Full text of Federal Reserve Bulletin : May 1978
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MAY
1978
FEDERAL RESERVE
BULLETIN
D o m e s t i c F i n a n c ia l D e v e l o p m e n t s in t h e F ir s t Q u a r te r o f 1 9 7 8
R ep u rch a se A g r eem e n ts and F ed eral F u n d s
E x e r c is e o f C o n s u m e r R ig h ts
S u r v e y o f T im e a n d S a v in g s D e p o s it s , J a n u a ry 1 9 7 8
A copy of the Federal Reserve B ulletin is sent to each member bank without charge; member banks desiring
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El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum
or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75
per copy per month, or $18.00 for 12 months.
The B ulletin may be obtained from the Division of Administrative Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order
of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency.
(Stamps and coupons are not accepted.)
NUMBER 5 □
VOLUME 64 □
MAY 1978
FEDERAL RESERVE
RTJl IFTTN
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 .
PU BLIC A TIO N S COMMITTEE
Joseph R. Coyne, Chairman ° Stephen H. Axilrod ° John M. Denkler
Janet O. Hart a James L. Kichline n Neal L. Petersen □ Edwin M. Truman
Richard H. Puckett, S ta ff Director
The Federal Reserve B ulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial
support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette.
Table of Contents
345
D o m e s t ic F i n a n c i a l D e v e l o p m e n t s in
t h e F ir s t Q u a r t e r o f
The quarterly report to the Joint Economic
Committee of the U.S. Congress, which
highlights developments in domestic fi
nancial markets during the winter and
early spring, points out that growth of the
major monetary aggregates slowed during
the quarter, reflecting largely the effects
of a less rapid expansion of economic
activity.
353
367
1978
361
373
Summary of “ M ortgage Borrowing
Against Equity in Existing Homes: Meas
urement, Generation, and Implications for
Economic Activity” discusses the fact that
recently households have raised unprece
dented amounts of funds against inflated
equities in their homes and have used the
money for a variety of purposes other than
homebuilding.
363
E x e r c is e o f C o n su m e r R ig h t s U n d e r
E q u a l C r e d it O p p o r tu n ity a n d
F a ir C r e d it B i l l i n g A c t s
Results of Board survey of large creditors
requesting information in connection with
notices required under the Equal Credit
Opportunity and Fair Credit Billing Acts.
S ta te m e n ts t o C o n g ress
G. William Miller, Chairman of the Board
of Governors, reports before the Commit
tee on Banking, Housing and Urban Af
fairs, U.S. Senate, on April 25, 1978, that
monetary growth ranges for the year ahead
are expected to support further economic
expansion and a lower unemployment
rate, but inflation may not decelerate until
later.
R ep u rch a se A g r e e m e n ts a n d
S t a f f E c o n o m ic S t u d ie s
1978
Total time and savings deposits at insured
commercial banks expanded at a quarterly
rate of 3 V2 per cent over the most recent
survey period, up from 2 lA per cent over
the preceding survey quarter.
F ed eral Funds
Over the past decade, large commercial
banks have relied more and more on dis
cretionary sources of funds, such as
repurchase agreements and Federal funds,
to supplement deposits during periods of
heavy demand for credit, according to a
Federal Reserve survey.
S u r v e y o f T im e a n d S a v i n g s D e p o s i t s
a t C o m m e r c ia l B a n k s , J a n u a r y
377 J. Charles Partee, Member of the Board
of Governors, in testimony before the
same Committee on May 9, 1978, states
that the Federal Reserve continues to have
reservations about some of the provisions
in the Humphrey-Hawkins bill because
they still do not acknowledge adequately
the crucial need to reduce inflation.
382
R e c o r d o f P o lic y A c tio n s o f t h e
F e d e r a l O p e n M a r k e t C o m m itte e
At the meeting held on March 21, 1978,
the Committee decided that growth in M -l
and M-2 over the March-April period at
annual rates within ranges of 4 to 8 per
cent and 5 Vz to 9 per cent, respectively,
would be appropriate. It was understood
that in assessing the behavior of these
aggregates the Manager should continue
to give approximately equal weight to the
behavior of M -l and M-2.,
over-the-counter stocks that are subject to
margin requirements.
In the judgment of the Committee such
growth rates were likely to be associated
With a weekly-average Federal funds rate
of about 6 3A per cent. The members agreed
that if growth rates of the aggregates over
the 2 -month period appeared to be deviat
ing significantly from the midpoints of the
indicated ranges, the operational objective
for the weekly-average Federal funds rate
should be modified in an orderly fashion
within a range of 6 V2 to 7 per cent. It was
also agreed, however, that a reduction in
the rate below 6 % per cent would not be
sought until the Committee had had an
opportunity for further consultation.
396
Interpretation of Regulations D and Q ex
tends the kinds of bankers acceptances
eligible for discount by the Federal Re
serve Banks.
Criteria under which States may apply for
exemption from the consumer leasing re
quirements of the Truth in Lending Act
and Regulation Z.
Revised procedure for issuing official staff
interpretations of Regulations B and Z.
Changes in Board staff.
Proposed revisions of Regulation Z to
cover all cases in which a debt is repaid
in payments of varying amounts and of
Regulation T to permit a broker or dealer
to extend and maintain credit on certain
nonconvertible corporate bonds.
L aw D e p a r tm en t
Amendments to Regulations B, Z, H, D,
and Q; various bank holding company and
bank merger orders; and pending cases.
423
Two State banks were admitted to mem
bership in the Federal Reserve System.
A n n o u n c em e n ts
Increase in the discount rate.
Two new types of time certificates avail
able to bank customers.
430
In d u s t r ia l P r o d u c t io n
Output increased an estimated 1.1 per cent
in April.
Amendment of Regulation Q to permit
individual customers of member banks to
transfer funds automatically from their
savings to their checking accounts.
Al
F in a n c ia l
B u s i n e s s S t a t is t i c s
and
Actions regarding (1) net settlement of
member bank reserve accounts and (2)
automated clearinghouses.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
Publication of Truth in Leasing.
A 6 9 G u id e
The three bank regulatory agencies have
adopted a uniform interagency system for
rating the condition and soundness of the
Nation’s banks.
Amendments to Regulations D and Q to
facilitate the participation of member
banks in a new Treasury tax and loan
investment program. (See Law Depart
ment.)
Regulations G, T, and U have been
amended to change requirements for in
clusion of stocks in the Board’s list of
and
to
T a b u l a r P r e se n t a t io n
S t a t is t ic a l R e l e a s e s
A 70 B oard
of
A 72 O pen M
G overnors
arket
and
C o m m it t e e
S taff
and
S t a f f ; A d v is o r y C o u n c il s
A 73
F ed era l R eserve B a n k s ,
B r an c h es,
and
O f f ic e s
A 7 4 F ed er a l R eserv e B oard
P u b l ic a t io n s
A 7 6 In d e x
to
S t a t is t ic a l T a b l e s
A78 M ap of F ederal R eserve S ystem
Domestic Financial Developments in
the First Quarter of 1978
This report, which was sent to the Joint E co
nomic Committee of the U.S. Congress, high
lights the im portant developm ents in dom estic
financial markets during the winter and early
spring.
Growth of the major monetary aggregates
slowed during the first quarter of 1978, ap
parently reflecting in large measure the effects
of the weather-induced lull in the growth of
economic activity and a higher level of market
interest rates. The rate of increase in M -l for
the quarter was well below the average for all
of 1977. Inflows to commercial banks of inter
est-bearing deposits subject to regulatory ceil
ings also weakened, as did deposit flows into
nonbank thrift institutions, thus contributing to
slower growth of M-2 and M-3 for the quarter.
As flows into deposit accounts subject to
regulatory ceilings abated in the first quarter,
commercial banks continued to rely on managed
liabilities to help support the expansion of their
loan portfolios. Banks issued substantial
amounts of large-denomination time deposits,
which are not subject to regulatory ceilings, and
increased their use of nondeposit sources of
funds. Thrift institutions, especially savings and
loan associations, were able to extend sizable
amounts of mortgage credit, though at a pace
below the record high levels of late 1977; they
financed these extensions in part by stepping up
their borrowing from Federal home loan banks.
The total volume of credit raised by nonfi
nancial sectors in the first quarter appears to
have remained around the high level of the
fourth quarter of 1977. Businesses increased
their borrowing slightly as a rapid increase in
their bank loans more than offset a reduction
in their use of other forms of credit. In the
household sector, mortgage financing slowed
from the record pace of the fourth quarter, while
consumer credit remained strong. Credit de-
Interest rates
Per cent per annum
LONG-TERM
S H O RT-TERM
Aaa utility
New issue ■
N O T E S:
itt ■
Conventional
mortgages
H U D _______ ^
U.S. Govt.
F.R. discount
rate
State and local
government
Federal funds
Treasury bills
3-month
!
t
M onthly averages except for
F.R . discount rate and con ven
tional m ortgages (based on quota
tions for one day each month).
Y ields: U .S . Treasury b ills, market
yields on 3 -m onth issu es; prime
com m ercial paper, dealer offering
rates;
conventional
m ortgages,
rates on first m ortgages in primary
markets, unw eighted and rounded
to nearest 5 basis points, from
D ept, of H ousing and Urban D e
velopm ent; Aaa utility bonds,
w eighted averages o f new publicly
offered bonds rated A aa, A a, and
A by M o o d y ’s Investors Service
and adjusted to A aa basis; U .S .
G ovt, bonds, market yields ad
justed to 20-year constant maturity
by U .S . Treasury; State and local
govt, bonds (20 issu es, m ixed
quality), B on d B uyer.
346
Federal Reserve Bulletin □ May 1978
rate remained at the 6 % per cent level to midApril, as growth of the monetary aggregates was
generally within the longer-run ranges set by
the Federal Open Market Committee. Most
other short-term interest rates rose along with
the Federal funds rate in early January. Over
the rest of the quarter, however, many of these
rates tended to edge lower; some of this decline
stemmed from the substantial demand for
Treasury bills by foreign central banks, which
were investing dollars purchased in foreign ex
change markets. As a result, many short-term
market rates increased only about 5 to 10 basis
points, on balance, over the quarter.
Increases in interest rates on many longerterm securities in the first quarter equaled or
even exceeded somewhat the upward movement
mands by the U.S. Treasury were again heavy,
reflecting another sizable budget deficit. State
and local governments maintained their bor
rowing close to the pace of the fourth quarter,
as they continued to refund in advance debt
obligations issued at higher interest rates.
In early January the Federal Reserve raised
the discount rate on advances to member banks
from 6 to 6 V2 per cent; this action was designed
to help stabilize conditions prevailing in inter
national exchange markets. Concurrently, the
System became less accommodative in the pro
vision of reserves to the banking system through
open market operations, and the rate on Federal
funds (overnight loans of immediately available
bank funds) increased to about 6 % per cent from
6 V2 per cent in December. The Federal funds
C h a n g e s in s e le c te d m o n eta ry a g g r eg a te s
Per cent, seasonally adjusted annual rates
1977
Item
1975
1976
Ql
Q2
Q3
Q4
Ql
5 .2
2.7
4.1
4 .0
2 .9
1.8
7 .3
1.7
6.1
3 .5
8 .5
14.5
5 .7
10.9
12.8
7.1
10.3
7 .8
9 .8
11.7
10.0
11.7
6 .9
10.9
12.2
10.2
11.7
8.1
9 .0
10.2
8 .2
9 .6
8.1
9 .9
11.9
9 .5
11.6
7 .2
8 .0
10.6
10.7
12.1
5 .0
6 .4
7 .4
10.0
9 .5
11.7
17.5
7 .8
15.0
2 5 .0
7 .4
11.2
11.1
11.4
13.7
2 1 .3
7 .2
9 .7
8 .8
10.5
11.2
7 .3
14.6
8 .5
5 .4
11.4
7 .5
2 .2
12.0
15.6
15.8
14.6
14.1
11.9
15.0
14.4
8 .8
-1 9 .1
8 .0
.4
-.2
.7
7.1
8.8
-1 .0
16.5
11.7
13.7
.5
3 .4
-.4
6 .6
5 .2
3 .3
6 .4
.4
6 .4
1.1
14.9
1 1.9
0 .0
2.1
4 .3
3 .9
5 .8
M em ber bank reserves:
Total .....................................
Nonborrowed ...................
- .3
3 .2
1.0
1.2
C oncepts o f m o n ey :1
M -l .......................................
M -2 .......................................
M -3 .......................................
M -4 .......................................
M -5 .......................................
4 .4
8 .3
11.1
6 .5
9 .6
Tim e and savings deposits
at com m ercial banks:
Total (excluding large
C D ’s) .............................
Savings ...........................
Other tim e ...................
Thrift institutions2 ................
M emo (change in billions o f
dollars, seasonally
adjusted):
Large negotiable C D ’s at
-5 .6
large banks ...................
A ll other large tim e
-3 .6
deposits3 .......................
18.6
Sm all tim e deposits ___
N ondeposit sources o f
funds4 ...................................
- 5 .9
*M -1 is currency plus private demand deposits adjusted. M -2
is M -l plus bank tim e and savings deposits other than large
negotiable C D ’s. M -3 is M -2 plus deposits at mutual savings
banks and savings and loan associations and credit union
shares. M -4 is M -2 plus large negotiable C D ’s. M -5 is M -3
plus large negotiable C D ’s.
2Savings and loan association s, mutual savings banks, and
credit unions.
in c lu d e d in M -2 and M -3.
4N ondeposit sources o f funds include borrow ings by co m
m ercial banks from other than com m ercial banks in the form
1978
1977
of Federal funds purchased, securities sold under agreem ents
to repurchase, and other liabilities for borrowed m on ey, plus
gross liabilities to ow n foreign branches (Euro-dollar borrow
in gs), loans sold to affiliates, loan repurchase agreem ents,
borrow ings from Federal R eserve Banks, and other minor
item s.
N o t e . C hanges are calculated from the average amounts
outstanding in each quarter. Annual rates of change in reserve
m easures have been adjusted for changes in reserve require
ments.
Domestic Financial Developments, Q l 1978
of short-term rates over that period. Like short
term rates, yields on intermediate- and long
term instruments shifted upward with the rise
in the Federal funds rate in January. This
movement tended to reinforce a rising trend in
long-term rates that had been evident through
December as investors revised upward their
expectations about the future strength of de
mands for money and credit. Long-term rates
showed little change in February and early
March but began to rise again in late March
and early April, apparently reflecting market
concern about indications of an acceleration in
the rate of inflation and the possibility of a more
restrictive policy stance by the Federal Reserve.
M O N ETARY AGGREGATES
A N D B A N K CREDIT
Largely because of the slower growth of eco
nomic activity, the pace of expansion of M-1—
currency and privately held demand deposits at
commercial banks— declined to an annual rate
of 5 per cent in the first quarter, about 2%
percentage points below the average rate for
1977. Special factors— including severe winter
Changes in income velocity of M-1 and M-2
Percentage rate of change
Seasonally adjusted annual rates. M oney stock data are quar
terly averages.
347
weather, the lengthy coal strike, and a slowerthan-usual pace of tax refund disbursements by
the Treasury— led to a slight decline in M-1
during February. By late March, however, these
factors were no longer restricting money de
mand, and expansion in M-1 resumed.
M-1 grew at about the same rate as GNP
during the first quarter, and as a result, veloc
ity— the ratio of GNP to M-1— increased only
very slightly. Apparently, the substantial rise in
interest rates that occurred between April and
October of 1977 was no longer prompting fur
ther efforts by the public to economize on cash
balances, and the upward movements of rates
in the first quarter had only a small effect on
money demand. Moreover, in the first quarter,
as in the previous five quarters, M-1 grew about
in line with expectations based on historical
relationships among money, income, and inter
est rates. Earlier in the current economic ex
pansion, the effects of financial innovations on
cash-management practices had given rise to
extraordinarily large increases in velocity.
Growth of M-2 also slowed in the first quar
ter— to an annual rate of about 6 V2 per cent from
8 per cent in the fourth quarter. The reduction
in M-2 growth resulted from a slowing of in
flows of savings deposits to commercial banks
as well as from a moderation in the rate of
increase of M-1. The rate of expansion of sav
ings deposits held by individuals declined
sharply in the first quarter, and savings accounts
of businesses and of State and local govern
ments contracted for the third consecutive quar
ter.
Flows into small-denomination time accounts
at banks, which had slowed markedly in the
fourth quarter, continued to expand at a reduced
pace in the first 3 months of 1978. The slow
growth of savings and small-denomination time
deposits was attributable to the rise in market
interest rates in the second half of 1977 and
early 1978, which brought yields on market
instruments maturing in 4 years or less well
above regulatory ceilings on deposits of compa
rable maturity. The relative attractiveness of
returns available in credit markets during the
first quarter was reflected in a substantial rise
in fund flows to money market mutual funds
and in noncompetitive tenders in auctions of
348
Federal Reserve Bulletin □ May 1978
Treasury securities. As in the two previous
quarters, growth in M-2 was supported by the
issuance of large time deposits (other than ne
gotiable certificates of deposit (CD’s) at weekly
reporting banks), which are not subject to rate
ceilings. Increases in these deposits accounted
for more than three-fourths of the growth in the
time and savings deposit component of M-2 in
the first quarter.
Faced with weak inflows of deposits subject
to regulatory ceilings, banks— especially large
ones— again relied heavily on managed liabili
ties during the first quarter to finance the accu
mulation of earning assets. Total large-denomi
nation time deposits, including both negotiable
and nonnegotiable CD’s, increased more than
in the fourth quarter, and other borrowings—
principally repurchase agreements and pur
chases of Federal funds from nonbanking insti
tutions— also rose more strongly. The average
level of borrowings by member banks at Federal
Reserve discount windows fell substantially,
however, as the spread between the discount and
Federal funds rates generally narrowed.
The use of managed liabilities enabled banks
to expand total loans and investments at an
annual rate of IOV2 per cent in the first 3 months
of 1978, the largest gain since the second quar
ter of 1977. The faster growth of bank credit
was accounted for by an increase in holdings
Deposit growth
Per cent
■
■
■
■
■
■
I
1974________________ 1976________________ 1978
of Treasury securities in February, which re
versed the pattern of disinvestment that had
prevailed in the previous two quarters. Portfo
lios of other investment securities, which had
risen throughout 1977, were essentially un
changed in the first quarter. The expansion in
loans eased only slightly from the rapid pace
of the fourth quarter, as real estate and business
lending remained strong while net credit exten
sions to consumers slowed somewhat.
BU SIN E SS CREDIT
1
i
1
1
1
1
0
1
2
3
4
5
6
7
___________ Years to maturity____________________
Data reflect annual effective yields. Ceiling rates are yields
derived from continuous compounding of the nominal ceiling
rates. M arket yield data are on an investment yield basis.
Bank lending to businesses— as measured by
changes in business loans net of holdings of
bankers acceptances— surged to an annual rate
of 20 per cent in the first quarter. Both large
and small banks experienced rapid increases.
Data from the largest banks indicated that
growth was distributed widely across industries;
loans to manufacturing, trade, construction, and
service industries displayed particular strength.
Term business loans at these large banks ex
panded more than $2 billion, the greatest quar
terly increase since late 1974. These loans,
which have maturities of 1 year or more, ac
counted for half of the first-quarter expansion
in total business loans net of bankers accept
ances at the largest banks. This acceleration in
term lending apparently was related to height-
Domestic Financial Developments, Q l 1978
B u s in e ss lo a n s and shortand in term ed ia te-term b u sin e ss cred it
Seasonally adjusted changes at annual percentage rates
Business loans
T otal1
Excluding
bank holdings
of bankers
acceptances
Total short- and
intermediate-term
business credit2
1975— Q l
Q2
Q3
Q4
-5 .2
-8 .7
-3 .1
.7
-6 .8
- 9 .0
- 3 .5
- 3 .2
- 3 .9
-8 9
-1 .1
- 4 .4
1976— Q l
Q2
Q3
Q4
- 6 .7
1.4
3.9
12 0
- 4 .8
2.2
1.1
8.2
6.1
1.1
11.6
1977— Q l
Q2
Q3
Q4
11.4
12.6
10.2
16.0
16.4
13.3
8.9
14.9
16.7
16.4
9.4
18.0
1978— Q l
16.4
19 8
17.1
Period
JAt all com m ercial banks based on last-W ednesday-of-m onth
data, adjusted for outstanding amounts of loans sold to affili
ates.
2Short- and interm ediate-term business credit is business
loans at com m ercial banks excluding bank holdings of bankers
acceptances plus nonfinancial com pany com m ercial paper and
finance com pany loans to businesses m easured from end of
month to end of month.
ened demand for such loans by corporations.
Survey data indicate that interest rates on term
loans rose more than rates on similar market
instruments in the first quarter, and that banks
generally were no more willing to make fixedrate term loans than they had been in other
recent months.
The volume of short- and intermediate-term
funds raised by businesses from nonbank
sources was a little lower during the quarter.
On balance, commercial paper issued by non
financial corporations was about unchanged,
with a sizable gain during March roughly off
setting declines in January and February. Those
earlier declines had resulted mainly from repay
ments of paper issued by public utilities during
December to cover temporarily inadequate cash
flows. In March, however, commercial paper
issued by utilities declined less than seasonally.
Growth in business loans at finance companies
abated somewhat from the very rapid pace of
the fourth quarter, with automobile-related
credit again accounting for most of the advance.
As businesses in general increased their reli
349
ance on bank borrowing during the first quarter,
the volume of new long-term financing declined
markedly. Gross bond and equity issuance by
U.S. corporations fell to a seasonally adjusted
annual rate of $34 billion, the slowest quarterly
pace since 1974.
Public bond offerings by most categories of
issuers dropped off sharply during January and
February but recovered somewhat in March and
April. The volume of industrial and public util
ity issues was particularly light. Offerings by
financial concerns, however, picked up toward
the end of the quarter, resuming the historically
high pace of late 1977. Private placements of
corporate debt are estimated to have moderated
in the first quarter.
Yields on long-term corporate bonds contin
ued to rise during the first quarter, partly in
response to increased investor apprehension
about an acceleration in the rate of inflation.
The Federal Reserve index of yields on recently
offered Aaa-rated utility bonds rose from 8.48
per cent at the end of 1977 to 8.75 per cent
at the end of the first quarter of 1978. Rates
climbed further during April, reaching their
Components of
bank credit
Major categories of
bank loans
Change, billions of dollars
TREASURY SECURITIES
U
OTHER SECURITIES
-
l i n n
TOTAL LOANS
Ql
Q2
Q3
1977
Q4
Ql
’78
Ql
Q2
Q3
1977
Q4
Ql
’78
Seasonally adjusted. Total loans and business loans adjusted
for transfer between banks and their holding com panies, affili
ates, subsidiaries, or foreign branches.
350
Federal Reserve Bulletin □ May 1978
highest levels since mid-1976. The slower pace
of new bond offerings and the concurrent rise
in term loans at banks this year may reflect a
reluctance of potential corporate borrowers to
enter into long-term obligations at existing in-(
terest rates. Following the widespread strength
ening of balance sheet p ositions during
1975-76, many corporations are capable of
turning to short- and intermediate-term borrow
ing and of slowing their accumulation of liquid
assets without reducing their liquidity positions
to unacceptably low levels.
Stock prices were generally lower on the New
York Stock Exchange (NYSE) during the first
quarter of 1978, at least partly in response to
conditions of uncertainty created by the decline
of the U.S. dollar on international currency
markets, a temporary slowing in domestic eco
nomic expansion, and a more rapid rate of
inflation. Over the quarter, the NYSE composite
index declined 5.0 per cent from its level at
the end of 1977. As during 1977, however,
stock prices of smaller firms generally outper
formed those of the more highly capitalized
corporations that dominate the NYSE index.
Both the American Stock Exchange (AMEX)
index and the National Association of Securities
Dealers Automated Quotation (NASDAQ)
over-the-counter index— which reflect the stock
price performance of smaller corporations—
registered further increases during the first
quarter.
A vigorous rally in the stock market in April
returned the NYSE index to its level at year-end
and carried the AMEX and NASDAQ indexes
higher. The rally— reportedly sparked by heavy
stock purchases by institutional and foreign in
vestors— appeared to have been spurred partly
by a stabilization of the U.S. dollar on interna
tional currency markets, by indications of a
resurgence in domestic economic activity after
a weather-related winter slowdown, and by evi
dence that economic policy actions were being
undertaken to slow the rate of inflation.
The generally lower level of stock prices on
the New York Stock Exchange limited the in
centive for new corporate equity issues during
the first quarter. The volume of new issues,
estimated at a seasonally adjusted annual rate
of $7 billion, was the smallest since the trough
G ro ss o ffe r in g s o f n e w se c u r ity issu e s
B illions o f dollars, seasonally adjusted annual rates
1977r
Type
Corporate securities— Total
B onds ...................................
Publicly offered ..........
Privately placed ..........
Stocks .................................
Foreign securities
1978
Ql
Q2
Q3
Q4
Q le
48
38
22
16
10
50
40
20
20
10
61
49
33
16
12
59
43
24
19
16
34
27
15
12
7
................
4
13
13
5
4
State and local g o v t..............
44
50
47
46
41
r R evised.
e Estim ated.
in stock prices in late 1974. Public utilities,
which tend to have less flexibility in adjusting
their debt-to-equity ratios, continued to account
for the bulk of new equity issues.
G OVERNM ENT SECURITIES
In the municipal securities market, gross bond
issuance proceeded at a $41 billion annual pace
during the first quarter. Although down some
what from the record quarterly levels of 1977,
volume remained large by historical standards.
Repeating the 1977 pattern, advance refundings
of outstanding higher-coupon issues accounted
for about one-fifth of new offerings. A sizable
decline since late 1975 in interest rates on taxexem pt bonds— particularly lower-rated
issues— remained a strong incentive for refund
ing, although a Treasury Department ruling in
late 1977 placed tighter limits on the type of
issues that may be refunded in advance.
The Bond Buyer index of long-term tax-exempt yields was about unchanged on balance
over the first quarter. While net acquisitions of
municipal bonds by commercial banks slowed
during the first quarter in the face of the in
creased volume of business loans, continued
strong demand for tax-exempt investment out
lets by property-casualty insurance companies,
investment companies, and individuals has
helped keep rates on tax-exempt bonds in an
historically low range relative to taxable yields.
The Treasury borrowed a total of $20.8 bil
lion net (not seasonally adjusted) during the first
Domestic Financial Developments, Q l 1978
351
Federal G overnm ent borrow ing and cash balance
Quarterly totals, billions o f dollars, not seasonally adjusted
Item
1976
Q2
Treasury financing:
Budget surplus, or deficit ( - )
2 .0
Off-budget deficit1 ..................
-.6
N et cash borrow ings, or
repaym ents (—) ....................
9 .4
Other means o f financing2
-4 .0
6 .8
Change in cash balance ___
Federally sponsored credit
a g en cies, net cash
borrow ings3 ...............................
.5
1977
1978
Q3
Q4
Ql
Q2
Q3
--1 3 .0
- 1 .8
--22.8
.4
--1 8.7
-4 .3
8 .6
.1
--1 2 .2
-4 .9
-2 8 .8
-1 .3
- -25.8
-3 .7
18.0
-.7
2 .6
17.4
-.8
-5 .7
17.6
2 .7
-2 .6
- 1 .1
-.4
7 .2
419.5
.4
42 .8
2 0 .7
2 .6
-6 .8
2 0 .8
1.3
-5 .9
1-7
.4
.7
3 .0
1.8
2 .0
4 .5
Q 4r
Ql
in c lu d e s outlays o f the Pension Benefit Guaranty Corpora
tion, Postal Service Fund, Rural Electrification and T elephone
R evolving Fund, Rural T elephone Bank, H ousing for the
Elderly or Handicapped Fund, and Federal Financing Bank.
A ll data have been adjusted to reflect the return o f the ExportImport Bank to the unified budget.
2C hecks issued less checks paid, accrued item s, and other
transactions.
3Includes debt o f the Federal H om e Loan M ortgage C or
poration, Federal hom e loan banks, Federal land banks, Fed
eral intermediate credit banks, banks for cooperatives, and
Federal N ational M ortgage A ssociation (including discount
notes and securities guaranteed by the G overnm ent National
M ortgage A ssociation ).
in c lu d e s $ 2 .5 b illion o f borrowing from the Federal R eserve
on Septem ber 3 0 , w hich w as repaid O ctober 4 after the new
debt ceilin g bill becam e law .
rR evised.
quarter to help finance a $25.8 billion budget
deficit and a $3.7 billion deficit of off-budget
programs. Increases in outstanding marketable
obligations accounted for $15.6 billion of the
net borrowing, primarily in the form of notes
and bonds. Net financing by Federally spon
sored credit agencies jumped to $4.5 billion,
the highest level since 1974, as the Federal
Home Loan Bank System and the Federal Na
tional Mortgage Association (FNMA) borrowed
to help finance their support of the residential
mortgage market. FNMA acquired $2.1 billion
of mortgages in the first quarter, and the Federal
home loan banks advanced $ 1.1 billion (not
seasonally adjusted) to savings and loan associ
ations.
Continuing the pattern of late 1977, foreign
official institutions and State and local govern
ments remained major sources of demand for
Treasury obligations during the first quarter.
Foreign official institutions increased their hold
ings of marketable and nonmarketable securities
by $13.7 billion, primarily investing dollar pro
ceeds acquired from intervention in foreign ex
change markets. State and local governments,
using the proceeds of advance refunding opera
tions, invested $2.5 billion in special nonmar
ketable Treasury obligations.
M ORTGAGE A N D
CO NSUM ER CREDIT
Net mortgage lending during the first quarter of
1978 was at an estimated annual rate of $126
billion, down sharply from the record pace of
$142 billion during the final quarter of 1977.
Reduced lending on residential properties ac
counted for the entire decline, as expansion of
nonresidential mortgage credit continued at its
pace in late 1977. Among major lenders, the
slowdown was most pronounced at depositary
institutions, where net mortgage acquisitions
declined in the face of a weakening in deposit
inflows. Delays in construction due to bad
weather may have further disrupted mortgage
flows during the early months of the year.
Largely because of their smaller cash flow,
savings and loan associations, the largest sup
pliers of residential mortgage funds, reduced
their net lending by more than 15 per cent from
recent record levels. These associations also
curtailed new mortgage commitments; the result
was the first quarterly decline in outstanding
commitments (seasonally adjusted) since 1974.
The slackening in deposit growth also forced
savings and loans to rely increasingly on ad
vances from the Federal home loan banks, and
352
Federal Reserve Bulletin □ May 1978
N e t c h a n g e in m o r tg a g e d eb t o u tsta n d in g
Deposits at savings and loans
Annual rate of change, per cent
Billions of dollars, seasonally adjusted annual rates
1978
X91T
Change—
Ql
By type of property:
Total .................................. 108
Residential .................. 84
O ther1 ........................... 24
Ql
Li
Q2
1—1
Q3
1977
..
Q4
i■ £
Ql
0
’78____
Seasonally adjusted. Q uarterly averages at annual rates.
on other borrowed funds, to help meet take
downs of mortgage commitments. Outstanding
advances increased $3.6 billion on a seasonally
adjusted basis, reaching a level above the 1974
peak. Savings and loans expanded their holdings
of liquid assets (seasonally adjusted) during the
first quarter at the greatly reduced pace of the
previous quarter. The Federal Home Loan Bank
Board, in an attempt to free additional funds
for mortgage lending, reduced its minimum
liquidity requirements for the associations, ef
fective May 1.
Among other major lenders, commercial
banks also slowed their net mortgage acquisi
tions significantly from the strong pace of late
1977, in part because of increased demand for
business loans. Mortgage lending by life insur
ance companies, primarily on nonresidential
properties, changed little. The flow of funds into
markets for mortgages insured by the Federal
Housing Administration or guaranteed by the
Veterans Administration held up relatively well,
as reductions in issues of mortgage-backed,
pass-through securities guaranteed by the Gov
ernment National Mortgage Association were
roughly offset by increased mortgage purchases
by FNMA. A general increase in home-mortgage interest rates since late 1977 made the
purchase price on outstanding 4-month FNMA
purchase commitments attractive to mortgage
originators possessing such commitments.
The combination of slower deposit flows into
By type of holder:
Com mercial banks .........
Savings and loans .........
Mutual savings banks ..
Life insurance
com panies ..................
FNM A and GNM A . . . .
O ther2 .............. .................
Q2
Q3
Q4
Q l*
131
104
27
139
107
32
142
109
33
126
93
33
20
50
4
27
59
6
29
62
8
26
63
8
22
53
7
2
4
6
29
5
-3
38
8
(3)
7
6
31
(3)
32
37
in c lu d e s com m ercial and other nonresidential as well as
farm properties.
2Includes m ortgage pools backing securities guaranteed by
the Governm ent National M ortgage Association, Federal Home
Loan M ortgage Corporation, or Farm ers Home Adm inistration,
some of which may have been purchased by the institutions
shown separately.
3Less than $500 million.
r Revised.
e Partially estim ated.
thrift institutions, sustained demand for mort
gages, and a rise in interest rates on other
long-term instruments pushed home mortgage
yields higher during the first quarter. Average
rates on new commitments for conventional
mortgages on new homes increased from 9.10
per cent at the end of 1977 to 9.30 per cent
at the end of March, the highest since 1974.
During the quarter, rate ceilings on Govern
ment-underwritten home mortgages were raised
by 0.25 of a percentage point to 8.75 per cent.
Nonrate terms and credit standards are also
reported to have tightened somewhat in recent
months; many lenders, for example, now are
said to be insisting upon larger downpayments.
Consumer instalment credit, the other major
source of household financing, expanded at a
record seasonally adjusted annual rate of $37
billion during the first quarter. Automobile
credit, buttressed by a sharp recovery in new-car
sales in March, continued to account for more
than 40 per cent of total growth in instalment
credit.
□
353
Repurchase Agreements
and Federal Funds
Over the past decade, large commercial banks
have made significant fundamental changes in
their management of assets and liabilities. Be
fore the mid-1960’s deposit liabilities had
served as the traditional source of bank funds
to support lending and investment activities.
The introduction of the large-denomination ne
gotiable certificate of deposit (CD) in the early
1960’s, however, marked a change in attitude
by banks. Rather than passively relying on
growth in deposits, large banks began to focus
more aggressively on discretionary sources of
funds— funds that could be obtained as needed
to supplement deposits during periods of heavy
demand for credit.1 This process, which has
come to be known as liability management, has
enabled large banks to exert greater direct con
trol over the cost and supply of funds.
In addition to CD’s, large banks have come
to rely increasingly on Federal funds and repur
chase agreements (Rp’s) as important tools of
liability management. These discretionary bor
rowings have increased rapidly in recent years.
At large weekly reporting banks, for example,
the amount of funds raised in the Federal funds
and Rp markets jumped from $12 billion in 1969
to more than $80 billion in 1978. Moreover,
such borrowings, which were once used almost
exclusively to adjust reserve positions, are now
more than twice as large as required reserves.
Indeed, the ratio of gross purchases of Federal
funds and Rp’s to reserves maintained at Federal
Reserve Banks for large banks had climbed from
N ot e — This article was prepared by W ayne J. Smith
of the Financial Reports Section, D ivision of Research
and Statistics.
1
Emphasis on discretionary sources of funds has also
tended to reduce the need for banks to adjust their
holdings of liquid assets to support credit demand,
resulting in considerably more loan-oriented portfolios.
less than 20 per cent in 1962 to well over 200
per cent at year-end 1976 (Chart 1).
In a special survey of 46 large member banks
conducted by the Federal Reserve System dur
ing the statement week ended December 7,
1977, the structure of borrowings of Federal
funds and Rp’s by banks was examined in
detail. The banks were asked to indicate the
volume of funds obtained through Rp’s and,
separately, the amounts obtained through Fed
eral funds. Data on both the source and the
maturities of these funds were also collected.
The findings of the survey suggest that bank
transactions in Federal funds and Rp’s are con
ducted with a wide variety of institutions and,
although essentially short term in nature, over
a wide range of maturities. When compared
with a similar special survey conducted in April
1974, the results indicated that, although Fed
eral funds have remained the principal source
of borrowed funds to banks, they have grown
at a much slower pace than have Rp’s over the
3-year period.
1. Federal funds and reserves at F.R. Banks
Billions of dollars
354
Federal R eserve Bulletin □ May 1978
NO NR ESERV ABLE BORROW INGS
While the strategy of banks in liability manage
ment may dictate obtaining funds in a variety
of markets, Federal funds and Rp’s form a large
share of banks’ discretionary borrowings. In
addition to the ease and convenience, borrowing
tends to be relatively less costly in these markets
than in alternative markets (Chart 2). Further
more, unlike CD’s or Euro-dollars, both Rp’s
collateralized by U.S. Treasury or Federal
agency securities and borrowings of Federal
funds are exempt from reserve requirements for
banks that are members of the Federal Reserve
System. Under the Board’s Regulation D,
member banks are required to maintain reserves
in the form of vault cash or balances at a Federal
Reserve Bank on all deposits, including certain
other obligations issued to borrow funds.
The effective cost of such discretionary bor
rowings is considerably reduced by the exemp
tion from reserve requirements. For example,
the difference in effective interest rates between
borrowing in Federal funds or Rp’s and in
obligations that are subject to reserve require
ments can vary from 20 to more than 50 basis
points, depending on the level of interest rates.
This difference in effective rates reflects the
opportunity cost of maintaining a portion of the
proceeds of a reservable borrowing in a non-in
terest-earning capacity.
2. Selected commercial bank borrowing rates
Per cent
Federal funds and Rp’s have other features
in common. Both are in general transacted for
very short-term periods and both are settled in
immediately available funds.2 The funds are
immediately available in the sense that a bank
receives the proceeds from the borrowing on the
same business day that the borrowing transac
tion is executed, usually by transfer over the
Federal Reserve wire facilities. By contrast,
settlement in clearinghouse funds resulting from
payment by check would involve a delay in the
availability of funds until the check had been
cleared. Immediately available funds permit the
bank more flexibility to make instant adjust
ments to its balance sheet in the event of unex
pected changes in deposits and loans.
REPURCHASE AGREEM ENTS
Repurchase agreements involving U.S. Treas
ury and Federal agency securities have become
the fastest growing source of discretionary funds
to banks. Generally transacted in denominations
of $5 million or more, these instruments are
basically arrangements by which the bank sells
government securities at a specified price under
commitment to repurchase the same or similar
securities at a later date. The securities are
considered collateral for the transaction to pro
tect the purchaser against default by the bank.
Since the price of the security may be
affected by market movements, purchasers may
require that the value of the securities be greater
than the amount of funds supplied, thus estab
lishing an additional “ margin” of protection.
The transfer of collateral is usually effected by
issuance of a nonnegotiable safekeeping receipt
to the purchaser, stating whether the securities
are to be held at the Federal Reserve under book
entry or in the vault of the borrowing bank.
Sometimes actual physical transfer of the col
lateral is also provided at the purchaser’s re
quest, although such transfers are not very
common because of the relatively short maturi
2 In addition, Federal funds and R p’s are not re
stricted by Regulation Q interest rate ceilings; thus they
com pete more favorably with similar m oney market
instruments.
Repurchase Agreements and Federal Funds
355
1. Repurchase agreements on U.S. Treasury and Federal agency securities,
for week ended December 7, 1977, 46 large banks
Seven-day average dollar volume in millions of dollars
Maturity
Buyers
Total
1 day
Agencies of the U.S.2....................... ...................................
Securities dealers...................................................................
2,803.5
255.8
38.6
40.6
77.8
403.5
1,976.1
1,541.1
147.2
25.1
29.4
59.1
385.1
397.5
Credit unions.........................................................................
Financial businesses..............................................................
Nonfinancial businesses........................................................
State and local governments................................................
Foreign banks and foreign official institutions...................
All others3.............................................................................
Total...........................................................................
61.9
1,701.7
10,472.4
3,787.7
323.0
248.4
22,191.0
32.4
1,042.0
3,256.8
2,188.8
225.7
150.8
9,481.0
Member commercial banks..................................................
Nonmember domestic commercial banks...........................
Branches and agencies of foreign banks operating in U.S..
Edge Act and Agreement Corporations.............................
Continuing
contract
170.1
23.2
.1
248.4
.8
155.2
1,198.5
144.5
16.7
1,957.5
2-7
days
8-30
days
More than
30 days
358.7
27.7
13.5
10.1
12.4
7.8
215.4
427.8
26.2
305.8
31.5
.4
1.4
7.1
608.4
.7
4.8
3.5
506.4
18.0
303.4
2,203.1
432.2
58.1
37.4
3,697.8
160.0
2,913.0
681.2
37.4
33.5
4,896.4
10.7
41.1
901.0
341.0
1.8
10.0
2,158.3
1 Includes mutual savings banks, savings and loan associations, and cooperative banks.
2 Includes Federal Home Loan Bank Board and other Federal agencies.
3 Includes nonprofit organizations, such as hospitals and educational institutions, and others.
ties of these agreements. The right of the pur
chaser to substitute securities at the maturity of
the agreement is as a rule accepted by the bank,
but very little substitution actually occurs.
Participation by banks in the Rp market de
veloped largely as a competitive measure to
maintain or regain funds that otherwise might
have been invested in money market assets by
large corporations. Securities dealers, however,
were among the first institutions to offer Rp’s.
During the periods of monetary restraint that
followed the Treasury-Federal Reserve accord
of 1951, securities dealers frequently had diffi
culty in obtaining adequate financing of inven
tories through bank sources.3 Rates on dealer
loans ranged from 3Vi to 4 per cent, whereas
rates on U.S. Treasury securities rarely ex
ceeded 3 lA per cent. As a result, dealers began
to look elsewhere for cheaper sources of fi
nancing.
Expanding on corporate relationships that had
already been established, the dealers began to
encourage many of their customers to become
lenders through Rp’s as an alternative to the
direct investment in securities. Corporate activ
ity in repurchase agreements continued to grow
3
S ecu rities dealers can earn profits by se llin g secu ri
ties at a h igher price than the original purchase p rice,
or by b orrow ing funds to finance h old in gs o f secu rities
at rates low er than the rate obtained from the secu rities.
throughout the 1950’s and early 1960’s as busi
nesses became more aware of the opportunity
cost of maintaining idle balances in demand
deposit accounts at banks. Rather than placing
temporary excess funds in demand deposits,
corporate treasurers began to transact Rp’s with
both banks and securities dealers.
Today, many commercial banks regard Rp’s
as one of a number of alternative sources of
funds that may be used to finance their securities
portfolios or their lending activities. The rate
paid by commercial banks generally ranges from
10 to 15 basis points below the Federal funds
rate but may vary depending on the availability
of securities. At large commercial banks, efforts
are made each day to arrange Rp’s on securities
that are not being used as collateral for other
purposes.
Current estimates of the volume of Rp’s by
banks suggest that nearly $40 billion is traded
under this arrangement. The 46 banks that par
ticipated in the Federal Reserve System’s spe
cial survey reported an average of $ 22.2 billion
of these agreements each day during the survey
week (Table 1), thus accounting for slightly
more than half of the estimated total. Additional
data obtained from the 1974 survey of 45 of
the banks indicated that the volume of Rp’s has
grown by nearly $14 billion, or about 155 per
cent, from the 1974 level of $8.7 billion (Table
2 ).
356
Federal R eserve Bulletin □ May 1978
2. Repurchase agreements and Federal funds for week ended April 24, 1974, 45 large banks
Seven-day average dollar volume in millions of dollars
Type
Buyers
Member commercial banks...........
Nonmember domestic commercial
banks........................................
Branches and agencies of foreign
banks operating in United
States........................................
Edge Act and Agreement Corpora
tions........................................
Savings and loan associations and
cooperative banks.................
Savings banks.................................
Federal home loan banks..............
All other agencies of the United
States......................................
Securities dealers...........................
Business corporations1.................
State and local governments........
Foreign banks and foreign official
institutions..............................
All others2.....................................
T otal...................................
Maturity
Rp’s on
U.S. Govt,
and
agency
securities
Federal
funds
Total
1 day
Continu
ing
contract
1,001.7
13,083.7
14,085.4
11,404.1
1,421.7
234.8
182.0
456.8
385.8
1,347.7
69.5
30.4
56.1
14.0
44.0
209.2
350.1
4.2
38.5
2-7
days
8-29
days
30-90
days
More than
90 days
.1
3,183.1
3,183.2
2,347.0
72.8
28.7
116.2
145.0
95.5
6.5
64.0
7.2
6.8
2,889.4
1,643.5
1,173.0
2,953.4
1,650.8
1,179.8
1.766.5
1.198.5
680.0
511.1
432.5
5.8
97.4
4.1
6.4
131.5
.2
147.5
370.5
14.0
240.4
76.1
1.2
99.5
235.8
483.1
941.1
66.4
2,110.4 .................
3.033.2
719.0
1,007.5
2,110.4
3,033.2
367.8
136.7
1,013.8
1,240.0
6.0
93.5
190.5
181.1
100.1
133.0
452.7
429.7
59.2
245.5
349.7
482.5
50.7
368.4
88.8
490.7
135.0
30.2
14.7
209.0
613.4 .................
235.0 .................
8.733.2 26,528.1
613.4
235.0
35,261.4
342.5
76.1
23,496.0
165.5
43.8
4,479.1
31.2
50.0
1,653.4
67.0
39.2
1,948.8
7.0
24.7
2,557.1
1.0
1,126.8
160.0
,
1 Includes both financial and nonfinancial corporations.
2 Includes credit unions, nonprofit organizations, such as hospitals and educational institutions, and others.
B
uyers
of
R
epu r ch ase
A
greem ents
The increasing use of Rp’s by businesses— both
financial and nonfinancial organizations— has
accounted for much of the rapid growth in this
source of funds to banks. In the 1977 survey,
businesses contributed almost 55 per cent to
total Rp’s transacted with banks, while they
accounted for only 24 per cent in 1974 (Table
3). Since 1974 the volume of Rp’s by businesses
has increased more than 400 per cent.
One of the reasons for the growing use of
Rp’s by businesses has been the recent devel
opment of sophisticated cash management tech
niques. Corporate cash management involves
procedures designed to speed the receipt of
income, delay disbursement of payments, and
reduce the uncertainty about daily cash-flow
patterns, thus permitting businesses to hold only
a minimal amount of funds without explicit
interest return. These procedures have resulted
in a more efficient use of corporate funds and
have served greatly to increase the availability
of funds for investment in money market assets.
Corporate treasurers have thus increasingly used
Rp’s as an attractive alternative to maintaining
surplus funds in non-interest-earning demand
deposits.
Because of their flexibility and security, Rp’s
are ideally suited to supplement cash manage
ment techniques. They may be tailored to any
desired short-term maturity and are relatively
free of risk. In addition, like money market
assets in general, Rp’s may be used not only
to invest temporary excess cash but also to earn
interest on funds being accumulated for tax or
dividend payments and on the proceeds of
long-term financing temporarily awaiting dis
bursement.
3. Buyers of repurchase agreements
Percentage distribution
Buyers
Week ended
Dec. 7,1977
Week ended
Apr. 24, 1974
Member commercial banks.................
Nonmember domestic commercial
12.6
11.5
Branches and agencies of foreign
banks operating in the United
States.............................................
Edge Act and Agreement Corpora-
1.1
5.2
.2
Other depositary institutions.............
Agencies of the United States............
Securities dealers.................................
State and local governments...............
Foreign banks and foreign official
institutions....................................
.2
.3
1.8
.3
.8
2.8
8.9
54.9
17.1
10.8
24.2
34.7
1.4
1.5
100.0
7.0
2.7
100.0
Repurchase Agreements and Federal Funds
State and local governments, which were the
primary source of Rp funds to the banks that
were sampled in 1974, continued to supply a
sizable amount of funds during the 1977 survey
week. Despite having been displaced by busi
nesses as the principal buyers of Rp’s, they
nevertheless accounted for 17 per cent of the
total funds supplied to the banks.4 Moreover,
since 1974 the volume of Rp’s transacted by
these governmental bodies has grown nearly 25
per cent. State and local governments have
found Rp’s to be an attractive short-term in
vestment for reasons similar to those of busi
nesses. They have often been faced with main
taining sizable balances at times throughout the
year because the timing patterns of tax receipts
and of expenditures never exactly match.
Repurchase agreements have provided the op
portunity for converting these temporary bal
ances into interest-earning assets .5
Other member commercial banks and securi
ties dealers also represented important pur
chasers of Rp’s in both the 1974 and the 1977
survey weeks. Unlike businesses or State and
local governments, these institutions operate in
the Rp market both to obtain funds and to supply
funds. As mentioned earlier, banks and securi
ties dealers obtain funds to finance securities
inventories. In addition, these institutions often
provide funds by purchasing Rp’s when oppor
tunities arise, enabling them to profit from dif
ferences in interest rates. For example, the bank
or dealer may purchase securities under an Rp
at one rate and then sell the securities at a
slightly lower rate under another Rp, thus re
4 The timing of the two surveys may have been partly
responsible for the apparent shift in relative importance
betw een State and local governments and businesses.
The April 1974 survey was conducted immediately
follow in g a tax date, when State and local government
funds were at their peak and corporate balances had
been reduced by tax outlays. In contrast, the 1977
survey was conducted before a quarterly tax date.
5 In addition, since Novem ber 1974 State and local
governments have also been permitted to hold savings
deposits at com m ercial banks. These deposits have
increased sharply when market rates on R p’s have fallen
below the Regulation Q ceiling rate on savings deposits.
Such a situation occurred in Decem ber 1976, for e x
ample, when savings deposits held by these govern
ments at large w eekly reporting banks rose from $1.7
billion to $ 2 .9 billion. In contrast, when market rates
on R p’s have risen above the ceiling rate on savings,
savings deposits have declined.
357
gaining the funds initially supplied plus a profit.
Alternatively, banks may purchase securities
under an Rp from other banks simply to obtain
the collateral for a short time.
M
a t u r it ie s
of
R
epu r ch ase
A
greem ents
More than half of all Rp’s reported in the 1977
survey were executed either for only 1 day
or under continuing contract (Table 4). Con
tinuing contract refers to any transaction that
may remain in effect for more than 1 day but
that has no specified maturity and does not
require advance notice by the purchaser to
terminate. In general, such arrangements
consist of 1-day transactions that are auto
matically rolled over each day until the bank
is notified by the purchaser to terminate the
transaction.
Only 10 per cent of the maturities extended
for periods beyond 30 days, while about 39
per cent ranged from 2 to 30 days. The
relatively low level of activity in the longer
maturities has probably reflected the existence
of investment alternatives that may earn higher
interest, such as certificates of deposit and com
mercial paper.
The very short maturities tended to be more
prevalent among banking and financial buyers
in the Rp market: 66 per cent of the Rp’s
purchased by these institutions had maturities
of 1 day or were under continuing contract
in contrast to 45 per cent for nonfinancial
businesses, securities dealers, and State and
local governments. Nevertheless, 64 per cent
of all Rp’s purchased by nonfinancial busi
nesses, securities dealers, and State and local
governments extended for periods of fewer
than 8 days.
4. Maturities of repurchase agreements
Percentage distribution
Maturity
Continuing contract..............................................
Over 30 days..........................................................
T otal............................................................
Week ended
Dec. 7, 1977
42.7
8.8
16.7
22.1
9.7
100.0
358
Federal Reserve Bulletin □ May 1978
FEDERAL FU N D S
Of the total volume of discretionary funds bor
rowed by the 46 banks that participated in the
special 1977 survey, $35.8 billion, or about 62
per cent, was obtained through purchases of
Federal funds. The term “ Federal funds” his
torically has referred to the transfer of a deposit
at a Federal Reserve Bank from one member
bank to another. Such transactions represented
the overnight borrowing and lending of excess
reserve balances by member banks to adjust
reserve positions. Today, Federal funds trans
actions need not involve a transfer at a Federal
Reserve Bank nor necessarily involve two
member banks. Indeed, Federal funds are cur
rently traded by a variety of institutions that do
not maintain accounts at Federal Reserve Banks,
including nonmember banks, branches of
foreign banks operating in the United States,
mutual savings banks, and savings and loan
associations.
To a large extent, the present-day Federal
funds market has evolved as a result of Federal
Reserve regulation. As trading in Federal funds
became more widespread throughout the
1960’s, the Federal Reserve issued several im
portant rulings that had the effect of altering the
structure of the market and the types of institu
tions from which member banks could borrow
without the borrowings being subject to reserve
requirements. In 1964 the Board noted that
purchases of funds by member banks from other
banking institutions did not differ fundamentally
from traditional Federal funds purchases, even
though these borrowings did not go through a
Federal Reserve Bank. In effect, this ruling
served to alter the concept of Federal funds by
including transactions that resulted simply from
bookkeeping entries at correspondent banks.6
Later in 1964 the Board granted permission for
Edge Act and Agreement corporations to par
ticipate in the market. In 1970 the Board ruled
that member banks could borrow Federal funds
free of reserve requirements from any member
or nonmember commercial bank, savings bank,
6
C orrespondent b o o k k eep in g transfers o f Federal
funds co n siste d b a sica lly o f red u cin g the correspondent
b an k ’s d ep o sit b alan ce at the m em ber bank and cred itin g
an account d esig n ated “ F ederal funds p u rch ased ” from
the correspondent.
savings and loan association, cooperative bank,
domestic office of a foreign bank, and the Ex
port-Import Bank. As a result of these rulings,
the term Federal funds has come to mean any
borrowing or lending of immediately available
funds by any of these participants.
In more recent years, immediately available
funds have been transferred for periods of longer
than 1 day. These transactions are basically
similar to regular Federal funds in all aspects
other than maturity and have been designated
“ term Federal funds.” Term Federal funds
generally command higher interest rates than do
regular Federal funds and have not been exten
sively traded.
The Federal funds market contributes signifi
cantly to a more efficient utilization of bank
resources. Through its redistribution of reserves
within the banking system, excess reserves held
by smaller banks are channeled to larger banks
and converted to loanable funds. In addition,
the market assists the Federal Reserve in the
conduct of monetary policy. Since only minimal
excess reserves are held by the banking system
as a whole, the impact of policy actions tends
to be felt more quickly by all sizes of banks.
Finally, the rate on Federal funds serves as an
important indicator of current credit conditions
and generally forms the basis for other short
term rates.
Lenders
of
Federal Fu
nd s
Although basically an interbank market, the
Federal funds market includes participants other
than commercial banks, such as mutual savings
banks, savings and loan associations, and Fed
eral agencies (Table 5). Nevertheless, commer
cial banks are the primary suppliers of Federal
funds. In both the 1974 and 1977 surveys,
commercial banks, largely dominated by Sys
tem members, accounted for about 65 per cent
of the Federal funds supplied to the banks that
were surveyed (Table 6 ).
Commercial bank participation in the inter
bank market tends to be characterized by wellestablished market patterns. Smaller banks act
basically as sellers of funds, selling to larger
correspondents and regional money center
banks.
Repurchase Agreements and Federal Funds
359
5. Federal funds for week ended December 7, 1977, 46 large banks
Seven-day average dollar volume in millions of dollars
Maturity
Lenders
Member commercial banks.
Nonmember domestic com
mercial banks................
Branches and agencies of
foreign banks operating
in U.S.............................
Edge Act and Agreement
Corporations.................
Other depositary institu
tions 1.............................
Agencies of the U.S.2..........
Securities dealers..................
All other...............................
Total...........................
Continu
ing
contract
2-7
days
8-30
days
More than
30 days
Total
1 day
17,908.0
16,982.2
512.2
79.1
143.7
190.8
5,529.2
4,726.2
558.8
18.4
162.7
63.1
2,190.3
2,155.2
1.8
210.0
181.5
5,946.9
2,245.6
1,689.2
149.3
35,868.5
4,047.4
1,983.4
1,689.2
79.0
31,844.1
1.4
4.1
27.8
1.0
5.5
22.0
364.5
.5
83.7
33.1
370.8
49.8
1,080.5
178.8
6.5
1,444.3
63.7
280.4
.1
736.7
1,563.0
1 Includes mutual savings banks, savings and loan associations, and cooperative banks.
2 Includes Federal Home Loan Bank Board and other Federal agencies.
The arrangement most often used is the contin
uing contract. The denomination of transactions
ranges from $50,000 to $5 million or more.
Larger regional banks tend to be sellers of funds
but may often be borrowers. Rather than engage
in continuing contracts, this group usually
makes direct inquiries of potential purchasing
banks, frequently through Federal funds
brokers, to obtain the most attractive yield.
Amounts provided by these banks range from
$5 million to $40 million per transaction. Large
money center banks tend to be basically pur
chasers of funds, although at times they may
sell funds to accommodate smaller corre
spondents.
Other depositary institutions, consisting
mainly of mutual savings banks and savings and
loan associations, also provide substantial
amounts of Federal funds to commercial banks.
These institutions, which accounted for about
17 per cent of the funds supplied, operate in
the Federal funds market as a means of earning
interest on liquid balances that might otherwise
remain temporarily idle. Offices of foreign
banks and Federal agencies are other important
lenders of Federal funds. Federal agencies par
ticipate in the market for reasons similar to those
of other depositary institutions, while partici
pation by foreign-related banking organizations
to some extent parallels participation by com
mercial banks.
7. Maturities of Federal funds
Percentage distribution
Maturity
6. Lenders of Federal funds
Week ended
Dec. 7, 1977
88.7
4.0
.9
2.0
4.4
100.0
Continuing contract..............................................
Percentage distribution
Over 30 days..........................................................
T otal............................................................
Lender
Week ended
Dec. 7, 1977
Week ended
Apr. 24, 1974
Member commercial banks................
Nonmember domestic commercial
banks............................................
Branches and agencies of foreign
banks in the United States..........
Edge Act and Agreement Corpora
tions...............................................
Other depositary institutions..............
Agencies of the United States............
Securities dealers.................................
All others.............................................
Total..........................................
49.9
49.3
15.4
14.7
M
6.1
12.0
.6
16.6
6.3
4.7
.4
100.0
.4
17.1
6.2
.3
The Federal funds market is essentially an
overnight market. Almost 93 per cent of the
total funds reported in the 1977 survey were
supplied for 1 day or were under continuing
contract (Table 7). Less than 3 per cent of the
100.0
a t u r it ie s
of
Federal Fu
nds
360
Federal R eserve Bulletin □ M ay 1978
funds were transacted in maturities of 2 to 30
days, while slightly more than 4 per cent ex
tended for periods of longer than 30 days.
Despite its very short-term nature, the Federal
funds market is regarded by many banks as a
permanent source of financing. Since funding
requirements may vary considerably each day,
participants are careful not to borrow in excess
of their projected needs. To a large extent, the
Federal funds market serves as a residual market
for funds. Once financing requirements have
been established for a particular day and other
funds obtained, any deficit is generally met
through purchases of Federal funds. This mech
anism allows banks to match sources and uses
of funds much more closely and contributes to
a more efficient utilization of bank re
sources.
□
361
Staff Economic Studies
The research sta ffs o f the B o a rd o f G overnors
o f the F ed era l R e se rv e S ystem a n d o f the
F ederal R e se rv e B anks undertake stu dies that
cover a w ide range o f econ om ic an d fin an cial
su b je c ts, a n d oth er s ta f f m em bers p rep a re
p a p e rs re la te d to such su b jects. In so m e in
stan ces the F ed era l R e se rv e S ystem fin a n ces
sim ilar stu d ies by m em bers o f the aca d em ic
profession .
From tim e to tim e the results o f stu dies th at
are o f gen era l in terest to the econ om ics p r o
fe ssio n a n d to others are su m m a rized —or they
m ay be p rin te d in fu ll—in this section o f the
F ederal R e se rv e B u l l e t i n .
In all ca ses the an alyses an d conclusions se t
fo rth are th ose o f the authors a n d do not
necessarily in dicate concurrence by the B oard
o f G overnors, by the F ederal R e serve B an ks,
or by the m em bers o f their staffs.
Single copies o f the fu ll text o f each o f the
studies or p a p e rs su m m arized in the B u l l e
t i n are available in m im eograph ed fo rm . The
list o f F ederal R eserv e B o a rd pu blication s a t
the back o f each B u l l e t i n includes a se p a
rate section en titled “ S ta ff E conom ic S tu dies"
that enum erates the p a p e rs p re p a re d on th ese
studies fo r which copies are currently available
in m im eograph ed fo rm .
ST U D Y SU M M A RY
MORTGAGE BORROWING AGAINST EQUITY IN EXISTING HOMES:
MEASUREMENT, GENERATION, AND IMPLICATIONS FOR ECONOMIC ACTIVITY
D a v i d F . S e i d e r s — Staff, Board of Governors
P r e p a r e d a s a s t a f f s t u d y in e a r l y 1 9 7 8
The relationship between home mortgage lend
ing and homebuilding has changed dramatically
in recent years. This shift has occurred as the
household sector has raised unprecedented
amounts of mortgage funds against inflated eq
uity in the stock of existing homes and used
these funds for a variety of purposes other than
homebuilding. Mortgage borrowing on a large
scale for such purposes may, of course, have
significant implications for the efficiency of
Federal housing support programs operating
through the mortgage markets. In view pf the
well-known sensitivity of the supply and cost
of home mortgage credit to changes in general
financial conditions, such a development also
may influence the impact of monetary policy on
various sectors of the economy.
This study examines borrowing against hous
ing equity within the context of other develop
ments in the structure of income and wealth in
the household sector and in an environment of
general price inflation. It analyzes the volume
of net funds borrowed against equity in existing
homes and examines the various ways in which
households have raised these funds. The extent
to which the borrowed funds have been used
to support personal consumption expenditures
or to change the composition of household bal
ance sheets is also considered as are possible
implications for future economic activity.
The conclusion is that household borrowing
against equity in existing homes has accounted
for nearly half of total home mortgage debt
formation during the past 2 years, about double
362
Federal R eserve Bulletin □ May 1978
the proportion during the previous 5 years.
These funds have been raised primarily in con
nection with transactions in existing homes,
rather than through junior mortgages or refi
nancings of outstanding first mortgages, both of
which have received much attention in the press.
Moreover, it appears that significant portions of
the funds raised against housing equity have
served to bolster personal consumption expend
itures during much of the current economic
expansion but that some portions have sup
ported capital expenditures, substituted for other
forms of household debt, or contributed to ac
quisitions of financial assets. It is argued that
exogenous changes in household financial net
worth, household expectations about future
levels of income, and the spread between longand short-term interest rates determine in part
how funds raised in connection with transactions
in existing homes are used.
□
363
Exercise of Consumer Rights
Under the Equal Credit Opportunity
and Fair Credit Billing Acts
In November 1977 the Board of Governors
initiated a survey of selected large creditors to
determine to what extent consumers were exer
cising their rights under the Equal Credit Op
portunity Act and the Fair Credit Billing Act.
The survey was also designed to determine the
cost to creditors of complying with these laws.
An inquiry requesting information in connec
tion with credit-card and other types of revolving-credit operations was sent to a group of nine
creditors. Areas covered in the inquiry were the
right to a separate credit history for married
persons, notification by creditors of specific
reasons for denial of credit, and customers’ use
of their rights under the law regarding the reso
lution of billing disputes.
The initial notices regarding the right to a
separate credit history for married persons were
enclosed with billing statements rather than
mailed separately in order to hold down the cost.
About 11 per cent of the customers requested
that separate credit histories be maintained. The
average cost to the creditors of printing and
processing the notices was less than 1 cent per
notice, and the average cost of processing the
return requests and providing the necessary
credit information was about 9 cents per request.
The survey showed that a substantial propor
tion of the applicants who were rejected for re
volving credit accounts requested the reasons for
the denial if such reasons had not been stated
at the time of rejection; many of these applicants
then provided sufficient additional information
to warrant the granting of credit.
Although a large number of credit customers
raised questions concerning their billing state
ments each month, relatively few followed the
formal procedures provided by Regulation Z.
Most of the companies, however, indicated that
they had treated the informal questions the same
as the formal ones.
In order to obtain information from a national
cross-section of consumers with a minimum
burden on the consumer credit industry, the
Board selected nine large creditors that were
believed to have readily available records. This
group included four major retailers (Alden’s,
Inc.; Federated Department Stores, Inc.; J. C.
Penney and Co., Inc.; and Sears, Roebuck and
Co.); three banks (Bank of America, First Na
tional Bank of Chicago, and Maryland National
Bank); one travel and entertainment card issuer
(American Express Co.); and one oil company
(Shell Oil Co.). Information was gathered from
all companies except Alden’s; the data reported
by Federated Department Stores represent the
combined answers of 13 of its 16 department
and specialty store divisions.
SEPARATE CREDIT HISTORY
Under Regulation B married persons have the
right to a separate credit history. All creditors
with open-end credit contracts were required to
send a notice advising their married customers
of this right by June 1, 1977, unless the com
pany already had arranged to maintain access
to the account records for each person entitled
to use the account. American Express had such
an arrangement for each person who had been
issued a card on an account. The other seven
reporting creditors, however, sent notices to
each of their married customers informing them
of their right to separate credit histories.
The total initial mailing of somewhat less than
48.5 million notices by the seven companies
yielded more than 5 million returns (about 11
364
Federal Reserve Bulletin □ May 1978
1. Separate credit history
Notices
Creditor
Num ber
sent
Number of
return
requests
Percentage
resulting
in requests
Total cost
(dollars)
Average cost
per notice sent
(dollars)
Federated Departm ent Stores ............
J. C. Penney .........................................
Sears .........................................................
Bank of America ..................................
First National Bank of Chicago .......
M aryland National Bank ....................
Shell Oil ..................................................
American Express1 ..............................
5,600,536
10,252,692
23,000,000
3,130,529
861,453
1,056,365
4,500,000
471,875
818,659
3,000,000
326,783
82,561
77,501
430,000
8.4
8.0
13.0
10.4
9.6
7.3
9.6
64,880
64,556
68,095
88,697
5,000
23,940
45,000
.012
.006
.003
.028
.006
.023
.010
Cost of dual reporting of credit records, in dollars
Federated Departm ent Stores ..
J. C. Penney ..............................
Sears ..............................................
Bank of America .......................
First National Bank of Chicago
M aryland National Bank .........
Shell Oil .......................................
American Express1 ....................
Processing
initial
requests
Reporting new
information
Total,
for initial
returns
Average
initial cost
per account
31,575
12,061
'94,134
55,543
6,571
22,392
19,700
262,466
31,614
55,555
36,744
13,571
5,470
9,900
94,041
43,675
149,689
92,287
20,142
27,862
29,600
.20
.05
.05
.28
.24
.36
.07
Cost of
Annual m ainte
nance cost of
reporting
new accounts dual reporting
per account
per account
.00 to 1.50
Negligible
.01
.10
.14
.12
Negligible
•'*39,825
Negligible
88,667
3,600
23,880
13,600
3,000
1 American Express provides separate access to its credit records for each credit-card holder and, therefore, was not required
to send a special notice.
2Excludes two divisions that maintain manual operations and report to credit-reporting agencies only on demand.
3Represents estimates from only five divisions.
4Reported an additional cost, estimated at $900,000, of annotating history record cards to reflect the requested changes.
per cent) from customers who requested the
maintenance of separate credit histories. The
difference in the rate of return among the re
porting companies was relatively small, ranging
from about 7.3 per cent for Maryland National
Bank to 13 per cent for Sears (Table 1).
Direct cost estimates for the nearly 50 million
notices sent totaled $360,168; however, since
some companies were unable to identify and
include all administrative costs, this figure ac
counted for only a portion of the total cost.
Furthermore, Penney’s noted that the inclusion
of the required notice with the billing statement
displaced advertising inserts, which resulted in
a loss of sales estimated at $665,000. Federated
Department Stores also noted a loss of revenue
due to the displacement of advertising inserts
but did not estimate the amount. Although all
of the reporting companies enclosed the required
notice with the monthly billing statement, Bank
of America noted that it had spent $68,000 to
mail the notice separately to inactive BankAmericard accounts.
The identifiable costs of printing, processing,
and mailing each notice averaged slightly less
than 1 cent. There was considerable variation
among the companies, however, with the
average identifiable cost per notice ranging from
a low of 0.3 cent to a high of 2.8 cents.
Processing the more than 5 million returns
and initially reporting the new information to
the credit-reporting agencies cost a little more
than $450,000 for the seven companies, or an
average of about 9 cents per request. Again the
costs reported by the different companies varied
sharply— from about 5 cents per request to 36
cents per request (Table 1).
Once the reporting of credit records on a dual
basis for existing accounts had been completed,
the cost of reporting new accounts on that basis
ranged from “ negligible” or “ nominal” to
about 14 cents per account. Federated Depart
ment Stores reported a range from “ negligible”
to $1.50 for its divisions. The cost of maintain
ing dual reporting varied widely, from “ negli
gible” to nearly $89,000 a year. If the 3 million
Exercise of Consumer Rights
requests received by Sears had resulted in about
the same number of dual-reporting accounts, the
annual total cost would have amounted to 3
cents per account. The same calculation for the
other companies suggests an average annual
maintenance cost per account of about 1 cent
for Bank of America and Shell, 9 cents for
Federated Department Stores, 18 cents for
Maryland National Bank, and 29 cents for First
National Bank of Chicago. Each of the last two
companies had less than 100,000 dual-reporting
accounts, which suggests that maintaining any
dual reporting system may involve a significant
element of fixed cost or that the wide variation
in reporting maintenance costs may be the result
of the different approaches used in estimating
costs.
A D V E R SE ACTION NOTICES
The revisions in Regulation B that became ef
fective June 1, 1977, required creditors to in
form rejected credit applicants of the reasons
for the denial either initially or upon request.
Sears, First National Bank of Chicago, Bank
of America, and 1 of the 13 divisional respond
ents of Federated Department Stores furnished
all rejected credit applicants with the reasons
365
for the adverse action at the time of the denial.
The other companies provided reasons for denial
only upon request. Maryland National Bank
received such requests from 12 per cent of
rejected applicants; Federated Department
Stores, from 20 per cent; and American
Express, from 23 per cent. Shell stated that each
month about 4,600 rejected applicants requested
the specific reasons for the denial.
Many of the rejected credit applicants who
were initially given reasons for credit denial
supplied additional information, and a high
proportion of these were then granted credit.
Sears, which initially sent reasons for the
credit denial to all rejected applicants, received
additional credit information from 4 per cent of
these, and in half of the cases the information
was sufficient to warrant the granting of credit.
These proportions were even larger for Bank
of America, which received additional informa
tion from 8 per cent of its rejected applicants
and which was then able to grant credit to
three-fourths of them. First National Bank of
Chicago, the third company that provided rea
sons initially to all rejected applicants, received
requests for reconsideration from about 35 per
cent of such applicants, and of those who pro
vided additional information one-third were
granted credit.
2 . A d v e r se a c tio n on a p p lic a tio n s for credit
Average cost per account
of providing reasons
for credit denial (dollars)
Applicants rejected for credit who
Creditor
Federated Departm ent Stores ---J. C. Penney ..................................
Sears ..................................................
Bank of Am erica ...........................
First National Bank of Chicago
Maryland National Bank ............
Shell Oil ...........................................
American Express .........................
Requested
reasons
for denial
(per cent)
W ere given reason,
then provided
more information
(per cent of col. 1)
Provided more
information and
were given credit
(per cent of col. 2)
(1)
(2)
(3)
(4)
(5)
20
(2)
3100
3100
3100
12
(5)
23
34
n.a.
4
8
(4)
45
70
30
26
n.a.
50
75
33
35
72
60
*.43
.22 to 5.25
.56
Initially
Upon request
.59
1.07
.60
2.20
' .55
1.75
4.14
.38
3.00 to 5.25
R epresents an estimate by one division only.
^Approximately 13.3 per cent wrote to J.C . Penney regarding their rejection, but it is not known how many asked for specific
reasons.
3All rejected credit applicants were given the reasons initially.
A pproxim ately 3,000 of the 8,600 rejected applicants per month requested reconsideration, and some provided additional
information.
A pproxim ately 4,600 rejected applicants per month requested specific reasons for denial,
n .a .— Not available.
366
Federal Reserve Bulletin □ May 1978
3. E x p e r ie n c e w ith fair cred it b illin g
Creditor
Average
number of
active
accounts
billed
m onthly
Federated Department
Stores .......................... 3,366,000
J. C. Penney .................. 12,082,395
Sears .................................. 18,600,000
Bank of America ........... 2,464,469
First National
901,000
Bank of Chicago .......
Maryland National
Bank ............................
301,000
Shell Oil ........................... 3,500,000
American Express ......... 3,800,000
Average
number of
billing
statement
inquiries
Billing
statement
inquiries
(per cent)
Number of
formal
inquiries
asserted
monthly
Annual
cost of
billing error
statements
(dollars)
86,000
113,575
n.a.
119,164
2.55
.94
n.a.
4.84
4,400
n.a.
9,167
3,047
14 7 ,4 4 7
57,000
6.33
5,000
(;J)
2,606
37,000
86,000
.87
1.06
2.26
134
1,150
n.a.
(3)
467,300
525,760
27,308
(3)
(3)
R epresents estim ate of printing costs only for monthly mailing.
2The billing-error statement is printed on the back of the billing statement and the costs
reported are those for printing the full billing statement provided to those persons who
raise billing inquiries.
3The billing-error statement is printed on the back of the billing statement and no specific
costs were reported.
4Mails the statement semiannually but estimates that mailing the shorter monthly statement
would cost $247,600 per year.
5Represents estimate of printing costs only for mailing semiannual statements.
n .a .— Not available.
A similar pattern existed for those specifically
requesting reasons for the denial of credit in that
the additional information was often adequate
to warrant the granting of credit. Federated
Department Stores estimated that about onethird of those requesting reasons for credit de
nial during the first 7 months after the revised
Regulation B went into effect provided addi
tional information, and in one-fourth of these
cases credit was granted. The highest propor
tions were shown by Shell; almost 70 per cent
of those requesting specific reasons supplied
additional information, and in three-fourths of
those cases credit was granted (Table 2).
The cost of providing reasons for the denial
of credit to the rejected applicants varied
widely. For the three companies that provided
reasons initially, the average cost per rejected
account ranged from 59 cents to $1.07. For the
other companies the average cost of responding
to specific requests for reasons for credit denial
varied from 22 cents to $5.25.
BILLING INQUIRIES
A considerable number of credit customers
raised questions concerning their billing state
ments each month (Table 3). The extent of the
increase in the number of customer inquiries
since the billing-error sections were incorpo
rated into Regulation Z is not known, but the
figures reported by the eight creditors for recent
months showed that the proportion of monthly
billing statements questioned ranged from about
1 per cent for Penney’s, Maryland National
Bank, and Shell to about 5 per cent for Bank
of America and 6 per cent for the First National
Bank of Chicago. Only a small proportion of
these questions were submitted according to the
formal procedures provided by Regulation Z,
but most of the companies indicated that they
had treated all questions alike, whether pre
sented in a formal or informal manner.
Creditors are permitted to use either a semi
annual billing-error statement, informing cus
tomers of their rights and the appropriate proce
dures, or a shorter monthly statement. Only
Shell, American Express, and one division of
Federated Department Stores used the semian
nual statement. The other companies found the
monthly statement, which in some cases could
be printed on the back of the billing statement,
to be less costly than a semiannual statement.
Precise cost figures, however, could not be
provided by most companies.
□
367
Survey of Time and Savings Deposits
at Commercial Banks, January 1978
During the 3 months ended January 25, 1978,
total time and savings deposits at insured com
mercial banks, not adjusted for seasonal varia
tion, expanded at a quarterly rate of 3 V2 per
cent compared with 2 xk per cent over the pre
ceding survey quarter.1 For the 6 months cover
ing the two most recent survey periods, time
and savings deposits subject to Regulation Q
ceiling rates had grown only slightly, as banks
experienced net outflows in the earlier period
followed by small net inflows in the later period.
In contrast, large-denomination ($100,000 or
more) time deposits grew sharply in both peri
ods, accounting for more than 90 per cent of
the growth of total time and savings deposits
between the end of July and the end of January.
Although total net inflows to savings and
small-denomination (less than $ 100,000 ) time
deposits registered growth of less than 1 per cent
between the October and January surveys, ex
pansion in the longest-maturity categories re
N o t e . — John R. W illiam s of the Board’s D ivision
of Research and Statistics prepared this article.
1
Surveys of time and savings deposits (STSD) at all
member banks were conducted by the Board of G over
nors in late 1965, in early 1966, and quarterly in 1967.
In January and July 1967 the surveys also included data
for all insured nonmember banks collected by the Fed
eral D eposit Insurance Corporation (FDIC). Since the
beginning of 1968 the Board of Governors and the FDIC
have conducted joint quarterly surveys to provide esti
mates for all insured commercial banks based on a
probability sample of banks. The results of all earlier
surveys have appeared in previous B u l l e t in s from
1966 to 1978, the m ost recent being February 1978.
The current sample— designed to provide estimates
of the com position of deposits— includes about ,560
insured commercial banks. For details of the statistical
m ethodology, see “ Survey of Time and Savings D e
posits, July 1976” in the B u l l e t in for December 1976.
Detailed data for the current survey (formerly con
tained in appendix tables) are available on request from
Publications Services, D ivision of Administrative Serv
ices, Board of Governors of the Federal Reserve S y s
tem, W ashington, D .C . 20551.
mained strong. Such growth reflects the higher
interest rate ceilings on these accounts that en
courage individuals to extend the maturity of
their bank deposits. Since July 1973, when the
ceilings on time deposits maturing in 4 years
or more and with minimum denominations of
$ 1,000 were temporarily suspended, growth in
this category has totaled more than $70 billion .2
By comparison shorter-maturity time deposits
issued to households and businesses in small
denominations declined about $10 billion over
the same interval.
/
SA VING S DEPOSITS
Throughout the intersurvey period, yields on
short-term market instruments, such as 90-day
Treasury bills, exceeded by 1 to \ lA percentage
points the maximum return banks may legally
offer on savings deposits. Expansion of savings
deposits, not adjusted for seasonal variation,
matched the slow pace of the preceding 3
months— a period when market yields had
ranged from Vi to 1 percentage point above the
passbook ceiling rate. All of the $1.6 billion
growth was concentrated in accounts held by
individuals, accounts that tend to be the least
sensitive to movements of interest rates. Mean
while, a small absolute decline in savings de2
Prior to July 1973, the maximum rate payable was
5%. per cent at commercial banks for all sm all-denom i
nation deposits maturing in 2 years or more. At that
time, an estimated $600 m illion was outstanding in
commercial bank time accounts with original maturities
of 4 years or more. Then, during the 4-month period
when ceilings were suspended, about $9 billion flowed
into these accounts. Effective Novem ber 1, 1973, a
ceiling rate of 7.25 per cent at commercial banks was
established for deposits of 4 years or more. Effective
Decem ber 23, 1974, the ceiling was raised to 7 .5 0 per
cent for deposits of 6 years or more.
368
Federal Reserve Bulletin □ May 1978
posits of businesses offset a slight rise in such
holdings of governmental units within the
United States.
The January survey provides evidence that a
few large banks raised offering rates on savings
deposits, in light of the continued sluggish in
flows of such deposits. On new deposits issued
to individuals in late January, the maximum
offering rate of 5 per cent prevailed at 89 per
cent of banks with total outstanding deposits
greater than $100 million, up from 87 per cent
in late October. Similarly, the proportion of
large banks paying the ceiling interest rate on
accounts of businesses rose to 95 per cent from
92 per cent, and on accounts of domestic gov
ernmental units the proportion rose to 95 per
cent from 89 per cent. Taking all banks to
gether, the average rate paid on all types of
savings deposits, weighted by the amounts out
standing, rose over the period to 4.92 per cent
from 4.90 per cent.
SM ALL-DENO M INATIO N TIME
DEPOSITS
By the end of the survey period, yields on
Treasury securities had moved above regulatory
rate ceilings on bank time deposits issued to
consumers and businesses for all comparable
1. Types of time and savings deposits held by insured commercial banks on survey dates, July 27 and
October 26, 1977, and January 25, 1978
Deposits
Number of issuing banks
Type of deposit
In millions of dollars
July 27
Oct. 26
Jan. 25
July 27
Percentage change
Oct. 26
Jan. 25
July 27Oct. 26
Oct. 26Jan. 25
Total time and savings deposits..........................
14,405
14,409
14,333
518,117
529,862
548,293
2.3
3.5
Savings.............................................................
Issued to :
Individuals and nonprofit organizations...
Partnerships and corporations operated for
profit (other than commercial banks).
Domestic governmental units.....................
All other.......................................................
14,405
14,409
14,333
215,391
216,896
218,539
.7
.8
14,405
14,409
14,333
199,629
201,011
202,653
.7
.8
8,986
6,922
704
9,141
7,891
724
9,463
8,391
1,251
10,310
5,310
142
10,808
4,968
108
10,568
5,206
112
4.8
- 6 .4
- 2 4 .0
- 2 .2
4.8
3.5
0)
8,808
9,088
0)
1,546
2,084
IRA and Keogh Plan time deposits with
original maturities of 3 years or more. . .
Other interest-bearing time deposits in de
nominations of less than $100,000............
Issued to :
D om estic governmental u n its .......................
Accounts with original maturity of:
30 up to 90 days......................................
90 up to 180 days....................................
180 days up to 1 year..............................
1 year and over........................................
O ther than domestic governmental units . . . .
Accounts with original maturity of:
30 up to 90 days......................................
90 up to 180 days....................................
180 days up to 1 year..............................
1 up to 2 Vi years.....................................
2 Vi up to 4 years2...................................
4 up to 6 years2.......................................
6 years and over2.....................................
Interest-bearing time deposits in denomina
tions of $100,000 or more........................
Non-interest-bearing time deposits..............
In denominations o f:
Less than $100,000...................................
$100,000 or m ore.....................................
Club accounts (Christmas savings, vacation,
or similar club accounts).........................
14,173
14,166
14,090
167,363
165,097
166,717
-1 .4
1.0
1 0,789
10 ,8 3 8
1 0 ,6 8 8
4 ,6 8 8
4 ,3 3 4
4 ,1 1 8
-7 .6
- 5 .0
4,812
8,321
3,774
8,345
14,173
5,147
8,008
4,802
8,431
5,201
7,367
4,882
8,680
1,068
1,622
746
1,253
1 4 ,1 6 6
949
1,396
823
1,166
862
1,243
854
1,159
1 4 ,0 9 0
16 2 ,6 7 4
16 0 ,7 6 4
-1 1 .1
-1 3 .9
10.3
- 6 .9
162,598
- 1 .2
- 9 .1
- 1 0 .9
3.7
-.6
5,836
11,495
8,264
13,701
12,628
12,108
9,372
6,638
11,699
8,999
13,825
12,549
12,401
8,894
6,629
11,751
8,808
13,508
12,476
12,390
9,198
7,635
31,599
4,661
34,207
18,768
51,691
14,113
7,327
30,626
3,539
34,601
18,539
50,366
15,766
6,250
31,459
3,587
33,977
18,463
50,848
18,016
- 4 .0
- 3 .1
-2 4 .1
1.2
- 1 .2
- 2 .6
11.7
-1 4 .7
2.7
1.4
- 1 .8
- .4
1.0
14.3
11,376
11,636
11,747
128,593
140,451
156,122
9.2
11.2
1,709
1,686
1,625
4,790
4,052
4,019
-1 5 .4
- .8
1,378
740
1,381
720
1,379
623
1,396
3,394
862
3,190
692
3,327
- 3 8 .2
-6 .0
- 1 9 .8
4.3
9,155
8,929
9,212
1,981
1,820
813
-8 .1
- 5 5 .3
1 Data not collected.
2 Excludes all IRA and Keogh Plan accounts with original maturity
of 3 years or more.
N ote.—A ll banks that had either discontinued offering or never
34.8
1 .1
offered certain deposit types as of the survey date are not counted as
issuing banks. However, small amounts of deposits held at banks that
had discontinued issuing certain deposit types are included in the
amounts outstanding.
Figures may not add to totals because o f rounding.
Survey of Time and Savings Deposits
369
2. Small-denomination time and savings deposits held by insured commercial banks on January 25, 1978,
compared with October 26, 1977, by type of deposit, by most common rate paid on new deposits in each
category, and by size of bank
All banks
Deposit group, and dis
tribution of deposits by
most common rate
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 25
Oct. 26
Jan. 25
Oct. 26
100 and over
Jan. 25
Oct. 26
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 25
Oct. 26
Jan. 25
Oct. 26
100 and over
Jan. 25
Oct. 26
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Savings deposits
Individuals and non
profit organizations
Issuing banks............ 14,333
Distribution, to tal. . .
100
4.00 or less............
4.4
4.01-4.50................
9.5
4.51-5.00................
86.1
P a y in g c e ili n g r a t e 1. . .
86.1
All banks
14,409
100
4.6
9.3
86.1
86.1
13,300
100
4.4
9.7
85.9
85.9
13,381
100
4.6
9.4
86.0
86.0
1,033
100
4.1
6.7
89.1
89.1
1,028 202,653 201,011
100
100
100
5.1
3.1
3.6
7.5
9.5
9.7
87.4
87.4
86.6
87.4
87.4
86.6
9,463
100
1.3
7.6
91.1
90.9
9,141
100
1.5
7.1
91.4
91.2
8,444
100
1.4
7.9
90.7
90.4
8,124
100
1.5
7.2
91.3
91.0
1,019
100
.5
4.7
94.7
94.7
1,017
100
1.5
6.3
92.2
92.2
10,568
100
.6
5.7
93.6
93.6
10,808
100
1.1
7.0
91.9
91.9
3,205
100
1.1
5.8
93.1
93.1
3,340
100
1.0
6.8
92.2
92.1
7,363
100
.4
5.7
93.8
93.8
7,469
100
1.1
7.1
91.7
91.7
8,391
100
3.7
10.7
85.6
85.3
7,891
100
5.3
9.9
84.8
84.5
7,690
100
4.0
11.3
84.7
84.4
7,178
100
5.6
9.9
84.4
84.1
701
100
.7
4.2
95.1
95.1
714
100
1.8
9.1
89.1
89.1
5,206
100
1.4
7.1
91.5
91.5
4,968
100
2.0
8.8
89.2
89.1
2,760
100
1.8
11.0
87.2
87.1
2,544
100
2.9
14.0
83.1
82.9
2,447
100
.9
2.6
96.5
96.5
2,424
100
1.1
3.4
95.5
95.5
P a y in g c e ili n g r a t e 1. . .
1,251
100
9.8
18.9
71.3
71.3
724
100
17.0
12.3
70.7
70.7
1,104
100
10.9
21.4
67.7
67.7
558
100
21.5
16.0
62.5
62.5
147
100
2.0
( 2)
98.0
98.0
166
100
1.7
(2)
98.3
98.3
112
100
1.4
.1
98.5
98.5
108
100
1.4
(2)
98.6
98.6
37
100
1.7
.3
98.0
98.0
24
100
3.4
( 2)
96.6
96.6
75
100
1.3
(2)
98.7
98.7
84
100
.8
(2)
99.2
99.2
IRA and Keogh Plan time
deposits with original
maturities of 3 years
or more
Issuing banks................
Distribution, to tal........
6.00 or less................
6 .0 1 -7 .0 0 ..................
7 .0 1 -7 .5 0 ..................
7.51-7.75 ..................
P a y in g c e ilin g r a t e 1. . .
9,088
100
7.9
5.5
48.1
38.6
38.6
8,808
100
9.3
8.1
57.9
24.6
24.4
8,151
100
8.2
5.7
36.9
36.9
7,887
100
9.7
8.2
59.7
22.5
22.2
938
100
4.5
3.9
37.7
53.9
53.9
921
100
6.7
7.1
43.2
43.0
43.0
2,082
100
2.5
2.7
39.0
55.8
55.8
1,544
100
4.8
4.1
49.0
42.1
42.0
846
100
2.0
4.1
52.1
41.8
41.8
635
100
4.4
4.7
58.6
32.3
32.0
1,236
100
2.8
1.7
30.1
65.3
65.3
909
100
5.0
3.7
42.3
49.0
49.0
5,201
100
3.1
64.9
10.0
21.9
1.2
5,147
100
2.7
58.6
22.5
16.2
(2)
4,540
100
3.3
63.9
10.7
22.2
1.4
4,460
100
2.5
56.4
24.5
16.6
(2)
661
100
2.4
72.2
5.6
19.8
(2)
686
100
4.2
72.9
9.5
13.5
(2)
862
100
.6
57.7
11.4
30.3
3.2
949
100
.6
53.7
21.9
23.8
(2)
532
100
( 2)
55.6
10.9
33.6
5.2
563
100
.2
55.8
24.6
19.3
(2)
330
100
1.6
61.1
12.2
25.1
( 2)
386
100
1.1
50.7
17.9
30.4
(2)
7,367
100
1.0
11.4
76.4
11.3
(2)
8,008
100
1.3
13.1
74.7
10.9
( 2)
6,563
100
.9
11.9
76.1
11.0
(2)
7,234
100
1.2
13.5
74.5
10.8
(2)
804
100
1.6
6.6
78.6
13.3
(2)
774
100
1.6
9.9
76.8
11.7
(2)
1,224
100
.1
9.4
69.2
21.3
( 2)
1,395
100
.3
11.7
76.5
11.6
(2)
903
100
( 2)
10.4
67.9
21.7
(2)
1,022
100
.3
13.4
76.9
9.4
(2)
321
100
.2
6.7
73.0
20.1
(2)
373
100
.2
6.9
75.2
17.7
(2)
4,882
100
.1
7.7
67.0
25.2
(2)
4,802
100
.7
8.1
65.5
25.7
(2)
4,299
100
(2)
7.8
66.7
25.5
(2)
4,225
100
.7
7.7
65.1
26.5
(2)
583
100
.7
6.8
69.6
22.9
( 2)
577
100
.2
11.4
68.6
19.8
( 2)
853
100
( 2)
19.1
40.8
40.1
(2)
822
100
(2)
20.4
47.2
32.4
(2)
612
100
( 2)
10.2
41.9
47.8
(2)
582
100
( 2)
12.2
50.1
37.7
(2)
241
100
(2)
41.6
37.8
20.6
(2)
240
100
( 2)
40.2
40.3
19.4
( 2)
Partnerships and cor
porations
Issuing banks............
Distribution, to tal. . .
4.00 or less............
4.01-4.50...............
4.51-5.00...............
P a y in g c e ili n g r a t e 1. ..
Domestic govt, units
Issuing banks............
Distribution, to tal. . .
4.00 or less............
4.01-4.50...............
4.51-5.00...............
P a y in g c e ili n g r a t e 1. . .
All other
Issuing banks............
Distribution, to tal. . .
4.00 or less............
4.01-4.50................
4.51-5.00................
Time deposits in denomina
tions of less than
$100,000
Domestic govt, units:
M aturing in—
30 up to 90 days
Distribution, to tal. . .
4.50 or less............
4.51 5.00................
5.01 5.50...............
5.51-7.75................
P a y in g c e ili n g r a t e 1. ..
90 up to 180 days
Distribution, to tal. . .
4.50 or less............
4.51 5.00...............
5.01 5.50................
5.51 7.75...............
P a y in g c e ili n g r a t e 1. ..
180 days up to 1 year
Distribution, to tal. . .
4.50 or less............
4.51-5.00................
5.01-5.50................
5.51 7.75................
P a y in g c e ili n g r a t e 1...
For notes see page 372.
4 9 .2
76,926
100
3.4
9.6
87.1
87.1
76,403 125,727 124,608
100
100
100
3.4
3.0
3.8
9.5
9.4
9.9
87.1
87.5
86.3
87.1
87.5
86.3
370
Federal Reserve Bulletin □ May 1978
TABLE 2—Continued
All banks
Deposit group, and dis
tribution of deposits by
most common rate
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 25
Oct. 26
Jan. 25
Oct. 26
100 and over
Jan. 25
Oct. 26
Size of bank
(total deposits in millions of dollars)
Less than 100
Jan. 25
Oct. 26
Jan. 25
Oct. 26
100 and over
Jan. 25
Oct. 26
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Time deposits in denomina
tions of less than
$100,000 (cont.)
Domestic govt.
units (cont.)
1 year and over
Issuing banks............
Distribution, to tal. . .
5.00 or less............
5.01-5.50...............
5.51-6.00................
6.01-7.75................
P a y in g c e ili n g r a t e 1...
All banks
8,680
100
1.1
7.1
62.9
28.8
(2)
8,431
100
2.5
4.1
64.7
28.8
(2)
7,875
100
.8
7.0
63.0
29.2
(2)
7,619
100
2.2
3.8
64.7
29.3
(2)
805
100
4.3
8.7
62.0
25.0
.2
812
100
5.5
6.4
64.0
24.1
( 2)
1,152
100
.4
5.9
60.1
33.5
(2)
1,160
100
.6
5.3
63.3
30.9
(2)
945
100
.1
2.9
61.4
35.7
(2)
931
100
.1
.8
65.8
33.2
(2)
207
100
2.1
19.8
54.4
23.7
(2)
228
100
2.5
23.4
52.7
21.3
(2)
P a y in g c e ili n g r a t e 1. ..
6,629
100
2.5
97.5
97.5
6,638
100
1.6
98.4
98.4
5,741
100
2.6
97.4
97.4
5,723
100
1.3
98.7
98.7
888
100
1.7
98.3
98.3
915
100
3.0
97.0
96.7
6,229
100
.8
99.2
99.2
7,305
100
.8
99.2
99.2
1,507
100
( 2)
100.0
100.0
1,659
100
(2)
100.0
100.0
4,722
100
1.1
98.9
98.9
5,645
100
1.0
99.0
99.0
90 up to 180 days
Issuing banks............
Distribution, total. . .
4.50 or less............
4.51-5.00...............
5.01-5.50...............
P a y in g c e ilin g r a t e 1...
11,751
100
.5
8.2
91.2
91.1
11,699
100
.5
7.1
92.4
92.2
10,733
100
.6
8.7
90.7
90.7
10,688
100
.6
7.5
91.9
91.9
1,018
100
(2)
3.6
96.4
95.4
1,011
100
(2)
2.5
97.5
95.8
31,459
100
(2)
6.6
93.4
92.5
30,527
100
(2)
90.1
12,356
100
( 2)
5.3
94.7
94.7
12,185
100
(2)
6.4
93.6
93.6
19,103
100
(2)
7.4
92.6
91.2
18,342
100
( 2)
5.5
94.5
87.7
8,808
100
.5
7.0
92.5
91.1
8,999
100
.5
6.9
92.6
92.2
7,933
100
.4
7.4
92.2
90.7
8,112
100
.4
7.4
92.3
92.0
875
100
1.4
3.1
95.5
94.5
886
100
1.4
2.8
95.8
94.6
3,579
100
(2)
1.4
98.6
97.8
3,520
100
.1
3.5
96.4
96.3
2,158
100
(2)
1.9
98.1
96.9
1,907
100
(2)
4.8
95.1
95.1
1,421
100
.1
.6
99.3
99.3
1,613
100
.2
2.0
97.8
97.8
1 up to 2Vi years
Issuing banks............ 13,508
Distribution, to tal. . . 100
.7
5.00 or less............
2.0
5.01-5.50...............
97.3
5.51-6.00...............
96.9
P a y in g c e ili n g r a t e ' . . .
13,825
100
.6
3.6
95.7
95.4
12,485
100
.7
2 .1
9 7 .2
9 6 .9
12,807
100
.7
3.9
95.4
95.2
1,023
100
.1
1.2
98.7
97.3
1,018
100
.1
.7
99.3
97.7
33,973
100
.1
.9
99.0
98.7
34,600
100
.1
1.8
98.1
97.9
20,984
100
.1
1.0
98.8
98.8
21,611
100
.1
2.5
97.3
97.3
12,990
100
.1
.6
99.3
98.7
12,989
100
.1
.6
99.3
98.8
12,476
100
2.0
98.0
97.5
12,549
100
2.6
97.4
97.2
11,474
100
2.0
98.0
97.6
11,552
100
2.6
97.4
97.2
1,002
100
2.2
97.8
96.8
997
100
2.2
97.8
97.0
18,428
100
1.2
98.8
97.9
18,506
100
1.3
98.7
98.2
10,637
100
.5
99.5
98.7
10,612
100
1.1
98.9
98.4
7,791
100
2.2
97.8
96.8
7,894
100
1.5
98.5
98.0
12,390
100
.9
13.0
86.1
86.1
12,401
100
2.3
15.9
81.9
81.9
11,390
100
.7
13.6
85.7
85.7
11,404
100
2.0
16.6
81.4
81.4
1,001
100
2.9
6.0
91.1
91.1
998
100
4.8
7.7
87.5
87.5
50,599
100
1.3
9.0
89.7
89.7
50,136
100
2.5
13.8
83.6
83.6
26,930
100
.4
12.9
86.7
86.7
26,609
100
.7
18.4
80.9
80.9
23,669
100
2.4
4.6
93.0
93.0
23,528
100
4.5
8.7
86.8
86.8
8,894
100
.6
7.6
91.8
91.8
8,285
100
.6
5.8
93.6
93.6
8,007
100
.7
7.3
92.0
92.0
913
100
.2
8.7
91.1
91.0
887
100
P a y in g c e ili n g r a t e 1. . .
9,198
100
.6
6.1
93.3
93.3
90.1
17,739
100
(2)
4.4
95.6
93.0
15,479
100
( 2)
6.8
93.1
90.5
7,222
100
( 2)
1.0
99.0
99.0
6,314
100
(2)
1.6
98.4
98.4
10,517
100
(2)
6.7
93.3
88.9
9,164
100
(2)
10.5
89.5
85.2
Club accounts
Issuing banks............
Distribution, to tal. . .
0.00.........................
0.01-4.00...............
4.01-4.50................
4.51-5.50...............
9,212
100
46.0
15.2
7.4
31.3
8,929
100
46.6
17.3
8.1
28.0
8,428
100
47.5
15.5
7.3
29.7
8,190
100
48.4
17.4
8.0
26.2
784
100
29.6
12.7
9.2
48.5
739
100
26.7
15.7
9.4
48.2
810
100
23.4
14.9
14.2
47.5
1,776
100
21.8
13.3
9.0
55.9
356
100
32.5
19.0
14.4
34.0
767
100
31.1
18.7
9.9
40.3
453
100
16.3
11.7
14.0
58.0
1,008
100
14.8
9.1
8.4
67.7
Other than domestic
govt, units:
M aturing in —
30 up to 90 days
Issuing banks............
Distribution, to tal. . .
4.50 or less............
4.51-5.00...............
180 days up to 1 year
Issuing banks............
Distribution, total. . .
4.50 or less............
4.51-5.00...............
5.01-5.50...............
P a y in g c e ilin g r a t e 1. . .
2Vi up to 4 years
Issuing banks............
Distribution, to tal. . .
6.00 or less............
6.01-6.50...............
P a y in g c e ili n g r a t e 1. . .
4 up to 6 years
Issuing banks............
Distribution, to tal. . .
6.50 or less............
6.51-7.00...............
7.01-7.25...............
P a y in g c e ilin g r a t e ' . . .
6 years and over
Issuing banks............
Distribution, total. . .
5.00 or less
5.01-7.25...............
7.26-7.50...............
For notes see page 372.
.2
9 .6
9 0 .2
5 .8
9 4 .2
Survey of Time and Savings Deposits
371
3. Average of most common interest rates paid on various categories of time and savings deposits at insured
commercial banks on January 25, 1978
Bank size (total deposits in millions of dollars)
Type of deposit
All size
groups
Less
than 20
20 up
to 50
50 up
to 100
100 up
to 500
500 up
to 1,000
1,000
and over
Savings and small-denomination time deposits.....................
5.58
5.77
5.73
5.62
5.54
5.50
5.44
Savings, total............................................................................
Individuals and nonprofit organizations............................
Partnerships and corporations............................................
Domestic governmental units............................................
All other...............................................................................
4.92
4.92
4.96
4.95
4.98
4.95
4.94
5.00
4.92
4.70
4.91
4.90
4.94
4.95
5.00
4.92
4.92
4.97
4.90
5.00
4.93
4.93
4.98
4.98
4.98
4.90
4.89
4.99
4.99
5.00
4.92
4.92
4.95
4.97
5.00
IRA and Keogh Plan time deposits with maturity of 3 years
or more.............................................................................
7.55
7.48
7.48
7.49
7.57
7.54
7.63
Other time deposits in denominations of less than $100,000,
total................................................................... . .............
Domestic governmental units, total...................................
M aturing in—
30 up to 90 days...............................................................
90 up to 180 days.............................................................
180 days up to 1 year......................................................
1 year and over................................................................
6.43
5.84
6.39
5.94
6.54
5.99
6.44
5.60
6.41
5.56
6.41
6.20
6.36
5.71
5.54
5.69
5.83
6.23
5.97
5.50
5.88
6.29
5.40
5.94
6.37
6.13
5.30
5.56
5.40
6.39
5.31
5.63
5.31
5.99
5.99
6.03
6.31
6.70
5.33
5.80
6.06
6.32
Other than domestic governmental units, total.................
M aturing in—
30 up to 90 days..............................................................
90 up to 180 days....................................... ....................
180 days up to 1 year......................................................
1 up to 2 l/ i years................... .........................................
2 l/ i up to 4 years..............................................................
4 up to 6 years.................................................................
Over 6 years.....................................................................
6.44
6.41
6.56
6.46
6.43
6.42
6.37
4.99
5.46
5.49
5.99
6.49
7.22
7.48
5.00
5.48
5.48
5.99
6.50
7.23
7.49
5.00
5.47
5.50
6.00
6.50
7.21
7.50
5.00
5.47
5.48
5.99
6.49
7.22
7.50
4.99
5.47
5.49
6.00
6.49
7.21
7.47
4.96
5.49
5.50
6.00
6.48
7.24
7.47
5.00
5.44
5.50
5.99
6.48
7.21
7.46
M emo: Club accounts1..........................................................
3.53
2.63
2.69
3.51
3.85
3.91
4.15
i Club accounts are excluded from all of the above categories.
N ote.—The average rates were calculated by weighting the most
common rate reported on each type of deposit at each bank by the
maturities except 6 years and over .3 Although
more than 90 per cent of banks were paying
the ceiling rate for nearly all deposit categories,
they still experienced a net outflow of nearly
%Vi billion of small time deposits maturing in
less than 6 years, while attracting about $21A
billion in deposits with longer maturities. Banks
also acquired %Vi billion of deposit inflows to
3
W hen comparing investment alternatives it is im
portant to take account of the effects of interest com
pounding on the stated nominal rates. For a given stated
rate, the effective rate is at a legal maximum when the
bank em ploys continuous compounding of interest on
the basis of a 360-day year. Therefore, given the current
nominal rate ceilings (listed in B u l l e t in Table 1. 16
on page A 10), the highest legal yields on sm all-denom
ination time deposits issued to consumers and businesses
are as follow s: savings deposits, 5 .2 0 per cent; time
deposits maturing in under 1 year, 5.73 per cent; 1 up
to 2Vi years, 6 .2 7 per cent; 2 xh up to 4 years, 6.81
per cent; 4 up to 6 years, 7.63 per cent; 6 years and
over, 7 .9 0 per cent. Since this survey records only the
stated nominal rates of interest paid by banks and does
not record the method of com pounding, the number of
banks offering maximum effective yields cannot be
determined.
amount of that type of deposit outstanding. All banks that had either
discontinued offering or never offered particular deposit types as of the
survey date were excluded from the calculations for those specific
deposit types.
a separate category of accounts— individual re
tirement accounts (IRA) and Keogh accounts
with maturities of 3 years and more— on which
the nominal ceiling rate is 1 3A per cent; the
weighted-average rate paid on these accounts
was 7.55 per cent in January.4
Banks continued to experience net outflows
from time deposits issued to governmental units
in the United States. On these time deposits
banks may pay stated rates up to 7 % per cent
without regard to maturity. In fact, however,
the average interest rates on various maturity
categories exceeded the ceilings for issues to
nongovernmental units by only lA to xh of a
percentage point; these spreads probably were
limited by the fact that banks must pledge se
curities against government deposits. Moreover,
with about three-quarters of such deposits ma
4
Unknown amounts of individual retirement accounts
and K eogh accounts are included in the savings deposits
category and among categories of time deposits matur
ing in less than 3 years.
372
Federal Reserve Bulletin □ May 1978
turing within 1 year, the average rate offered
in January for all maturities was only 5 3A per
cent, somewhat below the average rate of 6 V2
per cent on issues to individuals, partnerships,
and corporations.
OTHER TIME DEPOSITS
Given continued strength in loan demand be
tween November and January, coupled with
slow growth of deposits subject to interest rate
ceilings, banks relied heavily on managed lia
bilities, including large-denomination time de
posits that are not subject to rate ceilings. Banks
obtained nearly $ 153A billion of such depos
its— the largest inter-survey growth since July
1973. Based on comparable not-seasonally-ad
justed data, which are not shown in the tables,
large negotiable certificates of deposit at weekly
reporting banks grew about $ 6 3A billion.
Non-interest-bearing time deposits were es
sentially unchanged over the period, as a slight
decline in small-denomination accounts offset
a small rise in large-denomination deposits.
Finally, club accounts, which normally display
a seasonal decline between October and Jan
uary, fell $1 billion to a level of about $800
million. This is somewhat below the $1.1 billion
level recorded a year earlier, suggesting a grad
ual attrition in these low-yielding deposits. □
NOTES TO TABLE 2:
1 See Bulletin Table 1.16 on page A10 for the ceiling rates that
existed at the time of each survey.
2 Less than .05 per cent.
N ote.—All banks that either had discontinued offering or had
never offered particular deposit types as of the survey date are not
counted as issuing banks. Moreover, the small amounts of deposits
held at banks that had discontinued issuing deposits are not included
in the amounts outstanding. Therefore, the deposit amounts shown
in Table 1 may exceed the deposit amounts shown in this table.
The most common interest rate for each instrument refers to the
stated rate per annum (before compounding) that banks paid on the
largest dollar volume of deposit inflows during the 2-week period
immediately preceding the survey date.
Figures may not add to totals because of rounding.
373
Statements to Congress
Statement by G. William M iller , Chairman ,
B oard of G overnors of the Federal R eserve
System , before the Committee on Banking ,
Housing and Urban A ffairs , L/.S. Senate , A pril
25, 797S.
Mr. Chairman, members of the committee, it
is a pleasure to meet with you and to report,
on behalf of the Board of Governors of the
Federal Reserve System, about the outlook for
the national economy and about the course that
the Federal Reserve has charted for monetary
policy over the year ahead. I look forward to
a continuing dialogue with you on these matters
at this committee’s regular monetary oversight
hearings.
Economic activity is rebounding
The economy is currently rebounding from
a slack period early in the year when economic
activity was constrained by severe weather and
the long coal strike. Retail sales and industrial
production have risen sharply since midwinter.
Auto sales have strengthened. Housing starts
increased markedly in March from the relatively
depressed levels of January and February.
Employment has grown steadily since the
beginning of the year. Although the length of
the average workweek declined in the first
quarter, the number of people on the Nation’s
payrolls rose substantially between December
and March, and the unemployment rate edged
down from 6.4 to 6.2 per cent. These favorable
trends in the labor market are depicted, along
with the behavior of real gross national product,
in the attached chart 1.1 The continuing uptrend
1 The attachments to this statement are available on
request from Publications Services, D ivision of Adm in
istrative Services, Board of Governors of the Federal
Reserve System , W ashington, D .C . 20551.
in employment suggests that businessmen have
had sufficient confidence in the underlying
strength of the economy to be positioning
themselves for further increases in production.
Looking ahead, growth in economic activity
is expected to be sustained over future months
by expanding consumer and business demands.
The near-term prospects for good gains in con
sumer spending appear favorable, as indexes of
consumer sentiment have remained at high
levels.
Business spending also should provide im
petus to expansion. Inventories generally remain
lean, and businesses are likely to be building
their stocks in the next few quarters. Business
investment in plant and equipment, after lagging
early in the economic upswing, has increased
at a good pace over the past 2 years. Surveys
of capital spending plans and other advance
indicators suggest at least moderate further
growth in the year ahead.
Although State and local governments by and
large continue to pursue cautious financial poli
cies, they also may register significant increases
in real expenditures in the period ahead. Resi
dential construction should show sizable in
creases in the next few months before tapering
off gradually in the second half of this year.
And the foreign trade deficit, while remaining
large, should moderate somewhat from the very
high first-quarter rate.
But inflation has worsened
While the prospects for economic activity
thus appear to remain favorable, there are other
aspects of recent economic performance that
reflect fundamental problems, which will not be
put behind us quickly. Inflation undoubtedly is
the most troubling of these to the American
people. Even as growth in real GNP was inter
rupted in the first quarter, the rate of increase
374
Federal Reserve Bulletin □ May 1978
in prices accelerated. Wholesale prices rose at
a 9.6 per cent annual rate during the past 3
months— well above the already uncomfortably
high rates experienced last year. Consumer price
increases also accelerated. To be sure, a sub
stantial spurt in volatile food prices contributed
importantly to the advance in the broad price
indexes, but prices of industrial commodities
and of services also have continued to rise at
a brisk pace. These unfavorable trends in prices
are displayed in the charts.
U pward cost pressures remain
There is little reason to be optimistic about
the likelihood of achieving a significant reduc
tion in underlying inflationary forces in the near
future. Cost pressures remain strong. In 1977,
for example, total compensation per hour in the
private business sector rose almost 9 per cent,
while productivity increased only 2 l/i per cent;
as a result, unit labor costs rose more than 6
per cent. There has been no sign of any abate
ment of the advance in wage rates, and at this
stage of economic expansion there is little like
lihood of a sustained pick-up in productivity
growth. Therefore, rising unit labor costs can
be expected to continue to exert considerable
upward pressure on prices.
Governmental program s
have added to costs and inflation
Price pressures have been exacerbated by
governmental actions. Certain tax actions, while
they have helped to reduce the budgetary deficit
and in this way have worked to restrain one
of the forces feeding inflation, simultaneously
have added to labor costs. This has been the
case, for instance, with increases in employer
contributions for social security and unemploy
ment insurance. Some other governmental ac
tions also have added to inflationary forces
without any compensating restraint. In this class
are the increase in the minimum wage, agricul
tural price supports, and various import restric
tions. In general, there has been a tendency by
Government over the years to treat the problems
of individual sectors without adequate regard to
the cumulative inflationary bias that the pro
grams have imparted to the economy.
So too has the declining
international value of the dollar
Another disturbing aspect of economic per
formance in the opening months of this year
has been the pronounced widening of the foreign
trade deficit and the weakness of the interna
tional value of the dollar. The estimated trade
deficit was greatly enlarged in the first quarter
of 1978, as exports remained sluggish and im
ports in nearly all categories increased sharply.
Against this backdrop, the dollar declined in
foreign exchange markets, and by the end of
March its trade-weighted value against other
major currencies was 8 V2 per cent lower than
early last fall. The depreciation of the dollar
is tending to raise the domestic price structure
in various ways: higher prices of imported fin
ished goods raise directly the prices paid by
consumers; higher prices of imported materials
raise the costs of domestic manufacturers; and
higher prices of foreign goods reduce the pres
sure to hold down prices of the domestically
produced goods with which they compete in our
markets.
In recent weeks, the dollar has risen relative
to other major currencies. Such a trend, if
continued, will help moderate inflationary pres
sures.
The P resident’s anti-inflation
program offers hope of breaking
inflationary psychology
President Carter recently outlined a broad
program to help deal with the problem of infla
tion. The Federal Reserve welcomes this initia
tive. Given the support of the Congress and of
the general public, the program is a constructive
step toward breaking the inflationary patterns
and psychology that today are so firmly en
trenched. The job of containing inflation re
quires a concerted effort on the part of all
Americans. The Federal Reserve will play its
part in supporting the President’s initiative by
exercising appropriate restraint in the provision
of bank reserves, credit, and money.
The prospects for inflation will play a major
role in shaping future financial developments.
The strength of the dollar on foreign exchange
markets is influenced by expectations about in
Statements to Congress
flation. So, too, is the level of interest rates in
domestic credit markets. The increase in interest
rates during the past 12 months— especially the
increase of Vi to 3A of a percentage point in
long-term bond rates— may be attributable in
part to heightened inflationary expectations.
M onetary p o licy has been adjusted
to restrain unduly rapid monetary growth
Yields on most short-term market instruments
today are about 13A to 2 percentage points higher
than a year ago. This rise has occurred gradually
as the Federal Reserve adjusted its policies in
light of the tendency for monetary expansion
to exceed the growth ranges that had been
established. The tendency was most pronounced
in the case of the narrowly defined money stock,
M -1, which includes only currency and demand
deposits. Largely as a result of the rapid expan
sion of M -l, however, growth in the broader
monetary aggregates— M-2 and M-3— also has
remained near the upper ends of their ranges.
M-2 is M -l plus time and savings deposits at
commercial banks (other than large negotiable
certificates of deposit), while M-3 includes also
time and savings deposits at thrift institutions.
For most of the current cyclical expansion,
growth in M -l has been well within the ranges
established by the Federal Reserve. Indeed,
early in the expansion, growth was near the low
end of the range. In part, this was the result
of actions by the public to shift funds from
demand deposits to interest-bearing savings de
posits and market instruments in response to
financial innovations that made it easier to
transfer funds in and out of savings deposits.
In part, it seems to have reflected a lagged
response to the unusually high level of interest
rates reached during the 1973-74 inflation. And
in part, it may also have reflected the return
of confidence during economic recovery, which
made the public more willing to spend out of
existing cash balances and which thus reduced
the need for the Federal Reserve to supply
additional money to the economy.
By last year, the moderating impact on money
growth of such factors had considerably less
ened. Moreover, persisting upward cost and
price pressures were making it difficult for the
375
Federal Reserve to hold money growth within
bounds while not risking undue interference
with continued economic expansion. Finally, it
is possible that the public earlier had reduced
its cash, balances to unsustainably low levels
relative to income and that some part of the
sizable expansion in money last year reflected
a restoration of cash balances to more normal
levels.
M oney growth has slow ed
Growth in the monetary aggregates slowed
during the latter part of 1977 and in the early
months of 1978. M -l has moved back within
the ranges of the Federal Open Market Com
mittee, while M-2 has moved from the upper
limits of the ranges toward the lower limits. M-3
has behaved about the same as M-2. This mod
eration of monetary expansion has reflected in
part the cumulative impact of the restraining
actions and rise of short-term interest rates that
began in the spring of last year. The influence
of interest rates has been most evident in the
case of the interest-bearing components of the
monetary aggregates. As market rates of interest
rose relative to deposit rate ceilings, some
savers shifted their funds from deposits at banks
and nonbank thrift institutions into market in
struments, in the process contributing to the
slowing of growth of M-2 and M-3.
With credit demands strong , liquidity of
banks and thrifts has come under pressure
The slowing of monetary expansion in recent
months, in conjunction with strong credit de
mands, has been accompanied by some erosion
in the liquidity of depositary institutions. To
finance business, consumer, and mortgage credit
demands, commercial banks have turned in
creasingly to the short-term credit markets as
a source of funds. There has been marked
growth in the outstanding volume of large-de
nomination time deposits, which are not subject
to regulatory interest rate ceilings, and in the
nondeposit interest-bearing liabilities of banks.
At the same time, banks have appreciably re
duced their holdings of Treasury securities.
Despite these changes in bank portfolios, how
ever, customary measures of bank liquidity still
376
Federal Reserve Bulletin □ May 1978
indicate more comfortable conditions than pre
vailed a few years ago.
Thrift institutions, with the exception of
credit unions, have experienced much the same
pressures as commercial banks since mortgage
loan demand has remained strong. To accom
modate that demand, institutions— in particular,
savings and loan associations, which are the
largest home mortgage lenders— have borrowed
heavily from Federal home loan banks and cur
tailed their acquisitions of securities.
The savings and loans have also utilized other
sources of funds, including the growing markets
for private mortgage-backed bonds and mort
gage pass-through securities, to sustain new
mortgage lending. These markets promise ulti
mately to give thrift institutions greater flexi
bility in managing their portfolios and to make
the residential mortgage market less dependent
on thrift institutions’ deposit flows. At present,
however, with deposit flows running weaker and
liquidity coming under pressure, savings and
loans have cut back on the outstanding volume
of loan commitments since the year-end. And
mortgage interest rates have risen moderately
in recent months.
Credit remains generally am ple , however
Despite the greater pressures experienced by
depositary institutions, credit generally remains
in ample supply. Borrowers are experiencing
little difficulty in raising needed funds at current
interest rate levels. And while higher than a year
ago, interest rates are at relatively modest levels
after allowance is made for the effect of infla
tion.
M onetary growth ranges fo r the year ahead
are expected to support further economic
expansion and a low er unemployment rate,
but inflation may not decelerate until later
The ranges of monetary expansion adopted
by the Federal Open Market Committee for the
year ending with the first quarter of 1979 reflect
our belief that growth in the monetary aggre
gates should be moderate, with credit remaining
in reasonably good supply. The Committee has
specified a growth range for M-1 of 4 to 6 V2
per cent. For M-2, the range selected is 6 V2 to
9 per cent, and for M-3, 7 V2 to 10 per cent.
These ranges are the same as the Committee
had earlier specified for the year ending with
the fourth quarter of 1978. Although the FOMC
at this time has not made a further reduction
in its monetary growth ranges, it remains firmly
committed to a gradual reduction in monetary
growth over time to rates more nearly consistent
with reasonable price stability. The ranges just
adopted in fact contemplate that actual monetary
growth in 1978 and into early 1979 will be
slower than last year. Because there have been
signs of a resurgence in M-1 growth over the
last few weeks, the Federal Reserve has recently
been less accommodative in supplying reserves
in order to keep monetary growth within rea
sonable bounds over the long run. The money
market in consequence has tightened a bit over
the past few days.
In addition to adopting ranges for the mone
tary aggregates, the FOMC also adopted an
associated range for bank credit that projects an
increase of between IV2 and WV2 per cent over
the 1-year period ahead. Such a range would
allow for continued expansion in bank credit at
around its recent pace.
It was the consensus of the FOMC that ex
pansion of monetary and credit aggregates
within these ranges would be consistent with
moderate growth in real GNP over the coming
year and with some further decline in the un
employment rate. However, upward price pres
sures remain strong, and the rate of increase
in the average price level, therefore, might be
somewhat more rapid over the year ahead than
it was in 1977. Full and effective public support
of the administration’s anti-inflation program,
and success in keeping the budget deficit under
control, would aid in restraining upward pres
sure on prices and would help create conditions
whereby we could look forward to a gradual
deceleration of the inflationary process.
Let me supplement this with my own views
about the outlook for the economy in quantita
tive terms. My personal expectation is that, over
the year ending with the first quarter of 1979,
real GNP probably will increase in a range of
4 xk to 5 per cent, the unemployment rate prob
ably will drop into the area of 5% to 6 per cent,
Statements to Congress
and the GNP price deflator is likely to rise by
6 3A to IV4 per cent. It is hardly necessary to
add that quantitative projections, such as these,
are subject to considerable margins of uncer
tainty. Necessarily they have to be re-evaluated
on the basis of incoming economic data and
changing conditions here and abroad.
Specifying growth rates for the monetary ag
gregates, too, is subject to considerable uncer
tainty. The growth in the narrowly defined
money supply (M -l) needed to support eco
nomic expansion depends in part on changes in
the velocity of money— that is, on the rate at
which the public uses the existing stock of
money to finance transactions. Velocity may rise
rapidly or slowly, depending on shifting public
preferences for demand deposits as compared
with other assets and on the state of consumer
and business confidence.
The behavior of the broader aggregates— M-2
and M-3— will be affected in the year ahead also
by the constraint placed on the ability of depos
itary institutions to attract funds under existing
regulatory ceilings on deposit rates. If heavy
demands for money and credit should place
further upward pressure on market interest rates,
deposits subject to regulatory rate ceilings will
be placed at a substantial, competitive disad
vantage. In such a circumstance, growth of M-2
Statement by J. Charles P artee , M em ber, B oard
of Governors of the Federal R eserve System ,
before the Committee on Banking, Housing and
Urban Affairs, U.S. Senate, M ay 9, 1978.
I appreciate this opportunity to present the views
of the Board of Governors of the Federal Re
serve System on the Full Employment and Bal
anced Growth Act— known popularly as the
Humphrey-Hawkins bill. This proposed legisla
tion would amend the Employment Act of 1946
by setting forth specific economic goals and by
providing explicit roles in the economic policyplanning process for the President, the Con
gress, and the Federal Reserve.
377
and M-3 could fall short of the ranges set by
the FOMC, unless there are upward adjustments
in the ceiling rates on some or all categories
of time and savings deposits.
Federal R eserve should not
be left to com bat inflation alone.
Effective anti-inflation program
requires cooperative effort
The Federal Reserve believes that its deter
mination to hold monetary growth within the
ranges just adopted will work to curb inflation
over the longer run and at the same time provide
adequate money and credit for continued eco
nomic growth. However, under current condi
tions— when inflationary pressures are to a great
extent embodied in the structure of the econ
omy— any deceleration in monetary growth
rates has to be undertaken with caution. The
pace of deceleration cannot proceed much more
rapidly than the pace at which built-in inflation
ary pressures are wrung out of the economy if
satisfactory economic growth is to be main
tained. Thus, bringing inflation under control
urgently requires the cooperative efforts of the
administration, the Congress, the Federal Re
serve, and the private sectors of the economy.
The Federal Reserve should not be left to com
bat inflation alone.
□
The several, somewhat different versions of
the act now under discussion in the Congress
contain substantial improvements over the ear
lier bill on which I testified before this commit
tee in the spring of 1976. Particularly welcome
is the increased emphasis of the current bills
on the need to reduce inflation as well as unem
ployment. The Federal Reserve strongly sup
ports this change, as the more specific recogni
tion of the goal of price stability addresses a
major inadequacy of both the 1946 Act and the
amendments to it proposed in earlier versions
of the Humphrey-Hawkins bill.
We are encouraged also by deletion of some
of the major inflationary features of the previous
378
Federal Reserve Bulletin □ May 1978
bill. The Board had been especially concerned
by the provisions that would have required the
Federal Government to become the employer of
last resort and by the very high wage standards
mandated for such Federally funded jobs. The
new versions of the bill require that all special
programs that provide job opportunities to the
hard-core unemployed be designed to avoid
drawing workers from private employment, and
the wage rate provisions appear to be more
reasonable than those of the earlier bill.
The bills under discussion today also no
longer contain those provisions that would have
unduly restricted economic policy by requiring
a comprehensive policy-planning process
directed toward the achievement of an unem
ployment rate goal of 3 per cent, with no regard
for any inflationary consequences until that goal
was reached. That earlier structure would have
stripped monetary policy of its ability to respond
flexibly to changing economic conditions.
These improvements in the current bills are
clearly all to the good. However, the Federal
Reserve continues to have reservations about
some of the provisions that still remain. I would
emphasize in particular that the unemployment
goals to be attained within 5 years are extremely
ambitious. The goals established by the bill— 3
per cent for workers aged 20 years and over
and 4 per cent for workers aged 16 years and
over— were last achieved only during the
1966-69 period, when the U.S. economy was
suffering from demand-pull inflation stemming
from the military manpower requirements and
heavy spending pressures of the Vietnam war.
The historically low unemployment goals,
moreover, tend to ignore the significant changes
that have occurred in the composition of our
labor force over the past decade or so. Due to
changes in the age distribution of our population
and to increases in the participation rate for
certain groups, the numbers of teenagers and
adult women in the labor force have grown
dramatically. For example, in the last 10 years,
total population has increased about 9 per cent,
while the numbers of adult women and teen
agers in the labor force have risen 42 and 40
per cent, respectively. If the unemployment rate
for the first quarter of this year were to be
adjusted to take account of this change in labor
force composition, it would have been nearly
0.5 percentage point lower than the 6.2 per cent
rate that was reported.
Efforts to keep our rapidly expanding labor
force fully employed have been further compli
cated because those seeking work have often
lacked the skills required to handle the jobs
available. Also, the job markets in which op
portunities occur have often been at locations
far distant from the persons in search of work.
These structural problems, I believe, can be
attributed in part to the higher skills required
by a technologically advancing society and in
part to geographical shifts in population and in
job opportunities— broadly from north to south
and also from central cities to the suburbs.
Moreover, in the case of unproved workers,
such as unskilled teenagers, the unemployment
problem has been aggravated by increases in the
minimum wage. Such increases have tended to
mean that marginally productive job applicants
become unemployable on an economic basis at
the going wage.
In our present circumstances, therefore, it is
unlikely that macroeconomic policies alone can
achieve the low unemployment goals of the
Humphrey-Hawkins bill without running the
grave risk of substantially exacerbating the in
flation problem. If sole reliance were to be
placed on general economic policies to reach
these very ambitious unemployment rate objec
tives, certain critical labor skills could be ex
pected to come into short supply and some
industries would be pressed above practicable
capacity limits, well before aggregate demands
had risen sufficiently to absorb the more mar
ginal types of workers.
It seems to me abundantly clear, therefore,
that any hope of attaining the HumphreyHawkins unemployment targets without esca
lating price pressures will depend on a major
effort to develop special employment programs.
These are needed to make our unemployed more
employable, to put the jobless in touch with
available jobs, and to generate employer interest
in taking on marginal workers— perhaps at an
initially subsidized wage cost that makes their
employment economically attractive. Moreover,
Statements to Congress
although our structural employment problems
are aggravated by business cycle downturns,
they appear also to be growing over time, so
their correction is likely to require more than
the countercyclical programs contained in Title
II of the proposed bill.
Apart from training and other programs for
the hard-core unemployed, careful consideration
also needs, to be given to the recent shortfall
in business investment spending and to the ef
fects this is likely to have on the creation of
new job opportunities. Unfortunately, during
the past 5 years, growth in the Nation’s stock
of capital has been slowing relative to growth
in our labor force. If this trend persists, it may
mean a slower creation of new jobs relative to
our employment needs as well as a slower
increase in the general productivity of our
economy. Thus, there is an important stake for
all of us in finding effective means of encour
aging more investment in productive plant and
equipment, through stronger incentives for
business and perhaps some structural revision
in the tax laws.
In addition, the Board is deeply concerned
that the emphasis and organization of the current
bills still appear to place the objective of con
trolling inflation in a role distinctly subordinate
to that of reducing unemployment. Although the
reduction of inflation is mentioned in one way
or another five or six separate times in the bills,
the prescription for moderating inflation is quite
vague. Moreover, in the House-passed version,
the President is not even required to report on
progress or plans for controlling inflation until
the third year of the program.
The amendment introduced by Senator Proxmire seeks to redress this relative imbalance in
objectives by adding an explicit goal for reduc
ing inflation to 3 per cent or less, on the same
timetable set forth for achieving the unemploy
ment rate goals. The Federal Reserve supports
the inclusion of a specific interim inflation rate
objective, though we believe that greater flexi
bility for revision should be provided than the
amendment contemplates. A possible approach
would be to permit the President to recommend
modification in the inflation rate goal and/or the
timetable for attainment, starting with the third
379
Economic R eport after the law becomes effec
tive. This alternative would provide parallel
treatment for both the inflation and the unem
ployment goals.
The Board would urge also that every effort
be made to reduce or eliminate the many infla
tionary biases that are at work in the economy,
some of which are a result of longstanding
Federal programs. We are encouraged by rec
ognition in the Humphrey-Hawkins bill of the
need for structural measures to combat infla
tion— including the removal or modification of
governmental restrictions that have anticompe
titive effects or add needlessly to costs, and the
effective enforcement of the antitrust laws. But
there is a need to re-examine the relative costs
and benefits of other Federally mandated pro
grams as well, such as the Davis-Bacon Act,
the minimum wage for teenagers, extended un
employment insurance, and the full indexing of
all public retirement benefits. Also, we would
recommend that the inflationary costs as well
as the potential benefits explicitly be taken into
account in setting our environmental quality
goals, particularly at the outer margins of the
improvements specified. Meaningful progress in
reducing the over-all inflation rate will require
a comprehensive attack on the problem, pro
gram by program, in the public as well as the
private sector.
Let me turn now to the specifics of the
Humphrey-Hawkins bill that apply to monetary
policy. The procedures currently contemplated
for evaluating and monitoring the role of the
Federal Reserve in economic policy planning
and coordination have substantially improved
upon the rigidity of the earlier bills. The Federal
Reserve would now be required to provide an
independent statement setting forth its intended
policies for the year ahead, along with an ex
planation of their relationship to the economic
goals presented in the Economic R eport of the
President.
In the House-passed version of the bill the
role of reviewing the intended policies of the
Federal Reserve remains appropriately with the
banking committees of the Congress. The Board
believes that this assignment is consistent with
the quarterly oversight procedures now in place
380
Federal Reserve Bulletin □ May 1978
and that it would benefit from the accumulated
experience and familiarity of these committees
with the Federal Reserve and the major issues
encountered in the formulation of monetary
policy. And to the extent that the Congress
determines that action may be called for in order
to ensure the consistency of monetary policy
with the purposes of the bill, the Board would
favor a provision that assigns principal respon
sibility to the banking committees.
In order to provide further consistency with
the current procedures for congressional review
of monetary policy, the Board supports the
inclusion of the last sentence of Section 2A of
the Federal Reserve Act, as appears in H.R.
50. Section 2A provides that the Federal Re
serve not be required to adhere strictly to its
intended policies for the year ahead if the Board
and the Federal Open Market Committee should
determine that these policies, as reported to the
Congress, cannot or should not be achieved
because of changing conditions. That language
was wisely included in the Federal Reserve
Reform Act in order to preserve the flexibility
essential to the proper conduct of monetary
policy. Its inclusion in the Humphrey-Hawkins
bill would avoid the statutory inconsistency that
might otherwise occur.
One potential problem inherent in the plan
ning for general economic policies designed to
control both unemployment and inflation is that
trends in employment tend to respond more
quickly to changes in policy, including mone
tary policy, than do trends in prices. Actions
that stimulate a general expansion in spending
for goods and services tend to generate needs
for additional workers fairly early in the
process. While this step-up in demands for
workers and the materials they use may exert
some immediate upward pressure on wages and
prices, the full impact of the stimulus is likely
to be stretched out over a fairly extended period.
Some wage and price adjustments are delayed
until the expiration of existing contracts, or until
the strengthening trend develops sufficient up
ward momentum. But when these contracts are
eventually adjusted, they often generate addi
tional catch-up demands for further adjustments
in other sectors of the economy. Because of this
long trail on inflation, public policies are in
danger of giving insufficient weight to potential
inflationary pressures unless they focus on a
planning horizon that looks beyond the next year
or two.
Thus, the inclusion of inflation as well as
unemployment rate targets to be attained on the
same timetable 3 to 5 years out would be a
desirable addition to the Humphrey-Hawkins
bill. Policy-makers would then be guided by
both of these longer-range economic goals, and
the undue focus on short-term objectives that
can occur would tend to be moderated. It must
be recognized, of course, that the linkages be
tween current policy actions and the perform
ance of the economy over a longer horizon are
quite tenuous. Moreover, since current eco
nomic conditions can often change in abrupt and
unexpected ways, appropriate adjustments in
short-term policy goals may require revisions
in longer-range policy plans as well. But so long
as the longer-range unemployment and inflation
rate goals are not considered rigid absolutes, it
would be preferable to make adjustments in
short-term policy with an eye to their implica
tions for the timing and attainability of longerrun objectives, especially with respect to price
developments.
In conclusion, I want to assure you that the
Federal Reserve fully shares the desires of the
Congress and the administration to achieve
conditions that will foster the creation of jobs
for all of our people who are able and willing
to work. Since the passage of the Employment
Act in 1946, this has been an explicit objective
of national economic policy to which the Fed
eral Reserve has subscribed. The economic his
tory of this and other countries in the postwar
period, however, has amply demonstrated that
our performance with respect to inflation has a
critical bearing on the chances for actually
achieving meaningful and sustainable full em
ployment. High and rising rates of inflation,
quite aside from the inequitable consequences
they bring to our people, tend to distort eco
nomic decisions, sap consumer purchasing
power, and lead to conditions that are likely in
time to reduce rather than enhance employment
prospects. We must be on guard also to avoid
Statements to Congress
381
th e h ig h e r F e d e r a l e x p e n d itu r e s a n d th e r e fo r e
a c h ie v in g f u ll e m p lo y m e n t a n d a s a n e c e s s a r y
la rg e r b u d g e t d e fic its th at m ig h t f o l l o w
fr o m
c o n d itio n fo r e f f e c t iv e p u b lic a n d p r iv a te p la n
m e c h a n ic a l e ffo r ts to a c h ie v e th e e m p lo y m e n t
n in g . T h e r e is a r ea l r isk th at th e H u m p h r e y -
o b j e c tiv e s o f th is b ill.
H a w k in s b i l l, if e n a c te d w ith th e p r e s e n t l o p
W h ile th e cu r re n t v e r s io n s o f th e H u m p h r e y H a w k in s b ill ta k e m o r e
a c c o u n t th an e a r lie r
v e r s io n s o f th e th reat th at in fla tio n p o s e s to ou r
s id e d e m p h a s is , w i l l a c c o r d b y la w a b a c k se a t
to th e
need
fo r
m ore
e f f e c t iv e
c o n tr o l
over
in fla tio n . It s e e m s p a r a d o x ic a l th at th is m ig h t
e c o n o m ic h e a lth , th e y s till d o n o t a c k n o w le d g e
ta k e p la c e at p r e c is e ly th e tim e w h e n in fla tio n
a d e q u a te ly th e c r u c ia l n e e d to r e d u c e in fla tio n ,
ary p r e ssu r e s are c o m in g to r e p r e se n t th e m a jo r
b o th a s an in te g r a te d e le m e n t in th e p r o c e s s o f
th reat to th e s ta b ility o f ou r e c o n o m ic p r o c e s s .
382
Record o f Policy Actions
o f the Federal Open Market Committee
M E E T IN G H E L D O N M A R C H 2 1 , 1978
1.
D o m e s t ic P o lic y D ir e c tiv e
The
in fo r m a tio n
r e v ie w e d
in rea l o u tp u t o f g o o d s
at th is
m e e t in g
su g g ested
th at g r o w th
an d s e r v ic e s in th e first qu arter o f
1978
h a d b e e n a d v e r s e ly a f f e c t e d b y u n u s u a l ly s e v e r e w e a t h e r a n d b y
t h e l e n g t h y s tr ik e in c o a l m i n i n g b u t th a t th e u n d e r l y i n g e c o n o m i c
s it u a t io n h a d c h a n g e d l it t l e .
It n o w a p p e a r e d th a t g r o w t h in th e
c u r r e n t q u a r te r h a d s l o w e d f r o m th e p a c e in th e fo u r th q u a r te r o f
1 9 7 7 , e s t i m a t e d b y th e C o m m e r c e D e p a r t m e n t to h a v e b e e n
at
a n a n n u a l r a te o f 3 . 8 p e r c e n t . S ta ff p r o j e c t i o n s s u g g e s t e d , h o w e v e r ,
th a t t h e s h o r t fa ll in g r o w t h fr o m th e r a te e x p e c t e d at th e t im e o f
th e F e b r u a r y m e e t i n g w o u ld b e a b o u t m a d e u p o v e r th e n e x t q u a r te r
or tw o
a n d th a t o n
th e a v e r a g e o v e r th e f o u r q u a r te r s o f
1978
o u tp u t w o u l d g r o w at a g o o d p a c e .
T h e r is e in a v e r a g e p r i c e s — a s m e a s u r e d b y t h e f i x e d - w e i g h t e d
p r ic e in d e x f o r g r o s s d o m e s t i c b u s i n e s s p r o d u c t — a p p e a r e d to h a v e
s t e p p e d u p in th e first q u a r te r f r o m th e a n n u a l r a te o f 5 . 4 p e r c e n t
e s t i m a t e d f o r th e f o u r th q u a r te r o f 1 9 7 7 , m a i n l y b e c a u s e o f la r g e
in c r e a s e s in p r i c e s o f fa r m p r o d u c t s a n d f o o d s . It w a s e x p e c t e d
th a t o v e r th e r e m a in in g q u a r te r s o f 1 9 7 8 th e r a te o f i n c r e a s e in
p r ic e s w o u ld b e b e l o w th a t o f th e first q u a r te r b u t w o u l d r e m a in
a b o v e th a t o f th e fo u r th q u a r te r o f
1 9 7 7 . It w a s a l s o a n t ic ip a t e d
th a t th e u n e m p lo y m e n t r a te w o u ld m o v e d o w n w a r d g r a d u a lly o v e r
th e y e a r .
In t h e first q u a r te r , a c c o r d in g to s ta ff e s t i m a t e s , e x p a n s io n in
fin a l s a l e s in r e a l te r m s h a d s l o w e d m u c h m o r e th a n g r o w t h in
o u t p u t , a n d th e r a te o f b u s i n e s s in v e n t o r y a c c u m u l a t io n h a d p i c k e d
u p fr o m
t h e s h a r p ly r e d u c e d p a c e in th e fin a l q u a r te r o f
1977.
C o n s u m e r e x p e n d it u r e s fo r g o o d s in r e a l t e r m s — w h i c h h a d g r o w n
at a r a p id p a c e in th e fo u r th q u a r te r — a p p a r e n t ly d e c l i n e d in th e
first q u a r te r , at l e a s t in p a r t b e c a u s e o f th e s e v e r e w e a t h e r . M o r e
o v e r , c o n str u c tio n
a c t iv i t y — p u b lic a s
v e r s e l y a f f e c t e d b y th e w e a t h e r .
w e l l a s p r iv a t e — w a s a d
R ecord o f Policy Actions o f FOM C
T h e s ta ff p r o j e c t i o n s f o r th e r e s t o f 1 9 7 8 s u g g e s t e d th a t c o n s u m e r
s p e n d i n g f o r g o o d s in r e a l te r m s w o u l d r e b o u n d in th e s e c o n d
q u a r te r a n d w o u l d c o n t i n u e t o g r o w th e r e a f te r — p a r t ic u la r ly in th e
f o u r th q u a r te r , f o l l o w i n g t h e r e d u c t io n in p e r s o n a l i n c o m e t a x e s
a s s u m e d to ta k e e f f e c t o n O c t o b e r 1. It w a s a n t ic ip a t e d th a t b u s i n e s s
f ix e d i n v e s t m e n t w o u l d e x p a n d m o d e r a t e l y , o w i n g in p a r t to s t i m u
l a t iv e m o d i f i c a t i o n s o f th e i n v e s t m e n t t a x c r e d it th a t w e r e a s s u m e d
to b e r e t r o a c t iv e to t h e b e g i n n i n g o f th e y e a r , b u t th a t r e s id e n t ia l
c o n s t r u c t i o n w o u l d b e g i n to e d g e d o w n a fte r m id y e a r in r e s p o n s e
to th e l e s s f a v o r a b l e m o r t g a g e m a r k e t c o n d i t i o n s th a t a p p e a r e d to
b e d e v e lo p in g .
In F e b r u a r y th e in d e x o f in d u s t r ia l p r o d u c t io n r o s e 0 . 5 p e r c e n t ,
r e c o v e r in g
m ore
th a n
h a lf o f
th e
d e c lin e
in
Janu ary
th a t w a s
a ttr ib u ta b le in la r g e p a r t to th e s e v e r e w e a t h e r a n d to th e c o a l s t r ik e .
U n f a v o r a b le w e a t h e r in s o m e p a r ts o f th e c o u n t r y c o n t i n u e d to
r e s tr ic t o u t p u t in F e b r u a r y , a n d th e o n g o i n g s tr ik e h e ld c o a l m i n i n g
at a r e d u c e d l e v e l . D w i n d l i n g s u p p li e s o f c o a l in s o m e a r e a s c a u s e d
l im i t a t i o n s o n in d u s t r ia l u s e o f e le c t r i c p o w e r , b u t s e c o n d a r y e f f e c t s
o f th e s tr ik e a p p e a r e d to h a v e b e e n s m a ll.
N o n f a r m p a y r o ll e m p l o y m e n t in c r e a s e d c o n s i d e r a b l y fu r th e r b e
t w e e n m id - J a n u a r y a n d m id - F e b r u a r y . E m p l o y m e n t in th e s e r v i c e p r o d u c in g in d u s t r ie s c o n t i n u e d to g r o w at a b o u t t h e a v e r a g e r a te
o f th e s e c o n d h a lf o f 1 9 7 7 . In m a n u f a c t u r in g t h e g a in in e m p l o y
m e n t w a s s i z a b l e f o r th e th ir d s u c c e s s i v e m o n t h , a n d th e a v e r a g e
w o r k w e e k r e c o v e r e d p a rt o f th e w e a t h e r - i n d u c e d d e c r e a s e o f J a n
u a r y . A s m e a s u r e d b y th e s u r v e y o f h o u s e h o l d s , to ta l e m p l o y m e n t
e d g e d u p in F e b r u a r y w h i l e th e la b o r f o r c e c h a n g e d
l it t l e , a n d
t h e u n e m p lo y m e n t r a te d e c l i n e d 0 . 2 o f a p e r c e n t a g e p o in t to 6 .1
p e r c e n t — 1 .5 p e r c e n t a g e p o i n t s b e l o w a y e a r e a r lie r a n d th e l o w e s t
fig u r e s i n c e la t e 1 9 7 4 .
A c c o r d i n g t o th e C e n s u s B u r e a u ’ s a d v a n c e e s t i m a t e , to ta l r e ta il
s a le s
in
F eb ru ary
had
recovered
o n ly
a
s m a ll
p o r t io n
of
th e
s u b s t a n t ia l d e c l i n e o f th e m o n t h b e f o r e , at l e a s t in p a r t b e c a u s e
o f c o n tin u in g
u n f a v o r a b le
w e a t h e r . U n it
sa le s
of
new
a u to m o
b i l e s — d o m e s t i c a n d f o r e i g n c o m b i n e d — r o s e 5 p e r c e n t , r e tr a c in g
h a lf o f t h e J a n u a r y d r o p , a n d s a l e s r o s e fu r th e r in e a r ly M a r c h .
P r iv a t e h o u s i n g s ta r ts— w h i c h h a d d e c li n e d f r o m a n a n n u a l r a te
o f 2 . 2 0 m i l l i o n u n its in D e c e m b e r to
1 .5 5 m i l l i o n u n its in J a n
u a r y — r e c o v e r e d o n l y to 1 . 5 8 m i l l i o n u n its in F e b r u a r y , a s a d v e r s e
383
384
Federal R eserve Bulletin □ May 1978
w e a t h e r a p p a r e n t ly r e m a in e d
a s ig n if ic a n t i n h ib it i n g f a c to r .
R e
g i o n a l l y , c h a n g e s f r o m J a n u a r y to F e b r u a r y w e r e q u ite d iv e r s e :
S ta r ts r o s e 4 3 p e r c e n t in th e N o r t h C e n tr a l S t a t e s a n d 5 p e r c e n t
in t h e W e s t ,
w h ile th e y d e c lin e d
1 0 p e r c e n t in th e S o u t h a n d
3 9 p e r c e n t in th e N o r t h e a s t .
T h e la t e s t D e p a r t m e n t o f C o m m e r c e s u r v e y o f b u s i n e s s s p e n d i n g
p l a n s , ta k e n in la t e J a n u a r y a n d F e b r u a r y , s u g g e s t e d th a t s p e n d i n g
f o r p la n t a n d e q u i p m e n t w o u ld e x p a n d
w h e r e a s t h e s u r v e y ta k e n
s u g g e s t e d a n in c r e a s e o f
1 0 .9
p e r c e n t in
1978,
in la t e N o v e m b e r a n d D e c e m b e r h a d
1 0 .1
p e r c e n t . H o w e v e r , th e in c r e m e n t
o f 0 . 8 o f a p e r c e n t a g e p o in t r e f le c t e d a d o w n w a r d r e v i s i o n in th e
e s t i m a t e d l e v e l o f s p e n d i n g fo r 1 9 7 7 . T h e e x p a n s i o n in 1 9 7 7 n o w
w a s in d ic a t e d
to
have
been
1 2 .7
per c e n t,
com pared
w i t h th e
p r e v io u s e s t i m a t e o f 1 3 .7 p e r c e n t .
T h e i n d e x o f a v e r a g e h o u r ly e a r n in g s fo r p r iv a t e n o n f a r m p r o
d u c t i o n w o r k e r s w a s u n c h a n g e d in F e b r u a r y , a fte r h a v i n g in c r e a s e d
s h a r p ly
in
Jan u ary
w h en
h ig h e r
m in im u m
w age
r a te s b e c a m e
e f f e c t i v e . O v e r th e 2 - m o n t h p e r io d th e i n d e x r o s e at a n a n n u a l
r a te o f 7 . 6 p e r c e n t , a b o u t t h e s a m e a s th e a v e r a g e r a te o f in c r e a s e
d u r in g 1 9 7 7 .
T h e w h o l e s a l e p r ic e in d e x f o r a ll c o m m o d i t i e s r o s e 1 .1 p e r c e n t
in F e b r u a r y , c o m p a r e d w it h 0 . 9 p e r c e n t in J a n u a r y a n d a n a v e r a g e
r is e o f 0 . 6 p e r c e n t in t h e p r e c e d i n g 3 m o n t h s . In F e b r u a r y th e
i n c r e a s e in th e in d e x fo r p r ic e s o f fa r m
p r o d u cts and p r o c e s s e d
f o o d s w a s m o r e th a n t w i c e a s la r g e a s th e a v e r a g e fo r th e p r e c e d i n g
4 m o n t h s . A v e r a g e p r ic e s o f in d u s tr ia l c o m m o d i t i e s c o n t i n u e d to
r is e at a s o m e w h a t f a s te r p a c e th a n in th e la tte r p a rt o f 1 9 7 7 .
In f o r e i g n
exch ange
m a r k e ts th e t r a d e - w e i g h t e d
v a l u e o f th e
d o lla r a g a in s t m a jo r f o r e i g n c u r r e n c ie s r o s e s h a r p ly o n M a r c h 9
and
1 0 in a n t ic ip a t io n o f t h e c o n c l u s i o n
th e g o v e r n m e n t s o f th e U n it e d
sta te m e n t o n M a rch
13,
S ta te s
o f d is c u s s io n s b e tw e e n
and G erm a n y .
In a jo in t
1 9 7 8 , U . S . a n d G e r m a n a u t h o r it ie s a n
n o u n c e d th a t c o n t i n u e d f o r c e f u l a c t io n w o u l d b e ta k e n to c o u n t e r
d is o r d e r ly c o n d i t i o n s in e x c h a n g e m a r k e ts a n d th a t c l o s e c o o p e r a
t io n to th a t e n d w o u ld b e m a in t a in e d . I n c lu d e d in th e c o o p e r a t i v e
e ffo r t w e r e a n in c r e a s e o f $ 2 b i l l i o n in th e S y s t e m ’s s w a p a r r a n g e
m e n t w it h th e G e r m a n F e d e r a l B a n k , a n a r r a n g e m e n t fo r th e U . S .
T r e a s u r y to s e l l S D R 6 0 0
m i ll i o n
( a p p r o x i m a t e ly
$ 7 4 0 m i ll i o n )
to p u r c h a s e G e r m a n m a r k s , a n d a w i l l i n g n e s s o f th e U n it e d S t a te s
R ecord o f Policy Actions o f FOM C
to d r a w o n its r e s e r v e p o s i t i o n in th e I M F ( a u t o m a t i c a l l y a v a i la b le
in a m o u n t s u p to a p p r o x i m a t e ly $ 5 b i l l i o n ) i f a n d a s n e c e s s a r y
to a c q u ir e a d d itio n a l f o r e i g n e x c h a n g e . T h e a u t h o r it ie s a l s o a n
n o u n c e d th a t d e v e lo p m e n t s d u r in g th e first q u a r te r o f 1 9 7 8 w o u ld
b e p a r t ic u la r ly im p o r ta n t in d e t e r m in in g th e c o u r s e o f e c o n o m i c
p o l i c i e s in G e r m a n y d ir e c t e d t o w a r d th e o b j e c t i v e o f n o n in f la t io n a r y g r o w t h a n d th a t in th e U n it e d S t a t e s h ig h p r io r it y w o u ld b e
g i v e n to s w i f t a n d r e s o lu t e a c t io n to c o n s e r v e e n e r g y a n d to d e v e l o p
new
so u r c e s. N e v e r th e le s s ,
m a r k e t p a r t ic ip a n ts
a p p a r e n tly w e r e
d i s a p p o i n t e d b y t h e a n n o u n c e m e n t s , a n d th e v a l u e o f th e d o lla r
r e c e d e d to a b o u t its l e v e l in th e la s t f e w d a y s o f F e b r u a r y .
T h e U . S . f o r e i g n tr a d e d e f ic it r e m a in e d v e r y la r g e in J a n u a r y .
I n te r p r e ta tio n o f t h e d a ta fo r r e c e n t m o n t h s h a d b e e n c o m p l ic a t e d
b y th e 2 - m o n t h d o c k s tr ik e th a t h a d e n d e d o n N o v e m b e r 2 9 a n d
by
changes
in
th e
m e th o d
fo r
c o m p ilin g
th e
sta tis tic s ,
b u t it
a p p e a r e d th a t im p o r t s h a d c o n t i n u e d to r is e a l o n g w i t h e x p a n s io n
in e c o n o m i c a c t iv i t y in th e U n it e d S t a t e s , w h i l e e x p o r t s h a d s h o w n
n o u p w ard m o m en tu m .
A t U . S . c o m m e r c i a l b a n k s g r o w t h in to ta l c r e d it d u r in g F e b r u a r y
w a s c lo s e
th e
to t h e s i z a b l e r a te in J a n u a r y a n d a b o u t in l in e w it h
average
fo r
1977.
s e c u r it i e s e x p a n d e d
In
F eb ru ary ban k
s u b s t a n t ia lly
h o l d in g s
fo llo w in g
o f T reasu ry
a s e r ie s
o f m o n t h ly
d e c l i n e s . H o w e v e r , g r o w t h o f to ta l lo a n s s l o w e d , r e f le c t in g a sh a r p
c o n t r a c t io n in l o a n s to f in a n c e h o l d in g s o f s e c u r it i e s . G r o w t h in
r e a l e s t a t e a n d c o n s u m e r lo a n s a p p a r e n tly s l o w e d
a l it t l e , w h i l e
e x p a n s io n in b u s i n e s s lo a n s r e m a in e d at a b o u t th e a v e r a g e p a c e
in 1 9 7 7 . L a r g e b a n k s s i g n i f i c a n t ly e x p a n d e d th e ir l e n d i n g to m a n u
f a c tu r in g c o m p a n i e s a n d to w h o l e s a l e a n d r e ta il tr a d e c o n c e r n s ,
b u t th e ir l e n d i n g t o p u b l i c u t i l it i e s d e c li n e d a s t h e u t i l it i e s d r e w
d o w n th e ir i n v e n t o r ie s o f c o a l .
F o r n o n f in a n c ia l b u s i n e s s e s
th e
g e n e r a l p a tte r n
b o r r o w i n g in F e b r u a r y w a s lit t le c h a n g e d f r o m
o f s h o r t -te r m
th a t in J a n u a r y .
C o n t in u e d s t r o n g e x p a n s io n in b o r r o w in g s f r o m b a n k s w a s o f f s e t
o n l y in p a r t b y a fu r th e r n e t r u n -o ff o f o u t s t a n d in g c o m m e r c i a l
pap er.
U t ilit ie s
a c c o u n te d
fo r
m uch
of
th e
fu r th e r
d e c lin e
in
o u t s t a n d in g c o m m e r c i a l p a p e r is s u e d b y n o n f in a n c ia l b u s i n e s s e s .
A t th is m e e t i n g r e v i s e d m e a s u r e s o f th e m o n e t a r y a g g r e g a t e s
in c o r p o r a t in g th e e f f e c t s o f n e w b e n c h m a r k d a ta fo r d e p o s it s at
n o n m e m b e r b a n k s a n d r e v i s e d s e a s o n a l f a c to r s w e r e a v a i la b le to
385
386
Federal R eserve Bulletin □ May 1978
th e C o m m i t t e e . T h e s e r e v i s e d d a ta , s c h e d u le d f o r p u b l i c a t i o n o n
M a r c h 2 3 , in d ic a t e d th a t in F e b r u a r y , M - l h a d c o n t r a c t e d at a n
a n n u a l r a te o f a b o u t 1 p e r c e n t . O n th e b a s is o f t h e r e v i s e d s e r ie s ,
M - l h a d g r o w n at a n a n n u a l r a te o f a b o u t 4 Vi p e r c e n t d u r in g
th e first 2 m o n t h s o f
1 9 7 8 a n d a b o u t 1 3A p e r c e n t d u r in g
1977.
A f t e r r e v i s i o n s M - 2 h a d g r o w n at r a te s o f a b o u t 4 Vi p e r c e n t in
F e b r u a r y , 6 3A p e r c e n t o v e r t h e J a n u a r y - F e b r u a r y p e r io d , a n d 9 Vi
p e r c e n t d u r in g 1 9 7 7 .
I n flo w s
in c lu d e d
to
in
c o m m e r c ia l
M -2
w ere
banks
about
of
th e
in te r e s t-b e a r in g
m a in ta in e d
in
F eb ru ary,
d e p o s it s
but
th e y
c o n s i s t e d a lm o s t e n t ir e ly o f la r g e - d e n o m i n a t i o n t im e d e p o s i t s (in
a m o u n ts o f $ 1 0 0 ,0 0 0 or m o r e ) e x e m p t fr o m R e g u la tio n Q c e ilin g s
o n in t e r e s t r a te s . I n f lo w s o f t im e a n d s a v i n g s d e p o s it s s u b j e c t to
s u c h c e i l i n g s s l o w e d to a l o w r a te , a s y i e l d s o n m a r k e t in s t r u m e n t s
o f c o m p a r a b le m a t u r it ie s r e m a in e d a b o v e th e c e i l i n g r a te s t h r o u g h
o u t th e m o n t h . T o fin a n c e c r e d it e x p a n s io n in th e f a c e o f th e s l o w i n g
in o v e r - a l l i n f lo w s o f d e p o s it s in c lu d e d in M - 2 , la r g e b a n k s is s u e d
a s u b s t a n t ia l v o l u m e o f n e g o t i a b l e C D ’s a n d r a is e d a s i z a b l e a m o u n t
o f f u n d s f r o m n o n d e p o s it s o u r c e s .
D e p o s i t g r o w t h at n o n b a n k th r ift i n s t it u t io n s r e m a in e d s l o w in
F e b r u a r y . L ik e th e s a v i n g s a n d s m a lle r t im e a c c o u n t s at c o m m e r c i a l
b a n k s , d e p o s it s at th e th r ift i n s t it u t io n s c o n t i n u e d to b e a d v e r s e ly
a f f e c t e d b y c o m p e t i t i o n f r o m m a r k e t s e c u r it i e s . O n l y th e l o n g e s t te r m
d e p o s its
at th e
th r ift in s t it u t io n s
p r o v id e d
e ffe c tiv e y ie ld s
a b o v e t h o s e a v a i la b le o n c o m p e t i t i v e m a r k e t s e c u r it i e s .
A t its F e b r u a r y m e e t i n g th e C o m m i t t e e h a d d e c id e d th a t o p e r a
t i o n s in t h e p e r io d i m m e d ia t e ly a h e a d s h o u ld b e d ir e c t e d t o w a r d
m a i n t a i n i n g a b o u t th e p r e v a il i n g m o n e y m a r k e t c o n d i t i o n s , p r o
v i d e d th a t t h e
m o n e ta ry
a g g r e g a te s ap p ea red
to b e
g r o w i n g at
a p p r o x i m a t e ly th e r a te s th e n e x p e c t e d . S p e c i f i c a l l y , t h e C o m m i t t e e
had
s o u g h t to
m a in t a in
a r o u n d 6 3A p e r c e n t , s o
th e
lo n g
w e e k ly -a v e r a g e
as M -l
and
g r o w i n g o v e r th e F e b r u a r y - M a r c h p e r io d
F ed eral
M -2
fu n d s
rate
a p p e a r e d to b e
at a n n u a l r a te s w it h in
r a n g e s o f 1 to 6 a n d 4 Vi to 8 Vi p e r c e n t , r e s p e c t i v e l y . T h e m e m b e r s
a l s o a g r e e d th a t if g r o w t h
in th e a g g r e g a t e s a p p e a r e d to b e a p
p r o a c h in g o r m o v i n g b e y o n d t h e lim i t s o f th e ir s p e c i f ie d r a n g e s ,
th e o p e r a t io n a l o b j e c t i v e fo r th e w e e k l y - a v e r a g e F e d e r a l f u n d s rate
s h o u l d b e v a r ie d in an o r d e r ly f a s h io n
w it h in a r a n g e o f 6 V2 to
7 p e r c e n t . It w a s u n d e r s t o o d th a t in a s s e s s i n g
th e b e h a v io r o f
R ecord o f Policy Actions o f FOM C
th e a g g r e g a t e s , th e M a n a g e r o f th e S y s t e m O p e n M a r k e t A c c o u n t
s h o u ld g i v e a p p r o x i m a t e ly e q u a l w e i g h t to th e b e h a v i o r o f M - l
and M -2 .
A s th e i n t e r - m e e t i n g p e r io d p r o g r e s s e d , it b e c a m e e v id e n t th a t
in F e b r u a r y M - l h a d c o n t r a c t e d s o m e w h a t a n d M - 2 h a d in c r e a s e d
r e l a t iv e l y lit t l e .
S t a f f p r o j e c t i o n s fo r th e F e b r u a r y - M a r c h p e r io d
s u g g e s t e d th a t M - l w o u ld g r o w at a r a te b e l o w
th e l o w e r l im i t
o f th e r a n g e s p e c i f ie d b y th e C o m m i t t e e a n d th a t M - 2 w o u ld g r o w
at a r a te c l o s e to its l o w e r l im i t . It a l s o a p p e a r e d , h o w e v e r , th a t
th e w e a k n e s s in th e a g g r e g a t e s m ig h t r e fle c t th e p r o l o n g a t i o n o f
th e c o a l s t r ik e a n d th e s e v e r e w in t e r w e a t h e r a n d th u s w o u ld p r o v e
to b e te m p o r a r y . A g a i n s t th is b a c k g r o u n d , a n d in v i e w o f r e c e n t
d e v e l o p m e n t s in f o r e i g n e x c h a n g e m a r k e t s , th e C o m m i t t e e v o t e d
o n M a r c h 1 0 to in s tr u c t th e M a n a g e r to c o n t i n u e a i m in g at a F e d e r a l
f u n d s r a te o f 6 % p e r c e n t fo r t h e t im e b e i n g . F o r th e f u l l in t e r
m e e t i n g p e r io d , th e f u n d s r a te a v e r a g e d 6 3A p e r c e n t .
M a r k e t in t e r e s t r a te s in g e n e r a l c h a n g e d lit t le o v e r t h e in t e r
m e e t i n g p e r io d , r e f le c t in g th e s t a b ilit y in th e F e d e r a l f u n d s r a te
a n d , a p p a r e n t ly , m o r e o r l e s s o f a b a l a n c e a m o n g d e v e lo p m e n t s
a f f e c t i n g th e p u b l i c ’s e x p e c t a t i o n s c o n c e r n i n g m o n e t a r y p o l i c y —
n a m e l y , s o m e s l o w i n g o f th e e c o n o m i c e x p a n s io n a n d o f g r o w t h
in th e m o n e t a r y a g g r e g a t e s o n o n e s i d e , a n d s o m e p i c k - u p in th e
r a te o f i n c r e a s e in p r ic e s a n d c o n t i n u i n g u n c e r t a in t ie s in f o r e i g n
exch ange
m a r k e ts
on
th e
o th e r .
H ow ever,
T reasu ry
b ill
r a te s
d e c l i n e d s o m e w h a t , in la r g e p a r t b e c a u s e o f d e m a n d s fo r b i l l s f r o m
fo r e ig n c en tra l b a n k s.
B o r r o w in g
by
th e
U .S .
T reasu ry
r e m a in e d
r e l a t iv e l y
str o n g
d u r in g th e in t e r - m e e t i n g p e r io d . In a d d itio n to r e g u la r d e b t r o l l
overs,
$ 3 .3
b illio n
of
s e c u r it i e s
w ere
a u c tio n e d
to
r a is e
new
m o n e y — $ 3 . 0 b i l l i o n o f s h o r t -te r m c a s h - m a n a g e m e n t b i l l s a n d $ 3 0 0
m i l l i o n o f b i l l s a d d e d to th e r e g u la r w e e k l y a n d m o n t h ly a u c t i o n s .
I n c o m i n g d a ta o n T r e a s u r y r e c e i p t s a n d e x p e n d i t u r e s a n d o n th e
c a s h b a l a n c e i m p l i e d , h o w e v e r , th a t F e d e r a l f in a n c in g t h r o u g h th e
first q u a r te r w o u ld b e s ig n i f i c a n t ly s m a lle r th a n h a d b e e n s u g g e s t e d
in la t e J a n u a r y . B o r r o w in g b y F e d e r a ll y s p o n s o r e d c r e d it a g e n c i e s
r o s e to $ 1 . 6 b i l l i o n in F e b r u a r y f r o m th e a lr e a d y e x p a n d e d v o l u m e
o f $ 1 . 0 b i l l i o n in J a n u a r y , in la r g e p a rt b e c a u s e o f t h e m id q u a r te r
f in a n c in g o f th e F e d e r a l H o m e L o a n B a n k S y s t e m .
M o r t g a g e l e n d i n g b y p r iv a t e in s t it u t io n s a p p a r e n t ly c o n t i n u e d
387
388
Federal R eserve Bulletin □ May 1978
to s l a c k e n
in
F eb ru a ry fr o m
th e r e c o r d
pace of
la te
1977.
At
c o m m e r c i a l b a n k s th e in c r e a s e in m o r t g a g e lo a n s w a s t h e s m a l l e s t
in a b o u t a y e a r . In J a n u a r y , th e la t e s t m o n t h f o r w h i c h d a ta w e r e
a v a i la b le , m o r t g a g e a c q u i s i t i o n s b y 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
s lo w e d
s i g n i f i c a n t ly .
A ls o ,
m o r tg a g e l e n d i n g
c o m m itm e n ts o u t
s t a n d in g at t h e s e a s s o c i a t i o n s d e c li n e d f o r th e first t im e in 3 y e a r s .
In th e C o m m i t t e e ’s d i s c u s s i o n o f th e e c o n o m i c
s it u a t io n
and
p r o s p e c t s , th e m e m b e r s a g r e e d — a s t h e y h a d at o th e r r e c e n t m e e t
i n g s — th a t th e
e x p a n s io n
in
a c t iv i t y w a s
lik e ly
to b e s u s t a in e d
th r o u g h o u t 1 9 7 8 . T h e r a n g e o f v i e w s w it h r e s p e c t to th e a v e r a g e
r a te o f g r o w t h in r e a l G N P o v e r th e fo u r q u a r te r s o f th e y e a r w a s
n o t w i d e . H a lf o f th e m e m b e r s p r e s e n t b e l i e v e d th a t r e a l o u tp u t
w o u ld g r o w
at a b o u t th e r a te p r o j e c t e d b y th e sta ff; o f th e r e
m a in d e r , s o m e th o u g h t th a t o u t p u t w o u ld g r o w s o m e w h a t l e s s th a n
p r o j e c t e d , a n d s o m e t h o u g h t th a t it w o u ld g r o w s o m e w h a t m o r e .
O n e o f th e m e m b e r s w h o t h o u g h t th a t g r o w t h in r e a l G N P w o u ld
f a ll s o m e w h a t sh o r t o f th e r a te p r o j e c t e d b y th e s ta ff b e l i e v e d th a t
th e s h o r t f a ll w o u ld b e c o n c e n t r a t e d in th e s e c o n d h a lf o f th e y e a r .
In
h is
v ie w ,
th e
se c o n d -q u a r ter
reb ou n d
in
g r o w th
fr o m
th e
w e a t h e r - r e ta r d e d p a c e in th e first q u a r te r m ig h t b e g r e a te r th a n
p r o je cte d b y
th e
sta ff,
and
th e
m a g n it u d e
of
th a t r e b o u n d — in
c o n j u n c t i o n w it h s o m e a c c e le r a t io n in th e r a te o f in fla t io n — m ig h t
g e n e r a t e f o r c e s th a t w o u ld
a d v e r s e ly
a f f e c t c o n s t r u c t io n a c t iv i t y
a n d c o n s u m e r s p e n d i n g in th e s e c o n d h a lf .
A tte n tio n
w a s d r a w n to th e c o n s i d e r a b l e i m p r o v e m e n t in th e
e m p l o y m e n t s it u a t io n in r e c e n t m o n t h s .
p a y r o ll e m p l o y m e n t
over
th e
p ast
6
T h e p a c e o f g r o w t h in
m o n th s
w as
regarded
as
in d ic a t iv e o f n e a r -te r m s tr e n g th in th e e x p a n s io n o f o u t p u t. O n e
m e m b e r r e m a r k e d th a t th e u n e m p lo y m e n t r a te h a d c o m e c l o s e to
th e z o n e th a t h e w o u ld c h a r a c t e r iz e a s r e f le c t in g f u ll e m p l o y m e n t ,
s u g g e s t i n g th a t th e r e w a s l e s s tim e th a n h e h a d a n t ic ip a t e d e a r lie r
fo r
g r o w th
in
o u tp u t
to
d im in ish
to w a r d
s u s t a in e d fo r t h e lo n g e r te r m . H o w e v e r ,
th a t th e s u b s t a n t ia l d e c l i n e
a
r a te th a t c o u l d
be
a n o th er m e m b e r n o te d
in th e u n e m p lo y m e n t
r a te in r e c e n t
m o n t h s — f r o m 6 . 7 p e r c e n t in N o v e m b e r to 6 . 1 p e r c e n t in F e b r u
a r y — r e f le c t e d in p art a sh a r p d e c e l e r a t i o n in g r o w t h o f th e c iv i l ia n
la b o r f o r c e .
I f , a s h e s u s p e c t e d , th a t d e c e l e r a t i o n p r o v e d
a n a b e r r a tio n in th e s t a t i s t i c s , th e d e c l i n e
to b e
in th e u n e m p lo y m e n t
r a te m ig h t w e l l b e r e v e r s e d to s o m e d e g r e e in c o m i n g m o n t h s .
R ecord o f Policy Actions o f FOMC
T h e C o m m i t t e e m e m b e r s a g r e e d th a t th e r a te o f p r ic e a d v a n c e
w a s l i k e l y to r e m a in r e l a t iv e l y r a p id in 1 9 7 8 , a n d t h e y e x p r e s s e d
a great d ea l o f co n cern
a b o u t th is p r o s p e c t . T h e c o m m e n t w a s
m a d e th a t t h e p a c e o f in c r e a s e in p r ic e s a p p e a r e d t o b e a c c e le r a t in g
in t h is c o u n t r y w h i l e d e c e l e r a t i n g in E u r o p e a n c o u n t r i e s . S e v e r a l
m em b ers
ob served
su g g ested
th a t t h e
th a t
in fla tio n
r e c e s s io n .
F o r th a t r e a s o n ,
s h o u ld b e
g iv e n
g r e a te r
to
th e
th e
le d
to
in f la t io n ,
it w a s
r e c e s s io n ,
and
th e
th e
w o rse
su g g ested ,
c o u r a g in g c o n t i n u e d e c o n o m i c
e ffe c tiv e p ro g ra m
to
e x p a n s io n .
r e d u c e th e r a te o f
w as
s p e c i a l e m p h a s is
C o m m i t t e e ’s l o n g - s t a n d i n g
h e l p i n g to r e s is t in fla tio n a r y p r e s s u r e s w h i l e
it
e n s u in g
o b je c tiv e o f
s im u lta n e o u s ly e n
It w a s n o t e d
in f la tio n h a d
th a t a n
to e x t e n d
b e y o n d m o n e ta ry p o lic y .
A t its m e e t i n g in F e b r u a r y th e C o m m i t t e e h a d a g r e e d th a t fr o m
th e f o u r t h q u a r te r o f 1 9 7 7 to th e fo u r th q u a r te r o f 1 9 7 8 a v e r a g e
r a te s o f g r o w t h in th e m o n e t a r y a g g r e g a t e s w i t h i n t h e f o l l o w i n g
r a n g e s a p p e a r e d to b e c o n s i s t e n t w it h b r o a d e c o n o m i c a im s : M - l ,
4 to 6 V2 p e r c e n t ; M - 2 , 6 V2 to 9 p e r c e n t ; a n d M - 3 , IV 2 to
10
p e r c e n t . T h e a s s o c i a t e d r a n g e f o r th e r a te o f g r o w t h in c o m m e r c i a l
b a n k c r e d it w a s 7 to
1 0 p e r c e n t . It h a d a l s o b e e n
a g r e e d th a t
th e lo n g e r - r u n r a n g e s , a s w e l l a s th e p a r tic u la r a g g r e g a t e s f o r w h ic h
s u c h r a n g e s w e r e s p e c i f ie d , w o u l d b e s u b j e c t to r e v i e w a n d m o d i f i
c a t io n at s u b s e q u e n t m e e t i n g s .
In th e C o m m i t t e e ’s d i s c u s s i o n o f p o l i c y f o r th e p e r io d i m m e d i
a t e ly a h e a d , it w a s s u g g e s t e d
th a t a n e a s i n g o f
m oney
m arket
c o n d i t i o n s w o u ld b e in a p p r o p r ia t e in lig h t o f th e o u t l o o k fo r p r i c e s ,
th e r e c e n t b e h a v i o r o f th e d o lla r in f o r e i g n e x c h a n g e m a r k e ts , a n d
t h e l i k e l i h o o d th a t th e d e m a n d f o r m o n e y w o u ld s t r e n g t h e n s u b
s t a n t ia lly a g a in a s g r o w t h o f n o m in a l G N P p i c k e d u p . It w a s a l s o
s u g g e s t e d th a t a f ir m in g o f m o n e y m a r k e t c o n d i t i o n s in th e a b s e n c e
o f a c tu a l e v i d e n c e o f e x c e s s i v e g r o w t h o f th e m o n e t a r y a g g r e g a t e s
w o u ld
be
p r e m a tu r e ,
g iv e n
th e
w eak n ess
of
recen t
e c o n o m ic
s t a t i s t i c s , th e s t ill u n s e t t le d c o a l s t r ik e , a n d u n c e r t a in t y a b o u t th e
s tr e n g th o f th e p r o s p e c t i v e r e b o u n d in e c o n o m i c a c t iv i t y . H o w e v e r ,
a num ber
o f m em b ers
fa v o red
so m e
f ir m in g
of
m o n e y m arket
c o n d i t i o n s d u r in g th e i n t e r - m e e t i n g p e r io d w it h a v i e w to k e e p i n g
u n d e r c o n t r o l th e a n t ic ip a t e d p ic k - u p in m o n e t a r y g r o w t h , u n l e s s
d a ta f o r th e first 2 w e e k s o f th e p e r io d s u g g e s t e d th a t m o n e t a r y
g r o w t h o v e r th e M a r c h - A p r i l p e r io d w a s l i k e l y to b e s i g n i f i c a n t ly
389
390
Federal R eserve Bulletin □ May 1978
w e a k e r th a n e x p e c t e d . T h e r e w a s a l s o s o m e s e n t i m e n t f o r a s l i g h t
e a s in g
if th e
i n c o m i n g d a ta
su g g ested
u n ex p ec te d
w e a k n e s s in
m o n e ta ry g r o w th .
T h e s e d i f f e r e n c e s o f e m p h a s is n o t w it h s t a n d i n g , m e m b e r s o f th e
C o m m i t t e e d id n o t d if fe r g r e a t ly in th e ir p r e f e r e n c e s fo r o p e r a t in g
s p e c i f ic a t io n s fo r th e p e r io d i m m e d ia t e ly
a h e a d , a n d a ll f a v o r e d
a r e tu r n to b a s in g d e c i s i o n s fo r o p e n m a r k e t o p e r a t io n s b e t w e e n
m e e t i n g d a t e s p r im a r ily o n t h e b e h a v io r o f th e m o n e t a r y a g g r e g a t e s .
In its p r e v io u s f iv e d i r e c t iv e s th e C o m m i t t e e h a d c a ll e d f o r g i v i n g
g r e a te r w e i g h t th a n u s u a l to m o n e y m a r k e t c o n d i t i o n s in c o n d u c t i n g
o p e r a t io n s in th e p e r io d u n til th e n e x t m e e t i n g .
F o r t h e a n n u a l r a te o f g r o w t h in M - 1 o v e r th e M a r c h - A p r i l p e r io d
m o s t m e m b e r s f a v o r e d r a n g e s w it h a n u p p e r l im it o f 8 o r 9 p e r
c e n t a n d a l o w e r l im it o f 4 o r AV2 p e r c e n t ; o n e m e m b e r in d ic a t e d
a p r e f e r e n c e fo r a r a n g e o f 2 to 7 p e r c e n t . F o r t h e g r o w t h r a te
in M - 2 o v e r th e 2 m o n t h s , th e m e m b e r s ’ p r e f e r e n c e s f o r th e u p p e r
l im i t r a n g e d f r o m 9 to
1 0 p e r c e n t a n d fo r t h e l o w e r lim i t f r o m
5 to 6 p e r c e n t .
A l l o f th e m e m b e r s f a v o r e d d ir e c t in g o p e n m a r k e t o p e r a t io n s
d u r in g th e c o m i n g i n t e r - m e e t i n g p e r io d i n i t ia l l y t o w a r d t h e o b j e c
t i v e o f m a in t a in in g th e F e d e r a l f u n d s r a te at a b o u t th e p r e v a il i n g
l e v e l o f 6 % p e r c e n t . V i e w s d if f e r e d s o m e w h a t w it h r e s p e c t to
th e d e g r e e o f l e e w a y fo r o p e r a t io n s d u r in g t h e in t e r - m e e t i n g p e r io d
in t h e e v e n t th a t g r o w t h in th e a g g r e g a t e s a p p e a r e d to b e d e v i a t in g
s i g n i f i c a n t ly f r o m
th e m i d p o i n t s
o f th e
s p e c i f ie d
ra n g es.
Som e
m e m b e r s f a v o r e d r e t a in in g t h e p r e s e n t r a n g e o f 6 V2 to 7 p e r c e n t
fo r t h e f u n d s r a te b u t o t h e r s p r e fe r r e d 6 3A to IV 4 p e r c e n t a n d
o n e a d v o c a t e d 6 % to 7 p e r c e n t . S o m e w h o w i s h e d to r e ta in th e
6 V2 t o 7 p e r c e n t r a n g e s u g g e s t e d a n u n d e r s t a n d in g to t h e e f f e c t
th a t o p e r a t io n s w o u ld n o t b e d ir e c t e d t o w a r d a r a te b e l o w 6 3A p e r
cen t b e fo r e
th e C o m m i t t e e
had
had
an
o p p o r t u n it y
fo r
fu r th e r
c o n s u lt a t i o n .
A t t h e c o n c l u s i o n o f th e d i s c u s s i o n th e C o m m i t t e e d e c i d e d th a t
g r o w t h in M - l
a n d M - 2 o v e r th e M a r c h - A p r i l p e r io d at a n n u a l
r a te s w i t h i n r a n g e s
r e s p e c tiv e ly ,
a s s e s s in g
w o u ld
of 4
be
th e b e h a v io r
to 8 p e r c e n t a n d
a p p r o p r ia te .
o f th ese
It
w as
5 xh
to
9 per c en t,
u n d e rsto o d
th a t
in
a g g r e g a t e s th e M a n a g e r s h o u ld
c o n t i n u e to g i v e a p p r o x im a t e ly e q u a l w e i g h t to t h e b e h a v i o r o f
M - l and M -2 .
R ecord o f Policy Actions o f FOMC
It w a s th e C o m m i t t e e ’s j u d g m e n t th a t s u c h g r o w t h r a te s w e r e
l i k e l y to b e a s s o c i a t e d w i t h a w e e k l y - a v e r a g e F e d e r a l f u n d s ra te
o f a b o u t 6 % p e r c e n t . T h e m e m b e r s a g r e e d th a t i f g r o w t h r a te s
o f th e a g g r e g a t e s o v e r th e 2 - m o n t h p e r io d a p p e a r e d to b e d e v i a t in g
s ig n i f i c a n t ly f r o m th e m i d p o i n t s o f th e in d ic a t e d r a n g e s , t h e o p e r a
tio n a l o b j e c t i v e f o r th e w e e k l y - a v e r a g e F e d e r a l f u n d s r a te s h o u ld
b e m o d if ie d in a n o r d e r ly f a s h io n w it h in a r a n g e o f 6 V2 to 7 p e r
c e n t . It w a s a l s o
a g r e e d , h o w e v e r , th a t a r e d u c t io n in th e r a te
b e l o w 6 3A p e r c e n t w o u ld n o t b e s o u g h t u n t il th e C o m m i t t e e h a d
h a d a n o p p o r t u n it y f o r fu r th e r c o n s u lt a t i o n .
A s c u s t o m a r y , it w a s u n d e r s t o o d th a t t h e C h a ir m a n m ig h t c a ll
u p o n th e C o m m i t t e e to c o n s i d e r th e n e e d fo r s u p p le m e n t a r y i n
s tr u c t io n s b e f o r e th e n e x t s c h e d u le d m e e t i n g i f s i g n if ic a n t i n c o n
s is te n c ie s
app eared
to
be
d e v e lo p in g
am ong
th e
C o m m i t t e e ’s
v a r io u s o b j e c t i v e s . T h e m e m b e r s a l s o a g r e e d th a t in t h e c o n d u c t
o f d a y - t o - d a y o p e r a t io n s , a c c o u n t s h o u ld
fin a n c ia l m a r k e t c o n d i t i o n s ,
in c lu d i n g t h e
b e ta k e n o f e m e r g in g
c o n d itio n s
in f o r e i g n
e x c h a n g e m a r k e ts .
T h e f o l l o w i n g d o m e s t i c p o l i c y d i r e c t iv e w a s i s s u e d to th e F e d e r a l
R e se rv e B an k o f N e w Y ork:
The inform ation review ed at this m eeting su ggests that growth
in real output o f good s and services has been adversely affected
in the current quarter by unusually severe w eather and the lengthy
strike in coal m ining but that there has been little change in the
underlying eco n o m ic situation. In February industrial production
recovered m uch o f the d eclin e o f the preceding m onth, and nonfarm
payroll em p loym en t increased considerably further. T he u n em p loy
ment rate d eclined from 6 .3 to 6.1 per cent. R etail sales picked
up som ew hat from the sharply reduced lev el of January. The pace
o f the rise in prices stepped up in February, reflecting large increases
in farm products and processed food s. The index o f average hourly
earnings w as unchanged, after having advanced sharply in January
w hen higher m inim um w ages becam e effective.
The trade-w eighted value o f the dollar against major foreign
currencies rose sharply in anticipation o f the U .S .-G erm a n an
nouncem ents on M arch 13. Subsequently, the dollar declin ed to
about the lev el at the end of February. The U .S . trade statistics
reported for January show ed a continuing large deficit.
M-1 d eclined and M -2 increased relatively little in February,
apparently in part because of the econ om ic effects of the coal strike
391
392
Federal R eserve Bulletin □ May 1978
and the severe w eather. Inflow s to banks of the interest-bearing
deposits included in M -2 w ere about m aintained, but the inflow s
w ere alm ost entirely into large-denom ination tim e deposits exem pt
from ceilin g s on interest rates. Inflows to nonbank thrift institutions
rem ained slo w . M arket interest rates have changed little in recent
w eek s.
In light o f the foregoin g d evelop m en ts, it is the p o licy o f the
Federal Open Market C om m ittee to foster bank reserve and other
financial conditions that w ill encourage continued eco n o m ic exp an
sion and help resist inflationary pressures, w h ile contributing to a
sustainable pattern of international transactions.
At its m eeting on February 2 8 , 1978, the C om m ittee agreed that
grow th o f M - l , M -2, and M -3 within ranges o f 4 to 6 V2 per cent,
6 V2 to 9 per cent, and IV2 to 10 per cent, resp ectively, from the
fourth quarter o f 1977 to the fourth quarter of 1978 appears to be
consistent with these o b jectives. T hese ranges are subject to recon
sideration at any tim e as conditions warrant.
The C om m ittee seek s to encourage near-term rates of grow th in
M -l and M -2 on a path b elieved to be reasonably consistent with
the longer-run ranges for monetary aggregates cited in the preceding
paragraph. S p ecifically, at present, it exp ects the annual grow th rates
over the M arch-A pril period to be within ranges of 4 to 8 per cent
for M -l and 5 V2 to 9 per cent for M -2. In the judgm ent o f the
C om m ittee such growth rates are lik ely to be associated w ith a
w eek ly-average Federal funds rate o f about 6 3A per cent. If, givin g
approxim ately equal w eight to M -l and M -2 , it appears that grow th
rates over the 2-m onth period w ill deviate significantly from the
m idpoints o f the indicated ranges, the operational ob jective for the
Federal funds rate shall be modified in an orderly fashion w ithin
a range o f 6 V2 to 7 per cent. In the conduct o f day-to-day operations,
account shall be taken o f em erging financial market co n d ition s,
including the conditions in foreign exch an ge markets.
If it appears during the period before the next m eeting that the
operating constraints specified above are proving to be significantly
inconsistent, the M anager is prom ptly to notify the Chairman w ho
w ill then d ecide whether the situation calls for supplem entary
instructions from the C om m ittee.
V otes for this action: M essrs. M iller, V olck er,
B aughm an, C o ld w ell, Eastburn, Jackson, Partee,
W allich , W illes, and W inn. V otes against this a c
tion: N on e. A bsent and not voting: M essrs. Burns
and Gardner.
R ecord o f Policy Actions o f FOM C
2.
A u t h o r iz a t io n fo r F o r e ig n C u r r e n c y O p e r a tio n s
P a r a g r a p h I D o f th e C o m m i t t e e ’s a u t h o r iz a t io n f o r f o r e i g n c u r r e n c y
o p e r a t io n s a u t h o r iz e s 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 Y o r k , f o r
th e S y s t e m
O p e n M a r k e t A c c o u n t , to m a in t a in a n o v e r - a l l o p e n
p o s i t i o n in a ll f o r e i g n c u r r e n c ie s n o t to e x c e e d $ 1 . 0 b i l l i o n u n l e s s
a la r g e r p o s i t i o n
is e x p r e s s l y a u t h o r iz e d b y th e C o m m i t t e e . O n
F e b r u a r y 2 8 , 1 9 7 8 , th e C o m m i t t e e h a d a u t h o r iz e d a n o p e n p o s i t i o n
o f $ 2 .0 b illio n .
A t t h is m e e t i n g th e C o m m i t t e e a u t h o r iz e d a n o p e n p o s i t i o n o f
$ 2 . 2 5 b i l l i o n . T h is a c t io n w a s ta k e n in v i e w o f th e s c a l e o f r e c e n t
a n d p o t e n t ia l F e d e r a l R e s e r v e o p e r a t io n s in th e f o r e i g n e x c h a n g e
m a r k e ts u n d e r ta k e n p u r s u a n t to th e C o m m i t t e e ’s f o r e i g n c u r r e n c y
d i r e c t iv e .
V otes for this action: M essrs. M iller, V olck er,
B aughm an, C o ld w ell, Eastburn, Jackson, Partee,
W allich , W ille s, and W inn. V otes against this a c
tion: N o n e. A bsent and not voting: M essrs. Burns
and Gardner.
3.
P r o c e d u r a l I n s tr u c tio n s w it h R e s p e c t to O p e r a tio n s
U n d e r th e F o r e ig n C u r r e n c y D o c u m e n ts
P aragraph
condu ct
IB
of
o f th e p r o c e d u r a l i n s t r u c t io n s w i t h r e s p e c t to th e
o p e r a t io n s
under
th e
C o m m i t t e e ’s f o r e i g n
curren cy
a u t h o r iz a t io n a n d d i r e c t iv e in s t r u c t e d t h e M a n a g e r to c le a r w it h
th e F o r e ig n
C u rren cy
S u b c o m m it t e e
or,
under
c e r ta in
c ir c u m
s t a n c e s , w i t h th e C h a ir m a n o f th e C o m m i t t e e a n y t r a n s a c t io n s th a t
w o u l d r e s u lt in g r o s s t r a n s a c t io n s ( e x c l u d i n g s w a p d r a w i n g s a n d
r e p a y m e n t s ) in a s i n g l e f o r e i g n c u r r e n c y e x c e e d i n g $ 1 0 0 m i l l i o n
o n a n y d a y o r $ 3 0 0 m i l l i o n s i n c e th e m o s t r e c e n t r e g u la r m e e t i n g
o f th e C o m m i t t e e .
A t t h is m e e t i n g th e C o m m i t t e e a m e n d e d p a r a g r a p h I B to r a is e
th e l e v e l s o f g r o s s t r a n s a c t io n s b e y o n d w h ic h c le a r a n c e is r e q u ir e d
to $ 2 0 0 m i l l i o n o n a n y d a y a n d to $ 5 0 0 m i l l i o n s i n c e t h e m o s t
r e c e n t r e g u la r m e e t i n g , a n d to c la r i f y its in t e n t io n th a t t h e m e a s u r e
o f g r o s s t r a n s a c t io n s u s e d fo r t h is p u r p o s e s h o u ld e x c l u d e n o t o n l y
s w a p d r a w i n g s a n d r e p a y m e n ts b u t a l s o p u r c h a s e s a n d s a l e s o f
c u r r e n c ie s in c id e n t a l to s u c h r e p a y m e n t s . T h is a c t io n w a s ta k e n
393
394
Federal R eserve Bulletin □ M ay 1978
t o r e la x
th e
d o lla r
l im i t s
on
g ro ss
t r a n s a c t io n s ,
w h ic h
had
on
o c c a s i o n h a m p e r e d o n g o i n g o p e r a t io n s , a n d to r e m o v e a n a m b i g u i t y
in th e l a n g u a g e .
A s a m e n d e d , p aragrap h IB read as fo llo w s :
1.
The M anager shall clear w ith the S u b com m ittee (or w ith the
C hairm an, if the Chairman b eliev es that consultation w ith the
Subcom m ittee is not feasib le in the tim e available):
sjc
s(s
B . A ny transaction w hich w ould result in gross transactions
(exclu d in g sw ap draw ings and repaym ents, and purchases and sales
o f any currencies incidental to such repaym ents), in a sin g le foreign
currency ex ceed in g $ 2 0 0 m illion on any day or $ 5 0 0 m illion sin ce
the m ost recent regular m eeting of the C om m ittee.
V otes for this action: M essrs. M iller, V olck er,
B aughm an, C o ld w e ll, Eastburn, Jackson, Partee,
W allich , W ille s, and W inn. V otes against this ac
tion: N o n e. A bsent and not voting: M essrs. Burns
and Gardner.
4.
R e v ie w
o f C o n t in u in g A u th o r iz a tio n s
T h i s b e i n g th e first r e g u la r m e e t i n g o f t h 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 f o l l o w i n g th e e l e c t i o n o f n e w m e m b e r s f r o m t h e F e d e r a l
R e s e r v e B a n k s t o s e r v e f o r th e y e a r b e g i n n i n g M a r c h
th e C o m m i t t e e f o l l o w e d
o f its
c o n tin u in g
1,
1978,
its c u s t o m a r y p r a c t ic e o f r e v i e w i n g a ll
a u t h o r iz a t io n s
and
d ir e c tiv e s .
The
C o m m itte e
r e a ffir m e d th e a u t h o r iz a t io n fo r d o m e s t i c o p e n m a r k e t o p e r a t io n s ,
t h e a u t h o r iz a t io n fo r f o r e i g n c u r r e n c y o p e r a t io n s , a n d th e f o r e i g n
curren cy
d i r e c t iv e ,
in
th e
fo r m s
in
w h ic h
th e y
w ere
p r e se n tly
o u t s t a n d in g . T h e C o m m i t t e e a l s o r e a ffir m e d th e p r o c e d u r a l in s t r u c
t i o n s w i t h r e s p e c t to o p e r a t io n s u n d e r th e f o r e i g n c u r r e n c y d o c u
m e n t s n o t a f f e c t e d b y th e a c t io n d e s c r ib e d in th e p r e c e d i n g s e c t i o n .
V otes for these actions: M essrs. M iller, V olck er,
B aughm an, C o ld w ell, Eastburn, Jackson, Partee,
W allich , W ille s, and W inn. V otes against these
actions: N on e. A bsent and not voting: M essrs.
Burns and Gardner.
R ecord o f Policy A ctions o f FOM C
In r e v i e w i n g t h e a u t h o r iz a t io n f o r d o m e s t i c o p e n m a r k e t o p e r a
tio n s , th e
C o m m itte e
to o k
s p e c ia l
n o te
o f paragraph
3 , w h ic h
a u t h o r iz e s t h e R e s e r v e B a n k s to e n g a g e in th e l e n d i n g o f U . S .
G o v e r n m e n t s e c u r it i e s h e ld in t h e S y s t e m O p e n M a r k e t A c c o u n t
u n d e r s u c h in s t r u c t io n s a s th e C o m m i t t e e m i g h t s p e c i f y f r o m t im e
to t i m e . T h a t p a r a g r a p h h a d b e e n a d d e d to t h e a u t h o r iz a t io n o n
O cto b er 7 ,
1 9 6 9 , o n th e b a s is o f a j u d g m e n t b y t h e C o m m i t t e e
th a t in th e e x i s t i n g c ir c u m s t a n c e s s u c h l e n d i n g o f s e c u r it i e s w a s
r e a s o n a b ly
n ecessary
to
th e
e ffe c tiv e
condu ct
of
open
m arket
o p e r a t io n s a n d to th e e f f e c t u a t i o n o f o p e n m a r k e t p o l i c i e s ,
o n t h e u n d e r s t a n d in g th a t th e
a u t h o r iz a t io n w o u l d
p e r io d ic a lly .
At
th is
th e
ju d g m en t o f
th e
M anager
m e e tin g
C o m m itte e
th a t t h e
le n d in g
and
b e r e v ie w e d
concurred
a c t iv i t y
in
in
th e
q u e s t io n
r e m a in e d r e a s o n a b l y n e c e s s a r y a n d th a t, a c c o r d i n g l y , t h e a u t h o r i
z a t io n s h o u l d r e m a in in e f f e c t s u b j e c t to p e r io d ic r e v i e w .
5.
A g r e e m e n t to “ W a r e h o u s e ” C u r r e n c ie s fo r th e E x c h a n g e
S ta b iliz a tio n F u n d (E S F )
A t it s m e e t i n g o f J a n u a r y 1 7 - 1 8 , 1 9 7 7 , th e C o m m i t t e e h a d a g r e e d
to a s u g g e s t i o n b y th e T r e a s u r y th a t th e F e d e r a l R e s e r v e u n d e r ta k e
to “ w a r e h o u s e ”
m ake
sp o t
f o r e i g n c u r r e n c ie s h e ld b y th e E S F — th a t i s , to
p u rch ases
of
fo r e ig n
s im u lta n e o u s ly to m a k e fo r w a r d
c u r r e n c ie s
fr o m
th e
ESF
and
s a l e s o f th e s a m e c u r r e n c ie s to
t h e E S F — i f th a t s h o u ld p r o v e n e c e s s a r y to e n a b l e t h e E S F to d e a l
w it h p o t e n t ia l liq u i d i t y s t r a in s .
S p e c i f i c a l l y , th e C o m m i t t e e h a d
a g r e e d th a t th e F e d e r a l R e s e r v e w o u ld b e p r e p a r e d , if r e q u e s t e d
b y th e T r e a s u r y , to w a r e h o u s e u p to SIVz b i l l i o n o f e l i g i b l e f o r e i g n
c u r r e n c ie s , o f w h i c h h a lf w o u l d b e f o r p e r io d s o f u p to 1 2 m o n t h s
a n d h a lf f o r p e r io d s o f
u p to 6 m o n t h s .
It w a s n o t e d
th a t th e
a g r e e m e n t t o w a r e h o u s e c u r r e n c ie s w o u ld b e s u b j e c t to r e v i e w b y
th e C o m m i t t e e at its o r g a n iz a t io n a l m e e t i n g e a c h M a r c h in c o n n e c
t io n w i t h t h e r e g u la r r e v i e w o f a ll o u t s t a n d in g a u t h o r iz a t io n s . A t
t h is m e e t i n g th e C o m m i t t e e r e a ffir m e d th e a g r e e m e n t .
V otes for this action: M essrs. M iller, V olck er,
B aughm an, Eastburn, Jackson, Partee, W allich ,
W ille s, and W inn. V o te against this action: Mr.
C o ld w ell. A bsent and not voting: M essrs. Burns
and Gardner.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board’s Annual Report, are
released about a month after the meeting and are subsequently published in the
B u l l e t in .
395
396
L a w D ep artm en t
Statutes, regulations, interpretations, and decisions
E Q U A L C R E D IT O P P O R T U N IT Y
T R U T H IN L E N D IN G
The Board o f G overnors has am ended its regu
lations B and Z to revise the B oard’s procedures
for issuing official staff interpretations.
E ffective April 2 1 , 1978, S ection 2 0 2 .1 (d ) is
am ended to read as fo llo w s:
S e c t io n 2 0 2 . 1 — A u t h o r i t y ,
fo rcem ent
P e n a l t ie s
and
Scope,
En
L ia b il it ie s , In
t e r p r e t a t io n s
(d) i s s u a n c e o f s t a f f i n t e r p r e t a t i o n s .
(1) U nofficial staff interpretations w ill be issued
at the staff’s discretion where the protection of
section 70 6 (e) of the A ct is neither requested nor
required, or w here a rapid response is necessary.
(2 )(i) Official staff interpretations w ill be issued
at the discretion o f designated officials. N o such
interpretation w ill be issued approving creditors’
form s or statem ents. A ny request for an official
staff interpretation o f this Part must be in w riting
and addressed to the D irector of the D iv isio n of
C onsum er A ffairs, Board of Governors of the
Federal R eserve S y stem , W ashington, D .C .
2 0 5 5 1 . The request m ust contain a com p lete state
m ent of all relevant facts concerning the credit
transaction or arrangement and must include
cop ies of all pertinent docum ents.
(ii) W ithin 5 bu sin ess days of receipt o f the
request, an acknow ledgm ent w ill be sent to the
person m aking the request. If, in the opinion of
the designated officials, issuance o f an official staff
interpretation is appropriate, it w ill be published
in the Federal Register to b ecom e effectiv e 30
days after the publication date. If a request for
public com m ent is receiv ed , the effectiv e date w ill
be suspended. T he interpretation w ill then be
republished in the Federal Register and the public
given an opportunity to com m ent. A n y official
staff interpretation issued after opportunity for
public com m ent shall b eco m e effectiv e upon pub
lication in the Federal Register.
(3) A ny request for public com m ent on an offi
cial staff interpretation o f this Part must be in
writing and addressed to the Secretary, Board of
G overnors o f the Federal R eserve S ystem , W ash
ington, D .C . 2 0 5 5 1 , and postm arked or received
by the Secretary’s office w ithin 30 days of the
interpretation’s publication in the Federal R egis
ter. The request must contain a statem ent setting
forth the reasons w hy the person m aking the re
quest b eliev es that public com m ent w ould be ap
propriate.
(4) Pursuant to section 7 0 6 (e ) o f the A ct, the
Board has designated the D irector and other offi
cials o f the D iv isio n of C onsum er Affairs as offi
cials “ duly authorized” to issu e, at their discre
tion, official staff interpretations o f this Part.
E ffe c tiv e A p ril 2 1 , 1 9 7 8 , S e ctio n 2 2 6 .1 ( d ) , is
am en d ed to read as fo llo w s :
S e c t io n 2 2 6 .1 — A u t h o r i t y ,
Sco pe, Purpo se,
etc.
(d) i s s u a n c e o f s t a f f i n t e r p r e t a t i o n s .
(1) U nofficial staff interpretations w ill be issued
at the staff’s discretion w here the protection of
section 130(f) o f the A ct is neither requested nor
required, or w here a rapid response is necessary.
(2 )(i) Official staff interpretations w ill be issued
at the discretion o f designated officials. N o such
interpretation w ill be issu ed approving creditors’
or lesso r s’ form s or statem ents. A ny request for
an official staff interpretation of this Part m ust be
in w riting and addressed to the Director o f the
D iv isio n o f C onsum er A ffairs, Board o f G overnors
of the Federal R eserve S y stem , W ashington, D .C .
2 0 5 5 1 . The request must contain a com p lete state
ment of all relevant facts concerning the credit or
lease transaction or arrangement and m ust include
cop ies of all pertinent docum ents.
(ii) W ithin 5 b u sin ess days o f receipt o f the
Law Department
request, an acknow led gem en t w ill be sent to the
person m aking the request. If, in the opinion of
the designated officials, issuance o f an official staff
interpretation is appropriate, it w ill be published
in the Federal Register to b ecom e effectiv e 30
days after the publication date. If a request for
public com m ent is receiv ed , the effectiv e date w ill
be suspended. The interpretation w ill then be
republished in the Federal Register and the public
given an opportunity to com m en t. A n y official
staff interpretation issued after opportunity for
public com m ent shall b ecom e effectiv e upon pub
lication in the Federal Register.
(3) A ny request for public com m ent on an offi
cial staff interpretation of this Part must be in
w riting and addressed to the Secretary, Board of
G overnors of the Federal R eserve S ystem , W ash
ington, D .C . 2 0 5 5 1 , and postm arked or received
by the Secretary’s office w ithin 30 days o f the
interpretation’s publication in the Federal R egis
ter. T he request must contain a statem ent setting
forth the reasons w h y the person m aking the re
quest b eliev es that public com m ent w ould be ap
propriate.
(4) Pursuant to section 130(f) of the A ct, the
Board has designated the D irector and other offi
cials o f the D iv isio n of C onsum er Affairs as offi
cials “ duly authorized” to issu e, at their d iscre
tion, official staff interpretations o f this Part.
M E M B E R S H IP O F
S T A T E B A N K IN G IN S T IT U T IO N S
IN T H E F E D E R A L R E S E R V E S Y S T E M
The Board o f G overnors has am ended its R eg u
lation H to conform its treatment of State m em ber
bank loans secured by im proved real estate or a
m obile hom e located or to be located in a special
flood-hazardous area in a com m unity that d oes not
participate in the N ational F lood Insurance Pro
gram w ith recent statutory changes contained in
the H ousing and C om m unity D evelop m en t A ct of
1977 that rem ove the prohibitions against such
loans and include a n otice requirem ent for loans
made in special flood-hazardous areas.
E ffective April 2 0 , 1978, S ection 2 0 8 .8 (e ) is
am ended by revoking S ection s 2 0 8 .8 (e )(2 ), (5 ),
renum bering S ection 2 0 8 .8 (e )(3 ) as Section
2 0 8 .8 (e )(2 ) and Section 2 0 8 .8 (e )(4 ) as Section
2 0 8 .8 (e )(3 ), am ending the renumbered Section
2 0 8 .8 (e )(3 ) to include the provision of notice to
borrowers of the availability o f Federal disaster
relief assistance, and adding A ppendix A . Section
2 0 8 .8 is am ended to read as fo llo w s:
397
S e c t io n 2 0 8 .8 — B a n k in g P r a c t ic e s
*
*
*
*
*
(e)
LO ANS B Y STATE M EM BER B A N K S IN
SPECIAL FLO O D-H AZA RDO US A R EA S.
(1) Property securing loan must be insured against
flood.
(2) Records of compliance.
(3 )(i) N o tice o f special flood hazards and
availability o f federal disaster relief assistance.
Each State m em ber bank shall, as a condition o f
m aking, increasing, extending or renew ing any
loan secured by im proved real estate or a m ob ile
hom e located or to be located in an area that has
been identified by the Secretary o f H ou sin g and
Urban D ev elo p m en t as an area having special
flood hazards, m ail or deliver as soon as feasib le
but not less than 10 days in advance o f clo sin g
of the transaction (or not later than the b an k ’s
com m itm ent, if any, if the period b etw een c o m
m itm ent and c lo sin g is less than 10 days) a written
notice to the borrower stating: (1(a)) That the
property securing the loan is or w ill be located
in an area so identified, or in lieu o f such notifica
tion a State m em ber bank m ay obtain satisfactory
written assurances from a seller or lessor stating
that such seller or lessor has notified the borrow er,
prior to the execu tion o f any agreem ent for sale
or lea se, that the property securing the loan is or
w ill be located in an area so identified; and (2(b ))
w hether, in the event o f dam age to the property
caused by flooding in a federally-declared disaster,
Federal disaster relief assistance w ill be available
for such property. Each State m em ber bank shall
require the borrow er, prior to c lo sin g , to provide
the bank w ith a written ack n ow led gm en t that the
property securing the loan is or w ill be located
in an area so identified and that the borrower has
received the above-required n otice regarding F ed
eral disaster relief assistance.
(ii) Sample notices: A State member bank
providing written notice containing the language
presented in A ppendix A w ithin the tim e lim its
prescribed in paragraph (a) w ill be considered to
be in com p lian ce w ith the n otice requirem ents of
paragraph (a).
A p p e n d i x A — S a m p l e N o t ic e s
(1)
N o tice to borrower o f special flood-hazards — N o tic e
is
hereby
g iv e n
to
___________________ that the im proved real estate
or m obile hom e described in the attached instru-
398
Federal Reserve Bulletin □ May 1978
m ent is or w ill be located in an area designated
by the Secretary o f the Departm ent of H ousing
and Urban D evelop m en t as an area having special
flo o d h a z a r d s. T h is area is d e lin e a te d on
___________________ ’s F lood Insurance Rate M ap
( “ F IR M ” ) or, if the FIRM is unavailable, on the
com m u n ity’s F lood Hazard B oundary M ap
( “ F H B M ” ). T his area has a 1 per cent chance
of being flooded w ithin any g iven year. The risk
o f ex ceed in g the 1 per cent chance increases with
tim e periods longer than one year. For exam p le,
during the life o f a 30-year m ortgage, a structure
located in a special flood-hazardous area has a 26
per cent chance o f bein g flooded.
(2)
N o tice to borrower about federal disaster
relief assistance— (a) N o tice in participating c o m
m unities. T he im proved real estate or m obile hom e
securing your loan is or w ill be located in a
com m unity that is n ow participating in the N a
tional Flood Insurance Program. In the event such
property is dam aged by flooding in a federallydeclared disaster, Federal disaster relief assistance
m ay be available. H o w ev er, such assistance w ill
be unavailable if your com m unity has been identi
fied as a special flood-hazardous area for one year
or longer and is not participating in the National
F lood Insurance Program at the tim e assistance
w ould be approved. T his assistan ce, usually in the
form of a loan with a favorable interest rate, may
be available for dam ages incurred in ex ce ss o f your
flood insurance.
(b) N otice in non-participating com m unities.
The im proved real estate or m ob ile hom e securing
your loan is or w ill be located in a com m unity
that is not participating in the N ational Flood
Insurance Program. T his m eans that such property
is not elig ib le for Federal flood insurance. In the
event such property is dam aged by flooding in a
federally-declared disaster, Federal disaster relief
assistance w ill be unavailable if your com m unity
has been identified as a special flood-hazardous
area for one year or longer. Such assistance may
be available on ly if at the tim e assistance w ould
be approved your com m unity is participating in
the N ational F lood Insurance Program or has been
identified as a special flood-hazardous area for less
than one year.
RESERVES OF M EM BER BA N K S
IN T E R E S T O N D E P O S IT S
The Board of G overnors o f the Federal R eserve
System has am ended its R egulations D and Q to
exem pt from deposit treatment a m em ber ban k ’s
liability on its prom issory note that ev id en ces an
investm ent o f funds by the U nited States Treasury.
C on seq u en tly, these liab ilities o f m em ber banks
w ill not be subject to the reserve requirem ents and
interest rate lim itations im posed on m em ber bank
deposits.
E ffective July 6 , 1978, S ection 2 0 4 .1 (f) o f
R egulation D and S ection 2 1 7 .1 (f) of R egulation
Q are am ended to read as fo llo w s:
S e c t io n 2 0 4 . 1 — D
*
e f in it io n s
*
if;
^
^
(f ) D E P O S IT S A S IN C L U D IN G C E R T A IN
PROM ISSORY NOTES A N D OTHER O BLIG A
TIO NS. For the purposes o f this Part, the term
“ d ep o sits” also includes a m em ber bank’s liability
on any prom issory n ote, acknow ledgm ent of ad
van ce, due b ill, banker’s accep tan ce, or sim ilar
obligation (written or oral) that is issued or under
taken by a m em ber bank as a m eans o f obtaining
funds to be used in its banking b u sin ess, excep t
any such obligation that:
(1) Is issued to (or undertaken w ith respect to)
and held for the account o f (i) a dom estic banking
office8 o f another bank, or (ii) the U nited States
or an agen cy thereof, or the G overnm ent D e v e l
opm ent Bank for Puerto R ico;
*
*
*
*
S e c t io n 2 1 7 . 1 — D e f i n i t i o n s
*
*
*
*
*
(f )
D E P O S IT S A S IN C L U D IN G C E R T A IN
PROM ISSORY NOTES A N D OTHER O BLIG A
TIONS. For the purposes of this Part, the term
“ d ep o sits” also includes any m em ber bank’s lia
bility on any prom issory note, acknow ledgm ent
of advance, due b ill, or sim ilar obligation (written
or oral) that is issued or undertaken by a m em ber
bank principally as a m eans of obtaining funds
to be used in its banking b u sin ess, excep t any such
ob ligation that:
(1) Is issued to (or undertaken with respect to)
and held for the account of (i) a bank or an
institution the tim e d ep osits o f w hich are exem pt
from § 2 1 7 .7 pursuant to § 2 1 7 .3 (g ), or (ii) the
U nited States or an agen cy thereof, or the G o v
ernment D evelop m en t Bank for Puerto R ico;
Law Department
399
B A N K H O L D IN G C O M P A N Y A N D
B A N K M E R G E R O R D E R S IS S U E D B Y T H E B O A R D O F G O V E R N O R S
O rders U
of
nder
S e c t io n 3
B a n k H o l d in g C o m p a n y A ct
Eicher Bancorporation,
Iow a C ity, Iow a
Order Denying Formation
of a Bank Holding Company
EICHER B A N C O R P O R A T IO N , Iow a C ity,
Iow a, has applied for the B oard ’s approval under
section 3(a)(1) of the Bank H old in g C om pany A ct
(12 U .S .C . § 184 2 (a)(1)) o f form ation o f a bank
holding com pany by acquiring 9 8 .5 per cent or
m ore of the voting shares o f H aw k eye State B ank,
Iow a C ity, Iow a ( “ B a n k ” ).
N otice o f the application, affording opportunity
for interested persons to subm it com m ents and
v ie w s, has been g iven in accordance w ith section
3(b) of the A ct. T he tim e for filing com m ents and
v iew s has expired , and the Board has considered
the application and all com m en ts received in light
of the factors set forth in section 3(c) of the A ct
(12 U .S .C . § 1 84 2 (c)).
A pplicant, a nonoperating corporation w ith no
subsidiaries, w as organized for the purpose o f
b ecom in g a bank holding com pany by acquiring
Bank (deposits o f $ 1 7 .4 m illio n ).1 U pon co n su m
m ation o f the proposed acquisition, A pplicant
w ould control the 223rd largest bank in Iow a,
holding approxim ately 0 .1 3 per cent o f the total
deposits in com m ercial banks in the State. Bank
is the fifth largest of nine banks in the Iow a C ity
banking market2 and controls approxim ately 6 .2
per cent of total deposits in com m ercial banks in
the market. The proposal in v o lv es a restructuring
of B an k ’s ow nership from an individual to a cor
poration ow ned by the sam e individual. In an alyz
ing the com p etitive effects o f this proposal, it is
necessary to consider the fact that A p p lican t’s
principal is also a principal in a corporation that
controls uniBank and Trust, C oralville, Iow a
( “ uniB ank” ), w h ich is three m iles from Bank and
is the fourth largest bank in the Iow a City banking
market. U niB an k, w hich holds deposits o f $ 1 9 .7
m illion , controls approxim ately 7 .0 per cent o f
total market d eposits. C onsum m ation o f the pro1 A ll banking data are as o f D ecem ber 3 0, 1976.
2 The Iow a City banking market is approximated by all
except the north central portion o f Johnson County plus the
town of W est Branch in Cedar County.
posal w ou ld increase the market share controlled
by A p p lican t’s principal to 1 3 .2 per cent.
A s part o f its an alysis o f the com p etitive effects
o f this proposal, the Board has taken into co n sid
eration the com p etitive effects o f the original
transaction by w hich a com m on share ow nership
relationship betw een Bank and uniBank w as e s
tab lish ed .3 In this c a se, the Board has considered
the com p etitive effects of the purchase of B a n k ’s
shares by A p p lica n t’s principal in 1977. A t that
tim e A p p lican t’s principal indirectly controlled
uniBank. The Board finds that the effect o f B a n k ’s
acquisition by A p p lican t’s principal w as to e lim i
nate significant com petition that existed at that
tim e betw een Bank and uniBank. In the B oard ’s
v ie w , the subject proposal in v o lv es the use o f the
h olding com pany form to further an an ticom p eti
tive arrangement. On the basis o f all the facts of
record, including the structure of the Iow a C ity
banking market and the market shares o f the orga
nizations in v o lv ed , the Board con clu d es that ap
proval of this proposal w ould perpetuate an ad
verse com p etitive situation. W hile denial o f this
proposal m ight not im m ediately alter the an ticom
petitive relationship ex istin g betw een these tw o
banking organizations, a denial w ould strengthen
the p ossib ility that Bank and uniBank could again
becom e independent and com p etin g organizations
in the future. On the other hand, approval w ould
so lid ify and strengthen the com m on ow nership of
the tw o banks and w ou ld elim inate or significantly
dim inish the lik elih ood of disaffiliation o f the
banks and deconcentration o f the market.
The Board has indicated on p revious o cca sio n s
that it b e liev es that a holding com pany should
constitute a source o f financial and m anagerial
strength to its subsidiary banks and that the Board
w ill c lo se ly exam in e the condition o f an applicant
in each case w ith this consideration in m in d .4 A s
3 See the B oard’s Order of M ay 11, 1977, denying the
application by M ahaska Investm ent C om pany, O skaloosa,
Iow a, 63 Federal R eserve B u l l e t i n 579 (1 9 7 7 ), and the
B oard’s Order of N ovem ber 18, 1977, denying the application
by C itizens Bancorp, In c., Hartford C ity, Indiana, 63 Federal
R eserve B u l l e t i n 1083 (1977).
4 The Bank H olding C om pany A ct requires that the Board,
in acting on an application to acquire a bank, inquire into the
financial and managerial resources of an applicant. W hile this
proposal involves the transfer o f the ow nership of Bank from
individuals to a corporation ow ned by the same individuals,
(F ootnote continued on follow in g page)
400
Federal Reserve Bulletin □ May 1978
part of the subject proposal, A pplicant w ould
assum e a substantial portion of the debt incurred
by A p plicant’s principal in acquiring his shares
of Bank. A pplicant proposes to service this debt
over a 12-year period through dividends to be
declared by Bank and tax benefits to be derived
from filing consolidated tax returns. In the B oard’s
v iew , A p p lican t’s financial projections over the
debt retirement period appear to be unduly o p ti
m istic and it does not appear that A pplicant w ill
p ossess the financial flexibility necessary to m eet
its annual debt service requirem ents w h ile m ain
taining adequate capital at Bank. The Board is of
the view that it w ould not be in the public interest
to approve the form ation of a bank holding c o m
pany with an initial debt structure that could result
in the w eakening of B an k ’s overall financial co n
dition. Furthermore, the Board con clu d es financial
pressures on the other banking organization with
w hich A p plican t’s principal is associated could
place additional pressures on A pplicant and Bank.
In addition, based on certain p o licies and practices
currently in evid en ce at uniB ank, m anagerial c o n
siderations are view ed as som ew hat less than
satisfactory. A ccord in gly, the Board con clu d es
that the considerations relating to banking factors
w eigh against approval of the application.
A s stated p reviou sly, consum m ation o f this
proposal w ould result in a restructuring of B an k ’s
present ow nership. N o significant changes in
B an k ’s operations or in the services to be offered
to B an k ’s custom ers are contem plated. C o n se
quently, considerations relating to the co n v en ien ce
and needs of the com m unity to be served lend no
w eight toward approval, and, in the B oard’s judg
m ent, do not outw eigh the adverse financial, m an
agerial, and com p etitive considerations in volved
in the proposal.
On the basis of all of the facts of record,
the Board conclu d es that the financial and m ana
gerial considerations in volved in this proposal
present adverse circum stances bearing upon the
financial and m anagerial resources and future
prospects o f both A pplicant and Bank. The Board
also con cludes that the proposal w ould have sig
nificant adverse com p etitive effects. Such adverse
(Footnote 4 continued)
the Act requires that before an organization is permitted to
becom e a bank holding com pany and thus obtain the benefits
associated with the holding com pany structure, it must secure
the B oard’s approval. Section 3(c) of the Act provides that
the Board m ust, in every case, consider, among other things,
the financial and managerial resources of both the applicant
com pany and the bank to be acquired. The B oard’s action in
this case is based on a consideration of such factors.
circum stances are not ou tw eigh ed by any benefits
that w ould result in serving the con v en ien ce and
needs of the com m unity. A ccord in gly, it is the
B oard’s judgm ent that approval o f the application
w ould not be in the public interest and that the
application should be denied.
On the basis of the record, the application is
denied for the reasons sum m arized above.
B y order o f the Board of Governors effective
April 2 5 , 1978.
Voting for this action: Chairman Miller and G over
nors Gardner, W allich, C oldw ell, and Partee. Voting
against this action: Governor Jackson.
(S ign ed ) G r i f f i t h L. G a r w o o d ,
[s e a l ]
Deputy Secretary of the Board.
E llis B anking C orporation,
Bradenton, Florida
Order Denying Acquisition of Banks
E llis B anking Corporation, B radenton, Florida,
a bank holding com pany w ithin the m eaning of
the Bank H olding C om pany A ct, has applied for
the B oard ’s approval under § 3(a)(3) o f the A ct
(12 U .S .C . § 1842(a)(3)) to acquire 51 per cent
or more of the voting shares each o f M adeira
B each B ank, M adeira B each , Florida ( “ M adeira
B an k ” ), and First G ulf B each Bank and Trust
C om pany, St. Petersburg B each , Florida ( “ First
G ulf B an k ” ).
N o tice of the applications, affording opportunity
for interested persons to subm it com m ents and
v ie w s, has been g iven in accordance w ith § 3(b)
o f the A ct. The tim e for filing com m ents and v iew s
has expired, and the Board has considered the
applications and all com m ents received , including
those of the U nited States Departm ent of Justice
and the Florida C om m ission er of B anking, in light
o f the factors set forth in § 3(c) of the A ct (12
U .S .C . § 1842(c)).
A pplicant, the ninth largest banking organi
zation in Florida, controls 26 banks with aggregate
deposits o f approxim ately $ 8 0 5 .6 m illio n , repre
senting 2 .9 per cent of total deposits in com m ercial
banks in F lo rid a .1 A cquisition of M adeira Bank
and First G ulf B ank, w ith deposits o f $ 3 7 .2 m il
lion and $ 5 2 .7 m illio n , resp ectively, w ould in
crease A p p lican t’s share of com m ercial bank d e
posits in Florida by four-tenths of 1 per cent, and
1 U nless otherw ise indicated, banking data are as of August
31. 1977.
Law Department
w ould not have an appreciable effect upon the
concentration o f banking resources in the State.
M adeira Bank is the fourteenth largest o f 28
com m ercial banks in the relevant banking m arket,2
and controls 2 .6 per cent o f deposits in com m ercial
banks in the market. First G ulf Bank is the tenth
largest bank in the market, and controls 3 .6 per
cent of deposits in com m ercial banks in the mar
ket. W hile consum m ation of the proposal w ould
appear to elim inate som e existin g com petition in
asm uch as M adeira Bank and First G ulf Bank
operate in the sam e market, the Board notes that
both banks w ere organized by a group of four
fam ilies w ho have held more than eighty per cent
o f the shares o f both banks since their organi
zation, and the nature of this relationship is such
that little, if any, m eaningful com petition presently
exists betw een M adeira Bank and First G ulf Bank.
V iew ed in light o f this relationship, the effects
of the proposed acquisition on existin g com petition
betw een M adeira Bank and First G ulf Bank are
not significant.
W hile there w ou ld be m inim al effects on co m
petition betw een the tw o B anks, consum m ation of
this proposal w ould elim inate existin g com petition
betw een A pplicant and M adeira and First G ulf
Banks. A pplicant, w ith tw o subsidiary banks in
the relevant banking market, controls deposits of
$ 6 8 .9 m illion , representing 4 .7 per cent o f market
dep osits, and ranks as the eighth largest of e ig h
teen banking organizations in the market. V iew ed
as a single banking organization because o f c o m
mon ow nership, M adeira Bank and First G ulf
Bank together hold aggregate deposits o f $ 8 9 .9
m illion , representing 6 .2 per cent of market d e
p osits, and w ould rank as the sixth largest banking
organization in the relevant banking market. A c
cordingly, the Board regards the elim ination of
existin g com petition betw een A pplicant and M a
deira and First G ulf Banks that w ould result from
consum m ation of the proposal as an adverse factor
in its consideration of the instant applications.
In addition to elim inating existin g com petition
betw een A pplicant and M adeira and First G ulf
B anks, consum m ation of this proposal w ould have
adverse effects upon the concentration of banking
resources in the relevant banking market. The
acquisition of both banks w ould increase A p p li
can t’s share of market deposits from 4 .7 per cent
to 10.9 per cent, thereby increasing A p p lican t’s
rank from the eighth to the fourth largest banking
2 The relevant banking market is approximated by the
southern portion o f Pinellas County.
401
organization in the market. The proposed acq u isi
tions w ould increase the deposits held by the four
largest banking organizations from 5 5 .4 per cent
to 5 8 .4 per cent o f market d ep osits. The Board
v iew s the effects o f the proposal on concentration
of banking resources in the relevant banking mar
ket as an adverse factor in its consideration o f these
applications.
A ccord in gly, the Board finds on the b asis of
the foregoin g and other facts of record that c o m
petitive considerations relating to this application
w eigh sufficiently against approval so that it should
not be approved unless the anticom petitive effects
are ou tw eigh ed by considerations relating to the
con ven ien ce and needs o f the com m unity to be
serv ed .3
The financial and m anagerial resources o f A p
plicant and its subsidiaries are regarded as satis
factory, and their future prospects appear favor
able. The financial and m anagerial resources and
future prospects o f both M adeira Bank and First
G ulf Bank are lik ew ise regarded as satisfactory.
A ccord in gly, considerations relating to banking
factors are consistent w ith approval of the appli
cation.
A pplicant proposes to assist both banks in im
proving their trust serv ices, expanding their len d
ing activities, and offering sp ecialized lending and
investm ent services to their custom ers. H ow ev er,
there is no indication that the needs o f the cu s
tom ers of either M adeira Bank or First G ulf Bank
are not currently being m et, that the proposed
services cannot be obtained elsew h ere in the rele
vant banking market, or that A pplicant could not
offer such services through its present subsidiary
banks in the market. A ccord in gly, the Board finds
that considerations relating to co n v en ien ce and
needs o f the com m unity to be served do not
outw eigh the adverse com p etitive effects that
w ould result from A p p lican t’s acquisition o f M a
deira Bank and First G ulf Bank.
On the basis o f the facts in the record, and in
light of the factors set forth in § 3(c) o f the A ct,
it is the B oard’s judgm ent that approval o f the
3
In its official letter of com m ent concerning the instant
applications, the U nited States Department of Justice found
that the proposed acquisitions w ould have several adverse
com petitive effects on w hich it based its recom m endation that
the Board deny the applications. In particular, it noted that
under recently-enacted Florida law , banks may establish
branches within the county of the bank’s main office, and that
inasmuch as the im m ediate areas served by Madeira and First
Gulf Banks are conducive to de novo entry, the Applicant has
the resources to expand its operations in the market through
branching rather than acquisition.
402
Federal Reserve Bulletin □ May 1978
proposal w ould not be in the public interest. A c
cordin gly, the applications are denied for the rea
sons sum m arized herein.
B y Order o f the Board o f G overnors, effective
April 2 4 , 1978.
Voting for this action: Chairman Miller and G over
nors W allich, Jackson, and Partee. Absent and not
voting: Governors Gardner and C oldw ell.
[s e a l ]
(S ign ed ) G r i f f i t h L. G a r w o o d ,
Deputy Secretary of the B o a rd .
First C ity Bancorporation of T exas, In c.,
H ouston, T exas
Order Approving Acquisition of Bank
First City Bancorporation of T exas, In c ., H ou s
ton, T exas, a bank holding com pany w ithin the
m eaning of the Bank H olding C om pany A ct, has
applied for the B oard’s approval under Section
3(a)(3) of the A ct (12 U .S .C . § 1842(a)(3)) to
acquire 100 per cent o f the voting shares, less
directors’ qualifying shares, o f the su c c e sso r by
merger to L ew isv ille State B ank, L e w isv ille ,
T exas ( “ B ank” ). The bank into w hich Bank is
to be m erged has no significance excep t as a m eans
to facilitate the acquisition o f the voting shares
of Bank. A ccord in gly, the proposed acquisition of
shares of the su ccessor organization is treated
herein as the proposed acquisition o f the shares
of Bank.
N otice of the application, affording opportunity
for interested persons to subm it com m ents and
v iew s, has been g iven in accordance w ith Section
3(b) o f the A ct. The tim e for filing com m ents and
view s has expired, and the application and all
com m ents received have been considered in light
of the factors set forth in S ection 3(c) of the A ct
(12 U .S .C . § 184 2 (c)).
A pplicant, the second largest banking organi
zation in T exas, controls 28 banks with aggregate
deposits of approxim ately $ 4 .2 b illio n , repre
senting 7 .8 per cent o f total com m ercial bank
deposits in T e x a s.1 A cq u isition of Bank ($ 3 0 .0
m illion in deposits) w ould increase A p p lican t’s
share o f Statew ide com m ercial bank deposits by
less than 0.1 per cent and w ould have no appre
ciable effect upon the concentration of banking
resources in the State.
Bank is the 38th largest of 108 banking organi
1 A ll banking data are as o f June 3 0, 1977, and reflect bank
holding com pany form ations and acquisitions approved as of
February 2 8, 1978.
zations in the D allas banking market, w hich is the
relevant banking m arket,2 and controls approxi
m ately 0 .3 per cent o f the total deposits in c o m
mercial banks in the market. A pplicant is the
fourth largest banking organization in the D allas
market, controlling five banking subsidiaries
therein w ith aggregate d ep osits o f approxim ately
$498 m illio n , representing 4 .9 per cent o f market
deposits. A p p lican t’s nearest subsidiary bank is
approxim ately 15 m iles south o f Bank. W hile there
is som e ex istin g com petition b etw een A p p lican t’s
subsidiary banks and B ank, the amount of such
com petition does not appear to be significant.
A ccord in gly, on the basis of the above and other
facts o f record, it is con clu d ed that consum m ation
of the proposed transaction w ould have on ly a
slightly adverse effect on com petition in the D allas
banking market.
The financial and m anagerial resources and fu
ture prospects o f A pplicant, its subsidiaries, and
Bank are regarded as generally satisfactory and
consistent w ith approval. Affiliation w ith A p p li
cant w ould enable Bank to draw upon A p p lican t’s
greater financial resources and expertise and
thereby offer new and im proved services to its
custom ers. In this regard, A pplicant has indicated
that it intends to im prove B an k ’s p hysical facilities
and to offer a variety o f additional banking services
through B ank, including trust services not cur
rently m ade available by L ew isv ille banks, and
that reduced credit insurance rates w ill be m ade
available at Bank for its loan custom ers. C on sid
erations relating to the con v en ien ce and needs o f
the com m unity to be served lend w eight toward
approval of the application and ou tw eigh any
slightly adverse effects on existin g com petition
that m ight result from consum m ation of the pro
posal. A ccord in gly, it has been determ ined that
the proposed acquisition w ould be in the public
interest and that the application should be ap
proved.
On the basis of the record, the application is
approved for the reasons sum m arized above. The
transaction shall not be made (a) before the thir
tieth calendar day fo llo w in g the effectiv e date of
this Order or (b) later than three m onths after the
effective date o f this Order, unless such period
is extended for good cause by the Board or by
the Federal R eserve Bank of D allas pursuant to
delegated authority.
2 The D allas banking market is approximated by the D allas
R M A , w hich includes D allas County and portions of six
adjacent counties.
Law Department
B y order of the Secretary of the Board, acting
pursuant to d elegated authority from the Board of
G overnors, effectiv e April 18, 1978.
(S ign ed ) T h e o d o r e E. A
[s e a l ]
l l is o n
,
Secretary of the Board.
First International B ancshares, In c .,
D allas, T exas
Order Approving Acquisition of Bank
First International B ancshares, In c., D allas,
T exas, a bank holding com pany w ithin the m ean
ing of the Bank H olding C om pany A ct, has ap
plied for the B oard’s approval under § 3(a)(3) of
the Bank H olding C om pany A ct (12 U .S .C .
§ 1843(a)(3)) (the “ A c t” ) to acquire 100 per cent
of the voting shares, less directors’ qualifying
shares, of the successor by merger to First State
Bank & Trust C om pany o f H ouston, H ouston,
T exas ( “ B an k ” ). The bank into w hich Bank is
to be m erged has no significance excep t as a m eans
to facilitate the acquisition o f the voting shares
of Bank. A ccord in gly, the proposed acquisition of
shares o f the successor organization is treated
herein as the proposed acquisition o f the shares
of Bank.
N otice of the application, affording opportunity
for interested persons to subm it com m ents and
v ie w s, has been given in accordance with § 3(b)
of the A ct. The tim e for filing com m ents and v iew s
has expired, and the application and all com m ents
received have been considered in light of the
factors set forth in § 3(c) o f the A ct (12 U .S .C .
§ 1 842(c)).
A pplicant, the third largest banking organization
in T exas, controls 28 banking sub sid iaries1 w ith
aggregate deposits o f approxim ately $ 4 ,1 3 8 b il
lion , representing 7 .7 2 per cent o f total com m er
cial bank deposits in T e x a s.2 A cquisition of Bank
(approxim ately $ 5 8 .7 m illion in deposits) w ould
increase A p p lican t’s share of Statew ide com m er
cial bank deposits by sligh tly over 0.1 per cent
and w ould have no appreciable effect upon the
concentration of banking resources in the State.
Bank is the tw enty-ninth largest o f 123 banking
organizations in the H ouston banking market,
1 The number o f subsidiaries includes the acquisition of City
National Bank of W ichita Falls, W ichita Falls, T exas, on
January 6 , 1978 (64 Federal Reserve B u l l e t i n 116 (1 9 7 8 )),
which has not yet been consum m ated.
2 All banking data are as of June 30, 1977, and reflect bank
holding com pany formations and acquisitions approved as of
February 2 8 , 1978.
403
w hich is the relevant banking m arket,3 and c o n
trols approxim ately 0 .4 5 per cent o f the total
deposits in com m ercial banks in the market. A p
plicant is the fifth largest banking organization in
the H ouston market, controlling six banking sub
sidiaries therein w ith aggregate d ep osits o f ap
p roxim ately $ 5 5 8 .3 m illio n , w hich represents 4 .3
per cent o f market dep osits. A pplicant has tw o
subsidiary banks in the market w ithin approxi
m ately 25 m iles o f Bank and the nearer o f those
is 12.5 m iles w est. W hile there is som e ex istin g
com petition betw een A p p lican t’s subsidiary banks
and B ank, the amount of such com petition d oes
not appear to be significant. A cco rd in g ly , on the
basis o f the above and other facts o f record, it
is concluded that consum m ation o f the proposed
transaction w ou ld have on ly a sligh tly adverse
effect on com petition in the H ouston banking
market.
C onsiderations relating to the financial and
m anagerial resources and future prospects of
B ank, A pplicant, and its subsidiaries are regarded
as generally satisfactory and con sisten t w ith ap
proval, particularly in light o f B an k ’s retention o f
$ 2 0 0 ,0 0 0 of interim capital. A pplicant w ill pro
vide Bank w ith necessary expertise and capability
to d evelop B an k ’s loan adm inistration and in v est
ment m anagem ent techniques. A ffiliation o f Bank
with A pplicant w ill enable Bank to utilize the
specialized lending d ivision s of A p p lican t’s lead
bank in expanding the types o f lending services
currently offered including international services.
A lso , A pplicant has indicated that it intends to
offer reduced credit insurance rates to B an k ’s loan
custom ers through its tw o credit-related insurance
underwriting subsidiaries. C onsiderations relating
to the con v en ien ce and needs o f the com m unity
to be served lend w eigh t toward approval of the
application and ou tw eigh any slightly adverse e f
fects on existin g com petition that m ight result from
consum m ation of the proposal. A cco rd in g ly , it has
been determ ined that the proposed acquisition
w ould be in the public interest and that the appli
cation should be approved.
On the basis of the record, the application is
approved for the reasons sum m arized above. The
transaction shall not be m ade (a) before the thir
tieth calendar day fo llo w in g the effectiv e date of
this Order or (b) later than three m onths after the
effective date of this Order, unless such period
3
The Houston banking market is approxim ated by the
H ouston R M A , w hich includes Harris County and portions of
five adjacent counties.
404
Federal Reserve Bulletin □ May 1978
is extended for good cause by the Board or by
the Federal R eserve Bank of D allas acting pursuant
to delegated authority.
B y order of the Secretary o f the Board, acting
pursuant to delegated authority from the Board of
G overnors, effectiv e April 2 0 , 1978.
The R oyal Trust C om pany, M ontreal, Q u eb ec,
Canada ( “ A pp lican t” ), and its w h olly-ow n ed
direct and indirect subsidiaries, R oyal Trustco
L im ited, O ttaw a, O ntario, Canada ( “ T ru stco” ),
and R oyal Trust Bank C orp ., M iam i, Florida
( “ Bank C o rp .” ), each of w hich is a bank holding
com pany w ithin the m eaning o f the Bank H olding
C om pany A ct, have applied for the B oard’s ap
proval under § 3(a)(3) o f the A ct (12 U .S .C . §
1842(a)(3)) to acquire 51 per cent or m ore of the
voting shares of The A m erican Bank o f Orange
C ounty, O rlando, Florida ( “ B an k ” ).
N otice of the applications, affording opportunity
for interested persons to subm it com m ents and
v iew s, has been g iven in accordance with § 3(b)
of the A ct. The tim e for filing com m ents and view s
has expired and the Board has considered the
applications and all com m ents received in light of
the factors set forth in § 3(c) o f the A ct (12 U .S .C .
§ 1842(c)).
A pplicant, w ith total assets of approxim ately
$ 4 .7 billion (as of Septem ber 3 0 , 1977), is one
of the largest financial institutions in Canada and
operates, through its subsidiaries and other inter
ests, in both Europe and the Caribbean Islands.
In the U nited States, A pplicant controls seven
Florida banks1 and operates one nonbank sub sid i
ary. Through its seven subsidiary banks, A pplicant
controls aggregate deposits of approxim ately
$ 1 9 7 .2 m illion , representing 1.0 per cent of total
deposits held by com m ercial banks in Florida and
ranks as the twenty-third largest com m ercial
banking organization in that S ta te.2 C onsum m ation
of the subject proposal w ould increase A p p lican t’s
share o f Statew ide com m ercial bank deposits by
less than 0.1 per cent and w ould not have a
significant effect upon the concentration of banking
resources in Florida.
Bank ($ 9 .7 m illion in deposits) is the 14th
largest of 21 banking organizations (controlling 37
banks) in the Orlando banking market (the relevant
market) and holds approxim ately 0 .6 per cent of
market d ep o sits.3 A pplicant is not currently repre
sented in the relevant market and its clo sest bank
ing subsidiary to Bank is located approxim ately
75 m iles southw est o f Bank. There d oes not appear
to be any existin g com petition betw een Bank and
any of A p p lican t’s banking and nonbanking sub
sidiaries and, in v iew o f the distances in volved ,
it does not appear lik ely that any significant c o m
petition w ould d evelop in the future. W hile it
appears that A pplicant could enter the Orlando
banking market de novo, in v iew o f B an k ’s size
and its market position the Board regards the
proposed acquisition of Bank as essen tially a fo o t
hold entry by A pplicant into the Orlando market
and such entry by A pplicant should enable Bank
to b ecom e a more effectiv e com petitor in that
market. In addition, approval of this proposal w ill
result in the severance of ow nership and director
interlocks betw een Bank and another bank in the
Orlando banking market. T herefore, on the basis
of the facts of record, the Board con clu d es that
consum m ation o f the proposal w ould not have any
significant adverse effects upon either existin g or
potential com petition in any relevant area.
The financial and m anagerial resources and fu
ture prospects o f A pplicant, its subsidiaries and
Bank are regarded as generally satisfactory, e sp e
cially in light o f recent im provem ents in Bank
C orp.. T herefore, considerations relating to bank
ing factors are consistent w ith approval o f the
applications. A pplicant w ill provide Bank w ith its
expertise in a w id e area of banking services;
accordingly, considerations relating to the co n
ven ien ce and needs o f the com m unity to be served
are consistent w ith approval. It is the B oard’s
judgm ent that the proposed acquisition w ould be
1
Applicant currently controls six of these subsidiary banks
through Bank Corp. w hich was formed in 1976 to hold directly
all o f A pplicant’s banking interests in the United States. By
action of March 3 0, 1978, the Board approved Bank C orp .’s
acquisition of a seventh bank, B aym eadow s Bank, Jackson
v ille , Florida, held directly by Applicant.
2
U nless otherw ise indicated, all bank data are as of D e
cem ber 31, 1977, and reflect bank holding com pany form ations
and acquisitions approved through January 31, 1978.
5
The Orlando banking market is approximated by Orange
County and alm ost all of Sem inole C ounty, except for the m ost
northern section w hich includes the tow ns of O viedo and
Sanford. Market data are as of June 30, 1977.
(S ign ed ) T h e o d o r e E. A
[s e a l ]
l l is o n
,
Secretary of the Board.
The R oyal Trust C om pany,
M ontreal, Q u eb ec, Canada
Order Approving Acquisition of Bank
Law Department
in the public interest and that the applications
should be approved.
On the basis of the record, the applications are
approved for the reasons sum m arized above. The
transaction shall not be m ade (a) before the thir
tieth calendar day fo llo w in g the effectiv e date o f
this Order or (b) later than three m onths after the
effective date o f this Order, unless such period
is extended for good cause by the B oard, or by
the Federal R eserve Bank o f Atlanta pursuant to
delegated authority.
B y order o f the Board o f G overnors, effectiv e
April 5 , 1978.
Voting for this action: Chairman Miller and G over
nors W allich, C oldw ell, Jackson, and Partee. Absent
and not voting: Governors Gardner and Burns.
Governor Burns was a member of the Board at the time
of its action on this application.
(Sign ed ) G r i f f i t h L. G a r w o o d ,
Deputy Secretary of the B o a r d .
[s e a l ]
Security B ancorp,
W alnut C reek, C alifornia
Order Denying
Formation of Bank Holding Company
Security B ancorp, W alnut C reek, C alifornia,
has applied for the B oard ’s approval under section
3(a)(1) o f the B ank H old in g C om pany A ct (12
U .S .C . § 1 84 2(a)(1)) o f form ation o f a bank
h olding com pany by acquiring all of the voting
shares (less directors’ qualifying shares) o f the
su c c e sso r b y m erger to S e c u r ity N a tio n a l B a n k ,
W alnut C reek, C alifornia.
N otice o f the application, affording opportunity
for interested persons to subm it com m ents and
v ie w s, has been given in accordance w ith section
3(b) o f the A ct. The tim e for filing com m ents and
v iew s has expired, and the Board has considered
the application and all com m ents received in light
of the factors set forth in section 3(c) o f the A ct
(12 U .S .C . § 1842(c)).
On the basis of the record, the application is
denied for the reasons set forth in the B oard’s
Statem ent, w hich w ill be released at a later date.
B y order of the Board of G overnors, effective
April 14, 1978.
405
Statement
Security B ancorp, W alnut C reek, C alifornia,
has applied for the B oard ’s approval under
§ 3(a)(1) o f the Bank H olding C om pany A ct, 12
U .S .C . § 1842(a)(1) of form ation of a bank h old
ing com pany by acquiring all o f the voting shares
(less directors’ qualifying shares) o f the su ccessor
by merger to Security N ational B ank, W alnut
Creek, C alifornia ( “ B an k ” ). The proposed acqui
sition o f shares o f the su ccessor organization is
treated herein as the proposed acquisition of shares
of Bank. B y Order dated April 14, 1978, the Board
denied this application for the reasons set forth
b elo w .
N o tice of the application, affording opportunity
for interested persons to subm it com m en ts and
v iew s has been g iv en in accordance w ith § 3(b)
o f the A ct, 12 U .S .C . § 1842(b ). The tim e for
filing com m ents and v iew s has exp ired , and the
Board has considered the application and all c o m
m ents received in light of the factors set forth in
§ 3(c) of the A ct, 12 U .S .C . § 18 4 3 (c).
A pplicant is a nonoperating corporation organ
ized for the purpose o f b ecom in g a bank holding
com pany through the acquisition o f Bank ($ 1 5 6 .9
m illion in d e p o sits).1 U pon acquisition of B ank,
A pplicant w ould control the 31st largest banking
organization in C alifornia and .2 per cent of total
deposits in com m ercial banks in the State.
Bank is the 14th largest banking organization
in the relevant banking m arket,2 controlling .5 per
cent of the d ep osits therein. The proposed trans
action in v o lv es a transfer o f ow nership o f Bank
from an individual to a corporation ow n ed by the
sam e individual and consum m ation o f the proposal
w ould not have any adverse effect upon ex istin g
or potential com petition nor w ould it increase the
concentration o f banking resources in the market.
T hus, the Board con clu d es that com p etitive co n
siderations are consistent w ith , but do not lend
w eight tow ard, approval o f the application.
The financial resources and future prospects o f
A pplicant and Bank are considered satisfactory
and consistent w ith approval o f the application.
W hile there w ou ld be no im m ediate increase in
the services offered by Bank as a result o f the
proposed transaction, the considerations relating
to the con v en ien ce and needs of the com m unity
Voting for this action: Chairman Miller and G over
nors Gardner, W allich, C oldw ell, Jackson, and Partee.
(S ign ed ) G riffith L. G a r w o o d ,
[ s e a l]
Deputy Secretary of the Board.
1 A ll banking data are as of June 30, 1977.
2 The relevant banking market is approximated by the San
Francisco SM SA .
406
Federal Reserve Bulletin □ May 1978
D uring the p en d en cy of the subject application,
the Board w as aware that in vestigation s w ere bein g
conducted b y U n ited States law enforcem ent au
thorities into q uestionable paym ent practices by
U nited States com p an ies and that those in v estig a
tions also in volved Mr. K h ash oggi. In v iew o f the
in vestigation s and Mr. K h a sh o g g i’s important p o
sition w ith respect to Bank and the proposed bank
h olding com p an y, the Board requested from the
U nited States Departm ent o f Justice and the S e
curities and E xchange C o m m ission any inform a
tion concerning Mr. K h ash oggi that m ay be rele
vant to the banking factors the Board is required
to consider under the A ct. In connection w ith their
in vestigation s, the D epartm ent o f Justice and the
SEC have sought Mr. K h a sh o g g i’s testim on y. Mr.
K h ash oggi, h o w ev er, has been u n w illin g to subm it
to questioning in a manner satisfactory to those
agen cies. A s a result o f Mr. K h a sh o g g i’s lack of
cooperation in these m atters, the agen cies have
been unable to respond adequately to the B oard ’s
requests for inform ation.
On February 17, 1978, the Board considered
the subject application and w as advised o f n eg o ti
ations then in progress b etw een the Departm ent
o f Justice and representatives o f Mr. K hashoggi
w hereby it w as anticipated that an agreem ent
m ight have b een reached in the near future for
Mr. K h ash oggi to subm it to questioning. In v iew
o f the incom p lete record and the prospect that
those negotiations m ight soon result in an agree
m ent, the Board d ecided not to take final action
on the application at that tim e. Rather, the Board
acted to defer a final d ecisio n on the application
for 6 0 days and inform ed A pplicant that w hen the
Board reconsidered the application a relevant fa c
tor w ould be the status of the above investigations
and, in particular, Mr. K h a sh o g g i’s cooperation
in those in vestigation s. It w as the B oard’s judg
m ent that deferral o f final consideration for a short
period w as reasonable under the circum stances.
S in ce it last considered the application, the
Board has been inform ed that the negotiations w ith
Mr. K h ash oggi have b een term inated and that he
3
The Bank H olding Com pany Act requires that the Board, has not ev id en ced a w illin g n ess to cooperate w ith
in acting on an application to acquire a bank, inquire into the
the agen cies in their in vestigation s. A s a result,
financial and managerial resources o f an applicant. W hile this
Mr. K h a sh o g g i’s lack of cooperation lea v es un
proposal involves the transfer o f the ow nership of Bank from
answ ered the B oard ’s original requests for infor
an individual to a corporation ow ned by the same individual,
the A ct requires that, before an organization is permitted to
m ation from the Departm ent of Justice and the
becom e a bank holding com pan y, and thus obtain the benefits
SEC. In addition, his lack o f cooperation w ith
associated with the holding com pany structure, it must secure
form al in vestigation s undertaken by U nited States
the B oard’s approval. Section 3(c) of the A ct provides that
the Board m ust, in every ca se, consider, am ong other things,
law enforcem ent authorities raises som e concern
the financial and m anagerial resources o f both the applicant
w hether Mr. K h ash oggi w ou ld be personally
com pany and the bank to be acquired. The B oard’s action in
available and accountable to bank supervisory au
this case is based on a consideration of such factors.
to be served are con sisten t w ith approval o f the
application.
A pplicant’s principal shareholder is Adnan M .
K h ash oggi, a Saudi Arabian citizen . Mr. Khash oggi, prim arily through h is personal h olding
com pany, Triad H old in g Corporation, S .A ., L u x
em bourg, has w orld w id e investm ents in com p a
nies engaged in international trade, investm ent
banking, and finance. H e also serves as sales agent
for various com p an ies. A pproxim ately 97 per cent
of the voting shares o f Bank are ow n ed by Mr.
K h ashoggi and approxim ately the sam e proportion
of the voting shares of A pplicant w ould be ow ned
by him after consum m ation of the proposed trans
action.
The B oard’s an alysis o f the m anagerial re
sources of an A pplicant or its proposed subsidiary
bank does not custom arily extend to shareholders
w ho do not serve as officers, directors or p o lic y
m aking em p loyees o f th ose organ ization s.3 In the
B oard’s v ie w , h o w ev er, w here an individual exer
cises a pervasive or controlling influence, or has
the pow er to ex ercise such influence, over an
organization, w hether by reason of stock ow n er
ship or control over officers, directors or em p lo y
e e s, that individual m ay appropriately be regarded
as part o f the organ ization ’s m anagerial resources,
and the Board m ay consider such an individual
in its assessm en t o f an organization’s m anagerial
resources.
Mr. K h ash og g i’s ow nership of approxim ately
97 per cent of the votin g shares o f Bank enables
him to elect all o f B a n k ’s directors and to control
and direct B an k ’s m anagem ent. In addition to
electin g B an k ’s board of directors, the record
reflects that Mr. K h ash oggi provides broad guid
ance to Bank in terms o f his ow n o b jectives as
principal shareholder. In v iew o f the above and
other facts o f record, it is the B oard’s judgm ent
that Mr. K h ash o g gi’s ability to influence Bank is
such that he should b e considered as part of its
m anagem ent.
Law Department
thorities should the need arise. In the B oard’s
v ie w , a requirem ent for a favorable finding w ith
respect to an A p p lican t’s m anagerial resources is
that m anagem ent w ill be accessib le to and coop er
ate w ith supervisory personnel. Furthermore, Mr.
K h ash oggi’s u n w illin gn ess thus far to cooperate
w ith U nited States law enforcem ent authorities is
not in keeping w ith what the Board regards as
acceptable conduct for the m anagem ent o f a bank
holding co m p a n y .4
On the basis o f the foregoin g and the facts of
record, the Board is unable to reach a favorable
con clu sion w ith respect to the m anagerial re
sources of B ank or A pplicant. W hile the other
factors the Board is required to consider in acting
on the application are consistent w ith approval,
they are not sufficient to o u tw eigh the adverse
m anagerial factors relating to the subject applica
tion. A ccord in gly, it is the B oard ’s judgm ent that
approval of the application w ou ld not be in the
public interest and the application should be d e
nied.
Board o f G overnors o f the Federal R eserve
S ystem , effective M ay 2 , 1978.
(S ign ed ) G r i f f i t h L. G a r w o o d ,
[s e a l ]
Deputy Secretary of the Board.
The V iking Corporation,
D en iso n , Iow a
Order Approving
Formation of Bank Holding Company
The V ik in g C orporation, D en iso n , Iow a, has
applied for the B oard ’s approval under section
3(a)(1) o f the Bank H old in g C om pany A ct (12
U .S .C . § 1842(a)(1)) of form ation of a bank
h olding com pany through acquisitions o f 80 per
cent or m ore o f the votin g shares o f Crawford
C ounty Trust and Savin gs B ank, D en iso n , Iow a
( “ B an k ” ).
N otice o f the application, affording opportunity
for interested persons to subm it com m ents and
v ie w s, has been giv en in accordance w ith section
3(b) of the A ct. T he tim e for filing com m ents and
v iew s has expired , and the application and c o m
m ents received , including those o f Mr. Fred K och ,
a shareholder of B ank, have b een considered in
light of the factors set forth in section 3(c) o f the
A ct (12 U .S .C . § 1842 (c)).
A pplicant w as recently organized under the law s
of the State of Iow a for the purpose of b ecom in g
a bank holding com pany w ith respect to Bank
(aggregate d ep osits o f approxim ately $ 2 2 .0 m il
4 See also, F lorida N a tio n a l B anks o f F lorida, Inc. 62 Federal
R eserve B u l l e t i n .
407
lio n ).1 U pon acquisition o f B ank, A pplicant w ould
control the 173rd largest bank in Iow a holding
about 0 .1 7 per cent of the total d ep osits in c o m
m ercial banks in the State. Bank is the largest o f
nine banks com p etin g in the Crawford C ounty
banking market 2 w ith approxim ately 2 5 .7 per cent
of the deposits in com m ercial banks therein. The
proposal to form a bank holding com pany repre
sents a restructuring o f the ex istin g ow nership
from individual to corporate form and a shift of
control w ithiii the present directors group.
T w o principals of A pplicant are also principals
in four other one-bank holding com panies and one
of A p p lican t’s principals is an officer o f seven
other com m ercial banks. The c lo sest o f these is
forty road m iles from Bank and all are in separate
banking m arkets. In light o f the distances separat
ing these banks, the chain banking relationship
does not present adverse com p etitive e ffe c ts. C on
sum m ation o f the proposal w ou ld elim inate no
e xistin g or potential com petition and it d oes not
appear that there w ou ld be any adverse com p etitive
effects on other banks in the market. C om p etitive
factors are con sisten t w ith approval o f the appli
cation.
The Board has received adverse com m ent on
this application from Mr. Fred K och , a m inority
shareholder o f bank. Mr. K och alleged certain
d iscrepancies b etw een this application and the
offering circular by w hich A pplicant offered to
purchase m inority shares of bank. Mr. K och ap
parently b e liev es that the offering circular w as
m isleading to m inority shareholders.3 H o w ev er,
the offering circular d oes not appear to be m is
leading in any material respect. M oreover, there
is no ev id en ce in the record to indicate that
principals o f A pplicant have acted in bad faith
toward the m inority shareholders o f Bank. The
condition o f each o f the other banks and bank
holding com panies w ith w hich principals o f A p
plicant are associated is satisfactory, and the Board
b eliev es that A pplicant w ill serve as a source of
m anagerial strength to Bank. A lthough A pplicant
w ill incur debt in connection w ith this proposal,
1 A ll deposit data are as of June 30, 1977.
2 The Crawford County banking market is approxim ated by
all of Crawford C ounty.
3 The Board has indicated that it view s evid en ce that an
A pplicant has dealt fraudulently with minority shareholders of
a proposed subsidiary bank as reflecting adversely on the
A pplicant’s ability to be a source of managerial strength for
the bank. See the B oard’s Order dated October 26 , 1977,
approving the formation o f a bank holding com pany by B enson
B ancshares, In c., B en son , M innesota, 63 Federal R eserve
B u l l e t i n 1009 (1977).
408
Federal R eserve Bulletin □ M ay 1978
B an k ’s projected in com e should provide sufficient
funds to service this debt w ithout unduly burden
ing B ank’s capital p osition . Financial and m ana
gerial factors are con sisten t w ith approval of the
application.
Applicant has proposed no new or expanded
services upon approval o f the application. C on
ven ien ce and needs factors are consistent w ith , but
lend no w eight to, approval o f the application.
On the basis of all the ev id en ce in the record
the Board conclu d es that all the relevant factors
are consistent w ith approval. C onsum m ation of the
proposed transaction w ould be in the public inter
est and the application should be approved.
The application is approved for the reasons
sum m arized above. T he transaction shall not be
m ade (a) before the thirtieth calendar day fo llo w
ing the effective date o f this order, or (b) later
than three m onths after the effectiv e date o f this
Order, unless such period is extended by the
Board, or by the Federal R eserve Bank o f C hicago
pursuant to delegated authority.
B y order of the Board o f Governors effectiv e
April 2 4 , 1978.
Voting for this action: Chairman Miller and G over
nors Gardner, W allich, Jackson, and Partee. Absent and
not voting: Governor C oldw ell.
(S ign ed ) C a t h y E. M
[s e a l ]
in e h a n
,
Assistant Secretary of the Board.
The W ed ge H old in g C om pany,
A lton, Illinois
Order Approving
Formation of Bank Holding Company
The W edge H old in g C om pany, A lton , Illin ois,
has applied for the Board’s approval under
§ 3(a)(1) of the Bank Holding Company Act (12
U .S .C . § 1842 (a )(1 )) o f form ation o f a bank
holding com pany by acquiring 8 1 .8 8 5 per cent of
the outstanding voting shares o f A lton Banking
and Trust C o ., A lton , Illin ois ( “ B an k ” ).
N otice of the application, affording opportunity
for interested persons to subm it com m ents and
v ie w s, has been giv en in accordance with § 3(b)
of the A ct. The tim e for filing com m ents and view s
has expired, and the Board has considered the
application and all com m en ts received in light of
the factors set forth in § 3(c) o f the A ct (12 U .S .C .
§ 1842(c)).
A pplicant, a nonoperating corporation w ith no
subsidiaries, w as form ed for the purpose o f b e
com in g a bank hold in g com pany by acquiring
shares o f Bank. Bank has total deposits of $ 5 2 .1
m illio n , representing 0 .0 8 per cent o f total deposits
in com m ercial banks in the State of I llin o is.1 Bank
is the 40th largest o f 162 com m ercial banks in
the St. L ouis banking m arket,2 controlling 0 .6 per
cent o f the deposits in com m ercial banks therein.
One of the principals o f A pplicant is also a
principal of a one-bank holding com pany that
ow n s Cedar Falls Trust and S avin gs B ank, Cedar
F alls, Iow a ( “ S avin gs B a n k ” ). Savings Bank does
not operate in the St. L ouis banking market. In
light o f that fact, the distance b etw een the markets
resp ectively served by Bank and S avin gs B ank,
and the fact that the proposed transaction repre
sents no m ore than the restructuring of the existin g
ow nership of B ank, it appears that consum m ation
of the proposal w ould not have an adverse effect
on existin g or potential com petition. A ccord in gly,
it is concluded that com p etitive considerations are
consistent w ith approval o f the application.
W here a principal o f the applicant is en gaged
in establishing a chain o f one-bank holding c o m
p an ies, the Board applies multi-bank holding
com pany standards not on ly in its com p etitive
an alysis, but also in a ssessin g the financial and
managerial resources and future prospects both of
an applicant seeking to b eco m e a one-bank holding
com pany and o f its proposed subsidiary b an k .3 The
condition o f S avin gs Bank su ggests that A p p li
can t’s principals w ould conduct the operations of
the proposed h olding com pany and of Bank in a
satisfactory manner. Further, the financial re
sources o f A pplicant, w hich are dependent upon
those o f B ank, are considered to be consistent w ith
approval o f the application, and their future pros
pects appear favorable. A lthough A pplicant w ill
incur som e debt as a result of this proposal, it
appears that incom e and dividends from B ank, as
w ell as savin gs resulting from the filing o f c o n so l
idated tax returns, should provide A pplicant with
sufficient revenues to m eet its debt service re
quirem ents w ithout adversely affecting the finan
cial condition o f B a n k .4 T herefore, considerations
1 A ll banking data are as of June 30, 1977.
2 The St. L ouis banking market is defined as the St. L ouis
Ranally Metro Area.
3 See e .g ., the B oard’s Order of June 14, 1976, denying
the application of Nebraska B anco, In c., Ord, Nebraska, 62
Federal R eserve B u l l e t i n 638 (1976).
4 In this connection, the Board notes that A pplicant has made
a com m itm ent that A pplicant’s principals w ill pay or cause
to be paid from other sources all principal and interest on the
acquisition debt if paym ent of any such principal and interest
with distributions from Bank w ould reduce B ank’s gross capi(Footnote continued on follow in g page)
Law Department
relating to banking factors are consistent with
approval o f the application.
W hile no major changes are contem plated in
B ank’s services, considerations relating to the
con ven ien ce and needs o f the com m unity to be
served are consistent w ith approval o f the applica
tion. A ccord in gly, it is the B oard’s judgm ent that
consum m ation of the proposed transaction w ould
be consistent w ith the public interest and that the
application should be approved.
On the basis o f the record, the application is
approved for the reasons sum m arized above. The
transaction shall not be m ade (a) before the thir
tieth calendar day fo llo w in g the effectiv e date o f
this Order or (b) later than three m onths after the
effective date o f this Order, unless such period
is extended for good cause by the Board, or by
the Federal R eserve Bank of St. L ouis pursuant
to delegated authority.
B y order of the Board of G overnors, effective
April 19, 1978.
Voting for this action: Chairman M iller and G over
nors W allich, C oldw ell, Jackson, and Partee. Absent
and not voting: Governor Gardner.
(Sign ed ) G r i f f i t h L. G a r w o o d ,
[s e a l ]
Deputy Secretary of the Board.
O r d e r s U n d e r S e c t io n 4
B a n k H o l d in g C o m p a n y A ct
of
Bankshares o f N ebraska,
Grand Island, N ebraska
H astings State C om pany,
H astin gs, N ebraska
O rder Approving Acquisition
of First Savings Company of Hastings
B ankshares of N ebraska, In c ., Grand Island,
N ebraska ( “ B ankshares” ), and H astings State
C om pany, H astin gs, Nebraska ( ‘H S C ” ), bank
holding com panies w ithin the m eaning o f the Bank
H olding C om pany A ct, have each applied for the
(F ootnote 4 continued)
tal-to-average annual total assets ratio below eight per cent.
In addition, Applicant has com m itted that no dividends on
A pplicant’s com m on or preferred stock w ill be declared so
long as A pplicant’s incom e is required to service its acquisition
debt. Further, A pplicant has agreed to forego its right to redeem
its preferred stock at any time subsequent to five years from
the date o f issuance so long as funds are required to service
and retire its acquisition debt.
409
B oard ’s approval, under § 4 (c)(8 ) o f the A ct (12
U .S .C . § 1 8 4 3 (c)(8 )) and § 2 2 5 .4 (b )(2 ) o f the
B oard ’s R egulation Y (12 CFR § 2 2 5 .4 (b )(2 )), to
acquire, resp ectiv ely , 8 0 .4 per cent and 1 9 .6 per
cent o f the votin g shares o f First Savin gs C om pany
of H astin gs, H astings, N ebraska ( “ C om p an y” ),
a de novo corporation. C om pany w ou ld en gage
in the activities o f operating an industrial loan and
investm ent com pany pursuant to the law s o f N e
braska, and also of acting as insurance agent for
the sale o f credit life insurance directly related to
exten sion s o f credit by C om pany. Such activities
have b een determ ined by the Board to be clo sely
related, to banking (1 2 CFR § 2 2 5 .4 (a )(2 ) and
(9 )(ii)).
N o tice of the applications, affording opportunity
for interested persons to subm it com m ents and
v iew s on the public interest factors, has been duly
published (43 Fed. Reg. 2 2 2 7 (1 9 7 8 )). The tim e
for filing com m ents and v iew s has exp ired , and
the Board has considered the applications and all
com m ents received in the light of the public inter
est factors set forth in § 4 (c)(8 ) o f the A ct (12
U .S .C . § 1 8 4 3 (c)(8 )).
Bankshares is the eighth largest banking orga
nization in N ebraska by virtue o f its control of
The First N ational Bank o f Grand Island, Grand
Island, Nebraska ( “ F N B ” ), w h ich has d ep osits o f
approxim ately $ 7 4 .9 m illio n , representing 1.1 per
cent o f total deposits in com m ercial banks in the
S ta te.1 FN B is the largest o f seven banks in the
relevant m arket,2 controlling 3 2 .6 per cent o f the
total deposits in com m ercial banks in that market.
Bankshares also controls First Savin gs C om pany,
Grand Island, N ebraska ( “ First S a v in g s” ), an
industrial bank w ith assets of approxim ately $6
m illio n , located in the relevant market.
H SC ranks as the 102nd largest banking organi
zation in N ebraska through its control o f H astings
State B ank, H astin gs, N ebraska ( “ H astings
B a n k ” ). H astings Bank has d ep osits o f approxi
m ately $ 1 5 .2 m illio n , representing 0 .2 3 per cent
of total deposits in com m ercial banks in the State,
and is the third largest of five banks in the relevant
m arket,3 controlling approxim ately 8 .2 per cent of
the total deposits in com m ercial banks in that
market. Through C om pany, B ankshares and HSC
1 A ll banking data are as of D ecem ber 31, 1976.
2 The relevant banking market is approxim ated by Hall
C ounty, Nebraska.
3 The relevant banking market is approximated by Adam s
C ounty, Nebraska.
410
Federal Reserve Bulletin □ May 1978
propose to engage in industrial loan a ctiv itie s,4
including the m aking o f consum er, com m ercial
and real estate loans. C om pany w ou ld also en gage
in the sale o f credit-related insurance. S in ce the
acquisition of C om pany w ould be de novo , no
existin g com petition w ould be elim inated betw een
C om pany and the subsidiaries o f either Bankshares
or H SC . A lso , sin ce B ankshares’ ex istin g sub sid i
aries conduct b u sin ess in a market separate and
distinct from that o f H S C ’s on ly subsidiary (H ast
ings B an k ),5 approval o f the applications w ould
not elim inate any existin g com petition b etw een
Bankshares and H SC .
Approval o f this application w ou ld elim inate
Bankshares as a potential entrant in the A dam s
County market. H o w ev er, N ebraska law precludes
FN B from branching, and the N ebraska bank
holding com pany statutes preclude Bankshares
from acquiring de novo com m ercial banks. It ap
pears, h ow ever, that in the absence o f this pro
posal, Bankshares w ould have the ability to estab
lish C om pany on its ow n . D esp ite this fact, the
association w ith H SC through this ow nership ar
rangem ent is not considered adverse sin ce HSC
is not in a dom inant market p osition . Indeed,
B ankshares’ financial strength and exp erience w ith
its other industrial bank and H S C ’s k n ow led ge of
the A dam s C ounty market should contribute to
C om p any’s ability to com p ete w ith the larger
institutions in the m arket.6 On b alan ce, therefore,
the Board does not find the effects o f this proposal
on potential com petition are sufficiently adverse
to require denial o f this application.
W hile the Board has previou sly expressed co n
cern about the com p etitive effects o f joint activity
by bank holding c o m p a n ie s,7 g iv en the facts of
4 Under Nebraska law , an industrial loan and investm ent
com pany is authorized to issue both paid-up and instalment
certificates o f indebtedness, and is subject to regulation and
exam ination by the Nebraska Department o f Banking and
Finance.
5 C om pany w ould serve Hastings B ank’s market, Adams
C ounty, and although Adam s and Hall C ounties are contiguous
they are defined as separate banking markets.
6 H SC , through H astings Bank, controls 5 .2 2 per cent of
the market savings deposits and ranks fourth o f eight financial
institutions in the Adam s County M arket. T he three larger
institutions, a savings and loan association and tw o com m ercial
banks, have a com bined market total of 8 4 .7 per cent of market
savings deposits.
7 See the Board’s Order dated April 15, 1974, approving
the formation of a joint venture betw een The Fort Worth
National Corporation, Fort W orth, T exas, and Shawm ut A sso
ciation, In c., B oston, M assachusetts, by acquiring shares of
A m erican Cattle and Crop Services Corporation, G uym on,
O klahom a, a d e novo corporation (60 Federal R eserve B u l l e
t i n 382 (19 7 4 )). See also the B oard’s Order dated October
1, 1974, denying acquisition of a d e novo bank by Southeast
record in this c a se, including the structure o f the
A dam s C ounty banking market, the relatively
sm all size o f the tw o institutions, and the N ebraska
law s prohibiting both m ultibank holding com p a
nies and branching, it is unlikely that any signifi
cant potential com p etition w ould be elim inated by
approval of this application or that other significant
adverse effects w ou ld result therefrom . On the
other hand, in the circum stances o f this proposal
the Board finds that consum m ation o f the proposal
w ould result in public benefits. C om pany w ould
provide the H astings area w ith both an additional
com petitor and an additional source o f loans and
credit-related insurance, w hich results the Board
regards as b ein g in the public interest.
There is no ev id en ce in the record indicating
that consum m ation o f this proposal w ou ld result
in undue concentration of resources, unfair c o m
petition, conflicts of interests, unsound banking
practices or other adverse effects.
B ased upon the foregoin g and other co n sid
erations reflected in the record, the Board has
determ ined that the balance o f the public interest
factors the Board is required to consider under
§ 4(c(8) is favorable. Accordingly, the applications
are hereby approved. T his determ ination is subject
to the conditions set forth in § 2 2 5 .4 (c ) o f R eg u
lation Y and to the B oard ’s authority to require
such m odification or term ination of the activities
of a holding com pany or any of its subsidiaries
as the Board finds necessary to assure com p lian ce
with the provisions and purposes o f the A ct and
th e B o a r d ’s r e g u la t io n s and o rd er s is s u e d
thereunder, or to prevent evasion thereof.
The transaction shall be m ade not later than
three m onths after the effectiv e date o f this Order,
unless such period is extended for good cause by
the Board or by the Federal R eserve Bank o f
Kansas C ity.
B y order o f the Board o f G overnors, effectiv e
April 4 , 1978.
Voting for this action: Chairman M iller and G over
nors W allich and Jackson. Voting against this action:
Governors Coldw ell and Partee. Absent and not voting:
Governors Gardner and Burns. Governor Burns was a
member of the Board at the time of its action on this
application.
(S ign ed ) G r i f f i t h L. G a r w o o d ,
[s e a l ]
Deputy Secretary of the Board.
Banking Corporation, M iam i, Florida (60 Federal R eserve
B u ll e t in 784 (1974)).
Law Department
Dissenting Statement of Governor Partee
I am unable to concur w ith the m ajority in its
d ecision since I do not find that the public benefits
of this proposal ou tw eigh the p o ssib le adverse
effects of form ation o f a joint venture by tw o bank
holding com panies to en gage in industrial banking
and credit related insurance activities. The facts
indicate that in the absence of a joint venture one
o f the tw o bank holding com panies w ould in all
lik elihood apply on its ow n to form an industrial
loan C om pany in H astings. Sin ce there do not
appear to be any additional public benefits to be
derived from having this activity carried out jointly
rather than by one bank h olding com pany alon e,
the joint venture should not be approved. Further
m ore, sin ce the State of N ebraska prohibits both
m ultibank holding com panies and branch banking,
it w ould appear that the on ly v eh icle for significant
com petition betw een these tw o holding com panies
w ould be through the establishm ent o f com peting
industrial banks. B y approving this joint venture,
the Board has foreclosed this p ossib ility in the
H astings area.
For the above reasons, I w ould deny these
applications.
411
First U n ion Bancorporation,
St. L o u is, M issouri
Order Approving Retention
of St. Louis Union Trust Company
I join G overnor Partee in his finding that the
Board should not approve the form ation o f a joint
venture to form an industrial bank w hen it appears
more than lik ely that one o f the tw o bank holding
com p an ies, in the absence o f Board approval of
the joint venture, w ould apply to en gage in this
activity on its ow n. In addition, it appears to m e
that the B oard’s approval in this ca se, like certain
“ chain b an king” arrangements recently approved
by the B o a rd ,1 fosters evasion o f state prohibitions
on m ulti-bank holding com p an ies. B y perm itting
tw o bank holding com panies to com bine their
resources by m eans of a joint venture, the Board
is condoning a concentration of eco n o m ic pow er
that w ould otherw ise be im perm issible under State
law . For these reasons, I w ould deny these appli
cations.
First U n ion B ancorporation, St. L o u is, M is
souri, a bank holding com pany w ithin the m eaning
o f the Bank H old in g C om pany A ct, has applied
for the B oard’s approval, under § 4 (c )(8 ) o f the
A ct (12 U .S .C . § 1 8 4 3 (c)(8 )) and § 2 2 5 .4 (b )(2 )
o f the
B oard ’s R egulation
Y
(12
CFR
§ 2 2 5 .4 (b )(2 )), to retain shares o f St. L ouis U nion
Trust C om pany, St. L ou is, M issouri ( “ Trust
C om p an y” ), a com pany that en gages in personal
and group trust activities, probate a ctiv ities, cor
porate fiduciary activities, and m aking investm ents
in m oney market instruments for its ow n account.
Such activities have been determ ined by the Board
to be clo se ly related to banking (12 CFR
§ 2 2 5 .4 (a )(4 )). Trust C om pany also m akes in v est
m ents in equity securities for its ow n account
w ithin the lim itation im posed by § 4 (c )(6 ) o f the
A c t.1
N o tice o f the application, affording opportunity
for interested persons to subm it com m en ts and
v iew s on the public interest factors, has been duly
published (43 Fed. Reg. 4 6 7 9 (1 9 7 8 )). The tim e
for filing com m ents and v iew s has expired, and
the Board has considered the application and all
com m ents received in the light o f the public inter
est factors set forth in § 4 (c )(8 ) o f the A ct (12
U .S .C . § 1 8 4 3 (c)(8 )).
A pplicant, the secon d largest banking organi
zation in M issou ri, controls eigh teen subsidiary
banks in that State w ith aggregate d ep osits o f $ 1 .7
b illio n , representing approxim ately 9 per cent of
the total deposits in com m ercial banks in M is
sou ri.2 A pplicant also en g a g es, through su b sid i
aries, in underwriting credit-related insurance,
acting as agent in the sale o f credit-related insur
ance, consum er finance, and holding properties
used as bank prem ises by three o f its subsidiary
banks.
Trust C om pany is a state-chartered non-deposit
trust com pany that operates, in effect, as the trust
1
S ee, for exam ple, the D issenting Statement of Governor
C oldw ell to the Board’s Order dated February 2 7 , 1978,
approving the formation o f a bank holding com pany by Su eco,
Inc., El D orado, Kansas.
1 Section 4 (c )(6 ) of the A ct permits a bank holding com pany
to acquire shares of any com pany that do not include more
than 5 per centum of the outstanding voting shares of such
com pany.
2 A s of June 30, 1977.
Dissenting Statement of Governor Coldwell
412
Federal R eserve Bulletin □ May 1978
department of A p p lican t’s lead bank, First N a
tional Bank in St. L ou is, St. L ou is, M issouri
( “ B an k ” ) .3 Trust C om pany is the twenty-third
largest trust organization in the U nited States and
the largest in M isso u ri.4 In 1976, Trust C om pany
derived $ 1 3 .8 m illion in gross incom e from its
operations, representing approxim ately 5 1 .5 per
cent 5 of incom e from fiduciary services received
by trust organizations in the St. L ouis m arket.6
This approxim ation is overstated because the a g
gregate figure upon w hich this percentage is based
does not include in com e received by certain other
nondepository trust com panies in the St. L ouis
market, for w hich data is not readily available.
Trust C om pany w as affiliated w ith Bank through
com m on stockholders and directors before A p p li
cant w as form ed as a h olding com pany w ith re
spect to Bank in 1969, at w hich tim e both Bank
and Trust C om pany b ecam e subsidiaries o f A p p li
can t.7 It does not appear that the corporate reor
ganization by w hich A pplicant acquired C om pany
elim inated any com petition. Currently, three of
A pp licant’s subsidiary banks en gage in certain
business activities in w hich Trust C om pany e n
gages. H ow ever, none o f these banks com pete in
the St. L ouis market, and it d oes not appear that
any significant com petition exists betw een them
and Trust C om pany. T hus, approval of the pro
posed retention should have no adverse effect on
com petition.
Approval of the application w ould avoid
disruption of Trust C om p an y’s service to cu stom
ers of Bank and o f A p p lican t’s other subsidiary
banks. The Board con clu d es that the benefits to
the public that can reasonably be exp ected to result
from A pplicant’s continued ow nership of shares
of Trust C om pany o u tw eigh any p ossib le adverse
effects that m ight result from A p p lican t’s retention
o f those shares.
There is no ev id en ce in the record indicating
that consum m ation o f the proposal w ould result
in undue concentration o f resources, conflicts of
interests, unsound banking practices, or other ad
verse effects.
B ased upon the foregoin g and other co n sid
erations reflected in the record, the Board has
determ ined that the balance of the public interest
factors the Board is required to consider under
§ 4 (c)(8 ) is favorable. A cco rd in g ly , the application
is hereby approved. T his determ ination is subject
to the conditions set forth in § 2 2 5 .4 (c ) o f R eg u
lation Y and to the B oard ’s authority to require
such m odification or term ination o f the activities
of a holding com pany or any of its subsidiaries
as the Board finds necessary to assure com p lian ce
w ith the provisions and purposes of the A ct and
th e B o a r d ’ s r e g u la t io n s and o rd ers is s u e d
thereunder, or to prevent evasion thereof.
B y order of the Board o f G overnors, effectiv e
April 10, 1978.
Voting for this Action: Chairman Miller and G over
nors W allich, Jackson, and Partee. Absent and not
voting: Governors Gardner and C oldw ell.
(S ign ed ) C a t h y E. M
[s e a l ]
in e h a n
,
Assistant Secretary of the B o ard .
M ercantile B ancorporation, In c .,
St. L ou is, M issouri
Order Approving Acquisition
of Thorp Credit Company of Charleston
3 W hile Trust Com pany generally does not accept deposits,
it does receive deposits under the circum stances permitted by
§ 2 2 5 .4 (a )(4 ) of the B oard’s R egulation Y.
4 Based on market value o f trust assets.
5 The tw o largest of these control trust assets of approxi
mately $125 m illion and $ 1 0 0 m illion respectively.
6 The St. Louis market is defined as the City of St. Louis
and St. Louis C ounty, portions of St. C harles, L incoln, Frank
lin, and Jefferson Counties in M issouri, and portions o f Jersey,
M acoupin, M adison, St. Clair, and M onroe Counties in Illi
nois.
7 Applicant has held shares of Trust Company under the
authority of § 4 (c)(5 ) of the A ct, w hich permits bank holding
com panies to hold shares of a kind that are eligib le for
investm ent by national banks. Applicant now proposes to
relocate the main office of Bank and continue Trust C om pany’s
activities at the old location, w hich w ould becom e a branch
facility o f Bank. Under M issouri law , a State bank may not
engage in trust activities at a branch facility, and, accordingly,
Applicant seeks to retain Trust Com pany as a nonbank subsid
iary under § 4 (c )(8 ) o f the A ct.
M ercantile B ancorporation, In c., St. L ou is,
M issouri, a bank holding com pany w ithin the
m eaning o f the Bank H olding C om pany A ct, has
applied for the B oard ’s approval, under § 4 (c )(8 )
of the A ct (12 U .S .C . § 1 8 4 3 (c)(8 )) and
§ 2 2 5 .4 (b )(2 ) of the B oard ’s R egulation Y (12
CFR § 2 2 5 .4 (b )(2 )), to acquire through its subsid
iary, Franklin Finance C om pany, C layton, M is
souri ( “ Franklin” ), the assets of Thorp Credit
C om pany o f C harleston, C harleston, W est V ir
ginia ( “ Thorp C h arleston” ), an industrial loan
com pany that also acts as insurance agent for the
sale o f insurance that is directly related to ex ten
sions of credit by Thorp C harleston, including
Law Department
credit life and disability in su ran ce.1 Such activities
have been determ ined by the Board to be c lo se ly
related to banking (12 CFR § 2 2 5 .4 (a )(2 ) and (9)).
N otice o f the application, affording opportunity
for interested persons to subm it com m ents and
view s on the public interest factors, has been given
in accordance w ith § 4 of the A ct (43 Fed . Reg.
3 4 3 7 ). The tim e for filing com m ents and v iew s
has expired, and the Board has considered the
application and all com m ents received in the light
of the public interest factors set forth in § 4 (c )(8 )
of the A ct (12 U .S .C . § 1 8 4 3 (c)(8 )).
A pplicant, the largest banking organization in
M issouri, controls 28 banks w ith aggregate d e
posits of approxim ately $2 b illio n , representing
10.9 per cent o f the total com m ercial bank deposits
in the S tate.2 A pplicant also en gages through sub
sidiaries in a variety of nonbanking activities,
including m ortgage banking, consum er finance,
insurance agency and real and personal property
leasing. Franklin directly and through subsidiaries
presently operates 4 0 consum er finance and indus
trial loan offices in 12 States, including 10 offices
in W est V irginia.
Thorp C harleston operates a single industrial
loan office in the Charleston personal loan m arket.3
On D ecem ber 3 1 , 1976, Thorp Charleston had
$ 1 .9 m illion in personal loans outstanding. Frank
lin also operates a sm all loan office, and through
a subsidiary, an industrial loan office in the
C harleston m arket.4 Franklin has indicated that it
plans to clo se both o f its present offices upon
consum m ation of the proposed transaction.5 The
record indicates that on D ecem ber 3 1 , 1976,
Franklin had an aggregate o f $ 1 .2 m illion in per
sonal loans outstanding in the Charleston market,
1 Thorp C harleston’s parent, ITT Thorp Corporation
( “ ITT” ), intends to dispose of its tw o W est Virginia offices
and withdraw from the State, primarily because o f the difficulty
ITT has experienced in obtaining industrial loan licenses in
W est V irginia. A ccordin gly, on March 10, 1978, A pplicant
received approval from the Federal R eserve Bank of St. L ouis,
acting pursuant to delegated authority of its application to
acquire the assets of Thorp Credit C om pany of Parkersburg,
Parkersburg, W est V irginia, ITT’s other W est Virginia office.
2 All banking data are as of June 3 0 , 1977.
* The Charleston personal loan market is approximated by
the Charleston S M S A , w hich consists of Kanawha and Putnam
C ounties.
4 A pplicant’s subsidiary banks, w hich also make personal
loans, operate only in M issouri and do not com pete in the
Charleston market.
5 Franklin has entered into an agreement with a finance
com pany having offices in the Charleston market, to sell the
shares of its industrial loan subsidiary, contingent upon its
acquisition of Thorp Charleston. Under this agreement Franklin
w ould transfer its subsidiary’s industrial loan license, but not
its personal loan receivables ($ 0 .6 m illion outstanding on
413
representing approxim ately 4 per cent o f Frank
lin ’s total personal loans outstanding. T hus, upon
acquisition of Thorp C harleston, Franklin w ould
hold approxim ately $3.1 m illion in personal loans
outstanding, representing 4 .5 per cent o f total
personal loans outstanding in the market. H o w
ever, the record indicates that 75 organizations
having an aggregate o f 81 offices, including banks,
consum er finance com panies and credit unions,
originate personal loans in the C harleston market.
A ccord in gly, the Board con clu d es that the acqui
sition of Thorp C harleston by A pplicant w ould
elim inate som e ex istin g com petition betw een
Thorp Charleston and Franklin. H o w ev er, in light
of the large number o f com petitors originating
personal loans in the C harleston market, and the
sm all amount o f com petition betw een the tw o
firms, the Board d oes not v iew these effects on
com petition as significant.
A cquisition by A pplicant o f Thorp C harleston
w ould ensure the continuation o f the availability
of personal loans and related credit life and credit
disability insurance services to Thorp C harleston’s
custom ers at Thorp C h arleston’s present location.
In addition, affiliation of the tw o firms m ay in
crease the availability of loanable funds to Frank
lin ’s custom ers, and m ay enable Franklin to b e
com e a more effectiv e com petitor in the Charleston
market. W hile the benefits to the public that w ould
result from A p p lican t’s acquisition of Thorp
Charleston are not substantial, based on these and
other facts of record, the Board con clu d es that
such benefits are sufficient to ou tw eigh any adverse
effects on com petition that m ay result from the
acquisition. Furthermore, there is no ev id en ce in
the record to indicate that consum m ation o f the
proposed transaction w ould result in undue c o n
centration o f resources, unfair com p etition , c o n
flicts of interest, unsound banking practices or
other effects that w ould be adverse to the public
interest.
B ased upon the foregoin g and other co n sid
erations reflected in the record, the Board has
determ ined that the balance o f the public interest
factors the Board is required to consider under
§ 4 (c )(8 ) is favorable. A ccord in gly, the application
is approved for the reasons sum m arized above.
The acquisition shall be accom p lish ed no later than
three m onths after the effectiv e date of this Order,
unless such period is extended by the Board or
D ecem ber 31, 1976). With respect to the small loan office,
Franklin proposes to close it and liquidate its personal loan
receivables ($ 0 .6 m illion on D ecem ber 31, 1976).
414
Federal R eserve Bulletin □ May 1978
the Federal R eserve Bank of St. L ou is. The ap
proval o f this application is subject to the co n d i
tions set forth in § 2 2 5 .4 (c ) o f R egulation Y and
to the B oard’s authority to require such m odifi
cation or term ination of the activities o f a holding
com pany or any o f its subsidiaries as the Board
finds necessary to assure com p lian ce w ith the
provisions and purposes o f the A ct and the B oard ’s
regulations and orders issued thereunder, or to
prevent evasion thereof.
B y order of the Board o f G overnors, effective
April 7 , 1978.
Voting for this action: Chairman Miller and G over
nors W allich, Jackson, and Partee. Absent and not
voting: Governors Gardner and C oldw ell.
(S ign ed ) T h e o d o r e E. A
[s e a l ]
l l is o n
,
Secretary of the Board.
Om aha N ational C orporation,
O m aha, N ebraska
Order Approving Acquisition
of Wyoming Trust and Management Co.
Om aha N ational Corporation, O m aha, N e
braska, a bank holding com pany w ithin the m ean
ing of the Bank H old in g C om pany A ct, has ap
plied for the B oard ’s approval, under § 4 (c )(8 )
of the A ct (1 2 U .S .C . § 1 8 4 3 (c)(8 )) and
§ 2 2 5 .4 (b )(2 ) of the B oard’s R egulation Y (12
CFR § 2 2 5 .4 (b )(2 )), to acquire W yom in g Trust
and M a n a g e m en t C o m p a n y , G ille tte , W y o m in g
( “ Trust C om p an y” ), a com pany that en gages in
the activity o f generating trust accounts that are
currently and w ould continue to be m anaged by
itself and by Om aha N ational B ank, O m aha, N e
braska, a subsidiary o f A pplicant. Such activity
has been determ ined by the Board to be clo se ly
related to banking (12 CFR § 2 2 5 .4 (a )(4 )).
N o tice of the application, affording opportunity
for interested persons to subm it com m ents and
v iew s on the public interest factors, has been duly
published (42 Fed. Reg. 4 5 9 5 4 (1 9 7 7 )). The time
for filing com m ents and v iew s has expired, and
the Board has considered the application and all
com m ents received including those subm itted by
The Bank o f C om m erce, Sheridan, W yom in g
( “ Sheridan B a n k ” ), and W yom in g N ational
B ank, Casper, W yom in g ( “ Casper B an k ” ), in
light o f the public interest factors set forth in
§ 4 (c)(8 ) of the A ct (12 U .S .C . § 1 8 4 3 (c)(8 )).
A pplicant, a one-bank holding com p an y, co n
trols the largest bank in N ebraska w ith deposits
of $ 4 5 3 .9 m illio n , representing 6 .7 per cent of
the total d ep osits in com m ercial banks in the
S ta te.1 Through nonbank subsidiaries A pplicant
en gages in lending and leasin g activities pursuant
to section 4 (c)(8 ) o f the A ct.
Trust C om pany w as organized in 1970 under
the W yom in g B u sin ess Corporation A ct. It
operates one office in G illette, W y o m in g , that
solicits p assive trusts and has generated trust assets
of $1 m illion that are m anaged by the Estate and
Trust D iv isio n o f A p p lican t’s subsidiary bank.
Through the acquisition o f Trust C om pany, A p
plicant proposes to solicit trust b usiness in the state
of W yom in g. A pplicant w ill continue Trust C o m
p an y’s solicitation of p assive trusts that w ill re
quire m anagem ent in the future and w ill seek
active trust b u sin ess, including appointm ents
under w ills to m anage estates and other appoint
m ents as trustee. The Estate and Trust D iv isio n
of A p p lican t’s subsidiary bank w ould provide
Trust C om pany with all accounting and other
support services for trusts as agent for Trust C o m
pany and m anage the trust assets. S ince 1975
A p p lican t’s subsidiary bank has m anaged accounts
for Trust C om pany on an agen cy basis. In view
of this ex istin g relationship b etw een A pplicant and
Trust C om pany and the fact that Trust C om pany
has been relatively in active, functioning primarily
to solicit trust accounts for A p p lican t’s subsidiary
bank, it appears that consum m ation of the proposal
w ould not have any significant adverse effects on
com petition in any relevant area.
The letters of com m ents subm itted in connection
with this application by Sheridan Bank and Casper
Bank m ake the contentions that Trust C om pany
is not properly organized under W yom in g law , that
its activities are not c lo se ly related to banking as
required by § 4 (c )(8 ) o f the A ct, that A pplicant,
being located in N ebraska, is barred by section
3(d) of the Bank H olding C om pany A ct from
acquiring a trust com pany in W y o m in g , and that
approval o f the application w ould not be in the
public interest. S in ce these com m ents were filed
with the Board, Trust C om pany w as granted a
charter by the State Exam iner of the State of
W yom in g to operate as a trust com pany pursuant
to the W yom in g law governing the organization
o f financial institutions, as am ended in 1 9 7 7 .2 The
Board has determ ined that perform ing the a ctiv i
ties that m ay be conducted by a trust com pany
1 A ll banking data are as of June 30, 1977.
2 Trust Com pany applied for such a charter on D ecem ber
29 , 1977, and the State Exam iner held a hearing on the charter
application on February 16, 1978. The charter application was
(F ootnote continued on follo w in g page)
Law Department
is clo sely related to banking, as set forth in section
2 2 5 .4 (a )(4 ) of the B oard’s R egulation Y . Further
m ore, the acquisition o f Trust C om pany by an
out-of-state bank holding com pany is not barred
by section 3(d) of the Bank H olding C om pany A ct
because Trust C om pany is not a “ bank” within
the m eaning o f the A ct and neither accepts deposits
nor m akes loans o f any kind. A s d iscu ssed b elo w ,
the Board has concluded that approval o f the
application w ould be in the public interest. In light
o f these considerations, the Board con clu d es that
the objections to approval of the application sub
mitted by Sheridan Bank and Casper Bank do not
have a basis in fact and do not w eigh t against
approval of the application.
It is anticipated that A p p lican t’s acquisition of
Trust C om pany w ould result in benefits to the
public by providing a fuller range of fiduciary
services in W yom in g. A pplicant proposes to staff
Trust C om pany w ith a fu ll-tim e representative to
solicit business and cou n sel custom ers, thereby
increasing the business expertise available to the
public through Trust C om pany. Furthermore, there
is no evid en ce in the record to indicate that c o n
sum m ation of the proposed transaction w ould re
sult in any undue concentration of resources, un
fair com petition , conflicts o f interest, unsound
banking practices, or other effects that w ould be
adverse to the public interest. The Board con clu d es
that the benefits to the public can reasonably be
expected to result from consum m ation o f this
proposal are consistent w ith approval of the appli
cation.
B ased upon the foregoin g and other co n sid
erations reflected in the record, the Board has
determ ined that the balance of the public interest
factors the Board is required to consider under
§ 4 (c)(8 ) is Favorable. A cco rd in g ly , the application
is hereby approved. T his determ ination is subject
to the conditions set forth in § 2 2 5 .4 (c ) o f R eg u
lation Y and to the B oard’s authority to require
such m odification or term ination o f the activities
o f a h olding com pany or any o f its subsidiaries
as the Board finds necessary to assure com pliance
w ith the provision s and purposes of the A ct and
the B o a r d ’s r e g u la t io n s and o rd ers is s u e d
thereunder, or to prevent evasion thereof.
The transaction shall be m ade not later than
(Footnote 2 C ontinued)
approved on March 7 , 1978, subject to the condition that Trust
C om pany m eet the appropriate capital requirements. Applicant
has stated that it w ill pay the necessary capital into Trust
C ompany.
415
three m onths after the effectiv e date o f this Order,
unless such period is extended for good cause by
the Board or by the Federal R eserve Bank of
Kansas C ity, pursuant to authority hereby d e le
gated.
B y order o f the Board of G overnors, effectiv e
April 2 8 , 1978.
V oting for this action: Chairman M iller and G over
nors Gardner, W allich, C oldw ell, Jackson, and Partee.
(S ign ed ) T h e o d o r e E. A
[s e a l ]
l l is o n
,
Secretary of the Board.
U nited M issouri B ancshares, In c.,
Kansas C ity, M issouri
Order Approving Acquisition
of City Bond and M ortgage Company
U nited M issouri B ancshares, In c ., K ansas C ity,
M issouri, a bank holding com pany w ithin the
m eaning o f the Bank H olding C om pany A ct, has
applied for the B oard ’s approval, under section
4 (c)(8 ) o f the A ct (12 U .S .C . § 1 8 4 3 (c)(8 )) and
section 2 2 5 .4 (b )(2 ) of the B oard ’s R egulation Y
(12 CFR § 2 2 5 .4 (b )(2 )) to acquire C ity B ond and
M ortgage C om pany, Kansas C ity, M issouri
( “ City B o n d ” ), a com pany that en gages in the
activity o f originating and servicin g residential,
apartment, com m ercial and industrial lo a n s .1 C ity
B ond also en gages in the activity o f acting as agent
for the sale of credit life insurance, credit accident
and health insurance, and m ortgage protection life
and m ortgage protection d isability insurance d i
rectly related to tis exten sion s o f cred it.2 The
Board has determ ined that such activities are so
clo sely related to banking as to be a proper incident
thereto (12 CFR § 2 2 5 .4 (a )(1 ) and (9 )). A d d i
tion ally, C ity B ond currently en g a g es in certain
other activities that the Board has not determ ined
are clo se ly related to banking.
1 A pplicant also originally applied to acquire indirectly 50
per cent of the shares of Central M anagem ent, In c., ( “ C M I” ),
a subsidiary of City Bond that was engaged in acting as an
investm ent adviser to a real estate investm ent trust. H ow ever,
Applicant has stated that C M I’s advisory contract has been
terminated, and that City Bond w ill divest its interest in CMI
on or before consum m ation of the proposed acquisition. A c
cordingly, Applicant has indicated that its application with
respect to CMI should not be considered by the Board.
2 City Bond also acts as agent for the sale of property and
casualty insurance sold in connection with its extensions of
credit. H ow ever, A pplicant’s proposal to acquire City Bond
does not include an application for this activity and Applicant
has stated that the sale of property and casualty insurance by
City Bond w ill be terminated on or before acquisition by
Applicant.
416
Federal R eserve Bulletin □ May 1978
N otice of the application, affording opportunity
for interested persons to subm it com m ents and
v iew s on the public interest factors, has been duly
published (42 Fed. Reg. 6 1 0 8 4 (1 9 7 7 )). The time
for filing com m ents and v iew s has expired, and
the Board has considered the application and all
com m ents received in light o f the public interest
factors set forth in section 4 (c )(8 ) of the A ct (12
U .S .C . § 1 843(c)(8 )).
A pplicant, the sixth largest banking organi
zation in M issouri, controls nineteen subsidiary
banks in that State w ith aggregate deposits of $ 9 1 9
m illion , representing approxim ately 4 .8 3 per cent
of the total deposits in com m ercial banks in M is
souri.3 W ith six subsidiary banks in the market,
A pplicant is the third largest banking organization
in the Kansas C ity market having an aggregate
of $ 6 0 4 .2 m illion in d ep osits, representing ap
proxim ately 10.9 per cent o f com m ercial bank
deposits in the m arket.4 A pplicant does not cur
rently engage in any significant nonbanking activ
ities.
C ity B ond operates a sin gle m ortgage banking
office in K ansas C ity, M issouri. A s of June 30,
1977, C ity B on d , w ith a real estate m ortgage
servicing portfolio of $ 1 3 8 .6 m illio n ,0 ranked
234th am ong all m ortgage com panies in the U nited
States. City B ond en gages principally in the o rig i
nation and servicing o f 1-4 fam ily residential
m ortgage loans in the K ansas City market, as w ell
as m ultifam ily and com m ercial and industrial
m ortgage loans. It also m akes construction loan s,
and engages in credit-related insurance agency
activities. In 197 6 , C ity B ond originated $ 1 .6
m illion 1-4 fam ily residential m ortgage loan s,
representing approxim ately less than one-half of
one per cent of such loans in the Kansas City
market. A pplicant, through its subsidiary banks in
the Kansas C ity market, is lik ew ise en gaged in
originating com m ercial and industrial m ortgage
loans, as w ell as 1-4 fam ily residential m ortgage
loans and construction loans. In 1976, A pplicant
originated $ 2 .0 m illion of 1-4 fam ily residential
m ortgage loan s, representing approxim ately less
3 A ll banking data are as of D ecem ber 31, 1976, unless
otherw ise noted, and reflect the acquisition by A pplicant of
the C ass County Bank, Peculiar, M issouri, approved by the
Board by Order o f D ecem ber 2 3 , 1977.
4 The Kansas City market is defined as Johnson and W yan
dotte Counties in Kansas, and Jackson, C lay, and Platte C oun
ties and the northern half of C ass County in M issouri.
5 A m erica n B anker of O ctober 24, 1977. A s of June 30,
1976, it had a real estate m ortgage servicing portfolio of $ 1 5 1 .8
m illion and was the nation’s 202nd largest m ortgage com pany.
than on e-h alf per cent o f such loans in the Kansas
City market. In addition to C ity Bond and A p p li
cant, there are num erous other financial organi
zations originating all types o f m ortgage loans in
the Kansas C ity market.
W hile consum m ation of the proposal w ould
appear to elim inate som e existin g com petition in
asm uch as A pplicant and C ity Bond operate in the
sam e market, the Board notes that City Bond w as
form ed to assum e the m ortgage loans business of
A p p lican t’s lead bank w hen it becam e a national
bank in 1934, that C ity B ond still m aintains its
office in the lead bank’s main building, and that
there is and has been significant com m on share
ow nership of A pplicant and C ity B ond. T hus, it
appears that the nature o f this relationship is such
that little, if any, m eaningful com petition presently
exists b etw een A pplicant and C ity B ond. V iew ed
in light of the history of the established relation
ship b etw een A pplicant and C ity B on d , the effects
of consum m ation of the proposed transaction on
existin g com petition appear to be slight. A ccord
in gly, the Board con clu d es that the proposed ac
quisition o f C ity Bond by A pplicant w ould not
have significant adverse effects on com petition.
The facts of record indicate that C ity B o n d ’s
market share has d eclined in recent years. A cq u i
sition by A pplicant o f C ity Bond w ould provide
City Bond w ith a ccess to A p p lican t’s substantial
financial resources and w idespread investor rela
tionships. For exam p le, the proposed transaction
w ould result in an im m ediate injection of $ 3 0 0 ,0 0 0
into City B o n d ’s capital accounts. T hus, it is
anticipated that the proposed affiliation of City
Bond w ith A pplicant w ill enable City Bond to
continue to better serve its existin g custom ers, and
to revitalize itself to b ecom e a more aggressive
com petitor in the m ortgage banking b u sin ess. On
the basis o f these and other facts of record, the
Board con clu d es that the benefits to the public that
w ould result from A p p lican t’s acquisition of City
Bond are sufficient to ou tw eigh any p ossib le ad
verse effects on the public interest that m ight result
from the proposed acquisition. Furthermore, there
is no ev id en ce o f record to indicate that co n su m
m ation of the proposed acquisition w ould result
in undue concentration of resources, conflicts of
interest, unsound banking practices, or other ad
verse effects.
C ity B ond directly and through subsidiaries also
holds investm ents in certain real property, an ac
tivity the Board has not determ ined to be perm is
sible for bank holding com p an ies. T herefore, C ity
Bond must d isp ose o f such real estate holdings
Law Department
417
no later than tw o years from the effectiv e date of
this O rder .H City Bond also holds an interest in
ex cess of five per cent and m anages an u n com
pleted m ob ile hom e park, and is thereby engaged
in real estate developm ent and property m anaging,
activities w hich the Board has determ ined are not
perm issible for bank holding com panies. A p p li
cant has stated that on or before consum m ation
of the subject proposal, City B ond w ill reduce its
interest in the m ob ile hom e park to 5 per cent
or less and cease its m anagem ent and d evelopm ent
activities w ith respect to the m obile hom e park.
Finally, in servicin g loans for institutional in v e s
tors, C ity Bond is obligated by contract to m anage
the property in the event o f default by the bor
row er, and C ity Bond is currently m anaging se v
eral of such properties. H ow ever, A pplicant has
stated that upon consum m ation o f the proposed
acquisition, it w ill cause C ity Bond to obtain the
services of a property manager to maintain and
m anage any such defaulted property.
B ased upon the above and upon other facts of
record, the Board has determ ined that the balance
of the public interest factors the Board is required
to consider under section 4 (c )(8 ) is favorable.
A ccord in gly, the application is hereby approved
subject to the conditions that C ity Bond divest its
interest in CM I and cease its advisory activities
prior to consum m ation of the proposed acquisition,
that it d ispose o f the real estate holdings no later
than tw o years from the effectiv e date o f this
Order, that it reduce its interest in the m obile hom e
park to no more than 5 per cent on or before
consum m ation of this proposal, and that it cease
all im perm issible property m anagem ent activities
on or before consum m ation of this proposal. This
determ ination is also subject to the conditions set
forth in section 2 2 5 .4 (c ) of R egulation Y and to
the B oard’s authority to require such m odification
or term ination of the activities of a holding c o m
pany or any o f its subsidiaries as the Board finds
necessary to assure com p lian ce w ith the p rovisions
and purposes of the A ct and the B oard’s regula
tions and orders issued thereunder, or to prevent
evasion thereof. The transaction shall be made not
later than three m onths after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal R eserve Bank
of Kansas C ity.
The Brantley C om pany, In c ., B lackshear,
G eorgia ( “ B ran tley” ) has requested a prior certif
ication pursuant to section 1 101(b) o f the Internal
R evenue C ode ( “ C o d e ” ), as am ended by section
2(a) o f the Bank H olding C om pany Tax A ct of
1976, that its proposed divestiture of 8 ,3 6 0 shares
of The Blackshear Bank, B lackshear, G eorgia
( “ B an k ” ), presently held by B rantley, through the
pro rata distribution of such shares to the share
holders o f Brantley, is necessary or appropriate
to effectuate the p o licies o f the Bank H olding
C om pany A ct (12 U .S .C . § 1841 et seq.) ( “ BHC
A c t” ).
In connection with this request, the fo llo w in g
inform ation is d eem ed relevant, for purposes o f
issuing the requested certification:1
1. Brantley is a corporation organized under the
law s o f the State o f G eorgia on April 6 , 1891.
2. Brantley first acquired a substantial portion
of B ank’s outstanding voting shares in 1891. A s
of February 2 0 , 1957, Brantley ow n ed and co n
trolled 4 2 8 shares, representing 4 2 .8 per cent of
the outstanding voting shares, of Bank. A dditional
shares of Bank w ere subsequently acquired
through stock dividends and som e Bank shares
were sold such that on July 7 , 1970, B rantley held
836 shares, representing 4 1 .8 per cent o f the
outstanding voting shares of Bank. Brantley pur
chased 20 shares of Bank on July 2 7 , 1970, and
on July 19, 1971, one share o f Bank w as issued
to B an k ’s shareholders for every one share o f stock
then outstanding. On July 3 0 , 197 6 , five shares
of Bank w ere issued to B an k ’s shareholders in
In accom plishing a divestiture of such property, Applicant
has indicated its w illin gness to transfer irrevocably the subject
real estate to an independent trustee w ho shall have the duty
of divesting the property within the applicable time period.
1
This information derives from B rantley’s correspondence
with the Board concerning its request for this certification,
B rantley’s R egistration Statement filed with the Board pursuant
to the BHC A ct, and other records of the Board.
B y Order o f the Board o f G overnors, effectiv e
April 2 5 , 1978.
Voting for this action: Chairman M iller and G over
nors W allich, C oldw ell, Jackson, and Partee. Absent
and not voting: Governor Gardner.
(S ign ed ) G r i f f i t h L. G
[s e a l ]
arw ood
,
Deputy Secretary of the Board.
C e r t if ic a t io n s P u r s u a n t
to t h e
B a n k H o l d in g C o m p a n y T a x A ct
of
1976
The Brantley C om pany, In c.,
Blackshear, G eorgia
[D ocket N o. TCR 7 6 -1 3 4 ]
418
Federal R eserve Bulletin □ May 1978
exchange for every one share o f stock then ou t
standing. Im m ediately thereafter, Bank issued
5 ,0 0 0 additional shares o f stock in order to in
crease its capital. N o n e of these shares were ac
quired by Brantley. T hus, Brantley now holds
8 ,5 6 0 shares, representing 3 4 .2 4 per cent o f the
outstanding voting shares, o f B a n k .2
3. Brantley b ecam e a bank holding com pany
on D ecem ber 3 1 , 1971, as a result o f the 1970
A m endm ents to the B H C A ct, by virtue o f its
ow nership and control at that tim e o f more than
25 per cent of the outstanding voting shares of
B ank, and it registered as such w ith the Board
on M ay 2 1 , 1971. Brantley w ould have been a
bank holding com pany on July 7 , 1970, if the BH C
A ct A m endm ents o f 1970 had been in effect on
such date, by virtue o f its ow nership and control
on that date o f m ore than 25 per cent of the
outstanding votin g shares of Bank.
4. Brantley holds property acquired by it on or
before July 7 , 1970, the disp osition o f w h ich , but
for clause (ii) o f section 4 (c) of the BH C A ct and
the proviso of section 4 (a )(2 ) o f that A ct, w ould
be necessary or appropriate to effectuate section
4 of the BHC A ct, if Brantley w ere to continue
to be a bank holding com pany beyond D ecem ber
31 , 1980, and w hich property, but for such clause
and such p roviso, w ould be “ prohibited property”
w ithin the m eaning o f section 1 103(c) of the C ode.
Sections 1103(g) and 1103(h) of the C ode provide
that any bank holding com pany m ay ele c t, for
purposes o f Part VIII o f subchapter 0 o f chapter
1 of the C ode, to have the determ ination whether
property is “ prohibited property” , or is property
eligib le to be distributed w ithout recognition of
2
Under subsection (c) of section 1101 of the C ode, property
acquired after July 7 , 1970, generally does not qualify for the
tax benefits o f section 1 101(b) w hen distributed by an otherw ise
qualified bank holding com pany. H ow ever, where such prop
erty was acquired by a qualified bank holding com pany in a
transaction in w hich gain was not recognized under section
305(a) of the C ode or section 368(a)(1)(E ) of the C ode, then
section 1101(b) is applicable. Brantley has indicated that the
shares o f Bank acquired on July 19, 1971, and June 3 0 , 1976,
were acquired in transactions in w hich gain was not recognized
under section 305(a) and section 36 8 (a )(1 )(E ), respectively,
of the C ode. A ccordingly, even though such shares were
acquired after July 7 , 1970, those shares w ould nevertheless
qualify as property eligib le for the tax benefits provided in
section 1101(b) o f the A ct, by virtue of section 1101(c), if
the shares o f Bank were in fact received in a transaction in
w hich gain was not recognized under sections 305(a) or
368(a)(1)(E ) o f the C ode.
Of the total 8 ,5 6 0 shares o f Bank presently held by Brantley,
200 shares represent property acquired after July 7 , 1970, for
w hich none o f the exem ptions provided in section 1 101(c) of
the C ode appears to be available. Brantley has represented that
it w ill divest these shares of Bank through the sale o f such
shares.
gain under section 1101(b )(1) of the C od e, m ade
under the B H C A ct as if that A ct did not contain
clause (ii) of section 4 (c) or the proviso o f section
4 (a )(2 ). B rantley has represented that it w ill m ake
such an e le c tio n .3
5.
Brantley has com m itted to the Board that it
w ill term inate all interlocking relationships b e
tw een Brantley and Bank by July 1, 1978.
On the basis o f the foregoin g inform ation, it
is hereby certified that:
(A ) Brantley is a qualified bank holding cor
poration, w ithin the m eaning o f section 1103(b)
o f the C o d e, and satisfies the requirem ents of that
section;
(B ) the 8 ,3 6 0 shares o f Bank that Brantley
proposes to distribute to its shareholders are all
or part o f the property by reason of w hich Brantley
controls (w ithin the m eaning o f section 2(a) o f the
BHC A ct) a bank or bank holding com pany; and
(C) the distribution o f such 8 ,3 6 0 shares is
necessary or appropriate to effectuate the p o licies
of the BH C A ct.
This certification is based upon the repre
sentations m ade to the Board by Brantley and upon
the facts set forth above. In the event the Board
should hereafter determ ine that facts material to
this certification are otherw ise than as represented
by B rantley, or that Brantley has failed to d isclo se
to the Board other material facts, it m ay revoke
this certification. This certification is granted upon
the condition that after July 1, 1978, no person
holding an office or position (including an advisory
or honorary p osition ) w ith Brantley or any o f its
subsidiaries as a director, p olicym ak in g em p loyee
or consultant, or w ho perform s (directly or through
an agent, representative or nom inee) functions
com parable to those norm ally associated with such
office or p osition , w ill hold any such office or
p osition or perform any such function w ith Bank
or any o f its subsidiaries, and is also conditioned
upon B ran tley’s m aking the election s required by
section s 1 103(g) and 1 103(h) of the C ode at such
tim e and in such manner as the Secretary o f the
Treasury or his delegate m ay by regulation pre
scribe.
B y order o f the Board o f G overnors, acting
through its A ctin g General C ou n sel, pursuant to
5
Sections 1103(g) and 1103(h) of the C ode require that an
election thereunder be made “ at such tim e and in such manner
as the Secretary [of the Treasury] or his delegate may by
regulations p rescribe.” A s of this date no such regulations have
been promulgated.
Law Department
delegated authority, (12 CFR § 2 6 5 .2 (b )(3 )), e f
fective April 3, 1978.
(Sign ed ) G r i f f i t h L. G a r w o o d ,
[s e a l ]
Deputy Secretary of the Board.
UniC apital Corporation,
Atlanta, G eorgia
[D ocket N o. TCR 7 6 -1 4 8 ]
U niC apital
Corporation,
A tlanta,
G eorgia
( “ U niC apital” ), has requested a prior certification
pursuant to section 6 1 5 8 (a ) o f the Internal R evenue
C ode ( “ C o d e” ), as added by section 3(a) of the
Bank H olding C om pany Tax A ct of 1976 ( “ Tax
A c t” ), that its sale on Septem ber 12, 1977, of
5 5 ,8 9 6 shares of The First N ational Bank o f Cape
Canaveral, Cape C anaveral, Florida ( “ B an k ” ), to
First Bankers Corporation o f Florida, Pom pano
B each , Florida ( “ First B ankers” ), w as necessary
or appropriate to effectuate the p o licies o f the Bank
H olding C om pany A ct (12 U .S .C . § 1841 et seq.)
( “ BH C A c t” ). U niC apital has also requested a
final certification pursuant to section 6 1 5 8 (c )(2 ) of
the C od e, as added by section 3(a) of the Tax
A ct, that it has (before the expiration of the period
prohibited property is perm itted under the BHC
A ct to be held by a bank h olding com pany) ceased
to be a bank holding com pany.
In con nection with these requests, the fo llo w in g
inform ation is deem ed relevant for purposes o f
issuing the prior and final certification:1
1. U nited Stated Finance C om pany, In c ., A t
lanta, G eorgia ( “ F in an ce” ), w as a corporation
organized under the law s o f the State o f G eorgia
on February 19, 1958. U niC apital is a corporation
organized under the law s of the State of D elaw are
on M ay 9, 1969.
2. On February 2 9 , 1968, F inance, through its
w h olly-ow n ed subsidiary Security Financial C or
poration ( “ S ecu rity” ), held indirect ow nership
and control o f approxim ately 94 per cent of the
outstanding voting shares of Bank. On June 13,
1969, Finance w as m erged into U niC apital, a
corporation having no business or subsidiaries, and
U niC apital thereby acquired indirect ow nership
and control o f Bank.
3. U niC apital b ecam e a bank holding com pany
on D ecem b er 3 1 , 1970, as a result of the 1970
A m endm ents to the BH C A ct, by virtue o f its
1
This information derives from U niC apital’s corre
spondence with the Board concerning its request for this
certification, U niC apital’s Registration Statement filed with the
Board pursuant to the BHC A ct, and other records of the Board.
419
direct ow nership and control at that tim e of more
than 25 per cent of the outstanding voting shares
of Security, and by virtue of its indirect ow nership
and control at that tim e, through Security, of m ore
than 25 per cent o f the outstanding votin g shares
of B ank, and it registered as such w ith the Board
on July 2 1 , 1 9 7 1 .2 U niC apital w ou ld have been
a bank holding com pany on July 7 , 1970, if the
BH C A ct A m endm ents of 1970 had been in effect
on such date, by virtue of its direct and indirect
ow nership and control on that date o f m ore than
25 per cent of the outstanding votin g shares of
Security and Bank resp ectively.
4. On Septem ber 12, 1977, U niC apital held
property acquired by it on or before July 7 , 1970 ,
the disp osition o f w hich w ould be necessary or
appropriate to effectuate section 4 of the B H C A ct
if U niC apital w ere to remain a bank holding c o m
pany beyond D ecem b er 3 1 , 1980, and w hich
property is “ prohibited property” w ithin the
m eaning of section s 6 1 5 8 (f)(2 ) and 1 103(c) o f the
C ode.
5. On Septem ber 12, 1977, U niC apital sold all
of the 5 5 ,8 9 6 shares of Bank ow n ed by it, repre
senting 9 6 .1 per cent o f the outstanding voting
shares o f B ank, to First Bankers for $ 1 ,9 3 5 ,6 7 8
in cash.
6. N either U niC apital nor any subsidiary o f
U niC apital holds any interest in First B ankers,
Bank, or in any other bank or any com pany that
controls a bank.
7. N either First Bankers nor any subsidiary o f
First B ankers, including B ank, h olds any interest
in UniCapital or any subsidiary o f U niC apital.
8. N o officer, director (including honorary or
advisory director) or em p lo y ee w ith p olicy-m ak in g
functions of U niC apital or any subsidiary o f U n i
Capital also holds any such position w ith First
Bankers, or any subsidiary o f First Bankers, in
cluding B ank, or w ith any other bank or any
com pany that controls a bank.
9. U niC apital d oes not control in any manner
the election o f a majority o f directors, or exercise
a controlling influence over the m anagem ent or
p o licies, of First Bankers or any subsidiary of First
Bankers, incuding B ank, or o f any other bank or
com pany that controls a bank.
2
Security sim ilarly becam e a bank holding com pany on
Decem ber 31, 1970, as a result of the 1970 A m endm ents to
the BHC A ct, by virtue of its direct ow nership and control
of more than 25 per cent of the outstanding voting shares of
Bank, and it registered as such with the Board on July 16,
1971.
Federal R eserve Bulletin □ May 1978
420
On the basis of the foregoin g inform ation, it
is hereby certified that:3
(A ) at the tim e of its sale of 5 5 ,8 9 6 shares of
Bank to First B ankers, U niC apital w as a qualified
bank holding com p an y, w ithin the m eaning of
section 6 1 5 8 (f)(1 ) and section 1103(b) of the
C od e, and satisfied the requirem ents o f those s e c
tions;
(B ) the shares of Bank that U niC apital sold to
First Bankers w ere all or part o f the property by
reason of w hich U niC apital controlled (w ithin the
3
Pursuant to section 6 1 58(a) of the C ode, with respect to
the sale of bank property, the Board must certify before such
sale that the sale is necessary or appropriate to effectuate the
policies of the BHC A ct. UniCapital requested such certifi
cation by letter dated A ugust 9, 1977. On that date, the
application of First Bankers to acquire U niC apital’s interest
in Bank was approved by the Federal Reserve Bank of Atlanta
acting pursuant to delegated authority. At that tim e, UniCapital
inform ed the Board of its intention to sell the shares of Bank
in Septem ber 1977. UniCapital clearly met the requirements
for a prior certification at the tim e it filed the request and at
the tim e of the sale of the shares of Bank on Septem ber 21,
1977. The issuance o f this certification is based, in part, upon
such circum stances.
m eaning of section 2(a) o f the BH C A ct) a bank
or bank holding com pany;
(C) the sale o f the shares o f Bank w as necessary
or appropriate to effectuate the p o licies of the BH C
Act;
(D ) U niC apital has (before the expiration o f the
period prohibited property is permitted under the
BHC A ct to be held by a bank holding com pany)
ceased to be a bank holding com pany.
This certification is based upon the repre
sentations m ade to the Board by U niC apital and
upon the facts set forth above. In the event the
Board should hereafter determ ine that facts m ate
rial to this certification are otherw ise than as re
presented by U niC apital, or that U niC apital has
failed to d isclo se to the Board other material facts,
it m ay revoke this certification.
B y order of the Board of G overnors, acting
through its A cting General C ounsel pursuant to
delegated authority (12 CFR § 2 6 5 .2 (b )(3 )), e f
fective M arch 3 1 , 1978.
(S ign ed ) G r i f f i t h L. G a r w o o d ,
Deputy Secretary of the Board.
[s e a l ]
O R D E R S A P P R O V E D U N D E R B A N K H O L D IN G C O M P A N Y A C T
By
the
B oard
of
G overnors
During April 1978, the Board o f G overnors approved the applications listed b elo w . C opies are available
upon request to Publications S erv ices, D iv isio n of A dm inistrative S erv ices, Board of Governors o f
the Federal R eserve S ystem , W ashington, D .C . 2 0 5 5 1 .
Section 3
Applicant
Bank of M ontana S ystem ,
Great F alls,
M ontana
Central N ational C orporation,
R ichm ond,
V irginia
First B ancorp, In c.,
C orsicana, T exas
First G ridley B anCorporation,
In c., G ridley,
Illinois
Bank(s)
M idstate Bank of
M ontana, L ew isto w n ,
M ontana
The C itizens N ational
Bank of Em poria,
Em poria, V irginia
C lifton Bank, C lifton,
T exas
First Bank & Trust C o.
o f G ridley, G ridley,
Illinois
Board action
(effective
date)
4 /1 7 /7 8
4 /2 8 /7 8
4 /1 9 /7 8
4 /1 9 /7 8
Law Department
421
Section 3— C ontinued
Applicant
First Steuben B ancorp, In c.,
T oronto,
O hio
U nited M ichigan Corporation,
Flint,
M ichigan
O rder A
pproved
C om m unity National
Bank, F lushing,
O hio
C om m unity State Bank
o f F ow lerville,
F o w lerv ille, M ichigan
U nder B ank M
4 /2 6 /7 8
4 /2 8 /7 8
A ct
erger
Applicant
M etropolitan Bank and Trust
C om pany, Tam pa, Florida
Board action
(effective
date)
Bank(s)
Bank(s)
A m erican Guaranty Bank,
Tam pa, Florida
Reserve
Bank
Effective
date
Atlanta
4 /2 7 /7 8
B y F ed er a l R eserve B a nk s
R ecent applications have been approved by the Federal R eserve Banks as listed b elo w . C opies of
the orders are available upon request to the R eserve Banks.
Section 3
Applicant
First M issouri B anks,
In c., C reve C oeur,
M issouri
Bank(s)
M ontgom ery County Bank,
M ontgom ery C ity,
M issouri
Reserve
Bank
Effective
date
St. Louis
4 /2 8 /7 8
Reserve
Bank
Effective
date
C leveland
4 /6 /7 8
Section 4
Nonbanking
company
(or activity)
Applicant Bank(s)
B ancO hio Corporation,
C olum bus,
O hio
Franklinton
A ssurance
C om pany,
P hoenix,
An
o
422
Federal R eserve Bulletin □ May 1978
P E N D IN G C A S E S IN V O L V IN G T H E B O A R D O F G O V E R N O R S *
Hawkeye Bancorporation v. Board of Governors,
filed April 1978, U .S .C .A . for the Eighth Cir
cuit.
Dakota Bankshares, Inc. v. Board of Governors,
filed April 1978, U .S .C .A . for the Eighth Cir
cuit.
Citicorp v. Board of Governors, filed M arch 1978,
U .S .C .A . for the S econd Circuit.
Security Bancorp and Security National Bank v.
Board of Governors, filed M arch 1978,
U .S .C .A . for the N inth Circuit.
Michigan National Corporation v. Board of G ov
ernors, filed January 1978, U .S .C .A . for the
Sixth Circuit.
Wisconsin Bankers Association v. Board of G ov
ernors, filed January 1978, U .S .C .A . for the
District of C olum bia.
Gelfand v. Board of Governors, filed D ecem ber
1977, U .S .C .A . for the Fifth Circuit.
Vickars-Henry Corp. v. Board of Governors, filed
D ecem ber 1977, U .S .C .A . for the Ninth Cir
cuit.
Emch v. The United States of America, et al.,
filed N ovem ber 1977, U .S .D .C . for the Eastern
District of W iscon sin .
Corbin v. Federal Reserve Bank of N ew York,
Board of G overnors, et a l., filed October 1977,
U .S .D .C . for the Southern D istrict o f N ew
York.
Central Bank v. B oard of Governors, filed O c
tober 1977, U .S .C .A . for the D istrict o f C o
lum bia.
Investment Company Institute v. Board of G over
nors, filed Septem ber 1977. U .S .C .A . for the
District of C olum bia.
Plaza Bank of West Port v. Board of Governors,
filed Septem ber 1977, U .S .C .A . for the Eighth
Circuit.
First State Bank of Abilene, Texas v. Board of
Governors, filed A ugust 1977, U .S .C .A . for the
D istrict of C olum bia.
BankAmerica Corporation v. Board of G over
nors, filed M ay 1977, U .S .D .C . for the N orth
ern D istrict o f C alifornia.
BankAmerica Corporation v. Board of G over
nors, filed M ay 1977, U .S .C .A . for the Ninth
Circuit.
Central Wisconsin Bankshares, Inc. v. Board of
Governors, filed June 1976, U .S .C .A . for the
Seventh Circuit.
National Urban League, et al. v. Office of the
Comptroller of the Currency, et al., filed April
1976, U .S .D .C . for the D istrict o f C olum bia
Circuit.
Memphis Trust Company v. Board of Governors,
filed February 1976, U .S .D .C . for the W estern
D istrict of T en n essee.
First Lincolnwood Corporation v. Board of G ov
ernors, filed February 1976, U .S .C .A . for the
Seventh Circuit.
Roberts Farms , Inc. v. Comptroller of the Cur
rency, et al., filed N ovem ber 1975, U .S .D .C .
for the Southern D istrict of C alifornia.
Florida Association of Insurance Agents, Inc. v.
Board of Governors, and National Association
of Insurance Agents, Inc. v. Board of G over
nors, filed A ugust 1975, actions consolidated
in U .S .C .A . for the Fifth Circuit.
David R. Merrill, et al., v. Federal Open Market
Committee of the Federal Reserve System, filed
M ay 1975, U .S .D .C . for the D istrict of C olu m
bia.
Bankers Trust N ew York Corporation v. Board
of Governors, filed M ay 1973, U .S .C .A . for
the S econd Circuit.
*This list of pending cases does not include suits against
the Federal R eserve Banks in w hich the Board of Governors
is not named a party.
423
Announcements
CHANGE
IN
D IS C O U N T
RATE
The Board of G overnors of the Federal R eserve
System has announced its approval o f actions by
the directors o f the 12 Federal R eserve Banks,
increasing the discount rate o f those Banks from
6 V2 per cent to 7 per cent.
A ction was taken in recognition o f increases that
have already occurred in other short-term interest
rates, and this action w ill bring the discount rate
into closer alignm ent with short-term rates gen er
ally.
The discount rate is the interest rate that m em ber
banks are charged w hen they borrow from their
district Federal R eserve Banks.
The new rate w as effectiv e at the Federal R e
serve Banks of N ew Y ork, Philadelphia, C le v e
land, R ichm ond, A tlanta, C h icago, St. L ouis,
M inneapolis, K ansas C ity, and San Francisco on
M ay 11, 1978, and at the R eserve Banks o f B oston
and D allas on M ay 12, 1978.
NEW
TYPES
O F T IM E
C E R T IF IC A T E S
Under action announced jointly by the Federal
Flome Loan Bank Board, the Federal D ep osit
Insurance C orporation, and the Federal R eserve
Board, com m ercial banks, mutual savings banks,
and savings and loan association s w ill be allow ed
to offer their custom ers tw o new types o f tim e
certificates at interest rates higher than those pres
ently permitted.
The action, w hich is effective June 1, w ill
provide more flexibility for financial institutions
to com pete for funds to assure an adequate flow
of credit into housing and to m eet other borrow ing
needs.
The tw o instruments are (1) a short-term m oney
market certificate with a ceilin g interest rate that
changes w eek ly for new deposits with changes in
the average yield on new issues of 6-m onth T reas
ury b ills, and (2) an 8-year certificate with a fixed
m axim um rate of interest.
Interest rates available on Treasury securities in
the open market now ex ceed the m axim um rates
that banks and savin gs and loan association s are
permitted to pay on com parable deposit maturities.
The tw o new certificates w ill provide these insti
tutions w ith the tools to b ecom e m ore com p etitive
with interest rates in the open market.
The action by the Federal H om e Loan Bank
Board applies to m em bers o f the Federal H om e
Loan Bank S ystem , principally Federally insured
savings and loan associations; that o f the Federal
D ep osit Insurance Corporation to Federally in
sured mutual savin gs banks and com m ercial banks
that are not m em bers o f the Federal R eserve S y s
tem; and that of the Federal R eserve to com m ercial
banks that are m em bers o f the Federal R eserve
S ystem , including all national banks.
The announcem ent w as made after consultation
am ong the three agen cies and w ith the U .S .
Treasury Department and the Com ptroller of the
Currency.
N o change w as m ade in the rates on passbook
savings nor in the m axim um perm issible rates that
may be paid by banks or savin gs and loan a sso c i
ations on tim e deposits ranging from 30 days to
less than 8 years.
The main features o f the tw o n ew instruments
are:
1.
M oney market certificates w ill have m any
of the characteristics of a 6-m onth Treasury b ill.
T hey must be issued in m inim um denom inations
o f $ 1 0 ,0 0 0 w ith a 6-m onth (2 6 -w eek ) maturity.
The m axim um perm issible rate o f interest that m ay
be paid w ill be tied to the average (auction) yield
for the 6-m onth Treasury bill in the m ost recent
w eek ly auction.
Treasury b ills are auctioned w e e k ly , norm ally
on M onday, and are issued three business days
later, norm ally on Thursday. The ceilin g rate on
the m oney market certificates— w hich are nonnegotiable— w ill be adjusted each w eek effectiv e on
the day the new 6-m onth bills are issued. C om
mercial banks m ay pay a rate not to ex ceed the
auction average (auction average on a discount
b asis), and savin gs and loan association s and m u
tual savings banks may pay lA of 1 per cent m ore.
If a holiday falls on M onday, the auction is held
the previous Friday.
The average yield on Treasury bills is an
424
F ederal R e se r v e B u lle tin □ M a y 1978
nounced by the Treasury D epartm ent late in the
day of the auction. The average yield on 6-m onth
Treasury b ills auctioned M ay 8, 1978, w as 6 .9 8 6
per cent. Since institutions may offer this new
certificate for the first tim e beginning June 1, the
ceilin g rate w ill be p egged initially to the Treasury
bill auction to be held Friday, M ay 26.
2.
Long-term certificates may be issued in m in
imum denom inations of $ 1,000 with maturities of
8 years or more at a m axim um rate of 7% per
cent for com m ercial banks and 8 per cent for
savings and loan association s and mutual savings
banks.
The introduction of an 8-year fixed -ceilin g cer
tificate w ill not on ly add to the ability of financial
institutions to com pete more effectiv ely for funds
but w ill also have the advantage of lengthening
the deposit structure o f institutions, thus contri
buting to greater stability in the cost and a v ail
ability of funds.
Both the m oney market certificate and the new
long-term certificate are subject to existin g pen al
ties for early w ithdraw al, nam ely a loss of 9 0 d a y s’
interest and the paym ent of any rem aining interest
at the passbook rate. A ll issuing institutions, h o w
ever, are permitted to lend on the collateral of their
tim e d ep osits, so long as the loan carries an interest
rate at least 1 per cent higher than the rate being
paid on the deposit pled ged .
A s a result of the joint action, the m axim um
perm issible rate that m ay be paid by all depositary
institutions on new deposits of governm ental units
and individual retirement and K eogh Plan accounts
w ill m ove to 8 per cent. This ceilin g rate is fixed
at the highest rate a Federally insured bank or
savings and loan may pay on tim e deposits with
maturities of more than 6 m onths (26 w eek s).
Rates on existin g governm ental, individual retire
m ent, and K eogh Plan accounts may not be in
creased until they mature.
R E G U L A T IO N
Q : A m end m en t
The Board o f G overnors on M ay 1, 1978, ap
proved a plan that w ill permit individual custom ers
of mem ber banks to transfer funds autom atically
from their savings to their check in g accounts.
M em ber banks may offer the new service b e
ginning N ovem ber 1, 1978. It w ill increase the
con ven ien ce and efficiency of savings accounts and
can be used to cover ch eck in g overdrafts or to
maintain a m inim um level of funds in a ch eck in g
account.
The Board said that it w ill c lo se ly monitor the
flow of funds to thrift institutions and to banks
after autom atic transfer b eco m es e ffectiv e, to d e
termine w hat, if any, changes take place as a result
of the action.
Autom atic transfers w ill be possible only if
arrangements are made in advance betw een the
bank and the custom er. U se of the service w ill
be entirely voluntary on the part of the custom er.
Banks w ill be perm itted, but not required, to offer
the service.
The Board acted after ex ten siv e review of a
record number o f responses— 1 ,3 8 0 — to its pro
posal of the autom atic transfer plan issued in early
February. A majority of 721 (52 per cent) o f the
individuals, groups, governm ental ag en cies, and
institutions responding favored the proposal.
C ustom ers m aking autom atic transfer arrange
ments with their banks can avoid the substantial
fees banks usually charge for overdraft ch eck s.
S im ilarly, custom ers using the service w ill be able
to keep ch eck in g accounts at a pre-determ ined
level to avoid check service charges. Participating
d epositors, as w ell as m erchants and others to
w hom overdraft checks are written, can avoid the
em barrassm ent o f having such ch eck s returned.
The autom atic transfer service w ill be an alter
native for depositors in m em ber banks to tw o
services already permitted under Board rules:
transfers from savin gs by telephone and preauth
orized bill paym ent. It w ill also be an alternative
to plans under w hich banks autom atically make
loans to cover cu stom ers’ ch eck s.
The principal features o f the autom atic transfer
service plan adopted by the Board are as fo llo w s:
1. C ustom ers of banks offering arrangements
for the autom atic transfer o f funds from savings
to check in g accounts may make an agreem ent with
their bank for the transfer o f funds to cover their
checks or to maintain a pre-determ ined amount in
their ch eck in g account. This m eans that w ithout
further instructions funds may be withdrawn from
savings accounts and transferred to check in g ac
counts to pay for ch eck s for w hich there are
insufficient funds in the cu stom ers’ checking ac
counts.
2. N o penalty— such as a forfeiture of interest
or a service charge— w ill be required for autom atic
transfers, at least initially. The Board said, h o w
ever, that com p etitive and other d evelop m en ts w ill
remain under continuing review and w ill be c o n
sidered again by the Board no later than N ovem ber
1, 1979— a year after the effectiv e date.
3. The service w ill be available on ly to indi
viduals.
4. A utom atic transfer service may be offered
Announcements
beginning N ovem ber 1, 1978. Banks w ill therefore
have a reasonable period to evaluate the costs and
benefits of the autom atic transfer service and to
prepare for an orderly introduction of the service,
including possible service charges.
5. The service w ill be entirely voluntary on the
part of both the bank and the custom er and may
be cancelled in accordance with the terms o f the
autom atic transfer agreem ent betw een the bank
and the custom er. N o transfers may be made
w ithout the cu stom er’s consent.
6. Participating banks are required to d isclo se
prom inently, and to call to the attention o f d ep o si
tors, the fact that the bank— as in the past— re
serves the right in an autom atic transfer plan to
require not less than 30 d a y s’ notice o f withdrawal
from savings accounts.
7. Arrangem ents may be made betw een thrift
institutions, such as savin gs and loan association s,
and m em ber banks for the autom atic transfer o f
funds from the thrift institution to ch eck in g ac
counts in the com m ercial bank.
In addition to the exp ected benefits to individ
uals, there w ill be a saving that benefits the public
at large through low er operational costs of the
Federal R eserve System due to a reduction in the
number of check s written on accounts with insuf
ficient funds. Such ch eck s must be returned to the
bank on w hich they are w ritten, and they in volve
costly hand processing and m ultiple handling.
Approval of the autom atic transfer service as
announced am ends R egulation Q (Interest on D e
posits). The Board has had the new service under
consideration since it w as first proposed in March
1976. The proposal w as revised and issued for
further com m ent in February of this year.
The proposal in February w ould have im posed
on autom atic transfers from savin gs a m inim um
forfeiture of interest equal to the amount o f interest
earned in the last 30 days on the sum transferred.
Instead, the plan adopted by the Board im poses
no penalty, at least initially.
In givin g its approval to the autom atic transfer
plan, the Board said that in its v iew the service
does not violate the prohibition against paym ent
of interest on dem and deposits since the key d is
tinction b etw een dem and and savings deposits is
preserved. T his distin ction , drawn in the B oard’s
regulation, is that a bank must reserve the right
to at least 30 d a y s’ notice prior to withdrawal o f
a savings deposit. Banks offering autom atic
transfer service are required to continue to reserve
this right.
Further, the Board said that it has given serious
consideration to com p etitive aspects, and it has
425
concluded that the autom atic transfer service w ill
not seriously affect the flow o f funds to thrift
institutions sin ce this service is lik ely to affect
m ost the d ivision o f com m ercial bank deposits
am ong savin gs and dem and d ep osits and is sim ilar
to preauthorized bill paym ent and telephone w ith
drawal services that both banks and savin gs and
loan association s are now permitted to offer.
IM P R O V E D
AN D
FUND S
C L E A R IN G
TRA N SFER S
S E R V IC E S
The Board of G overnors has authorized Federal
R eserve Banks to provide services necessary to
tie together facilities for a nationw ide network for
m aking paym ents electron ically rather than by
check.
The Board also approved other Federal R eserve
services to facilitate transfers of funds am ong
mem ber banks over a privately operated wire net
work.
The Board said it exp ects these actions to en
hance and im prove financial services to individuals
and to financial institutions; to encourage the use
of electronic m ovem ent o f funds as a more effi
cient and less co stly alternative to check paym ents;
and to stim ulate the d evelop m en t o f n ongovern
mental services that w ill low er the cost o f banking
services to the public.
The Board said that it intends to publish a
proposed schedule o f charges for autom ated clear
inghouse (A C H ) services as soon as such a sch ed
ule can reasonably be d evelop ed . It is co n tem
plated that such charges for A C H services w ill be
considered in the context o f p ossib le charges for
other R eserve Bank services. T o ach ieve equity
under such a program allow an ce m ight be made
for balances held by users at R eserve Banks.
The services approved by the Board were pro
posed for public com m ent— w hich has been fa
vorable— last D ecem ber 2 7 . T hey are:
1. Providing Federal R eserve clearing and set
tlem ent services for electronic paym ents made
through local or regional autom ated clearinghouse
associations. T his w ill permit the con n ection of
these facilities into a national network for m aking
funds transfers electron ically rather than by check.
2. Providing Federal R eserve net settlem ent
services to m em ber banks to com p lete transfers
o f funds made over a com m unications network—
known as Bankwire— ow n ed by an association of
banks.
Bankwire is operated by the Paym ent and A d
m inistrative C om m unications Corporation. It pro
426
Federal Reserve Bulletin □ May 1978
vid es transfers of funds am ong som e 2 0 0 banks
throughout the country. N et settlem ent o f B ank
wire transfers by m em ber banks w ill begin as soon
as final arrangements are com pleted.
Under the terms of the arrangement with B ank
w ire, m em ber banks w ill appoint Bankwire as their
agent. Settlem ent for funds transfers over B ank
wire w ill be m ade by crediting or debiting mem ber
bank reserve accounts. Bankwire is responsible for
supplying the inform ation needed to m ake settle
ment: net am ounts to be credited or debited to
the respective m em ber banks.
Im plem entation of the nationw ide exch an ge of
paym ents am ong A C H ’s w ill begin in M ay and
the program is exp ected to be operational by
year-end.
An automated clearinghouse association is a
local or regional association of banks and other
depositories agreeing to initiate and receive am ong
them selves electronic transfers of funds authorized
by custom ers of m em ber financial institutions.
Such electronic transfers are m ade only on behalf
of custom ers w ho request them . D epositors w ho
prefer to use ch eck s m ay continue to do so.
The Federal R eserve currently operates 32 au
tom ated clearin gh ou ses. T hese consist o f co m
puters— used also for other Federal R eserve fu n c
tions— where paym ent instructions recorded on
m agnetic tapes are sorted and cleared. The p ay
ment instructions are from custom ers of m em ber
banks and other financial institutions that are
mem bers of autom ated clearinghouse a ss o c ia tio n s.
A t present, these electronic paym ents are generally
cleared locally.
The planned nationw ide connection o f A C H ’s
w ill m ake p ossib le the interchange of electronic
paym ents by som e 9 ,0 0 0 banks and 1,000 thrift
institutions that are m em bers o f the National A u
tom ated Clearing H ouse A ssociation . W hen the
linkage has been m ade, a m em ber bank or other
financial institution that is a mem ber of an auto
mated clearinghouse association — for instance, in
D allas— w ill be able to present paym ent instruc
tions on m agnetic tape to the nearest Federal
R eserve B ank’s electronic clearinghouse. Such
tapes bear instructions to m ake paym ents to finan
cial institutions that are m em bers of autom ated
clearinghouse association s in other parts o f the
N ation. The Federal R eserve Bank that receives
the electronically recorded paym ent instructions
w ill sort them and forward them to their d estina
tions.
T his parallels the sorting and forw arding of
paym ent instructions recorded on ch eck s. But the
electron ically recorded paym ent instructions w ill
be forwarded over the Federal R eserv e’s c o m
m unications system rather than by mail or courier.
The Federal R eserve office serving the area
w here paym ents are destined to be m ade— for
instance, the San Francisco Federal R eserve
Bank— w ill sort and forward the paym ent instruc
tions to the indicated depositories. The d e p o si
tories in volved — in this exam p le, m em bers of the
D allas and the San Francisco clearinghouse a sso
ciations— w ill debit the accounts of the custom ers
w ho are m aking paym ents and credit the accounts
of custom ers receivin g paym ents.
T w o recently initiated programs paved the w ay
for and dem onstrated the feasib ility of such inter
district electronic paym ents. One is the on g o in g
Treasury program for direct deposit of recurring
Federal paym ents. The other program w as a pilot
test of interregional electronic paym ent transfers
conducted during m ost o f last year by the Federal
R eserve and the National Autom ated C learing
H ouse A ssociation .
The program approved by the Board d oes not
alter the T reasury’s direct deposit program.
NEW
CO NSUM ER
PAM PH LET
Truth in Leasing , the latest in a series of consum er
education pam phlets, is now available for public
distribution.
The pam phlet g iv es a sim plified explanation of
the C onsum er L easing A ct, w hich w as intended
to help consum ers com pare the cost o f one lease
with another or with the cost o f buying for cash
or on credit. It also covers the la w ’s lim its on
balloon paym ents under open-end leases and the
regulation of lease advertising.
C op ies o f Truth in Leasing may be obtained,
singly or in bulk, free of charge from the Board
of G overnors in W ashington or from any o f the
12 Federal R eserve Banks. R equests should be
addressed to the B oard’s Publications Services or
to the Publication Departm ents at any of the F ed
eral R eserve Banks.
U N IF O R M
R A T IN G
IN T E R A G E N C Y
SY STEM
FOR
BANKS
The three Federal bank regulatory agen cies have
adopted a uniform interagency system for rating
the condition and soundness of the N a tio n ’s c o m
m ercial banks.
The new rating system is being im plem ented
by the Federal D ep osit Insurance Corporation (for
Announcements
insured State-chartered banks that are not m em bers
of the Federal R eserve S y stem ), by the Board of
Governors of the Federal R eserve System (for
State-chartered m em ber banks), and by the Office
of the Com ptroller o f the Currency (for national
banks).
The new U niform Interagency Bank Rating
S ystem has tw o main elem ents:
1. An assessm en t by Federal bank exam iners
of five critical aspects o f a bank’s operations and
condition. T hese are: adequacy o f the bank’s cap
ital; the quality of the bank’s assets (its loans and
investm ents); the ability of the bank’s m anagem ent
and adm inistration; the quantity and quality of the
bank’s earnings; and the level of its liquidity.
2. A com bination o f these basic factors into a
com p osite— over-all— rating o f the bank’s co n d i
tion and soundness. Banks w ill be placed in one
of five groups, ranging from banks that are sound
in alm ost every respect to those with e x c e ssiv e
w eak n esses requiring urgent aid.
The agen cies agreed upon the qualitative char
acteristics that w ould place a bank in one or
another of the five over-all groups, with com p osite
rating group 1 being the best and group 5 being
the w eakest.
Until adoption o f the uniform rating system the
three agen cies used system s with technical d if
ferences that made difficult m eaningful reporting
to the C ongress on the over-all soundness of the
N ation ’s banking system .
It is expected that agreem ent on what factors
constitute the main characteristics of a bank’s
condition and soundness and on how these factors
should be com bined into an over-all rating w ill
provide a basis for com parable judgm ents by
supervisors about all Federally insured banks.
The Federal D ep osit Insurance Corporation has
indicated that it w ill continue to maintain its e x ist
ing problem bank list for insurance exposure pur
poses.
R E G U L A T IO N S
D
AN D
Q:
A m e n d m en ts
The Board of G overnors has am ended R egulation
D (R eserves o f M em ber Banks) and R egulation
Q (Interest on D ep osits) to facilitate the partici
pation of m em ber banks in a new ly announced
Treasury program for the handling o f its funds in
com m ercial banks and other depositories.
The new Treasury tax-and-loan investm ent pro
gram is designed to permit the Treasury to earn
.interest on its funds in com m ercial banks. Pre
A ll
v io u sly , these funds— w hich can be withdrawn at
any tim e by the Treasury— have been treated as
demand d ep o sits, w hich m ay earn no interest.
The Treasury tax-and-loan investm ent program
w ill enable the Treasury to invest its non-interestbearing funds in interest-bearing notes o f c o m
m ercial banks.
The Board has am ended its rules to provide that
such notes w ill not be regarded as d ep osits subject
to R egulation D or to R egulation Q.
The B oard’s action w ill be effectiv e on July 6,
1978, as w ill the T reasury’s tax-and-loan in vest
ment program.
R E G U L A T IO N S
G, T, AN D
U:
A m en d m en t
The Board o f G overnors has am ended its require
ments for inclusion of stocks in the B oard’s list
of over-the-counter (O TC ) stocks that are subject
to margin requirem ents.
The am endm ents to R egulations G , T , and U
(Securities Credit by Persons other than B anks,
B rokers, or D ealers; Credit by Brokers and
Dealers; and Credit by Banks for the Purpose o f
Purchasing or Carrying M argin S tock s) w ill affect
the next list of OTC margin stocks that is exp ected
to be published this fall by the Board.
The am endm ent requires that if a stock is to
be included in the B oard’s OTC list, at least four
dealers in it must regularly subm it bona fide bids
and offers for the stock to an autom ated quotation
system , such as the National A ssociation o f S e
curities D ealers A utom ated Q uotation System that
links major brokers throughout the country. For
the listing to be continued, three dealers must
regularly subm it such bids and offers.
P reviously, stocks included on the list w ere
those for w hich dealers regularly published bona
fide bids and offers.
The Board had announced a proposal to make
this change on March 14. S in ce com m ent w as
generally favorable, the proposal w as adopted e s
sentially unchanged.
R E G U L A T IO N S
D
AN D
Q:
I n te r p r e ta tio n
The Board o f G overnors has announced adoption
of an interpretation to R egulations D (R eserves of
M ember Banks) and Q (Interest on D ep osits) that
extends the kinds o f bankers acceptances elig ib le
for discount by Federal R eserve Banks.
428
Federal Reserve Bulletin □ May 1978
The interpretation m akes bankers acceptances
secured by field w arehouse receipts covering read
ily marketable g ood s elig ib le for discount. That
is, such acceptances may be used as collateral for
Federal R eserve loans to mem ber banks.
The interpretation w as adopted as proposed by
the Board last D ecem b er, with som e technical
changes based on com m ent received. C om m ent
w as generally favorable.
A 1933 interpretation by the Board had held
that acceptances backed by field w arehouse re
ceipts w ere not elig ib le for discount and therefore
could not be used as collateral for loans to m em ber
banks.
In review ing the matter, the Board concluded
that changes in com m ercial law and in com m ercial
practices since 1933 had made revision o f the
interpretation desirable.
A bankers acceptance is primarily a tim e draft
used to finance the shipm ent or storage o f good s.
R E G U L A T IO N
Z:
E x e m p tio n o f C o n s u m e r L e a s in g L a w s
The Board of G overnors had adopted criteria under
w hich States m ay apply for exem ption from the
consum er leasing requirem ents o f the Truth in
L ending A ct and the B oard’s R egulation Z (Truth
in Lending).
A State may also apply to the Board for a
determ ination that its law is not inconsistent with
or pre-em pted by the Federal consum er leasing
law.
The main features of the criteria of State c o n
sumer leasing law s are the sam e as for exem p tion s
for State law s from other provisions of the Truth
in L ending A ct and R egulation Z. T hese are:
— A determ ination by the Board that the State
law im poses requirem ents substantially sim ilar to,
or is more protective and confers greater consum er
benefits than, the relevant Federal law .
— A Board determ ination that the State law
m akes adequate provision for enforcem ent.
The Board m ay not determ ine that a State law
is inconsistent w ith, or is pre-em pted by. Federal
law if the State law provides greater protection
or benefits.
The Board also d elegated authority to m ake
these findings to the D irector of the B oard’s D iv i
sion o f Consum er A ffairs. The D irector m ay not
deny or revoke an exem ption or m ake a finding
of in con sisten cy.
CHANGES
IN
BO ARD
STA FF
The Board o f G overnors has announced the fo l
lo w in g prom otions in the D iv isio n of Federal R e
serve Bank E xam inations and B u d gets, effectiv e
April 9 , 1978.
Albert R. H am ilton from A ssociate D irector to
D irector o f the D iv isio n .
C lyde H. Farnsworth, Jr., from A ssistant
Director to A sso cia te D irector of the D iv isio n .
In addition, the Board has announced the retire
ment o f T hom as E. M ead, A ssistant D irector,
D iv isio n of B anking Supervision and R egulation
on April 2 8 , 1978.
PR O PO SED
AND
IN T E R P R E T A T IO N
AM ENDM ENT
The Board of G overnors has proposed a revised
interpretation of its R egulation Z (Truth in L end
ing) to cover all cases in w hich a debt is repaid
in paym ents of varying am ounts. The Board asked
for com m ent by May 2 4 , 1978.
The Board has also proposed to am end its R e g
ulation T (Credit by Brokers and D ealers) to permit
a broker or dealer to extend and maintain credit
on certain nonconvertible corporate b on d s, with
a 30 per cent margin requirem ent. The Board
asked for com m ent by June 15, 1978.
O F F IC IA L
T IO N S :
STA FF
R e v is e d
IN T E R P R E T A
P roced ures
The Board o f G overnors has revised its procedure
for issuing official staff interpretations o f its R eg u
lation B (Equal Credit Opportunity) and R egu la
tion Z (Truth in L ending).
The Board said that it w ill issue all official staff
interpretations of the regulations with an effectiv e
date 30 days after publication o f the interpretation.
Further, if an interpretation is challenged before
the effectiv e date, it w ill be reissued for public
com m ent before final action is taken. The change
in procedure w as effectiv e April 2 4 , 1978.
The Board made the change after receiving a
number of com plaints about existin g procedures,
w hich has been to publish an official staff inter
pretation in the Federal Register w ithin 2 w eek s
of issu an ce, to be effectiv e upon publication.
T hose questioning this procedure have taken the
Announcements
view that an official staff interpretation is a “ r u le ,”
as defined in the A dm inistrative Procedures A ct,
calling for general notice and opportunity for
com m ent before b ecom in g effectiv e.
An official staff interpretation provides a d efen se
to any creditor acting in good faith in conform ity
with it. Official staff interpretations are lim ited to
clarifications of technical p oin ts, or other matters
not involvin g significant p o licy im plications. T hey
may be appealed to the Board.
SY STEM
429
M E M B E R S H IP :
A d m is s io n o f S ta te B a n k s
The fo llo w in g banks w ere admitted to m em bership
in the Federal R eserve System during the period
April 16, 1978, through M ay 15, 1978:
Oregon
North Bend
..........N orthw est C om m erce Bank
Wyoming
R aw lins
..................W yom in g Bank of R aw lins
430
Industrial P rod u ction
Released for publication M ay 15
equipm ent and consum er durable go o d s. H ow ever,
production o f nondurable m aterials increased only
sligh tly further. Output o f energy m aterials surged
3 .8 per cen t, as coal production returned to about
normal fo llo w in g the strike settlem ent.
Industrial production increased an estim ated 1.1
per cent in A pril, fo llo w in g a rise o f 1.3 per cent
(revised) in M arch. A bout one-fourth o f the April
increase w as due to further resum ption of coal
production fo llo w in g the end o f the recent strike.
A dvances in output last month w ere w idespread
am ong m ost products and materials; particularly
large gains occurred in autom otive products, b u si
ness equipm ent, and durable m aterials. At 142.5
per cent o f the 1967 average, the April index is
2 per cent above the average for the first quarter
w hen output w as reduced by severe w eather and
strikes.
Output of consum er g ood s rose 0 .8 per cent in
A pril. A uto assem b lies increased more than 6 per
cent to an annual rate o f 9 .8 m illion units; pro
duction of other consum er good s increased only
a little after large gains in the tw o preceding
m onths. Output o f business equipm ent advanced
sharply for the third su ccessiv e m onth, and pro
duction o f construction supplies increased so m e
what further in A pril.
Production o f m aterials increased 1 .6 per cent,
fo llo w in g a sharp rise in M arch. Output o f durable
m aterials rose 1.7 per cent in A pril, reflecting
increases in basic m etal materials and parts for
1967 == 100*
Seasonally adjusted, ratio seal*, 1967=100
F.R. indexes, seasonally adjusted. Latest figures: April.
*Auto sales and stocks include imports.
Percentage change from preceding month to—
M ar.p
Apr.p
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Percentage
change
4/77
to
4/78
Total ...................................
141.0
142.5
.3
.3
- .6
.3
1.3
1.1
4.7
Products, total .......................
Final products ....................
Consumer goods ............
Durable ......................
Nondurable .................
Business equipment ---Intermediate products .......
Construction supplies ...
Materials ..................................
141.5
138.8
146.1
157.5
141.5
157.4
151.8
149.3
140.1
142.6
140.0
147.3
161.1
141.8
158.9
152.6
150.1
142.4
.4
.4
.2
-1 .0
.8
.6
.4
1.1
.1
.6
.4
.4
.4
.4
.3
1.3
1.2
-.1
-1.3
-2 .0
-2 .7
-6 .0
-1.3
- .9
.8
.6
.3
.8
1.1
1.3
3.3
.5
1.0
-.1
-.3
- .4
1.4
1.8
1.7
4.1
.6
2.1
.2
.4
1.1
.8
.9
.8
2.3
.2
1.0
.5
.5
1.6
5.0
4.4
3.1
6.3
1.7
8.0
7.2
9.4
4.3
Industrial production
♦Seasonally adjusted.
1978
1977
v Preliminary.
1978
e Estim ated.
Al
Financial and Business Statistics
CONTENTS
D O M E STIC F IN A N C IA L ST A T IST IC S
W
A3
A4
A5
A ssets and L iabilities o f—
A 20
A ll reporting banks
A21
Banks in N e w York C ity
A 22
Banks outside N ew York C ity
A 23 B alance sheet m em oranda
A 2 4 C om m ercial and industrial loans
A6
M onetary aggregates and interest rates
Factors affecting m em ber bank reserves
R eserves and borrow ings of mem ber
banks
Federal funds transactions of m oney
market banks
A 25
P o l ic y I n s t r u m e n t s
A8
Federal R eserve Bank interest rates
A9
M em ber bank reserve requirem ents
A 10 M axim um interest rates payable on
tim e and savin gs deposits at Federally
insured institutions
A 10 M argin requirem ents
A 11 Federal R eserve open market
transactions
F ed era l R eserve B anks
A 12 C ondition and F .R . note statem ents
A 13 Maturity distribution o f loan and
se c u r ity h o ld in g s
M onetary
and
C r e d it A g g r e g a t e s
A 13 Bank debits and deposit turnover
A 14 M oney stock m easures and com ponents
A 15 A ggregate reserves and deposits of
m em ber banks
A 15 L oans and investm ents o f all
com m ercial banks
C o m m e r c ia l B a n k A s s e t s
and
L ia b il it i e s
A 1 6 L ast-W ednesday-of-m onth series
A 17 C all-date series
A 18 D etailed balance sheet, June 3 0 , 1977
eekly
R e p o r t i n g C o m m e r c ia l B a n k s
G ross dem and d ep osits o f individuals,
partnerships, and corporations
F in a n c ia l M
arkets
A 25
C om m ercial paper and bankers
acceptances outstanding
A 2 6 Prime rate charged by banks on
short-term b u sin ess loans
A 26 Terms o f lending at com m ercial banks
A 27 Interest rates in m on ey and capital
markets
A 28 Stock market— S elected statistics
A 29
S avin gs institutions— S elected assets
and liabilities
F e d e r a l F in a n c e
A 3 0 Federal fiscal and financing operations
A31 U .S . B udget receipts and outlays
A 32 Federal debt subject to statutory
lim itation
A 32 G ross public debt of U .S . Treasury—
T ypes and ow nership
A 33 U .S . G overnm ent marketable
securities— O w nership, by maturity
A 34 U .S . G overnm ent securities dealers—
T ransactions, p o sitio n s, and financing
A 35 Federal and Federally sponsored credit
a gen cies— D ebt outstanding
A2
Federal Reserve Bulletin □ May 1978
S e c u r it ie s M a r k e t s
C o r po r a t e F in a n c e
and
A 36
N ew security issu es— State and local
governm ents and corporations
A 37 O pen-end investm ent com panies— N et
sales and asset p osition
A 37 Corporate profits and their distribution
A 3 8 N onfinancial corporations— A ssets and
liabilities
A 38 B usiness expenditures on new plant
and equipm ent
A 39 D om estic finance com panies— A ssets
and liabilities; bu sin ess credit
R ea l E sta te
A 4 0 M ortgage markets
A 41 M ortgage debt outstanding
IN T E R N A T IO N A L ST A T IST IC S
A 54 U .S . international transactions—
Sum m ary
A 55 U .S . foreign trade
A 55 U .S . reserve assets
A 5 6 S elected U .S . liabilities to foreigners
and to foreign official institutions
R epo rted
A 57
A 59
A 60
A61
by
B anks
Short-term
L ong-term
Short-term
L ong-term
A 42 Total outstanding and net change
A 43 E xtensions and liquidations
F low
of
F unds
A 44 Funds raised in U .S . credit markets
A 45 D irect and indirect sources o f funds to
credit markets
D O M E STIC N O N F IN A N C IA L ST A T IST IC S
A 4 6 N onfinancial bu sin ess activity—
Selected m easures
A 4 6 Output, cap acity, and capacity
utilization
A 47 Labor force, em p loym en t, and
unem ploym ent
A 48 Industrial production— Indexes and
gross value
A 50 H ousing and construction
A51 Consum er and w h o lesa le prices
A 52 Gross national product and incom e
A 53 Personal incom e and saving
U n it e d S t a t e s :
liabilities to foreigners
liab ilities to foreigners
claim s on foreigners
claim s on foreigners
A 62 Foreign branches of U .S . banks—
B alance sheet data
S e c u r i t i e s H o l d in g s
C o n s u m e r I n s t a l m e n t C r e d it
in t h e
and
T r a n s a c t io n s
A 64
M arketable U .S . Treasury bonds and
notes— Foreign holdings and
transactions
A 64 Foreign official assets held at F .R .
banks
A 65 Foreign transactions in securities
R e p o r t e d by N o n b a n k in g C o n c e r n s
t h e U n it e d S t a t e s :
in
A 66
Short-term liabilities to and claim s on
foreigners
A 67 Long-term liabilities to and claim s on
foreigners
In terest
and
E x c h a n g e R ates
A 68 D iscou n t rates of foreign central banks
A 68 Foreign short-term interest rates
A 68 Foreign exch an ge rates
A 69
G U ID E TO T A B U L A R P R E SE N T A T IO N
A N D S T A T IST IC A L R E L E A SE S
Domestic Financial Statistics
1.10
A3
M O N E T A R Y A G G R E G A T E S A N D IN T E R E S T R A T E S
1977
1978
1977
1978
Item
Q2
Q4
Q3
Ql
Nov.
Dec.
Jan.
Feb.
Mar.
Monetary and credit aggregates
(annual rates o f change, seasonally adjusted in per cent)12
1
2
Member bank reserves
T otal............................................................................................
Required.....................................................................................
4
5
6
Concepts of money 1
M - l..............................................................................................
M -2..............................................................................................
M -3..............................................................................................
7
Time and savings deposits
Commercial banks:
T otal.......................................................................................
10 Total loans and investments at commercial banks 3 ...........
'2 .9
r3 .5
rl . 8
'7 .3
r6 .8
*•1.7
'6.1
'6.3
'3 .5
8.5
8.3
14.5
'5.3
'3 .9
'20.9
'5.9
'8 .0
'16.1
'15.2
'12.7
'18.3
'10.9
'11.8
'13.7
-8 .7
-7 .4
-6 .2
8.1
9 .0
10.2
8.1
9.9
11.9
7 .2
8.0
10.6
5.0
6.4
7.4
0 .4
5.4
7.8
7 .2
5.7
7 .6
9 .6
8.9
8.7
-1 .1
4 .4
5.5
3.5
5.3
6.1
8.3
9.7
11.9
10.3
11.2
15.0
13.0
8.5
14.4
13.1
7.5
8.8
18.3
9.3
11.2
10.9
4 .6
10.3
12.3
8.4
8.5
'13.7
8.4
'6.9
11.4
6.5
7.5
13.3
9.8
9.3
8.5
11.8
-0 .7
12.1
10.1
9.1
1977
Q2
Q3
Q4
1978
1977
Ql
Dec.
1978
Jan.
Feb.
Mar.
Apr.
Interest rates (levels, per cent per annum)
11
12
13
14
Short-term rates
Federal funds 4 .........................................................................
Federal Reserve discount 5.....................................................
Treasury bills (3-month market yield) 6.............................
Commercial paper (90- to 119-day) 7 ..................................
5.16
5.25
4.84
5.15
5.82
5.42
5.50
5.74
6.51
5.93
6.11
6.56
6.76
6.46
6.39
6.76
6.56
6.00
6.07
6.61
6.70
6.37
6.44
6.75
6.78
6.50
6.45
6.76
6.79
6.50
6.29
6.75
6.89
6.50
6.29
6.82
15
16
17
Long-term rates
Bonds:
U.S. Govt. 8...........................................................................
State and local government 9 ............................................
Aaa utility (new issue)
...................................................
7.68
5.70
8.21
7.60
5.59
8.09
7.78
5.57
8.27
8.19
5.65
8.70
7.87
5.57
8.34
8.14
5.71
8.68
8.22
5.62
8.69
8.21
5.61
8.71
8.32
5.80
8.90
18
Conventional mortgages 11...................................................
8.95
9.00
9.05
9.23
9.10
9.15
9.25
'9.30
9.40
1 M -l equals currency plus private demand deposits adjusted.
M-2 equals M -l plus bank time and savings deposits other than large
negotiable certificates of deposit (CD’s).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
2 Savings and loan associations, mutual savings banks, and credit
unions.
3 Quarterly changes calculated from figures shown in Table 1.23.
4 Seven-day averages o f daily effective rates (average o f the rates on
a given date weighted by the volume of transactions at those rates).
5 Rate for the Federal Reserve Bank o f New York.
6 Quoted on a bank-discount rate basis.
7 Beginning Nov. 1977, unweighted average o f offering rates quoted by
five dealers. Previously, most representative rate quoted by these dealers.
8 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
9 Bond Buyer series for 20 issues o f mixed quality.
10 Weighted averages o f new publicly offered bonds rated Aaa, Aa,
and A by Moody’s Investors Service and adjusted to an Aaa basis.
Federal Reserve compilations.
11 Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept, o f Housing and Urban Development.
12 Unless otherwise noted, rates o f change are calculated from average
amounts outstanding in preceding month or quarter.
A4
Dom estic Financial Statistics □ M ay 1978
1.11
FACTO RS A F F E C T IN G M EM BER B A N K RESERVES
Millions of dollars
Monthly averages of daily
figures
Factors
Weekly averages of daily figures for weeks ending—
1978
Feb.
Mar.
115,227
98,739
1978
Apr.P
Mar. 15
114,848
116,841
112,254
99,573
101,345
97.548
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19p Apr. 26?
116,460
117,211
116,520
114,241
116,467
118,551
100,955
101,498
101 286
99.211
101.451
102,452
1,370
2,440
2,091
7,935
7,929
7,929
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding.. . .
?
3
4
5
6
7
8
U.S. Govt, securities1...................
Bought outright.......................
Held under repurchase agree
ment .....................................
Federal agency securities.............
Bought outright.......................
Held under repurchase agree
ment .....................................
98,032
707
98,436
1,137
100,851
494
97.548
99,585
99,058
99,195
99.211
101.451
8,069
8,217
87
269
84
399
586
349
248
4,482
2,032
378
280
4,101
2,412
573
385
3,993
2,248
589
304
3,701
2,362
171
4,339
2,592
239
4 111
7,982
7,948
8,013
7,929
7.944
7.944
8,334
8,515
8,278
7.929
7.929
7.929
7.929
102,228
224
7,967
7,929
38
Acceptances.................................
Loans..........................................
Float............................................
Other Federal Reserve assets. . . .
106
405
5,347
2,561
279
344
4,261
2,174
137
539
4,054
2,753
2,131
31
809
4,296
2,997
Gold stock......................................
13 Special Drawing Rights certificate
account.....................................
14 Treasury currency outstanding.......
11,718
11,718
11,718
11,718
11,718
11,718
11,718
11,718
11,718
11,718
1,250
11,423
1,250
11,460
1,250
11,500
1,250
11,459
1,250
11,461
1,250
11,470
1,250
11,464
1,250
11,494
1,250
11,497
1,250
11,512
IS Currency in circulation.................... 101,190
389
16 Treasury cash holdings....................
Deposits, other than member bank
reserves with F.R. Banks:
5,707
17
Treasury...................................
297
Foreign........................................
18
Other 2..........................................
772
19
102,017
394
103,258
393
102,048
393
102,168
395
102,322
396
102,655
395
103,389
397
103,555
390
103,251
388
4,705
303
740
5,001
2,555
311
830
5,394
263
797
6,528
282
676
5,441
371
773
3,905
258
741
3,412
333
701
6,321
339
772
9
10
11
12
a b s o r b in g r e s e r v e f u n d s
20
21
Other F.R. liabilities and capital. . . .
Member bank reserves with F.R.
Banks..........................................
345
738
3,926
3,962
3,741
4,201
4,148
3,907
3,766
3,543
3,724
3,794
27,337
27,155
27,833
26,338
27,725
27,539
27,552
26,471
28,817
28,167
End-of-month figures
Wednesday figures
1978
1978
Feb.
Mar.
Apr.**
Mar. 15
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Reserve Bank credit outstanding. . . .
112,134
115,932
119,664
113,281
116,317
118,231
113,774
113,366
118,221
121,354
23
24
25
U.S. Govt, securities1....................
98,450
101,577
103,500
96,777
100,747
102,443
99,160
96,941
96,539
97,977
101,168
103,923
1,687
732
763
3,283
402
26
27
28
Federal agency securities...............
29
30
31
32
Acceptances
Loans..........................................
Float............................................
Other Federal Reserve assets. . . .
SUPPLYING RESERVE FUNDS
22
Bought outright.......................
Held under repurchase agree-
98,450
7,982
99,890
8,193
102,768
8,064
96,777
7,938
99,984
8,189
7,929
264
135
260
832
304
3,499
1,899
770
332
2,732
2,328
290
1,751
2,898
3,161
6,082
2,071
4-i 3
181
356
4,526
2,318
607
364
3,737
2,319
11,718
11,718
11,718
11,718
11,718
11,718
1,250
11,396
1,250
11,441
1,250
11,516
1,250
11,461
1,250
11,464
1,250
11,480
36 Currency in circulation................... 101,369
388
37 Treasury cash holdings....................
Deposits, other than member bank
reserves with F.R. Banks:
3,615
Treasury......................................
38
445
39
Foreign........................................
698
40
Other2..........................................
102,392
393
103,133
390
102,406
396
102,471
391
4,705
352
740
7,177
481
684
1,582
300
941
6,689
248
631
33 Gold stock......................................
34 Special Drawing Rights certificate
account........................................
35 Treasury currency outstanding.......
7,929
7,938
7,929
8,761
7,982
Bought outright.......................
Held under repurchase agree-
7,929
8,028
97,977
7,929
Apr. 19p Apr. 26*
101,168
7.929
102,357
1,566
8,192
7.929
7,929
99
263
193
159
6,153
2,300
171
4,747
2,542
556
5,686
2,882
216
1,764
4,276
2,983
11,718
11,718
11,718
11,718
1,250
11,483
1,250
11,497
1,250
11,497
1,250
11,516
102,728
396
103,213
397
103,858
397
103,649
388
103,520
386
4,389
276
765
4,938
585
751
2,595
268
759
6,625
249
709
8,729
460
796
7,929
7,929
a b s o r b in g r e s e r v e f u n d s
41 Other F.R. liabilities and capital. . .
42 Member bank reserves with F.R.
Banks..........................................
3,933
3,860
4,080
4,578
3,901
3,889
3,457
3,654
3,760
3,879
26,047
27,900
28,203
27,507
26,419
30,236
24,884
26,301
27,306
28,069
1 Includes 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.
2 Includes certain deposits of foreign-owned banking institutions
voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
N ote.—For amounts of currency and coin held as reserves, see Table
1.12.
Member Banks
1.12 RESERVES A N D BORROWINGS
A5
Member Banks
Millions o f dollars
Monthly averages of daily figures
Reserve classification
1977
1976
1978
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
26,430
8,548
26,373
8,712
26,152
8,887
26,933
8,820
26,783
8,932
27,057
9,351
28,129
9,980
27,337
9,320
27,155
8,992
27,833
9,031
34,964
172
34,987
199
34,965
191
35,521
339
36,297
174
37,880
305
36,605
133
35,925
306
36,814
130
All member banks
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Reserves:
At F.R. Banks.................
Currency and coin..........
Total held1......................
Required.......................
Excess1.........................
Borrowings at F.R. Banks:2
Total.................................
Seasonal...........................
Large banks in New York City
Reserves held.......................
Required...........................
Excess...............................
Borrowings2.........................
Large banks in Chicago
Reserves held ......................
Required...........................
Excess............................. .
Borrowings2.........................
35,136
All other banks
Reserves held......................
Required...........................
Excess...............................
Borrowings2.........................
35,156
35,860
62
1,071
634
112
1,319
114
6,520
6,272
6,025
6,175
6,181
3
75
55
133
6
1,655
21
12
12
6,602
-82
15
1,632
101
6,247
25
157
1,653
4
1,622
31
5
13,117
13,290
1,641
-9
6,022
1,634
13,362
13,053
64
14
13,270
20
530
13,355
7
183
13,867
13,971
14,114
13,668
199
29
13,848
123
379
13,954
160
364
6,120
6,175
36,738
558
54
481
32
405
52
344
6,244
6,804
6,563
6,276
-21
12
132
6,279
-35
48
1,666
1,607
1,593
10
-2
-20
26
1,684
49
14
13,993
14,487
1,656
1,609
24
23
13,711
13,607
13,598
113
681
13,602
5
355
14,308
14,387
14,147
161
481
1,613
13,931
62
243
14,641
14,261
126
330
36,231
38,185
36,471
35,782
35,647
135
840
83
Other large banks
Reserves held.....................
Required...........................
Excess............................. .
Borrowings2.........................
35,186
14,474
167
241
6,775
29
77
1,733
14,504
-17
164
15,161
14,917
244
226
6,584
1,623
Al
21
1,629
1,665
11
11
13,867
13,729
150
13,662
67
92
14,685
14,597
6
14,527
158
243
6,184
6,309
-125
61
1,620
9
13,861
539
43
6,193
83
-10
1,633
36,944
14,450
147
220
1,695
-3 0
14,143
14,075
68
249
14,799
14,735
64
218
Weekly averages of daily figures for weeks ending—
1978
Feb. 22
All member banks
Reserves:
At F.R. Banks..................
Currency and coin............
Total held1........................
Required.......................
Excess1..........................
B o r r o w in g s a t F .R . B a n k s : 2
Total.................................
Seasonal...........................
31
32
33
34
Large banks in New York City
Reserves h eld. ......................
Required...........................
Excess......................... .
Borrowings2....................
35
36
37
38
Large banks in Chicago
Reserves held.............
Required................
Excess....................
Borrowings2..............
39
40
41
42
43
44
45
46
Other large banks
Reserves h eld...
Required.......
Excess...........
Borrowings2. ...
All other banks
Reserves held.
Required...
Excess.......
Borrowings2..
28,035
8,554
Mar. 1
26,961
9,085
Mar. 8
26,468
9,111
Mar. 15
26,338
9,558
Mar. 22
27,725
8,458
Mar. 29
27,539
8,842
Apr. 5
Apr. 12
Apr. 19*> Apr. 26»
27,552
8,935
26,471
9,356
28,817
8,887
28,167
8,797
36,291
275
35,916
-12
37,437
349
37,011
35
36,672
36,132
35,664
35,981
36,267
36,463
36,566
446
53
391
58
395
47
248
41
280
47
385
52
304
45
6,734
6,213
5,964
6,420
6,200
6,229
-29
6,199
59
6,241
-21
6,114
54
6,657
-2 6
1,591
1,550
1,573
1,628
1,641
1,712
1,683
13,671
13,692
13,607
13,432
13,858
13,845
111
13,719
-27
60
14,676
14,677
14,520
14,501
14,568
14,648
36,380
292
6,692
42
1,589
2
13,595
76
14,504
172
269
36,012
120
6,233
-2 0
11
1,565
-15
49
14,495
182
271
35,400
264
5,990
-2 6
77
1,559
14
13,476
131
82
14,375
145
236
35,850
131
6,334
86
5
1,621
7
13,537
-105
83
14,358
143
160
36,119
148
1,648
-7
13,748
110
75
14,494
74
205
36,215
248
6,258
1,648
64
13,830
15
128
14,538
110
257
35,904
37,786
37,046
239
36
809
49
6,631
6,116
1,638
1,797
1,639
13,956
13,620
14,483
14,036
14,707
14,478
14,700
15,066
6,220
1,660
23
13,827
129
79
14,563
144
225
171
37
6,168
1,650
-12
13,766
-146
55
14,386
92
116
1,826
-2 9
41
14,284
199
63
14,670
30
135
6,172
-5 6
59
1,631
8
1
14,173
-137
521
15,035
31
228
1 Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which
accordance with Board policy, effective Nov. 19, 1975, of permitting
figures are preliminary, figures by class of bank do not add to total
because adjusted data by class are not available.
transitional relief on a graduated basis over a 24-month period when a
2 Based on closing figures.
nonmember bank merges into an existing member bank, or when a
A6
1.13
Dom estic Financial Statistics □ M ay 1978
FEDERAL FUN DS TRANSACTIONS Money Market Banks
Millions o f dollars, except as noted
1978, week ending—
Type
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
April 5
April 12
April 19
April 26
-2 4
Total, 46 banks
1
2
3
4
5
Basic reserve position
Excess reserves1..................................
Less:
Borrowings at F.R. Banks...........
Net interbank Federal funds
transactions.............................
Equals : Net surplus, or
deficit ( —):
Amount.............................................
Per cent o f average required
reserves .....................................
9
10
Interbank Federal funds transactions
Gross transactions:
Purchases.........................................
Sales...................................................
Two-way transactions2.....................
Net transactions:
Purchases o f net buying banks...
Sales o f net selling banks.............
11
12
Related transactions with U.S.
Govt, securities dealers
Loans to dealers 3................................
Borrowing from dealers4 .................
6
7
8
4
109
4
26
144
282
36
107
50
77
4
6
42
16
7
41
300
16,450
18,764
19,309
19,027
14,849
17,322
22,855
20,233
17,699
-1 6 ,4 9 6
-1 8 ,7 3 2
-1 9 ,3 0 9
-1 9 ,0 0 7
-1 4 ,7 4 8
-1 7 ,0 5 6
-2 2 ,8 2 6
-2 0 ,1 6 7
-1 8 ,0 2 3
108.6
126.8
127.2
124.3
96.7
112.0
150.2
124.4
117.0
23,555
7,106
5,364
26,121
7,357
5,531
25,948
6,639
4,673
26,936
7,909
4,920
23,573
8,724
5,419
25,649
8,327
6,011
29,580
6,726
5,734
27,442
7,209
5,547
24,398
6,699
5,310
18,191
1,741
20,590
1,827
21,275
1,967
22,016
2,989
18,155
3,306
19,638
2,316
23,846
992
21,895
1,662
19,088
1,389
2,891
1,899
993
4,120
1,787
2,333
4,601
1,757
2,844
3,360
2,184
1,176
2,147
2,780
-6 3 3
3,360
2,428
932
4,095
2,014
2,081
3,508
2,049
1,458
3,371
2,575
796
72
8
8 banks in New York City
14
15
16
17
18
19
21
22
23
Basic reserve position
Excess reserves1..................................
Less:
Borrowings at F R Banks . .
Net interbank Federal funds
transactions..............................
Equals: Net surplus, or
deficit ( —):
Amount.............................................
Per cent o f average required
Interbank Federal funds transactions
Gross transactions:
Purchases..........................................
Two-way transactions2.....................
Net transactions:
Purchases o f net buying banks. . .
Sales o f net selling banks.............
Related transactions with U.S.
Govt, securities dealers
25
26
Borrowing from dealers4 ..................
Net loans..............................................
14
—6
30
-2 0
43
16
77
37
59
4,849
6,848
7,567
7,505
5,552
6,399
8,296
6,343
5,334
- 4 ,8 3 6
-6 ,9 3 2
- 7 ,5 3 7
-7 ,5 2 5
-5 ,5 1 0
-6 ,3 8 3
- 8 ,2 2 4
-6 ,3 3 6
- 5 ,3 5 6
84.7
126.8
130.5
132.2
9 7.9
112.5
148.2
103.8
95.6
5,891
1,042
830
7,525
677
677
8,216
650
649
8,235
730
730
6,175
623
623
7,360
961
953
8,993
698
698
7,585
1,242
673
6,132
798
798
5,061
212
6,848
7,567
7,505
5,552
6,408
8
8,296
6,912
569
5,334
1,484
926
558
2,340
966
1,374
2,620
971
1,650
1,874
1,003
871
1,015
1,228
-2 1 3
1,920
1,198
722
2,831
1,419
1,412
2,345
1,496
848
2,032
1,514
518
-6 1
38 banks outside New York City
27
28
29
30
31
Basic reserve position
Excess reserves1..................................
Less:
Borrowings at F.R. Banks...........
Net interbank Federal funds
transactions..............................
Equals : Net surplus, or
deficit ( —):
Amount............................................
Per cent o f average required
reserves.....................................
-2 6
46
101
266
-3 6
100
50
4
6
42
16
7
41
241
11,600
11,915
11,742
11,522
9,297
10,923
14,559
13,890
12,356
-1 1 ,6 6 0
r —11,801
-1 1 ,7 7 2
-1 1 ,4 8 2
- 9 ,2 3 8
-1 0 ,6 7 3
-1 4 ,6 0 2
-1 3 ,8 3 1
-1 2 ,6 6 7
126.7
*126.7
125.2
119.6
96.0
111.6
151.4
136.9
129.2
-1 0
115
17,664
6,064
4,534
18,596
6,680
4,854
17,732
5,990
4,024
18,701
7,179
4,190
17,399
8,012
4,796
18,289
7,366
5,058
20,587
6,028
5,037
19,857
5,967
4,874
18,266
5,901
4,512
35
36
Interbank Federal funds transactions
Gross transactions:
Purchases.........................................
Sales...................................................
Two-way transactions2.....................
Net transactions:
Purchases o f net buying b an k s.. .
Sales o f net selling banks.............
13,130
1,529
13,742
1,827
13,708
1,967
14,511
2,989
12,603
3,306
13,231
2,308
15,550
992
14,983
1,093
13,755
1,389
37
38
39
Related transactions with U.S.
Govt, securities dealers
Loans to dealers 3................................
Borrowing from dealers4..................
Net loans..............................................
1,407
973
435
1,780
821
959
1,981
787
1,194
1,487
1,181
306
1,132
1,552
-4 2 0
1,439
1,229
210
1,264
596
668
1,163
553
610
1,339
1,061
278
32
33
34
For notes see end of table.
Federal Funds
1.13
Al
Continued
1978, week endingType
Mar. 8
Mar. 1
Mar. 15
Mar. 22
Mar. 29
April 5
April 12
April 19
April 26
5 banks in City o f Chicago
40
Basic reserve position
Excess reserves1............................
L ess:
41
42
Borrowings at F.R. Banks. . .
N et interbank Federal funds
transactions.......................
-1
12
66
15
1
61
41
49
5,377
5,433
5,172
5,806
5,053
5,658
6,815
6,425
5,654
-5 ,4 2 7
-5,421
-5 ,1 5 7
-5 ,8 0 4
-4,988
-5 ,5 9 7
-6 ,8 1 4
-6 ,4 6 4
-5,651
372.3
373.7
340.8
377.2
323.9
361.0
442.5
386.6
371.6
6,420
1.043
1.043
6,660
1.227
1.227
6,053
882
882
6,889
1.083
1.083
6,590
1.536
1.536
6,705
1.047
1.047
7,541
726
726
7,332
907
907
6,729
1.075
1.075
5,377
5,433
5,171
5,806
5,054
5,658
6,815
6,425
5,654
254
333
-7 9
390
256
135
426
242
183
357
313
44
255
596
-342
499
159
339
393
58
336
224
-2 7
98
-6 4
E q u a l s : Net surplus, or
43
44
deficit ( —):
Amount....................................
Per cent o f average required
reserves............................
Interbank Federal funds transactions
Gross transactions:
Purchases........................................
Sales.................................................
Two-way transactions2 ................. ..
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks...........
50
51
52
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
N et loans..................................
285
61
193
220
33 other banks
53
Basic reserve position
Excess reserves1............................
L ess:
54
55
Borrowings at F.R. Banks. . .
Net interbank Federal funds
transactions.......................
r —9
r103
r_4i
1
r44
'35
206
-3 7
4
6
42
16
7
241
6,223
6,483
6,570
5,716
4,243
5,265
7,744
7,465
6,711
-6 ,2 3 2
-6 ,3 7 9
r—6,615
-5,678
’•-4 ,2 5 1
-5 ,0 7 5
-7 ,7 8 8
-7 ,3 6 7
- 7 ,0 1 6
77.7
r81.2
83.8
r70.5
5 2.6
63.4
96.1
87.4
84.7
11,244
3,491
11,936
5,453
3,627
11,679
5,108
3,143
11,812
6,097
3,108
10,809
6,565
3,260
11,584
6,319
4,011
13,046
5,302
4,311
12,525
5,060
2,967
11,537
4,826
3,436
7,752
1,529
8,309
1,827
8,536
1,967
8,705
2,989
7,549
3,306
7,573
2,308
8,736
992
8,558
1,093
8,101
1,389
1,153
640
513
1,389
565
824
1,555
544
1,130
1,011
877
956
-7 9
941
1,070
-1 2 9
871
538
333
878
492
386
1,147
841
305
E q u a l s : Net surplus, or
56
57
deficit ( —):
Amount....................................
Per cent o f average required
reserves............................
58
59
60
61
Interbank Federal funds transactions
Gross transactions:
Purchases........................................
Sales.................................................
Two-way transactions2 ...................
N et transactions:
Purchases o f net buying banks..
62
S a le s o f n e t se llin g b a n k s .............
63
64
65
Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
Net loans..................................
5,021
1 Based on reserve balances, including adjustments to include waivers
o f penalties for reserve deficiencies in accordance with changes in policy
of the Board o f Governors effective Nov. 19, 1975.
2 Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank’s average purchases
and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases from dealers subject to resale),
or other lending arrangements.
868
261
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 U.S. Govt, or other securities.
N o t e . —Weekly averages o f daily figures. For description of series,
see August 1964 B u l l e t i n , pp. 944-53. Back data for 46 banks appear
in the Board’s Annual Statistical Digest, 1971-1975, Table 3.
A8
Dom estic Financial Statistics □ May 1978
1.14
F E D E R A L R E S E R V E B A N K IN T E R E S T R A T E S
Per cent per annum
Current and previous levels
Loans to member banks—
Loans to all others
under Sec. 13, last par.4
Under Sec. 10(b)2
Federal Reserve
Bank
Under Secs. 13 and 13a1
Regular rate
Special rate3
Rate on
4/30/78
Effective
date
Previous
rate
Rate on
4/30/78
Effective
date
Previous
rate
Rate on
4/30/78
Effective
date
Previous
rate
Rate on
4/30/78
Effective
date
Previous
rate
6 Vi
6Vi
6 Vi
6 Vi
61/2
6 Vi
6 Vi
6 Vi
6 Vi
61/2
6 Vi
61/2
1/10/78
1/9/78
1/20/78
1/20/78
1/13/78
1/16/78
1/9/78
1/13/78
1/10/78
1/10/78
1/13/78
1/13/78
6
6
6
6
6
6
6
6
6
6
6
6
7
7
7
7
7
7
7
7
7
7
7
7
1/10/78
1/9/78
1/20/78
1/20/78
1/13/78
1/16/78
1/9/78
1/13/78
1/10/78
1/10/78
1/13/78
1/13/78
6 Vi
61/2
61/2
61/2
6Vi
6Vi
61/2
6Vi
61/2
6 Vi
6 Vi
61/2
71/2
7 Vi
7Vi
71/2
7Vi
71/2
m
71/2
71/2
7 Vi
71/2
71/2
1/10/78
1/9/78
1/20/78
1/20/78
1/13/78
1/16/78
1/9/78
1/13/78
1/10/78
1/10/78
1/13/78
1/13/78
7
7
7
7
7
7
7
7
7
7
7
7
91/2
9 Vi
91/2
9 Vi
91/2
9Vi
91/2
9Vi
91/2
91/2
91/2
91/2
1/10/78
1/9/78
1/20/78
1/20/78
1/13/78
1/16/78
1/9/78
1/13/78
1/10/78
1/10/78
1/13/78
1/13/78
9
9
9
9
9
9
9
9
9
9
9
9
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N .Y .
714-734
714-734
714
634-714
634
734
714
714
634
63/4
B oston....................
New Y ork.............
Philadelphia..........
Cleveland...............
Richmond.............
Atlanta...................
Chicago.................
St. Louis................
Minneapolis..........
Kansas City..........
D allas.....................
San Francisco. . . .
Range o f rates in recent years5
Effective date
In effect Dec. 31, 1970
1971— Jan.
8 ......
15...........
19...........
22...........
29......
Feb. 13......
19......
July 16......
2 3
Nov. 11...........
19...........
Dec. 13...........
17...........
2 4
Range
or level)—
All F.R.
Banks
F.R.
Bank
of
N .Y.
5Vi
5Vi
5V4-5Vi
514
5 -514
5 -51,4
5
4 ^ -5
4%
434-5
5
434-5
434
41/2-434
4Vi-434
4Vi
514
514
51/4
5
5
5
434
5
5
5
434
434
4*4
4V4
Range
(or level)—
All F.R.
Banks
Effective date
1973—Jan. 15.................
Feb. 26.................
Mar. 2.................
Apr. 23.................
May 4.................
11.................
18.................
June 11...................
15.................
July 2................
Aug. 14................
23................
1974—Apr. 25................
30................
Dec. 9................
16................
5
5-5 Vi
5Vi
5Vi-534
5Y4
53^-6
6-6 Vi
6%
7
7-7 Vi
m
7Vi-8
8
7%-8
m
F.R.
Bank
of
N .Y.
5
5%
%
5Y4
6
6
6Vi
6Vi
7
7 Vi
7Vi
8
8
m
m
Effective date
6................
10.................
24.................
Feb. 5................
7.................
1975—Jan.
Mar.
14.................
23.................
1976—Jan. 19.................
23.................
Nov. 22.................
26.................
5Vi-6
5Vi
514-5 Vi
514
5i/i
5Vi
514
51/4
1977—Aug. 30.................
31.................
Sept. 2................
Oct. 26................
514-534
534
6
514
534
5*4
6
9................
20................
6-6 Vi
6Vi
6Vi
6Vi
6Vi
61/2
In effect Apr. 30, 1978....
614
614
614
6- 614
6
1978—Jan.
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.
3 Applicable to special advances described in Section 201.2(e)(2) of
Regulation A.
6V4-634
May 16.................
51/4-534
6
6
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.
5 Rates under Secs. 13 and 13a (as described above). For description
and earlier data, see the following publications o f the Board o f Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Statistics, 1941-1970, Annual Statistical Digest, 1971-75, and Annual
Statistical Digest, 1972-76.
Policy Instruments
1.15
A9
M E M BER B A N K R E SE R V E R E Q U IR E M E N T S 1
Per cent o f deposits
Requirements in effect
Apr. 30, 1978
Type o f deposit, and deposit interval
in millions o f dollars
Previous requirements
Per cent
Effective date
Per cent
Effective date
7
9%
l l 3/4
123,4
161/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
7^
10
12
13
161/z
2/13/75
2/13/75
2/13/75
2/13/75
2/13/75
3
3/16/67
31/2
3/2/67
3
4 21/2
41
3/16757
1/8/76
10/30/75
31/2
3
3
3/2/67
3/16/67
3/16/67
6
4 2 Vi
41
12/12/74
1/8/76
10/30/75
5
3
3
Net demand:2
10-100.....................................................................................................
1 0 0 - 4 0 0 ...............................................................................................
Over 40 0.............................. ...................................................................
Tim e:2'3
Savings....................................................................................................
Other time:
0-5, maturing in—
180 days to 4 years......................................................................
4 years or m ore.............................................................................
Over 5, maturing in—
30-179 days....................................................................................
180 days to 4 years......................................................................
4 years or m ore.............................................................................
10/1/70
12/12/74
12/12/74
Legal limits, Apr. 30, 1978
Net demand:
Reserve city banks
Other banks..........
Time...........................
1 For changes in reserve requirements beginning 1963, see Board’s
Annual Statistical Digest, 1971-1975 and for prior changes, see Board’s
Annual Report for 1976, Table 13.
2 (a) Requirement schedules are graduated, and each deposit interval
applies to that part o f the deposits o f each bank. Demand deposits
subject to reserve requirements are gross demand deposits minus cash
items in process o f collection and demand balances due from domestic
banks.
(b) The Federal Reserve Act specifies different ranges o f requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which 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. 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 o f
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board’s Regulation D.
Minimum
Maximum
10
7
3
22
14
10
(c) The Board’s Regulation M requires a 4 per cent reserve against net
balances due from domestic banks to their foreign branches and to foreign
banks abroad. Effective Dec. 1, 1977, a 1 per cent reserve is required
against deposits that foreign branches of U.S. banks use for lending to
U.S. residents. Loans aggregating $100,000 or less to any U.S. resident are
excluded from computations, as are total loans o f a bank to U.S. residents
if not exceeding $1 million. Regulation D imposes a similar reserve re
quirement on borrowings from foreign banks by domestic offices o f a
member bank.
3 Negotiable orders o f withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements as savings deposits.
4 The average o f reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law.
N o t e . —Required reserves must be held in the form o f deposits with
F.R. Banks or vault cash.
A10
1.16
Dom estic Financial Statistics □ May 1978
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Per cent per annum
Commercial banks
Type and maturity o f deposit
In effect Apr. 30, 1978
Per cent
Previous maximum
Effective
date
Per cent
4i/2
7/1/73
1 Savings........................................................
2 Negotiable order o f withdrawal (NOW)
accounts1.........................................
Savings and loan associations and
mutual savings banks
Effective
date
1/21/70
1/1/74
Time (multiple- and single-maturity
unless otherwise indicated):2
30-89 days:
3
Multiple-maturity................................
4
Single-maturity....................................
4 i/2
5
7/1/73
In effect Apr. 30, 1978
Per cent
Effective
date
SVa
(6)
5
1/1/74
Previous maximum
Per cent
(7)
1/21/70
9/26/66
(8)
7/20/66
9/26/66
3 5%
(6)
5Va
1/21/70
(6)
(6)
5Va
1/21/70
1/21/70
1/21/70
(8)
5
6
90 days to 1 year:
Multiple-maturity................................
Single-maturity....................................
5Vi
7/1/73
7
8
9
1 to 2 years3 ............................................
2 to 2y2 years3.........................................
2 Vi to 4 years3.........................................
6
6Vi
7/1/73
7/1/73
5Vi
5V4
5V4
1/21/70
1/21/70
1/21/70
6%
6%
10
11
4 to 6 years4............................................
6 years or more4......................................
71/4
7Vi
11/1/73
12/23/74
(9)
IVa
11/1/73
m
m
11/1/73
12/23/74
(9)
71/2
12
13
Governmental units (all maturities)...
Individual retirement accounts and
Keogh (H.R. 10) plans 5.............
m
12/23/74
71/2
11/27/74
m
12/23/74
m
7/6/77
(8)
7%
6
6
7/6/77
11/1/73
11/27/74
(8)
9 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
o f $1,000; however, the amount o f such certificates that an institution
could issue was limited to 5 per cent of its total time and savings deposits.
Sales in excess o f that amount, as well as certificates o f less than $1,000,
were limited to the 6 Vi per cent ceiling on time deposits maturing in 2Vi
years or more.
Effective Nov. 1, 1973, the present ceilings were imposed on certificates
maturing in 4 years or more with minimum denominations o f $1,000.
There is no limitation on the amount o f these certificates that banks can
issue.
1 For authorized States only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks were first permitted to offer NOW accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institu
tions throughout New England on Feb. 27, 1976.
2 For exceptions with respect to certain foreign time deposits see the
Federal Reserve B u l l e t i n for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
3 A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum de
nominations. This restriction was removed for deposits maturing in less
than 1 year, effective Nov. 1, 1973.
4 $1,000 minimum except for deposits representing funds contributed
to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es
tablished pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and N o
vember 1976, respectively.
5 3-year minimum maturity.
6 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
7 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan associations.
8 N o separate account category.
1.161
Effective
date
N o t e — Maximum rates that can be paid by Federally insured commer
cial banks, mutual savings banks, and savings and loan associations are
established by the Board o f Governors o f the Federal Reserve System,
the Board o f Directors o f the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board under the provisions o f 12
CFR 217, 329, and 526, respectively. The maximum rates on time de
posits in denominations of $100,000 or more were suspended in mid1973. For information regarding previous interest rate ceilings on all
types of accounts, see earlier issues o f the Federal Reserve B u l l e t i n ,
the Federal Home Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.
M A R G IN R E Q U IR E M E N T S
Per cent o f market value; effective dates shown.
Type of security on sale
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
1 Margin stocks............................................................
2 Convertible bonds.....................................................
3 Short sales..................................................................
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
N o t e . —Regulations G, T, and U of the Federal Reserve Board of
Governors, prescribed in accordance with the Securities Exchange Act of
1934, limit the amount of credit to purchase and carry margin stocks
that may be extended on securities as collateral by prescribing a maximum
loan value, which is a specified percentage o f the market value o f the
collateral at the time the credit is extended. Margin requirements are the
difference between the market value (100 per cent) and the maximum
loan value. The term “margin stocks” is defined in the corresponding
regulation.
Regulation G and special margin requirements for bonds convertible
into stocks were adopted by the Board o f Governors effective Mar. 11,
1968.
Policy Instruments
1.17
A ll
F E D E R A L R E S E R V E O P E N M A R K E T T R A N S A C T IO N S
Millions o f dollars
1978
1977
Type o f transaction
1975
1977
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
3,109
311
696
1,323
379
1,974
Mar,
U.S. GOVT. SECURITIES
Outright transactions (excl. matched salepurchase transactions)
1
2
3
Treasury bills:
Gross purchases.
Gross sales...........
Redemptions
Others within 1 year:1
Gross purchases.....................
Gross sales...............................
Exchange, or maturity shift.
Redemptions...........................
8
9
10
1 to 5 years:
Gross purchases......................
Gross sales...............................
Exchange, or maturity shift.
11
12
13
5 to 10 years:
Gross purchases.....................
Gross sales...............................
Exchange, or maturity shift.
14
15
16
Over 10 years:
Gross purchases....................
Gross sales...............................
Exchange, or maturity shift.
17
18
19
All maturities:1
Gross purchases.
Gross sales...........
R ed em p tio n s....
11,562
5,599
26,431
14,343
8,462
2 5,017
472
3,017
2,616
-4
3,549
‘792'
4.499
2.500
” 320
2 3,284
2 3,202
177
-2 ,5 8 8
2,833
681
-6 j 649
-320
1,048
758
96
‘i",572’
584
3,854
1,510
- 4 ’697
1,070
642
' ” 848
’225 '
553
1,877
436
300
-4 5
2,500
1,352
45
5,526
303
317
1,877
2,500
196,078 425,214
196,579 423,841
39,552
39,694
48,204
44,772
178,683
180,535
16,700
15,469
9,578
11,889
6,279
-1 0 ,1 1 8
Repurchase agreements
Gross purchases. . . .
Gross sales.................
140,311 232,891
139,538 230,355
-5 ii
628
311
-623
s ii
166
89
1,100
748
50
31
288
-653
26i
1,109
-2 6 i‘
813
370
-9 0 6
100
147
450
240
20,898
7,241
4,636
22
23
56
108
128
i i 565
219,707
8,639
25,017
151,205
152,132
-1 ,2 6 7
99
623
-325
221,313
5,599
2 9,980
Matched sale-purchase transactions
Gross sales........................................
Gross purchases..............................
Net change in U.S. Govt, securities..........
2,005
303
317
3,886
20
21
24
13,738
7,241
2,136
4,110
311
1,252
1,323
379
1,974
1,100
31
56,899 32,320
57,477 35,001
54,859
51,016
40,128
44,270
44,976
44,129
6,472
4,433
18,071
18,208
10,229
12,130
16.057
16.057
13,155
11,468
1,880
6,342
- 5 ,8 1 5
1,447
3,127
22
53
1,680
2,131
1.966
1.966
2,638
2,374
1,425
4,107
436
300
7,434
9,087
5,798
1,616
891
1,433
246
169
223
25
15,179
15,566
10,520
10,360
13,811
13,638
1,136
978
1,051
615
484
163
-3 5
-5 4 5
410
-1 9 6
159
351
-4
-4 7 8
248
705
-9 5 4
8,539
9,833
7,143
2,260
8,042
-7,220
2,367
50
FEDERAL AGENCY OBLIGATIONS
Outright transactions:
Gross purchases.........
Gross sales...................
Redemptions...............
Repurchase agreements:
28
Gross purchases.........
29
Gross sales...................
25
26
27
707
*32
741
2,712
2,392
BANKERS ACCEPTANCES
30 Outright transactions, n et. . .
31 Repurchase agreements, net.
32 Net change in total System Account.
1 Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions o f dollars): 1975, 3,549: 1976, none; Sept. 1977,
2,500.
2 i n 19 75, the System obtained $421 million o f 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction
6,764
-10,910
770
amounting to $189 million. Acquisition o f these notes is treated as a
purchase; the run-off of bills, as a redemption.
N o t e . — Sales, redemptions, and negative figures reduce holdings of
the System Open Market Account; all other figures increase such holdings.
Details may not add to totals because o f rounding.
A12
Domestic Financial Statistics □ May 1978
1.18 F E D E R A L RESERVE B A N K S
Condition and F.R. Note Statements
Millions of dollars
Account
Mar. 29
Apr. 5
Wednesday
End of month
1978
1978
Apr. 12
Apr. 19*
Apr. 26?
Feb.
Mar.
Apr.p
Consolidated condition statement
ASSETS
1 Gold certificate account......................................
2
3
Loans:
4
Member bank borrowings...............................
6
7
8
11,718
1,250
11,718
1,250
11,718
1,250
11,718
1,250
11,718
1,250
11,718
1,250
11,718
1,250
320
309
305
308
308
339
323
324
364
159
171
556
1,764
304
332
1,751
Acceptances:
Federal agency obligations:
q
10
11
1?
13
14
15
16
11,718
1,250
U.S. Govt, securities
Bought outright:
Bills..............................................................
Total 2...............................................................
607
193
770
290
7,929
832
7,929
99
7,929
7,929
7,929
263
7,982
7,929
264
7,929
135
38,222
35,007
36,445
38,965
40,154
38,536
38,358
40,565
51,486
9,452
99,160
3,283
51,984
9,548
96,539
402
51,984
9,548
97,977
52,510
9,693
101,168
52,510
9,693
102,357
1,566
50,516
9,398
98,450
51,984
9,548
99,890
1,687
52,510
9,693
102,768
732
216
17
102,443
96,941
97,977
101,168
103,923
98,450
101,577
103,500
18 Total loans and securities....................................
112,175
105,321
106,077
109,653
114,095
106,736
110,872
113,605
9,513
385
13,400
384
11,163
383
12,571
385
11,111
386
10,489
380
8,354
385
9,087
387
66
1,868
62
1,854
90
2,069
140
2,357
54
2,543
'18
rl ,501
80
1,863
54
2,720
137,295
134,298
133,055
138,382
141,465
132,431
134,845
139,145
19
20
21
22
Other assets:
23
LIABILITIES
91,964
92,436
93,062
92,848
Deposits :
Member bank reserves.....................................
25
U.S. Treasury—General account....................
26
27
28
92,697
90,703
91,666
92,331
30,236
4,389
276
765
24,884
4,938
585
751
26,301
2,595
268
759
27,306
6,625
249
709
28,069
8,729
460
796
26,047
3,615
445
698
27,900
4,705
352
740
28,203
7,177
481
684
29
35,666
31,158
29,923
34,889
38,054
30,805
33,697
36,545
5,776
1,302
7,247
1,265
6,416
1,331
6,885
1,308
6,835
1,287
6,990
1,328
5,622
1,234
6,189
1,420
134,708
132,106
130,732
135,930
138,873
129,826
132,219
136,485
1,048
1,029
510
1,048
1,029
115
1,047
1,029
247
1,047
1,029
376
1,049
1,029
514
1,044
1,029
532
1,047
1,029
550
1,050
1,029
581
137,295
134,298
133,055
138,382
141,465
132,431
134,845
139,145
88,336
88,898
89,038
88,218
86,590
83,261
88,965
85,141
24
30 Deferred availability cash items.........................
31 Other liabilities and accrued dividends...............
32
CAPITAL ACCOUNTS
33
34
35
36
37
Marketable U.S. Govt, securities held in
custody for foreign and inti, account.............
M em o:
Federal Reserve note statement
38 F.R. notes outstanding (issued to Bank).............
Collateral held against notes outstanding:
Gold certificate account...................................
39
Special Drawing Rights certificate account....
40
41
42
U.S. Govt, securities........................................
103,431
103,570
103,744
103,904
104,165
102,773
103,427
104,164
11,718
1,250
333
90,130
11,718
1,250
144
90,458
11,718
1,250
144
90,632
11,718
1,250
593
90,343
11,717
1,250
1,645
89,553
11,718
1,250
292
89,513
11,718
1,250
309
90,150
11,717
1,250
1,580
89,617
43 Total collateral.....................................................
103,431
103,570
103,744
103,904
104,165
102,773
103,427
104,164
1 Effective Jan. 1, 1977, Federal Reserve notes of other Federal Reserve
Banks were merged into the liability account for Federal Reserve notes.
2 Includes 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 Includes certain deposits of domestic nonmember banks and foreign-
owned banking institutions voluntarily held with member banks and
redeposited in full with F.R. Banks.
N o t e . —Beginning Jan.
to “Other assets."
1, 1977,
“Operating equipment” was transferred
R eserve Banks
1.19 FEDERAL RESERVE BANKS
A13
Maturity Distribution of Loan and Security Holdings
Millions o f dollars
Wednesday
End o f month
1978
1978
Type and maturity
Mar. 29
Apr. 12
Apr. 5
Apr. 19
172
157
15
Apr. 26
Feb. 28
1,764
1,736
28
303
294
9
1 Loans.............................
2
Within 15 days
3
16 days to 90 days.
4
91 days to 1 year..,
363
356
7
159
139
5 Acceptances.................
6
Within 15 days. . . .
7
16 days to 90 days.
8
91 days to 1 year..,
607
607
193
193
U.S. Govt, securities.............
Within 15 days1................
16 days to 90 days............
91 days to 1 year...............
Over 1 year to 5 years. . .
Over 5 years to 10 years.
Over 10 years....................
102,443
6,967
18,849
29,838
29,272
9,846
7,671
96,941
3,101
16,136
30,623
29,376
9,941
7,764
97,977
2,181
18,025
30,690
29,376
9,941
7,764
101,168
3,318
18,984
31,214
29,611
10,132
7,909
103,923
5,727
20,219
30,325
29,611
10,132
7,909
16 Federal agency obligations..
17 Within 15 days1................
18 16 days to 90 days............
19 91 days to 1 year...............
20 Over 1 year to 5 years. . .
21 Over 5 years to 10 years.
22 Over 10 years.....................
8,761
873
233
1,110
4,044
1,624
877
8,028
105
257
1,121
4,044
1,624
877
7,929
7,929
26
238
1,121
4,043
1,644
857
8,192
283
265
1,152
3,991
1,644
857
20
556
550
6
Mar. 31
331
315
16
1,751
1,731
770
770
290
290
98,450
2,512
19,549
30,377
28,824
9,571
7,617
101,577
4,642
19,400
30,454
29,376
9,941
7,764
103,500
3,710
21,381
30,757
29,611
10,132
7,909
7,982
8,193
305
233
8,064
189
231
1,152
3,991
1,644
857
216
216
6
258
1,121
4,043
1,644
857
Apr. 30
222
140
1,127
3,954
1,659
880
1,110
4,044
1,624
877
20
1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity o f the agreements.
1.20
BANK DEBITS A N D DEPOSIT TU RN O V ER
Debits are shown in billions o f dollars. Monthly data are at annual rates.
1978
1977
Bank group, or type
o f customer
1974
1975
1976
Dec.
Nov.
Mar,
Feb.
Jan.
Debits to demand deposits 2 (seasonally adjusted)
1 All commercial banks................
2 Major New York City banks. .
3 Other banks..................................
22,937.8
8,434.8
14,503.0
25,028.5
9 ,670.7
15,357.8
29,180.4
11.467.2
17.713.2
36,253.5
14.216.3
22.037.3
36,427.2
14,651.4
21,775.8
36.923.3
14,432.0
22.491.3
36.156.1
13.483.1
22,672.9
36,883.0
13,701.6
23,181.3
328.7
c4 0 .1
288.6
382.7
49.7
333.0
129.4
496.4
89.9
132.7
521.5
92.1
1.5
3.9
1.4
1.7
4 .8
1.6
Debits to savings deposits 3 (not seasonally adjusted)
4 All customers................................
5 Business 1......................................
6 Others.............................................
326.0
42.2
283.8
353.8
49.5
304.3
392.6
48.7
343.8
Demand deposit turnover 2 (seasonally adjusted)
7 All commercial banks.................
8 Major New York City banks. .
9 Other banks..................................
99.0
321.6
70.6
105.3
356.9
72.9
116.8
411.6
79.8
131.4
524.4
88.6
131.0
539.9
86.8
131.5
512.2
89.0
Savings deposit turnover 3 (not seasonally adjusted)
10 All customers................................
11 Business *......................................
12 Others.............................................
1 Represents corporations and other profit-seeking organizations (ex
cluding commercial banks but including savings and loan associations,
mutual savings banks, credit unions, the Export-import Bank, and
Federally sponsored lending agencies).
2 Represents accounts o f individuals, partnerships, and corporations,
and of States and political subdivisions.
3 Excludes negotiable orders o f withdrawal (NOW) accounts and special
club accounts, such as Christmas and vacation clubs.
1.5
3.9
1.4
1.6
4 .6
1.5
1.8
4 .7
1.7
N ote.—Historical data—estimated for the period 1970 through June
1977, partly on the basis o f the debits series for 233 SMSA’s, which were
available through June 1977 are available from Publications Services,
Division o f Administrative Services, Board o f Governors o f the Federal
Reserve System, Washington, D.C. 20551. Debits and turnover data for
savings deposits are not available prior to July 1977.
A14
Domestic Financial Statistics □ M ay 1978
1.21 M ONEY STOCK MEASURES A N D COMPONENTS
Billions o f dollars, averages o f daily figures
1977
1974
Dec.
1975
Dec.
1976
Dec.
1978
1977
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
336.7
807.6
1,374.1
881.6
1,448.1
339.4
813.6
1,384.1
889.9
1,460.4
339.1
816.6
1,390.5
896.0
1,469.8
340.1
820.2
1,397.6
902.2
1,479.6
Seasonally adjusted
MEASURES 1
1
2
3
4
5
M -1...........................................................
M -2...........................................................
M -3...........................................................
M -4...........................................................
M -5...........................................................
282.8
612.1
981.2
701.1
1,070.2
294.5
664.1
1,091.8
745.4
1,173.2
312.6
739.6
1,235.6
802.3
1,298.3
336.7
807.6
1,374.1
881.6
1,448.1
334.6
800.2
1,356.7
866.5
1,423.0
334.7
803.8
1,365.5
874.6
1,436.4
COMPONENTS
6 Currency..................................................
Commercial bank deposits:
7
Demand...............................................
8
Time and savings................................
9
Negotiable C D ’s 2..........................
10
Other................................................
67.8
73.7
80.7
88.5
87.1
87.7
88.5
89.3
90.0
90.6
215.1
418.3
89.0
329.3
220.8
450.9
81.3
369.6
231.9
489.7
62.7
427.0
248.2
544.9
74.0
470.9
247.5
531.9
66.4
465.5
247.0
540.0
70.9
469.1
248.2
544.9
74.0
470.9
250.1
550.5
76.3
474.2
249.1
r556.8
79.4
477.5
249.5
562.1
82.0
480.1
11 Nonbank thrift institutions3...............
369.1
427.8
496.0
566.5
556.5
561.7
566.5
570.5
r573.8
577.4
346.4
813.0
1,375.5
888.9
1,451.4
345.2
818.3
1,386.5
894.6
1,462.9
333.3
r8 11.4
1,383.4
888.3
1,460.3
335.4
818.7
1,397.5
899.0
1,477.7
N ot seasonally adjusted
M EASURES1
12
13
14
15
16
M -1...........................................................
M -2...........................................................
M -3.....................................................
M -4...........................................................
M -5...........................................................
291.2
617.5
983.8
707.9
1,074.2
303.2
669.3
1,094.3
752.8
1,177.7
321.7
744.8
1,237.5
809.1
1,301.8
346.4
813.0
1,375.5
888.9
1,451.4
334.0
797.5
1,351.7
865.8
1,420.0
336.8
801.2
1,358.5
872.8
1,430.1
COMPONENTS
17 Currency..................................................
Commercial bank deposits:
18
Demand................................................
19
Member...........................................
20
Domestic nonmember..................
21
Time and savings................................
22
Negotiable C D ’s 2 .........................
23
Other...............................................
24 Nonbank thrift institutions3...............
25 U.S. Govt, deposits (all commercial
banks)..............................................
69.0
75.1
82.1
90.0
86.9
88.4
90.0
88.6
88.9
89.9
222.2
159.7
58.5
416.7
90.5
326.3
228.1
162.1
62.6
449.6
83.5
366.2
239.5
168.5
67.5
487.4
64.3
423.1
256.4
176.3
75.8
542.5
75.9
466.6
247.0
170.0
72.7
531.8
68.3
463.5
248.4
170.3
73.8
536.0
71.6
464.4
256.4
176.3
75.8
542.5
75.9
466.6
256.6
175.9
76.3
549.4
76.4
473.0
244.4
167.4
72.8
555.0
76.9
478.1
245.5
168.5
73.0
563.6
80.2
483.4
366.3
424.9
492.7
562.5
554.2
557.3
562.5
568.2
571.9
578.8
4.9
4.1
4 .4
5.1
3.7
3.5
5.1
4 .2
4 .2
4.6
1 Composition o f the money stock measures is as follows:
M -1: Averages o f daily figures for (1) demand deposits at 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
o f commercial banks.
M-2: M-1 plus savings deposits, time deposits open account, and time
certificates o f deposit (C D ’s) other than negotiable C D ’s o f $100,000 or
more at large weekly reporting banks.
M -3: M-2 plus the average o f the beginning- and end-of-month deposits
o f mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
M-4: M-2 plus large negotiable C D ’s.
M -5: M-3 plus large negotiable C D ’s.
For a description of the latest revisions in the money stock measures
see “ Money Stock Measures: Revision” in the April 1978 B ulletin, pp.
338 and 339.
Latest monthly and weekly figures are available from the Board’s H .6
release. Back data are available from the Banking Section, Division o f
Research and Statistics.
2 Negotiable time C D ’s issued in denominations o f $100,000 or more
by large weekly reporting commercial banks.
3 Average o f the beginning- and end-of-month figures for deposits o f
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
NOTES TO TABLE 1.23:
1 Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright to a bank’s own foreign branches,
nonconsolidated nonbank affiliates o f the bank, the bank’s holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel o f banks
was also different. On the new basis, both “Total loans” and “Com
mercial and industrial loans” were reduced by about $100 million.
Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As o f that date
there were increases o f about $500 million in loans, $100 million in
“Other” securities, and $600 million in “Total loans and investments.”
As o f Oct. 31, 1974, “Total loans and investments” o f all commercial
banks were reduced by $1.5 billion in connection with the liquidation
o f one large bank. Reductions in other items were: “Total loans,” $1.0
billion (of which $0.6 billion was in “Commercial and industrial loans”),
and “Other securities,” $0.5 billion. In late November “Commercial and
industrial loans” were increased by $0.1 billion as a result o f loan re
classifications at another large bank.
4 Reclassification o f loans reduced these loans by about $1.2 billion
as of Mar. 31, 1976.
5 Reclassification o f loans at one large bank reduced these loans by
about $300 million as o f Dec. 31, 1977.
6 As of April 26, 1976, total loans sold were increased by $400 million
and business loans sold were reduced by $700 million as the result o f
reclassifications at one large bank.
N ote.—D ata are for last Wednesday o f month except for June 30
and Dec. 31; data are partly or wholly estimated except when June 30
and Dec. 31 are call dates.
M o n etary A ggregates
1.22 AG G R EG ATE RESERVES A N D DEPOSITS
A 15
Member Banks
Billions o f dollars, averages o f daily figures
1974
Dec.
1975
Dec.
1977
1976
Dec.
July
Aug.
Sept.
1978
Oct.
Nov.
Seasonally adjusted
1
2
3
4
5
Nonborrowed.................................................
Required..........................................................
Deposits subject to reserve requirements2. .
Time and savings...........................................
Demand:
Private..........................................................
6
7
U.S. G o v t...................................................
••36.57
r35.84
*•36.31
486.1
322.1
160.6
3.3
34.68 34.93 *■35.27 *■35.50 *•35.52 '35.81
34.55 *■34.89 *•34.95 *•34.44 *■34.89 *•34.50
*•34.42 *•34.29 *■35.00 *•35.30 *•35.31 *■35.60
504.6 528.9 547.2 550.5 553.0 558.5
337.1
354.3
368.9
370.8 373.0 377.1
164.5
2 .9
171.4
3 .2
175.3
3.0
176.5
3.2
176.7
3.3
178.3
3.1
35.96
35.10
35.71
564.4
383.5
'36.14
'35.57
'35.95
569.1
387.0
'36.60
'36.12
'36.33
575.7
390.5
'36.93
'36.53
'36.69
577.8
395.4
36.67
36.34
36.47
582.2
399.2
178.0
3 .0
178.5
3.6
182.1
3.1
179.5
3.0
179.6
3.4
N ot seasonally adjusted
8 Deposits subject to reserve requirements2. . 491.8
Time ans savings.......................................... 321.7
9
Demand:
Private....................................................... 166.6
10
3.4
11
U.S. G ovt.................................................
510.9
337.2
534.8
353.6
547.6
369.5
548.3
371.7
552.1
373.0
558.2
377.5
562.1
380.7
575.3
386.4
581.3
390.3
572.5
393.2
579.5
399.3
170.7
3.1
177.9
3.3
175.6
2 .6
174.1
2.5
175.2
3.8
178.0
2 .7
178.7
2 .6
185.1
3.8
187.9
3.1
176.1
3.1
176.7
3.5
i
Series reflects actual reserve requirement percentages with no adjust
ment to eliminate the effect o f changes in Regulations D and M. There
are breaks in series because o f changes in reserve requirements effective
Dec. 12,1974; Feb. 13, May 22, and Oct. 30,1975; Jan. 8, and Dec. 30,1976.
In addition, effective Jan. 1, 1976, statewide branching in New York
was instituted. The subsequent merger o f a number o f banks raised
required reserves because o f higher reserve requirements on aggregate
deposits at these banks.
1.23
LOANS A N D INVESTM ENTS
2 Includes total time and savings deposits and net demand deposits as
defined by Regulation D. Private demand deposits include all demand
deposits except those due to the U.S. Govt., less cash items in process o f
collection and demand balances due from domestic commercial banks.
N ote.—Back data and estimates o f the impact on required reserves
and changes in reserve requirements are shown in Table 14 o f the Board’s
Annual Statistical Digest, 1971-1975.
All Commercial Banks
Billions o f dollars; last Wednesday o f month except for June 30 and Dec. 31
1973
Dec. 31
Category
1974
Dec. 31
3
1977
1975
Dec. 31
1978
1976
Dec. 31
Nov. 30 Dec. 31 Jan. 25
V
p
V
Feb. 22
V
Mar. 29
p
Apr. 26
p
Seasonally adjusted
1 Loans and investments1.............................................
2
Including loans sold outright2 ............................
633.4
637.7
690.4
695.2
721.1
725.5
784.4
788.2
866.1
870.5
865.4
870.0
874.3
878.8
881.9
886.2
888.8
892.9
904.8
6 909.3
3
4
5
6
Loans:
T otal..........................................................................
Including loans sold outright2 ........................
Commercial and industrial...................................
Including loans sold outright2 ........................
449.0
453.3
156.4
159.0
500.2
505.0
183.3
186.0
496.9
501.3
176.0
178.5
538.9
542.7
4179.5
4181.9
611.2
615.6
201.6
204.7
612.9
617.5
5202.2
5205.5
622.4
626.9
204.6
207.7
625.4
629.7
207.1
210.1
633.5
637.6
211.0
213.9
645.0
6 649.5
214.4
6216.7
7
8
Investments:
U.S. Treasury..........................................................
Other.........................................................................
54.5
129.9
50.4
139.8
79.4
144.8
97.3
148.2
95.0
159.9
93.5
159.0
92.5
159.4
97.5
159.0
96.5
158.8
98.4
161.4
N ot seasonally adjusted
9 Loans and investments1.............................................
10 Including loans sold outright2 ............................
647.3
651.6
705.6
710.4
737.0
741.4
801.6
805.4
866.4
870.8
884.5
889.1
872.7
877.2
875.0
879.3
886.5
890.6
901.8
6 906.3
11
12
13
14
L oans:
Total1........................................................................
Including loans sold outright2 ........................
Commercial and industrial.................................
Including loans sold outright2.......................
458.5
462.8
159.4
162.0
510.7
515.5
186.8
189.5
507.4
511.8
179.3
181.8
550.2
554.0
4182.9
4185.3
610.1
614.6
200.8
203.9
625.7
630.4
5206.0
5209.3
617.0
621.5
202.5
205.6
617.9
622.2
205.0
208.0
629.4
633.5
210.9
213.8
640.2
6 644.7
214.7
6217.0
15
16
Investments:
U.S. Treasury..........................................................
Other.........................................................................
58.3
130.6
54.5
140.5
84.1
145.5
102.5
148.9
97.9
158.4
98.9
159.8
97.2
158.5
98.9
158.1
97.9
159.2
98.9
162.7
For notes see bottom o f opposite page.
A16
Domestic Financial Statistics □ M ay 1978
1.24
C OM M ERCIA L BAN K ASSETS A N D LIABILITIES
Last-Wednesday-of-Month Series
Billions o f dollars except for number o f banks
1977 3
1976
Account
D ec. 3
July?
Aug.*
Sept.?
19783
Oct.*
Nov.*
Dec.*
Jan.*
Feb.*
Mar.*
Apr.*
All commercial
1 Loans and investments.................
2
Loans, gross..............................
Investments:
U.S. Treasury securities. .
3
4
Other......................................
846.4
594.9
875.0
620.7
886.8
632.2
891.4
637.1
897.7
642.9
915.0
658.7
931.6
673.4
919.9
664.2
924.4
667.4
934.4
677.2
946.1
684.4
102.5
148.9
100.0
154.3
99.4
155.2
98.5
155.9
97.7
157.1
97.8
158.4
98.9
159.3
97.2
158.5
98.9
158.1
97.9
159.2
98.9
162.7
5
6
7
8
9
136.1
12.1
26.1
49.6
48.4
126.9
13.5
27.2
42.4
43.9
135.5
13.7
28.2
45.3
48.3
128.7
13.9
30.0
42.7
42.1
129.4
13.9
28.3
44.4
42.8
138.8
14.7
26.3
46.8
51.0
150.1
15.8
32.1
48.8
53.5
128.0
14.1
26.6
43.3
4 4 .0
146.5
13.9
31.0
47.4
54.2
131.4
14.3
30.2
43.8
43.1
134.0
14.2
27.6
44.5
47.7
1, 112.8 1,136.7 1,134.6
1,149.1
Cash assets..................................
Reserves with F.R. Banks. . .
Balances with banks..............
Cash items in process o f collection..
10
Total
assets/total
liabilities
11
Deposits.......................................
Demand:
and
1,030.7 1 ,059.3 1 ,0 7 9.7 1,076.7 1,083.9 1,117.5 1,145.4
838.2
843.2
857.6
852.1
858.8
883.5
908.5
880.3
895.8
892.4
906.4
45.4
3 .0
288.4
38.2
3.8
273.9
39.6
2.5
285.1
37.1
8.0
272.5
37.5
3.6
279.4
41.8
4 .7
293.2
43.7
7.2
307.0
37.3
4 .5
283.8
42.8
5.8
287.8
37.6
4 .8
279.4
39.0
6 .0
291.3
Other......................................
9 .2
492.2
8.3
519.0
8 .0
522.6
8.3
526.1
8.5
529.9
9 .0
534.8
9 .6
541.1
9 .2
545.5
8.8
550.7
9.1
561.5
9.1
561.1
17 Borrowings....................................
18 Total capital accounts2 ...............
80.2
78.1
92.2
79.0
94.8
79.6
96.5
80.1
96.8
80.5
101.0
81.4
107.1
81.6
101.7
82.2
105.7
82.6
107.3
83.2
106.5
83.6
14,671
14,709
14,713
14,724
14,718
14,718
14,703
14,702
14,683
14,689
14,689
12
13
14
15
16
19
U.S. Govt............................
Other....................................
Time:
M emo: Number o f banks..........
Member
20
21
Loans and investments................
Loans, gross..............................
Investments:
U.S. Treasury securities. . .
620.5
442.9
628.9
451.3
637.9
459.9
640.8
463.0
645.2
467.1
658.6
479.0
670.8
489.9
659.5
481.8
661.8
483.1
668.6
490.5
676.8
495.3
74.6
103.1
70.8
106.8
70.5
107.5
69.6
108.3
68.9
109.3
69.2
110.3
69.9
111.1
67.7
110.0
69.2
109.5
68.2
109.9
68.8
112.7
24
25
26
27
28
Cash assets, to ta l.........................
108.9
9.1
26.0
27.4
46.5
101.2
9.9
27.2
22.0
42.1
108.6
10.0
28.2
2 4.0
4 6.4
103.1
10.2
30.0
22.5
40.4
102.3
10.2
28.3
22.8
41.0
110.6
10.8
26.3
24.7
48.9
121.7
11.7
32.1
26.6
51.3
102.2
10.4
26.6
23 .0
42 .2
117.2
10.2
31.0
24 .6
51.4
104.8
10.6
30.2
22.9
41 .2
106.5
10.5
27.6
22.7
45.7
29
Total assets/total liabilities and
capital1......................................
772.9
780.1
796.3
793.2
796.5
823.9
847.0
818.0
835.7
833.2
843.3
618.7
611.0
622.2
617.0
620.9
641.8
660.8
636.8
649.2
645.1
655.1
42.4
2.1
215.5
35.3
2 .8
202.2
36.6
1.7
211.0
34.3
6.4
200.3
34.6
2 .6
205.3
38.7
3.6
216.4
40.4
5.3
226.3
34.4
3.4
208.4
39.5
4 .4
211.8
34.7
3.7
205.1
36.0
4 .5
213.4
Other......................................
7 .2
351.5
6.3
364.4
6 .0
366.9
6.3
369.6
6.5
372.0
6.8
376.2
7.4
381.4
7.1
383.5
6.7
386.9
7 .0
394.7
6.9
394.3
Borrowings....................................
Total capital accounts2 ...............
71.7
58.6
80.4
59.4
82.5
59.9
84.0
60.2
83.8
60.6
87.8
61.2
93.4
61.4
88.0
61.7
90.8
62.1
91.8
62.4
91.1
62.7
5,759
5,701
5,676
5,692
5,686
5,686
5,668
5,658
5*658
5,652
5,652
22
23
Reserves with F.R. Banks. . .
Balances with banks...............
Cash items in process o f collection..
30
31
32
33
34
35
36
37
Demand:
Interbank...............................
U .S. Govt..............................
Other......................................
Time:
38
1 Includes items not shown separately.
Effective Mar. 31, 1976, some o f the item “reserve for loan losses’*
and all o f the item “unearned income on loans” are no longer reported
as liabilities. As of that date the “valuation” portion o f “reserve for
loan losses” and the “unearned income on loans” have been netted
against “other assets,” and against “total assets” as well.
Total liabilities continue to include the deferred income tax portion o f
“reserve for loan losses.”
2 Effective Mar. 31, 1976, includes “reserves for securities” and the
contingency portion (which is small) o f “reserve for loan losses.”
3 Figures partly estimated except on call dates.
N ote.—Figures include all bank-premises subsidiaries and other sig
nificant majority-owned domestic subsidiaries.
Commercial banks: All such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches o f foreign banks, but excluding one na
tional bank in Puerto Rico and one in the Virgin Islands.
Member banks: The following numbers o f noninsured trust companies
that are members o f the Federal Reserve System are excluded from mem
ber banks in Tables 1.24 and 1.2S and are included with noninsured banks
in Table 1.25: 1974— June, 2; December, 3; 1975—June and December,
4; 1976 (beginning month shown)—July, 5; December, 7; 1977-January, 8.
C om m ercial Banks
1.25 COMMERCIAL BANK ASSETS A N D LIABILITIES
A17
Call-Date Series
Millions o f dollars except for number o f banks
1975
1976
1977
1975
June 30
Dec. 31
1976
1977
Account
Dec. 31
June 30
Dec. 31
Total insured
June 30
Dec. 31
June 30
National (all insured)
1 Loans and investments, gross....................................
Loans:
Gross.....................................................................
N et.........................................................................
Investments:
4
U.S. Treasury securities....................................
5
Other.....................................................................
6 Cash assets........................................ ...........................
762,400
773,701
827,692
854,736
441,135
443,959
476,602
488,240
535,170
( 2)
539,021
520,976
578,710
560,062
601,141
581,163
315,738
( 2)
315,628
305,280
340,679
329,968
351,311
339,955
83,629
143,602
128,256
90,947
143,731
124,072
101,463
147,517
129,581
100,566
153,029
130,724
46,799
78,598
78,026
49,688
78,642
75,488
55,729
80,193
76,074
53,346
83,582
74,641
7
944,654
942,519 1,004,001 1,040,952
553,285
548,702
583,315
599,743
775,209
776,957
825,010
847,373
447,590
444,251
469,378
476,381
2
3
8
3,108
40,259
276,384
4,622
37,502
265,671
3,020
44,068
285,201
2,817
44.965
284,544
1,788
22,305
159,840
2,858
20,329
152,383
1,674
23,148
163,347
1,632
22,876
161,358
12
13
Deposits.........................................................................
D em and:
U.S. G ovt.............................................................
Interbank.............................................................
Other.....................................................................
Time:
Interbank.............................................................
Other......................................................................
10,733
444,725
9,406
459,753
8,249
484,470
7,721
507,323
7,302
256,355
5,532
263,147
4,909
276,298
4,599
285,915
14
15
Borrowings...................................................................
Total capital accounts................................................
56,775
68,474
63,828
68,988
75,302
72,065
81,157
75,503
40,875
38,969
45,187
39,501
54,420
41,323
57,283
43,142
16
M emo : Number o f banks........................................
14,372
14,373
14,397
14,425
4,741
4,747
4,735
4,701
9
10
11
State member (all insured)
Insured nonmember
17 Loans and investments, gross....................................
Loans:
18
Gross.....................................................................
19
N et.........................................................................
Investments:
20
U.S. Treasury securities....................................
21
Other......................................................................
22 Cash assets....................................................................
137,620
136,915
144,000
144,597
183,645
192,825
207,089
221,898
100,823
( 2)
98,889
96,037
102,277
99,474
102,144
99,200
118,609
( 2)
124,503
119,658
135,753
130,618
147,685
142,008
14,720
22,077
30,451
16,323
21,702
30,422
18,849
22,873
32,859
19,296
23,157
35,918
22,109
42,927
19,778
24,934
43,387
18,161
26,884
44,450
20,647
27,923
46,288
20,164
23
Total assets/total liabilities........................................
180,495
179,649
189,578
195,455
210,874
214,167
231,106
245,753
24
143,409
142,061
149,491
152,471
184,210
190,644
206,140
218,519
467
16,265
50,984
869
15,833
49,659
429
19,295
52,204
371
20,568
52,571
853
1,689
65,560
894
1,339
63,629
917
1,624
69,649
813
1,520
70,615
28
29
Deposits.........................................................................
D emand:
U.S. G ovt.............................................................
Interbank..............................................................
Other......................................................................
Time:
Interbank..............................................................
Other........................................ .............................
2,712
72,981
3,074
72,624
2,384
75,178
2,134
76,826
719
115,389
799
123,980
956
132,993
988
144,581
30
31
Borrowings...................................................................
Total capital accounts...........................................^ .
12,771
13,105
15,300
12,791
17,310
13,199
19,718
13,441
3,128
16,400
3,339
16,696
3,571
17,543
4,155
18,919
32
M emo: Number o f banks........................................
1,046
1,029
1,023
1,019
8,585
8,597
8,639
8,705
25
26
27
Noninsured nonmember
33
Total nonmember
13,674
15,905
18,819
22,940
197,319
208,730
225,909
244,839
11,283
( 2)
13,209
13,092
16,336
16,209
20,865
20,679
129,892
( 2)
137,712
132,751
152,090
146,828
168,551
162,687
36
37
38
Loans and investments, gross....................................
Loans:
Gross.....................................................................
N et.........................................................................
Investments:
U.S. Treasury securities....................................
Other......................................................................
Cash assets....................................................................
490
1,902
5,359
472
2,223
4,362
1,054
1,428
6,496
993
1,081
8,330
22,599
44,829
25,137
25,407
45,610
22,524
27,939
45,879
27,144
28,917
47,370
28,494
39
Total assets/total liabilities........................................
20,544
21,271
26,790
33,390
231,418
235,439
257,897
279,143
40
11,323
11,735
13,325
14,658
195,533
202,380
219,466
233,177
6
1,552
2,308
4
1,006
2,555
4
1,277
3,236
8
1,504
3,588
859
3,241
67,868
899
2,346
66,184
921
2,901
72,885
822
3,025
74,203
44
45
Deposits.........................................................................
Demand:
U.S. G ovt.............................................................
Interbank..............................................................
Other......................................................................
Time:
Interbank..............................................................
Other......................................................................
1,291
6,167
1,292
6,876
1,041
7,766
1,164
8,392
2,010
121,556
2,092
130,857
1,997
140,760
2,152
152,974
46
47
Borrowings...................................................................
Total capital accounts.................................................
3,449
651
3,372
663
4,842
818
7,056
893
6,577
17,051
6,711
17,359
8,413
18,361
11,212
19,813
48
M emo: Number o f banks........................................
261
270
275
293
8,846
8,867
8,914
8,998
34
35
41
42
43
1 Includes items not shown separately.
2 Not available.
For Note see Table 1.24.
A18
Domestic Financial Statistics □ M ay 1978
1.26
COM M ERCIA L BANK ASSETS A N D LIABILITIES
Detailed Balance Sheet, September 30, 1977
Asset and liability items are shown in millions o f dollars.
Member banks1
Asset account
Insured
commercial
banks
Nonmember
banks1
Large banks
All other
Total
1
2
Currency and co in .........................................................................
4
5
6
7
Demand balances with banks in United States.......................
Other balances with banks in United States...........................
Balances with banks in foreign countries.................................
Cash items in process o f collection............................................
8
9
10
11
12
n
U.S. Treasury..................................................................................
Other U.S. Govt, agencies...........................................................
All other securities........................................................................
New York
City
City o f
Chicago
Other
large
140,401
11,322
25,582
34,233
4,544
3,570
61,150
119,931
8,309
25,582
21,301
2,559
3,206
58,974
37,228
786
2,658
9,956
50
346
23,433
4,748
166
1,592
’242
8
174
2,565
43,071
2,741
11,035
2,919
948
1,785
23,583
34,883
4,618
10 297
8 ’, 124
1,552
900
9,392
20,477
3,012
253,100
98,633
35,232
113,002
6,142
91
178,314
70,747
21,954
81,356
4,198
58
22,398
11,319
1,435
9,276
368
8,518
3,700
629
3,953
236
57,243
23,234
5,911
26,854
1,224
19
90,155
32,494
13,979
41,273
2,370
39
74,798
27,897
13,278
31,646
1,944
33
12,939
1,986
365
2,176
14
15
16
17
18
14
Trading-account securities.............................................................
U.S. Treasury..............................................................................
Other U.S. Govt, agencies.......................................................
States and political subdivisions............................................
All other trading acct. securities............................................
6,524
3,824
629
1,471
510
91
6,399
3,815
612
1,438
477
58
2,912
2,019
228
536
129
762
458
125
97
82
2,465
1,232
224
726
264
19
260
105
35
79
2
39
125
9
18
32
33
33
20
21
22
23
24
Bank investment portfolios...........................................................
U.S. Treasury..............................................................................
Other U.S. Govt, agencies.......................................................
States and political subdivisions............................................
246,575
94,810
34,603
111,531
5,632
171,914
66,932
21,343
79,918
3,721
19,486
9,300
1,207
8,740
239
7,756
3,242
504
3,856
154
54,777
22,002
5,687
26,128
960
89,895
32,389
13,945
41,194
2,368
74,673
27,887
13,261
31,614
1,911
25 F.R. stock and corporate stock......................................................
1,590
1,342
296
105
489
452
248
26 Federal funds sold and securities resale agreement.......................
27
Commercial banks.........................................................................
28
Brokers and dealers.......................................................................
29
42,200
34,701
5,104
2,396
33,672
26,484
4,960
2,228
3,450
1,461
1,337
652
1,366
1,180
143
43
17,721
13,524
2,828
1,369
11,135
10,319
652
163
8,623
8,311
144
168
30 Other loans, gross..............................................................................
31
L ess: Unearned income on loans..............................................
32
Reserves for loan lo ss.......................................................
33
Other loans, net..............................................................................
581,099
14,273
6,549
560,277
435,012
9,632
5,216
420,164
72,932
600
1,225
71,107
22,648
85
326
22,237
161,728
3,116
1,923
156,689
177,704
5,831
1,742
170,130
146,088
4,641
1,333
140,113
169,334
19,606
7,607
96,512
91, 776
7,723
84,053
4,736
367
4,369
45,609
117,012
14.940
3,259
67,990
64,582
6,708
57,874
3,408
306
3,102
30,824
9,227
2,327
20
4,516
4,038
568
3,470
479
106
373
2,364
2,172
429
12
1,146
1,041
60
981
105
22
83
585
42,901
7,169
335
25,297
24,008
3,518
20,490
1,289
107
1,183
10,099
62,713
5,014
2,893
37,030
35,496
2,562
32,934
1,535
71
1,463
17,776
52,322
4,666
4,348
28,522
27,194
1,016
26,179
1,328
61
1,267
14,786
33,962
9,039
2,581
6,621
1,250
14,472
11,478
4,257
26,271
186,730
32,105
8,690
2,074
6,446
1,100
13,795
11,239
3,542
14,434
151,470
11,365
2,813
679
3,008
98
4,768
6,508
418
154
36,443
4,050
1,009
113
286
47
2,595
1,693
342
127
11,083
13,800
4,180
1,029
2,624
718
5,249
2,808
1,819
3,392
58,955
2,890
688
253
528
237
1,183
231
964
10,760
44,989
1,858
350
507
175
150
677
239
715
11,836
35,260
Single-payment loans to individuals......................................
All other loans................................................................................
134,381
107,454
47,716
7,071
16,348
12,697
3,651
17,214
9,051
8,163
19,105
26,927
14,687
92,783
74,070
30,562
4,711
14,377
11,334
3,043
11,737
6,365
5,372
12,682
18,714
12,426
6,237
4,616
887
297
1,929
1,281
648
365
183
182
1,138
1,621
2,581
1,966
1,210
149
61
815
776
39
60
24
36
125
757
1,214
32,768
26,608
8,950
1,682
7,932
6,403
1,529
4,263
2,283
1,980
3,780
6,160
5,286
51,813
41,636
20,576
2,671
3,701
2,874
826
7,049
3,875
3,175
7,639
10,177
3,345
41,597
33,384
17,154
2,359
1,971
1,363
608
5,477
2,686
2,791
6,423
8,213
2,261
68 Total loans and securities, net.........................................................
857,167
633,492
97,251
32,226
232,142
271,872
223,782
5,433
20,681
2,816
11,822
28,438
5,094
15,388
2,775
11,357
24,850
964
2,191
1,290
5,459
8,359
136
721
234
794
1,246
3,125
5,882
1,161
4,800
10,811
871
6,593
90
303
4,434
339
5,296
41
465
3,653
74 Total assets........................................................................................... 1,066,758
812,886
152,743
40,105
300,993
319,045
254,052
Other loans, gross, by category
Real estate loans.............................................................................
Construction and land development......................................
Secured by farmland.................................................................
Secured by residential...............................................................
1- to 4-family residences.......................................................
34
35
36
37
38
39
40
41
42
43
44
Conventional......................................................................
Multifamily residences...........................................................
FHA-insured......................................................................
Conventional......................................................................
Secured by other properties.....................................................
45
46
47
48
49
50
51
52
53
54
Loans to financial institutions.......................................................
To REIT’s and mortgage companies....................................
To domestic commercial banks..............................................
To other depository institutions .*..........................................
To other financial institutions................................................
Loans to security brokers and dealers......................................
Other loans to purch./carry securities.......................................
Loans to farmers—except real estate........................................
Commercial and industrial loans...............................................
55
56
57
58
59
60
61
62
63
64
65
66
67
69
70
71
72
73
Instalment loans..........................................................................
Passenger automobiles.........................................................
Residential-repair/modernize..............................................
Credit cards and related plans............................................
Charge-account credit cards...........................................
Check and revolving credit plans..................................
Other retail consumer goods...............................................
Mobile hom es....................................................................
Other....................................................................................
Direct lease financing........................................................................
Fixed assets—Buildings, furniture, real estate............................
Investment in unconsolidated subsidiaries...................................
Customer acceptances outstanding................................................
Other assets.........................................................................................
For notes see opposite page.
C om m ercial Banks
A19
1.26 Continued
Member banks1
Liability or capital account
Insured
commercial1
banks
Large banks
Total
New York
City
City of
Chicago
Other
large
All other
Non
member
banks1
75 Demand deposits..............................................................................
76
Mutual savings banks.................................................................
77
Other individuals, partnerships, and corporations...............
78
U.S. Govt......................................................................................
79
States and political subdivisions..............................................
80
Foreign governments, central banks, etc................................
81
82
Banks in foreign countries.........................................................
83
Certified and officers’ checks, etc.............................................
334,879
1,355
255,804
5,279
16,719
1,478
34,016
6,713
13,516
260,255
1,180
191,532
4,095
11,572
1,444
32,875
6,571
10,987
60,788
596
31,048
356
773
1,192
16,823
5,203
4,797
10,020
1
7,343
138
264
16
1,718
199
341
93,342
258
72,990
1,815
3,498
214
10,513
1.013
3,042
96,105
325
80,151
1,787
7,037
22
3,819
157
2,807
74,633
175
64,273
1,184
5,147
34
1,151
142
2,529
84 Time deposits....................................................................................
8S Accumulated for personal loan payments.............................
86
Mutual savings banks.................................................................
Other individuals, partnerships, and corporations...............
87
88
U.S. Govt......................................................................................
89
States and political subdivisions..............................................
90
Foreign governments, central banks, etc.
.....................
91
Commercial banks in United States........................................
92
Banks in foreign countries.......................................................•.
309,412
122
307
245,125
811
48,847
7,189
5,428
1,583
223,635
98
295
176,081
660
33,495
6,883
4.700
1,422
32,640
13,458
122
24,649
50
1,517
3,999
1,517
787
69
10,037
46
1,309
1,308
607
82
77,932
11
88
60,163
356
13,623
1,522
1,896
274
99,605
87
17
81,233
208
17,046
54
681
280
85,777
24
12
69,043
151
15,352
306
728
161
93 Savings deposits................................................................................
94
Individuals and nonprofit organizations................................
95
Corporations and other profit organizations.........................
96
U.S. Government........................................................................
97
98
All other........................................................................................
217,555
201,982
10,618
57
4,859
38
152,871
141,902
7,618
49
3,267
35
11,515
10,541
596
4
355
20
3,027
2,828
179
55,808
51,981
3,182
16
617
11
82,521
76,553
3,661
29
2,274
5
64,684
60,081
3,000
g
1,593
3
99 Total deposits....................................................................................
861,847
636,761
104,944
26,506
227,081
278,231
225,095
107 Other liabilities................................................................................
80,475
40,568
10,327
29,580
6,941
822
12,448
21,082
76,053
38,676
9,920
27,457
6,594
587
11,983
18,543
19,246
7,239
1,872
10,135
2,305
75
6,063
6,979
8,847
5,918
1,551
1,378
134
16
802
980
37,148
21,034
5,197
10,917
3,299
293
4,813
6,972
10,811
4,485
1,299
5,027
855
202
305
3,612
4,422
1,892
408
2,123
347
236
465
2,701
108 Total liabilities..................................................................................
983,615
750,520
139,612
37,285
279,697
294,016
233,266
5,452
4,296
1,116
81
1,920
1,179
1,156
77,691
76
16,800
30.310
28,784
1,721
58,070
31
12,196
22,243
22,414
1,187
12,014
2,740
2,534
4,550
4,891
39
570
1,325
791
53
19,466
2
3,869
7,901
7,289
405
23,850
29
5,223
8,467
9,442
690
19,630
45
4,608
8,070
6,373
534
116 Total liabilities and equity capital................................................ 1,066,758
812,866
152,743
40,105
300,993
319,045
254,052
234,434
164,312
20,176
5,599
57,431
81,106
70,123
130,354
111,396
32,164
4,734
41,131
33,367
18,964
45,457
562,308
137,978
845,729
35,524
421,470
112.438
622,100
4,308
71,435
26,334
96,770
1,467
22,100
10,410
25,565
17,459
157,150
46,080
233,052
12,290
170,785
29,613
276,712
9,997
140,838
25,540
223,636
85,514
6,792
81,480
6,436
23,101
2,125
10,134
110
37,645
3,470
10,600
732
4,034
356
125 Standby letters of credit outstanding..........................................
126 Time deposits o f $100,000 or m ore.............................................
127
Certificates o f deposit.................................................................
Other time deposits.....................................................................
128
13,068
141,125
118,970
22,155
12,223
114,857
96,381
18,477
6,744
26,424
22,542
3,882
1,036
10,626
9,270
1,356
3,515
47,351
38,845
8,686
928
30,276
25,724
4,553
845
26,268
22,589
3,679
129 Number o f banks............................................................................
14,420
5,691
12
9
154
5,516
8,739
100 Federal funds purchased and securities sold under agreements
to repurchase............................................................................
Commercial banks.......................................................................
101
102
Brokers and dealers.....................................................................
103
Others............................................................................................
104 Other liabilities for borrowed money..........................................
105 Mortgage indebtedness...................................................................
109
110 Equity capital....................................................................................
I ll
Preferred stock.............................................................................
112
Common stock.............................................................................
113
Surplus...........................................................................................
114
Undivided profits.........................................................................
Other capital reserves....................................................... . . . .
115
117
118
119
120
121
122
123
124
M emo items:
Demand deposits adjusted2...........................................................
Average for last 15 or 30 days:
Cash and due from bank...........................................................
Federal funds sold and securities purchased under agree
ments to resell.....................................................................
Total loans....................................................................................
Time deposits o f $100,000 or more.........................................
Total deposits...............................................................................
Federal funds purchased and securities sold under agree
ments to repurchase...........................................................
Other liabilities for borrowed money......................................
1 Member banks exclude and nonmember banks include 10 noninsured
trust companies that are members o f the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process o f collection.
20
N ote.—D ata include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned do
mestic subsidiaries. Securities are reported on a gross basis before deduc
tions of valuation reserves. Holdings by type o f security will be reported
as soon as they become available.
Back data in lesser detail were shown in previous B ulletins. Details
may not add to totals because o f rounding.
A20
Domestic Financial Statistics □ M ay 1978
1.27 A L L LARGE W EEK LY REPORTING COMMERCIAL BANKS Assets and Liabilities
Millions o f dollars, Wednesday figures
1978
Account
1 Total loans and investments...................................
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Loans:
Federal funds sold1..............................................
To commercial banks.................................... .
To brokers and dealers involving—
U.S. Treasury securities............................
Other securities............................................
To others...........................................................
Other, gross...........................................................
Commercial and industrial...........................
Agricultural......................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities........................
Other securities.......................................
To others:
U.S. Treasury securities........................
Other securities.......................................
To nonbank financial institutions:
Personal and sales finance cos., etc........
Other.............................................................
Real estate........................................................
To commercial banks:
Domestic......................................................
Foreign.........................................................
Consumer instalment.....................................
Foreign govts., official institutions, etc-----All other loans................................................
L ess: Loan loss reserve and unearned income
on loans............................................
Other loans, net...................................................
32
33
Investments:
U.S. Treasury securities.....................................
B ills....................................................................
Notes and bonds, by maturity:
Within 1 year...............................................
1 to 5 years...................................................
After 5 years.................................................
Other securities.....................................................
Obligations o f States and political
subdivisions:
Tax warrants, short-term notes, and
bills........................................................
All other........................................................
Other bonds, corporate stocks, and
securities:
Certificates o f participation2 . .................
All other, including corporate stocks. . .
34
35
36
37
38
39
Cash items in process o f collection.....................
Reserves with F.R. Banks.....................................
Currency and coin..................................................
Balances with domestic banks.............................
Investments in subsidiaries not consolidated...
Other assets..............................................................
24
25
26
27
28
29
30
31
40 Total assets/total liabilities......................................
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
D eposits:
Demand deposits..................................................
Individuals, partnerships, and corps...........
States and political subdivisions....................
U.S. Govt.........................................................
Domestic interbank:
Commercial..................................................
Mutual savings............................................
Foreign:
Governments, official institutions, e tc ...,
Commerial banks.......................................
Certified and officers’ checks.......................
Time and savings deposits3.................................
Savings4............................................................
Time:
Individuals, partnerships, and corps.
States and political subdivisions..............
Domestic interbank....................................
Foreign govts., official institutions, e tc ..
57 Federal funds purchased, etc.5 ............................
Borrowings from:
58
F.R. Banks............................................................
59
Others.....................................................................
60 Other liabilities, etc.6 ..............................................
61 Total equity capital and subordinated
notes/debentures7 .................... ........................
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5*
Apr. 12p Apr. 19? Apr. 26?
445,432
449,801
452,846
448,017
447,645
459,338
455,098
460,972
453,529
23,635
18,877
25,878
19,430
26,925
20,105
24,929
19,882
25,271
20,214
30,143
21,292
25,933
19,363
28,076
21,556
23,969
18,150
2,261
460
2,037
3,511
601
2,336
3,790
582
2,448
2,426
532
2,089
2,274
507
2,276
4,944
691
3,216
3,703
647
2,220
3,856
662
2,002
3,076
673
2,070
320,578
126,773
4,557
320,891
127,137
4,595
322,828
128,042
4,649
321,675
128,362
4,677
322,096
128,804
4,711
326,445
129,564
4,740
325,344
130,027
4,746
327,749
130,731
4,777
326,523
130,609
4,793
1,189
8,757
2,125
8,685
1,790
9,557
1,102
8,716
818
8,044
2,363
9,176
1,558
8,905
2,000
9,446
1,354
8,645
106
2,612
104
2,579
100
2,584
99
2,544
2,559
2,584
2,583
2,597
2,609
7,317
15,094
75,879
7,393
15,097
76,061
7,519
15,046
76,391
7,510
15,010
76,585
7,486
15,104
76,788
7.685
15,282
76,937
7,566
15,156
77,239
7,524
15,055
77,562
7,590
15,029
77,713
2,278
6,428
46,784
1,652
21,152
2,030
6,064
46,770
1,739
20,512
1,880
5,984
46,878
1,627
20,781
2,002
5,880
46,986
1,681
20,521
1,990
6,238
47,234
1,736
20,484
2,098
6,244
47,382
1.686
20,603
1,969
5,998
47,558
1,630
20,308
1,956
5,717
47.845
1,594
20.845
2,054
5,637
48,098
1,654
20,637
9,544
311,034
9,628
311,263
9,665
313,163
9,694
311,981
9,629
312,467
9,587
316,858
9,676
315,668
9,746
318,003
9,764
316,759
44,969
6,589
46,786
7,750
46,297
7,454
44,754
6,706
44,038
6,328
46,405
7,743
46,698
7,726
46,071
7,385
44,524
5,659
8,779
25,081
4,520
65,794
8,774
25,804
4,458
65,874
8,745
25,889
4,209
66,461
8,426
25,509
4,113
66,353
8,393
25,221
4,096
65,869
8,310
25,746
4,606
65,932
8,476
25,556
4,940
66,799
8,433
25,505
4,748
68,822
8,449
25,614
4,802
68,277
6,886
43,169
6,906
43,271
7,270
43,541
7,060
43,444
6,532
43,469
6,533
43,424
6,878
43,773
8,401
44,325
8,118
44,362
2,741
12,998
2,739
12,958
2,741
12,909
2,751
13,098
2,786
13,082
2,738
13,237
2,739
13,409
2,815
13,281
2,802
12,995
47,423
21,595
6,057
14,967
3,072
63,630
37,616
18,953
5,783
13,484
3,118
63,299
45,353
20,018
6,018
13,878
3,110
62,952
39,643
19,814
6,149
14,247
3,056
64,417
37,316
23,192
6,572
13,399
3,069
64,553
46,461
18,499
5,659
15,290
3,109
66,497
42,153
19,737
6,285
13,204
3,142
66,617
42,055
20,459
6,314
14,043
3,132
64,248
41,647
20,025
6,454
13,478
3,173
64,060
602,176
592,054
604,175
595,343
595,746
614,853
606,236
611,223
602,366
191,532
136,346
6,360
2,745
175,897
128,210
5,437
1,052
191,386
135,366
5,944
5,730
178,321
128,802
6,018
1,829
177,269
128,408
5,665
2,702
193,949
135,717
5,738
3,281
185,761
136,595
5,767
1.783
189,474
135,453
5,743
4,662
184,443
132,836
6,103
2,853
29,172
885
26,028
845
28,036
908
25,858
737
24,482
757
29,496
1,057
25,450
893
27,114
872
25,959
853
1,238
7,139
7,647
254,902
92,642
162,260
122,255
24,891
5,233
8,461
1,227
6,720
6,378
257,096
93,089
164,007
123,820
24,968
5,464
8,272
1,149
6,655
7,598
257,648
93,265
164,383
124,362
24,827
5,495
8,241
1,167
7,459
6,451
259,176
93,524
165,652
125,654
24,954
5,435
8,162
1,359
7,130
6,766
260,621
94,014
166,607
126,549
24,916
5,524
8,160
1,652
6,568
10,440
259,556
94,494
165,062
125,898
24,648
5,218
7,841
1,629
6,554
7,090
259,080
94,057
165,023
125,884
24,804
5,143
7,690
1,198
6,898
7,534
258,866
93,351
165,515
125,747
25,363
5,201
7,618
1,382
6,883
7,574
260,069
93,156
166,913
126,722
25,657
5,317
7,556
76,734
79,137
76,753
78,878
78,930
81,651
81,389
82,974
76,451
574
5,022
28,092
651
5,476
28,406
232
5,123
27,795
165
5,189
28,309
119
5,496
27,943
29
5,854
28,427
68
5.783
28,648
435
5,673
28,412
1,450
5,949
28,444
45,320
45,391
45,238
45,305
45,368
45,387
45,507
45,389
45,560
* Includes securities purchased under agreements to resell.
2 Federal agencies only.
.
...
3 Includes time deposits o f U.S. Govt, and o f foreign banks, which are
not shown separately.
.
4 For amounts o f these deposits by ownership categories, see Table l.JU.
FRASER
Digitized for
100
101
101
100
101
* Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion o f reserves for loans.
7 Includes reserves for securities and contingency portion o f reserves
for loans.
W eekly R eporting Banks
1.128 LARGE W EEKLY REPORTING COMMERCIAL BANKS IN NEW YO R K C IT Y
A21
Assets and Liabilities
Millions o f dollars, Wednesday figures
1978
Account
1 Total loans and investments.....................................
Loans:
2
Federal funds sold1................................................
3
To commercial banks.......................................
To brokers and dealers involving—
4
U.S. treasury securities................................
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5p
Apr. 12»
92,146
92,153
93,766
91,505
90,049
94,070
93,178
94,706
92,394
3,870
2,383
3,839
2,141
4,552
2,653
5,042
3,456
4,704
3,178
4,427
2,080
4,560
2,652
4,388
1,859
5,028
2,801
Apr. 19^ Apr. 26 p
766
898
1,242
6
To others.............................................................
721
800
657
892
2
692
793
2
731
1,231
4
1,112
1,480
1
427
2,119
1
409
1,751
1
475
7
8
9
Other gross..............................................................
Commercial and industrial..............................
Agricultural........................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities..........................
Other securities..........................................
To others:
U.S. Treasury securities..........................
Other securities..........................................
To nonbank financial institutions:
Personal and sales finance cos., etc...........
Other...............................................................
Real estate...........................................................
To commercial banks:
Domestic.........................................................
Foreign............................................................
Consumer instalment........................................
Foreign govts, official institutions, etc..........
All other loans...................................................
Less: Loan loss reserve and unearned income
on loans....................................................
Other loans, net......................................................
69,562
34,297
161
69,319
34,194
165
70,144
34,602
167
68,435
34,377
171
68,083
34,628
166
70,334
34,552
164
68,706
34,508
156
69,236
34,391
155
67,846
33,951
157
1,052
4,733
1,864
4,615
1,653
5,212
962
4,550
679
4,083
2,200
4,777
1,388
4,562
1,729
4,873
1,189
4,467
26
351
26
345
25
342
25
339
25
339
25
342
25
344
25
355
25
356
2,416
4,921
9,049
2,405
A,912
9,065
2,477
4,925
9,035
2,435
4,899
9,033
2,382
4,874
8,986
2,513
4,895
8,986
2,387
4,869
8,976
2,415
4,851
8,982
2,501
4,801
8,998
832
2,911
4,319
234
4,260
590
2,720
4,328
265
3,765
555
2,663
4,329
236
3,923
610
2,630
4,333
258
3,813
523
2,922
4,336
244
3,896
669
2,765
4,345
323
3,778
571
2,645
4,355
289
3,631
589
2,461
4,394
223
3,793
637
2,456
4,409
294
3,605
1,709
67,853
1,720
67,599
1,718
68,426
1,718
66,717
1,677
66,406
1,645
68,689
1,685
67,021
1,686
67,550
1,686
66,160
10,365
1,413
10,669
1,597
10,547
1,598
9,591
1,218
9,162
1,071
11,106
2,251
11,481
2,497
11,240
2,522
10,178
1,682
1,593
6,329
1,030
10,058
1,590
6,437
1,045
10,046
1,560
6,406
983
10,241
1,292
6,192
889
10,155
1,251
6,051
789
9,777
1,199
6,569
1,087
9,848
1,239
6,468
1,277
10,116
1,206
6,446
1,066
11,528
1,178
6,350
968
11,028
1,154
6,809
1,118
6,831
1,157
6,961
1,137
6,884
144
6,930
745
6,996
940
7,074
2,238
7,271
1,967
7,208
402
1,693
402
1,695
402
1,721
414
1,720
425
1,678
425
1,682
425
1,677
449
1,570
452
1,401
15,674
5,829
918
7,242
1,549
26,243
12,191
3,955
913
6,281
1,557
25,635
15,149
5,520
916
6,706
1,556
24,550
13,206
3,838
969
7,379
1,561
26,541
12,688
5,361
1,025
6,197
1,571
25,964
16,670
4,154
955
8,037
1,591
27,228
13,100
5,023
972
6,413
1,602
26,841
13,032
5,454
960
6,894
1,613
25,766
14,144
3,755
952
6,719
1,619
25,198
149,601
142,685
148,163
144,999
142,855
152,705
147,129
148,425
144,781
56,549
30,526
737
368
47,583
25,877
445
91
54,834
28,801
649
1,237
51,121
27,219
623
203
49,459
26,790
563
437
55,996
27,645
442
656
50,091
27,448
451
342
50,971
26,302
478
784
51,109
27,403
518
581
14,386
453
11,967
427
13,871
489
12,980
351
11,280
399
14,084
586
11,809
473
13,081
445
12,313
446
1,012
5,638
3,429
45,400
9,910
35,490
26,336
1,700
1,600
5,135
972
5,142
2,662
45,309
9,926
35,383
26,410
1,685
1,557
4,963
936
5,107
3,744
44,955
9,917
35,038
26,195
1,701
1,532
4,910
937
5,947
2,861
45,013
9,908
35,105
26,351
1,673
1,492
4,896
1,140
5,625
3,225
45,478
9,973
35,505
26,747
1,679
1,533
4,855
1,401
5,040
6,142
45,289
10,012
35,277
26,859
1,690
1,444
4,600
1,416
5,049
3,103
45,416
10,000
35,416
26,949
1,672
1,496
4,583
999
5,398
3,484
45,641
9,947
35,694
27,230
1,724
1,543
4,392
1,151
5,230
3,467
45,702
9,934
35,768
27,338
1,744
1,572
4,295
20,042
21,812
21,260
21,613
20,497
23,335
23,472
23,780
19,485
80
2,213
12,278
540
2,401
12,010
35
2,244
11,791
2,242
11,969
2,505
11,887
2,893
12,262
2,943
12,248
2,910
12,179
410
2,836
12,284
13,039
13,030
13,044
13,041
13,029
12,930
12,959 j 12,944
12,955
10
11
12
13
14
15
16
17
18
19
20
21
22
23
32
33
Investments:
U.S. Treasury securities........................................
B ills......................................................................
Notes and bonds, by maturity:
Within 1 year.................................................
1 to 5 years.....................................................
After 5 years...................................................
Other securities.......................................................
Obligations o f States and political
subdivisions:
Tax warrants, short-term notes, and bills.
A llo th er.........................................................
Other bonds, corporate stocks, and
securities:
Certificates o f participation2 ......................
All other, including corporate stocks. . . .
34
35
36
37
38
39
Cash items in process o f collection.......................
Reserves with F.R. Banks.......................................
Currency and coin.....................................................
Balances with domestic banks................................
Investments in subsidiaries not consolidated....
Other assets.................................................................
24
25
26
27
28
29
30
31
47
48
49
50
Deposits:
Demand deposits.....................................................
Individuals, partnerships, and corps.............
States and political subdivisions...................
U.S. Govt............................................................
Domestic interbank:
Commercial....................................................
Mutual savings..............................................
Foreign:
Governments, official institutions, etc.. . .
Commercial banks........................................
Certified and officers’ checks.........................
Time and savings deposits3..................................
53
54
55
56
Individuals, partnerships and corps..........
States and political subdivisions...............
Domestic interbank......................................
Foreign govts., official institutions, e tc ...
41
42
43
44
45
46
58
Borrowings from:
F R Banks
. . ..........................
61 Total equity capital and subordinated notes/
1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits o f U.S. Govt, and o f foreign banks, which
are not shown separately.
4 For amounts o f these deposits by ownership categories, see Table 1.30.
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion o f reserves for loans.
7 Includes reserves for securities and contingency portion o f reserves
for loans.
A22
1.29
Domestic Financial Statistics □ M ay 1978
LARG E W EEKLY R EPO R TIN G C OM M ERCIA L BANKS O UTSID E NEW Y O R K CITY
Assets and Liabilities
Millions o f dollars, Wednesday figures
1978
Account
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5p
Apr. 12 p Apr. 19 p Apr. 26*>
353,286
357,648
359,080
356,512
357,596
365,268
361,920
366,266
361,135
19,765
16,494
22,039
17,289
22,373
17,452
19,887
16,426
20,567
17,036
25,716
19,212
21,373
16,711
23,688
19,697
18,941
15,349
1,495
460
1,316
2,613
601
1,536
2,548
582
1,791
1,534
530
1,397
1,481
505
1,545
3,713
687
2,104
2,223
646
1,793
1,737
661
1,593
1,325
672
1,595
Other, gross............................................................. 251,016
92,476
Commercial and industrial..............................
4,396
Agricultural.........................................................
For purchasing or carrying securities:
To brokers and dealers:
137
U.S. treasury securities...........................
4,024
Other securities..........................................
To others:
80
U. S. Treasury securities..........................
2,261
Other securities..........................................
To nonbank financial institutions:
4,901
Personal and sales finance cos., etc...........
10,173
Other...............................................................
66,830
Real estate..........................................................
To commercial banks:
1,446
Domestic.........................................................
3,517
Foreign............................................................
Consumer instalment........................................ 42,465
1,418
Foreign govts., official institutions, etc........
16,892
All other loans..................................................
Less: Loan reserve and unearned income on
7,835
loans..............................................................
Other loans, net...................................................... 243,181
251,572
92,943
4,430
252,684
93,440
4,482
253,240
93,985
4,506
254,013
94,176
4,545
256,111
95,012
4,576
256,638
95,519
4,590
258,513
96,340
4,622
258,677
96,658
4,636
261
4,070
137
4,345
140
4,166
139
3,961
163
4,399
170
4,343
111
4,573
165
4,178
78
2,234
75
2,242
74
2,205
75
2,220
76
2,242
76
2,239
75
2,242
76
2,253
4,988
10,125
66,996
5,042
10,121
67,356
5,075
10,111
67,552
5,104
10,230
67,802
5,172
10,387
67,951
5,179
10,287
68,263
5,109
10,204
68,580
5,089
10,228
68,715
1,440
3,344
42,442
1,474
16,747
1,325
3,321
42,549
1,391
16,858
1,392
3,250
42,653
1,423
16,708
1,467
3,316
42,898
1,492
16,588
1,429
3,479
43,037
1,363
16,825
1,398
3,353
43,203
1,341
16,677
1,367
3,256
43,451
1,371
17,052
1,417
3,181
43,689
1,360
17,032
7,908
243,664
7,947
244,737
7,976
245,264
7,952
246,061
7,942
248,169
7,991
248,647
8,060
250,453
8,078
250,599
34,604
5,176
36,117
6,153
35,750
5,856
35,163
5,488
34,876
5,257
35,299
5,492
35,217
5,229
34,831
4,863
34,346
3,977
7,186
18,752
3,490
55,736
7,184
19,367
3,413
55,828
7,185
19,483
3,226
56,220
7,134
19,317
3,224
56,198
7,142
19,170
3,307
56,092
7,111
19,177
3,519
56,084
7,237
19,088
3,663
56,683
7,227
19,059
3,682
57,294
7,271
19,264
3,834
57,249
5,732
36,360
5,788
36,440
6,113
36,580
5,923
36,560
5,788
36,539
5,788
36,428
5,938
36,699
6,163
37,054
6,151
37,154
2,339
11,305
2,337
11,263
2,339
11,188
2,337
11,378
2,361
11,404
2,313
11,555
2,314
11,732
2,366
11,711
2,350
11,594
1 Total loans and investments.....................................
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Loans:
Federal funds sold1................................................
To commercial banks......................................
To brokers and dealers involving—
U.S. treasury securities................................
Other securities..............................................
To others.............................................................
32
33
Investments:
U.S. Treasury securities........................................
B ills......................................................................
Notes and bonds, by maturity:
Within 1 year.................................................
1 to 5 years.....................................................
After 5 years...................................................
Other securities.......................................................
Obligations o f States and political sub
divisions :
Tax warrants, short-term notes, and bills.
A llo th er.........................................................
Other bonds, corporate stocks, and
securities:
Certificates o f participation2......................
All other, including corporate stocks. . . .
34
35
36
37
38
39
Cash items in process o f collection.......................
Reserves with F.R. Banks.......................................
Currency and coin.....................................................
Balances with domestic banks................................
Investments in subsidiaries not consolidated.. . .
Other assets.................................................................
31,749
15,766
5,139
7,725
1,523
37,387
25,425
14,998
4,870
7,203
1,561
37,664
30,204
14,498
5,102
7,172
1,554
38,402
26,437
15,976
5,180
6,868
1,495
37,876
24,628
17,831
5,547
7,202
1,498
38,589
29,791
14,345
4,704
7,253
1,518
39,269
29,053
14,714
5,313
6,791
1,540
39,776
29,023
15,005
5,354
7,149
1,519
38,482
27,503
16,270
5,502
6,759
1,554
38,862
40 Total assets/total liabilities......................................
452,575
449,369
456,012
450,344
452,891
462,148
459,107
462,798
457,585
128,314
102,333
4,992
961
136,552
106,565
5,295
4,493
127,200
101,583
5,395
1,626
127,810
101,618
5,102
2,265
137,953
108,072
5,296
2,625
135,670
109,147
5,316
1,441
138,503
109,151
5,265
3,878
133,334
105,433
5,585
2,272
24
25
26
27
28
29
30
31
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Deposits:
Demand deposits..................................................... 134,983
Individuals, partnerships, and corps............. 105,820
5,623
States and political subdivisions...................
2,377
U.S. Govt............................................................
Domestic interbank:
14,786
Commercial....................................................
432
Mutual savings..............................................
Foreign:
226
Governments, official institutions, etc---1,501
Commercial banks........................................
4,218
Certified and officers’ checks.........................
209,502
Time and savings deposits*..................................
82,732
Savings4..............................................................
Time..................................................................... 126,770
95,919
Individuals, partnerships, and corps.........
23,191
States and political subdivisions...............
3,633
Domestic interbank......................................
3,326
Foreign govts., official institutions, etc...
14,061
418
14,165
419
12,878
386
13,202
358
15,412
471
13,641
420
14,033
427
13,646
407
255
1,578
3,716
211,787
83,163
128,624
97,350
23,283
3,907
3,309
213
1,548
3,854
212,693
83,348
129,345
98,167
23,126
3,963
3,331
230
1,512
3,590
214,163
83,616
130,547
99,303
23,281
3,943
3,266
219
1,505
3,541
215,143
84,041
131,102
99,802
23,237
3,991
3,305
251
1,528
4,298
214,267
84,482
129,785
99,039
22,958
3,774
3,241
213
1,505
3,987
213,664
84,057
129,607
98,935
23,132
3,647
3,107
199
1,500
4,050
213,225
83,404
129,821
98,517
23,639
3,658
3,226
231
1,653
4,107
214,367
83,222
131,145
99,384
23,913
3,745
3,261
56,692
57,325
55,493
57,265
58,433
58,316
57,917
59,194
56,966
494
2,809
15,814
111
3,075
16,396
197
2,879
16,004
165
2,947
16,340
119
2,991
16,056
29
2,961
16,165
68
2,840
16,400
435
2,763
16,233
1,040
3,113
16,160
32,281
32,361
32,194
32,264
32,339
32,457
32,548
32,445
32,605
57 Federal funds purchased, etc. 5...............................
Borrowings from:
58
F.R. Banks..............................................................
59
Others......................................................................
60 Other liabilities, etc.6................................................
61 Total equity capital and subordinated
notes/debentures 7..............................................
1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits o f U.S. Govt, and o f foreign banks, which
are not shown separately.
4 For amounts o f these deposits by ownership categories, see Table 1.30.
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion o f reserves for loans.
7 Includes reserves for securities and contingency portion o f reserves
for loans.
W eekly Reporting Banks
A23
1.30 LARGE W EEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions o f dollars, Wednesday figures
1978
Account
Total loans (gross) and investments adjusted1
Total loans (gross), adjusted
Demand deposits, adjusted2
Large negotiable time CD’s included in time and
savings deposits3
Total:
Issued to IPC’s:
Issued to others:
18
Banks outside New York City.......................
All other large time deposits4
Total:
20
21
New York City banks......................................
Banks outside New York City.......................
Issued to IPC’s :
24
Banks outside New York City.......................
Issued to others:
26
New York City banks......................................
Savings deposits, by ownership category
Individuals and nonprofit organizations:
Partnerships and corporations for profit:5
Domestic governmental units:
All other:6
38
New York City banks......................................
Gross liabilities of banks to their foreign branches
43
Loans sold outright to selected institutions by all
large banks7
Commercial and industrial8................................
45
All other8 ................................................................
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5p
Apr. 12*> Apr. 19^ Apr. 26^
433,821
90,640
343,181
437,969
91,142
346,827
440,526
92,276
348,250
435,827
89,157
346,670
435,070
88,025
347,045
445,535
92,966
352,569
443,442
91,640
351,802
447,206
93,944
353,262
443,089
90,642
352,447
323,058
70,217
252,841
175,309
70,427
254,882
327,768
71,488
256,280
324,720
69,411
255,309
325,163
69,086
256,077
333,198
72,012
261,186
329,945
70,043
259,902
332,313
11,116
261,137
330,288
69,436
260,852
112,192
26,121
111,201
73 334
87,867
86,071
112,267
24,577
87,690
110,991
24,732
86,259
112,769
25,054
87,715
114,711
24,586
90,125
116,375
24,840
91,535
115,643
24,074
91,569
113,984
24,071
89,913
78,148
24,490
53,658
79,640
24,474
55,166
79,956
24,136
55,820
81,111
24,301
56,810
82,293
24,737
57,556
80,977
24,504
56,473
81,059
24,633
56,426
80,756
24,822
55,934
81,866
24,896
56,970
52,506
16,817
35,689
53,931
17,029
36,902
54,292
16,729
37,563
55,533
16,960
38,573
56,476
17,380
39,096
55,884
17,444
38,440
56,180
17,576
38,604
55,836
17,855
37,981
56,739
17,992
38,747
25,642
7,673
17,969
25,709
7,445
18,264
25,664
7,407
18,257
25,578
7,341
18,237
25,817
7,357
18,460
25,093
7,060
18,033
24,879
7,057
17,822
24,920
6,961
17,953
25,127
6,904
18,223
31,660
6,118
25,542
31,722
6,018
25,704
31,716
6,001
25,715
31,727
5,920
25,807
31,477
5,829
25,648
31,290
5,828
25,462
31,497
5,906
25,591
32,050
5,970
26,080
32,317
5,977
26,340
18,035
4,782
13,253
17,978
4,694
13,284
18,079
4,705
13,374
18,062
4,644
13,418
18,001
4,576
13,425
17,979
4,625
13,354
18,019
4,648
13,371
17,983
4,642
13,341
18,053
4,627
13,426
13,625
1,336
12,289
13,744
1,324
12,420
13,637
1,296
12,341
13,665
1,276
12,389
13,476
1,253
12,223
13,311
1,203
12,108
13,478
1,258
12,220
14,067
1,328
12,739
14,264
1,350
12,914
86,218
9,111
77,041
86,628
9,201
77,427
86,881
9,191
77,684
87,187
9,217
77,970
87,601
9,273
78,328
88,087
9,316
78,771
87,707
9,300
78,407
86,947
9,214
77,733
86,766
9,193
77,573
4,897
484
4,413
4,923
480
4,443
4,875
473
4,402
4,898
470
4,428
4,968
478
4,490
4,976
485
4,491
4,942
478
4,464
4,900
470
4,430
4,920
473
4,447
1,495
230
1,265
1,499
218
1,281
1,477
225
1,252
1,412
201
1,211
1,414
205
1,209
1,405
200
1,205
1,375
205
1,170
1,477
252
1,225
1,441
254
1,187
32
19
13
39
21
12
32
22
10
27
20
7
31
11
14
26
11
15
33
11
16
27
11
16
29
14
15
4,765
2,424
2,341
4,958
2,521
2,437
5,887
3,573
2,314
4,645
2,239
2,406
4,494
2,619
1,875
4,145
2,195
1,950
4,202
2,253
1,949
4,443
2,435
2,008
4,249
2,290
1,959
2,307
236
2,088
2,217
239
2,097
2,251
236
2,123
2,236
237
2,139
2,230
237
2,051
2,163
237
2,040
2,214
245
1,996
2,219
242
1,991
2,254
246
1,991
1 Exclusive o f loans and Federal funds transactions with domestic
commercial banks.
2 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process o f collection.
.
3 Certificates o f deposit (CD’s) issued m denominations o f $100,000 or
m° ^ , l other time deposits issued in denominations of $100,000 or more
not included in large negotiable (C D ’s).
5 Other than commercial banks.
6 Domestic and foreign commercial banks, and official international
organizations.
7 To bank’s own foreign branches, nonconsolidated nonbank af
filiates o f the bank, the bank’s holding company (if not a bank), and
nonconsolidated nonbank subsidiaries o f the holding company.
8 Data revised beginning July 7, 1977, due to reclassifications at one
large bank.
A24
1.31
Domestic Financial Statistics □ M ay 1978
LA R G E W EEKLY R EPO R TIN G COM M ERCIA L BANKS
Commercial and Industrial Loans
Millions o f dollars
Outstanding
Net change during—
1978
Industry classification
Mar. 29
Apr. 5
1977
Apr. 12 Apr. 19 Apr. 26?
Q4
1978
Ql
Adjust
ment
bank A
1978
Feb.
Mar.
Apr.P
Total loans classified2
1 Total........................................................... 104,768 105,360 105,608 106,077 105,799
4,395
2,023
1,198
2,481
1,031
745
2,800
5,294
2,644
2,444
3,615
256
-4
-8 9
-2 6
-2 3 1
-8 6
491
447
351
52
119
288
155
76
39
68
276
168
193
145
46
60
-7 9
172
82
90
176
-2 1
-2 8
-2 0
3,851
3,652
2,487
3,504
2,225
3,845
3,686
2,569
3,475
2,183
324
-6 6 3
235
-3 7
74
52
280
-2 2 1
532
-6 2
11
165
-4 1
244
-1 7
76
231
-1 8 1
270
-3 3
-8
114
91
60
-2 3
21
-6 5
-2 4 9
39
26
9,703
9,843
9,853
537
451
88
395
327
306
2,189
8,626
7,740
5,539
1,508
4,915
4,704
12,535
2,209
8,587
7,815
5,307
1,552
4,982
4,739
12,638
2,169
8,687
7,806
5,29,8
1,535
5,026
4,771
12,664
502
439
-2 3 5
17
115
290
-3 1
286
300
787
565
378
11
-5 6 9
200
675
-1 9
227
284
54
57
-1 7 8
-1 4
179
78
487
297
326
-9 6
-3 7 5
170
263
-8 2
201
180
-3 0 4
149
55
137
360
125
390
96
239
22
210
-3 9
330
7,627
3,465
7,771
3,353
7,777
3,439
7,822
2,906
419
2,455
-3 4
-2 ,5 3 3
178
-5 7 4
-1 7 4
-1 1 4
372
-7 8 4
-8 5 7
2
4,727
4,687
4,677
4,677
-2 3 8
-5 4
-1 2 3
11
-9 5
-4 8
124
-7 5
—27
-1 1
—5
—7
130,609
5,622
2,975
1,633
'3,195
1,805
1977
1978
Q4
Ql
2
3
4
5
6
Durable goods manufacturing:
Primary metals......................................
Machinery..............................................
Transportation equipment.................
Other fabricated metal products. . . .
Other durable goods............................
2,754
5,234
2,723
2,272
3,533
2,743
5,188
2,686
2,348
3,526
2,775
5,167
2,649
2,423
3,579
2,778
5,263
2,717
2,435
3,600
7
8
9
10
11
Nondurable goods manufacturing:
Food, liquor, and tobacco.................
Textiles, apparel, and leather............
Petroleum refining................................
Chemicals and rubber.........................
Other nondurable goods.....................
3,853
3,572
2,478
3,415
2,206
3,815
3,649
2,469
3,527
2,220
3,799
3,720
2,458
3,534
2,234
9,526
9,648
2,251
8,486
7,626
5,602
1,416
4,971
4,634
12,304
2,261
8,618
7,764
5,499
1,562
4,910
4,702
12,406
7,450
3,690
4,772
12 Mining, including crude petroleum
and natural gas.................................
Trade:
13
Commodity dealers.............................
14
Other wholesale....................................
Retail......................................................
15
16 Transportation..........................................
17 Communication........................................
18 Other public utilities................................
19 Construction..............................................
20 Services.......................................................
21 All other domestic loans.........................
22 Bankers acceptances................................
23 Foreign commercial and industrial
M emo Items:
24 Commercial paper included in total
classified loans 1................................
131
25 Total commercial and industrial loans
o f all large weekly reporting
banks.................................................. 128,804 129,564
130,027 130,731
1978
1977
Dec. 28
Jan. 25
Mar. 29 Apr. 26*
Feb. 22
1978
Feb.
Mar.
June
-1 3
Adjust
ment
bank A
“Terms” loans classified3
48,215
48,818
r4 9 ,369
49,989
352
rl , 903
603
r551
620
840
1,546
2,286
1,317
834
1,698
1,559
2,403
1,432
882
1,630
1,564
2,473
1,466
877
1,602
'1,579
2,529
1,489
902
1,572
1,671
2,488
1,449
964
1,603
120
-5 1
-1 1 2
59
-7 6
r—13
203
152
50
-1 0 5
5
70
34
-5
-2 8
r15
56
23
25
-3 0
92
-4 1
-4 0
62
31
46
40
20
18
-2 1
1,498
1,058
2,268
1,727
1,147
1,436
973
2,136
1,926
1,198
1,492
983
2,000
2,017
1,182
1,522
1,038
1,873
2,116
1,169
1,638
1,068
1,850
2,127
1,083
98
-9 6
271
-1 8
53
69
40
-1 7 4
215
2
56
10
-1 3 6
91
-1 6
30
55
-1 2 7
99
-1 3
116
30
-2 3
11
-8 6
-4 5
-6 0
-2 2 1
174
20
6,501
6,569
6,811
7,084
7,429
217
530
242
273
345
53
236
1,665
2,448
3,484
840
3,266
1,990
5,366
2,726
294
1,874
2,476
3,726
901
3,802
2,002
5,746
2,627
262
1,928
2,539
3,747
908
3,855
1,973
5,807
2,750
254
1,993
2,554
3,885
924
3,822
2,066
5,880
2,457
244
2,068
2,689
3,623
964
3,723
2,081
6,031
2,576
42
125
48
-1 4 1
54
-3 6
-2 1
85
184
-1 6
202
54
233
47
-3 4
165
307
-5 7
-3 2
54
63
21
7
53
-2 9
61
123
-8
65
15
138
16
-3 3
93
73
-293
-1 0
75
135
-2 6 2
40
-9 9
15
151
119
34
126
52
168
37
590
-8 9
207
-2 1 2
2,725
2,623
2,582
2,661
2,620
-4 5 3
33
-4 1
79
-4 1
-9 7
26 T otal............................................................ 46,626
27
28
29
30
31
Durable goods manufacturing:
Primary metals......................................
Machinery..............................................
Transportation equipment.................
Other fabricated metal products----Other durable goods...........................
32
33
34
35
36
Nondurable goods manufacturing:
Food, liquor, and tobacco.................
Textiles, apparel, and leather............
Petroleum refining................................
Chemicals and rubber.........................
Other nondurable goods.....................
37 Mining, including crude petroleum
and natural gas................................
Trade:
38
Commodity dealers.............................
39
Other wholesale....................................
40
41 Transportation..........................................
42 Communication........................................
43 Other public utilities................................
44 Construction..............................................
45 Services.......................................................
46 All other domestic loans........................
47 Foreign commercial and industrial
loans....................................................
1 Reported for the last Wednesday o f each month.
2 Includes “term” loans, shown below.
3 Outstanding loans with an original maturity o f 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
FRASERo f 1 year.
Digitized for
▲ These amounts represent accumulated adjustments originally made
to offset the cumulative effects o f mergers. A “positive” adjustment bank
should be added to, and a “negative” adjustment bank substracted from,
outstanding data for any date in the year to establish comparability with
any date in the subsequent year. Changes shown have been adjusted for
these amounts.
D eposits and C om m ercial P aper
1.32
A25
GROSS D EM A N D DEPOSITS of Individuals, Partnerships, and Corporations
Billions o f dollars, estimated daily-average balances
At commercial banks
Type o f holder
2 Financial business.......................................................
3 Nonfinancial business................................................
1976
1973
Dec.
1974
Dec.
1977
1978
1975
Dec.
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
220.1
225.0
236.9
236.1
250.1
242.3
253.8
252.7
274.4
262.5
19.1
116.2
70.1
2.4
12.4
19.0
118.8
73.3
2.3
11.7
20.1
125.1
78.0
2 .4
11.3
19.7
122.6
80.0
2.3
11.5
22.3
130.2
82.6
2.7
12.4
21.6
125.1
81.6
2 .4
11.6
25.9
129.2
84.1
2.5
12.2
23.7
128.5
86.2
2.5
11.8
25.0
142.9
91.0
2.5
12.9
24.5
131.5
91.8
2 .4
12.3
At weekly reporting banks
1977
1974
Dec.
1975
Dec.
1978
1976
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
7 All holders, IP C ..........................................................
119.7
124.4
128.5
129.2
131.4
133.0
139.1
137.1
132.5
131.9
8 Financial business.......................................................
9 Nonfinancial business................................................
14.8
66.9
29.0
2.2
6.8
15.6
69.9
29.9
2.3
6.6
17.5
69.7
31.7
2 .6
7.1
17.4
70.0
32.8
2.4
6.6
18.0
72.1
32.4
2 .3
6 .7
17.9
72.2
33.4
2 .5
7 .0
18.5
76.3
34.6
2.4
7 .4
18.3
73.8
35.2
2 .4
7.4
18.1
70.7
34.4
2 .4
6.9
18.2
68.9
35.4
2.3
7 .0
11 Foreign..........................................................................
12 Other..............................................................................
N ote.—Figures include cash items in process o f collection. Estimates o f
gross deposits are based on reports supplied by a sample o f commercial
1.33
banks. Types o f depositors in each category are described in the June 1971
B ulletin, p. 466.
COM M ERCIA L PA PER A N D BANKERS ACCEPTANCES O U TSTAN DIN G
Millions o f dollars, end o f period
1977
Instrument
1975
Dec.
1976
Dec.
1978
1977
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Commercial paper (seasonally adjusted)
1 AU issuers......................................................................
48,459
53,025
65,112
61,542
62,724
62,753
65,112
65,488
65,477
67,354
Financial companies:1
Dealer-placed paper:2
Total......................................................................
2
3
Directly-placed paper:3
4
Total......................................................................
5
6,202
1,762
7,250
1,900
8,871
2,132
8,471
1,846
8,540
1,961
8,497
1,980
8,871
2,132
9,018
2,035
8,918
1,997
8,889
1,993
31,374
6,892
32,500
5,959
40,399
7,003
37,850
7,069
38,803
7,012
38,954
6,567
40,399
7,003
41,586
7,109
42,137
7,616
42,781
8,031
10,883
13,275
15,842
15,221
15,381
15,302
15,842
14,884
14,422
15,684
Dollar acceptances (not seasonally adjusted)
7 Total..............................................................................
Held by:
8
Accepting banks.......................................................
9
10
F.R. Banks:
11
Own account.......................................................
12
Foreign correspondents....................................
13
Others........................................................................
18,727
22,523
25,654
23,317
23,908
24,088
25,654
25,252
25,411
26,181
7,333
5,899
1,435
10,442
8,769
1,673
10,434
8,915
1,519
7,473
6,566
907
8,673
7,248
1,424
8,952
7,702
1,251
10,434
8,915
1,519
7,785
6,772
1,013
7,513
6,583
931
7,375
6,375
1,000
1,126
’293
991
375
954
362
482
287
422
248
392
954
362
371
456
1
522
9,975
10,715
13,904
15,075
14,813
14,495
13,904
17,096
17,442
18,283
3,726
4,001
11,000
4,992
4,818
12,713
6,532
5,895
13,227
5,654
5,544
12,119
5,886
5,584
12,438
5,973
5,803
12,312
6,532
5,895
13,227
6,637
5,840
12,774
6,842
5,739
13,026
6,979
6,034
13,168
Based on:
14
15
16
Exports from United States.................................
All other....................................................................
1 Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
2 Includes a11 financial company paper sold by dealers in the open
market.
3 As reported by financial companies that place their paper directly
with investors.
4 Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services,
A26
1.34
Domestic Financial Statistics □ M ay 1978
PR IM E RATE C H A R G ED BY BANKS on Short-term Business Loans
Per cent per annum
Rate
Effective date
Rate
1..............
7 ..............
7
7%
1977—May 13............
31............
6Vz
63/4
Effective date
1976—June
1.35
Aug.
2..............
7
Aug. 22.............
7
Oct.
4 ..............
6V4
Sept. 16..............
IVa
Nov.
1..............
61/2
Oct. 7 ..............
Oct. 2 4 ..............
Dec. 13..............
6%
7%
m
1978—Jan. 10.............
8
Month
Average
rate
Month
Average
rate
1976—Sept........................
Oct.........................
N ov........................
D ec.........................
7.00
6.78
6.50
6.35
1977—Jan..........................
Feb........................
M ar.......................
A pr........................
May.......................
June........................
6.25
6.25
6.25
6.25
6.41
6.75
1977—July........................
Aug........................
Sept........................
Oct..........................
N ov........................
D ec.........................
6.75
6.83
7.13
7.52
7.75
7.75
1978—J a n ........................
Feb.........................
Mar........................
A pr..............
7.93
8.00
8.00
8.00
TERM S O F L E N D IN G AT COM M ERCIA L BANKS
Survey of Loans M ade, Feb. 6-11, 1978
Size o f loan (in thousands o f dollars)
Item
All
sizes
1-24
25-49
500-999
1,000
and over
1,984,349
11,080
3.0
9.03
8.2 7 -9 .8 4
530,499
859
2 .8
8.78
8 .24-9.25
2,372,123
878
3.1
8.34
8.00-8.75
60.3
38.0
46.9
59.1
59.3
52.7
50-99
100-499
Short-term commercial and industrial loans
1
2
3
4
5
Amount o f loans (thousands o f dollars)........................
Number of loans...................................................................
Weighted-average maturity (m onths)..............................
Weighted-average interest rate (per cent per annum)..
Interquartile range 1........................................................
Percentage o f amount o f loans:
6
With floating rate.............................................................
Made under commitment...............................................
7
689,553
729,562
1,095,609
7,401,695
200,127
154,809
20,931
11,570
3.3
3.1
3.2
2 .6
9.44
8.95
9.26
9.65
8 .2 4 -9 .6 0 8.77-10.47 8.50-10.01 8.50-10.00
34.9
14.9
51.5
37.9
40.8
20.3
40.6
25.9
Long-term commercial and industrial loans
---------------8
9
10
11
12
Amount o f loans (thousands o f dollars).........................
Number o f loans..................................................................
Weighted-average maturity (m onths)..............................
Weighted-average interest rate (per cent per annum)..
Interquartile range 1........................................................
Percentage o f amount o f loans:
With floating rate.............................................................
13
14
Made under commitment...............................................
1,311,928
31,161
4 0.0
9.19
8 .5 0 -9 .92
361,327
28,547
28.6
9.54
8.50-10.47
420,109
2,364
39.0
9.37
9 .0 0 -9 .9 2
69,872
105
45.5
8.87
8.00-9.61
460,620
144
49.1
8.81
8.00 -9 .2 0
42.3
54.7
15.6
18.6
30.2
74.1
72.4
53.5
69.6
65.6
Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25
803,264
82,792
Amount o f loans (thousands o f dollars).........................
Number o f loans..................................................................
20,791
13,375
Weighted-average maturity (m onths)..............................
10.6
6.5
9.67
Weighted-average interest rate (per cent per annum )..
9.69
Interquartile range 1....................................................... 9.0 0 -1 0 .34 9.20-10.34
Percentage o f amount o f loans:
With floating rate.............................................................
38.7
18.4
Secured by real estate.....................................................
92.1
85.7
Made under commitment...............................................
56.3
42.8
Type o f construction: 1 - to 4-family.........................
38.7
61.6
Multifamily..............................
6 .4
5.8
Nonresidential........................
32.6
54.9
All
sizes
1-9
126,435
3,737
20.5
9.62
9 .2 0 -9 .9 2
11.3
87.3
17.8
54.6
2.1
43.3
10-24
222,919
127,991
2,901
637
3.2
10.6
9.33
9.70
8.36-10.00 9.17-10.29
8.0
97.3
27.3
55.1
2 .2
42.7
112,423
141
13.8
10.07
9.27-10.78
80.2
94.3
53.4
11.5
9 .6
78.9
53.8
87.8
65.6
31.7
12.0
56.3
25-49
50-99
100-249
250
and over
Loans to farmers
26
27
28
29
30
31
32
33
34
35
Amount o f loans (thousands o f dollars).........................
796,500
Number o f loans..................................................................
64,797
Weighted-average maturity (months)..............................
10.0
Weighted-average interest rate (per cent per annum )..
9.16
Interquartile range i ....................................................... 8 .75 -9 .5 0
By purpose o f loan:
Feeder livestock...........................................................
9.17
Other livestock.............................................................
9.07
Other current operating expenses............................
9.14
Farm machinery and equipment..............................
9.31
Other..............................................................................
9.16
162,130
46,784
7.8
9.13
8.68-9.40
168,848
11,355
11.3
9.16
8.6 8 -9 .5 0
135,149
4,219
13.0
9.11
8.75-9.46
83,650
1,224
9 .0
9.26
9 .0 0 -9 .5 0
117,118
942
10.9
9.22
8.91-9.38
129,604
272
8.4
9.15
8 .50-9.69
9.09
9.07
9.03
9.40
9.29
8.97
9.37
9.26
9.35
9.01
8.89
8.73
9.24
9.47
9.20
9.39
9.53
9.17
9.44
9.27
9.31
9.12
9.15
( 2)
9.43
9.77
8.92
9.06
( 2)
8.96
1 Interest rate range that covers the middle 50 per cent o f the total
dollar amount o f loans made.
2 Fewer than three sample loans.
N ote.—For more detail, see the Board’s G.14 statistical release,
Securities M a rk e ts
1.36 INTEREST RATES
A ll
Money and Capital Markets
Averages, per cent per annum
1975
1^76
1978, week ending—
1978
1977
Jan.
Feb.
Mar.
Apr.
Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29
Money market rates
1 Federal funds 1.....................
5.82
5.05
5.54
6.70
6.78
6.79
6.89
6.82
6.86
6.74
6.78
7.00
Prime commercial paper 2
90- to 119-day.
4- to 6-month.
6.26
6.33
5.24
5.35
5.54
5.60
6.75
6.79
6.76
6.80
6.75
6.80
6.82
6.86
6.75
6.80
6.78
6.83
6.80
6.85
6.82
6.87
6.91
4 Finance company paper, directly placed,
3- to 6-month 3......................................
6.16
5.22
5.49
6.69
6.74
6.73
6.74
6.75
6.75
6.75
6.72
6 .74
5 Prime bankers acceptances, 90-day 4 . ..
6.30
5.19
5.59
6.86
6.82
6.79
6.92
6.80
6.85
6.84
6.92
7.06
Large negotiable certificates of deposit
3-month, secondary market 5..............
3-month, primary market 6 .................
6.43
5.26
5.15
5.58
5.52
6.71
6.83
6.89
6.77
6.85
6.75
7.04
6.83
6.86
6.74
6.95
6.80
6.99
6.83
6.94
6.82
7.14
6.95
6.97
5.57
6.05
7.32
7.28
7.27
7.38
7.34
7.40
7.35
7.30
7.43
6.11
5.80
4.98
5.26
5.52
5.27
5.53
5.71
6.44
6.70
6 .80
6.45
6.74
6.86
6.29
6.63
6.82
6.29
6.73
6.96
6.34
6.66
6.89
6.37
6.73
6.94
6.29
6.70
6.91
6.22
6.30
6.70
6.93
6.26
6.80
7.06
5.838
6.122
4.989
5.266
5.265
5.510
6.448
6.685
6.457
6.740
6.319
6.644
6.306
6.700
6.310
6.666
6.417
6.717
6.373
6.743
6.140
6.563
6.294
6.777
6.09
7.28
7.34
7.31
7.45
7.39
7.43
7.4 0
7.42
7.57
6
7
8 Euro-dollar deposits, 3-month
9
10
11
12
13
14
U.S. Govt, securities
Bills: 8
Market yields:
3-month.............................
6-month.............................
1-year.................................
Rates on new issue:
3-month.............................
6-month.............................
Constant maturities:9
1-year.........................
6.76
6.86
Capital market rates
Government notes and bonds
U.S. Treasury
Constant maturities:9
2-year....................................................
15
16
17
18
19
20
30-year..................................................
21
22
23
Notes and bonds maturing in 10—
3 to 5 years..........................................
Over 10 years (long-term)................
State and local:
M oody’s series:11
24
25
26
Baa.........................................................
Bond Buyer series 12..............................
7.49
7.77
7.90
7.99
8.19
6.77
7.18
7.42
7.61
7.86
6.45
6.69
6.99
7.23
7.42
7.67
7.49
7.61
7.77
7.86
7.96
8. 14
8.18
7.57
7.67
7.83
7.94
8.03
8.22
8.25
7.58
7.70
7.86
7.95
8.04
8.21
8.23
7.74
7.85
7.98
8.06
8.15
8.32
8.34
7.65
7.79
7.94
8.02
8.12
8.27
8.30
7.71
7.82
7.97
8.04
8.14
8.31
8.32
7.68
7.81
7.95
8.04
8.15
8.33
8.35
7.72
7.83
7.96
8.04
8.12
8.30
8.31
7.87
7.95
8.05
8.13
8.21
8.36
8.38
7.55
6.98
6.94
6.78
6.85
7.06
7.71
7.50
7.76
7.60
7.76
7.63
7.90
7.74
7.83
7.68
7.87
7.72
7.87
7.74
7.87
7.72
7.98
7.78
6.42
7.62
7.05
5.66
7.49
6.64
5.20
6.12
5.68
5.20
5.91
5.71
5.24
5.82
5.62
5.11
5.85
5.61
5.41
5.88
5.80
5.10
5.75
5.69
5.40
5.75
5.76
5.40
5.80
5.74
5.40
5.90
5.79
5.45
6.05
5.89
9.57
9.01
8.43
8.74
8.78
8.80
8.88
8.81
8.85
8.87
8.89
8.93
8.83
9.17
9.65
10.61
8.43
8.75
9.09
9.75
8.02
8.24
8.49
8.97
8.41
8.59
8.76
9 .17
8.47
8.65
8.79
9.20
8.47
8.66
8.83
9.22
8.56
8.73
8.93
9.32
8.48
8.67
8.85
9.25
8.53
8.70
8.88
9.27
8.56
8.72
8.91
9.30
8.57
8.72
8.93
9.33
8.59
8.77
8.98
9.38
9.40
9.41
8.48
8.49
8.19
8.19
8.68
8 .60
8.69
8.67
8.71
8.67
8.90
8.85
8.83
8.75
8.88
8.82
8.88
8.84
8.93
8.84
8.92
8.91
8.38
4.31
7.97
3.77
7.60
4.56
7.93
5.32
7.99
5.49
8.07
5.68
8.06
5.42
8.13
5.63
8.13
5.58
8.07
5.55
8.04
5.34
7.99
5.19
Corporate bonds
Seasoned issues 13
27
28
29
30
31
By rating groups:
A .............................................................
Aaa utility bonds:14
32
33
34
35
Dividend/price ratio
Preferred stocks......................................
1 Weekly figures are 7-day averages o f daily effective rates for the week
ending Wednesday; the daily effective rate is an average o f the rates on
a given day weighted by the volume o f transactions at these rates.
2 Beginning Nov. 1977, unweighted average o f offering rates quoted
by five dealers. Previously, most representative rate quoted by those
dealers.
3 Averages o f the most representative daily offering rates published by
finance companies for varying maturities in this range.
4 Beginning Aug. 15, 1974, the rate is the average o f the midpoint of
the range o f daily dealer closing rates offered for domestic issues; prior
data are averages o f the most representative daily offering rate quoted by
dealers.
5 Weekly figures (week ending Wednesday) are 7-day averages o f the
daily midpoints as determined from the range o f offering rates at large
New York City banks; monthly figures are averages o f total days in the
month.
6 Posted rates, which are the annual interest rates most often quoted
on new offerings o f negotiable C D ’s in denominations o f $100,000 or
more by large New York City banks. Rates prior to 1976 not available.
figures are for Wednesday dates.
for Weekly
FRASER
Digitized
7 Averages o f daily quotations for the week ending Wednesday.
8 Except for new bill issues, yields are computed from daily closing
bid prices. Yields for all bills are quoted on a bank-discount basis.
9 Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
I o Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. “Long-term” includes
all bonds neither due nor callable in less than 10 years, including a num
ber o f very low yielding “flower” bonds.
II General obligations only, based on figures for Thursday, from
Moody’s Investors Service.
12 Twenty issues o f mixed quality.
13 Averages o f daily figures from Moody’s Investors Service.
14 Compilation o f the Board o f Governors o f the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields are
based on quotations on date o f offering; those on recently offered issues
(included only for first 4 weeks after termination o f underwriter price
restrictions), on Friday close-of-business quotations.
A28
Domestic Financial Statistics □ M ay 1978
1.37 STOCK M ARKET
Selected Statistics
1977
Indicator
1975
1976
1978
1977
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
49.41
52.80
38.90
39.02
50.60
49.50
52.77
38.95
39.26
51.44
51.75
55.48
41.19
39.69
55.04
Prices and trading (averages o f daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
2
Industrial.................................................................
3
Transportation........................................................
4
U tility.......................................................................
5
Finance.....................................................................
45.73
51.88
30.73
31.45
46.62
54.45
60.44
39.57
36.97
52.94
6 Standard & Poor’s Corporation (1941-43 = 10)1.,
85.17
102.01
98.18
93.78
94.28
93.82
90.28
88.98
88.82
92.71
7 American Stock Exchange (Aug. 31,1973 = 100),
83.15
101.63
116.18
115.41
117.80
124.88
121.73
123.35
126.11
133.67
18,568
2,150
21,189
2,565
20,936
2,514
19,689
2,080
23,557
2,061
21,475
3,008
20,388
2,254
19,400
2,300
22,617
2,940
34,780
4,151
Volume of trading (thousands o f shares)2
New York Stock Exchange.
American Stock Exchange. .
53.67
57.84
41.07
40.91
55.23
51.37
54.99
38.33
40.38
53.24
51.87
55.62
39.30
40.33
54.04
51.83
55.55
39.75
40.36
53.85
49.89
53.45
39.15
39.09
50.91
Customer financing (end-of-period balances, in millions o f dollars)
10 Regulated margin credit at brokers/dealers
and banks3.................................................
11 Brokers, total................................................
12
Margin stock4..............................................
13
Convertible bonds........................................
Subscription issues......................................
14
15 Banks, to ta l ...................................................
16
Margin stocks...............................................
17
Convertible bonds........................................
18
Subscription issues......................................
6,500
5,540
5,390
147
3
960
909
36
15
9,011
8,166
7,960
204
2
845
800
30
15
10,866
9,993
9,740
250
3
873
827
30
16
10,583
9,756
9,560
192
4
827
783
27
17
10,680
9,859
9,610
246
3
822
778
28
16
10,866
9,993
9,740
250
3
873
827
30
16
10.690
9,839
9,590
246
3
851
809
27
15
10,901
10,024
9,780
242
2
877
838
25
14
11,027
10,172
9,920
250
2
855
824
24
7
19 Unregulated nonmargin stock credit at banks5
2,281
2,817
2,568
2,579
2,604
2,568
2,565
2,544
2,544
M emo: Free credit balances at brokers6
20
Margin-account................................................
21
Cash-account.....................................................
475
1,525
585
1,855
640
2,060
615
1,850
630
1,845
640
2,060
660
1,925
635
1,875
630
1,790
Margin-account debt at brokers (percentage distribution, end o f period)
22 T otal............................................
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
By equity class (in per cent):7
Under 4 0 .................................
40-49........................................
50-59.......................................
60-69........................................
70-79........................................
80 or more..............................
24.0
28.8
22.3
11.6
6 .9
5.3
12.0
2 3.0
35.0
15.0
8.7
6 .0
18.0
36.0
23.0
11.0
6 .0
5.0
27.0
35.0
18.0
9 .8
6 .0
5 .0
17.0
33.0
26.0
12.0
7 .0
5.0
19.0
34.0
24.0
11.0
7 .0
5 .0
25.0
34.0
20.0
10.0
6 .0
5 .0
25.0
34.0
20.0
10.0
6 .0
5.0
21.0
33.0
24.0
11.0
6.0
5 .0
23
24
25
26
27
28
Special miscellaneous-account balances at brokers (end o f period)
29 Total balances (millions o f dollars)8. . .
Distribution by equity status (per cent)
30
Net credit status....................................
Debit status, equity o f—
31
60 per cent or m ore..........................
32
Less than 60 per cent.......................
7,290
8,776
9,910
9,640
9,710
9,910
9,880
10,150
10,190
43.8
41.3
43.4
42.8
41.8
43.4
4 2 .4
4 2.0
42.6
40.8
15.4
47.8
10.9
44.9
11.7
43.8
13.4
45.5
12.7
44.9
11.7
43.6
14.0
43.0
14.0
43.7
13.5
1 Effective July 1976, includes a new financial group, banks and in
surance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility (formerly 60), and 40 financial.
2 Based on trading for a 5 ^ -hour day.
3 Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended by brokers is end-of-month data for member firms of
the New York Stock Exchange; June data for banks are universe totals;
all other data for banks are estimates for all commercial banks based on
data from a sample o f reporting banks.
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.
4 A distribution o f this total by equity class is shown on lines 23-28.
5 Nonmargin stocks are those not listed on a national securities ex
change and not included on the Federal Reserve System’s list of over-thecounter margin stocks. At banks, loans to purchase or carry nonmargin
stocks are unregulated; at brokers, such stocks have no loan value.
6 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
7 Each customer’s equity in his collateral (market value o f collateral
less net debit balance) is expressed as a percentage o f current collateral
values.
8 Balances that may be used by customers as the margin deposit re
quired for additional purchases. Balances may arise as transfers based
on loan values o f other collateral in the customer’s margin account or
deposits o f cash (usually sales proceeds) occur.
N ote.—For table on “Margin Requirements” see p. A-10, Table 1.161.
Thrift Institutions
1.38 SAVINGS INSTITUTIONS
A29
Selected Assets and Liabilities
Millions o f dollars, end o f period
1977
1974
1975
1978
1976
July
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
Feb.'
Mar.23
Savings and loan associations
295,545 338,233 391,907 433,728 440,101 444,383 450,563 455,644 459,282 464,279 469,726 475,315
2 Mortgages................................ 249,301 278,590 323,005 355,856 361,582 366,838 371,714 376,468 381,216 384,235 387,644 392,438
3 Cash and investment
39,709 40,642 40,522 39,197 40,356 41,646 41,904
23,251
30,853 35,724 41,057 41,069
39,688 40,436 40,973
22,993 28,790 33,178 36,815 37,450 37,836 38,207 38,654 38,869
5 Liabilities and net worth........ 295,545 338,233 391,907 433,728 440,101 444,383 450,563 455,644 459,282 464,279 469,726 475,315
242,974 285,743 335,912 368,385 371,247 377,208 379,604 381,333 386,875 389,620 391,917 399,032
24,780 20,634 19,083 20,960 22,026 22,920 24,206 25,547 27,803 27,906 28,673 29,319
15,724
18,282 19,952 20,136 20,609 21,076
16,255
16,908
17,546
15,708
17,524
21,508
5,771
6,012
6,660
7,265
5,236
3,375
7,851
7,770
8,064
3,272
3,110
8,243
9,741
9,338
9,662
9,924
6,840
9,856
9,932
9,849
3,244
5,128
9,924
10,437
10 Loans in process.....................
11,280
13,053
10,176
8,074
13,839
12,226
6,949
9,491
11,464
6,105
13,449
10,495
11 Other..........................................
7 Borrowed money......................
8
FHLBB.................................
12 Net worth2...............................
18,442
19,779
21,998
23,765
24,113
24,338
24,671
25,001
25,181
25,440
25,763
26,032
13 M emo: Mortgage loan com
mitments outstanding3..
7,454
10,673
14,826
21,907
21,901
21,631
21,555
21,270
19,886
19,534
20,625
22,233
Mutual savings banks
14 Assets.
15
16
17
18
19
20
21
22 Liabilities.
23
24
25
26
27
28
29
30
109,550 121,056 134.812 143.036 143,815 144,666 145,651 146,346 147,190 148,415 149,437
Loans:
74,891
M ortgage.......................
3,812
Other...............................
Securities:
2,555
U.S. Govt..............................
930
State and local government.
Corporate and other4........ 22,550
2,167
Cash....................................
2,645
Other assets.......................
77,221
4,023
81,630
5,183
84,700
7,176
85,419
7,119
86,079
6,878
86,769
7,115
87,333
7,241
88,104
6,240
88,815
6,843
89,159
7,448
4,740
1,545
27,992
2,330
3,205
5,840
2,417
33,793
2,355
3,593
6,101
2,594
36,674
2,001
3,789
6,019
2,762
36,878
1,857
3,760
6,192
2,777
36,927
1,992
3,821
6,101
2,808
37,073
2,011
3,773
6,071
2,809
37,221
1,887
3,783
5,901
2,828
37,909
2,416
3,792
5,883
2,887
38,260
1,896
3,832
5,939
2,809
38,421
1,845
3,817
109,550 121,056 134.812 143.036 143,815 144,666 145,651 146,346 147,190 148,415 149,437
98,701 109,873 122,877 130,111 130,381 131,688 132,250 132,537 133,892 134,685 135,084
D eposits..............................
98,221 109,291 121,961 128,748 129,030 130,230 130,913 131,319 132,608 133,236 133,716
Regular:5........................
64,286 69,653 74,535 77,069 77,163 77,640 77,503 77,460 77,930 77,680 77,767
Ordinary savings----33,935 39,639 47,426 51,679 51,867 52,590 53,410 53,859 54,678 55,556
55,949
Time and other.........
582
916
1,351
1,284
1,208
480
1,458
1,363
1,450
1,337
1,386
Other...............................
2,884
3,379
3,779
2,755
3,254
3,319
3,938
2,888
3,632
3,665
4,177
Other liabilities.................
9,052
9,654
8,428
9,882
9,723
9,546
9,980
7,961
10,065
9,769
10,175
General reserve accounts-----
Memo : Mortgage loan com
mitments outstanding*..
2,040
1,803
2,439
4,049
4,198
4,254
4,423
4,458
4,066
3,998
4,027
Life insurance companies
31 Assets........................
32
33
34
35
36
37
38
Securities:
Government.........
United States7.
State and local.
Foreign 8...........
Business.................
Bonds...............
Stocks...............
39
40
41
42
M ortgages. .
Real estate..
Policy loans.
Other assets.
263,349 289,304 321,552 336,651 338,964 341,382 343,738 347,182 350,506 352,914 355,068
10,900 13,758 17,942 18,916 19,174 19,515 19,519 19,681
19,508 19,579 19,677
5,810
5,368
5,831
4,136
3,372
5,628
5,883
5,993
5,717
5,693
5,748
5,594
5,979
4,508
5,881
5,994
5,847
3,667
5,967
6,016
6,009
6,073
7,730
7,462
4,514
6,980
7,441
7,721
7,638
3,861
7,799
7,853
7,856
119,637 135,317 157,246 168,498 169,747 170,606 172,005 174,109 175,204 177,134 178,718
97,717 107,256 122,984 135,262 136,752 138,046 139,909 141,354 142,095 145,244 147,202
34,262 33,236 32,995
21,920 28,061
32,560 32,096 32,755 33,109
31,890 31,516
86,234
8,331
22,862
15,385
89,167
9,621
24,467
16,971
91,552
10,476
25,834
18,502
93,106
10,901
26,780
18,450
93,326
10,926
26,946
18,845
94,070
10,930
27,087
19,174
94,684
11,024
27,220
19,286
95,110
11,113
27,355
19,814
96,765
11,201
27,508
20,320
97,171
11,252
27,628
20,150
97,475
11,318
27,762
20,118
Credit unions
43 Total assets/liabilities and
31,948
16,715
15,233
38,037 45,225
20,209 ,24,396
17,828 20,829
50,218
27,290
22,928
50,904
27,632
23,272
52,136
28,384
23,752
52,412
28,463
23,949
53,141
28,954
24,187
54,084
29,574
24,510
r53,982
'29,579
'24,403
54,989
30,236
24,753
56,703
31,274
25,429
State......................................
24,432
12,730
11,702
28,169
14,869
13,300
34,384
18,311
16,073
38,657
20,591
18,066
39,711
21,194
18,517
40,573
21,692
18,881
40,865
21,814
19,051
41,427
22,224
19,203
42,055
22,717
19,338
r41,876
'22,590
'19,286
42,331
22,865
19,466
43,379
23,555
19,824
49 Savings......................................
50
Federal (shares)...................
51
State (shares and deposits).
27,518
14,370
13,148
33,013
17,530
15,483
39,173
21,130
18,043
43,658
23,873
19,785
43,982
24,080
19,902
45,103
24,775
20,328
45,441
24,945
20,496
45,977
25,303
20,674
46,832
25,849
20,983
'47,317
'26,076
'21,241
48,093
26,569
21,524
49,706
27,514
22,192
44
Federal..................................
46 Loans outstanding...................
48
For notes see bottom o f page A30.
A30
Domestic Financial Statistics □ M ay 1978
1.39 FEDERAL FISCAL AN D FINANCING OPERATIONS
Millions of dollars
Type o f account or operation
Fiscal
year
1976
Transition
quarter
(JulySept.
1976)
Calendar year
Fiscal
year
1977
1976
1977
H2
1978
H2
Jan.
Feb.
1
2
3
4
5
U.S. Budget
Receipts 1 ............................................
Outlays l ,2, * ......................................
Surplus, or deficit ( —) ................. .
Trust funds.................................... .
Federal funds 4...............................
299,197
365,643
-6 6 ,4 4 6
2,409
-6 8 ,8 5 5
81,687
94,657
-1 2 ,9 7 0
-1 ,9 5 2
-1 1 ,0 1 8
356,861
401,902
-4 5 ,0 4 1
7,833
- 5 2 ,8 7 4
157.868
193,629
-3 5 ,7 6 1
-4 ,6 2 1
-3 1 ,1 4 0
189,410
199,482
-1 0 ,0 7 2
7,332
-1 7 ,4 0 5
175,787
216,747
-4 0 ,9 6 1
4,293
-4 5 ,2 5 4
33,201
36,918
-3 ,7 1 7
-3 ,9 4 6
230
26,795
33,787
- 6 ,9 9 2
2,850
-9 ,8 4 3
24,879
40,004
-15,125
-1 ,1 4 7
-13,978
6
7
Off-budget entities surplus, or
deficit ( —)
Federal Financing Bank outlays. . ,
Other 2,5............................................
-5 ,9 1 5
-1 ,3 5 5
-2 ,5 7 5
793
-8,415
-2 6 9
-5 ,1 7 6
3,809
-2 ,0 7 5
-2 ,0 8 6
-6,663
428
-9 0 7
-2 6 7
-1,084
-2 0 9
-1,149
-1 6
-73,716
-1 4 ,7 5 2
-5 3 ,7 2 5
-37,125
-1 4 ,2 3 3
-47,196
-4,891
-8 ,2 8 5
-16,290
82,922
18,027
53,516
35,457
16,480
40,284
6,027
5,108
9,656
-7 ,7 9 6
- 1 ,3 9 6
- 2 ,8 9 9
-3 7 3
-2 ,2 3 8
2,440
2,153
-4 8 5
-4 ,6 6 6
2,420
4,317
2,597
-2 2 9
-9 0 7
5,171
-1,993
993
5,640
14,836
17,418
19,104
11,670
10,393
1,277
16,255
12,274
15,740
3,364
12,481
7,391
6,407
3,615
3,776
4,705
1,702
U.S. Budget plus off-budget, in
cluding Federal Financing Bank
Surplus, or deficit ( —) ..................... .
Financed by:
9
Borrowing from the public 3. . .
10
Cash and monetary assets (de
crease, or increase ( —))
11
Other 6............................................
8
Memo items :
12 Treasury operating balance (level, end
of period)........................................
13
F.R. Banks........................................
14
Tax and loan accounts....................
15
Other demand accounts 7...............
11,975
2,854
7
13,299
4,119
1 Effective June 1977, earned income credit payments in excess of an
individual’s tax liability formerly treated as outlays, are classified as
income tax refunds retroactive to January 1976.
2 Outlay totals reflect the reclassification o f the Export-import Bank,
and the Housing for the Elderly and Handicapped Fund effective October
1978, from off-budget status to unified budget status.
3 Export-import Bank certificates o f beneficial interest (effective July
.1, 1975) and loans to the Private Export Funding Corp. (PEFCO), a wholly
owned subsidiary o f the Export-import Bank, are treated as debt rather
than asset sales.
4 Half years calculated as a residual o f total surplus/deficit and trust
fund surplus/deficit.
5 Includes Pension Benefit Guaranty Corp.; Postal Service Fund, Rural
15,183
1,072
7,114
5,160
11,228
1,253
Electrification; Telephone Revolving Fund, Rural Telephone Bank; and
Housing for the Elderly or Handicapped Fund until October 1978.
6 Includes public debt accrued interest payable to the public; deposit
funds; miscellaneous liability (including checks outstanding) and asset
accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment.
7 Excludes the gold balance but includes deposits in certain commercial
depositories that have been converted from a time deposit to a demand
deposit basis to permit greater flexibility in Treasury cash management.
Source.—“Monthly Treasury Statement o f Receipts and Outlays of
the U.S. Government,” Treasury Bulletin, and U.S. Budget, Fiscal Year
1978.
NOTES TO TABLE 1.38
1 Holdings o f stock o f the Federal home loan banks are included in
“other assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Excludes figures for loans in process, which are shown as a liability.
4 Includes securities o f foreign governments and international organiza
tions and nonguaranteed issues o f U.S. Govt, agencies.
5 Excludes checking, club, and school accounts.
6 Commitments outstanding (including loans in process) o f banks in
New York State as reported to the Savings Banks Assn. o f the State of
New York.
7 Direct and guaranteed obligations. Excludes Federal agency issues
not guaranteed, which are shown in this table under “business” securities.
8 Issues o f foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
N ote.—Savings and loan associations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
o f Federally insured associations and annual reports o f other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates o f National Association o f Mutual
Savings Banks for all savings banks in the United States. Data are re
ported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the Institute of Life Insurance
for all life insurance companies in the United States. Annual figures are
annual-statement asset values, with bonds carried on an amortized basis
and stocks at year-end market value. Adjustments for interest due and
accrued and for differences between market and book values are not
made on each item separately but are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration
for a group of Federal and State-chartered credit unions that account for
about 30 per cent o f credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.
Federal Finance
A31
1.40 U.S. BUDGET RECEIPTS AN D OU TLAYS
Millions o f dollars
Calendar year
Source or type
Fiscal
year
1976
Transition
quarter
(JulySept.
1976)
Fiscal
year
1977
1976
1978
1977
HI
H2
Jan.
Feb.
Mar.
Receipts
1 All sources 1........................................
299,197
81,687
356,861
157,868
189,410
175,787
33,201
26,795
24,879
2 Individual income taxes, n et...........
130,794
123,408
38,715
32,949
156,725
144,820
75,899
68,023
77,948
73,303
82,877
75,480
20,217
13,111
10,620
12,811
5,258
14,469
34
35,528
28,175
1
6,809
1,043
37
42,062
30,194
1
8,426
1,541
37
32,959
28,350
1
9,397
2,001
1
7,154
48
6
905
3,102
9
2,537
11,756
46,783
5,374
9,808
1,348
60,057
5,164
20,706
2,886
37,133
2,324
25,121
2,819
2,273
282
1,521
508
8,682
659
92,714
25,760
108,683
47,596
58,099
52,347
7,997
12,427
8,560
76,391
21,534
88,196
40,427
45,242
44,384
6,898
10,479
7,616
3,518
8,054
4,752
269
2,698
1,259
4,014
11,312
5,162
286
4,379
2,504
3,687
6,575
2,595
316
4,936
2,711
259
403
437
266
1,192
490
322
144
478
16,963
4,074
5,216
8,026
4,473
1,212
1,455
1,612
17,548
5,150
7,327
6,536
8,910
2,361
2,943
3,236
8,432
2,519
4,332
3,269
9,284
2,848
2,837
3,292
1,492
494
447
563
1,259
441
434
602
1,395
603
462
577
3
4
Withheld.........................................
Presidential Election Campaign
Fund.......................................
5
Nonwithheld..................................
6
Refunds 1........................................
7 Corporation income taxes:
8
Gross receipts................................
9
Refunds..........................................
10 Social insurance taxes and contribu
tions, net.....................................
11
Payroll employment taxes and
contributions 2 ......................
12
Self-employment taxes and
contributions 3.....................
13
Unemployment insurance...........
14
Other net receipts 4 .....................
15
16
17
18
Excise taxes........................................
Customs..............................................
Estate and gift...................................
Miscellaneous receipts 5.................
Outlays9
All types 1, 6 ........................................
365,643
94,657
401,902
193,629
199,482
216,747
36,918
33,787
40,004
20 National defense.................................
21 International affairs 6 .....................
22 General science, space, and
technology....................................
23 Energy...................................................
24 Natural resources and environment
25 Agriculture...........................................
89,430
5,567
22,307
2,180
97,501
4,831
45,002
3,028
48,721
2,522
50,873
2,896
7,974
300
8,676
-110
10,701
-7 9 5
4,370
3,127
8,124
2,502
1,161
794
2,532
584
4,677
4,172
10,000
5,526
2,377
2,108
2,318
370
2,019
2,628
5,477
392
319
641
-5 7
433
542
841
680
26
27
28
3,795
13,438
1,391
3,306
-3 1
14,636
-6 2 6
1,076
52
991
19
Commerce and housing credit.........
Transportation................................
Community and regional
development................................
29 Education, training, employment,
and social services.....................
30 H ealth...................................................
31 Income security i ...............................
32
33
34
35
36
37
Veterans benefits and services.........
Administration o f justice..................
General government..........................
General-purpose fiscal assistance...
Interest 7 ..............................................
Undistributed offsetting receipts 78
4,709
1,340
6,283
3,192
3,149
4,924
755
773
1,461
18,737
33,448
126,598
5,162
8,720
32,710
20,985
38,785
137,004
9,083
19,329
65,367
9,775
18,654
69,917
10,800
19,422
71,047
1,996
2,680
12,912
2,058
3,635
12,073
2,214
3,895
13,109
18,432
3,320
2,927
7,235
34,589
-1 4 ,7 0 4
3,962
859
878
2,092
7,246
-2 ,5 6 7
18,038
3,600
3,357
9,499
38,092
-1 5 ,0 5 3
8,542
1,839
1,734
4,729
18,409
-7 ,8 6 9
9,382
1,783
1,587
4,333
18,927
-6 ,8 0 3
9,864
1,723
1,749
4,926
19,962
- 8 ,5 0 6
686
1,529
326
355
52
3,353
-6 7 7
2,662
290
374
43
3,091
-5 8 1
1 Effective June 1977, earned income credit payments in excess o f an
individual’s tax liability, formerly treated as outlays, are classified as in
come tax refunds retroactive to January 1976.
2 Old-age, disability and hospital insurance, and Railroad Retirement
accounts.
3 Old-age, disability, and hospital insurance.
4 Supplementary medical insurance premiums, Federal employee re
tirement contributions, and Civil Service retirement and disability fund.
5 Deposits o f earnings by F.R. Banks and other miscellaneous receipts.
6 Outlay totals reflect the reclassification of the Export-import Bank
from off-budget status to unified budget status. Export-import Bank
certificates o f beneficial interest (effective July 1, 1975) and loans to the
Private Export Funding Corp. (PEFCO), a wholly owned subsidiary of
the Export-import Bank, are treated as debt rather than asset sales.
7 Effective September 1976, “Interest” and “ Undistributed Offsetting
*' i ,*790*
307
166
2,317
2,628
-4 7 5
Receipts” reflect the accounting conversion for the interest on special
issues for U.S. Govt, accounts from an accrual basis to a cash basis.
8 Consists o f interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. Govt, contributions for em
ployee retirement.
9 For some types o f outlays the categories are new or represent re
groupings; data for these categories are from the Budget o f the United
States Government, Fiscal Year 1979; data are not available for half years
or for months prior to February 1978.
Two categories have been renamed: “Law enforcement and justice”
has become “Administration o f justice” and “Revenue sharing and
general purpose fiscal assistance” has become “General purpose fiscal
assistance.”
In addition, for some categories the table includes revisions in figures
published earlier.
A32
1.41
Domestic Financial Statistics □ M ay 1978
FED ER A L DEBT SUBJECT TO STATUTORY LIM ITA TION
Billions o f dollars
1974
1976
1975
1977
Item
Dec. 31
June 30
Dec. 31
June 30
Sept. 30
Dec. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding.......................
504.0
544.1
587.6
631.9
2 646.4
665.5
685.2
709.1
729.2
2 Public debt securities..............................
3
Held by public....................................
4
Held by agencies.................................
492.7
351.5
141.2
533.7
387.9
145.3
576.6
437.3
139.3
620.4
470.8
149.6
634.7
488.6
146.1
653.5
506.4
147.1
674.4
523.2
151.2
698.8
543.4
155.5
718.9
564.1
154.8
11.3
9 .3
2 .0
10.9
9 .0
1.9
10.9
8.9
2 .0
11.5
9.5
2 .0
11.6
2 9 .7
1.9
12.0
10.0
1.9
10.8
9 .0
1.8
10.3
8.5
1.8
10.2
8.4
1.8
8 Debt subject to statutory lim it..............
493.0
534.2
577.8
621.6
635.8
654.7
675.6
700.0
720.1
10 Other debt1..............................................
490.5
2 .4
532.6
1.6
576.0
1.7
619.8
1.7
634.1
1.7
652.9
1.7
673.8
1.7
698.2
1.7
718.3
1.7
11 M emo: Statutory debt lim it.................
495.0
577.0
595.0
636.0
636.0
682.0
700.0
700.0
752.0
6
7
Held by public....................................
Held by agencies................................
1 Includes guaranteed debt o f Govt, agencies, specified participation
certificates, notes to international lending organizations, and District of
Columbia stadium bonds.
2 Gross Federal debt and agency debt held by the public increased
1.42
GROSS PU BLIC DEBT O F U.S. TREA SURY
$0.5 billion due to a retroactive reclassification of the Export-import Bank
certificates o f beneficial interest from loan asset sales to debt, effective
July 1, 1975.
N o te.—Data from Treasury Bulletin (U.S. Treasury Dept.).
Types and Ownership
Billions o f dollars, end o f period
1977
Type and holder
1973
1974
1975
1978
1976
Dec.
Jan.
Feb.
Mar.
Apr.
469.1
492.7
576.6
653.5
718.9
721.6
729.8
738.0
736.6
Convertible bonds 2 ...........................................
State and local govt, series..................................
Foreign issues3...................................................
Savings bonds and notes.................................
Govt, account series4 .......................................
467.8
270.2
107.8
124.6
37.8
197.6
2.3
*
26.0
60.8
108.0
491.6
282.9
119.7
129.8
33.4
208.7
2.3
.6
22.8
63.8
119.1
575.7
363.2
157.5
167.1
38.6
212.5
2.3
1.2
21.6
67.9
119.4
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2 .2
13.9
22.2
77.0
139.8
720.6
466.8
161.2
257.1
48.5
253.8
2.2
14.8
22.8
11A
136.4
728.5
470.8
161.8
258.5
50.5
257.7
2.2
15.4
22.6
77.8
139.4
736.9
478.3
165.7
262.2
50.4
258.7
2 .2
16.4
23.6
78.2
138.0
733.1
472.2
159.6
262.2
50.4
260.9
2 .2
17.6
23.4
78.6
138.8
13 Non-interest-bearing debt........................................
1.2
1.1
1.0
1.1
3.7
1.0
1.3
1.0
3.5
By holder:5
14
U.S. Govt, agencies and trust funds.................
15
F.R. Banks.............................................................
123.4
75.0
138.2
80.5
145.3
84.7
149.6
94.4
154.8
102.5
151.5
97.0
154.2
95. 5
16
17
18
19
20
21
Private investors.....................................................
Commercial banks............................................
Mutual savings banks......................................
Insurance companies........................................
Other corporations...........................................
State and local governments..........................
260.9
60.3
2.9
6.4
10.9
29.2
271.0
55.6
2.5
6.2
11.0
29.2
349.4
85.1
4.5
9.5
20.2
34.2
409.5
103.8
5.7
12.5
26.5
41.6
461.3
102.4
6 .0
15.6
22.2
55.1
473.1
102.2
5.9
15.3
22.9
56.4
477.1
103.5
5.9
15. 3
21.8
58.3
22
23
Individuals:
Savings bonds................................................
Other securities..............................................
60.3
16.9
63.4
21.5
67.3
24.0
72.0
28.8
76.7
28.6
77.1
29.0
77.6
29.1
24
25
Foreign and international6.............................
Other miscellaneous investors7 ......................
54.7
19.3
58.8
22.8
66.5
38.0
78.1
40.5
109.6
45.0
112.5
51.7
115.5
50.3
1 Total gross public debt.............................................
2
3
4
5
6
7
8
9
10
11
12
By type:
Interest-bearing debt..................................................
M arketable..............................................................
B ills......................................................................
N otes...................................................................
1 Includes (not shown separately): Securities issued to the Rural
Electrification Administration and to State and local governments, de
positary bonds, retirement plan bonds, and individual retirement bonds.
2 These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner’s option for IVi
per cent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
3 Nonmarketable foreign government dollar-denominated and foreign
currency denominated series.
4 Held almost entirely by U.S. Govt, agencies and trust funds.
5 Data for F.R. Banks and U.S. Govt, agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.
6 Consists o f the investments o f foreign balances and international
accounts in the United States. Beginning with July 1974, the figures exclude
non-interest-bearing notes issued to the International Monetary Fund.
7 Includes savings and loan associations, nonprofit institutions, cor
porate pension trust funds, dealers and brokers, certain Govt, deposit
accounts, and Govt.-sponsored agencies.
N ote.—Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type o f security from Monthly Statement o f the Public Debt o f
the United States (U.S. Treasury D ept.); data by holder from Treasury
Bulletin.
A33
Federal Finance
1.43 U.S. GOVERNM ENT MARKETABLE SECURITIES Ownership, by maturity
Par value; millions o f dollars, end o f period
1978
Type o f holder
1976
1977
1976
Feb.
1978
1977
Mar.
Feb.
All maturities
Mar.
1 to 5 years
1 All holders.......................................................................................
421,276
459,927
470,766
478,252
141,132
151,264
164,317
167,661
2 U.S. Govt, agencies and trust funds.........................................
3
16,485
96,971
14,420
101,191
13,996
98,450
13,982
101,576
6,141
31,249
4,788
2 1 ,O il
A,119
28,824
4,774
30,386
307,820
78,262
4,072
10,284
14,193
4,576
12,252
184,182
344,315
75,363
4,379
12,378
9,474
4,817
15,495
222,409
358,320
74,761
4,251
12,146
9,297
4,954
15,883
237,028
362,693
73,852
4,200
11,902
8,197
5,014
16,564
242,963
103,742
40,005
2,010
3,885
2,618
2,360
2,543
50,321
119,464
38,691
2,112
A,129
3,183
2,368
3,875
64,505
130,715
40,583
2,218
5,126
3,430
2,438
4,023
72,796
132,581
41,251
2,243
5,063
3,537
2,495
4,911
72,991
5
6
7
8
9
10
11
Total, within 1 year
5 to 10 years
12 All holders.......................................................................................
211,035
230,691
228,805
232,997
43,045
45,328
41,554
41,554
13 U.S. Govt, agencies and trust funds.........................................
14
2,012
51,569
1,906
56,702
1,171
52,438
1,163
53,360
2,879
9,148
2,129
10,404
2,129
9,571
2,129
10,010
15 Private investors.............................................................................
16
17
18
19
20
21
22
157,454
31,213
1,214
2,191
11,009
1,984
6,622
103,220
172,084
29,477
1,400
2,398
5,770
2,236
7,917
122,885
175,195
26,553
1,233
2,096
5,239
2,313
8,190
129,572
178,474
25,237
1,162
1,905
4,168
2,267
7,587
136,148
31,018
6,278
567
2,546
370
155
1,465
19,637
32,795
6,162
584
3,204
307
143
1,283
21,112
29,853
6,149
507
2,906
299
130
1,272
18,589
29,414
5,957
507
2,909
267
171
1,253
18,350
Bills, within 1 year
26
27
28
29
30
31
32
33
All others....................................................................................
10 to 20 years
163,992
161,081
161,817
165,652
11,865
12,906
14,356
14,325
449
41,279
32
42,004
12
38,537
2
38,809
3,102
1,363
3,102
1,510
3,102
1,536
3,102
1,588
122,264
17,303
454
1,463
9,939
1,266
5,556
86,282
119,035
11,996
484
1,187
4,329
806
6,092
94,152
123,269
9,479
343
990
3,625
876
6,189
101,766
126,842
9,236
327
900
2,628
889
5,414
107,448
7,400
339
139
1,114
142
64
718
4,884
8,295
456
137
1,245
133
54
890
5,380
9,719
732
139
1,172
130
56
995
6,494
9,635
611
135
1,163
148
63
1,296
6,217
Other, within 1 year
37
38
39
40
41
42
43
44
Nonfinancial corporations.......................................................
State and local governments...................................................
47,043
69,610
66,988
67,344
14,200
19,738
21,734
21,715
1,563
10,290
1,874
14,698
1,159
13,901
1,161
14,551
2,350
3,642
2,495
5,564
2,814
6,081
2,814
6,233
35,190
13,910
760
728
1,070
718
1,066
16,938
53,039
15,482
916
1,211
1,441
1,430
3,875
28,733
51,927
17,074
890
1,106
1,613
1,437
2,001
27,806
51,632
16,001
835
1,005
1,540
1,378
2,173
28,700
8,208
A ll
143
548
55
13
904
6,120
11,679
578
146
802
81
16
1,530
8,526
12,838
744
153
844
99
17
1,404
9,576
12,669
191
152
862
76
17
1,516
9,248
N ote.—Direct public issues only. Based on Treasury Survey o f Owner
ship from Treasury Bulletin (U.S. Treasury Dept.).
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings o f those institutions
that report. The following figures show, for each category, the number
and proportion reporting as o f Mar. 31, 1978; (1) 5,480 commercial
Over 20 years
banks, 465 mutual savings banks, and 728 insurance companies, each
about 90 per cent; (2) 436 nonfinancial corporations and 485 savings
and loan assns., each about 50 per cent; and (3) 495 State and local
govts., about 40 per cent.
“All others,” a residual, includes holdings o f all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A34
Domestic Financial Statistics □ M ay 1978
1.44 U.S. GOVERNM ENT SECURITIES DEALERS Transactions
Par value; averages o f daily figures, in millions o f dollars
1978
Item
1975
1976
1978, week ending Wednesday—
1977
Jan.
Feb.
Mar. 1
Mar. 8
Mar. 15 Mar. 22 Mar. 29
Apr. 5
1 U.S. Govt, securities...............
6,027
10,449
10,838
10,740
10,200
10,620
11,895
10,463
9,180
8,876
12,186
12,968
By maturity:
Bills........................................
Other within 1 year...........
1-5 years..............................
5-10 years............................
Over 10 years......................
3,889
223
1,414
363
138
6,676
2,317
1,019
229
6,746
237
2,318
1,148
388
6,956
400
1,923
720
741
5,835
317
2,240
1,169
640
6,678
345
1,923
1,027
648
6,833
503
2,911
1,007
641
7,244
328
1,736
670
486
5,322
391
1,810
915
741
5,697
332
1,462
739
646
7,187
249
2,531
1,507
712
8,600
377
1,984
1,337
669
By type o f customer:
U.S. Govt, securities
dealers..........................
8
U.S. Govt, securities
brokers.........................
9 Commercial banks.............
10
All others i ...........................
885
1,360
1,267
1,358
1,509
1,320
1,835
1,400
1,119
1,163
1,402
1,666
1,750
1,451
1,941
3,407
2,426
3,257
3,709
2,295
3,567
3,663
2,180
3,540
2,962
2,069
3,661
3,324
2,134
3,842
3,578
2,248
4,234
3,069
2,125
3,869
2,829
1,882
3,350
2,688
1,731
3,293
4,029
2,553
4,202
4,119
2,413
4,770
11 Federal agency securities. . . .
1,043
1,548
693
1,460
1,668
1,847
2,697
'1,782
1,805
1,545
1,862
1,732
2
3
4
5
6
7
210
1 Includes—among others—all other dealers and brokers in commodi
Transactions are market purchases and sales o f U.S. Govt, securities
ties and securities, foreign banking agencies, and the F.R. System.
dealers reporting to the F.R. Bank o f New York. The figures exclude
allotments of, and exchanges for, new U.S. Govt, securities, redemptions
N ote.—Averages for transactions are based on number o f trading days
o f called or matured securities, or purchases or sales o f securities under
in the period.
repurchase, reverse repurchase (resale), or similar contracts.
1.45
U.S. G O V ERN M EN T SECURITIES D EALERS
Positions and Sources of Financing
Par value; averages o f daily figures, in millions o f dollars
Item
1975
1976
1978
1977
Jan.
Feb.
1978, week ending Wednesday—
Mar.
Feb. 8
Feb. 15
Feb. 22
Mar. 1
Mar. 8
Mar. 15
Positions2
1 U .S. Govt, securities...............
5,884
7,592
5,172
4,373
4,845
3,519
5,728
5,457
4,194
3,896
4,244
3,916
2
3
4
5
6
Bills........................................
Other within 1 year...........
1-5 years..............................
5-10 years............................
Over 10 years......................
4,297
265
886
300
136
6,290
188
515
402
198
4,772
99
60
92
149
4,052
91
120
-117
227
3,351
68
792
387
248
2,773
226
460
67
-7
3,682
165
744
725
412
4,193
86
358
495
325
3,185
21
594
198
155
2,317
-1 4
1,330
155
107
2,923
193
975
133
21
2,923
221
597
53
20
7 Federal agency securities. . . .
943
729
693
504
622
794
576
619
519
765
801
867
Sources o f financing3
8 All sources................................
6,666
8,715
9,877
9,976
9,695
9,586
9,197
10,558
9,929
8,862
9,366
10,431
Commercial banks:
New York City...................
Outside New York C ity ...
Corporations1.........................
All others................................
1,621
1,466
842
2,738
1,896
1,660
1,479
3,681
1,313
1,987
2,358
4,170
926
2,342
2,492
4,216
533
2,377
2,299
4,485
777
2,067
2,406
4,335
857
2,396
2,134
3,810
458
2,644
2,303
5,153
534
2,426
2,316
4,653
360
2,075
2,407
4,021
1,010
2,005
2,334
4,018
1,189
2,522
2,565
4,155
9
10
11
12
1 All business corporations except commercial banks and insurance
companies.
2 Net amounts (in terms o f par values) o f securities owned by nonbank
dealer firms and dealer departments o f commercial banks on a commit
ment, that is, trade-date basis, including any such securities that have been
sold under agreements to repurchase. The maturities o f some repurchase
agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. Securities owned, and
hence dealer positions, do not include securities purchased under agree
ments to resell.
3 Total amounts outstanding o f funds borrowed by nonbank dealer
firms and dealer departments o f commercial banks against U.S. Govt,
and Federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
N ote.—Averages for positions are based on number o f trading days
in the period; those for financing, on the number o f calendar days in the
period.
A35
Federal Finance
1.46 FEDERAL A N D FED ERALLY SPONSORED CREDIT AGENCIES Debt Outstanding
Millions o f dollars, end o f period
1977
Agency
1974
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
89,381
97,680
103,325
108,379
109,046
109,427
110,409
111,520
112,945
2 Federal agencies.........................................................
3 Defense Department1..........................................
4
Export-Import Bank2,3........................................
5
Federal Housing Administration4.....................
6
Government National Mortgage Association
participation certificates5............................
7
Postal Service6 .......................................................
8
Tennessee Valley Authority................................
12,719
1,312
2,893
440
19,046
1,220
7,188
564
21,896
1,113
7,801
575
23,055
1,016
9,246
579
23,143
1,006
9,246
583
23,257
991
9,246
585
23,245
983
9,156
581
23,293
974
9,156
599
23,284
963
9,156
602
4,280
721
3,070
3
4,200
1,750
3,915
209
4,120
2,998
5,185
104
3,768
2,431
5,705
310
3,768
2,431
5,785
324
3,768
2.431
5,905
331
3,743
2,431
6,015
336
3,743
2,431
6,045
345
3,743
2,431
6,045
344
10 Federally sponsored agencies....................................
11
Federal home loan banks....................................
12
Federal Home Loan Mortgage Corporation..
13
Federal National Mortgage A ssociation........
14
Federal land banks...............................................
15
Federal intermediate credit banks.....................
16 Banks for cooperatives.........................................
76,662
21,890
1,551
28,167
12,653
8,589
3,589
220
3
78,634
18,900
1,550
29,963
15,000
9,254
3,655
310
2
81,429
16,811
1,690
30,565
17.127
10,494
4,330
410
2
85,324
17,162
1,686
31,491
18,719
11,693
4,061
510
2
85,903
17,325
1,686
31,572
19,118
11,623
4,052
525
2
86,170
17,867
1,686
31,333
19,118
11,421
4,208
535
2
87,164
18,345
1,686
31,890
19,118
11,174
4,434
515
2
88,227
18,692
1,768
32,024
19,498
11,103
4,625
515
2
89,661
19,893
1,768
32,553
19,350
10,958
4,622
515
2
4,474
17,154
28,711
35,418
36,722
37,095
38,580
39,522
40,605
500
220
895
3
4,595
1,500
310
1,840
209
5,208
2,748
410
3,110
104
5,924
2,181
510
3,880
310
5,924
2,181
525
3,960
324
5,924
2,181
535
4,080
331
5,834
2,181
515
4,190
336
5,834
2,181
515
4,220
345
5,834
2,181
515
4,220
344
7,000
566
1,134
10.750
1,415
4,966
14,615
2,382
5,616
15,295
2,467
6,046
15,295
2,535
6,214
16,095
2M l
6,782
16,760
2,809
6,858
17,545
2,947
7,019
18
Other........................................................................
Memo items :
20
21
22
23
24
Lending to Federal and Federally sponsored
agencies:
Export-Import Bank3 ..........................................
Postal Service6 .......................................................
Student Loan Marketing Association7.............
Tennessee Valley Authority................................
United States Railway Association6 .................
25
26
27
Other lending:9
Farmers Home Administration.........................
Rural Electrification Administration................
Other........................................................................
2,500
356
1 Consists o f mortgages assumed by the Defense Department between
1957 and 1963 under family housing and homeowners assistance programs.
2 Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17,1974, through Sept. 30,1976; on-budget thereafter.
4 Consists o f debentures issued in payment o f Federal Housing Ad
ministration insurance claims. Once issued, these securities may be sold
privately on the securities market.
5 Certificates o f participation issued prior to fiscal 1969 by the Govern
ment National Mortgage Association acting as trustee for the Farmers
Home Administration; Department o f Health, Education, and Welfare;
Department o f Housing and Urban Development; Small Business Ad
ministration; and the Veterans Administration.
6 Off-budget.
7 Unlike other Federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
8 The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other Federal agencies.
Since FFB incurs debt solely for the purpose o f lending to other agencies,
its debt is not included in the main portion o f the table in order to avoid
double counting.
9 Includes FFB purchases o f agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees o f any particular agency being generally small. The Farmers
Home Administration item consists exclusively o f agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.
A36
Domestic Financial Statistics □ M ay 1978
1.47 NEW SECURITY ISSUES of State and Local Governments
Millions o f dollars
Type of issue or issuer,
or use
1975
1976
1977
1977
1978
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
1 All issues, new and refunding 1.................
30,607
35,313
46,769
4,022
3,816
3,338
3,655
3,283
2,716
By type of issue:
General obligation.. ...........................
Revenue................................................
Housing Assistance Administration 2.
U.S. Govt, loans.................................
16,020
14,511
18,040
17,140
18,042
28,655
1,267
2,746
1,521
2,286
982
2,350
1,372
2,274
1,875
1,408
1,128
1,588
833
2
3
4
5
76
133
72
By type o f issuer:
6
State............................................................................................
7
Special district and statutory authority..............................
8
Municipalities, counties, townships, school districts. . . .
7,438
12,441
10,660
7,054
15,304
12,845
6,354
21,717
18,623
401
2,364
1,247
837
1,607
1,363
299
1,592
1,441
517
1,846
1,283
1,122
1,328
311
1,264
1,140
9 Issues for new capital, total........................................................
29,495
32,108
36,189
2,376
3,082
2,514
2,343
2,904
1,990
By use o f proceeds:
Education..................................................................................
Transportation..........................................................................
Utilities and conservation......................................................
Social welfare............................................................................
Industrial aid ............. ..............................................................
Other purposes.........................................................................
4,689
2,208
7,209
4,392
445
10,552
4,900
2,586
9,594
6,566
483
7,979
5,076
2,951
8,119
8,274
4,676
7,093
356
176
659
672
313
352
327
402
1,069
455
477
381
113
474
691
589
266
348
184
525
659
282
345
560
224
481
855
245
539
414
56
377
509
304
330
10
11
12
13
14
15
1 Par amounts of long-term issues based on date of sale.
2 Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
1.48
200
Source.— Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1975
1976'
1977'
1977'
Sept.
Oct.
1978
Nov.
Dec.
Jan.
1 All issues 1........................................
53,619
53,488
54,205
4,177
4,221
5,331
6,531
3,013
2 Bonds................................................
42,756
42,380
42,193
3,477
3,093
3,411
5,362
2,380
By type o f offering:
3 Public............................................
4
Private placement.....................
32,583
10,172
26,453
15,927
24,186
18,007
1,908
1,569
2,114
979
2,211
1,200
1,542
3,820
1,382
998
By industry group:
Manufacturing............................
Commercial and miscellaneous
Transportation...........................
Public utility................................
Communication..........................
Real estate and financial..........
16,980
2,750
3,439
9,658
3,464
6,469
13,264
4,372
4,387
8,297
2,787
9,274
12,510
5,887
2,033
8,261
3,059
10,438
795
672
138
1,023
319
530
648
571
120
854
8
892
726
546
178
851
288
821
2,375
753
345
476
189
1,223
268
280
123
284
519
907
11 Stocks...............................................
10,863
11,108
12,013
700
1,128
1,920
1,169
633
By type:
12
Preferred......................................
13
Common......................................
3,458
7,405
2,803
8,305
3,878
8,135
421
279
304
824
364
1,556
473
696
171
462
1,670
1,470
2,237
1,183
24
1,265
1,838
418
6,058
1,379
1,054
38
83
325
56
40
478
3
55
122
166
124
50
878
725
5
138
604
360
165
m
5
6
7
8
9
10
14
15
16
17
18
19
By industry group:
M anufacturing............................
Commercial and miscellaneous
Transportation............................
Public utility................................
Communication..........................
Real estate and financial........ ..
1
6,235
1,002
488
i Figures, which represent gross proceeds of issues maturing in more
than 1 year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
6,121
776
771
86
583
*i 3*7
110
Feb.
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
Source.—Securities and Exchange Commission.
C orporate Finance
A37
1.49 OPEN-END INVESTM ENT COMPANIES Net Sales and Asset Position
Millions o f dollars
1977
Item
1976
1977
Sept.
1978
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
INVESTMENT COMPANIES
excluding money market funds
1
2
3
Sales of own shares1........................................
Redemptions of own shares2..........................
4,226
6,802
-2 ,4 9 6
6,401
6,027
357
558
469
89
542
519
23
511
430
81
557
562
5
638
465
173
451
348
103
613
459
154
4
5
6
Assets 3..............................................................
Cash position4..............................................
Other.............................................................
47,537
2,747
44,790
45,049
3,274
41,775
45,046
3,403
41,643
43,435
3,481
39,954
45,050
3,487
41,563
45,049
3,274
41,775
43,000
3,608
39,392
M2,747
4,258
r38,489
43,984
4,331
39,653
1 Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
2 Excludes share redemption resulting from conversions from one fund
to another in the same group.
3 Market value at end of period, less current liabilities.
1.50
4 Also includes all U.S. Govt, securities and other short-term debt
securities.
N ote. —Investment Company Institute data based on reports of mem
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.
CORPORATE PROFITS A N D T H E IR DISTRIBU TION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Account
1975
1976
1976
1977
1977
Q2
Q3
Q4
Ql
Q2
Q3
Q4
1 Profits before tax.....................................................
123.5
156.9
171.7
159.2
159.9
154.8
161.7
174.0
172.8
178.3
3 Profits after tax........................................................
50.2
73.3
64.7
92.2
69.2
102.5
66.1
93.1
65.9
94.0
63.9
90.9
64.4
97.3
69.7
104.3
69.3
103.5
73.3
105.0
4 Dividends..................................................................
5 Undistributed profits...............................................
32.4
40.9
35.8
56.4
41.2
61.3
35.0
58.1
36.0
58.0
38.4
52.5
38.5
58.8
40.3
64.0
42.3
61.2
43.6
61.4
6 Capital consumption allowances.............................
7 Net cash flow............................................................
89.5
130.4
97.2
153.6
104.7
166.0
95.9
154.0
98.2
156.2
100.4
152.9
102.0
160.8
103.5
167.5
105.8
167.0
107.6
169.0
Source.—Survey o f Current Business (U.S. Dept, of Commerce).
A38
1.51
Domestic Financial Statistics □ M ay 1978
N O N FIN A N C IA L C O RPO RA TION S
C urrent Assets and Liabilities
Billions of dollars, end of period
Account
1972
1973
1974
1976
1975
1977
Q2
Q3
Q4
Ql
Q2
Q3
909.8
1 Current assets.........................................................
574.4
643.2
712.2
731.6
775.4
791.8
816.8
845.3
874.7
Cash....................................................................
U.S. Govt, securities.........................................
Notes and accounts receivable ............................
U.S. Govt.1....................................................
Other...............................................................
Inventories..........................................................
Other...................................................................
57.5
10.2
61.6
62.7
11.7
68.1
19.4
243.4
269.6
293.2
298.2
70.8
23.3
71.1
23.9
77.0
26.4
75.0
27.3
77.9
24.1
79.1
24.1
3.5
289.7
288.0
56.6
3.6
294.6
285.8
60.0
346.6
361.4
379.1
2
3
4
5
6
7
8
9
10
11
12
13
14
Notes and accounts payable ...............................
3.4
240.0
215.2
48.1
11.0
3.5
266.1
246.7
54.4
3.7
318.1
295.6
63.9
328.5
4.3
324.2
302.1
66.3
328.2
4.3
323.9
315.4
69.8
4.7
342.0
322.1
74.3
4.8
356.6
332.5
78.8
5.3
373.8
343.1
84.5
352.2
401.0
450.6
457.5
475.9
484.1
499.9
516.6
532.0
556.3
234.4
265.9
292.7
288.0
293.8
291.7
302.9
309.0
318.9
329.7
U.S. Govt.1....................................................
Other...............................................................
Accrued Federal income taxes.........................
Other..................................................................
4.0
230.4
15.1
102.6
IS Net working capital...............................................
222.2
4.3
261.6
18.1
117.0
242.3
6.4
281.6
20.7
148.8
5.2
287.5
23.2
134.8
274.1
261.5
i Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations’ books.
1.52
321.8
6.8
287.0
22.0
160.1
299.5
7.0
284.7
24.9
167.5
7.0
295.9
26.8
170.2
307.7
316.9
6.8
302.2
28.6
179.0
5.7
313.2
24.5
188.6
328.7
342.8
6.2
323.5
26.9
199.7
353.5
Source. —Securities and Exchange Commission,
BUSINESS EX PEN D ITU RES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1976
Industry
1976r
1977
1978
1977r
Q2
Q3
Q4
Ql
Q2
Q3
Q4r
Q12
1 All industries..........................................................
120.15
135.72
118.12
122.55
125.22
130.16
134.24
140.38
138.11
146.25
Manufacturing
2 Durable goods industries...................................
3 Nondurable goods industries............................
23.57
28.70
27.75
32.33
22.54
28.09
24.59
30.20
25.50
28.93
26.30
30.13
27.26
32.19
29.23
33.79
28.19
33.22
29.81
33.18
4.00
4.49
3.83
4.21
4.13
4.24
4.49
4.74
4.50
5.24
2.51
1.29
3.60
2.82
1.63
2.55
2.64
1.44
4.16
2.69
1.12
3.44
2.63
1.41
3.49
2.71
1.62
2.96
2.57
1.43
2.96
3.20
1.69
1.96
2.80
1.76
2.32
3.38
2.42
2.32
18.77
3.45
13.28
20.99
21.57
4.21
15.43
22.95
18.82
3.03
12.62
20.94
18.22
3.45
13.64
20.99
19.49
3.96
14.30
21.36
21.19
4.16
14.19
22.67
21.14
4.16
15.32
22.73
21.90
4.32
16.40
23.14
4
5
6
7
8
9
10
11
Nonmanufacturing
Mining................................................................
Transportation:
Railroad..........................................................
Air...................................................................
Other...............................................................
Public utilities:
Electric............................................................
Gas and other................................................
Communication..................................................
Commercial and other1.....................................
1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
N ote.—Estimates for corporate and noncorporate business, excluding
22.05
23.70
4.18
4.99
15.82 | 41.21
23.27
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source.— Survey o f Current Business (U.S. Dept, o f Commerce).
A39
C orporate Finance
1.521 DOMESTIC FINANCE COMPANIES Assets and Liabilities
Billions o f dollars, end o f period
1972
Account
1973
1974
1976
1975
1977
Q3
Q4
Ql
Q2
Q3
Q4
36.0
39.3
37.6
42.4
38.6
44.7
39.2
47.5
40.7
50.4
75.3
80.0
83.4
86.7
91.2
42.3
50.6
44.0
55.2
ASSETS
1
2
3
4
Accounts receivable, gross
Consumer.................................................................
Business....................................................................
Total......................................................................
Less : Reserves for unearned income and losses
Accounts receivable, n et...........................................
Cash and bank deposits............................................
Securities.......................................................................
All other........................................................................
31.9
27.4
35.4
32.3
36.1
37.2
59.3
67 .7
73.3
8.4
59.3
2.6
.8
10.6
9.0
64.2
3.0
.4
12.0
9.4
65.9
2.9
1.0
11.8
10.2
69.9
2.6
1.2
12.7
10.5
72.9
2.6
1.1
12.6
10.6
76.1
2.7
1.0
13.0
65.6
73.2
79.6
81.6
86.4
89.2
10 Bank loans....................................................................
11 Commercial paper......................................................
5.6
17.3
7.2
19.7
9.7
20.7
8.0
22.2
5.5
21.7
Debt:
12 Short-term, n.e.c.....................................................
13 Long-term, n.e.c......................................................
14 Other..........................................................................
4.3
22.7
4.8
4.6
24.6
5.6
4.9
26.5
5.5
4.5
27.6
6.8
5.2
31.0
9.5
5
6
7
8
9 Total assets...................................................................
7.4
51.9
2.8
.9
10.0
92.9
99.2
11.1
80.1
2.5
1.2
13.7
11.7
81.2
2.5
1.8
14.2
92.8
97.5
99.6
104.3
6.3
23.7
6.1
24.8
5.7
27.5
5.4
25.7
5.9
29.6
5.4
32.3
8.1
4.5
34.0
9.5
5.5
35.0
9.4
5.4
34.8
13.7
6.2
36.0
11.5
12.7
86.5
2.6
.9
14.3
LIABILITIES
15 Capital, surplus, and undivided profits.................
10.9
11.5
12.4
12.5
13.4
13.4
13.9
14.4
14.6
15.1
16 Total liabilities and capital........................................
65.6
73.2
79.6
81.6
86.4
89.2
92.8
97.5
99.6
104.3
N ote.—Components may not add to totals due to rounding.
1.522
DOM ESTIC FIN A N C E COM PANIES
Business Credit
Millions o f dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstand
ing Feb. 28,
19781
Changes in accounts
receivable during—
1977
Dec.
1978
Jan.
Extensions
1977
Feb.
Dec.
Repayments
1978
Jan.
1977
Feb.
1978
Dec.
Jan.
Feb.
1 Total........................................................................
56,564
906
777
461
13,386
12,480
11,930
13,007
2 Retail automotive (commercial vehicles)........
3 Wholesale automotive.........................................
4 Retail paper on business, industrial, and
12,123
12,620
332
294
161
285
161
86
1,156
5,731
1,023
5,141
1,038
5,436
824
5,437
862
4,856
877
5,350
14,588
3,899
2,206
11,128
96
53
-4 3
174
311
-3 5
-7
62
72
75
-2
69
1,003
2,334
1,599
1,563
1,004
2,411
1,591
1,537
1,258
2,508
1,694
1,534
907
2,281
1,642
1,389
693
2,446
1,598
1,475
1,186
2,433
1,696
1,465
farm equipment............................................
5 Loans on commercial accounts receivable. . .
6 Factored commercial accounts receivable.. . .
7 All other business cred it...................................
1Not seasonally adjusted.
12,707 13,468
A40
1.53
Domestic Financial Statistics □ M ay 1978
M O RTG AG E M ARKETS
Millions o f dollars; exceptions noted.
1977
Item
1975
1976
1977
Oct.
j
Nov.
1978
Dec.
Jan.
Feb.
Mar.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional mortgages on new homes
Terms:1
1
Purchase price (thous. dollars).......................
2
Amount o f loan (thous. dollars)...................
4
5
6
8
44.6
33.3
74.7
26.8
1.54
8.75
48.4
35.9
74.2
27.2
1.44
8.76
54.3
40.5
76.3
27.9
1.33
8.80
54.0
40.2
76.1
27.6
1.35
8.84
56.4
42.0
76.5
28.2
1.38
8.85
57.7
4 2.6
75.5
28.0
1.32
8.87
58.0
43.3
76.4
28.3
1.41
8.93
'59.9
'4 4 .0
'75.3
'27.3
'1.32
8.96
58.8
43.5
75.5
27.4
1.37
9.03
Yield (per cent per annum):
7
FHLBB series 3...................................................
9.01
9 .10
H U D series4.......................................................
8.99
8.99
9.01
8.95
9.07
9.00
9.07
9.05
9.09
9.10
9.15
9.15
9.18
9.25
9.26
9.3 0
9.19
8.52
8.82
8.17
7.96
8.04
8.78
8.16
8.78
8.19
8.91
8.29
9.11
8.56
8.64
9.29
8.60
9.26
9.37
8.99
9.11
8.73
8.98
8.74
9.05
8.85
9.16
8.94
9.19
9.17
9.32
9.31
9.49
9.35
9.61
Maturity (years).................................................
Fees and charges (per cent o f loan amount)2.
Contract rate (per cent per annum).............
SECONDARY MARKETS
Yields (per cent per annum) on—
10
11
12
GNM A securities6............................................
FNMA auctions:7
Government-underwritten loans...............
Conventional loans.......................................
Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
13
14
15
Mortgage holdings (end o f period)
Total.........................................................................
FHA-insured.......................................................
VA-guaranteed...................................................
17
18
19
20
31,824
19,732
9,573
2,519
32,904
18,916
9,212
4,776
34,370
18,457
9,315
6,597
34,123
18,602
9,287
6,234
34,192
18,535
9,267
6,389
34,370
18,457
9,315
6,597
34,756
18,500
9,398
6,858
35,408
18,664
9,599
7,146
36,030
18,759
9,727
7,543
Mortgage transactions (during period)
Purchases.................................................................
Sales..........................................................................
4,263
2
3,606
86
4,780
67
251
352
497
636
5
879
891
4
Mortgage commitments:8
Contracted (during period)................................
Outstanding (end o f period)................................
6,106
4,126
6,247
3,398
9,729
4,698
897
3,702
975
4,192
1,333
4,698
1,810
5,781
1,942
6,851
1,563
7,445
Auction o f 4-month commitments to buy—
Government-underwritten loans :
Offered9...............................................................
Accepted.............................................................
Conventional loans:
23
Offered9...............................................................
24
Accepted.............................................................
7,042.6
3,848.3
4,929.8
2,787.2
7,974.1
4,846.2
613.2
400.5
105.2
152.7
1,184.5
794.0
1,779.8
970.9
1,199.1
623.1
523.7
334.9
1,401.3
765.0
2,595.7
1,879.2
5,675.2
3,917.8
758.1
529.0
537.6
386.3
591.6
359.4
949.9
449.6
1,214.1
566.0
823.5
512.5
3,276
4,269
25
Total.........................................................................
3,266
1,395
1,824
1,618
1,424
1,406
1,881
2,651
3,163
1,978
1,860
4,987
3,276
1,395
1,881
3,163
1,382
1,782
3,044
1,381
1,663
3,402
3,372
1,388
1,985
21
22
FEDERAL HOME LOAN
MORTGAGE CORPORATION
Mortgage holdings (end o f period) 10
26
27
FH A /V A .............................................................
Conventional......................................................
28
29
Mortgage transactions (during period)
Purchases.................................................................
Sales..........................................................................
1,716
1,020
1,175
1,396
3,900
4,131
428
354
576
677
489
477
401
503
363
470
344
120
30
31
Mortgage commitments:11
Contracted (during period)................................
Outstanding (end o f period)................................
982
111
1,477
333
5,546
1,063
465
1,329
574
1,233
361
1,063
367
961
363
1,021
593
1,233
1 Weighted averages based on sample surveys o f mortgages originated
by major institutional lender groups. Compiled by the Federal Home Loan
Bank Board in cooperation with the Federal Deposit Insurance Cor
poration.
2 Includes all fees, commissions, discounts, and “points” paid (by
the borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepayment
at the end o f 10 years.
4 Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Dept, of Housing
and Urban Development.
5 Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods o f
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through
securities, assuming prepayment ini 12 years on pools o f 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7 Average gross yields (before deduction o f 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association’s
auctions o f 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. N o adjustments are made
for FNM A commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8 Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNM A’s
free market auction system, and through the FNM A -G N M A Tandem
plans.
9 Mortgage amounts offered by bidders are total bids received.
10 Includes participations as well as whole loans.
11 Includes conventional and Government-underwritten loans.
R e a l E sta te D eb t
A41
1.54 M ORTGAGE DEBT O U TSTAN D IN G
Millions of dollars, end of period
1977
Type o f holder, and type o f property
1973
1974
1975
1978
1976
Q2
Q3
Q4
1- to 4-family............................................
Multifamily................................................
Commercial...............................................
Farm...........................................................
682,321
416,211
93,132
131,725
41,253
742,512
449,371
99,976
146,877
46,288
801,537
490,761
100,601
159,298
50,877
889,327
556,557
104,516
171,223
57,031
'948,826
'600,262
'107,094
'179,578
61,892
'985,607
'627,770
'108,957
'184,815
64,080
1,021,169
652,405
111,286
191,593
65,885
1,048,380
671,050
113,137
195,899
68,294
6 Maior financial institutions.........................
Commercial banks1..................................
7
1- to 4-family........................................
8
9
Multifamily............................................
10
Commercial...........................................
Farm.......................................................
11
SOS,400
119,068
67,998
6,932
38,696
5,442
542,560
132,105
74,758
7,619
43,679
6,049
581,193
136,186
77,018
5,915
46,882
6,371
647,650
151,326
86,234
8,082
50,289
6,721
'690,340
162,778
93,393
8,003
54,038
7,344
'717,365
170,378
97,746
8,383
56,565
7,684
742,763
176,678
101,361
8,692
58,657
7,968
761,276
181,178
103,942
8,914
60,151
8,171
1
2
3
4
5
12
13
14
15
16
Mutual savings banks..............................
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
Farm.......................................................
73,230
48,811
12,343
12,012
64
74,920
49,213
12,923
12,722
62
77,249
50,025
13,792
13,373
59
81,639
53,089
14,177
14,313
60
84,076
55,000
14,602
14,422
52
86,079
56,313
14,952
14,762
52
88,104
57,637
15,304
15,110
53
89,687
58,673
15,579
15,381
54
17
18
19
20
Savings and loan associations.................
1- to 4-family........................................
Multifamily...........................................
Commercial...........................................
231,733
187,078
22,779
21,876
249,301
200,987
23,808
24,506
278,590
223,903
25,547
29,140
323,130
260,895
28,436
33,799
'350,632
'284,433
'30,505
'35,694
'366,838
'298,459
'31,585
'36,794
381,216
310,729
32,518
37,969
392,438
319,876
33,475
39,087
21
22
23
24
25
1- to 4-family........................................
Multifamily...........................................
Commercial...........................................
Farm.......................................................
81,369
20,426
18,451
36,496
5,996
86,234
19,026
19,625
41,256
6,327
89,168
17,590
19,629
45,196
6,753
91,555
16,088
19,178
48,864
7,425
92,854
15,418
18,891
50,405
8,140
94,070
15,022
18,831
51,742
8,475
96,765
14,727
18,807
54,388
8,843
97,973
14,427
18,857
55,546
9,143
26 Federal and related agencies......................
Government National Mortgage Assn. ..
27
1- to 4-family........................................
28
29
Multifamily............................................
46,721
4,029
1,455
2,574
58,320
4,846
2,248
2,598
66,891
7,438
4,128
2,710
66,753
4,241
1,970
2,271
68,338
3,912
1,654
2,258
69,068
3,599
1,522
2,077
70,006
3,660
1,548
2,112
71,849
3,342
1,414
1,928
30
31
32
33
34
Farmers Home Admin..............................
1- to 4-family........................................
1,366
743
29
218
376
1,432
759
167
156
350
1,109
208
215
190
496
1,064
454
218
72
320
1,043
410
97
126
410
1,292
548
192
142
410
1,353
626
275
149
303
1,413
654
287
156
316
35
36
37
Federal Housing and Veterans Admin.. .
1- to 4-family........................................
3,476
2,013
1,463
4,015
2,009
2,006
4,970
1,990
2,980
5,150
1,676
3,474
5,259
1,711
3,548
5,130
1,566
3,564
5,212
1,627
3,585
5,212
1,578
3,634
38
39
40
Federal National Mortgage Assn. . . . . .
24,175
20,370
3,805
29,578
23,778
5,800
31,824
25,813
6,011
32,904
26,934
5,970
33,918
27,933
5,985
34,148
28,178
5,970
34,369
28,504
5,865
36,029
30,208
5,821
Commercial...........................................
Multifamily............................................
41
42
43
1- to 4-family........................................
11,071
123
10,948
13,863
406
13,457
16,563
549
16,014
19,125
601
18,524
20,818
628
20,190
21,523
649
20,874
22,136
670
21,466
22,925
691
22,234
44
45
46
Federal Home Loan Mortgage C orp....
1- to 4-family........................................
Multifamily............................................
2,604
1,446
158
4,586
4,217
369
4,987
4,588
399
4,269
3,889
380
3,388
2,901
487
3,376
2,818
558
3,276
2,738
538
2,928
2,441
481
47 Mortgage pools or trusts2...........................
Government National Mortgage Assn...
48
1- to 4-family........................................
49
Multifamily............................................
50
18,040
7,890
7,561
329
23,799
11,769
11,249
520
34,138
18,257
17,538
719
49,801
30,572
29,583
989
58,748
36,573
35,467
1,106
64,667
41,089
39,865
1,224
70,289
44,896
43,555
1,341
73,557
46,357
44,906
1,451
51
52
53
Federal Home Loan Mortgage Corp...
1- to 4-family........................................
Multifamily............................................
76,6
617
149
757
608
149
1,598
1,349
249
2,671
2,282
389
4,460
3,938
522
5,332
4,642
690
6,610
5,621
989
7,917
6,733
1,184
54
55
56
57
58
Farmers Home Admin..............................
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
Farm.......................................................
9,384
5,458
138
1 ,124
2,664
11,273
6,782
116
1,473
2,902
14,283
9,194
295
1,948
2,846
16,558
10,219
532
2,440
3,367
17,715
10,814
111
2,680
3,444
18,426
11,127
768
2,824
3,527
18,783
11,379
759
2,945
3,682
19,283
11,700
780
3,024
3,779
59 Individuals and others3 ................................
1- to 4-family........................................
60
61
Multifamily............................................
62
Commercial...........................................
Farm.......................................................
63
112,160
51 ,112
23,982
21 ,303
15,763
117,833
53,331
24,276
23,085
17,141
119,315
56,268
22,140
22,569
18,338
125,123
62,643
20,420
21,446
20,614
131,400
66,592
20,313
22,213
22,312
'134,507
'69,315
'20,163
'21,986
'23,043
138,111
71,665
20,501
22,375
23,570
141,698
73,801
20,746
22,554
24,597
1 Includes loans held by nondeposit trust companies but not bank trust
departments.
2 Outstanding principal balances o f mortgages backing securities in
sured or guaranteed by the agency indicated.
3 Other holders include mortgage companies, real estate investment
trusts, State and local credit agencies, State and local retirement funds,
noninsured pension funds, credit unions, and U.S. agencies for which
amounts are small or separate data are not readily available.
N ote.—Based on data from various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal Home Loan Bank Board and the Dept, o f Commerce.
Separation o f nonfarm mortgage debt by type o f property, if not re
ported directly, and interpolations and extrapolations where required, are
estimated mainly by Federal Reserve. Multifamily debt refers to loans on
structures o f 5 or more units.
A42
1.55
Domestic Financial Statistics □ M ay 1978
C O N SU M ER IN STA LM EN T C R E D IT
Total Outstanding, and Net Change
Millions o f dollars
1977
Holder, and type o f credit
1975
1976
1978
1977
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Amounts outstanding (end of period)
1
164,955
185,489
216,572
207,294
209,141
212,074
216,572
215,925
216,297
219,203
78,667
35,994
25,666
18,002
6,626
89,511
38,639
30,546
19,052
7,741
105,291
44,015
37,036
21,082
9,149
101,564
42,333
35,779
18,725
8,894
102,504
42,704
35,993
18,961
8,978
103,469
43,322
36,488
19,629
9,166
105,291
44,015
37,036
21,082
9,149
105,466
43,970
36,851
20,525
9,114
105,663
44,107
37,217
20,060
9,250
107,166
44,486
38,185
19,920
9,446
55,879
31,553
18,353
13,200
11,155
12,741
430
66,116
37,984
21,176
16,808
12,489
15,163
480
79,352
46,119
25,370
20,749
14,263
18,385
585
77,207
44,933
24,717
20,216
13,930
17,761
584
77,845
45,399
24,972
20,427
13,998
17,867
581
78,757
45,845
25,228
20,616
14,205
18,113
594
79,352
46,119
25,370
20,749
14,263
18,385
585
79,376
46,247
25,476
20,'771
14,260
18,293
576
79,984
46,547
25,696
20,851
14,374
18,475
588
81,666
47,534
26,327
21,207
14,577
18,955
600
By holder:
2
3
4
5
6
By type o f credit:
7
8
9
10
11
12
13
Indirect........................................
14
15
16
Mobile homes......................................
Commercial banks........................
Finance companies.......................
14,423
8,649
3,451
14,572
8,734
3,273
15,014
8,862
3,109
14,880
8,828
3,119
14,929
8,839
3,116
14,999
8,856
3,123
15,014
8,862
3,109
14,978
8,819
3,115
14,973
8,807
3,098
15,062
8,845
3,085
17
18
Commercial banks........................
9,405
4,965
10,990
5,554
12,952
6,473
12,532
6,265
12,703
6,377
12,879
6,447
12,952
6,473
12,904
6,445
12,968
6,436
13,162
6,479
19
20
Revolving credit:
Bank credit cards..........................
Bank check credit.........................
9,501
2,810
11,351
3,041
14,262
3,724
12,651
3,504
12,829
3,551
13,096
3,601
14,262
3,724
14,369
3,776
14,174
3,822
14,142
3,844
21
22
23
24
25
26
27
28
Commercial banks, total.............
Personal loans............................
Finance companies, total.............
Personal loans............................
Credit unions..................................
Retailers..........................................
Others...............................................
72,937
21,188
14,629
21,238
17,263
10,754
18,002
1,755
79,418
22,847
15,669
22,749
18,554
12,799
19,052
1,971
91,269
25,850
17,740
26,498
21,302
15,518
21,082
2,321
86,519
25,383
17,373
25,143
20,256
14,991
18,725
2,277
87,283
25,510
17,452
25,448
20,498
15,081
18,961
2,283
88,743
25,626
17,555
25,850
20,852
15,289
19,629
2,350
91,269
25,850
17,740
26,498
21,302
15,518
21,082
2,321
90,522
25,809
17,708
26,452
21,248
15,440
20,525
2,296
90,376
25,877
17,769
26,489
21,283
15,594
20,060
2,356
91,327
26,322
18,002
26,675
21,416
15,999
19,920
2,411
Net change (during period) 3
29 Total.........................................................
7,504
20,533
31,090
2,351
2,626
2,853
2,736
2,424
2,661
4,068
30
31
32
33
34
By holder:
Commercial banks............................
Finance companies............................
Credit unions......................................
Retailers i ............................................
Others 2................................................
2,821
-9 0
3,771
69
933
10,845
2,644
4,880
1,050
1,115
15,779
5,376
6,490
2,032
1,413
1,228
378
458
144
143
1,315
487
469
280
75
1,384
543
566
184
111
1,611
500
641
-1 2
-3
1,115
460
495
309
44
1,280
418
603
202
158
2,021
662
836
367
182
35
36
37
38
39
40
41
By type of credit:
Automobile..........................................
Commercial banks........................
Indirect........................................
D irect..........................................
Finance companies.......................
Credit unions..................................
Other................................................
3,007
559
-3 3 4
894
532
1,872
44
10,238
6,431
2,823
3,608
1,334
2,422
50
13,235
8,135
4,194
3,941
1,774
3,222
105
1,105
714
466
248
128
228
34
850
587
295
292
52
222
-1 1
1,241
725
444
281
242
263
10
1,297
835
486
349
111
328
7
1,185
637
407
230
247
244
56
1,104
599
389
210
201
300
4
1,522
882
564
318
238
406
-4
42
43
44
Mobile homes......................................
Commercial banks........................
Finance companies.......................
-1 9 5
-3 2 3
-7 3
150
85
-1 1 1
441
128
-1 6 4
32
10
-3
44
15
-1 1
74
23
4
76
60
-8
52
2
36
23
2
-9
108
46
2
45
46
Home improvement............................
Commercial banks........................
881
271
1,585
588
1,967
920
143
11
201
115
211
99
173
110
105
70
171
69
217
74
47
48
Revolving credit:
Bank credit cards..........................
Bank check credit.........................
1,220
14
1,850
231
2,911
683
219
49
287
57
243
27
250
46
160
65
285
87
448
120
49
50
51
52
53
54
55
56
All other...............................................
Commercial banks, total.............
Personal loans...........................
Finance companies, total.............
Personal loans............................
Credit unions..................................
Retailers..........................................
Others...............................................
2,577
1,080
858
-3 4 8
279
1,580
69
196
6,479
1,659
1,040
1,509
1,290
2,045
1,050
211
11,853
3,003
2,070
3,749
2,748
2,719
2,032
350
743
99
56
251
223
197
144
52
1,188
254
142
448
353
204
280
2
1,057
267
183
293
235
252
184
61
895
310
235
378
254
252
-1 2
-3 3
857
180
81
111
162
205
309
-1 5
991
238
167
223
183
252
202
76
1,653
451
263
419
309
358
367
58
1 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
N ote.—Total consumer noninstalment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $44.2 billion at the end
of 1977, $38.7 billion at the end o f 1976, $35.7 billion at the end o f 1975,
and $33.8 billion at the end o f 1974. Comparable data for Dec. 31, 1978,
will be published in the February 1979 Bulletin.
Consumer D eb t
A43
1.56 CONSUMER INSTALM ENT CREDIT Extensions and Liquidations
Millions of dollars
1977
Holder, and type o f credit
1975
1976
1978
1977
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Extensions 3
1
By holder:
2
3
4
5
6
Credit unions......................................
By type o f credit:
164,169
193,328
225,645
19,164
19,787
19,680
20,138
19,586
20,179
21,595
77,312
31,173
24,096
27,049
4,539
94,220
36,028
28,587
29,188
5,305
110,777
41,770
33,592
33,202
6,303
9,442
3,514
2,773
2,860
575
9,802
3,653
2,858
2,961
512
9,688
3,602
2,920
2,857
612
10,226
3,743
3,093
2,647
428
9,625
3,575
2,820
3,102
464
9,905
3,691
3,028
2,976
579
10,608
3,914
3,309
3,148
616
62,988
36,585
19,882
16,704
11,209
14,675
518
72,888
42,570
22,904
19,666
12,635
17,041
642
6,109
3,640
2,028
1,612
1,013
1,376
80
6,083
3,642
1,976
1,666
989
1,414
38
6,330
3,717
2,076
1,641
1,097
1,458
58
6,721
3,941
2,153
1,788
1,143
1,581
55
6,263
3,650
2,026
1,624
1,088
1,421
105
6,400
3,700
2,065
1,635
1,080
1,565
55
6,822
3,924
2,173
1,751
1,173
1,679
46
7
8
9
10
11
12
13
Others..............................................
51,413
28,573
15,766
12,807
9,674
12,683
483
14
15
16
Commercial banks........................
Finance companies.......................
4,323
2,622
764
4,841
3,071
690
5,244
3,153
615
424
261
51
457
270
61
464
280
54
460
300
60
449
250
101
406
236
62
502
284
74
17
18
Commercial banks........................
5,556
2,722
6,736
3,245
8,066
3,968
679
340
718
373
761
370
722
384
618
327
710
338
770
352
20,428
4,024
25,862
4,783
31,761
5,886
2,847
485
2,973
487
2,828
492
2,973
531
2,948
556
3,143
535
3,231
608
78,425
18,944
13,386
20,657
16,944
10,134
27,049
1,642
88,117
20,673
14,480
24,087
19,579
12,340
29,188
1,830
101,754
23,439
16,828
28,349
22,323
14,604
33,202
2,160
8,620
1,870
1,346
2,440
1,938
1,240
2,860
211
9,067
2,056
1,463
2,596
2,044
1,282
2,961
172
8,804
2,001
1,434
2,441
1,914
1,285
2,857
221
8,731
2,096
1,518
2,530
1,975
1,326
2,647
131
8,751
1,893
1,338
2,380
1,851
1,236
3,102
138
8,985
1,953
1,405
2,541
1,989
1,288
2,976
227
9,662
2,209
1,537
2,659
2,105
1,429
3,148
217
19
20
21
22
23
24
25
26
27
28
Indirect........................................
Finance companies.......................
Revolving credit:
Bank credit cards..........................
Personal loans............................
Credit unions.............................
Others...............................................
Liquidations 3
156,665
172,795
194,533
16,814
17,160
16,826
17,402
17,162
17,518
17,527
74,491
31,263
20,325
26,980
3,606
83,376
33,384
23,707
28,138
4,191
94,998
36,372
27,103
31,170
4,890
8,214
3,135
2,316
2,716
432
8,487
3,166
2,389
2,681
437
8,305
3,059
2,354
2,673
435
8,615
3,244
2,452
2,659
432
8,509
3,114
2,325
2,793
420
8,625
3,273
2,425
2,774
421
8,587
3,252
2,473
2,781
434
Finance companies.......................
Credit unions..................................
Others..............................................
48,406
28,014
16,101
11,913
9,142
10,811
439
52,750
30,154
17,059
13,095
9,875
12,253
468
59,610
34,435
18,710
15,726
10,819
13,819
536
5,005
2,926
1,562
1,364
885
1,148
46
5,234
3,055
1,681
1,374
937
1,193
49
5,089
2,991
1,632
1,360
855
1,195
48
5,424
3,106
1,667
1,439
1,017
1,253
48
5,078
3,013
1,619
1,394
841
1,177
48
5,296
3,101
1,676
1,425
879
1,265
51
5,300
3,042
1,609
1,433
935
1,273
50
42
43
44
Mobile homes......................................
Commercial banks........................
Finance companies.......................
4,517
2,944
837
4,691
2,986
867
4,793
3,025
806
392
251
54
413
255
72
390
257
50
384
240
68
398
248
65
383
234
71
394
238
72
45
46
Commercial banks........................
4,675
2,451
5,151
2,657
6,098
3,048
536
263
517
257
550
272
549
274
514
257
539
269
553
278
19,208
4,010
24,012
4,552
28,851
5,202
2,567
436
2,687
430
2,585
466
2,723
485
2,788
491
2,858
448
2,783
488
75,849
17,864
12,528
21,005
16,665
8,554
26,980
1,446
81,638
19,014
13,439
22,578
18,289
10,295
28,138
1,613
89,977
20,436
14,757
24,676
19,596
11,884
31,170
1,811
7,877
1,771
1,291
2,189
1,714
1,043
2,716
158
7,880
1,802
1,321
2,148
1,692
1,078
2,681
170
7,747
1,734
1,250
2,148
1,678
1,033
2,673
159
7,836
1,786
1,284
2,152
1,722
1,075
2,659
165
7,894
1,713
1,258
2,203
1,688
1,031
2,793
153
7,994
1,715
1,238
2,318
1,806
1,036
2,774
151
8,009
1,758
1,274
2,240
1,796
1,071
2,781
159
29 Total.........................................................
30
31
32
33
34
By holder:
Commercial banks............................
Finance companies...........................
Credit unions......................................
Others2.................................................
By type o f credit:
35
36
37
38
39
40
41
47
48
49
50
51
52
53
54
55
56
Commercial banks........................
Revolving credit:
Bank credit cards..........................
Commercial banks, to ta l.............
Personal loans............................
Credit unions..................................
Others...............................................
1 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers,
3 Monthly figures are seasonally adjusted.
A44
1.57
Domestic Financial Statistics □ M ay 1978
FU N D S RAISED IN U.S. C R E D IT M ARKETS
Billions o f dollars; half-year data are at seasonally adjusted annual rates.
1975
1974
1975
1976
1976
1977
1977
Transaction category, or sector
HI
H2
HI
H2
HI
H2
Nonfinancial sectors
1 Total funds raised...................................................
2
Excluding equities...............................................
By sector and instrument:
3
U.S. Govt..............................................................
4
5
6
Corporate equities.........................................
7
Debt instruments...........................................
8
9
Private domestic nonfinancial sectors.........
10
Debt instruments........................................
11
12
Debt capital instruments.......................
State and local obligations..............
13
14
Corporate bonds................................
Mortgages:
H om e...............................................
15
Multifamily residential.................
16
Commercial....................................
17
18
Farm.................................................
19
Other debt instruments..........................
Consumer credit................................
20
Bank loans n.e.c.................................
21
Open market paper...........................
22
23
189.6
185.8
205.6
195.5
268.3
257.8
335.9
327.4
180.8
170.3
230.4
220.8
254.5
241.1
282.1
274.4
306.2
297.3
365.6
357.5
1
2
11.8
12.0
-.2
177.8
3.8
174.0
162.4
4.1
158.3
9 8 .7
17.1
19.7
8 5.4
85.8
-.4
120.2
10.0
110.1
107.0
9 .9
97.1
9 5.8
13.6
27.2
69.0
69.1
-.1
199.2
10.5
188.8
179.0
10.5
168.4
122.7
15.1
22.8
56.8
57.6
-.9
279.1
8.5
270.6
266.9
8.1
258.8
172.8
28.1
18.0
7 9.6
80.4
-.8
101.1
10.5
90.7
93.1
10.3
82.8
93.8
12.3
33.4
91.2
91.3
-.1
139.2
9 .6
129.6
120.9
9.5
111.4
97.8
14.9
21.1
73.1
73.0
.1
181.4
13.3
168.0
166.2
13.3
152.9
111.7
14.7
20.4
64.9
65.3
- .3
217.1
7 .6
209.5
191.7
7.7
184.0
133.7
15.5
25.3
4 0.3
40.9
- .6
265.9
8.9
257.0
260.9
8.2
252.7
159.3
28.3
14.4
7 3 .2
74 .4
-1 .2
2 92.4
8.1
284.3
272.9
8 .0
265.0
186.2
27.9
21.6
3
4
5
6
7
8
9
10
11
12
13
14
34.8
6 .9
15.1
5 .0
5 9.6
10.2
29.1
6 .6
13.7
39.5
*
11.0
4 .6
1.3
9 .4
- 1 4 .5
- 2 .6
9 .0
63.6
1.6
13.4
6.1
45.7
23.6
3.7
4 .0
14.4
90.0
7 .0
20.9
8.7
86.1
35.6
30.0
2.5
18.0
33.4
.4
9 .4
5.1
- 1 1 .0
2 .2
-2 0 .9
- 1 .4
9 .0
45.6
-.4
12.6
4 .0
13.6
16.6
-8 .2
-3 .8
9 .0
57.1
.6
13.9
5 .0
41.2
22.9
-.3
6 .4
12.2
70.2
2 .6
12.9
7 .3
50.3
24.2
7 .8
1.6
16.7
85.5
5.3
16.7
9 .0
93.4
35.5
37.4
4 .4
16.0
94.5
8.8
25.0
8.5
78.7
35.7
22.5
.6
19.9
15
16
17
18
19
20
21
22
23
107.0
11.2
48.6
8.7
2 .0
36.6
179.0
14.6
89.8
11.0
5.2
58.3
266.9
24.8
130.9
15.1
10.8
85.3
93.1
10.0
37.3
8.7
-1 .1
38.3
120.9
12.3
59.9
8.8
5.1
34.8
166.2
13.0
83.9
10.6
2.7
56.1
191.7
16.3
95.6
11.6
7 .6
60.5
260.9
21.7
129.6
16.6
10.9
82.1
272.9
27.9
132.2
13.6
10.7
88.4
24
25
26
27
28
29
13.2
.1
13.0
6 .2
3.7
.3
2.8
20.3
*
20.3
8.4
6.7
1.9
3.3
12.2
.4
11.8
5.0
.6
2 .8
3.4
8 .0
.1
7.9
5.7
-.4
-.8
3.4
18.3
.1
18.2
6 .8
7 .8
1.4
2 .2
15.2
*
15.1
7 .3
3.4
1.5
2 .9
25.4
- .1
25.5
9.5
10.0
2 .4
3.6
5.0
.6
4 .3
4.3
-5 .8
2.7
3.1
19.5
.2
19.3
5.7
7 .0
3.0
3.6
30
31
32
33
34
35
36
24
25
26
27
28
29
By borrowing sector...................................
State and local governments...............
Farm.........................................................
Nonfarm noncorporate........................
Corporate.................................................
162.4
16.2
49.2
7 .9
7 .4
81.8
30
31
32
33
34
35
36
Foreign.............................................................
Corporate equities.....................................
Debt instruments........................................
Bonds.......................................................
Bank loans n.e.c.....................................
Open market paper...............................
U.S. Govt, loans....................................
15.4
-.2
15.7
2.1
4.7
7 .3
1.6
Financial sectors
39 .4
14.0
28.6
62.7
15.1
12.8
27.8
29.4
63.1
62.3 37
Corporate equities.........................................
Debt instruments.............................................
Corporate bonds........................................
Mortgages...................................................
Bank loans n.e.c.........................................
Open market paper and Rp’s .................
Loans from FHLB’s ..................................
23.1
16.6
5.8
.7
16.3
.3
16.0
2.1
- 1 .3
4 .6
3.9
6.7
13.5
2 .3
10.3
.9
.4
*
.4
2.9
2.3
- 3 .6
2 .8
- 4 .0
18.6
3.3
15.7
-.4
10.0
.1
9 .2
5.8
2.1
-3 .7
7.1
-2 .0
26.1
6.9
20.4
-1 .2
36.5
-.1
36 .6
8.7
3.1
-.2
20.8
4.3
14.5
1.9
11.5
1.1
.6
.1
.6
2.3
1.4
-4 .7
8.2
-6 .6
12.6
2 .8
9 .2
.6
.2
-.1
.3
3.5
3.2
- 2 .5
-2 .6
- 1 .3
18.6
4.5
14.2
*
9.1
-.7
9 .8
7 .0
1.4
-3 .0
6.1
-1 .6
18.6
2.1
17.2
-.7
10.8
2 .2
8 .6
4.5
2.8
- 4 .4
8.1
-2 .4
25.7
10.1
17.9
-2 .3
37.4
-.3
37 .7
8.1
3.1
-2 .7
25.8
3.5
2 6 .6 38
3.7 39
22.9 40
............... 41
35 .7 42
.1 43
35 .6 44
9 .2 45
3.1 46
2 .3 47
15.7 48
5 .2 49
By sector:
Sponsored credit agencies................................
Mortgage pools...................................................
Private financial sectors.....................................
Commercial banks.........................................
Bank affiliates.................................................
Savings and loan associations.....................
Other insurance companies..........................
Finance companies........................................
REIT’s ..............................................................
Open-end investment companies...............
Money market funds....................................
17.3
5.8
16.3
-1 .1
3.5
6.3
.9
4.5
.6
-.7
2 .4
3.2
10.3
.4
1.7
.3
-2 .2
1.0
.5
-2 .0
-.1
1.3
2.9
15.7
10.0
7 .4
- .8
*
1.0
6 .4
-2 .8
-1 .0
-.3
5.7
20.4
36.5
11.1
1.3
11.9
1.0
15.1
- 2 .4
- 1 .5
.1
3.0
11.5
.6
5.7
.9
- 6 .8
.9
- 1 .4
-2 .0
.7
2 .6
3.4
9 .2
.2
-2 .3
-.3
2.3
1.0
2 .4
-1 .9
-.9
*
4.5
14.2
9.1
9 .0
-1 .3
.5
1.0
5.7
-2 .5
-2 .5
-.7
1.4
17.2
10.8
5.9
- .3
-.5
1.0
7.1
-3 .0
.5
.2
7 .8
17.9
37.4
14.7
1.3
11.0
1.0
14.3
-2 .9
-1 .4
-.5
3.7
22.9
3 5 .7
7 .5
1.2
12.8
1.0
15.9
-1 .8
-1 .6
.8
50
51
52
53
54
55
56
57
58
59
60
282.2
-2 .5
15.1
269.6
91.9
14.7
34.7
77.9
22.9
.1
14.0
13.4
311.4
.5
9.3
301.6
84.3
15.5
39.3
95.7
2 4.2
13.4
12.0
17.2
369.2
-1 .4
10.0
360.7
68.4
28.3
26.8
119.5
35.5
28.9
32.9
20.2
427.9
-1 .6
9 .8
419.7
99.9
27.9
36.5
139.8
35.7
31.8
19.3
28.7
61
62
63
64
65
66
67
68
69
70
71
72
37 Total funds raised...................................................
By instrument:
U.S. Govt, related...............................................
Sponsored credit agency securities.............
Mortgage pool securities..............................
Loans from U.S. Govt..................................
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
All sectors
61
62
63
64
65
66
67
68
69
70
71
72
Other corporate equities..................................
Debt instruments................. ...............................
U.S. Govt, securities.....................................
Corporate and foreign bonds......................
Mortgages........................................................
Consumer credit.............................................
Bank loans n.e.c..............................................
Other loans......................................................
229.0
-.7
4 .8
224.9
34.3
17.1
23.9
60.5
10.2
38.4
17.8
22 J
219.5
-.1
10.2
209.5
98.2
13.6
36.3
57.2
9 .4
-1 4 .4
.5
8.7
296.8
-1 .0
12.2
285.6
88.1
15.1
37.0
86.8
23.6
6.7
13.0
15.3
398.6
-1 .5
9 .9
390.2
84.2
28.1
31.7
129.7
35.6
30.4
26.1
24.5
195.9
.7
9 .8
185.4
93.1
12.3
41.3
49.5
2 .2
- 2 5 .9
6.1
6 .9
243.2
-.9
10.5
233.6
103.2
14.9
31.3
65.0
16.6
-2 .9
- 5 .0
10.5
A45
Flow o f Funds
1.58 DIRECT AN D IND IR EC T SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-year data are at seasonally adjusted annual rates.
1975
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors........................................
By public agencies and foreign:
4
Residential mortgages.......................................
6
Other loans and securities................................
Totals advanced, by sector
U.S. Govt.............................................................
7
9
Monetary authorities........................................
10
Foreign..................................................................
11 Agency borrowing not included in line 1 .........
Private domestic funds advanced
12 Total net advances...................................................
14
State and local obligations..............................
17
18
Other mortgages and loans................... ..........
Less: FHLB advances......................................
Private financial intermediation
19 Credit market funds advanced by private
1974
1975
1976
1977
HI
1976
H2
HI
1977
H2
HI
H2
185.8
195.5
257.8
327.4
170.3
220.8
241.1
274.4
297.3
357.5
1
52 .7
11.9
14.7
6.7
19.5
44.3
22.5
16.2
- 4 .0
9 .5
54 .6
26.8
12.8
- 2 .0
16.9
84.6
39.7
20.4
4.3
20.2
55.0
33.4
16.9
- 6 .6
11.3
33 .6
11.6
15.5
-1 .3
7 .8
53.2
27.1
12.1
- 1 .6
15.6
56 .0
26.5
13.5
-2 .4
18.3
73.6
30.6
20.1
3.5
19.5
9 5 .5
48.8
20.8
5 .2
20.8
2
3
4
5
6
9 .8
25.6
6 .2
11.2
23.1
15.1
14.5
8.5
6.1
13.5
8.9
20.6
9 .8
15.2
18.6
10.9
26.8
7.1
39.7
26.1
15.9
16.5
7 .6
15.0
14.5
14.3
12.6
9.5
-2 .7
12.6
6 .4
20.7
14.5
11.6
18.6
11.4
20.6
5.2
18.8
18.6
6 .0
27.5
11.6
28.5
25.7
15.8 7
26.1 8
2.7 9
50.9 10
26.6 11
156.1
2 2.4
17.1
20.9
26.9
7 5 .4
6.7
164.8
75.7
13.6
32.8
23.2
15.6
- 4 .0
221.8
61.3
15.1
30.3
5 2.4
60.8
- 2 .0
269.0
44.5
28.1
19.2
76.5
105.0
4.3
129.8
59.7
12.3
38.8
16.7
- 4 .3
-6 .6
199.7
91.6
14.9
26.8
29.6
35.5
- 1 .3
206.6
64.8
14.7
26.8
45.5
53.2
-1 .6
237.0
57.8
15.5
33.9
59.2
68.3
- 2 .4
249.4
37.9
28.3
15.6
70.7
100.3
3.5
288.6
51.2
27.9
22.7
82.4
109.7
5 .2
12
13
14
15
16
17
18
19
20
21
22
23
20
21
22
23
Commercial banking.........................................
Savings institutions............................................
Insurance and pension funds..........................
Other finance.......................................................
126.3
64.6
26.9
30.0
4.7
119.9
27.6
52.0
41.5
- 1 .1
187.2
58.0
71.7
47.6
9 .9
242.7
79.8
86.4
61.1
15.5
99.8
14.4
48.5
38.3
- 1 .4
140.0
40.7
55.4
44.7
-.7
167.6
44.5
71.8
47.8
3.4
206.8
71.5
71.7
47.3
16.3
235.5
80.6
84.7
58.2
11.9
250.0
79.1
88.0
63.9
19.0
26
Credit market borrowing....................... ..........
126.3
69.4
16.0
119.9
90.9
.4
187.2
122.8
9 .2
242.7
135.4
36.6
99.8
90.3
.6
140.0
91.5
.3
167.6
106.1
9 .8
206.8
139.5
8.6
235.5
122.9
37.7
250.0 24
147.8 25
35.6 26
28
29
30
Foreign funds.................................................
Treasury balances..........................................
Insurance and pension reserves..................
40 .9
14.5
- 5 .1
26 .0
5 .4
28 .6
-.4
-1 .7
29.0
1.7
55.1
3.1
-.1
35.8
16.4
70.7
1.3
4 .2
48.6
16.6
9 .0
-5 .6
- 3 .5
26.4
- 8 .3
48.2
4 .8
.1
31.5
11.7
51 .7
-2 .6
2.9
35.1
16.2
58 .7
8.8
-3 .1
36.5
16.6
74.9
-2 .9
-1 .1
47.2
31.7
6 6 .6
5.5
9 .5
50.0
1.5
27
28
29
30
31
45.3
22.2
6 .3
8 .2
3.1
5.5
43.8
19.4
4.7
4 .0
4 .0
11.8
62.9
23.8
5.6
.2
16.6
16.6
30.6
6 .0
7 .2
10.8
1.5
5.1
60.0
38.4
5 .5
5 .6
4.7
6 .0
48.8
22.6
3.9
4.9
6.7
10.8
38.8
16.1
5.5
3.1
1.3
12.8
51.6
11.3
7 .0
-1 .9
18.8
16.4
74.2
36.3
4 .3
2 .2
14.4
16.9
32
33
34
35
36
37
160.0
135.1
24.2
38.9
72 .0
38
39
40
41
42
Private domestic nonfinancial investors
35
36
37
Corporate and foreign bonds..........................
Commercial paper.............................................
Other.....................................................................
45 .9
18.2
10.0
4.7
4 .8
8.2
40
41
42
Large negotiable CD’s ..................................
Other at commercial banks.........................
At savings institutions..................................
75.7
66.1
18.8
26.1
21.8
97.1
84.8
-1 4 .0
39.4
59.4
130.1
113.0
-1 4 .2
58.1
69.1
143.6
120.9
10.8
40.4
69.7
96.0
73.0
-2 7 .8
39.3
61.5
98.2
96.5
- .2
39.4
57.4
111.0
98.3
-1 8 .0
50.2
66.1
149.3
127.6
-1 0 .4
66.0
72.1
127.2
106.7
-2 .7
41.9
6 7 .4
44
Demand deposits...........................................
8 .9
2.6
6.3
12.3
6.1
6 .2
17.2
9 .9
7 .3
22.7
14.5
8.2
23.0
17.3
5.7
1 .7
-5 .0
6.7
12.7
7 .8
4.9
21.6
11.9
9 .8
20.5
16.2
4 .3
25 .0 43
12.8 44
12.2 45
121.5
142.4
174.0
206.5
126.6
158.2
159.8
188.1
178.8
234.2 46
28.4
80.9
25.7
22.7
72.8
5 .8
21.2
84.4
18.3
25.8
90.2
41.0
32.3
7 6.9
9 .4
15.2
70.1
2.1
22.1
81.1
9 .0
20.4
87.3
27.6
24.8
94.4
25.6
26.7 47
86.6 48
56.4 49
4 .1
-.7
4 .8
5 .8
-1 .6
10.0
-.1
10.2
9 .4
.6
11.2
-1 .0
12.2
12.3
-1 .1
8.4
-1 .5
9.9
6.7
1.6
10.5
.7
9.8
10.7
-.2
9 .5
-.9
10.5
8.1
1.4
12.6
- 2 .5
15.1
12.6
*
9 .8
.5
9 .3
12.0
-2 .2
8.5
-1 .4
10.0
4 .4
4.1
46 Total of credit market instruments, deposits
and currency....................................................
47
48
49
Public support rate (in per cent)............ ........
Private financial intermediation (in per cent)
Total foreign funds............................................
Memo: Corporate equities not included above
51
Mutual fund shares...........................................
53 Acquisitions by financial institutions.................
N otes
1.
2.
6.
11.
12.
17.
25.
26.
28.
by line no.
Line 2 o f p. A-44.
Sum o f lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by Federally sponsored credit agencies,
and net issues o f Federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum o f lines 27, 32, 39, and 44.
Includes farm and commercial mortgages.
Lines 39 plus 44.
Excludes equity issues and investment company shares. Includes
line 18.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities o f foreign banking agencies to foreign af
filiates.
8 .2
-1 .6
9 .8
9.1
-.9
50
51
52
53
54
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.
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.
50. 52. Includes issues by financial institutions.
N ote.—Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow o f Funds Section, Division o f Research and Statistics, Board
o f Governors o f the Federal Reserve System, Washington, D.C. 20551.
A46
Domestic Nonfinancial Statistics □ M ay 1978
2.10 N O N FIN AN C IAL BUSINESS A C T IV IT Y
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1977
1975
Measure
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
A pr.6
1 Industrial production..................................
117.8
129.8
137.0
138.5
138.9
139.3
139.7
138.8
139.2
141.0
142.5
2
3
4
5
6
7
Market groupings:
Products, total.....................................
Final, total......................................
Consumer goods........................
Equipment...................................
Intermediate....................................
Materials..............................................
119.3
118.2
124.0
110.2
123.1
115.5
129.3
127.2
136.2
114.6
137.2
130.6
137.1
134.9
143.4
123.2
145.1
136.9
138.8
136.8
144.9
125.6
146.5
137.9
138.9
136.5
144.9
125.0
147.8
138.9
139.5
137.0
145.2
125.8
148.4
139.0
140.3
137.6
145.8
126.2
150.4
138.8
138.5
134.9
141.8
125.4
151.6
139.2
139.6
136.4
143.7
126.3
151.5
138.6
141.5
138.8
146.1
128.8
151.8
140.1
142.6
140.0
147.3
129.9
152.6
142.4
8
Industry groupings:
Manufacturing....................................
116.3
129.5
137. 1
139.0
139.4
139.9
140.5
138.7
139.3
141.3
142.7
Capacity utilization (per cent)1 in—
9
Manufacturing........................................
10 Industrial materials industries.............
73.6
73.6
80.2
80.4
82.4
81.9
82.9
82.0
82.9
82.4
82.9
82.3
83.0
81.9
81.7
81.9
81.8
81.4
82.7
82.0
84.6
83.2
11 Construction contracts2 ............................
162.3
190.2
253.0
279.0
244.0
258.0
299.0
270.0
266.0
254.0
12 Nonagricultural employment, total3........
13
Goods-producing, total.........................
14
Manufacturing, total.........................
15
Manufacturing, production-worker
16
Service-producing...................................
117.0
97.1
9 4.3
9 1.3
127.8
120.6
100.3
97.5
95.2
131.7
124.7
104.1
100.6
98.3
136.0
125.7
104.7
100.8
98.5
137.1
125.9
105.0
101.1
98.8
137.3
126.4
105.4
101.4
99.1
137.9
126.7
105.4
102.2
100.0
138.3
127.1
105.7
102.7
100.7
138.8
127.6
106.3
103.2
101.3
139.3
128.4
107.1
103.7
101.7
140.0
17 Personal income, total4..............................
18
Wages and salary disbursements........
19
Manufacturing........................................
200.0
188.5
157.3
220.7
208.6
177.7
245.1
231.5
199.3
249.2
235.2
202.2
252.8
239. 1
205.3
255.7
240.9
206.9
259.0
242.2
209.7
259.4
244.7
211.3
260.9
246.8
214.5
263.7
250.5
219.4
20 Disposable personal income.....................
199.2
217.8
239.0
21 Retail sales 5.................................................
184.6
203.5
224.4
225.4
232.2
235.3
237.1
228.8
235.6
238.2
Prices:6
22
Consumer7 ..............................................
23
Wholesale.................................................
161.2
174.9
170.5
183.0
181.6
194.2
184.0
195.8
184.5
196.3
185.4
197.0
186.1
198.2
187.2
199.9
188.4
202.0
189.8
203.8
1 Ratios o f indexes o f production to indexes o f capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and De
partment o f Commerce.
2 Index o f dollar value o f total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations Systems Company, F. W. Dodge Division.
3 Based on data in Employment and Earnings (U.S. Dept, o f Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4 Based on data in Survey o f Current Business (U.S. Dept, o f Com
merce). Series for disposable income is quarterly.
5 Based on Bureau o f Census data published in Survey o f Current
Business (U.S. Dept, o f Commerce).
2.11
129.3
108.9
104.0
101.9
140.5
245.3
242.9
6 Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Dept, o f Labor). Seasonally adjusted data for changes in
the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Dept, o f Labor.
7 Beginning Jan. 1978, based on new index for all urban consumers.
N ote.—Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey o f Current Business (U.S. Dept, of Commerce).
Figures for industrial production for the last 2 months are preliminary
and estimated, respectively.
OUTPUT, CAPACITY, A N D CAPACITY U TILIZA TION
Seasonally adjusted
1977
1977
1978
1977
1978
1978
Series
Q2
Q3
Q4
Q lr
Output (1967 = 100)
Q2
Q3
Q4
Ql
Capacity (per cent of 1967 output)
Q2
Q3
Q4
Q lr
Utilization rate (per cent)
1 Manufacturing...................................................
136.9
138.7
139.9
139.8
165.6
167.1
168.7
170.3
82.7
83.0
82.9
82.1
2
3
Primary processing......................................
Advanced processing..................................
146.3
132.0
147.3
129.3
148.2
135.6
148.1
135.4
171.8
162.2
173.5
163.8
175.1
165.3
176.8
166.9
85.1
81.4
84.9
81.9
84.6
82.0
83.8
81.1
137.7
138.1
138.9
139.3
166.6
167.8
168.9
170.4
82.6
82.3
82.2
81.7
5
6
7
8
9
10
11
12
Durable goods..............................................
Basic m etal...............................................
Nondurable goods......................................
Textile, paper, and chemical................
Textile....................................................
Paper......................................................
Chemical...............................................
Energy............................................................
135.1
116.4
154.6
159.9
110.9
134.3
191.8
122.6
136.0
109.4
154.4
159.2
112.3
135.1
189.5
123.4
137.7
109.4
155.0
159.5
117.9
132.3
188.9
121.9
138.0
110.7
157.6
162.5
115.5
137.1
193.7
119.9
170.3
145.1
177.2
185.4
141.9
150.1
218.7
144.7
171.6
145.3
178.8
187.1
142.5
151.3
221.2
145.2
172.8
145.5
180.4
188.9
143.0
152.5
223.6
145.7
174.0
145.8
182.3
190.8
143.5
153.6
226.6
147.2
79.4
80.2
87.2
86.3
78.1
89.5
87.7
84.8
79.2
75.3
86.3
85.1
78.8
89.3
85.7
85.0
79.6
75.2
85.9
84.5
82.4
86.7
84.5
83.7
79.3
75.9
86.5
85.2
80.5
89.3
85.5
81.4
L abor M a rk et
A47
2.12 LABOR FORCE, EMPLOYMENT, AN D UNEM PLOYM ENT
Thousands o f persons; monthly data are seasonally adjusted. Exceptions noted.
1977
Category
1975
1976
1978
1977
Oct.
Nov.
Dec.
Jan.
F eb.'
M ar.'
Apr.P
Household survey data
1 Noninstitutional population1................
153,449
156,048
158,559
159,334
159,522
159,736
159,937
160,128
160,313
160,504
2 Labor force (including Armed
94,793
92,613
96,917
94,773
99,534
97,401
100,205
98,071
101,009
98,877
101,048
98,919
101,228
99,107
101,217
99,093
101,536
99,414
101,902
99,784
4
5
Employment:
Nonagricultural industries2........
Agriculture......................................
Unemployment:
81,403
3,380
84,188
3,297
87,302
3,244
88,140
3,243
88,857
3,357
89,286
3,323
89,527
3,354
89,761
3,242
89,956
3,310
90,526
3,526
7,830
7,288
6,855
6,688
6,663
6,310
6,226
6,090
6,148
5,983
7
Rate (per cent o f civilian labor
force) ........................................
8 .5
7.7
7.0
6 .8
6 .7
6 .4
6 .3
6.1
6 .2
6 .0
8 Not in labor force..................................
58,655
59,130
59,025
59,130
58,512
58,688
58,709
58,911
58,776
58,602
83,719
19,972
705
3,916
4,628
18,744
4,630
15,693
15,431
84,046
20,075
24,733
711
4,651
18,744
4,647
15,791
15,480
84,537
20,164
24,933
725
4,674
18,843
4,672
15,882
15,533
85,156
20,224
25,334
893
4,700
18,902
4,696
15,953
15,571
Establishment survey data
9 Nonagricultural payroll employment3
10
Manufacturing....................................
11
M ining.................................................
12
Transportation and public utilities.
13
14 Trade....................................................
Finance................................................
15
Service..................................................
16
17
Government........................................
17,051
18,347
745
3,512
4,498
17,000
4,223
14,006
14,720
79,443
18,956
783
3,594
4,509
17,694
4,316
14,644
14,948
82,142
19,555
831
3,845
4,589
18,291
4,508
15,333
15,190
1 Persons 16 years o f age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages o f monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and Earnings (U.S. Dept, o f Labor).
2 Includes self-employed, unpaid family, and domestic service workers.
82,902
19,666
859
3,911
4,610
18,414
4,572
15,533
15,337
83,245
19,715
863
3,950
4,634
18,512
4,597
15,608
15,366
83,429
19,868
711
3,947
4,652
18,610
4,611
15,663
15,367
3 Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day o f the
month, and exclude proprietors, self-employed persons, domestic servants,
unpaid family workers, and members o f the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employment and Earnings (U.S. Dept, o f Labor).
A48
2.13
Domestic Nonfinancial Statistics □ M ay 1978
IN D U ST R IA L PR O D U C T IO N
Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
pro
por
tion
1977
aver
age
1977
Feb.
Mar.
Apr.
Sept.
1978
Oct.
Nov.
Dec.
Jan.r
Feb.
Mar.p Apr.e
Index (1967 == 100)
MAJOR MARKET
1 Total index.................................................................... 100.00 137.1
60.71 137.1
47.82 134.9
27.68 143.4
20.14 123.2
12.89 145.1
39.29 136.9
133.2 135.3 136.1
138.5 138.9 139.3 139.7 138.8 139.2
141.0 142.5
133.6
131.6
140.5
119.2
141.6
132.7
135.1 135.8 138.8 138.9
133.3 134.1 136.8 136.5
142.9 142.9 144.9 144.9
120.0 122.1 125.6 125.0
141.8 142.3 146.5 147.8
135.5 136.5 137.9 138.9
139.5
137.0
145.2
125.8
148.4
139.0
140.3 138.5 139.6 141.5 142.6
137.6 134.9 136.4 138.8 140.0
145.8 141.8 143.7 146.1 147.3
126.2 125.4 126.3 128.8 129.9
150.4 151.6 151.5 151.8 152.6
138.8 139.2 138.6 140.1 142.4
3
4
5
6
Final products...........................................................
Consumer goods.................................................
Equipment............................................................
Intermediate products............................................
8
9
10
11
12
Consumer goods
Durable consumer goods........................................
Automotive products.........................................
Autos and utility vehicles.............................
Autos.............................................................
Auto parts and allied g o o d s........................
7.89
2.83
2.03
1.90
.80
153.1
174.2
169.2
148.4
186.8
146.1
161.7
152.7
132.8
184.3
152.4 151.5 155.6
178.3 173.9 177.0
176.1 171.2 172.6
155.8 150.6 151.6
184.1 181.3 188.1
156.8
179.4
176.1
154.3
187.6
155.2
173.6
167.6
147.5
188.7
155.8 146.5
172.4 157.5
165.5 145.5
143.6 127.4
190.4 187.8
151.3 157.5 161.1
162.7 176.2 185.1
153.9 171.0 183.5
131.5 149.7 159.1
185.3 189.1 189.0
13
14
15
16
17
Appliances and T V ....................................
Carpeting and furniture................................
Misc. home goods..........................................
5.06
1.40
1.33
1.07
2.59
141.3
127.3
no, 5
15? 2
144.3
137.3
118.5
121.1
146.0
144.0
137.9
124.1
126.5
144.6
142.7
138.8
126.4
129.9
145.0
143.0
143.6
129.4
134.1
159.0
144.9
144.2
128.6
131.6
160.5
145.8
145.0
131.4
133.0
i 6o!o
146 *.3
146.6
132.8
134.6
161.5
147.7
144.7
133.3
135.7
160.2
144! 6
18
19
20
?1
Nondurable consumer g oods..................................
Clothing................................................................
Consumer staples................................................
Consumer foods and tobacco.....................
19.79
4.29
15.50
8.33
139.6
125.2
143.6
135.5
138.3
123.6
142.2
133.3
139.1
123.9
143.3
136.0
139.4
124.4
143.6
136.1
140.7 140.1
128.3 128.0
144.1 143.5
137.1 135.2
141.2
126.4
145.3
136.7
141.8 139.9 140.6 141.5 141.8
126.9 118.3 121.9
145.9 145.9 145.7 i4 6 ! 3 *i46!5
137.9 136.5 138.1 139.1
22
23
24
25
26
Nonfood staples..............................................
Consumer chemical products...................
Consumer paper products........................
Consumer energy products.......................
Residential utilities................................
7.17
2.63
1.92
2.62
1.45
152.9
180.5
117.1
151.4
159.0
152.6
175.7
113.3
158.3
161.8
151.8
175.9
117.4
152.8
157.4
152.5 152.4 153.4 155.1
178.1 182.5 183.7 186.9
116.6 116.4 117.6 118.5
153.0 148.6 149.1 149.9
158.5 153.8 155.8 155.6
Equipment
Business equipment.................................................. 12.63 149.2
Industrial equipment.......................................... 6.77 138.5
1.44 202.5
Building and mining equipment..................
3.85 113.9
Manufacturing equipment............................
1.47 140.2
Power equipment............................................
143.5
133.2
192.9
108.5
139.3
144.8
134.4
197.9
109.0
138.3
147.1
136.3
200.5
112.0
136.7
27
28
29
30
31
32
33
34
35
36
37
38
39
Commercial transit, farm equipment.............
Commerical equipment.................................
Transit equipment...........................................
Farm equipment.............................................
5.86
3.26
1.93
.67
Defense and space equipment................................
7.51
Intermediate products
Business supplies....................................................
Commercial energy products...........................
161.6 155.3 156.9 159.5
191.6 185.6 186.1 189.7
117.8 108.7 113.0 115.2
142.3 142.5 141.8 141.0
79.6
78.5
78.5
79.9
6.42 140.8 135.6 136.4
6.47 149.5 147.6 147.3
1.14 164.6 164.9 163.6
137.2
147.5
164.6
Materials
Durable goods materials......................................... 20.35
4.58
5.44
Durable materials n.e.c...................................... 10.34
Basic metal materials..................................... 5.57
152.1 152.6 153.5
141.4 141.8 142.6
204.5 205.7 206.7
117.6 118.5 118.7
141.4 139.8 142.1
140.3
116.1
117.4
159.1
145.9
155.2 156.6 154.6
186.5 187.4 184.3
119.8 121.4 118! 9
149.7 15 1 5 15ll2
158.5 161.1
162.2
198.5
111.1
131.4
165.3
200.9
115.8
134.4
79.5
79.7
79.1
143.2 144.9 146.5 148.3
149.7 150.5 150.1 152.6
162.7 163.0 160.9 165.6
149.2
153.8
165.5
78.9
79.3
154.6 155.1
184.9
X19 ]7
149^8
154.0 152.6 154.2 157.4
143.0 144.3 144.8 146.8
208.3 211.1 214.9 221.2
118.2 118.8 118.0 118.5
143.7 146.1 145.7 148.0
164.4 165.1 165.9 166.9
193.7 195.4 197.4 198.8
125.1 122.3 118.9 121.1
134.9 142.1 147.8 144.5
80.9
147.2 147.7
135.4 136.1
138.0
161 ^5
147! 8 148.5
158.9
148.0
224.6
119.0
148.9
169.8 171.5
203.3 205.1
124.4 126.5
137.0
80.6
81.2
148.7 149.3 150.1
154.2 154.2
164.9 164.5
134.5
132.0
143.1
131.1
110.9
128.4
124.1
137.3
125.5
105.5
131.9 133.8 135.7 137.1
126.8 129.4 135.8 135.4
137.8 140.7 146.8 147.6
131.1 132.2 129.8 132.4
113.6 115.0 106.8 110.0
137.2
136.5
147.2
132.3
107.9
138.7 138.2 137.0 138.7 141.1
135.7 133.0 131.0 133.9 136.5
149.2 148.7 146.6 151.0 152.3
134.3 134.9 134.7 134.6 137.4
110.3 110.2 111.0 110.9
45
46
47
48
49
Nondurable goods materials.................................. 10.47 153.5
7.62 158.3
Textile, paper, and chem. mat.........................
1.85 113.0
Textile materials..............................................
1.62 133.5
Paper materials...............................................
Chemical materials......................................... 4.15 188.2
150.4
153.9
109.8
133.5
181.6
153.3 153.7 153.9 154.4 155.4
158.4 159.0 159.0 160.0 159.3
113.2 111.8 114.5 118.5 117.8
133.9 132.2 135.2 134.4 132.2
188.0 190.6 188.2 188.5 188.6
155.3 155.0 158.5 159.3 159.5
159.3 160.7 162.9 164.0 163.9
117.3 114.9 115.8 115.7
130.2 135.0 137.8 138.5
189.5 191.4 193.9 195.8
50
51
52
53
54
Containers, nondurable.....................................
Nondurable materials n .e.c..............................
Energy materials.....................................................
Primary energy....................................................
Converted fuel materials...................................
1.70 150.9
1.14 125.3
8.48 122.4
4.65 107.3
3.82 140.7
150.2
126.8
120.8
103.1
142.4
148.9
126.1
121.8
107.0
139.9
156.7
128.5
123.0
111.6
136.9
154.4
129.9
118.7
103.0
137.7
150.4
123.6
122.2
105.2
142.8
158.7 158.2
128.9 129.3
117.7 119.7 124.3
101.6 107.4
137.3 134.7
9.35 133.9
12.23 132.5
3.76 155.4
8.48 122.4
131.0
132.9
160.3
120.8
131.5 132.2 136.5 136.8 136.5
132.3 132.1 132.5 133.0 132.3
156.0 156.5 153.0 153.3 153.2
121.8 121.3 123.5 124.0 123.0
137.5
129.7
154.5
118.7
130.2
132.5
155.8
122.2
134.3
129.3
155.3
117.7
40
41
42
43
44
55
56
57
58
Supplementary groups
Home goods and clothing.....................................
Energy, total.............................................................
For N ote see opposite page.
148.5
125.6
121.3
106.0
140.1
151.2 148.9
124.1 125.4
123.5 124.0
110.0 112.2
140.0 138.4
136.8 137.2
130.4 133.5
154.2
119.7 124.3
Output
A49
2.13 Continued
Grouping
SIC
code
1967
pro
por
tion
1977
1977
aver
age
Feb.
Mar.
Apr.
Sept.
1978
Oct.
Nov.
Dec.
Jan.r Feb.
Mar.p Apr.*
Index (1967 = 100)
MAJOR INDUSTRY
4
12.05 136.2
6.36 117.8
5.69 156.5
3.88 175.5
137.1 136.6
116.3 120.6
160.3 154.8
179.1 175.8
6
7
87.95 137.1
35.97 148.1
51.98 129.5
132.6 135.1 135.8 139.0 139.4 139.9 140.5 138.7 139.3 141.3 142.7
145 3 147.0 147.0 149.5 149.6 150.1 150.9 149.8 150.5 151.5 152 0
124.0 126.8 128.0 131.7 132.4 132.7 133.4 131.1 131.6 134.3 1 36^
9
Mining
.51
.69
4.4 0
.75
105.4 128.5 133.8
118.0 100.8 124.1
118.0 115.8 117.5
124.9 124.9 126.1
135.7
119.2
154.0
170.4
135.1 135.8 135.5 133.9 137.4 136.9 138.6 141.6
118.0 119.6 118.8 113.4 115.0 114.9 121.0 127.3
154.1 154.0 154.2 156.7 162.3 161.3 158.1 157.6
173.7 173.6 173.3 175.9 183.6
126.1 71.4 80.0 84.8 104.3
118.4 133.0 141.4 140.6 74.6
117.5 119.6 119.4 117.8 118.4
124.0 126.7 128.1 127.2 126.5
121.4 119.9
54.8
56.5
121.1 121.1
130.0 128.9
127.9
78.6 129.0
125.3 126.6
127.8
138.3 137.3 139.4
113.5 113.8 117.5
140.7 142.4 141.6
127.7 129.0 125.1
139.1 137.9 137.8
139.3 140.6
113.4 118.7
137.1 137.0
118.6 121.1
139.9 143.7
141.1
8
9
10
11
C oal..............................................................
Oil and gas extraction..............................
Stone and earth minerals........................
10
11,12
13
14
12
13
14
15
16
Nondurable manufactures
Foods...........................................................
Tobacco products...............................
Textile mill products................................
Apparel products......................................
Paper and products..................................
20
21
22
23
26
8.75 137.9 136.4 138.7
.67 114.3 116.8 104.3
2.68 137.1 132.3 134.4
3.31 124.2 124.4 122.2
3.21 137.4 136.5 135.5
17
18
19
20
21
Printing and publishing...........................
Chemicals and products..........................
Petroleum products..................................
Rubber & plastic products....................
Leather and products..............................
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
22
23
24
25
Durable manufactures
Ordnance, pvt. & g o v t.............................
Lumber and products..............................
Furniture and fixtures..............................
Clay, glass, stone products.....................
19,91
24
25
32
3.64 73.9 72.6 72.8
1.64 133.4 132.2 132.1
1.37 140.9 137.1 135.1
2.74 146.1 139.0 143.7
74.6 75.1
73.8
74.4 74.1
130.6 137.1 135.7 137.5 138.1
135.4 145.6 146.6 146.0 146.6
145.0 145.5 148.0 152.8 152.1
26
27
28
29
30
Primary metals..........................................
Iron and steel........................................
Fabricated metal products. . .................
Nonelectrical machinery..........................
Electrical machinery.................................
33
331,2
34
35
36
6.57 110.2 100.2 108.3
4.21 103.4 91.3 97.9
5.93 130.9 125.8 127.5
9.15 144.8 139.8 139.8
8.05 141.9 137.6 137.6
112.2
103.9
127.6
142.9
139.6
31
32
33
34
35
Transportation equipment......................
Motor vehicles & parts.......................
Aerospace & misc. tr. e q ....................
Instruments.................................................
Miscellaneous m frs...................................
37
371
372-9
38
39
9.27
4.50
4 .77
2.11
1.51
124.7
180.7
141.0
232.2
75.3
121.1
159.7
84.7
159.1
149.1
122.4
174.9
145.2
220.3
75.0
120.5
161.2
82.3
157.0
147.9
138.0
112.1
134.6
121.4
136.3
124.8 123.4 124.2 125.7
180.0 180.6 181.3 182.3
143.3 143.4 141.9 141.4
225.6 226.0 239.5 236.3
73.8 74.7 74.0 77.0
140.4
120.6
143.7
125.8
138.6
126.2 127.5 129.9
183.1 183 0 184 4
140.5 139.3 139.7
238.5 240.1 238 7
78.1
77.3
74.5
137.8
144.6
145.3
127.8 128.3 129.1
183.5 184.5
139.0 140.4 141.4
240.0 243.5
73.0 75.2
72.3 71.2
138.5 135.5
146.4 150.6
152.2 152.5
72.5
137.3
151.0
152.8
73.0
113.5
107.7
133.8
148.9
144.2
111.2
104.3
135.8
149.7
146.0
111.0
103.8
136.4
151.7
147.3
107.4 106.2
96.3
99.5
136.9 136.7
150.1 150.2
144.0 146.4
106.6 110.6
96.8
138.3 *i 39!5
151.5 152.8
149.2 150.4
120.5 119.8 125.5 124.3
161.2 158.1 165.6 168.4
82.3
87.7
83.8
82.8
156.9 157.8 160.3 162.2
147.4 145.6 150.7 151.0
122.0
163.0
83.3
163.1
151.8
122.2
161.8
84.9
164.7
152.5
116.2 118.4
146.6 153.0
87.6
85.8
163.4 163.5
153.0 151.8
127.5
167.0
90.5
166.5
153.5
109.0
104.6
133.6
147.4
144.6
130.7
173.2
90.7
167.3
154.4
Gross value (billions o f 1972 dollars, annual rates)
MAJOR MARKET
37
38
39
Products, tnfnl...............................................
Final products.............................................
Consumer g oods...................................
Equipment..............................................
40
Intermediate products..............................
1507.4
1390.9
1277.5
1113.4
583.9 569.4 578.2 578.3
452.1 441.1 449.0 448.5
317.5 312.2 316.8 316.1
134.6 128.9 132.1 132.6
1116.6 131.9
128.4 129.1
1 1972 dollars.
N ote.—Published groupings include some series and subtotals not shown
130.1
590.1 591.3 591.3 594.7 582.0 590.4 601.2 605.9
456.8 457.8 457.3 458.7 445.1 453.7 463.4 467.6
319.1 319.5 320.0 320.4 311.2 318.1 321.9 325.4
137.6 138.1 137.3 138.2 133.9 135.8 141.4 142.0
133.5
133.8 134.1
135.9
136.7
136.9 137.8
138.8
separately. For description and historical data, see Industrial Production—
1976 Revision (Board o f Governors o f the Federal Reserve System:
Washington, D.C.), Dec. 1977.
A50
2.14
Domestic Nonfinancial Statistics □ M ay 1978
H O U SIN G A N D CON STRU CTION
Monthly figures are at seasonally adjusted annual rates. Exceptions noted.
1977
Item
1975
1976
1978
1977
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Private residential real estate activity
(thousands o f units)
NEW UNITS
927
669
278
1,296
894
402
18,133
12,265
5,861
1,695
1,135
560
1,850
1,216
634
1,893
1,257
636
1,811
1,210
601
1,496
1,027
469
' 1,511
'954
'557
1,715
1,075
640
4 Started.
1-famil y
2-or-more-family.
1,160
892
268
1,540
1,163
377
1,986
1,451
535
2,012
1,508
504
2,139
1,532
607
2,096
1,544
552
2,203
1,574
629
' 1,548
'1,156
392
' 1,574
'1,100
'474
2,074
1,439
635
7 Under construction, end o f period 1
8
1-family.........................................
9
2-or-more-family.........................
1,003
531
472
1,147
655
492
1,442
829
613
1,149
708
442
1,189
729
460
1,211
746
466
r1,249
r770
'479
' 1,263
'786
'478
1,266
790
476
10 Completed..........................................
11
1-family.........................................
12
2-or-more-family.........................
1,297
866
430
1,362
1,026
336
1,652
1,254
398
1,875
1,458
417
1,665
1,249
416
1,769
1,280
489
r1,641
'1,299
342
'/,7 5 9
'1,296
'463
1,677
1,218
459
13 Mobile homes shipped...................
213
250
613
300
319
318
324
322
269
276
544
383
639
433
819
407
845
389
870
398
819
401
'857
403
'806
'404
'754
'407
794
406
39.3
38.9
44.2
41.6
48.9
48.2
48.5
45.9
51.4
46.7
51.8
46.7
'52.9
47.7
'51.1
48.2
'53.4
53.7
42.5
48.1
54.4
53.9
57.2
57.8
57.6
58.5
'59.4
60.3
2,452
3,002
3,572
3,880
3,930
4,160
4,140
3,780
3,460
3,770
35.3
39.0
38.1
4 2.2
42.9
47.9
43.8
47.9
44.0
48.2
44.5
48.5
44.2
48.3
45.5
50.3
46.3
51.3
46.5
51.1
1 Permits authorized............
2
1-family..........................
3 2-or-more-family..........
14
15
16
17
18
Merchant builder activity in
1-family units:
Number so ld ....................................
Number for sale, end o f period i . .
Price (thous. of dollars)2
Median:
Units sold..................................
Units for sale...........................
Average:
Units sold.................................
EXISTING UNITS (1-family)
19 Number so ld ..............................
Price o f units sold (thous. o f
dollars):2
20
Median....................................
21
Average..................................
Value o f new construction 4
(millions of dollars)
CONSTRUCTION
22 Total put in place......................
134,293
147,481
170,685
175,065
174,409
173,104
176,734
171,249
178,204
184,478
23 Private.........................................
24
Residential.............................
25
Nonresidential, total............
Buildings:
26
Industrial........................
27
Commercial...................
28
Other...............................
29
Public utilities and other.
93,624
46,472
47,152
109,499
60,519
48,980
133,652
81,067
52,585
135,812
81,677
54,135
136,710
83,022
53,688
137,464
84,005
53,459
140,468
87,246
53,222
137,312
81,111
56,201
143,600
86,922
56,678
148,860
89,954
58,906
8,017
12,804
5,585
20,746
7,182
12,757
6,155
22,886
7,182
14,604
6,226
24,573
7,484
16,054
6,370
24,227
7,579
15,846
6,337
23,926
7,716
15,404
6,437
23,902
7,132
14,627
6,200
25,263
7,484
14,986
6,065
27,666
7,563
15,043
5,806
28,266
9,094
15,940
6,316
27,556
30 Public..........................................
31
Military...................................
32
Highway..................................
33
Conservation and developm
34
Other 3..................................
40,669
1,392
10,861
3,256
25,160
37,982
1,508
9,756
3,722
22,996
37,033
1,478
9,170
3,765
22,620
39,253
1,493
8,915
4,910
23,925
37,699
1,381
9,507
3,141
23,670
35,641
1,286
8,281
3,464
22,610
36,266
1,370
7,877
3,851
23,168
33,937
1,410
7,006
3,900
21,621
34,603
1,474
35,618
1,424
1 N ot at annual rates.
2 Not seasonally adjusted.
3 Beginning Jan. 1977 Highway imputations are included in Other.
4 Value o f new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description o f these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
N ote.—Census Bureau estimates for all series except (a) mobile
homes, which are private, domestic shipments as reported by the Manu
factured Housing Institute and seasonally adjusted by the Census Bureau,
and (b) sales and prices o f existing units, which are published by the
National Association of Realtors. All back and current figures are avail
able from originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.
A51
P rices
2.15 CONSUMER AN D WHOLESALE PRICES
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—
Item
1977 r
1977
Mar.
1 month to—
3 months (at annual rate) to—
1978
1977
1978
1978
Mar.
June
Sept.
Dec.
Mar.
Nov.
Dec.
Jan.
Feb.
Mar.
Index
level
Mar.
1978
(1967
= 100)3
Consumer prices4
6 .4
6 .5
7 .8
4.5
4.9
9.3
.4
.4
.8
.6
.8
189.8
5 .7
8.3
4.6
4.7
4.1
6 .7
11.5
4 .2
3.5
4 .7
2 .5
1.9
2.7
1.5
3.4
4 .9
4.2
5.4
5.2
5.1
9.3
16.4
6.1
8.7
3.1
.5
.5
.5
.4
.5
.5
.4
.5
.5
.3
.9
1.3
.7
1.0
.4
.5
1.2
.2
.7
- .3
.8
1.3
.6
.5
.6
181.6
204.2
170.0
168.3
170.7
4
Commodities less fo o d ...............................
6
Nondurable..............................................
5 .9
5.5
6.1
6.9
5 .4
8
9
R ent................................................................
Services less rent..........................................
7.2
5.7
7 .4
7.8
6 .4
8.1
9 .4
6 .2
9 .9
7.6
6.7
8.0
4 .9
6.3
4 .8
9.1
6 .2
9.6
.4
.6
.4
.4
.5
.4
.6
.6
.6
.7
.4
.8
.8
.6
.9
204.9
160.5
213.0
10
11
12
Other groupings:
All items less fo o d .......................................
All items less food and energy.................
Homeownership...........................................
6 .6
6 .3
5.6
6 .2
6.3
9.5
6 .8
6 .9
10.4
5.3
5.1
8.5
5.0
5.3
7.1
8.1
8.0
12.2
.4
.4
.7
.4
.5
.7
.8
.9
1.0
.5
.4
.7
.7
.7
1.2
185.9
183.4
218.3
Wholesale prices
13 All commodities................................................
6 .8
6.1
4 .0
2.1
6.7
12.0
r.8
.4
.9
1.0
1.0
203.8
14 Farm products, and processed foods and
feeds............................................. ..............
15
Farm products.............................................
16
Processed foods and feeds.........................
6.1
8 .6
4 .6
4 .9
1.4
7 .0
-3 .1
- 2 0 .3
8 .2
-1 4 .8
- 2 1 .3
-1 0 .9
14.5
17.9
12.5
28.8
44.0
21.1
2 .3
r3.3
1.8
.3
- .3
.6
1.1
1.7
.8
2 .5
2 .8
2.3
2 .9
4 .1
1.7
200.3
205.3
196.8
7.1
6 .5
6 .4
6 .7
4 .9
8 .0
.3
.5
.7
.7
.5
204.1
19.8
6.8
4.9
6 .4
- 8 .1
5.5
-5 .3
7.1
18.5
4 .0
17.3
9 .2
r2.3
r.l
1.8
.4
'1.5
.9
1.0
.8
1.5
.5
275.9
211.5
18
19
Materials, supplies, and components o f
which:
Crude nonfood materials1.....................
Intermediate materials 2.........................
Finished goods, excluding foods:
21
22
23
Durable.................................................
Nondurable..........................................
Producer....................................................
6 .2
4 .6
7.3
5.9
5.3
6.1
4.8
7.6
7 .8
6.9
7.7
6.8
4 .0
5 .6
3.0
6 .0
4 .4
5.3
4.3
10.5
5.3
6.8
4.1
7.3
.3
.3
r.3
.5
.3
.4
.4
.6
.5
.7
.4
.5
.3
.3
.3
.7
.5
.6
.3
.6
178.2
158.9
191.0
194.5
M emo:
24 Consumer food s...............................................
4.5
7 .2
4.3
-2 .3
7 .4
21.0
1.2
.5
1.1
2 .9
.8
200.1
1 Excludes crude foodstuffs and feedstuffs.
2 Excludes intermediate materials for food manufacturing and manu
factured animal feeds.
3 Not seasonally adjusted.
4 Beginning Jan. 1978 figures for consumer prices are those for all urban
consumers.
Source.—Bureau of Labor Statistics.
A N ote.—The index level reported for Jan. 1978 (1967 = 100) for
all commodities (line 13) in the March B ulletin was incorrect. The
figure should have been 199.9, rather than 199.1.
A53
National Income Accounts
2.17 PERSONAL INCOM E A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1975
1976
1977
1977
1976
Account
Q4
Ql
Q2
1978
Q4
Q3
Q l*
Personal income and saving
1 Total personal income...............................................
1 ,2 5 3 .4
1 ,3 8 2 .7
1,536.7
1,432.2
1,476.8
1,5 1 7 .2
1,549.8
1,603.0
1,636.7
2 Wage and salary disbursements...............................
3
Commodity-producing industries......................
4
Manufacturing...................................................
5
Distributive industries..........................................
6
Service industries...................................................
Government and government enterprises........
7
805.7
275.0
211.0
195.4
159.9
175.4
891.8
308.4
238.2
217.1
179.0
187.2
990.0
346.4
267.3
242.8
200.9
199.9
923.2
317.7
245.1
226.4
186.7
192.5
951.3
328.9
255.4
234.5
193.0
194.8
980.9
345.4
265.9
240.5
197.7
197.2
998.9
351.0
270.0
244.4
202.8
200.6
1,029.1
360.2
278.0
251.8
210.2
206.9
1 ,057.4
370.1
288.5
260.6
216.8
209.9
8 Other labor incom e...................................................
64.9
75.9
88.6
80.0
83.2
86.7
90.3
94.0
97.8
9 Proprietors’ income1..................................................
10
Business and professional1..................................
11
Farm1......................................................................
8 6 .0
62.8
2 3 .2
8 8.0
6 9.4
18.6
98.2
78.5
19.7
88.7
72.0
16.6
95.1
74.3
20.7
9 7 .0
7 7.3
19.7
95.5
80.0
15.5
105.0
82.4
22.7
102.4
82.8
19.7
26.9
12 Rental income o f persons 2......................................
22.3
23.3
25.3
24.1
24.5
24.9
25.5
2 6.4
13 D ividends....................................................................
32.4
35.8
41.2
38.4
38.5
40.3
42.3
4 3.6
43.8
14 Personal interest income..........................................
115.6
130.3
147.8
136.4
140.3
145.4
150.3
155.2
159.8
15 Transfer payments.....................................................
16
Old-age survivors, disability, and health
insurance benefits..........................................
176.8
192.8
206.9
198.0
203.5
203.0
208.7
212.6
216.1
81.4
92.9
105.0
98.4
99.9
101.8
108.5
r 110.0
111.7
50 .4
55.2
61.3
56.6
59.6
60.8
61.7
62.9
67.5
18 Equals: Personal incom e.......................................
1 ,253.4
1,382.7
1,536.7
1,432.2
1,476.8
1,517.2
1,549.8
1,603.0
1,636.7
Less: Personal tax and nontax paym ents.. . .
17
Less: Personal contributions for social
insurance.........................................................
169.0
196.9
227.5
209.5
224.4
224.8
226.1
234.7
236.3
20 Equals: Disposable personal incom e..................
1 ,084.4
1,185.8
1,309.2
1,222.6
1,252.4
1,292.5
1,323.8
1,368.3
1,400.5
Less: Personal outlays........................................
1,004.2
1,119.9
1,241.9
1,166.3
1,201.0
1,223.9
1,250.5
1,292.2
1,317.9
22 Equals : Personal saving.........................................
80.2
65.9
67.3
56.3
51.4
68.5
73.3
76.1
82.6
5,629
3,629
4,014
7 .4
5,924
3,817
4,137
5 .6
6,167
3,971
4,293
5.1
5,966
3,892
4,177
4 .6
6,064
3,934
4,202
4.1
6,143
3,943
4,268
5 .3
6,206
3,963
4,305
5.5
6,254
4,045
4,394
5 .6
6,234
4,035
4,401
5.9
19
21
Memo items :
Per capita (1972 dollars):
23
Gross national product........................................
24
Personal consumption expenditures..................
25
Disposable personal income.......................
26 Saving rate (per cent)...............................................
Gross saving
27 Gross private saving..................................................
259.4
272.5
'293.9
261.6
262.9
292.1
310.5
'309.9
28
29
30
Personal saving......................................................
Undistributed corporate profits1.......................
Corporate inventory valuation adjustment.. . .
80.2
16.7
-1 2 .0
65.9
27.6
- 1 4 .1
67.3
29.5
-1 4 .6
56.3
20.8
- 1 6 .9
51.4
22.5
- 2 0 .6
68.5
30.3
-1 7 .8
73.3
37.4
- 5 .9
76.1
'27.9
- 1 4 .1
—24.6
31
32
33
Capital consumption allowances:
Corporate............................................................
Noncorporate.....................................................
Wage accruals less disbursements.....................
101.7
60.8
111.8
67.2
121.9
75.1
115.2
69.2
117.6
71.4
119.4
73.8
123.7
76.2
127.0
78.9
130.1
80.7
34 Government surplus, or deficit ( —), national
income and product accounts...........................
35
Federal....................................................................
36
State and local.......................................................
-6 4 .3
- 7 0 .2
5 .9
-3 5 .6
-5 4 .0
18.4
- 2 0 .3
- 4 9 .5
29.2
-2 9 .4
-5 5 .9
26.5
-1 1 .5
-3 8 .8
27.3
-1 4 .9
- 4 0 .3
2 5 .4
-2 6 .0
-5 8 .9
32.9
r —28.9
'- 6 0 .0
31.1
38 Investment...................................................................
39
Gross private domestic........................................
40
Net foreign.............................................................
201.0
189.1
11.8
242.5
243.3
-.9
273.3
294.2
- 2 0 .9
237.5
243.3
-5 .9
254.7
271.8
- 1 7 .1
276.1
294.9
-1 8 .8
285.4
303.6
-1 8 .2
277.2
306.7
- 2 9 .5
41 Statistical discrepancy..............................................
5 .9
5.5
-.2
5.3
3.3
-1 .2
.9
'-3 .9
82.6
37 Capital grants received by the United States,
1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustment.
278.5
314.4
-3 5 .8
Source.—Survey o f Current Business (U.S. Dept, o f Commerce).
A54
International Statistics □ M ay 1978
3.10 U.S. IN TER N A TIO N A L TRANSACTIONS
Summary
Millions o f dollars; quarterly data are seasonally adjusted except as noted.1
Item credits or debits
1975
1976
1977
1976
Q3
1 Merchandise exports...................
2 Merchandise imports...................
3
Merchandise trade balance 2 .
107,088
98,043
9,045
4 Military transactions, n et...........
5 Investment income, net...............
6 Other service transactions, n e t..
-8 7 6
5,954
2,042
7 Balance on goods and services 3.
16,164
Ql
Q4
Q2
Q4
Q3
114,694 120,472
124,014 151,713
- 9 ,3 2 0 -3 1 ,2 4 1
29,603
32,411
- 2 ,8 0 8
29,711
33,305
-3 ,5 9 4
29,457
36,606
-7 ,1 4 9
30,655
38,309
-7 ,6 5 4
30,870
38,429
-7 ,5 5 9
29,490
38,369
-8 ,8 7 9
1,432
11,935
2,460
235
2,667
781
235
2,424
598
514
3,187
330
309
3,439
546
559
3,166
845
50
2,143
740
366
9,808
2,743
3,596 - 1 5 ,4 1 4
875
-3 3 7
- 3 ,1 1 8
- 3 ,3 6 0
-2 ,9 8 9
-5 ,9 4 6
- 2 ,0 0 8
-2 ,7 8 7
-4 6 1
-1 ,4 7 5
-4 7 3
-5 7 2
-5 2 6
-6 3 7
-4 9 2
-7 2 3
-5 1 0
-8 2 4
-4 8 0
-6 0 4
-1 ,4 2 7 -2 0 ,2 0 9
-1 ,0 6 1
-3 ,8 0 9
-1 ,3 8 2
303
-4 ,2 8 1
-3 ,4 0 4
- 4 ,5 7 5
- 4 ,6 6 7
-4 ,3 2 3
- 6 ,8 4 4
-7 ,0 3 0
-5 ,2 9 4
-4 ,2 1 3
- 3 ,6 6 6
-1,405
-1,142
-909
-825
-1,169
-763
-2 ,5 3 0
-2 3 1
-1 1 8
-1 2 1
-294
302
-4 0 7
228
6
151
-1 8
-7 1 6
327
-2 9
-4 6 1
718
-3 8 8
-5 8
-3 8 9
59
-8 3
-8 0
169
-9
133
27
8 Remittances, pensions, and other transfers.........................
9 U.S. Govt, grants (excluding military)..................................
- 1 ,7 1 9
-2 ,8 9 3
10 Balance on current account.......................................................
11
Not seasonally adjusted..........................................................
11,552
12 Change in U.S. Govt, assets, other than official reserve
assets, net (increase, —) .....................................................
-3 ,4 6 3
-6 0 7
-6 6
-4 6 6
-7 5
-7 8
- 2 ,2 1 2
-2 4 0
13 Change in U.S. official reserve assets (increase, —) ..............
14
G old............................................................................................
15
Special Drawing Rights (SDR’s)..........................................
16
Reserve position in International Monetary Fund (IM F).
17
Foreign currencies...................................................................
1977
-1 ,8 7 8
- 3 ,1 4 6
-6 0
-2 9
42
47
18 Change in U.S. private assets abroad (increase, —) . . .
-2 7 ,4 7 8 -3 6 ,2 1 6 -2 2 ,1 6 2
-6 ,5 9 7 -1 3 ,1 0 8
1,627
-9 ,4 6 4
-3 ,4 0 5 -1 0 ,9 2 1
19
20
21
Bank-reported claims.......................................................
Long-term.....................................................................
Short-term.....................................................................
-1 3 ,5 3 2 -2 0 ,9 0 4 -1 1 ,6 9 4
-7 4 1
- 2 ,3 5 7 -2 ,1 2 4
-1 1 ,175 -1 8 ,7 8 0 -1 0 ,9 5 3
-3 ,3 7 2
-9 7 8
- 2 ,3 9 4
-9 ,1 4 8
-4 8 0
-8 ,6 6 8
3,446
-3 0 6
3,752
-4,5 5 3
23
-4,5 7 6
- 1 ,7 0 9
-4 4 5
-1 ,2 6 4
-8 ,8 7 8
-1 3
-8 ,8 6 5
22
23
24
25
26
Nonbank-reported claims............................
Long-term................................................
Short-term................................................
U.S. purchase o f foreign securities, n et.
U.S. direct investments abroad, net
-9 6
- 1 ,9 8 6
350
10
-4 4 6
-1 ,9 9 6
5
,3
62
- 8 ,7 3 0
- 4 ,5 9 6 -5 ,0 0 9
723
66
657
-2 ,7 4 3
-1 ,2 0 5
-9 6 7
-9 5 7
-2 ,1 7 1
-8 2 2
-7 2 2
45
-7 6 7
-6 9 2
-4 0 4
-1 ,1 2 9
68
-1,197
-1 ,7 8 4
-1 ,9 9 8
1,518
240
1,278
-2 ,1 5 6
-1 ,0 5 8
237
-3
240
-7 3 1
-1 ,5 4 9
6,977
3,909
116
852
1,769
331
5,719
5,149
100
712
-4 2 0
178
7,908
5,124
609
456
752
967
8,249
6,950
627
321
-1 5 0
501
15,542
12,868
974
385
944
372
-1 ,4 4 7
-4 3 2
- 1 ,0 1 5
- 6 ,2 3 5
-6 ,2 6 4
-10
27 Change in foreign official assets in the United States (in
crease', -(-)............................................................................
U.S. Treasury securities.......................................................
28
29
Other U.S. Govt, obligations..............................................
30
Other U.S. Govt, liabilities 4..............................................
Other U.S. liabilities reported by U.S. banks.................
31
32
Other foreign official assets 5..............................................
6,960
4,408
905
1,701
-2 ,1 5 8
2,104
17,945
9,333
566
4,938
893
2,215
37,419
30,091
2,310
1,874
1,126
2,018
3,070
1,260
66
1,819
-5 9 9
524
33 Change in foreign private assets in the United States (in
crease, + ) ............................................................................
7,376
16,575
11,842
5,131
5,102
-3 ,2 0 9
5,873
5,671
3,508
628
-280
908
240
334
-9 4
10,982
175
10,807
-6 1 6
-9 4 7
331
6,751
366
6,385
2
-4 4 8
450
1,774
75
1,699
-2 9 7
-2 4 1
-5 6
5,008
221
4,787
-2 4 2
-3 1 1
69
-5 ,2 9 8
47
-5,345
-3 7 4
-2 2 9
-1 4 5
6,344
105
6,239
-4 0 5
-1 8 3
-2 2 2
2,656
194
2,462
629
56
573
3,049
20
3,029
152
-9 2
244
2,590
2,503
1,414
2,783
1,250
2,176
628
2,934
1,527
3,026
68
561
-8 8
21
403
1,047
879
537
-1,3 7 0
736
568
1,250
516
619
-2 9 9
803
-1 9 7
5.660
9.866
-2 ,9 9 3
1,268
-2,6 2 2
3,325
1,780
1,440
652
1,077
-9 0
-5 ,1 7 3
-2 ,3 8 8
-3 3 7
1,826
5.660
9.866
-2 ,9 9 3
3,890
1,545
788
1,167
-2 ,7 8 5
-2,163
-6 0 7
5,259
- 2 ,5 3 0
13,007
-2 3 1
35,545
-4 0 7
1,251
228
6,125
-3 8 8
5,007
6
7,452
151
7,928
15,157
7,092
9,324
6,758
1,774
805
3,249
1,073
1,438
998
2,217
386
195
156
94
46
27
32
90
34
35
36
37
38
39
40
41
42
U.S. bank-reported liabilities.................................................
Long-term.......................................................................
Short-term..............................................................................
U.S. nonbank-reported liabilities...........................................
Long-term..............................................................................
Short-term..................................................................... ........
Foreign private purchases o f U.S. Treasury securities,
n et.......................................................................................
Foreign purchases o f other U.S. securities, net.................
Foreign direct investments in the United States, net
43 Allocation o f SDR’s ....................................................................
44 Discrepancy....................................................................................
45
Owing to seasonal adjustments............................................
46
Statistical discrepancy in recorded data before seasonal
adjustment.............................................................................
47
48
49
50
M emo items: .................................................................................
Changes in official assets:
U.S. official reserve assets (increase, —) ............................
Foreign official assets in the United States (increase, - f ) .
Changes in Organization o f Petroleum Exporting Coun
tries (OPEC) official assets in the United States (part
o f line 27 above).................................................................
Transfers under military grant programs (excluded from
lines 1, 4, and 9 above).......................................................
1 Seasonal factors are no longer calculated for lines 13 through 50.
2 Data are on an international accounts (IA) basis. Differs from the
Census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
Line 4.
3 Differs from the definition o f “net exports o f goods and services” in
the national income and product (GNP) account. The GNP definition
excludes certain military sales to Israel from exports and excludes U.S.
Govt, interest payments from imports.
4 Primarily associated with military sales contracts and other transac
tions arranged with or through foreign official agencies.
5 Consists o f investments in U.S. corporate stocks and in debt securi
ties of private corporations and state and local governments.
N ote.—Data are from Bureau o f Economic Analysis, Survey o f Cur
rent Business (U.S. Department o f Commerce).
Trade an d R eserve A ssets
A55
3.11 U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1977
1976
1978
1977
Item
1975
1 EXPORTS o f domestic and foreign
merchandise excluding grant-aid
shipments............................................
107,130
114,802
2 GENERAL IMPORTS including
merchandise for immediate con
sumption plus entries into bonded
warehouses..........................................
96,115
120,678
147,696
12,605
12,996
11,833
13,123
12,393
14,439
13,693
3 Trade balance..........................................
11,014
-5 ,8 7 6
-2 6 ,5 5 2
- 1 ,5 6 9
-3 ,6 2 1
-2 ,3 5 8
-2 ,1 1 6
- 2 ,3 7 9
- 4 ,5 1 6
- 2 ,7 8 1
121,144
N ote.—Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Effective January 1978, major changes were made in
coverage, reporting, and compiling procedures. Data for 1977 reflect
these changes. However, the quarterly international-accounts-basis data
in Table 3.10 will not incorporate the 1977 revisions until June. The latter
data adjust the Census basis data for reasons of coverage and timing. On
the export side, the largest adjustments are: (a) the addition o f exports to
Canada not covered in Census statistics, and (b) the exclusion of military
3.12
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
11,037
9,375
9,475
11,007
10,014
9,922
10,912
exports (which are combined with other military transactions and are
reported separately in the “service account”). On the import side, the
largest single adjustment is the addition o f imports into the Virgin Islands
(largely oil for a refinery on St. Croix), which are not included in Census
statistics.
Source.—FT 900 “Summary o f U.S. Export and Import Merchandise
Trade” (U.S. Dept, o f Commerce, Bureau o f the Census).
U.S. RESERVE ASSETS
Millions o f dollars, end o f period
1978
1977
Type
1974
1975
1976
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
3 18,842
1 Total.........................................................
15,883
16,226
18,747
19,048
19,155
19,317
19,454
19,373
19,192
2 Gold stock, including Exchange
Stabilization Fund1..........................
11,652
11,599
11,598
11,658
11,658
11,719
11,718
11,718
11,718
11,718
3 Special Drawing Rights2.....................
2,374
2,335
2,395
2,530
2,548
2,629
2,629
2,671
2,693
3 2,669
4 Reserve position in International
Monetary Fund..................................
1,852
2,212
4,434
4,842
4,933
4,951
4,934
4,966
4,701
34,388
5 Convertible foreign currencies...........
5
80
320
18
16
18
173
18
80
67
1 Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock o f the United States; see Table
3.24.
2 Includes allocations by the International Monetary Fund (IMF) o f
SD R ’s as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1,
1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR’s.
3 Beginning July 1974, the IMF adopted a technique for valuing the
SDR based on a weighted average o f exchange rates for the currencies
o f 16 member countries. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974. At valuation
used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets
at end o f Apr. amounted to $18,604; SDR holdings, $2,626, and reserve
position in IMF, $4,193.
A56
International Statistics □ M ay 1978
3.13 SELECTED U.S. LIABILITIES TO FOREIGNERS
Millions o f dollars, end o f period
1977
Holder, and type o f liability
1974
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
Mar^
1 Total.....................
119,164
126,552
151,356
174,709
178,937
184,720
192,270
194,021
197,280
207,070
2 Foreign countries.
115,842
120,929
142,873
167,295
171,541
177,087
184,625
186,320
189,682
199,155
76,823
80,712
91,975
111,208
117,057
123,142
126,032
129,782
132,651
140,545
53,079
49,530
53,619
56,805
59,835
62,214
64,527
66,514
70,471
77.512
5,059
16,339
6,671
19,976
11,788
20,648
25,581
21,128
28,633
20,351
31,519
20,462
32,116
20,443
33,830
20,473
33,554
19,602
34,538
19.513
2,346
4,535
5,920
7,694
8,238
8,947
8,946
8,965
9,024
8,982
30,106
29,516
37,329
40,414
38,755
37,981
42,510
40,329
40,758
42,280
8,913
10,701
13,569
15,673
15,729
15,964
16,083
16,209
16,273
16,330
8,415
10,000
12,592
14,046
14,038
14,196
14,325
14,391
14,347
14,383
498
701
977
1,627
1,691
1,768
1,758
1,818
1,926
1,947
3,322
5,623
8,483
7,414
7.396
7,633
7,645
7,701
7,598
7,915
3,171
5,292
5,450
3,555
3.396
3,258
2,898
3,248
2,697
3,160
151
331
3,033
3,859
4,000
4,375
4,746
4,453
4,901
4,755
3 Official institutions1...............................
4
Short-term, reported by banks in
the United States.2...................
U.S. Treasury bonds and notes:
5
Marketable 3....................................
6
Nonmarketable4 ...........................
7
Other readily marketable
liabilities 5................................
Commercial banks abroad:
8
Short-term, reported by banks in
the United States2, 6.................
9 Other foreigners......................................
10
Short-term, reported by banks in
the United States2 ....................
11
Marketable U.S. Treasury bonds
and notes3,7.............................
12 Nonmonetary international and
regional organization8.................
13
Short-term, reported by banks in
the United States2 .................
14
Marketable U.S. Treasury bonds
and notes3 ................................
1 Includes Bank for International Settlements.
2 Includes Treasury bills as shown in Table 3.15.
3 Derived by applying reported transactions to benchmark data.
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 foreign currencies to com
mercial banks abroad and to other foreigners.
7 Includes marketable U.S. Treasury bonds and notes held by com
mercial banks abroad and other foreigners.
3.14
8 Principally the International Bank for Reconstruction and Develop
ment and the Inter-American and Asian Development Banks.
N ote.—Based on Treasury Dept, data and on data reported to the
Treasury Dept, by banks (including Federal Reserve banks) and brokers
in th$ United States. Data exclude the holdings o f dollars o f the Inter
national Monetary Fund derived from payments of the U.S. subscription,
and from the exchange transactions and other operations o f the IMF.
Data also exclude U.S. Treasury letters o f credit and nonnegotiable, noninterest-bearing special U.S. notes held by nonmonetary international
and regional organizations.
SELECTED U.S. LIABILITIES TO FO R E IG N O FFIC IA L IN STITUTIO NS
Millions of dollars, end of period
Area
1974
1975
1977
1978
1976
Sept.
Oct.
Nov
Dec.
Jan.
Feb.p
Mar.p
1 T otal.........................................................
76,823
80,712
91,975
111,208
117,057
123,142
126,032
129,782
132,651
140,545
3
4
5
6
7
44,328
3,662
4,419
18,627
3,160
2,627
45,701
3,132
4,450
22,551
2,983
1,895
45,882
3,406
4,906
34,108
1,893
1,780
60,724
2,508
4,466
40,333
2,144
1,033
65,039
1,863
4,269
42,700
2,027
1,159
68,147
1,919
4,843
45,450
1,792
991
70,707
2,334
4,633
45,676
1,742
940
72,557
2,078
4,562
48,084
1,706
795
74,401
1,389
5,103
49,154
1,899
705
76,219
1,633
5,709
54,187
1,769
1,028
Canada................................................
Latin American republics................
Asia......................................................
Africa...................................................
Other countries 2...............................
1 Includes Bank for International Settlements.
2 Includes countries in Oceania and Eastern Europe, and Western
European dependencies in Latin America.
N ote.—D ata represent breakdown by area of line 3, Table 3.13.
A52
2.16
Domestic Nonfinancial Statistics □ M ay 1978
GROSS N A TIO N A L PR O D U C T A N D IN C O M E
Billions o f current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1976
1975
Account
1976
1977
1978
1977
Q4
Q2
Ql
Q3
Q4
Q l*
Gross national product
1
By source:
2
Personal consumption expenditures...................
3
Durable g oods...................................................
4
Nondurable goods............................................
5
1,5 2 8 .8
1,706.5
1,889.6
1 ,755.4
1,810.8
1,86 9 .9
1,915.9
1,961.8
1,992.9
980.4
132.9
409.3
438.2
1 ,094.0
158.9
442.7
492.3
1,211.2
179.8
480.7
550.7
1,139.0
166.3
458.8
513.9
1,172.4
177.0
466.6
528.8
1 ,1 9 4 .0
178.6
474.4
541.1
1,218.9
177.6
481.8
559.5
1,259.5
186.0
499.9
573.7
1,284.0
184.0
505.8
594.3
243.3
230.0
161.9
55.8
106.1
68.0
65.7
294.2
276.1
185.1
61.5
123.6
91.0
88.4
243.4
244.3
167.6
57.0
110.6
76.7
74.3
271.8
258.0
177.0
57.9
119.2
81.0
78.5
294.9
273.2
182.4
61.0
121.4
90.8
88.2
303.6
280.0
187.5
62.6
124.9
92.5
89.9
306.7
293.2
193.5
64.5
129.0
99.7
97.1
314.4
297.9
197.7
65.1
132.6
100.2
97 A
6
7
8
9
10
11
12
Gross private domestic investment....................
Fixed investment...............................................
Structures....................................................
Producers’ durable equipment...............
Residential structures..................................
N onfarm.....................................................
189.1
200.6
149.1
52.9
96.3
51.5
49.5
13
14
Change in business inventories......................
N onfarm.........................................................
- 1 1 .5
- 1 5 .1
13.3
14.9
18.2
17.1
-.9
1.4
13.8
14.1
21.7
22.4
23.6
23.1
13.5
9 .0
16.5
15.5
15
16
17
Exports................................................................
Imports........... ....................................................
c20.4
147.3
126.9
7.8
162.9
155.1
-1 0 .9
174.7
185.6
3 .0
168.5
165.6
- 8 .2
170.4
178.6
-9 .7
178.1
187.7
-7 .5
179.9
187.4
- 1 8 .2
170.6
188.8
-2 2 .6
178.3
200.8
18
19
20
Govt, purchases o f goods and services ..............
Federal.................................................................
State and lo ca l...................................................
338.9
123.3
215.6
361.4
130.1
231.2
395.0
145.4
249.6
370.0
134.2
235.8
374.9
136.3
238.5
390.6
143.6
247.0
400.9
148.1
252.9
413.8
153.8
260.0
417.1
153.1
264.1
1,540.3
686.2
258.2
428.0
699.2
143.5
1,693.1
764.2
303.4
460.9
782.0
160.2
1,871.4
834.7
341.3
493.4
867.4
187.5
1,756.3
774.7
312.6
460.6
813.8
166.9
1,797.0
805.9
334.4
471.5
833.7
171.2
1,848.2
827.1
341.0
486.1
855.3
187.5
1,892.2
843.5
342.3
501.2
881.6
190.7
1,948.2
862.5
347.6
514.9
898.8
200.4
1,976.4
864.9
352.2
512.6
929.2
198.9
- 1 1 .5
-9 .2
-2 .2
13.3
4.1
9.3
18.2
9.1
9.1
-.9
.6
-3 .1
13.8
7.8
6 .0
21.7
11.5
10.2
23.6
10.3
13.4
13.5
6 .8
6.8
16.5
13.9
2 .6
1,202.1
1,274.7
1,337.3
1 ,287.4
1,311.0
1 ,3 3 0 .7
1 ,347.4
1,360.2
1,358.3
By major type o f product:
21
22
23
24
25
26
27
28
29
Durable goods...............................................
Change in business inventories..........................
Nondurable goods............................................
30
National income
31 Total..............................................................................
1 ,217.0
...................................
930.3
805.7
175.4
630.3
124.6
33
34
35
36
37
Wages and salaries............................................
Government and Government enterprises..
Other....................................................................
Supplement to wages and salaries.....................
Employer contributions for social
insurance....................................................
1,364.1
1,450.2
1.505.7
1 ,540.5
'1,585.7
1,156.3 o f 1.074.2
1,036.3
32 Compensation
employees 1,109.9
990.0
923.2
891.8
951.3
187.2
199.9
192.5
194.8
704.6
790.1
730.7
756.4
144.5
166.3
150.9
158.6
1.144.7
980.9
197.2
783.6
163.8
1,167.4
998.9
200.6
798.3
168.5
1,203.3
1,029.1
206.9
822.2
174.3
1,242.5
1,057.4
209.9
847.5
185.1
1,520.5
1.402.1
59.8
64.9
68.6
75.9
77.7
88.6
70.9
80.0
75 .4
83.2
77 A
86.7
7 8.2
90.3
80.2
94.0
87.4
97.8
Business and professional1..................................
Farm1......................................................................
86 .0
62.8
23.2
88.0
69.4
18.6
98.2
78.5
19.7
88.7
72.0
16.6
95.1
74.3
20.7
97 .0
77.3
19.7
95.5
80.0
15.5
105.0
82.4
22.7
102.4
82.8
19.7
42 Rental income o f persons2......................................
22.3
23.3
25.3
24.1
24.5
24.9
25.5
26.4
26.9
43 Corporate profits1.....................................................
44
Profits before tax3 ................................................
45
Inventory valuation adjustment.........................
46
Capital consumption adjustment.......................
99.3
123.5
- 1 2 .0
- 1 2 .2
128.1
156.9
- 1 4 .1
- 1 4 .7
r139.9
'171.7
- 1 4 .6
-1 7 .2
123.1
154.8
-1 6 .9
-1 4 .6
125.4
161.7
-2 0 .6
-1 5 .6
140.2
174.0
-1 7 .8
-1 5 .9
149.0
172.8
-5 .9
- 1 7 .9
'144.8
'178.3
- 1 4 .1
- 1 9 .4
-2 4 .6
-2 0 .6
47 Net interest.................................................................
79.1
88.4
100.9
92.0
95.3
98.9
103.1
106.1
109.4
40
41
1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustments.
3 For after-tax profits, dividends, etc., see Table 1.50.
Source.—Survey o f Current Business (U.S. Dept, o f Commerce).
A57
B ank-reported D a ta
3.15
SH ORT-TERM LIABILITIES TO FO R EIG N ER S
By H older and by Type of Liability
Reported by Banks in the United States
Millions o f dollars, end o f period
1977
Holder, and type o f liability
1974
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.*
Mar.p
1 All foreigners, excluding the International
Monetary Fund...................................................
94,771
94,338 108,990 114,820 116,024 117,649 124,260 124,482 128,273 137,335
2
94,004
93,781
13,564
10,250
37,414
32,552
16,803
11,316
40,744
39,403
16,893
11,601
43,207
42,373
16,895
11,515
44,700
42,150
16,461
11,372
47,130
41,854
18,967
11,521
48,906
44,054
17,377
11,518
51,094
43,776
17,675
12,054
54,233
43,539
17,167
11,297
61,077
46,939
772
854
Payable in dollars...................................................
D eposits:
3
4
5
6
U.S. Treasury bills and certificates2..............
Other short-term liabilities3 ............................
14,051
9,907
35,662
34,384
7
108,266 114,075 115,260 116,817 123,449 123,765 127,500 136,480
Payable in foreign currencies................................
766
558
724
745
764
832
812
717
8 Nonmonetary international and regional
organizations4 ......................................................
3,171
5,293
5,450
3,555
3,396
3,258
2,899
3,248
2,696
3,159
9
3,171
5,284
5,445
3,523
3,376
3,237
2,889
3,237
2,687
3,155
139
111
497
2,424
139
148
2,554
2,443
290
205
2,701
2,250
214
134
1,875
1,300
173
140
802
2,261
173
142
767
2,155
231
139
706
1,813
186
129
959
1,963
180
120
1,111
1,277
245
129
1,317
1,464
8
5
32
20
20
11
11
9
4
10
11
12
13
14
D eposits:
D em and...........................................................
Tim e1................................................................
U.S. Treasury bills and certificates................
Pnvnh/p in fnreian rurrenriex. ..............................
15 Official institutions, banks, and other foreigners.. 91,600
89,046 103,540 111,265 112,628 114,391 121,361 121,234 125,576 134,175
90,834
88,496 102,821 110,552 111,884 113,579 120,560 120,528 124,813 133,325
13,912
9,796
35,165
31,961
13,426
10,119
34,860
30,092
16
17
18
19
20
Payable in dollars...................................................
Deposits:
D em and...........................................................
Time1................................................................
U.S. Treasury bills and certificates2 ..............
Other short-term liabilities3 ............................
21
16,513
11,142
38,042
37,123
16,679
11,468
41,331
41,073
16,722
11,375
43,898
39,889
16,288
11,229
46,364
39,699
18,736
11,382
48,200
42,242
17,191
11,390
50,135
41,813
17,495
11,934
53,122
42,262
16,922
11,168
59,759
45,475
Payable in foreign currencies................................
766
549
719
713
744
812
801
706
763
850
22 Official institutions6 ...................................................
53,079
49,530
53,619
56,805
59,835
62,214
64,527
66,514
70,471
77,512
23
52,952
49,530
53,619
56,805
59,835
62,214
64,527
66,514
70,471
77,512
2,951
4,167
34,656
11,178
2,644
3,423
34,199
9,264
3,394
2,321
37,725
10,179
3,133
1,987
40,802
10,882
2,990
1,903
43,424
11,518
2,557
1,848
45,849
11,960
3,528
1,797
47,820
11,382
2,673
1,788
49,752
12,301
2,782
2,532
52,689
12,468
2,804
1,718
59,307
13,682
24
25
26
27
98
Payable in dollars...................................................
Deposits:
Time1....................................................... ........
U.S. Treasury bills and certificates2..............
Other short-term liabilities5 ............................
Psiunhlo in frtroion S'urrenr'i/?0
127
29 Banks and other foreigners........................................
38,520
39,515
49,921
54,461
52,793
SI,111
56,834
54,721
55,105
56,663
30
31
37,881
29,467
38,966
28,966
49,202
36,610
53,747
39,701
52,049
38,011
51,365
37,169
56,033
41,708
54,014
39,622
54,342
39,994
55,813
41,430
8,231
1,885
232
19,119
7,534
1,873
335
19,224
9,104
2,297
119
25,089
9,676
1,842
125
28,057
9,677
1,858
127
26,349
9,666
1,805
141
25,557
10,933
2,040
141
28,595
10,274
1,995
152
27,202
10,570
1,876
165
27,383
10,118
1,796
161
29,354
32
33
34
35
36
37
38
39
40
41
Payable in dollars...................................................
Banks7 ..................................................................
D eposits:
D em and.......................................................
Time1...........................................................
U.S. Treasury bills and certificates............
Other short-term liabilities3 ........................
8,414
10,000
12,592
14,046
14,037
14,196
14,325
14,392
14,348
14,383
U.S. Treasury bills and certificates............
Other short-term liabilities5 ........................
2,729
3,744
277
1,664
3,248
4,823
325
1,604
4,015
6,524
198
1,854
3,870
7,638
404
2,133
4,055
1,614
346
2,022
4,065
7,576
373
2,182
4,275
7,546
240
2,265
4,245
7,606
231
2,310
4,143
7,526
268
2,411
4,000
7,654
291
2,438
Payable in foreign currencies................................
639
549
719
713
744
812
801
706
763
850
Other foreigners.................................................
D eposits:
Dem and.......................................................
1 Excludes negotiable time certificates o f deposit, which are included
in “Other short-term liabilities.”
2 Includes nonmarketable certificates o f indebtedness and Treasury
bills issued to official institutions o f foreign countries.
3 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 o f their head offices, bankers acceptances, commercial
paper, and negotiable time certificates o f deposit.
4 Principally the International Bank for Reconstruction and Develop
ment, and the Inter-American and Asian Development Banks.
5 Principally bankers acceptances, commercial paper, and negotiable
time certificates o f deposit.
6 Foreign central banks and foreign central governments and their
agencies, and Bank for International Settlements.
7 Excludes central banks, which are included in “ Official institutions.”
Note.—“Short-term obligations” are those payable on demand, or
having an original maturity o f 1 year or less.
A58
3.16
International Statistics n M ay 1978
SHORT-TERM LIABILITIES TO FO R EIG N ER S
Reported by Banks in the United States
By Country
Millions of dollars, end o f period
Area and country
1974
1977
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.*>
Mar.p
1
94,771
94,338 108,990 114,820 116,024 117,649 124,260 124,482 128,273 137,335
2 Foreign countries.........................................................
91,600
89,046 103,540 111,265 112,628 114,391 121,361
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
48,813
607
2,506
369
Denmark..............................................................
266
France................................................................... 4,287
9,429
248
2,577
3,234
Netherlands.........................................................
1,040
310
Portugal...............................................................
382
1,138
10,139
152
7,584
183
Yugoslavia.......................................................
4,073
Other Western Europe1....................................
82
U.S.S.R.................................................................
206
Other Eastern Europe.......................................
43,988
754
2,898
332
391
7,733
4,357
284
1,072
3,411
996
195
426
2,286
8,514
118
6,886
126
2,970
40
200
46,938
348
2,275
363
422
4,875
5,965
403
3,206
3,007
785
239
561
1,693
9,458
166
10,004
188
2,672
51
255
51,457
448
2,667
1,172
248
4,799
4,289
629
5,792
3,216
1,190
173
723
2,483
9,923
93
11,427
119
1,839
53
173
52,910
410
2,736
1,250
232
5,006
5,280
648
6,320
3,088
1,023
191
724
2,734
9,757
106
11,096
130
1,948
68
162
54,369
375
2,662
1,264
263
4,683
5,580
643
6,778
2,996
641
266
647
3,136
9,884
118
12,119
171
1,910
66
167
60,052
319
2,547
111
330
5,248
7,030
603
6,862
2,876
949
273
609
2,718
12,390
130
14,035
232
1,799
99
234
121,234 125,576 134,175
59,407
302
2,680
1,045
302
5,141
8,599
538
6,207
2,951
988
205
703
2,718
12,106
187
12,484
219
1,781
68
184
60,798
302
2,796
1,051
315
4,660
10,366
547
5,952
3,050
890
188
645
2,832
12,748
172
11,856
195
1,960
98
173
63,586
420
3,041
1,046
363
5,026
11,313
570
5,637
3,139
1,212
174
714
2,817
13,617
130
12,104
138
1,865
72
191
24
3,520
3,076
4,784
4,492
4,913
4,686
4,668
5,351
4,788
4,595
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
11,754
886
1,054
1,034
276
305
7
1,770
510
272
165
3,413
1,316
158
589
14,942
1,147
1,827
1,227
317
417
6
2,066
1,099
244
172
3,289
1,494
129
1,507
19,026
1,538
2,750
1,432
335
1,017
6
2,848
1,140
257
245
3,095
2,081
140
2,142
24,478
2,187
5,940
1,101
342
1,156
6
2,823
947
288
245
3,037
2,320
169
3,916
22,354
2,421
3,769
1,055
340
1,182
6
2,741
946
259
226
3,212
2,199
156
3,840
22,417
2,594
3,409
935
322
1,152
6
2,850
986
235
258
3,780
2,140
184
3,566
23,575
1,466
3,534
1,389
359
1,213
6
2,802
2,302
286
242
2,913
2,473
188
4,401
23,149
1,796
3,082
1,106
386
1,218
6
2,906
2,170
264
229
3,001
2,369
187
4,428
24,167
1,978
3,689
970
411
1,199
7
3,002
2,101
266
279
3,231
2,493
185
4,357
25,223
1,860
4,132
1,320
415
1,282
8
2,706
2,113
261
227
3,422
2,813
189
4,476
21,130
50
818
530
261
1,221
389
10,931
384
747
333
4,623
845
21,539
123
1,025
623
126
369
386
10,218
390
698
252
6,461
867
28,472
Al
989
892
648
340
391
14,380
437
627
275
8,073
1,372
26,463
44
924
1,153
850
453
416
11,444
600
559
264
8,527
1,230
28,165
48
899
993
886
905
465
13,272
596
630
271
7,933
1,267
28,948
52
926
971
980
739
490
14,835
572
603
251
7,365
1,164
29,219
53
1,012
1,091
975
406
558
14,634
601
696
262
7,679
1,252
29,697
54
1,040
1,033
1,025
892
460
14,507
605
668
256
7,978
1,178
32,159
48
994
1,118
1,011
502
453
17,044
737
616
307
8,142
1,187
36,854
56
1,026
1,157
957
487
484
21,756
681
643
314
8,000
1,292
3,551
103
38
130
84
2,814
383
3,373
343
68
169
63
2,239
491
2,300
333
88
143
35
1,116
585
3,023
484
68
208
36
1,564
664
2,786
393
61
232
33
1,403
664
2,560
331
31
240
30
1,214
715
2,532
404
66
175
39
1,154
694
2,503
346
100
192
41
1,178
645
2,643
357
79
252
50
1,264
640
2,469
341
51
185
45
1,225
621
2,831
2,742
89
2,128
2,014
114
2,019
1,911
108
1,352
1,206
146
1,500
1,348
152
1,411
1,269
142
1,314
1,154
161
1,128
937
190
1,022
875
147
1,449
1,243
205
3,171
5,293
5,450
3,555
3,396
3,258
2,899
3,248
2,696
3,159
2,900
202
69
5,064
187
42
5,091
136
223
3,186
157
212
3,079
134
183
2,922
128
208
2,636
98
165
2,998
79
171
2,435
73
189
2,966
63
130
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
Argentina.............................................................
Bahamas...............................................................
Chile......................................................................
Panama.................................................................
Peru.......................................................................
Uruguay...............................................................
Other Latin American republics.....................
Netherlands Antilles2........................................
Other Latin America.........................................
China, People’s Republic o f (M ainland).. . .
China, Republic o f (Taiwan)..........................
Hong K ong.........................................................
India......................................................................
Indonesia.............................................................
Israel.....................................................................
Japan....................................................................
Philippines...........................................................
Other.....................................................................
Egypt....................................................................
Zaire.....................................................................
Other....................................................................
Australia..............................................................
63 Nonmonetary international and regional
64
65
66
International............................................................
Other regional5.......................................................
For notes see bottom o f p. A59.
A59
B ank-reported D a ta
3.17 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Supplemental “Other” Countries 1
Millions of dollars, end of period
1975
1977
1976
1
2
3
Other Western Europe
Cyprus..........................
Iceland..........................
Ireland, Republic o f.
4
5
6
7
8
9
Other Eastern Europe
Bulgaria........................................
Czechoslovakia............................
German Democratic Republic.
Hungary........................................
Poland...........................................
Rumania.......................................
10
11
12
13
14
15
16
17
18
19
20
21
22
Other Latin American republics
Bolivia.........................................
Costa Rica..................................
Dominican Republic................
Ecuador.......................................
El Salvador................................
Guatemala..................................
H aiti............................................
Honduras....................................
Jamaica.......................................
Nicaragua...................................
Paraguay....................................
Surinam 2 ...................................
Trinidad and T obago..............
Other Latin America:
23
Bermuda..................
24
British West Indies.
Apr.
Dec.
38
30
43
69
40
237
19
32
17
13
66
44
14
11
3
11
74
29
34
21
11
19
77
19
110
124
169
120
171
260
38
99
41
133
43
117
134
170
150
212
368
48
137
59
158
50
13
44
133
146
275
319
178
409
47
137
35
120
49
30
167
131
Apr.
Dec.
58
32
131
34
46
15
17
65
51
157
175
326
329
227
513
57
152
32
165
59
14
202
135
170
280
311
214
392
68
210
43
133
60
17
85
199 237
2,434 4,142
170
177
197
1,311 2,284 1,874
LO N G -TER M LIABILITIES TO FO REIG N ER S
1976
1977
Dec.
Apr.
Dec.
Apr.
Dec.
112
51
25
26
27
28
29
30
31
32
33
34
35
36
37
Other Asia
Afghanistan...................
Bangladesh....................
Burma.............................
Cambodia......................
Jordan............................
Laos................................
Lebanon.........................
Malaysia............ ............
N epal..............................
Pakistan.........................
Singapore.......................
Sri Lanka (C eylon).. . .
Vietnam.........................
41
54
31
4
39
2
117
77
28
74
256
13
62
57
44
34
3
23
2
132
130
34
92
344
10
66
57
54
13
4
37
1
140
396
33
189
280
23
66
90
55
9
12
23
3
133
511
35
135
300
27
50
31
1
143
157
49
253
295
26
59
38
39
40
41
42
43
44
45
46
47
48
Other Africa
Ethiopia (incl. Eritrea),
Ghana.............................
Ivory C oast...................
Kenya.............................
Liberia............................
Southern Rhodesia___
Sudan..............................
Tanzania........................
Tunisia...........................
Uganda...........................
Zambia...........................
60
23
18
19
53
1
12
30
29
22
78
72
45
17
39
63
1
17
20
34
50
14
41
27
10
46
77
1
22
48
20
43
35
48
37
26
185
95
1
30
57
15
117
55
42
35
65
46
82
1
30
46
29
30
22
49
All Other
New Zealand.................
42
48
45
75
80
1 Represents a partial breakdown o f the amounts shown in the “Other”
categories on Table 3.16.
3.18
1975
Area and country
Area and country
2 Surinam included with Netherlands Antilles until January 1976.
Reported by Banks in the U nited States
Millions o f dollars, end o f period
Holder, and area or country
1 T otal..............................................................................
2 Nonmonetary international and regional
3 Foreign countries.........................................................
Official institutions, including central banks. ..
4
Banks, excluding central banks..........................
5
Other foreigners......................................................
6
Area or country:
1977
1974
1975
1,285
1978
1976
1,812
2,449
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.*
Mar.p
2,526
2,579
2,747
2,781
2,726
2,721
2,910
822
415
269
330
352
352
386
388
418
432
464
124
261
79
1,397
931
366
100
2,180
1,337
621
222
2,196
1,074
713
409
2,227
1,089
715
422
2,396
1,313
707
376
2,395
1,296
716
384
2,338
1,226
719
393
2,303
1,201
705
397
2,479
1,176
749
553
7
8
9
United Kingdom................................................
226
146
59
330
214
66
570
346
124
708
307
200
719
308
205
704
309
200
696
307
180
701
313
176
679
310
177
845
321
199
10
11
Canada......................................................................
Latin America.........................................................
19
115
23
140
29
248
27
341
27
339
26
330
35
343
45
342
44
351
45
394
12
13
Middle East oil-exporting countries1.................
94
7
894
8
1,286
46
1,056
38
1,064
53
1,285
42
1,285
29
1,216
29
1,191
32
1,156
33
14
15
African oil-exporting countries 2 .........................
Other Africa........................................................ ;.
*
*
*
1
22
1
6
*
*
*
23
1
2
1
16
*
*
1
*
1
*
1
*
5
1
5
*
5
*
5
*
1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Comprises Algeria, Gabon, Libya, and Nigeria.
N ote.—Long-term obligations are those having an original maturity
o f more than 1 year.
NOTES TO TABLE 3.16:
1 Includes Bank for International Settlements.
2 Surinam included with Netherlands Antilles until January 1976.
3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
4 Comprises Algeria, Gabon, Libya, and Nigeria.
5 Asian, African, and European regional organizations, except BIS,
which is included in “Other Western Europe.”
A60
International Statistics □ M ay 1978
3.19
SHORT-TERM CLAIM S ON FO REIG N ER S
By Country
Reported by Banks in the United States
Millions o f dollars, end o f period
1977
Area and country
1974
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
Mar.P
1 Total..............................................................................
39,056
50,231
69,237
69,125
75,104
74,726
79,915
81,492
80,512
85,542
2 Foreign countries.........................................................
39,055
50,229
69,232
69,114
75,094
74,714
79,906
81,482
80,510
85,533
3 Europe...........................................................................
4
Austria......................................................................
5
Belgium-Luxembourg............................................
6
Denmark..................................................................
7
8
France.......................................................................
9
Germany...................................................................
10
Greece.......................................................................
11
Italy...........................................................................
12
Netherlands.............................................................
13
14
Portugal....................................................................
15
Spain.........................................................................
16
Sweden......................................................................
17
Switzerland...............................................................
18
Turkey......................................................................
19
United Kingdom....................................................
20
Yugoslavia...............................................................
21
Other Western Europe..........................................
22
U.S.S.R.....................................................................
23
Other Eastern Europe...........................................
6,255
21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,580
22
22
46
131
8,987
15
352
49
128
1,471
416
49
370
300
71
16
249
167
237
86
4,718
38
27
103
127
12,220
44
662
85
139
1,445
517
79
929
304
98
65
373
180
485
176
6,277
41
52
99
171
13,352
117
558
140
95
1,356
615
103
1,065
447
109
148
346
139
700
337
6,766
34
43
89
146
13,767
75
782
126
111
1,341
768
98
1,104
304
120
138
471
172
681
329
6,623
28
259
82
155
13,019
52
751
107
106
1,320
645
107
1,157
352
122
120
401
143
614
344
6,369
29
50
81
150
15,458
52
793
130
101
1,616
655
94
1,284
352
131
138
414
169
633
312
8,167
56
89
100
173
14,594
95
897
140
104
1,367
687
86
1,130
373
141
103
425
182
719
.286
7,416
42
127
112
162
14,775
98
787
127
108
1,598
663
112
1,121
379
162
117
424
158
840
272
7,451
36
61
90
170
16,057
72
812
121
115
1,852
794
119
1,118
468
140
116
416
127
803
276
8,397
34
33
77
168
2,776
2,817
3,049
3,400
3,626
3,803
3,716
4,052
4,216
4,407
25 Latin America.............................................................
26
27
Bahamas...................................................................
28
Brazil.........................................................................
29
Chile.........................................................................
30
Colombia.............................................................
31
Cuba.........................................................................
32
M exico......................................................................
33
Panama.................................................. ..................
34
Peru...........................................................................
35
Uruguay....................................................................
36
Venezuela.................................................................
37
Other Latin American republics.........................
38
Netherlands Antilles1............................................
39
Other Latin America.............................................
12,377
720
3,405
1,418
290
713
14
1,972
505
518
63
704
852
62
1,142
20,532
1,203
7,570
2,221
360
689
13
2,802
1,052
583
51
1,086
967
49
1,885
34,270
964
15,336
3,322
387
586
13
3,432
1,257
704
38
1,564
1,125
40
5,503
33,142
939
13,593
3,011
431
528
13
3,488
1,063
785
42
1,656
1,224
75
6,293
38,051
1,076
18,930
3,121
435
570
10
3,261
1,431
737
Al
1,654
1,290
61
5,426
37,890
1,085
18,115
2,962
443
554
15
3,201
1,652
735
60
1,714
1,316
139
5,898
40,377
1,180
19*678
3,084
507
573
10
2,997
1,262
769
71
1,840
1,466
86
6,854
42,975
1,214
22,131
2,938
507
548
14
2,993
1,801
774
59
1,736
1,491
92
6,678
41,425
1,131
21,310
2,967
502
541
4
2,791
1,673
760
56
1,891
1,461
80
6,259
43,762
1,181
22,529
3,148
502
‘ 480
3
2,851
1,544
767
55
1,823
1,472
106
7,301
40
41
42
43
44
45
46
47
48
49
50
51
52
China, People’s Republic o f (Mainland).........
China, Republic of (Taiwan)...............................
Hong K ong.............................................................
India..........................................................................
Indonesia.................................................................
Israel..........................................................................
Japan.............. ..........................................................
Korea........................................................................
Philippines...............................................................
Thailand...................................................................
Middle East oil-exporting countries2................
Other.........................................................................
16,226
4
500
223
14
157
255
12,518
955
372
458
330
441
16,057
22
736
258
21
102
491
10,776
1,561
384
499
524
684
17,672
3
991
271
41
76
551
10,997
1,714
559
422
1,312
735
16,566
27
1,303
360
59
67
304
9,303
2,001
477
617
1,340
708
16,856
20
1,321
357
48
97
348
9,341
1,998
489
612
1,531
695
17,315
22.
1,275
466
54
60
347
9,578
1,876
508
594
1,783
752
17,766
12
1,371
465
35
77
441
9,778
2,070
470
616
1,583
849
17,289
14
1,265
435
Al
54
368
9,476
2,208
476
618
1,525
803
17,524
15
1,308
420
54
64
362
9,708
2,066
528
630
1,570
795
18,594
12
1,302
497
80
45
351
10,252
1,844
554
641
2,035
982
53 A frica............................................................................
54
Egypt.........................................................................
55
M orocco...................................................................
56
South Africa............................................................
57
Zaire.........................................................................
58
Oil-exporting countries3.......................................
59
Other.........................................................................
855
111
18
329
98
115
185
1,228
101
9
545
34
231
308
1,481
127
13
763
29
253
296
1,656
134
48
802
15
306
350
1,828
155
44
881
7
378
362
1,749
130
31
823
7
358
399
1,728
114
30
840
7
321
416
1,757
122
48
868
8
312
400
1,768
111
34
882
8
360
373
1,826
103
29
944
7
318
424
60 Other countries............................................................
61
Australia...................................................................
62
All other...................................................................
565
466
99
609
535
73
540
441
99
998
863
135
966
839
127
939
815
124
861
743
117
814
687
127
802
661
141
887
125
162
63 Nonmonetary international and regional
organizations...........................................................
*
1
5
10
9
12
9
10
2
9
24
1 Includes Surinam until January 1976.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
3 Comprises Algeria, Gabon, Libya, and Nigeria.
B ank-reported D a ta
3.20
SH ORT-TERM CLAIM S ON FO R E IG N E R S
By Type of Claim
A61
Reported by Banks in the United States
Millions o f dollars, end o f period
1977
Type
7
8
9
11
12
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
Mar.p
85,542
39,056
50,231
69,237
69,125
75,104
74,726
79,915
81,492
80,512
37,859
48,888
67,592
67,375
73,104
72,849
77,813
79,361
78,442
83,470
11,287
Official institutions, including central banks.
381
7,332
Banks, excluding central banks.......................
All other, including nonmonetary interna
3,574
tional and regional organizations-----------
13,200
613
7,635
18,016
1,448
10,974
18,135
1,007
11,736
18,040
1,085
11,305
17,486
1,048
11,103
19,962
1,019
12,979
18,484
1,101
11,517
18,603
1,093
11,773
21,230
1,023
14,211
4,951
5,594
5,392
5,649
5,335
5,964
5,866
5,737
5,995
5,637
11,237
9,698
5,467
11,147
19,075
5,756
12,358
31,462
6,025
13,645
29,569
6,005
13,735
35,324
6,045
13,462
35,856
6,184
14,212
37,456
6,342
13,592
40,943
6,365
13,689
39,785
6,680
13,888
41,672
1,196
1,342
1,645
1,750
2,000
1,876
2,101
2,131
2,070
2,072
669
656
1,063
840
922
879
941
940
895
902
289
238
314
372
89
493
265
645
356
722
405
593
454
707
370
822
338
837
407
764
1
3
4
5
6
1974
Collections outstanding........................................
Acceptances made for accounts o f foreigners...
Foreign government securities, commercial
13
1 Includes claims o f U.S. banks on their foreign branches and claims made to, and acceptances made for, foreigners; drafts drawn against
o f U.S. agencies and branches o f foreign banks on their head offices and
foreigners, where collection is being made by banks and bankers for
their own account or for account o f their customers in the United States;
foreign branches o f their head offices.
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
N ote.—Short-term claims are principally the following items payable
by U.S. monetary authorities.
on demand or with a contractual maturity o f not more than 1 year: loans
3.21
LO N G -TER M CLAIM S O N FO R E IG N E R S
R eported by Banks in the United States
Millions o f dollars, end o f period
1977
Type, and area or country
1974
1975
1978
1976
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.P
Mar.p
12,631
12,716
12,338
12,644
12,754
12,840
12,946
7,179
9,536
By type:
2
Payable in dollars....................................................
7,099
9,419
11,750
12,416
12,486
12,106
12,389
12,513
12,593
12,692
3
4
5
6
6,490
1,324
929
8,316
1,351
1,567
10,093
1,407
2,232
10,609
1,761
2,321
10,760
1,777
2,419
10,421
1,794
2,289
10,671
1,918
2,385
10,822
1,911
2,405
10,870
1,961
2,385
11,055
1,956
2,466
1
Official institutions, including central banks
Banks, excluding central banks..................
All other, including nonmonetary interna
tional and regional organizations..........
11,898
4,237
5,399
6,454
6,527
6,564
6,338
6,368
6,506
6,524
6,633
7
Other long-term claim s.........................................
609
1,103
1,656
1,807
1,726
1,685
1,718
1,691
1,723
1,637
8
Payable in foreign currencies................................
80
116
148
216
229
232
254
240
247
254
By area or country:
9
Europe......................................................................
10
Canada.....................................................................
11
Latin America........................... .............................
1,908
501
2,614
2,704
555
3,468
3,328
637
4,856
3,707
456
5,381
3,664
461
5,542
3,402
424
5,572
3,484
434
5,776
3,436
425
5,915
3,429
414
6,076
3,370
407
6,270
12
13
14
15
Asia............................................................................
Japan.....................................................................
Middle East oil-exporting countries1............
Other Asia...........................................................
1,619
258
384
977
1,795
296
220
1,279
1,904
382
146
1,376
1,872
359
161
1,353
1,768
339
173
1,257
1,742
320
154
1,268
1,776
317
181
1,277
1,800
337
193
1,270
1,760
297
211
1,251
1,738
304
195
1,239
16
17
18
Africa........................................................................
Oil-exporting countries2...................................
Other.....................................................................
366
62
305
747
151
596
890
271
619
873
221
651
857
201
657
850
176
674
855
190
664
863
188
675
848
172
677
862
177
685
19
All other countries3...............................................
171
267
282
343
423
348
319
316
313
301
1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Comprises Algeria, Gabon, Libya, and Nigeria.
3 Includes nonmonetary international and regional organizations.
A62
3.22
International Statistics □ M ay 1978
FO R E IG N BRANCHES O F U.S. BANKS
Balance Sheet D ata
Millions o f dollars, end o f period
1977
Asset account
1974
1975
1978
1976
Dec.
Aug.
Sept.
Oct.
Nov.
D ec.'
Jan.
Feb.p
All foreign countries
1
151,905
176,493
219,420
234,592
'244,998
'247,023
'249,414
259,399
258,969
257,142
2
3
4
6,900
4,464
2,435
6,743
3,665
3,078
7,889
4,323
3,566
8,192
4,630
3,562
11,914
8,231
3,683
r8 ,233
4,535
3,698
9,074
5,238
3,836
11,764
7,810
3,953
10,012
5,932
4,080
9,530
5,410
4,119
Claims on foreigners.......................... 138,712
Other branches o f parent bank. . 27,559
60,283
Other banks....................................
4,077
Official institutions.......................
46,793
Nonbank foreigners.....................
163,391
34,508
69,206
5,792
53,886
204,486
45,955
83,765
10,613
64,153
218,869
48,317
85,533
13,829
71,190
r225,165
'52,074
'87,746
14,193
'71,152
'230,333
'51,903
'91,871
14,456
'72,103
'231,826
'54,285
'89,213
14,854
'73,474
238,999
56,058
91,884
14,634
76,422
239,753
55,359
92,214
15,255
76,926
238,676
54,501
92,278
15,035
76,862
5
6
7
8
9
Parent bank....................................
Other................................................
Other assets........................................
6,294
6,359
7,045
7,530
7,919
'8,457
'8,514
8,637
9,204
8,937
11 Total payable in U.S. dollars..............
105,969
132,901
167,695
179,034
'188,181
'187,511
'188,405
194,279
193,284
189,777
10
12
13
14
Claims on United States...................
Parent bank....................................
Other................................................
6,603
4,428
2,175
6,408
3,628
2,780
7,595
4,264
3,332
7,748
4,560
3,188
11,434
8,177
3,257
7,690
4,448
'3,243
r8 ,504
5,145
3,358
11,172
1,619
3,493
9,390
5,781
3,609
8,768
5,162
3,606
15
16
17
18
19
Claims on foreigners..........................
Other branches o f parent bank..
Other banks....................................
Nonbank foreigners.....................
96,209
19,688
45,067
3,289
28,164
123,496
28,478
55,319
4,864
34,835
156,896
37,909
66,331
9,022
43,634
167,716
39,995
66,826
12,232
48,663
'173,212
42,983
'68,790
12,705
'48,734
' 175,858
42,963
'71,592
12,779
'48,794
' 175,785
'44,338
'68,925
12,887
'49,634
179,103
44,560
70,787
12,621
51,135
179,417
43,924
70,520
13,078
51,895
176,854
42,965
69,657
13,029
51,204
20
Other assets........................................
3,157
2,997
3,204
3,570
3,535
3,963
4,117
4,004
4,478
4,155
United Kingdom
21 Total, all currencies...........................
69,804
74,883
81,466
83,270
88,033
90,154
88,748
90,933
90,789
89,626
22
23
24
Claims on United States.................
Parent bank..................................
Other..............................................
3,248
2,412
116
2,392
1,449
943
3,354
2,376
978
2,307
1,397
910
3,422
2,556
866
2,729
1,789
940
2,955
2,123
833
4,341
3,518
823
3,701
2,928
773
2,577
1,775
801
25
26
27
28
29
Claims on foreigners......................
Other branches o f parent bank,
Other banks..................................
Official institutions.....................
Nonbank foreigners...................
64,111
12,724
32,701
788
17,898
70,331
17,557
35,904
881
15,990
75,859
19,753
38,089
1,274
16,743
78,607
20,015
38,784
1,983
17,826
82,154
22,363
39,576
1,955
18,259
84,766
22,178
41,923
2,052
18,613
83,331
21,476
40,530
2,145
19,180
84.016
22.017
39,899
2,206
19,895
84,346
21,427
40,605
2,303
20,010
84,393
21,114
40,996
2,100
20,183
30
Other assets......................................
2,445
2,159
2,253
2,355
2,458
2,659
2,462
2,576
2,742
2,656
31 Total payable in U.S. dollars...........
49,211
57,361
61,587
62,686
66,895
67,243
65,369
66,635
65,744
63,870
32
33
34
Claims on United States.................
Parent bank..................................
Other..............................................
3,146
2,468
678
2,273
1,445
828
3,275
2,374
902
2,130
1,348
781
3,259
2,527
732
2,545
1,748
797
2,744
2,062
682
4,100
3,431
669
3,443
2,815
628
2,186
1,558
628
35
36
37
38
39
Claims on foreigners.......................
Other branches o f parent bank
Other banks.................................
Official institutions.....................
Nonbank foreigners................. .
44,694
10,265
23,716
610
10,102
54,121
15,645
28,224
648
9,604
57,488
17,249
28,983
846
10,410
59,419
17,550
29,199
1,574
11,095
62,584
19,865
29,808
1,555
11,355
63,596
19,497
31,134
1,595
11,370
61,587
18,539
29,560
1,639
11,849
61,408
18,947
28,530
1,669
12,263
61,094
18,102
28,661
1,770
12,560
60,521
17,782
28,641
1,640
12,457
40
Other assets.....................................
1,372
967
824
1,138
1,052
1,103
1,038
1,126
1,208
1,163
Bahamas and Caymans
41 Total, all currencies............
31,733
45,203
66,114
73,284
78,430
75,962
76,769
79,053
80,040
79,662
2,464
1,081
1,383
3,229
1,477
1,752
3,508
1,141
2,367
4,875
2,465
2,410
7,455
4,861
2,595
4,687
2,104
2,583
5,259
2,552
2,707
5,765
3,038
2,728
4,994
2,097
2,897
5,837
2.918
2.919
28,453
3,478
11,354
2,022
11,599
41,040
5,411
16,298
3,576
15,756
62,048
8,144
25,354
7,105
21,445
67,124
8,259
25,482
8,599
24,783
69,680
9,828
26,368
9,203
24,281
69,685
9,266
27,131
9,207
24,082
69,839
10,611
25,912
9,198
24,119
71,672
11,120
27,940
9,109
23,503
73,431
11,272
28,795
9,303
24,061
72,224
11,025
28,156
9,428
23,615
42
43
44
Claims on United States.
Parent bank.................
Other.............................
45
46
47
48
49
Claims on foreigners........................
Other branches o f parent bank.
Other banks..................................
Official institutions.....................
Nonbank foreigners...................
50
Other assets...........................
815
933
1,217
1,285
1,294
1,589
1,670
1,616
1,615
1,601
51 Total payable in U.S. dollars.
28,726
41,887
62,705
68,192
72,932
70,415
71,728
73,988
74,790
74,233
A63
O verseas Branches
3.22 Continued
1977
Liability account
1974
1975
1978
1976
Dec.
Aug.
Sept.
Oct.
Nov.
D ec.'
Jan.
Feb.p
All foreign countries
151,905
176,493
219,420
234,592
'244,998
'247,023
'249,414
259,399
258,969
257,142
53
54
55
To United States..............................
Parent bank..................................
Other..............................................
11,982
5,809
6,173
20,221
12,165
8,057
32,719
19,773
12,946
36,360
19,438
16,922
40,328
20,073
20,255
39,952
22,706
17,246
'42,572
25,037
17,535
44,495
24,882
19,613
46,113
28,636
17,477
46,101
27,304
18,798
56
57
58
59
60
To foreigners....................................
Other branches of parent bank.
Other banks..................................
Official institutions.....................
132,990
26,941
65,675
20,185
20,189
149,815
34,111
72,259
22,773
20,672
179,954
44,370
83,880
25,829
25,877
189,743
47,221
86,457
27,776
28,289
r197,151
'49,963
91,124
28,014
'28,050
' / 98,771
'49,903
'89,542
29,888
'29,437
' 198,866
51,511
89,649
28,667
'29,038
206,496
53,157
94,140
28,110
31,088
204,435
51,882
90,735
28,677
33,140
202,935
50,861
90,710
28,840
32,524
61
Other liabilities................................
6,933
6,456
6,747
8,488
'7,519
'8,300
'7,977
8,408
8,421
8,106
62 Total payable in U.S. dollars............
107,890
135,907
173,071
183,263
'192,943
'192,723
'193,246
199,047
198,199
194,871
52 Total, all currencies.............................
63
64
65
To United States..............................
Parent bank..................................
Other..............................................
11,437
5,641
5,795
19,503
11,939
7,564
31,932
19,559
12,373
35,482
19,168
16,314
39,403
19,759
19,644
38,915
22,398
16,517
41,476
24,745
16,731
43,230
24,562
18,669
44,895
28,333
16,562
44,763
26,993
17,771
66
67
68
69
70
To foreigners....................................
Other branches o f parent bank.
Other banks..................................
Official institutions.....................
Nonbank foreigners...................
92,503
19,330
43,656
17,444
12,072
112,879
28,217
51,583
19,982
13,097
137,612
37,098
60,619
22,878
17,017
142,684
39,483
61,117
24,481
17,604
'149,461
'41,793
65,547
24,695
'17,427
' 149,417
'41,543
62,892
26,366
'18,616
'147,566
'42,681
62,094
25,113
'17,679
151,285
43,191
64,872
23,972
19,250
148,851
41,802
61,562
24,546
20,940
145,852
40,684
60,621
24,443
20,103
71
Other liabilities................................
3,951
3,526
3,527
5,097
4,079
4,391
4,204
4,532
4,454
4,256
88,748
90,933
90,789
89,626
6,008
1,253
4,755
6,785
1,550
5,236
82,160
9,999
36,915
19,309
15,937
80,331
9,037
36,764
19,580
14,950
United Kingdom
69,804
73
74
75
76
77
78
79
80
Other..............................................
To foreigners....................................
Other branches of parent bank.
Other banks..................................
Official institutions.....................
81
83
84
85
86
87
88
89
90
To foreigners....................................
Other branches o f parent bank.
Official institutions.....................
Nonbank foreigners...................
91
74,883
81,466
83,270
88,033
90,154
3,978
510
3,468
5,646
2,122
3,523
5,997
1,198
4,798
7,933
1,611
6,322
7,922
1,425
6,496
7,310
1,364
5,946
7,237
1,375
5,862
7,753
1,451
6,302
63,409
4 , 762
32,040
15,258
11,349
67,240
6,494
32,964
16,553
11,229
73,228
7,092
36,259
17,273
12,605
72,848
8,395
34,163
17,366
12,923
77,580
8,934
37,024
18,553
13,070
79,837
9,187
36,676
20,366
13,608
79,087
9,491
36,974
19,555
13,066
80,736
9,376
37,893
18,318
15,149
2,418
1,997
2,241
2,488
2,532
3,007
2,424
2,445
2,621
2,509
49,666
57,820
63,174
63,334
67,689
68,594
66,289
67,573
66,619
65,021
3,744
484
3,261
5,415
2,083
3,332
5,849
1,182
4,666
7,676
1,563
6,113
7,622
1,363
6,259
7,004
1,288
5,716
7,012
1,339
5,673
7,480
1,416
6,063
5,737
1,222
4,515
6,479
1,524
4,955
44,594
3,256
20,526
13,225
7,587
51,447
5,442
23,330
14,498
8,176
56,372
5,874
25,527
15,423
9,547
54,539
7,131
23,254
15,252
8,902
58,962
7,535
25,984
16,430
9,013
60,304
7,724
25,306
18,053
9,221
58,285
7,871
24,605
17,171
8,638
58,977
7,505
25,608
15,482
10,382
59,671
8,164
24,015
16,459
11,033
57,386
7,211
23,352
16,541
10,282
1,328
959
953
1,119
1,105
1,286
991
1,116
1,210
1,156
1Bahamas anid Cayman:5
92 Total, all currencies...........................
31,733
45,203
66,774
73,284
78,430
75,962
76,769
79,053
80,040
79,662
93
94
95
To United States............................
Parent bank................................
Other............................................
4,815
2,636
2,180
11,147
7,628
3,520
22,721
16,161
6,560
24,487
15,288
9,198
28,741
16,524
12,218
28,442
18,538
9,905
30,641
20,572
10,069
32,140
20,921
11,219
35,772
24,713
11,060
35,044
23,372
11,672
96
97
98
99
100
To foreigners..................................
Other branches o f parent bank
Other banks................................
Official institutions...................
Nonbank foreigners.................
26,140
7,702
14,050
2,377
2,011
32,949
10,569
16,825
3,308
2,248
42,899
13,801
21,760
3,573
3,765
46,468
13,206
23,881
4,592
4,789
48,328
13,756
26,933
3,184
4,455
46,034
13,844
23,678
3,357
5,155
44,571
13,308
23,374
3,053
4,836
45,294
12,818
24,717
3,000
4,759
42,912
11,642
22,256
3,183
5,831
43,262
11,598
22,707
3,197
5,761
101
Other liabilities..............................
778
1,106
1,154
2,330
1,361
1,485
1,557
1,619
1,356
1,356
102 Total payable in U.S. dollars..........
28,840
42,197
63,417
68,627
73,733
71,187
72,286
74,464
75,438
75,204
A64
International Statistics □ M ay 1978
3.23 MARKETABLE U.S. TREASURY BONDS AN D NOTES Foreign Holdings and Transactions
Millions o f dollars
1978
Country or area
1976
1977
1978
1977
Jan.Mar.p
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.*5
Mar.p
Holdings (end of period) 4
1 Estimated total.......................
15,799
38,620
31,066
34,324
37,661
38,620
40,101
40,380
41,240
2 Foreign countries...................
12,765
33,874
27,207
30,323
33,285
33,874
35,648
35,479
36,485
Europe..............................
•Belgium-Luxembourg..
Germany.........................
Netherlands...................
Sweden............................
Switzerland.....................
United Kingdom..........
Other Western Europe.
Eastern Europe.............
2,330
14
764
288
191
261
485
323
4
13,916
19
3,168
911
100
A ll
8,888
349
4
10,163
19
1,957
719
125
488
6,506
343
4
12,603
20
2,165
821
125
474
8,640
353
4
14,003
20
2,742
911
100
476
9,419
331
4
13,916
19
3,168
911
100
A ll
8,888
349
4
15,044
19
3,373
930
125
391
9,839
362
4
14,895
19
3,494
954
125
401
9,513
384
4
15,206
19
3,816
1,029
155
400
9,418
363
4
12
Canada................................
256
288
292
294
293
288
285
250
251
13
14
15
16
Latin America..................................
Venezuela......................................
Other Latin America republics.
Netherlands Antilles 1...............
313
149
36
118
551
199
17
170
516
183
18
158
519
183
21
158
533
199
11
167
551
199
17
170
543
201
10
162
587
241
14
162
551
200
8
162
17
18
Asia....................................................
Japan..............................................
9,323
2,687
18,745
6,860
15,941
5,635
16,611
5,958
18,104
6,547
18,745
6,860
19,413
7,463
19,378
7,617
20,120
8,313
19
Africa.................................................
279
279
348
362
362
362
351
All other........................................
543
*
362
20
11
16
18
5
11
2
7
6
3,034
4,746
3,859
4,001
4,376
4,746
4,453
4,901
4,755
2,906
128
4,646
100
3,759
100
3,900
100
4,276
100
4,646
100
4,358
95
4,781
120
4,640
115
3
4
5
6
7
8
9
10
11
21 Nonmonetary international and regional
organizations.........................................
22
23
International......................
Latin American regional.
Transactions (net purchases, or sales ( —), during period)
24 Total..............................................................................
8,096
22,823
2,260
3,483
3,257
3,337
959
1,481
278
861
25 Foreign countries........................................................
5,393
21,110
2,611
2,564
3,116
2,962
589
1,774
-1 6 9
1,006
26
27
5,116
276
20,328
782
2,424
189
2,493
71
3,052
65
2,885
76
598
-9
1,714
59
-2 7 7
108
986
22
2,704
1,713
10
919
141
376
370
-2 9 2
447
-1 4 5
3,887
221
4,451
-1 8 1
-5 5
-1 0
161
284
869
69
324
13
56
-1 8 4
72
-1 0
Official institutions................................................
Other foreign..........................................................
28 Nonmonetary international and regional
M emo: Oil-exporting countries
29
Middle East 2 ..........................................................
30
Africa 3.....................................................................
1 Includes Surinam until January 1976.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
3 Comprises Algeria, Gabon, Libya, and Nigeria.
3.24
4 Estimated official and private holdings o f marketable U.S. Treasury
securities with an original maturity o f more than I year. Data are based
on a benchmark survey o f holdings as o f Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions o f foreign countries.
FO R E IG N O FFIC IA L ASSETS H ELD AT FEDERAL RESERVE BANKS
Millions o f dollars, end o f period
1977
Assets
1974
1975
1978
1976
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 D eposits............................................................. ..........
418
353
352
425
416
424
422
445
352
481
Assets held in custody:
2
U.S. Treasury securities1......................................
3
Earmarked gold2 ...................................................
55,600
16,838
60,019
16,745
66,532
16,414
83,832
15,988
89,497
15,872
91,962
15,988
95,945
15,726
98,465
15,735
105,362
15,727
102,044
15,686
1 Marketable U.S. Treasury bills, certificates o f indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and in foreign currencies.
2 The value o f earmarked gold increased because o f the changes in
par value o f the U.S. dollar in May 1972 and in October 1973.
N ote.—Excludes deposits and U.S. Treasury securities held for inter
national and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
o f the United States.
A65
Investm ent transactions
3.25 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1978
Transactions, and area or country
1976
1977
1978
1977
Jan.Mar.^
Sept.
Oct.
Nov.
Deo.
Jan.
Feb.p
Mar.p
U.S. corporate securities
Stocks
1
2
18,227
15,485
14,154
11,479
3,262
2,593
1,012
847
973
752
1,282
899
1,235
945
1,024
909
825
762
1,413
921
3
Net purchases, or sales ( —) ..................................
2,743
2,676
670
165
222
383
290
115
63
492
4
Foreign countries.....................................................
2,730
2,661
689
170
223
385
286
116
63
510
United Kingdom............................................
329
256
68
-1 9 9
-1 0 0
333
1,006
40
291
22
152
613
391
55
130
-2 7
-5 8
311
57
5
14
-1 8
6
80
109
27
37
5
2
52
200
1
64
10
34
106
156
-3
58
9
-3
109
30
-1 2
45
-4
-5 4
60
41
-2
33
-1 3
-1 6
57
319
68
52
-9
12
194
324
152
1,803
119
7
-4
65
127
1,389
59
5
8
-4 8
3
325
12
3
2
-3
-3
108
8
2
1
20
-4
93
2
2
2
21
27
128
8
*
2
14
15
100
1
*
*
-1 9
-9
107
6
«
1
-2 6
-4
48
1
2
1
-3
17
170
5
1
*
13
15
-1 9
-5
-1
-2
5,529
4,322
7,766
3,432
1,577
1,303
503
383
942
292
743
226
5
6
7
8
9
10
11
12
13
14
15
16
Canada..................................................................
Latin America.....................................................
Middle East1.......................................................
Other Asia............................................................
17
Nonmonetary international and regional
organizations...................................................
Bonds2
18
19
4
354
267
-1
459
377
1
-1 9
524
348
593
579
15
20
Net purchases, or sales ( —) .................................
1,207
4,334
273
120
650
517
87
83
176
21
Foreign countries.....................................................
1,248
4,238
267
123
650
507
41
101
131
35
22
23
24
25
26
27
Europe..................................................................
France...............................................................
Germany..........................................................
Netherlands.....................................................
91
39
-4 9
-2 9
158
23
2,005
-3 9
59
72
158
1,702
38
3
27
-1 2
1
18
33
1
3
21
12
6
376
*
5
2
-7
324
320
-5
4
20
-7
324
19
-1 1
9
*
-6
28
133
-4
1
7
-7
125
32
1
7
1
3
22
-1 2 7
5
19
-2 0
5
-1 2 9
28
29
30
31
32
33
Canada.................................................................
Other Asia............................................................
Africa....................................................................
Other countries...................................................
96
94
1,179
-1 6 5
-2 5
-2 1
141
64
1,695
338
-6
*
19
27
153
29
-1
*
15
13
79
-1 4
-3
*
4
11
124
135
*
*
1
-1
159
27
*
*
-1
3
4
16
*
*
7
11
-5 9
9
*
*
1
6
75
11
-1
*
5
11
137
9
*
*
Nonmonetary international and regional
organizations...................................................
-4 1
96
7
10
46
-1 8
45
-2 0
34
United Kingdom............................................
-2
*
Foreign securities
-3 2 3
1,937
2,259
-4 0 4
2,265
2,669
330
872
542
30
168
• 138
106
247
141
34
214
180
59
291
232
103
255
152
113
280
167
114
337
223
38 Bonds, net purchases, or sales ( —) ......................... - 8 ,7 3 0
39
4,932
Foreign purchases...................................................
40
Foreign sales........................................................... 13,662
- 5 ,0 0 5
8,420
13,424
- 1 ,2 4 3
2,015
3,258
-6 5 0
695
1,345
-2 8 1
786
1,066
-3 2 0
593
913
-3 3 0
885
1,215
-5 6 9
691
1,260
-1 7 6
522
698
-4 9 7
802
1,300
36
37
41 Net purchases, or sales ( —) of stocks and bonds.. -9 ,0 5 3
-5 ,4 0 9
-9 1 3
-6 2 0
-1 7 5
-2 8 5
-2 7 1
-4 6 6
-6 4
-3 8 3
42 Foreign countries......................................................... -7 ,1 5 5
43
-8 4 3
44
-5 ,2 4 5
*
45
Latin Am erica........................................................
46
-6 9 9
47
Africa........................................................................
48
48
-4 1 6
-3 ,8 5 2
-1 ,0 9 9
-2 ,4 0 2
-8 0
-5
2
-2 6 7
-6 9 1
330
-6 2 7
100
-4 9 8
-2
6
-6 1 3
-2 4
-5 7 3
35
29
1
-8 1
-2 4
-3 3
45
-1 7 0
136
-2
1
-3 0 8
-2 6 0
9
-2
-5 7
*
2
-2 9 3
108
-1 7 5
-6 8
51
1
-2 1 0
-4 7 3
98
-4 4 6
-6
-1 1 4
-2
-3
17
95
-4
37
-1 1 3
*
2
-2 3 5
137
-1 7 7
69
-2 7 0
*
6
49 Nonmonetary international and regional
organizations....................................................... - 1 ,8 9 8
- 1 ,5 5 7
-2 2 1
-6
-1 5 1
23
22
7
-8 0
-1 4 8
2 Includes State and local government securities, and securities o f U.S.
1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
Govt, agencies and corporations. Also includes issues o f new debt securities
States).
sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.26
International Statistics □ M ay 1978
SHORT-TERM LIABILITIES TO A N D CLAIM S ON FO REIG N ER S
in the United States
Reported by N onbanking Concerns
Millions o f dollars, end o f period
1976
1977
1976
Type, and area or country
Dec.
Mar.
June
Sept.
Dec.p
1977
Dec.
Mar.
Liabilities to foreigners
1
By type:
2
Payable in dollars...................................................
3
4
5
Payable in foreign currencies................................
Deposits with banks abroad in reporter’s
name.............................................................
Other.....................................................................
By area or country:
6 Foreign countries.........................................................
Europe.......................................................................
7
8
9
Belgium-Luxembourg........................................
10
Denmark..............................................................
11
12
France...................................................................
13
14
Greece...................................................................
15
Italy.......................................................................
16
Netherlands.........................................................
17
18
Portugal...............................................................
19
20
21
22
Turkey..................................................................
23
United Kingdom................................................
24
Yugoslavia...........................................................
25
Other Western Europe......................................
26
U.S.S.R.................................................................
27
Other Eastern Europe.......................................
June
Sept.
Dec.p
Claims on foreigners
'6,606
'6,604
'6,424
7,122
7,822
'14,162
'14,963
'16,166
14,983
15,887
r5 ,894
r5 ,837
'5,772
6,329
7,078
'13,163
' 13,947
r15,054
13,936
14,517
712
767
652
792
745
999
1,016
1,113
1,047
1,370
442
557
431
585
448
665
414
632
620
750
14,961 '16,165
5,232
5,820
23
26
170
218
48
40
40
90
436
413
367
377
90
86
473
440
172
182
42
42
35
30
322
325
93
92
154
179
32
37
2,475
3,027
30
28
18
15
105
76
103
102
14,981
5,057
24
232
44
59
430
393
52
342
161
38
34
307
91
146
32
2,469
20
15
62
96
15,885
5,653
24
218
56
13
513
452
41
387
166
42
69
387
118
221
39
2,674
20
25
55
134
'6,398
'2,235
10
'169
7
2
200
174
48
131
141
29
13
40
34
190
13
'883
123
7
9
13
'6,412
r2,144
9
m i
15
2
163
175
80
135
168
37
23
52
36
214
12
'698
113
6
15
13
'6,254
2,208
10
138
14
10
157
163
73
154
205
33
20
68
36
236
21
730
110
6
16
10
6,968
2,314
12
119
16
11
171
226
78
139
176
35
12
74
41
245
97
736
92
9
11
14
7,611 '14,161
2,526
5,282
21
21
107
162
14
56
9
77
236
438
284
378
85
51
161
384
230
166
30
51
11
40
77
369
28
90
257
241
108
25
733
2,446
90
26
9
20
24
156
12
85
28
Canada......................................................................
400
427
r448
454
503
2,458
2,426
r2,573
2,501
2,612
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Latin America.........................................................
Argentina.............................................................
Bahamas..............................................................
Brazil....................................................................
Chile.....................................................................
Colombia.............................................................
Cuba.....................................................................
M exico.................................................................
Panama.................................................................
Peru.......................................................................
Uruguay...............................................................
Venezuela.............................................................
Other Latin American republics.....................
' 1,040
44
260
72
17
13
*
'102
34
25
4
219
141
10
100
' 1,121
42
256
49
16
18
*
'121
12
24
4
260
148
11
160
' 1,020
50
216
37
24
22
*
'120
11
21
3
208
141
17
151
1,027
50
222
76
13
24
*
103
12
13
4
225
122
9
154
1,189
42
300
49
17
42
*
115
22
15
3
222
126
25
210
r3,582
44
'1,391
682
34
59
1
332
74
42
5
190
276
9
441
r4 ,408
46
'1,881
535
35
75
1
317
105
32
6
210
237
14
914
4,938
51
'2,244
457
28
72
1
301
121
28
5
240
237
8
1,146
4,535
53
1,873
414
40
85
*
304
221
30
5
256
257
8
987
4,333
53
1,906
517
45
84
*
316
88
33
5
275
280
12
718
2,057
3
113
42
39
94
37
172
96
59
19
1,383
1,890
2
138
27
41
80
45
183
95
73
11
1,196
2,492
1
152
25
44
60
58
604
81
78
17
1,372
2,737
8
156
40
37
60
63
695
108
74
17
1,480
2,276
3
197
96
55
179
41
912
117
86
22
568
2,316
1
130
107
35
206
51
969
130
86
27
569
' 2,315
1
131
93
51
184
70
'927
158
90
22
'582
2,388
12
139
73
42
185
46
1,023
153
111
24
579
2,746
9
157
98
37
378
38
1,057
173
99
23
679
44
45
46
47
48
49
50
51
52
53
54
55
Other Latin America........................................
Other A sia...........................................................
2,040
1
110
40
23
98
37
193
76
53
24
1,385
56
57
58
59
60
61
Egypt....................................................................
Morocco...............................................................
South Africa.......................................................
Zaire.....................................................................
Other Africa........................................................
606
27
45
54
36
444
591
29
30
33
39
460
589
33
72
27
39
418
568
45
105
29
48
341
563
13
112
20
46
372
393
28
11
87
21
247
429
70
12
80
19
248
370
24
11
69
17
248
346
22
10
75
19
221
397
38
21
75
15
248
62
63
64
Other countries........................................................
Australia...............................................................
All other...............................................................
77
59
19
72
53
19
98
78
20
111
93
18
93
75
18
170
105
65
150
114
36
149
110
40
153
113
41
144
110
34
65 Nonmonetary international and regional
organizations.......................................................
208
192
170
154
212
1
2
1
1
1
China, People’s Republic o f (Mainland).. . .
China, Republic o f (Taiwan)..........................
Hong K ong.........................................................
Israel.....................................................................
Japan....................................................................
Korea...................................................................
Philippines...........................................................
N ote.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.
A67
N onbank-reported D a ta
3.27 SHORT-TERM CLAIMS ON FOREIGNERS
Reported by Large Nonbanking Concerns in the United States
Millions o f dollars, end o f period
1977
Type and country
1973
1974
1 Total..............................................................................
3,185
3,357
3,799
By type:
2
Payable in dollars...................................................
3
Deposits...............................................................
4
Short-term investments 1..................................
2,641
2,604
37
2,660
2,591
69
1975
1976
1978
Sept.'
Oct.'
Nov. '
D e c.'
Jan.
Feb.p
5,468
6,921
7,694
7,575
6,769
7,324
7,937
3,042
2,710
332
4,788
4,415
373
6,225
5,783
442
6,972
6,468
504
6,652
6,207
445
5,804
5,402
402
6,310
5,856
454
6,947
6,462
485
5
6
7
Payable in foreign currencies................................
Deposits................................................ ..
Short-term investments 1..................................
544
431
113
697
429
268
757
511
246
680
373
302
695
358
337
722
374
348
924
489
435
965
552
413
1,014
561
453
990
541
449
8
9
10
11
12
By country:
United Kingdom....................................................
Canada......................................................................
Bahamas..................................................................
Japan.........................................................................
All other...................................................................
1,128
775
597
336
349
1,350
967
391
398
252
1,306
1,156
546
343
446
1,837
1,539
1,264
113
715
1,799
1,627
1,784
143
1,568
1,882
1,956
2,383
150
1,323
2,098
1,863
2,086
220
1,308
1,989
1,706
1,781
139
1,154
1,680
2,108
2,217
197
1,122
1,787
2,228
2,507
258
1,157
1 Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.
3.28
N ote.—D ata represent the assets abroad o f large nonbanking con
cerns 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 3.26.
LON G-TERM LIABILITIES TO A N D CLAIM S ON FO REIG NERS
in the United States
Reported by Nonbanking Concerns
Millions o f dollars, end o f period
1976
1977
1976
1977
Area and country
Mar.
Dec.
June
Sept.
Dec.P
Dec.
Liabilities to foreigners
Mar.
June
Sept.
Dec.P
Claims on foreigners
1
'3,564
r3,501
'3,336 ,
3,327
3,119
4,922
4,891
'4,827
4,625
4,631
2 Europe..........................................................................
3
Germany..................................................................
4
Netherlands.............................................................
5
Switzerland.............................................................
6
United Kingdom....................................................
'2,723
396
277
260
rl ,418
'2,653
391
272
178
rl,386
'2,497
370
262
177
'1,273
2,555
407
272
224
1,251
2,385
255
288
241
1,229
851
72
156
57
'238
844
84
154
53
204
827
76
147
43
219
754
76
81
42
215
742
70
82
49
204
7 Canada.........................................................................
r87
r80
'79
76
71
1,530
1,475
1,486
1,462
1,473
8 Latin America............................................................
9
Bahamas...................................................................
Brazil....................................................................
10
11
C hile.........................................................................
12
M exico.....................................................................
'271
163
5
1
r18
r274
163
5
1
r23
'283
167
7
1
'26
276
159
7
1
30
261
156
7
1
30
1,521
36
133
248
195
1,489
34
125
210
180
1,457
34
125
208
178
1,371
36
134
201
187
1,404
40
144
203
176
13 A sia...............................................................................
14
Japan........................................................................
423
397
432
413
408
386
358
319
338
305
775
77
817
96
'833
'111
809
94
797
66
15 A frica...........................................................................
2
2
3
3
2
187
199
158
165
157
16 A lloth er1.....................................................................
58
59
67
59
60
58
67
67
63
59
1 Includes nonmonetary international and regional organizations.
A68
International Statistics □ M ay 1978
3.29 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Per cent per annum
Rate on Apr. 30, 1978
Rate on Apr. 30, 1978
Country
18.0
5.5
5.5
2 8.0
8.5
9 .0
Argentina
A ustria...
Belgium. .
Brazil___
Canada. .
Denmark.
Per
cent
Month
effective
Per
cent
Feb. 1972
June 1977
Mar. 1978
May 1976
Apr. 1978
Mar. 1977
France..............................
Germany, Fed. Rep. of.
Italy..................................
Japan................................
Mexico.............................
Netherlands....................
N ote.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with
3.30
Rate on Apr. 30, 1978
Country
Country
Month
effective
9.5
3.0
11.5
3.5
4 .5
4 .0
Aug.
Dec.
Aug.
Mar.
June
Apr.
1977
1977
1977
1978
1942
1978
Per
cent
N orway...............
Sweden.................
Switzerland.........
United Kingdom
Venezuela............
Month
effective
7.0
7 .0
1.0
7.5
5.0
Feb.
Apr.
Feb.
Apr.
Oct.
1978
1978
1978
1978
1970
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion o f its credit operations.
FO R E IG N SHORT-TERM INTEREST RATES
Per cent per annum, averages o f daily figures
1977
Country, or type
1976
1975
1978
1977
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 Euro-dollars
2 United Kingdom
3 Canada................
7.02
10.63
8.00
5.58
11.35
9.39
6.03
8.07
7.47
7.09
5.32
7.34
7.12
6.76
7.20
7.32
6.23
7.08
7.28
6.82
7.14
7.27
6.72
7.44
7.38
7.47
8.14
4 Germany.............
5 Switzerland.........
6 Netherlands........
7 France.................
4 .87
3.01
5.17
7.91
4.19
1.45
7.02
8.65
4.30
2.56
4.73
9 .20
4.09
2.32
5.94
9.28
3.94
2 .20
6.65
9.88
3.52
.92
5.01
9.25
3.45
.50
5.28
10.45
3.49
.46
5.35
9.86
3.54
.40
4.62
8.35
8 Italy.....................
9 Belgium...............
10 Japan...................
10.37
6.63
11.64
16.32
10.25
7.70
14.26
6.95
6.22
11.74
6.38
5.37
11.38
7.75
5.75
10.99
8.29
5.33
O)
6.75
5.25
0)
6.41
4.86
11.75
5.55
4.50
1 Unquoted.
N ote.—Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits o f 20 million francs and
3.31
over; and Japan, loans and discounts that can be called after being held
over a minimum o f two month-ends.
FO R E IG N E X C H A N G E RATES
Cents per unit o f foreign currency
Country/currency
1975
1976
1977
1977
1978
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1
2
3
4
5
Australia/dollar...................
Austria/shilling.....................
Belgium/franc.......................
Canada/dollar.......................
Denmark/krone...................
130.77
5.7467
2.7253
98.30
17.437
122.15
5.5744
2.5921
101.41
16.546
110.82
6.0494
2.7911
94.112
16.658
112.70
6.2551
2.8396
90.145
16.327
113.36
6.4734
2.9608
91.132
16.833
113.82
6.5698
3.0425
90.810
17.324
113.56
6.6893
3.0930
89.850
17.610
113.83
6.8221
3.1589
88.823
17.839
113.97
6.8081
3.1419
87.592
17.807
6
7
8
9
10
Finland/markka...................
France/franc.........................
Germany/deutsche m ark...
India/rupee...........................
Ireland/pound.......................
27.285
23.354
40.729
11.926
222.16
25.938
20.942
39.737
11.148
180.48
24.913
20.344
43.079
11.406
174.49
23.986
20.614
44.633
11.576
181.78
24.299
20.844
46.499
11.712
185.46
24.816
21.196
47.220
12.195
193.53
24.527
20.628
48.142
12.331
193.96
24.013
21.256
49.181
12.185
190.55
23.900
21.803
48.964
11.815
184.97
11 Italy/lira.................................
12 Japan/yen..............................
13 Malaysia/ringgit...................
15 Netherlands/guilder.............
.15328
.33705
41.753
8.0000
39.632
.12044
.33741
39.340
6.9161
37.846
.11328
.37342
40.620
4.4239
40.752
.11388
.40872
41.910
4.4096
41.366
.11416
.41491
42.201
4.4059
42.955
.11469
.41481
42.230
4. 3963
44.084
.11619
.41603
42.374
4.3972
44.880
.11692
.43148
42.428
4.3928
45.994
.11644
.45084
42.057
4.3945
45.865
121.16
19.180
3.9286
136.47
1.7424
99.115
18.327
3.3159
114.85
1.4958
96.893
18.789
2.6234
114.99
1.3287
99.392
18.328
2.4575
115.04
1.2060
100.59
19.056
2.4755
115.04
1.2237
101.95
19.401
2.4840
115.02
1.2397
102.07
19.025
2.4806
115.05
1.2394
102.20
18.775
2.4483
115.05
1.2497
101.92
18.621
2.4075
115.05
1.2475
23 Switzerland/franc.................
24 United Kingdom/pound. . .
14.385
24.141
38.743
222.16
11.908
22.957
40.013
180.48
11.964
22.383
41.714
174.49
8.7721
20.848
45.507
181.78
6.2000
21.044
48.168
185.46
6.2167
21.413
50.353
193.53
6.4028
21.554
52.422
193.96
6.5000
21.693
52.693
190.55
6.4950
21.731
52.511
184.97
M emo:
25 United States/dollar 1........
82.20
89.68
89.10
87.29
85.52
84.05
82.94
83.10
16
17
18
19
20
New Zealand/dollar.............
Norway/krone......................
Portugal/escudo...................
South Africa/rand...............
Spain/peseta.........................
21 Sri Lanka/rupee...................
1 Index o f weighted-average exchange value o f U.S. dollar against cur
rencies o f other G-10 countries plus Switzerland. May 1970 parities — 100.
Weights are 1972 global trade o f each o f the 10 countries.
83.74
N ote.—Averages o f certified noon buying rates in New York for cable
transfers.
A 69
Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR PRESENTATION
S ym bols
and
p
r
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that
column are changed.)
Estimated
Corrected
Not elsew here classified
Repurchase agreements
Individuals, partnerships, and corporations
e
c
n .e .c .
R p’s
IPC’s
A b b r e v ia t io n s
SM S A ’s
REIT’s
*
Standard metropolitan statistical areas
Real estate investment trusts
Amounts insignificant in terms of the partic
ular unit (e .g ., less than 5 0 0 ,0 0 0 when
the unit is m illions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed or, (4) no change (when
figures are expected in percentages).
G e n e r a l In f o r m a t io n
M inus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
“ U .S . G ovt, securities” may include guaranteed
issues of U .S . Govt, agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
obligations of the Treasury. “ State and local g o v t.”
also includes m unicipalities, special districts, and other
political subdivisions.
In som e of the tables details do not add to totals
because of rounding.
STATISTICAL RELEASES
L is t P u b l i s h e d S e m i a n n u a l l y ,
w it h
L a t e st B u l l e t in R e f e r e n c e
Anticipated schedule of release dates for individual releases
...............................................
Issue
P age
December 1977
A-76
A70
Federal Reserve Board of Governors
G . W illia m
M ille r ,
Chairm an
Vice Chairm an
H en ry C. W a llic h
S te p h e n S. G a r d n e r ,
P h ilip E . C o l d w e l l
O F F IC E O F B O A R D M E M B E R S
O F F IC E O F S T A F F
D IR E C T O R F O R M O N E T A R Y P O L IC Y
T h o m a s J. O ’C o n n e l l , C o u n s e l t o t h e C h a i r m a n
J o se p h R . C o y n e , A s s is ta n t to th e B o a r d
K e n n e t h A . G u e n t h e r , A s s is ta n t to th e B o a r d
S id n e y L . J o n e s , A s s i s t a n t to th e B o a r d
J a y P a u l B r e n n e m a n , S p e c ia l A s s is ta n t to th e
B o a rd
F r a n k O ’B r i e n , J r . , S p e c i a l A s s i s t a n t t o t h e B o a r d
J o s e p h S . S im s , S p e c i a l A s s i s t a n t t o t h e B o a r d
D o n a l d J. W i n n , S p e c i a l A s s i s t a n t t o t h e B o a r d
S te p h e n H . A x i l r o d , S ta f f D ir e c to r
A r t h u r L . B r o id a , D e p u ty S ta f f D ir e c to r
M u r r a y A l t m a n n , A s s is ta n t to th e B o a r d
P e t e r M . K e ir , A s s is ta n t to th e B o a r d
S t a n l e y J. S i g e l , A s s i s t a n t t o t h e B o a r d
N o r m a n d R . V . B e r n a r d , S p e c i a l A s s i s t a n t to th e
B o a rd
D IV IS IO N O F R E S E A R C H A N D S T A T IS T IC S
L E G A L D IV IS IO N
N
R
A
C
e a l L. P e te r s e n , G en era l C ou n sel
o b e r t E . M a n n io n , A s s o c ia te G e n e ra l C o u n se l
l l e n L . R a ik e n , A s s o c ia te G e n e ra l C o u n se l
h a r l e s R . M c N e i l l , A s s i s t a n t to th e G e n e r a l
C ou n sel
Jam es L . K ic h lin e , D ir e c to r
J o se p h S. Z e is e l , D e p u ty D ir e c to r
E d w a r d C. E t t i n , A s s o c ia te D ir e c to r
J o h n H . K a lc h b r e n n e r , A s s o c ia te D ir e c to r
J o h n J. M i n g o , S e n i o r R e s e a r c h D i v i s i o n O f f i c e r
E l e a n o r J. S t o c k w e l l , S e n i o r R e s e a r c h D i v i s i o n
O ffic e r
J a m es R . W e t z e l , S e n io r R e s e a r c h D iv is io n O ffic e r
R o b e r t A . E is e n b e is , A s s o c ia te R e s e a r c h D iv is io n
O F F IC E O F T H E S E C R E T A R Y
T h e o d o r e E . A l l i s o n , S e c r e ta r y
G r i f f i t h L . G a r w o o d , D e p u ty S e c r e ta r y
* C a th y E . M in e h a n , A s s is ta n t S e c r e ta r y
O ffic e r
J a r e d J. E n z l e r , A s s o c i a t e R e s e a r c h D i v i s i o n
O ffic e r
J. C o r t l a n d G . P e r e t , A s s o c i a t e R e s e a r c h
D iv is io n O ffic e r
R ic h a r d H . P u c k e t t , A s s o c i a t e R e s e a r c h D iv is io n
D IV IS IO N O F C O N S U M E R A F F A IR S
J a n e t O. H a r t , D ir e c to r
N a t h a n i e l E . B u t l e r , A s s o c ia te D ir e c to r
J e r a u l d C. K lu c k m a n , A s s o c ia te D ir e c to r
O ffic e r
I H e lm u t F . W e n d e l , A s s o c i a t e R e s e a r c h D iv is io n
O ffic e r
J a m e s M . B r u n d y , A s s is ta n t R e s e a r c h D iv is io n
O ffic e r
R o b e r t M . F is h e r , A s s is ta n t R e s e a r c h D iv is io n
O ffic e r
D IV IS IO N O F B A N K IN G
S U P E R V IS IO N A N D R E G U L A T IO N
S t e p h e n P. T a y l o r , A s s is ta n t R e s e a r c h D iv is io n
O ffic e r
L e v o n H . G a r a b e d ia n , A s s is ta n t D ir e c to r
J o h n E . R y a n , D ir e c to r
^ F r e d e r ic k C. S c h a d r a c k , D e p u ty D ir e c to r
F r e d e r ic k R . D a h l , A s s o c ia te D ir e c to r
W illia m W . W ile s , A s s o c ia te D ir e c to r
J a c k M . E g e r t s o n , A s s is ta n t D ir e c to r
D o n E . K lin e , A s s is ta n t D ir e c to r
R o b e r t S . P l o t k i n , A s s is ta n t D ir e c to r
T h o m a s A . S id m a n , A s s is ta n t D ir e c to r
S a m u e l H . T a l l e y , A s s is ta n t D ir e c to r
W illia m T a y l o r , A s s is ta n t D ir e c to r
D IV IS IO N O F IN T E R N A T IO N A L F IN A N C E
E d w in M . T r u m a n , D ir e c to r
J o h n E . R e y n o l d s , C o u n s e lo r
R o b e r t F . G e m m ill, A s s o c ia te D ir e c to r
G e o r g e B . H e n r y , A s s o c ia te D ir e c to r
C h a r l e s J. S i e g m a n , A s s o c i a t e D i r e c t o r
S a m u e l P iz e r , S e n io r I n te r n a tio n a l D iv is io n
O ffic e r
A 71
and Official Staff
P h i l i p C . Ja c k s o n , J r .
J. C h a r l e s P a r t e e
O F F IC E O F
S T A F F D IR E C T O R F O R M A N A G E M E N T
O F F IC E O F S T A F F D IR E C T O R F O R
F E D E R A L R E S E R V E B A N K A C T IV IT IE S
J o h n M . D e n k l e r , S ta f f D ir e c to r
R o b e r t J. L a w r e n c e , D e p u t y S t a f f D i r e c t o r
D o n a l d E . A n d e r s o n , A s s is ta n t D ir e c to r f o r
W illia m H . W a l l a c e , S ta f f D ir e c to r
C o n s tr u c tio n M a n a g e m e n t
J o se p h W . D a n i e l s , S r ., A s s is ta n t D ir e c to r a n d
D ir e c to r o f E q u a l E m p lo y m e n t O p p o r tu n ity
G o r d o n B . G r im w o o d , A s s i s t a n t D i r e c t o r a n d
P r o g r a m D ir e c to r f o r C o n tin g e n c y P la n n in g
D IV IS IO N O F F E D E R A L R E S E R V E
B A N K E X A M IN A T IO N S A N D B U D G E T S
A l b e r t R. H a m il t o n , D ir e c to r
C l y d e H . F a r n s w o r t h , J r ., A s s o c ia te D ir e c to r
J o h n F . H o o v e r , A s s is ta n t D ir e c to r
P. D . R in g , A s s is ta n t D ir e c to r
D IV IS IO N O F D A T A P R O C E S S IN G
C h a r le s L . H a m p to n , D ir e c to r
B r u c e M. B e a r d s l e y , A s s o c ia te D ir e c to r
U y l e s s D . B la c k , A s s is ta n t D ir e c to r
G l e n n L . C u m m in s , A s s i s t a n t D ir e c to r
R o b e r t J. Z e m e l , A s s i s t a n t D i r e c t o r
D IV IS IO N O F P E R S O N N E L
D a v id L . S h a n n o n , D ir e c to r
J o h n R . W e is , A s s is ta n t D ir e c to r
C h a r le s W . W o o d , A s s is ta n t D ir e c to r
O F F IC E O F T H E C O N T R O L L E R
J o h n K a k a l e c , C o n tr o lle r
E d w a r d T . M u l r e n i n , A s s is ta n t C o n tr o lle r
D IV IS IO N O F A D M IN IS T R A T IV E S E R V IC E S
W a l t e r W . K r e im a n n , D ir e c to r
J o h n L . G r iz z a r d , A s s is ta n t D ir e c to r
J o h n D . S m it h , A s s is ta n t D ir e c to r
*On loan from the Federal Reserve Bank of New York.
tOn leave of absence.
D IV IS IO N O F
F E D E R A L R E S E R V E B A N K O P E R A T IO N S
J am es R . K u d lin s k i, D ir e c to r
W a l t e r A l t h a u s e n , A s s is ta n t D ir e c to r
B r ia n M . C a r e y , A s s is ta n t D ir e c to r
H a r r y A . G u in t e r , A s s is ta n t D ir e c to r
A72
Federal Reserve Bulletin □ M ay 1978
FOMC and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
G . W illia m
M i l l e r , C h a ir m a n
E r n e st T. B a u g h m a n
P a u l A . V o lc k e r ,
S tep h e n
V ic e C h a ir m a n
H en ry C. W a llic h
S. G a rd n er
P h il ip E . C o l d w e l l
P h il ip C . Ja c k s o n , Jr .
D a v id P . E a s t b u r n
J. C h a r l e s P a r t e e
M a r k H . W il l e s
W il l is J. W i n n
A r t h u r L . B r o id a , S e c r e ta r y
R ic h a r d G . D a v is , A s s o c ia te E c o n o m is t
M u r r a y A l t m a n n , D e p u ty S e c r e ta r y
E d w a r d C . E t t i n , A s s o c ia te E c o n o m is t
N o r m a n d R . V . B e r n a r d , A s s is ta n t S e c r e ta r y
I r a K a m in o w , A s s o c ia te E c o n o m is t
T h o m a s J . O ’C o n n e l l , G e n e r a l C o u n s e l
P e t e r M . K e ir , A s s o c ia te E c o n o m is t
E d w a r d G . G u y , D e p u ty G e n e r a l C o u n s e l
J a m e s L . K i c h l i n e , A s s o c ia te E c o n o m is t
R o b e r t E . M a n n io n , A s s is ta n t G e n e ra l C o u n se l
J o h n P a u l u s , A s s o c ia te E c o n o m is t
S tep h e n
J o h n E . R e y n o l d s , A s s o c ia te E c o n o m is t
H . A x i l r o d , E c o n o m is t
J o s e p h B u r n s , A s s o c ia te E c o n o m is t
E d w in
J o h n M . D a v is , A s s o c ia te E c o n o m is t
J o s e p h S . Z e i s e l , A s s o c ia te E c o n o m is t
A la n
R . H o lm e s , M a n a g e r , S y s te m
M . T r u m a n , A s s o c ia te E c o n o m is t
O pen M a rk et A cco u n t
P e t e r D . S t e r n l i g h t , D e p u ty M a n a g e r f o r D o m e s tic O p e r a tio n s
S c o t t E . P a r d e e , D e p u ty M a n a g e r f o r F o r e ig n O p e r a tio n s
FEDERAL ADVISORY COUNCIL
G ilb e r t F. B r a d le y , t w e l f t h
J. W . M c L e a n , t e n t h
f e d e r a l r e s e r v e d i s t r i c t , P r e s id e n t
fe d e r a l reserv e
H e n r y S . W o o d b r id g e , f i r s t d is t r ic t
W a l t e r B . W r i s t o n , s e c o n d d is t r ic t
W il l ia m B . E a g l e s o n , Jr ., t h ir d d is t r ic t
d is tr ic t,
V ic e P r e s id e n t
F r a n k A . P lu m m e r , s ix t h d is t r ic t
E d w a r d B y r o n S m i t h , s e v e n t h d is t r ic t
C l a r e n c e C . B a r k s d a l e , e ig h t h d is t r ic t
M . B r o c k W e i r , f o u r t h d is t r ic t
R ic h a r d H . V a u g h a n , n i n t h d is t r ic t
J o h n H . L u m p k in , f i f t h
Jam es D . B e r r y , e le v e n t h
d is tr ic t
d is tr ic t
H e r b e r t V . P r o c h n o w , S e c r e ta r y
W illia m
J. K o r s v i k , A s s o c ia te S e c r e ta r y
CONSUMER ADVISORY COUNCIL
L e o n o r K . S u l l i v a n , S t . L o u is , M is s o u r i, C h a i r m a n
W illia m
D . W a r r e n , L o s A n g e l e s , C a lif o r n ia , V i c e C h a i r m a n
R o l a n d E . B r a n d e l , S a n F r a n c is c o , C a lifo r n ia
R i c h a r d F . K e r r , C in c in n a t i, O h io
A g n e s H . B r y a n t , D e tr o it, M ic h ig a n
R o b e r t J. K l e i n , N e w Y o rk , N e w Y ork
J o h n G . B u l l , F o r t L a u d e r d a l e , F l o r id a
P e r c y W . L o y , P o r tla n d , O r e g o n
R o b e r t V . B u l l o c k , F r a n k fo r t, K e n tu c k y
R . C . M o r g a n , E l P a so , T exas
L i n d a M . C o h e n , W a s h i n g t o n , D .C .
R e e c e A . O v e r c a s h , J r . , D a l la s , T e x a s
R o b e r t R . D o c k s o n , L o s A n g e l e s , C a lif o r n ia
R a y m o n d J. S a u l n i e r , N e w Y o rk , N e w Y ork
A n n e G . D r a p e r , W a s h in g t o n , D .C .
E . G . S c h u h a r t , D a lh a r t , T e x a s
B l a i r C . S h i c k , C a m b r id g e , M a s s a c h u s e t t s
J a m e s E . S u t t o n , D a ll a s , T e x a s
T h o m a s R . S w a n , P o r tla n d , M a in e
A n n e G a r y T a y l o r , A le x a n d r ia , V ir g in ia
R i c h a r d D . W a g n e r , S im s b u r y , C o n n e c t ic u t
R i c h a r d L . W h e a t l e y , J r . , S t illw a t e r , O k la h o m a
C a r l F e l s e n f e l d , N e w Y o rk , N e w Y ork
J e a n A . F o x , P it t s b u r g h , P e n n s y lv a n ia
M a r c ia A . H a k a l a , O m a h a , N eb rask a
J o s e p h F . H o l t I I I, O x n a r d , C a lif o r n ia
R i c h a r d H . H o l t o n , B e r k e l e y , C a lif o r n ia
E d n a D e C o u r s e y J o h n s o n , B a lt im o r e , M a r y la n d
A73
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
Robert H. Knight
Boris Yavitz
Donald R. Nesbitt
Paul A. Volcker
Thomas M. Timlen
Buffalo .................... .14240
John T. Keane
PHILADELPHIA
19105
John W. Eckman
Werner C. Brown
David P. Eastburn
Richard L. Smoot
CLEVELAND*
44101
Robert E. Kirby
Otis A. Singletary
Lawrence H. Rogers, II
G. Jackson Tankersley
Willis J. Winn
Walter H. MacDonald
E. Angus Powell
M aceo A. Sloan
I. E. Killian
Robert C. Edwards
Robert P. Black
George C. Rankin
Cincinnati ............... 45201
Pittsburgh ............... 15230
RICHMOND* ............. 23261
Baltimore ...................21203
Charlotte ...................28230
Culpeper Communications
and Records Center. . 22701
ATLANTA ................. 30303
Birmingham ............
Jacksonville ............
Miami ......................
Nashville .................
New Orleans ..........
35202
32203
33152
37203
70161
CHICAGO* ............... 60690
Detroit ...................... 48231
ST. LOUIS ................. 63166
Little Rock ............. 72203
Louisville ............... 40201
Memphis ................. 38101
MINNEAPOLIS
55480
Helena ...................... 59601
KANSAS CITY
64198
Denver .................... 80217
Oklahoma City ....... 73125
Omaha .................... 68102
DALLAS .................... 75222
El Paso .................... 79999
Houston ................... 77001
San Antonio ............ 78295
SAN FRANCISCO ... .94120
Los Angeles ............
Portland ...................
Salt Lake City .......
Seattle ......................
90051
97208
84110
98124
Vice President
in charge of branch
Robert E. Showalter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg
Clifford M. Kirtland, Jr.
William A. Fickling, Jr.
Harold B. Blach, Jr.
James E. Lyons
Alvaro L. Carta
John C. Bolinger
Edwin J. Caplan
Monroe Kimbrel
Kyle K. Fossum
Robert H. Strotz
John Sagan
Jordan B. Tatter
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James H. Davis
Jeanne L. H olley
Lawrence K. Roos
Donald W. Moriarty
James P. McFarland
Stephen F. Keating
Patricia P. Douglas
Mark H. Willes
Clement A. Van Nice
Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Charles T. Beaird
Josefina Salas-Porras
Alvin I. Thomas
Pete Morales, Jr.
Ernest T. Baughman
Robert H. Boykin
Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney
John J. Balles
John B. Williams
Hiram J. Honea
Edward C. Rainey
F. J. Craven, Jr.
Jeffrey J. Wells
George C. Guynn
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
John D. Johnson
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Fredric W. Reed
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
♦Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Utica, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210;
Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A 74
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 F ed
eral R eserve S ystem , W ashington, D .C . 20551. W here
a charge is indicated, rem ittance should accom pany
request and be m ade payable to the o rder of the B oard
of G overnors of the Federal R eserve System in a form
collectible a t p a r in U.S. currency. (Stam ps and
coupons are not a ccepted.)
The
F ederal
R eserve
S yste m — P u r po se s
and
F u n c t i o n s . 1974. 125 pp.
A n n u a l R epo rt
F e d e r a l R e s e r v e B u l l e t i n . M onthly. $ 20.00 per
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.
year or $2.0 0 each in the United States, its posses
sions, Canada, and M exico; 10 or more of same
issue to one address, $18.00 per year or $1.75
each. Elsewhere, $ 24.00 per year or $2.50 each.
B a n k i n g a n d M o n e t a r y S t a t i s t i c s , 1914-1941.
(Reprint of Part 1 only) 1976. 682 pp. $5.00.
B a n k in g a n d
M o n e t a r y S t a t i s t i c s , 1941-1970.
1976. 1,168 pp. $15.00.
A n n u a l S t a t is t ic a l D i g e s t , 1971-75. 1976. 339 p p .
$4.00 p er c o p y fo r e a c h p a id s u b s c r ip tio n to F e d
eral R eserve Bulletin. A ll o th e r s , $5.00 e a c h .
A n n u a l S t a t is t ic a l D i g e s t , 1972-76. 1977. 388 p p .
pp. $1.0 0 each; 10 or more to one address, $.85
each.
$ 1 0 .0 0 p er c o p y .
F e d e r a l R e s e r v e M o n t h l y C h a r t B o o k . S u b s c r ip
tio n in c lu d e s o n e is s u e o f H is to r ic a l C hart B o o k .
$12.00 per y e a r or $1.25 e a ch in th e U n ite d S ta te s,
its p o s s e s s io n s , C a n a d a , and M e x ic o ; 10 or m o r e
o f s a m e is s u e to o n e a d d r e s s, $1.0 0 e a c h . E ls e
w h e r e , $15 .0 0 p er y e a r or $1.5 0 e a c h .
H is t o r ic a l C h a r t B o o k . I ss u e d a n n u a lly in S e p t.
S u b sc r ip tio n to M o n th ly C hart B o o k in c lu d e s o n e
is s u e . $1.25 e a ch in th e U n ite d S ta te s, its p o s s e s
s io n s , C a n a d a , a n d M e x ic o ; 10 o r m o r e to o n e
a d d r e s s, $1.0 0 e a c h . E ls e w h e r e , $1.50 e a c h .
C a p it a l M a r k e t D e v e l o p m e n t s . W e e k ly . $ 15.00 per
y e a r or $.40 e a ch in th e U n ite d S ta te s, its p o s s e s
s io n s , C a n a d a , a n d M e x ic o ; 10 or m o r e o f s a m e
is s u e to o n e a d d r e s s, $13.50 p er y e a r or $.35 e a c h .
E ls e w h e r e , $ 20 .0 0 per y e a r or $ .50 e a c h .
S e l e c t e d In t e r e st a n d E x c h a n g e R a te s— W eek ly
S e r ie s o f C h a r t s . W e e k ly . $15.00 p er y e a r or
$ .40 e a ch in th e U n ite d S ta te s , its p o s s e s s io n s ,
C a n a d a , an d M e x ic o ; 10 or m o r e o f s a m e is s u e
to o n e a d d r e s s, $ 13.50 per y e a r or $.35 e a c h .
E ls e w h e r e , $20.00 p er y e a r or $.50 e a c h .
T h e F e d e r a l R e s e r v e A c t , as amended through D e
cember 1976, with an appendix containing provi
sions of certain other statutes affecting the Federal
Reserve System. 307 pp. $2.50.
R e g u l a t io n s o f t h e B o a r d o f G o v e r n o r s of th e
F e d e r a l R eserve S ystem
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 , as of June 30, 1977. $7.50.
I n d u s t r i a l P r o d u c t i o n — 1976 E d i t i o n . 1977. 304 pp .
$4.50 each; 10 or more to one address, $4.00 each.
102 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 in F a m i l y F i n a n c e s . 1968. 321
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T he E qual C redit Opportunity A ct a n d . . . A ge
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W omen
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STAFF ECONOM IC STUDIES
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G reeley in P erspective , by Paul Schweitzer and Joshua
Greene. Sept. 1977. 17 pp,
S tructure a n d P erformance S tu dies in B a n k in g : A
S um mary a n d E v a l u a t io n , by Stephen A.
Rhoades. Dec. 1977. 45 pp.
A n A nalysis of F ederal R eserve A ttrition S ince
1960, by John T. Rose. Jan. 1978. 44 pp.
P roblems in A pplying D iscrim inant A nalysis in
Credit S coring Mo d els , by Robert A. Eisenbeis.
Jan. 1978. 28 pp.
E x t e r n a l C a p it a l F in a n c in g R e q u ir e m e n t s of
Commercial B a n k s : 1977-81, by Gerald A. Hanweck and John J. Mingo. Feb. 1978. 34 pp.
M ortgage B orrowing A gainst E quity in E xisting
H om es : M e a su r e m e n t , G e n e r a t io n , a n d I m
plications for E conomic A c tiv ity , by David F.
Seiders. May 1978. 42 pp.
P r in t e d
in
F u ll
in t h e
B u l l e t in
Staff Economic Studies shown in list below.
REPRINTS
(Except for Staff Papers, Staff Economic Studies, and
some leading articles , most of the articles reprinted do
not exceed 12 pages.)
A R ev ised In d ex o f M a n u f a c t u r in g C a p a c ity ,
Staff E conom ic Study by Frank de Leeuw with
Frank E. Hopkins and M ichael D. Sherman. 11/66.
U .S . I n t e r n a t i o n a l T r a n s a c tio n s : T r en d s in
1960-67. 4/68.
A 75
M easures of S ecurity C r e d it . 12/70.
R evised M easures of M anu fa c t ur ing C apacity
U t il iz a t io n . 10/71.
R evision of B ank C redit S eries . 12/71.
A ssets a nd L iabilities of F oreign B ranches of
U .S . B a n k s . 2/72.
B ank D ebits , D eposits , a n d D eposit T urnover —
R evised S eries . 7/72.
Y ields on N ew ly Issued C orporate B o n d s . 9/72.
R ecent A ctivities of F oreign B ranches of U .S .
B a n k s . 10/72.
R evision of C onsum er C redit S tatistics . 10/72.
O n e -B ank H olding C ompanies B efore the 1970
A m e n d m en ts . 12/72.
Y ields on R ecently O ffered C orporate B o n d s .
5/73.
R ates on C onsum er Instalm ent L o a n s . 9/73.
N ew S eries for L arge M a nu fa c tur ing C orpora
t io n s . 10/73.
U .S . E nergy S upplies a n d U ses , Staff E conom ic
Study by Clayton Gehman. 12/73.
Inflation an d S tagnation in M ajor F oreign In
dustrial C o u n t r ie s . 10/74.
T he S tructure of M argin C redit . 4 /7 5 .
N ew S tatistical S eries on L oan C ommitments at
S elected L arge C ommercial B a n k s . 4/75.
R ecent T rends in F ederal B udget Polic y . 7/75.
R ecent D evelopm ents in I ntern a tio na l F inancial
M arkets . 10/75.
MINNIE:
A
S mall
V ersion
of
the
M IT -P E N N -S SR C E conometric M o d e l , Staff
E conom ic Study by Douglas Battenberg, Jared J.
Enzler, and Arthur M. Havenner. 11/75.
A n A ssessment of B ank H olding C o m pa nies , Staff
E conom ic Study by Robert J. Lawrence and
Samuel H. Talley. 1/76.
Industrial E lectric P ower U s e . 1/76.
R evision of M oney S tock M ea su r e s . 2/76.
S urvey of F inance C om pa nies , 1975. 3/76.
R evised S eries for M ember B ank D eposits a n d
A ggregate R eserves . 4/76.
Industrial P roduction — 1976 R evision. 6/76.
F ederal R eserve O perations in P a ym ent M ec ha
n ism s : A S um m a r y . 6/76.
R ecent G rowth in A ctivities of U .S . O ffices of
B a n k s . 10/76.
N ew E stimates of C apacity U t il iz a t io n : M a n u
facturing a n d M aterials . 11/76.
U .S . I ntern a tio na l T ransactions in a R ecovering
E co n o m y . 4/77.
B ank H olding C om pany F ina n cia l D evelopm ents
in 1976. 4/77.
C hanges in B ank L en din g P ractices , 1976. 4/77.
S urvey of T erms of B ank L e n d in g — N ew S eries .
5/77.
The C ommercial P aper M ark et . 6/77.
Consum ption a n d F ixed I nvestm en t in the E co
nomic R ecovery A broad . 10/77.
R ecent D evelopm ents in U .S . I n tern a tio na l
T ran sac tion s . 4/78.
S urvey of T ime a n d S avings D eposits at A ll C om
mercial B a n k s , January 1978. 5/78.
A76
Index to Statistical Tables
References are to pages A-3 through A-68 although the prefix “ A ” is omitted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 20-22, 26
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 17, 18, 20-23, 29
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U .S. Govt, securities):
New issues, 36
Yields, 3
Branch banks:
Assets and liabilities of foreign branches of U .S.
banks, 62
Liabilities of U .S. banks to their foreign
branches, 23
Business activity, 46
Business expenditures on new plant and
equipment, 38
Business loans {See Commercial and industrial
loans)
CAPACITY utilization, 46
Capital accounts:
Banks, by classes, 16, 17, 19, 20
Federal Reserve Banks, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans:
Commercial banks, 15, 18, 23, 26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15-19, 20-23
Business loans, 26
Commercial and industrial loans, 24, 26
Consumer loans held, by type, 42, 43
Loans sold outright, 23
Number, by classes, 16, 17, 19
Real estate mortgages held, by type of holder and
property, 41
Commercial paper, 3, 24, 25, 27, 39
Condition statements (See A ssets and liabilities)
Construction, 46, 50
Consumer instalment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations:
Profits, taxes, and dividends, 37
Security issues, 36, 65
Cost of living (See Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 16, 18
Currency in circulation, 4, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 17, 19, 20-23
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of d>eposits)\
Banks, by classes, 3, 16, 17, 19, 20-23, 29
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at F.R. Banks (See Interest rates)
Discounts and advances by F.R. Banks (See Loans) '
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Euro-dollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal and Federally sponsored credit agencies, 35
Federal finance:
Debt subject to statutory limitation and
types and ownership of grpss debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage A ssn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U.S. Govt, securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 20-22
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
Deposits in U .S. banks, 4, 12, 19, 20, 21, 22
Exchange rates, 68
Trade, 55
Foreigners:
Claims on, 60, 61, 66, 67
Liabilities to, 23, 56-59, 64-67
GOLD:
Certificates, 12
Stock, 4, 55
Government National Mortgage A ssn., 35, 40, 41
Gross national product, 52, 53
Federal Reserve Bulletin □ May 1978
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital markets, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 56-67
International organizations, 56-61, 64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types of investments ):
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16, 17, 18
Federal Reserve Banks, 12, 13
Life insurance companies, 29
Savings and loan assns., 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types o f loans):
Banks, by classes, 16, 17, 18, 20-23, 29
Commercial banks, 3, 15-18, 20-23, 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by U .S ., 40, 41
Savings and loan assns., 29
M ANUFACTURING:
Capacity utilization, 46
Production, 46, 49
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 12
Number, by classes, 16, 17, 19
Reserve position, basic, 6
Reserve requirements, 9
Reserves and related items, 3, 4, 5, 15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3 , 15
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41
NATIONAL banks, 17, 19
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSONAL income, 53
Prices:
Consumer and wholesale, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 37
REAL estate loans:
Banks, by classes, 18, 20-23, 29, 41
Life insurance companies, 29
Mortgage terms, yields, and activity, 3, 40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves:
Commercial banks, 16, 18, 20, 21, 22
Federal Reserve Banks, 12
Member banks, 3, 4, 5, 15, 16, 18
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING:
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 10, 29, 33, 41, 44
Savings deposits
Time deposits)
Savings institutions, selected assets, 29
Securities (See also U .S. Govt, securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22
Holdings of U .S. Govt, securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks
also Securities);
New issues, 36
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21,
22, 23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEM PLOYM ENT, 47
U .S. balance of payments, 54
U.S. Govt, balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U .S. Govt, securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 3, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 20-24
Wholesale prices, 46
YIELDS (See Interest rates)
A ll
A78
The Federal Reserve System
B o u n d a rie s
o f
F e d e ra l
R e se rv e
D is tric ts
a n d
T h e ir
B ra n c h
T e rrito rie s
February 1978
—
Boundaries of Federal Reserve Districts
----- Boundaries of Federal Reserve Branch
Territories
Q
Board of Governors of the Federal
Reserve System
®
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
@FedFRASER