t p r o p o s a l

c o r d in g ly ,

r e p r e s e n t s , in t h e B o a r d ’s v i e w , a n e f f o r t t o s e r v e

v e n ie n c e a n d n e e d s le n d s o m e w e ig h t to w a r d a p ­

th e g r o w in g

p r o v a l o f t h e a p p l i c a t i o n . It i s t h e B o a r d ’s j u d g ­

b a n k in g n e e d s o f th e D e n v e r

area.

th ese

c o n s id e r a t io n s

r e la tin g

to

E v e n t h o u g h t h e r e a r e o v e r 7 0 b a n k s in t h e m a r k e t ,

m e n t th a t t h e p r o p o s e d a c q u i s i t i o n

it a p p e a r s th a t t h e r e is a n e e d f o r a d d i t i o n a l b a n k s

th e p u b lic in te r e s t a n d th a t th e a p p lic a tio n s h o u ld

to

be ap p roved .

serve

th e D e n v e r

p o p u la tio n

per

m a r k e t,

b a n k in g

o ffic e

as

in d ic a te d

r a t io

of

by

a

a p p r o x i­

w o u ld

con­

be

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

in

is

m a t e ly 1 8 ,0 0 0 a s c o m p a r e d to a b o u t 9 , 0 0 0 fo r th e

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e

S ta te . E v e n u s in g th e s e r v ic e a rea d e lin e a t e d b y

t r a n s a c t i o n s h a l l n o t b e m a d e ( a ) b e f o r e t h e t h ir ­

P r o t e s t a n t ( w h i c h i s o n l y a g u e s s t i m a t e th a t m a y

tie th c a le n d a r d a y f o ll o w i n g th e e f f e c t iv e d a te o f

p r o v e in a c c u r a t e in a c t u a l p r a c t i c e ) , t h e B o a r d i s

t h is O r d e r o r ( b ) la t e r t h a n t h r e e m o n t h s a f t e r t h a t

u n a b l e t o c o n c l u d e t h a t A p p l i c a n t i s d o m i n a n t in

d a te,

t h e a r e a o r th a t t h e

D e n v e r , C o lo r a d o , s h a ll b e o p e n e d fo r b u s in e s s

a d d itio n a l b a n k .
n o ted

In

a rea w o u ld
th is

th a t th e D e n v e r

la t t e r

not

su pport an

c o n n e c tio n ,

a r e a , in c lu d in g

it

is

so u th e a st

D e n v e r , h a s e x p e r i e n c e d s i g n i f i c a n t g r o w t h in t h e

and

(c )

U n it e d

B ank

of

M onaco,

N .A .,

n o t la t e r t h a n s i x m o n t h s a f t e r t h e e f f e c t i v e d a t e
o f t h is O r d e r . E a c h

o f th e p e r io d s d e s c r ib e d

p a s t a n d , w h ile th e o v e r a ll g r o w th o f th e a r ea h a s

th e B o a r d , or

s lo w e d r e c e n tly , th e p r o s p e c ts fo r fu tu r e g r o w th

K a n s a s C i t y p u r s u a n t t o d e l e g a t e d a u t h o r it y .

i n t h e m a r k e t , a s w e l l a s t h e a r e a in t h e v i c i n i t y
o f B a n k , are fa v o r a b le . F u rth e rm o re , th e g r o w th

in

(b ) a n d (c ) m a y b e e x te n d e d fo r g o o d c a u s e b y
by

th e

F ederal R eserv e

B ank

of

B y o rd er o f th e B o a r d o f G o v e r n o r s , e ffe c tiv e
A p r il 1 1 , 1 9 7 5 .

e x p e r i e n c e d b y t h e b a n k s i n t h e v i c i n i t y o f B a n k ’s
p r o p o s e d s it e , in c lu d in g th e s ig n ific a n t g r o w th o f

2On March 2 6 , 1975, the Board approved the application
o f Frontier Bancorporation o f D enver, In c., D enver, C olorado,
to b ecom e a bank holding com pany. Protestant is a subsidiary
of that bank holding com pany.




V o tin g fo r th is a c tio n : C h a ir m a n B u m s an d G o v e r ­
n o r s M it c h e ll, S h e e h a n , H o lla n d , a n d C o ld w e ll. A b s e n t
an d n o t v o tin g : G o v e r n o r s B u c h e r an d W a llic h .

(Signed) T h e o d o r e E. A l l i s o n ,
[s e a l]

Secretary of the Board.

318

Federal R eserve B ulletin □ M ay 1975

U n it e d M is s o u r i B a n c s h a r e s , In c .,

c o n tr o v e r s y e x is t s a s to m a n y o f th e r e le v a n t fa c ts

K a n s a s C i t y , M is s o u r i

c ite d b y th e A d m in is tr a tiv e L a w J u d g e , th e B o a r d
d o e s d is a g r e e

Order Denying Acquisition of Bank
U n it e d M is s o u r i B a n c s h a r e s , I n c ., K a n s a s C ity ,
M is s o u r i,

a

bank

h o ld in g

com pany

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 l i e d f o r t h e B o a r d ’s a p p r o 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 ir e 8 0

p er c e n t or m o r e o f th e v o tin g s h a r e s o f W e stp o r t
B a n k , K a n sa s C ity , M is s o u r i ( “ B a n k ” ).
N o t ic e o f r e c e ip t o f th e a p p lic a tio n , a ffo r d in g
o p p o r tu n ity fo r in t e r e s t e d p e r s o n s to s u b m it c o m ­
m en ts

and

v ie w s

w ith

resp ect

to

th e

p rop osed

tr a n s a c tio n , w a s p u b lis h e d in th e F e d e r a l R e g is t e r
( 3 9 F . R . 7 9 9 8 ) . A s r e q u ir e d b y § 3 ( b ) o f t h e A c t ,
th e B o a r d

gave

w r itte n n o t ic e

o f r e c e ip t o f th e

a p p lic a tio n to th e C o m m is s io n e r o f F in a n c e o f th e
S ta te o f

M is s o u r i

an d req u ested

h is

v ie w s

and

r e c o m m e n d a t io n s t h e r e o n . W ith in 3 0 d a y s o f th e
r e c e ip t o f th a t n o t i c e , th e C o m m is s io n e r s u b m itte d
in w r itin g a s ta te m e n t e x p r e s s in g d is a p p r o v a l o f
t h e a p p l i c a t i o n . A c c o r d i n g l y , a s r e q u ir e d b y § 3 ( b )
o f t h e A c t , t h e B o a r d d i r e c t e d th a t a p u b l i c h e a r i n g
b e h e ld

c o m m e n c in g

on

A p r il 3 ,

1974,

at th e

F e d e r a l R e s e r v e B a n k o f K a n s a s C ity b e fo r e th e
H o n o r a b le J o h n G . L ie b e r t, A d m in is tr a tiv e L a w
J u d g e . N o t i c e o f t h e h e a r i n g w a s p u b l i s h e d in t h e
F e d e r a l R e g i s t e r ( 3 9 F . R . 1 0 1 9 0 ) , a n d a ll p e r s o n s
d e s ir in g to g iv e

te s tim o n y , p r e se n t e v id e n c e , or

o t h e r w i s e p a r t i c i p a t e i n t h e h e a r i n g h e l d in K a n s a s
C ity ,

M is s o u r i,

on

A p r il 3 ,

1974,

and

J u ly

23

th r o u g h J u ly 2 5 , 1 9 7 4 , w e r e a ffo r d e d a n o p p o r tu ­
n ity to d o s o . T h e h e a r in g a n d r e la te d p r o c e e d in g s
have

been

c o n d u cted

in

accordan ce

w ith

th e

B o a r d ’s R u l e s o f P r a c t i c e f o r F o r m a l H e a r i n g s ( 1 2
C F R 2 6 3 ).1
In a R e c o m m e n d e d D e c is io n o f D e c e m b e r 3 0 ,
1974,

th e A d m in is tr a tiv e

L aw

Judge

c o n c lu d e d

th a t th e e v id e n c e s u p p o r te d a p p r o v a l o f th e a p p li­
c a tio n a n d f o u n d th a t th e fin a n c ia l a n d m a n a g e r ia l
r e s o u r c e s a n d fu tu r e p r o s p e c ts o f A p p lic a n t, A p ­
p lic a n t ’s p r e s e n t

a ff ilia te s ,

and

B ank

are

s a tis ­

fa c to r y a n d c o n s is t e n t w ith a p p r o v a l o f th e a p p li­
c a tio n .

A c c o r d in g ly ,

he

recom m en ded

th a t

th e

B o a r d o f G o v e r n o r s d e te r m in e th a t th e p r o p o s e d
a c q u is itio n s a tis fie s th e r e q u ir e m e n ts o f § 1 8 4 2 ( c )
o f th e A c t a n d th a t th e a p p lic a tio n b e a p p r o v e d .
W h ile

th e

B oard

r e c o g n iz e s

th a t l i t t l e

or

no

1 Board co u n sel’s participation in the hearing w as confined
to “ represent[ing] the Board in a nonadversary capacity for
the purpose of d evelopin g for the record inform ation relevant
to the issues to be determ ined by the presiding officer and
the B oard” (12 CFR 2 6 3 .6 (d )).




w ith

th e

c o n c lu s io n s ,

in f e r e n c e s ,

a n d le g a l c o n c lu s io n s to b e d r a w n fr o m th e s e fa c ts .
A c c o r d in g ly ,

th e

B oard

h a v in g

e n tir e r e c o r d o f th e h e a r in g ,

c o n s id e r e d

th e

i n c l u d i n g t h e tr a n ­

s c r ip t, e x h ib it s , r u lin g s , a ll b r ie f s , a n d m e m o r a n d a
file d in c o n n e c t io n w it h th e h e a r in g a n d th e R e c ­
o m m e n d e d D e c is io n , fin d in g s o f fa c t, a n d c o n c lu ­
s io n s

of

la w

file d

by

th e

A d m in is tr a tiv e

L aw

J u d g e , to g e th e r w ith th e e x c e p t io n s ta k e n th e r e to ,
a n d h a v in g d e te r m in e d th a t th e s u b je c t a p p lic a tio n
s h o u l d b e d e n i e d , a ll f i n d i n g s o f t h e A d m i n i s t r a t i v e
L a w J u d g e in c o n s is t e n t w it h th e B o a r d ’s fin d in g s
a n d d e te r m in a tio n h e r e in a re h e r e b y v a c a te d . T h e
B oard n o w

m a k e s th e f o ll o w i n g fin d in g s o f fa c t

a n d c o n c lu s io n s o f la w .
A p p lic a n t is
z a tio n

in

t h e f if t h

M is s o u r i

la r g e s t b a n k in g

w here

it

c o n tr o ls

o r g a n i­

17

banks

h o ld in g a g g r e g a te d e p o s its o f $ 7 2 0 .9 m illio n , r e p ­
r e s e n tin g 4 . 8 p e r c e n t o f th e to ta l c o m m e r c ia l b a n k
d e p o s i t s in t h e S t a t e . 2 A c q u i s i t i o n o f B a n k , w i t h
d e p o s its o f $ 3 6 .1

m il lio n , w o u ld in c r e a s e A p p li­

c a n t ’s s h a r e o f th e S t a t e ’s to ta l c o m m e r c ia l b a n k
d e p o s its to a p p r o x im a te ly 5 p e r c e n t a n d w o u ld
n o t a lt e r A p p l i c a n t ’s r a n k a m o n g M i s s o u r i b a n k i n g
o r g a n iz a tio n s .
B a n k , w h i c h i s l o c a t e d in a s u b u r b a n a r e a a b o u t
fo u r m ile s fr o m d o w n t o w n K a n s a s C it y , c o m p e te s
in t h e K a n s a s C i t y b a n k i n g m a r k e t ( a p p r o x i m a t e d
b y th e K a n s a s C ity S ta n d a r d M e t r o p o lita n S t a tis ti­
c a l A r e a l e s s R a y C o u n t y a n d t h e s o u t h e r n p o r t io n
o f C a s s C o u n t y ) a n d c o n t r o ls a p p r o x im a te ly .8 o f
1 p e r c e n t o f t o t a l m a r k e t d e p o s i t s . A p p l i c a n t is
a l s o r e p r e s e n t e d in t h e K a n s a s C i t y b a n k i n g m a r k e t
and

ranks

t h e r e in

as

th e

t h ir d

la r g e s t

b a n k in g

o r g a n i z a t i o n w i t h f i v e s u b s i d i a r i e s in t h e m a r k e t
c o n t r o llin g a p p r o x im a te ly 1 1 .9 p e r c e n t o f th e to ta l
m arket

d e p o s its .

p rop osed

U pon

tr a n s a c tio n ,

c o n s u m m a t io n

A p p l i c a n t ’s

share

of

th e

of

th e

m a r k e t’s to ta l d e p o s it s w o u ld in c r e a s e to 1 2 .7 per
c e n t.

T h e r e s u ltin g

o r g a n iz a tio n ’s sh a r e o f

IP C

d e m a n d d e p o s i t s in a c c o u n t s u n d e r $ 2 0 , 0 0 0 w o u l d
in c r e a s e fr o m 7 .8 p er c e n t to 9 .3 p er c e n t o f th e
m a r k e t to ta l (a s o f J u n e 3 0 ,
As
sen te d

n o ted
in

in d ic a te s

above,

th e
th a t

r e le v a n t
it s

1 9 7 2 ).

A p p lic a n t

le a d

is

m a r k e t,
bank

is

a lr e a d y
and

th e

lo c a te d

rep re­
record

a p p r o x i­

m a t e ly fo u r m ile s n o r th o f B a n k . F o u r o th e r s u b ­
s id ia r y

banks

of

A p p lic a n t,

a ll

lo c a te d

in

th e

2A ll banking data, unless otherw ise indicated, are as of
D ecem ber 31, 1973, and reflect acquisitions of existing banks
approved by the Board through July 15, 1974. A ll such data
is taken from the record certified by the Adm inistrative Law
Judge.

Law D epartm ent

K an sas

C ity

b a n k in g

o ffic e s

lo c a te d

m ile s ,

r e s p e c tiv e ly ,

m a r k e t,

fiv e ,

n in e ,

have

tw e lv e ,

fro m

B ank.

m a in

th e a r e a s o f a c c o u n ts r e c e iv a b le fin a n c in g , fr e ig h t

s ix te e n

p a y m e n t a r r a n g e m e n ts , e q u ip m e n t le a s in g , c o m ­

t h e ir
and

319

M oreover,

th e

p u t e r s e r v i c e s , a n d i n t e r n a t io n a l f i n a n c i n g . A p p l i ­

r e c o r d d i s c l o s e s th a t t h e s e r v i c e a r e a o v e r l a p o f

c a n t a ls o p r o p o s e s to o ffe r a “ B lu e B a n n e r A c ­

d e p o s i t s a n d l o a n s b y t h e A p p l i c a n t ’s f i v e b a n k i n g

c o u n t”

s u b s id ia r ie s a n d B a n k is s u b s ta n tia l. A p p lic a n t ’s

r e t a il b a n k i n g s e r v i c e s f o r a m o n t h l y f e e . W h i l e

s u b s id ia r ie s d e r iv e a p p r o x im a te ly $ 1 1 8 .3

c o n v e n ie n c e a n d n e e d s c o n s id e r a t io n s le n d s o m e

m illio n

program ,

w h ic h

in c lu d e s

package

w e ig h t fo r

The

$ 9 7 .5

n o t , in t h e B o a r d ’ s j u d g m e n t , o u t w e i g h t h e a n t i ­

m i l l i o n , i s a c c o u n t e d f o r b y A p p l i c a n t ’s le a d b a n k ;

c o m p e t it iv e e f f e c t s o f th e p r o p o s a l. A c c o r d in g ly ,

1 2 .3

th e

per

of

cen t

t h is

of

to ta l,

t h is

h ow ever,

to ta l

($ 1 2

a c c o u n ts le s s th a n $ 1 0 , 0 0 0 .
a r ie s d e r i v e

to ta l

m illio n fr o m
$ 8 6 .5
le a d

lo a n s

m illio n )

m illio n

a p p r o x im a te ly

are a c co u n te d

w o u ld

is

in

A p p l i c a n t ’s s u b s i d i ­

th e s e r v ic e a rea o f B a n k

b a n k .3 In th e

a c q u is itio n

of

or

fo r

B o a r d ’s

by

v ie w ,

e lim in a te

$ 9 6 .8

o f w h ic h

A p p l i c a n t ’s

th e

p rop osed

s u b s ta n tia l

e x is tin g

B oard

f in d s

th a t

a p p lic a tio n ,

n e it h e r

th e

th e y

of

o f to ta l IP C d e p o s it s fr o m th e s e r v ic e a r ea o f B a n k .
m a jo r ity

a p p r o v a l o f th e

a

do

c o n s id e r a t io n s

r e l a t in g t o t h e b a n k i n g f a c t o r s n o r t h o s e r e l a t i n g
to c o n v e n ie n c e

and

n e e d s o u t w e ig h

th e

a d v erse

c o m p e t i t i v e e f f e c t s t h e B o a r d f in d s p r e s e n t in A p ­
p l i c a n t ’s p r o p o s a l .
O n t h e b a s i s o f a ll t h e f a c t s in t h e r e c o r d a n d
in l i g h t o f t h e f a c t o r s

s e t f o r t h in § 3 ( c ) o f t h e

c o m p e t it io n b e t w e e n A p p l ic a n t ’s s u b s id ia r y b a n k s

A c t , it i s t h e B o a r d ’s j u d g m e n t th a t a p p r o v a l o f

and

th e p r o p o s a l w o u l d n o t b e in t h e p u b l i c i n t e r e s t .

in

th e

K an sas

F u rth erm o re,

B ank

th e

p rop osal

C ity

b a n k in g

w o u ld

m a r k e t.

fo r e c lo se

d e v e lo p m e n t o f fu tu r e c o m p e tit io n

by

th e

r e m o v in g

B a n k a s an in d e p e n d e n t c o m p e tit o r . A c c o r d in g ly ,
th e B o a r d

is o f t h e

v ie w

th a t c o n s u m m a t i o n

of

A c c o r d in g ly ,

th e

a p p lic a tio n

is

d e n ie d

fo r

th e

r e a s o n s s u m m a r iz e d a b o v e .
B y o r d e r o f th e B o a r d o f G o v e r n o r s , e f f e c t iv e
A p r il 2 8 ,

1975.

th e p r o p o sa l w o u ld h a v e a d v e r se e ffe c ts o n b o th
p r e se n t a n d fu tu r e c o m p e tit io n .
O n th e b a s is o f th e f o r e g o in g a n d o th e r fa c ts
o f r e c o r d , th e

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s an d G o v e r ­
n ors M itc h e ll, H o lla n d , an d C o ld w e ll. A b s e n t an d n o t
v o tin g : G o v e r n o r s S h e e h a n , B u c h e r , an d W a llic h .

B o a r d c o n c l u d e s th a t c o m p e t i t i v e

c o n s id e r a t io n s r e la tin g

to

t h is

a p p lic a tio n

w e ig h

(S ig n e d ) G r i f f i t h
[s e a l]

L. G arw ood ,

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 .

s u f f i c i e n t l y a g a i n s t a p p r o v a l s o th a t it s h o u l d n o t
b e a p p r o v e d u n le s s th e a n t ic o m p e titiv e e ffe c ts are
o u t w e ig h e d
fle c te d

by

o th er

in t h e

p o s itiv e

record,

su ch

c o n s id e r a tio n s

re­

a s t h e f in a n c ia l

and

F ir s t B a n c g r o u p - A l a b a m a , I n c .,
M o b il e , A l a b a m a

m a n a g e r ia l r e s o u r c e s a n d fu tu r e p r o s p e c ts o f A p ­
p lic a n t a n d B a n k o r 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 .
The

f i n a n c ia l

and

m a n a g e r ia l

resou rces

and

p r o s p e c t s o f A p p l i c a n t , it s s u b s i d i a r i e s , a n d B a n k
are reg a rd ed
B ank

a s g e n e r a lly

s a tis fa c to r y .

su ffe r e d a d e c lin e o f $ 1 .5

d e p o s it s d u r in g
to h a v e
1972.

been

In

th e

A lth o u g h

m illio n

in t o t a l

1 9 7 3 , it s d e p o s i t g r o w t h a p p e a r s

s a tis fa c to r y
B o a r d ’s

in t h e p e r i o d

ju d g m e n t,

1968

B a n k ’s

to

fu tu r e

O r d e r A p p r o v in g M e r g e r o f B a n k H o ld in g
C o m p a n ie s
F ir s t B a n c g r o u p - A l a b a m a ,

I n c .,

M o b ile ,

A la ­

b a m a ( “ F B 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 ,
has

a p p lie d

fo r

3 ( a ) ( 5 ) o f th e
m erge

w ith

th e

A ct

U n ite d

B ir m in g h a m ,

B o a r d ’s

(1 2

A la b a m a

A la b a m a

ap p roval

U .S .C .

§

under

§

1 8 4 2 (a ) (5 )) to

B a n csh a res,

( “ U n ite d ” ) ,

I n c .,

under

th e

p r o s p e c t s a p p e a r f a v o r a b l e . I t d o e s n o t a p p e a r th a t

c h a r te r o f A p p lic a n t a n d th e n a m e o f F ir s t-U n ite d

a

B a n c g r o u p -A la b a m a , I n c .

p o s s ib le

m an agem en t

s u c c e s s io n

p r o b le m

at

B a n k is c r itic a l; n o r d o e s th e r e c o r d c o n ta in a n y
e v id e n c e

to

sh ow

th a t B a n k

has

e x p lo r e d

any

N o t ic e o f r e c e ip t o f th e a p p lic a tio n , a ffo r d in g
a n o p p o r t u n it y

fo r

in te r e ste d

p e r so n s to

s u b m it

a lt e r n a t i v e s t o t h is a c q u i s i t i o n f o r p r o v i d i n g s u c ­

co m m en ts and v ie w s ,

c e s s o r m a n a g e m e n t. A c c o r d in g ly , m a n a g e r ia l a n d

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

f in a n c i a l
to w a r d
p rop oses

c o n s id e r a tio n s
approval
to

a s s is t

of

th e

B ank

le n d

o n ly

s lig h t

a p p lic a tio n .
by

u p g r a d in g

g iv e n

in

accor­

w e ig h t

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 r d

A p p lic a n t

h a s c o n s id e r e d th e a p p lic a tio n a n d a ll c o m m e n t s

it s

tr u s t

d e p a r t m e n t a n d b y o f f e r i n g a d d i t i o n a l e x p e r t i s e in

r e c e iv e d in lig h t o f th e fa c to r s s e t fo r th in § 3 ( c )
o f th e A c t (1 2 U .S .C .
FBA

3 A pproxim ately one-half of the loans are greater than $1
m illion.




has been

1 8 4 2 (c )).

c o n tr o ls th r e e b a n k s w ith

a g g reg a te d e ­

p o s its o f $ 3 5 1 m il l io n , r e p r e s e n tin g a p p r o x im a te ly
4 . 4 p e r c e n t o f th e to ta l d e p o s it s in c o m m e r c ia l

320

Federal R eserve Bulletin □ M ay 1975

b a n k s in A l a b a m a , a n d i s t h e s i x t h l a r g e s t m u l t i ­

s u b s id ia r y b a n k n e a r e s t to a s u b s id ia r y b a n k o f

b a n k h o l d i n g c o m p a n y in t h e S t a t e . 1 U n i t e d c o n ­

U n ite d

t r o ls t h r e e b a n k s 2 w i t h t o t a l d e p o s i t s o f $ 5 8 m i l ­

b e tw e e n H u n ts v ille a n d B e s s e m e r a n d n o s u b s id i­

lio n , r e p r e s e n tin g
d e p o s it s in th e

le s s

th a n

1 per cen t

of

to ta l

S t a te , a n d is A la b a m a ’s s e v e n t h

is

a p p r o x im a te ly

ary o f F B A

97

m ile s ,

th e

d is ta n c e

c o m p e t e s in a n y g e o g r a p h ic m a r k e t

in w h i c h a s u b s i d i a r y o f U n i t e d c o m p e t e s ( o t h e r

of

th a n in th e H u n t s v ille a r e a ). In a d d itio n , th e r e la ­

t h e p r o p o s e d m e r g e r w o u l d r e s u lt in F B A ’ s c o n t r o l

t iv e ly s m a ll s iz e s o f F B A a n d U n it e d a n d th e fa c t

o f a p p r o x im a te ly 5 p e r c e n t o f to ta l d e p o s it s

in

th a t U n i t e d

d o e s n o t h a v e a le a d b a n k ,

t h e S t a t e ’s c o m m e r c i a l b a n k s , a n d t h e r e s u l t i n g

th e a b s e n c e

o f a n y d e v e lo p m e n t o f c o m p e titio n

o r g a n i z a t i o n w o u l d b e c o m e t h e S t a t e ’s f if t h l a r g e s t

b e tw e e n

m u lti-b a n k h o ld in g c o m p a n y , a p p r o x im a te ly o n e -

tio n o f th e p r o p o s e d m e r g e r . W h ile F B A is c a p a b le

h a l f t h e s i z e o f t h e S t a t e ’s f o u r t h la r g e s t b a n k i n g

o f e n te r in g e a c h o f th e r e le v a n t m a r k e ts d e n o v o ,

o r g a n iz a tio n .

th e lo w p o p u la tio n p e r b a n k a n d p e r s o n a l in c o m e

m u lti-b a n k h o ld in g

com pan y.

C o n s u m m a tio n

F B A ’ s p r e s e n t s u b s i d i a r y b a n k s a r e l o c a t e d in
M o b i l e , H u n t s v i l l e , a n d F o l e y , A l a b a m a . U n i t e d ’s

per

th o se

bank

su g g est

o r g a n iz a tio n s , a b se n t c o n s u m m a ­

o ffic e

r a t io s

in

B arb ou r

and

H o u sto n

C o u n t i e s 4 a n d t h e n u m b e r o f la r g e r h o l d i n g c o m ­

p r e s e n t s u b s i d i a r y b a n k s a r e l o c a t e d in H u n t s v i l l e ,

p a n i e s p r e s e n t l y r e p r e s e n t e d in J e f f e r s o n C o u n t y

E u fa u la , D o th a n , a n d B e s s e m e r , A la b a m a . W h ile

m a k e s e a c h o f t h e s e m a r k e t s u n a t t r a c t iv e f o r s u c h

F B A a n d U n it e d e a c h o w n s a n d c o n tr o ls a b a n k

e n t r y in

i n H u n t s v i l l e , U n i t e d h a s c o m m i t t e d t o d i v e s t its

s h o u l d r e s u l t , h o w e v e r , in t h e d e v e l o p m e n t o f a

H u n ts v ille b a n k , th e r e b y

n e w S t a t e - w i d e h o l d i n g c o m p a n y w i t h t h e f in a n ­

c o m p e tit iv e

e ffe c ts

th a t

r e m o v in g
w o u ld

any

r e s u lt

a d v erse

fr o m

th e

e lim in a t io n o f c o m p e t it io n in th e H u n t s v ille a r e a .3
U n i t e d ’s s u b s i d i a r y b a n k i n E u f a u l a ( F ir s t N a t i o n a l

c ia l

th e

near

resou rces

fu tu r e .

to

c o m p e te

The

p rop osed

e ffe c tiv e ly

m erger

w ith

th e

S t a t e ’s la r g e s t b a n k h o ld in g c o m p a n ie s .
T h e B o a r d r e c o g n i z e s th a t c o n s u m m a t i o n o f t h e

B a n k o f E u f a u l a w i t h d e p o s i t s o f $ 1 4 m i l l i o n ) is

p rop osal

th e s e c o n d la r g e s t o f s e v e n

in

U n it e d w o u ld e x p a n d to b e c o m e a S t a te -w id e c o m ­

h o ld s

p e t it o r o f F B A . H o w e v e r , t a k i n g in t o a c c o u n t t h e

th a t

t i m e l a g a n d f in a n c ia l r e s o u r c e s n e c e s s a r y t o e s ­

th e

B arb our

abou t 21

C o u n ty

per

cen t o f

b a n k s c o m p e tin g

b a n k in g
th e

m arket

and

to ta l d e p o s its

in

w o u ld

fo r e c lo se

th e

p o s s ib ilit y

th a t

m a r k e t . U n i t e d ’ s s u b s i d i a r y b a n k in D o t h a n ( C i t y

ta b lis h

N a tio n a l B a n k

h o ld ” or d e n o v o e n tr y , th e B o a r d d o e s n o t v ie w

of

D o th a n

w ith

d e p o s its

of

$22

c o m p e tit iv e

e ffe c tiv e n e s s

th r o u g h

“ fo o t­

m i l l i o n ) i s t h e t h ir d l a r g e s t o f s e v e n b a n k i n g o r g a ­

t h e r e c o r d in t h i s c a s e a s r e f l e c t i n g a p r o b a b i l i t y

n iz a tio n s c o m p e t in g in th e H o u s to n C o u n t y b a n k ­

th a t, a b s e n t th is p r o p o s a l, U n it e d w o u ld o r c o u ld

in g m a r k e t a n d h o ld s a p p r o x im a te ly

e x p a n d to b e c o m e an e f f e c tiv e S ta te -w id e c o m p e t­

13 p er c en t

o f t h e t o t a l d e p o s i t s i n th a t m a r k e t . U n i t e d ’ s s u b ­

it o r o f F B A

s i d i a r y b a n k i n B e s s e m e r ( F ir s t W e s t e r n B a n k w i t h

c o m p a n i e s in t h e r e a s o n a b l y f o r e s e e a b l e f u t u r e . I n

a n d th e S t a te ’s o th e r b a n k

h o ld in g

d e p o s it s o f $ 2 2 m illio n ) is th e s ix th la r g e s t o f 12

p r io r O r d e r s i n v o l v i n g m e r g e r s o f b a n k

b a n k i n g o r g a n i z a t i o n s c o m p e t i n g in t h e J e f f e r s o n

c o m p a n i e s , t h e B o a r d h a s n o t e d t h a t a s u b s t a n t ia l

h o ld in g

C o u n t y b a n k in g m a r k e t a n d h o ld s a p p r o x im a te ly

a d v e r s e e ffe c t o n p o te n tia l c o m p e tit io n o c c u r s o n ly

1 p e r c e n t o f t h e t o t a l d e p o s i t s in t h a t m a r k e t .

w here

th e r e

is

a

p r o b a b ility

r a th e r

th a n

ju st

a

C o n s u m m a tio n o f th e p r o p o s e d m e r g e r w o u ld

p o s s i b ilit y th a t s u b s ta n tia l c o m p e t it io n w o u ld d e ­

n o t a p p ea r to h a v e an a d v e r se e ffe c t o n e x is tin g

v e lo p b e t w e e n th e b a n k in g o r g a n iz a tio n s in v o l v e d

c o m p e t i t i o n s i n c e t h e d i s t a n c e s e p a r a t in g F B A ’ s

a b s e n t th e p r o p o s e d a ff ilia tio n .5 T h e r e fo r e , o n th e
b a s is

b a n k in g data are as o f June 3 0 , 1974, and reflect holding
com pany form ations and acquisitions approved through N o ­
vember 30, 1974.
2U nited also controls The Bank o f H untsville, H untsville,
A labam a, w hich it has com m itted to divest by offering all the
stock o f the bank to U nited’s shareholders in exchange for
their shares o f U nited or by a distribution of shares of the
bank to U nited’s shareholders as a dividend, or by both means.
U nited shall take other measures necessary to ensure effective
termination of its control o f The Bank o f H untsville.
3It does not appear that severance of the relationship betw een
U nited and The Bank o f H untsville (deposits o f $ 4 0 m illion
as of D ecem ber 3 1 , 1974) w hich has exhibited continuous and
substantial growth since 1969 w ill w eaken the com petitive
vitality o f that bank; nor does it appear that The Bank of
H untsville w ould encounter serious problems in raising equity
capital as an independent bank.




of

th e

record ,

th e

B oard

c o n c lu d e s

th a t

c o n s u m m a t io 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 h a v e s ig n ific a n t a d v e r s e e ffe c ts o n e x is t in g or
p o t e n t i a l b a n k i n g c o m p e t i t i o n in a n y r e l e v a n t a r e a .
The

fin a n c ia l

c o n d it io n

and

m a n a g e r ia l

re­

s o u r c e s a n d f u t u r e p r o s p e c t s o f F B A , it s s u b s i d i a r y

4 The number of banks located in these counties has not
increased in the last five years.
5See B oard’s Order of February 16, 1973 approving merger
of First Florida Bancorporation and U nited Bancshares of
Florida, In c ., 59 Fed. R es. B u l l e t in , 183, at 184 (1973);
and B oard’s Order o f A ugust 1, 1973, approving the merger
of Atlantic Bancorporation and C itizens Bancshares of Florida,
In c., 59 Fed. R es. B u l l e t in 6 8 5 , at 6 8 6 (1973).

Law D epartm ent

321

b a n k s a n d U n i t e d a p p e a r s a t i s f a c t o r y . T h e f in a n ­

v o tin g s h a r e s o f C a r o lin a N a tio n a l M o r t g a g e I n ­

c ia l c o n d it io n a n d m a n a g e r ia l r e s o u r c e s a n d fu tu r e

v e s t m e n t C o m p a n y , I n c . ( “ C a r o lin a M o r t g a g e ” ) ,

p ro sp ects

of

U n i t e d ’s

s u b s id ia r y

banks

ap p ear

g e n e r a l l y s a t i s f a c t o r y in l i g h t o f t h e f a c t th a t F B A

a n d it s i n d i r e c t s u b s i d i a r y , C N

M o r t g a g e s , I n c .,

b o t h l o c a t e d in C h a r l e s t o n , S o u t h C a r o l i n a . 1
C a r o lin a M o r t g a g e w o u ld , u p o n a p p r o v a l, c o n ­

w i l l b e a b l e t o p r o v i d e f i n a n c ia l a n d m a n a g e r i a l
s tr e n g th to th o s e b a n k s . T h e s e c o n s id e r a t io n s are

tin u e

c o n s is t e n t w ith a p p r o v a l o f th e

a p p lic a tio n . T h e

m o r t g a g e b a n k i n g c o m p a n y a n d , t h r o u g h it s o w n ­

p r im a r y b a n k i n g n e e d s o f t h e a r e a s s e r v e d b y b o t h

e r s h ip o f C N M o r t g a g e s , I n c . , to e n g a g e in d ir e c tly

h o ld in g c o m p a n ie s

in

a p p e a r to b e a d e q u a te ly

at th e p r e se n t tim e . H o w e v e r ,

m et

to

th e

engage

a c tiv itie s

d ir e c tly

of

a

in

th e

secon d

a c tiv it ie s

m o r tg a g e

of

a

le n d e r .

c o n s u m m a t io n o f

C a r o lin a M o r t g a g e w o u ld a ls o c o n t in u e to a c t a s

t h e p r o p o s a l w o u l d p r o v i d e c u s t o m e r s o f U n i t e d ’s

a g e n t in t h e s a l e o f c r e d i t l i f e , a c c i d e n t a n d h e a l t h

b a n k s i m m e d i a t e a c c e s s t o tr u s t d e p a r t m e n t s e r v ­

i n s u r a n c e t o it s b o r r o w i n g c u s t o m e r s . S u c h a c t i v i ­

ic e s

tie s h a v e

and

in v e s tm e n t

a d v ic e .

In

a d d itio n ,

FBA

been

d e te r m in e d

by

th e

B oard

to

be

in t e n d s t o p r o v i d e it s n e w s u b s i d i a r i e s w i t h a r e a d y

c lo s e ly r e la te d to b a n k in g ( 1 2 C F R § 2 2 5 . 4 ( a ) ( 1 ) ,

s o u r c e f o r l o a n p a r t i c i p a t i o n s , a s w e l l a s m a r k e t in g

(3 ) and (9 )).

s e r v ic e s

and

c o m p u te r

fa c ilitie s .

C o n s id e r a tio n s

N o t ic e o f th e a p p lic a t io n , a ffo r d in g o p p o r tu n ity

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 ­

fo r

m u n itie s to b e

v i e w s o n t h e p u b l i c in t e r e s t f a c t o r s h a s b e e n d u l y

a p p r o v a l.

It

s e r v e d le n d

is

th e

s o m e w e ig h t to w a r d

B o a r d ’s

ju d g m e n t

th a t

th e

in te r e ste d

p u b lis h e d ( 4 0

p erso n s

to

s u b m it

co m m en ts

F e d e r a l R e g is t e r 7 0 0 7 ) . T h e

and
tim e

p r o p o s e d t r a n s a c t i o n i s in t h e p u b l i c i n t e r e s t a n d

fo r filin g c o m m e n t s a n d v ie w s h a s e x p ir e d , a n d

s h o u ld b e a p p r o v e d .

t h e B o a r d h a s c o n s i d e r e d a ll c o m m e n t s r e c e i v e d
is

in t h e l i g h t o f t h e p u b l i c in t e r e s t f a c t o r s s e t f o r t h

a p p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e

in § 4 ( c ) ( 8 ) o f t h 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

t r a n s a c t i o n s h a l l n o t b e m a d e ( a ) b e f o r e t h e t h ir ­

A p p lic a n t c o n tr o ls o n e b a n k in g s u b s id ia r y , C it ­

t ie t h c a l e n d a r d a y f o l l o w i n g t h e e f f e c t i v e d a t e o f

iz e n s a n d S o u th e r n N a tio n a l B a n k o f S o u th C a r o ­

t h i s O r d e r o r ( b ) la te r t h a n t h r e e m o n t h s a f t e r t h e

lin a

e ffe c tiv e d a te

m a t e ly $ 4 6 1

o f th is O r d e r ,

u n le s s

su ch

p e r io d

(“ C& S

B a n k ” ),

w ith

d e p o s its

m il lio n , r e p r e s e n tin g

of

a p p r o x i­

1 2 .3

per cen t

is e x t e n d e d f o r g o o d c a u s e b y t h e B o a r d , o r b y

of

th e F e d e r a l R e s e r v e B a n k o f A tla n ta p u r su a n t to

C a r o lin a , a n d is th e s e c o n d la r g e s t b a n k in g o r g a ­

d e l e g a t e d a u t h o r it y .

n i z a t i o n a n d b a n k h o l d i n g c o m p a n y in t h e S t a t e . 2

B y o rd er o f th e B o a r d o f G o v e r n o r s , e ffe c tiv e
A p r il

16,

1975.

th e

d e p o s its

in

c o m m e r c ia l

banks

in

S o u th

In a d d i t i o n t o C a r o l i n a M o r t g a g e , A p p l i c a n t h a s
fiv e n o n b a n k in g s u b s id ia r ie s r e s p e c t iv e ly e n g a g e d
in d a t a p r o c e s s i n g , h o l d i n g b a n k p r e m i s e s , c o m ­

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r ­
n ors M it c h e ll, H o lla n d , an d C o ld w e ll. A b s e n t a n d n o t
v o tin g : G o v e r n o r s S h e e h a n , B u c h e r , a n d W a llic h .

m u n ity r e h a b ilit a tio n , m o b ile h o m e fin a n c in g , a n d
p r o v id in g b a n k m a n a g e m e n t a d v is o r y s e r v ic e s .

(S ig n e d ) T h e o d o r e E . A l l i s o n ,

C & S B a n k i s e n g a g e d in m a k i n g m o r t g a g e l o a n s

S e c r e t a r y o f th e B o a r d .

f o r it s o w n a c c o u n t . It a p p e a r s , h o w e v e r , th a t m o s t

[s e a l]

o f it s l o a n s a t t h e t if t ie it a c q u ir e d C a r o l i n a M o r t ­
g a g e w e r e c o n s tr u c tio n lo a n s a n d lo a n s o n n o n ­

ORDERS UNDER SECTION 4(c)(8)
OF BANK HOLDING COMPANY ACT

r e s id e n t ia l p r o p e r ty .
th o u g h , C & S

A t th e tim e

w as engaged

o f a c q u is itio n ,

in m a k i n g

som e

1 -4

fa m ily r e s id e n tia l m o r tg a g e lo a n s .
T h e C it iz e n s

a n d

Southern

C h arlesto n, So uth

C o r p o r a t io n ,

C a r o l in a

Order Approving Retention of Carolina
National Mortgage Investment Company
and CN Mortgages, Inc.
The

C itiz e n s

and

S o u th e r n

C o r p o r a tio n ,

C h a r le s to n , S o u th C a r o lin a , a b a n k h o ld in g c o m ­
pany

w ith in

C om pany

th e

A c t,

m e a n in g
has

a p p lie d

of

th e

B ank

H o ld in g

f o r t h e B o a r d ’s

ap­

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 t h e B o a r d ’ s R e g u l a t i o n Y , t o r e t a in a l l o f t h e




A l t h o u g h it a l s o

o r ig in a te d c o n s tr u c tio n

lo a n s

a n d m o r tg a g e s o n n o n r e s id e n tia l p r o p e r ty , C a r o *On D ecem ber 15, 1970, Applicant acquired Carolina
M ortgage and m erged it into C itizens M ortgage Corporation,
a w holly-ow ned subsidiary of Applicant. At the same tim e,
Applicant indirectly acquired shares o f C N Enterprises, In c.,
Charleston, South Carolina, a 49 per cent ow ned subsidiary
of CN M ortgages, Inc. C N Enterprises, Inc. engages in real
estate developm ent. Applicant is not seekin g approval to retain
CN Enterprises, Inc. w hich is subject to the prohibitions in
§ 4(a)(2) o f the A ct. It is the intention of Applicant to divest
the assets of CN Enterprises, Inc. by D ecem ber 31, 1980.
2 U nless otherw ise indicated, all banking data are as of June
3 0, 1974, and reflect bank holding com pany form ations and
acquisitions approved through February 2 8 , 1975.

322

li n a

Federal R eserve B ulletin □ M ay 1975

M o r tg a g e ’s

lo a n

o r ig in a tio n s

d u r in g

1970

in d ic a te s th a t p u b lic

b e n e fits

have

c o n tin u e d

to

o f m o r tg a g e s

o u t w e ig h th e s lig h t a d v e r s e e ffe c t o n c o m p e titio n .

o n 1 -4 f a m ily r e s id e n c e s . T h e m a jo r g e o g r a p h ic

T h r o u g h A p p l i c a n t ’s s u p p o r t , C a r o l i n a M o r t g a g e

m a r k e ts a ffe c te d

h a s i n c r e a s e d it s s e r v i c i n g v o l u m e t o n e a r l y $ 1 9 7

w e r e to

a great d eg ree

c o m p r is e d

b y th e

a c q u is itio n are a p p r o x i­

m a te d b y th e C h a r le s to n , C o lu m b ia , a n d G r e e n ­

m i l l i o n , a n d it i s n o w

v ille S ta n d a r d M e tr o p o lita n S ta tis tic a l A r e a s a n d

c o m p a n y in th e c o u n tr y . D u r in g th e p o s t - a c q u is i­

th e 1 5 1 s t la r g e s t m o r tg a g e

S p a r t a n b u r g C o u n t y , a ll in S o u t h C a r o l i n a . A t t h e

tio n

tim e o f th e a c q u is itio n a n d th e r e a fte r , th e e c o n o m y

i n c r e a s e d it s o r i g i n a t i o n s b y n e a r l y 2 4 7 p e r c e n t .

o f th e se

In

areas w a s

e x p a n d in g

w ith a n

r is e in h o u s in g d e m a n d a n d g r o w th .

a tte n d a n t

D u r in g th e

p e r io d 1 9 7 0 to 1 9 7 3 , th e s e a r e a s w e r e a m o n g th e

p e r io d
a d d itio n ,

(1 9 7 0

to

1 9 7 3 ),

C a r o lin a

C a r o lin a

M o rtg a g e

n o v o , th e r e b y s tim u la tin g

has

M o rtg a g e
e n te r e d

c o m p e tit io n , tw o

de

new

g e o g r a p h ic m a r k e ts: A tla n ta , G e o r g ia , a n d K n o x ­

f a s t e s t g r o w in g in th e c o u n tr y . C a r o lin a M o r t g a g e

v i l l e , T e n n e s s e e . T h e B o a r d b e l i e v e s th a t t h e a f ­

a c c o u n te d fo r a p p r o x im a te ly 5 . 7 , 2 . 3 , a n d 3 . 6 p er

filia tio n is s u ffic ie n t ly l ik e ly to c o n tin u e to p r o d u c e

c e n t o f 1 -4 f a m ily r e s id e n tia l m o r tg a g e lo a n o r ig i­

p u b lic b e n e fits in th e f o r e s e e a b le fu tu r e

n a tio n s

o n b a la n c e , d iv e s titu r e w o u ld b e c o n tr a r y to th e

d u r in g

1970

in

th e

fir s t

th r e e

m a r k e ts

r e s p e c t i v e l y . 3 C & S B a n k ’s m a r k e t s h a r e s in t h o s e
m a r k e ts w e r e a p p r o x im a te ly 2 . 5 , 0 . 5 , a n d 0 . 3 p e r
c e n t, r e s p e c tiv e ly ,
1971,

at th e tim e .

C a r o lin a M o r t g a g e

m o r tg a g e c o m p a n y
s e r v ic in g v o lu m e

in

A s of

w a s th e

th e

June

1 7 4 th

co u n try ,

o f $ 1 1 9 m illio n .

30,

s o th a t,

p u b lic in te r e st.
C a r o lin a M o r t g a g e a ls o
su ra n ce

on

th e

lo a n s

s e ll s c r e d it-r e la te d in ­

it o r i g i n a t e s .

D ue

to

th e

la r g e s t

l i m i t e d n a t u r e a n d s c o p e o f it s i n s u r a n c e a c t i v i t i e s ,

on

it d o e s n o t a p p e a r th a t t h e a c q u i s i t i o n o f C a r o l i n a

b a sed

a

Its m o r tg a g e

M o r t g a g e ’s i n s u r a n c e a c t i v i t i e s h a d a n y s i g n i f i c a n t

$ 7 6 m illio n

e f f e c t o n e ith e r e x is t in g o r p o te n tia l c o m p e t it io n .

s i n c e it c e a s e d o p e r a t i n g a s a n i n d e p e n d e n t m o r t ­

T h e a c tiv itie s o f C N M o r t g a g e s , I n c . (to ta l a s s e ts

gage com pany.

o f $ 4 . 8 m i l l i o n ) a r e l i k e w i s e ,s o l i m i t e d in s c o p e

s e r v ic in g p o r tf o lio h a s in c r e a s e d b y

I t i s e s t i m a t e d th a t t h e r e w e r e 1 8 , 2 3 , a n d 2 6
r e s id e n t ia l m o r tg a g e

c o m p e tito r s r e s p e c t iv e ly

in

th e C h a r le s t o n , C o lu m b ia , a n d G r e e n v ille m a r k e ts
in

1970.

C o n s id e r in g

m o r tg a g e

b a n k in g

th e n u m b e r o f

c o m p e tit o r s

a lr e a d y

r e s id e n tia l
in

th o se

t h a t it s a c q u i s i t i o n

d id

not have

any

T h e r e i s n o e v i d e n c e in t h e r e c o r d t o i n d i c a t e
th a t t h e

p rop osed

r e te n tio n s

w o u ld

le a d

to

an

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 , c o n flic t s o f in ­

m a r k e ts a n d th e r e s p e c tiv e m a r k e t sh a r es o f C & S

te r e sts, u n so u n d

B a n k a n d C a r o l i n a M o r t g a g e , A p p l i c a n t ’s a c q u i ­

v e r s e e f f e c t s u p o n t h e p u b l i c in t e r e s t .

s itio n o f C a r o lin a M o r t g a g e h a d o n ly s lig h t l y a d ­

s ig n ific a n t

c o m p e tit iv e e ffe c ts .

B a sed

upon

b a n k in g p r a c tic e s , o r o th e r a d ­
th e

r e fle c te d

fo r e g o in g
in

th e

and

record,

o th er
th e

c o n s id ­

v e r s e e f f e c t s o n c o m p e t it io n in th e o r ig in a t io n o f

e r a tio n s

B oard

1 -4 f a m ily r e s id e n tia l m o r tg a g e lo a n s .4 T h e s lig h t

d e t e r m i n e d , in a c c o r d a n c e w i t h t h e p r o v i s i o n s o f

has

is

§ 4 ( c ) ( 8 ) , th a t c o n s u m m a t i o n o f t h i s p r o p o s a l c a n

app ear

r e a s o n a b l y b e e x p e c t e d t o r e s u l t in b e n e f i t s t o t h e

to h a v e r e s u lte d f r o m

A p p l i c a n t ’s a c q u i s i t i o n o f

p u b l i c th a t o u t w e i g h p o s s i b l e a d v e r s e e f f e c t s . A c ­

C a r o lin a

A ffilia tio n

p r o v id e d

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

C a r o lin a

d e te r m in a t io n is s u b je c t to th e c o n d it io n s s e t fo r th

M o r t g a g e a n d t h e r e b y i n c r e a s e d t h e a m o u n t o f it s

in § 2 2 5 . 4 ( c ) o f R e g u l a t i o n Y a n d t o t h e B o a r d ’ s

a v a ila b le fu n d s

a u t h o r it y t o r e q u ir e s u c h m o d i f i c a t i o n o r t e r m i n a ­

a d v erse

c o m p e tit iv e

o u t w e ig h e d b y

g rea ter

e ffe c t

th e p u b lic

M o rtg a g e.
a ccess

to

c a p ita l

to m e e t

m a n d s fo r h o u s in g
r e s p e c tiv e

m o r tg a g e

of

th e

a c q u is itio n

b e n e fits w h ic h
has

m a r k e ts
th e

fo r

g r o w in g

c r e d it d e ­
it s

tio n o f th e a c tiv it ie s o f a h o ld in g c o m p a n y or a n y

con­

o f it s s u b s i d i a r i e s a s t h e B o a r d f in d s n e c e s s a r y t o

a n d o th e r c o n s tr u c tio n in
m a r k e ts.

The

B oard

c lu d e s th a t th e p o t e n tia l p u b lic b e n e fits o u t w e ig h

a ssu r e c o m p lia n c e

th e a d v e r s e e f f e c t r e s u lt in g fr o m th e a ffilia tio n at

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

th e tim e o f th e a c q u is itio n .
T h e B o a r d ’ s r e v i e w o f t h e r e c o r d o f a f f ilia t io n

w ith

th e p r o v is io n s

and pur­

o rd ers is s u e d th e r e u n d e r , a n d to p r e v e n t e v a s io n
th e r e o f.
B y o rd er o f th e B o a r d o f G o v e r n o r s , e f f e c t iv e
A p r il 2 ,

3M arket shares are based upon A pplicant’s estim ates of total
1-4 fam ily m ortgage originations. N o such estim ate is available
for Spartanburg C ounty.
4 It appears that the acquisition also elim inated com petition
betw een C&S Bank and C arolina M ortgage in the origination
of construction loans and the origination of m ortgages upon
nonresidential property. G eographic markets for these services
are regional in scope and the amount o f com petition elim inated
is not deem ed significant.




1975.

V o tin g fo r th is a c tio n : V ic e C h a ir m a n M itc h e ll a n d
G o v e r n o r s B u c h e r , H o lla n d , an d W a llic h . A b s e n t an d
n o t v o tin g : C h a ir m a n B u r n s a n d G o v e r n o r s S h e e h a n an d
C o ld w e ll.

(Signed) T h e o d o r e E. A l l i s o n ,
[s e a l]

Secretary of the Board.

L aw D epartm ent

323

F id e l c o r , I n c .,

am ount

R o s e m o n t , P e n n s y l v a n ia

p r io r t o t h e d a t e s t h a t p a y m e n t s a r e d u e f r o m

of

a c c o u n ts

r e c e iv a b le

fr o m

it s

c lie n ts
it s

c lie n t s ’ c u s to m e r s . T h is a d v a n c e f a c to r in g is d o n e
O r d e r A p p r o v in g A c q u is itio n o f

o n a n o tific a tio n

K e e n F a c to rs , In c.
F id e lc o r , I n c ., R o s e m o n t, P e n n s y lv a n ia , 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 ( “ A c t ” ) , h a s a p p lie d fo r
t h e B o a r d ’s a p p r o v a l , u n d e r s e c t i o n 4 ( c ) ( 8 ) o f t h e
A c t a n d s e c t io n 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 e s t a b lis h a d e n o v o in d ir e c t1 s u b s id ia r y
n a m e d T r e f o il C a p ita l C o r p o r a tio n o f C a lifo r n ia ,
I n c . , a n d t h r o u g h s a i d s u b s i d i a r y t o a c q u ir e s u b ­
s t a n t i a l l y a ll o f t h e a s s e t s o f K e e n F a c t o r s , I n c . ,
B e v e r ly H ills , C a lifo r n ia

( “ K e e n ” ), a co m p a n y

t h a t e n g a g e s in t h e m a k i n g a n d a c q u i r i n g , f o r it s
o w n a c c o u n t o r fo r th e a c c o u n t o f o th e r s , lo a n s
a n d o th e r e x t e n s io n s o f c r e d it s u c h a s w o u ld b e
m a d e b y a c o m m e r ic a l fin a n c e o r fa c to r in g c o m ­
p a n y , a n d th e s e r v ic in g o f s u c h lo a n s a n d o th e r
e x t e n s io n s o f c r e d it fo r o th e r s . S u c h a c tiv it ie s h a v e
b e e n d e te r m in e d b y th e B o a r d to b e c lo s e ly r e la te d
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
in te r e s te d

p erso n s

to

s u b m it

c o m m en ts

and

v i e w s o n t h e p u b l i c in t e r e s t f a c t o r s , h a s b e e n d u l y
p u b lis h e d ( 3 9 F e d e r a l R e g is te r 3 3 4 0 8 ) . T h e tim e
fo r filin g c o m m e n t s a n d v ie w s h a s e x p ir e d , a n d
t h e B o a r d h a s c o n s i d e r e d a ll c o m m e n t s r e c e i v e d
in t h e l i g h t o f t h e p u b l i c in t e r e s t f a c t o r s s e t f o r t h
in

s e c tio n

4 (c )(8 )

of

th e

A ct

(1 2

U .S .C .

§

A p p lic a n t,

th e

s ix th

in P e n n s y l v a n i a ,

la r g e s t

b a n k in g

c o n tr o ls o n e

o r g a n i­

bank

(T h e

F id e lity B a n k , R o s e m o n t , P e n n s y lv a n ia ) w ith to ta l
d o m e s tic

d e p o s its

a p p r o x im a te ly

3 .9

of

$ 1 .5

b illio n ,

r e p r e s e n tin g

p e r c e n t o f th e to ta l d e p o s its

h e l d b y c o m m e r c i a l b a n k s in t h e S t a t e . 2 A p p l i c a n t
a ls o

has

engaged

w h o lly -o w n e d
in

th e

n o n b a n k in g

s u b s id ia r ie s

a c tiv it ie s o f r ea l e s ta te le n d in g ,

a d v is in g a r e a l e s t a te in v e s tm e n t tr u st, c o n s u m e r
le n d in g , a n d c o m m e r ic a l fin a n c in g , a m o n g o th e r s .
K een

le n d s

fu n d s o n

a secu red

b a s is u s u a lly

r e c e iv in g s e c u r ity in th e fo r m o f a c c o u n ts r e c e iv ­
a b le , in v e n t o r y , m a c h in e r y , e q u ip m e n t a n d r ea l
e s t a te .3

In

are

in ­

r e c e i v a b l e a n d t h a t t h e y a r e t o m a k e t h e ir p a y m e n t s
d i r e c t l y t o K e e n . K e e n o p e r a t e s it s s o l e o f f i c e in
B e v e r ly H ills , C a lifo r n ia , a n d , a s o f F e b r u a r y 2 8 ,
1 9 7 4 , h e ld to ta l g r o s s r e c e iv a b le s o f a p p r o x im a te ly
$ 1 .3 m illio n , in c lu d in g fa c to r e d a c c o u n ts . A p p li­
c a n t ’s

s u b s id ia r y ,

( “ T r e fo il” ),

a d d itio n ,

K een

p u rch ases

a

w ith

T r e fo il
o ffic e s

C a p ita l
lo c a te d

C o r p o r a tio n
in

b o th

N ew

Y o r k , N e w Y o r k a n d P h ila d e lp h ia , P e n n s y lv a n ia ,
e n g a g e s o n l y in c o m m e r c i a l f i n a n c e l e n d i n g . S u b ­
s e q u e n t t o it s a c q u i s i t i o n o f T r e f o i l in

1973, A p­

p lic a n t tr a n s fe r r e d th e c o m m e r c ia l fin a n c e le n d in g
a c t i v i t i e s o f it s s u b s i d i a r y b a n k t o T r e f o i l . T r e f o i l ’ s
g r o ss r e c e iv a b le s , a s o f J u n e 3 0 , 1 9 7 4 , a m o u n te d
to

a p p r o x im a te ly

$22

m illio n .

D ue

to

th e

geo­

g r a p h ic a l d is t a n c e s b e t w e e n o ff ic e s o f T r e f o il a n d
th a t o f K e e n ( a p p r o x im a t e ly 3 , 0 0 0 m i l e s ) , a n d th e
fa c t th a t n e ith e r T r e f o il n o r K e e n

o r ig in a te

any

a p p e a r th a t c o m p e t it io n

s m a ll4

e x is ts

b e tw e e n

th e

tw o

f ir m s . F u r t h e r , in v i e w o f t h e r e l a t i v e l y s m a l l s i z e
o f K e e n , a n d o f it s e s t i m a t e d m a r k e t s h a r e s ( l e s s
t h a n o n e p e r c e n t ) , it w o u l d
a f f ilia t io n

w ith

n o t a p p e a r t h a t it s

A p p lic a n t w o u ld

fo r e c lo se

e n tr y

in t o a n y c o m m e r c i a l f i n a n c i n g m a r k e t b y o t h e r s . 5
N e ith e r T r e fo il n o r K e e n

a p p ea r s to b e a lik e ly

d e n o v o e n t r a n t i n t o a n y m a r k e t in w h i c h t h e o t h e r
c o m p e te s.

1 8 4 3 (c )(8 )).
z a tio n

d eb to rs

l o a n s in t h e s e r v i c e a r e a s o f t h e o t h e r , it d o e s n o t

to b a n k in g ( 1 2 C F R § 2 2 5 .4 ( a ) ( 1 ) a n d ( 3 ) ) .
fo r

b a s is , w h e r e b y

f o r m e d b y K e e n t h a t it h a s p u r c h a s e d t h e a c c o u n t s

T h u s,

th e B o a r d

c o n c l u d e s th a t c o n ­

s u m m a t io 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 h a v e
n o s ig n ific a n tly a d v e r s e e f f e c t s o n e ith e r a c tu a l or
p o te n tia l c o m p e t it io n .
A p p lic a n t’s a c q u is itio n o f K e e n w o u ld e n h a n c e
K e e n ’s a c c e s s to fin a n c ia l r e s o u r c e s n e c e s s a r y to
expand

it s

c o m m e r c ia l

fin a n c in g

and

fa c to r in g

o p e r a tio n s . T h o s e o p e r a tio n s h a v e n o t e x p a n d e d
s ig n ific a n tly

s in c e

1971.

C o n s u m m a tio n

s h o u ld

p r o d u c e fu r th e r p u b lic b e n e fits to th e e x t e n t th a t
th e a v a ila b ility o f a d d itio n a l c o m m e r c ia l fin a n c in g
a n d fa c to r in g

fa c ilitie s

m ay

be

ex p e cted

to

in ­

c r e a s e , at le a s t m o d e r a te ly , th e v o lu m e o f K e e n ’s
b u s in e s s a n d to d e c r e a s e in te r e s t r a te s in th e r e l e ­
vant m arket

area.

T here

is n o

e v id e n c e

in

th e

r e c o r d i n d i c a t i n g th a t a c q u i s i t i o n o f K e e n b y A p ­
t r e f o i l Capital Corporation o f California, In c., w ould be
w holly-ow ned by A pplicant’s subsidiary, T refoil Capital Cor­
poration, N ew Y ork, N ew York.
2 A ll banking data are as o f June 3 0 , 1974, and reflect bank
holding com pany form ations and acquistions approved through
O ctober 3 1 , 1974.
3 Real estate never serves as the sole collateral for a loan
by K een, but, on o cca sio n , serves as collateral in addition
to other collateral.
4A s o f February 2 8 , 1974, K een ’s purchased receivables
amounted to $ 1 8 9 ,8 7 6 .




p lic a n t w o u ld

r e s u lt in

a n y 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 , u n f a ir c o m p e t i t i o n , c o n f l i c t s o f in -

5 The relevant market in w hich K een com petes is the Los
A ngeles R egional A rea, covering elev en counties in the south­
ern third of California and M ohave County in northwestern
A rizona and Clark and L incoln counties in southeastern N e ­
vada. T refoil com petes in regional markets centered upon N ew
York City and Philadelphia.

324

Federal R eserve B ulletin □ M ay 1975

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 r s e
e f f e c t s u p o n t h e p u b l i c in t e r e s t .
B a sed

upon

th e

fo r e g o in g

N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
fo r

and

o th er

c o n s id ­

in t e r e s t e d

p erso n s

to

s u b m it

c o m m en ts

and

v ie w s o n th e p u b lic in te r e st f a c to r s , h a s b e e n d u ly

has

p u b lis h e d ( 4 0 F e d e r a l R e g is t e r 8 3 9 ) . T h e tim e fo r

d e t e r m i n e d in a c c o r d a n c e w i t h t h e p r o v i s i o n s o f

filin g c o m m e n t s a n d v ie w s h a s e x p ir e d , a n d th e

e r a tio n s

r e fle c te d

in

th e

record,

th e

B oard

s e c tio n 4 ( c ) ( 8 ) o f th e A c t th a t c o n s u m m a t io n o f

B o a r d h a s c o n s i d e r e d t h e a p p l i c a t i o n a n d a ll c o m ­

th is p r o p o s a l c a n r e a s o n a b ly b e e x p e c t e d to p r o ­

m e n t s r e c e i v e d in t h e l i g h t o f t h e p u b l i c i n t e r e s t

d u c e b e n e fit s to th e p u b lic th a t o u t w e ig h p o s s i b le

f a c t o r s s e t f o r t h in s e c t i o n 4 ( c ) ( 8 ) o f t h e A c t ( 1 2

a d v erse e ffe c ts.

U .S .C .

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 t io n is s u b je c t to
th e

c o n d itio n s

R e g u la tio n
r e q u ir e

Y

su ch

a c tiv itie s

of

set

fo r th

and

to

in

th e

m o d ific a tio n
a

h o ld in g

§

1 8 4 3 (c )(8 )).

The

In su ra n ce

C o m m is ­

s io n e r fo r th e S ta te o f A r k a n s a s s c h e d u le d a h e a r ­

s e c tio n

2 2 5 .4 (c )

of

in g fo r th e p u r p o s e o f r e v ie w in g A p p lic a n t ’s p r o ­

B o a r d ’s

a u t h o r it y

to

p o s a l t o d e t e r m i n e w h e t h e r it w o u l d v i o l a t e r e l e ­

o r te r m in a tio n

com pan y

or

any

of

th e

of

it s

v a n t A r k a n sa s sta tu te s. O n M a rc h 2 6 ,

1 9 7 5 , th e

In su r a n c e C o m m is s io n e r is s u e d an O rd er a p p r o v ­

s u b s i d i a r i e s a s t h e B o a r d f in d s n e c e s s a r y t o a s s u r e

i n g A p p l i c a n t ’s p r o p o s e d r e i n s u r a n c e a g r e e m e n t .

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 p o se s o f

A c c o r d in g ly , th e A r k a n s a s sta tu te s d o n o t p r e se n t

t h e A c t a n d t h e B o a r d ’s r e g u l a t i o n s

a n y im p e d im e n t to

and orders

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 r e o f.
T h e tr a n s a c tio n

s h a ll

be

m ade

n o t la t e r

th a n

t h r e e m o n t h s a f t e r t h e e f f e c t i v e d a t e o f t h is O r d e r ,

th e B o a r d ’s a p p r o v a l o f th e

a p p lic a tio n .
A p p lic a n t , th e la r g e s t b a n k in g o r g a n iz a tio n
A rk a n sa s,

c o n tr o ls

th r e e

s u b s id ia r y

banks

in

w ith

u n le s s s u c h p e r io d is e x t e n d e d fo r g o o d c a u s e b y

a g g r e g a te d e p o s its o f a p p r o x im a te ly $ 3 9 4 m illio n ,

th e

of

r e p r e s e n tin g a p p r o x im a t e ly 7 . 8 p e r c e n t o f th e to ta l

d e le g a te d

c o m m e r c i a l b a n k d e p o s i t s in t h e S t a t e . 2 A p p l i c a n t

B oard

or

P h ila d e lp h ia ,

by

th e

F ederal

p u rsu an t

to

R eserv e

a u t h o r it y

B ank

a l s o e n g a g e s , t h r o u g h n o n b a n k 5s u b s i d i a r i e s , in r e a l

hereb y.
B y o rd er o f th e B o a r d o f G o v e r n o r s , e ffe c tiv e

a n d p e r s o n a l p r o p e r ty le a s in g , c o n s u m e r fin a n c e ,
m o r tg a g e

A p r il 1, 1 9 7 5 .

b a n k in g ,

d a ta

p r o c e s s in g ,

and

tr a v e l

a g e n c y a c t i v i t i e s , a n d f i n a n c ia l i n s t i t u t i o n a d v i s o r y
V o tin g fo r th is a c tio n : V ic e C h a ir m a n M itc h e ll an d
G o v e r n o r s B u c h e r , H o lla n d , W a llic h , an d C o ld w e ll.
A b s e n t a n d n o t v o tin g : C h a ir m a n B u r n s an d G o v e r n o r
S h eeh an .
(S ig n e d ) T h e o d o r e E . A l l i s o n ,
[s e a l]

S e c r e t a r y o f th e B o a r d .

s e r v ic e s .
C o n s u m e r s w i l l e n g a g e d e n o v o in t h e a c t i v i t y
o f u n d e r w r itin g , a s r e in s u r e r , c r e d it lif e a n d c r e d it
a c c id e n t a n d h e a lth
e x te n s io n s

of

in s u r a n c e d ir e c tly r e la te d

c r e d it

by

A p p l i c a n t ’s

to

s u b s id ia r y

b a n k s , a n d b y A p p l i c a n t ’ s in d u s t r ia l lo a n s u b s i d i ­
a r y , N a t i o n a l C r e d it C o r p o r a t i o n , P i n e B l u f f , A r ­

F ir s t A r k a n s a s B a n k s t o c k C o r p o r a t i o n ,

k a n s a s . 3 C o n s u m e r s w i l l b e q u a l i f i e d t o u n d e r w r it e

L it t l e R o c k , A r k a n s a s

in s u r a n c e d ir e c tly
. O r d e r A p p r o v in g A c q u is itio n o f C o n su m e rs
P r o te c tiv e L ife I n su ra n c e C o m p a n y
F ir s t

A rk an sas

B a n k sto c k

C o r p o r a tio n ,

L ittle

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 s e c t io n
§ 1 8 4 3 (c )(8 )) and

§ 2 2 5 .4 ( b ) ( 2 ) o f th e B o a r d ’s R e g u la tio n

Y

(1 2

C F R § 2 2 5 . 4 ( b ) ( 2 ) ) , t o a c q u ir e a ll o f t h e v o t i n g
sh ares

of

C om pany

C on su m ers

P r o te c tiv e

( “ C om p an y” ),

L ife

P h o e n ix ,

In su ra n ce
A r iz o n a ,

a

c o m p a n y th a t w o u l d e n g a g e d e n o v o in t h e a c t i v i t y
o f u n d e r w r itin g , a s r e in s u r e r , c r e d it li f e a n d c r e d it
a c c id e n t a n d h e a lth

in s u r a n c e d ir e c tly r e la te d

to

e x t e n s io n s o f c r e d it 1 b y A p p lic a n t ’s c r e d it-g r a n t­
in g s u b s id ia r ie s . S u c h a c tiv it y h a s b e e n d e te r m in e d
b y th e B o a r d to b e c lo s e ly r e la te d to b a n k in g ( 1 2
C F R § 2 2 5 .4 (a )(1 0 ) ).




in

A r iz o n a ,

and

accord ­

a r ie s in A r k a n s a s w i l l b e d i r e c t l y u n d e r w r it t e n b y

R o c k , A r k a n s a s , a b a n k h o ld in g c o m p a n y w ith in

4 ( c ) ( 8 ) o f th e A c t ( 1 2 U .S .C .

o n ly

in g l y , th e in s u r a n c e s o ld b y A p p l ic a n t ’s s u b s id i­
a n u n a f f ili a t e d i n s u r a n c e c o m p a n y q u a l i f i e d t o d o
b u s in e s s

in

A rk an sas

and

w ill th e r e a fte r

be

as­

1 T hese extensions of credit include loans secured by second
mortgages on real estate. Such loans w ould be essentially
equivalent to consum er finance loans, and in this instance range
from six m onths to seven years in maturity and from $500
to $ 6 ,0 0 0 in amount. A ge is not a factor in the rate charged
for credit life insurance related to such loans. Such loans are
not considered “ long term ” or “ high valu e” w ithin the m ean­
ing of footnote 1 in the B oard’s Order of M ay 2 1 , 1973
approving the application of N orthw est Bancorporation to
acquire B anco Credit L ife Insurance C om pany, 38 Fed. R eg.
14205 (1973).
2Banking data are as of June 30 , 1974.
3 Officers and directors of Applicant control indirectly the
First National Bank in M ena, M ena, Arkansas. The instant
application does not include the First National Bank in M ena,
and, accordingly, Consum ers w ould not reinsure credit life and
credit accident and health insurance sold in connection with
extensions of credit by First N ational Bank in M ena.

L aw D epartm ent

325

s ig n e d o r c e d e d to C o n s u m e r s u n d e r a r e in su r a n c e

th e B o a r d , or b y th e F e d e r a l R e s e r v e B a n k o f S t.

a g r e e m e n t . S in c e th is p r o p o s a l in v o l v e s a d e n o v o

L o u i s , p u r s u a n t t o a u t h o r it y h e r e b y d e l e g a t e d .

a c q u is itio n ,

c o n s u m m a tio n

w o u ld n o t h a v e

any

of

th e

tr a n s a c tio n

a d v e r se e ffe c ts o n e x is tin g

B y ord er o f th e B o a r d o f G o v e r n o r s, e ffe c tiv e
A p r il 2 8 ,

1975.

o r p o t e n tia l c o m p e t it io n in a n y r e le v a n t m a r k e t.
C r e d it l i f e a n d c r e d i t a c c i d e n t a n d h e a l t h i n s u r ­
a n c e is

g e n e r a lly

m ade

a v a ila b le b y b a n k s

and

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s an d G o v e r ­
n o r s M it c h e ll, B u c h e r , H o lla n d , W a llic h , an d C o ld w e ll.
A b s e n t an d n o t v o tin g : G o v e r n o r S h e e h a n .

o th e r le n d e r s a n d is d e s ig n e d to a s s u r e r e p a y m e n t
o f a lo a n

in th e e v e n t o f d e a th o r d is a b ility

(S ig n e d ) G r i f f i t h

of

th e b o r r o w e r . In c o n n e c t io n w it h th e a d d itio n o f

[s e a l]

L. G arw ood ,

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 .

th e u n d e r w r itin g o f s u c h in s u r a n c e to th e lis t o f
p e r m is s ib le a c tiv itie s fo r b a n k h o ld in g c o m p a n ie s ,
th e B o a r d h a s sta te d :
T o assure that engaging in the underwriting o f credit life and
credit accident and health insurance can reasonably be expected
to be in the public interest, the Board w ill only approve
applications in w hich the applicant demonstrates that approval
w ill benefit the consum er or result in other public benefits.
N orm ally, such a show ing w ould be m ade by a projected
reduction in rates or increase in policy benefits due to bank
holding com pany performance of this service.
A p p l i c a n t h a s s t a t e d th a t it w i l l p r o v i d e r e d u c i n g

F ir s t S e c u r it y C o r p o r a t io n ,
S a l t L a k e C it y , U t a h
O r d e r C o n d itio n a lly A p p r o v in g A c q u is itio n o f
S e c u r itie s -I n te r m o u n ta in , In c .
F ir st

S e c u r ity

C o r p o r a tio n ,

S a lt

L ake

C ity ,

U ta h , 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

t e r m c r e d i t l i f e in s u r a n c e a t r a t e s w h i c h a r e 6 . 6 7

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

p e r c e n t b e lo w th o s e p r e s e n tly b e in g c h a r g e d b y

f o r t h e B o a r d ’s a p p r o v a l , u n d e r s e c t i o n 4 ( c ) ( 8 ) o f

A p p lic a n t’s

sta te s

t h e A c t a n d § 2 2 5 . 4 ( b ) ( 2 ) o f t h e B o a r d ’s R e g u l a ­

t h a t it w i l l r e d u c e t h e r a t e s w h i c h it s s u b s i d i a r i e s

t i o n Y , t o a c q u ir e a ll o f t h e c o m m o n 1 s h a r e s o f

p r e s e n tly

S e c u r itie s -I n te r m o u n ta in , I n c .,

s u b s id ia r ie s .4

charge

in s u r a n c e b y

fo r

5 per

A p p lic a n t

c r e d it
c en t.

a c c id e n t

The

a ls o
and

B oard

h e a lth

v ie w s

th e

P o r tla n d ,

O regon

( “ S i m c o ” ) , 2 a m o r t g a g e c o m p a n y th a t e n g a g e s in

p r o p o s e d r e d u c tio n s in th e p r e m iu m s c h a r g e d fo r

t h e m a k i n g a n d a c q u i r i n g , f o r it s o w n a c c o u n t a n d

s u c h in s u r a n c e a s a c o n s id e r a t io n fa v o r a b le to th e

fo r th e a c c o u n t o f o th e r s , lo a n s a n d o th e r e x t e n ­

B o a rd c o n c lu d e s , th e r e fo r e ,

s io n s o f c r e d it a n d th e s e r v ic in g o f s u c h lo a n s fo r

th a t A p p l ic a n t ’s p r o p o s a l is p r o c o m p e tit iv e a n d in

it s e lf a n d fo r o th e r s ; a c tin g a s a n in s u r a n c e a g e n t,

p u b lic in te r e s t. T h e

th ro u g h a w h o lly - o w n e d s u b s id ia r y , w ith r e s p e c t

th e p u b lic in te r e s t.
B a sed
e r a tio n s

upon

th e

r e fle c te d

fo r e g o in g
in

th e

and

record,

o th er
th e

c o n s id ­

B oard

has

d e t e r m i n e d th a t t h e b a l a n c e o f t h e p u b l i c in t e r e s t

to in s u r a n c e d ir e c tly r e la te d to s a id e x t e n s io n s o f
c r e d i t a n d in s u r a n c e o t h e r w i s e

s o ld

a s a m a tte r

o f c o n v e n ie n c e to b o r r o w e r s , a n d p a r tic ip a tin g a s

c o n s id e r u n d e r

a n in v e s tm e n t a d v is e r to a r e a l e s t a te in v e s tm e n t

s e c t io n 4 ( c ) ( 8 ) is fa v o r a b le . A c c o r d in g ly , th e a p ­

t r u s t t h r o u g h 4a 2 0 p e r c e n t o w n e r s h i p i n t e r e s t in

fa c to r s th e B o a r d

i s r e q u ir e d t o

p lic a t io 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

B a n c o rp M a n a g e m e n t A d v is o r s , In c . S u c h a c tiv i­

is

tie s h a v e

su b je c t to th e c o n d itio n s

s e t fo r th

in

s e c tio n

been

d e te r m in e d

by

th e

2 2 5 . 4 ( c ) o f R e g u l a t i o n Y a n d t o t h e B o a r d ’s a u ­

c l o s e l y r e la te d to b a n k in g ( 1 2 C F R

t h o r it y t o r e q u ir e s u c h m o d i f i c a t i o n o r t e r m i n a t i o n

(3 ), (5 ), an d (9 )(ii)).

o f th e a c tiv itie s o f a h o ld in g c o m p a n y or a n y o f
it s

s u b s id ia r ie s

as

a ssu r e c o m p lia n c e

th e B o a r d

th e p r o v is io n s

to

to

be

2 2 5 .4 (a )(1 ) ,

N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
fo r in t e r e s te d

p erso n s

to

s u b m it

c o m m en ts

and

and pu r­

v ie w s o n th e p u b lic in te r e s t fa c t o r s , h a s b e e n d u ly

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

p u b lis h e d ( 3 9 F e d e r a l R e g is t e r 3 7 5 4 4 ) . T h e tim e

o r d e rs is s u e d

w ith

f in d s n e c e s s a r y

B oard

th e r e u n d e r ,

or to p r e v en t e v a s io n

th e r e o f.
T h e tr a n s a c tio n

fo r filin g c o m m e n t s a n d v i e w s h a s e x p ir e d , a n d
t h e B o a r d h a s c o n s i d e r e d t h e a p p l i c a t i o n a n d a ll

th a n

c o m m e n t s r e c e i v e d i n t h e l i g h t o f p u b l i c in t e r e s t

t h r e e m o n t h s a f t e r t h e e f f e c t i v e d a t e o f t h is O r d e r ,

fa c to r s s e t fo r th in s e c t io n 4 ( c ) ( 8 ) o f th e A c t ( 1 2

u n le s s s u c h p e r io d is e x te n d e d fo r g o o d c a u s e b y

U .S .C .

4 Applicant had applied to reinsure lev el term credit life
insurance on single paym ent loans. H ow ever, the M arch 2 6 ,
1975 Order of the Insurance C om m issioner of the State of
Arkansas found that the policies to be reinsured shall consist
solely o f reducing term p olicies.

*lt is proposed that all outstanding preferred shares of
Securities-Interm ountain, Inc. w ould be retired prior to con ­
summation of the proposed acquisition.
2A n application by U .S . Bancorp to acquire Sim co was
denied by the Board on January 31 , 1972 (37 Fed. R eg. 2858).




s h a ll b e m a d e

n o t la t e r

1 8 4 3 (c )(8 )).

326

Federal R eserve Bulletin □ M ay 1975

A p p lic a n t c o n tr o ls e ig h t s u b s id ia r y b a n k s 3 w ith

in s u r a n c e d ir e c tly r e la te d to e x t e n s io n s o f c r e d it

a g g r e g a t e d e p o s it s o f $ 1 . 4 b il lio n .4 It is th e la r g e s t

b y S im c o

to c u sto m e r s o f S im c o an d to

b a n k h o ld in g c o m p a n y in U ta h , h o ld in g 2 9 . 4 p e r

its e lf. T o

so m e e x te n t, A g e n c y

cen t

of

th a t

T hrough

S t a te ’s

c e r ta in

c o m m e r c ia l

o f it s

d e p o s its .

g a g e d in a c t i v i t i e s i m p e r m i s s i b l e f o r b a n k h o l d i n g

s u b s id ia r ie s ,

c o m p a n ie s in s o fa r a s A g e n c y d e r iv e s 3 9 p e r c e n t

bank

n o n b a n k in g

S im c o

i s c u r r e n t ly e n ­

A p p lic a n t a ls o e n g a g e s in m o r tg a g e b a n k in g a n d

o f it s a g g r e g a t e i n s u r a n c e p r e m i u m

a c tin g a s a g e n t fo r c r e d it lif e a n d c r e d it d is a b ility

th e s a le o f

in s u r a n c e d ir e c tly r e la te d to e x t e n s io n s o f c r e d it

s t a t e s th a t A g e n c y h a s t e r m i n a t e d s o l i c i t a t i o n o f

b y s u b s id ia r ie s o f th e h o ld in g c o m p a n y .

s u c h “ c o n v e n i e n c e ” i n s u r a n c e , t h a t p r io r t o c o n ­

S im c o , w ith a m o r tg a g e s e r v ic in g p o r tfo lio o f
a p p r o x im a te ly

$199

m illio n

(a s

of

M arch

30,

“ c o n v e n ie n c e ”

in c o m e fr o m

in s u r a n c e .

A p p lic a n t

s u m m a t io n o f th e p r o p o s e d tr a n s a c tio n , th e s a le
o f su ch

“ c o n v e n ie n c e ”

n a ted

a c tiv it ie s in c lu d in g th e o r ig in a t io n , s a le a n d s e r v ­

w ith o u t

i c i n g o f a ll t y p e s o f m o r t g a g e l o a n s . I t s m a i n o f f i c e

T h e re a fter ,

is lo c a te d

it o p e r a t e s

g a g e in t h e s a l e o f i n s u r a n c e i n a c c o r d a n c e w i t h

t h r e e o f f i c e s in t h e S t a t e o f W a s h i n g t o n a n d t w o

R e g u l a t i o n Y a n d t h e B o a r d ’s in t e r p r e t a t i o n r e l a t ­

o f f i c e s in t h e S t a t e o f C a l i f o r n i a . It a p p e a r s th a t

in g th e r e to .

in

P o r tla n d ,

O regon,

and

c o n s u m m a t io n o f th e a c q u is itio n w o u ld n o t e lim i­
n a te

a

s ig n ific a n t a m o u n t o f a c tu a l c o m p e t it io n

and

e x is tin g

in s u r a n c e w ill b e te r m i­

1 9 7 4 ) , e n g a g e s in a f u ll r a n g e o f m o r tg a g e b a n k in g

ren ew al

p o lic ie s
upon

w ill

t h e ir

be

t e r m in a t e d

e x p ir a tio n

A p p lic a n t in d ir e c tly

w o u ld

d a te.

o n ly

en­

A d d i t i o n a l l y , S i m c o i s e n g a g e d in l a n d d e v e l ­
opm en t

a c tiv itie s

th r o u g h

th r e e

M o rtg a g e

w h o lly -o w n e d

b e tw e e n A p p lic a n t a n d S im c o s in c e th e y are n o t

s u b s id ia r ie s : C o r le y

C o m p a n y , I n la n d

s ig n ific a n t d ir e c t c o m p e tit o r s o f o n e a n o th e r in a n y

H o m e s , I n c ., a n d R iv e r V ie w

m o r tg a g e b a n k in g m a r k e t. A p p lic a n t ’s m o r tg a g e

d e v e lo p m e n t a c tiv it ie s are n o t p e r m is s ib le fo r b a n k

H o m e s, In c. L and

a n d b a n k i n g s u b s i d i a r i e s o p e r a t e p r i m a r i l y in t h e

h o ld in g c o m p a n ie s

S ta te s o f U ta h , I d a h o , C o lo r a d o , a n d N e w

c a n t s t a t e s t h a t it w o u l d d i s p o s e o f t h e i m p e r m i s ­

M ex­

u n d er R e g u la tio n

Y .5 A p p li­

ic o , w h ile S im c o o p e r a te s in th e S ta te s o f W a s h ­

s ib le

in g to n ,

s u b s id ia r ie s w ith in s ix m o n th s o f th e d a te o f c o n ­

O regon,

and

C a lifo r n ia .

A p p r o x im a te ly

la n d

d e v e lo p m e n t

h o ld in g s 6 o f

th e

th ree

$ 1 0 m i l l i o n , o r 2 . 8 p e r c e n t , o f A p p l i c a n t ’s $ 3 6 5

s u m m a t i o n o f t h e p r o p o s a l , i f t h e in s t a n t a p p l i c a ­

m illio n

tio n is a p p r o v e d b y th e B o a r d . T h e B o a r d ’s a c tio n

s e r v ic in g

p r o p e r t ie s

lo c a te d

p o r tfo lio
in

are

m o r tg a g e s

on

O regon,

and

W a s h in g to n ,

C a l i f o r n i a a n d $ 1 m i l l i o n , o r l e s s t h a n .5 p e r c e n t ,
of

S im c o ’s

rep resen t

s e r v ic in g

p o r tfo lio

m o r tg a g e s

ser v e d b y m o r tg a g e

on

of

$199

m illio n

in

m a r k e ts

p r o p e r t ie s

a n d b a n k in g s u b s id ia r ie s o f

A p p lic a n t.

F u rth erm o re,

S im c o d o

n o t app ear so

b y A p p lic a n t th r o u g h

th e

m a r k e ts

serv ed

by

c o n c e n tr a te d th a t e n tr y

d e n o v o e x p a n s io n

w o u ld

h e r e in is c o n d it io n e d u p o n s u c h d is p o s itio n .
S im c o
P o r tla n d ,

a ls o

p a r tic ip a te s

O regon

w ith

( “ B a n co rp ” ),

U .S .

B ancorp ,

a b a n k h o ld in g

c o m p a n y , th r o u g h S i m c o ’s 2 0 p e r c e n t o w n e r s h ip
in te r e s t in B a n c o r p

M a n a g e m e n t A d v is o r s , In c .

( “ B M A ” ) , P o r t l a n d , O r e g o n , in t h e m a n a g e m e n t
o f a real e sta te

in v e s tm e n t tr u st, U .S .

B ancorp

R e a lty a n d M o r tg a g e T r u st, P o r tla n d , O r e g o n , a n d

w arran t

in th e m a k in g o r a c q u is itio n o f c o m m e r c ia l a n d

d e n i a l o f t h i s p r o p o s a l . S i m c o ’s m a r k e t s h a r e d o e s

m o r tg a g e lo a n s . T h e r e m a in in g 8 0 p er c e n t o f th e

not exceed

produ ce

su ch

im p o r t a n t

b e n e fits

as

to

it

e q u it y in B M A is h e ld d ir e c tly a n d in d ir e c tly b y

c o m p e t e s w i t h n u m e r o u s la r g e c o m m e r c i a l b a n k s

B a n c o r p . In its O rd er o f J a n u a ry 3 1 , 1 9 7 2 d e n y in g

a n d l a r g e m o r t g a g e c o m p a n i e s in e a c h m a r k e t in

B a n c o r p ’ s a p p l i c a t i o n t o a c q u ir e s h a r e s o f S i m c o ,

w h ic h

th e

1 .4

per

it o p e r a t e s .

record,

any

cen t

in

any

m arket

and

O n th e b a s is o f th e fa c ts o f

e lim in a tio n

of

a c tu a l

and

p r o b a b le

B oard

c o m p a n ie s

fo u n d

th a t

w o u ld

a f f ilia t io n

of

s u b s t a n t ia l

tw o

e x is tin g

c o m p e titio n

r e s u ltin g fr o m c o n s u m m a t io n o f th e p r o p o s e d a c ­

v e r s e l y a f f e c t p o t e n t i a l c o m p e t i t i o n i n a t h ir d g e o ­

S i m c o , i n d i r e c t l y , t h r o u g h I n t e r m o u n t a in I n s u r ­

engages

in

( “ A g e n c y ” ),

th e

s a le

of

m a r k e ts a n d

its

s u b s id ia r y ,

h o m e o w n e r ’s ,

a ls o

m o r tg a g e

r e d e m p tio n , c r e d it a c c id e n t a n d h e a lth a n d o th e r

th e m u tu a l in te r e s t

o f B ancorp

and

S im c o

w as

e s ta b lis h e d .
T h e B o a rd h a s r e c o g n iz e d
r e q u ir e c o o p e r a t i o n

b e tw e e n

th a t jo in t v e n tu r e s
v e n tu r e r s a n d th a t,

w h e r e t w o v e n tu r e r s a re c o m p e tito r s o f o n e
3Applicant controls six banks in U tah, one in Idaho, and
one in W yom in g. T he banks in Idaho and W yom ing were
ow ned by Applicant at the tim e o f enactm ent of the H olding
Com pany A ct and are “ grandfathered.”
4U nless otherw ise indicated, all financial data are as o f June
3 0 , 1974.




ad­

g r a p h ic m a r k e t. T h e r e a ft e r , B M A w a s fo r m e d a n d

q u is it io n a p p ea r s m in im a l.

A gency

g e o g r a p h ic

th e

fu tu r e c o m p e tit io n b e t w e e n A p p lic a n t a n d S im c o

ance

in t w o

an

e lim in a te

an­

5 12 CFR 2 2 5 .1 2 6 .
6The term “ im perm issible land developm ent hold ings” as
used herein includes raw land, incom e-producing real property
irrespective of w hether construction has been com pleted and
single fam ily d w ellin g units in various stages o f construction.

Law Department

o th e r , s u c h c o o p e r a t io n m a y d e c r e a s e c o m p e tit io n

327

b e r e d u c e d to le s s th a n 5 p e r c e n t o f th e p r e m iu m

in m a r k e t s in w h i c h t h e t w o m e e t i n d i r e c t c o m p e ­

i n c o m e o f A g e n c y i n a c c o r d a n c e w i t h t h e B o a r d ’s

t it io n .7 T h a t p r in c ip le

to th e

R e g u l a t i o n Y , th a t A p p l i c a n t d i s p o s e o f t h e a f o r e ­

in s t a n t a p p l i c a t i o n , a n d t h e B o a r d c o n c l u d e s t h a t

m e n t io n e d im p e r m is s ib le la n d d e v e lo p m e n t h o ld ­

a p p e a r s a p p lic a b le

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 r y s e r v ic e s

in g s w ith in s ix

b y S im c o

t h is p r o p o s a l a n d th a t S i m c o d i s p o s e o f a l l s h a r e s

th r o u g h B M A

g iv e s r is e to

a s e r io u s

m o n th s o f th e c o n s u m m a tio n

of

p o s s ib ilit y o f d e c r e a s e d c o m p e tit io n ,8 a p o s s ib le

o f B M A p r io r t o c o n s u m m a t i o n o f t h e p r o p o s a l .

a d v e r se e ffe c t n o t o u tw e ig h e d b y

T h e a p p r o v a l fu rth e r is s u b je c t to th e c o n d it io n s

th e p u b lic

th a t m a y

be

a n y b e n e fit to

r e a s o n a b ly

ex p ected

to

s e t fo r th in s e c t io n 2 2 5 . 4 ( c ) o f R e g u la t io n Y

and

t o t h e B o a r d ’ s a u t h o r it y t o r e q u ir e s u c h m o d i f i ­

d e r iv e fr o m s u c h p e r fo r m a n c e .
It a p p e a r s th a t c o n s u m m a t i o n o f t h i s p r o p o s e d

c a tio n o r te r m in a tio n o f th e a c t iv it ie s o f a h o ld in g

tr a n s a c tio n w o u ld n o t r e s u lt in a n y u n d u e c o n c e n ­

c o m p a n y o r a n y o f it s s u b s i d i a r i e s a s t h e B o a r d

t r a t io n o f r e s o u r c e s , c o n f l i c t s o f i n t e r e s t s o r o t h e r

f in d s

a d v erse e ffe c t

p r o v is io n s a n d p u r p o s e s o f th e A c t a n d th e B o a r d ’s

on

th e

p u b lic

in te r e s t.

A p p lic a n t

n ecessary

to

a ssu re

s ta te s th a t a ffilia tio n w ith S im c o s h o u ld in c r e a s e

r e g u la tio n s a n d

th e

p r e v en t e v a s io n th e r e o f.

fin a n c ia l

resou rces

th e r e b y e n a b le
c r e d it to
s te a d y

it s

it t o

a v a ila b le

in c r e a se

c u sto m e r s.

lo s s e s

of

it s

S im c o

and

has

sh ares

orders

is s u e d

w ith

th e r e u n d e r ,

th e

or

to

of

T h e t r a n s a c t i o n s h a l l b e c o n s u m m a t e d n o t la t e r

e x p e r ie n c e d

th a n th r e e m o n t h s a fte r th e e f f e c t iv e d a te o f th is

th e a v a ila b ility

S im c o

m arket

to

c o m p lia n c e

s in c e

1970.

A p p lic a n t e x p e c t s to r e v e r se th o s e lo s s e s . T h u s ,

O rd er, u n le s s

s u c h p e r io d is e x te n d e d

fo r

good

c a u s e b y th e B o a r d o r b y th e F e d e r a l R e s e r v e B a n k

th e B o a r d r e g a r d s p u b lic b e n e fits c o n s id e r a t io n s

o f S a n F r a n c i s c o p u r s u a n t t o a u t h o r it y d e l e g a t e d

a s le n d in g s lig h t w e ig h t to w a r d a p p r o v a l o f th a t

hereb y.

p o r t i o n o f t h e a p p l i c a t i o n th a t d o e s n o t r e l a t e t o
B M A . A s t o th a t p o r t i o n o f t h e a p p l i c a t i o n c o n ­
te m p la tin g

th e

in d ir e c t

a c q u is itio n

of

sh ares

of

B M A , t h e B o a r d f in d s t h a t n o b e n e f i t t o t h e p u b l i c
m a y r e a s o n a b ly b e e x p e c t e d to d e r iv e th e r e fr o m .
B ased
e r a tio n s

upon

th e

r e fle c te d

fo r e g o in g
in

th e

and

record,

o th er
th e

c o n s id ­

B oard

B y o r d e r o f th e B o a r d o f G o v e r n o r s , A p r il 2 1 ,
1975.
V o tin g fo r th is a c tio n ; V ic e -C h a ir m a n M itc h e ll an d
G o v e r n o r s B u c h e r , H o lla n d , an d W a llic h . A b s e n t an d
n o t v o tin g : C h a ir m a n B u r n s a n d G o v e r n o r s S h e e h a n an d
C o ld w e ll.
(S ig n e d ) T h e o d o r e F . A l l i s o n ,

has

d e t e r m i n e d , in a c c o r d a n c e w i t h t h e p r o v i s i o n s o f

[s e a l]

S e c r e t a r y o f th e B o a r d .

§ 4 ( c ) ( 8 ) , th a t c o n s u m m a t i o n o f t h e p o r t i o n o f t h i s
p r o p o s a l n o t r e la te d to B M A

c a n r e a s o n a b ly b e

ex p e cted

to r e s u lt in b e n e fits to

o u tw e ig h

p o s s ib le

th e p u b lic

a d v erse e ffe c ts.

th a t

A c c o r d in g ly ,

M e m p h is T r u s t C o m p a n y ,
M e m p h is , T e n n e s s e e

th e a p p lic a tio n is h e r e b y a p p r o v e d to th e e x te n t
it c o n t e m p l a t e s t h e a c q u i s i t i o n o f s h a r e s o f S i m c o ,

O r d e r D e n y in g A c q u is itio n

b u t is d e n ie d to th e e x te n t th e a p p lic a tio n c o n t e m ­

S a v in g s a n d L o a n A s s o c ia tio n , In c .

p la t e s th e in d ir e c t a c q u is it io n o f s h a r e s o f B M A .
T h i s d e t e r m i n a t i o n i s s u b j e c t t o t h e c o n d i t i o n th a t
t h e A g e n c y ’s p r e m i u m

in c o m e w h ic h

is n o t d i­

r e c tly r e la te d to a n e x t e n s io n o f c r e d it o r d ir e c tly
r e l a t e d t o t h e p r o v i s i o n o f o t h e r f in a n c ia l s e r v i c e s
7Board’s Order o f April 15, 1974, approving applications
of the Fort W orth National Corporation, Fort W orth, T exas,
and Shawm ut A ssociation , In c., B oston, M assachusetts, 60
Fed. R es. B u l l e t in 3 8 2 , 384 (1 9 7 4 ), 39 Fed. R eg. 14255,
14256 (1 9 7 4 ).
8The prospect o f decreased com petition resulting from the
B M A joint venture is not lim ited to the area of com petition
betw een Sim co and Bancorp. Bancorp is the largest banking
organization in O regon; Applicant is the largest banking orga­
nization in U tah. B oth are substantial banking organizations
in the N orthwestern U nited States. In the past, the tw o organi­
zations have evidenced an inclination toward cooperation at
least in the area o f provision o f data processing services, having
filed, but subsequently w ithdrawn, an application to engage
in that activity in a joint venture. The instant application
suggests that an inclination toward cooperation m ay still exist.




o f H o m eo w n ers

M e m p h is T r u st C o m p a n y , M e m p h is , T e n n e s ­
s e e , 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 , t o a c q u ir e 1 0 0 p e r c e n t o f t h e p e r m a n e n t s t o c k
o f H om eow ners
I n c .,

S a v in g s

C o llie r v ille ,

and L oan

T en n essee

A s s o c ia tio n ,

( “ C o m p a n y ” ),

a

c o m p a n y th a t p r o p o s e s t o e n g a g e i n t h e d e n o v o
o p e r a tio n o f a s a v in g s a n d lo a n a s s o c ia t io n .
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity
fo r in te r e s te d

p erso n s

to

su b m it

co m m en ts

and

v ie w s o n w h e th e r s u c h a c tiv it y is c lo s e ly r e la te d
to b a n k in g , a s w e ll a s o n th e p u b lic in te r e st 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 r a l R e g is te r
3 2 8 4 9 ) . T h e tim e fo r filin g c o m m e n t s a n d v ie w s
h a s e x p ir e d a n d th o s e file d , in c lu d in g te s tim o n y

328

Federal R eserve B ulletin □ M ay 1975

a n d e x h ib it s r e c e iv e d at a n o r a l p r e s e n ta tio n b e fo r e

B ank,

as

o f June

30,

1 9 7 3 ,4 w a s

th e

fo u r th

a v a ila b le m e m b e r s o f th e B o a r d , h e ld O c to b e r 3 0

la r g e s t o f th e n in e c o m m e r c ia l b a n k s w ith o ff ic e s

a n d 3 1 , 1 9 7 3 , h a v e b e e n c o n s id e r e d .

in S h e l b y C o u n t y . H o w e v e r , it h e l d o n l y 3 . 8 p e r

A p p l i c a n t c o n t r o l s o n e b a n k l o c a t e d in t h e S t a t e

cen t

of

th e

tim e

and

s a v in g s

d e p o s its

in

th e

o f T e n n e s s e e ,1 M e m p h is B a n k & T ru st C o m p a n y ,

C o u n t y . T h e th r e e la r g e s t o f th e n in e c o m m e r c ia l

M e m p h is , T e n n e s s e e ( “ B a n k ” ) , w ith d e p o s its o f

b a n k s in

$ 1 2 0 m illio n , w h ic h r e p r e s e n t a p p r o x im a te ly 1 p er

c e n t o f th e to ta l tim e a n d s a v in g s d e p o s its h e ld

S h e lb y C o u n ty

h e ld m o r e th a n 8 5

per

c e n t o f t h e t o t a l d e p o s i t s in c o m m e r c i a l b a n k s in

in t h e C o u n t y . B a n k h e l d t h e e i g h t h l a r g e s t r e a l

T e n n e s s e e . A p p l i c a n t i s t h e n in t h l a r g e s t b a n k i n g

e sta te lo a n

o r g a n iz a tio n in th e S t a t e .2

ban ks and

C om pany,

c h a r te re d

in

1972,

has

not

com ­

p o r tfo lio
s a v in g s

am ong

and

th e

lo a n

13

c o m m e r c ia l

a s s o c ia tio n s

in

th e

C o u n ty . Its r e a l e s ta te lo a n s a m o u n te d to a p p r o x i­

m e n c e d o p e r a tio n . C o m p a n y w o u ld o p e r a te in th e

m a t e ly

m a n n e r o f a t r a d it io n a l s a v i n g s a n d l o a n a s s o c i a ­

e sta te lo a n s h e ld b y c o m m e r c ia l b a n k s a n d s a v in g s

t i o n . I ts o f f i c e w o u l d

a n d lo a n a s s o c ia t io n s in th e C o u n t y .

b e l o c a t e d in

T e n n e s s e e , a p p r o x im a te ly

C o llie r v ille ,

2 5 m ile s

T im e a n d s a v in g s d e p o s it a n d rea l e sta te lo a n

so u th e a st o f

d o w n to w n M e m p h is .

1 .6 p e r c e n t o f th e to ta l a m o u n t o f r e a l

m a r k e ts

T h e B o a r d h a s p r e v io u s ly c o n s id e r e d th e n a tu re

a p p r o x im a tin g

c en tr a te d .

B ank,

are

not

of

A p p l i c a n t ’s

con­

d o m in a n t

in

e ith e r

in

p o s a l , r a th e r t h a n e l i m i n a t i n g a c t u a l o r p r o b a b l e

w ith

th e

a p p lic a tio n

o f A m e r ic a n

C o n s u m m a tio n

C o u n ty

is

a n d t h e s t r u c t u r e o f t h e s a v i n g s a n d l o a n in d u s t r y
c o n n e c tio n

fie ld .

S h e lb y

how ever,

pro­

F l e t c h e r C o r p o r a t i o n t o a c q u ir e s h a r e s o f S o u t h ­

fu tu r e c o m p e t it io n , m a y in c r e a s e c o m p e t it io n

w e s t S a v in g s a n d L o a n A s s o c ia t io n .3 T h e rec o r d

it a p p e a r s t o r e p r e s e n t a m e t h o d b y w h i c h A p p l i ­

o f th a t p r o c e e d i n g h a s b e e n m a d e a p a r t o f t h is

c a n t w o u l d r e a c h c u s t o m e r s f o r t h o s e s e r v i c e s in

a p p lic a tio n

th e C o llie r v ille a r ea in a m o r e d ir e c t f a s h io n . T h e r e

a n d th e B o a r d

c o m p e lle d to

in

c o n c lu d e s ,

c o n n e c tio n

w ith

as

it w a s

th a t c a s e , th a t

is

no

s a v in g s

and

lo a n

a s s o c ia tio n

w ith in

as

a

t h e a c t i v i t y in w h i c h C o m p a n y w o u l d e n g a g e i s

t w e l v e - m i l e r a d iu s o f C o m p a n y ’ s p r o p o s e d o f f i c e ,

c l o s e l y r e l a t e d t o b a n k i n g . W h e t h e r it i s a “ p r o p e r

d e s p i t e t h e r a p id e c o n o m i c d e v e l o p m e n t th a t t h e

in c id e n t th e r e to ”

w ith in th e m e a n in g o f s e c tio n

C o llie r v ille a rea is e x p e r ie n c in g . A lth o u g h B a n k

4 ( c ) ( 8 ) o f th e A c t r e q u ir e s a d e te r m in a tio n w h e th e r

m a y l a w f u lly e s t a b lis h a b r a n c h o ff ic e in C o llie r ­

its

p e r fo r m a n c e

by

C om pany

as

an

a f f ilia t e

of

A p p lic a n t c a n r e a s o n a b ly b e e x p e c t e d to p r o d u c e

v ille , A p p lic a n t’s e n tr y in to C o llie r v ille

th ro u g h

C o m p a n y m a y c o n s titu te a g r e a te r b e n e fit to tim e

b e n e f i t s t o t h e p u b l i c th a t o u t w e i g h p o s s i b l e a d ­

a n d s a v in g s d e p o s ito r s a n d r e s id e n tia l r ea l e s ta te

v e rse e ffe c ts.

b orrow ers

Four

s a v in g s

lo a n

a s s o c ia tio n s

in

v ie w

of

th e

h ig h e r

in te r e s t

r a te s

o p e r a te

C o m p a n y m a y p a y o n s u c h d e p o s its a n d th e g rea ter

o f f i c e s in S h e l b y C o u n t y . T h e l a r g e s t h e l d a p p r o x ­

e m p h a s is th a t C o m p a n y m a y p la c e o n r e s id e n t ia l

im a t e ly

m o r tg a g e s.

78

and

p e r c e n t o f th e to ta l a s s e ts

s a v in g s a n d lo a n

a s s o c ia tio n s

C o u n ty , as o f Ju n e 3 0 ,

lo c a te d

in

h e ld

by

S h e lb y

1 9 7 3 . A t t h a t t i m e , th a t

T h e B o a r d h a s p r e v io u s ly e x p r e s s e d

th e v ie w

th a t a t t h i s t i m e b a n k h o l d i n g c o m p a n i e s g e n e r a l l y

a s s o c ia t io n h e ld th e la r g e s t a m o u n t o f r e a l e s ta te

s h o u l d s l o w t h e ir r a t e o f e x p a n s i o n i n t o n e w a c ­

lo a n s h e ld

tiv itie s

by

a ll

13

S h e lb y

C o u n ty

banks

and

and

s h o u ld

d ir e c t

e n e r g ie s

p e r c e n t . T h e f o u r l a r g e s t s u c h f i n a n c ia l i n s t i t u t i o n s

w h e r e s u c h e x p a n s io n m a y b e in to n e w

h e ld m o r e th a n 8 6 p e r c e n t o f th e r ea l e s ta te lo a n s

in w h ic h b a n k h o ld in g c o m p a n ie s h a v e n o t p r e ­

h e ld

a

v io u s ly e n g a g e d .5 T h a t v ie w is e s p e c ia lly a p p lic a ­

s a v i n g s a n d l o a n a s s o c i a t i o n a l t h o u g h it d o e s i n d i ­

b l e t o b a n k h o l d i n g c o m p a n i e s a p p l y i n g t o a c q u ir e

r e c tly ,

th e

13.

th ro u g h

A p p lic a n t d o e s

B ank,

engage

in

n o t o p e r a te

th e

r e c e ip t

of

o p e r a tio n s ,

to w a r d

s tr e n g th e n in g

by

e x is tin g

t h e ir

s a v in g s a n d lo a n a s s o c ia t io n s , a p p r o x im a te ly 4 7

p a r t ic u l a r ly
a c tiv itie s

or fo r m c o m p a n ie s w h ic h are or w o u ld b e h ig h ly

d e p o s i t s a n d , t h r o u g h B a n k , e n g a g e in t h e m a k i n g

le v e r a g e d

o f m o r tg a g e lo a n s .

in f u s io n s o f c a p ita l.6 H e r e C o m p a n y w ill b e l o ­

a p p lic a n t also ow ns 2 4 .8 and 22 per cent respectively of
the outstanding voting shares of tw o banks located in the State
o f M ississippi.
2Banking data are as o f June 3 0 , 1974.
3 Order of N ovem ber 4 , 1974, denying application o f A m er­
ican Fletcher Corporation, Indianapolis, Indiana, to acquire
shares of Southw est Savings and Loan A ssociation , Phoenix,
A rizona, 39 Federal R egister 3 9 912 (1974); 6 0 Fed. R es.
B u l l e t in 868 (1 9 7 4 ).

4 There is no reason to b elieve that any significant change
has occurred in the textual data since June 30 , 1973.
5 See Order o f Septem ber 9 , 1974, concerning the un­
derwriting o f real estate m ortgage guaranty insurance, 39
Federal R egister 3 3 7 1 2 , 3 3 7 1 3 , 6 0 Fed. R es. B u l l e t in 727
(1974).
6 See Order of June 2 9 , 1973, denying application of C hem ­
ical N ew York Corporation to acquire C N A N uclear L easing,
In c., 38 Federal R egister 18407, 18408 (1 9 7 3 ), 59 Fed. R es.
B u l l e t in 6 9 8 , 6 99 (1973).




and

w h ic h

w o u ld

r e q u ir e

c o n tin u in g

L aw D epartm ent

c a te d

in

a r a p id ly d e v e lo p in g

area

so u th e a st o f

329

M i d l a n t i c C o m m e r c i a l C o r p o r a t i o n , a ll o f t h e v o t ­

M e m p h is , a n a r ea in w h ic h n o o th e r s a v in g s a n d

in g s h a r e s o f G r e a t E a s te r n L e a s in g C o r p o r a tio n ,

l o a n a s s o c i a t i o n s c u r r e n t ly m a i n t a i n

and

N ew Y ork , N e w Y ork ( “ C o m p a n y ” ), a com p an y

A p p lic a n t a n t ic ip a te s s ig n ific a n t g r o w th b y C o m ­

th a t e n g a g e s i n t h e a c t i v i t y o f f u l l p a y - o u t l e a s i n g

o ff ic e s ,

p a n y . T h a t g r o w t h w o u l d r e q u ir e c o n t i n u i n g i n f u ­

a n d e q u ip m e n t f in a n c in g .1 S u c h a c tiv it y h a s b e e n

s io n o f c a p ita l b y A p p lic a n t in t o C o m p a n y .

d e te r m in e d b y th e B o a r d to b e c lo s e ly r e la te d to

T h e B o a r d h a s f r e q u e n t l y r e i t e r a t e d it s v i e w th a t

b a n k in g ( 1 2 C F R 2 2 5 .4 ( a ) ( 6 ) ) .
N o t ic e o f th e a p p lic a tio n , a ffo r d in g o p p o r tu n ity

t h e p r im a r y r o l e o f a b a n k h o l d i n g c o m p a n y s h o u l d
b e to s e r v e a s a s o u r c e o f fin a n c ia l s tr e n g th a n d

f o r in t e r e s t e d

support

v ie w s o n th e p u b lic in te r e s t fa c t o r s , h a s b e e n d u ly

fo r

its

s u b s id ia r ie s .

The

fin a n c ia l

and

p erso n s

to

s u b m it

co m m en ts

and

m a n a g e r ia l r e s o u r c e s o f a b a n k h o ld in g c o m p a n y

p u b lis h e d ( 4 0

s h o u l d n o t b e u n d u l y d i v e r t e d f r o m th a t r o l e . T h e

fo r filin g c o m m e n t s a n d v ie w s h a s e x p ir e d , a n d

fo r m a tio n a n d a c q u is itio n o f C o m p a n y , e v e n a b ­

t h e B o a r d h a s c o n s i d e r e d a ll c o m m e n t s r e c e i v e d

s e n t a n y c o m m it m e n t b y A p p lic a n t to in j e c t c a p ita l

in th e lig h t o f th e p u b lic in te r e s t fa c to r s s e t fo r th

in to C o m p a n y ,

in

fr o m

B a n k ’s

w o u ld

d i v e r t it s r e s o u r c e s

p r o b a b le

fu tu r e

n eed s.

aw ay

A lth o u g h

c o n s u m m a t io 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

s e c tio n

F e d e r a l R e g is t e r

4 (c )(8 )

of

th e A c t

1 5 7 1 ). T h e

(1 2

tim e

U .S .C .

1843

(c )(8 )).
A p p l i c a n t i s t h e t h ir d l a r g e s t b a n k i n g

o r g a n i­

in c r e a s e c o m p e t it io n in S h e lb y C o u n t y m o r tg a g e

z a tio n in N e w

a n d s a v in g s d e p o s it m a r k e ts b y p r o v id in g a n e w

c e n t o f t h e t o t a l d e p o s i t s in c o m m e r c i a l b a n k s in

c o n v e n ie n t

th e

su ch

a lte r n a tiv e

d iv e r s io n

sou rce

of

su ch

s e r v ic e s ,

S ta te .

A p p lic a n t

c o n tr o ls

e ig h t

banks

per
w ith

e f f e c t o f th e p r o p o s e d a ff ilia tio n th a t is n o t o u t ­

C o m p a n y , o r g a n iz e d in 1 9 6 8 , h a s to ta l a s s e t s o f

tim e

and

s ig n ific a n t

7

a g g r e g a te d e p o s its o f a p p r o x im a te ly $ 1 . 4 b il lio n .2

at th is

a

a p p r o x im a te ly

a d v erse

w e ig h e d ,

c o n s titu te s

J e r s e y w ith

under

th e se

c ir c u m ­

s t a n c e s , i n t h e B o a r d ’s j u d g m e n t , b y a n y b e n e f i t s

$ 1 .9

m i l l i o n . 3 C o m p a n y ’s

v o lv e

to

le a s in g

e q u a l e x te n ts b o th

a c tiv it ie s

d ir e c t

and

in ­

vendor-

t o th e p u b lic th a t c a n r e a s o n a b ly b e e x p e c t e d to

o r i g i n a t e d l e a s e s . M o s t o f it s d i r e c t l e a s e s i n v o l v e

b e p r o d u c e d b y t h e a f f i lia t io n .

p r in t in g p r e s s e s a n d m a c h i n e t o o l s , w h i l e t h e v e n ­

B a sed

upon

th e

fo r e g o in g

and

o th e r

c o n s id ­

e r a t io n s r e f le c t e d in th e r e c o r d , th e B o a r d is u n a b le

d o r -o r ig in a te d

le a s e s

are

in

th e

o ff ic e

m a c h in e

f i e l d . M o s t o f C o m p a n y ’s l e a s e s a r e o f e q u i p m e n t

t o d e t e r m i n e , u n d e r s e c t i o n 4 ( c ) ( 8 ) o f t h e A c t , th a t

v a lu e d

th e p r o p o s e d a ffilia tio n c a n r e a s o n a b ly b e e x p e c t e d

m a r ily in th e M e t r o p o lita n N e w Y o r k a r e a m a r k e t,

to p r o d u c e b e n e fit s to

under

$ 2 5 ,0 0 0 .

C om pany

o p e r a te s

p r i­

t h e p u b l i c th a t o u t w e i g h

a p p r o x im a te d b y s o u th e a s te r n N e w Y o r k S t a te , th e

p o s s ib le a d v e r s e e f f e c t s . A c c o r d in g ly , th e a p p li­

n o r th er n C o u n t ie s o f N e w J e r s e y , a n d th e s o u th e r n

c a tio n is h e r e b y d e n ie d .

C o u n tie s o f C o n n e c tic u t . A p p lic a n t a ls o e n g a g e s

B y o rd er o f th e B o a r d o f G o v e r n o r s, e ffe c tiv e
A p r il 1 0 , 1 9 7 5 .

in l e a s i n g a c t i v i t y i n t h e s a m e m a r k e t t h r o u g h a
d e p a r tm e n t o f its le a d

V o t in g fo r th is a c tio n : C h a ir m a n B u r n s a n d G o v e r ­
n o r s S h e e h a n , B u c h e r , H o lla n d , W a llic h , a n d C o ld w e ll.
A b s e n t a n d n o t v o tin g : G o v e r n o r M itc h e ll.
(S ig n e d ) T h e o d o r e E . A l l i s o n ,

Secretary of the Board.

[s e a l]

B ank

and

a ls o

b a n k , M id la n tic N a tio n a l

th r o u g h

M id la n tic

C o m m e r c ia l

C o r p o r a tio n , a s u b s id ia r y . T h r o u g h M id la n tic N a ­
tio n a l B a n k
m illio n

in

A p p lic a n t h e ld
le a sin g

m e r c ia l C o .

a p p r o x im a te ly

r e c e iv a b le s .

com m enced

M id la n tic

o p e r a tio n s

$ 6 .5
C om ­

de novo

in

A u g u s t, 1 9 7 4 . A lth o u g h s o m e e x is t in g a n d fu tu r e
c o m p e titio n

W est O r a n g e , N e w

w o u ld

th e r e fo r e b e e lim in a te d

as a

r e s u lt o f t h i s p r o p o s a l , i n v i e w o f t h e l a r g e n u m b e r

M id l a n t ic B a n k s In c .,

o f c o m p e tit o r s a n d th e in t e n s it y o f c o m p e t it io n in

Je r se y

th e N e w Y o r k m a r k e t, s u c h a r e d u c tio n in c o m p e ­

Order Approving Acquisition of
Great Eastern Leasing Corporation

titio n a s w o u ld o c c u r w o u ld n o t b e s ig n ific a n t.
T h e r e is n o e v id e n c e in th e r e c o r 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 tr a n s a c tio n w o u ld

M id la n tic B a n k s I n c ., W e s t O r a n g e , N e w J e r ­

r e s u lt

in u n d u e c o n c e n t r a t i o n o f r e s o u r c e s , c o n f l i c t s o f

s e y , 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 s e c t io n 4 ( c ) ( 8 ) o f
th e

A ct

(1 2

U .S .C .

1 8 4 3 (c )(8 ))

and

s e c tio n

2 2 5 . 4 ( b ) ( 2 ) o f t h e B o a r d ’s R e g u l a t i o n Y ( 1 2 C F R
2 2 5 .4 (b )(2 )),

to




a c q u ir e

th r o u g h

it s

s u b s id ia r y ,

1 N on-lease equipm ent financing constitutes less than 10 per
cent of C om pany’s volum e and is a method of financing the
sam e types of equipm ent as that leased by C om pany.
2Banking data are as o f June 30 , 1974.
3 C om pany data are as of D ecem ber 31 , 1973.

330

Federal R eserve B ulletin □ M ay 1975

i n t e r e s t s , u n s o u n d b a n k i n g p r a c t i c e s , u n f a ir c o m ­

m an ager, and

p e t i t i o n , o r o t h e r a d v e r s e e f f e c t s . F u r t h e r m o r e , it

a n d g e n e r a l l y m a n a g i n g t h e f u n d s e n t r u s t e d t o it

c o u n s e lo r ,

a p p e a r s th a t C o m p a n y , a s a s u b s i d i a r y o f M i d l a n -

in its

in c id e n ta l a c t iv it ie s n e c e s s a r y t o c o n d u c t a g e n e r a l

p resen t an d

C o .,

fu tu r e

w ill

be

c u sto m e r s

a b le
a

to

o ffer

it s

w id e r

range

of

B a sed

upon

th e

r e fle c te d

fo r e g o in g
in

th e

and

record,

o th e r
th e

c o n s id ­

B oard

a d v is o r y

c a p a c ity ,

and

o th er

tr u st c o m p a n y b u s in e s s . T h e s e a c t iv it ie s w o u ld b e
p e r fo r m e d b y th e A m e r ic a n T ru st C o m p a n y , I n c .,

f in a n c ia l s e r v i c e s t h a n it i s c u r r e n t ly p r o v i d i n g .
e r a tio n s

or

r e -in v e s tin g

t ic

C o m m e r c ia l

fid u c ia r y

in v e s tin g ,

has

d e t e r m i n e d , in a c c o r d a n c e w i t h s e c t i o n 4 ( c ) ( 8 ) o f

C a m d e n , S o u th C a r o lin a , a w h o lly - o w n e d s u b s id ­
ia r y o f N C N B

C o r p o r a tio n .

A fte r n o t ic e a n d h e a r in g , th e B o a r d a p p r o v e d

th e A c t , th a t c o n s u m m a t io n o f th is p r o p o s a l c a n

A p p lic a n t’s p r o p o s a l o n

r e a s o n a b ly b e e x p e c t e d to p r o d u c e b e n e fits to th e

e x te n t p e r m itte d b y S o u th C a r o lin a la w . O n th a t

M arch

9,

1 9 7 3 1 to

th e

p u b lic th a t o u t w e ig h p o s s i b le a d v e r s e e f f e c t s . A c ­

d a t e , c e r ta in S o u th C a r o lin a s ta tu te s a p p e a r e d to

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

p r o h ib it a n y c o r p o r a tio n c o n tr o lle d b y a n o n -S o u t h

d e te r m in a tio n is s u b je c t to th e c o n d it io n s s e t fo r th

C a r o lin a c o r p o r a tio n f r o m s e r v in g a s a n e x e c u t o r ,

in

a d m in is tr a to r ,

s e c tio n

2 2 5 .4 (c )

of

R e g u la tio n

Y

(1 2

CFR

or

te sta m e n ta r y

tr u ste e

in

S o u th

2 2 5 . 4 ( c ) ) a n d t o t h e B o a r d ’ s a u t h o r it y t o r e q u ir e

C a r o lin a .2 O n A p r il 6 , 1 9 7 3 , A p p lic a n t p e tit io n e d

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 t iv it ie s

fo r r e v ie w

o f a h o l d i n g c o m p a n y o r a n y o f it s s u b s i d i a r i e s

S ta te s C o u r t o f A p p e a ls fo r th e D is tr ic t o f C o lu m ­

a s t h e B o a r d f in d s n e c e s s a r y t o a s s u r e c o m p l i a n c e

b ia . O n M a y 3 1 , 1 9 7 3 , A p p lic a n t a n d A m e r ic a n

w ith th e p r o v is io n s a n d p u r p o se s o f th e A c t a n d

T r u st C o m p a n y in s tit u te d s u it in th e U n it e d S ta te s

t h e B o a r d ’s r e g u l a t i o n s a n d o r d e r s i s s u e d

th er e ­

tr a n s a c tio n

s h a ll

be m ade

B o a r d ’s O rd er

in th e

U n it e d

D is tr ic t C o u r t fo r th e D is tr ic t o f S o u th C a r o lin a
fo r a d e c la r a to r y ju d g m e n t th a t th e p e r tin e n t S o u th

u n d e r , or to p r e v e n t e v a s io n th e r e o f.
The

o f th e

n o t la t e r

th a n

C a r o lin a s ta tu te s w e r e in v a lid o n th e g r o u n d th a t

t h r e e m o n t h s a f t e r t h e e f f e c t i v e d a t e o f t h is O r d e r ,

th ey c o n tr a v e n e d

u n le s s s u c h p e r io d is e x te n d e d fo r g o o d c a u s e b y

S t a t e s . O n S e p t e m b e r 3 , 1 9 7 4 , th a t C o u r t e n t e r e d

th e C o n s titu tio n o f th e U n it e d

th e B o a r d o r b y th e F e d e r a l R e s e r v e B a n k o f N e w

a n o r d e r d e c l a r i n g th a t t h e p e r t i n e n t s t a t u t e s d e n i e d

Y o r k p u r s u a n t t o a u t h o r it y d e l e g a t e d h e r e b y .

th e A m e r ic a n T r u st C o m p a n y e q u a l p r o te c tio n o f

B y o rd er o f th e B o a r d o f G o v e r n o r s , e f f e c tiv e
A p r il 1 8 , 1 9 7 5 .

th e la w s in v io la t io n o f th e F o u r te e n th A m e n d m e n t
o f th e U n it e d S ta te s C o n s titu tio n , a n d p e r m a n e n t ly
e n jo in in g

V o tin g fo r th is a c tio n : G o v e r n o r s B u c h e r , H o lla n d ,
W a llic h , a n d C o ld w e ll. A b s e n t a n d n o t v o tin g : C h a ir ­
m a n B u m s a n d G o v e r n o r s M itc h e ll a n d S h e e h a n .

c e r ta in

S o u th

C a r o lin a p u b lic o ff ic ia ls

“ fr o m p r o h ib itin g A m e r ic a n T ru st C o m p a n y fr o m
s e r v in g

as

an

ex ecu to r,

a d m in is tr a to r ,

or

te sta ­

m e n ta r y tr u ste e o f th e e s ta te o f a n y p e r s o n d o m i­
(S ig n e d ) T h e o d o r e E . A l l i s o n ,

Secretary of the Board.

[s e a l]

c ile d in S o u th C a r o lin a a t th e tim e o f h is d e a th
b e c a u s e it i s c o n t r o l l e d b y [ A p p l i c a n t ] . ”

On D e­

c e m b e r 3 0 , 1 9 7 4 , th e U .S . C o u rt o f A p p e a ls fo r
th e D is tr ic t o f C o lu m b ia r e m a n d e d th is m a tte r to
NCNB

th e B o a r d .

C o r p o r a t io n ,

In

C h a r l o t t e , N o r t h C a r o l in a

it s

M arch 9 ,

Order Approving Proposal to Operate a
Trust Company in South Carolina

S ta te m e n t

its

O rder

of

t h e p e r t i n e n t S o u t h C a r o l i n a s t a t u t e s , it w o u l d h a v e
app roved

th e

e n tir e p r o p o s a l.

th o se sta tu tes n o w
N C N B C o r p o r a tio n , C h a r lo tte , N o r th C a r o lin a ,
a b a n k h o ld in g c o m p a n y

a c c o m p a n y in g

1 9 7 3 , th e B o a r d in d ic a te d th a t, b u t fo r

w ith in th e m e a n in g

of

h a v in g

T h e in v a lid ity

been

of

e s t a b lis h e d , th e

B o a r d , f o r r e a s o n s s e t f o r t h i n t h e B o a r d ’s S t a t e ­
m en t o f M arch

9,

1973

h a s d e te r m in e d , in

ac­

p rop osed

c o r d a n c e w ith s e c tio n 4 ( c ) ( 8 ) o f th e B a n k H o ld in g

u n d er § 4 ( c ) ( 8 ) o f th e A c t a n d § 2 2 5 .4 ( b ) ( 1 ) o f

C o m p a n y A c t ( 1 2 U . S . C . § 1 8 4 3 ( c ) ( 8 ) ) , th a t c o n ­

de

s u m m a tio n o f A p p lic a n t’s p r o p o s a l c a n r e a s o n a b ly

th e B a n k H o ld in g

C om pany

A c t, h as

t h e B o a r d ’s R e g u l a t i o n Y , t o e n g a g e i n d i r e c t l y

novo

in th e p e r f o r m a n c e o f c e r ta in a c t iv it ie s th a t

m a y b e p e r f o r m e d b y a tr u s t c o m p a n y , i n c l u d i n g
a c tin g

as

ex ec u to r,

a d m in is t r a t o r ,

r e c e iv e r ,

as­

s i g n e e , t r u s t e e a n d i n a n y o t h e r f id u c ia r y c a p a c i t y ,
a c tin g

as

an




in v e s tm e n t

and

fin a n c ia l

a d v is o r ,

b o a r d ’s Order of M arch 9 , 1973 C onditionally A pproving
Proposal of N C N B Corporation to Operate a Trust C om pany
in South C arolina, 59 Fed. R es. B u l l e t in 305 (1 9 7 3 ), 38
Fed. R eg. 736 4 (1973).
2 C ode o f L a w s o f South C arolin a, §§ 19-592 and 67-53(a)(3)
(1972 Supp.).

L aw D epartm ent

T h e t r a n s a c t i o n s h a l l b e c o n s u m m a t e d n o t la t e r

b e e x p e c t e d t o p r o d u c e b e n e f i t s t o t h e p u b l i c th a t
o u tw e ig h

p o s s ib le

th e p r o p o s a l is
n a t io n
s e c tio n

is

a d v erse

hereb y

e ffe c ts.

ap p roved.

s u b je c t

to

th e

2 2 5 .4 (c )

of

R e g u la tio n

T h is
Y

th a n th r e e m o n th s a fte r th e e f f e c t iv e d a te o f th is

A c c o r d in g ly ,

c o n d itio n s

and

O rd er, u n le s s

d e te r m i­

s e t fo r th
to

331

s u c h p e r io d is 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 r d or b y th e F e d e r a l R e s e r v e B a n k

in

o f R ic h m o n d .

th e

B y o r d e r o f th e B o a r d o f G o v e r n o r s , A p r il 2 9 ,

B o a r d ’ s a u t h o r it y t o r e q u ir e s u c h m o d i f i c a t i o n o r
t e r m in a tio n o f th e a c t iv it ie s o f a h o ld in g c o m p a n y

1975.

o r a n y o f it s s u b s i d i a r i e s a s t h e B o a r d f in d s n e c e s ­

V o tin g fo r th is a c tio n : C h a ir m a n B u r n s an d G o v e r ­
n o r s M it c h e ll, B u c h e r , H o lla n d , W a llic h , an d C o ld w e ll.
A b s e n t an d n o t v o tin g : G o v e r n o r S h e e h a n .

s a r y to a s su r e 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 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

(S ig n e d ) G r i f f i t h

a n d o r d e r s 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
[s e a l]

th er e o f.

L. G arw ood ,

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 .

ORDERS NOT PRINTED IN THIS ISSUE
ORDERS APPROVED BY THE BOARD OF GOVERNORS
D u r in g M a r c h o r A p r il

1 9 7 5 , th e B o a r d o f G o v e r n o r s a p p r o 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 r s h a v e b e e n p u b lis h e d in th e F e d e r a l R e g is t e r , a n d c o p ie s o f th e o r d e r s 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 tr a tiv e S e r v ic e s , B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e
S y s te m , W a s h in g t o n , D .C . 2 0 5 5 1 .

ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK

A p p lic a n t
H a w k e y e B a n c o r p o r a tio n ,
D e s M o in e s , I o w a
T . N . B . F in a n c ia l C o r p .,
S p r in g fie ld , M a s s a c h u s e t ts
U n ite d B a n k s o f C o lo r a d o ,
I n c ., D e n v e r , C o lo r a d o

B a n k (s)
F a r m e r s & M e r c h a n ts S ta te

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 8 /7 5

4 0 F .R .

B a n k , L a k e M ills , I o w a
W a re T ru st C o m p a n y , W a r e ,

4 /9 /7 5

4 0 F .R .

M a ssa c h u se tts
U n ite d B a n k o f S te a m b o a t

19707
5 /6 /7 5
17201

4 /1 7 /7 5
4 /1 1 /7 5

4 0 F .R .

S p r in g s , S te a m b o a t S p r in g s ,

17347

4 /1 7 /7 5

C o lo r a d o

ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT—
APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES

A p p lic a n t
F ir s t C o m m e r ic a l B a n k s I n c .,
A lb a n y , N e w

Y ork

F ir s t N a t io n a l B a n c o r p o r a t io n ,
I n c ., D e n v e r , C o lo r a d o




B o a r d a c tio n

F ederal

N o n b a n k in g c o m p a n y

(e ffe c tiv e

R e g is te r

(o r a c tiv ity )

d a te )

c ita tio n

F C B L ife In su r a n c e , L td .,

3 /3 1 /7 5

P h o e n ix , A r iz o n a
T h e G ra n d V a lle y A g e n c y ,
G r a n d J u n c t io n , C o lo r a d o

4 0 F .R .

15454

4 /7 /7 5
4 /2 3 /7 5

4 0 F .R .

19707

5 /6 /7 5

332

Federal R eserve B ulletin □ M ay 1975

ORDERS UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACTAPPLICATIONS TO FORM BANK HOLDING COMPANY AND ENGAGE IN
NONBANKING ACTIVITIES
N o n b a n k in g
A p p lic a n t

B a n k (s)
A m e r ic a n S e c u r ity

A m e r ic a n C o r p o r a tio n ,
N o r th P la tte , N e b r a sk a

F ederal

com pany

E ffe c tiv e

R e g is te r

(o r a c tiv ity )

d a te

c ita tio n
4 0 F .R .

3 /3 1 /7 5

In su ra n ce a g en t

B a n k , N o r th

fo r th e s a le o f

P la tte , N e b r a sk a

c r e d it r e la te d

15452

4 /7 /7 5

in s u r a n c e
The F& M

F & M B a n c o r p o r a tio n ,
T u ls a , O k la h o m a

B an k and

I n la n d L i f e I n ­

4 0 F .R .

3 /1 3 /7 5

T ru st C o m p a n y ;

su ra n ce C o m ­

an d F a m is c o ,

p a n y , T u ls a ,

I n c ., b o th lo c a te d

O k la h o m a

13044

3 /2 4 /7 5

in T u l s a , O k l a h o m a
T ip to n I n s u r a n c e A g e n c y ,

T h e T ip to n S ta te

I n c ., T ip to n , K a n s a s

T ip to n I n s u r a n c e

B a n k , T ip to n ,

A g e n c y , T ip to n ,

K an sas

K an sas

3 /1 7 /7 5

4 0 F .R .

13019

3 /2 4 /7 5

ORDERS APPROVED BY THE SECRETARY OF THE BOARD
D u r i n g A p r i l 1 9 7 5 , a p p l i c a t i o n s w e r e a p p r o v e d b y t h e S e c r e t a r y o f t h e B o a r d u n d e r d e l e g a t e d a u t h o r it y
a s lis te d

b e lo w .

T h e ord ers h a v e

are a v a ila b le u p o n

r e q u e st to

been

p u b l i s h e d in

P u b lic a tio n s

S e r v ic e s ,

th e F e d e r a l R e g is t e r ,
D iv is io n

of

a n d c o p ie s

A d m in is tr a tiv e

o f th e o r d e rs

S e r v ic e s , B o a r d

of

G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , W a s h in g to n , D .C . 2 0 5 5 1 .

ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT—
APPLICATION TO MERGE BANK HOLDING COMPANY

A p p lic a n t
H o m e w o o d B a n c o r p o r a tio n ,
I n c ., H o m e w o o d , I llin o is

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

B a n k (s)
Bank of H om ew ood,

4 /8 /7 5

4 0 F .R .

H o m e w o o d , I llin o is

16885

4 /1 5 /7 5

ORDER UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACTAPPLICATION FOR ACQUISITION OF BANK

A p p lic a n t
F ir s t N a tio n a l C o r p o r a tio 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

B a n k (s)

F ir s t N a tio n a l B a n k a n d

o f O ak B rook , O ak

T ru st C o m p a n y o f O a k

B r o o k , I llin o is

B r o o k , O a k B r o o k , I llin o is

4 /2 4 /7 5

4 0 F .R .

19543

5 /5 /7 5

ORDERS APPROVED BY FEDERAL RESERVE BANKS
D u r i n g A p r i l 1 9 7 5 , a p p l i c a t i o n s w e r e a p p r o v e d b y t h e F e d e r a l R e s e r v e B a n k s u n d e r d e l e g a t e d a u t h o r it y
as lis te d

b e lo w .

The

orders h a v e b een

p u b lis h e d in th e F e d e r a l R e g is t e r ,

are a v a ila b le u p o n r e q u e s t to th e R e s e r v e B a n k .




and

c o p ie s

o f th e o rd ers

L aw D epartm ent

333

ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT—
APPLICATION FOR FORMATION OF BANK HOLDING COMPANY
F ederal

A p p lic a n t
B a n k s h a r e s o f F lo r id a , I n c .,
H o lly w o o d , F lo r id a

B a n k (s)
F irst N a tio n a l B a n k o f

R eserve

E ffe c tiv e

R e g is te r

B ank

d a te

c ita tio n

A tla n ta

4 /2 8 /7 5

4 0 F .R .

19706

5 /6 /7 5

H o lly w o o d ; H o lly ­
w o o d N a tio n a l B a n k ;
F ir s t N a tio n a l B a n k
o f H a lla n d a le ; F ir st
N a tio n a l B a n k o f
M oore H aven ; and
F ir st N a tio n a l B a n k
o f M ir a m a r , a ll in
F lo r id a

ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK
F ederal

A p p lic a n t
C o u n try A g e n c ie s & I n v e st­
m e n ts , I n c ., O d e s sa ,

B a n k (s)
B an k o f O d essa ,

R eserve

E ffe c tiv e

R e g is te r

B ank

d a te

c ita tio n

K a n s a s C ity

4 /2 4 /7 5

4 0 F .R .

19541

5 /5 /7 5

O d e s s a , M is s o u r i

M is s o u r i
C o u n try A g e n c ie s & I n v e st­
m e n ts , I n c ., O d e s s a ,
M is s o u r i
F irst F in a n c ia l G r o u p o f
N ew

H a m p s h ir e , I n c .,

M a n ch ester, N e w

L a M o n te C o m m u n ity

K a n s a s C ity

4 /2 4 /7 5

4 0 F .R .

19541

5 /5 /7 5

B a n k , L a M o n te ,
M is s o u r i
C o lo n ia l T ru st

B o sto n

4 /2 2 /7 5

4 0 F .R .

19542

5 /5 /7 5

C o m p a n y , N a sh u a ,
N e w H a m p s h ir e

H a m p s h ir e
F ir s t N a tio n a l C h a r te r
C o r p o r a tio n , K a n s a s
C ity , M is s o u r i




T h e A urora B a n k ,
A u r o r a , M is s o u r i

K a n s a s C ity

4 /1 6 /7 5

4 0 F .R .

18600

4 /2 9 /7 5

335

Announcements
RESIGNATION OF MR. SHEEHAN
AS MEMBER OF THE BOARD OF
GOVERNORS
G overnor

John

E.

S h eehan ,

a

M em ber

of

th e

B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s ­
tem ,

has

announced

h is

B o a r d , e ffe c tiv e J u n e 1,
G overnor

S h e e h a n ’s

P r e sid e n t F o r d

and

r e s ig n a t io n

fr o m

th e

1975.
le t t e r

of

r e s ig n a tio n

t h e P r e s i d e n t ’ s le t t e r

c e p ta n c e fo llo w :
A p r il 1 5 ,

to

of ac­
1975

D e a r M r. P r e sid e n t:
P le a s e a c c e p t m y r e s ig n a t io n a s a M e m b e r
o f th e B o a r d o f G o v e r n o r s o f th e F e d e r a l
R e se r v e S y s te m , e ffe c tiv e J u n e 1, 1 9 7 5 , or
at s u c h e a r lie r d a te f o ll o w i n g y o u r r e c e ip t
o f t h i s le t t e r a s m a y s u i t y o u r c o n v e n i e n c e .
T h e c r itic a l r o le w h ic h th is c e n tr a l b a n k
p l a y s in t h e l i f e o f t h e N a t i o n c a n h a r d ly
b e o v e r s ta te d . T h u s , to s e r v e a s a M e m b e r
o f th is B o a r d is a u n iq u e ly s a t is f y in g p r iv i­
l e g e a n d e x p e r ie n c e . M y a p p r e c ia tio n o f th is
o p p o r tu n ity is th e g r e a te r fo r h a v in g s e r v e d
w ith
a s s o c ia te
m em b ers
p o s s e s s in g
th e
h ig h e s t s e n s e o f in t e g r it y a n d p u b lic d e d ic a ­
t io n .
In e x e c u t in g th e d u tie s a s s ig n e d to u s b y
th e C o n g r e s s , th is B o a r d e n j o y s th e s u p p o r t
o f a t r u ly b r i l l i a n t s t a f f u n m a t c h e d in m y
e x p e r ie n c e , a n d s a id b y in f o r m e d o b s e r v e r s
to b e th e fin e s t in g o v e r n m e n t. It h a s b e e n
a p le a s u r e to w o r k w ith th e m .
I n c l o s i n g , m a y I s u g g e s t th a t it m i g h t
b e o f b e n e fit to y o u if w e m e t b e fo r e I d e p a r t
W a s h in g t o n in o r d e r th a t I m ig h t s h a r e w it h
y o u s o m e o f th e im p r e s s io n s I h a v e g a in e d
in t h e s e y e a r s o f p u b l i c s e r v i c e .
S in c e r e ly y o u r s ,
s /J o h n E . S h e e h a n

F o r m o r e th a n th r e e y e a r s , y o u h a v e s e r v e d
th e B o a r d a n d o u r N a tio n w ith d e v o tio n a n d
d i s t i n c t i o n . I k n o w t h a t t h e r a p id a n d f u n d a ­
m e n ta l c h a n g e s in th e w o r ld e c o n o m y a n d
o u r o w n c o u n t r y ’s e c o n o m ic p r o b le m s , p a r ­
t i c u l a r l y d u r in g r e c e n t m o n t h s , h a v e m a d e
th e w o r k o f th e B o a r d e s p e c i a ll y d iffic u lt
a n d c h a lle n g in g . In a d d itio n , a s y o u u n d e r ­
s ta n d s o w e ll, th e u n iq u e r e s p o n s ib ilitie s o f
th e B o a r d w ith in o u r g o v e r n m e n ta l s y s t e m
r e q u ir e t h e v e r y b e s t i n t e r m s o f s o u n d
ju d g m e n t, in d e p e n d e n c e a n d s k ill fr o m s o m e
o f th e m o s t c a p a b le a n d d e d ic a te d in d iv id ­
u a ls in p u b lic s e r v ic e . Y o u h a v e fu lf ille d
e a c h o f t h e s e r e q u ir e m e n ts w it h a ra re b le n d
o f w is d o m , e n e r g y a n d e x p e r ie n c e , th er e b y
e a r n in g m y h ig h e s t e s t e e m a n d th e a d m ir a ­
tio n o f y o u r c o lle a g u e s .
N o w a s y o u r etu r n to p r iv a te l i f e , I h o p e
y o u w i ll a lw a y s lo o k b a c k w it h p r id e o n th e
c o n tr ib u tio n s y o u h a v e m a d e to a m o r e e ffi­
c ie n t a n d r e s p o n s ib le g o v e r n m e n t a n d to th e
im p r o v e d w e ll- b e in g o f a ll o u r f e l l o w c i t i ­
z e n s . It i s o n l y t h r o u g h t h e w i l l i n g n e s s o f
p e o p l e s u c h a s y o u t o s e r v e th a t o u r s y s t e m
c a n r e c e i v e it s n e e d e d b r e a d t h o f v i e w s a n d
ta le n ts .
Y o u m a y b e s u r e y o u ta k e w ith y o u m y
w a r m b e s t w is h e s fo r y o u r c o n tin u e d s u c c e s s
a n d h a p p in e s s .
S in c e r e ly ,
s /G e r a ld R . F o r d

CHANGE IN DISCOUNT RATE
T h e B o a r d o f G o v e r n o r s 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 r a l R e s e r v e B a n k s o f B o s t o n ,
N ew

Y ork,

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 ,

K an sas

C ity ,

and

D a lla s , r e d u c in g th e d is c o u n t r a te s o f t h o s e B a n k s
fr o m

6 V4

p er c e n t to

6

p er c e n t, e ffe c tiv e

M ay

1 6 . T h e B o a r d s u b s e q u e n tly a p p r o v e d s im ila r a c ­
tio n s b y th e d ir e c to r s o f th e F e d e r a l R e s e r v e B a n k s
o f S a n F r a n c is c o , e f f e c t iv e M a y 1 9 , a n d o f M in ­

T H E W H IT E H O U S E
A p r il 2 2 ,

n e a p o lis , e f f e c t iv e M a y 2 3 .
1975

T h e a c t i o n w a s t a k e n in r e c o g n i t i o n o f d e c l i n e s
th a t h a v e

D ea r Jack:

r a te i n t o
I h a v e y o u r le t t e r o f A p r i l 1 5 , a n d it i s w i t h
d e e p r e g r e t th a t I a c c e p t y o u r r e s ig n a t io n a s
a M e m b e r o f th e B o a r d o f G o v e r n o r s o f th e
F e d e r a l R e se r v e S y s te m , e ffe c tiv e J u n e 1,
1 9 7 5 , as y o u req u ested .




occu rred

r e c e n tly

in

o th e r

s h o r t-te r m

in t e r e s t r a t e s a n d i s i n t e n d e d t o b r i n g t h e d i s c o u n t
b e tte r

a lig n m e n t w ith

s h o r t-te r m

r a te s

g e n e r a lly .
T h e d is c o u n t r a te is th e in te r e s t r a te c h a r g e d
m e m b e r c o m m e r c ia l b a n k s w h e n th e y b o r r o w fr o m
t h e ir d i s t r i c t F e d e r a l R e s e r v e B a n k .

336

Federal R eserve B ulletin □ M ay 1975

PILOT SURVEY ON POSSIBLE
HOUSING DISCRIMINATION

The

A ct

U n ifo r m

r e q u ir e s

th a t c o n s u m e r s

D is c lo s u r e /S e ttle m e n t

be

g iv e n

t im e o f le n d e r c o m m it m e n t (b u t in n o
T h e B oard o f G overn ors on M ay 6 ,
a v a ila b le fo r p u b lic

1975, m ade

in s p e c tio n d a ta c o lle c t e d

in

c o n n e c tio n w ith a p ilo t s u r v e y o n p o s s ib le h o u s in g

tim e o f s e t tle m e n t in h o m e p u r c h a s e c r e d it tr a n s ­
a c tio n s .
T h i s s t a t e m e n t w i l l c o n t a i n a ll in f o r m a t i o n r e ­

T h e p u r p o se o f th e
if

c a s e le s s

th a n 1 2 d a y s b e fo r e s e t t le m e n t ) a n d a g a in at th e

d is c r im in a tio n .
d e te r m in e

a

S ta te m e n t at th e

su rvey

d is c r im in a t io n

w a s to

a ttem p t to

a g a in s t

q u ir e d t o b e d i s c l o s e d u n d e r t h e T r u t h in L e n d i n g

m in o r itie s

A c t. T h e F e d e r a l R e s e r v e B o a r d p r e p a r e d th is p art

o c c u r s in t h e g r a n t i n g o f c r e d i t f o r h o m e i m p r o v e ­

o f t h e s t a t e m e n t s i n c e it i s t h e r u l e - m a k i n g a g e n c y

m e n ts a n d h o m e m o r tg a g e s , a n d , if s o , w h e th e r

u n d e r th e T r u th in L e n d in g A c t .

t h is t y p e o f s u r v e y c o u l d i d e n t i f y a n d m e a s u r e it .

T he new

fo r m

is a c c o m p a n ie d b y in s tr u c tio n s

S u c h d is c r im in a t io n is fo r b id d e n b y th e 1 9 6 8 C iv il

f o r it s u s e . T h e f o r m

R ig h ts A c t.

th e U n if o r m D is c lo s u r e /S e ttle m e n t S ta te m e n t.

T h e d a ta are b a s e d

on

a f a ir h o u s i n g

su rv ey

c o n d u c t e d in s i x m e t r o p o l i t a n a r e a s f r o m J u n e
th r o u g h N o v e m b e r 3 0 ,
serve,

Federal
of

H om e

B ank

L oan

1 9 7 4 , b y th e F e d e r a l R e ­

D e p o s it

C o m p tr o lle r

th e

1

In su ra n ce

C urren cy,

th e

Federal

a q u e s tio n n a ir e

d e v e lo p e d b y th e F e d e r a l R e s e r v e a n d th e F D I C .
T h e s ix m e tr o p o lita n a r ea s c o v e r e d b y th e F e d ­
eral R e se r v e-F e d e ra l D e p o sit In su ra n ce C o rp o ra ­
tio n

su rvey

T a m p a -S t.
J ack son

in

w ere

B a ltim o r e ,

P e te r sb u r g ,

Jersey

C ity ,

G a lv e s to n -T e x a s

M is s is s ip p i,

and

C ity ,

V a lle jo -F a ir fie ld -

N a p a in C a l i f o r n i a .
The

T h e B o a r d a l s o p u b l i s h e d a n in t e r p r e t a t i o n o f
it s R e g u l a t i o n Z — T r u t h i n L e n d i n g — i n c o n n e c ­
t i o n w i t h t h e d i s c l o s u r e r e q u ir e m e n t .

EXTENDED SUSPENSION OF
SAME-DAY CREDIT RESTRICTION
FOR STOCKS
The

B oard

C o m p tr o lle r

of

th e

C u rren cy

and

in
th e

F e d e r a l H o m e L o a n B a n k B o a rd c o lle c te d s o m e ­
w h a t d iffe r e n t d a ta fo r th e o th e r 1 2 m e tr o p o lita n
areas su r v ey e d .

o f G overnors on

M ay

1,

1975, ex ­

t e n d e d u n t il S e p t e m b e r 3 0 a s u s p e n s i o n o f t h e r u le
th a t n o r m a lly a p p lie s to th e u s e o f th e s a m e -d a y
s u b s titu tio n
(S ee

E ig h te e n m e tr o p o lita n a r ea s w e r e s u r v e y e d
a ll.

t h e t h ir d p a g e o f

C o r p o r a tio n ,

and

B o a r d , u s in g

w ill b e

p r iv ile g e

N ovem ber

in

1974

s to c k

m a r g in

B u l l e t in , p .

a c c o u n ts.
8 0 2 .)

The

e x t e n s io n w ill a llo w tim e fo r fu rth e r c o n s id e r a t io n
by

th e

B oard

and

c o n s u lta tio n

w ith

in te r e s te d

p a r t ie s o f t h e i m p a c t o f t h e r u le o n m a r g i n c u s ­
to m e r s,

brokerage

fir m s ,

and

th e

sto c k

m arket

its e lf.

T h e s u r v e y d id n o t y ie ld d e fin itiv e e v id e n c e w ith
r e s p e c t to w h e th e r d is c r im in a t io n o c c u r s in r e s i­
d e n tia l le n d in g .
le s s e n e d

by

T h e u s e f u ln e s s o f th e d a ta w a s

th e lo w

le v e l

o f m o r tg a g e

a c tiv it y

d u r in g th e p e r io d o f th e s u r v e y .
The

d a ta

are

a v a ila b le

fo r

CHANGES IN
BOARD STAFF
T h e B o a r d 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 ­

in s p e c tio n

at

th e

B o a r d ’s o f f i c e s , a t t h e F e d e r a l R e s e r v e B a n k s , a n d
at th e F e d e r a 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 o f ­
f i c e in W a s h i n g t o n .

l o w i n g a p p o i n t m e n t s t o it s o f f i c i a l s ta f f :
J o h n D . H a w k e , J r ., P a r t n e r i n t h e W a s h i n g t o n ,
D . C . , l a w fir m o f A r n o l d a n d P o r t e r a n d a d j u n c t
p r o fe sso r o f
L aw

TRUTH IN LENDING
DISCLOSURE FORM

C e n te r ,

la w

at th e

as

G eneral

D iv is io n , e ffe c tiv e
r e c e iv e d

a

B .A .

L L .B . fr o m

T h e B oard o f G overn ors o n M ay

12,

1975, an­

G eo rg eto w n
C ou n sel

A p r il 2 8 ,
fr o m

Y a le

U n iv e r s it y

in

1975.

th e

L egal

M r. H a w k e

U n iv e r s ity

th e C o lu m b ia U n iv e r s it y

and

an

School of

L aw .

n o u n c e d t h e a d o p t i o n o f a T r u t h in L e n d i n g d i s ­

J a y P a u l B r e n n e m a n , L e g is la t iv e A n a ly s t, O f ­

c l o s u r e f o r m t o a s s i s t c o n s u m e r s in u n d e r s t a n d i n g

fic e o f M a n a g e m e n t a n d B u d g e t , a s S p e c ia l A s ­

th e c r e d it te r m s o f h o m e p u r c h a s e tr a n s a c tio n s .
The

new

fo r m

w ill

be

part

of

a

c o m b in e d

s is ta n t to th e B o a r d , e f f e c t iv e M a y 1 4 , 1 9 7 5 . M r .
B r e n n e m a n h o l d s a B . A . f r o m F r a n k lin a n d M a r ­

s e t tle m e n t a n d c r e d it c o s t fo r m d e v e lo p e d b y th e

s h a ll C o lle g e

D e p a r tm e n t o f H o u s in g a n d U rb a n D e v e lo p m e n t

o f T en n essee.

to im p le m e n t th e r e q u ir e m e n ts o f th e R e a l E s ta te
S e ttle m e n t P r o c e d u r e s A c t o f 1 9 7 4 .




B ru ce

M.

a n d a n M .A .

B e a r d s le y ,

fr o m

D ir e c to r

th e U n iv e r s ity

of

C o m p u tin g

S c ie n c e , D e p a r tm e n t o f th e T r e a s u r y , a s A s s o c ia te

Announcements

D ir e c to r o f th e D iv is io n o f D a ta P r o c e s s in g , e f ­
f e c t iv e J u n e 9 , 1 9 7 5 . M r. B e a r d s le y h o ld s a B .S .
fr o m

B r ig h a m

Y oung

U n iv e r s it y

and

has

a ls o

337

ASSETS AND LIABILITIES OF
LARGE COMMERCIAL BANKS,
1974— ERRATUM

ta k en g ra d u a te w o r k at U .C .L .A .
In a d d itio n , th e B o a r d a n n o u n c e d th e p r o m o tio n

F ig u r e s fo r to ta l lo a n s ( g r o s s ) a d ju s te d a n d to ta l

o f W illia m H . W a lla c e fr o m A s s is ta n t D ir e c to r to

l o a n s a n d i n v e s t m e n t s ( g r o s s ) a d j u s t e d s h o w n in

A s s o c i a t e D i r e c t o r in t h e D i v i s i o n o f F e d e r a l R e ­

t h e a d j u s t m e n t b a n k ( b o t t o m ) l i n e o f t h e t a b le th a t

s e r v e B a n k O p e r a tio n s , e f f e c t iv e M a y 2 5 ,

app eared o n p .

M r. W a lla c e

w ill a ssu m e

1975.

th e r e s p o n s ib ilitie s

of

—8 9 1

and

A - 8 2 o f t h e A p r il B u l l e t i n

— 1 ,2 1 1

s h o u ld

have been

—7 5 5

as
and

E . M a u r ic e M c W h ir te r w h o is o n e x t e n d e d le a v e .

— 1 ,0 7 5 , r e s p e c tiv e ly .

DATA SERIES ON
LOAN COMMITMENTS

ADMISSION OF STATE BANKS TO
MEMBERSHIP IN THE FEDERAL
RESERVE SYSTEM

T he new

s ta tis tic a l s e r ie s o n

lo a n

c o m m it m e n ts

a t s e l e c t e d l a r g e c o m m e r c i a l b a n k s ( s e e A p r il 1 9 7 5

T h e f o ll o w i n g b a n k s w e r e a d m itte d to m e m b e r s h ip

B u l l e t in , p p .

in th e F e d e r a l R e s e r v e S y s t e m d u r in g th e p e r io d

m o n th ly

b a s is .

2 2 6 -2 8 )
T h e G .2 1

is n o w

a v a ila b le

s ta tis tic a l r e le a s e

on

a

w ill

c o v e r b o th u n u s e d c o m m it m e n t s a n d o u ts ta n d in g
lo a n s u n d e r c o m m it m e n ts at 1 3 8 la r g e c o m m e r c ia l
b a n k s . T h e r e le a s e m a y b e o b ta in e d fr o 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 tr a tiv e

Serv­

ic e s , B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e
S y s te m , W a s h in g to n , D .C . 2 0 5 5 1 .




A p r il 1 6 , 1 9 7 5 , t h r o u g h M a y

15, 1975:

M ic h ig a n
S o u t h f i e l d ...............T h e D e t r o i t B a n k — S o u t h f i e l d
S o u th D a k o ta
S i o u x F a l l s ....................S u n B a n k o f S o u t h D a k o t a
V ir g in ia
R ic h m o n d .. .B a n k o f V ir g in ia T r u st C o m p a n y

339

Industrial Production
Released for publication May 15

b e e n c u r t a i l e d s h a r p l y f u r t h e r in e a r l y M a y . F o l ­
l o w i n g a r e d u c t i o n o f a f if t h s i n c e l a s t a u t u m n —
w h ic h r e s u lt e d in a s u b s ta n tia l lo w e r in g o f p r o ­

I n d u s t r ia l p r o d u c t i o n d e c l i n e d b y a n e s t i m a t e d 0 . 4

d u c e r s ’ in v e n t o r ie s — o u tp u t o f n o n d u r a b le m a t e r i­

p e r c e n t in A p r i l , l e s s t h a n t h e M a r c h d e c l i n e a n d

a l s l e v e l e d o f f in A p r i l . T e x t i l e p r o d u c t i o n , h o w ­

s u b s ta n t ia lly u n d e r th e sh a r p d r o p s o f la s t w in te r .

e v e r , in c r e a s e d fu rth e r.

T h e i n d e x d u r in g A p r i l w a s 1 0 9 . 4 p e r c e n t o f t h e
1 9 6 7 a v e r a g e a n d a b o u t 13 p er c e n t b e lo w
te m b e r

1974.

D u r in g

Sep­

INDUSTRIAL PRODUCTION
Seasonally adjusted, ratio scale, 1967=100
140

A p r i l a n u p t u r n in o u t p u t

o f c o n s u m e r g o o d s w a s o ff s e t b y fu rth er d e c lin e s
in b u s in e s s e q u ip m e n t ,
g o o d s m a t e r ia ls .
d e c lin e d b y

s te e l,

a n d o t h e r d u r a b le

(O n a r e v ise d

1 . 3 p e r c e n t in

b a s is , th e

M arch

in d e x

and 2 .2

per

c e n t in F e b r u a r y .)
C o n s u m e r g o o d s p r o d u c t io n r o s e

1 p e r c e n t in

A p r i l , r e f l e c t i n g m a i n l y a 1 3 p e r c e n t i n c r e a s e in
a u to s

and

som e

g a in

in

o u tp u t

of

n o n d u r a b le
1971

c o n s u m e r g o o d s . A u to a s s e m b lie s w e r e at a 6 .3
m i l l i o n u n it a n n u a l r a t e . O u t p u t e x c e e d e d s a l e s a n d
n e w -c a r s to c k s r o se b y a b o u t 5 p er c en t; p r o d u c ­
tio n in c r e a s e s p r e v io u s ly s c h e d u le d
fe w

m o n th s

b u s in e s s

are

b e in g

e q u ip m e n t,

s c a le d

a lr e a d y

" nondurable

fo r th e n e x t

dow n.
dow n

1973

_ CONSUMER GOODS:
DURABLE/

O u tp u t o f

11

per

cen t

s i n c e l a s t S e p t e m b e r , d e c l i n e d a b o u t IV2 p e r c e n t
fu r t h e r in A p r i l .
P r o d u c t i o n o f i n d u s t r ia l m a t e r i a l s w a s r e d u c e d
1 . 4 p e r c e n t f u r t h e r in A p r i l . D u r a b l e m a t e r i a l s ,
s u c h a s b a s ic m e ta ls a n d e q u ip m e n t p a r ts, e x p e r i­
1969

e n c e d a d d itio n a l c u tb a c k s in p r o d u c tio n a s in v e n ­
to r y liq u id a tio n c o n tin u e d . R a w

1971

1973

1975

1969

s te e l o u tp u t h a s

Seasonally adjusted
1967 = 100

Per cent
changes from—

1974
Month
ago

Feb.

M ar.p

1973

1975

Per cent changes, annual rate

1975

Industrial production

1971

F.R . ind exes, seasonally adjusted. Latest figures: April.
*Auto sales and stocks include imports.

1975

Year
ago

A pr.e

Q3

Q4

Ql

..........................................................

11 1 .2

1 0 9 .8

109.4

-.4

-1 2 .4

-.3

-1 3 .1

-3 2 .0

Products, total ..................................................
Final products ...............................................
Consumer goods ....................................
Durable goods ...................................
Nondurable goods ...........................
B usiness equipm ent .............................
Intermediate products ...............................
Construction products .........................

113.6
113.1
118.8
101.4
125.4
119.3
116.0
113.1

112.6
112.4
118.4
103.8
1 24.0
117.5
113.9
11 1 .6

112.8
112.5
119.6
106.4
124.6
115.9
113.8
111.4

.2
.1
1.0
2.5
.5
-1 .4
- .1
-.2

-8 .1
-6 .8
-6 .9
-1 8 .7
-2 .4
-9 .4
- 1 2 .1
-1 4 .8

.6
2 .0
0
-4 .5
2 .2
4 .0
-3 .7
-7 .7

-8 .7
-6 .5
-1 0 .8
-3 7 .0
-1 .2
- 2 .4
-1 5 .9
-2 1 .6

-2 3 .5
- 2 3 .2
- 2 1 .9
-5 2 .9
-1 0 .9
- 3 1 .7
- 2 3 .1
-2 4 .8

M aterials ..............................................................

10 7 .4

1 05.4

103.9

- 1 .4

- 1 9 .3

-.9

- 2 1 .5

-4 5 .7

T o ta l

pPreliminary.




^Estimated.

A 1

Financial and Business Statistics

CONTENTS
GUIDE TO TABULAR PRESENTA­
TION ON INSIDE BACK COVER
STATISTICAL RELEASES: REFER­
ENCE ON INSIDE BACK COVER
U.S. STATISTICS
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A

2 Member bank reserves, Federal
Reserve Bank credit, and related items
5 Federal funds—Money market banks
6 Reserve Bank interest rates
7 Reserve requirements
8 Maximum interest rates; margin
requirements
9 Open market account
10 Federal Reserve Banks
11 Bank debits
12 Money stock
13 Bank reserves; bank credit
14 Commercial banks, by classes
18 Weekly reporting banks
23 Business loans of banks
24 Demand deposit ownership
25 Loan sales by banks
25 Open market paper
26 Interest rates
29 Security markets
29 Stocfc market credit
30 Savings institutions




A
A
A
A
A
A
A
A
A
A
A

32
34
37
38
41
42
45
48
50
50
52

A
A
A
A

53
53
54
56

Federal finance
[/.S. Government securities
Federally sponsored credit agencies
Security issues
Business finance
Real estate credit
Consumer credit
Industrial production
Business activity
Construction
Labor force, employment,
unemployment
Consumer prices
Wholesale prices
National product and income
F/ow of funds
INTERNATIONAL STATISTICS:

A
A
A
A

58
59
59
60

A 61
A 74
A 75
A 75

(7. S. balance of payments
Foreign trade
I/. S. reserve assets
Gold reserves of central banks and
governments
International capital transactions of the
United States
Open market rates
Central bank rates
Foreign exchange rates

A 82 INDEX TO STATISTICAL TABLES

A 2

BANK RESERVES AND RELATED ITEMS □ MAY 1975
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In millions o f dollars)

Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date

U.S. Govt, securities1

Total

Bought
out­
right2

Held
under
repur­
chase
agree­
ment

Loans

Float3

83
170
652
1,117
1,665

Other
F.R.
assets4

Gold
stock
Total5

Special
Drawing
Rights
certificate
account

Treas­
ury
cur­
rency
out­
stand­
ing

Averages of daily figures

1939—D ec..
1941—D ec..
1945—D ec..
1950—D ec..
1960—D ec..

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

1969—D ec..
1970—D ec..
1971—D ec..
1972—D ec..
1973—D e c..

57,500
61,688
69,158
71,094
79,701

57,295
61,310
68,868
70,790
78,833

205
378
290
304
868

1,086
321
107
1,049
1,298

3,235
3,570
3,905
3,479
3,414

1974— A pr..
M ay.
June.
July..
Aug..
Sept..
Oct...
N ov..
D e c ..

81,567
83,434
82,812
84,313
84,493
84,384
83,735
84,052
86,679

80,873
82,037
81,859
83,496
84,221
84,049
83,303
83,395
85,202

694
1,397
953
817
272
335
432
657
1,477

1,714
2,580
3,000
3,308
3,351
3,287
1,793
1,285
703

1975—Jan.........
Feb.........
Mar........

86,039
84,744
84,847
87,080

85,369
83,843
84,398
86,117

670
901
449
963

A p r .p . ..

2,612
2,404
24,744
21,606
29,060

17,518
22,759
20,047
22,879
17,954

2,204
1,032
982
1,138
1,079

64,100
66,708
74,255
76,851
85,642

10,367
11,105
10,132
10,410
11,567

400
400
400
400

6,841
7,145
7,611
8,293
8,668

2,295
2,025
2,114
2,267
1,983
2,239
2,083
2,409
2,734

1,160
1,093
1,106
1,343
1,258
1,349
2,984
3,171
3,129

86,907
89,405
89,254
91,554
91,367
91,617
90,971
91,302
93,967

11 ,567
11 ,567
11 ,567
11 ,567
11 ,567
11 ,567
11 ,567
11 ,567
11 ,630

400
400
400
400
400
400
400
400
400

8,807
8,838
8,877
8,905
8,951
8,992
9,041
9,113
9,179

390
147
106
110

2,456
2,079
1,994
2,164

3,391
3,419
3,142
3,237

93,002
91,168
90,819
93,317

11 ,647
11 ,626
11 ,620
11 ,620

400
400
400
400

9,235
9,284
9,362
9,410

2,956
3,239
4,322
4,629
5,396

W eek ending—

1975—Feb.

5.
12 .
19.
26.

85,613
83,801
84,255
85,376

84,999
83,111
83,357
84,148

614
690
898
1,228

98
90
229
180

2,128
1,987
1,993
2,261

3,839
3,680
3,396
2,933

92,509
90,301
90,633
91,533

11 ,634
11 ,628
11 ,624
11 ,621

400
400
400
400

9,267
9,271
9,276
9,303

Mar.

5.
12 .
19.

85,505
82,658
83,345

1,298

26.

84,207
82,658
83,345

8 6,867

8 5 ,8 5 4

’ i i oi 3 *

70
60
167
155

1,666
2,098
1,993
1,685

3,071
3,085
3,217
3,197

91,159
88,571
89,381
92,719

11 ,621
11 ,620
11 ,620
11 ,620

400
400
400
400

9,352
9,341
9,344
9,386

2 ..
9 ..
1 6..
23*.
30p .

86,518
84,508
85,109
87,465
91,411

86,518
84,508
84,705
86,682
88,467

404
783
2,944

51
30
22
165
241

2,356
2,504
1,857
2,090
1,786

3,083
3,086
3,125
3,315
3,281

92,679
90,793
90,796
93,745
97,578

11 ,620
11 ,621
11 ,620
11 ,620
11 ,620

400
400
400
400
400

9,400
9,399
9,407
9,415
9,422

86,416
86,608
93,917

84,152
86,608
88,812

*5 ^105 ’

77
60
1,538

1,370
2,132
2,117

3,005
3,072
3,297

91,861
92,537
102,054

11 ,621
11 ,620
11 ,620

400
400
400

9,371
9,453
9,426

5.
12 .
19.
26.

83,909
86,154
83,976
86,886

83,909
83,741
83.976
84,121

89
117
1,126
834

5,302
2,387
3,339
2,357

4,665
3,580
2,984
2,740

94,632
93,180
92,061
93,696

11,,629
11,,625
n ; ,621
,621

400
400
400
400

9,270
9,275
9,281
9,334

Mar.

5.
12 .
18.
26..

83,282
80,626
83,955
88,078

83,282
80,626
83,955
85,991

2,087

58
87
854
813

2,561
2,306
2,637
2,163

3,156
3,170
3,161
3,139

89,733
86,856
91,262
95,221

11.,620
n : ,620
H i ,620
11 =,620

400
400
400
400

9,339
9,343
9,348
9,389

Apr.

2.
9.
16.
23.
30.

86,358
83,810
87,741
88,387
93,917

86,358
83,810
84,915
86.977
88,812

2,826
1,410
5,105

42
14
48
1,068
1,538

2,278
3,035
2,922
2,855
2,117

3,067
3,134
3,146
3,260
3,297

92,422
90,643
94,736
96,336
102,054

11.,621
H i ,620
11.,620
i i; ,620
i i; ,620

400
400
400
400
400

9,396
9,403
9,412
9,419
9,426

Apr.

E n d of month

1975—Feb.. .
Mar...
A p r^ .

2,264

Wednesday

1975—Feb.

2,413

'2,765'

1 Includes Federal agency issues held under repurchase agreements
beginning Dec. 1, 1966, and Federal agency issues bought outright be­
ginning Sept. 29, 1971.
2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S.
Govt, securities pledged with F.R. Banks, and excludes (if any), securities
sold and scheduled to be bought back under matched sale-purchase
transactions.
3 Beginning with 1960 reflects a minor change in concept; see Feb.
1961 B u lletin , p. 164.
4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R.
liabilities and capital” are shown separately; formerly, they were netted
together and reported as “Other F.R. accounts.”
5 Includes industrial loans and acceptances until Aug. 21, 1959, when
industrial loan program was discontinued. For holdings o f acceptances




on Wed. and end-of-month dates, see table on F.R. Banks on p. A-10.
See also note 3.
6 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in
full with F.R. Banks in connection with voluntary participation by non­
member institutions in the Federal Reserve System’s program o f credit
restraint.
As of Dec. 12, 1974, the amount of voluntary nonmember and foreign
agency and branch deposits at F.R. Banks that are associated with margi­
nal reserves are no longer reported. However, deposits voluntarily held
by agencies and branches o f foreign banks operating in the United States
as reserves and Euro-dollar liabilities are reported.
Notes continued on opposite page.

MAY 1975 □ BANK RESERVES AND RELATED ITEMS

A 3

MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued
(In millions o f dollars)

Factors absorbing reserve funds

Desposits, 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
408

616
592
625
615
522

53,591
57,013
61,060
66,060
71,646

656
427
453
350
323

72,176
72,876
73,749
74,556
74,709
75,098
75,654
77,029
78,951

Treas­
ury

For­
eign

Other
F.R.
ac­
counts 4

Other3, 6

Other
F.R.
lia­
bilities
and
capital4

Member bank
reserves
Period or date
With
F.R.
Banks

Cur­
rency
and
coin 7
Averages of daily figures

2,595

11,473
12,812
16,027
17,391
19,283

.1939—Dec.
.1941—Dec.
. 1945—Dec.
. 1950—D ec.
.1960—D ec.

4,960
5,340
5,676
6,095
6,635

28,031
29,265
31,329
31,353
35,068

.1969— b e e .
.1970— Dec.
.1971—Dec.
. 1972—Dec.
. 1973—Dec.

29,469
29,861
29,672
30,514
30,264
30,156
29,985
29,898
29,767

6,402
6,600
6,668
6,824
6,765
6,920
6,811
6,939
7,174

35,929
36,519
36,390
37,338
37,029
37,076
36,796
36,837
36,941

. 1974—Apr.
.............May
..............June
.............July
.............Aug.
.............Sept.
.............Oct.
.............N ov.
.............Dec.

3,264
3,358
3,076
3,137

29,713
28,503
27,948
28,367

7,779
7,062
6,831
6,878

37,492
35,565
34,779
35,245

, 1975—Jan.
............ Feb.
.............Mar.
.............Apr.*

848
634
612
703

3,741
3.342
3,162
3,239

29,543
28,573
28,304
27,920

7,431
7,456
6,814
6,686

36,974
36,029
35,118
34,606

340
309
332
376

988
923
994
843

3,238
2.952
3,006
3,088

27,845
27,186
27,883
28,333

6,950
7,296
6,627
6,486

34,795
34,482
34,510
34,819

.Mar. 5
......... 12
......... 19
........... 26

476
359
267
289
279

1,039
646
642
660
576

3,160
2.952
3,093
3,194
3.342

28,261
27,671
28,254
28,824
28,498

6,826
6,992
7,041
6,477
7,014

35,087
34,663
35,295
35,301
35,512

. Apr. 2
.............9
...........16
...........23*

248
292
493
739
1,029

11,473
12,812
16,027
17,391
16,688
2,192
2.265
2,287
2,362
2,942

23,071
23,925
25,653
24,830
28,352

702
699
691
773
831
766
869
770
874

2,985
3,168
3,187
3,216
3,240
3,345
3,260
3,149
3.266

336
317
363
307

884
711
958
718

2,634
1,492
1,960
3,489

342
270
364
300

255
258
272
294

2,845
590
386
3,424

307
309
318
306
300

2,826
1,919
976
3,523
7,902

739
1,531
1,247
920
250

353
495

1,194
849
1.926
1,449
1,892

146
145
290
272
406

458
735
728
631
717

308
286
293
275
283
303
315
302
220

1,712
3,000
2,015
2,795
2,633
2,451
1,601
864
1,741

328
320
491
296
326
456
294
370
357

77,780
76,979
77,692
78,377

221
236
277
309

2,087
2,374
1,887
3,532

r76,469
77,052
77,298
76,964

r250
239
234
240

77,022
77,715
77,874
77,767
78,030
78,355
78,672
78,384
78,123

W eek ending—

. 1975—Feb.

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

............30*
E n d of month

76,834
78,062
78,340

254
307
300

2,884
4,269
8,363

409
402
270

901
709
573

3,326
3,120
3,452

28,644
27,139
32,202

6,950
6,826
7,014

35,594
33,965
39,216

76,860
77,493
77,408
77,053

249
236
230
238

779
1,308
3,040
3,187

277
250
319
271

732
683
700
851

4,859
3,174
3,232
3,229

32,175
31,336
28,434
30,223

7,431
7,456
6,814
6,686

39.606
38,792
35,248
36,909

77,474
78,058
77,980
78,033

261
271
297
306

956

1,795
3,554

277
314
321
428

867
989
870
792

2,951
2,893
2,971
3,080

28,308
25,695
28.396
30,437

950
296
627
486

35,258
32,991
35,023
36,923

78,322
78,764
78,749
78,380
78,340

312
329
308
308
300

2,430
467
1,638
6,191
8,363

429
267
296
249
270

795
595
615
640
573

2,908
3,030
3,166
3,261
3,452

28,642
28,614
31.396
28,746
32,202

6,826
6,992
7,041
6,477
7,014

35,468
35.606
38,437
35,223
39,216

. 1975—Feb.
.............Mar.
.............Apr.*
W ednesday

«

7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning Jan. 1963, figures are estimated except for weekly
averages. Beginning Sept. 12, 1968, amount is based on close-of-business
figures for reserve period 2 weeks previous to report date.
8 Beginning with week ending Nov. 15, 1972, includes $450 million o f
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J




. 1975—Feb.

5
......................... 12
........................19
....................... 26
.Mar. 5
........... 12

.........19
.......... 26
.Apr. 2
............... 9
...........16
...........23*
...........30*

as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week o f quarter): Q l, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning
1974, Q l, $67 million, Q2, $58 million. Transition period ended after
second quarter, 1974.
For other notes see opposite page.




AND RELATED ITEMS □ MAY 1975
RESERVES AND BORROWINGS OF MEMBER BANKS
(In millions o f dollars)
All member banks
Reserves

Large banks 2

Borrowings

New York City

City of Chicago

Excess

Excess

Total
held i

Re­
quired

Excess1

11,473
12,812
16,027
17,391

6,462
9,422
14,536
16,364

5,011
3,390
1,491
1,027

3
5
334
142

2,611
989
48
125

19,283
22,719

18,527
22,267

756
452

87
454

29
41

25,260
27,221
28,031
29,265
31,329

24,915
26,766
27,774
28,993
31,164

345
455
257
272
165

238
765
1,086
321
107

31,353
35,068

31,134
34,806

219
262

1,049
1,298

41

35,929
36,519
36,390
37,338
37,029
37,076
36,796
36,837
36,941

35,771
36,325
36,259
37,161
36,851
36,885
36,705
36,579
36,602

158
194
131
177
178
191
91
258
339

1,714
2,580
3,000
3,308
3,351
3,287
1,793
1,285
703

102

-2 0

130
149
165
139
117
67
32

-2 6
45
-5 8
133
-4 9

37,492
35,565
34,779
35,245

37,556
35,333
34,513
35,008

-6 4
232
266
237

390
147
106

13

110

6

35,443
35,002
36,256
36,055

35,217
34,940
35,927
35,916

226
62
329
139

1,503
1,194
1,816
1,939

44
41
46
52

-1 2

36,995
36,479
36,812
36,769

36,672
36,335
36,785
36,459

323
144
27
310

1,125
1,097
1,367
1,479

36,961
36,293
36,762
36,845

36,678
36,452
36,545
36,416

283
-1 5 9
217
429

37,588
37,312
38,207
38,265
37,240

37,011
37,175
38,249
38,079
37,066

36,974
36,029
35,118
34,606

Total

Sea­
sonal

18

100
56
34
25

-2 0
19

Borrow­
ings

540
295
14

8

5

111

4
15

23

8

100

40
230
259
25
35

15
18
7

301 74

19

8

13
85
27
4

160
133

69
29

41

-5 8
-4
26
78
-7 7
36
90
39

987
939
799
848
860
792
569
566
323

70
131
89
125
152
115
122
138
163

-9 1
41
56
-3 5

87
29
28
38

162
143
137
111

-2 7

37

4

-1 2

710
663
1,093
1,233

127
67
175
35

30
29

105
40
-8 7
87

425
480
495
814

132
148
122
127

26
54

-1 6
-5 0
-3 9
89

450
281
417
333

154
100
174
151

69

223
-2 6
-8 9
45
-2 4

218
107
108
130
33

301
135
176
111
140

84
-5
-1 8
35

12
20

145
121
198
110

77
-7 3
78

34
108
107
69

-9
4
-1 9
70

78
70
64
63

54
-1 5
-1 6
69

68
188
465
243

32
-2 9

1,070
648
818
662

51
35
31
29

141
-1 7 3
59
137

226
73
60
72

4
-3 6
23
52

577
137
-4 2
186
174

561
311
609
594
142

24
18

83
36
317
328

61
-2 7

36,579
35,970
34,960
34,447

395
59
158
159

98
90
229
180

11
10
11
10

133
-3 7

6

-2 0
-2 2

-1 5

29

34,795
34,482
34,510
34,819

34,386
34,252
34,490
34,675

409
230

70
60
167
155

9
7

117

6

-9 6
54

4
15
-3 7
16

35,087
34,663
35,295
35,301
35,512

34,808
34,552
35,076
35,158
35,304

279

7

111

51
30

219
143
208

165
241

144

22

7

8
6
6
6

: ending Nov. 15, 1972, includes $450 million of
rtiich F.R. Banks are allowed to waive penalties
connection with bank adaptation to Regulation J
v. 9, 1972. Beginning 1973, allowable deficiencies
with first statement week o f quarter): Q l, $279
n; Q3, $112 million; Q4, $84 million. Beginning
Q2, $58 million. Transition period ended after
>r weeks for which figures are preliminary, figures
idd to the total because adjusted data by class are
!972, designation o f banks as reserve city banks

122

-3 0
62
25
-1 7
-1 7

88
8

42
67

105
270
479
264

22

14

140

50
90

429
761

-2 6

-8

623
330

-4 2
28

26

55
-1 3 0
29
71

228

55
28

16

12
12
10

67

13
43

-1 6
17

22

20

671
804
,011
663

42
-3 5

156
37

7

1
96
50

cess

8

1

-1 1 9
31
53
3

10

Borrow­
ings

267
250
177
189
174

-1 8
38
5

-8

132

Excess

1,188
1,303
418
232

192
58

114
772
1,303
1,457
1,464
1,662
502
257
80

20

50

-2 3

Borrow­
ings

Other

-8

19

6
20

20

8

27

1
1

20

51
70
23
17
36
14
18

10
10

189
53

101

-1 3
33

7
15
-1 4
17

-6

39

6

-1 2

6

90

44

25
37

-2 0
10
-1 2
99
-5 1
36
-4 1

6

15

71

10
19
36
58

8
7
4
77
71

for reserve-requirement purposes has been based on
demand deposits o f more than $400 million), as describ
for July 1972, p. 626. Categories shown here as “Large
parallel the previous “Reserve city” and “Country” cate;
(hence the series are continuous over time).
N o t e . — Monthly and weekly data are averages o f d
the month or week, respectively.
Borrowings a t F.R. Banks: Based on closing figures.
Effective Apr. 19, 1963, the Board’s Regulation A, w
ing by F.R. Banks, was revised to assist smaller mem
the seasonal borrowing needs of their communities.

198
113
143
86
203
85
172
99
142
s o f hi
a the E
id “ Al
es, resi

MAY 1975 □ MONEY MARKET BANKS

A 5

BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions o f dollars, except as noted)
Interbank Federal funds transactions

Basic reserve position

Less—
Reporting banks
and
week ending—

Excess
Bor­
re­
serves 1 rowings
at F.R.
Banks

Gross transactions

N e t-

Net
inter­
bank
Federal
funds
trans.

Per cent
of
Surplus
avg.
or
deficit required
reserves

Pur­
chases

Sales

Related transactions with
U.S. Govt, securities dealers

Net transactions
Total
two-way
trans­
actions 2

Pur­
chases
o f net
buying
banks

Sales
o f net
selling
banks

Loans
to
dealers3

Bor­
row­
ings
from
dealers4

Net
loans

Total— 46 banks
1975— M a r.

A p r.

5 ............
12............
19............
2 6 ...........

128
225
-3 8
29

6
106
78

15,962
18,903
16,302
14,639

-15,834
-18,684
-16,446
-14,688

98.2
116.0
101.1
90.8

22,134
24,585
21,491
21,345

6,172
5,682
5,189
6,706

5,203
5,337
4,708
5,373

16,931
19,248
16,782
15,972

969
345
480
1,333

3.120
4,717
4,614
3,233

765
824
608
710

2,355
3,893
4,006
2,523

2 ...........
9 ...........
16...........
2 3 ...........
3 0 ...........

100
72
68
11
69

4
83
142

14,360
17,178
16,414
14,411
9,755

-14,260
-17,106
-16,350
-14,483
-9 ,8 2 7

87.3
105.7
98.8
88.3
60.2

21,992
23,124
22,696
20,699
17,254

7,631
5,946
6,282
6,288
7,499

6,068
5,304
5,779
5,149
5,192

15,924
17,820
16,917
15,550
12,062

1,563
641
503
1,139
2,307

3,700
3,674
3.577
2.577
2.120

526
552
635
442
1,363

3,175
3,122
2,942
2,135
757

8 in New York City
1975— M a r.

A p r.

5 ............
12...........
19 ...........
2 6 ...........

74
178
-3 5
20

6,080
7,566
5,425
4,678

- 6 ,0 0 6
-7 ,3 8 7
- 5 ,5 4 8
- 4 ,6 6 4

90.0
109.2
81.6
69.7

6,867
8,379
6,395
6,170

786
813
971
1,492

786
814
874
1,363

6,081
7,566
5,522
4,807

97
129

1,466
2,123
1,958
1,650

462
555
410
342

1,004
1,568
1,548
1,308

2 ...........
9 ...........
16............
2 3 ...........
3 0 ...........

-7
37
35
1
-3

4,635
5,753
5,060
3,555
1,687

-4 ,6 4 3
-5 ,7 1 6
- 5 ,0 2 5
-3 ,5 9 0
- 1 ,7 5 7

68.5
84.5
72.9
52.5
26.1

6,434
6,612
6,744
5,473
3,932

1,798
859
1,684
1,918
2,245

1,472
854
1,361
1,286
1,616

4,962
5,757
5,384
4,187
2,317

327
4
324
632
630

1,745
1,436
1,492
1,243
995

304
362
308
295
393

1,441
1,074
1,184
948
602

38 outside
New York City
1975— M a r.

5 ...........
12............
1 9 ...........
2 6 ............

54
47
-3
9

9,882
11,338
10,877
9,961

-9 ,8 2 8
-11,297
-10,899
-10,024

104.0
120.9
115.1
105.6

15,267
16,206
15,095
15,174

5,385
4,868
4,218
5,213

4,417
4,524
3,835
4,009

10,850
11,682
11,261
11,165

969
345
384
1,204

1,654
2,593
2,656
1,583

304
269
198
368

1,351
2,325
2,458
1,215

A p r.

2 ...........
9 ...........
16...........
23............
3 0 ...........

108
35
33
10
72

9,725
11,425
11,354
10,856
8,068

-9 ,6 1 7
-11,390
-11,326
-10,893
-8 ,0 7 0

100.6
120.8
117.2
113.9
84.2

15,558
16,512
15,952
15,226
13,322

5,833
5,088
4,598
4,371
5,254

4,596
4,450
4,419
3,864
3,577

10,962
12,062
11,533
11,363
9,745

1,237
637
179
507
1,677

1,955
2,237
2,085
1,334
1,126

221
190
326
147
970

1,733
2,047
1,759
1,187
155

43

3,877
4,541
4.065
3,800

-3 ,8 6 6
-4 ,5 0 7
-4 ,089
-3 ,8 3 2

217.5
257.7
227.5
218.5

4,712
5,303
4,698
4,502

835
763
633
702

835
763
633
702

3,877
4,541
4.065
3,800

280
396
519
354

280
396
519
354

36

3,587
4,334
4,026
4.065
3,532

-3 ,5 4 6
-4 ,3 0 5
-4 ,0 3 0
-4,051
-3 ,5 5 7

202.6
250.2
222.5
231.8
204.1

4,514
5,094
4,930
4,981
4,499

926
760
904
916
968

923
760
904
916
967

3,591
4,334
4,026
4.065
3,532

440
444
318
313
291

440
444
318
313
291

5 in City o f Chicago
1975— M a r.

5 ...........
12............
1 9 ...........
2 6 ...........

11
33
-2 4
10

A p r.

2 ...........
9 ...........
16...........
2 3 ...........
3 0 ...........

41
29
-4
14
11

33 others
1975— M a r.

5 ............
12............
19 ...........
2 6 ............

43
14
21
-1

6,005
6,797
6,812
6,161

-5 ,9 6 2
-6 ,7 8 9
-6 ,8 1 0
-6 ,1 9 2

77.7
89.4
88.7
80.0

10,555
10,903
10,397
10,672

4,551
4,106
3,585
4,511

3,582
3,761
3,202
3,307

6,973
7,142
7,196
7,365

969
345
384
1,204

1,375
2,198
2,137
1,228

304
269
198
368

1,071
1,929
1,940
861

A p r.

2 ...........
9 ...........
16...........
2 3 ...........
3 0 ...........

67
6
37
4
62

6,138
7,090
7,328
6,791
4,536

-6,071
-7 ,0 8 4
-7 ,2 9 6
-6 ,8 4 2
-4 ,5 1 3

77.7
91.9
92.9
87.5
57.6

11,045
11,418
11,022
10,245
8,823

4,907
4,327
3,515
3,454
4,287

3,673
3,689
3,515
2,947
2,609

7,371
7,728
7,507
7,298
6,213

1,233
637
179
507
1,677

1,514
1,794
1,767
1,021
835

221
190
326
147
970

1,293
1,604
1,440
874
-1 3 6

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 o f 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 o f 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 o f securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
N ote.—Weekly averages o f daily figures. For description of series
and back data, see Aug. 1964 B ulletin, pp. 944-74.

A 6

F.R. BANK INTEREST RATES □ MAY 1975
CURRENT RATES
(Per cent per annum)
Loans to member banks—
Under Sec. 10(b) 2

Loans to all others under
last par. Sec. 134

Under Secs. 13 and 13a1
Federal Reserve
Bank

Special rate3

Regular rate
Rate on
4/30/75

Effective
date

Previous
rate

Rate on
4/30/75

Effective
date

Previous
rate

Rate on
4/30/75

Effective
date 3

Previous
rate

Rate on
4/30/75

Effective
date

Previous
rate

614
614
614
614
614
614
614
614
614
614
614
614

3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75

634
634
634
634
634
634
634
634
634
634
634
634

634
634
634
634
634
634
634
634
634
634
634
634

3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75

714
714
714
71/4
71/4
71/4
714
714
714
71/4
714
714

8
8
8
8
8
8
8
8
8
8
8
8

3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75

8*4
8V4
81/2
8*4
8*4
81/2
8*4
8*4
8*4
8*4
8*4
8*4

9
9
9
9
9
9
9
9
9
9
9
9

3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75

9*4
9*4
9*4
9*4
9*4
9*4
9*4
9*4
9*4
9*4
9*4
9*4

Boston.....................
New York...............
Philadelphia...........
Cleveland................
Richmond...............
Atlanta....................
Chicago...................
St. L ouis.................
Minneapolis...........
Kansas C ity...........
D allas......................
San Francisco........

1 Discounts o f eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase.
2 Advances secured to the satisfaction o f the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the Section 13 rate.
SUM M ARY

OF

3 Applicable to special advances described in Section 201.2(e)(2) of
Regulation A.
4 Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof.

E A R L IE R

CHANGES

(Per cent per annum)
Range
(or level)—
All F.R.
Banks

F.R.
Bank

Jn effect Dec. 31, 1955

21/z

21/2

1956—Apr. 13.............
20.............
Aug. 24.............
31.............

2*4-3

234
23/4

1957— Aug.

3

Effective
date

9 .............
2 3
Nov. 15.............
Dec. 2 .............

1958—Jan. 22.............
2 4
Mar. 7 .............
1 3
21.............
Apr. 18........... .
May 9 .............
Aug. 15.............
Sept. 12.............
23.............
Oct. 24.............
Nov. 7 ........... .
1959—Mar.

6 ...........
16...........
May 29...........
June 12............
Sept. 11...........
18...........
1960—June 3...........
10...........
1 4
Aug. 12...........
Sept. 9 ...........
1963—July 17...........
26...........

23/4-3
2*4-3
3
-3 *4
3 Vi
3 -31/2

3

of

N.Y.

3
3
3
3 Vi

3
3

2*4-3

3

2 ^ -3
2V4-3

23,4

2V4-2V4

2V4
13/4-21/4
IV4
1 34-2

l % -2

2

2

- 2 i/i

2%
21/2-3
3
-3 %
3%
3*4-4

3

4
3 V i-4
3 V i-4
3 Vi
3 -3 %
3
3

-31/2
3 *4

Effective
date

21/4
21/4
2%
m
1%
1%
2
2
2
21/4
3
3
3 Vi
3 Vi

4
4
4

31/2

3*

3

31/2

1964—Nov. 24.
30.
1965—Dec.

6.
13.

1967—Apr.

31/2-4

4
4

5 i/i-6

1970—Nov. 11.
13.
16.
Dec. 1,
4.
11 .

534-6
534-6
534

3%

4
4

41/2
41/2
5

4.
8.

6

51/2-53/4

51/ 2- 53/4
5Vi

51/4-51/2
51/4
-5 14
5
434-5
434
43/4-5
5
5
5

51/4

Effective
date

N.Y.

41/2

1969—Apr.

8,
15.
19,
22 ,
29,
Feb. 13
19
July 16
23

of

4Vi
4 Vi

41/2-5
5
5 -5 Vi
5Vi
5 * 4 -5 %
51/4
5 14 - 51/2
51/2

1971—Jan.

F.R.
Bank

-4 Vi
41/2
4 - 41/2
4
4 - 41/2

7.
14.
Nov. 20.
27.
1968—Mar. 15.
22 .
Apr. 19.
26.
Aug. 16.
30.
Dec. 18.
20 .

N o te.—Rates under Secs. 13 and 13a (as described in table and notes
above). For data before 1956, see Banking and Monetary Statistics, 1943,
pp. 439-42, and Supplement to Section 12, p. 31.




Range
(or level)—
All F.R.
Banks

4
4
4 Vi

5%

51/2
5 Vi

51/4
5 Vi

51/2
6
6
6
534
53/4
53/4
51/2
5*4

51/4
51/4
551/4
5
5
434
5
5

1971—Nov. 11.....................
19.....................
Dec. 13.....................
1 7
24.....................
1973—Jan. 15.....................
Feb. 26.....................
Mar. 2 .....................
Apr. 23.....................
May 4 .....................
1 1 ...................
1 8
June 11.....................
1 5
July 2 .....................
Aug. 14.....................
2 3

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of

N .Y .

434-5
434

5
434

4V4-434

4
4%

4V4-434

41/4
5
5

-5V4
5*4

5V4-534

534

534-6

6
6
7

-61/4
61/4

5
51/4
5Vi
5Vi

534
6
6
6V4

7

6%
7

-71/4
71/4

7V4
71/4

1974— Apr. 25.....................
3 0 ....................
Dec. 9 .....................
1 6

7V4-8
734-8
734

734

1975—Jan.

71/ 4- 73/4
71/4

73/4
714
71/4

634-714

634

6 .....................
10.....................
2 4
Feb. 5 .....................
7 .....................
Mar. 1 0 ....................
14.....................

In effect, Apr. 30, 1975___

8

714-734

634
6 *4-634
61/4
61/4

8
734

f i

61/4
61/4

MAY 1975 □ RESERVE REQUIREMENTS

A 7

RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS
(Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.)
Net demand 2
Effective
date i

Time 3
(all classes o f banks)

Reserve city

Other

Other time

Savings
0-5
In effect
Jan. 1, 1963...........
1966—j uiy 14,21
Sept. 8 ,1 5 . . . .
1967—Mar. 2 .............
Mar. 16...........
1968—Jan. 1 1 ,1 8 ....
1969—Apr. 17...........
1970—Oct. 1...............

Over 5

0-5

Over 5

0-5

4

12

16%

17
17%

16%
17

12
12%

Over 5

4

4

3%
3

3%
3

5
6

12%
13
5

Beginning Nov. 9, 1972
Net demand 2,4

Time 3
Other time

Effective
date
0-2

2-10

10-100

100_4(X)

Over
400

Savings

Over 5 5, maturing in—
0-5
30-179
days

1972—Nov. 9 .............
Nov. 16...........

8

1973—j uiy 19.............
1974

10

12

« 16%
13

10%

12%

13%

18

Dec. 12...........

17%

7 3

7%

10

12

13

16%

In effect Apr. 30,1975

7%

10

12

13

16%

3

Present legal limits:
Net demand deposits, reserve city banks.
Net demand deposits, other banks..........
Time deposits................................................
1 When two dates are shown, the first applies to the change at reserve
city banks and the second to the change at country banks. For changes
prior to 1963 see Board’s Annual Reports.
2 (a) Demand deposits subject to reserve requirements are gross de­
mand deposits minus cash items in process o f collection and demand
balances due from domestic banks.
(b) Requirement schedules are graduated, and each deposit interval
applies to that part o f the deposits o f each bank.
(c) Since Oct. 16, 1969, member banks have been required under
Regulation M to maintain reserves against foreign branch deposits
computed on the basis o f net balances due from domestic offices to their
foreign branches and against foreign branch loans to U.S. residents.
Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident
have been excluded from computations, as have total loans o f a bank to
U.S. residents if not exceeding $ 1 million. Regulation D imposes a similar
reserve requirement on borrowings from foreign banks by domestic offices
o f a member bank. The reserve percentage applicable to each o f these
classifications is 8 per cent. The requirement was 10 per cent originally,
was increased to 20 per cent on Jan. 7,1971, and was reduced to the current
8 per cent effective June 21, 1973. Initially certain base amounts were
exempted in the computation o f the requirements, but effective Mar. 14,
1974, the last o f these reserve-free bases were eliminated. For details, see
Regulations D and M. See “Announcements” in Apr. 1975 B u l l et in ,
p. 260, concerning reduction in requirements to be effective May 22, 1975.
3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
For other notes see 2(b) and 2(c) above.
4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­
serve cities, and on the same date requirements for reserves against net
demand deposits o f member banks were restructured to provide that each




7 5

7 3

17%

1975—Feb. 1 3 ...........

180 days
and over

3

6

3

6

3

Minimum

Maximum

10
7
3

22
14
10

member bank will maintain reserves related to the size o f its net demand
deposits. The new reserve city designations are as follows: A bank having
net demand deposits o f more than $400 million is considered to have the
character o f business o f a reserve city bank, and the presence o f the head
office o f such a bank constitutes designation o f that place as a reserve
city. Cities in which there are F.R. Banks or branches are also
reserve cities. Any banks having net demand deposits o f $400 million or
less are considered to have the character o f business o f banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see Regulation D and appropriate sup­
plements and amendments.
5 A marginal reserve requirement was in effect between June 21, 1973,
and Dec. 11,1974, against increases in the aggregate of the following types
o f obligations: (a) outstanding time deposits o f $ 100,000 or more, (b)
outstanding funds obtained by the bank through issuance by a bank’s
affiliate o f obligations subject to existing reserve requirements on time
deposits, and (c) beginning July 12, 1973, funds from sales o f finance bills.
The requirement applied to balances above a specified base, but was not
applicable to banks having obligations o f these types aggregating less
than $10 million. For details, including percentages and maturity classifi­
cations, see “Announcements” in B u lletins for May, July, Sept., and
Dec. 1973 and Sept. and Nov. 1974.
6 The 16 Vi per cent requirement applied for one week, only to former
reserve city banks. For other banks, the 13 per cent requirement was
continued in this deposit interval.
7 See columns above for earliest effective date o f this rate.
N ote .—Required reserves must be held in the form o f deposits with
F.R. Banks or vault cash.

A 8

MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS o MAY 1975
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
Rates July 20, 1966—June 30, 1973

Rates beginning July 1, 1973

Effective date
T ype and size
o f deposit

July 20,
1966

Savings d e p o sits................
O th er tim e d ep o sits: 1
M ultiple m a tu rity : 2
30-89 d a y s ............
90 days to 1 y e a r .
1-2 y e a rs ..............
2 years o r m o r e ..
S ingle-m aturity:
Less th a n $100,000:
30 days to 1 yea r.
1-2 y e a rs ..............
2 years o r m o r e . .
$ 100,000 o r m o re :
30-59 d a y s ............
60-89 d a y s ............
90-179 d a y s ..........
180 days to 1 year
1 year or m o re -----

Sept. 26,
1966

Effective d ate

Apr. 19,
1968

Jan. 21,
1970

4

4%
5
5%

5

sy4

5

5Vi

5%

5V4

( 3)
( 3)
( 3)
( 3)
( 3)

51/2
51/z

5V2

5V4
6

I 61/4

1 F o r exceptions w ith respect to ce rtain foreign tim e dep o sits, see
B u l l e t i n fo r F eb. 1968, p. 167.
2 M u ltip le-m atu rity tim e deposits include deposits th a t are a u to m a ti­
cally renew able at m a tu rity w ith o u t a c tio n by the d ep o sito r and deposits
th a t are payable after w ritten n o tice o f w ithdraw al.
3 M axim um rates on all single-m aturity tim e deposits in d en o m in atio n s
o f $100,000 or m ore have been suspended. R ates th a t were effective
Jan . 21, 1970, and the d ates w hen they w ere suspended are:
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year o r m ore

6 % p er cent

6 Vi p er
6 y 4 p er
7
p er
7 i/i p er

Ju n e 24, 1970

cent
cent
cent
cent

M ay 16, 1973

R ates on m u ltip le-m atu rity tim e deposits in d en o m in atio n s o f $100,000
o r m ore w ere suspended July 16, 1973, w hen the d istin ctio n betw een
single- and m u ltip le-m atu rity deposits was elim inated.
4 Between July 1 and O ct. 31, 1973, there was no ceiling fo r certificates
m a turing in 4 years o r m ore w ith m in im u m d en o m in atio n s o f $1,000.
T he a m o u n t o f such certificates th a t a b a n k c o u ld issue was lim ited to
5 p er cent o f its to tal tim e and savings deposits. Sales in excess o f th a t

M A R G IN

T ype an d size
o f d ep o sit

July 1,
1973

Savings d e p o sits...........................
O th er tim e d ep o sits (m ultiplean d sin g le -m a tu rity ):1, 2
Less th a n $ 1 0 0 ,0 0 0 :
30-89 d a y s ............................
90 days to 1 y e a r................
l - 2 i/i y e a rs ...........................
2 Vi years o r m o r e ..............
M in im u m d en o m in atio n
o f $ 1 , 000 :
4 -6 y e a rs ...........................
6 years o r m o r e ..............
G o v ern m en tal u n its ...........
$ 100,000 o r m o r e ..................

Nov. 1,
1973

5
5%

Nov. 27,
1974

5
5%

6
61/2

6
6%

( 4)
( 5)

714
( 5)

(3)

(3)

R E Q U IR E M E N T S

F o r cred it extended u n d er R eg u latio n s T (b ro k ers an d dealers),
U (b an k s), an d G (o th ers th a n b ro k ers, dealers, o r ban k s)
O n m a rg in sto ck s

1937— N ov.
1945— F eb.
July
1946— J a n .
1947— F eb.
1949— M ar.
1951— Ja n .
1953— F eb.
1955— Ja n .
A pr.
1958— Jan .
A ug.
O ct.
1960— July
1962— July
1963— N ov.
1968— M ar.
Ju n e
1970— M ay
1971— D ec.
1972— N ov.
Effective Ja n .

1
5
5

21
1
30
17

20
4
23
16
5
16
28

10
6
11
8
6
6

1945— F eb.
July
1946— Jan .
1947— Jan .
1949— M ar.
1951— Ja n .
1953— Feb.
1955— Jan .
A pr.
1958— Jan .
A ug.
O ct.
1960— July
1962— July
1963— N o v .
1968— M ar.

O n co n v e rtib le b o n d s
O n sh o rt sales
(T )

Ju n e
1970—M ay
1971— D ec.
1972— N ov.
1 1974— Jan .
24
3, 1974.........................

4 ....................
4 .....................

40
50
75

50
50
75

3 1 .....................

100

100

75
50
75
50
60
70
50
70
90
70
50
70

75
50
75
50
60
70
50
70
90
70
50
70

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

22 ...................

70
80
65
55
65
50

50
60
50
50
50
50

70

80
65
55
65
50

N ote .— R egulations G , T, an d U , prescribed in accordance w ith th e Securities Exchange A ct o f 1934, lim it th e a m o u n t o f cred it
to pu rch ase an d ca rry m a rg in stocks th a t m ay be extended on securities as collateral by p rescrib in g a m ax im u m lo a n value, w hich is
a specified percentage o f th e m a rk e t value o f the co llateral a t th e tim e th e cred it is e x te n d e d ; m a rg in req u irem en ts are th e difference
betw een th e m a rk et value (100 p er cent) a n d th e m axim um lo a n value. T h e te rm m arg in stocks is defined in th e co rresp o n d in g reg u latio n .
R eg u latio n G an d special m arg in requirem ents fo r bo n d s convertible in to sto ck s w ere a d o p ted by th e B o ard o f G o v ern o rs effective
M ar. 11, 1968.




6
61/2

m

71/4
71/2

71/2

IV a

( 3)

(3)

N ote .— M ax im u m rates th a t m ay be p aid by m e m b er b an k s are e s ta b ­
lished by th e B o ard o f G o v ern o rs u n d er p ro v isio n s o f R eg u latio n Q ;
how ever, a m e m b er b a n k m ay n o t p ay a ra te in excess o f th e m ax im u m
rate p ay ab le by S tate b an k s o r tru s t co m p an ies o n like d ep o sits u n d er
the laws o f th e S tate in w hich th e m em b er b a n k is lo cated . B eginning
F eb. 1, 1936, m ax im u m rates th a t m ay be p a id b y n o n m e m b er in su red
co m m ercial b an k s, as estab lish ed by th e F D IC , h ave been th e sam e as
th o se in effect fo r m em b er b an k s.
F o r p rev io u s changes, see ea rlier issues o f th e B ulletin .

E nding
d ate

B eginning
date

6%

5
51/2

am o u n t were su bject to th e 6 Vi p e r cent ceiling th a t applies to tim e d e­
p o sits m a tu rin g in 2 Vi years o r m ore.
Effective N o v . 1, 1973, a ceiling ra te o f i y 4 p er cen t w as im p o sed on
certificates m a tu rin g in 4 years o r m o re w ith m in im u m d en o m in atio n s
o f $1,000. T h ere is n o lim itatio n o n th e am o u n t o f these certificates th a t
b an k s m ay issue.
5 P rio r to N o v . 27, 1974, n o d istin ctio n was m ad e betw een th e tim e
d eposits o f g o v ern m en tal u n its an d o f o th e r h o ld ers, in so far as R eg u la­
tio n Q ceilings o n rates p ayable were co n cern ed . Effective N o v . 27, 1974,
govern m en tal u nits w ere p e rm itte d to h o ld savings deposits an d co u ld
receive in terest rates o n tim e d ep o sits w ith d e n o m in atio n s u n d er $ 100,000
irrespective o f m atu rity , as h ig h as th e m ax im u m ra te p erm itted o n such
d eposits at any F ed erally insured d ep o sitary in stitu tio n .

(P er cent o f m a rk et value)
P eriod

I*

Dec. 23,
1974

MAY 1975 o OPEN MARKET ACCOUNT

A 9

TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions o f dollars)
Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
T reasu ry b ills 1

O th ers w ithin 1 y e a r 2

1-5 years

5 -1 0 years

O ver 10 years

P erio d
G ross
p u r­
chases

197
197
197
197
197

G ross R edem p­
sales
tions

11,074 5,2 1 4
8,8 9 6 3 ,6 4 2
8,522 6,4 6 7
15,517 4,1
11,660 5 ,8 3 0

0
1
2
3
4

1974— M a r..
A p r ..
M ay.
Ju n e.
J u ly ..
A u g ..
S e p t..
O c t...
N o v ..
D e c ..

664
1,237
737
614
988
1,652
717
547
1.422
973

1975— J a n ...
F e b ..
M a r..

341
357
760

G ross
p u r­
chases

2,1 6 0
1,064
2,545
3 ,405
4 ,5 5 0

566
49

848
1,338
789
579
797

5 ,4 3 0
4 ,6 7 2
- 1 ,4 0 5
-2 ,0 2 8
-6 9 7

112

2,563

109
172
26
34
53

- 2 ,6 6 3

273
426

65

200

53

6

148
85

-1 ,6 2 3
126

92
123

1,757
-1 2 6

78
53

-4 6 5

600
900
487

2,4 3 7
- 1 ,4 9 4

305
129
361

- 2 ,8 3 6
194

61
113
450

249

1 ,579
M atch ed
sale-purchase
tra n sa ctio n s
(U .S. G o v t,
securities)

1,057

R ed e m p ­
tio n s

G ross
p u r­
chases

G ro ss
sales

R ep u rc h ase
agreem ents
(U .S. G o v t,
securities)
G ross
p u r­
chases

G ro ss
p u r­
chases

G ro ss
sales

2 ,1 6 0
2 ,0 1 9
2 ,8 6 2
4 ,5 9 2
4,6 8 2

12,177
16,205
23,3 1 9
4 5 ,7 8 0
64,229

12,177
16,205
23,319
45,7 8 0
62,801

33,859
44,741
31,103
74,755
71,333

33,859
43 ,5 1 9
32,228
74 ,795
70,947

4 ,9 8 8
8 ,0 7 6
-3 1 2
8 ,6 1 0
1,984

1974— M ar..
A p r..
M ay .
June.
J u ly .,
A ug..,
S ept. ,
O c t...
N ov..,
D e c ..,

854
1,409
944
790
1,113
1,652
893
547
1,765
1,254

566
49

165
407

702

702
4,5 8 6
4 ,5 8 0
*'i i ,287
9,7 8 2
12,516
6,4 0 4
7,9 6 2

5 ,1 2 4
8 ,4 9 8
8 ,6 4 8
6 ,6 6 7
4 ,9 6 5
2 ,0 9 6
3,551
4 ,6 1 8

6

4 .5 8 6
4 ,5 8 0
2 .5 8 7
9,061
9 ,4 2 0
12,574
6 ,8 8 0
8 ,8 5 5

6,248
8 ,069
9 ,1 9 2
6 ,1 2 4
4 ,2 6 9
2 ,0 9 6
3,551
4,6 1 8
6 ,9 9 0
11,470

11,895

1,246
524
1,388
-9 1 1
-2 ,3 8 1
3,028
-9 6
- 1 ,6 8 4
1,647
-4 9 8

1975— J a n .. ,
F e b ...
M ar.

746
673
3.362

600
900
1,788

9 ,2 3 7
7,1 6 7
15,933

10,367
6 ,6 3 4
16,763

9 ,2 6 0
11,267
5,011

8,7 4 8
10,305
6 ,9 2 8

844
-2 5 8
332

954

204

211
850
565

1,110
273
426
945
460
156

786
1,063
238

1 B efore N ov. 1973 B u l l e t i n , included m atched sale -p u rc h ase tra n s ­
ac tio n s, w hich are now show n separately.
2 In clu d es special certificates ac q u ired w hen th e T reasury b orrow s
d ire ctly fro m the F ed eral R eserve, as follow s: Ju n e 1971, 955 ; Sept. 1972,
3 8 ; A ug. 1973, 351; Sept. 1973, 836; N ov. 1974, 131; M ar. 1975, 1,560.
C O N V E R T IB L E

F O R E IG N

P ou n d s
sterling

Belgian
francs

197 0 ...............................................
1 9 7 1 ...............................................
1972................................................
1973................................................

257
18
192
4

154
3
*
*

*
3
*

*
*
«
*

1974— F e b ....................................

32

20

2

*
*
*
*
*
*
*
*
*
*
*

*
*

*
*
*
*
*
*
*
*
*
*
*

2

*

*

*

M a r...................................
A p r....................................
M a y ..................................
J u n e ..................................
J u ly ...................................
A ug...................................
S ept...................................
O ct.....................................
N o v ...................................
D e c ....................................
1975— J a n .....................................




6
6
63
90

8
220
242
190
40

485
1,197
865
3,0 8 7
170
360

201
309
761
238
207

5
5
5
5

1

*
*

1

C an a d ian
dollars

*200

25

20

Sales o r
red em p ­
tio n s

26
74

R e p u r­
ch ase
agree­
m ents,
net

B ankers
acceptances,
net
N et
change3

-6
22
-9

-2

29
469

48
48
15
72
35
3
16

R e p u r­
chase
agree­
m ents

O u t­
rig h t

101
-8 8

370
239
322

511

185
33
424
-3 7 2
-2 7 0

16

121
59
40

331
360

369
142

174
188
103

376

-4 0 9
246
-3 4 7

210

150

212

-1 0 0

-1 2
-5

4 ,9 8 2
181
-1 4 5
-3 6
420

8,866
272
9 ,2 2 7
6 ,1 4 9

201

1,7 8 0
789
2 ,1 5 5
- 1 ,1 1 5
- 2,011
3 ,3 2 2
322
- 1 ,9 7 0
2 ,7 3 9
393

-1 3 6
39
-3 2 3

387
309
-1 3 6

223
— 89
142
-7 0
-2 0 7
187
-1 8 5
218

3 N et change in U .S. G o v t, securities, F ed eral agency oblig atio n s, an d
b a n k e rs’ acceptances.
N ote .— Sales, red em p tio n s, an d negative figures red u ce System h o ld ­
in g s; all o th e r figures increase such h o ld in g s. D eta ils m ay n o t ad d to
to tals because o f ro u n d in g .

C U R R E N C IE S H E L D BY F E D E R A L
(In m illions o f U .S. d o llar equivalent)

T o tal

E nd o f period

6,121

-i3 0
37

O u trig h t

5 ,2 1 4
3 ,6 4 2
6 ,4 6 7
4 ,8 8 0
5 ,830

100

1,940

F e d e ra l agency o b lig atio n s
N et
change
in U .S.
G o v t,
securi­
ties

150
250
87
205

100

-2 0 0

14

-102

93
311
167
129
196
25

22

945
460
156

G ro ss Exch. o r
sales m a tu rity
shifts

G ro ss
p u r­
chases

- 1 ,8 4 5
685
- 2 ,0 9 4
895
1,675

786
1,063
107

12.362
12,515
10,142
18,121
13,537

0
1
2
3
4

249
933
539
500
434

48
27

P erio d

197
197
197
197
197

G ro ss E xch. o r
sales m a tu rity
shifts

56

-2 ,8 6 7

1,110

G ro ss
p u r­
chases

204

211
850
565

G ro ss E xch. o r
sales m a tu rity
shifts

—3*483
- 6 ,4 6 2
2,933
-1 4 0
-1 ,3 1 4

165
407

954

G ro ss
sales

G ross
p u r­
chases

99
1,036
125
1,396
450

100

T o tal o u trig h t 1

G ro ss
p u r­
chases

E xch.,
G ross m a tu rity
sales sh ifts, o r
redem p­
tions

F ren ch
francs

G erm an
m ark s

98

2

164
*

Ita lia n
lire

RESERVE

Jap an ese
yen

1

1

1

*
*
57
84

6

39
61

8

38

M exico
pesos

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

10

BANKS

N e th e r­
lands
guilders

Swiss
francs

*

4

20

8
6
3

180
180
180

A 10

FEDERAL RESERVE BANKS □ MAY 1975
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday
Item

End of month

1975
Apr. 30

Gold certificate account....................................
Special Drawing Rights certificate account.

11,620
400

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:
B ills..............................
Certificates—Special.
O ther..
N otes...........................
Bonds......................... .
Total bought outright.......................
Held under repurchase agreements.

Apr. 23

Apr. 16

1975
Apr. 9

Apr. 2

11,620
400

11,620
400

11,620
400

11,621
400

Apr. 30

1974

Mar. 31

11,620
400

11,620
400

Apr. 30

11,460
400

347

341

344

332

342

347

352

234

1,538

1,068

48

14

42

1,538

60

1,747

689
496

650
116

643
236

649
1

677

689
496

665

81
135

5,18
882

5,189
288

5,189
410

5,189

5,189

5,189
882

5,190

2,436
218

37,222

35,918

34,395

33,290

35,838

37,222

36,087

37,181

42,488
3,913

42,067
3,803

41,583
3,748

41,583
3,748

41,583
3,748

42,488
3,913

41,583
3,748

39,128
3,004

183,623
4,223

181,788
1,122

179,726
2,416

178,621

181,169

183,623
4,223

181,418

179,313
694

Total U.S. Govt, securities.

87,846

82,910

82,142

78,621

81,169

87,846

81,418

80,007

Total loans and securities.....................
Cash items in process o f collection. . .
Bank premises.........................................
Operating equipment..............................
Other assets:
Denominated in foreign currencies.
All other...............................................

96,640
*7,209
277
2

90,221
*8,286
278
2

88,668
9,192
278
2

84,474
7,890
276
2

87,077
7,649
276
2

96,640
*7,209
277
2

87,333
5,588
275
2

84,624
8,502
231

2
3,016

22
2,958

2
2,864

12
2,844

2
2,787

2
3,016

19
2,776

6
1,076

*119,513

*114,128

113,370

107,850

110,156

*119,513

108,365

106,533

69,581

69,561

69,270

63,816

28,614
467
267

28,642
2,430
429

*32,202
8,363
270

27,139
4,269
402

28,795
2,813
517

Total assets.
Liabilities
F.R. notes...............................................
D eposits:
Member bank reserves....................
U.S. Treasury—General account.
Foreign...............................................
Other:
All other2 ......................................

69,561

69,610

69,989

*32,202
8,363
270

*28,746
6,191
249

31,396
1,638
296

573

640

615

595

795

573

709

697

Total deposits.

*>41,408

*35,826

33,945

29,943

32,296

*41,408

32,519

32,822

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

5,092
1,192

5,431
1,112

6,270
1,121

4,855
1,086

5,371
1,070

5,092
1,192

3,456
1,012

6,766
1,087

Total liabilities............................................

*117,253

*111,979

111,325

105,906

108,318

*117,253

106,257

104,491

Capital paid in .....................................................................
Surplus...................................................................................
Other capital accounts.......................................................

906
897
457

907
897
345

906
897
242

903
897
144

903
897
38

906
897
457

903
897
308

874
844
324

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

*119,513

*114,128

113,370

107,850

110,156

*119,513

108,365

106,533

Contingent liability on acceptances purchased for
foreign correspondents...................................................
Marketable U.S. Govt, securities held in custody for
foreign and international accounts..............................

2

6

20

24

34

2

37

700

38,174

38,894

40,137

38,698

37,824

38,174

••37,974

27,349

Capital accounts

Federal Reserve Notes—Federal Reserve Agents* Accounts

Collateral held against notes outstanding:
Gold certificate account..................................................
Special Drawing Rights certificate account...............

1 See note 2 on p. A-2.
2 See note 6 on p. A-2.




74,871

74,913

74,916

74,687

74,548

74,871

74,473

68,018

2,587
138

3,337
138

3,337
138

3,492
138

3,809
138

2,587
138

3,809
138

2,150

73,930

73,080

72,955

72,830

72,477

73,930

72,277

67,195

76,655

76,555

76,430

76,460

76,424

76,655

76,224

69,345

MAY 1975 a FEDERAL RESERVE BANKS; BANK DEBITS

A 11

MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday

End o f month

1975

Item

16—90 days..........................................................................
91 days to 1 year..............................................................
Acceptances—T otal.............................................................

Federal agency obligations—T otal..................................
Within 15 days1...............................................................
91 days to 1 year..............................................................
1-5 years............................................................................
5-10 years..........................................................................
Over 10 years....................................................................

1975

1974

Apr. 30

Apr. 23

Apr. 16

Apr. 9

Apr. 2

Apr. 30

Mar. 31

Apr. 30

1,538
1,536
2

1,068
1,068

46
46

14
7
7

41
35
6

1 ,538
1 ,536
2

59
58
1

1,747
1,709
38

1,185
594
366
225

766
227
359
180

879
363
355
161

650
94
399
157

677
103
414
160

1 ,185
594
366
225

665
111
139
415

216
150
63
3

87,846
13,679
17,837
21,009
21,772
10,759
2,790

82,910
5,962
21,199
20,919
21,496
10,653
2,681

82,142
5,357
21,502
20,884
21,288
10,485
2,626

78,621
2,636
20,950
20,636
21 ,288
10,485
2,626

81,169
5,050
21,379
20,341
21,288
10,485
2,626

87,846
13,679
17,837
21,009
21 ,772
10,759
2,790

81,418
3,771
22,146
21,102
21,288
10,485
2,626

80,007
5,327
19,917
22,589
22,516
7,836
1,822

6,071
926
192
616
2,567
1 ,209
561

5,477
331
192
617
2,567
1,209
561

5,599
455
191
603
2,580
1,209
561

5,189
2
234
603
2,580
1,209
561

5,189

6,071
926
192
616
2,567
1,209
561

5,190
6
189
643
2,580
1 ,211
561

2,654
218
119
260
978
723
356

236
603
2,580
1 ,209
561

i
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 accounts1
(billions o f dollars)

Turnover o f demand deposits

Period
Leading SMSA’s
N.Y.

6 others2

Total 232
SMSA’s
(excl.
N .Y .)

1974—Mar................................. r2 0 ,165.1
20,062.3
M ay................................ 20,564.7
20,457.3
June..............................
July................................. 20,899.6
Aug................................. *•21,481.7
Sept................................. 22,017.5
22,348.8
N ov................................. 22,918.7
D ec.................................. 22,192.4

8,914.4
8,637.9
8,970.1
9,065.7
9 ,1 4 0 .4
9,2 4 0 .8
9 ,9 7 0 .8
10,271.1
10,538.9
9 ,9 3 1 .8

4,718.0
4,747.6
4,820.8
4,76 8 .0
4,892.1
5 ,1 7 3 .0
5,092.1
5 ,084.7
5 ,160.2
5 ,152.7

rl 1,250.7
11,424.3
11,594.6
11,391.6
11,759.2
'12,241.0
12,046.7
12,077.6
12,379.8
12,260.6

''6,532.8
6,676.7
6,773.8
6,623.6
6,867.1
’'7,068.0
6,954.7
6,9 9 3 .0
7 ,219.6
7 ,107.9

118.3
115.4
117.1
116.9
119.8
123.4
125.1
127.0
131.8
128.0

292.5
274.6
275.3
279.9
282.1
286.4
310.5
316.8
324.6
312.8

120.8
119.7
122.3
120.0
123.5
132.0
127.5
127.3
131.5
131.8

80.3
80.2
81.1
79.8
82.8
86.3
r83.8
84.1
87.5
86.6

64.7
65.0
65.4
64.3
67.0
r68.9
66.9
67.5
70.6
69.3

1975—Jan................................... '21,856.3
Feb..........................
r22,952.7
Mar................................. 2 2,121.4

10,157.8
10,918.0
10,241.1

4 ,8 6 8 .4
>•4,992.8
4 ,848.2

rl l ,698.4
r12,034.7
11,880.2

r6 ,8 3 0 .1
r7,041.9
7,0 3 2 .0

127.2
133.3
124.6

321.8
343.2
318.3

125.9
127.4
116.9

83.4
85.8
81.7

67.3
69.6
67.7

Total
233
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.




Leading SMSA’s
226
other
SMSA’s

Total
233
SMSA’s

N.Y.

6 others2

Total 232
SMSA’s
(excl.
N .Y .)

226
other
SMSA’s

N ote .—Total SMSA’s include some cities and counties not designated
as SMSA’s.
For back data see pp. 634-35 of July 1972 B u l l et in .

MONEY STOCK a MAY 1975

A 12

MEASURES OF THE MONEY STOCK
(In billions of dollars)
Seasonally adjusted
Period
, Mi

Mo

N ot seasonally adjusted
Mt

Ma

Mi

Ms

m

2

Mi

Mi

Mi

Composition o f measures is described in the N ote below.
1972—Dec.
1973—Dec.

255.8
271.5

525.7
572.2

844.9
919.6

569.7
636.0

983.4

263.0
279.1

530.7
577.3

848.0
922.8

574.9
641.3

892.2
986.8

1974—Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

275.2
276.6
277.6
280.0
280.5
280.7
281.1
282.2
283.8
284.3

585.5
589.4
591.6
597.1
599.7
602.2
603.8
608.1
613.0
614.3

940.0
945.9
948.8
955.9
959.9
963.0
965.5
971.2
978.3
982.5

653.4
663.3
670.2
678.5
683.3
686.0
688.7
694.3
698.5
704.6

1007.9
1019.8
1027.3
1037.2
1043.5
1046.7
1050.3
1057.4
1063.8
1072.8

272.5
278.2
272.9
278.2
280.1
277.5
279.4
281.7
285.3
292.2

584.9
593.5
589.7
596.6
599.3
598.7
600.7
606.3
611.1
619.4

941.1
952.2
948.3
957.4
961.2
958.9
961.2
968.0
974.2
985.8

651.5
665.3
666.9
676.2
682.1
685.8
689.4
695.1
698.2
709.8

1007.7
1024.0
1025.5
1037.0
1044.0
1046.0
1049.9
1056.7
1061.2
1076.3

1975—Jan..
Feb.
Mar.

282.2
283.8
286.8

'616.2
r621.1
627.4

r987.7
r996.3
1007.8

708.9
713.2
717.2

1080.4
1088.4
1097.6

289.3
280.8
284.0

r622.1
*■618.7
626.9

"993.1
'994.1
1008.7

714.0
707.9
715.0

1085.0
r1083.3
1096.8

N ote .—Composition o f the money stock measures is as follows:
M i: Averages of daily figures for (1) demand deposits o f commercial

banks other than domestic interbank and U.S. Govt., less cash items in
process o f collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
: Averages o f daily figures for Mi plus savings deposits, time de­
posits open account, and time certificates other than negotiable C D ’s of
$100,000 o f large weekly reporting banks.

M *: M i plus mutual savings bank deposits, savings and loan shares, and
credit union shares (nonbank thrift).
M 4: M 2 plus large negotiable C D ’s.
M 5: M z plus large negotiable C D ’s.
For a description o f the latest revisions in M t, M 2, and M a, see “Revi­
sion of Money Stock Measures and Member Bank Reserves and Deposits”
on pp. 817-27 of the Dec. 1974 B u l l e t i n .
Latest monthly and weekly figures are available from the Board’s H .6
release. Back data are available from the Banking Section, Division of
Research and Statistics.

COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions o f dollars)
Not seasonally adjusted

Seasonally adjusted

Commercial banks

Commercial banks
Time and savings
deposits

Period
Cur­
ren­
cy

De­
mand
de­
pos­
its

CD’s 1

Other

Total

Non­
bank
thrift
insti­
tu­
tions2

Cur­
ren­
cy

Demand deposits

Time and savings
deposits

Total

Mem­
ber

D o­
mes­
tic
nonmem­
ber

CD’s 1

Other

Total

Non­
bank
thrift
insti­
tu­
tions2

U.S.
Govt.
de­
pos­
its3

1972—D ec.................
1973—Dec.................

56.9
61.6

198.9
209.9

43.9
63.8

269.9
300.7

313.8
364.5

319.1
347.4

57.9
62.7

205.1
216.4

152.4
157.0

51.4
56.6

44.2
64 .0

267.6
298.2

311.8
362.2

317.3
345.6

7 .4
6.3

1974—Mar................
Apr.................
M ay...............
June...............
July................
Aug................
Sept................
Oct..................
N ov................
D ec.................

63.3
63.9
64.3
64.6
64.8
65.5
65.9
66.5
67.3
67.8

211.9
212.8
213.3
215.4
215.7
215.3
215.3
215.7
216.5
216.6

68.0
73.9
78.5
81.3
83.6
83.8
84.8
86.2
85.5
90.3

310.3
312.7
314.0
317.1
319.2
321.5
322.7
325.9
329.2
330.0

378.3
386.7
392.5
398.4
402.8
405.2
407.5
412.1
414.7
420.3

354.5
356.5
357.1
358.8
360.2
360.7
361.6
363.1
365.3
368.3

62.7
63.5
64.1
64.8
65.3
65.7
65.8
66.4
67.8
68.9

209.8
214.7
208.8
213.5
214.8
211.9
213.6
215.3
217.5
223.3

152.3
155.8
151.3
153.6
154.4
152.3
153.3
154.4
155.9
160.3

54.7
56.2
54.8
56.1
56.6
56.3
57.0
57.7
58.4
59.7

66.7
71.8
77.2
79.6
82.8
87.1
88.7
88.8
87.1
90.5

312.4
315.3
316.7
318.3
319.2
321.1
321.3
324.6
325.8
327.2

379.1
387.1
393.9
397.9
402.0
408.2
410.1
413.3
412.9
417.6

356.2
358.7
358.7
360.8
361.9
360.3
360.5
361.7
363.0
366.5

6 .4
6 .0
7.6
6.1
5 .4
4 .0
5.5
3.7
3.3
4 .8

1975—Jan..................
Feb.................
Mar................

68.1
68.6
69.4

214.1
215.1
217.5

r92.7
r92.1
89.8

r334.0
r337.3
340.5

426.7
429.4
430.3

371.5
375.2
380.4

67.7
67.8
68.8

221.6
213.0
215.3

158.7
152.2
153.9

59.7
57.6
58.2

'91.9
'89.2
88.1

'332.8
'337.9
342.9

424.7
427.1
430.9

371.0
'375.4
381.8

4 .0
3.3
3.8

1 Negotiable time certificates o f deposit issued in denominations of
$100,000 or more by large weekly reporting commercial banks.
2 Average o f the beginning and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.




3At all commercial banks.
See also N ote above.

MAY 1975 o BANK RESERVES; BANK CREDIT

A 13

AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions o f dollars)
D ep o sits subject to reserve req u irem en ts 3

M em b er b a n k reserves, S .A . 1

S .A .
P erio d
T o ta l

N on­
b o r­
row ed

R e­
q uired

A v ail­
a b le 2

T o ta l m em b er
b a n k d ep o sits
plus n o n d ep o sit
ite m s 4

N .S .A .
D em an d

T o ta l

D em a n d

T im e
and
savings

P rivate

U .S.
G o v t.

T o tal

T im e
an d
savings

P riv ate

S .A .

1971— D ec........
1972— D e c .......
1973— D e c .......

31.33
3 1 .46
3 5 .1 6

3 1 .2 0
30.41
3 3 .87

31.15
31.17
34 .8 6

2 9 .0 3
2 9 .0 9
32 .9 7

3 6 0 .3
4 0 2 .0
4 4 2 .2

2 1 0 .7
2 4 2 .0
2 8 0 .0

143.8
154.5
158 .2

5 .8
5 .6
3 .9

3 6 4 .6
4 0 6 .8
4 4 7 .5

2 0 9 .7
2 4 0 .7
2 7 8 .5

1 4 9 .2
160.1
1 6 4 .0

1974— M a r .. . .
A p r........
M a y .. . .
J u n e___
J u ly .. . .
A u g .. . .
S ep t----O c t........
N o v .. . .
D e c .......

3 4 .9 8
35 .8 8
36 .5 2
3 6 .7 4
3 7 .4 0
3 7 .2 7
3 7 .2 8
3 6 .8 6
3 6 .8 7
36.91

'3 3 .6 7
34.15
3 3 .93
33.73
3 4 .1 0
33.93
3 4 .0 0
3 5 .0 4
35 .6 2
36 .1 8

r34.85
3 5 .7 0
3 6 .3 4
3 6 .5 4
3 7 .2 4
37 .0 8
3 7 .09
36.73
36.67
36.65

3 3 .13
33 .6 6
34 .2 6
34.71
34 .9 6
35 .2 7
3 5 .3 0
34 .8 9
34 .87
3 4 .64

4 5 0 .4
4 6 1 .2
'4 6 7 .1
4 7 2 .9
4 7 5 .7
478.5
4 8 0 .6
4 8 0 .5
4 8 3 .6
4 8 5 .9

2 8 8 .6
2 9 6 .6
302.3
30 7 .0
310.7
3 1 2 .4
3 1 4 .4
3 1 7 .2
3 1 8 .4
3 2 3 .4

158.7
1 6 0 .0
159.1
1 60.6
160.7
159.9
1 59.9
159.5
160.6
160.7

3 .2
4 .6
5 .6
5 .3
4 .2

4 5 0 .4
4 6 2 .5
4 6 4 .7
4 7 0 .0
4 7 4 .3
475.1
4 7 9 .7
4 8 0 .5
4 8 1 .2
4 9 1 .8

2 8 8 .6
2 9 6 .2
3 0 3 .0
3 0 6 .4
310.1
31 5 .3
3 1 7 .2
3 1 8 .6
3 1 7 .4
3 2 1 .7

156.9
161.5
155.6
158 .9
1 6 0 .0
1 5 7 .0
158.3
159.1
1 6 1 .4
1 66.6

4 .7
4 .1
2 .9
'4 . 2
2 .7
2 .4
3 .5

1975— Ja n . ,
F eb
M a r___

36.91
3 5 .4 6
34.85

36.51
3 5 .3 2
3 4 .7 4

3 6 .7 6
35.27
34.65

34.41
'3 3 .6 0
33.03

4 8 8 .2
4 8 9 .2
4 9 1 .6

328.5
328.9
3 2 9 .2

1 59.0
159.7
161.7

495.1
4 8 7 .0
4 9 1 .6

3 2 7 .2
3 2 6 .5
3 2 8 .9

1 6 5 .0
1 5 8 .0
1 59.8

2.8

1 A verages o f daily figures. M em b er b a n k reserve series reflects a c tu al
reserve req u irem en t percentages w ith n o ad ju stm en t to elim inate th e
effect o f changes in R eg u latio n s D a n d M . R eq u ired reserves w ere in ­
creased b y $660 m illion effective A p r. 16, 1969, an d $400 m illion effective
O ct. 16, 1969; w ere reduced by $500 m illion (net) effective O ct. 1, 1970.
R eq u ired reserves w ere reduced by ap proxim ately $2.5 billion, effective
N o v . 9, 1972; by $1.0 billion, effective N o v . 15; an d increased by $300
m illio n effective N ov. 22.
2 R eserves available to su p p o rt priv a te n o n b a n k deposits are defined
as ( 1) req u ired reserves fo r (a) p riv a te d em an d deposits, (b) to ta l tim e
a n d savings deposits, a n d (c) n o n d ep o sit sources subject to reserve re ­
qu ire m en ts, an d (2) excess reserves. T his series excludes req u ired reserves
fo r n et in te rb a n k an d U .S . G o v t, d em an d deposits.
3 A verages o f daily figures. D ep o sits subject to reserve req u irem en ts
in c lu d e to ta l tim e an d savings deposits and n et d em an d deposits as defined

6.2
6 .3
3 .7
4 .6
1 .9
.7

.6
.7

N .S .A .

U .S.
G o v t.
5 .7

6.1
5 .0
4 .9
4 .8

6.1

2 .9
2 .4

3 6 5 .2
4 0 6 .4
4 4 8 .7

3 6 9 .5
4 1 1 .2
4 5 4 .0

4 5 7 .9
4 6 9 .2
4 7 5 .8
4 8 1 .2
4 8 4 .9
4 8 7 .5
4 8 9 .2
4 8 8 .3
4 9 1 .2
4 9 4 .3

4 5 7 .9
4 7 0 .6
4 7 3 .5
4 7 8 .4
4 8 3 .5
4 8 4 .2
4 8 8 .2
4 8 8 .3
4 8 8 .8
500.1

4 9 5 .8
'4 9 5 .7
498 .1

5 0 2 .6
'4 9 3 .5
498.1

by R eg u latio n D . P riv ate d em an d d ep o sits in clude all d em an d d ep o sits
except th o se d ue to th e U .S . G o v t., less cash item s in process o f co llectio n
an d d em an d b alances due fro m d o m estic co m m ercial b an k s.
4 “ T o tal m em b er b a n k d e p o sits” subject to reserve req u irem en ts, p lu s
E u ro -d o lla r borro w in g s, lo an s so ld to b an k -relate d in stitu tio n s, an d
ce rtain o th e r n o n d ep o sit item s. T his series fo r d ep o sits is referred to as
“ the ad ju sted b a n k cred it p ro x y .”
N o te .— F o r d escrip tio n o f revised series an d fo r b ac k d a ta , see article
“ R evision o f M oney S to ck M easures an d M em b er B an k R eserves an d
D ep o sits” o n p p . 817-27 o f th e D ec. 1974 B u l l e t in .
D u e to changes in R eg u latio n s M an d D , m e m b er b a n k reserves in clu d e
reserves held ag ain st n o n d e p o sit fu n d s b eginning O ct. 16, 1969. B ack d a ta
m ay be o b ta in ed fro m th e B anking Section, D iv isio n o f R esea rc h an d
S tatistics, B o ard o f G o v ern o rs o f the F ed eral R eserve System , W a sh in g to n ,
D .C . 20551.

LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS
(In billions o f d ollars)
S easonally ad ju sted
Securities

L oans
T o ta l
loans
an d
in v e st­
m ents 1

D a te

T o ta l i

P lus
loans
sold 2

N o t seasonally ad ju sted

C om m ercial
an d in d u s tria l 3
T o tal

Plus
loans
so ld 2

U .S.
T re a s ­
ury

O th e r 4

L o an s
T o tal
loans
an d
invest­
m ents 1

T o ta l 1

P lus
loans
s o ld 2

S ecurities

C o m m ercial
an d in d u s tria l 3
T o ta l

Plus
lo an s
s o ld 2

120.2

U .S.
T re as­
u ry

O th e r 4

1971— D ec. 3 1 ____
1972— D ec. 3 1 ____
1973— D ec. 3 1 ____

4 8 4 .8
5 5 6 .4
6 3 0 .3

320.3
377.8
4 4 7 .3

323.1
3 8 0.4
4 5 1 .6

115.9
129.7
155.8

117.5
131.4
158.4

60.1
6 1 .9
5 2 .8

104.4
116.7
130.2

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

328.3
3 8 7 .3
4 5 8 .5

331.1
3 8 9 .9
4 6 2 .8

118.5
132.7
159.4

1 3 4 .4
1 6 2 .0

6 4 .9
6 7 .0
5 8 .3

104 .7
117.1
130.6

1974— A p r. 2 4 .........
Ju n e
Ju ly
A ug.
S ept.
O ct.
N o v.
D ec.

3 0 5 ....
3 1 ........
2 8 ........
2 5 ........
30 . . . .
2 7 6 ....
31 . . .

6 6 6.9
6 7 3 .4
6 7 7 .5
6 8 7 .5
6 9 3 .9
6 8 9 .9
6 9 0 .8
6 9 2 .5
6 8 7 .0

4 7 6 .3
4 8 1 .4
4 8 4 .5
4 9 4 .8
5 0 1 .5
5 0 0 .2
5 0 2 .0
5 0 3 .8
4 9 8 .2

4 8 1 .7
4 8 7 .1
4 8 9 .9
5 0 0 .2
5 0 6 .8
5 0 5 .5
5 0 7 .2
5 0 8 .7
5 0 3 .0

169.5
172.9
174.6
17 8 .0
1 8 1.0
181.4
183.2
184.3
1 8 2.6

172.6
1 76.0
177.5
180.9
183.9
184.2
1 8 6 .0
1 8 7 .0
185.3

57.1
5 7 .2
5 6 .4
5 5 .9
5 5 .3
5 2 .3
4 9 .8
49.1
4 8 .7

133.5
134.8
136.6
136 .8
137.1
1 3 7 .4
1 3 9 .0
1 3 9 .6
140.1

6 6 4 .2
6 6 9 .8
6 8 1 .6
6 8 6 .3
6 8 9 .4
6 8 9 .5
6 8 9 .5
6 9 2 .2
7 0 5 .5

4 7 3 .0
4 8 0 .3
4 9 1 .8
4 9 7 .2
5 0 0 .6
5 0 1 .2
5 0 0 .7
5 0 2 .0
5 1 0 .6

4 7 8 .4
4 8 5 .9
4 9 7 .2
5 0 2 .6
5 0 5 .9
5 0 6 .5
5 0 5 .9
5 0 6 .9
5 1 5 .4

170.2
172.3
177.2
1 7 8 .4
1 7 9 .4
181.5
1 8 2 .0
1 8 3 .2
1 8 6 .8

173.3
1 75.4
180.1
1 81.3
1 8 2 .3
1 84.3
1 8 4 .8
1 8 5 .9
1 89.5

5 6 .4
5 4.1
52 .1
5 2 .2
5 2 .0
5 0 .7
5 0 .7
52.1
5 4 .4

1 3 4 .7
135.5
137.6
1 3 6 .9
13 6 .8
1 3 7 .6
138.1
138.1
140 .5

1975— Jan .
F eb.
M ar.
A p r.

2 9 * \ ...
2 6 ? ....
263\ . . .
3 0 * \...

6 8 9 .3
6 9 1 .0
6 9 4 .7
696.1

5 0 0 .7
4 9 7 .6
4 9 6 .4
4 9 2 .4

5 0 5 .3
502.1
501.1
4 9 7 .0

183.9
182.1
18 0 .4
179.8

186.6
184.8
183.2
182.5

4 8 .8
5 3 .3
5 8 .7
6 4 .4

1 3 9 .8
140.1
139 .6
139.3

6 8 8 .3
6 8 5 .3
6 9 0 .2
6 9 5 .2

4 9 5 .9
4 9 1 .5
4 9 0 .3
4 9 0 .5

5 0 0 .5
4 9 6 .0
4 9 5 .0
4 95.1

181.7
180.3
1 8 0 .0
1 8 0 .4

1 8 4 .4
1 8 3 .0
1 8 2 .8
184.1

5 3 .6
5 4 .7
5 9 .6
6 3 .7

1 3 8 .9
139.1
1 4 0 .3
1 4 0 .9

1 A d ju sted to exclude d o m e stic com m ercial in te rb a n k loans.
2 L o a n s sold are th o se sold o u trig h t fo r b a n k s ’ ow n foreign b ran ch es,
n o n c o n so lid ate d n o n b a n k affiliates o f th e b a n k , th e b a n k s ’ h o ld in g
c o m p an y (if n o t a b an k ), a n d n o n co n so lid ate d n o n b a n k subsidiaries o f
th e h o ld in g co m pany. P rio r to A ug. 28, 1974, th e in stitu tio n s included
h a d been defined so m ew h at differently, a n d th e rep o rtin g p an el o f b anks
w as also different. O n th e new basis, b o th “ T o ta l lo a n s” a n d “ C o m ­
m ercial a n d in d u strial lo a n s” w ere red u ce d by a b o u t $100 m illion.
3 R eclassification o f lo a n s a t o ne larg e b a n k reduced these loans by
a b o u t $400 m illio n as o f Ju n e 30, 1972.
4 F arm e rs H o m e A d m in istra tio n insured notes included in “ O th er
secu rities” ra th e r th a n in lo a n s beginning Ju n e 30, 1971, w hen such notes
to ta le d a b o u t $700 m illion.
5 D a ta beginning Ju n e 30, 1974, include one large m u tu al savings
b a n k th a t m erged w ith a n o n m e m b er co m m ercial b an k . A s o f th a t d ate
th e re w ere increases o f a b o u t $500 m illion in loans, $100 m illion in “ O th er
secu rities,” a n d $600 m illion in “ T o tal loans and in vestm ents.”




6 A s o f O ct. 31, 1974, “ T o tal loans an d in v e stm en ts” o f all co m m ercial
b an k s were red u ced by $1.5 b illio n in co n n ectio n w ith th e liq u id atio n
o f one large b an k . R ed u c tio n s in o th e r item s w ere: “ T o tal lo a n s,” $1.0
billio n (o f w hich $0.6 b illio n was in “ C o m m ercial a n d in d u strial lo a n s” ),
an d “ O th er secu rities,” $0.5 b illio n . In late N o v em b e r “ C o m m ercial an d
in d u strial lo a n s” w ere increased by $ 0.1 b illio n as a resu lt o f lo a n re­
classifications a t a n o th e r large b an k .
N o te . — T o ta l loans a n d in v e s tm e n ts : F o r m o n th ly d a ta , Ja n . 1 9 5 9 Ju n e 1973, see N o v . 1973 B u l l e t i n , p p . A -9 6 -A -9 7 , an d fo r 1948-58,
A ug. 1968 B u l l e t i n , p p . A -9 4 -A -9 7 . F o r a d escrip tio n o f th e cu rre n t
seasonally ad ju sted series see th e N o v . 1973 B u l l e t i n , p p . 831-32, an d
th e D ec. 1971 B u l l e t i n , p p . 9 71-73. C o m m e rc ia l a n d in d u stria l lo a n s:
F o r m o n th ly d ata, Ja n . 1 9 5 9 -Ju n e 1973, see N o v . 1973 B u l l e t i n , p p .
A -9 6 -A -9 8 ; fo r d escrip tio n see Ju ly 1972 B u l l e t i n , p . 683. D a ta are fo r
last W ednesday o f m o n th except fo r Ju n e 30 an d D ec. 31; d a ta a re p artly
o r w holly estim ated except w hen Ju n e 30 an d D ec. 31 are call d ates.

A 14

COMMERCIAL BANKS o MAY 1975
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions o f dollars)
L o an s and investm ents

C lassification by
F R S m em bership
an d F D IC
insurance

Securities
T o ta l

Loans
l

U .S.
T re as­
ury

O th er

2

T o ta l
assets—
T o tal
lia­
C ash
bilities
an d
a sse ts 3
cap ital
ac­
c o u n ts 4

D ep o sits
I n te r b a n k 3
T o ta l 3

O th er
D em and

D e­
m an d

B o r­
ro w ­
ings

T o ta l
cap ital
ac­
co u n ts

N um ­
b er
of
b an k s

23
65
163
19,375
25,9 1 2
38,083
58,994

7,173
10,059
2 0 ,9 8 6
42 ,9 5 8
47,211
52,658
58,128

14,278
14,181
13,472
13,686
13,783
13,927
14,171
14,261
14,290
14,337
14,367
14,383
14,398
14,422
14,440
14,465

T im es

T im e
U .S.
G ovt.

O th er

L ast-W ednesday-of-m onth series 6

All commercial banks:
1941— D ec.
1947— D ec.
1960— D ec.
1970—D ec.
1971— D ec.
1972— D ec.
1973— D ec.

3 1 ..
31 7.
3 1 ..
3 1 ..
3 1 ..
3 1 ..
3 1 ..

50,746
116,284
199,509
461,194
516,564
598 ,r
683,799

2 1,714
38,057
117,642
313,334
346,930
4 1 4 ,696
4 9 4 ,947

69,221
61,003
61,742
64,930
67,028
58,277

1974— A pr.
M ay
Ju n e
July
A ug.
Sept.
O ct.
N ov.
D ec.

2 4 ..
2 9 ..
3 0 ..
3 1 ..
2 8 ..
2 5 ..
3 0 ..
2 7 ..
3 1 ..

69 9 ,290
703,820
718,713
720,730
722,110
7 21,160
723,330
729,640
743,998

508,140
514,280
528,951
531,580
533,320
532,890
534,520
539,400
549,101

56.410
54,080
52,114
52,230
52,010
50,690
50,730
52,140
54.411

740
460
648
920
780
580
080

1975—Jan .
F eb.
M ar.
A pr.

29*.
26*.
26*.
30*.

724,080
724,010
729,500
728,270

531.630
530,160
529,590
523.630

53,560
54.720
59,620
63.720

138,890
139,130
140,290
140,920

1941_D ec.
1947— D ec.
I960— D ec.
1970—D ec.
1971— D ec.
1972— D ec.
1973—D ec.

31 ..
3 1 ..
3 1 ..
3 1 ..
3 1 ..
3 1 ..
3 1 ..

43,521
9 7 ,8 4 6
165,619
365,940
405.087
465,788
528,124

18,021
32,628
99,933
253,936
277,717
329,548
391,032

19,539
57,914
49 ,1 0 6
45,399
47,633
48,7 1 5
4 1 ,494

5,961
7,3 0 4
16,579
6 6 ,604
7 9,738
87,524
95,598

1974— A pr.
M ay
June
July
A ug.
Sept.
O ct.
N ov.
D ec.

2 4 ..
2 9 ..
3 0 ..
31r .
28 r .
25 r . ,
30r
2 7 ..
3 1 ..

535,917
538,801
550,388
552,643
552,845
550,843
548,622
556.088
568,577

399,092
403,619
415,061
418,088
418,727
417,631
415,941
421,428
429,557

39,273
37,282
35,934
35,858
35,878
34,683
34,813
36,394
38,924

1975—Jan .
F eb.
M ar.
A pr.

2 9 ..
2 6 ..
2 6 ..
30*.

550,264
549,144
552,957
550,722

414,426
412,076
411,446
4 0 6 ,634

37,549
38,628
4 2 ,544
4 5 ,137

21 ,

26,551
37,502
52,150
93,643
99 ,832
113,128
118,276

7 9,104
155,377
2 57 ,5 5 2
576,242
640,255
739,033
835,224

71,283
144,103
229,843
480 ,9 4 0
537,946
616,037
6 81,847

10,982
4 4 ,3 4 9
15,952
240 1,343
12,792
9 4 ,3 6 7 3 5 ,360
17,079 1,799 5,9 4 5 133.379 71,641
30,6 0 8 1,975 7 ,9 3 8 209,335 231,084
32,205 2 ,9 0 8 10,169 220,375 272,289
3 3 ,8 5 4 4 ,1 9 4 10,875 252,223 314,891
36,839 6,773 9 ,8 6 5 263 ,3 6 7 365,002

102,360
115,575
126,487
107,850
100,610
107,390
110,770
100 116,220
486 128,015

8 38.740
857,695
884,295
872,560
8 65.740
8 73,710
8 80,750
894,530
919,381

6 69,730
683,175
709,917
695,230
688,490
692,830
700,420
708,150
747,727

3 1 ,4 5 0
3 4 ,8 7 0
42 ,0 1 6
33 ,5 8 0
30 ,5 3 0
2 9 ,7 6 0
3 3 ,1 5 0
34 ,2 3 0
43,4 8 3

8 ,9 0 3
9 ,6 8 0
9 ,9 7 0
10,610
10,180
10,310
11,496

5 ,9 0 0
5 ,9 4 0
8 ,3 6 7
4 ,3 6 0
4 ,0 7 0
7 ,3 8 0
3 ,0 8 0
3,9 1 0
4 ,8 0 7

2 3 6 ,1 7 0
238 ,2 1 5
2 5 2 ,4 3 4
2 4 3 ,8 7 0
2 3 5 ,7 8 0
2 3 6 ,5 5 0
24 3 ,0 9 0
2 4 8 .7 3 0
267,463

388.920
395,950
398,197
403,7 4 0
40 8 ,1 4 0
40 8 ,5 3 0
41 0 .9 2 0
410,9 7 0
420,478

67 .5 8 0
6 9 ,9 1 0
67,548
68,0 3 0
67 ,230
67 .9 2 0
6 8 ,3 5 0
7 1 ,4 7 0
58,373

5 9 ,9 5 0
6 0 ,3 3 0
61,6 2 3
6 1 .5 3 0
6 1 .5 3 0
6 1 ,8 5 0
6 2 ,1 8 0
6 2 ,2 1 0
6 3 ,6 5 4

101,400
103,470
105,230
113,290

8 73,940
8 7 7,120
8 86,450
8 95,230

701,390
701,120
710,440
720,370

2 9 ,9 0 0
2 9 ,7 7 0
3 0 ,1 6 0
32,7 9 0

11,740
10,440
11,680
11,880

4 ,5 3 0
2 ,6 4 0
3 ,9 7 0
7,9 3 0

2 3 3 .7 3 0
2 3 4 .3 8 0
2 3 6 ,5 4 0
2 4 2 ,1 3 0

42 1 ,4 9 0
423 ,8 9 0
428,0 9 0
4 2 5 ,6 4 0

6 1 ,3 2 0
63.9 2 0
62 ,8 3 0
60 .5 8 0

6 4 ,0 1 0 14,475
6 4 ,4 6 0 14,497
6 5 ,1 0 0 14.523
6 4 ,9 4 0 14.523

23,113
32,845
45 ,7 5 6
81,500
86,189
9 6 ,5 6 6
100,098

68,121
132,060
216,577
46 5 ,6 4 4
511,353
585,125
6 5 5 ,r -

61,717
122,528
193,029
384,596
4 2 5 ,3 8 0
4 82,124
526.837

10,385
12,353
16,437
2 9 ,1 4 2
30,612
31,958
34,782

140
50
1,639
1,733
2 ,5 4 9
3,561
5,843

1,709
1,176
5,2 8 7
6 ,4 6 0
8,4 2 7
9 ,0 2 4
8,2 7 3

37,136
8 0 ,6 0 9
112,393
168,032
174,385
197,817
202,5 6 4

12,347
2 8 ,3 4 0
57,273
179,229
209,406
239,763
2 75,374

54
130
18,578
2 5 ,0 4 6
36,357
55,611

5,£
8 ,4 6 4
17,398
3 4 ,1 0 0
37,279
41 ,228
44.741

6 ,6 1 9
6,9 2 3
6,1 7 4
5 ,7 6 7
5 ,7 2 7
5 ,7 0 4
5 ,735

87,005
99,1 5 5
108,971
91 .4 3 0
84,947
91 ,0 0 2
93 ,674
98,603
107,008

653,285
669,357
692,199
680,511
673,296
6 79,160
680,173
694,743
715,675

512,792
524.837
547,031
533,807
527,573
531,194
535,128
542,515
575,612

2 9 ,3 9 6
32,452
39,211
31,153
28,4 8 7
27,831
31,043
32,422
4 1 ,0 6 2

6 ,3 6 4
7 ,2 7 4
7,818
8,5 9 8
8 ,8 8 7
9 ,5 2 2
9 ,0 8 9
9 ,2 2 2
10,052

4 ,7 4 3
4 ,7 4 6
6 ,6 2 4
3,1 8 0
2 ,9 5 8
5 ,7 8 2
2 ,1 1 7
2 ,8 5 9
3,1 8 3

179,927
182,060
193,979
186,360
179,429
180,114
184,573
189,688
204,2 3 2

292 ,3 6 2
2 98.305
29 9 ,4 0 0
304.516
307,812
307,945
308.306
308,324
317,083

62,859
64 ,8 2 0
62,8 3 6
6 3 ,0 4 2
61,781
6 2 ,166
60,803
65,411
52,856

4 5 ,8 9 6
4 6 ,0 9 0
4 6 ,9 4 6
46 ,9 0 7
46 ,8 1 6
4 7 ,0 5 4
47,131
4 7 ,3 2 0
4 8 ,2 4 4

5 .763
5.7 6 3
5,761
5 .7 6 6
5 .7 6 6
5 .7 7 4
5.7 7 5
5,7 7 4
5 ,7 8 0

86,321
88.430
89,685
9 6 ,678

676.905
678,970
685.906
692,063

536,256
535,250
542,076
5 4 9,780

28,311
28 ,1 5 7
28 ,5 6 4
31,102

10,299
8,991
10,231
10,433

3 ,2 4 7 177,701 316,698 5 6,136
1,989 178,596 317.517 5 8 ,f ‘
2 ,7 9 4 180,214 320,273 58,0 3 0
6,191 184,671 317,383 5 5,697

48,411
48.741
4 9 ,2 1 9
4 9 ,2 6 5

5 ,783
5 .7 8 5
5 .7 8 5
5 .7 8 5

7,225
9 ,0 0 6
2 0 ,864
86,118
104,704
117,084
130,574

7 ,2 9 0

8,200

Members of
F.R. System:

98,289
9 8 ,4 4 0
9 8 ,967
98,951

4

C all d ate series

Insured banks:
Total:
1941— D ec.
1947— D ec.
1960— D ec.
1970—D ec.
1971— D ec.
1972— D ec.
1973— D ec.

3 1 ...
3 1 ...
3 1 ...
3 1 9 ..
3 1 ...
3 1 ...
3 1 ...

1974— Ju n e 3 0 ...
D ec. 3 1 ...

National member:
1941— D ec.
1947— D ec.
1960— D ec.
1970— D ec.
1971— D ec.
1972— D ec.
1973— D ec.

3 1 ...
3 1 ...
3 1 ...
31 9 ..
3 1 ...
3 1 ...
3 1 ...

1974— J u n e 3 0 . . .
D ec. 3 1 ...

49 ,2 9 0
114,274
198,011
458,919
514,097
594,502
678,113

21,0 4 6
67,941
60,468
61,438
64,691
66,679
57,961

6 ,9 8 4
8 ,7 5 0
20,451
85,475
104,020
116,298
129,625

25,788
36,926
51,836
92,708
98,281
111,333
116,266

76,820
152,733
255,669
572,682
635,805
732,519
827,081

69,411
141,851
228,401
479,174
535,703
612,822
677,358

ioI 54

12,615
16,921
30,233
3 1 ,824
33,366
36,248

1,762 4 1 ,2 9 8
15,699
54 1,325 9 2 ,9 7 5 34,882
1,667 5,9 3 2 132,533 71,348
1,874 7,8 9 8 208,0 3 7 231,132
2 ,7 9 2 10,150 2 1 9 ,1 0 2 271,835
4 ,1 1 3 10,820 250,693 313,830
6 ,429 9 ,8 5 6 2 6 1 ,5 3 0 363,294

10
61
149
19,149
25,6 2 9
37,556
57,531

6 ,8 4 4 13,426
9 ,7 3 4 13,398
2 0,628 13,119
4 2 ,4 2 7 13,502
46,731 13,602
52,1 6 6 13,721
57,603 13,964

709,904 521,424 51,832 136,648 123,536 871,986 7 0 3,767 4 0 ,5 3 4 8 ,4 2 7
734,406 541,029 54,093 139,285 125,348 9 0 6,154 741,489 4 2 ,5 8 6 10,692
I

8 ,3 5 5 2 50,225 396,226 65 ,5 1 4 61 ,0 0 3 14,108
4 ,7 9 9 265,401 418,011 55,9 9 2 6 3 ,0 4 3 ’■14,216

27,571
6 5 ,280
107,546
2 7 1,760
302,756
350,743
398,236

1,088 2 3 ,2 6 2
8 ,3 2 2
19,278
795 53,541
3,265 7 1 ,6 6 0 39,546
4 ,7 4 0 122,298 137,592
6 ,0 1 4 128,441 160,291
6 ,6 4 6 146,800 184,622
5 ,9 5 5 152,705 212,874

11,725
2 1 ,428
6 3 ,6 9 4
187,554
206,758
247,041
293,555

12,039
38,674
32,712
34,203
36,386
37,185
30,962

3,806
5,178
11,140
50,004
59,612
66,516
73,718

14,977
22 ,0 2 4
28,675
56,028
59,191
6 7 ,390
70,711

43,433
88,1 8 2
139,261
340,764
376,318
43 4 ,8 1 0
489,4 7 0

3 9,458
82,023
124,911
283,663
314,085
359,319
395,767

6 , 786
8 ,3 7 5
35
9 ,8 2 9
611
18,051
982
17,511 1,828
19,096 2,1 5 5
2 0 ,3 5 7 3 ,8 7 6

418,329 313,659 27,631 77,039 73,703 j 516,632 407,9 1 5 2 0 ,0 8 6 4 ,9 1 2
428,479 321,486 29,078 77,915 76,535| 534,267 431,088 23 ,4 9 7 6 ,7 5 0

For notes see opposite page.




21,2 5 9
37,583
117,092
312,006
345,386
411,525
4 9 0,527

4
45

3 ,6 4 0
5,4 0 9
2 4 ,868
2 7 ,065
3 0 ,342
33,125

5 ,1 1 7
5 ,0 0 5
4 ,5 3 0
4 ,6 2 0
4 ,5 9 9
4 ,6 1 2
4 ,6 5 9

5,038 145,954 231,925 48,1 2 3 3 4 ,966
2 ,4 3 7 154,425 243,978 39,608 35,8 2 0

4 ,6 9 3
r4 ,706

111 11,098
13,100
18,169
26 ,7 0 6
39,696

MAY 1975 □ COMMERCIAL BANKS

A 15

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions of dollars)
L oans an d investm ents
C lassification by
F R S m em bership
a n d F D IC
insurance

D ep o sits

Securities
T o tal

L oans
l

U .S.
T reas­
ury

O th er

2

T o tal
assets—
T o tal
C ash
lia­
assets 3 bilities
and
T o ta l 3
capital
ac­
c o u n ts 4

In te rb a n k 3

O th er
B o r­
ro w ­
ings

D em a n d
D e­
m and

T o tal
cap ital
ac­
co u n ts

T im e
5

T im e
U .S.
G o v t.

N um ­
b er
of
b an k s

O th er

C all d ate series
Insured banks (co n t.):
S ta te m em ber:
6 ,2 9 5
1941— D ec. 3 1 .... 15,950
1947— D ec. 3 1 .... 3 2,566 11,200
1960— D ec. 3 1 .... 58,073 3 6 ,240
1970— D ec. 3 1 9 ... 9 4 ,7 6 0 66,963
1971— D ec. 3 1 .... 102,813 71,441
1972— D ec. 3 1 .... 115,426 82,889

7 ,5 0 0
2 ,1 5 5
8 ,1 4 5 24,6 8 8
19,240
2 ,1 2 5 10,822 4 3 ,8 7 9
16,394
5,439 17,081 77,3 1 6
11,196 16,600 2 5 ,472 125,460
11,247 20,125 26,998 135,517
11,530 21,008 29,176 150,697

2 2,259
4 0 ,5 0 5
68,118
101,512
111,777
123,186

3, 739
3 ,978
15
6 ,608
1,028
11,091
750
13,102
721
12,862
1,406

1 2 ,2 4 6
4 ,0 2 5
9 ,0 6 2
9
3 ,0 5 5
17,727
20 6 ,2 9 9
1,720 4 5 .7 3 4 42 ,2 1 8 5 ,478
9 ,2 3 2
2 ,4 1 2 4 5 ,9 4 5 4 9 ,5 9 7 6 ,8 7 8 10,214
2,3 7 8 51,017 55,523 9 ,6 5 1 10,886
621
381

13,874
27,068

2,022 4 0 .7 3 3

1,502
1,918
1,6 4 4
1,1 4 7
1,128
1 ,0 9 2

1973— D ec. 3 1 .... 130,240 97.828

10.532

21 ,8 8 0

29,387 166,780 131,421

14,425

1,968

2,3 1 8

4 9 ,8 5 9

62,851 15,914

11,617

1,076

1974—J u n e 3 0 . . . . 132,388 101,732
D ec. 3 1 . . . . 140,373 108,346

8,303
9,8 4 6

22,353
22,181

35,268 175,896 139,446
30,473 181,683 144,799

19,125
17,565

2 ,9 0 6
3,301

1,586 4 7 ,6 9 0
746 4 9 ,8 0 7

68,138 14,713
7 3 ,3 8 0 13,247

1 1,980
12,425

1,068
r l ,0 7 4

1,509
10.039
11,368
16.039
17,058
17,964

1,025
1,448
3,874
18,871
2 4 ,282
28,774

2,668
8,7 0 8
7 ,7 0 2
4,0 8 3 20,691 19,342
6 ,0 8 2 39,1 1 4 35,391
11,208 106,457 9 3 ,998
12,092 123,970 109,841
14,767 147,013 130,316

6

262
484
1,091

959
1,271
3 ,2 3 2
8 ,3 2 6
9 ,4 5 1
10,938

6 ,8 1 0
6,4 7 8
6 ,9 4 8
7 ,7 3 5
7 ,8 7 5
8 ,0 1 7

N onm em ber:
1941— D ec.
1947— D ec.
1960—D ec.
1970— D ec.
1971— D ec.
1972— D ec.

5,776
3 1 ....
3 1 .... 16,444
3 1 . . . . 32,411
3 1 9 ... 92 ,399
3 1 .... 108,527
3 1 .... 128,333

3,241
4 ,9 5 8
17,169
57,489
67,188
81 ,594

1973— D ec. 3 1 .... 149,638

99,143

16,467

34,027

16,167 170,831 150,170

1,467

586

1,582

58,966

8 7 ,5 6 9

1,9 2 0

12,862

8 ,2 2 9

1974— Ju n e 3 0 . . . . 159,186 106,033
D ec. 3 1 . . . . 165,555 111,197

15,898
15,168

37,255
39,189

14,565 179,457 156,406
18,340 190,204 165,602

1,323
1 ,524

610
640

1,731
1 ,616

5 6 ,5 8 0 9 6 ,1 6 2
61,1 6 9 100,653

2 ,6 7 8
3,1 3 6

14,057
14,799

8 ,3 4 7
''8 ,4 3 6

761
1,280
535
304
239
349

241
255
413
642
684
785

763
576
314
934
1,551
1,794

2,2 8 3
2 ,6 4 3
1,883
4 ,3 6 5
5 ,1 3 0
7,0 7 3

1,872
2,251
1,443
2 ,5 7 0
2 ,9 2 3
3 ,7 7 5

177
159
375
380
488

13
4
14
226
283
527

329
325
358
532
480
491

852
783
352
184
181
206

N oninsured
nonm em ber:
1941— D ec.
1947— D ec.
1960— D ec.
1970— D ec.
1971— D ec.
1972— D ec.

129
4
27
141
242
552

1,212
1,408

$29

1,457
2 ,0 0 9
1,498
3,079
3 ,1 4 7
4 ,8 6 5

455
474
550
2 ,1 3 2
2 ,2 2 4
3,731

1973— D ec. 3 1 ....

6 ,1 9 2

4 ,9 2 7

316

949

2,010

8 ,6 5 0

4 ,9 9 6

591

344

1974— Ju n e 3 0 . . . .
D ec. 3 1 . . . .

9,2 6 9
9,981

7 ,9 8 7
8,461

282
319

1,001
1,201

2,951
2,667

12,770
13,616

6 ,6 1 0
6,6 2 7

1,481
897

476
803

7 ,233
3 1 ....
3 1 .... 18,454
3 1 . . . . 33,910
3 1 9 ... 95,478
3 1 . . . . 111,674
3 1 .... 133,198

3 ,6 9 6
5 ,4 3 2
17,719
59,621
69,411
8 5 ,325

1,266
2 ,2 7 0
1,703
11,318
11,904
4,2 8 7
16,342 19,514
17,297 24,966
18,313 29,559

3,431
4 ,6 5 9
6,3 9 6
12,143
13,643
16,562

10,992
9,5 7 3
23,3 3 4 21,591
4 0 ,9 9 7 3 6,834
110,822 96,568
129,100 112,764
154,085 134,091

439
643
1,466
1,592
1,895

T o tal nonm em ber:
1941— D ec.
1947— D ec.
1960— D ec.
1970— D ec.
1971— D ec.
1972— D ec.

3 1 ....
3 1 7 ...
3 1 ....
3 1 9 ...
3 1 ....
3 1 ....

185
132

101
116
81

t 157

190
160
243
359
633

53
149
645
1,438
1,723
1,796

4 ,1 6 2
3 ,3 6 0
6 ,5 5 8
12,366
2 0 ,1 4 0 14,095
4 0 ,0 0 5 5 1 ,3 2 2
4 4 ,7 1 7 6 1 ,9 4 6
52,8 7 6 73 ,6 8 5

1 ,: 291

7
19
571
582
1,199

1,392
846
1,298
1,273
1 ,530

253
478
293
756
1,134
1,620

9

1,836

2 ,2 1 5

1,463

524

207

12
8

2 ,2 0 9
2 ,0 6 2

2 ,4 3 2
2 ,8 5 7

2 ,0 3 3
2 ,3 8 2

620
611

229
r249

5,1>04
167 13,758
657 2 0 ,9 8 6
1,478 4 1 ,3 0 3
1 ,742 4 5 ,9 9 0
1,8 5 0 54 ,406

3,6 1 3
7 ,0 3 6
14,388
52,078
63,081
7 5 ,3 0 5

18
33
796
1,726

1,288
1,596
3 ,5 9 0
8 ,8 5 8
9 ,9 3 2
11,429

7 ,6 6 2
7,261
7 ,3 0 0
7 ,9 1 9
8 ,0 5 6
8 ,2 2 3

89,7 8 4

18
13
40
19
55

12
866

1973— D ec. 3 1 .... 155,830 104,070

16,783

34,976

18,177 179,480 155,165

2 ,0 5 7

930

1,592

6 0 ,802

3,383

13,386

8 ,4 3 6

1974—Ju n e 3 0 . . . . 168,456 114,020
D ec. 3 1 . . . . 175,536 119,658

16,180
15,487

38,256
40,3 9 0

17,516 192,227 163,016
21,007 203,8 2 0 172,229

2 ,8 0 4
2,421

1,086
1,443

1,743
1 ,6 2 4

58,789 9 8 ,5 9 3 4 ,711
63,231 103,510 5 ,5 1 8

14,677
1 5 ,4 1 0

8 ,5 7 6
r8,6 8 5

1 L o an s to farm ers directly g u aran teed by C C C w ere reclassified as
securities and E x p o rt-im p o rt B ank p o rtfo lio fu n d p articip atio n s w ere
reclassified fro m loans to securities effective Ju n e 30, 1966. This reduced
‘T o tal lo a n s” an d increased “ O th er securities” by ab o u t $1 billion.
“ T o tal lo a n s” include F ed eral funds sold, an d beginning w ith Ju n e 1967
securities pu rch ased u n d e r resale agreem ents, figures fo r w hich are in ­
cluded in “ F ed eral funds sold, e tc .,” on p. A-16.
Effective Ju n e 30, 1971, F arm e rs H o m e A d m in istratio n notes w ere
classified as “ O th er securities” ra th e r th a n “ L o a n s.” A s a resu lt o f this
change, ap p ro x im ately $300 m illion was tran sferre d to “ O th er securities”
fo r th e p erio d ending Ju n e 30, 1971, fo r all com m ercial banks.
See also table (and n o te s) a t th e b o tto m o f p. A -24.
2 See first 2 p arag ra p h s o f n o te 1.
3 R ec ip ro cal b alances excluded beginning w ith 1942.
4 Includes item s n o t show n separately. See also n o te 1.
5 See th ird p ara g ra p h o f n o te 1 above.
6 F o r the la st-W ednesday-of-the-m onth series, figures fo r call dates
are show n fo r Ju n e a n d D ecem b er as so o n as they becam e available.
7 B eginning w ith D ec. 31, 1947, the series w as revised; for description,
see n o te 4, p. 587, M ay 1964 B u l l et in .
8 M em b er b a n k d a ta fo r O ct. exclude assets o f $3.6 billion o f one large
b an k .
9 F ig u re takes in to ac co u n t th e follow ing changes, w hich b ecam e
effective Ju n e 30, 1969: (1) inclusion o f con so lid ated rep o rts (including
figures fo r all bank-prem ises subsidiaries a n d o th e r significant m ajorityow ned d om estic subsidiaries) an d ( 2) rep o rtin g o f figures fo r to ta l loans




a n d fo r in d iv id u al categories o f securities o n a gross b asis— th a t is, befo re
d ed u c tio n o f v alu atio n reserves— ra th e r th a n h et as p reviously rep o rted .
N ote .— D a ta are fo r all com m ercial b an k s in th e U n ite d S tates (in clu d ­
ing A lask a an d H aw aii, beginning w ith 1959). C o m m ercial b an k s rep resen t
all co m m ercial b an k s, b o th m em b er an d n o n m e m b e r; sto ck savings
b an k s; an d n o n d ep o sit tru s t co m p an ies.
Figures fo r m em b er b an k s befo re 1970 in clu d e m u tu al savings b an k s
as follow s: 3 before Jan . 1960 an d 2 th ro u g h D ec. 1960. T h o se b an k s
are n o t in cluded in in su red com m ercial b an k s.
Effective Ju n e 30, 1959, co m m ercial b an k s an d m em b er b an k s exclude
a sm all n atio n al b a n k in th e V irgin Islan d s; also, m em b er b an k s exclude,
an d n o n in su red com m ercial b an k s include, th ro u g h Ju n e 30, 1970, a sm all
m em ber b a n k engaged exclusively in tru s t b u sin ess; b eginning 1973,
excludes 1 n atio n al b an k in P u erto R ico.
Beginning D ec. 31, 1973, Ju n e 30, 1974, an d D ec. 31, 1974, respectively,
m em ber b an k s exclude an d n o n in su red n o n m e m b er b an k s include 1, 2 ,
and 3 n o n in su red tru st co m p an ies th a t are m em bers o f th e F ed eral R e­
serve System .
C o m p a rab ility o f figures fo r classes o f b an k s is affected so m ew h at by
changes in F .R . m em b ersh ip , d ep o sit in su ran ce statu s, an d by m ergers
etc.
Figures are p artly estim ated except o n call dates.
F o r revisions in series before Ju n e 30, 1947, see July 1947 B u lletin ,
pp. 870-71.

A 16

COMMERCIAL BANKS □ MAY 1975
ASSETS BY CLASS OF BANK, DECEMBER 31, 1974
(A m oun ts in m illions o f d ollars)
M em b er b a n k s 1

A ccount

A ll
In su red
com m ercial com m ercial
banks
b an k s

Large b an k s
T o tal

N ew
Y o rk
C ity

C ity o f
C hicago

O th e r
large

A ll o th e r

N on­
m em b er
banks1

34,462
5 ,0 6 8

21,0 0 7
2 ,8 0 8

9*692
1,413
132
8 ,1 4 4

14,382
1 571
557
1,6 8 9

C ash b an k balances, item s in p ro c e s s ................................
C urrency and c o in ...............................................................
R eserves w ith F .R . b a n k s .................................................
D em a n d balances w ith b an k s in U n ite d S tates.........
O th er balances w ith b an k s in U n ited S ta te s ..............
B alances w ith b an k s in foreign c o u n trie s....................
C ash item s in process o f co lle c tio n ...............................

128,015
11,654
27,112
3 6,077
4 ,1 7 3
1,722
47,277

125,348
11,629
27,112
34,321
3 ,8 7 2
1 ,302
4 7 ,112

107,008
8 ,8 4 6
27 112
21,6 9 5
2 ,6 0 2
1,165
4 5 ,5 8 8

2 7 ,6 0 4
691
4 960
7*265
62
412
1 4,214

4 ,8 1 6
198
1 783
’ 357
275
89
2 ,115

4 0 ,1 2 6
2 ,8 8 9
10 356
4 ,382
853
532
21,115

T o tal securities held— B ook v alu e......................................
U .S. T re a s u ry ........................................................................
O th er U .S. G ovt, agencies.................................................
States and political subdiv isio n s.....................................
All o th e r secu rities...............................................................

194,897
54,411
32,835
100,397
7,255

193,378
5 4 ,093
32,373
100,031
6,881

139,020
38 ,9 2 4
2 0 ,8 5 9
7 4 ,2 8 3
4 ,9 5 4

16,412
5 ,3 3 2
2 ,0 0 5
8,2 8 8
787

5 ,6 1 2
1 ,8 2 0
874
2 ,7 0 6

4 7 ,2 5 4
13,323
6 ,4 5 0
25,761
1,719

69,741
18,448
11,529
37,5 2 8
2 ,2 3 6

55 ,8 7 7
1 5,487
1 1 ,9 7 6
2 6 ,1 1 4
2 ,3 0 0

T rad e-acco u n t se c u ritie s ....................................................
U .S. T re a su ry ....................................................................
O th er U .S. G ovt, agencies............................................
S tates and political subdiv isio n s.................................
All o th e r..............................................................................

7 ,9 8 9
2 ,5 4 8
1 ,352
3 ,3 7 0
719

7 ,9 8 4
2 ,543
1,352
3 ,370
719

7 ,9 1 6
2,521
1,347
3,337
710

3 .0 4 0
970
541
1 ,341
188

831
461

3,805
1,037
637
1,612
519

240
53
49
135
3

74
27
4
34
9

B ank investm ent p o rtfo lio s...............................................
U .S. T re a su ry ....................................................................
O th er U.S. G ovt, agencies............................................
States and political sub d iv isio n s.................................
All o th e r..............................................................................

186,907
5 1,863
31,483
9 7 ,0 2 6
6,5 3 6

185,394
51,550
31,021

13,372
4 ,3 6 2
1 ,464
6 ,9 4 7
599

4,781
1 ,3 6 0
753
2 ,4 5 6

43,449
12,286
5,813
2 4 ,150

6,1 6 2

131 ,105
36,403
19,511
7 0 ,946
4 ,2 4 4

212

1,200

69,502
18,396
11,480
37,393
2 ,233

5 5 ,803
15,4 6 0
11,972
2 6 ,0 8 0
2,291

F ederal funds sold and securities resale a g re e m e n ts.. .
C om m ercial b a n k s ...............................................................
B rokers and d e a le rs ............................................................
O th e rs.......................................................................................

40,035
3 3 ,8 0 0
4,3 8 6
1,849

38,873
32,638
4 ,3 8 6
1,849

29,841
23,715
4 ,3 3 0
1,795

1,887
1 ,052
615

985
698
253
35

14,741
10,628
2,815
1,298

12,228
11,338
647
243

10,1 9 4
10,084
56
54

O th e r lo a n s .................................................................................
R eal estate lo a n s...................................................................
Secured by fa rm la n d ......................................................
Secured by re s id e n tia l....................................................
1- to 4-fam ily resid e n ces...........................................
F H A in su re d ............................................................
VA g u a ra n te e d .........................................................
O th e r ...........................................................................

502,156
130,304
5 ,887
81,402
73,857
5 ,8 7 0
3,143
6 4 ,844
7,545
925
6 ,6 2 0
43,015

399,990
9 4 ,5 8 4
2 .6 3 4
6 0,577
5 4 ,316
5 ,1 1 0
2 ,7 0 3
46,503
6 ,2 6 2
823
5 ,4 3 9
31,372

82,049
8 ,1 8 4
14
4,567
3,135
254
188
2 ,6 9 3
1,432
166
1,266
3 ,6 0 2

24,261
1,325

766
59
27
32
437

149,804
35,945
345
24,133
2 1 ,198
2,8 1 5
1,401
16,982
2 ,9 3 4
355
2 ,5 7 9
11,467

143,876
49,131
2 ,2 7 4
30,991
29,155

F H A in su re d .............................................................
O th e r ...........................................................................
Secured by o th e r p ro p e rtie s .........................................

509,455
130,587
5 ,9 0 4
81,605
74,033
5 ,9 1 4
3,1 8 7
64,931
7 ,5 7 2
941
6,631
4 3,0 7 8

1,0 9 4
26,061
1,836
275
1,561
15,866

109,465
36,003
3 ,2 7 0
21,027
19,717
805
485
18,428
1 ,3 1 0
118
1 ,192
11,706

L oans to dom estic an d foreign b a n k s ...........................
L oans to o th e r financial in s titu tio n s .............................
L oans on securities to b ro k ers an d d e a le rs ................
O th er loans for p u rch ./carry s ecu rities.........................
L o an s to fa rm e rs ..................................................................
C om m ercial and in d u strial lo a n s ....................................

12,265
3 5 ,234
5 ,241
4,0 2 6
18,237
186,767

10,017
35,011
5 ,1 9 3
4,001
18,216
182,743

9 ,5 0 0
3 3,627
5 ,0 7 3
3,3 4 3
10,501
156,354

4,731
12,911
3 ,5 9 7
566
43,095

679
5 ,0 0 9
550
329
252
13,408

3,628
13,047
763
1,5 2 7
2 ,4 5 7
60,473

462
2,661
161
921
7 ,6 7 2
39,378

2 ,7 6 5
1,6 0 7
169
683
7 ,7 3 5
30,413

P assenger a u to m o b ilie s.............................................
R e sid e n tia l-rep air/m o d e rn ize ..................................
C red it cards and related p la n s ................................
C harge-accoun t cred it c a rd s ................................
C heck and revolving cred it p la n s ......................
O th er retail co nsum er g o o d s ...................................
M obile h o m e s ...........................................................
O th e r ...........................................................................
O th er instalm ent lo a n s ...............................................
Single-paym ent loans to in d iv id u a ls .........................
A ll o th e r lo a n s ......................................................................

103,196
80,227
32,848
5 ,5 4 6
11,078
8,281
2 ,7 9 7
15,368
8 ,998
6,371
15,386
2 2 ,9 6 9
13,903

102,937
80,018
32,764
5 ,5 3 6
11,077
8 ,2 8 0
2,7 9 7
15,345
8 ,9 9 6
6 ,3 4 9
15,295
22,919
13,735

74,465
57,443
22,127
4 ,0 7 5
9 ,8 0 7
7 ,4 3 0
2 ,3 7 7
10,831
6 ,5 2 0
4,311
10,602
17,022
12,544

5 ,2 1 3
3,177
462
206
1,113
665
447
155
97
59
1 ,242
2 ,0 3 6
3,631

1,558
835
161
39
388
358
30
118
54
64
129
723
1 ,152

26,751
20,819
6 ,9 5 4
1,7 3 4
5 ,4 7 9
4,2 7 3
1 ,206
3 ,7 9 9
2 ,3 5 3
1,447
2 ,8 5 3
5 ,9 3 2
5 ,2 1 4

40,943
32,611
14,551
2 ,0 9 6
2 ,8 2 8
2 ,1 3 4
694
6 ,7 5 8
4 ,0 1 7
2 ,741
6 ,3 7 9
8 ,3 3 2
2 ,5 4 6

28,731
2 2 ,7 8 4
10,721
1 ,4 7 2
1,271
851

T o ta l loans and se c u ritie s......................................................

744,387

734,406

5 6 8 ,8 5 2

100,348

30,859

211,799

2 25,845

175,536

Fixed assets— Buildings, fu rn itu re, real e s ta te ................
C u sto m er acceptances o u ts ta n d in g ....................................
O th er assets................................................................................

15,097
1,763
10,857
19,650

15,019
1,739
10,648
18,994

11.374
1 ,723
10,3 6 4
16,629

1,1 1 6
768
5 ,6 2 9
5 ,1 0 4

448
134
451
872

4 ,6 2 2
752
3 ,912
7 ,132

5 ,1 8 9
69
372
3,5 2 0

3 ,7 2 3
41
492
3,022

T o tal a s s e ts .................................................................................

919,770

906,154

7 1 5 ,950

140,569

37,581

268,343

269,457

2 0 3,820

N u m b er o f b a n k s .....................................................................

14,465

14,216

5 ,7 8 0

13

9

155

5,603

8,685

96,661

1 M em b er ban k s exclude an d n o n m e m b er ban k s include 3 noninsured
tru st com panies th a t are m em bers o f th e F ed eral Reserve System , and
m em ber banks exclude 2 n a tio n a l b anks outside the co n tin en tal U nited
States.
2 See ta b le (and notes), D e p o sits A c cu m u la ted f o r P a y m en t o f P erso n a l
L o a n s , p. 24.
3 D em a n d deposits adjusted are d em and deposits o th e r th a n dom estic
com m ercial in terb an k an d U.S. G o v t., less cash item s rep o rted as in
p rocess o f collection.




220

120

212

120
250

2
887
827
40

20

10 013

2,000

420
4 ,5 3 7
2 ,4 7 7
2 ,0 6 0
4 ,7 8 4
5 ,9 4 7
1 ,3 5 9

N ote .— D a ta include co n so lid ate d rep o rts, including figures fo r all
bank-prem ises subsidiaries an d o th e r significant m ajority-ow ned dom estic
subsidiaries. Figures fo r to ta l loans and fo r individual categories o f
securities are re p o rte d on a gross basis— th a t is, before d ed u c tio n o f
v aluation reserves.
Back d a ta in lesser d etail w ere show n in previous B ulletins . Beginning
w ith the fall C all R ep o rt, d a ta fo r fu tu re spring an d fall C all R ep o rts will
be available fro m th e D a ta P ro d u c tio n S ection o f th e D iv isio n o f D a ta
Processing.
D etails m ay n o t ad d to to tals because o f ro u n d in g .

MAY 1975 o COMMERCIAL BANKS

A 17

LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1974
(Amounts in millions of dollars)
Member banks1
Account

Insured
All
commercial commercial
banks
banks

Large banks
Total

New
York
City

City of
Chicago

Other
large

All other

Nonmember
banks1

Demand deposits............................................................
Mutual savings banks.................................................
Other individuals, partnerships, and corporations..
U.S. Government........................................................
States and political subdivisions................................
Foreign governments, central banks, etc...................
Commercial banks in United States.........................
Banks in foreign countries.........................................
Certified and officers* checks, etc...............................

315,752
1,363
235,774
4,807
18,611
2,124
35,316
6,804
10,954

312,785
1,197
234,779
4,799
18,481
1,882
35,053
6,336
10,258

248,477
1,121
180,819
3,183
13,126
1,855
33,824
6,116
8,432

55,556
559
30,816
226
666
1,465
14,399
4,593
2,833

11,307
3
7,538
36
218
24
3,039
198
251

88,451
190
67,111
815
3,889
357
11,985
1,192
2,912

93,163
370
75,354
2,106
8,354
8
4,401
134
2,436

67,276
242
54,954
1,624
5,485
269
1,492
688
2,522

Time and savings deposits..............................................
Savings deposits..........................................................
Accumulated for personal loan payments2..............
Mutual savings banks.................................................
Other individuals, partnerships, and corporations. .
U.S. Government........................................................
States and political subdivisions................................
Foreign governments, central banks, etc...................
Commercial banks in United States.........................
Banks in foreign countries.........................................

432,364
135,524
389
479
221,710
476
50,087
12,682
8,611
2,405

428,703
135,280
387
463
219,905
476
49,915
12,048
8,417
1,813

327,410
97,596
275
451
170,180
352
37,065
11,891
7,858
1,742

51,799
6,061

17,491
2,060

261
30,329
39
2,060
7,369
4,119
1,561

3
11,996
6
1,307
1,315
775
29

119,486
34,273
69
171
62,467
146
16,494
3,174
2,546
145

138,634
55,202
206
16
65,388
160
17,205
32
418
7

104,954
37,928
115
28
51,530
124
13,023
791
753
662

Total deposits..................................................................

748,116

741,489

575,887

107,355

28,799

207,936

231,797

172,229

Federal funds purchased and securities sold under
agreements to repurchase...........................................
Other liabilities for borrowed money...........................
Mortgage indebtedness..................................................
Bank acceptances outstanding.......................................
Other liabilities................. .............................................

52,325
6,049
715
11,433
28,784

51,139
4,852
712
11,221
25,043

48,351
4,505
509
10,936
20,426

10,048
1,571
77
6,155
4,397

4,295
63
4
469
1,346

26,357
2,406
259
3,938
8,029

7,651
464
169
373
6,653

3,974
1,544
206
497
8,358

Total liabilities................................................................

847,421

834,456

660,614

129,603

34,977

248,927

247,107

186,807

Minority interest in consolidated subsidiaries..............
Total reserves on loans/securities..................................
Reserves for bad debts (IRS).....................................
Other reserves on loans..............................................
Reserves on securities.................................................

6
8,688
8,402
116
171

5
8,649
8,366
115
169

2
7,089
6,909
70
110

3
1,600
1,493
46
60

Total capital accounts....................................................
Capital notes and debentures.....................................
Equity capital..............................................................
Preferred stock......................... ........... ..................
Common stock........................................................
Surplus.....................................................................
Undivided profits....................................................
Other capital reserves..............................................

63,655
4,290
59,364
54
14,821
25,397
18,124
968

63,043
4,227
58,817
43
14,724
25,225
17,920
904

Total liabilities, reserves, minority interest, capital
accounts.......................................................................

919,770
228,352
724,271
519,116

1,594
1,593
1

488
488

2,668
2,598
17
53

2
2,338
2,230
51
57

48,244
3,423
44,822
24
11,015
19,227
13,908
649

9,372
755
8,616

2,115
61
2,054

2,188
3,720
2,704
4

568
1,140
301
44

16,748
1,673
15,076
10
3,560
6,840
4,398
267

20,010
933
19,076
13
4,699
7,526
6,504
334

15,410
868
14,542
30
3,806
6,170
4,216
319

906,154

715,950

140,569

37,581

268,343

269,457

203,820

225,821
717,664
510,735

165,881
555,930
401,694

26,717
103,014
81,665

6,117
27,229
24,493

54,535
199,287
150,485

78,512
226,400
145,050

62,471
168,341
117,423

Selected ratios:
Percentage of total assets
Cash and balances with other banks.........................

13.9

13.8

14.9

19.6

12.8

15.0

12.8

10.3

21.3
.9
.3
.4
.2

19.4
1.1
.4
.5
.3

11.7
2.2
.7
1.0
.5

14.9
2.2
1.2
.7
.3

17.6
1.4
.4
.6
.4

25.9
.1

27.4

Trading account securities............... ......................
U.S. Treasury......................................................
States and political subdivisions............... .
All other trading account securities ..................

21.2
.9
.3
.4
.2
20.3
5.6
10.5
4.1

20.5
5.7
10.7
4.1

18.3
5.1
9.9
3.3

9.5
3.1
4.9
1.5

12.7
3.6
6.5
2.6

16.2
4.6
9.0
2.6

25.8
6.8
13.9
5.1

27.4
7.6
12.8
7.0

59.7
5.1
80.9

59.7
5.1
81.0

60.0
5.6
79.5

59.7
9.0
71.4

67.2
5.1
82.1

61.3
6.1
78.9

57.9
3.4
83.8

58.7
3.6
86.1

.9
6.5
6.9

1.0
6.5
7.0

1.0
6.3
6.7

1.1
6.1
6.7

1.3
5.5
5.6

1.0
5.6
6.2

.9
7.1
7.4

.8
7.1
7.6

14,465

14,216

5,780

13

9

155

5,603

8,685

Bank investment portfolios....................................

All other assets............................................................
Total loans and securities..........................................

Number of banks...........................................................
For notes see opposite page.




A 18

WEEKLY REPORTING BANKS n MAY 1975
ASSETS AND LIABILITIES OF U R G E COMMERCIAL BANKS
(In millions o f 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

For purchasing
or carrying securities

To
U.S. Other others Total
Treas­ se­
ury curi­
se­
ties
curi­
ties

Com­
mer­
cial
and
indus­
trial

Agri­
cul­
tural

118,477
118,926
120,453
119,795

3,795
3,790
3,788
3,807

To brokers
and dealers

To nonbank
financial
instituti ons

To
others

Pers.
U.S.
U.S.
and
Treas­ Other Treas­ Other sales
ury
secs.
ury
secs. finan.
secs.
secs.
COS.,
etc.

Real
estate
Other

Large banks —
Total

1974

384,367
385,133
386,531
382,529

16,688
16,440
15,633
14,936

15,172
15,003
14,155
13,495

937
891
867
857

5 ...................
12...................
1 9 ...................
2 6 ...................

399,986
399,940
395,863
393,847

22,935
22,196
19,539
19,373

17,689
16,103
14,675
15,316

2,904
3,438
2,320
2,072

1,377
965 289,909 126,769
1,510 1,145 289,474 125,701
1,537 1,007 288,234 126,027
1,196
789 286,180 125,732

2 * , ...............

397,163
398,004
397,450
389,432
391,304

21,607
21,643
20.463
16,613
17.464

17,153
16,744
16,633
13,199
14,094

2,364
2,995
1,828
1,848
1,580

1,285
1,158
1,255
954

84,328
83,371
84,399
82,735

2,382
1,330
1,746
2,117

2,377
1,287
1,683
2,076

5 ...................
1 2...................
1 9...................
2 6 ....................

90,795
91,554
90,670
89,283

1,359
1,807
1,892
2,024

1,376
1,443
1,813

144
133
131

2 * .................
9 p .................
16*.................
23*.................
30*.................

90,579
89,659
90,362
87,420
87,975

2,711
1,928
3,134
2,568
2,975

2,480

94
95

2,436
2,756

108
69

300,039
301,762
302,132
299,794

14,306
15,110
13,887
12,819

12,795
13,716
12,472
11,419

19.
26.

309,191
308,386
305,193
304,564

21,576
20,389
17,647
17,349

2*.
9*.
16*.
23*.
30*.

306,584
308,345
307,088
302,012
303,329

18,896
19,715
17,329
14,045
14,489

Apr.

3 ....................
1 0 ....................
17...................
2 4 ....................

Mar.

355
237
271
207

224 280,449
309 281,091
340 284,031
377 282,274

726
857
770
481

4,557
4,731
4,756
4,433

2,772
2,753
2,787
2,770

9,088
8,950
9,406
8,922

19,086
19,263
19,647
19,538

56,257
56,349
56,571
56,716

3.424 1,618 3,249
3,447 3,284 3,467
3,402 1,573 3,699
3,393
914 3,212

2,408
2,395
2.374
2.374

9,761
9,488
9,443
9,280

20,521
20,299
20,225
20,233

59,524
59,585
59,542
59,508

3,395 1,341 3,036
3,406 1,440 2,884
3,414
855 2,715
3,435
742 2,476
3.425
606 2,561

2,359
2.351
2.352
2,349
2,351

9,622
9,360
9,821
9,118
9,296

20,282
20,280
20,341
20,256
20,289

59,474
59,440
59,489
59,459
59,358

138
138
134
133

1975

Apr.

9p

16p . . \ \ ' . \ \ \ \
23* .................
30*.................

1,010

805 286,813
746 286,078
747 286,527
612 284,255
780 284,977

125,970
125,874
126,056
125,291
125,413

New York C ity

191A
Apr.

3 ...................
10....................
1 7 ...................
2 4 ...................

66,712 34,300
66,688 34,235
67,698 34,659
66,466 34,295

149
151
150
156

2,567
2,709
2,907
2,667

609
614
605
599

3,121
3,083
3,327
3,024

6,601
6,684
6,788
6,815

6,420
6,419
6,489
6,504

126
286
315
80

74,080
74,490
73,266
71,930

113 1,421 2,239
111 2,987 2,361
110 1,354 2,649

485

781 2,280

489
482
476

3,432
3,275
3,283
3,167

8,109
7,922
7,938
7,959

7,429
7,438
7.444
7.444

10

137
145
162
24
140

72,360 38,716
71,817 38,474
71,477 38,523
70,114 38,195
70,570 38,254

101 1,206 2,125
101 1,145 2,084
101
751 1,841
100
583 1,687
100
503 1,747

468
463
468
465
457

3,359
3,273
3,488
3,112
3,205

7,963
7,903
7,857
7,821
7,781

7,459
7,447
7,483
7,462
7,474

937
885
861
852

355
237
249
207

219
272
305
341

2,163
2,139
2,182
2,171

5,967
5,867
6,079
5,898

12,485
12,579
12,859
12,723

49,837
49,930
50,082
50,212

16,578
14,727
13,232
13,503

2,783
3,294
2,187
1,941

14,673
15,056
13,747
10,763
11,338

2,270
2,900
1,742
1,740
1,511

22

630
765
656
403

1975
Mar.

Apr.

1,111

1,688
2,886

121

86

39,356

38,870
38,857
38,738

109

Outside
N ew York C ity

1974
Apr.

3.
10.

17.
24.

213,737
214,403
216,333
215,808

84,177
84,691
85,794
85,500

3,646
3,639
3,638
3,651

96
92
114
78

1,376
1,509
1,536
1,196

839 215,829
859 214,984
692 214,968
709 214,250

87,413
86,831
87,170
86,994

3,311
3,336
3,292
3,284

197 1,010
297 1,106
219 1,050
133
932

1,923
1,906
1,892
1,898

6,329
6,213
6,160
6,113

12,412
12.377
12,287
12,274

52,095
52,147
52,098
52,064

1,285
1,158
1,255
954

668 214,453
601 214,261
585 215,050
588 214,141
640 214,407

87,254
87,400
87,533
87,096
87,159

3,294
3,305
3,313
3,335
3,325

135
295
104
159
103

1,891

6,263
6,087
6,333
6,006
6,091

12,319
12.377
12,484
12,435
12,508

52,015
51,993
52,006
51,997
51,884

1,990
2,022

1,849
1,766

103
103
99
98

1975
Mar. 5 .
12.

Apr.

For notes see p. A-22.




1,000

911
800
874
789
814

1,888

1.884
1.884
1,894

MAY 1975 a W EEKLY REPORTING BANKS

A 19

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)
Investments

Loans (cont.)
U.S. Treasury securities

O ther (cont.)

N otes and bonds
m aturing—

To com m er­
cial banks

D omestic

F o r­
eign

O ther securities

C on­
sum er
instal­
ment

F o r­
eign
govts.
2

All
other

Total

Bills

Obligations
o f States
and
political
subdivisions

Certif­
icates

O ther bonds,
corp. stocks,
and
securities

W ednesday

Total
Within 1 to
1 yr. 5 yrs.

A fter
5 yrs.

Tax
war­
rants 3

Certif.
of
All
All
other partici­ o th e r5
pation*
Large banks —
Total

1974
11,920
12,192
12,094
12,031

3,928
3,859
3,803
3,977

6,234
6,345
6,212
6,352

33,179
33,226
33,286
33,267

1,747
1,752
1,866
1,895

20,465
20,152
20,552
20,188

25,339
25,694
24,784
23,419

5,166
5,195
4,439
3,202

4,273
4,306
4,222
4,192

3,980
4,001
4,029
3,994

61,891
61,908
62,083
61,900

7,356
7,510
7,656
7,544

40,981
40,881
41,026
41,028

2.443 11,111
2,438 11,079
2.443 10,958
2,417 10,911

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

2,745
2,671
2,684
2,740

5,329
5,168
5,222
5,159

34,258
34,132
34,034
33,937

1,453
1,363
1.308
1.308

18,770
18,392
18,617
18,306

25,459
26,423
26,739
27,243

4,107
4,966
4,787
5,092

3,711 14,161 3,480
3,885 14,122 3,450
3,732 14,252 3,968
3,705 14,592 3,854

61,683
61,847
61,351
61,051

6.196
6,329
6.090
6,108

40,441
40,444
40,173
39,973

2,610
2,608
2,490
2.452

12,436
12,466
12,598
12,518

.................. M ar. 5
...........................12
...........................19
........................... 26

2,794
2,651
2,690
2,607
2,680

5,131
5,125
5,193
5,236
5,218

33,915
33,841
33,881
33,876
33,878

1,329
1,268
1,343
1,209
1,304

18,083
18,076
18,296
18,122
18,520

27,855
29,146
28,969
27,931
28,481

4,844
5,264
5,267
4,807
4,958

4,027
4,054
3,986
4,025
3,941

3,790
3,859
3,769
3,605
3,529

60,888
61,137
61,491
60,633
60,382

5,904
6.196
6,543
6,276
6.091

39,885
39,869
39,932
39,641
39,609

2,416 12,683
2.452 12,620
2,475 12,541
2,459 12,257
2,418 12,264

1975

15,194
15,969
15,947
15,494
16,053

................Apr. 2*
........................... 9*
...........................16*
........................... 23 *
........................... 30*
N ew York C ity

1974
4,616
4,405
4,638
4,424

5,225 1,643
5,233 1,633
4,662 1,086
485
4,004

531
557
573
559

1,783
1,778
1,738
1,704

1,268 10,009
1.265 10,120
1.265 10,293
1,256 10,148

1,944
2,081
2,200
2,108

5,440
5,448
5,524
5,476

567
564
564
548

2,058
2,027
2,005
2,016

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

1,396
1,374
1,357
1,405

3,018
2,950
2,796
2,845

2,467
2,480
2,501
2,513

783
784
790
781

1,401
1,325
1,293
1,389

2,701
2,613
2,686
2,633

2,609
2,602
2,597
2,591

751
709
665
674

4,017
3,769
3,888
3,670

5,459 1,022
5,542 1,111
5 ,i
1,059
5,688 1,011

358
468
393
355

2,967
2,889
2,954
3,047

1,112
1,074
1,402
1,275

9,897
9,715
9,704
9,641

1,656
1,682
1,679
1,684

5,331
5,183
5,121
5,034

563
531
533
522

2,347
2,319
2,371
2,401

................M ar. 5
........................... 12
........................... 19
........................... 26

1,394
1,344
1,357
1,253
1,301

2,565
2,456
2,504
2,519
2,472

2.575
2,566
2.575
2,588
2,586

668
609
648
526
614

3,742
3,932
3,860
3,784
4,058

5,999
6,502
6,107
5,514
5,397

497
540
438
484
428

3,456
3,809
3,736
3,320
3,458

1,263
1,301
1,229
1,086
1,033

9,509
9,412
9,644
9,224
9,033

1,604
1,583
1,757
1,709
1,564

4,900
4,879
4,985
4,722
4,662

526
525
557
533
531

2,479
2,425
2,345
2,260
2,276

............... Apr. 2 p
.................. ........9 p
........................... 16*
...........................23
........................... 30*

1975

783
852
704
624
478

O utside
N ew York C ity

1974
2,532
2,485
2,446
2,572

3,216
3,395
3,416
3,507

964 15,849
30,712
30,746
968 15,747
30,785 1,076 15,914
30,754 1,114 15,764

20,114
20,461
20,122
19,415

3,523
3,562
3,353
2,717

3,742
3,749
3,649
3,633

10,137
10,414
10,356
10,327

2,712
2,736
2,764
2,738

51,882
51,788
51,790
51,752

5,412
5,429
5,456
5,436

35,541
35,433
35,502
35,552

1,876
1,874
1,879
1,869

9,053
9,052
8,953
8,895

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

1,344
1,346
1,391
1,351

2,628
2,555
2,536
2,526

31,649
31,530
31,437
31,346

702
654
643
634

14,753
14,623
14,729
14,636

20,000
20,881
20,931
21,555

3,085
3,855
3,728
4,081

3,353
3,417
3,339
3,350

11,194
11,233
11,298
11,545

2,368
2,376
2,566
2,579

51,786
52,132
51,647
51,410

4,540
4,647
4,411
4,424

35,110
35,261
35,052
34,939

2,047
2,077
1,957
1,930

10,089
10,147
10,227
10,117

................M ar. 5
........................... 12
........................... 19
........................... 26

1,400
1,307
1,333
1,354
1,379

2,566
2,669
2,689
2,717
2,746

31,340
31,275
31,306
31,288
31,292

661
659
695
683
690

14,341
14,144
14,436
14,338
14,462

21,856
22,644
22,862
22,417
23,084

4,061
4,412
4,563
4,183
4,480

3,530
3,514
3,548
3,541
3,513

11,738
12,160
12,211
12,174
12,595

2,527
2,558
2,540
2,519
2,496

51,379
51,725
51,847
51,409
51,349

4,300
4,613
4,786
4,567
4,527

34,985
34,990
34.947
34,919
34.947

1,890 10,204
1,927 10.195
1,918 10.196
1,926 9,997
1,887 9,988

1975

For notes see p. A-22.




................Apr. 2*
...........................9*
........................... 16*
...........................23*
........................... 30*

A 20

WEEKLY REPORTING BANKS □ MAY 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)
Deposits

Wednesday

Cash
items
in
process
of
collec­
tion

Re­
serves
with
F.R.
Banks

Cur­
rency
and
coin

Bal­
ances
with
do­
mestic
banks

Invest­
ments
in sub­
sidiar­
ies not
consol­
idated

Demand
Other
assets

Total
assets/
total
liabil­
ities
Total

6

IPC

States
and
polit­
ical
sub­
divi­
sions

Domestic
Interbank
U.S.
Govt.

Com­
mer­
cial

Mutual
sav­
ings

Large banks—
Total
1974

33,262
32,794
35,297
29,510

20,994
21,499
22,205
21,945

4,037
4,221
4,493
4,543

12,812
12,695
12,838
11,747

1,477
1,480
1,495
1,519

23,188
22,903
23,156
23,285

480,137
480,725
486,015
475,078

163,147
161,834
167,455
155,738

113,210
113,146
117,111
110,523

6,064
6,064
6,076
5,890

3,714
1,714
4,796
3,573

24,731
24,580
24,570
22,294

838
779
739
651

5 .....................
12.....................
19.....................
2 6 .....................

34,060
32,055
30,809
30,531

22,208
19,650
21,539
23,710

4,136
4,505
4,655
4,635

11,717
11,537
11,397
11,123

1,681
1,681
1,680
1,692

35,022
35,035
33,876
35,539

508,810
504,403
499,819
501,077

161,001
158,996
156,667
155,387

114,720
116,472
112,656
112,725

6,327
5,868
5,942
6,366

2,332
1,714
3,565
1,657

23,655
22,034
21,647
21,123

677
649
618
590

2 * ...................
9 * ...................
16*...................
23*...................
30*...................

33,453
30,082
33,326
30,664
32,678

22,265
22,198
24,933
21,717
23,887

4,499
4,455
4,649
4,770
4,711

11,647
12,750
11,974
10,952
12,560

1,700
1,732
1,707
1,754
1,826

35,575
35,751
35,224
35,216
35,815

506,302
504,972
509,263
494,505
502,781

162,031
159,319
163,786
156,206
163,010

117,808
115,412
119,324
113,769
115,418

6,418
5,787
6,300
5,589
6,617

1,281
1,015
2,327
1,541
4,388

22,434
23,240
22,519
21,483
23,119

899
795
783
722
812

11,436
12,250
11,518
10,512

5,592
5,401
6,223
6,272

507
497
495
509

5,833
6,469
5,855
5,688

691
691
692
696

7,182
7,139
7,205
7,188

115,569
115,818
116,387
113,600

47,616
47,450
47,709
44,855

24,217
23,835
24,380
23,980

491
405
313
305

819
313
1,188
635

12,477
12,702
12,469
11,572

466
414
367
329

Apr.

3 .....................
10 .....................
17.....................
2 4 .....................

Mar.

Apr.

1975

New York City
1974
Apr.

3 ...................
10 .....................
17.....................
2 4 .....................

Mar.

5 .....................
12 .....................
19.....................
2 6 .....................

11,948
11,278
11,241
11,968

7,313
5,290
5,181
7,053

481
501
493
495

4,818
4,949
4,785
4,970

767
765
765
771

12,589
12,775
11,631
12,766

128,711
127,112
124,766
127,306

46,359
45,084
44,434
45,875

26,138
26,211
24,905
25,531

418
328
403
551

473
248
600
268

10,761
10,458
10,659
10,726

360
341
320
307

Apr.

2 * .................
9*...................
16*...................
23*.................
30*...................

11,469
10,883
11,569
11,622
11,859

6,810
7,497
7,503
6,580
6,896

485
507
506
512
499

4,666
6,253
5,292
4,491
6,203

782
781
793
797
804

12,481
12,593
12,361
12,352
12,428

127,272
128,173
128,386
123,774
126,664

46,093
45,702
45,936
45,280
47,850

26,600
25,161
26,550
25,026
26,466

583
309
498
286
490

116
110
236
235
859

10,451
11,758
10,899
11,017
11,999

532
445
442
403
432

21,826
20,544
23,779
18,998

15,402
16,098
15,982
15,673

3,530
3,724
3,998
4,034

6,979
6,226
6,983
6,059

786
789
803
823

16,006
15,764
15,951
16,097

364,568
364,907
369,628
361,478

115,531
114,384
119,746
110,883

88,993
89,311
92,731
86,543

5,573
5,659
5,763
5,585

2,895
1,401
3,608
2,938

12,254
11,878
12,101
10,722

372
365
372
322

1975

Outside
New York City
1974
Apr.

3 ....................
10 .....................
17.....................
2 4 .....................

Mar.

5 .....................
12 .....................
19.....................
2 6 .....................

22,112
20,777
19,568
18,563

14,895
14,360
16,358
16,657

3,655
4,004
4,162
4,140

6,899
6,588
6,612
6,153

914
916
915
921

22,433
22,260
22,245
22,773

380,099
377,291
375,053
373,771

114,642
113,912
112,233
109,512

88,582
90,261
87,751
87,194

5,909
5,540
5,539
5,815

1,859
1,466
2,965
1,389

12,894
11,576
10,988
10,397

317
308
298
283

Apr.

2 * .................
9 * .................
16*..................
2 3*.................
30*.................

21,984
19,199
21,757
19,042
20,819

15,455
14,701
17,430
15,137
16,991

4,014
3,948
4,143
4,258
4,212

6,981
6,497
6,682
6,461
6,357

918
951
914
957
1,022

23,094
23,158
22,863
22,864
23,387

379,030
376,799
380,877
370,731
376,117

115,938
113,617
117,850
110,926
115,160

91,208
90,251
92,774
88,743
88,952

5,835
5,478
5,802
5,303
6,127

1,165
905
2,091
1,306
3,529

11,983
11,482
11,620
10,466
11,120

367
350
341
319
380

1975

For notes see page A-22.




MAY 1975 o WEEKLY REPORTING BANKS

A 21

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)
Deposits (cont.)

IPC

Foreign

Govts.,
etc. 2

Com ­
m er­
cial
banks

Borrowings
from —

Time and savings

D em and (cont.)

C erti­
fied
and
offi­
cers’
checks

Total <5

Sav­
ings

Other

States
and
polit­
ical
sub­
divi­
sions

D o­
mes­
tic
inter­
bank

F or­
eign
govts. 2

Fed­
eral
funds
pur­
chased,
etc. 7

O ther
liabili­
ties,
etc. 8
F.R.
Banks

Wednesday

Others

Large banks —
Total

1974
1,327
2,203
1,671
1,479

4,701
4,670
4,422
4,669

8,562 197,888
8,678 200,141
8,070 200,935
6,659 203,065

58,485
58,394
58,036
57,923

102,517
104,080
103,904
105,641

23,578
23,986
24,733
24,993

5,114
5,330
5,490
5,676

7,480
7,651
8,105
8,152

54,544
54,569
53,303
51,234

118,651
118,854
118,579
118,791

25,009
24,895
24.660
24,526

7,263
7,763
8,104
8,349

11,626
11,579
11,681
11,703

117,469
116,371
114,667
114,434
113,854

24,322
24,387
25,067
25,292
25,016

8,292
8,279
8,449
8,549
8,615

11,814
11,822
11,837
11,780
11,922

823
1,017
939
1,728

6,301
6,250
6,060
6,111

19,604
19,091
19,597
19,490

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

55,401
51,752
47,580
49,900

40
798
738

3,952
4,094
4,090
4,019

23,449
23,439
24,240
23,771

...................M ar. 5
.............................. 12
.............................. 19
.............................. 26

50,786
52,706
53,687
45,198
46,371

24
1,041
1,344

3,712
3,662
3,773
3,623
3,687

23,120
23,379
23,260
23,619
23,981

...................Apr. 2?
.............................. 9 p
.............................. 16p
.............................. 23?
.............................. 30?

1975
1,153
1,223
1,029
1,129

5,181
5,123
4,939
4,978

6,956
5,913
6,271
6,819

224,687
225,720
226,110
226,916

60,209
60,698
61,152
61,555

1.281
1,373
1,260
1,178
1,385

4,650
4,637
4,707
4,777
4,989

7,260
7,060
6,566
7,147
6,282

226,136
225,326
224,220
224,297
223,612

62,238
62,508
62,272
62,327
62,389

N ew Y ork C ity

1974
1,122
1,916
1,456
1,233

3,534
3,471
3,262
3,415

4,490
4,394
4,274
3,386

36,230
37,241
37,421
37,797

5,130
5,127
5,090
5,076

22,080
22,810
22,698
22,901

1,804
1,815
1,724
1,726

3,222
3,390
3,475
3,581

3,847
3,946
4,269
4,345

11,785
11,420
11,368
11,206

950
1,017
753
933

3,807
3,732
3,596
3,648

3,452
2,749
3,198
3,911

47,030
47,058
46,716
46,947

5,257
5,307
5,349
5,407

27,994
27,853
27,421
27,638

1,466
1,413
1,326
1,305

3,624
3,827
3,915
3,854

7,238
7,213
7,267
7,280

15,205
14,778
11,829
13,795

1,069
1,170
1,067
1,005
1,211

3,358
3,210
3,417
3,387
3,553

3,384
3,539
2,827
3,921
2,840

47,219
46,759
46,428
46,172
45,839

5,497
5.541
5,543
5.542
5,550

27,608
27,163
26,672
26,554
26,234

1,301
1,284
1,320
1,279
1,262

3,921
3,891
3,937
3,893
3,777

7,405
7,431
7,534
7,482
7,684

13,746
15,006
15,022
11,321
11,464

240
145
150
385

2,821
2,851
2,895
2,849

6,970
6,807
6,959
6,646

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

615
53

1,609
1,683
1,804
1,828

7,827
7,822
8,684
8,130

................... M ar. 5
.............................. 12
.............................. 19
.............................. 26

295
470

1,626
1,441
1,538
1,484
1,424

7,905
8,543
8,763
8,506
8,796

................... Apr. 2 p
.............................. 9 p
.............................. 16 p
..............................23p
..............................30p

1975

Outside
N ew York C ity

1974
583
872
789
1,343

3,480
3,399
3,165
3,262

12,634
12,284
12,638
12,844

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

40,196
36,974
35,751
36,105

40
183
685

2,343
2,411
2,286
2,191

15,622
15,617
15,556
15,641

...................M ar. 5
..............................12
..............................19
..............................26

37,040
37,700
38,665
33,877
34,907

24
746
874

2,086
2,221
2,235
2,139
2,263

15,215
14,836
14,497
15,113
15,185

...................Apr. I p
.............................. 9p
! ! ! ! . ! .................i6 p
.............................. 23»
.............................. 30*>

205
287
215
246

1,167
1,199
1,160
1,254

4,072
4,284
3,796
3,273

161,658
162,900
163,514
165,268

53,355
53,267
52,946
52,847

80,437
81,270
81,206
82,740

21,774
22,171
23,009
23,267

1,892
1,940
2,015
2,095

3,633
3,705
3,836
3,807

42,759
43,149
41,935
40,028

203
206
276
196

1,374
1,391
1,343
1,330

3,504 177,657
3,164 178,662
3,073 179,394
2,908 179,969

54,952
55,391
55,803
56,148

90,657
91,001
91,158
91,153

23,543
23,482
23,334
23,221

3,639
3,936
4,189
4,495

4,388
4,366
4,414
4,423

212
203
193
173
174

1,292
1,427
1,290
1,390
1,436

3,876
3,521
3,739
3,226
3,442

56,741
56,967
56,729
56,785
56,839

89,861
89,208
87,995
87,880
87,620

23,021
23,103
23,747
24,013
23,754

4,371
4,388
4,512
4,656
4,838

4,409
4,391
4,303
4,298
4,238

1975

For notes see p. A-22.




178,917
178,567
177,792
178,125
177,773

A 22

WEEKLY REPORTING BANKS □ MAY 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Reserves
for—

Wednesday
Secur­
ities

M em oranda

Total
capital
ac­
counts

Total
loans
(gross)
ad ­
justed 9

Total
loans
and
D e­
mand
invest­
ments deposits
ad­
(gross)
justed i o
ad­
justed 9

Total

Large negotiable
time C D ’s
included in time
and savings deposits 11
Issued
to
IP C ’s

Issued
to
others

All other large
time deposits12

Total

Issued
to
IP C ’s

Issued
to
others

Gross
liabili­
ties of
banks
to
their
foreign
branches

L arge banks —
Total

1974
Apr.

3 ...................
1 0 ...................
1 7 ...................
2 4 ...................

Mar.

Apr.

4.994
4.991
4.995
4.992

32,762
32,758
32,658
32,654

278,037
278,669
281,706
279,738

365,267 101,440
366,271 102,746
368,573 102,792
365,057 100,361

69,479
71,540
71,753
73,600

48,173
49,788
49,589
51,235

21,306
21,752
22,164
22,365

5 ...................
12 ...................
1 9 ...................
2 6 .....................

5.635
5.653
5.636
5,631

34,625
34,649
34,638
34,655

292,410
292,896
290,414
287,497

379,552
381,166
378,504
375,791

100,954
103,193
100,646
102,076

87,649
88,059
88,038
88,812

60,198
60,427
60,023
60,538

27,451
27,632
28,015
28,274

36,749
36,791
36,542
36,137

20.093
20.094
19,943
19,630

16,656
16,697
16,599
16,507

1,899
1,684
2,671
1 ,922

2 * .................
9 p .................
16*...................
2 3 * ...................
30*...................

5,661
5.653
5 ,674
5,665
5,705

34.788
34,859
34,771
34.788
35,002

288,473
288,326
287.667
285,062
285.667

377,216
378,609
378,127
373,626
374,530

104,863
104,982
105,614
102,518
102,825

87,397
86,545
85,264
85,017
84,355

59,135
58,260
56,776
56,581
55,911

28,262
28,285
28,488
28,436
28,444

35,774
35,580
35,859
36,055
35,956

19,402
19,166
18,851
18,799
18,707

16,372
16,414
17,008
17,256
17,249

1 ,950
2,834
2,738
2,175
2,677

1.370
1.370
1 ,376
1 ,377

8,537
8,534
8,509
8,485

65,321
65,357
66,404
65,102

80,555
80,710
81,359
79,254

22,884
22,185
22,534
22,136

21,933
22,944
22,969
23,373

15,093
15,805
15,660
16,034

6,840
7,139
7,309
7,339

2,717
2,908
3,020
2,495

1975

N ew York C ity

1974
Apr.

3 ....................
1 0 .....................
1 7 .....................
2 4 .....................

Mar.

5 .....................
12.....................
19.....................
2 6 .....................

1,616
1,628
1.631
1.631

9,065
9,059
9,053
9,047

72,927
73,596
72,422
70,752

88,283
88,853
87,934
86,081

23,177
23,100
21,934
22,913

30,256
30,337
29,999
30,384

20,259
20.154
19,814
20,197

9,997
10,183
10,185
10,187

8,977
8,798
8,738
8,603

5,383
5,304
5,205
5,138

3,594
3,494
3,533
3,465

1,120
1 ,005
1,902
1,014

2 p ...................

1,615
1,602
1,608
1 ,615
1 ,631

9,068
9,120
9,091

86,705
86,627
86,119

30,409
30,101
29,811
29,625
29,362

19,954
19,647
19,210
19.154
18,782

10,455
10,454
10,601
10,471
10,580

8,582
8,538
8,453
8,357
8,323

5,194
5,153

83,918

24,057
22,951
23,232
22,406
23,133

5 ,0 4 7

9,190

71,197
70,713
70,368
68,993
69,488

3,388
3,385
3,406
3,393
3,392

1,151
2,086
1 ,803
1,341
1 , (542

3,624
3,621
3,619
3,615

24,225
24,224
24,149
24,169

212,716
213,312
215,302
214,636

284,712
285,561
287,214
285,803

78,556
80,561
80,258
78,225

47,546
48,596
48,784
50,227

33,080
33,983
33,929
35,201

14,466
14,613
14,855
15,026

1 ,829
2,072
1 ,683
1 ,206

1975

Apr.

9 p ......................

16*...................
23*...................
30*...................

9 ,1 0 1

8 3 ,7 3 1

4,964
4,931

Outside
New York C ity

1974
Apr.

3 .....................
1 0 .....................
1 7 .....................
2 4 .....................

836
1,337
1 ,289

1975
M ar.

5 .....................
1 2 .....................
1 9 .....................
2 6 .....................

4,019
4,025
4,005
4,000

25,560
25,590
25,585
25,608

219,483
219,300
217,992
216,745

291,269
292,313
290,570
289,710

77,777
80,093
78,712
79,163

57,393
57,722
58,039
58,428

39,939
40,273
40,209
40,341

17,454
17,449
17.830
18,087

27,772
27,993
27,804
27,534

14,710
14,790
14,738
14,492

13,062
13,203
13,066
13,042

779
679
769
908

Apr.

2 * ...................
9 * ...................
16*...................
2 3 * ...................
30* ...................

4,046
4,051
4,066
4,050
4,074

25,720
25,739
25,680
25,687
25,812

217,276
217,613
217,299
216,069
216,179

290,511
291,982
292,008
289,895
290,612

80,806
82,031
82,382
80,112
79,692

56,988
56,444
55,453
55,392
54,993

39,181
38,613
37,566
37,427
37,129

17,807
17.831
17,887
17,965
17,864

27,192
27,042
27,406
27,698
27,633

14,208
14,013
13,804
13,835
13,776

12,984
13,029
13,602
13,863
13,857

799
748
935
834
1 ,035

1 Includes securities purchased under agreements to resell.
2 Includes official institutions and so forth.
3 Includes short-term notes and bills.
4 Federal agencies only.
5 Includes corporate stocks.
^ Includes U.S. Govt, and foreign bank deposits, not shown separately.
7 Includes securities sold under agreements to repurchase.




8 Includes minority interest in consolidated subsidiaries.
9 Exclusive of loans and Federal funds transactions with domestic com­
mercial banks.
10 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
11 Certificates of deposit issued in denominations of $100,000 or more.
12 All other time deposits issued in denominations of $100,000 or more
(not included in large negotiable C D ’s).

MAY 1975 □ BUSINESS LOANS OF BANKS

A 23

COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
Outstanding

Net change during-

1975

Industry
Apr.
30

Apr.
23

1975

Apr.
16

Apr.
9

Apr.
2

D urable goods m anufacturing:
2.058 2,077 2,096 2,058 2,029
Primary m etals..................................
8,141
M achinery...........................................
8,178 8,259 8,154 8,044
3,653 3,672 3,685
3,702 3,633
Transportation equipm ent..............
2,895 2,891
O ther fabricated metal p ro d u c ts ..
2,934 2,972 2,949
4,446 4,458 4,466 4,448 4,443
O ther durable goo d s..........................
Nondurable goods manufacturing:
Food, liquor, and to b acco ...............
3,646 3,678 3,668 3,663
3,708
3,316 3,287 3,317 3,333 3,316
Textiles, apparel, and leather...........
2,433
2.316 2,375 2,283 2.255
Petroleum refining..........................
3,332 3.316 3,351
3,294 3,457
Chemicals and ru b b e r.......................
2,234 2,230 2,230 2,206 2,202
O ther nondurable g o o d s...................
Mining, including crude petroleum
4,809 4,826 4,922 4,812 4,806
and natural g as..............................
1 ,334 1 ,343 1,325
1,373
1,441
T rade: C om m odity dealers...................
6,001
5,858
6,023 6,147 6,148
O ther wholesale.........................
6,549 6,497 6,583 6,653 6,627
R etail............................................
6,244 6,283 6,267 6,220 6,267
T ran sp o rta tio n .........................................
2,303 2,307 2,285 2,252 2.256
C om m unication.......................................
7,484 7,455 7,442 7,558 7,687
O ther public utilities..............................
5,609 5,595 5,575 5,536 5,556
C o n stru ctio n .............................................
Services....................................................... 10,967 11,010 11,038 I I ,073 11,162
All other domestic lo an s.......................
9,918 9,858 10,217 10,138 10,075
2,161
2,163
2.059 2,058 2,201
Bankers acceptances..............................
Foreign commercial and industrial
4,425 4,457 4,327 4,370 4,344
lo an s...................................................
T otal classified lo an s.............................. 103,713 103,793 104,586 104,406 104,568
Com m , paper included in total clas­
sified loans 1.......................................

Apr.

Mar.

14
53
-1 5 2
-3 5

72
-228
-112
94
-7 9

-1 8 3
-4 3
234
-1 1 7
23

1974

1975

Feb.

10
4
95
-8
-8 5

IV

1974

III

2nd
half

1st
half

39
-6 5 3
-7
19
-4 2 1

77
-1 2 7
365
-1 7 8
-2 6 5

63
349
340
253
512

140
222
705
75
247

56
1,848
587
503
909

-157
49
28
79
51

-2 8 3 -1,092
90
-1 5 1
-5 1
-6 6
87
67
-2 9 5
-2 2 8

484
-7 2 5
473
-5 5
-1 3 5

500
107
494
311
158

984
-6 1 8
967
256
23

-2 2 0
909
-1 0 8
610
338

44
-9 5
-3 1 7
35
8
173
-1 1 6
42
-2 8 9
76
-1 7 3

-1 7 9
120
102
38
-1 1 8
-1 7
-6 4
-2 0 2
6
-1 3 4

-5 0
-2 7 2
-1 0 5
-6 4 8
-1 4 6
-5 5 3
-193
-8 8
-1 5 0
—4
-3 8
-3 6 9
-281 -1,018
-4 4
-5 3 5
-1 5 5
-6 9 8
-1 2 6
-2 9 0
571
507

556
703
349
-2 4 6
261
90
609
-2 7 6
171
387
309

290
-1 9 5
135
-2 1 9
22
-9 2
1,088
231
133
357
-3 6 5

846
508
484
-465
283
-2
1,697
-4 5
304
744
-5 6

387
-2 7 3
829
1,099
139
475
1 ,044
594
i i117
94
1,
443

135
-6 7 5

-1 0 8
-7 6 7

104
63
-8 1 0 -6,637

-2 4 9
2,578

-2 0 8
4,264

-4 5 7
6 ll
6,842 1 2 ,4 9 1

-3 2 9

-7 2 7

-9 5 4

3,468

4,795

8,263

247

Total commercial and industrial loans
of large commercial b an k s........... 125,413 125,291 126,056 125,874 125,970

-6,133

1 3 ,4 9 1

For notes see table below.

"TER M ” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
N et change during—

Outstanding

D urable goods manufactur­
ing:
Primary m etals....................
M achinery.......................... .
T ransportation equipment,
O ther fabricated metal
p ro d u c ts.......................... .
O ther durable goods.........,
N ondurable goods manufac­
turing:
Food, liquor, and tobacco,
Textiles, apparel, and
leather...............................
Petroleum refining............ .
Chemicals and rubber.
O ther nondurable g o o d s .,
Mining, including crude pe­
troleum and natural gas,
T rade: Com m odity d e a le rs.,
O ther wholesale
R etail...........................
T ransportation....................... .
C om m unication..................... .
O ther public utilities..............
C onstructio n .......................... .
Services....................................
All other domestic loans
Foreign commercial and in­
dustrial lo an s................. .
Total loans..............................

1974

1975

In d u stry

Dec.
31
(Tues.)

Apr.
30

M ar.
26

Feb.
26

Jan.
29

1,323
4,302
1 ,705

1,284
4,071
1 ,672

1,237
4,117
1,712

1 ,249
4,138
1 ,737

1,210
4,145
1 ,673

1 ,280
2,210

1,312
2,251

1,323
2,256

1,243
2,288

1,197
2,391

Aug.
28

2nd
h alf

II

III

IV

I

1974

Oct.
30

Sept.
25

1,176
4,049
1,586

1,107
3,970
1,570

1,133
3,896
1,535

1,104
3,789
1,419

74
-7 4
-1

77
249
138

28
610
125

41
172
45

105
859
263

1,113
2,361

1,093
2,339

1,066
2,268

1,000
2,198

115
-1 4 0

131
123

112
161

43
192

243
284

1 ,571

1,561

1 ,614

1,703

1,763

1,674

1,661

1,649

1,604

-2 0 2

114

78

42

192

1,091
1,617
1,814
1 ,126

1,158
1,483
1,846
1 ,130

1,083
1,458
1,812
1 ,119

1,124
1,542
1,839
1,221

1,145
1,518
1,878
1,235

1,179
1,272
1,818
1 ,170

1,187
1,208
1,820
1,187

1,151
1,097
1,778
1,204

1,171
1,048
1,790
1,189

13
-3 5
-3 2
-1 0 5

-6
421
100
31

23
134
41
33

39
18
134
32

17
555
141
64

3,636
142
1 ,487
2,192
4,492
1,148
4,017
2,272
5,352
3,210

3,537
150
1,450
2,283
4,524
1,135
4,034
2,197
5,430
3,082

3,446
153
1,420
2,298
4,505
1,125
3,870
2,191
5,370
3,144

3,523
169
1,472
2,369
4,455
1,158
3,885
2,224
5,320
3,079

3,701
155
1,492
2,594
4,550
1,082
3,963
2,294
5,532
3,224

3,620
171
1,431
2,602
4,379
1,076
3,987
2,281
5,417
3,255

3,468
157
1,488
2,578
4,370
1,047
3,810
2,237
5,340
3,215

3,339
139
1,449
2,527
4,349
1,029
3,672
2,272
5,350
3,122

3,319
166
1,419
2,529
4,322
1,021
3,664
2,218
5,301
3,074

-1 6 4
-5
-4 2
-311
-2 6
53
71
-9 7
-1 0 2
-1 4 2

362
16
43
67
201
53
291
22
182
102

209
-2
43
99
-7 6
-1
229
142
77
105

-1 1 5
1
83
-5 2
8
64
289
232
197
209

571
14
86
166
125
52
520
164
259
207

2,596

2,528

2,544

2,524

2,457

2,473

2,487

2,401

2,500

71

56

-1 4 7

198

-9 1

48,583 48,118 47,797 48,262 49,199 48,090 47,339 46,426 45,845 -1 ,0 8 1

2,773

2,023

1,872

4,796

1 New item to be reported as o f the last Wednesday o f each month.
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.




Nov.
27

1974

1975

For description of series see article “ Revised Series on Commercial and
Industrial Loans by Industry,” Feb. 1967 Bulletin , p. 209.
Commercial and industrial “ term ” loans are all outstanding loans with
an original maturity of more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity o f the commitment was in excess o f 1 year.

A 24

DEM AND DEPOSIT OW NERSHIP □ MAY 1975
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1
(In billions o f dollars)
Type o f holder
Class o f bank, and quarter or month

Total
deposits,
IPC

Financial
business

Nonfinancial
business

Consumer

1970—Dec.........................................................................................

17.3

92.7

53.6

1.3

10.3

175.1

1971—June........................................................................................

18.1
17.9
18.5

89.6
91.5
98.4

56.2
57.5
58.6

1.3
1.2
1.3

10.5
9 .7
10.7

175.8
177.9
187.5

Dec.........................................................................................

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— M ar........................................................................................
Ju n e.......................................................................................
Sept........................................................................................
Dec.........................................................................................

18.6
18.6
18.8
19.1

102.8
106.6
108.3
116.2

65.1
67.3
69.1
70.1

1.7
2.0
2.1
2 .4

11.8
11.8
11.9
12.4

200.0
206.3
210.3
220.1

1974—M ar........................................................................................
J u n e .......................................................................................
Sept........................................................................................
Dec.........................................................................................

18.9
18.2
17.9
19.0

108.4
112.1
113.9
118.8

70.6
71.4
72.0
'7 3 .3

2.3
2 .2
2.1
2 .3

11.0
11.1
10.9
11 .7

211.2
215.0
216.8
'2 2 5 .0

1975—M ar.p ....................................................................................

18.6

111.3

73.2

2.3

10.9

216.3

Foreign

All
other

All insured commercial banks:

Dec.........................................................................................
1972—M ar........................................................................................
Ju n e .......................................................................................

Weekly reporting banks:
1971—Dec.........................................................................................

t4 .4

58.6

24.6

1.2

5.9

104.8

1972—Dec.........................................................................................

14.7

64.4

27.1

1.4

6.6

114.3

1973—Dec.........................................................................................

14.9

66.2

28.0

2 .2

6.8

118.1

1974—A pr.........................................................................................
M ay.......................................................................................
June.......................................................................................
July........................................................................................
Aug........................................................................................

Dec.........................................................................................

14.7
14.2
14.1
14.4
14.1
13.9
14.7
14.6
14.8

62.2
62.3
63.4
63.5
62.6
64.4
64.4
65.9
66.9

29.6
28.0
28.1
28.5
28.0
28.4
28.4
28.7
29.0

2.1
2.1
2 .0
2.1
1.9
2 .0
2 .0
2.1
2 .2

6.2
6.1
6.3
6.5
5.8
6.3
6.4
6.5
6.8

114.7
112.7
113.9
115.1
112.5
115.0
115.8
117.7
119.7

1975—Jan ..........................................................................................
Feb.........................................................................................
M ar.? ....................................................................................

14.8
14.4
14.1

65.6
63.1
63.2

29.2
27.9
28.2

2 .2
2.3
2 .2

6.6
6.2
6 .4

118.3
113.9
114.1

1 Including cash items in process o f collection.
N o t e . —Daily-average balances maintained during m onth as estimated

from reports supplied by a sample o f commercial banks. For a detailed
description o f the type o f depositor in each category, see June 1971
B u l l e t in , p. 466.

DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions o f dollars)
Class o f
bank
All com m ercial............................
Insured.................................. ..
N ational m em ber...................
State m em ber...........................
All m em ber..................................

Dec. 31,
1972
559
554
311
71
381

Dec. 31,
1973
507
503
288
64
352

June 30,
1974
460
457
265
65
330

Dec, 31,
1974
389
387
236
39
275

1 Beginning Nov. 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 million), as described in the B ulletin for
July 1972, p. 626. Categories shown here as “ Other large** and “All other
m ember” parallel the previous “ Reserve City” (other than in New York
City and the City o f Chicago) and “C ountry” categories, respectively
(hence the series are continuous over time).




Class o f
bank
All member—Cont.
O ther large banks *............
All other member 1.............
All nonm em ber........................
N oninsured...........................

Dec. 31,
1972

69
313
177
172
5

Dec. 31,
1973

58
294
155
152
3

June 30,
1974

63
267
130
127
3

Dec, 31,
1974

69
206
115
112
3

N ote.—H ypothecated deposits, as shown in this table, are treated one
way in m onthly and weekly series for commercial banks and in another
way in call-date series. T hat is, they are excluded from “ Time deposits”
and “ Loans” in the monthly (and year-end) series as shown on p. A-14;
from the figures for weekly reporting banks as shown on pp. A-l 8-A-22
(consumer instalm ent loans); and from the figures in the table at the
bottom o f p. A-l 3. But they are included in the figures for “ Time de­
posits” and “ Loans” for call dates as shown on pp. A -l4 -A -l7.

MAY 1975 □ LOAN SALES BY BANKS; OPEN MARKET PAPER

A 25

LOANS SOLD OUTRIG H T BY COMMERCIAL BANKS
(Amounts outstanding; in millions o f dollars)
To selected related institutions1
By type o f loan

D ate
Total

Commercial
and
industrial

Real
estate

All
other

1975—Jan.

1 ..........................
8 ...........................
15...........................
2 2 ...........................
29...........................

4,809
4,641
4,663
4,664
4,642

2,746
2,679
2,703
2,691
2,724

182
184
181
181
181

1,881
1,778
1,779
1,792
1,737

Feb.

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

4,475
4,609
4,510
4,545

2,630
2,755
2,661
2,707

181
175
174
179

1,664
1,679
1 ,675
1,659

M ar.

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

4,688
4,721
4,693
r4,677

2,741
2,800
2,769
2,791

201
201
204
204

1,746
1,720
1,720
n ,682

Apr.

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

4,584
4,587
4,529
4,519
4,587

2,714
2,748
2,715
2,704
2,744

202
201
201
197
204

1 ,668
1,638
1 ,613
1,618
1,639

1 To ban k ’s own foreign branches, nonconsolidated non­
bank affiliates o f the bank, the bank’s holding company (if
not a bank), and nonconsolidated nonbank subsidiaries o f
the holding company.
N ote .—Series changed on Aug. 28, 1974. F o r a comparison
o f the old and new data for th a t date, see p. 741 o f the Oct.
1974 B ulletin . Revised figures received since Oct. 1974
th at affect th at com parison are shown in note 2 to this table
in the Dec. 1974 B ulletin , p. A-27.

COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
(In millions of dollars)
D ollar acceptances

Com m ercial paper

End
of
period

Bank-related 5

Financial
com panies1

N on­
finan­
All
issuers
cial
Dealer- D i­
com­ Dealer- D i­
placed2 rectly- panies4 placed rectlyplaced3
placed

Held b y -

Total

F.R. Banks
Others

Total

Own
bills

Bills
bought

Own
acct.

For­
eign
corr.

Imports
into
United
States

Ex­
ports
from
United
States

All
other

3,134
1,997

3,603
4,317
4,428
5,451
7,058

1,198
1,906
1,544
1,567
2,694

983
1,447
1,344
1,318
1,960

215
459
200
249
735

193
164
58
64
57

191
156
109
146
250

2,022
2,090
2,717
3,674
4,057

997
1,086
1,423
1,889
2,601

829
989
952
1,153
1,561

1,778
2,241
2,053
2,408
2,895

524
1,226
1,938

1,449
1,411
2,943

7,889
6,898
8,892

3,480
2,706
2,837

2,689
2,006
2,318

791
700
519

261
106
68

254
179
581

3,894
3,907
5,406

2,834
2,531
2,273

1,546
1,909
3,499

3,509
2,458
3,120

10,794
9,250
9,697
10,046
9,968
10,562
10,885
12,659
14,003
14,532
12,694

1,923
2,137
2,270
1,978
1,579
1,465
2,425
2,185
2,046
1,947
1,874

3,606
3,908
4,564
5,106
5,373
5,585
6,350
6,446
6,408
6,697
6,444

9,364
10,166
10,692
11,727
13,174
15,686
16,167
16,035
16,882
17,553
18,484

2,854
2,986
3,232
3,089
3,535
3,499
3,388
3,347
3,291
3,789
4,226

2,328
2,413
2,744
2,642
3,066
2,983
2,866
2,942
2,872
3,290
3,685

525
573
488
447
469
516
522
405
419
499
542

69
296
216
373
304
218
277
504
218
611
999

592
684
700
732
795
1,023
1,202
1,459
2,037
1,702
981

5,850
6,200
6,544
7,532
8,540
10,947
11,300
10,724
11,335
11,452
12,278

2,434
2,827
2,900
2,952
3,287
3,589
3,585
3,526
3,793
3,810
4,023

3,182 3,748
2,979 4,361
2,833 4,959
2,899
5,876
3,219
6,668
3,774 8,323
3,933 8,649
3,806 8,703
3,759 9,330
3,709 10,035
4,067 10,394

14,648
14,732

1,946
1,854

6,625
7,228

18,602
18,579

4,357
4,864

454
494

966
993

384 12,894
130 12,593

4,120
3,974

4,314
4,210

196 6
196 7
196 8
196 9
1970............

13,645
17,085
21,173
32,600
33,071

2,332
2,790
4,427
6,503
5,514

10,556
12,184
13,972
20,741
20,424

757
2,111
2,774
5,356
7,133

1,160
352

1 9 7 1 . .. .. ..
1972............
1973............

32,126
34,721
41,073

5,297 20,582
5,655 22,098
5,487 27,204

6,247
6,968
8,382

1974-Feb...
M ar...
A p r...
M a y ..
J u n e ..
Ju ly ..
Aug...
S e p t..
O c t...
N o v ..
D e c ..

47,164
44,690
44,677
46,171
44,846
45,561
47,967
49,087
51,754
51,883
49,070

7,201
6,571
6,228
5,699
4,970
4,655
5,308
5,333
5,242
4,860
4,611

29,169
28,869
28,752
30,426
29,908
30,344
31,774
31,095
32,509
32,491
31,765

1975—Jan ..
Feb..

51,528
52,325

5,029 31,851
5,167 32,426

1 Financial companies are institutions engaged prim arily in activities
such as, but not limited to, commercial, savings, and mortgage banking;
sales, personal, and mortgage financing; factoring, finance leasing, and
other business lending; insurance underwriting; and other investment
activities.
2 As reported by dealers; includes all financial company paper sold in
the open m arket.
3 As reported by financial companies that place their paper directly
with investors.




Accepting banks

Based on-

3,903
4,370

10,168
10,396

4 Nonfinancial companies include public utilities and firms engaged
primarily in activities such as communications, construction, m anufac­
turing, mining, wholesale and retail trade, transportation, and services.
5 Included in dealer- and directly-placed financial company columns.
Coverage of bank-related companies was expanded in Aug. 1974. M ost
o f the increase resulting from this expanded coverage occurred in directlyplaced paper.

A 26

INTEREST RATES □ MAY 1975
PRIME RATE CHARGED BY BANKS
(Per cent per annum)

Effective date
1974— Apr. 11
15,
19,
Apr. 23.
24.

Rate
9%-98/ifr10a
lOe-lOVio10 Va
10-lOi/io10 Va *

Effective date
1974—June

3.
7.
10.
21.
24,

10VAm-\0*ho
10Va » -

25,

10*/io—
10%
25.

26,

10Va-10*I io-

28,

26.
30.

May

2.
3.
6.
7.
10,
13,
17,
20

Rate

July

lo H -1 1
10%B106/io—
103^-11

3

Rate

11% b-11«/io- 1974— Oct. 28,
11 %
ll^ -ll% a ll«/io
Nov. 4
ll$ - ll% a
ll% a -1 1 3 4
11

10% -11<Wa » 11%

ll% a - ll% 118/10
lm -im a l l 8/io
l l % a - l l 8/n

10% -1034a11
10-10% 1034a
10- 101410% 1034a
10- 1014I0%a

18,
19
25,
Dec.

2.

934-10-1014
-10% a

1975—Jan.

9,

9 % -1 0 1 0 i4 a 10%
9% -934 - 1 0 10y4a
9% -93410a-10i4
9% -934a-10
9% b- 934-10
9%a-934

iorra 2-

Aug. 20

1 0 3 4 -1 2 a

Sept. 26,

1 0 3 4 -1 1 % -

Oct.

7,

1034-11%1134.-12

15

1 0 3 4 -1 H 4 -

21,

1034- 111411%1134

1134-12a

13,
15
20
28
29

H% -

1134-

N ote.—Beginning Nov. 1971, several banks adopted a floating prime
rate keyed to money market variables, a denotes the predominant prime
rate quoted by commercial banks to large businesses.

Effective date
1975—Feb.

3
4,
10,
18,
24,

1034-1 l a 1114
10%-1034-

14

ll^a-1 1 8 /io 12
11 s/io-l 2a
12a-12%

5,
9
23

10Vi-10«/io1034 B -ll
106/io-10%a
-11
lOe/io-lO
11a
11a
1 1 -ll^ a
ll^ a -llV io
1114-11-Vio
-1 1 % "
H % i-ll%

Effective date

Mar.

3
5,
6,
10
17,
18
24
25.
31.

Rate
834-9-914■9%-934
834-9-914*
834-9a
8% -834a-9
8%a-834
814- 8% a
svA » m

734- 8148-

8%
734-8.-814
734-8b
7% -734a-8
7%a-734_8
7%a-734
714-7% a 734

Effective Apr. 16, 1973, with the adoption o f a two-tier or “dual prime
rate,” this table shows only the “large-business prime rate,” which is the
range o f 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 o f dollars)
All sizes

1-9

100-499

10-99

500-999

1,000 and over

Center
Feb.
1975

Nov.
1974

Feb.
1975

Nov.
1974

Feb.
1975

Nov.
1974

Feb.
1975

Nov.
1974

Feb.
1975

Nov.
1974

Feb.
1975

Nov.
1974

11.97
12.05
12.46
11.93
11.43
11.77
11.86

9.93
9.74
10.09
9.85
10.22
9.83
10.05

11.80
11.56
12.34
11.77
11.62
11.74
11.56

9.73
9.5 0
9.96
9.74
10.12
9.84
9.84

11.44
11.21
11.91
11.53
11.62
11.36
11.32

11.99
11.89
11.68
12.57
13.09
12.28
11.68

10.18
9.87
10.98
10.24
9.00
10.75
10.17

11.60
11.77
11.75
11.79
10.98
11.82
11.57

8.98
7.61
10.90
10.22
9.76
10.37
9.40

11.56
11.57
12.50
11.72
11.25
12.06
11.33

12.09
12.37
11.98
11.90
12.14
12.28
12.04

10.16
9.78
10.20
9.45
11.95
10.09
10.94

11.71
12.02
11.55
11.75
12.02
12.68
11.60

10.21
9.53
10.49
11.81
9.16
9.60
9.78

12.23
11.93
12.61
12.44
17.29
12.49
12.06

Short-term
35 centers.........................................
New York C ity..........................
7 Other Northeast.....................
8 North Central.........................
7 Southeast..................................
8 Southwest................................
4 West Coast...............................

9 .94
9.61
10.31
9.87
10.24
10.01
9.99

11.64
11.35
12.22
11.66
11.52
11.56
11.48

10.94
10.82
12.07
10.55
10.59
10.36
11.23

11.81
12.31
13.03
11.54
11.44
10.87
12.26

10.73
10.60
11.31
10.49
10.52
10.47
10.75

12.04
12.11
12.84
11.99
11.34
11.64
11.99

10.25
10.14
10.64
10.09
10.21
10.11
10.22

Revolving credit
35 centers.........................................
New York C ity..........................
7 Other Northeast.....................
8 North Central.........................
7 Southeast..................................
8 Southwest...............................
4 West Coast..............................

9.20
7.84
10.83
10.32
9.77
10.54
9 .52

11.60
11.60
12.26
11.82
11.53
12.06
11.39

11.03
10.98
12.05
11.77
10.61
11.61
10.67

12.71
12.25
12.08
13.34
‘ 1*3:03’
12.70

10.56
10.59
10.60
11.14
10.41
11.18
10.13

12.00
11.97
11.98
12.29
11.41
12.33
11.89

10.14
9.98
9.97
10.97
10.35
10.57
9.77

Long-term
35 centers.........................................
New York C ity..........................
7 Other Northeast.....................
8 North Central.........................
7 Southeast..................................
8 Southwest.................... ............
4 West C oast..............................




10.26
9.62
10.48
11.33
10.42
9.87
10.07

12.16
11.96
12.35
12.29
13.81
12.27
12.01

10.54
9.27
10.99
10.32
9.67
11.99
8.36

11.74
8.87
12.66
10.90
11.21
12.39
12.75

10.55
10.82
10.77
10.25
10.47
10.12
10.77

12.04
11.45
12.52
11.89
11.45
12.18
11.99

10.57
10.46
10.51
10.17

11.11
10.46
11.28

MAY 1975 o IN TE R E S T RATES

A 27

MONEY MARKET RATES
(Per cent per annum)

Prime
commercial
p a p e r1

Period

90-119
days

1967............................
1968............................
1969............................

4 to 6
months

Finance
CO.

paper
placed
directly,
3 to 6
m onths2

U.S. Governm ent securities5
Prime
bankers’
accept­
ances,
90 days3

Fed­
eral
funds
ra te 4

3-month bills 6
Rate
on new
issue

M arket
yield

6-m onth bills 6
R ate
on new
issue

M arket
yield

9- to 12-month issues
1-year
bill (m ar­ O ther 7
ket yield) 6

3- to 5year
issues?

5.10
5.90
7.83

4.89
5.69
7.16

4.75
5.75
7.61

4.22
5.66
8.21

4.321
5.339
6.677

4.29
5.34
6.67

4.630
5.470
6.853

4.61
5.47
6.86

4.71
5.46
6.79

4.84
5.62
7.06

5.07
5.59
6.85

4.66
8 .2 0
10.05

7.72
5.11
4.69
8.15
9 .87

7.23
4.91
4.52
7.40
8.62

7.31
4.85
4 .47
8.08
9.92

7.17
4.66
4 .44
8.74
10.51

6.458
4.348
4.071
7.041
7.886

6.39
4.33
4.07
7.03
7.84

6.562
4.511
4.466
7.178
7.926

6.51
4.52
4.49
7.20
7.95

6.49
4.67
4.7 7
7.01
7.71

6.90
4.75
4.86
7.30
8.25

7.37
5.77
5.85
6.92
7.81

Sept................
O ct..................
N ov................
D ec.................

9 .92
10.82
11.18
11.93
11.79
11.36
9.55
8.95
9.18

9.79
10.62
10.96
11.72
11.65
11.23
9.3 6
8.81
8.98

8.43
8.94
9.0 0
9.0 0
9.31
9.41
9.03
8.50
8 .50

9.61
10.68
10.79
11.88
12.08
11.06
9.34
9.03
9.19

10.51
11.31
11.93
12.92
12.01
11.34
10.06
9.45
8.53

8.229
8.430
8.145
7.752
8.744
8.363
7.244
7.585
7.179

8.33
8.23
7.90
7.55
8.96
8.06
7.46
7.47
7.15

8.171
8.496
8.232
8.028
8.853
8.599
7.559
7.551
7.091

8.32
8.40
8.12
7.94
9.11
8.53
7.74
7.52
7.11

8.08
8.21
8.16
8.04
8.88
8.52
7.59
7.29
6.79

8.66
8.78
8.71
8.89
9.5 4
8.95
8.04
7.67
7.33

7.99
8.24
8.14
8.39
8.64
8.38
7.98
7.65
7.22

1975—Jan ..................
Feb.................
M ar................
A pr.................

7.39
6.36
6.06
6.11

7.30
6.33
6.06
6.15

7.31
6.24
6.0 0
5.97

7.54
6.35
6.22
6.15

7.13
6.24
5 .5 4
5.49

6.493
5.583
5.544
5.694

6.26
5.50
5.49
5.61

6.525
5.674
5.635
6.012

6.36
5.62
5.62
6.00

6.27
5.56
5.7 0
6.4 0

6.74
5.97
6.10
6.83

7.29
6.85
7.00
7.76

1970............................
1971............................
1972............................
1973............................
1974...........................
1974—A pr.................
M ay ...............
Ju n e ...............
July.................

Week ending—
1975—Jan.

4 . ..
11
1 8 ... ,
2 5 ........

9.13
7.95
7.63
6.85

8.84
7.83
7.53
6.85

8.47
7.98
7.65
6.78

9.08
8.33
7.66
7.03

7.35
7 .70
7.22
7.17

7.113
6.698
6.678
6.369

6.96
6.59
6.54
5.98

7.101
6.682
6.646
6.373

6.99
6.64
6.54
6.14

6.70
6.45
6.44
6.15

7.17
6.91
6.95
6.66

7.26
7.23
7.32
7.36

Feb.

1........
8 ........
15........
2 2 ........

6.55
6.50
6.38
6.31

6.48
6.45
6.34
6.28

6.38
6.25
6.25
6.25

6.59
6.34
6.47
6.26

6.99
6.46
6.28
6.29

5.606
5.669
5.800
5.408

5.68
5.61
5.65
5.25

5.825
5.736
5.800
5.483

5.92
5.65
5.70
5.43

5.87
5.51
5.60
5.44

6.31
5.95
6 .06
5.84

7.23
6.91
6.92
6.71

M ar.

1........
8 ........
15,
22
2 9 ,,,

6.25
6.25
6.08
5.95
5.91

6.25
6.25
6.08
5.95
5.91

6.23
6.18
6.05
5 .90
5.88

6.33
6.37
6.29
6.11
6.11

6.15
5.88
5.4 4
5.38
5.53

5.455
5.637
5.622
5.376
5.542

5.47
5.57
5.46
5.41
5.53

5.675
5.742
5.655
5.473
5.669

5.66
5.68
5.56
5.5 4
5.69

5.67
5.69
5.62
5.66
5.81

6.04
6.07
6.03
6.06
6.20

6.83
6.86
6.88
7.05
7.19

Apr.

5 ........
12
19........
2 6 ...

6.03
6.18
6.15
6.13

6.03
6.23
6 .20
6.13

5.88
5.95
6.00
6.00

6.15
6.20
6.11
6.16

5.5 9
5.28
5.44
5 .5 4

5.562
6.021
5.538
5.653

5.62
5.74
5.44
5.66

5.786
6.351
5.843
6.067

5.90
6.09
5.86
6.09

6.20
6.48
6.30
6.49

6.58
6.94
6.76
6.91

7.47
7.74
7.75
7.90

M ay

3........

6.03

6.15

6.00

6.07

5.71

5.716

5.51

6.158

5.95

6 .36

6.81

7.87

1 Averages o f the m ost 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 Beginning Aug. 15, 1974, the rate is the average o f the m idpoint o f
the range o f daily dealer closing rates offered for domestic issues; prior
d ata are averages o f the m ost representative daily offering rate quoted by
dealers.
4 Seven-day averages for week ending Wednesday. Beginning with
statem ent week ending July 25, 1973, weekly averages are based on the
daily average o f the range o f rates on a given day weighted by the volume




o f transactions at these rates. F or earlier statem ent weeks, the averages
were based on the daily effective rate—the rate considered m ost repre­
sentative o f the day’s transactions, usually the one at which m ost trans­
actions occurred.
5 Except for new bill issues, yields are averages com puted from daily
closing bid prices.
6 Bills quoted on bank-discount-rate basis.
7 Selected note and bond issues.
N ote.—F igures for Treasury bills are the revised series described on p.
A-35 o f the Oct. 1972 B ulletin .

A 28

IN TER ES T RATES □ MAY 1975
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds

Corporate bonds

State and local
United
States
(long­
term)

Period

A aa utility

Stocks

By selected
rating

By
group

Dividend/
price ratio

Earnings/
price ratio

Total i
Total 1

Aaa

Baa

New
issue

Re­
cently
offered

Aaa

Baa

Indus­
trial

Rail­
road

Public
utility

Pre­
ferred

Com­
mon

Com­
mon

Seasoned issues
1970.....................
1971.....................
1972.....................
1973 ....................
1974....................

6.59
5.74
5.63
6.30
6.99

6.42
5.62
5.30
5.22
6.19

6.12
5.22
5.04
4.99
5.89

6.75
5.89
5.60
5.49
6.53

8.68
7.62
7.31
7.74
9.33

8.71
7.66
7.34
7.75
9.34

8.51
7.94
7.63
7.80
8.98

8.04
7.39
7.21
7.44
8.57

9.11
8.56
8.16
8.24
9.50

8.26
7.57
7.35
7.60
8.78

8.77
8.38
7.99
8.12
8.98

8.68
8.13
7.74
7.83
9.27

7.22
6.75
7.27
7.23
8.23

3.83
3.14
2.84
3.06
4.47

1974— A pr.........
M ay . . . .
June. . . .
Ju ly .........
Aug.........
Sept.........
Oct..........
N ov.........
D ec..........

7.04
7.07
7.03
7.18
7.33
7.30
7.22
6.93
6.78

5.76
6.06
6.17
6.70
6.70
6.77
6.56
6.54
7.04

5.45
5.89
5.95
6.34
6.38
6.49
6.21
6.06
6.65

6.06
6.30
6.41
7.10
7.10
7.18
6.99
7.01
7.50

8.99
9.24
9.38
10.20
10.07
10.38
10.16
9.21
9.53

8 95
9.13
9 .40
10.04
10.19
10.30
10.23
9.34
9.56

8.50
8.68
8.85
9.10
9.36
9.67
9.80
9.60
9.56

8.25
8.37
8.47
8.72
9.00
9.24
9.27
8.89
8.89

8.88
9.10
9.34
9.55
9.77
10.12
10.41
10.50
10.55

8.39
8.55
8.69
8.95
9.16
9.44
9.53
9.30
9.23

8.51
8.73
8.89
9.08
9.30
9.46
9.64
9.59
9.59

8.68
8.86
9.08
9.35
9.70
10.11
10.31
10.14
10.02

7.83
8.11
8.25
8.40
8.61
8.93
8.78
8.60
8.78

3.86
4.00
4.02
4.42
4.90
5.45
5.38
5.13
5.43

1975—Jan...........
Feb...........
M ar..........
A pr..........

6.68
6.61
6.73
7.03

6.89
6.40
6.70
6.95

6.39
5.96
6.28
6.46

7.45
7.03
7.25
7.43

9.36
8.97
9.35
9.67

9.45
9.09
9.38
9.65

9.55
9.33
9.28
9.49

8.83
8.62
8.67
8.95

10.62
10.43
10.29
10.34

9.19
9.01
9.05
9.30

9.52
9.32
9.25
9.39

10.10
9.83
9.67
9.88

8.41
8.07
8.04
8.27

5.07
4.61
4.42
4.34

6.46
5.41
5.50
7.12
11.76

10.30
14.62
13.14

Week ending—
1975—M ar.

1.
8.
15.
22.
29.

6.64
6.67
6.67
6.75
6.83

6.51
6.51
6.64
6.76
6.89

6.10
6.10
6.20
6.35
6.45

7.10
7.10
7.20
7.30
7.40

8.94
8.91
9.27
9.60
9.60

9.06
9.17
9.31
9.41
9.62

9.26
9.25
9.24
9.28
9.34

8.57
8.59
8.61
8.69
8.78

10.32
10.31
10.28
10.28
10.29

8.95
8.98
9.01
9.07
9.15

9.26
9.24
9.22
9.29
9.29

9.73
9.67
9.63
9.66
9.70

8.02
7.92
8.06
8.02
8.17

4.58
4.45
4.42
4.39
4.42

Apr.

5.
12.
19.
26.

6.88
7.05
7.03
7.08

6.89
6.99
6.92
6.99

6.45
6.55
6.40
6.45

7.40
7.40
7.40
7.50

9.80
9.65
9.51
9.66

9.70
9.60
9.55
9.71

9.38
9.46
9.50
9.53

8.87
8.94
8.95
8.97

10.28
10.32
10.34
10.37

9.19
9.26
9.32
9.36

9.35
9.38
9.38
9.41

9.75
9.83
9.90
9.94

8.08
8.20
8.35
8.29

4.49
4.47
4.26
4.28

May

3.

7.09

6.94

6.40

7.45

9.80

9.69

9.57

9.01

10.43

9.38

9.45

10.00

8.42

4.22

Number o f
issues2.............

14

20

5

5

121

20

30

41

30

40

14

500

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 number
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 ote .—Annual yields are averages o f weekly, monthly, or quarterly
data.
Bonds: M onthly and weekly yields are computed as follows: (1) U.S.
G ovt., averages o f daily figures for bonds maturing or callable in 10 years
or m ore; from Federal Reserve Bank o f New York. (2) S tate and local

500

govt., general obligations only, based on Thurs. figures, from M oody’s
Investors Service. (3) C orporate, rates for “ New issue” and “ Recently

offered” Aaa utility bonds, weekly averages compiled by the Board of
Governors of the Federal Reserve System; and rates for seasoned issues,
averages of daily figures from M oody’s Investors Service.
Stocks: Standard and Poor’s corporate series. D ividend/price ratios
are based on Wed. figures. Earnings/price ratios as o f end o f period.
Preferred stock ratio based on 8 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.

NOTES TO TABLES ON OPPOSITE PA G E:
Security Prices:

Stock M arket Customer Financing:

N o te .—Annual data are averages o f weekly or monthly figures. Monthly
and weekly data are averages o f daily figures unless otherwise noted and are
computed as follows: U .S. Govt, bonds , derived from average market
yields in table on p. A-28 on basis o f an assumed 3 per cent, 20-year
bond. M unicipal and corporate bonds, derived from average yields as
computed by Standard and Poor’s Corp., on basis o f a 4 per cent, 20year bond; Wed. closing prices. Common stocks , derived from com­
ponent common stock prices. Average daily volume o f trading, presently
conducted 5 days per week for 6 hours per day.

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 (Dec.
1970 Bulletin , p. 920). Credit extended by brokers is end-of-month data
for member firms of the New Y ork Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which ac­
counted for 60 per cent o f security credit outstanding at banks on June 30,
1971.
2 In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise o f subscription rights.
3 Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System’s list o f over the counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated; at brokers, such stocks have no loan value.
4 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.




MAY 1975 □ SECURITY MARKETS

A 29

SECURITY PRICES
C om m on stock prices
New York Stock Exchange

Bond prices
(per cent o f par)

Standard and Poor’s index
(1941-43=10)

Period

U.S.
Govt.
(long­
term)

State
and
local

C or­
porate
AAA

60.52
67.73
68.71
62.80
57.45

72.3
80.0
84.4
85.4
76.3

1974— Ap r
M a y .. . .
June
July........
Aug........
S e p t... . ,
O ct.........
N o v ... . .
Dec........

57.01
56.81
57.11
55.97
54.95
55.13
55.69
57.80
58.96

1975—Ja..........n
Feb____
M ar........
A pr........

197
197
197
197
197

0
1

2
3
4

.

New York Stock Exchange index
(Dec. 31, 1965 = 50)

Volume of
Amer­
trading in
ican
stocks
(thousands of
Stock
Ex­
shares)
change
total
index
(Aug.
31,
1973= NYSE A M EX
100)

Indus­
trial

Rail­
road

Public
utility

Total

Indus­
trial

Trans­
porta­
tion

Utility

Fi­
nance

61.6
65.0
65.9
63.7
58.8

83.22 91.29
98.29 108.35
109.20 121.79
107.43 120.44
82.85
92.91

32.13
41.94
44.11
38.05
37.53

54.48
59.33
56.90
53.47
38.91

45.72
54.22
60.29
57.42
43.84

48.03
57.92
65.73
63.08
48.08

32.14
44.35
50.17
37.74
31.89

37.24
39.53
38.48
37.69
29.82

54.64
70.38
78.35
70.12
49.67

113.40
129.10
103.80

79.97

10,532
15,381
16,487
16,374
13,883

80.2
77.3
76.2
71.9
71.6
71.0
72.7
72.6
68.6

60.3
59.7
59.5
58.5
57.6
56.2
55.9
56.3
56.1

92.46 103.66
89.67 101.17
89.79 101.62
82.82 93.54
76.03 85.51
68.12 76.54
69.44 77.57
71.74 80.17
67.07 74.80

40.26
37.04
37.31
35.63
35.06
31.55
33.70
35.95
34.81

44.03
39.35
37.46
35.37
34.00
30.93
33.80
34.45
32.85

49.21
47.35
47.14
43.27
39.86
35.69
36.62
37.98
35.41

53.95
52.53
52.63
48.35
44.19
39.29
39.81
41.24
38.32

35.87
33.62
33.76
31.01
29.41
25.86
27.26
28.40
26.02

32.59
30.25
29.20
27.50
26.72
24.94
26.76
27.60
26.18

58.72
52.85
51.20
44.23
40.11
36.42
39.28
41.89
39.27

93.57
84.71
82.88
77.92
74.97
65.70
66.78
63.72
59.88

12,109 1,752
12,512 1,725
12,268 1,561
12,459 1,610
12,732 1,416
13,998 1,808
16,396 1,880
14,341 1,823
15,007 2,359

......................
59.70
70.9
60.27
74.1
59.33
70.9
57.05
69.5

56.4
56.6
56.2
55.8

72.56
80.10
83.78
84.72

80.50
89.29
93.90
95.27

37.31
37.80
38.35
38.55

38.19
40.37
39.55
38.19

38.56
42.48
44.35
44.91

41.29
46.00
48.63
49.74

28.12
30.21
31.62
31.70

29.55
31.31
31.04
30.01

44.85
47.59
47.83
47.35

68.31
76.08
79.15
82.03

19,661
22,311
22,680
20,334

Total

96.63

3,376
4,234
4,447
3,004
1,908

2,117
2,545
2,665
2,302

Week ending—
1975—Apr.

5,
12.
19.
26.

58.15
56.90
57.05
56.72

69.0
68.7
70.8
69.4

55.9
55.6
56.0
55.9

82.16
82.43
86.41
86.62

92.15
92.54
97.26
97.55

37.63
37.54
39.08
39.30

38.39
37.98
38.46
38.22

43.60
43.70
45.76
45.92

47.95
48.18
50.81
51.05

31.08
31.02
31.94
32.33

30.19
29.93
30.12
30.00

46.42
46.20
48.32
48.32

79.45
80.01
83.07
83.98

14,888 1,760
18,290 2,006
26,930 3,006
21,886 2,520

M ar.

3.

56.63

69.3

55.8

87.30

98.39

39.64

38.05

46.23

51.51

32.45

30.00

47.84

84.23

19,904 2,276

F or notes see opposite page.

STOCK MARKET CUSTOMER FINANCING
(In millions o f dollars)
M argin credit at brokers and banks 1
Regulated 2
End o f period

By type

By source
M argin stock
Total

U nregu­
lated 3

Brokers Banks

Convertible
bonds

Subscription
issues

Brokers Banks Brokers Banks Brokers Banks

N onmargin
stock
credit at
banks

Free credit balances
at brokers 4

M argin
accts.

Cash
accts.

1974—Feb........................................ 6,462
M a r ..................................... 6,527
A pr........................................ 6,567
M ay ...................................... 6,381
Ju n e ...................................... 6,297
July........................................ 5,948
Aug........................................ 5,625
Sept....................................... 5,097
4,996
Nov....................................... 4,994
D ec........................................ 4,836

5,423
5,519
5,558
5,361
5,260
4,925
4,672
4,173
4,080
4,103
3,980

1,039
1,008
1,009
1,020
1,037
1,023
953
924
916
891
856

5,230
5,330
5,370
5,180
5,080
4,760
4,510
4,020
3,930
3,960
3,840

977
944
952
963
991
978
912
881
872
851
815

183
180
179
172
172
158
156
148
145
139
137

46
48
44
44
34
33
29
31
32
29
30

10
9
9
9
8
7
6
5
5
4
3

16
16
13
13
12
12
12
12
12
11
11

1,843
1,869
1,868
1,858
2,072
2,091
2,119
2,060
2,024
2,054
2,064

420
425
415
395
395
402
429
437
431
410
411

1,604
1,583
1,440
1,420
1,360
1,391
1,382
1,354
1,419
1,447
1,424

1975—Jan .........................................
Feb........................................
M ar.......................................

4,086
4,269
4,320

848
830

3,950
4,130
4,180

806
783

134
136
134

29
34

2
3
6

13
13

1,919
1,897

410
478
514

1,446
1,604
1,764

For notes see opposite page.




4,934
5,099

A 30

S TO CK M AR KET C R ED IT: SAVINGS IN S T IT U T IO N S □ MAY 1975

EQUITY STATUS OF MARGIN ACCOUNT DEBT
A T BROKERS

SPECIAL MISCELLANEOUS ACCOUNT BALANCES
A T BROKERS, BY EQUITY STATUS OF ACCOUNTS

(Per cent of total debt, except as noted)

(Per cent of total, except as noted)

End of
period

Total
debt
(mil­
lions
of
dol­
lars)!

1974—Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
D ec..

Equity class (per cent)
Net
credit
status

End of period
80 or
more

70-79

60-69

50-59

40-49

Under
40

5,330
5,370
5,180
5,080
4,760
4,510
4,020
3,930
3,960
3,840

5.0
4.4
4.2
4.0
4.0
3.5
3.5
4.6
4.2
4.3

7.0
6.0
5.1
5.0
4.8
4.0
3.9
5.5
5.1
4.6

11.4
9.9
8.5
7.7
7.9
6.6
6.1
9.4
8.5
8.8

19.4
16.5
13.7
12.6
13.3
11.2
10.2
16.8
14.8
13.9

30.2
26.5
23.3
21.8
22.2
18.4
18.0
27.3
24.4
23.0

27.1
37.0
45.3
49.1
47.9
56.3
58.3
36.4
42.8
45.4

1975—Jan.. 3,950
Feb.. 4,130
Mar.. 4,180

5.6
5.9
6.5

7.3
7.2
8.0

13.5
14.6
15.3

24.6
25.4
27.6

28.1
28.5
25.8

21.2
18.4
16.9

i Note 1 appears at the bottom of p. A-28.
N o te . —Each customer’s equity in his collateral (market value of col­
lateral less net debit balance) is expressed as a percentage of current col­
lateral values.

Equity class of accounts
in debit status

Total
balance
(millions
60 per cent Less than of dollars)
or more 60 per cent

1974—Mar......................

40.0
39.6
37.8
40.3
40.2
39.9
40.7
40.9
40.0
41.1

41.2
42.3
40.0
37.4
36.5
34.0
31.2
35.1
34.6
32.4

18.9
19.4
22.2
22.4
23.2
26.0
27.0
24.0
25.3
26.5

6,784
6,526
6,544
6,538
6,695
6,783
7,005
7,248
6,926
7,013

1975—Jan.......................
Feb.......................

41.1
42.2
44.4

39.3
40.1
40.1

19.8
17.8
15.5

7,185
7,303
7,277

N o te . —Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer’s margin account or deposits of cash (usually
sales proceeds) occur.

M UTUAL SAVINGS BANKS
(In millions of dollars)
Loans

End of period Mort­
gage

Other

Securities

U.S.
Govt.

State
and
local
govt.

Corpo­ Cash
rate
and
other1

Total
assets—
Total
Other liabili­
ties
assets
and
general
reserve
accts.

Depos­
its

Mortgage loan
commitments 2
classified by maturity
(in months)

Other General
liabili­ reserve
ac­
ties
counts
3 or
less

3-6

6-9

Over
9

Total

1971............... 62,069
19723............. 67,563
1973............... 73,231
1974............... 74,891

2,808
2,979
3,871
3,812

3,334
3,510
2,957
2,555

385
873
926
930

17,674
21,906
21,383
22,550

1,389
1,644
1,968
2,167

1,711 89,369
2,117 100,593
2,314 106,651
2,645 109,550

81,440
91,613
96,496
98,701

1,810
2,024
2,566
2,888

6,118
6,956
7,589
7,961

1,047
1,593
1,250
664

627
713
598
418

463 1,310 3,447
609 1,624 4,539
405 1,008 3,261
232
726 2,040

1974—F eb....
Mar...
A pr....
May...
June...
Ju ly...
Aug....
Sept.. .
Oct.. . .
N ov....
D ec....

73,647
73,957
74,181
74,011
74,281
74,541
74,724
74,790
74,835
74,913
74,891

4,584
4,825
4,425
4,388
4,274
4,311
4,031
4,087
3,981
4,226
3,812

2,846
2,851
2,852
2,750
2,758
2,650
2,604
2,574
2,525
2,553
2,555

942
934
951
893
880
884
879
876
870
877
930

21,923
22,302
22,366
22,241
22,324
22,383
22,292
22,218
22,190
22,201
22,550

1,618
1,634
1,601
1,656
1,651
1,402
1,334
1,303
1,303
1,406
2,167

2,316
2,373
2,347
2,355
2,488
2,487
2,519
2,573
2,608
2,633
2,645

107,877
108,876
108,722
108,295
108,654
108,660
108,383
108,420
108,313
108,809
109,550

97,276
98,557
98,035
97,391
98,190
97,713
97,067
97,425
97,252
97,582
98,701

2,919
2,595
2,943
3,173
2,688
3,144
3,475
3,089
3,158
3,291
2,888

7,681
7,724
7,744
7,731
7,776
7,803
7,841
7,906
7,904
7,936
7,961

1,232
1,302
1,214
1,129
1,099
990
949
932
775
724
664

562
525
584
608
602
586
496
382
374
398
418

952 3,153
407
413
929 3,168
994 3,193
401
400 1,014 3,151
328 1,001 3,031
316 1,076 2,968
417
977 2,839
450
904 2,668
792 2,301
360
743 2,182
317
232
726 2,040

1975—Jan.. . .
Feb. . .

74,957
75,057

4,287
4,658

2,571
2,677

967 22,979
1,017 23,402

1,706
1,856

2,663 110,130 99,211
2,709 111,376 100,149

2,948
3,211

7,971
8,016

726
654

400
360

225
217

1 Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2 Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans.
3 Balance sheet data beginning 1972 are reported on a gross-of-valuation-reserves basis. The data differ somewhat from balance sheet data
previously reported by National Assn. of Mutual Savings Bank, which




620 1,971
579 1,810

were net of valuation reserves. For most items, however, the differences
are relatively small.
N o te . —NAMSB data; figures are estimates for all savings banks in
the United States and differ somewhat from those shown elsewhere in
the B u lle tin ; the latter are for call dates and are based on reports filed
with U.S. Govt, and State bank supervisory agencies.

MAY 1975 □ SAVINGS INSTITUTIONS

A 31

LIFE INSURANCE COMPANIES
(In millions of dollars)
G overnment securities

Total
assets

End o f period

Total

Business securities

U nited State and Foreign1
States
local

Total

Bonds

Stocks

M ort­
gages

Real
estate

Policy
loans

Other
assets

1971.............................................
1972............................................
1973............................................
1974............................................

222,102
239,730
252,436
263,817

11,000
11,372
11,403
11,890

4,455
4,562
4,328
4,396

3,363
3,367
3,412
3,653

3,182 99,805
3,443 112,985
3,663 117,715
3,841 119,580

79,198
86,140
91,796
97,430

20,607
26,845
25,919
22,150

75,496
76,948
81,369
86,258

6,904
7,295
7,693
8,249

17,065
18,003
20,199
22,899

11,832
13,127
14,057
14,941

1974—Jan...................................
Feb..................................
M ar.................................
A pr..................................
M ay ................................
J u n e ................................
July.................................
Aug.................................
Sept.................................
O ct..................................
N ov.................................
D ec.................................

253,531
254,739
255,847
256,583
257,518
258,398
259,187
258,951
258,668
261,778
262,738
263,817

11,465
11,535
11,766
11,594
11,606
11,617
11,675
11,725
11,718
11,748
11,820
11,890

4,410
4,429
4,595
4,317
4,318
4,290
4,301
4,338
4,306
4,319
4,363
4,396

3,463
3,518
3,511
3,526
3,538
3,562
3,572
3,577
3,596
3,603
3,618
3,653

3,592
3,588
3,660
3,751
3,750
3,765
3,802
3,810
3,816
3,826
3,839
3,841

119,079
119,715
119,936
120,466
120,642
120,526
120,404
119,139
117,740
120,198
120,176
119,580

93,082
93,672
94,037
95,010
95,721
95,934
96,507
96,723
96,861
97,515
92,892
97,430

25,997
26,043
25,899
25,456
24,921
24,592
23,897
22,416
20,879
22,683
22,284
22,150

81,490
81,745
81,971
82,469
82,750
83,228
83,697
84,119
84,509
85,054
85,529
86,258

7,816
7,825
7,831
7,795
7,840
7,878
7,924
7,998
8,055
8,087
8,143
8,249

20,242
20,382
20,538
20,830
21,067
21,321
21,581
21,888
22,202
22,503
22,710
22,899

13,439
13,537
13,805
13,429
13,613
13,828
13,906
14,088
14,444
14,188
14,360
14,941

1975—Jan..................................

266,823

12,065

4,461

3,669

3,935

121,986

93,690

23,110

86,526

8,313

23,058

14,875

l
Issues o f foreign governments and their subdivisions and bonds of
Figures are annual statem ent asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
the International Bank for Reconstruction and Development.
interest due and accrued and for differences between m arket and book
N ote.—Institute o f 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.”

SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)
Assets
End o f period
M ort­
gages

Invest­
ment
secur­
ities i

Cash

Other

Total
assets—
Total
liabilities

10,731
12,590
19,117
23,075

Liabilities

M ortgage
loan com­
mitments
outstanding
at end of
period 4

Savings
capital

N et
w orth2

Bor­
rowed
money 3

Loans
in
process

206,023
243,127
271,905
295,616

174,197
206,764
226,968
242,914

13,592
15,240
17,056
18,435

8,992
9,782
17,172
24,824

5,029
6,209
4,667
3,205

4,213
5,132
6,042
6,238

7,328
11,515
9,526
7,454

O ther

1971.....................................
1972.....................................
19735...................................
1974.....................................

174,250
206,182
231,733
249,306

1974—M ar.........................
A pr..........................
M ay .........................
Jun e.........................
July ..........................
Aug..........................
Sept.........................
O ct...........................
N ov.........................
D ec..........................

236,136
238,645
241,263
243,400
245,135
246,713
247,624
248,189
248,711
249,306

23,993
23,544
23,705
23,003
23,052
22,081
21,166
22,126
23,249
23,235

20,316
20,787
21,421
21,614
21,926
22,361
22,758
23,016
23,306
23,075

280,445
282,976
286,389
288,017
290,113
291,155
291,548
293,331
295,266
295,616

235,136
234,918
235,429
238,114
237,631
236,472
237,877
238,304
239,530
242,914

17,435
17,709
18,019
17,838
18,101
18,377
18,201
18,444
18,674
18,435

16,725
18,159
19,355
20,347
21,708
22,891
24,136
24,544
24,550
24,824

4,481
4,796
5,038
5,033
4,867
4,584
4,226
3,809
3,444
3,205

6,668
7,394
8,548
6,685
7,806
8,831
7,108
8,230
9,068
6,238

12,006
12,918
12,480
11,732
10,844
9,851
9,126
8,127
7,723
7,454

1975—Jan...........................
Feb..........................
M ar.*......................

249,734
250,845
252,461

25,382
26,995
28,285

23,338
23,754
24,288

298,454
301,594
305,034

246,182
249,480
255,964

18,585
18,815
18,648

23,398
21,938
20,411

3,022
3,015
3,237

7,267
8,346
6,774

7,887
8,787
10,063

2,857
18,185
21,574
2,781
21,055
23,235

1 Excludes stock o f the Federal Home Loan Bank Board. Compensating
changes have been made in “ Other assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Advances from FHLBB and other borrowing.
4 D ata comparable with those shown for m utual savings banks (on
opposite page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
H om e Loan M ortgage C orporation, loans and notes insured by the
Farm ers Home Administration, and certain other Govt.-insured mortgagetype investments, previously included in mortgage loans, are included




in other assets. The effect o f this change was to reduce the mortgage
total by about $0.6 billion.
Also, G NM A-guaranteed, mortgage-backed securities o f the pass­
through type, previously included in “ C ash” and “ Investment securities”
are included in “ Other assets.” These am ounted to about $2.4 billion at
the end of 1972.
N ote.—FHLBB data; figures are estimates for all savings and loan
assns. in the United States. D ata are based on monthly reports o f insured
assns. and annual reports o f noninsured assns. D ata for current and
preceding year are preliminary even when revised.

A 32

FEDERAL FINANCE a MAY 1975
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions o f dollars)
U.S. budget

Means o f financing
Borrowings from the public

Period

Receipts Outlays

Surplus
or
deficit
(-)

Less: Cash and
monetary assets

Less: Invest­
Public
ments by Govt.
debt Agency
accounts 1
Less: Equals:
securi­ securi­
Special Total
notes 2
ties
ties
Special Other
issues

Fiscal year:
197 1
197 2
197 3
197 4

188,392
208,649
232,225
264,932

211,425 -2 3 ,0 3 3 27,211
-3 4 7
6,616
231,876 -2 3 ,2 2 7 29,131 -1 ,2 6 9
6,796
246,526 -14,301 30,881
216 11,712
268,392 - 3 ,4 6 0 16,918
903 13,673

H alf year:
1973—Jan.-June
July-D ee.
1974—Jan.-June
July-D ee.

126,164
124,256
140,679
139,870

127,947 -1 ,7 8 4
130,362 - 6 ,1 0 6
138,032
2,647
153,399 -13,591

M onth:
1974— M a r
A pr..........
M ay .........
Ju n e.........
July..........
A u g.........
Sept..........
Oct...........
N o v .» .. . .
D ec..........

16,819
29,657
19,243
31,259
20,939
23,620
28,377
19,633
22,292
24,946

22,903
22,273
23,981
24,172
24,411
25,408
24,712
26,460
24,965
27,442

1975—Ja..............n
Feb...........
M ar..........

25,020
19,975
20,134

28,934
26,200
27,986

Trea­
sury
operat­
ing
balance

Other

O ther
means
of
financ­
ing,
n e t3

801
1,623
109
1,140

19,448
19,442
19,275
3,009

710
1,362
2,459
-3 ,4 1 7

-7 1 0
3,587
1,108 6,003
- 1 ,6 1 3 -4,129
898 -2 ,0 6 3

5,716
5,376
8,297
2,840

577
845
295
150

1,889
6,014
-3 ,0 0 4
14,794

1,503
- 2 ,2 0 2
- 1 ,2 1 5
-3 ,2 2 8

-9 3
1,305
- 3 1 9 - 2 ,4 2 9
1,089
231
248 -4 ,1 8 3

3,813
-6 ,0 8 3
7,384 -2 ,5 9 7
-4 ,7 3 9 2,773
385
7,087
1,109
-3 ,4 7 2
-1 ,7 8 7 6,447
-3 2 6
3,666
-6 ,8 2 7 -1 ,2 4 2
-2 ,6 7 3
5,139
7,300
-2 ,4 9 6

392
-1 5 5
37
-9 3
-2 8
2,947
29 4,178
-1 2 6
-8 5 8
-5 6
4,133
- 1 6 7 -1 ,3 1 1
- 2 4 2 -2 ,0 5 3
-1 7
653
-3 8
2,276

52
35
-2 1 1
121
198
-2 5
250
-1 5 2
-3 1
-9 0

4,307
- 2 ,5 0 2
8
-3 ,8 8 6
1,644
2,283
569
721
4,500
5,077

690
r200 *•2,666
3,125
1,319
-4 3 8
- 5 ,0 3 2 - 1 ,1 2 0 - 1 ,4 2 3
2,711
-2 5 2
239
- 2 ,7 0 5
-6 5 8 - 1 ,5 3 4
- 1 ,0 1 2
83 - 1 ,4 2 5
3,244
797
-1 9 4
- 6 ,4 4 5
-3 3 8
-6 7 7
816
96
-9 1 5
2,874
268
561

-3 ,9 1 4
-6 ,2 2 5
-7 ,8 5 2

- 2 3 -2 ,1 7 3
-3 0 6
1,224
5 -1 ,2 1 6

-4 2
-4 9 5
-7 9

3,667
4,535
11,249

8,843
11,756
5,162
18,429

1,475
5,571
9,949

-6 6 1
478
426
-6 4 6

-5 8
- 2 ,3 5 9
3,115

319
-1 3 2
285

508
801
3

Selected balances
Treasury operating balance
End
of
period
F.R .
Banks

Tax
and
loan
accounts

Other
deposi­
taries4

Borrowing from the public.

Total

Public
debt
securities

Agency
securities

Less:
Investments of
G ovt, accounts 1
Special
issues

Other

Less:
Special
notes 2

E quals:
Total

M em o:
D ebt of
Govt.sponsored
corps.—
N ow
p riv ate5

Fiscal year:
197 1
197 2
197 3
197 4

1,274
2,344
4,038
2,919

7,372
7,934
8,433
6,152

109
139
106

8,755
10,117
12,576
9,159

398,130
427,260
458,142
475,060

12,163
10,894
11,109
12,012

82,740
89,536
101,248
114,921

22,400
24,023
24,133
25,273

825
825
825
825

304,328
323,770
343,045
346,053

37,086
41,814
51,325
65,411

Calendar year:
197 3
197 4

2,543
3.113

7,760
2,749

70
70

10,374
5,932

469,898
492,664

11,586
11,367

106,624
117,761

24,978
25,423

825
( 6)

349,058
360,847

59,857

M onth:
1974— M a r.. . .
A pr.......
M a y .. . .
J u n e .. .,
J u ly .. . .
A ug----Sept___
O ct........
N o v .. .,
D e c ....,

1,372
2,814
3,134
2,919
3,822
3,304
3,211
789
1,494
3.113

6,915
8,576
3,226
6,152
2,544
2,049
5,384
1,381
1,571
2,745

69
89

474,500
471,903
474,675
475,060
6475,344
481,792
481,466
480,224
485,364
492,664

11,975
12,012
11,984
12,012
11,895
11,831
11,664
11,422
11,404
11,367

107,889
107,796
110,743
114,921
114,063
118,196
116,885
114,832
115,485
117,761

25,328
25,363
25,152
25,273
25,471
25,446
25,696
25,544
25,513
25,423

825
825
825
825
( 6)

70

8,356
11,480
6,448
9,159
6,454
5,443
8,687
2,241
3,066
5,928

352,433
349,931
349,939
346,053
347,706
349,980
350,549
351,270
355,770
360,847

59,897
61,151
62,650
65,411
68,243
69,951
73,068
75,343
75,706
76,459

1975—Ja
n
Feb___
M a r.. .

3,541
2,884
4,269

2,115
410
2,140

220
220
220

5,876
3,514
6,629

494,139
499,710
509,659

11,343
11,037
11,042

115,588
116,812
115,596

25,380
24,886
24,807

364,514
369,049
380,298

76,921
75,964

91
92
71

1 W ith the publication o f the Oct. 1974, Federal Reserve B ulletin ,
these series have been corrected (beginning in fiscal year 1971) to exclude
special issues held by the Federal home loan banks and the General
Services Adm. Participation Certificate Trust, which are not Govt, ac­
counts.
2 Represents non-interest-bearing public debt securities issued to the
International M onetary Fund and international lending organizations.
New obligations to these agencies are handled by letters o f credit.
3 Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
4 As o f 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).
5 Includes debt o f Federal home loan banks, Federal land banks, R .F .K .
Stadium Fund, FN M A (beginning Sept. 1968), and Federal intermediate
credit banks and banks for cooperatives (both beginning Dec. 1968).
6 Beginning July 1974, public debt securities excludes $825 million o f
notes issued to International M onetary Fund to conform with Office o f
Management and Budget’s presentation o f the budget.
N ote.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

MAY 1975 □ FEDERAL FINANCE

A 33

FEDERAL FISCAL OPERATIONS: DETAIL
(In millions of dollars)
Budget receipts
Individual income taxes

Corporation
income taxes

Social insurance taxes
and contributions

Period
Total

Pres.
Elec­ N on­
W ith­ tion with­ Re­
held C am ­ held funds
paign
Fund1

Employment
taxes and
Excise
contribution2 Un- Other
taxes
Gross
re­
empl. net
Re­
Net
re­
total
ceipts funds
insur.
Pay­ Selfceipts 3
roll empl.
taxes

Net
total

Fiscal year:
1971...........................
1972...........................
1973...........................
...........................

188,392
208,649
232,225
264,932

76,490
83.200
98,093
112,064

24,262
25.679
27,017
28 30,812

H alf year:
1973—Ja n .-Ju n e . . .
July-D ee.. ..
1974—J a n .-J u n e ...
July-D ee___

126,164
124,256
140,679
139,807

52,037
52,964
59,103
61,377

2 21,233 21,179 52,094 23,730 1,434
999 58,172 16,589 1,494
6,207
28 24,605 22,953 60,782 25,156 1,631
7,099 1,016 67,460 18,247 2,016

M onth:
1974—M a r.r ........... 16,819 9,664
A pr................ 29,657 9,946
M ay............... 19,243 10,083
June............... 31,259 10,611
Ju ly ............... 20,939 10,227
A u g ............... 23,620 10,223
Sept............... 28,377 9,754
O ct................. 19,633 10,106
N ov............... 22,292 10,638
D ec................ 24,946 10,428
1975—J an .................
Feb................
M ar...............

14,522
14,143
21,866
23,952

86,230
94,737
103,246
118,952

30,320
34,926
39,045
41,744
1974

2 2,186 8,631 3,221 5,887
13 11,118 6,313 14,764 5,893
5 1,204 5,651 5,641 1,318
462 14,231 9,269
4 4,077
378 10,806 1,796
957
229 10,485 1,084
491
130 13,947 6,082
4,323
78 10,590 1,717
561
111 10,832 1,111
305
90 10,799 6,458
461
132 15,487 1,745
1 5,366
7 1,046 4,264 7,747 1,275
8 2,661 8,152 4,134 7,228

25,020 10,252
19,975 10,957
20,134 9,617

3,535
2,760
2,893
3,125

338
430
218
237
310
256
435
511
314
190

39,751 1,948 3,673 3,206
44,088 2,032 4,357 3,437
52,505 2,371 6,051 3,614
62,886 3,008 6,837 4,051

48,578
53,914
64,542
76,780

16,614
15,477
16,260
16,844

30,013 2,206 3,616 1,841 37,657
201 2,974 1,967 35,109
29,965
32,919 2,808 3,862 2,082 41,672
34,418
254 2,914 2,187 39,774
5,059
228
96
552
4,390 1,603
311 2,190
7,196
4,757
18
281
418
5,005
1,363
7,813
240
62
5,428
4,558
221
762
6,633
4,982
14
89

557 4,802
496 7,670
649 6,268

223
225
208

245
732
21

Cus­ Estate Misc.
toms and
re­
gift ceipts4

2,591
3,287
3,188
3,334

3,735
5,436
4,917
5,035

3,858
3,633
3,921
5,368

8,016 1,637 2,584 1,861
8,966 1,633 2,514 2,768
7,878 1,701 2,521 2,601
8,761 1,958 2,284 3,341

5,721
6,896
10,036
5,386
5,781
9,544
6,119
5,142
7,748
5,441

1 ,211
1,275
1,391
1,423
1,517
1,415
1,465
1,401
1,474
1,489

277
286
295
301
325
355
305
347
319
307

465
371
437
370
418
453
352
370
350
341

376
602
343
517
607
540
543
578
773
301

402 5,673
352 8,979
373 6,870

1,351
1,277
1 ,160

307
260
295

385
399
356

629
535
741

338
351
339
329
358
368
389
363
353
356

Budget outlays5
G en­
eral
sci­
ence,
space,
and
tech.

Period

Total

N a­
tional
de­
fense

Fiscal year:
1 9 7 2 '...................
1973 r ...................
I974r ...................
1975 .................
19768 ...................

231,876
246,526
268,392
313,446
349,372

77,356
75,072
78,569
85,276
94,027

3,723
2,956
3,593
4,853
6,294

4,299
4,169
4,154
4,183
4,581

M onth:
1975—Feb...........
M ar..........

26,200
27,986

7,528
7,435

382
503

350
379

Intl.
affairs

N at­
Educa­
ural
Comtion,
Agri­
re­
Com ­
mun.
man­ Health
and
and
cul­ sources, merce
power,
envir.,
and
and
wel­
ture
region.
and
transp. devel­ social
fare
energy
opment serv.

5,279 5,019
4,855 5,461
2,230 6,390
1,773 9,412
1,816 10,028
156
347

468
723

1 Collections o f these receipts, totaling $2,427 million for fiscal year
1973, were included as part o f nonwithheld income taxes prior to Feb.
1974.
2 Old-age, disability, and hospital insurance, and Railroad Retirement
accounts.
3 Supplementary medical insurance premiums and Federal employee
retirement contributions.
4 D eposits o f earnings by F. R. Banks and other miscellaneous receipts.
5 Budget outlays have been revised to reflect the new functional classi­
fication o f outlays presented in the 1976 Budget. F o r a description of these
functions, see Budget o f the U.S. Government, Fiscal Year 1976, pp.
64-65.




10,601
9,938
13,100
11,796
13,723

4,699
5,869
4,910
4,887
5,920

666
1,415

119
19

Vet­
erans

Inter­
est

81,382
91,790
106,505
133,188
146,774

10,730
12,013
13,386
15,466
15,592

20,582
22,813
28,072
31,331
34,419

1,024 11,174
1,209 12,154

1,933
1,811

2,618
2,656

11,696
11,874
11,600
14,714
14,623

G en­
eral
Govt.,
law
en­
force.,
and
justice

Rev­
enue
shar.
and
fiscal
assist­
ance

Undistrib.
off­
setting
re­
ceipts6

4,116
531 - 8 ,1 3 7
4,813 7 7,222 -1 2 ,3 1 8
5,789 6,746 -1 6 ,6 5 1
5,672 7,033 -1 6 ,8 3 9
6,468 7,249 -2 0 ,1 9 3
467
568

-8 2 6
3 -1 ,2 3 6

6 Consists o f interest received by trust funds, rents and royalties on the
Outer Continental Shelf, and Govt, contributions for employee retirement.
7 Contains retroactive payments o f $2,617 million for fiscal 1972.
8 Estimates presented in Budget o f the U.S. Government, Fiscal Year
1976. Breakdowns do not add to totals because special allowances for
contingencies, civilian agency pay raises, and energy tax equalization pay­
ments totaling $700 million for fiscal 1975 and $8,050 million for fiscal
1976 are not included.
N ote.—H alf years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.

A 34

U.S. GOVERNMENT SECURITIES o MAY 1975
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions o f dollars)
Public issues (interest-bearing)

End o f period

Total
gross
public
debt i

M arketable
Total
Total

Certifi­
cates

Bills

Notes

Con­
vert­
ible
B onds 2 bonds

Nonm arketable

Special
issues 5

Foreign Savings
Total 3 issues 4 bonds
and
notes

1968—Dec.
1969— Dec.
1970—Dec.

358.0
368.2
389.2

296.0
295.2
309.1

236.8
235.9
247.7

75.0
80.6
87.9

76.5
85.4
101.2

85.3
69.9
58.6

2.5
2 .4
2 .4

56.7
56.9
59.1

4.3
3.8
5.7

52.3
52.2
52.5

59.1
71.0
78.1

1971—Dec..
1972—Dec.
1973—Dec.

424.1
449.3
469.9

336.7
351.4
360.7

262.0
269.5
270.2

97.5
103.9
107.8

114.0
121.5
124.6

50.6
44.1
37.8

2.3
2.3
2.3

72.3
79.5
88.2

16.8
20.6
26.0

54.9
58.1
60.8

85.7
95.9
107.1

1974—Apr.
M ay
June
July.
Aug.
Sept.
O c t.,
Nov.
Dec.

471.9
474.7
475.1
475.3
481.8
481.5
480.2
485.4
492.7

361.7
361.5
357.8
359.7
362.0
362.7
363.9
368.2
373.4

270.5
269.6
266.6
268.8
272.1
272.6
273.5
277.5
282.9

107.3
107.9
105.0
107.3
110.6
111.1
112.1
114.6
119.7

127.6
128.4
128.4
128.4
127.7
127.7
127.7
129.6
129.8

35.5
33.2
33.1
33.0
33.9
33.8
33.8
33.3
33.4

2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3

89.0
89.6
89.0
88.7
87.6
87.8
88.1
88.4
88.2

25.7
26.0
25.0
24.4
23.2
23.2
23.1
23.1
22.8

61.9
62.1
62.4
62.7
62.8
63.0
63.3
63.6
63.8

108.4
111.3
115.4
114.6
118.7
117.4
115.3
115.9
118.2

1975—Jan..
Feb.
M ar.
Apr.

494.1
499.7
509.7
516.7

377.1
381.5
392.6
399.8

286.1
289.8
300.0
307.2

120.0
123.0
124.0
127.0

131.8
132.7
141.9
145.0

33.3
34.1
34.1
35.3

2.3
2.3
2.3
2.3

89.4
90.4
90.3

23.0
23.3
24.0
23.6

64.2
64.5
64.8
65.2

116.0
117.2
116.0
116.0

1 Includes non-interest-bearing debt (of which $615 million on April 30,
1975, was not subject to statutory debt limitation).
2 Includes Treasury bonds and m inor amounts o f Panam a Canal and
postal savings bonds.
3 Includes (not shown separately): despositary bonds, retirement plan
bonds, R ural Electrification A dm inistration bonds, State and local govern­
m ent bonds, and Treasury deposit funds.

4 Nonm arketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency-series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
N o te .—Based on M onthly Statem ent o f the Public D ebt o f the U nited
S ta tes , published by U.S. Treasury. See also second paragraph in N o te to
table below.

OWNERSHIP OF PUBLIC DEBT
(Par value, in billions of dollars)
Held by private investors

Held b y Total
gross
public
debt

U.S.
Govt.
agencies
and
trust
funds

F.R.
Banks

1968—D ec.................
1969—D ec.................
1970—Dec..................

358.0
368.2
389.2

76.6
89.0
97.1

52.9
57.2
62.1

1971—D ec..................
1972—D ec.................
1973—D ec.................

424.1
449.3
469.9

106.0
116.9
129.6

1974— M ar.................
M ay ...............
Ju n e ...............
July.................
Aug.................
Sept.................
Oct..................
N ov.................
D ec.................

474.5
471.9
474.7
475.1
475.3
481.8
481.5
480.2
485.4
492.7

1975—Jan ..................
Feb.?..............

494.1
499.7

End of
period

M utual
savings
banks

Insur­
ance
com­
panies

Other
corpo­
rations

State
and
local
govts.

228.5
222.0
229.9

66.0
56.8
62.7

3.8
3.1
3.1

8.4
7.6
7.4

14.2
10.4
7.3

24.9
27.2
27.8

51.9
51.8
52.1

23.3
29.0
29.1

14.3
11.2
20.6

21.9
25.0
19.9

70.2
69.9
78.5

247.9
262.5
261.7

65.3
67.7
60.3

3.1
3.4
2.9

7.0
6.6
6.4

11.4
9.8
10.9

25.4
28.9
29.2

54.4
57.7
60.3

18.8
16.2
16.9

46.9
55.3
55.6

15.6
17.0
19.3

131.2
131.1
133.9
138.2
137.5
141.6
140.6
138.4
139.0
141.2

79.5
80.0
81.4
80.5
78.1
81.1
81.0
79.4
81.0
80.5

263.8
260.7
259.4
256.4
259.7
259.0
259.8
262.5
265.3
271.0

59.5
56.8
54.8
53.2
53.9
53.0
52.9
53.5
54.5
56.5

2 .8
2 .7
2.6
2.6
2 .6
2.6
2.5
2.5
2.5
2.5

6.1
5.9
5.8
5.9
5.7
5.7
5.7
5.9
5.9
6.1

11.7
10.5
11.2
10.8
11.3
11.0
10.5
11.2
11.0
11.0

30.4
30.1
29.2
28.3
28.8
29.2
29.3
28.8
28.7
29.2

61.1
61.4
61.7
61.9
62.2
62.3
62.5
62.8
63.2
63.4

17.3
17.8
18.3
18.8
19.4
20.3
20.8
21.0
21.1
21.5

54.9
55.9
57.3
57.7
56.9
56.0
56.0
56.6
58.3
58.4

20.0
19.7
18.5
17.3
18.8
19.0
19.5
20.3
20.1
22.4

139.0
139.8

81.3
81.1

273.8
278.9

54.5
56.9

2 .6
2.7

6 .2
6 .2

m .3

'3 0 .0
30.5

63.7
64.0

r21.6
21.3

61.5
64.6

r22.3
21.3

1 Consists o f investments o f foreign and international accounts in
the United States.
2 Consists o f savings and loan assns., nonprofit institutions, cor­
porate pensions trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
N ote.—R eported data for F.R . Banks and U.S. Govt, agencies and
tru st fu n d s; Treasury estimates for other groups.




Individuals

Com ­
mercial
banks

Total

11.4

Other
Savings
bonds securities

Foreign O ther
and
misc.
inter­
inves­
national 1 tors 2

The debt and ownership concepts were altered beginning with the
M ar. 1969 Bulletin . The new concepts (1) exclude guaranteed se­
curities and (2) remove from U.S. Govt, agencies and trust funds
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts. Beginning in July 1974, total gross public debt includes Federal
Financing Bank bills and excludes notes issued to the IM F ($825 million).

MAY 1975 □ U.S. GOVERNMENT SECURITIES

A 35

OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions o f dollars)
W ithin 1 year
Type o f holder and date

All holders:
1972—Dec.
1973—Dec.
1974— Dec.
1975—Feb.
M ar.

Total
Total

Bills

Other

1-5
years

5-10
years

10-20
years

Over
20 years

3 1 .............................................................
3 1 .............................................................
3 1 .............................................................
2 8 .............................................................
3 1 .............................................................

269,509
270,224
282,891
289,827
299,989

130,422
141,571
148,086
154,782
158,046

103,870
107,786
119,747
122,995
123,972

26,552
33,785
28,339
31,787
34,074

88,564
81,715
85,311
85,181
90,362

29,143
25,134
27,897
27,494
29,255

15,301
15,659
14,833
15,508
15,476

6,079
6,145
6,764
6,863
6,850

U.S. Govt, agencies and trust funds:
1972—Dec. 31.....................................................
1973—Dec. 3 1 ....................................................
1974— Dec. 3 1 .....................................................
1975—Feb. 2 8 .....................................................
Mar. 3 1 .....................................................

19,360
20,962
21,391
20,888
20,841

1,609
2,220
2,400
2,481
2,519

674
631
588
512
511

935
1,589
1,812
1,969
2,008

6,418
7,714
7,823
7,957
7,871

5,487
4,389
4,721
3,980
3,998

4,317
5,019
4,670
4,802
4,802

1,530
1,620
1,777
1,667
1,651

Federal Reserve Banks:
1972—Dec. 31.....................................................
1973—Dec. 31.....................................................
1974— Dec. 3 1 .....................................................
1975—Feb. 2 8 .....................................................
Mar. 3 1 .....................................................

69,906
78,516
80,501
81,086
81,418

37,750
46,189
45,388
46,956
47,019

29,745
36,928
36,990
35,909
36,087

8,005
9,261
8,399
11,047
10,932

24,497
23,062
23,282
21,377
21 ,288

6,109
7,504
9,664
10,326
10,485

1,414
1,577
1,453
1,476
1 ,507

136
184
713
950
1,119

Held by private investors:
1972—Dec. 31.....................................................
1973—Dec. 3 1 .....................................................
1974—Dec. 3 1 .....................................................
1975—Feb. 2 8 .....................................................
M ar. 3 1 .....................................................

180,243
170,746
180,999
187,853
197,730

91,063
93,162
100,298
105,345
108,508

73,451
70,227
82,168
86,574
87,374

17,612
22,935
18,130
18,771
21,134

57,649
50,939
54,206
55,847
61,203

17,547
13,241
13,512
13,188
14,772

9,570
9,063
8,710
9,230
9,167

4,413
4,341
4,274
4,246
4,080

Commercial banks:
1972—Dec. 31............................................
1973—Dec. 3 1 ............................................
1974— Dec. 3 1 ............................................
1975—Feb. 2 8 ............................................
M ar. 3 1 ............................................

52,440
45,737
42,755
43,756
48,840

18,077
17,499
14,873
14,487
16,217

10,289
7,901
6,952
5,978
6,976

7,788
9,598
7,921
8,509
9,241

27,765
22,878
22,717
23,735
26,503

5,654
4,022
4,151
4,502
5,126

864
1,065
733
736
722

80
272
280
296
272

M utual savings banks:
1972—Dec. 3 1............................................
1973—Dec. 3 1 ............................................
1974—Dec. 3 1 ............................................
1975—Feb. 2 8 ............................................
M ar. 3 1 ............................................

2,609
1,955
1,477
1,543
1,751

590
562
399
330
385

309
222
207
128
152

281
340
192
202
233

1,152
750
614
660
743

469
211
174
207
285

274
300
202
199
195

124
131
88
147
143

Insurance companies:
1972—Dec. 31 ............................................
1973—Dec. 3 1 ............................................
1974—Dec. 3 1 ............................................
1975—Feb. 2 8 ............................................
M ar. 3 1 ............................................

5,220
4,956
4,741
4,824
5,119

799
779
722
652
720

448
312
414
355
405

351
467
308
297
315

1,190
1,073
1,061
1,296
1,357

976
1,278
1,310
1,214
1,357

1,593
1,301
1,297
1,340
1,336

661
523
351
321
348

Nonfinancial corporations:
1972—Dec. 31............................................
1973—Dec 3 1 ............................................
1974—Dec. 3 1 ............................................
1975—Feb. 2 8 ............................................
Mar. 3 1 ............................................

4,948
4,905
4,246
4,407
4,911

3,604
3,295
2,623
2,649
2,777

1,198
1,695
1,859
1,812
2,011

2,406
1,600
764
837
766

1,198
1,281
1,423
1,519
1,805

121
260
115
169
264

25
54
26
25
23

1
15
59
44
41

Savings and loan
1972—Dec.
1973—Dec.
1974—Dec.
1975—Feb.
M ar.

associations:
3 1............................................
3 1 ............................................
3 1 ............................................
2 8 ............................................
3 1 ............................................

2,873
2,103
1,663
1,701
1,969

820
576
350
419
511

498
121
87
148
240

322
455
263
271
271

1,140
1,011
835
861
995

605
320
282
238
278

226
151
173
166
166

81
45
23
18
19

State and local governments:
1972—Dec. 31............................................
1973—Dec. 3 1 ............................................
1974—Dec. 3 1 .............................................
1975—Feb. 2 8 ............................................
M ar. 3 1 ............................................

10,904
9,829
7,864
9,015
8,189

6,159
5,845
4,121
5,417
4,793

5,203
4,483
3,319
4,747
4,078

956
1,362
802
670
715

2,033
1,870
1,796
1,756
1,590

816
778
815
609
545

1,298
1,003
800
917
918

598
332
332
316
343

101,249
101,261
118,253
122,605
126,952

61,014
64,606
77,210
81,390
83,105

55,506
55,493
69,330
73,405
73,512

5,508
9,113
7,880
7,985
9,593

23,171
22,076
25,760
26,018
28,210

8,906
6,372
6,664
6,249
6,918

5,290
5,189
5,479
5,846
5,806

2,868
3,023
3,141
3,102
2,914

All others:
1972—Dec.
1973—Dec.
1974—Dec.
1975—Feb.
M ar.

31............................................
31............................................
3 1 ............................................
2 8 ............................................
3 1 ............................................

N ote.—D irect public issues only. Based on Treasury Survey o f
Ownership.
D ata complete for U.S. G ovt, agencies and trust funds and F.R . Banks,
b ut data for other groups include only holdings o f those institutions
th a t report. The following figures show, for each category, the number
and proportion reporting: (1) 5,564 commercial banks, 475 m utual savings




banks, and 733 insurance companies combined, each about 90 per cent;
(2) 461 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 503 State and local govts., about 40 per cent,
“ All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately,

A 36

U.S. GOVERNMENT SECURITIES □ MAY 1975
DAILY-AVERAGE DEALER TRANSACTIONS
(Par value, in millions o f dollars)
U.S. Government securities
By m aturity

By type o f custom er

Period
Total
W ithin
1 year

1-5
years

5-10
years

U.S. Govt, U.S. Govt,
securities securities
dealers
brokers

Over
10 years

Com ­
m ercial
banks

All
o th e r1

U.S. G ovt,
agency
securities

D ec..................................

3,697
3,338
3,542
3,084
2,566
3,097
4,114
3,543
3,977
4,111

2,814
2,682
2,645
2,549
2,114
2,407
3,327
2,802
2,872
3,126

450
438
693
385
348
389
472
498
635
550

369
173
133
110
66
238
265
193
384
369

64
45
72
41
38
64
50
50
86
67

744
614
711
693
490
554
683
607
560
671

892
836
905
759
685
876
1,351
1,087
1,049
1,196

1,071
951
991
877
681
789
1,022
928
1,144
1,120

991
937
936
755
710
878
1,058
920
1,224
1,124

733
710
861
978
1,044
856
1,227
1,150
1,186
1,087

1975—Jan...................................
Feb..................................
M ar.................................

5,415
5,770
4,464

3,495
3,353
2,812

1,514
1,521
993

303
r711
462

104
r185
197

887
698
670

1,549
2,044
1,183

1,503
1,511
1,196

1,478
1,518
1,415

1,244
1,233
928

1974— M ar.................................
A pr..................................
M ay ................................
Ju n e ................................
July.................................
A ug.................................
Sept.................................
Oct..................................

Week ending—
1975—Mar.

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

4,090
4,721
4,271
r4,854

2,606
3,355
2,443
2,835

1,116
812
1,127
1,085

290
463
636
r452

77
92
65
480

608
749
622
r685

1,145
1,261
1,025
*•1,470

1,112
1,360
1,204
1,133

1,225
1,351
1,419
*•1,566

885
*•936
*•846
1,130

Apr.

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

4,541
6,147
5,694
4,876
4,170

2,988
4,313
4,394
3,127
3,100

1,092
1,273
959
1,270
788

265
402
235
339
162

196
159
107
140
120

560
851
893
609
550

1,050
1,908
1,507
1,308
1,109

1,188
1,424
1,459
1,134
941

1,743
1,965
1,835
1,824
1,570

752
1,219
838
909
715

N ote.—The transactions data combine market 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 o f called or matured securities, or purchases or
sales o f 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)

1 Since Jan. 1972 has included transactions o f dealers and brokers in
securities other than U.S. Govt.

U.S. G overnm ent securities, by maturity
Period

Over
10
years

U.S.
Govt.
agency
securi­
ties

287
62
66
78
90
356
340
260
618
559

102
17
41
16
4
84
69
31
169
197

1,045
719
791
1,226
935
1,073
1,216
1,445
1,531
1,803

>1,236
1,180
1,486

600
536
618

113
213
198

1,578
1,469
1,444

Within
All
1
m aturi­
ties
y ear

1-5
years

2,587
1,536
495
594
263
2,487
3,060
2,870
4,513
4,831

2,149
1,577
421
447
219
1,819
2,317
2,149
2,999
3,100

50
-1 2 1
-3 3
52
-5 0
228
334
430
728
975

1975—Jan ................... >•4,634 2,689
Feb.................. r5 ,588 *•3,658
M ar................. 5,737 3,435

1974— M ar..................
A pr..................
M ay.................
June.................
Ju ly .................
A u g .................
Sept.................
Oct...................
N ov.................
D ec..................

5-10
years

Commercial banks
All
sources

Period

1974— M ar.............
M ay............
June............
Ju ly .............
A ug.............
Sept.............
N ov.............

Feb.............
M ar............

Corpora­
tions 1

All
other

New
York
City

Else­
where

3,817
2,449
1,637
2,477
1,710
4,138
4,709
4,621
5,626
6,904

1,196
600
26
241
6
988
1,312
1,194
1,466
2,061

952
728
486
884
596
1,248
1,247
1,003
1,245
1,619

485
287
213
268
216
548
480
571
561
691

1,185
833
913
1,083
892
1,354
1,671
1,853
2,355
2,534

6,185
6,295
6,881

1,455
1,672
1,879

1,277
1,077
1,650

864
714
838

2,590
2,832
2,513

W eek ending—

Week ending—
1975—Feb.

5 ..........
12
19..........
26
, ,

5,104
5,590
5,482
6,061

3,106
3,902
3,958
3,619

1,044
922
775
1,775

673
539
553
501

281
227
195
167

1,497
1,411
1,574
1,617

1975—Feb.

5 c. .
12*..
19 c. .
2 6 c..

5,605
6,204
6,338
6,784

1,351
1,738
1,632
1,865

821
1,080
1,045
1,295

707
761
713
728

2,727
2,626
2,950
2,897

M ar.

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

5,458
5,520
6,063
5,876

3,438
3,598
3,438
3,306

1,434
1,271
1,518
1,709

435
497
940
576

151
154
167
285

1,479
1,426
1,419
1,487

M ar.

5 ...
1 2 ...
1 9 ...
2 6 ...

6,784
7,097
7,148
6,506

1,826
1,968
2,018
1,689

1,147
1,741
1,885
1,499

709
954
828
786

3,102
2,433
2,417
2,532

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 maturity and involving the same am ount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders o f the securities rather than
dealer trading positions.
Average o f daily figures based on number of trading days in the period.




1 All business corporations, except commercial banks and insurance
companies.
N ote.—A verages o f 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.




A

MAY 1975 □ FEDERALLY SPONSORED C R ED IT AGENC
ING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, MARCH 31
Cou­
pon

Am ount
(millions
o f dollars)

7.15
8.05
6.80
7.95
7.88
7.15
6.50
7.05
9.10
8 .70
7.38
8.75
9.20
7.20
7.45
7.80
9.55
8.60
9.55
7.20
.05
8.70
6.95
7.15
8.80
6.75
7.45
9.15
9.38
7.60
9.10
8.65
9.45
8.65
.75
9.5 0
8.15
7.50
7.75
7.05
7.80
6.60
8.65
7.30
7.38
8.75
7.38

700
265
300
300
500
400
350
600
700
400
300
300
600
600
300
500
700
600
500
500
500
500
200 *
300
600
300
300
700
400
500
500
600
600
500
400
500
500
500
350
300
200
200
400
183
400
300
400

7.05
6.15
8.60
7.75
7.15

400
350
140
150
150

8.20

300

2,835
8.00
4.38
7.40

200
248
250

8.38
3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63

250
53
5
71
35
10
21
81
200

Agency, and date o f issue
and m aturity
Federal National M ortgage
Association—Cont.
D ebentures:
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 ...
9/10/73 - 1 2 /1 0 /7 5 ....
3/11/71 - 3/10/76.........
6/12/73 -3 /1 0 /7 6 .........
6/10/71 -6 /1 0 /7 6 .........
2/10/72 - 6/10/76.........
9 /1 0 /7 4 -6 /1 0 /7 6 .........
11/10/71 - 9 /1 0 /7 6 ....
6 /1 2 /7 2 -9 /1 0 /7 6 .........
12/10/74 - 9 /1 0 /7 6 ....
7/12/71 - 1 2 /1 0 /7 6 ....
12/11/72- 12/10/76...
6/10/74-12/10/76. . . .
2/13/62 - 2 /1 0 /7 7 ....
9/11/72 - 3/10/77.........
3/11/74 - 3/10/77.........
12/10/70 - 6/10/77. . .
5/10/71 -6 /1 0 /7 7 .........
12/10/73 - 6 /1 0 / 7 7 ....
9/10/71 -9 /1 2 /7 7 .........
9/10/73 -9 /1 2 /7 7 .........
7/10/73 - 1 2 /1 2 /7 7 ....
10/1/73 - 1 2 /1 2 /7 7 ....
6/1 0 /7 4 -3 /1 0 /7 8 .........
3/10/75-3/10/78...........
6/12/73 - 6/12/78.........
3/11/74 -9 /1 1 /7 8 .........
10/12/71 - 12/11/78..
7 /1 0/74- 12/1 1 /7 8 ....
12/10/73 - 3 / 1 2 / 7 9 ....
9/10/73 -6 /1 1 /7 9 .........
9/10/74 -6 /1 1 /7 9 .........
6 /1 2 /7 2 -9 /1 0 /7 9 .........
12/10/74 - 9 /1 0 / 7 9 ....
12/10/71 - 12/10/79..
2/10/72 - 3/10/80.........
3/10/75-3/10/80...........
6 /1 0 /7 4 -6 /1 0 /8 0 .........
2/16/73 - 7/31/80........
2/16/73 - 7/31/80........
10/1/73 - 9/10/80.........
1/16/73 - 1 0 /3 0 /8 0 ....
12/11/72 - 12/10/80...
6/29/72 - 1/29/81.........
3/12/73 - 3/10/81.........
4/18/73 -4 /1 0 /8 1 .........
3/21/73 - 5/1/81...........
3/21/73 - 5/1/81...........
1/21/71 - 6 /1 0 /8 1 ....
9/10/71 -9 /1 0 /8 1 .........
9 /1 0 /7 4 -9 /1 0 /8 1 .........
3 /1 1 /7 4 -1 2 /1 0 /8 1 ....
7 /1 0 /7 4 -3 /1 0 /8 2 .........
6 /2 8 /7 2 -5 /1 /8 2 ...........
2/10/71 - 6/10/82.........
9/11/72 - 9/10/82........
12/10/73 - 12/10/82...
3/11/71 - 6/10/83.........
6/12/73 -6 /1 0 /8 3 .........
11/10/71 - 9 /1 2 / 8 3 ....
4/12/71 -6 /1 1 /8 4 .........
12/10/74 -9 /1 0 /8 4 .. ..
12/10/71 - 12/10/84..
3/10/75-3/11/85...........
3/10/72 - 3/10/92___
6 /1 2 /7 2 -6 /1 0 /9 2 .........
12/11/72 - 12/10/97-82

Cou­
pon
rate

5.25
7.50
6.80
5.70
8.25
5.65
7.13
6.70
5.85
10.00
6.13
5.85
7.50
7.45
6.25
8.45
4.50
6.30
7.05
6.38
6.50
7.20
6.88
7.85
7.25
7.55
8.45
6.70
7.15
7.15
6.75
8.95
7.25
7.85
9.80
6.40
7.80
6.55
6.88
7.25
8.50
5.19
3.18
7.50
4.46
6.60
6.15
7.05
6.59
4.50
5.77
7.25
7.25
9.70
7.30
8.88
5.84
6.65
6.80
7.35
6.75
7.30
6.75
6.25
7.95
6.90
7.65
7.00
7.05
7.10

Amount
(millions
of dollars)

500
350
650
500
300
500
400
250
450
700
300
500
200
300
500
600
198
500
400
250
150
500
300
400
500
500
650
350
600
550
300
450
500
300
600
300
700
350
250
750
600
1
9
400
5
300
156
350
26
18
2
250
250
300
250
300
58
250
200
300
200
300
250
200
300
250
500
200
200
200

morn
dllioi
iolla

Agency, and date o f issue
and m aturity
Banks for cooperatives
Bonds:
10/1/74 - 4 /1 / 7 5 .. .
11/4 /7 4 - 5 /1 /7 5 ...
1 2 /2 /7 4 - 6 /2 /7 5 .. ,
1/2/75 -7 /1 /7 5 .
2/3/75 - 8/4/75
3/3/75-9/2/75.........
10/1/73 - 4 /4 / 7 7 ...
1 2/2 /7 4 - 10/1/79..

463
683
542
485
474
392
200
201

Federal intermediate
credit banks
Bonds:
7 /1 /7 4 -4 /1 /7 5 .........
8 /1 /7 4 -5 /1 /7 5 .........
9/3/74 - 6/2/75.........
1 0 /1 /7 4 - 7 /1 /7 5 ....
1/3/72 - 7 /1 /7 5 .........
11/4 /7 4 -8 /4 /7 5 . . . .
1 2 /2 /7 4 - 9 /2 /7 5 ....
1/2/75 - 10/1/75 ___
2/3/75 - 11/3/75 ___
3/3/75-12/1/75.........
3/1/73 - 1/5/76.........
7/2/73 - 1/3/77.........
7/1/74 - 4/4/77.........
1/2/74 - 1/3/78.........
1/2/75 - 1 /2 /7 9 .........

811
784
714
769
302
743
783
513
754
897
261
236
321
406
410

Federal land banks
Bonds:
4/20/65 - 4 /21/75..
7/20/73 -4 /2 1 /7 5 ...
2 /1 5 /7 2 -7 /2 1 /7 5 ...
4 /2 2 /7 4 -7 /2 1 /7 5 ...
7/20/71 - 10/20/75..
10/23/73 - 10/20/75.
4/20/72 - 1/20/76...
7/22/74 - 1/20/76...
2/21/66 - 2/24/76..
1/22/73 - 4 /2 0 /7 6 ...
4/22/74 - 4 /2 0 /7 6 ...
7/20/66 - 7/20/76..
1/21/74 - 7 /2 0 /7 6 ...
4/23/73 - 10/20/76..
4/22/74 - 4 /2 0 /7 7 ...
7/20/73 - 7 /2 0 /7 7 ...
10/20/71 - 10/20/77.
1 0 /2 1 /7 4 -1 /2 3 /7 8 ..
2/20/63 - 2/20/73-78
5/2/66 - 4 /2 0 /7 8 ...
1/20/75 -4 /2 0 /7 8 . ..
7/20/72 - 7/20/78..
7 /2 2 /7 4 -7 /2 0 /7 8 ...
10/23/73 - 10/19/78.
2/20/67 - 1 /22/79...
1 /21/74- 1 /22/79...
9/15/72 -4 /2 3 /7 9 ...
2/20/74 - 7/23/79. ..
10/23/72 - 10/23/79.
1/22/73 - 1/21/80...
7/20/73 - 7 /2 1 /8 0 ...
10/21/74- 10/20/80.
2/23/71 - 4 /2 0 /8 1 ...
7/22/74 - 7 /2 0 /8 1 ...
1/20/75 -1 /2 0 /8 2 . ..
4 /2 0 /7 2 -4 /2 0 /8 2 ...
4/23/73 - 10/20/82..
10/23/73 - 10/20/83.

guaranteed by the U.S. Govt.; see also note to table at top of p. A-38.

4.38
7.65
5.70
8.30
7.20
7.40
6.25
9.20
5.00
6.25
8.25
5.38
7.05
7.15
8.25
7.50
6.35
8.70
4.13
5.13
7.60
6.40
9.15
7.35
5.00
7.10
6.85
7.15
6.80
6.70
7.50
8.70
6.70
9.10
7.80
6.90
7.30
7.30

200
300
425
300
300
362
300
650
123
373
400
150
360
450
565
550
300
546
148
150
713
269
350
550
285
300
235
389
400
300
250
400
224
265
400
200
239
300

FEDERALLY SPONSORED C R ED IT AGENCIES □ MAY 1975

A 38

MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions o f dollars)
Federal home loan banks
Assets
End o f
period

Federal National
Mortgage Assn.
(secondary market
operations)

Liabilities and capital
Cash
and
de­
posits

A d­
vances
to
mem ­
bers

Invest­
ments

1970...............
1971...............
1972...............
1973...............

10,614
7,936
7,979
15,147

3,864
2,520
2,225
3,537

105
142
129
157

10,183
7,139
6,971
15,362

2,332
1,789
1,548
1,745

1974—A p r...
M a y ..
J u n e ..
J u ly ..
Aug...
Sept...
O c t...
N o v ..
D e c ...

16,020
17,103
17,642
18,582
19,653
20,772
21,409
21,502
21,804

1,615
1,956
2,564
2,578
2,052
2,681
3,224
2,568
3,094

82
96
115
150
80
135
105
106
144

13,902
14,893
16,393
17,390
18,759
20,647
22,058
21,474
21,878

1975—J a n .. . 20,728
F e b ... 19,460
M a r .. 18,164

4,467
4,838
6,415

113
99
154

21,778
20,822
18,453

Bonds
and
notes

M em­
ber
de­
posits

Banks
for
cooperatives

M ort­
gage
loans
(A)

Deben­
tures
and
notes
(L)

Loans
to
cooper­
atives
(A)

Bonds

1,607
1,618
1,756
2,122

15,502
17,791
19,791
24,175

15,206
17,701
19,238
23,001

2,067
2,215
2,158
1,954
1,935
2,160
2,129
2,182
2,484

2,337
2,376
2,413
2,450
2,495
2,543
2,580
2,603
2,624

25,264
25,917
26,559
27,304
28,022
28,641
29,139
29,407
29,709

2,612
2,819
3,025

2,699
2,698
2,677

29,797
29,846
29,870

Capital
stock

N ote.—D ata from Federal H om e Loan Bank Board, Federal National
M ortgage 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

Federal
intermediate
credit banks

Federal
land
banks

Bonds

(L)

Loans
and
dis­
counts
(A)

2,030
2,076
2,298
2,577

1,755
1,801
1,944
2,670

23,668
25,089
25,232
25,878
26,639
27,312
27,543
28,024
28,201

2,891
2,694
2,733
3,008
3,026
3,092
3,598
3,573
3,575

28,030
27,730
28,420

3,910
3,821
3,741

B onds

(L)

M ort­
gage
loans
(A)

4,974
5,669
6,094
7,198

4,799
5,503
5,804
6,861

7,186
7,917
9,107
11,071

6,395
7,063
8,012
9,838

2,810
2,674
2,449
2,477
2,622
2,835
2,855
3,295
3,561

7,850
8,195
8,479
8,706
8,548
8,931
8,838
8,700
8,848

7,403
7,585
7,860
8,212
8,381
8,502
8,482
8,441
8,400

11,878
12,142
12,400
12,684
12,941
13,185
13,418
13,643
13,643

10,843
10,843
10,843
11,782
11,782
11,782
12,427
12,427
12,427

3,653
3,592
3,440

8,888
9,031
9,303

8,419
8,484
8,703

14,086
14,326
14,641

13,020
13,021
13,021

(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 o f these
securities, see table on preceding page. Loans are gross o f valuation reserves
and represent cost for FN M A and unpaid principal for other agencies.

NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions o f dollars)
All issues (new capital and refunding)

Issues for new capital

Type o f issuer

Type o f issue
Period
Total

197
197
197
197

1
2
3
4

24,962
23,652
23,970
23,705

G ener­
al
obli­
gations

Reve­
nue

HAA1

U.S.
Govt.
loans

State

Special
district
O ther2
and
stat.
auth.
8,714 10,246
9,496 9,165
9,507 10,249
8,499 10,470

15,220 8,681
13,305 9,332
12,257 10,632
13,204 9,961

1,000
959
1,022
461

5,999
4,991
4,212
4,659

227

344
360
451
580
540
141
448
328
689
222

793
862
1,097
721
158
400
641
974
1,005
558

372
877
373

668
582
646

1974— M a r ..
A p r...
M a y ..
J u n e ..
July. .
A u g ..
S e p t..
O c t...
N o v ..
D e c ...

2,029
2,406
2.313
2,171
1,466
1,109
1,705
2,865
2,487
1,500

1,181
1,708
1,101
1,075
859
576
869
1,707
1,110
761

617
689
1,203
856
600
529
832
1,153
1,374
717

1975—Jan.
F e b .r .
M a r ..

2,295
2.314
1,967

1,347
1,712
1,268

942
597
698

234

1 Only bonds sold pursuant to 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
2 Municipalities, counties, townships, school districts.
3 Excludes U.S. Govt, loans. Based on date o f delivery to purchaser
and payment to issuer, which occurs after date o f sale.




Total
amount
deliv­
ered3

Use o f proceeds

T otal

Edu­
cation

Roads
and
bridges

Util­
ities4

O ther
H ous­ Veter­
ans*
pur­
ings
aid
poses

24,495
22,073
22,408
20,210

5,278
4,981
4,311
4,709

2,642
1,689
1,458
767

5,214
4,638
5,654
5,513

2,068
1,910
2,639
1,045

9,293
6,741
8,335
8,176

887
1,177
756
864
761
565
611
1,558
789
700

1,906
2,361
2,237
2,079
1,456
1,067
1,669
2,738
2,403
1,475

366
516
442
220
314
228
251
343
698
297

258
9
18
62
58
85
11
110
4
64

363
595
711
664
154
257
380
236
866
424

241
178
8
334
15
21
110
9
53

678
1,063
1,058
799
930
482
1,006
1,939
826
637

1,256
853
950

2,273
2,281
1,922

710
430
410

49
206
88

640
412
468

155
105
35

719
1,128
921

4 W ater, sewer, and other utilities.
5 Includes urban redevelopment loans.
N ote.—Security Industries Assn. data; par am ounts o f long-term issues
based on date o f sale unless otherwise indicated.
Components may not add to totals due to rounding.

MAY 1975 o S EC U R ITY ISSUES

A 39

TOTAL NEW ISSUES
(In millions o f dollars)
Gross proceeds, all issues1
N oncorporate

C orporate

Period
T otal

Bonds

U.S.
G ovt.2

U.S.
Govt.
agency3

State
and local
(U.S.)4

O ther 5

17,325
17,080
19,057

16,283
12,825
23,883

24,370
23,070
22,700

2,165
1,589
1,385

Stock

Total
Total

Publicly
offered

Privately
placed

Preferred

Com m on

45,090
41,957
33,391
37,870

32,123
28,896
22,268
31,567

24,775
19,434
13,649
25,337

7,354
9,462
8,620
6,230

3,670
3,367
3,372
2,253

9,291
9,694
7,750
4,050

1974—J a n .«.
F e b ...
M ar..
A p r...
M a y ..
J u n e ..
J u ly ..
A u g ..,
Sept..
O ct.r .
N o v .r
D e c.r .

3,328
2,687
3,217
3,066
3,164
2,981
3,260
2,668
1,629
4,625
3,762
3,483

2,898
2,101
2,457
2,265
2,957
2,455
2,706
2,341
1,215
3,793
3,352
3,027

2,115
1,683
2,020
1,594
2,350
1,939
2,086
2,042
897
3,423
3,016
2,172

783
418
437
671
607
516
620
299
318
370
336
855

152
268
398
355
65
113
228
107
216
196
93
152

278
318
362
446
142
413
327
218
289
636
317
304

1975—J a n ...

5,074

4,498

3,665

833

235

341

105,233
96,522
100,417

1971.,
1972.,
1973.,
1974r

Gross proceeds, major groups of corporate issuers
R eal estate
and financial

M anufacturing

Commercial and
miscellaneous

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

1971.
1972.
1973.
1974r

9,426
4,821
4,329
9,883

2,152
1,809
643
547

2,272
2,645
1,283
1,865

2,390
2,882
1,559
958

1,998
2,862
1,881
' 993

420
185
43
22

7,605
6,392
5,585
8,868

4,195
4,965
4,661
3,964

4,227
3,692
3,535
3,716

1,592
1,125
1,369
222

6,601
8,485
5,661
6,252

2,212
2,095
2,860
598

1974—J a n . «.
F e b ...
M a r...,
A p r ...,
M a y ..,
June. .,
J u ly ...
A u g ...,
S ep t...,
O ct.r . .
N o v .r . ,
D e c.r .

867
354
479
1,193
847
434
1,051
601
186
740
1,696
1,435

29
36
161
9
15
44
43
4
2
3
2
199

136
55
52
238
332
311
257
38
46
102
124
174

124
143
71
56
71
139
93
62
47
29
100
23

78
2
76
6
44
5
62
14
50
306
336
14

15
1

1,192
536
850
446
837
859
318
862
384
1,414
739
431

249
293
449
685
75
288
300
216
296
695
224
194

142
372
310
289
660
355
242
364
331
439
62
150

4
25
21
5
3
1
53

485
783
691
95
239
491
777
462
218
791
397
823

27
87
58
47
44
39
65
44
48
70
54
15

1975—Jan .........................................

1,749

145

60

88

691

507

920

Period

1 G ross proceeds are derived by multiplying principal am ounts or
num ber o f units by offering price.
2 Includes guaranteed issues.
3 Issues n o t guaranteed.
4 See N ote to table at bottom o f opposite page.
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and D evelopm ent, and domestic nonprofit organ­
izations.




T ransportation

Public utility

Com m unication

18
36
31
25

904

6 Beginning Jan. 1974 noncorporate figures are no longer published by
the SEC.
N ote.—Securities and Exchange Commission estimates o f new issues
maturing in more than 1 yeair sold for cash in the U nited States.

A 40

SECURITY ISSUES □ MAY 1975
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions o f dollars)
Derivation o f change, all issuers1

Period

All securities

Bonds and notes

Common and preferred stocks

New issues

Retirements

Net change

New issues

Retirements

N et change

New issues

Retirements

N et change

1971.........................
1972.........................
1973.........................
1974.........................

46,687
42,306
33,559
39,334

9,507
10,224
11,804
9,935

37,180
32,082
21,754
29,399

31,917
27,065
21,501
31,554

8,190
8,003
8,810
6,255

23,728
19,062
12,691
25,098

14,769
15,242
12,057
7,980

1,318
2,222
2,993
3,678

13,452
13,018
9,064
4,302

1973—IV ................

10,711

4,378

6,334

7,013

3,786

3,227

3,698

591

3,107

1974—1...................
I I ..................
I l l ................
IV .................

8,973
9,637
8,452
12,272

2,031
2,048
2,985
2,871

6,942
7,589
5,467
9,401

6,810
7,847
6,611
10,086

1,442
1,584
1,225
2,004

5,367
6,263
5,386
8,082

2,163
1,790
1,841
2,186

588
465
1,759
866

1,575
1,326
82
1,319

Type o f issues
Commercial
and other 2

M anu­
facturing

Period

Transpor­
tation 3

Public
utility

Communi­
cation

Real estate
and financial *

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

1971..........................
1972.........................
1973..........................
1974.........................

6,585
1,995
801
7,404

2,534
2,094
658
17

827
1,409
-1 0 9
1,116

2,290
2,471
1,411
-1 3 5

900
711
1,044
341

800
254
-9 3
-2 0

6,486
5,137
4,265
7,308

4,206
4,844
4,509
3,834

3,925
3,343
3,165
3,499

1,600
1,260
1,399
398

5,005
7,045
3,523
5,428

2,017
2,096
1,181
207

1973—IV .................

-1 3 1

147

-1 6 2

460

176

-1 3

1,068

1,506

1,051

575

1,225

431

1974—1....................
I I ..................
I l l .................
IV .................

906
1,921
1,479
3,098

324
-1 2
-4 2 1
126

-1 1
698
189
240

363
213
-6 6 4
-4 7

-3 7
-1 3
49
342

-3 5
12
-6
9

2,172
1,699
1,358
2,079

827
1,038
862
1,107

675
1,080
1,116
628

76
-7
222
107

1,662
877
1,194
1,695

20
82
88
17

1 Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
N o t e . —Securities and Exchange Commission estimates o f cash trans­
actions only. As contrasted with data shown on preceding page, new issues

exclude foreign sales and include sales o f securities held by affiliated com­
panies, 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 in­
ternal funds or with proceeds o f issues for that purpose.

OPEN-END INVESTMENT COMPANIES
(In millions o f dollars)
Sales and redem ption
o f own shares

Assets (m arket value
a t end o f period)

Year

Sales and redem ption
o f own shares

Assets (m arket value
at end o f period)

M onth
Sales 1 R edemp­
tions

N et
sales

T otal 2

Cash
position 3

1963
1964
1965

2,460
3,404
4,359

1,504
1,875
1,962

952 25,214
1,528 29,116
2,395 35,220

1,341
1,329
1,803

1966
1967
1968

4,671
4,670
6,820

2,005
2,745
3,841

2,665 34,829
1,927 44,701
2,979 52,677

2,971
2,566
3,187

1969
1970
1971

6,717
4,624
5,145

3,661
2,987
4,751

3,056 48,291
1,637 47,618
>•394 '55,045

3,846
3,649
'3 ,038

1972
1973
1974

4,892
4,358
5,346

6,563
5,651
3,937

-1,671 59,831
-1,261 46,518
1,409 35,777

3,035
4,002
5,637

Cash
position 3

O ther

Sales i

23,873
27,787
33,417

297
262
323
337
442
446
499
816
619
736

346
327
320
276
352
339
292
311
335
411

-4 9
-6 5
3
61
90
127
207
505
284
325

44,423
42,679
41,015
40,040
37,669
35,106
31,985
37,115
36,366
35,777

4,406
4,426
4,389
4,461
4,609
4,953
5,078
5,652
5,804
5,637

40,017
38,253
36,626
35.579
33,060
30,153
26,907
31,463
30,562
30,140

1,067
889
847

428
470
623

639
419
224

3,7407
39,330
40,449

3,889
4,006
3,870

33,518
35,324
36.579

1974—M ar..
A pr..
M ay.
June.
July.
31,858
42,135
Aug..
49,490
Sept..
O c t..
Nov..
44,445
D ec..
43,969
'52,007
1975—J a n . .
56,796
F e b ..
M ar.
42,516
30,140

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.
3 Cash and deposits, receivables, all U.S. G ovt, securities, and other
short-term debt securities, less current liabilities.




Total 2

O ther

Redemp­
tions

N et
sales

N ote.—Investment Com pany 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.

MAY 1975 □ BUSINESS FINANCE

A 41

CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)

Year

Profits
before
taxes

In ­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

Corporate
capital
consump­
tion
allow­
ances1

1968................
1969...............
1 9 7 0 ........
1971................
1972................
1973................
1974................

87.6
84.9
7 4.0
83.6
99.2
122.7
140.7

39.9
40.1
34.8
37.5
4 1.5
49.8
55.7

47.8
44.8
39.3
46.1
57.7
72.9
85.0

23.6
24.3
24.7
25.0
27.3
29.6
32.7

24.2
20.5
14.6
21.1
30.3
43.3
52.4

46.8
51.9
56.0
60.4
66.3
71.2
76.7

i Includes depreciation, capital outlays charged to current accounts, and
accidental damages.

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

1973—1___
I I ....
I I I ...
I V ...

120.4
124.9
122.7
122.7

48.9
50.9
49.9
49.5

71.5
74.0
72.9
73.2

28.7
29.1
29.8
30.7

42.8
44.9
43.1
42.5

69.2
70.8
71.6
73.1

1974—1. . . .
II. . .
I I I . ..
I V ...

135.4
139.0
157.0
131.5

52.2
55.9
62.7
52.0

83.2
83.1
94.3
79.5

31.6
32.5
33.2
33.3

51.6
50.5
61.1
46.2

74.1
75.7
77.6
79.3

N ote.—D ept, o f Commerce estimates.
adjusted annual rates.

Q uarterly data are at seasonally

CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions o f dollars)
C urrent assets
N et
working
capital

End o f period

Total

Cash

U.S.
Govt.
securi­
ties

C urrent liabilities

N otes and accts.
receivable
U.S.
Govt, i

Other

Inven­
tories

Other

Total

Notes and accts.
A ccrued
payable
Federal
income
taxes
U.S.
Other
G o v t.1

Other

1970.................................
1971.................................

187.4
204.9

492.3
518.8

50.2
55.7

7.7
10.7

4 .2
3.5

201.9
208.8

193.3
200.3

35.0
39.7

304.9
313.9

6.6
4.9

204.7
207.3

10.0
12.2

83.6
89.5

1972—I I I .......................
IV ........................

219.2
224.3

547.5
563.1

57.7
60.5

7.8
9 .9

2 .9
3 .4

224.1
230.5

212.2
215.1

42.8
43.6

328.3
338.8

4.7
4 .0

212.1
221.6

12.7
14.1

98.8
99.1

1 9 7 3 _ I...........................
I I .........................
I l l .......................
IV ........................

231,8
237.7
241.9
245.3

579.2
596.8
613.6
631.4

61.2
62.3
62.2
65.2

10.8
9 .6
9 .5
10.7

3 .2
2 .9
3 .0
3.5

235.7
245.6
254.2
255.8

222.8
230.3
238.2
247.0

45.5
46.0
46.6
49.3

347.4
359.1
371.7
386.1

4.1
4.5
4 .4
4.3

222.8
232.5
240.8
252.0

15.7
13.9
15.3
16.6

104.7
108.1
111.2
113.3

1974— I ...........................
I I .........................
I l l .......................

253.2
257.4
263.6

653.9
673.3
696.0

62.8
62.2
63.9

11.7
10.4
10.7

3 .2
3 .4
3.5

265.6
278.7
284.1

258.9
269.7
282.7

51.6
48.8
51.1

400.7
415.8
432.4

4 .5
4 .7
5.1

256.7
268.4
276.6

18.7
17.4
20.5

120.7
125.3
130.2

i
Receivables from, and payables to, the U.S. Govt, exclude am ounts
offset against each other on corporations’ books.

N ote.—Based on Securities and Exchange Commission estimates,

BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions o f dollars)

1971.........................
1972.........................
1973.........................
1 9 7 4 ...

Mining

Total

Public utilities

Transportation

M anufacturing
Period

Rail­
road

Air

Other

Electric

1.38
1.46
1.66
2.12

12.86
14.48
15.94
17.63

D urable

N on­
durable

81.21
88.44
99.74
112.40

14.15
15.64
19.25
22.62

15.84
15.72
18.76
23.39

2.16
2.45
2.74
3.18

1.67
1.80
1.96
2 .5 4

1.88
2.46
2.41
2.00

Commu­
nications
Gas
and other
2.44
2.52
2.76
2.92

Other i

Total
(S.A.
A.R.)

18.05
20.07
21.40
22.05

10.77
11.89
12.85
13.96

1972—IV .................

25.20

4.77

4.61

.63

.47

.63

.40

4.01

.73

3.39

5.57

91.94

1973—i ...................
I I ..................
I l l .................
IV .................

21.50
24.73
25.04
28.48

3.92
4.65
4.84
5.84

3.88
4.51
4.78
5.59

.63
.71
.69
.71

.46
.46
.48
.56

.52
.72
.57
.60

.32
.43
.44
.47

3.45
3.91
4.04
4.54

.50
.68
.77
.82

2.87
3.27
3.19
3.53

4.94
5.40
5.24
5.83

96.19
97.76
100.90
103.74

1974— I ...................
I I .................
H I.................
IV .................

24.10
28.16
28.23
31.92

4 .7 4
5.59
5.65
6 .64

4.75
5.69
5.96
6.99

.68
.78
.80
.91

.50
.64
.64
.78

.47
.61
.43
.48

.34
.49
.58
.71

3.85
4.56
4.42
4.80

.52
.75
.78
.87

3.19
3.60
3.39
3.78

5.05
5.46
5.57
5.97

107.27
111.40
113.99
116.22

1975—I 2 .................

25.33

4.87

5 .60

.87

.66

.46

.53

3.81

.56

1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.




7. 98

113.22

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.

A 42

REAL ES TA TE CR ED IT □ MAY 1975
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions o f dollars)
End o f year

End o f quarter

Type o f holder, and type o f property

1973
1970

1971

1974

1972
IV

I

II

III

IV

ALL H O L D E R S.................................................
1- to 4-family....................................................
M ultifamily1.....................................................
Commercial.......................................................
F arm ...................................................................

451,726
280,175
58,023
82,292
31,236

499,758
307,200
67,367
92,333
32,858

564,825
345,384
76,496
107,508
35,437

634,955
386,241
85,401
123,965
39,348

645,948
391,770
86,591
127,384
40,203

664,337
402,165
88,269
132,122
41,781

678,037
409,725
90,183
134,967
43,162

687,484
414,344
91,893
136,977
44,270

PRIVATE FINANCIAL IN ST IT U T IO N S..
1- to 4-family....................................................
Multifamily i .....................................................
Commercial.......................................................

355,929
231,317
45,796
68,697
10,119

394,239
253,540
52,498
78,345
9,856

450,000
288,053
59,204
92,222
10,521

505,401
322,048
64,730
107,128
11,495

513,946
326,863
65,386
110,047
11,650

528,212
335,442
66,594
114,185
11,991

536,868
340,398
67,757
116,430
12,283

541,497
342,757
68,371
117,960
12,409

9 9 ,3 1 4

119,068

121,882

67,998
6,932
38,696
5,442

127,320

129,943

69,374
7,046
39,855
5,607

72,253
7,313
41,926
5,828

73,539
7,415
43,011
5,978

13 1,043

Comm ercial banks2 ..........................................

73,275

82 ,5 1 5

1- to 4-family................................................
M ultifamily1.................................................
Commercial...................................................
F arm ...............................................................

42,329
3,311
23,284
4,351

48,020
3,984
26,306
4,205

M utual savings b an ks ......................................

57,004
5,778
31,751
4,781

74,162
7,478
43,375
6,028

5 7 ,9 4 8

6 1 ,9 7 8

6 7 ,5 5 6

73,231

74,264

74,792

7 4 ,8 9 0

37,342
12,594
7,893
119

38,641
14,386
8,901
50

41,650
15,490
10,354
62

44,247
16,843
12,084
57

7 3,9 5 7

1- to 4-family................................................
Multifamily 1.................................................
Commercial...................................................
F arm ...............................................................

44,462
17,011
12,425
59

44,426
17,081
12,698
59

44,593
17,202
12,938
59

44,649
17,225
12,956
60

Savings and loan associations ........................

150,331

1 7 4 ,25 0

2 0 6 ,1 8 2

2 3 1 ,7 3 3

187,750
22,524
21,459

2 4 3 ,4 0 0

142,275
17,355
14,620

167,049
20,783
18,350

2 3 6 ,1 3 6

124,970
13,830
11,531

191,223
22,763
22,150

197,008
23,342
23,050

1- to 4-family................................................
M ultifamily1.................................................
Commercial...................................................

2 4 7 ,6 2 4

200,352
23,574
23,698

2 4 9 ,3 0 6

201,564
23,684
24,058

74,375

75 ,4 9 6

76,948

8 1 ,3 6 9

81,971

83 ,2 2 8

8 4 ,5 0 9

8 6 ,2 5 8

1- to 4-family................................................
M ultifamily1.................................................
Commercial...................................................
F a rm ...............................................................

26,676
16,061
25,989
5,649

24,604
16,773
28,518
5,601

22,350
17,153
31,767
5,678

22,053
18,431
34,889
5,996

21,804
18,566
35,617
5,984

21,755
18,858
36,511
6,104

21,914
19,566
36,783
6,246

22,382
19,984
37,571
6,321

FEDERAL AND RELATED A G EN C IES..
1- to 4-family....................................................
M ultifam ily1.....................................................
C o m m e rc ial.....................................................
F a rm ...................................................................

32,992
21,993
3,359
16
7,624

39,357
26,453
4,555
11
8,338

45,790
30,147
6,086

55,664
35,454
8,489

58,262
37,168
8,923

62,585
39,784
9,643

67,829
43,188
10,644

72,267
45,748
11,790

9,557

11,721

12,171

1*3,1*58

1*3,997

14,729

Government N ational M ortgage Association

5 ,2 2 2

5 ,3 2 3

5 ,1 1 3

4 ,0 2 9

3 ,6 0 4

3 ,6 1 8

4 ,0 5 2

2,490
2,623

1,330
2,699

1,189
2,415

1,194
2,424

1,337
2,715

4 ,8 4 8

2,770
2,542
11

L ife insurance com panies ................................

1- to 4-family................................................
Multifamily 1.................................................
Commercial .................................................
Farmers Hom e A dm inistration .......................

1- to 4-family................................................
F arm ...............................................................

Federal Housing and Veterans Administra­
tions ............................................................

1- to 4-family................................................
M ultifamily1.................................................

2,902
2,304
16

1,600
3,248

1 ,5 0 0

550
650

642
758

1 ,6 0 0

387
450

1 ,3 0 0
596
104

1 ,4 0 0

398
421

837

1 ,2 0 0

330
437

688
812

734
866

3 ,5 0 5
2,111

3 ,3 8 9

3 ,3 3 8

3 ,4 7 6

3 ,5 1 4

3 ,6 1 9

3 ,7 6 5

2,517
872

2,199
1,139

2,013
1,463

1,964
1,500

1,980
1,639

2,037
1,728

3 ,9 0 0

734

767

819

2,083
1,817

15,5 0 2

17,791

19,791

2 4 ,1 7 5

2 4 ,8 7 5

2 6 ,5 5 9

2 8,641

2 9 ,5 7 8

1- to 4-family................................................
M ultifamily1.................................................

15,181
321

16,681
1,110

17,697
2,094

20,370
3,805

20,516
4,359

21,691
4,868

23,258
5,383

23,778
5,800

Federal land banks (farm only)...................

7,187

7,917

9,107

11,071

11,467

12,400

13,185

13,863

Federal H om e Loan M ortgage Corporation.

357

964

1 ,7 8 9

2 ,6 0 4

3 ,1 9 1

3 ,7 1 3

4 ,5 8 6

2,446
158

2 ,6 2 7
2 ,4 1 2
165

2,951
240

3,414
299

4,217
369

9 ,1 0 9

Federal N ational M ortgage Association . . . .

1- to 4-family................................................
M ultifam ily1.................................................

357

934
30

1,754
35

452

3 ,1 5 4

5 ,8 1 5

1 0 ,8 6 5

1 1 ,7 9 8

1 2 ,9 7 3

1 3 ,8 9 2

1- to 4-family................................................

452

3,153
1

5,620
195

8,745
364

10,431
434

11,326
472

12,454
519

13,336
556

INDIVIDUALS AND O T H E R S3.................
1- to 4-family....................................................
M ultifam ily1.....................................................
Commercial.......................................................
F a rm ...................................................................

62,805
26,865
8,868
13,579
13,493

66,162
27,207
10,314
13,977
14,664

69,035
27,184
11,206
15,286
15,359

73,890
28,739
12,182
16,837
16,132

73,740
27,739
12,282
17,337
16,382

73,540
26,939
12,032
17,937
16,632

73,340
26,139
11,782
18,537
16,882

73,720
25,839
11,732
19,017
17,132

G N M A P ools ....................................................

1 Structure o f 5 or m ore units.
2 Includes loans held by nondeposit trust companies but not bank trust
departments.
3 Includes some U.S. agencies for which am ounts are small o r separate
data are not readily available.




N ote.—Based on data from various institutional and G ovt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal H om e Loan Bank Board and the D ept, o f Commerce.
Separation o f nonfarm mortgage debt by type o f property, where not
reported directly, and interpolations and extrapolations where required,
estimated mainly by Federal Reserve.

MAY 1975 □ REAL ESTA TE C R ED IT

A 43

FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE COR P O R ATIO N SECONDARY MORTGAGE MARKET ACTIVITY
(In millions o f dollars)
FN M A
M ortgage
holdings

End o f
period

FH L M C

M ortgage
transactions
(during period)

Total i

FH A in­
sured

VAguaranteed

P ur­
chases

1971...............
1972...............
1973...............
1974...............

17,791
19,791
24,175
29,578

12,681
14,624
16,852
19,189

5,110
5,112
6,352
8,310

3,574
3,699
6,127
6,953

1974—M ar...
A p r...
M a y ..
J u n e ..
Ju ly . .
A ug...
S ep t..
O c t...
N ov...
D ec...

24,875
25,263
25,917
26,559
27,304
28,022
28,641
29,139
29,407
29,578

17,315
17,450
17,725
17,966
18,250
18,526
18,758
18,966
19,083
19,189

6,340
6,503
6,794
7,079
7,384
7,704
7,994
8,206
8,291
8,310

462
526
821
770
886
868
760
612
379
278

1975—J a n .. . 29,670
F eb ... 29,718
M a r .. 29,754

19,231
19,256
19,277

8,318
8,313
8,304

208
169
151

M ortgage
commitments

Mortgage
holdings

M ortgage
transactions
(during period)

M ade
during
period

O ut­
stand­
ing

Total

FHAVA

C on­
ven­
tional

Pur­
chases

336
211
71
5

9,828
8,797
8,914
10,765

6,497
8,124
7,889
7,960

968
1,789
2,604
4,586

821
1,503
1,743
1,904

147
286
861
2,682

778
1,298
1,334
2,191

64
408
409
52

1
1

1,646
2,154
1,145
537
1,175
1,202
997
878
201
231

7,913
9,292
9,475
9,019
9,044
9,115
9,043
8,987
8,532
7,960

2,638
2,722
2,986
3,191
3,309
3,451
3,713
4,107
4,352
4,586

1,724
1,756
1,827
1,877
1,883
1,886
1,896
1,910
1,908
1,904

914
967
1,159
1,314
1,426
1,565
1,817
2,197
2,445
2,682

29
101
281
222
129
155
273
410
270
266

2

146
137
639

7,285
6,672
6,636

4,744
4,533

1,900
1 ,893

2,845
2,640

199
113

Sales

2

I

i Includes conventional loans not shown separately.
N ote.—D ata from FN M A and FH LM C, respectively.
For F N M A : Holdings include loans used to back bond issues guaranteed

by GNM A . Commitments include some multifamily and nonprofit
hospital loan commitments 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).

M ortgage
commitments

M ade
during
period

O ut­
stand­
ing

1,606
1,629
4,553

182
198
186
2,390

7
12
16

595
400
1,486
628
1,127
81
69
30
28
34

748
1,037
2,221
2,598
3,583
3,500
3,278
2,871
2,621
2,390

26
31

26
21

2,190
2,070

Sales

For F H L M C : D ata for 1970 begin with Nov. 26, when the FH L M C
became operational. Holdings and transactions cover participations as
well as whole loans. Holdings include loans used to back bond issues
guaranteed by GNM A. Commitments cover the conventional and Govt.underwritten loan programs.

TERMS AND YIELDS ON NEW HOME MORTGAGES
Conventional mortgages
T erm s1
Period

Yields (per cent) in
primary m arket

FH A insured
loans—Yiel<
in private
secondary
m arket5

Contract
rate (per
cent)

Fees and
charges
(per cent)2

Maturity
(years)

Loan/price
ratio
(per cent)

Purchase
price (thous.
o f dollars)

Loan
am ount
(thous. o f
dollars)

FHLBB
series 3

HUD
series4

1971.............................
1972.............................
1973..............................
1974.............................

7 .60
7.45
7.78
8.71

.87
.88
1.11
1.30

26.2
27.2
26.3
26.3

74.3
76.8
77.3
75.8

36.3
37.3
37.1
40.1

26.5
28.1
28.1
29.8

7.74
7.60
7.95
8.92

7.75
7.64
8.30
9.22

1974— M ar..................
A pr..................
M ay.................
June.................
Ju ly .................
Aug..................
Sept.................
O ct...................
N o v ................
Dec..................

8.43
8.47
8.55
8.65
8.75
8.87
8.97
8.95
9.04
9.13

1.35
1.21
1.20
1.25
1.28
1.32
1.30
1.37
1.40
1.44

26.4
26.1
25.8
26.3
26.1
26.4
26.1
26.7
26.2
27.5

77.3
77.3
76.8
76.9
74.4
75.3
74.8
74.7
73.6
75.5

39.1
38.5
37.9
39.7
40.5
40.2
42.4
42.3
41.3
42.4

29.5
29.2
28.8
30.1
29.6
29.5
31.1
30.7
30.2
31.3

8.64
8.67
8.74
8.85
8.96
9.09
9.19
9.17
9.27
9.37

8.60
8.90
9.15
9.25
9.4 0
9.60
9.80
9.7 0
9.55
9.45

8.66
9.17
9.46
9.46
9.85
10.30
10.38
10.13

1975—Jan ...................
Feb..................
M a r.? .............

9.09
8.88
8.83

1.51
1 .44
1 .55

26.7
26.8
26.4

73.8
76.7
7 5 .0

43.2
44.4
46.2

31.6
33.0
33.8

9.33
9.12
9.08

9.15
9.05
8.90

8.99
8.84
8.69

1 Weighted averages based on probability sample survey o f character­
istics o f mortgages originated by major institutional lender groups (in­
cluding mortgage companies) for purchase o f single-family homes, as
compiled by Federal H om e Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. D ata are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage am ount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer o f property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates
NO TE TO TABLE AT BOTTOM O F PA G E A-44:
American Life Insurance Association data for new commitments o f
$100,000 and over each on mortgages for multifamily and nonresidential
nonfarm properties located largely in the United States. The 15 companies
account for a little more than one-half o f both the total assets and the
nonfarm mortgages held by all U.S. life insurance companies. Averages,
which are based on num ber o f loans, vary in part with loan composition
by type and location o f property, type and purpose o f loan, and loan




7.70
7 .52
. . . . . . . . . . .

9.51

(as shown in first column o f this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices o f prevailing
local conditions as of the first o f the succeeding month. Yields are derived
from weighted averages o f private secondary m arket prices for Sec. 203,
30-year mortgages with minimum downpayment and an assumed pre­
payment at the end o f 15 years. Any gaps in data are due to periods o f
adjustment to changes in maximum permissible contract interest rates.
am ortization 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.

A 44

REAL ESTA TE CR ED IT □ MAY 1975

FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES
D ate o f auction
1974

Item
Nov. 18

Dec. 2

1975

Dec. 16

Dec. 30

Jan. 13

Jan. 27

Feb. 10

Feb. 24

M ar. 10 M ar. 24

Apr. 7

Apr. 21

Amounts (millions o f dollars):
G ovt.-underwritten loans
Offered1....................................
A ccepted..................................
Conventional loans
Offered1...................................
A ccepted..................................

25.7
17.6

52.5
23.3

49.6
43.3

35.7
31.8

25.3
21.2

41.4
28.6

24.6
18.1

36.2
23.8

99.2
60.1

460.5
321.4

551.6
277.2

470.9
247.3

2 0.6
6.8

2 4 .0
12.0

20.1
18.5

17.2
10.1

17.9
14.9

11.1
10.6

14.8
9.1

20.0
9.1

34.4
21.1

60.7
35.8

99.8
44.6

79.2
51.3

Average yield (per cent) on short­
term com mitments2
G ovt.-underwritten loans.........
Conventional lo an s...................

9.81
9.92

9.61
9.8 0

9.52
9.72

9.47
9.59

9.37
9.50

9.12
9.39

8.98
9 .20

8.87
9.04

8.78
8.96

8.85
9.00

8.98
9.13

9.13
9.26

1 Mortgage amounts offered by bidders are total bids received.
2 Average accepted bid yield (before deduction o f 38 basis-point fee
paid for mortgage servicing) for home mortgages assuming a prepayment

period o f 12 years for 30-year loans, without special adjustm ent for
FN M A commitment fees and FN M A stock purchase and holding require­
ments. Commitments mature in 4 months.

MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT
(End o f period, in billions o f dollars)

H older
A ll ho ld ers.......................................................
F H A ..............................................................
V A .................................................................
(Commercial h an k s.........................................
F H A ..............................................................
V A .................................................................
M utual savings banks....................................
F H A ..............................................................
V A .................................................................
Savings and loan a s s n s .................................
F H A ..............................................................
V A ................................................................. |
Life insurance cos...........................................
F H A ..............................................................
V A .................................................................
O th ers...............................................................
F H A ..............................................................
V A .................................................................

June 30,
1973

Sept. 30,
1973

Dec. 31,
1973

M ar. 31,
1974

June 30,
1974

Sept. 30,
1974

Dec. 31,
1974

133.6
86.4
47.2
11.7
8.5
3 .2
28.7
15.8
12.9

133.8
85.6
4 8.2
11.7
8 .4
3.3
28.6
15.7
12.9

135.0
85.0
50.0
11.5
8.2
3.3
28.4
15.5
12.9

136.7
85.0
51.7
11.1
7.8
3.3
28.2
15.3
12.9

137.8
84.9
52.9
11.0
7 .6
3 .4
27.9
15.1
12.8

138.6
84.1
54.5
10.8
7 .4
3.4
27.7
14.9
12.8

140.3
84.1
56.2
9 .8
6.5
3.2
27.3
14.7
12.6

29.7
13.1
8.8
4 .3
56.1

29.8
12.9
8.7
4 .2
57.4

29.8
14.0
9.5
4.5
49.4

}

}

30.1
13.7
9.3
4 .4
50.0

N ote.—VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.

j

29.7
13.6
9 .2
r4.5
52.1

29.8
13.3
9 .0
4.3
54.3

}

1

29.8
12.7
8.6
4 .2
60.7

Detail by type o f holder partly estimated by Federal Reserve for first
and third quarters, and for most recent quarter.

COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Averages
Number
o f loans

T otal
amount
committed
(millions of
(dollars)

912
1,664
2,132
2,140

2,341.1
3.982.5
4.986.5
4,833.3

1973—O c t..
Nov.
Dec..

161
95
55

1974—J a n ..
Feb..
Mar.
Apr.,
May,
June,
July.
Aug.
Sept.
O c t.,
Nov.
Dec.

61
90
117
141
148
147
121
105
95
57
47
37

Period

197
197
197
197

0
1
2
3

See N ote on preceding page.




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

2,567
2,393
2,339
2,259

9.93
9.07
8.57
8.76

22/8
22/10
23/3
23/3

74.7
74.9
75.2
74.3

10.8
10.0
9 .6
9 .5

1.32
1.29
1.29
1.29

11.1
10.4
9.8
10.0

203.3
313.5
152.8

1,263
3,300
2,778

9.09
9.17
9.18

22/6
22/2
23/3

73.6
74.3
74.8

9 .4
9 .7
9.9

1.24
1.25
1.27

10.3
10.4
10.3

91.5
209.4
238.8
306.7
352.4
287.5
234.6
312.4
241.6
108.3
79.7
140.0

1,501
2,327
2,041
2,175
2,381
1,956
1,939
2,975
2,543
1,899
1,695
3,784

9.07
9.10
8.99
9.02
9.31
9.35
9.60
9.80
10.04
10.29
10.37
10.28

20/11
23/1
21/11
21/9
21/11
20/10
20/0
22/10
20/11
19/7
18/4
19/10

73.7
73.6
74.2
73.8
74.2
75.7
74.1
74.3
74.4
74.6
74.0
74.8

9 .7
9 .8
9 .6
9 .9
10.0
10.1
10.1
10.2
10.3
10.6
10.7
11.0

1.24
1.33
1.31
1.33
1.30
1.24
1.26
1.31
1.29
1.25
1.26
1.33

10.4
10.2
10.1
10.2
10.4
10.7
10.8
10.7
11.1
11.5
11.6
11.3

Loan
amount
(thousands
o f dollars)

MAY 1975 □ CONSUMER CREDIT

A 45

TOTAL CREDIT
(In millions of dollars)
Instalm ent
End o f period

Total

A uto­
mobile
paper

Total

Noninstalment

Other
consumer
goods
paper

Home
improve­
ment
loansi

Personal
loans

Total

Single­
payment
loans

Charge accounts
Service
credit

Retail
outlets

Credit
cards2

1965......................
1966......................
1967......................
1968......................
1969......................

89,883
96,239
100,783
110,770
121,146

70,893
76,245
79,428
87,745
97,105

28,437
30,010
29,796
32,948
35,527

18,483
20,732
22,389
24,626
28,313

3,736
3,841
4,008
4,239
4,613

20,237
21,662
23,235
25,932
28,652

18,990
19,994
21,355
23,025
24,041

7,671
7,972
8,558
9,532
9,747

5,724
5,812
6,041
5,966
5,936

706
874
1,029
1,227
1,437

4,889
5,336
5,727
6,300
6,921

1970.......................
1971.......................
1972.......................
1973.......................
1974......................

127,163
138,394
157,564
180,486
190,121

102,064
111,295
127,332
147,437
156,124

35,184
38,664
44,129
51,130
51,689

31,465
34,353
40,080
47,530
52,009

5,070
5,413
6,201
7,352
8,162

30,345
32,865
36,922
41,425
44,264

25,099
27,099
30,232
33,049
33,997

9,675
10,585
12,256
13,241
12,979

6,163
6,397
7,055
7,783
8,012

1,805
1,953
1,947
2,046
2,122

7,456
8,164
8,974
9,979
10,884

1974— M ar...........
A pr............
M ay..........
Jun e..........
Ju ly ...........
A ug...........
Sept...........
O ct............
N ov...........
D ec...........

177,572
179,495
181,680
183,425
184,805
187,369
187,906
188,023
188,084
190,121

145,768
147,047
148,852
150,615
152,142
154,472
155,139
155,328
155,166
156,124

50,310
50,606
51,076
51,641
52,082
52,772
52,848
52,736
52,325
51,689

46,536
47,017
47,588
48,099
48,592
49,322
49,664
49,986
50,401
52,009

7,430
7,573
7,786
7,930
8,068
8,214
8,252
8,287
8,260
8,162

41,492
41,851
42,402
42,945
43,400
44,164
44,375
44,319
44,180
44,264

31,804
32,448
32,828
32,810
32,663
32,897
32,767
32,695
32,918
33,997

13,188
13,315
13,331
13,311
13,192
13,202
13,131
13,003
12,950
12,979

6,097
6,556
6,948
7,002
6,936
6,983
6,876
7,027
7,174
8,012

1,842
1,878
1,999
2,104
2,204
2,282
2,277
2,156
2,144
2,122

10,677
10,699
10,550
10,393
10,331
10,430
10,483
10,509
10,650
10,884

1975—Jan............
Feb............
M ar...........

187,080
185,381
184,253

153,952
152,712
151,477

50,947
50,884
50,452

51,142
50,136
49,391

8,048
7,966
7,925

43,815
43,726
43,709

33,128
32,669
32,776

12,675
12,560
12,542

7,162
6,468
6,452

2,153
2,074
2,033

11,138
11,567
11,749

1 Holdings o f financial institutions; holdings of retail outlets are ineluded in “ Other consumer goods paper.”
2 Service station and miscellaneous credit-card accounts and homeheating-oil accounts.

N ote.—Consumer credit estimates cover loans to individuals for
household, 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) of Supplement to Banking and M onetary
Statistics , 1965, and B u lle tin s for Dec. 1968 and Oct. 1972.

CONSUMER CREDIT HELD BY COMMERCIAL BANKS
(In millions o f dollars)
Instalment

End o f period

Total

Automobile paper

N onin­
stalment

O ther consumer goods paper

Total
Purchased

Direct

35,652
38,265
40,630
46,310
50,974

28,962
31,319
33,152
37,936
42,421

10,209
11,024
10,972
12,324
13,133

5,659
5,956
6,232
7,102
7,791

1970.......................
1971.......................
1972.......................
1973.......................
1974......................

53,867
60,556
70,640
81,248
84,010

45,398
51,240
59,783
69,495
72,510

12,918
13,837
16,320
19,038
18,582

7,888
9,277
10,776
12,218
11,787

1974— M ar...........
A pr............
M ay..........
June..........
July ...........
A ug...........
Sept...........
Oct............
N ov...........
Dec...........

80,918
81,750
82,527
83,417
84,078
84,982
85,096
84,887
84,360
84,010

69,232
69,944
70,721
71,615
72,384
73,302
73,455
73,372
72,896
72,510

18,775
18,896
19,037
19,220
19,377
19,511
19,389
19,246
18,981
18,582

1975—Jan ............
Feb............
M ar...........

82,986
82,229
81,201

71,776
71,151
70,183

18,230
18,104
17,754




Credit
cards

O ther

4,166
4,681
5,469
1,307
2,639
4,423
5,786
7,223
7,645

11,985
12,039
12,100
12,169
12,250
12,344
12,314
12,195
12,031
11,787
11,581
11,497
11,377

Personal loans
Other

Check
credit
^ ..

-------- -—>

'---- --------

1965.......................
1966.......................
1967.......................
1968.......................
1969.......................

See N ote to table above.

Mobile
homes

Home
improve­
ment
loans

Single­
payment
loans

..... ✓

5,387
6,082

2,571
2,647
2,731
2,858
2,996

798
1,081

8,160
8,699

6,690
6,946
7,478
8,374
8,553

3,792
4,419
5,288
6,649
8,242

7,113
4,501
5,122
6,054
6,414

3,071
3,236
3,544
3,982
4,458

1,336
1,497
1,789
2,144
2,424

9,280
10,050
11,158
12,187
12,958

8,469
9,316
10,857
11,753
11,500

7,333
7,399
7,491
7,564
7,623
7,681
7,706
7,709
7,700
7,645

6,667
6,761
6,887
7,076
7,222
7,491
7,638
7,749
7,846
8,242

6,082
6,208
6,323
6,420
6,484
6,541
6,527
6,530
6,469
6,414

3,958
4,028
4,135
4,224
4,316
4,409
4,445
4,480
4,490
4,458

2,169
2,180
2,199
2,230
2,266
2,312
2,348
2,376
2,362
2,424

12,263
12,433
12,549
12,712
12,846
13,013
13,088
13,087
13,017
12,958

11,686
11,806
11,806
11,802
11,694
11,680
11,641
11,515
11,464
11,500

7,587
7,522
7,459

8,325
8,149
7,890

6,323
6,272
6,272

4,399
4,359
4,318

2,448
2,447
2,403

12,883
12,801
12,710

11,210
11,078
11,018

6,357
7,011
7,748

A 46

CONSUMER CREDIT □ MAY 1975
INSTALMENT CREDIT HELD BY NONBANK LENDERS
(In millions of dollars)
Finance companies

End o f period
Total

Other consumer
goods paper

A uto­
mobile
paper

Mobile
homes

Other financial lenders

Per­
sonal
loans

Total

Credit
unions

232
214
192
166
174

10,058
10,315
10,688
11,481
12,485

8,289
9,315
10,216
11,717
13,722

7,324
8,255
9,003
10,300
12,028

965
1,060
1,213
1,417
1,694

Home
improve­
ment
loans

Other

4,343
4,925
5,069
5,424
5 ,' 775

Retail outlets

Mis­
cellaneous
lenders1

A uto­
mobile
dealers

O ther
retail
outlets

9,791
10,815
11,484
12,018
13,116

315
277
287
281
250

9,476
10,538
11,197
11,737
12,866

Total

1965.........................
1966.........................
1967.........................
1968.........................
1969.........................

23,851
24,796
24,576
26,074
27,846

9,218
9,342
8,627
9,003
9,412

1970.........................
1971.........................
1972.........................
1973.........................
1974.........................

27,678
28,883
32,088
37,243
38,925

9,044
9,577
10,174
11,927
12,435

2,464
2,561
2,916
3,378
3,570

3,237
3,052
3,589
4,434
4,751

199
247
497
917
993

12,734
13,446
14,912
16,587
17,176

15,088
17,021
19,511
22,567
25,216

12,986
14,770
16,913
19,609
22,116

2,102
2,251
2,598
2,958
3,100

13,900
14,151
15,950
18,132
19,473

218
226
261
299
286

13,682
13,925
15,689
17,833
19,187

1974— M ar..............
A pr...............
M ay .............
J u n e .............
July..............
Aug..............
Sept..............
O ct...............
N ov..............
D ec..............

37,005
37,291
37,751
38,159
38,479
38,943
38,921
38,901
38,803
38,925

11,624
11,684
11,810
11,957
12,040
12,267
12,345
12,458
12,462
12,435

3,324
3,364
3,413
3,449
3,505
3,539
3,573
3,597
3,603
3,570

4,497
4,547
4,583
4,626
4,664
4,680
4,662
4,658
4,611
4,751

1,018
1,057
1,097
1,114
1,118
1,097
1,073
1,054
1,021
993

16,542
16,639
16,848
17,013
17,152
17,360
17,268
17,134
17,106
17,176

22,562
22,753
23,203
23,630
23,968
24,677
25,085
25,204
25,195
25,216

19,550
19,704
20,053
20,501
20,825
21,402
21,792
21,893
21,975
22,116

3,012
3,049
3,150
3,129
3,143
3,275
3,293
3,311
3,220
3,100

16,969
17,059
17,177
17,211
17,311
17,550
17,678
17,851
18,272
19,473

292
293
294
296
297
299
298
296
292
286

16,677
16,766
16,883
16,915
17,014
17,251
17,380
17,555
17,980
19,187

1975—Jan ...............
Feb...............
M ar..............

38,340
38,194
37,910

12,315
12,406
12,371

3,559
3,539
3,519

4,642
4,580
4,427

967
923
903

16,857
16,746
16,690

25,032
25,213
25,506

21,966
22,089
22,227

3,066
3,124
3,279

18,804
18,154
17,878

282
280
276

18,522
17,874
17,602

i Savings and loan associations and mutual savings banks.

See also N ote to table at top o f preceding page.

FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT
(Per cent per annum)
Commercial banks
Other
consumer
goods
(24 mos.)

Personal
loans
(12 mos.)

10.67
10.64
10.84
10.57
10.84
10.95
11.06
10.98
11.19
11.07

12.48
12.50
12.48
12.57
12.51
12.66
12.67
12.80
12.75
12.86

12.71
12.74
12.78
12.78
12.75
12.84
12.96
13.02
12.94
13.12

10.55
10.53
10.50
10.51
10.63
10.81
10.96
11.15
11.31
11.53
11.57
11.62

11.09
11.25
10.92
11.07
10.96
11.21
11.46
11.71
11.72
11.94
11.87
11.71

12.78
12.82
12.82
12.81
12.88
13.01
13.14
13.10
13.20
13.28
13.16
13.27

*•11.61
11.51
11.46

11.66
12.14
11.66

13.28
13.20
13.07

New
autom o­
biles
(36 mos.)

Mobile
homes
(84 mos.)

1973—Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

10.04
10.04
10.05
10.08
10.10
10.25
10.44
10.53
10.49
10.49

1974— Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.
Nov.
Dec.
1975—Jan..
Feb.
Mar.

M onth

Finance companies
Automobiles
Mobile
homes

New

Used

17.19
17.19
17.22
17.24
17.21
17.22
17.23
17.23
17.23
17.24

11.85
11.88
11.91
11.94
12.02
12.13
12.28
12.34
12.40
12.42

16.32
16.44
16.52
16.61
16.75
16.86
16.98
17.11
17.21
17.31

12.96
13.02
13.04
13.00
13.10
13.20
13.42
13.45
13.41
13.60
13.47
13.60

17.25
17.24
17.23
17.25
17.25
17.23
17.20
17.21
17.15
17.17
17.16
17.21

12.39
12.33
12.29
12.28
12.36
12.50
12.58
12.67
12.84
12.97
13.06
13.10

16.56
16.62
16.69
16.76
16.86
17.06
17.18
17.32
17.61
17.78
17.88
17.89

13.60
'1 3 .4 4
13.40

*■17.12
17.24
17.15

13.08
13.07
13.07

17.27
17.39
17.52

N ote.—R ates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) o f the Board o f Governors.
Commercial bank rates are “ most common” rates for direct loans with




Creditcard
plans

O ther
consumer
goods

Personal
loans

20.79

12.54

18.92

12.73

18.88

20.76

12.77

18.93

20.55

12.90

18.69

20.52

13.12

18.77

20.65
20.68

13.24

18.90

13.15

18.69

20.57

13.07

18.90

20.57

13.21

19.24

20.78

13.42

19.30

20.93

13.60

19.49

21.16

13.60

19.58

21.24

specified m aturities; finance company rates are weighted averages for
purchased contracts (except personal loans). F or back figures and description o f the data, see B ulletin for Sept. 1973.

MAY 1975 □ C ON SUM ER C R ED IT

A 47

INSTALMENT CREDIT EXTENDED AND REPAID
(In millions o f dollars)
Type
Period

Total

A utomobile
paper

Other
consumer
goods paper

H older

Home
improve­
ment loans

Personal
loans

Commercial
banks

Finance
companies

Other
financial
lenders

Retail
outlets

Extensions
1
1967.............................
1968.............................
1969.............................

87,171
99,984
109,146

26,320
31,083
32,553

29,504
33,507
38,332

2,369
2,534
2,831

28,978
32,860
35,430

31,382
37,395
40,955

26,461
30,261
32,753

11,238
13,206
15,198

18,090
19,122
20,240

1970.............................
1971.............................
1972.............................
1973.............................
1974.............................

112,158
124,281
142,951
165,083
166,478

29,794
34,873
40,194
46,453
42,756

43,873
47,821
55,599
66,859
71,077

2,963
3,244
4,006
4,728
4,650

35,528
38,343
43,152
47,043
47,995

42,960
51,237
59,339
69,726
69,554

31,952
32,935
38,464
43,221
41,809

15,720
17,966
20,607
23,414
24,510

21,526
22,143
24,541
28,722
30,605

1 9 7 4 -M a r..................
A pr..................
M ay.................
June.................
Ju ly .................
A u g .................
Sept.................
O ct...................
N ov........... ......
D ec..................

13,823
14,179
14,669
14,387
14,635
14,394
14,089
13,626
12,609
12,702

3,484
3,545
3,769
3,731
3,812
3,887
3,835
3,369
3,062
3,205

5,933
6,034
6,156
6,043
6,164
5,993
5,935
5,948
5,700
5,798

424
447
468
425
416
388
302
348
321
294

3,982
4,153
4,276
4,188
4,243
4,126
4,017
3,961
3,526
3,405

5,710
5,838
6,023
6,076
6,129
6,034
6,050
5,600
5,390
5,012

3,497
3,671
3,832
3,729
3,685
3,476
3,408
3,229
2,823
3,240

1,976
2,054
2,140
2,040
2,201
2,290
2,079
2,160
1,863
1,901

2,640
2,616
2,674
2,542
2,620
2,594
2,552
2,637
2,533
2,549

1975—Jan ...................
Feb..................
M ar..................

12,859
13,465
12,797

3,348
3,856
3,419

5,430
5,561
5,535

289
302
339

3,792
3,746
3,504

5,368
5,649
5,357

3,068
3,195
2,872

2,048
2,104
2,044

2,375
2,517
2,524

Repayments
1967.............................
1968..............................
1969..............................

83,988
91,667
99,786

26,534
27,931
29,974

27,847
31,270
34,645

2,202
2,303
2,457

27,405
30,163
32,710

29,549
32,611
36,470

26,681
28,763
30,981

10,337
11,705
13,193

17,421
18,588
19,142

1970.............................
1971.............................
1972.............................
1973..............................
1974.............................

107,199
115,050
126,914
144,978
157,791

30,137
31,393
34,729
39,452
42,197

40,721
44,933
49,872
59,409
66,598

2,506
2,901
3,218
3,577
3,840

33,835
35,823
39,095
42,540
45,156

40,398
45,395
50,796
60,014
66,539

31,705
31,730
35,259
38,066
40,127

14,354
16,033
18,117
20,358
21,861

20,742
21,892
22,742
26,540
29,264

1974—M ar..................
A pr..................
M ay.................
June.................
J u ly .................
A u g.................
Sept.................
O ct...................
N ov..................
D ec..................

13,206
13,026
13,407
13,301
13,310
12,882
13,412
13,224
13,009
13,516

3,544
3,498
3,601
3,577
3,563
3,443
3,604
3,470
3,423
3,668

5,596
5,483
5,607
5,615
5,610
5,444
5,700
5,499
5,561
6,037

308
312
315
335
320
309
279
321
325
341

3,758
3,733
3,884
3,774
3,817
3,686
3,829
3,934
3,700
3,470

5,479
5,470
5,573
5,564
5,541
5,463
5,808
5,542
5,671
5,803

3,452
3,375
3,528
3,405
3,513
3,166
3,371
3,250
2,981
3,308

1,827
1,784
1,855
1,835
1,819
1,851
1,723
1,962
1,860
1,822

2,448
2,397
2,451
2,497
2,437
2,402
2,510
2,470
2,497
2,583

1975—Jan...................
Feb..................
M ar..................

13,260
13,228
13,234

3,534
3,605
3,772

5,549
5,632
5,708

336
350
357

3,841
3,641
3,397

5,669
5,747
5,924

3,331
3,134
2,971

1,827
1,824
1,782

2,433
2,523
2,557

N et change
1967.............................
1968.............................
1969..............................

3,183
8,317
9,360

-2 1 4
3,152
2,579

1,657
2,237
3,687

167
231
374

1,573
2,697
2,720

1,833
4,784
4,485

-2 2 0
1,498
1,772

901
1,501
2,005

669
534
1,098

1970.............................
1971.............................
1972.............................
1973.............................
1974.............................

4,959
9,231
16,037
20,105
8,687

-3 4 3
3,480
5,465
7,001
559

3,152
2,888
5,727
7,450
4,479

457
343
788
1,151
810

1,693
2,520
4,057
4,503
2,839

2,977
5,842
8,543
9,712
3,015

-1 6 8
1,205
3,205
5,155
1,682

1,366
1,933
2,490
3,056
2,649

784
251
1,799
2,182
1,341

1974—M ar..................
A pr..................
M ay.................
Jun e.................
Ju ly .................
A ug.................
Oct...................
Nov..................
Dec..................

617
1,153
1,262
1,086
1,325
1,512
677
402
-4 0 0
-8 1 4

-6 0
47
168
154
249
444
231
-1 0 1
-3 6 1
-4 6 3

337
551
549
428
554
549
235
449
139
-2 3 9

116
135
153
90
96
79
23
27
-4
-4 7

224
420
392
414
426
440
188
27
-1 7 4
-6 5

231
368
450
512
588
571
242
58
-2 8 1
-7 9 1

45
296
304
324
172
310
37
-2 1
-1 5 8
-6 8

149
270
285
205
382
439
356
198
3
79

192
219
223
45
183
192
42
167
36
-3 4

1975—Jan ...................
Feb..................
M ar.................

-4 0 1
237
-4 3 7

-1 8 6
251
-3 5 3

-1 1 9
-7 1
-1 7 3

-4 7
-4 8
-1 8

-4 9
105
107

-3 0 1
-9 8
-5 6 7

-2 6 3
61
-9 9

221
280
262

-5 8
-6
-3 3

N ote.—M onthly estimates are seasonally adjusted and include adjust­
ments for differences in trading days. Annual totals are based on data
n o t seasonally adjusted.
Estimates are based on accounting records and often include finance
charges. Renewals and refinancing o f loans, purchases and sales o f in­




stalment paper, and certain other transactions may increase the amount
o f extensions and repayments without affecting the am ount outstanding.
F o r 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.

A 48

INDUSTRIAL PRODUCTION: S.A. □ MAY 1975
MARKET GROUPINGS
(1967 = 100)

G rouping

Total index......................................
Products, to ta l.....................................
Final produ cts ..................................
Consumer goods.........................
Equipm ent...................................
Interm ediate products...................
M aterials..............................................

1967 1974
pro­
por­ aver­
age
tion

Apr.

M ay

June

100.0 124.8

124.9

125.7

125.8 125.5

1974
July

Aug.

1975
Sept.

Oct.

Nov.

125.2 125.6 124.8 121.7

Dec.

Jan.

117.4 113.7

Feb.
111.2

M ar?. Apr.*
109.8

109.4

62.21 123.1 122.7 123.8 124.0 124.0 123.5 123.6 122.9 121.4 118.7 115.4 113.6 112.6 112.8
1 2 0 .8

4 8 .9 5

1 2 1 .7

28.53
20.42
13.26
37.79

128.8
111.7
128.3
127.4

128.5
110.1
129.4
128.7

7 .8 6

1 2 7 .9

1 3 0 .9

1 2 2 .4

12 2 .6

122.

1 22.1

129.7
112.2
129.2
129.1

130.2
112.0
128.9
128.8

1 2 2 .6

130.0
113.0
127.8
128.0

129.8
111.4
128.6
128.5

128.8
113.8
127.6
129.3

128.2
114.0
125.3
128.1

1 3 2 .8

1 3 3 .5

1 3 1 .6

131.

1 2 9 .1

1 2 6 .5

1 2 2 .3

1 2 0 .9

1 1 8 .2

1 1 4 .9

113.1

1 1 2 .4

126.3
113.2
123.0
122.1

123.4
110.7
120.5
114.8

120.1
107.8
117.6
110.5

118.8
105.1
116.0
107.4

118.4
104.0
113.9
105.4

119.6
102.9
113.8
103.9

1 1 9 .7

1 1 0 .1

1 0 4 .0

1 0 1 .4

1 0 3 .8

87.5
69.8
121.5

80.3 78.
62.6 58.9
114.4 117.2

88.4
73.1
117.8

1 0 6 .4

123.0 117.5 114.3
102.5 94.4 89.1
119.8 108.0 103.1

112.5
85.4
99.6

1 1 2 .5

Consumer goods
Durable consumer g o o d s ....................

A utomotive products.....................
A utos............................................
A uto parts and allied g o o d s...
H om e g oods........................................ .
Appliances, TV, and rad io s.........
Appliances and A /C ...............
TV and home audio .............. .
Carpeting and fu rn itu re........... ; . ,
Misc. home g o o d s..........................,
Nondurable consumer g o o d s ..............

C lo th in g ... *....................................
Consumer staples............................,
Consumer foods and to b acco ..
Nonfood staples......................... .
Consumer chemical products,
Consumer paper p ro d u c ts...,
Consumer fuel and lighting..
Residential utilities..............

2.84 110.0 113.8 116.1
1.87 94.9 97.7 100.3
.97 139.0 144.7 146.5
138.0 140.6 142.3
132.0 135.2 137.7
148.8 148.6 152.6

117.3 113.5 114.9 111.6 114.7 102.1
99.6 101.5 103.1
99.6 108.4 91.0
151.3 136.9 137.6 134.5 126.9 123.6
142.7 141.8 141.2 139.0 133.2 129.7
141.2 139.3 139.1 133.2 120.9 115.3
155.3 151.7 156.2 150.2 139.5 131.9

5.02
1.41
.92
.49
1.08
2.53

153.5
134.7

158.2 157.4 157.2 155.3
136.0 138.3 137.4 137.3

2 0 .6 7

12 9 .2

1 2 7.6

7.98
2.64
1.91
3.43
2.25

144.0
158.4
125.2
143.8
153.7

1 2 .7 4

1 2 9 .4

12 8 .5

12 9 .0

1 2 9 .4

143.1
159.7
119.4
143.7
151.6

144.3
157.5
124.7
145.1
153.2

144.4
156.
123.9
146.0
155.3

1 2 7 .9

13 0 .2

13 0 .2

127.6
133.5
122.1
136.6

129.6
135.0
124.1
138.4

129.0
137.4
121.9
139.0

130.3
136.2
124.9
138.4

130.3 128.2 130.9 131.5
141.1 140.4 141.5 142.7
109.6 106.7 110.2 110.4
138.7 131.2 140.2 140.6

157.1 155.4 151.8 144.7 143.8
135.8 135.3 132.2 131.4 125.5

113.2

135.1 134.7 133.0
123.0 119.8 119.0 119.1

1 2 9 .1

1 2 8 .7

1 2 8 .9

1 2 8 .8

144.7
154.6
124.4
148.4
157.8

146.5
159.0
129.5
146.2
155.4

145.7
157.7
130.9
144.6
156.2

146.1
159.8
128.5
145.4
155.5

145.3 146.2 146.4 143.4
155.2 159.1 160.6 155.0
127.4 126.7 122.0 121.9
147.9 147.3 149.2 146.2
159.3 159.0 159.9 157.8

1 3 1 .3

1 2 8 .8

1 3 2 .3

1 3 2 .0

1 3 1 .0

1 2 8 .4

94.3
8 2.4
117.3

1 2 6 .3

1 2 5 .4

1 2 4 .0

1 2 4 .6

4.32 109.0 106.2 107.0 108.9 108.6 106.4 106.0 104.5 103.1 102.0 9 5.0 95.1
16.34 134.5 133.2 134.2 134.3 134.9 135.1 134.8 135.4 135.6 135.5 134.5 133.4 132! 3 132.9
8.37 125.4 123.9 124.7 124.7 125.5 124.4 124.4 125.2 126.2 125.3 123.3 124.0 122.0 123.4
143.4 143.0
155.4
121.7
146.2

Equipment
Business equipm ent......................... .....

Industrial equipm ent................. I ..
Building and mining equip........
M anufacturing equipm ent
Power equipm ent.........................

6.77 128.7
1.45 136.0
3.85 121.7
1.47 139.9

Commercial, transit, farm eq u ip ..
Commercial equipm ent..............
Transit equipm ent.......................
Farm equipm ent......................... .

5.97
3.30
2.00
.67

Defense and space equipm ent ........... .

M ilitary products.............................

7 .6 8

8 2 .3

8 0 .6

8 2 .2

5.15

81.2

79.9

81.2

8 1 .7

79.7

129.6
136.5
123.1
139.6

132.0
139.8
124.4
144.2

132.5
143.5
111.4
141.4

127.6
134.0
109.3
150.5

8 2 .6

8 2 .7

81.4

81.5

127 .1

1 2 2 .3

130.9
141.2
122.5
142.8

129.3 126.7 122.9
140.1 137.4 138.4
119.4 116.5 111.
144.5 142.6 136.6

132.8
143.3
111.8
144.1

133.2
144.1
111.2
145.4

132.9
143.1
109.8
151.9

8 3 .1

8 4 .1

8 3 .7

8 3 .4

81.8

81.3

82.3

82.5

1 1 9 .3

1 1 7 .5

120.6
137.1
110.0
131.4

1 1 5 .9

118.9
136.9
107.9
130.2

117.4
135.1
105.7
130.0

127.6 121.6 117.9
139.3 135.2 130.2
102.9 91.
91.5
143.7 143.8 135.8
8 3 .8

8 1 .9

116.0 114.1
128.4 126.0
89.5
88.0
133.5
8 1 .6
19 A

8 1 .4

81.5

79.9

115.7
119.2

113.1
118.3

111.6 111.4
115.8

1 1 0 .3

10 7 .4

1 0 4 .9

1 0 2 .4

105.1

1 0 3 .3

1 0 3 .0

105.4 103.2
124.2
119

103.9

4 0 7 .8

4 1 0 .1

79.3

Interm ediate products
Construction products.......................
Misc. intermediate products.............,

5.93 129.6
7.34 127.3

130.
130.8 129.6 128.2 128.0 127.4 123.5 121 .3 118.3
128.2 127.9 128.4 127.5 129.2 127.8 126.8 124.2 122.5

M aterials
20.91

1 27.3

C onsumer durable p a rts ...............
Equipment p arts.............................
D urable materials nec...................

4.75
5.41
10.75

112.1 112.5
123.8 120.1
135.9 137.5

N ondurable goods m aterials ..............

1 3 .9 9

1 28.5

D urable goods m aterials .....................

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 7.3

1 3 1 .9

1 2 8 .3

1 27.5

125.

1 3 0 .9

131 .3

131.1

1 28.1

1 2 9 .2

1 2 9 .3

1 2 3 .5

1 2 6 .8

122.1

1 1 4 .2

91.7
114.7 114.1 117.2 117.5 117.2 115.2 104.1
122.5 122.1 120.6 125.8 125.0 124.0 122.2 118.3
137.2 136.2 132.3 133.9 136.6 138.3 132.7 122.9
1 3 0 .4

1 2 9 .3

1 1 6 .2

83.7 82.0 82.4 83.1
116.9 112.6 109.4 107.6
116.2 112.6 108.4
1H
1 0 9 .2

139.8 143.9 143.3 143.6 143.6 143.2 142.2 138.1 131.1 122.9 112.9 108.1 105.2 105.0
110.6 112.7 111.4 111.9 111.3 110.0 108.9 108.9 107.8 105.7 103.3 100.9 101.3 101.0
122.6 123.2 124.7 126.3 128.0 123.5 129.0 126.4 112.7 113.0 117.
118.6 117.
117.7

Supplementary groups
H om e goods and clothing................
C ontainers............................................

9.34 124.6 124.6 126.0 127.1 126.4 125.0 123.8
1.82 139.4 147.0 141.5 141.6 142.1 140.4 136.7

120.0 117.4 113.2 107.1
131.5 127.6 120.3 126.1

Gross value of products
in market structure
(In billions of 1963 dollars)
Products, total ................................

Final p roducts..........................
Consumer g oods..................
Equipm ent.............................
Intermediate products.............
For N ote see opposite page.




286.3

221.4
156.3
65.3
64.9

4 4 5 .4

4 4 9 .5

342.9
233.8
109.0
102.5

347.2
235.9
111.2
102.2

4 4 9 .7 448.1

347.7
236.6
111.2
102.0

346.6
235.0
111.6
101.2

4 4 6 .9

345.0
235.1
109.9
102.1

4 4 7 .1

4 4 5 .7

4 3 9 .0 4 2 6 .7

4 1 6 .4

4 1 0 .4

346.1 346.5 341.3 331.0 322.3 317.5 316.6 319.2
233.1 233.7 228.9 222.3 216.4 213.7 214.3 218.0
112.8 112.7 112.4 108.8 105.9 103.7 102.3 101.3
101.0 99.4 97.4 95.8 94.3 92.9 91.2 90.9

MAY 1975 o IN D U STR IA L P R O D U C TIO N : S.A.

A 49

INDUSTRY GROUPINGS
(1967 = 100)

Grouping

Manufacturing....................................
D urab le..........................................
N ondurable....................................
M ining and utilities.........................
M ining............................................
U tilities...........................................

1967
p ro­
po r­
tion

1974
aver­
age

8 8 .5 5

12 4 .4

1974

1975

Apr.

M ay

June

July

Aug.

Sept.

Oct.

N ov.

Dec.

Jan.

Feb.

M ar.^ Apr.®

12 4 .8

1 2 5 .7

12 5 .6

1 2 5 .2

1 2 5 .2

1 2 5 .5

1 2 4 .6

11 6 .1

1 1 1 .7

120.7
130.4
127.8
111.3
148.7

121.6
130.8
128.9
110.2
152.4

121.6
130.4
127.4
107.3
152.6

122.1
130.5
128.7
109.2
153.1

121.6
128.9
128.5
110.5
151.2

108.2
117.0
127.0
107.0
153.0

1 0 7 .8

1 0 7 .7

117.9
125.4
125.9
105.0
152.3

112.2
121.9
125.7
104.4
152.6

1 0 9 .3

120.7
129.7
127.3
109.3
149.9

122.1 122.1
130.9 130.8
128.0 128.1
111.0 110.2
149.2 150.6

1 2 0 .9

52.33
36.22
11.45
6.37
5.08

104.8
115.8
126
107.0
150.5

103.0
114.8
125.8
106.4
150.2

102.8
114.8
125.5
105.9
150.4

Primary and fabricated m etals. . . .
Primary m etals....................................
Iron and steel, subtotal...........
Fabricated metal p roducts.........

1 2 .5 5

12 7 .5

1 2 7 .5

128.1

1 2 8 .4 1 2 6 .9

1 2 6 .5

1 2 7 .2

1 2 7 .6

1 2 4 .4

1 1 6 .0

1 1 2 .4

1 0 7 .3

1 0 4 .2

1 0 2 .0

Machinery and allied goods.............
M achinery......................................
N onelectrical m achinery.........
Electrical m achinery................
Transportation equipm ent.........
M otor vehicles and p a rts . . . .
Aerospace and misc. trans. e q .. .
Instrum ents..........................................
Ordnance, private and G ovt............

3 2 .4 4

1 1 6 .3

1 1 5 .5

1 1 7 .5

17.39
9.17
8.22
9.29
4.56
4.73
2.07
3.69

128.1 128.2
133.8 130.7
125.2 125.3
96.9 97.8
113.2 116.4
80.0
81.1
143.9 143
84.3
86.1

129.7
131.9
127.4
100.6
119.6
82.4
146.1
86.1

Lumber, clay, and glass.........................
Lum ber and p ro d u cts........................
Clay, glass, and stone p ro d u c ts .. . .

4 .4 4

1 2 3 .6

1 2 8 .9

12 8 .0

1.65
2.79

120.1
125.7

126
130.3

1 2 6 .4 125.5 1 2 3 .4 1 2 0 .6 1 1 7 .8 1 1 3 .7 1 1 1 .0 1 0 9 .6
125.6 121.6 121.5 116.6 109.3 105.2 101.3 9 9 .9
126.
116.9 115.3
128.7 126.9 127.7 124.6 123.0 122.9 118.

Furniture and miscellaneous..................
Furniture and fixtures.......................
Miscellaneous m anufactures............

2 .9 0

13 6.1

136.

1 3 8 .9

D urable manufactures
6.61
4.23
5.94

124.1 124.0 124.6 124.7 123.2 121.9 123.0 126.0 121.0 108.6 107.2 102.0 97.9
119.9 116.4 118.0 118.5 119.9 120.7 119.1 123.9 117.7 107.9 110.6 105.0 102.1
131.4 131.3 131.9 132.5 131.1 131.5 132.0 129.6 128.2 124.1 118.2 113.2 111.2
11 7 .7

130.4
131.7
129.0
99.4
116.9
82.6
147.5
86.4

1 1 7 .3

117.

129.9
131.1
128.4
98.7
117.3
80.9
146.7
87.2

130.5
136.4
123.7
99.9
117
82.6
146.7
87.1

1 1 8 .8

132.5
137.8
126.4
100.4
118.6
82.8
144.9
87.5

1 0 9 .6

1 1 8 .4

1 1 4 .9

131.1
137.4
124.0
102.1
123.0
81.9
142.0
87.2

128.9 124.8
135.1 132.5
121.7 116.3
83.6
93.7
86.4
107.1
80.9
80.9
142.3 139.5
86.6
86.6

1 2 8 .4

1 0 5 .4

1 0 2 .5

101 .1

119.6 115.9 113.3
126.7 123.1 120.1
111.5 107.9 105.5
78.9 77.1
77.6
78.2 77.6
78.4
79.5
76.6 72.0
139.1 134.7 132.8
86.2 85.9
85.4
1 0 5 .5
9 9 .4

1 0 3 .8

109.2

97.5
107.6

1 2 0 .0

1 1 8 .8

1 1 7 .3

1 3 8.5

1 3 9 .7

140 .1

1 3 8 .8

1 3 6 .7

1 2 9 .0

1.38 126.9 128.8 129.7
1.52 144.4 144.1 147.3

131.1 131.6 130.5 129.4 125.5 120.5 120.4 110.6 109.6 108.4
145.3 147.1 148.8 147.5 146.9 136.9 135.7 128.9 127.0 125.5

Textiles, apparel, and leather..............
Textile mill pro d u cts.........................
Apparel products................................
Leather and p ro d u cts........................

6 .9 0

108 .5

108.1

1 0 7 .4

1 0 6 .5

105 .1

1 0 1 .9

Paper and printing..................................
Paper and p ro d u cts............................
Printing and publishing.....................

7 .9 2

94.0
97.5
111.3
1 0 1 .7

112.3
118.5
105.4
81 .9
86.3
73.0
133.0
85.0
105 .1

1 1 7 .9

Nondurable manufactures
10 8 .9

10 9 .3

10 9 .8

2.69 122.7 123.4 124.0 125.1 125.3 124.3 121.9
3.33 105.4 105.
105.0 102.1 102.7 102.5 102.5
79.5 83.9 81.6 75.7 73.4 74.2
77.3
12 1 .0

1 2 1 .2 1 2 1.3

3.18 134.0 135.4 135.1
4.7 4 112.3 111.7 111.9

Chemicals, petroleum, and rubber. . . .
Chemicals and p ro d u cts...................
Petroleum p ro d u cts............................
Rubber and plastics products..........

1 1 .9 2

Foods and tobacco...................................
F oods....................................................
Tobacco products...............................

9 .4 8

1 5 1 .7

1 5 3.5

15 3 .0

1 2 2.3

1 2 2 .4

1 2 1 .0

9 6 .3

8 8 .9

119.1 112.8 102.9
98.0
102.8 100.1
70.6 74.7 69.7

95.6
9 4.0
66.1

8 9 .9
9 4 .0
9 0 .9
7 3 .9

1 1 5 .7

1 0 8 .2

1 0 6 .6

1 0 5 .7

109.5
104.7

108.3
104.0

1 3 2 .5

1 3 1 .3

122. 7 1 2 0 .8

1 1 2 .3

136.7 136.1 132.2 135.3 133.9 124.3 116.1 114.3
112.7 113.4 113.4 114.4 111.9 110.0 109.8 104.1

15 3 .7

1 5 3 .9

1 5 4 .4

1 5 4 .7

1 5 2 .4

1 4 6 .5

1 4 1 .6

1 3 6 .5

7.86 154.3 156.2 156.2 156.9 155.8 156.7 158.3 155.9 148.3 143.1 139.0 134.5
1.80 124.0 126.9 126.1 126.2 127.9 125.8 121.9 125.4 127.0 125.8 126.8 124.1
2.26 164.4 165.5 163.7 164.5 167.2 169.0 168.6 161.8 155.7 148.9 135.4 131.8
124.

124.3

1 2 6 .5

12 5 .3

1 2 4 .8

1 2 4 .8

1 2 4 .3

1 2 3 .7

123.

1 2 3 .5

8.81 126.2 125.9 127.8 127.1 126.6 126.3 125.7 124.8 125.4 125.7
.67 106.4 104.6 109.4 102.9 101.5 104.2 106.0 110.3 103.8 96.2

1 2 0 .0

1 2 1 .6

95 .0

9 1 .2

73.3
1 0 3 .9

ioi'.i
13 1 .1

133.5 132.9
122.4 122.0
130.9
1 2 0 .6

121.2 122.7 121.5
104.7 108.4

1 2 0 .7

121.6

Mining
M etal, stone, and earth minerals..........
M etal m ining.......................................
Stone and earth m inerals.................
Coal, oil, and g a s....................................
C o a l.......................................................
Oil and gas extraction.......................

1 .2 6

.51
.75
5 .1 1

1 2 0 .7

1 1 7 .9

1 1 2 .4 1 1 3 .5

1 0 9 .9

129.2 127.4 128.1 121.1 120.3
109.1 110.7 111.0 106.4 108.8

110.0 130.5 141.4 136.8 134.7 133.8 131.1
109.9 105.0 107.5 109.8 106.4 109.0 106.5

10 7 .3

1 0 9 .7 1 0 9 .4

1 0 6 .7 1 0 7 .7

11 7 .2

.69 105.1
4.42 107.7

11 7 .5

10 9 .8

1 1 7 .9

1 0 9 .2

1 1 5 .4

110.3 112.4 118.3 115.6 99.4 112.1
109.7 108.8 108.4 108.4 107.9 107.1

1 2 1 .3

1 0 7 .8

1 0 1 .2

101 .1

119 .1

1 0 3 .9

110.3 67.6 85.3 111.3
107.4 106.4 103.6 102.9

1 1 6 .5

1 0 4 .7

116.5
102.9

113.

125.2
106.1

1 1 0 .7

1 0 4 .6

1 0 4 .8

115.1
103.1

112.0
103.7

Utilities
Electric......................................................
G as.............................................................

3.91
1.17

159.5
117.9

158.3 159.0 160.3 162.7

N ote.—D ata for the complete year o f 1972 are available in a pam phlet
Industrial Production Indexes 1972 from Publications Services, Division

o f Administrative Services, Board o f Governors o f the Federal Reserve
System, W ashington, D .C. 20551.




162.8 162.4 161.2 162.9 163.0 162.5

160.6

Published groupings include series and subtotals not shown separately. Figures for individual series and subtotals are published in the
monthly Business Indexes release.

A 50

BUSINESS ACTIVITY; CONSTRUCTION □ MAY 1975
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Industrial production
M arket

Period

Products

Total
Total

C a­
pacity
utiliza­
tion
in mfg.
(1967
M anu­ output
factur­ = 100)
ing
In­
dustry

Final
Inter­
Con­ Equip­ mediate
Total sumer ment
goods

M ate­
rials

M anu­
facturing2
N onag­
Con­
ricul­
struc­
tural
tion
em­
con­
ploy­
tracts ment—
Total i

Prices4

Em ­
ploy­
ment

Pay­
rolls

Total
retail
sales3

Con­
sumer

W hole­
sale
com ­
modity

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
94 .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
85.5

86.1
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
92.9

94.9
94.5
94.8
94.5
94.7

1965.......................
1966.......................
1967.......................
1968.......................
1969.......................

86.8 93.0 78.7 93.0
89.2 88.1
97.9 96.8 96.1 98.6 93.0 9 9.2
100.0 100.0 100.0 100.0 100.0 100.0
105.7 105.8 105.8 106.6 104.7 105.7
110.7 109.7 109.0 111.1 106.1 112.0

91.0
99.8
100.0
105.7
112.4

89.1
98.3
100.0
105.7
110.5

89.0 93.2
91.9
94.8
87.9 100.0
87.7 113.2
86.5 123.7

92.3
97.1
100.0
103.2
106.9

93.9
99.9
100.0
101.4
103.2

88.1
97.8
100.0
108.3
116.6

91
97
100
109
114

94.5
97.2
100.0
104.2
109.8

96.6
99.8
100.0
102.5
106.5

1970.......................
1971.......................

106.0
106.4
113.8
123.4
123.1

104.5 110.3 96.3 111.7
104.7 115.7 89.4 112.6
111.9 123.6 95.5 121.1
121.3 131.7 106.7 131.1
121.7 128.8 111.7 128.3

107.7
107.4
117.4
129.3
127.4

105.2
105.2
114.0
125.2
124.4

78.3 123.1
75.0 145.4
78.6 165.3
83.0 181.3
168.6

107.7
108.1
111.9
116.7
118.9

98.1
94.2
97.6
103.1
102.1

114.1
116.7
131.5
148.9
156.6

120
122
142

1973
1974

106.6
106.8
115.2
125.6
124.8

116.3
121.2
125.3
133.1
147.7

110.4
113.9
119.8
134.7
160.1

1974— M ar...........
A pr............
M ay..........
June..........
Ju ly ...........
Aug...........
Sept...........
O ct............
N ov...........
D ec...........

124.7
124.9
125.7
125.8
125.5
125.2
125.6
124.8
121.7
117.3

122.6
122.7
123.8
124.0
124.0
123.5
123.6
122.9
121.4
118.7

121.0
120.8
122.4
122.6
122.8
122.1
122.6
122.3
120.9
118.2

128.5
128.5
129.7
130.2
130.0
129.8
128.8
128.2
126.3
123.4

110.1
110.1
112.2
112.0
113.0
111.4
113.8
114.0
113.2
110.7

128.2
129.4
129.2
128.9
127.8
128.6
127.6
125.3
123.0
120.5

128.8
128.7
129.1
128.8
128.0
128.5
129.3
128.1
114.8

580.5
124.6
124.8 1
125.7 \ 80.1
125.6 1
125.2 I
125.2 [ 79.4
125.5 j
124.6 )
120.9 \ 75.7
116.1 J

181.0
167.0
188.0
166.0
177.0
170.0
187.0
148.0
154.0
176.0

118.6
118.8
119.0
119.1
119.2
119.4
119.7
119.8
119.1
118.0

102.9
103.0
103.0
103.2
103.0
102.6
102.5
101.7
99.4
96.3

153.1
150.4
156.2
157.9
159.5
161 .5
162.0
162.1
157.0
152.6

168
169
172
170
177
180
176
175
170
171

143.1
143.9
145.5
146.9
148.0
149.9
151.7
153.0
154.3
155.4

151.4
152.7
155.0
155.7
161.7
167.4
167.2
170.2
171 .9
171 .5

1975-—Jan............
Feb............
M ar...........
A pr...........

113.7

115.4 114.9

120.1

107.8

117.6

110.5
107.4
105.4
103.9

111 .7
109.3
107.8
107.7

135.0
135.0
153.0

117.3
116.5
115.9
115.8

93.6
90.8
90.0
89.5

148.9
143.0
142.8
143.8

176
179
176
178

156.1
157.2
157.8

171.8
171.3
170.4
172.1

1 9 7 2 ...........................

111 .2 113.6 113.1 118.8 105.1 116.0
109.8 112.6 112.4 118.4 104.0 113.9
109.4 112.8 112.5 119.6 102.9 113.8

122.1

1 Employees only: excludes personnel in the Armed Forces.

2 Production workers only. R evised back to 1968.

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 1974.
N o t e .— A ll series: D ata are seasonally adjusted unless otherwise noted.
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics D epartm ent, and D ept, of Commerce.

68.3

Construction contracts: McGraw-Hill Informations Systems Company
F .W . D odge Division, m onthly index of dollar value o f total construction
contracts, including residential, nonresidential, and heavy engineering.
Em ploym ent and p ayrolls: Based on Bureau of Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau o f Labor Statistics data.

CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions of dollars, except as noted)
1974
Type o f ownership and
type of construction

1973

1975

1974
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

M ar.

Total construction contracts 1.........

99,304 93,076 7,911 8,929 10,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955 6,574

By type o f ownership:
Public........................................
Private 1.......................................

26,563 32,209 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031 2,182
72,741 60,867 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924 4,393

By type o f construction:
Residential building 1...............
Nonresidential building............
N onbuilding................................

45,696 34,174 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583 2,316
31,534 33,859 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199 2,402
22,074 25,042 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172 1,856

Private housing units au th o rized ...
(In thousands, S.A., A.R.)

1,829

1,053

1,410 1,296 1,120 1,106

1 Because of improved procedures for collecting data for 1-family homes,
some totals are not strictly comparable with those prior to 1968. To im ­
prove comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.




1,017

900

823

782

730

822

682

r714

710

N o t e . —D ollar value o f construction contracts as reported by the
M cGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data may differ from annual totals because adjustments
are made in accumulated monthly data after original figures have been
published.
Private housing units authorized are Census Bureau series for 14,000
reporting areas with local building permit systems.

MAY 1975 o CONSTRUCTION

A 51

VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions of dollars)
Private
Nonresidential
Period

Total
Total

Resi­
dential

Buildings
Total
Total
Com­
mercial

Other
build­
ings 1

Other

Indus­
trial

Mili­
tary

High­
way

Conser­
vation
Other 2
and
develop­
ment

51,350
51,995
51,967
59,021
65.404

27,934
25,715
25,568
30,565
33,200

23,416
26,280
26,399
28,456
32,204

5,118
6,679
6,131
6,021
6,783

6,739
6,879
6,982
7,761
9,401

4,735
5,037
4,993
4,382
4,971

6,824
7,685
8,293
10,292
11,049

22,062
24,007
25,536
27,605
27,964

830
727
695
808
879

7,550
8,405
8,591
9,321
9,250

2,019
2,194
2,124
1,973
1,783

11,663
12,681
14,126
15,503
16,052

94,167 66,071
109,950 80,079
124,077 93,893
135,456 102,894
134,506 96,124

31,864
43,267
54,288
57,623
54,740

34,207
36,812
39,605
45,271
41,384

6,538
5,423
4.676
6,243
7,745

9,754
11,619
13,462
15,453
16,029

5,125
5,437
5,898
5,888
5,951

12,790
14,333
15,569
17,687
11,659

28,096
29,871
30,184
32,562
38,382

718
901
1,087
1,170
1,188

9,981
10,658
10,429
10,559

1 ,908
2,095
2,172
2,313

15,489
16,217
16,496
18,520

1974—M ar..
Apr..
May.
Ju n e ..
J u ly ..
Aug..
Sept..
O ct...
N ov..
D ec...

135,069
136,399
138,163
136,889
137,879
134,425
133,028
134,046
131,133
132,761

98,631
97,445
97,889
98.404
97,924
96,225
94,728
95,180
93,532
90,865

48,643
48,164
47,971
48,269
48,875
48,208
46,005
44,285
42,341
40,145

49,988
49,281
49,918
50,135
49,049
48,017
48,723
50,895
51,191
50,720

7,500
6,920
7,606
8,027
7,158
7,616
7.677
8,294
8,670
8,774

16,652
16,296
16,408
16,425
15,953
15.053
15,668
16,300
16,037
15,372

6,336
6,264
5,890
6,034
5,915
5,691
5,776
5,799
5,854
5,781

19,500
19,801
20,014
19,649
20,023
19,657
19,602
20,502
20,630
20,793

36,438
38.954
40,274
38,485
39.955
38,200
38,300
38,866
37,601
41,896

1,401
1,505
1,181
1,169
1,131
978
1,167
1,065

10,985
12,209
12,322
11,475
12,518
11,968
13,334
12,566
11,573

2,463
2,665
2,692
3,310
2,581
2,568
2,886
3,070
2,926

21,589
22,575
24,079
22,531
23,725
22,686
20,913
22,165

1975— J a n . . .
Feb...

130,256
125,556
125,754

88,471
86,625
84,418

37,665
36,249
35,683

50,806
50,376
48,735

8,525
8,734
8,151

15.053
15,249
13,467

5,779
5,844
5,454

2),449
20,549
21,663

41,785
38,931
41 ,336

1 ,305
1 ,449
1,553

73,412
76,002
77,503
86,626
93,728

1965
1966
1967
1968
1969
197
197
197
197
197

0
1
2
3
4

M ar.p

N ote.—Census Bureau data; monthly series at seasonally adjusted
annual rates.

1 Includes religious, educational, hospital, institutional, and other buildigs.
2 Sewer and water, formerly shown separately, now included in “ O ther.”

PRIVATE HOUSING ACTIVITY
(In thousands of units)
Starts

Completions

Under construction
(end of period)

New 1-family homes sold
and for sale 1
Units

Period
Total

1family

2-o rm ore
family

Total

1family

2-ormore
family

Total

1family

2-ormore
family

Sold

1965............................................
1966............................................
1967............................................
1968............................................
1969............................................

1,473
1,165
1,292
1,508
1,467

964
779
844
899
811

509
386
448
608
656

1,320
1,399

859
808

461
592

885

350

1970............................................
1971............................................
1972............................................
1973............................................
1974............................................

1,434
2,052
2,357
2,045
1,338

813
1,151
1,309
1,132
888

621
901
1,048
913
450

1,418
1,706
1,972
2,014
1,689

802
1,014
1,143
1,174
930

617
692
828
840
759

922
1,254
1,586
1,599
1,194

381
505
640
583
519

1974—Feb.................................
M ar................................
A p r.................................
M ay...............................
June...............................
Ju ly ................................
Aug................................
Sept................................
O ct.................................
N ov................................
D ec.................................

1,881
1,511
1,580
1,467
1,533
1,314
1,156
1,157
1,106
1,017
880

1,046
969
975
925
1,000
920
826
845
792
802
682

835
542
605
542
533
394
330
312
314
215
198

1,867
1,813
1,727
1,660
1,805
1,655
1,592
1,562
1,627
1,657
1 ,606

1,005
954
917
889
1,053
934
919
899
908
893
852

861
859
809
771
752
721
674
663
719
763
754

1,611
1,567
1,545
1,512
1,480
1,443
1,406
1,372
1,322
1,225
1,229

1975—J a n .' ..............................
Feb.................................
M ar.?.............................

999
986
980

739
722
575

260
264
223

1,544
1,266

965
755

578
512

1,181
1,165

1 M erchant builders only.
N o t e . —All series except prices, seasonally adjusted. A nnual rates for

starts, completions, mobile home shipments, and sales. Census d ata except




M edian prices
(in thousands
o f dollars) of
units

Mobile
home
ship­
ments
F or
sale
(end of
per­
iod)

Sold

F or
sale

535

217
217
240
318
413

575
461
487
490
448

228
196
190
218
228

20.0
21.4
22.7
24.7
25.6

21.3
22.8
23.6
24.6
27.0

541
749
947
1,016
676

401
497
576
567
371

485
656
718
620
500

227
294
416
456
408

23.4
25.2
27.6
32.5
35.9

26.2
25.9
28.3
32.9
36.2

601
597
600
594
581
578
570
565
553
541
545

1,010
970
945
918
899
865
836
807
769
714
684

449
475
435
451
441
380
370
316
248
218
216

515
564
556
569
524
509
466
495
433
435
384

458
452
450
444
436
430
425
414
409
404
400

34.9
36.0
35.7
35.7
35.1
36.8
35.7
36.2
37.2
37.3
37.5

33.5
34.0
34.3
34.7
35.0
35.3
35.5
35.7
35.9
36.0
36.2

526
523

655
642

185
219

391
392

403
407

37.5
38.1

36.5
36.7

for mobile homes, which are private, domestic shipments as reported by
the Mobile Home M anufacturers’ Assn. and seasonally adjusted by
Census Bureau. D ata for units under construction seasonally adjusted by
Federal Reserve.

A 52

EMPLOYMENT □ MAY 1975
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands of persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)

Period

N ot in
labor force
(N.S.A.)

Total
labor
force
(S.A.)

Unem­
ployed

Unemploy­
ment
rate2
(per cent;
S.A.)

Em ployed1
Total
Total

In nonagri­
cultural
industries

In
agriculture

1969.............................
1970.............................
1971.............................
1972.............................
1973.............................
1974.............................

137,841
140,182
142,596
145,775
148,263
150,827

53,602
54,280
55,666
56,785
57,222
57,587

84,240
85,903
86,929
88,991
91,040
93,240

80,734
82,715
84,113
86,542
88,714
91,011

77,902
78,627
79,120
81,702
84,409
85,936

74,296
75,165
75,732
78,230
80,957
82,443

3,606
3,462
3,387
3,472
3,452
3,492

2,832
4,088
4,993
4,840
4,304
5,076

3.5
4.9
5.9
5.6
4.9
5.6

1974—A pr..................
M ay.................
June.................
July..................
Aug..................
Sept.................
O ct...................
N ov.................
Dec..................

150,283
150,507
150,710
150,922
151,135
151,367
151,593
151,812
152,020

58,547
58,349
55,952
55,426
56,456
57,706
57,489
57,991
58,482

92,567
92,982
93,069
93,503
93,419
93,922
94,058
93,921
94,015

90,324
90,753
90,857
91,283
91,199
91,705
91,844
91,708
91,803

85,787
86,062
86,088
86,403
86,274
86,402
86,304
85,689
85,202

82,272
82,565
82,755
82,970
82,823
82,913
82,864
82,314
81,863

3,515
3,497
3,333
3,433
3,451
3,489
3,440
3,375
3,339

4,537
4,691
4,769
4,880
4,925
5,303
5,540
6,019
6,601

5 .0
5.2
5.2
5.3
5 .4
5.8
6 .0
6.6
7.2

1975—Jan...................
Feb..................
M ar.................
A pr..................

152,230
152,445
152,646
152,840

58,888
59,333
59,053
59,276

94,284
93,709
94,027
94,457

92,091
91,511
91,829
92,262

84,562
84,027
83,849
84,086

81,179
80,701
80,584
80,848

3,383
3,326
3,265
3,238

7,529
7,484
7,980
8,176

8.2
8.2
8.7
8.9

1 Includes self-employed, unpaid family, and domestic service workers.
2 Per cent o f civilian labor force.
N ote.—Bureau o f L abor 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
of m onthly figures. D escription o f changes in series beginning 1967 is
available from Bureau of Labor Statistics.

EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands of persons)
Contract
construc­
tion

Total

M anufac­
turing

70,442
70,920
71,216
73,711
76,833
78,334

20,167
19,349
18,572
19,090
20,054
20,016

619
623
603
622
638
672

3,525
3,536
3,639
3,831
4,028
3,985

78,226
78,357
78,421
78,479
78,661
78,844
78,865
78,404
77,690

20,147
20,151
20,184
20,169
20,112
20,112
19,982
19,633
19,146

665
668
669
675
676
682
692
693
662

77,227
76,708
76,346
76,293

18,718
18,297
18,154
18,058

1974—A pr...................................................
M ay..................................................
June..................................................
Ju ly ..................................................
Aug...................................................
Sept...................................................
Oct....................................................
N ov...................................................
D ec...................................................

77,994
78,545
79,287
78,322
78,561
79,097
79,429
79,125
78,441

1975—Jan ....................................................
Feb....................................................
M ar.p...............................................
A pr.p................................................

76,185
75,753
75,735
76,080

Period

1970...............................................................
1971...............................................................
1973...............................................................
1974...............................................................

T ransporta­
tion and
public
utilities

Trade

Finance

Service

Govern­
ment

4,435
4,504
4,457
4,517
4,646
4,699

14,704
15,040
15,352
15,975
16,665
17,011

3,562
3,687
3,802
3,943
4,075
4,173

11,228
11,621
11,903
12,392
12,986
13,506

12,202
12,561
12,887
13,340
13,742
14,285

4,087
4,066
3,994
3,920
3,965
3,939
3,911
3,861
3,798

4,704
4,701
4,698
4,693
4,701
4,679
4,699
4,697
4,668

16,945
16,994
17,031
17,107
17,140
17,166
17,160
17,048
16,912

4,154
4,161
4,156
4,157
4,168
4,176
4,185
4,183
4,182

13,367
13,429
13,488
13,516
13,573
13,647
13,705
13,721
13,734

14,157
14,187
14,201
14,242
14,326
14,443
14,531
14,568
14,588

700
702
706
700

3,789
3,596
3,478
3,462

4,607
4,561
4,511
4,499

16,863
16,832
16,788
16,794

4,173
4,164
4,156
4,164

13,747
13,771
13,752
13,773

14,630
14,785
14,801
14,843

20,011
20,063
20,345
20,066
20,288
20,350
20,142
19,763
19,175

659
669
684
688
690
688
693
693
657

3,919
4,058
4,190
4,187
4,286
4,191
4,150
3,981
3,722

4,671
4,701
4,759
4,740
4,734
4,721
4,718
4,702
4,663

16,851
16,964
17,108
17,064
17,058
17,153
17,225
17,342
17,591

4,137
4,161
4,202
4,219
4,222
4,180
4,172
4,309
4,161

13,380
13,536
13,677
13,665
13,668
13,647
13,719
13,707
13,665

14,366
14,393
14,322
13,693
13,615
14,167
14,610
14,771
14,807

18,538
18,132
18,015
17,936

689
687
691
694

3,372
3,229
3,210
3,320

4,552
4,497
4,475
4,468

16,687
16,475
16,498
16,664

4,131
4,127
4,131
4,147

13,513
13,606
13,656
13,787

14,703
15,000
15,059
15,064

Mining

SEASONALLY ADJUSTED
1974—A pr....................................................
M av..................................................
June..................................................
Ju ly ...................................................
Aug...................................................
Oct....................................................

1975—Jan....................................................
Feb....................................................
M ar.p...............................................
A pr.p................................................
NOT SEASONALLY ADJUSTED

N ote.—Bureau o f Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period
that includes the 12th o f the m onth. Proprietors, self-employed persons,




domestic servants, unpaid family workers, and members of Armed
Forces are excluded.
Beginning with 1968, series has been adjusted to Mar. 1973 bench­
mark.

MAY 1975 □ PRICES

A 53

CONSUMER PRICES
(1967 = 100)
Housing

Period

All
items

Homeownership

Fuel
oil
and
coal

Gas
and
elec­
tricity

86.3
92.7

40.5
48.0
89.2
9 4.6

81.4
79.6
98.6
99.4

98.2 96.3
100.0 100.0
102.4 105.7
105.7 116.0

9 7 .0
100.0
103.1
105.6

Food
Total

H ealth and recreation

Rent

76.0
54.1
57.2
58.8
91.7
96.9

F ur­ Apparel Trans­
nish­
and
porta­
ings upkeep
tion
and
opera­
tion

Total

M ed­
ical
care

Per­
sonal
care

Read­
ing
and
recrea­
tion

Other
goods
and
serv­
ices

*93.8
95.3

48.5
36.9
44.8
61.5
89.6
93.7

44.2
47.8
89.6
95.9

85.1
93.4

37.0
42.1
79.1
89.5

41.2
55.1
90.1
95.2

47.7
62.4
87.3
9 5.9

49.2
56.9
87.8
94.2

99.6
100.0
100.9
102.8

97.0
100.0
104.4
109.0

96.1
100.0
105.4
111.5

97.2
100.0
103.2
107.2

96.1
100.0
105.0
110.3

93.4
100.0
106.1
113.4

97.1
100.0
104.2
109.3

97.5
100.0
104.7
108.7

97.2
100.0
104.6
109.1

110.1
117.5
118.5
136.0
214.6

107.3
114.7
120.5
126.4
145.8

113.4
118.1
121.0
124.9
140.5

116.1
119.8
122.3
126.8
136.2

112.7
118.6
119.9
123.8
137.7

116.2
122.2
126.1
130.2
140.3

120.6
128.4
132.5
137.7
150.5

113.2
116.8
119.8
125.2
137.3

113.4
119.3
122.8
125.9
133.8

116.0
120.9
125.5
129.0
137.2

157.2
158.2
159.4
161.2
163.2
165.4
167.9
170.1
171.7
174.0

201.5
206.5
211 .0
214.2
218.5
220.9
222.7
225.5
229.2
228.8

140.0
141.9
143.9
144.5
146.2
148.5
150.2
151.5
154.0
156.7

132.6
134.0
137.0
139.2
141.4
143.9
146.6
149.0
151.0
152.3

132.2
133.6
135.0
135.7
135.3
138.1
139.9
141.1
142.4
141.9

132.0
133.7
136.3
138.8
140.6
141.3
142.2
142.9
143.4
143.5

135.4
136.3
137.7
139.4
141.0
142.6
144.0
145.2
146.3
147.5

144.8
145.6
147.2
149.4
151 .4
153.7
155.2
156.3
157.5
159.0

131.8
133.1
134.9
136.5
137.8
139.3
141.2
143.0
144.2
145.3

129.5
130.4
132.0
133.5
134.6
135.2
137.0
137.8
138.8
139.8

132.8
133.6
134.4
135.8
137.7
139.4
140.4
141.4
142.7
143.9

134.0 175.6
135.1 177.3
135.5 178.2

228.9
229.5
228.3

160.2
162.7
164.0

153.2
154.7
155.6

139.4
140.2
140.9

143.2
143.5
144.8

148.9
150.2
151.1

161 .0
163.0
164.6

146.5
147.8
148.9

141 .0
141.8
142.0

144.8
145.9
146.5

1929............................
1933............................
1941............................
1945............................
1960............................
1965............................

51.3
38.8
44.1
53.9
88.7
94.5

48.3
30.6
38.4
50.7
88.0
9 4.4

53.7
59.1
90.2
94.9

1966............................
1967............................
1968............................
1969............................

97.2
100.0
104.2
109.8

99.1
100.0
103.6
108.9

97.2
100.0
104.2
110.8

1970............................
19 71............................
1972............................
1973............................
1974............................

116.3
121.3
125.3
133.1
147.7

114.9
118.4
123.5
141.4
161.7

118.9
124.3
129.2
135.0
150.6

110.1
115.2
119.2
r 124.3
130.2

128.5
133.7
140.1
146.7
163.2

1974—M ar................
A pr.................
M ay ...............
J u n e ...............
July................
Aug................
Sept................
O ct..................
N ov................
D ec.................

143.1
143.9
145.5
146.9
148.0
149.9
151.7
153.0
154.3
155.4

159.1
158.6
159.7
160.3
160.5
162.8
165.0
166.1
167.8
169.7

144.9
146.0
147.6
149.2
150.9
152.8
154.9
156.7
158.3
159.9

128.4
128.8
129.3
129.8
130.3
130.9
131.4
132.2
132.8
133.5

1975—Jan ..................
Feb.................
M ar................

156.1
157.2
157.8

170.9
171.6
171.3

161 .2
162.7
163.6

N ote.— Bureau of Labor Statistics index for city wage-earners and
clerical workers.

WHOLESALE PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities

Period

1................................

Pro­
All
Farm cessed
com­ prod­
foods
modi­ ucts
and
ties
feeds Total

Tex­
tiles,
etc.

Rub­
Hides, Fuel, Chem­
icals,
ber,
etc.
etc.
etc.
etc.

95.3
96.4

99.5
99.8

90.8
94.3

94.9
96.6

97.2
98.7

99.8
100.0
102.5
>................................ 106.5

105.9
100.0
102.5
109.1

89.5
95.5

96.1
95.5

101.8 103.1
99.0 95.9

Lum­ Paper, M et­
ber,
als,
etc.
etc.
etc.

M a­
chin­ F urni­
ery
ture,
and
equip­ etc.
ment

95.3
95.9

92.0
93.9

98.1
96.2

111.0 112.0
113.9 112.9 114.3
119.1 125.0 120.8
t ............................... 134.7 176.3 148.1
L.........................
160.1 187.7 170.9

110.0
114.0
117.9
125.9
153.8

93.0
95.9

97.2
97.5

97.7
100.0
102.2
105.2

107.2
108.6
113.6
123.8
139.1

110.1
114.0
131.3
143.1
145.1

105.9
114.2
118.6
134.3
208.3

102.2
104.2
104.2
110.0
146.8

108.6
109.2
109.3
112.4
136.2

113.7
127.0
144.3
177.2
183.6

108.2
110.1
113.4
122.1
151.7

116.7
119.0
123.5
132.8
171.9

111.4
115.5
117.9
121.7
139.4

107.5 113.3
109.9 122.4
111.4 126.1
115.2 130.2
127.9 153.2

104.5
110.3
113.8
115.1
125.5

109.9
112.8
114.6
119.7
133.1

114.4
146.6
147.5
153.3
162.9
164.2
166.0
166.9
167.2

161.2
168.7
174.0
180.3
185.6
187.1
186.9
186.7
184.6

130.8
134.1
137.2
140.3
144.3
146.8
150.0
152.7
154.0

122.9
124.5
126.1
128.2
129.8
132.8
135.5
136.9
137.7

119.4
121.4
122.8
125.1
126.7
127.7
134.2
135.1
137.0

128.2
133.2
134.3
135.2
135.4
136.3
137.1
140.7
142.4

•—A pr.....................
M ay ...................
Ju n e ...................
July....................
Aug....................
Sept....................
O ct.....................
N ov....................
Dec.....................

152.7 186.2 159.1
155.0 180.8 158.9
155.7 168.6 157.4
161.7 180.8 167.6
167.4 189.2 179.7
167.2 182.7 176.8
170.2 187.5 183.5
171.9 187.8 189.7
171.5 183.7 188.2

146.6 137.5
150.5 139.1
153.6 141.7
157.8 142.1
161.6 142.3
162.9 142.1
164.8 140.5
165.8 139.8
166.1 138.4

145.4
146.3
146.0
146.6
146.2
148.1
145.2
144.5
143.2

197.9
204.3
210.5
221.7
226.0
225.0
228.5
227.4
229.0

132.3
137.0
142.8
148.4
158.5
161.7
168.5
172.9
174.0

129.4
133.7
135.6
139.5
143.4
145.6
147.5
148.5
149.4

200.2
198.0
192.2
188.6
183.7
180.4
169.4
165.8
165.4

I—Jan ......................
Feb.....................
M ar....................
A pr.....................

171.8 179.7 186.4 167.5 137.5
171 .3 174.6 182.6 168.4 136.5
170.4 171.1 177.3 168.9 134.3
172.1 177.7 179.4 169.7 134.4

142.1
141 .7
143.2
147.5

232.2 176.0
232.3 178.1
233.0 181.8
236.5 182.4

149.6
150.0
149.7
149.4

164.7 169.8
169.3 169.8
169.6 170.0
174.9 169.7




99.0
96.9

101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 9 8.0 98.4
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7
107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8

) ................................ 110.4

i Dec. 1968=100.

92.4
96.4

N on­ Trans­
m e­ porta­ Mis­
tallic tion cella­
min­ equip­ neous
erals ment 1

185.5 156.6 138.8
186.3 157.7 139.1
186.1 158.8 138.5
185.7 159.7 138.5

146.7
150.7
152.3
156.4
157.6
159.8
162.2
163.4
164.3

168.5 137.1 145.5
170.3 138.2 146.4
170.8 139.5 146.8
173.0 139.9 147.3

A 54

NATIONAL PRODUCT AND INCOME □ MAY 1975
GROSS NATIONAL PRODUCT
(In billions o f dollars)

Item

1929

1933

1941

1950

1970

1971

1972

1973

1974

1974
I

Gross national product.

103.1

55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.4 1.358.8

Final purchases ..............

101.4

5 7 .2

Personal consumption expenditures.
D urable goods...............................
N ondurable goods.........................
Services............................................

77.2
9 .2
37.7
30.3

45.8
3.5
22.3
20.1

Gross private domestic investment.
F ixed investment...................................
N onresidential................................. .
Structures.....................................
Producers’ durable equipment.
Residential structures...................
N onfarm .......................................
Change in business inventories-----N onfarm ..........................................

16.2

1.4

17.9

54.1

1 4 .5
1 0 .6

3 .0
2 .4
.9

1 3 .4
9 .5

4 7 .3
2 7 .9

120.1

1.5
.6
.5
-1 .6
-1 .4

2.9
6 .6
3.9
3.7
4.5
4 .0

Net exports of goods and services.
Exports..........................................
Im ports..........................................

1.1
7.0
5.9

.4
2.4
2 .0

1.3
5.9
4.6

Government purchases of goods and services.
F ederal ..............................................................
National defense........................................
O ther.............................................................
State and local..........................................

8.5

8 .0

24.8

1 .3

2 .0

1 6 .9

6.0

13.8
3
7.9

Gross national product in constant (1958)
dollars...............................................................

III

IV

Ip

1,416.3 1,430.9 1,419.2

9 7 2.6 1,048.6 1,149.5 1,279.6 1,888.2 1.841.9 1,370.8 1,407.6 1,418.1 1,437.1

80.6 191.0 617.6 667.1 729.0 805.2 876.7 840.6 869.1 901.3 895.8 916.3
9 .6
30.5 91.3 103.9 118.4 130.3 127.5 123.9 129.5 136.1 120.7 125.5
42.9 98.1 263.8 278.4 299.7 338.0 380.2 364.4 375.8 389.0 391.7 399.3
62.4 262.6 284.8 310.9 336.9 369.0 352.4 363.8 376.2 383.5 391.5
28.1

5.0
5.6
4 .0
3.8
1.7
1.8

7.2

27 8 .0

II

1975

136.3 153.7 179.3 209.4 209.4 210.5 211.8 205.8 209.4
13 1.7
100.6

1 4 7 .4
1 0 4 .6

1 7 0 .8
11 6 .8

1 9 4 .0
13 6 .8

19 5 .2
1 4 9 .2

9.2
18.7
19.4
18.6
6.8
6.0

1 9 3 .6
1 4 5 .2

36.1
64.4
31.2
30.7
4.5
4.3

37.9
66.6
42
42.3
6.3
4.9

41.1
75.7
54.0
53.4
8.5
7.

47.0
89.8
57.2
56.7
15.4
11.4

52.0
97.1
46.0
45.2
14.2
11.9

51.3
93.9
48.4
47.
16.9
13.1

1.8
13.
12.0

3.6
62.
59.3

-.2
65.4
65.6

-6 .0
72.4
78.4

3.9
100.4
96.4

2.1
140.2
138.1

198.3
1 4 9.4
5 2 .2

97.2
48.8
48.0
13.5
10.4

197.1
1 5 0 .9

51.0
99.9
46.2
45.4
8 .7
6 .6

1 9 1 .6
1 5 1 .2

164.6
182.6
14 7 .4

53.7
52.8
97.5
94.6
40.4
35.2
39.7
34.7
17.8 - 1 8 . 0
17.5 - 1 6 . 6

11.3 - 1 . 5 - 3 . 1
1.9
131.2 138.5 143.6 147.5
119.9 140.0 146.7 145.7

5 .4
143.5
138.1

37.9 219.5 234.2 255.7 276.4 309.2 296.3 304.4 312.3 323.8 332.8
1 8 .4

9 6 .2

9 7 .6

1 0 4 .9

1 0 6.6

1 1 6 .9

74.6
21.6
123.3

71.2
26
136.6

74.
30.1
150.8

74.4
32.2
169.8

1 1 1.5

14.1
4.3
19.5

78.7
38.2
192.3

75.
35.7
184

114.3

11 7 .2

76.6
37.7
190.1

78.4
38.8
195.1

12 4 .5

1 2 7 .7

84.0 85.2
40.6 42.5
199.3 205.1

203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 830.5 827.1 823.1 804.0 782.3

N o t e . —Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation o f series,

see the Survey o f Current Business (generally the July issue) and the
Aug. 1966 Supplement to the Survey.

NATIONAL INCOME
(In billions o f dollars)

Item

1929

1933

1941

1950

1970

1971

1972

1974
1973

1975

1974
I

II

III

IV

\p

National income....................................................

86.8

40.3

Compensation of employees................................

51.1

29.5

64.8 154.6 603.9 643.1 707.1 786.0 855.8

828.8 848.3 868.2 877.7 875.4

W ages and salaries ...........................................

5 0 .4

2 9 .0

6 2 .1

72 7 .6

45.5
.3
4 .6

23.9
.3
4.9

51.9
1.9
8.3

Private............................................................
M ilitary..........................................................
Government civilian....................................

104.2 241.1 800.5 857.7 946.5 1,065.6 1,142.5 1,118.8 1,130.2 1,155.5 1,165.4

146.8

5 4 2 .0

5 7 3 .6

6 2 6 .8

6 9 1 .6

7 5 0 .7

124.4 426.9 449.5 491.4 545.1 592.4
5.0
19.6
19.4 20.5 20.6 21.2
17.4 95.5 104.7 114.8 126.0 137.1

7 6 9 .2

76 4 .9

573.8 588.3 602.5 605.1
21.0 20.9 20.8 22.0
132.8 135.4 138.2 142.1

744.6

7 6 1.5

597.2
22.0
145.7

Supplements to wages and salaries ................

.7

.5

2 .7

7 .8

6 1 .9

6 9 .5

8 0 .3

9 4 .4

105.1

1 0 1 .2

Employer contributions for social in­
surance .......................................................
Other labor income.....................................

1 0 3 .7

1 0 6 .7

1 0 8 .6

1 1 0 .5

.1
.6

.1
.4

2 .0
.7

4 .0
3.8

29.7
32.2

33.1
36.4

38.6
41.7

48.4
46.0

53.6
51.4

52.3
48.9

53.2
50.5

54.5
52.3

54.6
54.0

55.3

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

66.9
50.0
16.9

69.2
52.0
17.2

75.9
54.9
21.0

96.1
57.6
38.5

93.0
61.2
31.8

98.4
59.3
39.1

89.9
60.7
29.1

92.1
62.3
29.8

91.6
62.5
29.1

85.0
62.8
22.2

Rental income of persons....................................

5 .4

2 .0

3.5

9.4

23.9

25.2

25.9

26.1

26.5

26.4

26.3

26.6

26.8

27.0

Corporate profits and inventory valuation
adjustment..........................................................

10.5

- 1 .2

15.2

37.7

69.2

78.7

92.2

105.1

105.6 107.7

105.6 105.8 103.4

Profits before ta x ..............................................

1 0 .0

1 7 .7

4 2 .6

7 4 .0

8 3 .6

9 9 .2

34.8

41.5

49.8

10.1

2 4 .9

3 9 .3

4 6 .1

5 7 .7

7 2 .9

8 3 .2

1 3 9 .0
5 5 .9
8 3 .1

1 5 7 .0

37.5

8 .6

1 4 0 .7
5 5 .1
8 5 .0

1 3 5 .4

7.6

17.8

1 2 2 .7

Profits tax liability.......................................
Profits after t a x . ..........................................
D ividends..................................................
Undistributed profits..............................

1 .0
.5
.4

9 4 .3

7 9 .5

5.8
2.8

2.0
-1 .6

4.4
5.7

8.8
16.0

24.7
14.6

25.0
21.1

27.3
30.3

29.6
43.3

32.7
52.4

31.6
51.6

32.5
50.5

33.2
61.1

33.3
46.2

33.7

Inventory valuation adjustm ent...................

.5

-2 .1

-2 .5

- 5 .0

- 4 .8

- 4 .9

- 7 . 0 - 1 7 .6 - 3 5 . 2 - 2 7 . 7 - 3 3 .4 - 5 1 .2 - 2 8 .5

-6 .2

Net interest............................................................

4.7

3.2

2.0

36.5

41.6

1.4

41

N ote.—D ept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N ote to table above.




45.6

52.3

61.6

52.2

57.5

60.1

62.7

62.8

5 5 .2

1 3 1 .5

52.0

65.9

68.8

MAY 1975 □ NATIONAL PRODUCT AND INCOME

A 55

RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions o f dollars)

Item

1929

1933

1941

1950

1970

1971

1972

1974

1973

I
Gross national product........................................

103.1

Less: Capital consumption allow ances...........

7.9

7 .0

8 .2

18.3

Indirect business tax and nontax lia­
bility.........................................................
Business transfer paym ents.....................
Statistical discrepancy..............................

87.3

7 .0
.6
.7

7.1
.7
.6

11.3
.5
.4

23.3
.8
1.5

93.5
4 .0
- 6 .4

.1

.2

1.7

Plus: Subsidies less current surplus o f gov-

Equals: National income.....................................

II

III

\p

IV

55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.4 1,358.8 1,383.8 1,416.3 1,430.9 1,419.2

-.1
86.8

1975

1974

110.8

119.5 115.8

118.6 120.7

122.9

125.0

102.7 110.0 119.2
4.3
4 .6
4.9
- 2 .3 -3 .8 - 5 .0

93.7

126.9 122.6
5.2
5.1
.4 - 6 . 3

125.9
5.2
.3

129.5
5.3
3.0

129.8
5.3
4.8

132.2
5.4

-2 .7

—3.7

—2.4

- 2 .7

—2 .6

1.1

102.9

2.3

.6

- 2 .9

40.3 104.2 241.1 800.5 857.7 946.5 1,065.6 1,142.5 1,118.8 1,130.2 1,155.5 1,165.4

L ess: C orporate profits and inventory valu­

ation adjustm ent....................................
Contributions for social insurance........
Excess o f wage accruals over disburse­
ments .......................................................

10.5
.2

-1 .2
.3

Plus: G overnment transfer paym ents.............

.9

1.5

2 .6

D ividends....................................................
Business transfer paym ents.....................

2 .5
5.8
.6

1.6
2 .0
.7

2 .2
4.4
.5

Equals: Personal income.....................................

85.9

47.0

L ess: Personal tax and nontax paym ents. . . .

2.6

1.5

Equals: Disposable personal income.................

83.3

45.5

92.7 206.9 691.7 746.4 802.5 903.7 979.7 950.6 966.5 993.1 1,008.8 1,017.4

L e ss: Personal outlays........................................

79.1
77.2
1.5

46.5
45.8
.5

81.7
80.6
.9

N et interest paid by government and

Personal consumption expenditures..
Consumer interest payments...............
Personal transfer payments to forEquals: Personal saving......................................
Disposable personal income in constant (1958)
dollars.................................................................

15.2
2.8

37.7
6.9

69.2
57.7

78.7
63.8

92.2
73.0

105.1
91.2

.0

.6

.0

1

14.3

75.1

89.0

98.6

7 .2
8.8
.8

31.0
24.7
4 .0

31.2
25.0
4.3

33.0
27.3
4.6

105.6 107.7 105.6
101.5 99.1 100.8
.0

—.5

113.0 134.6 123.1
38.3
29.6
4 .9

42.3
32.7
5.2

105.8 103.4
103.0 103.2

104.5

-.6

-1 .5

.0

.0

130.6

138.7

145.8

158.7

41.9
32.5
5.2

42.7
33.2
5.3

43.6
33.3
5.3

43.6
33.7
5.4

40.8
31.6
5.1

96.0 227.6 808.3 864.0 944.9 1,055.0 1,150.5 1,112.5 1,134.6 1,168.2 1,186.9 1,193.0
3.3

20.7

116.6

117.6

142.4

151.3

170.8 161.9

168.2

175.1

178.1

175.7

193.9 635.5 685.9 749.9 829.4 902.7 866.2 894.9 927.6 922.3 942.5
191.0 617.6 667.1 729.0 805.2 876.7 840.6 869.1 901.3 895.8 916.3
25.3 25.5 25.3
2 .4
16.8
17.7 19.8 22.9 25.0 24.4 24.8

.3

.2

.2

.5

1.0

1.1

1 .1

1.3

1.0

1.2

1.0

.9

.9

.9

4 .2

-.9

11.0

13.1

56.2

60.5

52.6

74.4

77.0

84.4

71.5

65.5

86.5

74.8

150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 610.3 603.5 602.9 594.8 591.0

N o t e . —Dept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table at top o f opposite
page.

PERSONAL INCOME
(In billions o f dollars)
1974
I te m

1973

M ar.
Total personal income............... 1,055.0 1,150
Wage and salary disbursements.
Commodity-producing in­
d ustries............................
M anufacturing o n ly ...........
D istributive industries. . . .
Service industries...................
G overnm ent............................

1975

1974
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

1,143.5 1,159.5 ,167.2 ,178.0 ,185.0 ,184.5

Dec.

Jan.

Feb.

M ar

,191.0 ,191.1 1,193.4 1,194.6

1,117.

1,125.2 1,135

691.7 751.

732.

737.1 745,

753.2

759.7

761.6

767.7

773.0

767.8

766.6

765.7 763.6

251.9 270.

265.

267.4 270.

272.6

273.3

278.3

279.5

272.3

266.4

260.7

259.9

205.

2 0 7 .8 210.

2 1 2 .5

2 1 4 .0

2 1 5 .5

2 H .8

2 1 9 .4

2 1 4 .2

269.3

1 9 6 .6 211

276.5

2 0 6 .4

2 0 2 .9

2 0 2 .4

175.3 177.
139.1 141
155.3 156.

180
143.5
162.1

180.7
144.9
159.5

183.1
146.4
159.9

183.
146.9
162.

183.9
147.4
164.2

2 0 9 .7

173.
138.
154

183.2
149
166.2

184.0
151.2
167.6

184.1
152.2
169.3

165.1 178.
128.2 142.
146.6 158.

179.1
142.6
158.9

183.
148.3
165.2

765.6

O ther labor incom e...................

46.0

51.4

49. <

50.

51.1

51.7

52.3

52.9

53.5

54.0

54.5

54.9

55.3

55.7

Proprietors’ incom e...................
Business and professional...
F a rm .........................................

96.1
57.6
38.5

93.
61.
31.

92 A
60.2
32.6

89
60
29

86.9
61.2
25.7

90.0
61.9
28.1

93.1
62.5
30.6

93.2
62.5
30.7

91.7
62.5
29.2

91.6
62.5
29.1

91.5
62.5
29.0

88.7
62.7
26.0

85.0
62.
22.2

81.2
62.8
18.4

49.4

Rental income.............................

26.1

26.

25.5

26,

26.7

26.6

26.6

26.6

26.7

26.8

26.9

27.0

27.0

27.0

D ividends.....................................

29.6

32.

32.1

32,

33.0

33.1

33.2

33.4

33.5

33.6

32.7

33.9

33.

33.5

Personal interest incom e...........

90.6 103.

100.4 102,

103.5

104.4

105.3

106.9

108.0

109.5

111.1

111.9

112.5

112.7

Transfer paym ents.....................

117. 139.

134.6 135,

137.0

142.5

143.6

146.0

147.6

149.8

156.1

158.6

165.5

168.1

47.9

48.5

48.4

48.6

48.9

48.5

48.4

49.5

49.2

49.2

L ess: Personal contributions

for social insurance........

42.

47.9

47.0

47.2

47.6

Nonagricultural income............. 1,008.0 1,109.0 1,071.6 1,083.1 1,096.6 1,106.8 1,121.7 1,126.8 1,137.4 1,145.7 1,145.2 1,151. 41 ,154.3 1,160.1 1,165.1
Agricultural income....................
47.1 41.5 45.5 42.1 38.6 36.8
39.3
39.5
39.3
36.8
33.3
29.5
37.1
40.6
40.4
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.




A 56

FLOW OF FUNDS □ MAY 1975
SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual ra te s; in billions o f dollars)
1974
Transaction category, or sector

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974
HI

H2

Funds raised, by type and sector
1 Total funds raised by nonfinancial sectors..................
2 E x c lu d in g e q u i t i e s .....................................................

69.9
69.6

67.9
66.9

82.4
80.0

95.9
95.9

91.8
88.0

98.2 147.4 169.4 187.4 175.7 190.8 160.6
92.5 135.9 158.9 180.1 172.4 185.5 159.3

1
2

3
4
5

U.S. G overnment............................................................
Public debt securities..................................................
Budget agency issues..................................................

1.8
1.3
.5

3.6
2.3
1.3

13.0
8.9
4.1

13.4
10.3
3.1

-3 .6
- 1 .3
-2 .4

12.8
12.9
-.1

19.6
21.1
-1 .5

3
4
5

6
7
8

AU other nonfinancial sectors........................................
Corporate equities.......................................................
D e b t i n s t r u m e n t s ....................... ...........................

68.1
.3
67.9

64.3
1.0
63.3

69.4
2.4
67.0

82.5
*
82.6

95.5
3.9
91.6

85.4 121.9 152.1 177.7 162.7 184.5 141.0
5.8
11.5
7.2
10.5
3.3
5.4
1.2
79.7 110.4 141.6 170.4 159.4 179.2 139.7

6
7
8

9
10
11
12
13
14
15
16
17
18
19
20
21

D ebt capital instrum ents...........................................
State and local government securities.................
Corporate and foreign b o n d s ..............................
M ortgages.................................................................
Hom e m ortgages ..................................................
Other residential ...................................................
Comm ercial ...........................................................
F arm ......................................................................
Other private credit....................................................
Bank loans n.e.c......................................................
Consumer credit......................................................
Open-market p ap er................................................
O th er.........................................................................

38.8
7.3
5.9
25.6

38.9
5.6
11.0
22.3

45.7
7.8
15.9
22.0

50.6
9 .5
14.0
27.1

50.6
9.9
13.0
27.7

57.6
11.2
20.6
25.7

84.2
17.6
19.7
46.9

94.9
14.4
13.2
67.3

97.1
13.7
10.2
73.2

100.9
17.8
20.2
62.9

1 5 .4
3 .6
4 .4
2 .2

84.9
16.1
21.7
47.2

1 1 .7
3 .1
5 .7
1 .8

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

92.9
17.0
20.9
55.0

15.1
3 .4
6 .4
2 .2

1 5 .7
4 .7
5 .3
1 .9

1 2 .8
5 .8
5 .3
1 .8

29.0
14.1
9 .6
-.3
5.6

24.4
10.7
6.4
1.0
6.2

2 6 .1
8 .8
1 0 .0
2 .0

21.3
9.5
4.5
2.1
5.1

32.0
13.1
10.0
1.6
7.2

41.0
15.3
10.4
3.3
12.0

22.1
6.4
6 .0
3.8
5.9

26.3
9.3
11.2
- .9
6.6

3 9 .6
1 0 .3
1 4 .8
2 .6

4 3 .3
8 .4
1 7 .0
4 .4

3 5 .8
7 .3
1 5 .7
4 .1

2 6 .9
7 .7
7 .0
5 .5

46.7
21.8
19.2
-1 .6
7.3

73.4
38.6
22.9
1.8
10.0

3 1 .3
7 .5
1 1 .3
4 .8
6 6 .5
2 9 .9
9 .6
14.9
12.1

78.2
42.1
12.7
15.4
8.1

54.8
17.7
6.6
14.4
16.0

22
23
24
25
26
27
28
29
30

By borrowing sector....................................................
D e b t i n s t r u m e n t s ..................................................
Foreign......................................................................
State and local governments................................
H ouseholds...............................................................
Nonfinancial business............................................
F arm ........................................... ...........................
Nonfarm noncorporate ........................................
C orporate ..............................................................

68.1
67.9
2.4
7.7
28.3
29.5

64.3
63.3
1.8
6.3
22.7
32.5

69.4
67.0
4 .0
7.9
19.3
35.7

82.5
82.6
2.7
9.8
30.0
40.1

95.5
91.6
3.2
10.7
31.7
46.0

85.4 121.9 152.1 177.7 162.7 184.5 141.0
79.7 110.4 141.6 170.4 159.4 179.2 139.7
2.7
4 .6
4 .7
7.7
15.7 20.1
11.3
11.3
15.8
17.8
14.2
12.3
16.0
15.7
23.4 39.8
63.1
72.8 42.5 47.5
37.6
42.3 48.2
59.6 77.6 85.4 95.6 75.1

3 .3
5 .7
2 0 .4

3 .1
5 .4
2 4 .0

3 .6
5 .0
2 7 .2

2 .8
5 .6
3 1 .7

3 .2
7 .4
3 5 .5

3 .2
5 .3
3 3 .8

4 .1
8 .7
3 5 .4

4 .9
1 0 .4
4 4 .4

8 .6
9 .3
5 9 .7

7 .4
6 .7
71 .3

7 .3
7 .2
8 1 .2

7 .5
6 .3
6 1 .4

22
23
24
25
26
27
28
29
30

31
32
33

C o r p o r a te e q u i t i e s ..................................................

.3
.3
*

1.0
-.3
1.3

2.4
.1
2.4

*
.2
-.2

3.9
.5
3.4

5.8
.1
5.7

11.5
*
11.4

10.5
-.4
10.9

7.2
-.2
7.4

3 .3
-.2
3.5

5.4
- .2
5 .6

1.2
-.2
1.4

31
32
33

2 .7
29.4
20.4
-1 .0

1.5
33.8
25.3
-.4

4 .0
38.1
29.6
1.2

2.8
39.9
31.5
-1 .1

3.7
49.4
38.9
.4

2 .7
48.0
39.5
2.8

4 .6
59.6
46.8
3.2

4.3
70.5
55.3
-.3

7.5
85.1
67.2
- 1 .7

15.5
88.9
74.7
-4 .8

101.2
86.7
- 2 .3

11.2
76.5
62.8
- 7 .2

34
35
36
37

70.9
2.8

68.3
4 .0

81.3
11.8

97.1
14.5

91.4
-4 .0

169.7 189.0 180.5
17.6
11.4
17.7

193.1
8.6

167.8
26.8

38
39

173.1 190.6 188.1 207.6 226.7 224.2 253.5 293.0 334.7 330.7 331.6 329.7
110.3 118.5 128.4 140.4 154.3 166.0 178.9 194.3 211.0 220.4 218.2 222.6
62.8
72.2 59.7 67.2 72.4
58.2 74.6 98.7 123.7 110.3 113.5 107.1

1
2
3

81.1
71.4 99.4 133.6 157.9 131.4 148.7 114.1
- 8 . 7 - 1 3 . 2 - 2 4 . 8 - 3 4 .9 - 3 4 . 2 - 2 1 .1 - 3 5 . 2 - 7 . 1

4
5

Foreign......................................................................
Corporate business.................................................
Totals including equities
34
Foreign......................................................................
35
Nonfinancial business............................................
36
C orporate.............................................................
37 Memo: U.S. Govt, cash balance...........................
Totals net o f changes in U.S. Govt, cash balances
38 Total funds raised ...........................................................
39
By U.S. G overnm ent................................................

25.5
26.0
-.5

95.5 144.2
10.0 22.3

17.3
13.9
3.4

9 .7
7.7
2 .0

6.3
5.1
1.2

13.0
13.1
- . 1

19.9

9
10
11
12
13
14
15
16
17
18
19
20
21

Private domestic net investment and borrowing in credit markets
Total, households and business
1
T o t a l c a p i t a l o u t l a y s i ..........................................
2
Capital consumption 2...............................................
3
N et physical investm ent............................................
N et funds raised..........................................................
Excess net investment 3.............................................
Total business
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 investm ent............................................

57.8
5.1

56.5
15.7

57.5
2.2

83.6
50.5
33.1

96.4
54.2
42.3

93.4
58.5
35.0

N et debt funds raised ................................................
Corporate equity issues..............................................
Excess net investment 3..............................................
Corporate business
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 investm ent............................................

29.5
*
3 .7

32.5
1.3
8.5

35.7
2.4
-3 .2

62.3
35.2
27.1

76.5
38.2
38.3

71.4
41.5
29.9

75.0
45.1
29.9

83.7
49.8
33.9

20.4
*
6 .7

24.0
1.3
13.0

27.2
2 .4
.4

31.7
-.2
- 1 .6

35.5
3.4
-5 .0

18
19
20

N et debt funds raised .................................................
C orporate equity issues..............................................
Excess net investment 3.............................................
Households
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 investm ent............................................

89.6
59.9
29.7

21
22

N et funds raised..........................................................
Excess net investment 3.............................................

28.3
1.4

4
5
6
7
8
9
10
11
12
13
14
15
16
17

161.4
105.3
56.1

6
7
8

75.1
40.1
46.0 42.3 48.2 59.6 77.6 85.4 95.6
1.4
5.6
-.2
11.4
10.9
7.4
3.4
5.7
3.5
- 5 . 2 - 1 0 . 0 - 1 4 . 5 - 2 2 .8 - 2 4 . 5 - 1 9 .8 - 2 7 .9 - 3 5 . 4 - 2 0 . 4

9
10
11

87.2 102.5 121.5 125.8 126.0 125.6
74.2
57.7 63.0 67.5 72.5 70.8
55.2 51.4
29.5 39.4 54.0 53.3

12
13
14

81.2 61.4
33.8
35.4 44.4 59.7 71.3
1.4
5.6
7.4
3.5
5.7
11.4
10.9
- 9 . 1 - 1 7 .3 - 1 5 .8 - 1 3 .1 - 2 1 . 4 - 3 1 . 6 - 1 1 .3

15
16
17

94.2
64.3
29.9

94.6 109.7 117.8 116.2 136.4 158.8 174.1 166.6 164.9 168.3
69.9
77.2 84.8 91.4 98.6 106.1 115.7 117.3 117.3 117.3
51.0
52.7 58.4 49.3 47.6
24.7 32.5
33.0 24.7 37.8

18
19
20

22.7
7.2

19.3
5.4

37.6
13.3

21
22

1 Capital outlays are totals for residential and nonresidential fixed
capital, net change in inventories, and consumer durables, except outlays
by financial business.
2 Capital consumption includes amounts for consumer durables and
excludes financial business capital consumption.
3 Excess o f net investment over net funds raised.
N o t e . —Full statements for sectors and transaction types are available
on a quarterly basis and annually for flows and for amounts outstanding.
Requests for these statements should be addressed to the Flow o f Funds
Section, Division o f Research and Statistics, Board o f Governors o f the
Federal Reserve System, W ashington, D .C. 20551.




69.9
- 2 .7

97.9 108.9 108.0 117.1
63.2 69.5
74.6 80.3
34.7 39.4 33.5 36.8

30.0
2.5

31.7
1.3

84.0
53.6
30.4

23.4
1.4

134.3 160.5 164.1 166.8
88.2 95.2 103.1 100.9
46.0 65.3
61.0 65.9

72.8
39.8 63.1
- 2 .1 -1 0 .4 -1 4 .4

42.5
6.8

47.5
.2

Funds raised b y typ e and sector. Credit flows included here are the
net amounts raised by households, nonfinancial business, governments,
and foreigners. All funds raised by financial sectors are excluded. U.S.
Government budget issues (line 5) are loan participation certificates
issued by CCC, Export-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 on p. A-57, line 11. C orporate equity issues are net
cash issues by nonfinancial and foreign corporations. Mortgages exclude
loans in process. Open m arket paper is commercial paper issued by
nonfinancial corporations plus bankers’ acceptances.

MAY 1975 □ FLOW OF FUNDS

A 57

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1974
Transaction category, or sector

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974
HI

1 Total funds advanced in credit markets to
nonfinancial sectors.................................................
By public agencies and foreign
2 Total net advances...........................................................
3
U.S. Government securities......................................
4
Residential mortgages.................................................
5
FHLB advances to S&L’s .........................................
6
O ther loans and securities.........................................
By agency—
7
U.S. Governm ent........................................................
8
Sponsored credit agencies..........................................
9
M onetary authorities..................................................
10
Foreign..........................................................................
11 Agency borrowing not included in line 1...................

H2

69.6

66.9

80.0

95.9

88.0

92.5 135.9

8.9
3.7
.4
.7
4.1

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

15.7
.7
4.6
4.0
6.3

28.1
15.9
5.7
1.3
5.2

41.7
33.8
5.7
-2 .7
4.9

18.3
8.4
5.2
*
4 .6

33.2
11.0
7.6
7.2
7.5

49.0
8.8
13.9
6.7
19.7

39.7
6.9
11.7
6.8
14.3

58.3
10.8
16.1
6.5
25.0

2
3
4
5
6

2.8
2.2
3.8
.1
2.1

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
8.9
4.2
-.3
8.8

2.8
10.0
5.0
10.3
8.2

3.2
3.2
8.9
26.4
3.8

2 .6
7.0
.3
8 .4
6.2

3.0
20.3
9.2
.7
19.6

5.9
24.0
6.2
12.9
21.6

2.4
20.3
6.1
10.9
16.8

9 .4
27.7
6.2
15.0
26.5

7
8
9
10
11

87.2
13.3
9.5
13.8
15.5
35.9
.9

81.1
4.8
9.9
12.5
15.7
42.2
4 .0

72.6
5.2
11.2
20.0
12.8
24.6
1.3

98.1 146.7 166.5 145.0 162.5
-4 .4
15.2
18.4 25.1
16.3
17.6
14.4
13.7
17.0
17.8
13.2
19.8
18.9
19.5
10.1
29.1
44.6 44.1
25.0 31.4
33.7
59.5 87.4 64.9
85.0
*
-2 .7
7.2
6.7
6.8

127.6
34.0
16.1
20.6
18.6
44.8
6.5

12
13
14
15
16
17
18

1 0 3 .7

19
20
21
22
23

- .

158.9 180.1

172.4 185.5 159.3

12
13
14
15
16
17
18

Private domestic funds advanced
Total net advances...........................................................
U.S. Government securities......................................
State and local obligations........................................
Corporate and foreign bonds...................................
Residential m ortgages................................................
O ther mortgages and lo an s.......................................
Less: FHLB advances................................................

62.8
*
7.3
6.0
18.6
31.6
.7

59.8
5.4
5.6
10.3
12.0
27.4
.9

68.1
5.7
7.8
16.0
13.0
23.1
-2 .5

19

P r iv a te f in a n c ia l i n t e r m e d i a t i o n
C redit m arket funds advanced by private financial
institutions .................................................................

6 2 .9

4 5 .4

6 3 .5

75.3

5 5 .3

7 4 .9

1 1 0 .7

1 5 3 .4

1 5 8.8

1 2 9.2

1 5 4 .8

17.5
7.9
15.5
4.5

35.9
15.0
12.9
-.3

38.7
15.6
14.0
7.0

18.2
14.5
12.7
9.9

35.1
16.9
17.3
5.7

50.6
41.4
13.3
5.3

70.5
49.3
17.7
15.8

86.6
35.1
22.1
15.0

61.8
27.6
34.1
5.7

87.8
35.2
28.1
3.8

1

20
21
22
23

Commercial banking...................................................
Other finance................................................................

28.7
14.3
13.6
6.2

24
25
26

Sources o f fu n d s ...............................................................

6 2 .9

4 5 .4

6 3 .5

75.3

5 5 .3

7 4 .9

1 1 0 .7

1 5 3.4

15 8 .8

12 9.2

15 4 .8

1 0 3 .7

Private domestic deposits..........................................
Credit market borrow ing..........................................

38.4
7.9

22.5
3.2

50.0
-.4

45.9
8.5

2.6
18.8

63.2
-.3

90.3
9.3

97.5
20.3

84.9
31.6

71.9
16.6

94.6
23.3

49.1
9.9

24
25
26

27
28
29
30
31

O ther sources...............................................................
Foreign funds...........................................................
Treasury balances...................................................
Insurance and pension reserves...........................
Other, n e t.................................................................

16.6
.8
-1 .0
11.4
5.4

19.8
3.7
-.5
13.6
3.0

13.9
2.3
.2
12.0
-.6

21.0
2.6
-.2
11.4
7.2

34.0
12.0
9.3 - 8 . 5
*
2.9
10.8
13.1
4.4
13.8

11.0
-3 .2
2.2
9.1
2.9

35.5
5.2
.7
13.1
16.5

42.4
6.5
-1 .0
16.7
20.2

40.8
11.9
-5 .3
29.0
5.1

37.0
10.5
-2 .3
23.0
5.8

44.6
13.3
-8 .3
35.1
4 .5

27
28
29
30
31

32
33
34
35
36
37

Direct lending in credit markets..................................
U.S. Government securities......................................
State and local obligations........................................
Corporate and foreign b o n d s...................................
Commercial p ap er.......................................................
O th e r..............................................................................

7.9
2.9
2.6
1.0
1.5
-.1

17.6
8.4
2.6
2 .0
2.3
2.3

4.2
-1 .4
-2 .5
4.6
1.9
1.7

20.4
8.1
-.2
4.7
5.8
2.1

44.5
17.0
8 .7
6.6
10.2
2 .0

-2 .6 -3 .2
- 9 . 0 -1 4 .0
-1 .2
.6
9.3
10.7
-4 .4
-.6
1.4
1.5

13.7
1.6
2.1
5.2
4 .0
.8

39.3
18.8
4.4
1.1
11.3
3.8

32.4
17.9
12.5
- 3 .0
2.1
2.9

30.9
14.5
8 .2
- 1 .0
7.3
1.9

33.8
21.2
16.8
- 5 .1
-3 .1
3.9

32
33
34
35
36
37

38
39
40
41
42

Deposits and currency....................................................
Time and savings accounts........................................
Large negotiable C D ’s ..........................................
Other at commercial b an k s..................................

40.5
32.7
3.6
16.0
13.2

24.4
20.3
- .2
13.3
7.3

52.1
39.3
4.3
18.3
16.7

48.3
5.4
33.9 - 2 . 3
3.5 - 1 3 . 7
17.5
3.4
12.9
8 .0

66.6
56.1
15.0
24.2
16.9

93.7
81.0
7.7
32.9
40.4

101.9
85.2
8.7
30.6
45.9

88.8
76.3
18.5
29.5
28.2

77.9
70.5
24.2
24.6
21.7

103.2
88.8
30.3
32.0
26.6

52.6
52. 1
18.0
17.1
16.9

38
39
40
41
42

43
44
45

D emand deposits.....................................................
C urrency...................................................................

7.8
5.6
2.1

4.1
2.1
2.0

12.8
10.6
2.1

14.5
12.1
2.4

7.7
4.8
2.8

10.5
7.1
3.5

12.7
9.3
3.4

16.7
12.3
4 .4

12.6
8.6
3.9

7.4
1.4
6.0

14.3
5.8
8.6

.5
-2 .9
3 .4

43
44
45

46

Total of credit market instr., deposits, and currency.

48.4

42.0

56.3

68.7

49.9

64.1

90.5 115.7 128.1 110.2 134.1

47
48
49

Public support rate (in per cent)..............................
Private financial intermediation (in per cent).........
Total foreign funds.....................................................

12.8
100.1
.8

17.9
75.9
2.1

14.1
93.2
4.3

12.7
86.4
2.9

17.8
68.3
9.1

35.9
20.1
4 0.0
7.7

P r iv a te d o m e s t i c n o n f in a n c ia l in v e s t o r s

30.4 30.7
11.5
103.1 112.8 104.5
1.8 23.2
13.6

18.4
95.4
7.2

86.3

46

28.4
89.1
24.9

21.4
95.3
21.4

36.6
81.3
28.3

47
48
49

6.1
1.6
4 .5
5.0
1.0

5.9
-.8
6.7
8.9
- 3 .0

6 .2
3.9
2.3
1.2
5 .0

1
2
3
4
5

Corporate equities not included above
1
2
3
4
5

M utual fund shares.....................................................

3.5
3.2
.3
6.1
-2 .6

4.8
3.7
1.1
6.0
-1 .2

5.5
3.0
2.5
9.1
-3 .6

Notes
Line
1. Line 2 o f p. A-56.
2. Sum of 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. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Lines 39 + 44.
26. Excludes equity issues and investment com pany 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.




6.4
5.8
.6
10.8
-4 .4

10.0
4.8
5.2
12.2
-2 .2

10.4
2.6
7.7
11.4
-1 .0

14.8
1.1
13.6
19.3
- 4 .5

12.9
-.7
13.6
16.0
- 3 .1

8.0
-1 .6
9.6
13.4
-5 .4

29. Demand 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 amounts acquired by private finance. Line 37
includes mortgages.
39+44. See line 25.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Line 1 and 3. Includes issues by financial institutions.

A 58

U.S. BALANCE OF PAYMENTS □ MAY 1975
1.

U.S. BALANCE OF PAYMENTS SUMMARY

(In millions o f dollars. Quarterly figures are seasonally adjusted unless shown in italics.)
1973
Credits ( + ) , debits ( —)

Line

1972

1973

1974

1974?
IV

III

1
2
3

Merchandise trade balance 1.
Exports..............................
Im ports..............................

- 6 ,9 8 6
48,768
-55,754

471 -5 ,8 8 1
70,277 97,081
-69,806 -1 0 2 ,9 6 2

4
5

Military transactions, n e t..........
Travel and transportation, n e t.

-3 ,6 0 4
-3 ,0 5 5

- 2 ,2 6 6
- 2 ,7 1 0

-2 ,0 9 9
-2 ,4 3 5

-1 2 3
-6 3 0

-5 0 0
-5 3 1

-6 6 8
-7 2 6

-4 7 3
-5 6 6

-4 5 8
-6 1 2

6
7
8
9

Investment income, net 2..........................................
U.S. direct investments abroad 2 ...................
Other U.S. investments ab road.......................
Foreign investments in the United States 2 .

4,526
6,925
3,494
-5 ,8 9 3

5,291
9,679
9,415
18,240
4,569
7,703
-8 ,6 9 3 -16 ,2 6 3

1,378
2,688
1,292
- 2 ,6 0 2

3,104
4,650
1,499
-3 ,0 4 5

1,870
4,546
1,836
- 4 ,5 1 2

2,282
4,824
2,197
- 4 ,7 3 9

2,422
4,220
2,170
-3 ,9 6 8

10

O ther services, net 2 ..................................................

1,032

Balance on goods and services N ot seasonally adjusted . . .

11

Remittances, pensions, and other transfers.

12

Balance on goods, services, and remittances.
N ot seasonally adjusted .............................

13
14
15

U.S. Governm ent grants (excluding military).
Balance on current account...

17
18
19
20
21
22
23
24
27
26

U.S. Government capital flows excluding nonscheduled
repayments, net 5................................................... .....................
Nonscheduled repayments o f U.S. Government assets..........
U.S. G overnment nonliquid liabilities to other than foreign
official reserve agencies..............................................................
Long-term private capital flows, n e t...........................................
U.S. direct investments abroad............................................
Foreign direct investments in the United States..............
Foreign securities....................................................................
U.S. securities other than Treasury issues.........................
Other, reported by U.S. b a n k s............................................
O ther, reported by U.S. nonbanking concerns.................
Balance on current account and long-term capital 5.
N ot seasonally adjusted ..........................................

3,110

3,540

3,926

901

918

992

984

4,327

3,191

2,736

2,816

-2 0 6

-2 4 7

3 ,8 0 0

3 ,9 4 8

826

-4 5

- 3 ,0 3 0

2 ,3 1 7

-4 6 3

-1,624

-1,943

-1 ,7 7 5

-7 1 7

-3 9 0

-4 6 7

-4 5 6

-7 ,6 3 4

2,383

1,416

2,019

2,426

-6 7 3

-7 0 3

363

3 ,0 7 7

3 ,5 8 4

-5 1 4

- 3 ,5 0 2

1,8 4 8

-5 ,4 4 1

- 4 4 7 4 -2 ,5 6 1

-1 ,4 3 5

-7 7 2

-6 7 3

- 4 ,0 2 5

1,572

4 -1 3 5

- 2 ,1 0 8

2 ,6 5 3

- 1 ,4 7 5

-3 1 0

1 ,0 0 5

- 1 ,9 9 0

- 4 ,2 3 9

1 ,1 9 9

408 - 1 ,0 6 6
1

41,297

311

-1 8 6

-1,014

53
504
-6 2 7
1,281
-6 4 6
687
-2 1
-1 7 0

273
-1,039
-1,5 2 7
1,677
-3 1 3
419
-9 0 2
-3 9 3

189
-2 ,4 0 2
-2 ,0 4 7
-8 9
-3 0 6
168
68
-1 9 6

119
-4,6 6 1
-2 ,6 0 0
-5 6 1
-6 8 6
-7 5
-3 3 1
-4 0 8

-2,173

-1,933

-9 ,8 0 7

450

54
55

1,111
62
- 4 ,8 7 2
2,537
-8 0 7
4,051
-6 4 7
-2 0 0

634
-7 ,5 9 8
-6 ,8 0 1
2,308
- 1 ,9 5 1
1,199
- 1 ,1 8 6
-1 ,1 6 7

204
-1,451
-1,374
712
-5 2 5
670
-5 0 4
-4 3 0

-11,235

- 1 ,0 2 6 -1 0 ,5 8 0

-7 4 1

1,719

999

-2,5 6 3

-3 ,8 7 4

2 ,1 2 0

- 2 ,5 3 9

-5 ,8 6 6

-6 ,4 4 1

- 3 ,7 1 9

-1,253
-1,119
-6 6 4
530

-3 ,9 9 4
-2 ,8 1 7
-1,591
414

-5,2 9 6
-5,311
-6 9 5
710

-1 ,4 2 7
-1,6 5 3
-2 0 7
433

-2 ,2 3 8
-2 ,4 4 2
40
164

5,197

1,125

1,305

1,463

838

1,592

-13,856

-7 ,6 0 6 -18,338

-8 6 9

-9 7 0

-8 9

-6 ,3 9 6

-1 4 4

-4 ,4 6 3

-6 ,5 1 2

-6 ,7 8 4

- 5 ,7 7 3

-5 ,6 3 7

3,502
- 1 ,2 4 7
-7 4 2
-5 0 5
4,749
3,716
104
929

2,302
-1 ,9 4 4
-1,103
-8 4 1
4,246
2,982
377
887

10,268
-5 ,4 6 4
-5 ,4 4 5
-1 9
15,732
12,655
151
2,926

3,530
-4 9 3
-4 7 2
-2 1
4,023
3,227
384
412

2,016
-2 ,7 3 2
-2,3 6 8
-3 6 4
4,748
4,663
-5 3 0
615

1,874
-1 ,1 9 7
-1,261
64
3,071
2,161
297
613

4,143
133
-4 3 1
564
4,010
2,896
221
893

2,235
-1,668
-1,385
-2 8 3
3,903
2,935
163
805

Official reserve transactions balance, financed by changes in— . . . .
N ot seasonally adjusted ...................................................................

-1 0 ,3 5 4

-5 ,3 0 4

- 8 ,0 7 0

2,661

1,046

-4 ,5 2 2

1 ,4 9 5

-3 2 0

- 4 ,1 0 5

-4 ,2 7 7

- 1 ,6 0 9

-3 ,8 5 1

Liquid liabilities to foreign official agencies..............................
Other readily m arketable liabilities to foreign official agen­
cies 6..............................................................................................
Nonliquid liabilities to foreign official reserve agencies re­
ported by U.S. G ovt...................................................................
U.S. official reserve assets, n e t.....................................................
G o ld ...........................................................................................
SDR’s ........................................................................................
Convertible currencies...........................................................
Gold tranche position in I M F .............................................

9,734

4,452

8,253

-2 ,1 4 5

-5 5 7

4,255

1,263

3,295

399

1,118

596

-3 5 4

-2 7 7

182

61

630

189
32
547
-7 0 3
35
153

-4 7 5
209

655
-1 ,4 3 4

-1 4 7
-1 5

-2
-2 1 0

443
-3 5 8

-1
-1 ,0 0 3

215
137

9
233
-3 3

-1 7 2
3
-1,265

-15

-1
-2 0 9

-2 9
-8 5
-2 4 4

-1 2 3
-1 5 2
-728

-2 0
241
-8 4

4,189

2,772

1,790

487

393

542

352

504

4,521

8,124

548

945

N et liquidity, not seasonally adju sted..

- 1 4 ,5 6 6

- 7 ,6 0 6

-1 8 ,3 3 8

-8 9

-1 4 4

- 6 ,7 8 4

-5 ,7 7 3

- 5 ,6 3 7

Official reserve transactions , N .S.A .

- 1 1 ,0 6 4

- 5 ,3 0 4

- 8 ,0 7 0

2 ,9 8 2

1,4 9 5

-4 ,1 0 5

- 1 ,6 0 9

- 3 ,8 5 1

Liquid private capital flows, n e t.................................
Liquid claims...........................................................
Reported by U.S. banks...............................
Reported by U.S. nonbanking concerns..
Liquid liabilities— .................................................
Foreign commercial b a n k s. .......................
International and regional organizations.
Other foreigners............................................

53

238
-9 8
-3 ,5 1 7
383
-6 5 4
4,507
-1 ,1 5 8
341

-4 ,2 7 6 -1 2 ,9 5 5
-3 ,9 4 0 -1 2 ,2 2 3
-1 ,2 4 0 - 2 ,4 5 3
904
1,721

Net liquidity balance...............
N ot seasonally adjusted . .

52

- 1 ,7 0 5 - 2 ,9 3 8
289
137

-1 ,5 4 1
-1 ,4 5 7
-3 0 5
221
710
-1 ,7 9 0

Nonliquid short-term private capital flows, n et.............
Claims reported by U.S. banks.................................
Claims reported by U.S. nonbanking concerns. . .
Liabilities reported by U.S. nonbanking concerns.
Allocations o f Special Drawing Rights (SDR’s )...........
Errors and omissions, n e t...................................................

51

-2 ,4 7 4 -1 ,5 5 8
24,731
26,217
-27,205 -27,775

-6 ,0 0 9

N ot seasonally a d ju sted .,

16

1,210
- 1 7 5 - 1 ,6 7 4
20,216 22,212 23,921
-19,006 - 2 2 ,3 8 7 -25,595

IV?

Memoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14)..........................................................................
Reinvested earnings o f foreign incorporated affiliates of
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 2 1)........................................

-2,303

2 ,9 8 2

Balances excluding allocations o f SD R’s :

For notes see opposite page.




MAY 1975 o FOREIGN TR A D E ; U.S. RESERVE ASSETS

A 59

2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions o f dollars)
Im ports 2
197 2

1973

1974

1975

1972

1973

M onth:
Ja n ...
F e b ...
M ar...
A p r...
M a y ..
Ju n e ..
July..,
A ug...
Sept...
O c t.. .
N ov...
D e c...

4.074
3,824
3,869
3,820
3,882
3,971
4.074
4,197
4,176
4,316
4,473
4,558

4,955
5,070
5,311
5,494
5,561
5,728
865
042
420
585
879
949

7,150
7,549
7,625
8,108
7,652
8,317
8,308
8,380
8,396
8,673
8,974
8,862

9,412
c8,789
8,716

4,436
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002

5,244
5,483
5,414
5,360
5,703
5,775
5,829
6,011
5,644
5,996
6,684
6,291

6,497
7,317
7,742
8,025
8,265
8,573
8,918
9,262
8,698
8,769
8,965
9,250

c9 ,622
c7,872
7,336

-361
-6 4 9
-6 4 7
-5 9 6
-6 0 4
-4 9 7
-4 9 1
-5 3 0
-4 3 6
-4 2 1
-6 7 5
-4 4 4

-2 8 9
-4 1 3
-1 0 3
+ 133
-1 4 2
-4 7
+ 37
+ 32
+ 776
+ 589
+ 195
+ 658

+653
+ 232
-1 1 6
+ 83
-6 1 0
-2 5 7
-6 1 1
-8 8 2
-3 0 2
-9 6
+9
-3 8 8

c —210
C+917
+ 1,380

Q uarter:
I
I I
I I I....
I V .. . .

11,767
11,673
12,447
13,347

15,337
16,783
18,327
20,413

22,324
24,077
25,084
26,509

26,917

13,403
13,370
13,903
14,888

16,140
16,838
17,483
18,972

21,555
24,863
26,878
26,984

24,830

- 1 ,6 5 7
- 1 ,6 9 7
- 1 ,4 5 6
-1 ,5 4 0

-8 0 4
-5 6
+ 845
+ 1,441

+769
-7 8 6
-1 ,7 9 4
-4 7 5

+ 2 ,0 8 7

Y ear4. ..

49,208

70,823

97,907

55,555

69,476

C100,218

- 6 ,3 4 7

+ 1,348

-2,311

1 Exports o f domestic and foreign merchandise (f.a.s. value basis);
excludes D epartm ent o f Defense shipments under military grant-aid
programs.
2 General imports, which includes imports for immediate consumption
plus entries into bonded warehouses.
3 Beginning with 1974 data, imports are reported on an f.a.s. trans­
actions value basis; prior data are reported on a Customs import value

19743

Trade balance
1975

1972

1973

19743

1975

basis. For calender year 1974, the f.a.s. im port transactions value was
$100.2 billion, about 0.7 per cent less than the corresponding Customs
im port value of $101.0 billion.
4 Sum of unadjusted figures.
N ote.—Bureau of the Census data. Details may not add to totals be­
cause of rounding.

3. U.S. RESERVE ASSETS
(In millions of dollars)
Gold stock i
T otal2

Treasury

C on­
vertible
foreign
curren­
cies

18,753
17,220
16,843
16,672

16,947
16,057
15,596
15,471

16,889
15,978
15,513
15,388

116
99
212
432

1,690
1,064
1,035
769

1 9 6 5 ...
15,450
1 9 6 6 ...
14,882
1 9 6 7 ...
14,830
1 9 6 8 ...
15,710
1 9 6 9 ... 5 16,964

13,806
13,235
12,065
10,892
11 ,859

13,733
13,159
11 ,982
10,367
10,367

781
1 ,321
2,345
3,528
52,781

863
326
420
1 ,290
2,324

1 9 7 0 ...
14,487
1971 . . . 612,167
19727. .
13,151
19738 . .
14,378
1974. . .
15,883

11,072
10,206
10,487
11,652
11,652

10,732
10,132
10,410
11,567
11,652

629
6 276
241
8
5

1,935
585
465
552
1,852

End of
year

Total

1 9 6 1 ...
1 9 6 2 ...
1 9 6 3 ...
1 9 6 4 ...

Reserve
position
in
IM F

Gold stock
SD R ’s 3

1974
Apr.. ..
M a y ...
J u n e ...
J u ly .. . .
A u g .. .
Sept---O c t.. . .
N ov__
D ec.. . .
851
1,100
1,958
2,166
2,374

1 Includes (a) gold sold to the United States by the IM F with the right
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. For corresponding
liabilities, see Table 5.
2 Includes gold in Exchange Stabilization Fund.
3 Includes allocations by the IM F of Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SD R ’s.
4 For holdings o f F.R. Banks only, see p. A-9.
5 Includes gain o f $67 million resulting from revaluation o f the German
mark in Oct. 1969, o f which $13 million represents gain on mark holdings
at time of revaluation.
6 Includes $28 million increase in dollar value o f foreign currencies
revalued to reflect market exchange rates as o f Dec. 31, 1971.
7 Total reserve assets include an increase o f $1,016 million resulting
from change in par value o f the U.S. dollar on May 8, 1972; o f which,

NOTES TO TABLE 1 ON OPPOSITE PAGE:
1 Adjusted to balance o f payments basis; excludes exports under U.S.
military agency sales contracts, and imports o f U.S. military agencies.
2 Fees and royalities from U.S. direct investments abroad or from
foreign direct investments in the United States are excluded from invest­
ment income and included in “ Other services.”
3 Includes special military shipments to Israel that are excluded from the
“ net exports o f goods and services” in the national income and products
(G N P) accounts o f the United States.
4 Includes under U.S. Government grants $2 billion equivalent, rep­




End of
month

1975—
Feb

T o tal2

Treasury

Con­
vertible
foreign
curren­
cies4

14,642
14,870
14,946
14,912
15,460
15,893
15,890
15,840
15,883

11,652
11,652
11,652
11,652
11,652
11,652
11,652
11,652
11,652

11,567
11,567
11,567
11,567
11,567
11,567
11,567
11,567
11,652

9
66
94
12
224
246
193
43
5

824
989
1,005
1,021
1,384
1,713
1,739
1,816
1,852

2,157
2,163
2,195
2,227
2,200
2,282
2,306
2,329
2,374

15,948
16,132
16,256
9 16,183

11,635
11,621
11,620
11,620

11,635
11,621
11,620
11,620

2
2
19
2

1,908
2,065
2,194
9 2,168

2,403
2,444
2,423
9 2,393

Total

Reserve
position
in
IM F

SD R ’s 3

total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IM F $33 million, and SD R ’s $155 million.
8 Total reserve assets include an increase o f $1,436 million resulting
from change in par value of the U.S. dollar on Oct. 18, 1973; o f which,
total gold stock is $1,165 million (Treas. gold stock $1,157 million)
reserve position in IM F $54 million, and SD R ’s $217 million.
9 Beginning July 1974, the IM F adopted a technique for valuing the
SDR based on a weighted average o f exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position
in the IM F are also valued on this basis beginning July 1974. A t valua­
tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end
of Apr. amounted to $2,346 million, reserve position in IM F, $2,108
million, and total U.S. reserve assets, $16,076.
N ote.—See Table 20 for gold held under earmark at F.R . Banks for
foreign and international accounts. Gold under earm ark is not included
in the gold stock o f the United States.

resenting the refinancing of economic assistance loans to India; a cor­
responding reduction of credits is shown in line 16.
5 Includes some short-term U.S. Govt, assets.
6 Includes changes in long-term liabilities reported by banks in the
United States and in investments by foreign official agencies in debt
securities of U.S. Federally sponsored agencies and U.S. corporations.
N ote.—D ata are from U.S. Department of Commerce, Bureau of Eco­
nomic Analysis. Details may not add to totals because o f rounding.

A 60

GOLD RESERVES □ MAY 1975
4. GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions o f dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
Esti­
mated
total
w o rld 1

Intl.
M one­
tary
Fund

United
States

Esti­
mated
rest of
world

Algeria

Argen­
tina

1970............................
1971............................
1972............................
1973............................

41,275
41,160
44,890
49,850

4,339
4,732
5,830
6.478

11,072
10,206
10,487
11.652

25,865
26,220
28;575
31,720

191
192
208
231

140
90
152
169

239
259
281
311

714
729
792
881

1,470
1,544
1,638
1,781

791
792
834
927

82
80
87
97

64
64
69
77

85
85
92
103

1974— M ar.................

49,840

6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478

11.652 31,710
11.652
11.652
11,652 31,705
11.652
11.652
11.652 31,700
11.652
11.652
11.652 p 31,665

231
231
231
231
231
231
231
231
231
231

169
169
169
169
169
169
169
169
169
169

312
312
312
312
312
312
312
312
312
312

882
882
882
882
882
882
882
882
882
882

1.781
1.781
1.781
1.781
1.781
1.781
1.781
1.781
1.781
1 ,781

927
927
927
927
927
927
927
927
927
927

97
97
97
97
97
97
97
97
97
97

77
77
77
77
76
76
76
76
76
76

103
103
103
103
103
103
103
103
103
103

6.478
6.478
6.478

11,635
11,622
11,622

231
231
231

169

312
312
312

882
882
882

1.781
1 ,781
1 ,781

927
927
927

97
97
97

76
76
76

G er­
many,
Fed.
Rep. o f

Greece

End o f
period

49,835
July.................
49,830
p 4 9 ,795

1975—Jan..................
Feb..................
M ar.p .............

End o f
period

France

India

Iran

Iraq

Aus­
tralia

Italy

Aus­
tria

Japan

Bel­
gium

Kuwait

Canada

Leb­
anon

China,
Rep. o f
(Taiwan)

Libya

D en­
mark

Egypt

Mexi­
co

N ether­
lands

1970............................
1971............................
1972............................
1973............................

3,532
3,523
3,826
4.261

3,980
4,077
4,459
4,966

117
98
133
148

243
243
264
293

131
131
142
159

144
144
156
173

2,887
2,884
3,130
3.483

532
679
801
891

86
87
94
120

288
322
350
388

85
85
93
103

176
184
188
196

1,787
1,909
2,059
2.294

1974— M ar.................
A pr.................
M av................
June................
July.................
Aug.................
Sept................
Oct..................
N ov.................
Dec.................

4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262

4.966
4.966
4.966
4.966
4.966
4.966
4.966
4.966
4.966
4,966

149
149
149
150
150
150
150
150
150
150

293
293
293
293
293
293
293
293
293
293

159
159
159
159
158
158
158
158
158
158

173
173
173
173
173
173
173
173
173
173

3.483
3.483
3.483
3.483
3.483
3.483
3.483
3.483
3.483
3,483

891
891
891
891
891
891
891
891
891
891

123
118
142
130
130
130
130
138
138
148

389
389
389
389
389
389
389
389
389
389

103
103
103
103
105
107
103
103
103
103

156
155
154
154
154
154
154
154
154
154

2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294

1975—Jan..................
Feb..................
M ar.p .............

4.262
4.262
4.262

4.966
4.966
4.966

150
150
150

293

158
158
158

173
173

3,483
3.483
3.483

891
891
891

140
140
154

389
389
389

103
103
103

P o rtu ­
gal

Saudi
Arabia

South
Africa

Thai­
land

Turkey

U nited
King­
dom

End o f
period

Paki­
stan

Spain

Sweden Switzer­
land

U ru­
guay

*•2,294
2.294
2.294

Vene­
zuela

Bank
for Intl.
Settle­
m ents2

1970............................
1971............................
1972............................
1973............................

54
55
60
67

902
921
1,021
1,163

119
108
117
129

666
410
681
802

498
498
541
602

200
200
217
244

2,732
2,909
3,158
3.513

92
82
89
99

126
130
136
151

1,349
775
800
886

162
148
133
148

384
391
425
472

-2 8 2
310
218
235

1974— M ar.................
A pr.................
M ay................
Ju n e ...............
July.................
A ug.................
Sept.................
Oct..................
N ov................
D ec.................

67
67
67
67
67
67
67
67
67
67

1,176
1,180
1,180
1,180
1,180
1,180
1,180
1,180
1,180
1,180

129
129
129
129
129
129
129
129
129
129

780
780
777
781
788
778
778
786
774
771

602
602
602
602
602
602
602
602
602
602

244
244
244
244
244
244
244
244
244
244

3.513
3,513
3.513
3.513
3.513
3,513
3,513
3,513
3,513
3,513

99
99
99
99
99
99
99
99
99
99

151
151
151
151
151
151
151
151
151
151

886
886
886
886
886
886
886
886
886
886

148
148
148
148
148
148
148
148
148
148

472
472
472
472
472
472
472
472
472
472

274
271
247
259
259
255
259
271
251
250

1975—Jan ..................
Feb..................
M ar v .

67
67
67

1,180
1 ,180

129

764
759
754

602
602

244
244
244

3.513
3.513
3.513

99
99
99

151
151
151

148

472
472
472

265
272

1 Includes reported or estimated gold holdings of 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 M onetary
G old; 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 of the
gold deposited with the BIS is included in the gold reserves of individual
countries.
2 Net gold assets of BIS, i.e., gold in bars and coins and other gold
assets minus gold deposit liabilities.

MAY 1975 □ INTL. CAPITAL TRANSACTIONS OF TH E U.S.

A 61

5. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions o f dollars)
Liabilities to foreign countries

End
of
period

Total

Liquid
liabili­
ties to
IM F
arising
from
gold
tran s­
actions1

Official institutions2
Liquid liabilities to
other foreigners

Liquid

Total

Short­
term
liabili­
ties re­
ported
by
banks
in
U.S.

N onm ar­
M arket­ ketable
able
con­
U.S.
vertible
U.S.
Treas.
Treas.
bonds
and
bonds
notes3
and
notes

Liquid
N onm ar­
liabili­
ketable
Other
ties
noncon­ readily
to
com­
vertible m arket­ mercial
U.S.
able
banks
Treas.
liabili­ abroad 6
bonds
ties5
and
notes4

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 f
and
notes3*7

1963..............................

26,394

800

14,425

12,467

1,183

703

63

9

5,817

3,387

3,046

341

1,965

1964 9...........................

/29,313
\29.364

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

1965...............................

29,569

834

15,826

13,066

1,105

1,201

334

120

7,419

4,059

3,587

472

1,431

1966 9...........................

J31,145
{31,020

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
\35,667

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
\3 8 ,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........................... io/45,755
\45,914

1,019
1,019

*015,975
15,998

11,054
11,077

346
346

10 555
555

102,515
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................

| 47,009
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—Dec. i i ..............

/67,681
(67,808

544
544

51,209
50,651

39,679
39,018

1,955
1,955

6,060
6,093

3,371
3,441

144
144

10,262
10,949

4,138
4,141

3,691
3,694

447
447

1,528
1,523

1972—D ec...................

82,862

61,526

40,000

5,236

12,108

3,639

543

14,666

5,043

4,618

425

1 ,627

1973—D ec...................

92,404

66,810

43,919

5,701

12,319

3,210

1,661

17,661

5,930

500

430

2,003

1974—M ar...................
A pr....................
M ay..................
June..................
July...................
Aug...................
Sept...................
O ct.r .................
N o v .r ...............
D ec . r ................

95,634
97,825
101,285
104,026
107,110
109,942
110,628
111,940
115,616
118,898

65,527
67,154
68,150
69,994
71,091
70,970
72,606
73,718
75,061
76,570

43,412
45,175
46,167
47,430
48,429
48,382
50,114
50,891
51 ,809
53,057

5,192
5,020
5.013
5.013
5.013
4,940
4.880
4.880
4,906
5,059

12.329
12.330
12.330
12.330
12.330
12.330
12.330
12.330
12.330
12.330

3.210
3.210
3.210
3.655
3.655
3.655
3.655
3.867
3.867
3.867

1,384
1,419
1,430
1,566
1,664
1,663
1,627
1,750
2,149
2,257

22,088
22,520
24,639
25,103
26,810
29,355
27,980
27,970
29,668
30,248

6,546
6,802
6,894
7,159
7,338
7,522
8,051
8,125
8,407
8,783

6,146
6,385
6,528
6,796
6,961
7,156
7,658
7,694
7,926
8,285

400
417
366
363
377
366
393
431
481
498

1,473
1,349
1,602
1,770
1,871
2,095
1,991
2,127
2,480
3,297

1975—Jan ....................
Feb.?7................
M a r . ...............

118,022
119,466
120,079

75,793
78,552
79,068

51 ,774
54,203
53,683

5,177
5,359
6,003

12.457
12.457
12.457

3.867
3.867
3.867

2,518
2,666
3,058

29,374
27,649
27,853

8,692
9,050
9,013

8,184
8,440
8,405

508
610
608

4,163
4,215
4,145

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 benchmark data;
breakdown o f transactions by type o f holder estimated for 1963.
4 Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities 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.
9 D ata on the 2 lines shown for this date differ because of changes
in reporting coverage. Figures on first line are comparable with those
shown for the preceding date; figures on second line are comparable with
those shown for the following date.




10 Includes $101 million increase in dollar value o f foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969 as
follows: liquid, $17 million, and other, $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 of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions of foreign countries have been increased in
value to reflect m arket exchange rates as of Dec. 31, 1971.
N ote.—Based on Treasury Dept, 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 of dollars, and holdings of U.S. Treasury letters
of credit and nonnegotiable, non-interest-bearing special U.S. notes held
by other international and regional organizations.

A 62

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 1975
6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions of dollars)
Total
foreign
countries

Western
E urope1

197 1
197 2
197 3

50,651
61.526
66,810

30,134
34,197
45,717

3,980
4,279
3,853

1,429
1,733
2,544

13,823
17,577
10,884

415
777
788

870
2,963
3,024

1974—M ar...
Apr.. .
M ay..
June. .
July. .
A ug...
Sept...
O c t...
N o v ...
D ec...

65.527
67,154
68,150
69,994
71,091
70,970
72,606
73,718
75,061
76,570

42,772
42,638
42,951
43,200
43,002
42,292
42,680
43,041
43,223
44,169

4,195
4,309
4,302
4,201
4,125
3,953
3,819
3,809
3,710
3,665

2,887
3,532
3,384
4,006
3,951
4,127
4,421
4,046
3,742
4,419

11,631
12,360
12,988
13,992
15,209
15,526
16,182
17,186
18,525
18,529

1,249
1,402
1,620
1 ,854
2,055
2,272
2,850
2,947
3,204
3,161

2,793
2,913
2,905
2,741
2,749
2,800
2,654
2,689
2,657
2,627

1975—Jan.. .
F eb .P .
Mar.p

75,793
78,552
79,068

43,234
44,707
45,786

3,626
3,616
3,546

3,659
4,224
4,390

19,480
20,198
19,325

3,232
3,356
3,433

2,562
2,451
2,588

End o f period

1 Includes Bank for International Settlements and European Fund.
2 Includes countries in Oceania and Eastern Europe, and W estern Euro­
pean dependencies in Latin America.
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;

Latin
American
republics

Canada

Asia

Other
countries2

Africa

foreign official holdings o f m arketable and nonm arketable U.S. Treasury
securities with an original m aturity o f m ore than 1 year, except for non­
marketable notes issued to foreign official nonreserve agencies; and in­
vestments by foreign official reserve agencies in debt securities o f U.S.
Federally-sponsored agencies and U.S. corporations.

SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN TH E 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 i

Deposits
Total
Demand

U.S.
Treasury
bills and
Tim e2 certifi­
cates 3

Other
short­
term
liab.4

Payable
in
foreign
cur­
rencies

1971................................
1972................................
1973................................

55,428
60,697
69,022

55,036
60,201
68,425

6,459
8,290
11,310

4,217
5,603
6,863

33,025
31,850
31,886

11,335
14,458
18,366

392
496
597

1974— M ar.....................
A pr.....................
M a y ...................
June....................
July.....................
Aug.....................
Sept.....................
Oct......................
N ov.....................
Dec . r ..................

72,852
75,244
78,721
80,982
83,945
86,815
87,652
88,552
91,439
94,755

72,086
74,537
78,068
80,190
83,279
86,069
86,957
87,833
90,695
93,989

11,651
11,977
11,672
12,856
12,222
11,841
12,769
11,228
12,860
14,054

6,956
7,303
7,609
8,253
8,643
9,073
9,222
9,789
9,532
10,081

31,444
32,676
33,983
34,038
34,178
33,179
33,467
34,187
35,020
35,662

22,034
22,581
24,805
25,043
28,235
31,976
31,499
32,628
33,283
34,192

1975—Jan......................
Feb.P..................
M ar.p .................

93,244
94,247
93,406

92,523
93,514
92,724

12,298
12,144
12,321

10,157
10,322
10,162

38,108
40,428
40,094

31,960
30,620
30,148

For notes see opposite page.




IM F
gold
invest­
m en t5

Deposits
U.S.
Treasury
bills and
certifi­
cates

Total
Demand

Other
short­
term
liab. 7

1,367
1,413
1.955

73
86
101

192
202
83

210
326
296

892
800
1,474

766
706
653
792
666
746
696
719
744
766

1,206
1.164
1,388
1,653
1,745
1,921
1,900
1,997
2,036
3.165

96
60
95
106
121
81
128
125
128
139

63
57
53
66
66
68
69
89
89
105

227
209
46
91
51
146
75
93
94
497

820
838
1,194
1.390
1,508
1,627
1,629
1,690
1,725
2,424

721
733
682

3,911
3.955
3,465

123
118
189

104
95
107

1,234
1,260
777

2,450
2,482
2.391

400

MAY 1975 □ INTL. CAPITAL TRANSACTIONS OF TH E U.S.

A 63

SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN TH E UNITED STATES, BY TYPE— Continued
(Amounts outstanding; in millions of dollars)
Total to official, banks and other foreigners

To official institutions8
Payable in dollars

Payable in dollars
End o f period
Total

Deposits
Demand

T im e2

U.S.
Treasury
bills and
certifi­
c ates3

O ther
short­
term
liab.4

Payable
in
foreign
cur­
rencies

Total

Deposits
D emand

T im e2

U.S.
Treasury
bills and
certifi­
cates3

Payable
in
Other
foreign
short­
term currencies
lia b .7

197 1
197 2
197 3

53,661
59,284
67,067

6,386
8,204
11,209

4,025
5,401
6,780

32,415
31,523
31,590

10,443
13,659
16,892

392
496.
597

39,018
40,000
43,919

1,327
1 ,591
2,125

2,039
2,880
3,911

32.311
31,453
31,511

3,177
3,905
6,245

165
171
127

1974—M ar..
Apr..
M ay.
J u n e .,
Ju ly ..
A ug..,
S e p t..,
O ct.. .
N o v ..,
D ec.. ,

71,646
74,080
77,334
79,329
82,200
84,893
85,752
86,555
89,403
91,590

11,555
11,917
11,577
12,750
12,102
11,760
12,641
11,104
12,732
13,915

6,894
7,246
7,556
8,187
8,578
9,005
9,153
9,700
9,443
9,976

31,217
32,467
33,937
33,947
34,128
33,033
33,392
34,094
34,927
35,165

21,215
21,742
23,611
23,652
26,727
30,349
29,870
30,938
31,558
31,768

766
706
653
792
666
746
696
719
744
766

43,412
45,175
46,167
47,430
48,429
48,382
50,114
50,891
51,809
53,057

2,631
~ 920
352
643
561
473
824
168
2; 472
2,951

3,800
3,949
4,025
4,277
4,445
4,429
4,313
4,483
4,122
4,324

31,064
32.312
33,731
33,745
33,749
32,687
32,955
33,634
34,467
34,656

5,790
5,867
5,931
6,638
7,547
8,665
9,895
10,478
10,621
10,999

127
127
127
127
127
127
127
127
127
127

1975—J a n ...
F e b .* .
Mar.p,

89,332
90,292
89,941

12,174
12,026
12,131

10.053
10,226
10.054

36,874
39,169
39,316

29,510
28,138
27,757

721
733
682

51,774
54,203
53,683

2,188
2,061
2,326

4,351
4,306
4,284

36,531
38,840
39,015

8,706
8,996
8,059

To ban k s9

To other foreigners
Payable in dollars

End o f period

Total
Deposits
Total
Demand

T im e2

U.S.
Treasury
bills and
certifi­
cates

Other
short­
term
liab.4

Deposits
Total

D em and

T im e2

U.S.
Treasury
bills and
certifi­
cates

O ther
short­
term
liab. 7

To banks
and other
foreigners
Payable in
foreign
cur­
rencies

1971..........................
1972.........................
1973..........................

14,643
19,284
23,147

10,721
14,340
17,178

3,399
4,658
6,941

320
405
515

8
5
11

6,995
9,272
9,710

3,694
4,618
5,500

1,660
1,955
2,143

1,666
2,116
2,353

96
65
68

271
481
936

228
325
469

1974—M ar..............
A pr...............
M ay.............
J u n e .............
July..............
Aug..............
Sept..............
O ct...............
N o v .............
D ec...............

28,233
28,905
31,167
31,899
33,771
36,511
35,639
35,664
37,594
38,533

21,449
21,940
24,113
24,439
26,271
28,736
27,411
27,379
29,051
29,609

6,568
6,599
6,910
7,689
7,105
6,890
7,096
6,361
7,622
8,253

506
677
788
996
1,165
1,426
1,576
1,796
1,713
1,856

54
63
82
95
204
200
258
268
253
232

14,321
14,601
16,334
15,660
17,797
20,220
18,481
18,954
19,463
19,268

6,145
6,385
6,528
6,795
6,961
7,156
7,659
7,694
7,927
8,285

2,356
2,398
2,315
2,419
2,436
2,397
2,722
2,574
2,638
2,710

2,588
2,620
2,744
2,915
2,967
3,150
3,264
3,422
3,608
3,796

98
92
124
107
175
145
179
193
207
277

1,104
1,274
1,346
1,355
1,383
1,464
1,495
1,505
1,474
1,502

639
579
526
665
539
618
568
591
617
639

1975—Jan................
F eb .p ...........
M ar.p..........

37,558
36,089
36,258

28,654
26,916
27,171

7,362
7,145
7,066

1,943
2,048
1,844

158
129
101

19,192
17,594
18,161

8,184
8,441
8,405

2,625
2,820
2,740

3,760
3,872
3,927

186
200
200

1,613
1,548
1,537

721
733
682

1 D ata exclude “ holdings o f dollars” o f the IM F.
2 Excludes negotiable time certificates o f deposit, which are included
in “ Other short-term liabilities.”
3 Includes nonmarketable certificates o f indebtedness and Treasury
bills issued to official institutions o f foreign countries.
4 Includes liabilities o f U.S. banks to their foreign branches, liabilities
o f U.S. agencies and branches o f foreign banks to their head offices and
foreign branches, bankers’ acceptances, commercial paper, and negotiable
time certificates o f deposit.
5 U.S. Treasury bills and certificates obtained from proceeds o f sales o f
gold by the IM F to the United States to acquire income-earning assets.
U pon term ination o f investment, the same quantity o f gold was reac­
quired by the IM F.
6 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American D evelopm ent Bank.
Includes difference between cost value and face value o f securities in
IM F gold investment account.




7 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates o f deposit.
8 Foreign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
9 Excludes central banks, which are included in “ Official institutions.”
N ote.—“Short term ” refers to obligations payable on demand or having
an original m aturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 9. D ata exclude the holdings o f dollars
o f the International M onetary F u n d ; these obligations to the IM F consti­
tute contingent liabilities, since they represent essentially the am ount of
dollars available for drawings from the IM F by other m ember countries.
D ata exclude also U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop­
ment Bank and the International Development Association.

A 64

INTL. CAPITAL TRANSACTIONS OF TH E U.S. □ MAY 1975
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN TH E UNITED STATES, BY COUNTRY
(End o f period. A m ounts outstanding; in m illions o f dollars)

1974

1973

1975

Area and country

Europe:

G erm any.......................................................
G reece............................................................
N etherlands..................................................
P ortugal.........................................................
Spain...............................................................
T u rk ey ...........................................................
United K ingdom .........................................
Other Western Europe1............................
U.S.S.R..........................................................

C anada...............................................................
Latin America:
A rgentina.......................................................
B ah a m a s.......................................................
Chile...............................................................
C olom bia.......................................................
Mexico...........................................................
P e ru ................................................................

Netherlands Antilles and Surinam ..........
Other Latin A m erica..................................

Asia:
China, People’s Rep. of (China Mainland)
China, Republic of (Taiwan)....................
H ong K ong...................................................

Africa:
Egypt..............................................................
Z aire...............................................................

O ther countries:

T otal.......................................................

Dec.

June

July

Aug.

Sept.

Oct.

Nov.

D ec.r

Jan.

161
1,483
659
165
3,483
13,227
389
1,404
2,886
965
534
305
1,885
3,377
98
6,148
86
3,352
22
110

310
1,836
266
174
3,425
13,528
232
1,281
2,352
911
411
324
1,211
6,386
125
8,748
100
2,701
27
126

484
1,828
239
203
3,763
12,602
222
1,327
2,232
878
429
362
1,160
7,216
134
8,558
106
2,851
27
133

530
1,937
251
229
3,611
11,873
298
1,101
2,234
894
422
303
1,049
7,850
106
9,071
100
2,829
26
147

597
1,933
268
219
3,561
9,337
293
3,138
2,498
1,023
435
377
1,096
8,393
100
8,709
151
3,122
40
149

568
2,047
285
223
3,920
8,623
255
2,748
3,009
1,131
411
347
1,071
8,974
121
7,565
136
3,218
44
136

557
2,295
338
262
3,822
9,102
213
2,192
3,177
1,181
338
332
1,103
9,378
102
8,166
105
3,432
33
140

607
2,506
369
266
4,274
9,420
248
2,617
3,234
1,040
310
382
1,138
10,007
152
7,501
183
4,051
82
206

40,742

44,473

3,627

44,755

44,861

45,438

44,833

46,267

3,550

3,595

3,250

3,754

4,226

3,725

924
824
860
158
247
7
1,285
282
135
120
1,468
884
71
359

1,378
1,485
782
240
217
6
1,412
550
166
121
2,707
1,071
122
462

1,252
1,546
778
279
264
7
1,411
566
197
122
2,600
1,183
92
672

1,189
3,201
817
253
285
6
1,610
445
185
115
2,999
1,066
103
828

1,105
1,216
873
266
293
7
1,643
511
182
120
3,217
1,214
123
553

1,017
1,678
894
270
292
6
1,731
484
177
128
2,992
1,113
138
508

7,626

10,722

10,966

13,101

11,321

38
757
372
85
133
327
6,954
195
515
247
1,202

33
688
462
225
257
256
9,440
262
772
524
2,572

39
772
470
172
863
226
9,991
215
762
451
3,614

40
842
490
131
785
211
9,912
277
715
403
4,252

10,826

15,491

17,576

35
11
114
87
808

84
39
102
58
1,911

1,056

Feb.

Mar.*3

597
2,391
369
204
4,206
9,948
253
2,101
3,208
874
310
379
1,132
9,601
169
6,580
187
3,103
65
172

624
2,647
324
204
4,035
10,801
242
2,260
3,242
826
303
320
1,215
9,453
131
6,208
168
2,859
59
120

635
2,539
370
202
4,226
11,236
192
2,448
3,459
843
288
358
1,209
8,862
243
7,053
158
2,601
35
218

48,595

45,848

46,040

47,176

3,503

3,405

3,789

3,456

938
1,741
951
297
305
7
1,731
474
183
140
2,896
1,176
135
839

886
1,452
1,034
276
305
7
1,770
488
272
147
3,413
1,316
158
515

900
2,160
859
284
319
6
1,747
500
256
152
2,918
1,211
155
892

894
2,050
927
281
317
6
1,734
476
238
164
3,351
1,263
133
468

822
1,757
1,065
258
326
8
1,668
517
225
171
3,501
1,348
143
492

11,429

11,815

12,038

12,359

12,302

12,301

40
822
621
158
943
217
10,136
304
748
362
4,726

43
797
470
140
1,600
218
10,407
313
726
328
4,832

45
808
551
156
1,363
279
10,891
309
731
333
5,681

50
818
530
261
1,221
386
10,897
384
747
333
5,446

50
977
558
179
1,327
417
10,442
315
702
337
6,003

73
1,015
546
177
1,083
473
10,909
327
642
327
6,136

82
1,017
528
183
497
508
11,390
311
745
455
4,651

18,060

19,076

19,874

21,147

21,073

21,307

21,708

20,368

91
54
170
46
2,042

105
63
156
46
2,258

73
79
157
43
2,893

109
73
138
41
2,973

109
59
155
82
3,199

103
38
130
84
3,197

105
71
150
66
3,272

106
81
188
41
3,392

92
65
191
38
3,461

2,193

2,403

2,627

3,244

3,333

3,604

3,551

3,664

3,809

3,848

3,131
59

2,831
69

2,848
58

2,926
68

2,847
72

2,788
71

2,759
86

2,742
89

2,661
88

2,568
76

2,725
66

3,190

2,900

2,906

2,994

2,918

2,859

2,845

2,831

2,748

2,644

2,792

79,329

82,200

84,893

85,752

86,555

89,403

91,590

89,332

90,292

89,941

1,305
227
122

1,383
253
108

1,567
262
93

1,534
261
103

1,665
232
100

1,752
213
70

2,894
202
69

3,636
226
50

3,677
222
57

3,214
207
44

3,165

3,911

3,955

3,465

94,755 j 93,244

94,247

93,406

67,067
International and regional:
International2..............................................

G rand to ta l..........................................
For notes see opposite page.




1,627
272
57
1,955

1,653

1,745

1,921

1,900

1,997

2,036

69,022

80,982

83,945

86,815

87,652

88,552

91,439

MAY 1975 □ INTL. C AP ITAL TR A N S A C TIO N S OF T H E U.S.

A 65

8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN TH E UNITED STATES, BY COUNTRY— Continued
(End o f period. Amounts outstanding; in millions of dollars)
Supplementary data 4
1974

1973

1972

1972

1973

1974

Area and country

Area and country
Dec.

Apr.

Dec.

Apr.

Dec.

O ther Western Europe:
C yprus........................................
Iceland ........................................
Ireland, Rep. o f.........................

3
9
17

9
12
22

19
8
62

10
11
53

7
21
29

O ther Latin American republics:
B olivia..........................................
C osta R ica...................................
Dom inican R epublic............... .
E cu ad o r...................................... .
El Salvador.................................
G uatem ala...................................
H aiti..............................................
H onduras.....................................
Jam aica.........................................
N icarag u a....................................
P arag u ay ......................................
Trinidad and T o b ag o ...............

87
92
114
121
76
132
27
58
41
61
22
20

65
75
104
109
86
127
25
64
32
79
26
17

68
86
118
92
90
156
21
56
39
99
29
17

102
88
137
90
129
245
28
71
52
119
40
21

96
117
127
122
129
214
35
88
69
127
46
107

O ther Latin A m erica:
B erm uda........................................
British West Indies.....................

( 2)
36

127
100

242
109

201
354

116

O ther Asia:
A fghanistan.................................
B urm a............................................
C am b o d ia.....................................
Jo rd a n ...........................................

25
2
3
4

19
17
3
4

22
12
2
6

11
42
4
6

4
22

1 Includes Bank for International Settlements and European Fund.
2 D ata exclude holdings o f dollars of the International M onetary Fund.
3 Asian, African, and European regional organizations, except BIS and
European Fund, which are included in “ Europe.”

Dec.

Apr.

Dec.

Other Asia—C ont.:
L aos.................................
L ebanon..........................
M alaysia.........................
Pakistan...........................
Singapore........................
Sri Lanka (Ceylon)
Vietnam...........................
Oil-producing countries

2
55
54
59
77
5
135
534

3
55
59
93
53
6
98
486

3
62
58
105
141
13
88
652

O ther Africa:
Algeria...........................
Ethiopia (incl. Eritrea)
G h a n a ............................
K enya............................
Liberia...........................
Libya..............................
Nigeria...........................
Southern Rhodesia
Sudan.............................
Tanzania.......................
Tunisia............................
U ganda......................... .
Z am bia............................

32
57
10
23
30
393
85
2
3
11
10
7
28

51
75
28
19
31
312
140
1
3
16
11
19
37

111
79
20
23
42
331
78
2
3
12
7
6
22

110
118
22
20
29
257
736
1
2
12
17
11
66

67
95
18

All other:
New Z ealand............... .

30

34

39

33

47

Apr.

Dec.

3
3
68
119
40
63
108
91
165
240
13
14
98
126
1,331 4,640

39
2
4
11
19
13

4 Represent a partial breakdown o f the amounts shown in the other
categories (except “ Other Eastern Europe” ).
5 Includes Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi Arabia,
Syria, and United Arab Emirates (Trucial States).

9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN TH E UNITED STATES
(Amounts outstanding; in millions o f dollars)

End of period

1971r ..............................
1Q77 2

Total

To
inti.
and
regional

To foreign countries

Total

Official
institu­
tions

C ountry or area

Other
B anks1 foreign­
ers

G er­
many

United
K ing­
dom

Total
Other
Latin
Europe America

Japan

Other
Asia

All
other
coun­
tries

1973................................

902
/ l , 000
\ 1,018
1,467

446
562
580
761

457
439
439
706

144
93
93
310

257
259
259
296

56
87
87
100

164
165
165
165

52
63
63
66

30
32
32
245

111
136
136
132

3
1
1
5

87
32
32
78

9
10
10
16

1974—M ar.....................
A pr......................
M ay ....................
June....................
Ju ly .....................
Aug.....................
Sept.....................
O ct......................
N ov.....................
Dec . r ..................

1 ,577
1 ,690
1,657
1,650
1,689
1 ,533
1 ,402
1,332
1,318
1 ,320

951
1,025
1,005
974
978
1,005
920
852
832
820

626
665
652
676
711
528
482
480
485
500

259
294
296
321
337
136
93
111
112
124

280
282
282
283
299
316
316
299
298
298

87
89
74
73
75
76
73
71
75
79

165
165
165
165
171
170
170
170
170
170

45
56
56
56
56
60
60
48
48
48

232
227
220
220
231
45
45
45
45
45

130
152
144
144
142
141
123
116
116
115

2
2
2
2
2
1
1
1
I
1

39
50
52
77
97
97
70
87
88
101

13
13
13
12
13
13
13
13
!7
20

1975—Jan .......................
Feb......................
M ar.p .................

1,406
1 ,441
1 ,523

846
776
795

560
666
728

223
336
406

266
264
255

71
66
67

150
147
137

42
41
41

26
23
24

118
119
120

1
1
1

200
313
383

21
21
21

1 Excludes central banks, which are included with “ Official institutions.”




2 D ata on the 2 lines shown 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.

A 66

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 1975
10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES
(End o f period; in millions of dollars)
1974
M ar.

Europe:
Belgium-Luxembourg........................
Sw eden.................................................
Switzerland..........................................
United K ingdom ................................
O ther W estern E u ro p e.....................
Eastern E u ro p e..................................

Apr.

7
260
33
457
89
5

7
260
34
439
90
5

May

7
260
35
428
87
5

June

7
260
34
424
89
5

July

1975
Aug.

9
260
35
426
97
5

9
260
34
439
101
5

Sept.

Oct.

10
250
34
459
96
5

Nov.

D ecr

10
250
30
485
102
5

10
276
30
498
98
5

10
251
30
493
97
5

Jan.

Feb.P

M ar.p

11
252
31
529
89
5

12
252
30
578
83
3

14
252
29
598
80
5

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

835

851

823

819

832

849

854

883

917

885

916

959

1,180

C an a d a .....................................................

847

848

849

849

851

756

706

707

711

713

697

584

588

Latin America:
Latin American republics.................
O ther Latin A m erica........................

11
3

11
3

11
5

11
5

11
5

11
5

11
17

11
25

11
62

12
88

11
88

91
148

11
114

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

14

14

16

16

16

16

28

36

74

100

99

239

125

Asia:
Jap a n ....................................................
O ther A sia..........................................

3,703
11

3,531
11

3,499
12

3,498
12

3,497
12

3,498
12

3,497
12

3,497
12

3,498
12

3,498
212

3,498
325

3,496
541

3,496
1,071

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

3,714

3,542

3,510

3,510

3,509

3,510

3,509

3,509

3,509

3,709

3,822

4,037

4,567

157

157

157

157

156

151

151

151

151

151

151

151

151

All other..................................................

25

25

25

25

25

25

25

25

25

Total foreign countries.........................

5,592

5,437

5,379

5,376

5,390

5,306

5,273

5,311

5,387

5,557

5,685

5,969

6,611

International and regional:
International.......................................
Latin American regional.................

217
49

141
44

174
41

57
60

51
75

102
71

23
68

78
52

80
67

71
61

190
61

201
59

601
79

T o tal............................................

267

185

214

117

126

173

91

130

147

132

25

260

680

G rand to ta l................................

5,859

5,622

5,594

5,493

5,516

5,479

5,364

5,441

5,534

5,689

5,936

6,229

7,291

N ote.—D ata represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity o f more than 1

year, and are based on benchmark surveys of holdings and regular monthly
reports of securities transactions (see Table 14).

11- SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN TH E UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
Payable in foreign currencies

Payable in dollars
Loans to—
End o f period

Total
Total
Total

Official
institu­
tions

Accept­
ances
Collec­
made
tions
o ut­ for acct.
o f for­
B anks1 Others 2 stand­
ing
eigners

O ther

Total

Foreign
govt, se­
Deposits curities,
with for­ coml.
and fi­
eigners
nance
paper

Other

1971r............................... 13,272
(15,471
1y t Z J T .......................... {15,676
1 9 7 3 '............................... 20,698

12,377
14,625
14,830
20,036

3,969
5,674
5,671
7,660

229
162
162
284

2,080
2,975
2,970
4,538

1,660
2,537
2,540
2,839

2,475
3,269
3,276
4,307

4,254
3,204
3,226
4,160

1,679
2,478
2,657
3,910

895
846
846
662

548
441
441
428

173
223
223
119

174
182
182
115

1974—M ar.r .................
A pr.....................
M ay....................
Ju n e....................
July.....................
A ug.r .................
Sep t.r .................
Oct......................
N ov.....................
D ec . r ..................

25,789
26,695
29,874
32,383
33,680
35,216
34,132
34,250
36,393
38,680

24,941
25,838
28,990
31,426
32,677
34,411
33,214
33,220
35,365
37,470

9,029
9,537
9,916
11,450
10,882
11,590
10,598
10,074
11,040
11,342

428
354
367
390
480
452
526
371
439
394

5,776
6,124
6,355
7,726
6,831
7,792
6,719
6,371
7,174
7,389

2,825
3,059
3,194
3,334
3,571
3,346
3,354
3,332
3,426
3,559

4,642
4,805
5,081
5,107
5,152
5,295
5,245
5,356
5,345
5,637

5,150
5,838
6,624
7,599
9,177
9,459
9,538
10,034
10,693
11,190

6,120
5,657
7,369
7,270
7,467
8,067
7,832
7,756
8,287
9,301

849
857
884
957
1,003
805
918
1,030
1,028
1,210

545
589
611
687
626
461
468
547
515
668

160
99
113
130
207
180
217
243
283
289

144
169
160
141
170
164
233
240
229
253

1975—Jan . r ...................
F e b .' ..................
M ar.p .................

38,881
39,721
41,873

37,592
38,532
40,713

10,232
10,313
9,942

361
378
309

6,318
6,414
5,999

3,553
3,521
3,634

5,565
5,346
5,415

10,995
11,090
11,294

10,800
11,783
14,062

1,289
1,190
1 ,160

719
609
573

351
336
290

219
244
297

1 Excludes centra] banks, which are included with “ Official institutions.”
2 Includes International and Regional Organizations.
3 D ata on the 2 lines shown for this date differ because of changes




in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line
are comparable with those shown for the following date.

MAY 1975 □ INTL. CAPITAL TR A N S A C TIO N S OF T H E U.S.

A 67

12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN TH E UNITED STATES, BY COUNTRY
(End o f period. Amounts outstanding; in millions of dollars)
1974

1973

1975

Area and country
Dec.

June

July

Aug.

Sept.

Oct.

Nov.

D ec.r

Jan.

United K in g d o m ........................................
Yugoslavia.....................................................
Other W estern E urope...............................
U .S.S.R..........................................................
Other Eastern E urope................................

11
148
48
108
621
311
35
316
133
72
23
222
153
176
10
1,459
10
27
46
59

104
230
65
134
731
422
49
572
212
91
32
404
117
663
10
2,463
20
26
47
67

18
266
45
150
703
372
61
437
165
103
30
392
119
386
26
2,362
26
19
35
88

72
207
49
151
760
379
66
441
112
136
24
382
139
355
19
2,619
25
22
30
89

17
164
51
146
637
342
59
354
130
113
26
253
159
377
15
2,228
28
18
21
102

21
301
59
128
485
332
48
340
176
94
35
227
149
277
15
1,852
24
31
27
105

42
308
45
107
791
438
57
340
183
97
25
201
160
339
14
2,332
28
38
28
86

21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,401
22
22
46
131

18
401
54
132
867
390
52
351
195
115
16
184
128
252
23
2,663
38
22
44
124

T o tal.......................................................

3,988

6,458

5,804

6,073

5,239

4,724

5,660

6,076

1,955

2,205

2,348

2,111

2,032

2,556

2,517

2,773

499
875
900
151
397
12
1,373
266
178
55
518
493
13
140

673
1,888
1,477
187
522
13
1,720
392
281
40
606
675
41
358

686
1,558
1,507
224
601
12
1,770
400
353
59
644
690
38
312

704
2,086
1,522
231
679
13
1,828
401
421
50
642
700
56
448

695
2,486
1,534
250
665
14
1,706
410
408
47
627
711
64
370

679
2,763
1,476
256
686
13
1,836
405
433
46
557
724
61
693

704
2,616
1,493
291
675
13
1,898
402
486
63
643
810
74
920

720
3,269
1,415
290
713
14
1,972
503
518
63
704
852
62
1,138

5,870

8,872

8,856

9,781

9,989

10,628

11,088

31
140
147
16
88
166
6,400
403
181
273
394

23
354
208
18
115
145
10,843
620
302
421
708

28
403
200
20
117
193
12,395
641
295
427
816

22
443
271
34
120
192
12,814
706
348
429
677

9
461
243
17
122
197
12,390
733
340
436
669

7
496
214
19
128
200
11,714
760
346
414
669

8,238

13,757

15,534

16,056

15,617

35
5
129
60
159

66
5
202
91
273

68
14
213
93
286

83
10
238
97
275

388

637

675

243
43

383
70

T otal.......................................................

286

Total foreign countries...................................

20,725

International and regional.............................
G rand to ta l..........................................

Europe:
Belgium-Luxembourg................................
F ran c e ............................................................
G erm an y .......................................................
G reece............................................................
Ita ly ................................................................

Latin America:

Chile...............................................................
M exico...........................................................
P an am a..........................................................
P e ru ................................................................
U ruguay.........................................................
Other Latin American republics..............
Netherlands Antilles and Surinam ..........

Asia:
China, People’s Rep. of (China M ainland)
China, Republic o f (T aiw an)....................

Israel...............................................................
J a p a n .............................................................
K o rea.............................................................
Philippines....................................................
O th e r..............................................................

Africa:
Egypt..............................................................
M orocco........................................................
Z aire...............................................................

O ther countries:
A ustralia........................................................
All o ther........................................................

p

38
591
53
136
893
435
42
277
210
106
39
166
99
267
17

Mar.P

18
27
48
100

22
550
41
137
849
378
46
287
187
104
32
150
72
230
19
2,924
16
24
34
110

6,067

6,331

6,212

2,904

2,643

2,928

783
3,737
1,264
303
706
13
1,898
604
504
75
795
873
45
1,451

808
4,653
1,345
351
679
18
2,004
458
531
86
747
890
39
1,549

873
5,664
1,266
395
695
15
2,112
546
555
104
736
890
39
1,585

12,233

13,051

14,156

15,474

5
482
238
16
140
208
12,406
835
324
416
666

4
497
223
14
157
250
12,496
955
371
441
771

18
524
203
19
142
271
11,811
1,116
300
374
739

65
473
184
22
159
284
11,246
1,286
342
374
776

19
500
291
17
145
322
11,327
1,629
353
406
841

14,966

15,737

16,178

15,516

15,211

15,850

97
10
243
94
311

93
11
282
107
312

91
12
299
101
291

111
18
329
96
299

106
19
364
31
265

114
15
396
38
291

122
19
413
31
290

702

755

806

795

854

785

853

875

400
63

415
77

422
76

478
91

492
104

466
99

433
125

431
95

435
99

453

463

492

498

569

597

565

558

526

534

32,383

33,680

35,215

34,130

34,249

36,392

38,680

38,880

39,721

41,873

1

1

1

1

2

1

1

20,726

32,383

33,680

35,216

34,132

34,250

36,393

N ote.—Short-term claims are principally the following items payable
on demand or with a contractual maturity 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




Feb

38,680

2 ,n o

1

1

1

38,881

39,721

41,873

their own account or for account of 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.

A 68

INTL. CAPITAL TRANSACTIONS OF TH E U.S. □ MAY 1975
13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN TH E UNITED STATES
(Amounts outstanding; in millions o f dollars)
Type

Country or area

Payable in dollars
End of
period

Total
Loans to—
Other
B anks1 foreign­
ers2

Other
long­
term
claims

Payable
in
foreign
curren­
cies

United
K ing­
dom

Other
Europe

Latin
Canada America

Other
Asia

Japan

All
other
coun­
tries2

Total

Official
institu­
tions

1971 r ................. 3,667
J4,954
10*70 ^ t
\5,063
1973 ^................ 5,992

3,345
4,539
4,588
5,442

570
829
840
1,154

315
430
430
591

2,460
3,281
3,319
3,696

300
375
435
478

22
40
40
72

130
145
150
148

593
704
703
1 ,124

228
406
406
490

1,458
1,996
2,020
2,112

246
319
353
251

583
881
918
1,331

429
503
514
532

1974—M ar.r . .
A p r.r. ..
M ay r. ..
Ju n er. ..
July r . ..
A ug.r . ..
Sept.r . .
O ct.r . ..
N o v .r. ..
D ec.r. ..

6,174
6,783
6,830
7,087
7,115
7,055
6,999
7,250
7,251
7,155

5,558
6,140
6,214
6,475
6,502
6,448
6,386
6,571
6,561
6,481

1,277
1,567
1,566
1,619
1,486
1,452
1,416
1,438
1,370
1,327

657
751
772
792
909
913
853
914
933
931

3,624
3,823
3,875
4,064
4,108
4,084
4,116
4,220
4,258
4,223

541
567
550
546
545
539
542
608
618
607

75
76
67
66
67
68
71
71
72
65

157
201
224
222
249
285
266
333
339
329

1,288
1,574
1,559
1,686
1,603
1,545
1,535
1,725
1,652
1,578

473
478
467
496
498
503
543
523
506
486

2,155
2,370
2,434
2,487
2,552
2,527
2,479
2,495
2,574
2,602

256
254
241
244
269
269
247
264
257
258

1,352
1,373
1,381
1,434
1,423
1,416
1,425
1,396
1,392
1,359

494
532
524
518
520
511
505
515
531
534

1975—Jan ........ 7,262
F e b .p ... 7,457
M ar.p ... 7,555

6,624
6,797
6,896

1,364
1,374
1 ,395

968
1,035
1,062

4,293
4,388
4,438

583
606
603

54
54
55

323
347
362

1,669
1 ,749
1 ,769

475
485
485

2,603
2,675
2,695

248
248
247

1,388
1 ,355
1 ,409

552
593
583

1 Excludes central banks, which are included with “ Official institutions.”

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.

2 Includes international and regional organizations.

3 D ata on the 2 lines shown for this date differ because o f changes in

14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)
U.S. corporate
securities2

M arketable U.S. Treas. bonds and n o tes1

Foreign bonds

Foreign stocks

Net purchases or sales
Period
Total

1972...............................
1973...............................
1974...............................

Intl.
and
regional

Pur­
chases

Foreign
Total

Official

3,316
305
-4 7 9

57
-1 6 5
94

3,258
470
-5 7 3

3,281
465
-6 4 2

1975—J an .-M ar.p ... . 1,005

-4 9

1,054

944

1974—M ar...................
A pr....................
M ay..................
Ju n e ..................
July...................
Aug...................
Sept...................
O ct.....................
N ov...................
D ec . r. . . . . . . . .

157
-2 3 7
-2 8
-1 0 1
23
-3 7
-1 1 6
70
132
134

166
-8 2
29
-9 7
9
47
-8 2
32
57
-3 6

-1 0
-1 5 5
-5 7
-3
14
-8 4
-3 3
38
76
171

1975—Jan .....................
Feb.2’.................
M ar.p ...............

18
231
756

-1 0 9
-5 3
114

127
285
642

N et pur­ Pur­
chases or chases
sales

Sales

N et pur­
chases
sales

PurSales

Sales

N et pur­
chases oi
sales

Other
- 2 3 19,083 15,015
6 18,569 13,810
69 15,515 13,830

4,068
4,759
1 ,684

1,901
1,474
1,045

2,932
2,467
3,325

-1 ,0 3 1
-993
-2 ,2 8 1

2,532
1,729
1,899

2,123
1,554
1,718

409
176
181

109

3,520

3,626

-1 0 6

434

2,410

-1 ,9 7 7

429

487

-5 8

25
153

-1 0
16
-5 0
-3
14
-1 1
27
38
50
17

1,672
1,126
903
1,174
1,049
1,400
1,361
1,568
1,415
927

1,484
904
852
923
1,056
1,132
1,183
1,364
1,311
978

188
222
51
251
-7
268
178
205
103
-5 0

102
103
89
74
94
59
72
86
92
101

398
323
154
272
251
214
152
362
170
524

—295
-2 1 9
-6 4
-1 9 7
-1 5 8
-1 5 5
-8 0
-2 7 6
-7 8
-4 2 3

167
189
173
207
128
146
145
89
124
117

183
155
174
117
116
117
100
152
102
87

-1 6
34
-2
90
12
29
45
-6 3
22
30

118
182
644

9
102
-3

65
1,704
1,751

949
1,356
1,321

-883
347
431

131
118
186

1,207
554
650

- 1 ,0 7 6
-4 3 6
-4 6 4

148
134
148

156
173
158

-9
-3 9
-1 0

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

1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions o f foreign countries.
2 Includes State and local govt, securities, and securities o f U.S. Govt,
agencies and corporations. Also includes issues of new debt securities




Sales

sold abroad by U.S. corporations organized to finance direct investments
abroad.
N ote .—Statistics include transactions of international and regional
organizations.

MAY 1975 □ INTL. CAPITAL TRANSACTIONS OF TH E U.S.

A 69

15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)

Period

Pur­
chases

Sales

N et pur­
chases or France
sales ( —)

G er­
many

1972.......................
1973.......................
1974.......................

14,361
12,762
7,552

12,173
9,978
7,095

2,188
2,785
457

372
439
203

1975—Jan.-M ar.*

3,261

2,303

958

67

1974—M ar...........
A pr............
M ay..........
Ju n e..........
J u ly ...........
Aug...........
Sept...........
O ct............
N ov...........
D ec............

896
577
576
521
508
580
447
673
604
450

846
559
591
513
510
502
445
695
616
429

49
19
-1 5
8
-2
78
2
-2 2
-1 2
-2 1

14
22
18
-1 5
13
19
-9
17
5
13

1975—Jan .............
Feb.*.
M ar.* . . . .

731
1 ,383
1 ,148

541
849
913

190
533
235

34
21
12

15
25
11

N ether­ Switzer­
lands
land

United
King­
dom

Other
Europe

Total
Europe

137
274
50

1,958
2,104
354

297
339
330

642
685
36

561
366
-3 0 4

51

62

196

177

31

-2 6
17
7
8
5
18
17
-3 0
1
13

40
35
29
33
39
16
21
9
-2
20

24
-3
5
11
-9
15
-6
-3 9
-3 5
-1 0

14
-1 4
-3 6
-1 8
-4 9
7
-2 2
-8 2
-5 1
-7 6

25
-3 5
-5
-3
3
-1 1
-3
11
4
9

8
14
40

42
115
39

-8
147
38

15
9
7

-5 1
2
39

Latin
Canada America

Asia O th er1

-7 8
99
-6

-3 2
-1
-3 3

584

47

-2

313

17

91
21
19
16
2
64
-3
-1 1 4
-7 7
-3 0

-2 1
-1 0
-7
13
10
14
6
3
-2
14

9
2
-1 5
-7
-2
9
4
2
-5
10

-2 9
3
-1 4
-1 5
-1 4
-1 0
-6
95
70
27

-1
2
2
2
2
*
1
-7
I
*

107
331
146

12
20
15

-1 5
18
-5

84
150
80

2
15
*

256
577
131

83
5
10

1 Includes international and regional organizations.

16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Tota I
197 2
197 3
197 4

France

1,881

1,948
1 ,395

G er­
many

Nether­ Switzer­ United
lands
land Kingdom

336
201
96

74
-1 9
183

-2

1975—Jan.-M ar.*

36

1974—M a r
A pr............
M ay..........
Ju n e..........
July...........
Aug...........
Sept...........
O ct............
N ov...........
D ec . r ........

139
203
66
242
-5
190
176
226
224
-1 1

1
60
10
5
-1
1
1
10
4
1

1975—Ja............... n
27
Feb.*......... -1 8 6
Mar.?5. . . .
195

-4
1

116
72
1
-1
-1
2
-4

Other
Europe

Total
Europe

Latin
Canada America
82
49
50

Africa

135
307
96

367
275
352

315
473
-5 9

1,303
1,204
702
27

28
15
2
-1
2
13
-1
1

-7 9
26
19
64
36
29
54
6
-2 0
54

-6
17
1
-1 7
-1 1
-9
-3
-5
-6
5

-8 1
114
59
185
100
21
55
25
-2 3
56

6
3
10

59
-83
23

74
-8 0
32

14
16
4

152
37
322

N ote.—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues o f new

22
44
43

Other Intl. and
countries regional

323
588
557

148
52
34

34

511

-5 2 9

-1
4
3
1
1
2
4
18
11
-4

-1
*
3
-3
7
199
-1 5
100
398
93

215
86
-3
56
-1 2 8
-3 6
130
79
-1 6 3
-1 7 3

10

-2 1 2
-1 5 9
-1 5 8

debt securities sold abroad by U.S. corporations organized to finance di­
rect investments abroad.

17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA

18.
FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS

(In millions o f dollars)

(Amounts outstanding; in millions o f dollars)

Period

Total

Intl.
and
re­
gional

Total
foreign
coun­
tries

Eu­
rope

Canada

Latin
Amer­ Asia
ica

Af­
rica

505
-1 4 1
-5 4 4

—635
-5 6 9
-1 ,5 2 9

-6 9
-1 2 0
—93

-2 9 6
-1 6 8
138

-6 6
3
7

1972.................
-6 2 2
1973.................
-8 1 8
1974................. -2 ,0 5 8

-9 0
139
-6 0

-5 3 2
-9 5 7
- 1 ,9 9 9

1975—
Jan.-M ar. * - 2 ,0 3 4

Other
coun­
tries

29
37
22

End of
period

C redit
balances
(due to
foreigners)

Debit
balances
(due from
foreigners)

1971—Dec...............................

311

314

1972—June.............................
Sept..............................

312
286
372

339
336
405

-8 3 5

- 1 ,1 9 9

-8 6

-7 3 9

-1 2 7

-2 6 9

20

1

4
3
5
3
1
2
12
2
3
-9 5

-3 1 5
-1 4 7
-7 1
-1 0 7
-1 4 7
-1 2 7
-4 7
-3 4 2
-5 9
-2 9 8

-2 4
-8
-2 6
-7 5
-6 3
-3 5
-4 1
-8 1
-2 1
-2 7

-2 8 8
-1 5 7
-3 5
-1 2 1
-1 0 8
-1 2 6
-3 7
-2 4 4
-8
-1 9 0

-1 5
6
-2 2
-6
-1
-9
5
*
-1 4
-2 5

10
12
10
94
24
42
22
-1 8
-2 1
-6 7

*
*
*
1
—1
—1
1
_J
2
12

1973—M ar...............................

-3 1 1
-1 4 4
-6 6
-1 0 5
-1 4 6
-1 2 6
-3 5
-3 4 0
-5 6
-3 9 3

3
*
3
*
3
1
3
2
3
*

310
316
290
333

364
243
255
231

1974—M ar..............................
June..............................

383
354
298
293

225
241
178
193

1975—Jan ....... - 1 ,0 8 5
-4 7 5
F eb .* . .
M ar.* ..
-4 7 4

-5 7 2
-1 4 7
-1 1 6

-5 1 4
-3 2 8
-3 5 8

-4 1
19
-6 4

-4 0 5
-1 5 9
-1 7 5

-2 8
-9 7
-3

20
2
-2

*
*
1

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 of
foreigners with them , and in their accounts carried by
foreigners.

1974— M a r ....
A p r.r . .
M a y . ..
Juner ..
J u ly ....
Aug___
Sept---O ct.......
N o v ....
D ec.. . .




-6 0
-9 4
-1 1 5
1

Dec.25...........................

A 70

IN TL. C A P ITA L TR A N S A C TIO N S OF T H E U.S. a MAY 1975
19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
Claims on U.S.

Location and currency form

M onth-end

Total
Total

IN ALL FO R E IG N CO U N TRIES

Payable in U.S. d o llars..............................

IN BAHAMAS A N D C A Y M A N S1
Total, all currencies................................

For notes see p. A-74.




Other

Total

O ther
branches
of parent
bank

Other
banks

1972—D ec............ 78,202
1973—D ec............ 121,866

4,678
5,091

2,113
1,886

2,565
3,205

71,304
111,974

11,504 35,773
19,177 56,368

127,246
136,984
140,020
145,918
147,467
145,058
148,652
147,720
145,865
150,170
151,611

4,409
7,814
5,980
7,894
6,677
6,147
9,048
5,986
4,331
7,279
6,281

1,612
5,336
3,504
5,329
3,995
3,533
6,550
3,342
1,697
4,687
3,847

2,797
2,478
2,476
2,566
2,682
2,614
2,498
2,645
2,634
2,592
2,434

117,755
123,997
128,823
132,513
135,054
133,199
133,725
135,552
135,573
136,810
139,039

20,357
22,397
23,119
24,583
25,120
25,726
26,428
26,322
26,958
28,366
27,542

1975—Jan............. 151,005
Feb.®......... 151,276

6,546
4,792

3,876
2,191

2,669
2,601

138,495
140,657

1972—D ec............
1973—D ec............

52,636
79,445

4,419
4,599

2,091
1,848

2,327
2,751

1974—Feb............
M ar.r ........
A p r.' ........
May r .........
J u n e r .........
J u ly '..........
A u g .' ........
Sept.' ........
O c t.' .........
N o v .' ........
D e c.' ........

83,963
92,910
94,292
100,266
101,704
101,534
105,760
104,345
101,936
104,962
105,676

4,004
7,396
5,621
7,549
6,355
5,856
8,737
5,709
4,049
6,973
5,985

1,557
5,252
3,456
5,281
3,945
3,484
6,497
3,284
1,640
4,633
3,811

1975—Jan ............. 105,643
Feb.35......... 103,983

6,222
4,448

43,467
61,732

N on­
Offi­
bank
cial
for­
insti­
tutions eigners

Other

1,594 22,432
2,693 33,736

2,220
4,802

3,144
3,539
3,753
3,703
3,610
3,689
3,423
3,721
3,849
4,019
4,077

36,360
37,497
39,050
39,534
41,883
41,834
43,349
44,208
45,149
45,698
47,172

5.081
5,174
5,217
5,510
5,736
5,711
5,880
6,181
5,962
6.081
6,292

27,870 58,821
28,936 58,695

4,152 47,652
4,246 48,779

5,965
5.827

47,444
73,018

7,869
12,799

26,251
39,527

1,059
1,777

12,264
18,915

773
1.828

2,448
2,143
2,165
2,268
2,410
2,373
2,239
2,426
2,409
2,340
2,174

78,013
83,572
86,483
90,202
92,730
92,987
94,145
95,585
94,939
94,949
96,535

13,785
15,799
16,043
16,890
17,478
18,480
19,694
19,413
19,785
20,623
19,671

40,922
43,273
44,919
47,373
47,819
46,422
45,681
46,517
44,832
43,741
45,032

2,211
2,487
2,835
2,841
2,803
2,889
2,780
2,873
3,006
3,192
3,289

21,094
22,013
22,685
23,099
24,629
25,196
25,990
26,781
27,316
27,393
28,543

1,946
1,941
2,188
2,514
2,619
2,691
2,879
3,050
2,948
3,039
3,156

3,835
2,148

2,387
2,300

96,341
96,648

20,425 43,108
20,794 42,575

3,370 29,437
3,431 29,848

3,080
2,888

2,234
1,789

1,138
738

1,096
1,051

40,214
57,761

5,659 23,842
8,773 34,442

606 10,106
735 13,811

1,018
2.183

1974—Feb............ 63,585
M ar.' ........ 68,076
A p r.' ........ 68,959
M ay ' ......... 71,982
J u n e '......... 71,305
J u ly '.......... 69,197
A u g .' ........ 70,382
Sept.r ........ 70,965
O c t.' ......... 68,123
N o v .' ........ 69,137
D e c.' ......... 69,804

1,477
3,070
2,589
3,792
3,561
3,046
3,599
2,860
1,325
3,387
3,248

616
2,319
1,806
2,969
2,612
2,205
2,858
2,087
502
2,568
2,472

861
751
783
823
949
840
741
774
823
818
776

59,792
63,020
64,238
66,008
65,617
63,974
64,496
65,596
64,462
63,571
64,111

9,209
10,706
10,819
11,759
11,886
12,486
12,790
12,436
12,386
13,122
12,724

14,853
15,235
15,572
15,439
16,452
16,195
17,097
17,372
17,581
17,567
17,898

2,317
1,986
2,131
2.183
2,126
2,177
2,287
2,509
2,336
2,179
2,445

1975—Jan .............
Feb.®.........

68,451
67,038

2,633
1,818

1,902
1,023

731
796

63,527
63,250

12,873 32,057
13,246 31,641

854 17,743
848 17,515

2,291
1,970

1972—D ec............
1973—D ec............

30,257
40,323

2,146
1,642

27,664
37,816

4,326
6,509

17,874
23,899

5,464
7,409

446
865

1974—Feb............. 41,762
M ar............ 46,062
A pr............ 46,419
M ay ........... 49,654
June ' ......... 49,363
J u l y '......... 48,158
A ug.' ........ 49,406
Sept.r ........ 50,075
O c t .'......... 47,968
N o v .r ........ 48,710
D e c.' ......... 49,211

1,384
2,967
2,499
3,693
3,462
2,958
3,507
2,774
1,235
3,277
3,146

39,409
42,212
42,895
44,825
44,774
44,061
44,677
45,960
45,421
44,198
44,693

6,902
8,240
8,386
9,285
9,425
9,932
10,529
10,305
10,234
10,796
10,265

24,415
25,365
25,768
26,994
26,147
24,698
24,512
25,720
25,233
23,551
24,326

8,093
8,608
8,741
8,546
9,203
9,432
9,637
9,937
9,954
9,852
10,102

969
882
1,024
1,135
1,126
1,138
1,222
1,339
1,312
1,235
1,372

1975—Jan .............
F e b .? ........

2,542
1,697

43,959
43,244

10,421
10,615

23,271
22,575

10,268
10,055

1,267
1,077

4,322
8,068

170
520

1974—Feb............
M ar.r ........
A p r.' .........
May r .........
J u n e '.........
July r .........
A ug.' ........
Sept.' ........
O c t.' .........
N o v .' ........
D ec.' .........

IN U N ITE D K IN G D O M
Total, all currencies................................

Parent
bank

Claims on foreigners

1972—D ec............
1973—D ec............

47,769
46,019

57,894
60,563
62,901
64,693
64,441
61,949
60,524
61,301
59,617
58,727
60,248

34,813
36,192
36,775
37,920
36,468
34,575
33,942
34,959
33,608
32,128
32,701

916
887
1,073
889
812
718
666
829
887
753
788

1972—D ec............
1973—Dec............

12,642
23,771

1,486
2,210

214
317

1,272
1,893

10,986
21,041

v
661
12,974

1974—F e b . '........
M a r .'........
A p r .'.........
M a y '.........
J u n e '.........
J u l y '.........
A u g .'........
S e p t.'........
O ct.' .........
N o v .'........
D e c .'........

25,657
28,446
28,778
30,864
31,219
30,403
32,250
30,080
30,030
32,209
31,514

1,874
3,360
2,390
3,166
2,264
2,126
4,306
2,034
1,876
2,827
1,846

167
1,973
956
1,700
818
616
2,835
470
381
1,344
464

1,707
1,386
1,434
1,467
1,446
1,510
1,471
1,564
1,495
1,484
1,382

23,253
24,475
25,765
26,953
28,168
27,462
27,165
27,190
27,364
28,498
28,853

14,226
15,404
16,086
17,035
17,643
16,822
16,157
16,014
16,280
17,193
16,854

9,026
9,071
9,679
9,918
10,524
10,640
11,009
11,177
11,084
11,305
11,999

530
611
623
744
787
815
779
856
790
883
815

1975—Jan............. 33,085
Feb.*>........ 233,258

2,740
1,872

1,111
381

1,629
1,491

29,508
30,554

16,864
17,342

12,643
13,212

838
832

MAY 1975 o IN TL. C AP ITAL TR A N S A C TIO N S OF T H E U.S.

A 71

19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
To foreigners

To U.S.
Total

T otal

Parent
bank

Other

Total

Other
branches
o f parent
bank

O ther
banks

Offi­
N on­
bank
cial
for­
insti­
tutions eigners

Other

Month-end

78,203
121,866

3,501
5,126

997
1,642

2,504
3,968

72,121
111.615

11,121
18,213

41,218
65,389

8,351 11,432
10,330 17,683

2,580
4,641

. 1972—Dec.
.1973—D e c .'

127,246
136,985
140,020
145,918
147,467
145,057
148,652
147,720
145,865
150,171
151,611

6,230
7,100
7,210
8,275
9,028
10,129
9,352
9,981
10,408
11,797
11,764

2,319
2,429
2,558
3,218
3,488
4,373
4,056
5,058
5,812
6,145
5,590

3,911
4,671
4.652
5,057
5,540
5,757
5,296
4,923
4,596
5.652
6,173

116,416
124,887
127,586
131,978
132,328
128.616
132,774
131,016
128,910
131,619
132,915

19,307
21,073
22,688
23,941
24,234
25,313
26,007
26,337
26,619
27,717
26,903

67,408
71,530
71,232
74,193
71,692
66,855
68,772
66,071
62,606
63,596
65,793

10,447
10,849
11,612
12,187
14,388
15,030
16,304
17,488
18,171
19,979
20,133

19,254
21,434
22.054
21,657
22,015
21,418
21,690
21,121
21,514
20,327
20,187

4,600
4,998
5,224
5,665
6,110
6,312
6,527
6,723
6,548
6,755
6,932

.1974—F e b .'
.............M ar.'
.............A p r.'
.............M ay '
.............J u n e '
.............J u ly '
.............A u g .'
.............Sep t.'
.............O ct.r
.............N o v .'
.............D e c.'

151,005
151,276

11,786
11,812

6,310
6,408

5,476
5,404

132,688
132,966

26,988 64,144 21,631
28,154 63,326 21,899

19,924
19,587

6,532
6,499

. 1975—Jan.
.............Feb.p

54,878
80,374

3,050
5,027

847
1,477

2,202
3,550

50,406
73,189

7,955 29,229
12,554 43,641

6,781
7,491

6,441
9,502

1,422
2,158

. 1972—Dec.
.1973—D ec.’

84,649
5,725
93,410 6,528
6,640
94,921
100,714 7,685
102,302 8,414
102,432 9,494
106,842 8,719
106,004 9,294
103,893 9,864
107,323 11,111
107,596 11,218

2,166
2,227
2,378
3,021
3,279
4,160
3,865
4,833
5,609
5,919
5,423

3,559
4,301
4,262
4,664
5,135
5,334
4,853
4,461
4,255
5,192
5,795

76,769
84,380
84,619
89,848
90,359
89,264
94,178
92,630
90,136
92,233
92,428

13,329
15,071
15,783
16,694
17,070
18,438
19,456
19,599
19,481
20,242
19,292

44,462
48,886
47.847
50.848
48,909
45,768
48,394
46,020
42,690
43,147
43,674

8,045
8,475
9,195
9,817
11,630
12,337
13,508
14,533
15,076
16,789
17,392

10,933
11,947
12,794
12,490
12,750
12,721
12,821
12,478
12,889
12.054
12,070

2,155
2,501
2,662
3,181
3,529
3,675
3,945
4,080
3,893
3,979
3,950

.1974- -F eb .»
.M ar.
.A pr . 1
.May*
June1
.Ju ly '
•Aug.
.Sept.
. O c t.'
. N o v .'
Dec.

108,055
105,738

11,323
11,314

6,158
6,260

5,164
5,053

92,957
90,797

19,969 42,851
20,079 40,625

18,291
18,656

11,846
11,437

3,776
3,628

. 1975—Jan.
.............Feb.p

43,467
61,732

1,453
2,431

113
136

1,340
2,295

41,020
57,311

2,961 24.596
3,944 34,979

6,433 7.030
8,140 10,248

994
1,990

.1972—Dec.
.1973—Dec.

63,585
68,076
68,959
71,982
71,305
69,197
70,382
70,965
68,123
69,137
69,804

2,573
3,167
3,123
3,729
3.744
3,439
3,701
3,503
3,227
4,376
3,978

269
353
409
749
606
611
713
635
683
889
510

2,303
2,814
2,714
2,979
3,138
2,828
2,988
2,867
2,544
3,487
3,468

58,956
63.096
63,914
66,156
65,429
63,557
64,309
64,919
62,621
62,397
63,409

4,193
4,587
4,975
4,890
4,913
5,099
4,794
5,428
5,237
5,071
4,762

8,295
8,592;
9,240
9,273
11,289
rl 1,543
12,737
13,544
14,051
15,454
15,258

11 ,112
12,217
13,175
12,398
12,516
12.521
12,858
12,181
12,712
11.521
11,349

2,057
1,813
1,922
2,097
2,132
2,201
2,373
2,543
2,275
2,363
2,418

.1974- -Feb.
, Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

68,451
67,038

3,804
3,826

873
913

2,931
2,912

62,360
61.096

4,567 30,266
4,693 29.207

16,419
16,517

11,108
10,677

2,287
2,117

.1975—Jan.
.............Feb.p

30,810
'39,689

1,272
2,173

72
113

1,200
2,060

29,002
36,646

2,008 17,379
2,519 22,051

5,329
5,923

4,287
6,152

535
'870

.1972—Dec.
.1973—Dec.

'40,964
45,604
46,323
49,301
48,970
48,018
49,481
50,212
48,314
49,668
49,666

2,346
2,927
2,878
3,481
3,516
3.176
3,448
3.177
2,988
4,037
3.744

243
329
384
724
579
568
692
605
651
865
484

2,103
2,598
2,494
2,757
2,937
2,608
2,756
2,572
2,337
3,172
3,261

37,579
41,708
42,453
44,625
44,214
43,528
44,654
45,550
44,033
44,256
44,594

2,729
3,063
3,234
3,083
3.255
3,364
3,278
3,667
3,690
3,557
3.256

21,330
24,164
23.207
26,010
23,669
'22,388
22,558
22,818
20,203
20,200
20,526

6,476
6,830
7,401
7,468
9,137
'9 ,4 5 0
10,437
11,035
11,444
12,808
13,225

7,044
7,650
8,612
8,064
8,155
8,326
8,382
8.030
8,696
7,691
7,587

'1,040
969
992
1,195
1,239
1,314
1,380
1,486
1,294
1,375
1,328

.1974- -Feb.
.M ar.
.Apr.
.M ay
.June
.July
Aug.
Sept.
Oct.
Nov.
Dec.

48,490
46,698

3,599
3,614

854
895

2,744
2,719

43,578
41,900

3,172 19,061
3,266 17,673

13,736
13,932

7,609
7,029

1,313
1,184

.1975—Jan.
.............Feb.p

35,355
37,700
36,524
39.596
36,711
r34,393
33,920
33,766
30,621
30,352
32,040

12,643
23,771

1,220
1,573

11,260
21,747

1,818
5,508

8,105
14,563

1,338
1,676

163
451

.1972—Dec.
.1973—Dec.

25,657
28,446
28,778
30,864
31,219
30,403
32,250
30,080
30,030
32,209
31,514

2,244
2,351
2,283
2,567
2,855
3,684
2,842
3,721
4,270
4,322
4,598

22,979
25,553
26,017
27,706
27,725
26,039
28,670
25,626
24,995
27,107
26,138

5,587
6,608
7,102
8,255
7,642
7,663
8,079
7,072
7,211
8,538
7,702

15,448
16,853
16,809
17,217
17,593
16,223
18,403
16,259
15,650
16,427
16,426

1,944
2,091
2,106
2,233
2,490
2,153
2,188
2,295
2,135
2,141
2,011

435
543
479
591
639
681
738
733
765
779
778

. 1974'-F e b .
.............M ar.
.............Apr.
.............May
.............June
.............July
.............Aug.
.............Sept.
.............Oct.
.............Nov.
.............Dec.

33,085
233,258

4,992
5,045

27,341
27,426

8,269
8,975

16,852
16,207

2,220
2,244

752
787

. 1975—Jan.
.............Feb.p

ForFRASER
notes see p. A-74.
Digitized for


Location and currency form

IN A LL FO R E IG N CO U N TRIES
. . .T otal, all currencies

.Payable in U.S. dollars

IN U N ITE D K IN G D O M
. . .T otal, all currencies

.Payable in U.S. dollars

IN BAHAMAS A N D CAYM ANS i
. . .T otal, all currencies

A 72

IN TL. C AP ITAL TR A N S A C TIO N S OF T H E U.S. □ MAY 1975

20. DEPOSITS, U.S. TREAS. SECURITIES,
AND GOLD HELD A T F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT

21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions o f dollars)

(In millions o f dollars)
Payable in
Payable in dollars foreign currencies

Assets in custody
End of
period

End of
period

Deposits
U.S. Treas.
securities1

Earm arked
gold

1972.
1973.
1974.

325
251
418

50,934
52,070
55.600

215,530
217,068
16.838

1974— A p r ..
M ay.
June.,
J u ly ..
A u g ..
Sept..
O c t...
N ov..
D e c ..

517
429
384
330
372
411
376
626
418

52,642
54,195
54,442
54,317
53,681
53,849
54,691
55,908
55.600

17,026
17,021
17,014
16,964
16,917
16,892
16,875
16,865
16.838

1975—Jan...
Feb. .
M ar..
Apr..

391
409
402
270

58,001
60,864
60,729
60,618

16,837
16,818
16,818
16,818

Total
D eposits

1 M arketable U.S. Treasury bills, certificates o f in­
debtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2 The value o f earm arked gold increased because o f the
changes in par value o f the U.S. dollar in M ay 1972, and
in Oct. 1973.

Short­
Short­
term
term
invest­ D eposits invest­
ments i
ments 1

United
King­
dom

Canada

1969.....................
1970.....................
19712...................

1,491
1,141
/1,648
\ 1,507

1,062
697
1,092
1,078

161
150
203
127

183
173
234
234

86
121
120
68

663
372
577
580

534
443
587
443

19722
1 9 7 3 '...................

/1,965
12,374
3,160

1,446
1,910
2,586

169
55
37

307
340
427

42
68
109

702
911
1,116

485
536
770

1974—Feb. r . . . .
M a r.r . . ..
A p r.r . . ..
May r. . . .
Ju n e r . . . .
July r ___
A ug.r ___
S ept.r . . . .
O ct.r ___
N ov . r ___
D ec..........

3,225
3,678
3,581
3,669
3,661
3,771
3,504
3,073
2,696
2,996
3,293

2,601
3,011
2,967
3,037
3,049
3,223
2,941
2,491
2,130
2,378
2,572

65
99
60
76
62
74
51
30
25
15
56

361
348
346
329
369
341
369
362
324
325
403

198
219
209
227
181
133
144
189
216
277
261

1,219
1,372
1,487
1,441
1,418
1,441
1,436
1 ,194
1,118
1,283
1,340

861
1,027
930
980
927
828
872
864
835
942
943

1975—Jan.25___
Feb.p___

3,227
3,328

2,519
2,512

45
48

316
356

348
411

1,134
1,076

1,113
1,134

1 Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity o f not more than 1 year from the date on which the
obligation was incurred by the foreigner.
2 D ata on the 2 lines for this date differ because of changes in reporting coverage.
Figures on the first line are comparable in coverage with those shown for the preceding
date; figures on the second line are comparable with those shown for the following date.

N ote.—Excludes deposits and U.S. Treasury securities
held for international and regional organizations. E ar­
marked gold is gold held for foreign and international
accounts and is not included in the gold stock o f the
United States.

N ote.—D ata represent the liquid assets abroad of 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
Table 22.

22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Amount outstanding; in millions o f dollars)
Claims

Liabilities

End o f period

Total

Payable
in
dollars

Payable
in
foreign
currencies

Total

Payable
in
dollars

Payable in foreign
currenc ies
Deposits with
banks abroad
in reporter’s
name

O ther

1971—M ar........................
J u n e .......................
Sept........................
D ec . 11..................... J\

2,437
2,375
2,564
2,704
2,763

1,975
1,937
2,109
2,229
2,301

462
438
454
475
463

4,515
4,708
4,894
5,185
5,000

3,909
4,057
4,186
4,535
4,467

232
303
383
318
289

374
348
326
333
244

1972—M ar........................
Ju n e.......................
Sept........................

2,844
2,925
2,933
3,119
3,453

2,407
2,452
2,435
2,635
2,961

437
472
498
484
492

5,173
5,326
5,487
5,721
6,366

4,557
4,685
4,833
5,074
5,699

317
374
426
410
393

300
268
228
237
274

1973—M ar........................
June.......................
Sept........................
D ec.........................

3,375
3,375
3,670
4,080

2,874
2,807
2,971
3,314

502
568
698
765

7,149
7,433
7,788
8,556

6,262
6,574
6,849
7,645

458
499
528
484

429
361
411
428

1974— M ar........................
June.......................
'Sept........................
Dec.*5.....................

4,507
5,188
5,747
5,929

3,629
4,173
4,690
4,909

878
1,015
1,057
1,020

10,570
11,165
10,725
11,286

9,643
10,235
9,748
10,209

400
420
419
461

528
510
558
616

J
\

1 D ata on the 2 lines shown for this date differ
because o f changes in reporting coverage. Figures on
the first line are comparable with those shown for the




preceding date; figures on the second line are com pa­
rable with those shown for the following date.

MAY 1975 □ INTL. C AP ITAL TR A N S A C TIO N S OF T H E U.S.

A 73

23. 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

1973
Dec.

E urope:
A ustria.........................................................
Belgium-Luxembourg..............................
D enm ark....................................................
F in lan d .......................................................
F ran ce.........................................................
Germany, Fed. Rep. o f.......... ................
G reece.........................................................
Ita ly .............................................................
N etherlands................................................
N orw ay .......................................................
S p a in ...........................................................
Sweden........................................................
Sw itzerland................................................
T urkey.........................................................
United K ingdom ......................................
Yugoslavia..................................................
Other Western E u ro p e ............................
Eastern Europe..........................................

3
136
9
7
168
236
40
116
125
9
13
77
48
103
18
932
28
3
31

Claims on foreigners

1974

1973

Mar.

June

Sept.

4
226
17
8
161
238
21
133
114
9
24
68
43
94
26
1,123
31
3
26

12
405
18
9
204
222
28
143
104
8
17
56
52
114
28
1,219
36
6
31

18
489
22
12
192
246
28
150
113
10
20
57
40
106
38
1,429
34
7
77

Dec.p

1974

Dec.

Mar.

June

Sept.

21
516
20
16
235
314
40
143
107
9
19
66
38
136
25
1,235
60
5
66

17
106
46
44
310
284
51
239
112
18
50
244
71
101
34
1,543
49
15
104

16
153
37
42
413
337
87
330
103
22
112
414
74
90
41
1,835
30
19
79

17
139
27
80
537
345
76
409
126
35
101
420
106
78
46
1,869
41
23
97

15
114
25
91
491
322
69
431
144
32
69
424
97
154
41
1,768
39
20
90

25
131
40
120
458
340
65
418
147
36
81
382
89
136
45
1,855
43
22
142

Dec.p

T o tal....................................................

2,103

2,371

2,712

3,087

3,071

3,437

4,232

4,571

4,438

4,574

C anada............................................................

255

320

294

297

290

1,245

1,526

1,573

1,570

1,617

Latin America:
Argentina....................................................
B aham as.....................................................
B razil...........................................................
Chile.............................................................
C olom bia....................................................
C uba............................................................
Mexico.........................................................
P an am a.......................................................
P e ru .............................................................
Uruguay......................................................
Venezuela...................................................
Other L.A. republics................................
Neth. Antilles and Surinam ...................
Other Latin A m erica................................

22
419
64
20
9
*
44
13
15
2
31
51
6
22

18
206
78
6
18
*
72
14
17
3
45
45
5
37

18
307
125
9
22
*
71
19
11
2
36
60
6
59

28
325
160
14
13
*
64
21
15
2
53
63
8
50

36
281
119
20
14
*
64
28
13
2
49
83
25
81

47
633
230
42
40
1
235
120
47
5
134
134
12
214

52
760
409
78
44
1
260
178
65
6
136
172
12
158

52
992
523
64
51
1
263
187
60
5
171
172
16
136

59
518
419
124
49
1
287
114
40
6
190
182
14
169

69
594
460
103
50
1
292
132
43
5
193
193
20
148

T o tal....................................................

719

564

745

818

815

1,892

2,330

2,692

2,169

2,302

A sia:
China, People’s Republic o f (China
M ain lan d )..............................................
China, Rep. o f (Taiwan).........................
H ong K ong................................................
In d ia............................................................
Indonesia....................................................
Isra e l............................................................
J a p a n ...........................................................
K orea...........................................................
Philippines..................................................
T h ailan d .....................................................
Other A sia..................................................

42
34
41
14
14
25
297
37
17
6
178

20
52
24
14
13
31
374
38
9
7
273

39
72
19
13
22
39
374
45
19
7
401

23
72
19
10
38
40
352
66
28
10
431

17
94
19
7
49
51
346
75
25
10
547

11
121
48
37
54
38
888
105
73
28
239

8
184
65
36
51
38
1,212
109
87
31
264

3
119
68
31
67
37
970
124
86
43
313

8
127
64
37
81
53
1,109
123
108
23
311

19
137
64
37
85
44
1,154
201
94
24
386

T otal....................................................

705

855

1,050

1,089

1,240

1,642

2,087

1,860

2,043

2,246

A frica:
E g ypt...........................................................
South A frica..............................................
Zaire.............................................................
Other A frica..............................................

10
14
19
125

35
22
21
134

12
24
15
156

6
35
17
114

3
43
18
129

9
62
18
127

9
69
20
155

13
85
17
195

16
90
13
205

18
101
19
240

T o tal....................................................

168

212

206

172

193

216

253

310

325

378

Other countries:
A ustralia.....................................................
All o th e r................................................... ..

118
12

134
22

94
24

128
32

132
30

97
25

110
31

117
39

134
44

120
49
169

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

130

156

117

160

162

123

142

157

178

International and regional..........................

*

29

63

125

159

*

1

1

1

*

Grand to tal........................................

4,080

4,507

5,188

5,747

5,929

6,556

10,570

11,165

10,725

11,286

N ote.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.




D ata exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.

A 74

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 1975

24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions o f dollars)
Claims
C ountry or area

Total
liabilities

End o f period

Total

United
Kingdom

Other
Europe

Canada

Brazil

Mexico

O ther
Latin
America

Japan

Other
Asia

Africa

All
other

1970—Dec. •

3,102

2,950

146

708

669

183

60

618

140

292

71

64

1971—M ar..
June.
Sept..
D ec.1

3,177
3,172
2,939
3,159
3,138

2,983
2,982
3,019
3,118
3,068

154
151
135
128
128

688
687
672
705
704

670
677
765
761
717

182
180
178
174
174

63
63
60
60
60

615
625
597
652
653

161
138
133
141
136

302
312
319
327
325

77
75
85
86
86

72
74
75
85
84

1972—M ar..
June.
Sept..
D ec.1

3,093
3,300
3,448
3,540
3,631

3,141
3,206
3,187
3,312
3,409

129
108
128
163
191

713
712
695
715
755

737
748
757
775
793

175
188
177
184
187

60
61
63
60
64

665
671
662
658
692

137
161
132
156
134

359
377
390
406
395

81
86
89
87
86

85
93
96
109
111

1973—M ar..
June..
Sept..
D ec..

3,818
3,833
4,066
3,946

3,553
3,622
3,788
3,857

156
179
216
290

814
818
839
782

864
819
836
890

165
146
147
145

63
65
73
79

783
813
822
816

124
130
140
128

410
413
471
342

105
108
108
115

125
131
137
142

1974—M ar..
June.
Sept..
D ec.35

3,863
3,549
3,355
3,514

4,045
3,965
4,055
4,231

368
362
370
364

756
717
702
636

927
947
992
1,021

194
184
181
187

81
138
145
143

796
734
776
1,015

123
122
114
107

469
492
523
505

119
122
118
125

147
148
133
129

1 D ata on the 2 lines shown for this date differ because of 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.

25. OPEN MARKET RATES
(Per cent per annum )

Canada

U nited Kingdom

M onth
Treasury Day-tobills,
day
3 m o n th s1 money 2

Treasury
Prime
bank
bills,
bills,
3 months
3 months

France

Germany,
Fed. Rep. o f

Netherlands

Switzer­
land

Day-today
money

Clearing
banks’
deposit
rates

Day-today
m oney3

Treasury
bills,
60-90
days 4

Day-today
m oneys

Treasury
bills,
3 months

D ay-today
money

Private
discount
rate

1973.........................
1974.........................

5.43
7.63

5.27
7.69

10.45
12.99

9.40
11.36

8.27
9.85

7.96
9.48

8.92
12.87

6.40
6.06

10.18
8.76

4.07
6.90

4 .94
8.21

5.09
6.67

1974— A pr...............
M ay .............
J u n e .............
July..............
Aug..............
Sept..............
O ct...............
N ov..............
D ec..............

7.18
8,22
8.66
8.88
8.76
8.70
8.67
7.84
7.29

6.93
7.48
8.36
8.52
8.83
8.84
8.56
7.86
7.44

13.20
13.31
12.61
13.21
12.80
12.11
11.95
12.07
12.91

11.53
11.36
11.23
11.20
11.24
10.91
10.93
10.98
10.99

10.00
10.72
10.58
8.70
11.11
10.69
10.81
7.70
7.23

9.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50

11.81
12.90
13.59
13.75
13.68
13.41
13.06
12.40
11.88

5.63
6.63
5.63
5.63
5.63
5.63
5.63
5.63
5.13

5.33
8.36
8.79
9.13
9.05
9.00
8.88
7.20
8.25

6.64
7.00
7.00
7.50
7.50
7.42
7.38
6.72
6.69

9.86
9.00
8.98
8.57
7.09
5.08
7.81
7.00
6.96

6.50
6.50
6.50
7.00
7 .00
7.00
7.00
7.00
7.00

1975—Jan ................
Feb...............
M ar..............
A pr...............

6.65
6.34
6.29
6.59

6.82
6.88
6.73
6.68

11.93
11.34
10.11
9.41

10.59
9.88
9.49
9.26

8.40
7.72
7.53
7.50

9.30
9.50
8.22
7.09

11.20
9.91
9.06
8.34

5.13
3.88
3.38

7.54
4.04
4.87
4.62

6.60
6.56
5.94
5.53

6.18
7.33
5.87
4.13

7.00
7 .00
7 .00
6.50

1 Based on average yield o f weekly tenders during month.
2 Based on weekly averages o f daily closing rates.
3 Rate shown is on private securities.
4 Rate in effect at end o f month.

5 M onthly averages based on daily quotations.
N ote.—F or description and back data, see “ International Finance,”
Section 15 o f Supplement to Banking and M onetary S tatistics, 1962.

NOTES TO TABLES 19a A N D 19b O N PAGES A-70 A N D A-71, RESPECTIVELY:
1 Cayman Islands included beginning Aug. 1973.
2 Total assets and total liabilities payable in U.S. dollars amounted to
$29,563 million and $29,254 million, respectively, on Feb. 28, 1975.
N ote.—Components may not add to totals due to rounding.




For a given month, total assets may not equal total liabilities because
some branches do not adjust the parent’s equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.

MAY 1975 □ CENTRAL BANK AND EXCHANGE RATES

A 75

26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Rate as o f Apr. 30, 1975

Rate as o f Apr. 30, 1975
Country

Country
Per
cent

Per
cent

M onth
effective

M onth
effective

A rgentina........................
A u stria ............................
Belgium............................
B razil...............................

18.0
6 .0
7 .0
18.0

Feb.
Apr.
Apr.
Feb.

1972
1975
1975
1972

Ita ly .....................
Jap a n ...................
M exico................
N etherlands. . . .

8.0
8.5
4.5
6 .0

Dec.
Apr.
June
M ar.

1974
1975
1942
1975

C an a d a ............................
D enm ark.........................
F rance..............................
Germany, Feb. Rep. of.

8.25
8 .0
10.0
5 .0

Jan.
Apr.
Apr.
M ar.

1975
1975
1975
1975

N orw ay...............
Sweden................
Switzerland........
United Kingdom
Venezuela...........

5.5
7 .0
5 .0
9.75
5 .0

Mar.
Aug.
Feb.
Apr.
Oct.

1974
1974
1975
1975
1970

N ote.—R ates 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 a t which it is understood the central bank transacts
the largest proportion o f its credit operations. O ther 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;
B razil —8 per cent for secured paper and 4 per cent for certain agricultural
paper;

Japan —Penalty rates (exceeding the basic rate shown) for borromings

from the central bank in excess o f an individual bank’s quota;
United Kingdom —The Bank’s minimum lending rate, which is the
average rate o f discount for Treasury bills established at the most recent
tender plus one-half per cent rounded to the nearest one-quarter per cent
above.
Venezuela —2 per cent for rediscounts o f certain agricultural paper, 4%
per cent for advances against government bonds, and 5 Vi per cent for
rediscounts o f certain industrial paper and on advances against promissory
notes or securities o f first-class Venezuelan companies.

27. FOREIGN EXCHANGE RATES
(In cents per unit o f foreign currency)
Canada
(dollar)

D enm ark
(krone)

Australia
(dollar)

Austria
(schilling)

Belgium
(franc)

1971.......................
1972.......................
1973.......................
1974......................

113.61
119.23
141.94
143.89

4.0009
4.3228
5.1649
5.3564

2.0598
2.2716
2.5761
2.5713

99.021
100.937
99.977
102.257

13.508
14.384
16.603
16.442

18.148
19.825
22.536
20.805

28.768
31.364
37.758
38.723

13.338
13.246
12.071
12.460

244.42
250.08
245.10
234.03

.16174
.17132
.17192
.15372

.28779
.32995
.36915
.34302

1974—A pr............
M ay..........
J u ly ...........
A ug...........
Sept...........
Oct............
N ov...........
D ec...........

148.41
148.44
148.34
147.99
148.24
144.87
130.92
131.10
131.72

5.3345
5.5655
5.5085
5.4973
5.3909
5.2975
5.4068
5.5511
5.7176

2.5686
2.6559
2.6366
2.6378
2.5815
2.5364
2.5939
2.6529
2.7158

103.356
103.916
103.481
102.424
102.053
101.384
101.727
101.280
101.192

16.496
17.012
16.754
16.858
16.547
16.111
16.592
16.997
17.315

20.541
20.540
20.408
20.984
20.912
20.831
21.131
21.384
22.109

39.594
40.635
39.603
39.174
38.197
37.580
38.571
39.836
40.816

12.711
12.841
12.735
12.759
12.525
12.316
12.416
12.397
12.352

238.86
241.37
239.02
238.96
234.56
231.65
233.29
232.52
232.94

.15720
.15808
.15379
.15522
.15269
.15103
.14992
.14996
.15179

.36001
.35847
.35340
.34372
.33082
.33439
.33404
.33325
.33288

1975—Jan ............
Feb............
M ar...........
A pr............

132.95
134.80
135.85
134.16

5.9477
6.0400
6.0648
5.9355

2.8190
2.8753
2.9083
2.8433

100.526
99.957
99.954
98.913

17.816
18.064
18.397
18.119

22.893
23.390
23.804
23.806

42.292
42.981
43.120
42.092

12.300
12.550
12.900
12.686

236.23
239.58
241.80
237.07

.15504
.15678
.15842
.15767

.33370
.34294
.34731
.34224

Nether­
lands
(guilder)

New
Zealand
(dollar)

Norway
(krone)

Portugal
(escudo)

Switzer­
land
(franc)

United
Kingdom
(pound)

Period

Period

Malaysia
(dollar)

Mexico
(peso)

France
(franc)

Germany
(Deutsche
mark)

South
Africa
(rand)

India
(rupee)

Spain
(peseta)

Ireland
(pound)

Sweden
(krona)

Italy
(lira)

Japan
(yen)

1971.......................
1972.......................
1973.......................
1974.......................

32.989
35.610
40.988
41.682

8.0056
8.0000
8.0000
8.0000

28.650
31.153
35.977
37.267

113.71
119.35
136.04
140.02

14.205
15.180
17.406
18.119

3.5456
3.7023
4.1080
3.9506

140.29
129.43
143.88
146.98

1.4383
1.5559
1.7178
1.7337

19.592
21.022
22.970
22.563

24.325
26.193
31.700
33.688

244.42
250.08
245.10
234.03

1974— A pr............
M ay..........
June..........
Ju ly ...........
A ug..........
Sept..........
O ct............
N ov...........
D ec...........

41.959
42.155
41.586
41.471
42.780
41.443
41.560
43.075
42.431

8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000

37.416
38.509
37.757
38.043
37.419
36.870
37.639
38.438
39.331

145.12
146.07
145.29
145.15
143.73
139.64
129.95
130.42
130.56

18.170
18.771
18.410
18.519
18.246
17.993
18.165
18.404
18.873

4.0232
4.1036
4.0160
3.9886
3.9277
3.8565
3.9246
3.9911
4.0400

148.85
148.78
148.86
149.73
146.83
142.69
142.75
143.88
144.70

1.7080
1.7409
1.7450
1.7525
1.7466
1.7339
1.7422
1.7522
1.7716

22.730
23.388
22.885
22.861
22.597
22.333
22.683
23.175
23.897

33.044
34.288
33.449
33.739
33.509
33.371
34.528
36.384
38.442

238.86
241.37
239.02
238.96
234.56
231.65
233.29
232.52
232.94

1975—Jan ............
Feb............
M ar...........
A pr...........

43.359
44.136
44.582
43.797

8.0000
8.0000
8.0000
8.0000

40.715
41.582
42.124
41.291

131.72
133.30
134.31
132.66

19.579
19.977
20.357
20.049

4.0855
4.1139
4.1276
4.0596

145.05
147.16
148.70
147.01

1.7800
1.7784
1.7907
1.7756

24.750
25.149
25.481
25.171

39.571
40.450
40.273
39.080

236.23
239.58
241.80
237.07

N ote.—Averages o f certified noon buying rates in New York for cable
transfers. F o r description o f rates and back data, see “International Fi­
nance,” Section 15 o f Supplement to Banking and M onetary Statistics , 1962.




A 76

Board of Governors of the Federal Reserve System
G eorge W. M itchell , Vice Chairman

A rthur F. B u r n s , Chairman
John E. S h eeh an

Jeffrey M. B ucher

R obert C. H olland
P hilip E. C oldwell

H enry C. W allich

O FFICE OF M A N A G IN G DIR EC TO R
FO R O PE R A T IO N S
J o h n M . D e n k l e r , D epu ty M anaging D irector
* L e v o n H . G a r a b e d i a n , A ssistan t M anaging

D irecto r
A ssistan t D irector
and Program D irecto r fo r
C ontingency Planning
W i l l i a m W . L a y t o n , D irecto r of Equal
E m ploym ent O pportunity
B r e n t o n C . L e a v i t t , P rogram D irector for
Banking Structure
P e t e r E . B a r n a , P rogram D irecto r fo r
Bank H olding C om pany A n alysis

G o r d o n B . G r im w o o d ,

OFFICE OF M A N A G IN G DIRECTOR FOR
RESEAR CH A N D ECO NO M IC POLICY

OFFICE OF BOARD MEMBERS
T h o m a s J. O ’C o n n e l l ,

Counsel to the

Chairman
R o b e r t S o l o m o n , A d viser to the B oard
J o s e p h R . C o y n e , A ssistan t to the B oard
J o h n S . R i p p e y , A ssistan t to the B oard
J a y P a u l B r e n n e m a n , Special A ssistan t to

the

B oard
J o h n J. H a r t , Special A ssistan t to the
F r a n k O ’B r i e n , J r ., Special A ssistan t

B oard
to the

B oard
D o n a l d J. W

in n

,

J. C h a r l e s P a r t e e , M anaging D irector
S t e p h e n H . A x i l r o d , A d viser to the B oard
S a m u e l B . C h a s e , J r ., A d viser to the B oard
A r t h u r L . B r o i d a , A ssistan t to the B oard
M u r r a y A l t m a n n , Special A ssistan t to the

B oard
N orm and R.

V.

B ernard,

S pecial A ssistant

to the B oard

Special A ssistan t to the

B oard

DIVISION OF RESEARCH AND STATISTICS
LEGAL DIVISION
J o h n D . H a w k e , J r . , G en era l C ounsel
J o h n N i c o l l , D eputy G eneral Counsel
B a l d w i n B . T u t t l e , A ssistan t General

Counsel

DIVISION OF FEDERAL RESERVE BANK
OPERATIONS
R o n a l d G . B u r k e , D irecto r
J a m e s R . K u d l i n s k i , A sso cia te D irector
tE . M a u r i c e M c W h i r t e r , A sso cia te D irector
W i l l i a m H . W a l l a c e , A sso cia te D irector
W a l t e r A . A l t h a u s e n , A ssista n t D irector
H a r r y A . G u i n t e r , A ssista n t D irecto r
T h o m a s E. M e a d , A ssistan t D irecto r

P. D . R i n g , A ssistan t D irecto r



C harles R . M

c N e il l ,

A ssistan t to the

General Counsel
A l l e n L. R a i k e n , A d viser
G a r y M . W e l s h , A d viser

OFFICE OF SAVER AND CONSUMER AFFAIRS
A ssistan t to the
B oard and D irecto r
J a n e t O . H a r t , D eputy D irector
R o b e r t S . P l o t k i n , A ssistan t D irector
F r e d e r ic S o l o m o n ,

L y l e E . G r a m l e y , D irecto r
J a m e s L . P i e r c e , A ssociate D irector
P e t e r M . K e i r , A d viser
J a m e s L . K i c h l i n e , A d viser
S t a n l e y J. S i g e l , A d viser
J o s e p h S . Z e i s e l , A d viser
J a m e s B . E c k e r t , A sso cia te A d viser
E d w a r d C . E t t i n , A sso cia te A d viser
J o h n H . K a l c h b r e n n e r , A ssociate A d viser
R o b e r t J. L a w r e n c e , A ssociate A d viser
E l e a n o r J. S t o c k w e l l , A ssociate A d viser
R o b e r t M . F i s h e r , A ssistan t A d viser
J. C o r t l a n d G . P e r e t , A ssistan t A d viser
S t e p h e n P . T a y l o r , A ssista n t A d viser
H e l m u t F . W e n d e l , A ssista n t A d viser
L e v o n H . G a r a b e d i a n , A ssistan t D irector

DIVISION OF DATA PROCESSING
C h a r l e s L . H a m p t o n , D ir e c to r
G l e n n L . C u m m i n s , A s s is ta n t D ire c to r
W a r r e n N . M in a m i , A s s is ta n t D ire c to r
R o b e r t J. Z e m e l , A s s is ta n t D ire c to r

DIVISION OF PERSONNEL
K e i t h D . E n g s t r o m , D ir e c to r
C h a r l e s W . W o o d , A s s is ta n t D ire c to r

OFFICE OF THE CONTROLLER
J o h n K a k a l e c , C o n tro lle r
T y l e r E . W i l l i a m s , J r ., A ssista n t C o n tro ller

OFFICE OF THE SECRETARY
T h e o d o r e E . A l l i s o n , S e c re ta ry
G r if f it h L . G a r w o o d , A ssista n t S e c re ta ry
^R o b e r t S m it h III, A ssista n t S e c re ta ry

DIVISION OF BANKING SUPERVISION
AND REGULATION
B r e n t o n C . L e a v i t t , D ire c to r
F r e d e r ic k R . D a h l , A ssista n t D ire c to r
J a c k M . E g e r t s o n , A ss is ta n t D ire c to r
J o h n N . L y o n , A ss is ta n t D ire c to r
J o h n T . M c C l i n t o c k , A ssista n t D ire c to r
T h o m a s A . S i d m a n , A ssista n t D ire c to r
W il l ia m W . W i l e s , A ssista n t D ire c to r
J o h n E . R y a n , A d v is e r

DIVISION OF INTERNATIONAL FINANCE
R a l p h C . B r y a n t , D ir e c to r
J o h n E . R e y n o l d s , A sso c ia te D ire c to r
R o b e r t F . G e m m il l , A d v is e r
R e e d J. I r v i n e , A d v is e r
H e l e n B . J u n z , A d v is e r
B e r n a r d N o r w o o d , A d v is e r
S a m u e l P i z e r , A d v is e r
G e o r g e B . H e n r y , A s s o c ia te A d v ise r
C h a r l e s J. S i e g m a n , A ssista n t A d v ise r
E d w i n M . T r u m a n , A ss is ta n t A d v is e r

DIVISION OF ADMINISTRATIVE SERVICES
W a l t e r W . K r e i m a n n , D ir e c to r
D o n a l d E . A n d e r s o n , A s s is ta n t D ire c to r
J o h n D . S m i t h , A s s is ta n t D ire c to r

* Temporary appointment.
fO n leave of absence.

A 77




$On loan from the Federal Reserve Bank of Dallas.

A 78

Federal Open Market Committee
A r t h u r F. B u r n s , C h airm an
E r n e s t T. B a u g h m a n
Je ffr e y M . B u c h e r
P hilip E. C o l d w e l l

A l f r e d H a y e s , V ic e C h a irm a n

D a v i d P. E a s t b u r n
R obe r t C . H o l l a n d
B ruce K. M ac L au r y
R obe r t P . M ay o

Secretary
D eputy Secretary
V. B e r n a r d , A ssistant

Econom ist
(International Finance)
E d w a r d G . B o e h n e , A ssociate Econom ist
R a l p h C . B r y a n t , A ssociate Econom ist
S a m u e l B . C h a s e , J r . , A ssociate Economist
R i c h a r d G . D a v i s , A ssociate Econom ist
R a l p h T . G r e e n , A ssociate Econom ist
J o h n K a r e k e n , A ssociate Econom ist
J a m e s L . P i e r c e , A ssociate Econom ist
J o h n E . R e y n o l d s , A ssociate Economist
K a r l O . S c h e l d , A ssociate Economist

A r t h u r L . B r o id a ,

R obert Solom on

M urray A ltm a n n ,
N orm and R.

S ecretary
General Counsel
G. G u y , D eputy General Counsel
J o h n N i c o l l , A ssistan t General Counsel
J . C h a r l e s P a r t e e , Senior Economist
S t e p h e n H . A x i l r o d , Econom ist
(Dom estic Finance)
L y l e E . G r a m l e y , Econom ist
(Dom estic Business)

T h o m a s J . O ’C o n n e l l ,
E d w a rd

A lan R . H o lm es,

G e or ge W . M it c h e l l
Jo h n E. S h e e h a n
H e n r y C. W a l l ic h

Manager, System Open Market Account
Deputy Manager for Domestic Operations
Deputy Manager for Foreign Operations

P e t e r D . S t e r n l ig h t ,
Scott E . P a rd ee,

Federal Advisory Council
T h o m a s I. S t o r r s , f i f t h f e d e r a l r e s e r v e d i s t r i c t ,
D onald

E.

L a s a t e r , e ig h t h f e d e r a l r e s e r v e d is t r ic t ,

G e o r g e B . R o c k w e l l , f ir s t f e d e r a l

W il l ia m

r e s e r v e d is t r ic t

G eorge

r e s e r v e d is t r ic t

E ugene

r e s e r v e d is t r ic t

D ix o n , n in t h f e d e r a l

H.

A d a m s, t e n t h fed era l

r e s e r v e d is t r ic t

F u l t z , fo u rth fed eral

B en

F.

L o v e , e le v en t h federal

RESERVE DISTRICT

r e s e r v e d is t r ic t

(Vacancy),

L a w r e n c e A . M e r r i g a n , s ix t h f e d e r a l

tw elfth

R E SE R V E D IST R IC T

r e s e r v e d is t r ic t




H.

r e s e r v e d is t r ic t

J a m e s F . B o d i n e , t h ir d f e d e r a l

E.

M u r r a y , sev en th federal

r e s e r v e d is t r ic t

E llm ore C . P a t te r so n , secon d federal

C l a ir

F.

President
Vice President

H erbert

V.

Secretary
Associate Secretary

Prochnow ,

W il l ia m J . K o r s v ik ,

fed era l

A 79

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON* ...............

02106

Louis W. Cabot
Robert M. Solow

Frank E. Morris
James A. McIntosh

NEW YORK*

10045

Roswell L. Gilpatric
Frank R. Milliken
Donald Nesbitt

Alfred Hayes
Richard A. Debs

Buffalo ...............

14240

Ronald B. Gray

PHILADELPHIA

19105

John R. Coleman
Edward J. Dwyer

David P. Eastburn
Mark H. Willes

CLEVELAND*

44101

Horace A. Shepard
Robert E. Kirby
Phillip R. Shriver
G. Jackson Tankersley

Willis J. Winn
Walter H. MacDonald

Robert W. Lawson, Jr.
E. Craig Wall, Sr.
James G. Harlow
Charles W. DeBell

Robert P. Black
George C. Rankin

Cincinnati ............
Pittsburgh ............

45201
15230

RICHMOND*...............23261
Baltimore ................. 21203
Charlotte ................. 28201

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne

Culpeper Communications
Center ................. 22701

ATLANTA ..............

30303

Birmingham .........
Jacksonville .........
Nashville ..............
New Orleans ........
Miami Office ........

35202
32203
37203
70161

CHICAGO* ............

60690

Detroit ...................

48231

ST. LOUIS ..............

63166

Little Rock ...........
Louisville ............
Memphis ..............

72203
40201
38101

MINNEAPOLIS
Helena ...................
KANSAS CITY

59601
64198

Denver .................
Oklahoma City
Omaha .................

80217
73125
68102

DALLAS .................

75222

El Paso .................
Houston ................
San Antonio .........

79999
77001
78295

SAN FRANCISCO .. ..94120
Los Angeles .........
Portland ................
Salt Lake City
Seattle ...................

J. Gordon Dickerson, Jr.
H. G. Pattillo
Clifford M. Kirtland, Jr.
Frank P. Samford, Jr.
James E. Lyons
John C. Tune
Floyd W. Lewis

Monroe Kimbrel
Kyle K. Fossum

Peter B. Clark
Robert H. Strotz
W. M. Defoe

Robert P. Mayo
Daniel M. Doyle

Edward J. Schnuck
Sam Cooper
W. M. Pierce
James H. Davis
Jeanne L. Holley

Darryl R. Francis
Eugene A. Leonard

Bruce B. Dayton
James P. McFarland
William A. Cordingley

Bruce K. MacLaury
Clement A. Van Nice

Robert T. Person
Harold W. Andersen
Maurice B. Mitchell
James G. Harlow, Jr.
Durward B. Varner

George H. Clay
John T. Boy sen

John Lawrence
Charles T. Beaird
Herbert M. Schwartz
Thomas J. Barlow
Pete J. Morales, Jr.

Ernest T. Baughman
T. W. Plant

O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
Loran L. Stewart
Sam Bennion
Malcolm T. Stamper

John J. Balles
John B. Williams

Hiram J. Honea
Edward C. Rainey
Jeffrey J. Wells
George C. Guynn
W. M. Davis

33152

55480

90051
97208
84110
98124

Vice President
in charge of branch

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

Howard L. Knous

J. David Hamilton
William G. Evans
Robert D. Hamilton

Fredric W. Reed
James L. Cauthen
Carl H. Moore

Gerald R. Kelly
William M. Brown
A. Grant Holman
Paul W. Cavan

* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A 80

Federal Reserve Board Publications
A vailable from Publications Services, D ivision of A d ­
m inistrative Services, B o a rd of G overnors of the Fed­
eral R eserve System , W ashington, D .C . 20551. W here
a charge is indicated, rem ittance should accom pany
request and be made paya b le to the order of the B oard
of G overnors of the Federal R eserve System in a form
collectible at p a r in U .S. currency. (Stam ps and
coupons are not accep ted .)
The

F ed er a l R eserve
S y st e m — P u r po se s
and
F u n c t i o n s . 1974. 125 pp. $1.00 each; 10 or more

to one address, $.75 each.
A n n u a l R eport
F e d e r a l R e s e r v e B u l l e t i n . M o n th ly . $20.00 per
y e a r or $2.00 e a c h in th e U n it e d S ta te s a n d its
p o s s e s s io n s , a n d in B o liv ia , C a n a d a , C h ile , C o ­
lo m b ia , C o s ta R ic a , C u b a , D o m in ic a n R e p u b lic ,
E c u a d o r , G u a te m a la , H a it i, R e p u b lic o f H o n d u r a s,
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H is t o r ic a l C h a r t B o o k . Issued annually in Sept.

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issue. $1.25 each in the United States and countries
listed above; 10 or more to one address, $1.00
each. Elsewhere, $1.50 each.
T h e F e d e r a l R e s e r v e A c t , a s a m e n d e d th ro u g h D e ­
c e m b e r 1971, w ith a n a p p e n d ix c o n ta in in g p r o v i­
s io n s o f c er ta in o th er sta tu te s a ffe c tin g th e F e d e r a l
R e s e r v e S y s te m . 252 p p . $1.25.
R e g u l a t io n s o f t h e B o a r d o f G o v e r n o r s o f t h e
F ed e r a l R eserve S y st e m .
P u b l is h e d In t e r p r e t a t io n s o f t h e B o a r d o f G o v ­
e r n o r s , a s o f D e c e m b e r 31, 1974. $2.50.
S u p p l e m e n t t o B a n k in g a n d M o n e t a r y S t a t is t ic s .
Sec. 1. B a n k s a n d th e M o n e ta r y S y s te m . 1962.
35 p p . $.35. Sec. 2. M e m b e r B a n k s . 1967. 59
p p . $.50. Sec. 5. B a n k D e b it s . 1966. 36 p p . $.35.
Sec. 6. B a n k I n c o m e . 1966. 29 p p . $.35. Sec.

9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec.
10. Member Bank Reserves and Related Items.
1962 . 64 pp. $.50. Sec. 11. Currency. 1963. 11
p p . $.35. Sec. 12. Money Rates and Securities
Markets. 1966. 182 p p . $.65. Sec. 14. Gold. 1962.
24 pp. $.35. Sec. 15. International Finance. 1962.
92 p p . $.65. Sec. 16 (New). Consumer Credit.
1965. 103 pp. $.65.
I n d u s t r i a l P r o d u c t i o n — 1971 E d i t i o n . 1972. 383
pp. $4.00 each; 10 or more to one address, $3.50
each.



B a n k M erg ers & t h e R e g u l a t o r y A g e n c ie s: A p ­
p l i c a t i o n o f t h e B a n k M e r g e r A c t o f 1960.

1964. 260 pp. $1.00 each; 10 or more to one
address, $.85 each.
T h e P e r f o r m a n c e o f B a n k H o l d in g

C o m p a n ie s .

1967. 29 pp. $.25 each; 10 or more to one address,
$.20 each.
T h e F e d e r a l F u n d s M a r k e t . 1959. I l l pp. $1.00
each; 10 or more to one address, $.85 each.
T r a d i n g i n F e d e r a l F u n d s . 1965. 116 pp. $1.00
each; 10 or more to one address, $.85 each.
U .S . T reasury A d v a n c e R e f u n d in g , Ju n e
1960-J uly 1964. 1966. 65 pp. $.50 each; 10 or
more to one address, $.40 each.
B a n k C r e d i t - C a r d a n d C h e c k -C r e d it P l a n s . 1968.
102 pp. $1.00 each; 10 or more to one address,
$.85 each.
In t e r e s t R a t e E x p e c t a t io n s : T ests o n Y ie l d
S p r e a d s A m o n g S h o r t -T e r m G o v e r n m e n t S e ­
c u r i t i e s . 1968. 83 pp. $.50 each; 10 or more to

one address, $.40 each.
Survey

of

F in a n c ia l

C h a r a c t e r i s t ic s

of

Con­

1966. 166 pp. $1.00 each; 10 or more
to one address, $.85 each.
S u r v e y o f C h a n g e s i n F a m i l y F i n a n c e s . 1968. 321
pp. $1.00 each; 10 or more to one address, $.85
each.
su m er s.

R e p o r t o f t h e J o i n t T r e a s u r y -F e d e r a l R e s e r v e
S t u d y of th e
U .S. G o v e r n m e n t S e c u r it ie s
M a r k e t . 1969. 48 pp. $.25 each; 10 or more to

one address, $.20 each.
J o i n t T r e a s u r y -F e d e r a l R e s e r v e S t u d y o f T h e
G o v e r n m e n t S e c u r it ie s M a r k e t : S t a f f S t u d ­
ie s — P a r t 1. 1970. 86 pp. $.50 each; 10 or more
to one address, $.40 each. P a r t 2. 1971. 153 pp.
and P a r t 3. 1973. 131 pp. Each volume $1.00;

10 or more to one address, $.85 each.
O pen

M a r k e t P o l ic ie s a n d O p e r a t i n g P r o c e ­
S t a f f S t u d i e s . 1971. 218 pp. $2.00; 10

dures—

or more to one address, $1.75 each.
R e a p p r a is a l o f t h e F e d e r a l R e se r v e D is c o u n t
M e c h a n i s m , Vol. 1. 1971. 276 pp. Vol. 2. 1971.

173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00
each; 10 or more to one address, $2.50 each.
T h e E c o n o m e t r ic s o f P r ic e D e t e r m i n a t i o n C o n ­
f e r e n c e , October 30-31, 1970, Washington, D .C .

Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or
more to one address, $4.50 each. Paper ed. $4.00
each; 10 or more to one address, $3.60 each.
F ed e r a l R eser v e S ta ff S t u d y : W ays to M o d er a te
F l u c t u a t i o n s i n H o u s i n g C o n s t r u c t i o n , Dec.

1972. 487 pp. $4.00 each; 10 or more to one
address, $3.60 each.
L e n d in g
F u n c t io n s o f t h e F e d e r a l R ese r v e
B a n k s : A H is t o r y , by Howard H . Hackley. 1973.

271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
I n t r o d u c t i o n t o F l o w o f F u n d s . 1975. 64 pp. $.50
each; 10 or more to one address, $.40 each.

A 81

STAFF ECONOMIC STUDIES
Studies and papers on econom ic and financial su b je c ts.
that are of general interest in the field of econom ic
research.
S u m m a ries O n l y P r in t e d in t h e B u l l e t in
(L im ited supply of m im eographed copies of full
text available upon request fo r single copies)
T h e Im p a c t o f H o l d in g C o m p a n y A c q u is it io n s o n
A g g r e g a t e C o n c e n t r a t i o n in B a n k i n g , by
Samuel H . Talley. Feb. 1974. 24 pp.
O p e r a t i n g P o l ic ie s o f B a n k H o l d i n g C o m p a n i e s —
P a r t II: N o n b a n k i n g S u b s i d i a r i e s , by Robert J.

Lawrence. Mar. 1974. 59 pp.
S h ort-R u n V a r i a t i o n s in t h e M o n e y S t o c k — S e a ­
s o n a l o r C y c l i c a l ? by Herbert M . Kaufman and
Raymond E . Lombra. June 1974. 27 pp.
H o u s e h o l d - S e c t o r E c o n o m i c A c c o u n t s , by David
F. Seiders. Jan. 1975. 84 pp.
P r in t e d in F u l l in t h e B u l l e t in
Staff E conom ic Studies shown in list below.

REPRINTS

R e v i s e d M e a s u r e s o f M a n u f a c t u r i n g C a p a c it y
U t i l i z a t i o n . 10/71.
R e v i s io n o f B a n k C r e d it S e r i e s . 12/71.
A s s e t s a n d L i a b il it ie s o f F o r e i g n B r a n c h e s o f
U.S. B a n k s . 2/72.
B a n k D e b i t s , D e p o s i t s , a n d D e p o s it T u r n o v e r —
R e v i s e d S e r i e s . 7/72.
Y i e l d s o n N e w l y I s s u e d C o r p o r a t e B o n d s . 9/72.
R e c e n t A c t i v i t ie s o f F o r e i g n B r a n c h e s o f U .S .
B a n k s . 10/72.
R e v i s io n o f C o n s u m e r C r e d it S t a t i s t i c s . 10/72.
O n e - B a n k H o l d i n g C o m p a n i e s B e f o r e t h e 1970
A m e n d m e n t s . 12/72.
Y ie l d s o n R e c e n t l y O f f e r e d C o r p o r a t e B o n d s .

5/73.
F e d e r a l F is c a l P o l i c y , 1965-72. 6/73.
C a p a c it y U t i l i z a t i o n in M a jo r M a t e r ia l s I n d u s ­
t r i e s . 8/73.
C r e d i t -C a r d a n d C h e c k -C r e d it P l a n s a t C o m m e r ­
c i a l B a n k s . 9/73.
R a t e S o n C o n s u m e r I n s t a l m e n t L o a n s . 9/73.
N e w S e r ie s f o r L a r g e M a n u f a c t u r i n g C o r p o r a ­
t i o n s . 10/73.
M o n e y S u p p l y in t h e C o n d u c t o f M o n e t a r y
P o l i c y . 1/73.
U .S. E n e r g y S u p p l i e s a n d U s e s , Staff Economic

Study by Clayton Gehman. 12/73.
(Except fo r Staff P apers, Staff Econom ic Studies, and
som e leading articles, m ost of the articles reprinted do
not exceed 12 p a g e s.)
S e a s o n a l F a c t o r s A f f e c t in g B a n k R e s e r v e s . 2/58.
M e a s u r e s o f M e m b e r B a n k R e s e r v e s . 7/63.
R ese a r c h o n B a n k in g S t r u c t u r e a n d P er fo r m ­
a n c e , Staff Economic Study by Tynan S m ith .

4/66.
A R e v is e d In d e x o f M a n u f a c t u r in g C a p a c it y ,
Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 11/66.
U .S. I n t e r n a t i o n a l T r a n s a c t i o n s : T r e n d s in
1960-67. 4/68.
E u r o - D o l l a r s : A C h a n g i n g M a r k e t . 10/69.
R ecent C hanges in S tructure of Commercial
B anking . 3/70.
M e a s u r e s o f S e c u r it y C r e d i t . 12/70.
M o n e t a r y A g g reg a tes a n d M o n e y M arket C o n ­
d i t i o n s in O p e n M a r k e t P o l i c y . 2/71.
I n t e r e s t R a t e s , C r e d it F l o w s , a n d M o n e t a r y A g ­
g r e g a t e s S in c e 1964. 6/71.
In d u s t r ia l P r o d u c t io n — R e v is e d a n d N e w M e a s ­
u r e s . 7/71.




R e c e n t D e v e l o p m e n t s in t h e U .S. B a l a n c e o f
P a y m e n t s . 4/74.
C a p a c it y U t i l i z a t i o n f o r M a jo r M a t e r i a l s : R e ­
v i s e d M e a s u r e s . 4/74.
N u m e r ic a l S p e c if ic a t i o n s o f F i n a n c i a l V a r i a b l e s
a n d T h e ir R o l e in M o n e t a r y P o l i c y . 5/74.
B a n k i n g a n d M o n e t a r y S t a t i s t i c s , 1973. Selected

series of banking and monetary statistics for 1973
only. 3/74 and 7/74.
I n f l a t i o n a n d S t a g n a t i o n in M a jo r F o r e i g n
d u s t r i a l C o u n t r i e s . 10/74.

In ­

R e v i s io n o f t h e M o n e y S t o c k M e a s u r e s a n d M e m ­
b e r B a n k D e p o s i t s . 12/74.
C h a n g e s in T im e a n d S a v i n g s D e p o s it s a t C o m ­
m e r c ia l B a n k s , A p r il - J u l y 1974. 1/75.
U .S. I n t e r n a t i o n a l T r a n s a c t i o n s i n 1974. 4/75.
M o n e t a r y P o l ic y in a C h a n g i n g F i n a n c i a l E n v i r ­
o n m e n t : O p e n M a r k e t O p e r a t i o n s in
1974.

4/75.
T h e S t r u c t u r e o f M a r g in C r e d i t . 4/75.
C h a n g e s in B a n k L e n d i n g P r a c t i c e s , 1974. 4/75.
N e w S t a t is t ic a l S e r ie s o n L o a n C o m m i t m e n t s a t
S e l e c t e d L a r g e C o m m e r c ia l B a n k s . 4/75.

A 82

Federal Reserve Bulletin □ May 1975

Index to Statistical Tables
References are to pages A-2 through A-75 although the prefix “ A ” is omitted in this index
(For list of tables published periodically, but not monthly, see inside back cover)
ACCEPTANCES, bankers, 9, 25, 27
Agricultural loans of commercial banks, 16, 18
Assets and liabilities (See also Foreigners):
Banks, by classes, 14, 16, 17, 18, 30
Federal Reserve Banks, 10
Nonfinancial corporations, current, 41
Automobiles:
Consumer instalment credit, 45, 46, 47
Production index, 48, 49
BANK credit proxy, 13
Bankers balances, 16, 17, 20
(See also Foreigners, claims on, and liabilities to)
Banks for cooperatives, 38
Bonds (See also U .S. Govt, securities):
New issues, 38, 39, 40
Yields and prices, 28, 29
Branch banks:
Assets, foreign branches of U .S. banks, 70
Liabilities of U .S. banks to their foreign branches
and foreign branches of U .S. banks, 22, 71
Brokerage balances, 69
Business expenditures on new plant and equipment, 41
Business indexes, 50
Business loans (See Commercial and industrial loans)

Demand deposits:
Adjusted, commercial banks, 11, 13, 17
Banks, by classes, 14, 17, 20, 21
Ownership by individuals, partnerships, and cor­
porations, 24
Subject to reserve requirements, 13
Turnover, 11
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 24
Banks, by classes, 14, 17, 20, 21, 30
Federal Reserve Banks, 10, 72
Subject to reserve requirements, 13
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 41
EMPLOYMENT, 50, 52
FARM mortgage loans, 42
Federal agency obligations, 9, 10, 11
Federal finance:
Receipts and outlays, 32, 33
Treasury operating balance, 32
Federal funds, 5, 16, 18, 21, 27
Federal home loan banks, 37, 38
Federal Home Loan Mortgage Corporation, 37, 42, 43
Federal Housing Administration, 42, 43, 44
Federal intermediate credit banks, 37, 38
Federal land banks, 37, 38, 42
Federal National Mortgage Assn., 37, 38, 42, 43, 44
Federal Reserve Banks:
Condition statement, 10
U .S. Govt, securities held, 2, 10, 11, 34, 35
Federal Reserve credit, 2, 4, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 37-, 38
Finance companies:
Loans, 18, 46, 47
Paper, 25, 27
Financial institutions, loans to, 16, 18
Float, 2
Flow of funds, 56, 57
Foreign:
Currency operations, 9, 10
Deposits in U .S. banks, 3, 10, 17, 21, 72
Exchange rates, 75
Trade, 59
Foreigners:
Claims on, 66, 67, 68, 72, 73, 74
Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74

CAPACITY utilization, 50
Capital accounts:
Banks, by classes, 14, 17, 22
Federal Reserve Banks, 10
Central banks, 60, 75
Certificates of deposit, 22
Commercial and industrial loans:
Commercial banks, 13, 16
Weekly reporting banks, 18, 23
Commercial banks:
Assets and liabilities, 13, 14, 16, 17, 18
Consumer loans held, by type, 45
Deposits at, for payment of personal loans, 24
Loans sold outright, 25
Number, by classes, 14
Real estate mortgages held, by type of holder and
property, 42—44
Commercial paper, 23, 25, 27
Condition statements (See Assets and liabilities)
Construction, 50, 51
Consumer credit:
Instalment credit, 45, 46, 47
Noninstalment credit, 45
Consumer price indexes, 50, 53
Consumption expenditures, 54, 55
Corporations:
Profits, taxes, and dividends, 41
Security issues, 39, 40
Security yields and prices, 28, 29
Cost of living (See Consumer price indexes)
Currency and coin, 3, 16
Currency in circulation, 3, 12
Customer credit, stock market, 29, 30

GOLD:
Certificates, 10
Earmarked, 72
Reserves of central banks and govts., 60
Stock, 2, 59
Government National Mortgage Assn., 42
Gross national product, 54, 55

DEBITS to deposit accounts, 11
Debt (See specific types of debt or securities)

HOUSING permits, 50
Housing starts, 51




A 83

References are to pages A-2 through A-75 although the prefix “ A ” is omitted in this index

INCOME, national and personal, 54, 55
Industrial production index, 48, 49, 50
Instalment loans, 45, 46, 47
Insurance companies, 31, 34, 35, 42, 44
Insured commercial banks, 14, 16, 17, 24
Interbank deposits, 14, 20
Interest rates:
Bond and stock yields, 28
Business loans of banks, 26
Federal Reserve Banks, 6
Foreign countries, 74, 75
Money market rates, 27
Mortgage yields, 43, 44
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 8
International capital transactions of U .S ., 61-74
International institutions, 60 -6 4 , 66, 6 7-69, 73
Inventories, 54
Investment companies, issues and assets, 40
Investments (See also specific types of investments):
Banks, by classes, 14, 16, 19, 30
Commercial banks, 13
Federal Reserve Banks, 10, 11
Life insurance companies, 31
Savings and loan assns., 31
LABOR force, 52
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 14, 16, 18, 30
Commercial banks, 13, 14, 16, 18, 23, 25, 26
Federal Reserve Banks, 2, 4, 6, 10, 11
Insurance companies, 31, 44
Insured or guaranteed by U .S ., 42, 43, 44
Savings and loan assns., 31
MANUFACTURERS:
Capacity utilization, 50
Production index, 49, 50
Margin requirements, 8
Member banks:
Assets and liabilities, by classes, 14, 16, 17
Borrowings at Federal Reserve Banks, 4, 10
Number, by classes, 14
Reserve position, basic, 5
Reserve requirements, 7
Reserves and related items, 2, 4, 13
Mining, production index, 49
Mobile home shipments, 51
Money market rates (See Interest rates)
Money stock and related data, 12
Mortgages (See Real estate loans and Residential mort­
gage loans)
Mutual funds (See Investment companies)
Mutual savings banks, 20, 30, 34, 42, 44
NATIONAL banks, 14, 24
National defense expenditures, 33
National income, 54, 55
Nonmember banks, 15, 16, 17, 24
OPEN market transactions, 9
PAYROLLS, manufacturing index, 50
Personal income, 55
Prices:
Consumer and wholesale commodity, 50, 53
Security, 29
Prime rate, commercial banks, 26
Production, 48, 49, 50
Profits, corporate, 41



REAL estate loans:
Banks, by classes, 16, 18, 30, 42
Mortgage yields, 43, 44
Type of holder and property
mortgaged, 42—44
Reserve position, basic, member banks, 5
Reserve requirements, member banks, 7
Reserves:
Central banks and govts., 60
Commercial banks, 17, 20, 22
Federal Reserve Banks, 10
Member banks, 3, 4, 13, 17
U .S. reserve assets, 59
Residential mortgage loans, 43, 44
Retail credit, 45, 46, 47
Retail sales, 50
SAVINGS:
Flow of funds series, 56, 57
National income series, 54, 55
Savings and loan assns., 31, 35, 42, 44
Savings deposits (See Time deposits)
Savings institutions, principal assets, 30, 31
Securities (See also U .S. Govt, securities):
Federally sponsored agencies, 37, 38
International transactions, 68, 69
New issues, 38, 39, 40
Yields and prices, 28, 29
Special Drawing Rights, 2, 10, 58, 59
State and local govts.:
Deposits, 17, 20
Holdings of U .S. Govt, securities, 34, 35
New security issues, 38, 39
Ownership of securities of, 16, 19, 30
Yields and prices of securities, 28, 29
State member banks, 15, 24
Stock market credit, 29, 30
Stocks (See also Securities):
New issues, 39, 40
Yields and prices, 28, 29
TAX receipts, Federal, 33
Time deposits, 8, 13, 14, 17, 21, 22
Treasury currency, Treasury cash, 2, 3
Treasury deposits, 3, 10, 32
Treasury operating balance, 32
UNEMPLOYMENT, 52
U .S. balance of payments, 58
U .S. Govt, balances:
Commercial bank holdings, 17, 20
Member bank holdings, 13
Treasury deposits at Reserve Banks, 3, 10, 32
U.S. Govt, securities:
Bank holdings, 14, 16, 19, 30, 34, 35
Dealer transactions, positions, and financing, 36
Federal Reserve Bank holdings, 2, 10, 11, 34, 35
Foreign and international holdings, 10, 66, 68, 72
International transactions, 66, 68
New issues, gross proceeds, 39
Open market transactions, 9
Outstanding, by type of security, 34, 35
Ownership, 34, 35
Yields and prices, 28, 29
Utilities, production index, 49
VETERANS Administration, 43, 44
WEEKLY reporting banks, 18-22
YIELDS (See Interest rates)

A 84

The Federal Reserve System
B o u n d a rie s

—

o f F e d e ral

R e se rv e

Boundaries of Federal Reserve Districts

----- Boundaries of Federal Reserve Branch
Territories
Q

D is tric ts

Board of Governors of the Federal
Reserve System




an d

T h e ir

B ra n c h

T e rrito rie s

®

Federal Reserve Bank Cities

•

Federal Reserve Branch Cities
Federal Reserve Bank Facilities

G u id e

to

T a b u la r

P re s e n ta tio n

SYMBOLS AND ABBREVIATIONS
e
c
P
r
IP
I, II,
III, IV
n.e.c.
A.R.
S.A.

Estimated
Corrected
Preliminary
Revised
Revised preliminary

N .S.A .

Quarters
Not elsewhere classified
Annual rate
Monthly (or quarterly) figures adjusted for
seasonal variation

IPC
SMSA
A
L
S
U
*

Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Source of funds
Uses of funds
Amounts insignificant in terms of the partic­
ular unit (e.g ., less than 500,000 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed

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 following in­
stances: (1) to the right (to the left) of a total when
the components 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 govt.”
also includes municipalities, 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 te (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 QUARTERLY, SEMIANNUALLY, OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Q u a rterly

Issue

Sales, revenue, profits, and
dividends of large manu­
facturing corporations __

Page

Mar. 1975

Apr. 1975

A—76

Feb. 1975

A -83

June 1974
July 1974

Banking and monetary statistics:
1973 ..................................... July
1974 ..................................... Feb.
Mar.
Apr.

S ta tis tic a l

1974
1975
1975
1975

P age

Banks and branches, number,
by class and State ...........

Apr. 1974

Flow of funds:
Assets and liabilities:
1962-73 ................

Oct. 1974 A -59.14— A -59.28

Flows:
1965-73

A n n u ally

Bank holding companies:
Banking offices and depos­
its of group banks, Dec.
31, 1973 .........................

Issue

A-88— A-89

A -83

Sem iannually

Number of banking offices:
Analysis of c h a n g e s.........
On, and not on, Federal
Reserve Par L ist............

A nnu ally— C ontinued

A-80— A-83
530

A-80— A-82
A-84— A-85
A-79— A-82
A-78— A-85

.........................

Oct. 1974

Income and expenses:
Federal Reserve Banks
Feb.
Insured commercial banks June
Member banks:
Calendar year ................ June
Income ratios ................ June
Operating ratios ........... Sept.

Stock market credit ..............

A-58— A-59.13

1975
1974

A-80— A -8 1
A-84— A-85

1974
1974
1974

A-84— A-93
A-94— A-99
A-80— A-85

Feb. 1975

A-86— A-87

R e le a s e s

LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Anticipated schedule of release dates for individual releases .................................................................




Issue

P age

Dec. 1974

A-86