Full text of Federal Reserve Bulletin : May 1979
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
M AY
1979
F E D E R A L
R E S E R V E
BULLETIN
D o m e s tic
S u rv e y
o f
F in a n c ia l
T im e
a n d
D e v e lo p m e n ts
S a v in g s
in
th e
D e p o s its ,
F irs t
Q u a rte r
Ja n u a ry
1 9 7 9
o f
1 9 7 9
A copy of the F ederal R eserve B u lletin is sent to each member bank without charge; m ember banks
desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price
in the United Statesj and its possessions, and in Bolivia, C anada, C hile, C olom bia, Costa Rica, C uba,
Dom inican R epublic, Ecuador, G uatem ala, Haiti, Republic of H onduras, M exico, Nicaragua, Panam a,
Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsew here,
$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 m onth, or $18.00 for 12 months.
The B u ll et in may be obtained from the Division of Support Services, Board of Governors of the Federal
Reserve System , W ashington, D .C . 20551, and remittance should be made payable to the order of the Board
of G overnors of the Federal Reserve System in a form collectible at par in U .S. currency. (Stamps and
coupons are not accepted.)
V O L U M E 65 □
NUM BER 5 □
M A Y 1979
F E D E R A L
R E S E R V E
BULLETIN
B o a rd
o f
G o v e rn o rs
W a s h in g to n ,
o f
th e
F e d e ra l
R e se rv e
S y s te m
D .C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
Michael J. Prell, Staff D irector
The F ederal R eserve B u lletin is issued monthly under the direction of the statt publications com m ittee. 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 M endelle T. Berenson.
Table o f Contents
377 D o m e s t i c F i n a n c i a l D e v e l o p m e n t s
i n t h e F i r s t Q u a r t e r o f 1979
The quarterly report to the Congress states
that, although the monetary aggregates
were quite weak in the first quarter, the
Federal Reserve maintained the firmer
stance in money markets that it had
adopted in the closing months of 1978.
387 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 its a t C o m m e r c ia l B a n k s ,
J a n u a r y 1979
Total time and savings deposits at insured
commercial banks expanded 3 percent
during the most recent survey period.
393 S t a f f S t u d i e s
“ Innovations in Bank Loan
Recent Evidence” examines
ship between the nominal
charged on loans and other
the loan agreement.
Contracting:
the relation
interest rate
elements of
395 I n d u s t r i a l P r o d u c t i o n
Output declined an estimated 1.0 percent
in April.
396 S t a t e m e n t s t o C o n g r e s s
Governor Henry C. Wallich discusses the
role of U.S. banks in offshore financial
centers and describes how the Federal Re
serve monitors their activities in such cen
ters by using information from examina
tion reports and financial statements, be
fore the Subcommittee on Oversight of the
House Committee on Ways and Means,
April 25, 1979.
399 Governor Nancy H. Teeters suggests
changes in H.R. 3552, a bill to amend the
Electronic Fund Transfer (EFT) Act, in
cluding a recommendation against chang
ing the effective date of the act to Sep
tember 10, 1979, from May 10, 1980;
Mrs. Teeters also expresses the Board’s
concern about some of the substantive
provisions of the current EFT Act and the
Board’s belief that the EFT and Truth in
Lending Acts should be amended to pro
vide a single set of rules to govern credit
and electronic transactions except when
policy considerations may dictate different
treatment, before the Subcommittee on
Consumer Affairs of the House Committee
on Banking, Finance and Urban Affairs,
May 1, 1979.
403 Governor J. Charles Partee discusses the
new savings instruments proposed by the
financial regulatory agencies (including
the bonus savings account plan, which
would authorize the payment of an extra
1/2 percentage point in interest on the
minimum balance held in a savings ac
count for one year or more; the rising-rate
certificate, which would provide deposi
tors with an instrument whose yield grad
ually increases over time; and the fiveyear, floating-ceiling certificate, which
would provide a market-oriented rate of
return to small savers); in light of these
proposals, Governor Partee offers the
Board’s view that the Congress should
reconsider the present ceiling rate structure
with a view to its simplification, before
the Subcommittee on Financial Institutions
Supervision, Regulation and Insurance of
the House Committee on Banking, Fi
nance and Urban Affairs, May 7, 1979.
406 A n n o u n c e m e n t s
Amendment to Regulation B to clarify the
definition of creditor. (See Law Depart
ment.)
Proposed restructuring of reserve require
ments; proposed application of specific
rules of Regulation B to four practices of
creditors using credit-scoring systems;
proposed changes in Federal Reserve
check processing of checklike payment
instruments at mutual savings banks and
savings and loans; proposed completion of
rules needed to carry out provisions of the
Electronic Fund Transfer Act.
appeared to be significantly above or
below the midpoints of the indicated
ranges, the objective for the funds rate was
to be raised or lowered in an orderly
fashion within a range of 9 3A to IOV2
percent. It was also agreed that in assess
ing the behavior of the aggregates, the
Manager should give approximately equal
weight to the behavior of M -l and M-2.
422 L a w D e p a r t m e n t
Amendments to Regulations B and O,
various rules and bank holding company
and bank merger orders, and pending
cases.
Revised statement by state and federal
bank supervisors on classification of bank
assets and appraisal of securities in bank
examinations.
Revision of data for assets and liabilities
of large commercial banks.
Change in Board staff.
Admission of two state banks to member
ship in the Federal Reserve System.
Al
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A69 G u id e t o T a b u l a r P r e s e n t a t i o n
a n d S ta t i s t i c a l R e le a s e s
409 R e c o r d o f P o l i c y A c t i o 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 on March 20, 1979, the
Committee decided that ranges of toler
ance for the annual rates of growth in M -l
and M-2 over the March-April period
should be 4 to 8 percent and 3 Vi to IV2
percent, respectively. The Manager was
instructed to direct open market operations
initially toward maintaining the federal
funds rate at about the current level, rep
resented by a rate of about 10 percent
or slightly higher. Subsequently, if the
two-month growth rates of M -l and M-2
F i n a n c i a l a n d B u s in e s s S t a t i s t i c s
A70 B o a r d o f G o v e r n o r s a n d S t a f f
A ll
O p e n M a r k e t C o m m it t e e a n d S t a f f ;
A d v is o r y C o u n c il s
A73 F e d e r a l R e s e r v e B a n k s , B r a n c h e s ,
a n d O ffic e s
A74 F e d e r a l R e s e r v e B o a r d P u b l i c a t i o n s
A76 I n d e x t o S t a t i s t i c a l T a b l e s
A78 M a p o f F e d e r a l R e s e r v e S y s t e m
Dom estic Financial Developments in
the First Quarter of 1979
efforts by the public to minimize low-earning
transactional and precautionary cash balances in
order to take advantage of the historically high
rates of return available on market instruments
and on six-month money market certificates.
Growth of the major monetary aggregates in
the first quarter fell below rates consistent with
the long-run ranges set by the Federal Open
Market Committee for the period from the
fourth quarter of 1978 to the fourth quarter of
1979. Bank credit growth, on the other hand,
exceeded the associated FOMC ranges for this
measure. In light of the quickening pace of
inflation, the strength of final demands in the
economy in the fourth quarter of 1978, and the
relatively small margin of unutilized labor and
capital resources, the Federal Reserve main
tained the firmer stance in money markets that
it had adopted late last year. The federal funds
rate remained virtually unchanged throughout
the first three months of 1979 at just over 10
percent. Yields on short-dated Treasury bills
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.
The behavior of the monetary aggregates was
weak in the first quarter, with M-1 (the narrow
money supply) contracting and the broader ag
gregates growing only slowly. M-1 fell well
short of the path suggested by the past relation
ship of this measure to changes in income and
interest rates, even after allowance for shifts into
savings accounts accessed by automatic transfer
services (ATS) and into negotiable order of
withdrawal (NOW) accounts in New York
State. Meanwhile, outflows of savings deposits
and small-denomination time deposits subject to
fixed interest rate ceilings accelerated at com
mercial banks and remained substantial at thrift
institutions during the first quarter. This overall
pattern of weakness appears to reflect unusual
Interest rates
N otes:
Percent per annum
SHORT TERM
LONG-TERM
Conventional
mortgages
HUD
Aaa utility
New issue
Federal ft
U.S. government
State and local
government
y ------
M onthly averages except for
Federal Reserve discount rate and
conventional mortgages (based on
q u o ta tio n s fo r o n e d ay each
m onth). Yields: U .S. Treasury
bills, market yields on three-m onth
issues; prime com mercial paper,
dealer offering rates; conventional
m ortgages, rates on first m ortgages
in primary m arkets, unweighted
and rounded to nearest 5 basis
points, from Departm ent of H ous
ing and Urban D evelopm ent; Aaa
utility bonds, weighted averages of
new publicly offered bonds rated
Aaa, Aa, and A by M oody’s In
vestors Service and adjusted to Aaa
basis; U .S . governm ent bonds,
market yields adjusted to 20-year
constant m aturity by U .S . T reas
ury; state and local governm ent
bonds (20 issues, m ixed quality),
B on d B uyer.
378
Federal Reserve Bulletin □ May 1979
Changes in selected monetary aggregates1
Seasonally adjusted annual rate of change, in percent
Item
1976
1978
1977
1979
1978
Ql
Q2
Q3
Q4
Ql
M em b er bank res e rv e s 2
Total ..........................................................
Nonborrowed ............................................
.6
.8
5.3
3.0
6.6
6.7
8.9
14.5
6.2
.6
8.6
6.6
2.3
4.6
- 2 .9
- 3 .3
5.8
10.9
12.7
7.1
10.2
7.9
9.8
11.7
10.1
11.7
7.3
8.5
9.4
10.5
10.5
6 .6
7.0
8.1
10.2
10.0
9.2
8.4
8.4
10.6
9.8
8.1
9.9
10.4
10.1
10.5
4.4
7.7
9.3
9.4
10.2
-2 .4
1.6
4 .6
4 .4
6.1
Savings .......................................................
Other time ................................................
Small time plus total savings4 ............
15.0
25.0
7.5
19.2
11.2
11.1
11.4
10.5
9.4
1.8
16.1
5.6.
7.2
2.0
11.7
3.1
7.9
3.8
11.4
6.2
11.1
2.3
18.5
6.3
10.2
- .9
19.2
6.1
4.4
-1 0 .2
15.9
2.1
Deposits at thrift institutions5 ............
15.6
14.5
10.6
9.7
8.5
11.1
11.6
8.8
-1 9 .0
- .8
16.4
14.8
8.0
10.8
14.5
12.3
23.1
22.8
17.3
15.9
8.4
5.4
1.8
5.2
6.6
3.7
3.8
.8
2.6
7.1
5.1
3.2
5.5
6.6
6.6
6.7
7.0
3.6
7.8
8.7
C o n cep ts o f m o n ey3
M -l
M-2
M-3
M-4
M-5
............................................................
............................................................
............................................................
............................................................
............................................................
Time and savin gs d ep o sits a t
com m ercial banks— T otal
(excluding large negotiable
C D s) ..................................................
Memo (change in billions of dollars,
seasonally adjusted)
Large negotiable CDs at large
banks ............................................
All other large time deposits6 ............
Small time deposits ................................
Nondeposit sources of funds7 ............
1. Changes are calculated from the average amounts outstanding in each quarter.
2. Annual rates of change in reserve measures have been adjusted for changes in reserve requirem ents.
3. M -l is currency plus private dem and deposits adjusted. M-2 is M -l plus bank time and savings deposits other than large
negotiable CDs. 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 CDs. M-5 is M-3 plus large negotiable CDs.
4. Interest-bearing deposits subject to Regulation Q.
5. Savings and loan associations, mutual savings banks, and credit unions.
6. Total large time deposits less negotiable CDs at weekly reporting banks.
7. Nondeposit sources of funds include borrowings by com mercial banks from other than comm ercial banks in the form
of federal funds purchased, securities sold under agreements to repurchase, and other liabilities to own foreign branches (Eurodollar
borrow ings), loans sold to affiliates, loan repurchase agreem ents, borrowings from Federal Reserve Banks, and other minor items.
continued to move upward in the first quarter—
although much less sharply than in other recent
quarters— reflecting in part sales of such securi
ties by foreign central banks as the dollar
strengthened on foreign exchange markets.
Many private short-term rates, by contrast, de
clined somewhat as a result of substantial pri
vate capital inflows from abroad along with the
market’s reaction to the stability of the federal
funds rate and to information suggesting con
tinued sluggishness of the monetary aggregates
as well as a slowing in economic growth. In
late April, however, when the monetary aggre
gates— particularly M -l— rebounded strongly,
the federal funds rate moved up about an eighth
to a quarter of a percentage point and most other
short-term market rates showed similar in
creases.
Long-term bond yields edged up approxi
mately 10 basis points during the first quarter
and rose an additional 25 basis points in April,
as the worsening performance of the major price
indexes evidently led to some increase in ex
pected inflation rates. An increase in stock
prices in the first quarter accompanied corporate
reports of higher profits and dividends following
strong growth of earnings in the fourth quarter.
Mortgage rates rose somewhat over the quarter,
apparently reflecting in part greater caution by
thrift institutions in making mortgage loan
commitments; deposit inflows recently have di
minished, in part because of a reduction in the
interest rate permitted to be paid on money
market certificates.
Funds raised in U.S. credit markets by the
nonfinancial sectors declined in the first quarter
D om estic Financial Developm ents Q l 1979
to a rate well below that of the last two years.
Part of this decline reflected a reduction in
borrowing by foreigners as dollar-denominated
liabilities became less attractive with the
strengthening of the currency’s performance in
international markets. In addition, the issuance
of federal debt was substantially reduced, and
the growth in household mortgage and consumer
debt slowed. Net state and local borrowing was
about unchanged at the low pace of the previous
quarter. Nonfinancial businesses, however,
stepped up their borrowing— primarily at com
mercial banks— as spending on inventories and
plant and equipment increased more rapidly than
flows of internal funds.
M
onetary
and
Bank
379
Changes in income velocity of M-l and M-2
A ggregates
C r e d it
M -l contracted at an annual rate of 2V* percent
in the first quarter, extending a period of flatness
that began early last fall. The sluggishness of
the narrow money stock reflected in part shifts
from demand accounts into ATS savings depos
its nationwide and NOW accounts in New York
State, which are estimated to have reduced
growth in M -l in the first quarter by about 2 3A
percentage points. First authorized in No
vember, such accounts grew $4^ billion in the
first three months of the year (quarterly average
basis), with about 60 percent of the funds esti
mated to have come from demand deposits.
Even if an adjustment were made for the
effects of such shifts, the stock of M -l would
have remained almost unchanged in the first
quarter. The performance of M -l partly reflects
the normal lagged adjustment of money demand
to the very rapid rise in short-term market inter
est rates late last year. However, M -l fell fur
ther below the path suggested by the historical
relationship among the money stock, income,
and short-term interest rates. This second con
secutive quarter of substantial shortfall appears
to have been related to greater-than-usual efforts
to economize on non-interest-bearing assets,
especially on the part of smaller businesses and
of households. It is likely that the high level
of interest rates and recent regulatory changes
have induced businesses and households to
Seasonally adjusted annual rates. M oney stock data are
quarterly averages.
adopt more intensive cash management tech
niques. The sharp deceleration of M -l exceeded
the slowdown in growth of nominal gross na
tional product; accordingly, growth in the ve
locity of M -l picked up to an annual rate of
13 percent— the largest quarterly advance of
velocity in more than two and a half decades.
The rate of expansion in M-2 also slowed
markedly in the first quarter, due to a deceler
ation in its interest-bearing component as well
as to the decline in M -1. The pattern of deposit
flows among different types of interest-bearing
instruments varied considerably, however,
owing to large differences between interest rates
fixed by regulation and market rates of return.
The spread between yields on short-term Treas
ury bills and the maximum allowable rate pay
able on savings deposits widened another 1/2
of a percentage point in March to a near-record
5Vz percentage points. Reflecting the size and
duration of this spread, savings deposits at
commercial banks declined at an annual rate of
IOV4 percent in the first quarter, despite the
substantial inflows to ATS and New York NOW
accounts. Similarly, small-denomination time
380
Federal Reserve Bulletin □ May 1979
Treasury yield curves and deposit rate ceilings
0
1
2
3
4
5
6
7
8
____________ Years to maturity____________________
♦M aximum yield on m oney market time deposits at com
m ercial banks and thrift institutions for M arch 28, 1979,
com pounded sem iannually.
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.
deposits subject to fixed-rate ceilings declined
for the third consecutive quarter. However, the
issuance of six-month money market certificates
(MMCs), the ceiling yield on which is deter
mined weekly by the six-month Treasury bill
auction rate, continued at a rapid pace in the
quarter.
By the end of March, outstanding MMCs had
grown to $131.5 billion, an increase of $54.9
billion in the first quarter, and accounted for
10 percent of small-denomination time and sav
ings deposits at commercial banks and more
than 15 percent of deposits at thrift institutions.
Effective March 15, regulations governing this
instrument were changed, and its attractive
ness— particularly to customers of thrift insti
tutions— was reduced somewhat. The new reg
ulations prohibited compounding of interest
and, during periods when bill rates exceed 9
percent, eliminated the differential between the
ceiling rates for commercial banks and thrift
institutions. The rapid growth in MMCs has
been accompanied by a record expansion of
money market mutual funds. The total assets
of these funds rose almost $7 billion, not sea
sonally adjusted, from December to March, well
over twice the increase of the previous quarter.
At mutual savings banks and savings and loan
institutions, deposit expansion slowed some
what in the first quarter, even with brisk net
issuance of MMCs. At credit unions, where is
suance of MMCs has been very limited, de
posits were almost flat in the first quarter, the
first time in more than 20 years that this financial
intermediary has failed to show meaningful de
posit growth. With expansion in all its major
components slowing, growth in M-3 decelerated
in the first quarter to an annual rate of AVi
percent, about half its growth last year.
Credit at commercial banks expanded more
rapidly on average in the first quarter as banks
reversed their recent policy of liquidating U.S.
government securities and increased net acqui
sitions of other securities. Loan growth contin
ued at a moderate pace, bolstered by a surge
in business borrowing at banks as expansion in
real estate and consumer loans slowed some
what.
Components of
bank credit
Major categories of
bank loans
Change, billions of dollars
TREASURY SECURITIES
BUSINESS
4
12
H --- Q
8
u
4
n
n
0
REAL ESTATE
OTHER SECURITIES
n
4
a
8
12
4
n .l
8
I 0
TOTAL LOANS
4
: 32
0
m
CONSUMER
12
;2 4
8
4
16
0
NONBANK FINANCIAL
4
+
0
Ql
Q2
Q3
1978
Q4
Ql
1979
Ql
Q2
Q3
1978
Q4 1 Ql
1979
Seasonally adjusted. Total loans and business loans adjusted
for transfer between banks and their holding com panies, affili
ates, subsidiaries, or foreign branches.
Domestic Financial Developments Q l 1979
With reduced inflows of deposits subject to
rate ceilings, banks financed a large part of their
credit expansion by acquiring $8% billion in
nondeposit sources of funds, largely through
security repurchase agreements, federal funds
purchased from nonbank sources, and Eurodol
lar borrowings. In addition, banks acquired
substantial funds by liquidating claims on their
foreign branches and through increases in
Treasury note balances held at banks. These
balances— acquired under the tax-and-loan ac
count program that began last November 2—
rose to an average of $ 1 0 V2 billion during the
first quarter, compared with an average of just
over $6 billion during November and December
of last year. As banks increased their use of
these sources of funds, they issued a smaller
volume of large certificates of deposit, likely
due to an increase in the relative cost of the
latter funds.
B u s in e s s F i n a n c e
Boosted by a pickup in inventory accumulation,
capital expenditures expanded more rapidly than
did internally generated funds of nonfinancial
corporations in the first quarter. To meet the
resulting rise in financing requirements, these
firms increased considerably their reliance on
short-term credit and continued to make sub
stantial use of commercial mortgages as a source
of long-term credit. Their net offerings of bonds
and stocks declined. The increasing use of
Nonfinancial corporations
Ratio of short-term to total debt outstanding
Percent
Based on flow of funds data. 1979 Ql estimated. Seasonally
adjusted.
381
B u sin ess loans and shortand interm ediate-term bu sin ess credit
Seasonally adjusted annual rate of change, in percent
Business loans
at b an k s1
Period
Total
Excluding
bank holdings
of bankers
acceptances
Total short- and
intermediate-term
business credit2
1975— Q l
Q2
Q3
Q4
...
...
...
. ..
- 5 .2
- 8 .7
- 2 .4
- 7 .4
- 9 .0
- 2 .9
- 2 .3
- 4 .2
-9 .1
- .7
- 3 .7
1976—Q l
02
Q3
Q4
...
...
...
...
- 6 .9
1.6
5.3
10.6
- 6 .6
2.1
2.8
9.7
- 1 .2
5.7
2.5
12.8
1977— Q l
Q2
Q3
Q4
...
...
...
...
11.2
12.8
11.2
11.7
13.3
12.9
10.4
12.6
14.6
15.9
10.7
16.1
1978— Q l
Q2
Q3
Q4
...
...
...
...
15.3
17.4
11.4
9.3
16.8
17.9
11.4
11.3
15.1
16.8
10.5
17.0
1979— Q l .. .
21.8
21.0
19.9
1. Based on data for last W ednesday of m onth, adjusted
for outstanding amounts of loans sold to affiliates.
2. Short- and intermediate-term business credit is business
loans at comm ercial banks excluding bank holdings of bankers
acceptances plus nonfinancial com pany comm ercial paper and
finance com pany loans to businesses m easured from end of
quarter to end of quarter.
short-term financing has been reflected in a
steady rise since mid-1976 in the ratio of short
term to long-term debt outstanding for nonfi
nancial corporations. At the end of the first
quarter, this ratio once again stood near its 1974
peak of more than 26 percent.
Much of the growth in short-term credit in
the first quarter of 1979 was due to an acceler
ation in the pace of business borrowing from
commercial banks; data from large banks indi
cate that borrowing by public utilities and trade
concerns was particularly heavy. The growth in
bank loans to business more than offset the
reduced— though still substantial— rate of in
crease of commercial paper oustanding. Despite
the increased demand for business credit, inter
est rates on private short-term credit instruments
moved downward in the first quarter, in part
due to an increase in the supply of short-term
private capital from abroad. Although the prime
rate at the majority of banks remained un-
382
Federal Reserve Bulletin □ May 1979
changed over this period at 1 1 % percent (after
a rise of 2 percentage points in the fourth
quarter), the cost of credit at money center
banks appears to have been affected by the
downward movement of short-term market
rates. A few banks posted reductions of 1/4 of
a percentage point in their prime rates in early
February; information as of midquarter indicates
some easing in nonprice lending terms by large
banks, including less restrictive qualifications
for the prime rate and some reduction in compensating-balancerequirements. Moreover, con
sistent with these reports, survey data from
money center banks as of early February showed
a substantial increase in loans made at rates
below prime.
Nonfinancial corporations, in particular highly
rated industrial firms, reduced their public of
ferings of bonds in the first quarter. The high
level of long-term rates apparently discouraged
the issuance of call-protected bonds by many
of these firms. Nonetheless, the volume of private-placement takedowns, which serve pre
dominantly as a source of credit for small or
lower-rated firms, is estimated to have been well
above its pace in the fourth quarter.
Public offerings of bonds by financial con
cerns increased in the first quarter, due mainly
to a rise in issues of finance companies. These
companies used much of the proceeds of the
offerings to reduce outstanding commercial
paper and other short-term indebtedness, which
had grown sharply in recent quarters as the
companies expanded their business- and con
sumer-lending activities.
Gross offerings of new security issues
Seasonally adjusted annual rates, in billions of dollars
1979
1978
Type of security
Ql
Q2
Q3
Q 4e
Q le
C orporate, total .........
Bonds .......................
Publicly offered
Privately placed
Stocks .....................
42
35
18
17
7
48
37
20
17
11
53
41
24
17
12
42
30
18
12
12
42
35
16
19
7
Foreign .........................
5
12
6
5
4
State and local
government ............
44
50
53
47
40
e Estimated.
Yields on corporate bonds edged up some
what further during the first quarter, following
substantial increases during the last three
months of 1978. The index of yields on newly
issued, Aaa-rated utility bonds increased about
5 to 10 basis points to reach 9.6 at the end of
the quarter. In April the utility bond index
jumped an additional 1/4 of a percentage point,
although it still remained below its 1974 high.
Since the first of the year, all major indexes
of stock prices have risen substantially. By late
April, the New York Stock Exchange composite
index had increased approximately 7 percent.
The composite index of the American Stock
Exchange and the over-the-counter composite
index compiled by the National Association of
Securities Dealers both reached record highs in
late April, increasing 20 and 14 percent respec
tively. Although stock prices were generally
higher for firms in most industry classes, much
of the strength in the indexes was related to the
anticipated effect of rising oil prices on the
earnings of energy-related firms. The relatively
larger increase in the American Stock Exchange
composite index, for example, reflects in part
the comparatively high proportion of smaller
domestic and Canadian oil and gas exploration
companies listed on this exchange, as well as
companies engaged in the extraction of primary
metals.
In spite of the increase in stock prices, stock
offerings contracted substantially during the
quarter. Public utilities accounted for most of
the new issues. The reluctance of industrial
corporations to issue new shares was related to
the relatively high cost of equity capital. Con
ventional measures of price-earnings multiples
have fallen to levels only slightly above those
recorded in late 1974, their lowest point in the
postwar era.
G o v e r n m e n t Fin a n c e
Gross bond sales by state and local governments
continued to decline significantly during the first
quarter of 1979. As in the fourth quarter of
1978, there were almost no advance refundings
of outstanding issues, given the high level of
interest rates and the Treasury’s more restrictive
Domestic Financial Developments Q l 1979
383
Federal governm ent borrow ing and cash balance
Quarterly totals, not seasonally adjusted, in billions of dollars
1978
1977
1979
Item
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Treasury financing
Budget surplus, or deficit ( —) ..................................
O tt-budget deficit1 .........................................................
Net cash borrow ings, or repayments ( —) ..............
Other means of financing2 .........................................
Change in cash balance ..............................................
8.6
.1
-1 .1
- .4
7.2
-1 2 .2
- 4 .9
19.54
.4
2.84
-2 8 .8
- 1 .3
20.7
2.6
- 6 .8
-2 5 .8
- 3 .7
20.8
2.8
- 5 .9
14.0
- 2 .2
2.5
- 3 .2
11.1
-8 .1
-3 .1
15.1
1.0
4.9
—23.8
- .1
15.2
2.6
-6 .1
-2 0 .4
- 3 .0
10.6
4.2
- 8 .6
Federally sponsored credit agencies,
net cash borrow ings3 ....................................................
3.0
2.0
4.5
6.5
6.1
5.2
7.4
1. Includes outlays of the Pension Benefit Guaranty C or
poration, Postal Service Fund, Rural Electrification and Tele
phone Revolving Fund, Rural Telephone Bank, Housing for
the Elderly or H andicapped Fund, and Federal Financing Bank.
All data have been adjusted to reflect the return of the ExportIm port Bank to the unified budget.
2. Checks issued less checks paid, accrued items, and other
transactions.
rules governing these operations. Gross offer
ings would have been even smaller without a
substantial increase in sales of mortgage revenue
bonds, much of the proceeds of which were used
to finance purchases of single-family housing at
below-market interest rates.
In contrast to the slight increase in long-term
corporate bond yields, the B ond Buyer index
of yields on general obligation bonds declined
appreciably over the first quarter. As in 1978,
the demand for tax-exempt bonds by propertycasualty insurance companies was reported to
have been especially strong. Yields on mortgage
revenue bonds rose, however, in part because
of the heavy volume of such issues.
Treasury borrowing during the first quarter
totaled about $11 billion (not seasonally ad
justed), compared with $15 billion in each of
the last two quarters of 1978. Even though the
combined federal deficit— which includes the
net outlays of off-budget agencies— remained
large, a substantial portion of the deficit was
financed by drawing down Treasury cash bal
ances.
In sharp contrast with earlier quarters, lenders
generally reduced their holdings of nonmarket
able Treasury obligations during the first quar
ter. As the dollar strengthened in international
exchange markets, foreign central banks were
substantial net sellers of Treasury securities,
1.8
Ql
3. Includes debt of the Federal Home Loan M ortgage C or
poration, Federal Home Loan Banks, Federal Land Banks,
Federal Intermediate Credit Banks, Banks for Cooperatives,
and Federal National M ortgage Association (including discount
notes and securities guaranteed by the G overnm ent National
M ortgage Association).
4. Includes $2.5 billion of borrowing from the Federal
Reserve on Septem ber 30, which was repaid October 4 fol
lowing enactm ent of a new debt ceiling bill.
both marketable and nonmarketable. To a lesser
extent, the decline in nonmarketable debt out
standing was caused by a reduction in holdings
of savings notes and bonds— the first quarterly
decline since 1970— and a small paydown in
securities issued to state and local governments
for earlier advance refundings. As a result, the
Treasury’s borrowing in the first quarter was
accomplished through sales of marketable se
curities combined with the sale of a special
nonmarketable issue to the Federal Reserve.
This special issue, necessitated by a congres
sional delay in raising the national debt ceiling
at the end of the quarter, was repaid shortly
thereafter. The delay also caused postponements
of Treasury debt operations after mid-March.
Some downward pressure on short-term Treas
ury yields resulted from the cancellation of these
Treasury auctions, but the situation was quickly
reversed after passage of the new debt ceiling
legislation on April 2.
Net borrowing by federally sponsored credit
agencies reached a record $7.4 billion in the
first quarter, based on offerings not seasonally
adjusted. This increase reflected higher levels
of borrowing by both the farm credit and the
housing agencies: $2.8 billion for the Farm
Credit System and $4.6 billion for the Federal
National Mortgage Association (FNMA) and the
Federal Home Loan Banks (FHLBs). Purchases
384
Federal Reserve Bulletin □ May 1979
of mortgages by FNMA accounted for about
two-thirds of the money raised by the housing
agencies. The FHLBs increased their borrowing
largely to improve their liquidity. Advances to
savings and loans in the first quarter decreased
much less than the normal seasonal decline for
this period.
Movements in interest rates on Treasury se
curities were mixed over the first quarter. Yields
on shorter-dated bills rose sharply relative to
those on short-term private securities, largely
because of sizable sales of bills by foreign
central banks. Those on long-term government
bonds edged up slightly over the quarter, in
concert with rates paid on long-term corporate
bonds and on new commitments for home
mortgages in the primary market. In late April,
interest rates on both short- and long-term
Treasury issues increased along with the rise in
private market rates.
M o r t g a g e a n d C o n s u m e r C r e d it
Net mortgage lending dropped substantially
from its record level in the fourth quarter of
1978. Savings and loan associations and com
mercial banks greatly reduced their net lending
in mortgage markets; most other major sources
of mortgage credit continued to lend at roughly
the same pace as during the previous quarter.
Also, savings and loans in many areas decreased
substantially their oustanding commitments to
acquire mortgages.
The relatively large decline in net mortgage
lending at savings and loan associations was
partly a response to the reduced pace of deposit
inflows during the two preceding quarters. De
posit growth has slowed despite comparatively
high yields on six-month money market certifi
cates, in part because of the competition pro
vided by alternative short-term investment out
lets such as money market mutual funds. In the
first quarter, the slowing in deposit growth was
offset only partially by the continued high rate
of borrowing (seasonally adjusted) by savings
and loans from FHLBs. Moreover, in contrast
with past periods of reduced mortgage activity,
savings and loans chose not to draw down their
liquidity to help sustain their mortgage lending.
Although their accumulation of liquid assets
slowed, average liquidity— measured as the
ratio of cash and liquid assets to the sum of
short-term borrowings and deposits— remained
around the 9 percent level that had prevailed
during the fourth quarter. Savings and loans
may have been reluctant to commit high-cost,
short-term funds to long-term mortgages in the
face of uncertainty about the future course of
interest rates and deposit flows. At the same
time, however, some reduction in mortgage
lending in the first quarter may have been due
to the effects on housing demand of severe
weather and record-high mortgage interest rates;
in some states, the restrictive effect of usury
ceilings on the supply of conventional home
mortgage credit may have played a role. More
over, originations of home mortgages insured
by the Federal Housing Administration or
guaranteed by the Veterans Administration
reportedly were hindered by the below-market
interest rate ceiling of 9 Vz percent on such
government-underwritten loans. Toward late
N et change in m ortgage debt outstanding
Seasonally adjusted annual rates, in billions of dollars
1979
1978
Mortgage debt
Total
................................
Q lr
Q 2r Q 3r
Q 4r
133
146
154
161
142
105
28
114
32
116
38
125
36
113
29
27
53
7
36
52
6
39
48
7
37
52
6
28
43
6
6
5
35
9
12
31
10
9
41
12
9
45
10
11
44
Q lc
T ype o f d eb t
Residential .....................
O th er1 ..............................
T ype o f h older
Commercial banks .......
Savings and loans .........
Mutual savings banks ..
Life insurance
com panies ..................
FNMA and GNM A . . . .
O ther2 ..............................
1. Includes comm ercial and other nonresidential as well as
farm properties.
2. Includes mortgage pools backing securities guaranteed
by the G overnm ent National M ortgage Association, Federal
Home Loan M ortgage Corporation, or Farmers Home Adm in
istration, some of which may have been purchased by the
institutions shown separately.
e Partially estimated.
r Revised.
D om estic Financial Developm ents Q l 1979
April, the Department of Housing and Urban
Development and the Veterans Administration
raised the maximum rate to 10 percent.
The average of interest rates on new commit
ments for 80 percent, 30-year conventional
home mortgages at savings and loan associa
tions has risen about 20 basis points since the
beginning of 1979, to a record 10.6 percent in
early May. A number of states with ceiling rates
of 10 percent or less on conventional home
385
mortgages have moved to relax or abolish the
ceilings, thereby relieving shortages of mort
gage money in some areas.
The growth of outstanding consumer install
ment credit averaged 15 percent at a seasonally
adjusted annual rate for the first quarter, down
markedly from 20 percent for 1978. The effect
of unusually harsh weather on consumer spend
ing early in the quarter may have been partly
responsible for the drop.
□
387
Survey of Time and Savings D eposits
at Commercial Banks, January 1979
D avid M . L efever of the B o a rd ’s D ivision of
Research and Statistics prepared this article.
Total time and savings deposits at insured com
mercial banks, not adjusted for seasonal varia
tion, expanded 3 percent during the period from
October 26, 1978, to January 31, 1979, slightly
less than the increase of 3 Va. percent over the
preceding survey quarter.1 Net inflows of sav
ings deposits and interest-bearing, small-de
nomination time deposits (less than $ 100,000)
totaled more than $2Vi billion during the October-January period; during the July-October
survey period these deposits grew $6Vi billion.
To help finance expansion of bank credit when
flows into savings and small-denomination time
deposits were moderating, banks raised $ 16V2
billion through the issuance of large-denomi
nation ($100,000 or more) time deposits. In the
preceding survey period, net sales of large-de1. Surveys of time and savings deposits (STSD) at
all member banks were conducted by the Board of
Governors 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 Federal D eposit Insurance Corporation (FDIC).
Since the beginning of 1968 the Board of Governors
and the FDIC have conducted the joint quarterly surveys
to provide estim ates for all insured com mercial banks
based on a probability sample of banks. The results of
all earlier surveys have appeared in previous issues of
the F ederal R eserve B u lletin from 1966 to 1978,
most recently February 1979.
The current sample— designed to provide estimates
of the com position of deposits— includes about 560
insured com mercial banks. For details of the statistical
m ethodology, see “ Survey of Time and Savings D e
posits, July 1 9 7 6 ,” in B u l l e t in , vol. 63 (December
1976), pp. 9 8 6 -1 0 0 0 .
Detailed data for the current survey (formerly con
tained in appendix tables) are available on request from
Publications Services, D ivision of Support Services,
Board of Governors of the Federal Reserve System ,
W ashington, D .C . 20551.
nomination time deposits, which are not subject
to interest rate ceilings, had been $12V4 billion.
The change in the composition of savings and
small-denomination time deposits reflected fur
ther increases in market interest rates above
fixed regulatory ceilings and continued rapid
inflows of the six-month money market certifi
cates (MMCs); the variable maximum legal rate
on MMCs, which exceeded the allowable rate
on all deposits subject to fixed-rate ceilings
throughout the period, contributed to a net
growth of MMCs totaling $18 billion. Savings
and small-denomination time deposits excluding
MMCs fell $15% billion, compared with a de
crease of $5 Vi billion during the previous survey
quarter. Although MMCs drew substantially
from other types of bank deposits, they likely
attracted some funds that otherwise would have
been invested in market instruments.
S a v in g s D e p o s it s
During the October-January period, commercial
banks experienced the largest quarterly net out
flow of savings deposits, not seasonally ad
justed, since the first of these surveys in late
1965. The decline in savings accounts of more
than $ 7 V a billion followed an increase of $ 1%
billion during the July-October period and a
decline of $lVi billion during the April-July
period. The decrease of savings deposits re
flected continued high rates on alternative in
struments, such as Treasury bills, shares of
money market mutual funds, and MMCs. By
the end of January, the maximum allowable
yield on savings deposits was nearly 4 Vi per
centage points below rates on these alternative
issues.
Each of the three major ownership sectors
388
Federal Reserve Bulletin □ May 1979
reduced their holdings of savings deposits. Ac
counts held by individuals and nonprofit organi
zations declined $5% billion despite the growth
of $5 billion in automatic transfer service ac
counts nationwide and in negotiable order of
withdrawal accounts in New York State. The
net outflow from accounts issued to individuals
during the recent survey period and during the
April-July 1978 survey period were the only
declines recorded since early 1970. Savings
deposits of businesses fell more than $800 mil
lion, after sluggish growth during the previous
five survey quarters; savings accounts of do
mestic governmental units declined for the third
straight quarter. The average rate of interest on
seivings deposits was 4.94 percent, essentially
unchanged from the previous survey.
S m a l l -D e n o m i n a
Tim e D e p o s it s
t io n
The outstanding level of interest-earning,
small-denomination time deposits— consisting
of all maturity categories, including MMCs,
individual retirement accounts (IRAs), and
Keogh accounts— rose almost $10 billion, not
seasonally adjusted, during the October-January
period to more than $190 billion, following an
increase of $5 billion in the previous period.
The outstanding level of MMCs jumped more
than $18 billion, compared with an increase of
$8V2 billion during the July-October period.
While most other categories of small-denomi
nation time deposits decelerated or declined,
IRAs and Keogh accounts continued to grow
1. Time and savings deposits held by insured commercial banks on recent survey dates
Deposits
Number o f issuing banks
Type o f deposit, denomination,
and original maturity
Millions o f dollars
July 26,
1978
Oct. 25,
1978
Jan. 31,
1979
July 26,
1978
Oct. 25,
1978
Percentage change
Jan. 31.
1979
July 26Oct. 25
Oct. 25Jan. 31
Total time and savings deposits.............................
14,338
14,299
14,269
576,366
595,194
613,147
3.3
3 .0
Savings........................................................................
Holder
Individuals and nonprofit organizations.........
Partnerships and corporations operated for
profit (other than commercial banks). ..
Domestic governmental units...........................
All other.................................................................
14,338
14,299
14,269
220,583
222,114
214,791
.7
-3 .3
14,338
14,299
14,269
204,847
205,863
200,193
.5
- 2 .8
9,989
8,023
1,268
9,857
8,285
1,228
9,735
8,050
1,244
10,646
4,954
137
11,293
4,842
116
10,475
3,991
133
6.1
- 2 .3
- 1 5 .2
-7 .2
-1 7 .6
14.7
14,095
14,008
14,179
175,336
180,373
190,314
2.9
5.5
10,873
4,770
7,961
5,539
8,867
14,092
6,125
11,700
8,458
13,769
12,902
13,044
10,765
6,186
10,646
4,903
7,544
5,438
8,175
14,008
5,510
11,439
8,172
13,751
12,822
12,920
10,965
7,790
10,539
4,636
7,716
4,752
8,379
14,179
5,104
11,236
8,321
13,765
13,002
13,416
11,470
7,909
4,006
918
1,166
666
1,256
163,178
5,413
29,392
3,156
32,857
18,346
50,850
21,738
1,427
3,725
988
1,095
620
1,022
159,766
4,385
28,929
3,248
31,006
17,475
49,571
22,847
2,306
3,252
662
1,245
367
979
151,579
3,758
25,606
3,350
28,349
16,420
48,273
23,071
2,753
- 7 .0
7.6
-6 .1
-6 .9
-1 8 .7
- 2 .1
-1 9 .0
- 1 .6
2.9
-5 .6
-4 .7
-2 .5
5.1
61.5
-1 2 .7
- 3 3 .1
13.7
- 4 0 .9
- 4 .1
- 5 .1
- 1 4 .3
- 1 1 .5
3.1
-8 .6
-6 .0
- 2 .6
1.0
19.4
9,364
9,329
10,015
2,770
3,005
3,533
8.5
17.6
9,102
10,428
12,228
5,381
13,877
31,949
157.9
130.2
Interest-bearing time deposits, $100,000 or
m ore...................................................................
11,531
11,789
11,875
174,048
186,328
202,807
7.1
8.8
Non-interest-bearing time deposits......................
Less than $100,000...............................................
$100,000 or more.................................................
1,447
1,177
658
1,730
1,411
680
1,604
1,254
745
4,272
694
3,578
4,222
722
3,500
4,379
658
3,721
-1 .2
4 .0
-2 .2
3 .7
-8 .9
6.3
Club accounts (Christmas savings, vacation,
and the like).....................................................
9,550
9,230
9,193
2,128
2,159
857
1.5
-6 0 .3
Interest-bearing time deposits, less than
$100,000.............................................................
Holder
Domestic governmental units1..........................
30 up to 90 days...............................................
90 up to 180 days............................................
Other than domestic governmental units1. . .
30 up to 90 days...............................................
1 up to 2 V4 years.............................................
8 years and over..............................................
IRA and Keogh Plan time deposits, 3 years
or more..........................................................
Money market certificates, $10,000 or more,
exactly 6 months..........................................
1. Excludes all money market certificates, IRAs, and Keogh Plan
accounts.
N ote. All banks that had either discontinued offering or never
offered certain types o f deposits as o f the survey date are not counted
as issuing banks. However, small amounts o f deposits held at banks
that had discontinued issuing certain types o f deposits are included
in the amounts outstanding.
Details may not add to totals because o f rounding,
Survey of Time and Savings D eposits
389
2. Small-denomination time and savings deposits held by insured commercial banks on January 31, 1979,
compared with previous survey, by type of deposit, by most common rate paid on new deposits in each
category, and by size of bank
Size o f bank
(total deposits in m illions o f dollars)
Less than 100
Jan. 31,
1979
Size o f bank
(total deposits in m illions o f dollars)
A ll banks
A ll banks
D ep osit group, original
maturity, and distribu
tion o f deposits by
m ost com m on rate
Oct. 25,
1978
Jan. 31,
1979
Oct. 25,
1978
100 and over
Jan. 31,
1979
Oct. 25,
1978
Less than 100
Jan. 31,
1979
Oct. 25,
1978
Jan. 31,
1979
Oct. 25,
1978
100 and over
Jan. 31,
1979
Oct. 25,
1978
A m ount o f deposits (in m illions o f dollars),
or percentage distribution
N um ber o f banks, or percentage distribution
Savings deposits
Individuals and nonprofit
organizations
Issuing b a n k s...................
D istribution, to ta l.........
4.00 or le s s ...................
4 .0 1 -4 .5 0 .......................
4 .5 1 -5 .0 0 .......................
14,269
14,299
13,160
13,226
100
100
100
100
P a y in g c eilin g r a t e 1.. .
Partnerships and corpora
tions
Issuing b a n k s..................
D istribution, to ta l.........
4.00 or le s s ...................
4 .0 1 -4 .5 0 .......................
4 .5 1 -5 .0 0 .......................
P a y in g c eilin g r a t e 1.. .
Domestic
units
1,109
1,073
2 00,193
205,863
100
100
2.8
76,2 0 8
7 9 ,5 3 5
100
100
100
123,985
126,328
100
100
100
88.8
88.8
4 .1
8 .5
8 7 .3
8 7 .3
4 .0
4 .3
9 1 .7
9 1 .7
9 ,8 5 7
8,651
8,801
100
100
1.6
100
4 .3
6 .7
8 9 .0
8 9 .0
4 .0
8 .3
8 7 .6
8 7 .6
9 ,7 3 5
100
1 .5
4 .5
9 4 .0
9 3 .7
1 .4
4 .6
9 4 .0
9 3 .7
8 ,0 2 4
100
4 .3
6 .9
4 .8
9 3 .6
9 3 .3
1 .5
4 .7
9 3 .8
9 3 .5
8,2 8 5
7 ,2 5 0
7 ,5 5 3
100
100
100
5 .8
9 1 .4
9 1 .4
3 .2
5 .1
9 1 .7
9 1 .7
2 .9
7 .0
9 0 .0
9 0 .0
3 .6
7 .0
8 9 .3
8 9 .3
1,084
1,057
10,475
11,293
100
100
100
100
.8
2.1
97 .1
9 7 .1
.9
3 .4
9 5 .7
9 5 .7
.4
4 .0
9 5 .6
9 5 .6
732
.4
3 .8
9 5 .8
9 5 .7
3 .7
8 7 .7
8 7 .7
2 .9
3 .9
9 3 .1
9 3 .1
9 1 .5
9 1 .5
3 ,3 9 5
3 ,5 2 3
100
1.0
7 ,0 8 0
7 ,7 7 0
100
1.0
100
100
3 .6
9 5 .4
9 5 .2
3 .4
9 5 .5
9 5 .5
4 .2
9 5 .7
9 5 .7
4 .0
9 5 .8
9 5 .8
2,010
100
2 ,6 5 9
1,980
2 ,1 8 3
100
1.8
6.1
100
100
8.6
.1
2 .5
6 .0
.2
governmental
Issuing b a n k s...................
D istribution, to ta l.........
4.00 or le s s ...................
4 .0 1 -4 .5 0 .......................
4 .5 1 -5 .0 0 .......................
P a y in g c e ilin g r a t e 1.. .
A ll other
Issuing b a n k s...................
D istribution, to ta l.........
4.00 or le s s ...................
4 .0 1 -4 .5 0 .......................
4 .5 1 -5 .0 0 .......................
P a y in g c eilin g r a t e 1.. .
2 .9
2 .3
7 .5
9 0 .2
8 9 .9
1,241
100
3.1
9 6 .8
9 6 .8
4 ,6 1 0
6 .2
9 0 .9
9 0 .6
.1
3 .2
2 .5
6.6
8.1
9 0 .2
8 9 .9
8 9 .4
8 9 .1
1,228
1,081
100
12.8
100
1,102
100
6 .7
8 0 .5
8 0 .5
3 .3
( 2)
9 6 .7
9 6 .7
13.9
7 .5
7 8 .6
7 8 .6
4 ,9 0 3
3 ,9 4 7
4 ,2 2 9
100
100
774
100
3 ,989
4 ,8 4 2
.1
100
2.1
100
1.1
1.9
9 7 .9
9 7 .9
4 .7
9 3 .2
9 3 .1
3 .7
9 5 .3
9 5 .2
100
.3
2 .3
9 7 .4
9 7 .4
160
126
100
2.1
100
2 .6
.7
9 7 .2
9 7 .2
( 2)
9 7 .4
9 7 .4
133
100
.2
( 2)
9 9 .8
9 9 .8
4 .1
7 .1
8 8 .9
8 8 .7
116
100
43
100
2 .3
( 2)
9 7 .7
9 7 .7
9 2 .1
9 1 .9
100.0
100.0
2 .3
9 7 .6
9 7 .6
36
100
( 2)
( 2)
.2
90
100
5.1
( 2)
9 4 .9
9 4 .9
.2
.8
9 9 .1
9 9 .1
80
.2
100
1.0
( 2)
9 9 .8
9 9 .8
( 2)
9 9 .0
9 9 .0
Time deposits less than
$100,000
Domestic
governmental
units
30 up to 90 days
Issuing b a n k s..................
D istribution, to t a l..........
4.50 or le s s ...................
4 .5 1 -5 .0 0 .......................
5 .0 1 -5 .5 0 .......................
5 .5 1 -8 .0 0 .......................
P a y in g c eilin g r a t e 1.. .
90 up to 180 days
Issuing b a n k s...................
D istribution, to ta l.........
4.50 or le s s ...................
4 .5 1 -5 .0 0 .......................
5 .0 1 -5 .5 0 .......................
5 .5 1 -8 .0 0 .......................
P a y in g c e ilin g r a t e 1.. .
180 days up to 1 year
Issuing b a n k s..................
D istribution, to ta l.........
4.50 or le s s ...................
4 .5 1 -5 .0 0 .......................
5 .0 1 -5 .5 0 .......................
5 .5 1 -8 .0 0 .......................
P a y in g c e ilin g r a t e 1.. .
100
.2
100
.1
5 8 .6
5 .6
3 5 .7
( 2)
5 8 .9
7 .6
3 3 .5
( 2)
5 6 .6
5 .9
3 7 .4
20.2
11.6
20.8
10.8
7 ,7 1 5
7 ,5 4 4
6 ,8 8 7
6 ,7 1 2
100
100
100
100
5 8 .9
7 .9
33.1
.1
14.3
6 6 .9
18.7
.1
P a y in g c eilin g r a t e 1.. .
For notes see end o f table.
( 2)
66.8
18.4
9 .9
7 0 .9
17.3
2 .5
11.8
10.0
11.5
7 0 .7
17.6
3 .4
4 ,7 0 4
5,415
4 ,0 6 3
4 ,7 9 9
100
100
100
100
( 28 ).4.
60.1
3 1 .6
1 1 .5
( 26.8
)o
6 7 .2
2 6 .1
8.6
( 28.8
)o
60.1
31.1
9 .8
( 27 ).0.
6 7 .2
2 5 .8
7 .6
8 ,3 7 8
8,171
7 ,5 5 2
7 ,3 8 0
100
1.2
2 .6
100
100
1.0
100
1.0
2 .4
5 8 .4
3 8 .2
4 .4
4 .0
5 7 .9
3 7 .2
3 .0
1 year and over
Issuing b a n k s..................
D istribution, to ta l..........
5.00 or le s s ...................
5 .0 1 -5 .5 0 .......................
5 .5 1 -6 .0 0 .......................
6 .0 1 -8 .0 0 .......................
( 2)
14 .8
5 8 .8
37.4
4 .9
1.3
3 .9
5 8 .0
3 6 .7
3 .7
663
100
1 .3
5 9 .0
9 .6
3 0 .2
1 6 .7
828
100
.6
10.5
6 7 .6
2 1 .3
1 1 .3
640
100
( 2)
5 .5
60.1
3 4 .4
22.0
826
100
2 .7
4 .6
6 2 .8
2 9 .9
9 .2
674
100
.8
658
100
.1
988
100
7 0 .8
3 .8
2 4 .6
1 6 .4
3 5 .4
5.1
5 9 .4
4 1 .4
832
1,245
1,094
100
100
100
.7
9 .1
6 9 .8
2 0 .4
1 0 .3
616
100
( 2)
5 .0
6 6 .7
2 8 .4
1 6 .8
791
100
4 .4
3 .3
5 9 .7
3 2 .7
9 .8
.2
5 .5
58.1
3 6 .2
2 7 .7
362
100
( 2)
.5
6 3 .5
3 6 .0
20.8
979
100
2 .4
.9
5 2 .6
4 4 .1
1 0 .7
457
100
.3
4 7 .8
6 .4
4 5 .5
1 5 .6
.1
5.1
6 8 .9
2 6 .0
7 .6
620
100
( 2)
1 .9
6 3 .8
3 4 .2
1 4 .5
1,020
100
.6
2 .0
5 5 .5
4 1 .9
10.8
685
201
100
( 2)
4 3 .4
7 .9
4 8 .8
9 .3
.3
4 1 .8
5 .0
52 .9
4 3 .8
100
( 2)
3 2 .6
5.1
6 2 .3
4 0 .3
918
100
736
100
( 2)
6 .7
5 4 .5
3 8 .9
3 2 .2
208
327
100
( 2)
5 .3
6 9 .3
2 5 .4
3 .2
437
2 7 .0
1 6 .7
154
100
( 2)
( 2)
66.1
66.0
33 .9
1 1 .4
3 3 .3
7 .9
.1
( 2)
5 3 .8
4 6 .0
9 .0
861
100
.1
1.8
5 6 .8
4 1 .3
8 .4
.2
2 8 .7
1 5 .0
100
813
359
100
68.1
( 2)
( 2)
100
.8
5 7 .7
3 .2
3 8 .2
3 0 .0
.8
2 .2
68.2
100
.7
303
100
1.2
60 .1
3& 7
3 3 .5
167
100
13.4
4 .8
4 6 .8
3 5 .0
1 9 .0
4 .7
183
100
( 2)
5 .0
5 8 .6
3 6 .4
3 0 .5
159
100
3 .2
3 .5
4 8 .0
4 5 .3
2 4 .1
390
Federal Reserve Bulletin □ May 1979
TABLE 2—Continued
Size o f bank
(total deposits in m illions o f dollars)
A ll banks
D eposit group, original
m aturity, and distribu
tion o f deposits by
m ost com m on rate
A ll banks
Less than 100
Jan. 31,
1979
Oct. 25,
1978
Jan. 31,
1979
Oct. 25,
1978
100 and over
Jan. 31,
1979
Oct. 25,
1978
Size o f bank
(total deposits in m illions o f dollars)
Less than 100
Jan. 31,
1979
Oct. 25,
1978
Jan. 31,
1979
Oct. 25,
1978
100 and over
Jan. 31,
1979
Oct. 25,
1978
A m ount o f deposits (in m illions o f dollars),
or percentage distribution
N um ber o f banks, or percentage distribution
Time deposits less than
$100,000 (cont.)
Other than domestic gov
ernmental units
30 up to 90 days
5 ,1 0 0
100
1 .0
9 9 .0
9 9 .0
5 ,5 1 0
100
.8
9 9 .2
9 9 .2
4 ,1 8 8
100
.8
9 9 .2
9 9 .2
4 632
100
.7
9 9 .3
9 9 .3
912
100
1 .6
9 8 .4
9 8 .4
877
100
1 .3
9 8 .7
9 8 .7
3 ,7 4 5
100
1 .5
9 8 .5
9 8 .5
4 ,3 6 2
100
1.3
9 8 .7
9 8 .7
778
100
( 2)
1 0 0 .0
1 0 0 .0
909
100
( 2)
1 0 0 .0
1 0 0 .0
2 ,9 6 7
100
1 .9
9 8 .1
9 8 .1
3 ,4 5 2
100
1 7
98! 3
9 8 .3
11,236
100
( 2) ,
5 .6
9 4 .3
9 3 .6
11,439
100
.6
4 .6
9 4 .8
9 4 .2
10,134
100
( 2)
6 .0
9 4 .0
9 3 .3
10,384
100
.7
4 .8
9 4 .5
9 3 .9
1,102
100
.3
2 .4
9 7 .3
9 6 .3
1,055
100
( 2)
2 .3
9 7 .7
9 7 .6
2 5 ,6 0 6
100
( 2)
3 .4
9 6 .6
9 5 .1
2 8 ,9 2 9
100
( 2)
4 .7
9 5 .3
9 4 .9
10,331
100
( 2)
4 .5
9 5 .5
9 5 .5
1 1,543
100
( 2)
4 .5
9 5 .4
9 5 .4
15,274
100
( 2)
2 .7
9 7 .3
9 4 .8
1 7,386
100
( 2)
4 .7
9 5 .3
9 4 .6
8 ,2 9 2
100
.5
4 .0
9 5 .5
9 5 .5
8 ,1 7 2
100
.6
3 .9
9 5 .5
9 5 .5
7 ,4 0 7
100
.5
4 .1
9 5 .4
9 5 .4
7 ,2 9 4
100
.5
4 .1
9 5 .4
9 5 .4
885
100
.9
3 .5
9 5 .6
9 5 .6
878
100
2 .1
2 .3
9 5 .6
9 5 .6
3 ,3 4 3
100
.1
1 .6
9 8 .3
9 8 .3
3 ,2 3 8
100
.2
1 .4
9 8 .4
9 8 .4
1 ,7 2 0
100
( 2)
3 .0
9 7 .0
9 7 .0
1 ,638
100
( 2)
2 .5
9 7 .4
9 7 .4
1 ,622
100
.3
.1
9 9 .6
9 9 .6
1 ,6 0 0
100
.3
.3
9 9 .4
9 9 .4
13,762
100
.6
1.9
9 7 .4
9 7 .3
13,751
100
.5
2 .0
9 7 .4
9 7 .3
12,659
100
.6
2 .1
9 7 .3
9 7 .3
12,684
100
.6
2 .2
9 7 .2
9 7 .2
1,102
100
.7
.3
9 9 .0
9 7 .5
1,066
100
3 1 ,0 0 4
100
.1
.6
9 9 .3
9 9 .0
18,198
100
.2
.7
9 9 .1
9 9 .1
19,733
100
.2
.7
9 9 .1
9 9 .1
10,150
100
.2
.2
9 9 .6
9 8 .3
11,271
100
(2).4
9 9 .6
9 8 .2
2 8 ,3 4 8
100
.2
.5
9 9 .2
9 8 .8
12,967
100
.9
9 9 .1
9 8 .8
12,822
100
2 .1
9 7 .9
9 7 .7
11,876
100
.8
9 9 .2
9 9 .0
11,767
100
2 .2
9 7 .8
9 7 .8
1,091
100
2 .5
9 7 .5
9 6 .8
1,054
100
1 .3
9 8 .7
9 6 .8
16,414
100
.7
9 9 .3
9 9 .1
17,443
100
1 .7
9 8 .3
9 8 .0
9 ,6 3 6
100
.1
9 9 .9
9 9 .8
10,235
100
2 .2
9 7 .8
9 7 .8
6 ,7 7 8
100
1 .5
9 8 .5
9 8 .2
7 ,2 0 8
100
1 .0
9 9 .0
9 8 .2
13,337
100
.4
7 .7
9 1 .8
9 1 .6
12,920
100
1 .6
1 0 .0
8 8 .4
8 8 .2
12,256
100
.3
8 .0
9 1 .7
9 1 .5
11,877
100
1 .7
10 .4
87 .9
8 7 .7
1,082
100
2 .1
4 .7
9 3 .1
9 2 .4
1,043
100
.3
5 .3
9 4 .4
9 3 .8
4 8 ,1 9 4
100
.7
7 .4
9 1 .9
9 1 .5
4 9,491
100
.8
7 .4
9 1 .8
9 1 .4
2 6 ,7 5 5
100
( 2)
9 .9
9 0 .1
8 9 .6
2 7 ,4 0 8
100
1 .2
10.1
8 8 .7
8 8 .3
2 1 ,4 4 0
100
1 .7
4 .2
9 4 .1
9 4 .0
2 2 ,0 8 2
100
.4
4 .0
9 5 .6
9 5 .3
11,466
100
.5
1.9
9 7 .6
9 7 .6
10,965
100
1.5
3 .2
9 5 .3
9 5 .3
10,427
100
.3
1 .7
9 8 .0
9 8 .0
9 ,9 5 0
100
1 .6
3 .2
9 5 .2
9 5 .2
1,039
100
2 .2
3 .9
9 3 .9
9 3 .9
1 ,0 1 4
100
.4
3 .7
9 5 .9
9 5 .3
2 3 ,0 3 2
100
1.1
1 .3
9 7 .5
9 7 .5
2 2 ,7 9 3
100
.5
2 .4
9 7 .1
9 6 .9
9 ,9 1 9
100
( 2)
1 .0
9 9 .0
9 9 .0
10,140
100
.6
2 .0
9 7 .4
9 7 .4
13,113
100
2 .0
1 .6
9 6 .4
9 6 .4
12,652
100
.4
2 .8
9 6 .8
9 6 .5
7 ,9 0 9
100
1 .4
4 .9
9 3 .7
9 3 .2
7 ,7 9 0
100
1 .7
6 .3
9 2 .0
9 2 .0
6 ,995
100
.9
5 .0
9 4 .1
9 3 .6
6 ,9 5 5
100
1 .4
6 .0
9 2 .7
9 2 .7
914
100
5 .2
4 .7
9 0.1
9 0 .1
835
100
4 .1
9 .0
8 6 .9
8 6 .9
2 ,7 5 3
100
6 .0
12.1
8 1 .9
8 1 .5
2 ,3 0 6
100
5 .1
14.9
8 0 .0
8 0 .0
932
100
.3
1 .2
9 8 .5
9 7 .6
739
100
.2
3 .0
9 6 .8
9 6 .8
1,821
100
8 .9
17.7
7 3 .3
7 3 .3
1,5 6 6
100
7 .4
2 0 .5
7 2 .1
7 2 .1
10,013
100
4 .7
3 .7
3 3 .0
5 8 .6
4 4 .8
9 ,3 2 9
100
3 .4
7 .0
3 1 .3
5 8 .4
3 4 .1
8 ,986
100
5 .0
3 .7
3 4 .3
5 7 .0
4 3 .4
8 ,3 4 9
100
3 .5
7 .5
3 1 .9
57.1
3 3 .0
1,027
100
2 .3
3 .1
2 2 .0
7 2 .6
5 6 .9
980
100
1 .8
2 .8
2 6 .1
6 9 .3
4 3 .8
3 ,5 2 2
100
1 .6
1 .8
2 1 .4
7 5 .2
6 0 .5
3 ,005
100
1 .2
2 .6
2 4 .1
7 2 .1
4 6 .5
1,368
100
1.1
1 .3
3 1 .6
6 6 .0
5 0 .3
1,174
100
.9
3 .6
2 8 .6
6 6 .9
3 9 .1
2 ,1 5 5
100
1 .8
2 .1
14.9
81.1
6 7 .0
1,831
100
1 .3
1.9
2 1 .3
7 5 .5
5 1 .3
Distribution, to ta l.........
4 .5 1 -5 .0 0 .......................
P a y in g c e ilin g r a t e 1.. .
90 up to 180 days
D istribution, to ta l.........
4.50 or le s s ...................
4 .5 1 -5 .0 0 .......................
5 .0 1 -5 .5 0 .......................
P a y in g c e ilin g r a t e 1. . .
180 days up1to 1 year
Issuing b a n k s..................
D istribution, to ta l.........
4 .5 1 - 5 .0 0 ....................
5 .0 1 -5 .5 0 .......................
P a y in g c e ilin g r a t e 1.. .
1 up to 2 Vi years
Issuing b a n k s ..................
D istribution, to ta l.........
5.00 or le s s ...................
5 .0 1 -5 .5 0 .......................
5 .5 1 -6 .0 0 .......................
P a y in g ceilin g r a t e 1.. .
2x/ i up to 4 years
Issuing b a n k s..................
D istribution, to ta l.........
6.00 or le s s ...................
6 .0 1 -6 .5 0 .......................
P a y in g c e ilin g r a t e 1.. .
4 up to 6 years
Issuing b a n k s...................
D istribution, t o t a l.........
6.50 or le s s ...................
6 .4 1 -7 .0 0 .......................
7 .0 1 -7 .2 5 .......................
P a y in g ceilin g r a t e 1.. .
6 up to 8 years
Issuing b a n k s..................
D istribution, to ta l.........
7.00 or le s s ...................
7 .0 1 -7 .2 5 .......................
7 .2 6 -7 .5 0 .......................
P a y in g c e ilin g r a t e 1.. .
8 years and over
Issuing b a n k s..................
D istribution, to ta l.........
7.25 or le s s ...................
7 .2 6 -7 .5 0 .......................
7 .5 1 -7 .7 5 .......................
P a y in g c eilin g r a t e 1.. .
IR A and Keogh Plan time
deposits , 3 years or
more
Issuing b a n k s.......................
D istribution, to ta l. ............
6.00 or le s s . .....................
6 .0 1 -7 .0 0 ...........................
7 .0 1 -7 .5 0 ...........................
7 .5 1 -7 .7 5 ...........................
P a y in g c e ilin g r a t e 1.. .
For notes see end o f table.
(2). 4
9 9 .6
9 8 .8
Survey of Time and Savings Deposits
391
TABLE 2—Continued
Deposit group, original
maturity, and distribu
tion of deposits by
most common rate
All banks
Size of bank
(total deposits in millions of dollars)
All banks
100 and over
Less than 100
Size of bank
(total deposits in millions of dollars)
Less than 100
100 and over
Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25,
1979
1979
1979
1979
1978
1978
1978
1979
1978
1978
1979
1978
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Time deposits less than
$100,000 (cont.)
Money market certificates ,
$10,000 or more , 6
months
12,228
100
2.0
3.2
8.01-8.74......................
5.6
8.75-9.00.....................
89.2
9 .01 -9 .4 9.....................
P a y in g c e ilin g r a t e 1.. . 87.5
Issuing b a n k s.......................
D istribution, to ta l..............
8.00 or le ss.......................
Club accounts
Issuing b a n k s.......................
D istribution, to ta l ............
0.00................................
0.01-4.00.......................
4.01-4.50.......................
4.51-5.50.......................
9,193
100
40.4
18.2
7.6
33.8
10,183
100
13.9
86.1
( 2)
(2)
67.2
11,147
100
2.1
3.4
6.1
88.4
86.9
9,128
100
14.8
85.2
(2)
(2)
65.1
1,081
100
1.4
.8
1.1
96.8
93.7
1,055
100
5.9
94.1
(2)
(2)
85.3
31,949
100
.8
.3
2.5
96.4
95.2
13,844
100
5.2
94.8
(2)
(2)
85.0
13,480
100
1.1
.6
4.2
94.1
93.3
5,355
100
8.6
91.4
(2)
(2)
75.5
18,469
100
.5
.1
1.3
98.2
96.7
8,489
100
3.0
97.0
(2)
(2)
91.0
9,230
100
44.0
16.2
6.9
32.9
8,423
100
42.0
18.4
7.6
31.9
8,437
100
45.6
16.4
6.9
31.1
770
100
23.0
15.9
7.0
54.0
794
100
27.1
14.7
6.5
51.7
838
100
17.8
21.9
12.2
48.1
2,127
100
19.1
13.4
8.7
58.8
378
100
23.9
29.3
13.0
33.9
907
100
27.0
21.3
6.5
45.2
460
100
12.9
15.8
11.5
59.7
1,220
100
13.3
7.6
10.3
68.9
1. See table 1.16, page A 10, for the ceiling rates that existed at the
time of each survey.
2. Less than .05 per cent.
N o t e . All banks that either had discontinued offering or had
never offered particular types of deposits 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
steadily over the period; they increased more
than $500 million to a level of about $3^
billion.
Reflecting a diversion of deposits to MMCs,
as well as the further rise in interest rates on
alternative instruments above the fixed regula
tory ceiling rates, the outstanding level of
small-denomination time deposits subject to
fixed ceilings declined sharply. Net outflows
from such accounts totaled more than $8 billion,
almost twice as large as the drop during the
previous survey quarter. Issues to depositors
other than governmental units declined more
than $8 billion; net withdrawals were registered
in all but one of the maturity categories under
six years, and deposits with maturities of less
than 180 days dropped almost $4 billion. The
decreases suggest that a large portion of MMC
balances represents funds that were shifted from
accounts in these deposit categories.
The consistently popular deposits with origi
nal maturities of six years or more continued
to rise, although at a reduced pace. The net
inflow to these accounts of $650 million was
about $2 billion less than the increase in the
previous survey period and represented the
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.
Details may not add to totals because of rounding.
smallest percentage increase for any survey
quarter since introduction in 1974 of the six-year
certificate with a higher ceiling. With large
outflows from the lower-yielding, short-maturity
accounts and with a slightly higher percentage
of banks in January paying the ceiling rate on
longer-term, small-denomination time deposits
issued to nongovernmental units, the weightedaverage rate paid on all nongovernmental
small-denomination time deposits (excluding
MMCs, IRAs, and Keogh accounts) rose
slightly to 6.57 percent.
Outstanding levels of all maturities of smalldenomination time deposits issued to govern
mental units, except those maturing from 90 up
to 180 days, registered declines. Overall, such
deposits declined nearly $500 million compared
with a decrease of about $300 million during
the previous survey period. Although banks may
pay 8 percent on all time deposits issued to
governments without regard to maturity, their
offering rates are in general well below the
ceiling because of the frequent requirement to
pledge securities against such accounts. Never
theless, in response to rising market rates of
interest, a growing proportion of banks paid the
392
Federal Reserve Bulletin □ May 1979
3. Average of most common interest rates paid on various categories of time and savings deposits at insured
commercial banks, January 31, 1979
Bank size (total deposits in m illions o f dollars)
Type o f d eposit, holder, and
original maturity
A ll 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 sm all-denom ination tim e deposits.........................
5 .9 4
6.02
6.10
5 .9 9
5 .9 3
5.81
5 .8 2
Savings, to ta l........................................................................................
Individuals and nonprofit organizations.................................
Partnerships and corporations...................................................
D om estic governmental u nits.....................................................
A ll o th er............................................................................................
4 .9 4
4 .9 4
4 .9 8
4 .9 5
5 .0 0
4 .9 4
4 .9 4
5 .0 0
4 .9 3
5 .0 0
4 .8 9
4 .8 9
4 .9 6
4 .9 2
5 .0 0
4 .9 3
4 .9 3
4 .9 6
4 .9 1
5 .0 0
4 .9 5
4 .9 5
4 .9 9
4 .9 8
5 .0 0
4 .8 8
4 .8 8
4 .9 8
4 .9 9
5 .0 0
4 .9 7
4 .9 7
4 .9 7
4 .9 9
5 .0 0
Other tim e deposits in denom inations o f less than $100,000,
t o ta l............................................................................................
D om estic governmental units, to ta l.........................................
30 up to 90 days..........................................................................
90 up to 180 days.......................................................................
180 days up to 1 y ea r...............................................................
1 year and o v e r ...........................................................................
6 .5 7
6 .4 0
6 .6 3
6 .2 7
6 .1 4
6 .5 2
6 .4 8
6 .4 2
6 .9 8
6 .3 4
5 .7 2
6 .3 9
6 .6 5
6.5 1
6.41
6 .4 7
6 .0 6
6 .6 7
6 .6 3
6 .3 8
6 .4 7
5 .8 0
6 .9 6
6 .6 9
6 .5 8
5 .9 8
5 .9 8
5 .8 6
5 .8 9
6 .4 4
6 .5 0
6 .4 2
6 .2 6
6 .1 9
6 .6 2
6 .8 4
6 .5 2
6 .7 3
6 .8 9
6 .7 8
6 .9 9
6 .2 4
Other than dom estic governmental units, to ta l...................
30 up to 90 days..........................................................................
90 up to 180 d ays.......................................................................
180 days up to 1 y ea r...............................................................
1 up to l y i years........................................................................
2V£ up to 4 years........................................................................
4 up to 6 years.............................................................................
6 up to 8 years............................................................................
Over 8 years.................................................................................
6 .5 7
4 .9 7
5 .4 8
5 .4 8
5.9 9
6 .4 9
7 .2 2
7 .4 8
7 .6 6
6 .4 9
5 .0 0
5 .4 7
5.4 8
5.99
6 .4 9
7 .2 3
7 .5 0
7.73
6 .6 5
5 .0 0
5 .4 9
5 .4 9
6 .6 3
5 .0 0
5 .4 6
5 .4 0
6 .5 9
4 .8 6
5.4 8
5 .4 7
5.99
6 .4 9
7 .2 2
7 .4 3
7 .6 8
6 .5 0
4 .9 3
5 .5 0
5 .5 0
5.9 9
6 .4 9
7 .2 4
7 .5 0
7 .5 9
6 .5 2
5 .0 0
5 .4 7
5 .5 0
6.00
6.00
6 .5 0
7.2 1
7 .5 0
7 .7 5
6 .5 0
7 .2 4
7 .5 0
7 .7 3
6.00
6 .4 9
7 .2 2
7 .4 8
7 .6 0
IR A and K eogh Plan tim e deposits, 3 years or m o r e ............
7 .7 5
7 .6 8
7 .7 7
7 .6 9
7 .8 0
7 .7 0
7 .7 4
M oney market certificates, exactly 6 m onths............................
9 .4 4
9 .3 3
9 .4 5
9 .4 5
9 .4 3
9 .4 2
9 .4 7
Club accoun ts1.....................................................................................
3 .7 4
2 .2 4
3 .4 0
3 .7 8
4 .0 9
3 .7 8
4 .2 5
1. Club accounts are excluded from all o f the other categories.
N ote . The average rates were calculated by weighting the m ost
com m on rate reported on each type o f deposit at each bank by the
maximum allowable rate on all categories of
time deposits issued to governmental units. The
weighted-average rate paid on these accounts
jumped 26 basis points to 6.40 percent.
The large increase of 98 basis points in the
average rate paid on MMCs, the slight rise in
the average rate paid on small-denomination
issues to nongovernmental entities, and the
jump in the average rate paid to governmental
units combined to produce a rise of 37 basis
points to 7.07 percent on all small-denomination
time deposits. The weighted-average rate paid
by banks on all small-denomination time and
savings deposits was up 22 basis points to 5.94
percent.
O t h e r Tim e D e p o s it s
Continued growth of bank assets, coupled with
modest growth in deposits subject to interest rate
am ount o f that type o f deposit outstanding. A ll banks that had either
discontinued offering or never offered particular types o f d eposit as
o f the survey date were excluded from the calculations for th ose
specific types o f deposits.
ceilings, led to an increase of $ 16V2 billion— to
a level of more than $200 billion— in the out
standing volume of interest-bearing, large-de
nomination time deposits at banks; inflows of
large-denomination time deposits had averaged
$11 billion per quarter in the six preceding
survey periods. Large negotiable certificates of
deposits at weekly reporting banks (not shown
in the table) accounted for about 65 percent of
the total advance.
Non-interest-bearing time deposits, prin
cipally escrow accounts and compensating bal
ances held in conjunction with loans, increased
$150 million, following a decline of $50 million
in the preceding period. Reflecting the normal
seasonal pattern of deposit flows, the level of
club accounts dropped more than half, to less
than $1 billion. About 40 percent of the offering
banks, holding one-fifth of outstanding deposits,
paid no interest on club accounts.
□
393
Staff Studies
The staffs of the B oard of Governors of the
Federal R eserve System and of the Federal
R eserve Banks undertake studies that cover a
wide range of economic and financial subjects ,
and other staff members prepare papers related
to such subjects. In some instances the Federal
R eserve System finances sim ilar studies by
members of the academ ic profession.
From time to time the results of studies that
are of general interest to the professions and
to others are summarized— or they may be
printed in full— in this section of the F e d e r a l
R
eserve
B
u l l e t in
.
In all cases the analyses and conclusions set
forth are those of the authors and do not neces
sarily indicate concurrence by the B oard of
G overnors , by the Federal R eserve Banks , or
by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the B u l l e t i n
are available in mimeographed form. The list
of Federal R eserve B oard publications at the
back of each B u l l e t i n includes a separate
section entitled 6‘Staff Stu dies 99 that lists the
studies for which copies are currently available
in mimeographed form.
Study S um m ary
In n o v a t i o n s i n B a n k L o a n C o n t r a c t i n g : R e c e n t E v id e n c e
Paul W. Boltz — Staff, B o a rd of G overnors, and
Tim S. Cam pbell— A ssistant Professor of Finance, University of Utah
Prepared as a staff paper in late 1978
Business loans made by commercial banks have
many different characteristics. Until recently,
little evidence has been available on the various
terms of bank lending other than the nominal
interest rates charged at large banks. A new
survey— the Survey of Terms of Bank Lend
ing— first undertaken in 1977 by the Federal
Reserve and the Federal Deposit Insurance Cor
poration substantially closes the gap in infor
mation by collecting detailed data on individual
loans made at a stratified sample of about 340
banks from reports made during one week each
quarter. Many characteristics of business loans
can be distinguished by these data.
In this paper, reports in the quarterly surveys
in 1977 by major regional and money center
banks on short-term commercial and industrial
loans are analyzed to determine the pricing
characteristics of such loans. The major issue
examined is the relationship between the nomi
nal interest rate charged on loans and other
elements of the loan agreement, including such
features as fixed or floating interest rates, com
mitments and commitment fees, collateral, and
the maturity of the loan. The characteristics of
loans made at less-than-prime interest rates
at money center banks were of particular in
terest.
The authors find that commercial and indus
trial loans are not homogeneous products. Large
banks have developed complex packages of loan
terms that include specific pricing of various
kinds of risks. In addition, it is shown that
during 1977 a sizable volume of loans were
made at below-prime rates at a relatively small
number of money center banks. These loans
394
h ad, on a v era g e, d istin c tly differen t p a ck a g es
sid erab le sh iftin g b y large b anks to b orrow ers
o f nonrate term s than lo a n s at prim e len d in g
rates, particularly v is -a -v is the m aturity o f the
o f the risk s o f c h a n g e s in in terest rates w a s a lso
d em on strated b y the short m aturity o f th o se
loan s and w h eth er the in terest rates w ere fixed
or floatin g. S o m ew h a t m ore than h a lf the d ollar
lo a n s m a d e at fix ed rates, a lm o st all o f w h ic h
had m atu rities o f tw o m o n th s or le s s . In ad d i
v o lu m e o f sh ort-term b u sin e ss lo a n s m ad e at
m ajor region al b an k s as reported in the quarterly
tio n , the stu d y r e v ie w e d co m m itm e n ts u se and
co lla tera l req u irem en ts and com p ared the profile
o f lo a n s m ad e at m o n e y cen ter b an k s w ith lo a n s
at m ajor reg io n a l b an k s.
□
su rv ey s in 1977 and ab ou t tw o-th ird s at m o n e y
center banks w ere floatin g-rate con tracts. C o n
395
Industrial Production
April, after a rise of 0.9 percent in March.
Output of durable goods materials declined 1.4
percent as the trucking dispute and the strike
of the steel haulers disrupted the production of
consumer durable goods parts, equipment parts,
and basic metals, especially motor vehicle parts
and finished steel. Production of nondurable
goods materials continued to increase in April,
reflecting gains in the output of chemical mate
rials. Output of energy materials declined
slightly in April because of a cutback in extrac
tion of crude oil.
R eleased fo r publication M ay 16
Industrial production declined an estimated 1.0
percent in April, with the drop primarily the
result of the strike and lockout in the trucking
industry. Because of this labor dispute, produc
tion of consumer durable goods— particularly
autos— and of durable goods materials was cur
tailed sharply; but some declines in output oc
curred in most market groupings of the index.
At 150.5 percent of the 1967 average, the index
for April is 5.1 percent higher than that of a
year earlier.
Output of consumer durable goods fell 6.4
percent in April because of production curtail
ments in the auto and appliance industries,
largely due to the work stoppage in the trucking
industry. Auto assemblies, at an annual rate of
7.9 million units, declined about 16 percent
from the March rate; this drop was much sharper
than the cutback originally scheduled. Present
auto assembly schedules indicate a rate of about
9.4 million units in May and a rate of 9.6
million units in June, and would only partially
make up for output lost in April. Output of
consumer nondurable goods was about un
changed in April. Production of business equip
ment fell 0.7 percent as the output of transit
equipment, particularly business vehicles, was
also affected by the labor dispute in trucking.
Output of construction supplies declined for the
second consecutive month.
Production of materials fell 0.7 percent in
1969-70=100
Annual rate, millions of units
1973
1975
1977
1979
1973
1975
1977
1979
Federal Reserve indexes, seasonally adjusted. Latest figures:
April. Auto sales and stocks include im ports.
Percentage change from preceding month to—
1967 == 100
1979
1978
1979
Industrial production
Seasonally adjusted, ratio scale, 1967=100
Nov.
Dec.
Jan.
Feb.
Mar.
T o tal ....................................
152.0
150.5
.6
.9
.0
.1
.7
- 1 .0
5.1
Products, to t a l.........................
Final p ro d u cts.....................
Consum er g o o d s............
Durable .....................
N ondurable ................
Business e q u ip m e n t__
Interm ediate p ro d u c ts .......
Construction su pplies...
Materials ..................................
150.6
147.3
151.7
163.9
146.9
172.0
162.7
160.7
154.1
148.9
145.3
149.0
153.4
147.1
170.8
162.1
159.6
153.0
.5
.3
.3
.1
.3
.2
.8
1.3
.9
.9
.8
.6
.1
1.0
.9
1.6
1.1
.7
.2
.2
.0
- .6
.2
.6
.5
.2
- .5
.3
.3
.1
.2
.0
.5
.3
.1
- .3
.5
.7
.7
1.6
.3
.9
- .2
- .4
.9
-1 .1
- 1 .4
- 1 .8
- 6 .4
.1
- .7
- .4
- .7
- .7
4.1
3.4
1.0
- 5 .2
3.7
7.2
6.6
7.5
6.5
M a r.p
^Preliminary.
A p r.e
^Estimated.
N o te .
Indexes are seasonally adjusted.
Apr.
Percentage
change
4/78
to
4/79
396
Statements to Congress
Statement by Henry C. W allich, M em ber,
B oard of G overnors of the Federal R eserve
System , before the Subcomm ittee on Oversight
of the Committee on W ays and M eans, U.S.
House of R epresentatives, A p ril 25, 1979.
Mr. Chairman, as requested in your letter in
viting the Federal Reserve to participate in these
hearings, I shall discuss the role of U.S. banks
in offshore centers and will comment on the
types and adequacy of the information the Fed
eral Reserve obtains on bank activities in such
locations.
Offshore financial centers, some of which are
also tax havens, are nowadays a highly impor
tant part of the international financial system.
No picture of international financial develop
ments is complete without taking into account
the transactions that are made or booked in these
centers. It is for this reason that activities in
these centers are of interest to the Federal Re
serve as a central bank when monitoring inter
national flows of money and credit in relation
to domestic monetary conditions. Furthermore,
U.S. banks occupy a prominent place in these
offshore centers. The Federal Reserve as bank
supervisor must therefore be concerned with
monitoring the activities of U.S. banks in these
centers to assure itself that they are conducting
their affairs in a safe and sound manner.
While tax considerations are frequently an
important element in the operations of offshore
financial centers and the kinds of transactions
that take place or are booked in them, these
considerations are not prominent in the concerns
of the Federal Reserve about these centers.
Other authorities exercise oversight on tax
aspects of transactions in these centers and have
the specialized expertise to deal with such mat
ters. As I have just indicated, our interests run
to the broad economic implications of activities
in these centers and to the bank supervisory
aspects of these activities. Therefore, in my
statement I shall discuss first some general
characteristics of offshore financial centers and
of the operations of U.S. banks in them. I shall
then turn to the role of the Federal Reserve in
relation to these centers and I shall follow with
a description of the kinds of information ob
tained by the Federal Reserve in the furtherance
of its interests and responsibilities.
O ffsh o re Fin a n c ia l C e n t e r s
Offshore financial centers are easier to identify
than to characterize. Broadly speaking, how
ever, an offshore financial center is a location
where funds are borrowed from nonresidents
and lent to other nonresidents through the inter
mediation of banks and other financial institu
tions. These activities are recognized to have
little effect on the domestic economy of the
center or on domestic financial conditions. Some
of these centers are fully operational, in the
sense of actual dealings being conducted with
customers with regard to obtaining funds and
negotiating credits. Others are merely booking
centers where deposits and loans are legally
lodged, but where no transactions are physically
made. The City of London is the preeminent
example of an operational offshore financial
center. The Bahamas and the Cayman Islands,
on the other hand, are notable examples of
booking centers.
What are the essential elements of offshore
financial centers and what has spurred their
growth? As for the former, tax considerations
can of course have an important influence on
a country’s growth and appeal as an offshore
financial center. Likewise very important, how
ever, are factors such as exchange control laws,
local reserve requirements, communication fa
cilities, the country’s time zone, its commercial
laws, and its political and social stability. This
Statements to Congress
is illustrated by the fact that London, the largest
“ offshore center,” is located in one of the
world’s most heavily taxed countries. Secrecy
laws are frequently another important consid
eration, but, like liberal tax laws, they are
generally more important to the customers of
banks than to the banks themselves.
The growth of offshore financial centers has
been prompted mainly by the needs and de
mands of multinational business. As business
has become more and more internationalized,
needs for international financial services have
expanded and become more diverse. Companies
operating in a variety of countries have required
funding sources in different currencies, outlets
for temporarily idle funds, access to different
kinds of credit facilities, and the means for the
transfer of monies across international frontiers.
Tax laws and foreign exchange restrictions are,
of course, among the crucial factors influencing
the ways international business is transacted.
For multinational companies, therefore, loca
tions where international financial transactions
can be effected free of most tax consequences
and of foreign exchange controls have a great
attraction. Since bankers traditionally follow
their customers and adapt to their needs, banks
have been quick to locate in and promote such
offshore centers.
U .S . B a n k s i n O f f s h o r e C e n t e r s
U.S. banks have long been located in and played
a prominent role in the major financial centers
of the world, such as London, where “ offshore
banking” is an important part of their business.
U.S. banks have also played an important part
in the development and rapid growth of offshore
financial centers outside the major financial
markets that have occurred in recent years. As
recently as December 1972, for example, mem
ber bank branches in six major offshore centers
had total claims on third parties of only $14
billion, or 20 percent of third-party claims at
all their foreign branches. At the end of last
year, those claims totaled more than $95 billion
and represented 46 percent of third-party claims
at all foreign branches of member banks.
The Bahamas and the Cayman Islands are by
far the most important of these offshore centers
397
to U.S. banks. At the end of last year, U.S.
banks had 139 branches in these two locations,
with claims on third parties exceeding $70 bil
lion. Details of the distribution of business
among offshore centers and types of customers
are shown in the accompanying tables.1 As noted
earlier, the Bahamas and the Cayman Islands
are booking centers for financial transactions
that have been negotiated elsewhere. Virtually
all of the branches of U.S. banks in these centers
are consequently “ shell” branches— that is to
say, they are a set of ledgers managed and kept
by an agent rather than a physical location where
business is transacted.
The growth of international banking is the
underlying cause for the growth of these centers,
but U.S. regulations were the initial catalyst for
the establishment of branches of U.S. banks in
these centers. The voluntary foreign credit re
straint (VFCR) program and the interest equali
zation tax (IET), which were implemented in
the mid-1960s to restrict the outflow of capital
from the United States, limited the ability of
U.S. banks to meet their customers’ foreign
needs and to otherwise engage in international
banking. As a way of doing so, banks began
to establish low-cost “ shell” branches in these
countries to obtain access to the Eurocurrency
markets. Since foreign loans booked and funded
in these branches did not affect the U.S. balance
of payments, they were exempt from the re
strictions on foreign credits that applied to do
mestic banking offices.
Although U.S. government programs to re
strict capital outflows were ended in 1974, U.S.
bank activity in the Bahamas and the Cayman
Islands has continued to grow. For those banks
that do not have full-service foreign branches
in, say, London, these locations offer low-cost
access to the Eurocurrency markets and, nota
bly, the ability to raise funds for their interna
tional business free of domestic reserve require
ments. For many bank customers, these loca
tions provide advantages as tax havens, while
for others secrecy laws are important in their
decisions to place funds.
1. The attachments to this statement are available on
request from Publications Services, D ivision of Support
Services, Board of Governors of the Federal Reserve
System , W ashington, D .C . 20551.
398
Federal Reserve Bulletin □ May 1979
For the banks them selves, operations in the
Bahamas and the Cayman Islands also have
certain tax advantages. U .S . banks operate
abroad mainly through branches, and the earn
ings of branches are not deferrable but are
immediately subject to U .S . income taxes after
allowable credits for foreign income taxes paid.
Generally, therefore, when a foreign tax rate
is higher than the U .S . tax rate, there are ad
vantages to shifting the business from the
foreign country to tax-free countries. Another
reason for shifting business into a tax-haven
country is to enable banks to avoid double
taxation of foreign branch earnings, as can occur
when both foreign and U .S . tax authorities tax
the same income. It should be noted that in
neither of these cases is there an avoidance of
U .S . federal taxes; in fact, in some instances
the shifting of business to tax-haven countries
results in greater tax revenues accruing to the
U .S . government. Income earned in these loca
tions, as with other income earned abroad, is
not subject to U .S . state and local taxation.
The tables attached to this statement provide
a general indication of the types of business
booked at branches of U .S . banks in the Ba
hamas and the Cayman Islands. A large amount
of purely interbank activity is booked in these
branches, some of which involves the rechan
neling of funds within a bank’s organization and
some of which involves purely market transac
tions of buying funds from some banks and
selling them to others. Loans booked in these
branches are preponderantly to foreign compa
nies, including foreign subsidiaries of U .S.
companies, and totaled $36 billion at the end
of last year. Deposits from nonbank sources
totaled $25 billion, and were divided almost
equally between foreign customers and U .S.
addressees. The latter are primarily U .S . cor
porations.
Fe d e r a l R e se r v e R o l e
The Federal Reserve is interested in and moni
tors activities of foreign branches of member
banks both in its role as the nation’s central bank
and in its role as a bank supervisor. Our interests
differ somewhat according to these roles. In our
central banking role, we monitor activities of
foreign offices of U .S . banks in offshore centers
and elsewhere as part of our general surveillance
of international financial markets and interna
tional flows of funds. The growth of interna
tional lending through the Euromarkets and
other markets has had important repercussions
for capital flows throughout the world. Condi
tions and practices in those markets interact
closely with conditions and operations in our
domestic monetary and credit markets. In ana
lyzing the condition of the U .S. economy and
of its external position, as well as in assessing
the consequences of various policy alternatives,
much effort at the Federal Reserve is nowadays
invested in following developments in interna
tional banking and financial markets and activi
ties of U .S . banks in those markets.
As a bank supervisor, our interests are
directed to the soundness of operations in these
offices and to compliance with relevant banking
laws and regulations. Most of our detailed
knowledge of the operations of U .S . banks in
offshore centers arises from our role as a bank
supervisor. Since the branches in the Bahamas
and the Cayman Islands are “ shell” offices,
virtually all of their records are maintained at
the head office in the United States and thus
are available for inspection at the time the bank
is examined. Indeed, because of the special
characteristics of these branches, the Board,
when it authorized them, conditioned its ap
proval on full records being maintained at the
head office. Another condition attached to those
authorizations was that these offices not be used
to shift deposits and other business from the
United States.
The supervisory interest in these operations
runs, as I have already indicated, to their safety
and soundness and their possible effects on the
overall condition of the bank. They are scruti
nized by bank examiners in connection with the
overall examination of the bank and in the same
fashion as other parts of the bank. The emphasis
is accordingly on the quality of assets and the
ability of borrowers to repay, in accordance with
the terms and conditions of the credits. Virtually
no attention is paid to the identity of depositors
nor to depositor transactions. Thus, customer
compliance with the tax laws of their various
countries is not a consideration in the examina
Statements to Congress
tion process. That compliance is covered by
other authorities in this country and abroad. In
any event, bank examiners are basically credit
analysts and are not equipped to conduct tax
audits.
In f o r m a t io n o n O f f sh o r e C e n t e r
O p e r a t io n s
The Federal Reserve employs several sources
of information on the activities of offshore of
fices that enable it to monitor compliance with
sound banking practices and relevant U.S. reg
ulations and that help in evaluating the impact
of offshore offices on international financial
flows. The information from these sources has
been adapted to the Federal Reserve needs and
interests that I have just discussed and are gen
erally adequate for those purposes.
As I mentioned earlier, our most detailed
information about the activities of U.S. banks
in offshore centers is obtained from examination
reports. These reports are the primary supervi
sory document. In addition, statistical reports
are collected periodically on individual offices
and are used mainly in our overall evaluation
of banking activities in these centers. On a
monthly basis, banks file reports for their major
foreign branches showing their assets and lia
bilities by type of customer. Data compiled from
Statem ent by N ancy H. Teeters, M em ber,
B oard of Governors of the Federal R eserve
System , before the Subcommittee on Consumer
Affairs of the Committee on Banking, Finance
and Urban Affairs, U.S. House of R ep re
sentatives, M ay 1, 1979.
It is a pleasure for me to make my first appear
ance before this subcommittee. I have been
designated to chair the Board committee that
has responsibility for consumer affairs, and I
look forward to working with you on our com
mon problems and objectives.
The subject of today’s hearing is H.R. 3552,
a bill that would amend the Electronic Fund
Transfer (EFT) Act. Section 1 of H.R. 3552
399
this report are published regularly in the F e d
e r a l R e s e r v e B u l l e t i n , including a separate
section covering the Bahamas and the Cayman
Islands. A second report is collected quarterly
and shows foreign branch assets and liabilities
by country.
Besides these reports on foreign branches,
U.S. banking organizations also submit finan
cial statements on their foreign subsidiaries on
an annual basis. Subsidiaries of U.S. banks in
the Bahamas and the Cayman Islands are much
less important than their branch operations. At
year-end 1977, total assets of these subsidiaries
were only $3 billion, about one-third of which
represented intercorporate transactions. Some of
these subsidiaries conduct a wide range of ac
tivities similar to those of branches; others serve
mostly to channel funds among affiliated offices.
While some conduct trust activities, the volume
is relatively small and is directed to foreign
parties.
C o n c l u s io n
In this statement, I have tried to provide some
insight into the general workings of offshore
centers and into the nature of the Federal Re
serve’s interest and attention to developments
in these centers, both in general and in particular
relation to offices of U.S. banks.
□
would make a written notification of the loss
or theft of an EFT card effective when mailed
by the consumer. The Board’s Regulation E
currently takes a different position. The regula
tion provides that a written notification is effec
tive upon receipt by the financial institution or
at the expiration of the time it normally takes
for mail delivery, whichever is earlier. This
provision was modeled on an identical section
in the Truth in Lending Act and in Regulation
Z and was designed to encourage telephone
notification.
Given the vagaries of the U.S. mail, it is
likely that sending a written notice will create
a “ risk period” during which losses may con
tinue to occur. The approach taken by H.R.
400
Federal Reserve Bulletin □ May 1979
3552 would shift losses that occur during this
period from the consumer to the financial insti
tution. Neither the regulation nor the bill as
presently drafted would reduce the losses—
losses that ultimately will be passed on to con
sumers as higher costs. A better approach— one
that could effectively reduce potential losses to
everyone concerned— might be to allow finan
cial institutions to require oral notice and to
provide a 24-hour telephone line for this pur
pose. This could be followed by a written no
tice. This would coincide with the way con
sumers normally act. would speed up notifica
tion, and would reduce losses to everyone.
Section 2 of H.R. 3552 would change the
effective date of most of the remaining provi
sions of the EFT Act from May 10, 1980, to
September 10, 1979. The Board recommends
against adoption of this amendment. While we
recognize the need for prompt implementation
of the act on a priority basis, changing the
effective date to September 10 would not leave
sufficient time to accomplish this task effec
tively. It would require the Board to issue regu
lations without the degree of public participation
that is essential for orderly implementation of
this important new law.
The Board’s present schedule for implement
ing the remainder of the act is as follows: we
have published a proposed regulation this week,
with a 60-day comment period ending July 2
and public hearings on June 18 and 19; we are
allowing 60 days for analyzing any complexities
that may be uncovered by the comments and
for redrafting the regulation; we plan to publish
a revised regulation for a second 60-day period,
running from September 1 through October 31;
analysis of those comments and redrafting will
be completed in mid-December. The final regu
lation should be published by the end of De
cember, after which financial institutions will
have some four months under the current
schedule in which to gear up for its implemen
tation.
We believe this is a realistic schedule that
demonstrates the Board’s commitment to speedy
and responsible implementation of the act.
Meeting the schedule will require considerable
effort by the Board and its staff. Based on our
experience in implementing consumer protec
tion legislation, we believe that a shorter
rulewriting timetable would not be in the public
interest.
We could shorten the timetable by allowing
30 days instead of 60 days for public comment.
We are concerned, however, that a 30-day pe
riod would not allow all interested parties to
express their views adequately as has happened
in the past. The Board has adopted a policy,
in accordance with the spirit of Executive Order
12044, of allowing at least 60 days for public
comment on regulations that implement a new
law. We feel that adequate time for public
comment is especially important in the case of
a law, such as the EFT Act, that is highly
technical and that confers significant consumer
rights.
Our experience with implementation of other
legislation also indicates that 60 days is essential
for analysis of public comments, redrafting the
regulations, and bringing them back for the
Board’s consideration. In 1976 when the
amended Equal Credit Opportunity regulations
were issued, the Board received about 650
comments on the first proposal and 500 com
ments on the second. More recently, the Board
and the other financial supervisory agencies re
ceived almost 1,000 comments on the Commu
nity Reinvestment Act regulations. There is
great public interest in the EFT Act. I think we
can expect to receive at least several hundred
comments on our proposed Regulation E.
The Board’s timetable calls for two public
comment periods. I wish I could forecast that
one comment period will suffice, but, again, our
experience indicates otherwise. When new reg
ulations are drafted, the first proposal may
overlook important issues and some of the pro
visions may not be workable. Indeed, that is
the purpose of public comment— to expose reg
ulations to the critical gaze of the financial
institutions and consumers who must live with
them. Having two comment periods allows the
public to comment on significant changes before
regulations go into effect and thereby reduces
the possibility that the regulations will have to
be amended later. As a result of the comments
received, significant changes were made to the
regulation implementing sections 909 and 911
of the EFT Act earlier this year. One of those
Statements to Congress
changes, concerning disclosure of consumers’
liability for unauthorized transfers, was repub
lished for public comment.
If the effective date for the balance of the
act were now changed to September 1979, the
Board’s regular procedures could not be fol
lowed. Even if we were to have only one
comment period, there is a real risk that the
law would take effect before implementing reg
ulations could be issued in final form.
I would like to point out that the EFT Act
imposes major new responsibilities on financial
institutions. They will be required to prepare
and print new disclosures, establish new errorresolution and stop-payment procedures, pro
gram computers to generate periodic statements,
and, of course, train their personnel. Our expe
rience with other laws, including the Equal
Credit Opportunity Act, suggests that the quality
of compliance is enhanced and the cost of com
pliance reduced by providing a lead time of
several months between the issuance of regula
tions in final form and the effective date of a
statute.
I am also seriously concerned about making
regulations effective before financial institutions
have developed the procedures necessary to
implement them. There is a real risk that con
sumers will be misled into thinking they have
rights that, for all practical purposes, are not
yet available to them.
I also want to express the Board’s strong
concern about some of the substantive provi
sions contained in the current EFT Act. In the
course of drafting the regulations, it has become
clear to us that, unless there are substantive
changes, consumers and financial institutions
will face rules under the EFT Act different from
those under Truth in Lending. In the Board’s
view, these differences will create unnecessary
confusion.
As things now stand, for example, rules re
garding liability and dispute resolution proce
dures will differ depending on whether the plas
tic card issued to a consumer is a credit card
or a debit card. Different rules may even apply
to the same piece of plastic, in the case of a
combined credit-debit card. In some cases, the
rule will depend on whether a card is used to
obtain credit by electronic or nonelectronic
401
means. In other words, when something goes
wrong, both the consumer and the issuer of the
card will have to figure out what category the
transaction falls into, in order to know what
rules apply and what has to be done.
The Board believes that, to minimize confu
sion, the EFT and Truth in Lending Acts should
be amended to provide a single set of rules to
govern credit and electronic fund transfer trans
actions, except when compelling policy consid
erations may dictate different treatment. We
believe the rules should be simple and straight
forward, so that both the industry and the con
sumers that use these services can understand
them. The Board has a number of specific rec
ommendations:
1. The Truth in Lending Act imposes a flat
$50 limit on the liability of a credit-card holder
when a card is lost or stolen. The EFT Act has
a $50, $500, and unlimited liability structure.
A majority of the Board believes consumers’
potential exposure under the EFT Act is too
great, although there may be instances in which
the consumer should bear some liability for
carelessness. The structure of the liability pro
visions is unduly complicated, and the benefit
to the industry of the escalating liability limits
may ultimately be illusory rather than real. The
Board favors the Truth in Lending approach of
a single liability limit for unauthorized use. We
also believe it will make electronic payment
systems more acceptable to the public.
2. Under the Fair Credit Billing Act, a con
sumer must write to the creditor in order to take
advantage of the dispute resolution rules of the
act. The Electronic Fund Transfer Act permits
consumers to give oral notice, although an
institution can require written confirmation. It
is estimated that fewer than 1 percent of con
sumers with questions about their bills follow
the formal procedures of the Fair Credit Billing
Act. Consumers usually telephone, and the lack
of formality should not remove them from the
protections of the act. The Board therefore rec
ommends that the Fair Credit Billing Act be
amended to incorporate an oral notice provision.
3. When an error is alleged under the Elec
tronic Fund Transfer Act, the institution has 10
business days in which to complete its investi
gation. If it needs more time, it must provision
402
Federal Reserve Bulletin □ May 1979
ally re-credit the consumer’s account within 10
business days. When an error allegation is re
ceived under the Fair Credit Billing Act, the
creditor must either resolve the dispute or send
an acknowledgment within 30 days. The Board
recommends that the acts be amended to provide
parallel timing requirements.
The maximum time limits for resolving
disputes are 45 days under the Electronic Fund
Transfer Act and two billing cycles (but not
more than 90 days) under the Fair Credit Billing
Act. The Board recommends that the Electronic
Fund Transfer Act be amended to conform to
the Fair Credit Billing Act, to require resolution
within 90 calendar days. Lengthening the Elec
tronic Fund Transfer Act limit will not harm
consumers since an institution must have provi
sionally recredited within 10 business days in
order to take advantage of the longer time pe
riod.
4. The Board recommends the elimination of
the annual notice of rights under the Electronic
Fund Transfer Act and the seminannual notice
of rights under the Fair Credit Billing Act. Since
it is normally information on periodic statements
that triggers a dispute, we believe that con
sumers are better served by a summary notice
on periodic statements than they are by a lengthy
explanation once or twice a year.
5. Finally, the Board’s staff has received a
number of inquiries asking whether the Fair
Credit Billing Act permits creditors to impose
charges for providing documentation or for in
vestigating errors. In some cases, these charges
are quite substantial, and in others they are open
ended— for example, $5 per hour for an inves
tigation. We anticipate that the same questions
will arise regarding investigation of alleged
errors in EFT transactions. The Board recom
mends that both the Fair Credit Billing Act and
the Electronic Fund Transfer Act be amended
to prohibit such charges. While Regulation Z
already prohibits these charges when a cus
tomer’s allegation of error proves correct, we
believe that permitting these charges at all
serves to discourage customers from exercising
their right to assert errors.
It is essential that the legal relationship be
tween electronic funds transfers and credit
transactions be clarified. Both consumers and
the industry will benefit from a rational, common-sense framework. The Board and its staff
will be glad to work with you in developing
the statutory language to implement these rec
ommendations.
Finally, there are two other issues on which
we would like to consider legislative or other
remedies after we have had a little more time
to think them through. These issues arise be
cause the consumer account used for EFT
transactions will generally be the same account
used for paper-check transactions, and the ac
count statement will cover both. The act covers
only transactions that are initiated electroni
cally. But it is quite possible not only to have
transactions that are wholly paper and others
that are wholly carried out by means of EFT
in the same account, but also to have transac
tions that involve both paper and electronic
transfer elements, or that start as paper and
finish electronically.
One issue has to do with how the consumer
is to be given an adequate disclosure of account
terms and conditions when the account can be
accessed by both EFT and conventional paper
means. It is essential for consumers to know
the terms and conditions of the entire account.
Balance requirements, fees, usage limitations,
and availability of funds are important facts that
should be provided to consumers so that they
can make educated decisions on which type of
transfer most suits their needs. Under the
Board’s proposed regulations (and under most
current practices) electronic deposits are imme
diately available to the customer, while the
availability of funds from check deposits may
be delayed for several days or longer, awaiting
check clearance.
While the EFT Act requires disclosure of
essential terms and conditions of an electronic
fund transfer, it does not provide the Board with
specific authority to require disclosure of all
important terms of any account from which
electronic funds transfers as well as other
transfers may be made. Although we believe
the Board has the authority to require disclosure
of account terms generally, broadening the dis
closure authority under the EFT Act for ac
counts subject to electronic funds transfers may
be appropriate.
Statements to Congress
403
The second issue has to do with paper trun
cation and with how the consumer is to obtain
adequate proof of payment on a transaction that
begins with a paper check but is translated into
an electronic impulse. This is the case with
many credit union share drafts today— the cus
tomer gets back only a printout and not the
actual paper itself. The present EFT Act protects
the consumer only when the transaction is begun
electronically; by law, the statement finally re
ceived by the consumer is proof of payment.
If the transaction begins with a paper check and
the check is not returned to the consumer, there
is no such protection. Our reluctance to recom
mend action at this time is based, in part, on
the fact that check truncation is not yet widely
developed for consumer payments (except for
share drafts in which the institution stands be
tween the customer and the payee). Until we
know more about the direction in which con
sumer check truncation is developing, we want
to be cautious about suggesting consumer legis
lation.
In both of these situations, consumers may
need protection. We would like to give some
further study to the technical problems involved,
and will report to you when we have been able
to develop recommendations. For now, we
simply want to alert you that these problems
are on the horizon. W e will be pleased to work
with your staff in giving further consideration
to these issues.
□
Statem ent by J. Charles P artee, M em ber, B oard
of G overnors of the Federal R eserve System ,
before the Subcommittee on Financial Institu
tions Supervision, Regulation and Insurance of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives, M ay
objectives were mandated by the Congress when
it expanded the scope of deposit rate control
authority in 1966, and they have been reaf
firmed repeatedly in subsequent renewals of that
legislation. The objective of providing equitable
returns to small savers, while never specifically
incorporated into legislation, has nonetheless
emerged as an important factor. In view of the
sharp increases in market interest rates and in
the price level that have occurred over the past
year or two, it is no wonder that small savers
have become increasingly vocal about the
disparities between market yields and the maxi
mum rates available on deposits at thrift institu
tions and commercial banks.
Despite these developments, fundamental
conflicts among the three regulatory goals per
sist and must be reckoned with in any responsi
ble regulatory action. For exam ple, policies
designed to augment mortgage flows during
periods of high market interest rates necessarily
place pressure on the earnings of thrifts and may
cause severe problems for some of the weaker
institutions. Similarly, actions intended pri
marily to benefit small savers also squeeze the
profitability of thrifts and may not generate any
significant additional flow of funds for housing.
These conflicts and the agencies’ attempts to
resolve them are reflected in the three new
account categories proposed for public comment
7, 1979.
I am happy to appear today on behalf of the
Federal Reserve Board to discuss the new sav
ings instruments proposed last month by the
financial regulatory agencies. I have also at
tached a supplement commenting on the ques
tions contained in the chairman’s letter of May
1, but these questions are not covered directly
in my statement.1
At the outset let me emphasize that the agen
cies’ recent proposals were constrained by our
responsibilities to consider and balance three
conflicting needs: namely, to provide more eq
uitable rates of return to depositors, particularly
small savers; to ensure an adequate flow of
funds to the savings institutions and hence to
mortgage markets; and to protect the viability
of the thrift industry. The last two of these
1. The supplement to this statement is available on
request from Publications Services, D ivision of Support
Services, Board of Governors of the Federal Reserve
System , W ashington, D .C . 20551.
404
Federal Reserve Bulletin □ May 1979
last month. Consider, for example, the bonus
savings account plan, which would authorize the
payment of an extra 1/2 of a percentage point
in interest on the minimum balance held in a
savings account for one year or more. This plan
is designed to provide some additional income
to savers who prefer to keep their funds in very
liquid deposits but nevertheless end up holding
these deposits for a substantial period of time.
Though the proposed bonus increase in yield
is modest, it would raise costs significantly for
depositary institutions and, at present rates of
interest, produce little or no new funds for
investment in mortgages. It would be our hope,
however, that the minimum maturity restriction
wFould encourage depositors to maintain funds
in their savings accounts for longer periods of
time and, therefore, add stability to deposit
flows, particularly for thrift institutions.
Creating an incentive to maintain funds on
deposit was also an important consideration in
developing the rising-rate certificate proposal.
This plan would provide depositors with an
instrument whose yield increases gradually with
the passage of time. Specifically, commercial
banks could pay interest according to a schedule
that starts at 6 percent for the first year and rises
in increments of 1/2 percent, reaching 8 percent
for the sixth through the eighth year— the maxi
mum specified maturity. Thrift institutions could
pay 1/4 of a percentage point more throughout.
Three months’ forfeiture of interest would be
required for withdrawals during the first year,
after which no penalty would apply.
The main attraction of this instrument for
depositors would not be a higher return, since
the yield for most given holding periods is at
or somewhat below that available on fixed-term
certificates of the same maturity. But by elim i
nating the early withdrawal penalty after one
year, the rising-rate certificate offers passbooktype liquidity and the prospect of increasing
returns to those savers who believe that they
will keep their funds on deposit for at least one
year. Under the proposed rate schedule, this
instrument should not affect earnings of thrift
institutions materially, nor would we expect it
to augment mortgage flows significantly. In
stead, the proposed instrument would be in
tended to serve a particular need for those whose
plans are not sufficiently certain to warrant in
vestment in fixed-maturity deposit instruments.
Of the three new account categories, we think
that the five-year, floating-ceiling certificate
probably has the greatest cost potential in the
short run. It is certainly the most likely, in the
Board’s view , to augment deposit flows and
mortgage credit availability. Patterned after the
money market certificate, the instrument would
provide a market-oriented rate of return to
savers who are willing to commit as little as
$500 for five years; moreover, depositors who
withdraw funds prematurely after a year or so
would face a penalty less severe than the exist
ing requirement. Maximum rates of interest
would be changed once each month and would
be 1 percentage point below the yield on fiveyear U .S . Treasury securities for thrift institu
tions and 1% percentage points below that yield
for commercial banks.
In advancing this proposal, the agencies have
recognized the desirability of permitting a de
posit instrument offering a market-determined
yield to small savers. We believe that the pro
posed five-year certificate meets this need with
out endangering the short-run viability of the
thrift industry. The relatively large discount
from market yields serves to reduce the cost to
depositary institutions and is warranted by the
simplicity and convenience of dealing with local
institutions rather than going into the market for
the placement of small savings balances. During
the interagency deliberations leading to this
proposal, careful consideration was given to the
much simpler steps of either reducing the mini
mum denomination of the existing 6-month
m oney'market certificates or creating a new
short-term market certificate with a lower rate
ceiling and a lower minimum denomination.
However, these alternatives were rejected be
cause of their potential for inducing substantial
transfers of funds from low-cost passbook and
short-term time deposits and the resultant insti
tutional cost implications. The relatively long
maturity of the proposed instrument, coupled
with the still significant penalty for premature
withdrawals, should reduce these risks consid
erably.
Individually the proposed instruments strike
a balance among conflicting objectives in dif
Statements to Congress
ferent ways. Taken as a group, we hope that
they would provide for greater liquidity and
moderately higher returns to small savers and
lead to a somewhat larger flow of funds to
mortgage markets, all at a cost to the depositary
institutions that is manageable. Although the
considerations motivating each element of the
package seem diverse, at least two features are
common to all components. First, the differen
tial between the maximum rates payable by
thrift institutions and commercial banks that
characterizes each new instrument continues the
competitive advantage for thrift institutions that
has clearly been the intent of the Congress in
its legislative decisions on deposit rate ceilings.
Second, all of the proposals, including the sug
gested reduction of the existing $1,000 mini
mum denominations on fixed-rate certificates to
$500, enlarge the savings opportunities for de
positors with moderate sums to invest.
It is too early to provide this subcommittee
and the public with a detailed evaluation of the
comments that have been received on the pro
posals. The 30-day comment period ended just
last Friday, and we are still receiving letters that
were transmitted to our regional Reserve Banks.
405
I understand, however, that very few of the 250
or so letters reviewed to date are receptive to
the proposals. This is, of course, an inevitable
consequence of the need to compromise be
tween opposing interests. Depositors would be
offered better rates of return, but these rates are
still well below current market yields. The de
positary institutions would find their costs to be
appreciably higher, but their savings inflows
would likely be somewhat better than without
the new instrument alternatives. Mortgage credit
should be a little more plentiful as a result of
the larger deposit inflows, but those interested
in obtaining such credit would still be disap
pointed by the relatively small impact. And,
finally, the already complicated regulations on
deposit rate ceilings would become even more
complex, adding to public confusion. Such
complexity, I am afraid, is the heritage of con
gressional and regulatory efforts to compromise
among competing objectives. The Board urges
that this congressional mandate be given prompt
review and reconsideration with a view to facil
itating simplification and/or decontrol of the
ceiling rate structure before it collapses of its
own weight.
□
406
Announcements
R e g u l a t io n B : A m e n d m e n t
The Federal Reserve Board has amended its
Regulation B (Equal Credit Opportunity) to
clarify the definition of creditor.
The amendment, effective May 21, 1979,
makes it clear that the definition of creditor
includes not only those who grant credit but also
those who regularly refer customers to creditors.
Automobile dealers, home improvement con
tractors, and real estate brokers who regularly
direct customers to creditors are examples of
those the amendment to Regulation B places
under the definition of creditor. The Board’s
action bringing arrangers of credit within the
scope of Regulation B was substantially as pro
posed in October 1978. The Board did not take
action on other proposals made at that time
concerning certain business credit exemptions
in Regulation B.
P r o p o se d A c t io n s
The Federal Reserve Board on April 13, 1979,
invited public comment on a proposed restruc
turing of reserve requirements designed to es
tablish more effective control over growth of
bank credit. Comment was requested by May
18 on a proposal to apply a 3 percent reserve
requirement on certain types of borrowings
through repurchase agreements and federal
funds that banks have used increasingly to help
finance the expansion of their loans and invest
ments.
The Board of Governors on April 19, 1979,
asked for comment on how the antidiscrimina
tion rules of Regulation B (Equal Credit Oppor
tunity) should be applied to certain practices of
creditors that use credit-scoring systems. The
Board requested comment through June 20,
1979.
The Federal Reserve Board on April 23,
1979, requested public comment on possible
changes in Federal Reserve handling in its check
collection system of checklike payment instru
ments drawn on savings accounts at mutual
savings banks and savings and loan associa
tions, to be part of Regulation J (Collection of
Checks and Other Items and Transfers of Funds).
The Board requested comment by June 1, 1979.
The Federal Reserve Board on April 30,
1979, issued for public comment proposals for
completion of its rules necessary to carry out
provisions of the Electronic Fund Transfer Act,
which will be part of Regulation E (Electronic
Fund Transfers). The Board asked for comment
by July 2, 1979.
R e v is io n in
B a n k E x a m in a t io n Pr o c e d u r e s
A revised statement on classification of bank
assets and appraisal of securities in bank exam
inations, including amended rules for assessing
bank holdings of municipal general obligations,
was issued on May 7, 1979, by state and federal
bank supervisors.
The statement is a revision of the “ Uniform
Agreement on the Classification of Assets and
Appraisal of Securities Held by Banks” issued
in 1938 and revised in 1949. The statement was
issued jointly by the Comptroller of the Cur
rency, the Federal Deposit Insurance Corpora
tion, the Federal Reserve Board, and the Con
ference of State Bank Supervisors.
The revision clarifies definitions and elimi
nates practices duplicated elsewhere. It provides
expanded definitions of “ substandard,”
“ doubtful,” and “ loss” categories used for
criticizing bank assets.
The revised agreement sets forth guidelines
for examiners to follow in distinguishing investment-quality from subinvestment-quality
securities in bank portfolios and restates guide
407
lines for examiners to use in computing a bank’s
net sound capital.
The revised uniform agreement provides an
exception to the general rules for appraisal and
classification of municipal general obligation
securities in bank portfolios (obligations of
states, cities, counties, or other political divi
sions that have general taxing authority). The
revised agreement establishes these rules:
1. When municipal general obligations are
not in default but are regarded as being of
subinvestment quality, they are to be classified
as substandard assets of the bank.
2. In the event of a default of a municipal
general obligation, the book value of the se
curities in default are to be classified as doubtful
until the issuer has taken budgetary, tax, or other
actions to cure the default or until the market
for the defaulted securities has stabilized. The
regulators will review the market for the de
faulted securities periodically. Upon determi
nation that a functioning market has been rees
tablished, the book value of the securities in
excess of market value will be classified as a
loss to the holder.
Previously, any excess of book value above
market value of a defaulted municipal general
obligation was recognized as a loss at the time
of the default and was eliminated from the
bank’s reported assets. Experience has shown,
however, that general obligation municipal se
curities have generally not been disavowed and
principal amounts have ultimately been paid.
The revised uniform agreement is as follow s.
Uniform A greem en t on the
Classification of A sse ts and A ppraisal
of Securities H eld by B a n k s1
The Classification of A ssets in Bank Exami
nations. Classification units are designated as
“ substandard,” “ doubtful,” and “ lo s s .” A
substandard asset is inadequately protected by
the current sound worth and paying capacity of
the obligor or of the collateral pledged, if any.
Assets so classified must have a well-defined
weakness or weaknesses that jeopardize the liq
1.
R evises examination procedures established in
1938 and revised July 15, 1949.
uidation of the debt. They are characterized by
the distinct possibility that the bank will sustain
some loss if the deficiencies are not corrected.
An asset classified doubtful has all the weak
nesses inherent in one classified substandard
with the added characteristic that the weak
nesses make collection or liquidation in full, on
the basis of currently existing facts, conditions,
and values, highly questionable and improbable.
Assets classified loss are considered uncollecti
ble and of such little value that their continuance
as bankable assets is not warranted. This classi
fication does not mean that the asset has abso
lutely no recovery or salvage value, but rather
it is not practical or desirable to defer writing
off this basically worthless asset even though
partial recovery may be effected in the future.
Fifty percent of the total of “ doubtful” and
all of “ lo ss” will be deducted in computing the
net sound capital of the bank. Amounts classi
fied “ lo ss” should be promptly charged off.
The A ppraisal of Securities in Bank Exami
nations. Investment quality securities are mar
ketable obligations in which the investment
characteristics are not distinctly or predomi
nantly speculative. This group generally in
cludes investment securities in the four highest
rating grades and unrated securities of equiva
lent quality. Neither market appreciation nor
depreciation in these securities will be taken into
account in figuring net sound capital of the bank.
This policy is intended to apply to recognized
sound investment practices of banks and not to
those situations where the portfolio requires
special treatment by a supervisory agency.
Subinvestment quality securities are those in
which the investment characteristics are dis
tinctly or predominantly speculative. This group
generally includes securities in grades below the
four highest grades and unrated securities of
equivalent quality, defaulted securities, and sub
investment quality stocks.
Securities in grades below the four highest
rating grades and unrated securities of equiva
lent value will be valued at market price and
the depreciation will be classified doubtful; re
maining book value will be classified substand
ard. Depreciation in defaulted securities and
subinvestment quality stocks will generally be
408
Federal Reserve Bulletin □ May 1979
classified loss; remaining book value will be
classified substandard.
An exception to the above will be made in
the case of municipal general obligations that
are backed by the credit and taxing power of
the issuer. The entire book value of subinvest
ment quality municipal general obligations,
which are not in default, will be classified sub
standard.2 In the event of a default of a munici
pal general obligation, a period of time is usu
ally necessary to permit the market for these
defaulted securities to stabilize or for the issuer
to put in place budgetary, tax, or other actions
that may eliminate the default, or otherwise
improve the postdefault value of the securities.
The market for the defaulted securities will be
periodically reviewed by the regulatory authori
ties. Upon a determination that a functioning
market has been reestablished, depreciation on
defaulted municipal general obligations will be
classified loss. During such interim, the book
value of all defaulted municipal general obliga
tion securities will be classified doubtful.2
Division of Research and Statistics, for all items
currently published that have comparable defi
nitions before and after January 3, 1979.
Data on assets and liabilities of all commer
cial banks (table 1.24) have been revised to
reflect adjustment to preliminary condition re
ports for December 31, 1978, and procedural
changes in estimating data for domestic char
tered banks and for U.S. branches of foreign
banks.
Data on loans and investments at all com
mercial banks (table 1.23) for the period since
June 1978 have also been revised. The revisions
reflect adjustment to preliminary condition re
ports for December 31, 1978, and procedural
changes in estimating data for domestic char
tered banks and for U.S. branches of foreign
banks. A new statistical release G.7 (407),
which will make the loans and investments data
available each month prior to publication of the
B u l l e t i n , is now available on request from
Publications Services, Division of Support
Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
A v a il a b il it y o f
R e v is e d B a n k in g D a t a
C h a n g e in B o a r d S taff
Estimated data for January 1972 through De
cember 1978 are now available for the large
weekly reporting bank series (tables 1.27, 1.28,
and 1.29 of the F e d e r a l R e s e r v e B u l l e t i n ) .
Data published since January 1979 have not
been comparable with previously published data
because of substantial changes in the reporting
panel. The currently published and estimated
back data represent assets and liabilities of about
170 large commercial banks that had total assets
in domestic offices exceeding $750 million as
of December 31, 1977. Estimated back data are
available from the Board’s Banking Section,
The Board of Governors has announced a
change in the Division of Banking Supervision
and Regulation, effective April 23, 1979.
William Taylor, Assistant Director, has been
promoted to Associate Director.
2.
T h e a b o v e e x c e p tio n s w ill n o t a p p ly in th o se
in sta n c e s w h e n th e su p e rv is o ry a u th o ritie s d e te rm in e
th a t th e re is n o lik e lih o o d th a t th e m u n ic ip a lity w ill b e
ab le u ltim a te ly to re p a y o r s a tis fa c to rily to re s tru c tu re
its o b lig a tio n s.
S y s t e m M e m b e r s h ip :
A d m is s io n o f S t a t e B a n k s
The following banks were admitted to member
ship in the Federal Reserve System during the
period April 16 through May 10, 1979:
Colorado
Black Hawk ................. Gilpin County Bank
W est Virginia
Green Valley .......... Valley Bank and Trust
Company
409
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON MARCH 20, 1979
1. Domestic Policy Directive
The information reviewed at this meeting suggested that growth in
real output of goods and services had moderated in the current quarter
after having accelerated to an annual rate of 6.9 percent in the fourth
quarter of 1978. The rise in average prices, as measured by the
fixed-weight price index for gross domestic business product, appeared
to have been faster than the annual rate of 8.0 percent recorded in
the third and fourth quarters of 1978.
Staff projections of growth in output over the four quarters of 1979
had been reduced somewhat from those prepared for the February
meeting, in large part because of a reduction in the expected rate
of expansion in the current quarter. The projections continued to
suggest sluggish growth during the second half of the year. The rise
in average prices was projected to remain rapid, and the rate of
unemployment was expected to increase somewhat from its current
level.
The dollar value of total retail sales rose slightly further in January
and February, following several months of sizable gains, but sales
in real terms apparently declined. Unit sales of new automobiles for
the two months were just above the pace in the second half of 1978.
The index of industrial production was unchanged in January and
increased 0.3 percent in February, following advances in the preceding
three months that averaged about 0.7 percent. The slowdown appeared
to be caused in part by adverse weather. Total nonfarm payroll
employment, and also its manufacturing component, expanded appre
ciably further in the two months, although the increases were somewhat
below the average monthly gains during the fourth quarter. The rate
of unemployment was 5.7 percent in February, little changed from
other recent months.
Total private housing starts fell sharply in January and declined
further in February to an annual rate of 1.4 million units. In January
total sales of new and existing single-family houses declined substan
tially.
410
Federal Reserve Bulletin □ May 1979
The latest survey by the Department of Commerce of business plans,
taken in late January and February, suggested that spending for plant
and equipment would expand 11.3 percent in 1979, virtually the same
as the gain that had been indicated by the December survey. The
increase in 1978 was estimated to have been 13.3 percent. Manufac
turers’ new orders for nondefense capital goods advanced sharply in
January after having risen considerably on balance during the fourth
quarter.
The index of average hourly earnings of private nonfarm production
workers rose at an annual rate of 4.3 percent in February, following
increases averaging about 8.5 percent in the preceding four months.
In some industries with relatively low wage rates, hourly earnings
had increased sharply in January, when increased minimum wages
became effective, and then changed little in February.
The trade-weighted value of the dollar against major foreign curren
cies had not changed on balance since the February 6 meeting of
the Committee. The U.S. merchandise trade deficit rose sharply in
January, but revised data suggested a smaller deficit for the fourth
quarter of 1978 than had been published earlier. Imports, especially
of oil, increased sharply in January, while exports declined slightly.
In January and February growth of total credit at U.S. commercial
banks accelerated considerably from its reduced pace during late 1978.
Expansion in business loans was unusually strong, and banks also
added substantially to their holdings of securities.
M -l declined in both January and February, M-2 changed little,
and M-3 grew at a relatively slow rate. With interest rates remaining
high, the behavior of all three monetary aggregates was affected by
unusually large shifts of funds from deposits to money market mutual
funds and other liquid assets. The weakness in M -l also reflected
the effects of continuing movements of funds from demand deposits
to savings deposits associated with the recently authorized automatic
transfer service (ATS) and negotiable orders of withdrawal (NOW)
accounts in New York State.
Banks and thrift institutions financed credit expansion mainly
through net additions to outstanding six-month money market certifi
cates and large-denomination certificates of deposit, which are not
subject to fixed ceilings on interest rates. Inflows of time and savings
deposits subject to fixed rate ceilings continued to be inhibited by
the availability of higher-yielding investment alternatives. Overall,
R ecord of Policy A ctions of FO M C
inflows of interest-bearing deposits included in M-2 and M-3 remained
at reduced levels. During the two-month period, banks obtained a
sizable volume of funds from nondeposit sources and from repayments
by foreign branches of advances from domestic head offices.
At its February meeting, the Commitee had decided that open market
operations should be directed at maintaining the weekly average federal
funds rate at its current level of about 10 percent or slightly higher,
provided that over the February-March period the annual rates of
growth of M-1 and M-2, given approximately equal weight, appeared
to be within ranges of 3 to 7 percent and 5 to 9 percent, respectively.
If the two-month growth rates appeared to be outside the indicated
limits, the Manager of the System Open Market Account was to notify
the Chairman promptly, who would then consult with the Committee
to determine whether the situation called for supplementary instruc
tions.
At the beginning of March, projections suggested that over the
February-March period M-1 would grow at a rate moderately below
the lower limit of the range established by the Committee and M-2
would grow at a rate just below the lower limit of its range. In a
special telephone meeting on March 2, the Committee instructed the
Manager to continue aiming for a weekly average federal funds rate
of 10 percent or slightly higher.
Most market interest rates rose moderately on balance during the
intermeeting period, after having declined in January. Yields on
corporate bonds and on three-month Treasury bills moved up to their
highest levels of the current economic expansion. Yields on most
short-term instruments remained below levels reached around the turn
of the year, however, and primary market rates on home mortgage
loans were little changed from their year-end levels.
Effective March 15, 1979, regulations governing ceiling rates on
six-month money market certificates issued by financial institutions
were changed. The new rules prohibit the use of compounding in
calculating allowable returns and eliminate the V* point interest dif
ferential between commercial banks and thrift' institutions when the
ceiling rate is 9 percent or higher. The full differential will be in
effect when the ceiling rate is 8% percent or less. When the six-month
bill rate is between 8 3A and 9 percent, thrift institutions may pay a
maximum 9 percent while commercial banks may pay up to the actual
discount rate for six-month bills. These changes were designed to
411
412
Federal Reserve Bulletin □ May 1979
reduce somewhat the cost of money market certificates and to moderate
the flow of funds into thrift institutions while permitting them to remain
competitive over the longer run in attracting funds for housing.
In the Committee’s discussion of the current economic situation,
attention was drawn to the more rapid expansion in output of goods
and services in the fourth quarter of 1978 than had been anticipated.
The Commerce Department had just released a second upward revision
in its estimate of growth in real gross national product in that quarter,
and it wras observed that the rate of resource utilization therefore was
higher than had been thought earlier, accounting in part for the recent
intensification of upward pressures on prices.
At the same time, it was noted, developments since the turn of
the year were apparently mixed, contributing to increased uncertainty.
Specifically, such indicators of business expenditures as new orders
for capital goods, inventory investment, and short-term borrowing had
been strong, and the demand for labor had remained bouyant. On
the other hand, growth in personal income had weakened, retail sales
had declined in real terms despite renewed strength in unit sales of
new automobiles, and both the drop in housing starts and the sluggish
performance of industrial output seemed to be attributable only in part
to adverse weather.
Many members of the Committee thought that the staff was overly
optimistic in projecting continued, if sluggish, growth in real GNP
throughout the second half of 1979; they believed that the chances
of a recession beginning before the end of the year or in early 1980
were fairly high. The recent increase in the price of oil, the acceleration
of the overall rise in prices, and the sluggish growth of the monetary
aggregates over the latest five months were cited among the factors
that increased the probability of recession. The observation also was
made that if a recession developed, it was likely to be moderate and
short-lived.
Some concern was expressed that, in part because of the uncertain
outlook for supplies and prices of some commodities, businesses might
now be trying to raise their investment in both inventories and plant
and equipment, thereby intensifying inflationary pressures currently
and increasing both the chances and the probable severity of recession
later. It was observed, however, that the current accumulation of
inventories, to the extent that it reflected rebuilding of stocks drawn
down in the fourth quarter and hedging against possible strikes,
Record of Policy Actions of FOMC
represented prudent business behavior and not a major shift away from
the cautious attitudes that had prevailed for some time. With respect
to plant and equipment, expenditures would be spread over a period
when overall activity was not expected to be expanding rapidly, and
subsequently the expenditures would yield additions to capacity and
gains in productivity.
The members expressed some differences of opinion concerning
prospects for prices. A significant easing from the rapid rise of recent
months was suggested, to the extent that recent increases in prices
represented temporary factors or were made in anticipation of possible
price and wage controls. Moreover, slackening of economic activity
later in the year could be expected to slow the rise in prices generally.
The view was also expressed, however, that inflation would remain
rapid even during a recession. In any case, it was observed, a long
lag could be expected in the response of prices to the additional
measures of restraint imposed toward the end of 1978.
At its meeting on February 6, 1979, the Committee had agreed
that from the fourth quarter of 1978 to the fourth quarter of 1979
average rates of growth in the monetary aggregates within the follow
ing ranges appeared to be consistent with broad economic aims: M -l,
IV2 to AVi percent; M-2, 5 to 8 percent; and M-3, 6 to 9 percent.
The associated range for the rate of growth in commercial bank credit
was IV2 to IOV2 percent. It had also been agreed that the longer-run
ranges, as well as the particular aggregates for which such ranges
were specified, would be reconsidered in July or at any time that
conditions might warrant.
In contemplating policy for the period immediately ahead, the
Committee continued to face unusual uncertainties concerning the
forces affecting monetary growth. A staff analysis had suggested that
M -l was likely to expand in March, contributing to a pickup in growth
of M-2. Nevertheless, M -l was expected to register a decline in the
first quarter, on a quarterly average basis. It was estimated that shifts
of funds from demand deposits to savings accounts with automatic
transfer services and to the NOW accounts in New York had depressed
growth of M -l by about 3 percentage points in the quarter. Moreover,
it appeared that growth of both M -l and M-2 had been affected by
a downward shift in the public’s demand for money in relation to
income, although the magnitude of that effect was uncertain.
In the Committee’s discussion, several members stressed their
413
414
Federal Reserve Bulletin □ May 1979
concern about the shortfall in monetary growth relative to the longerrun ranges that the Committee had adopted at its meeting on February
6, 1979, especially in view of the risks that a recession might develop
in the period ahead. Supporting the goal of bringing growth of the
monetary aggregates up into those ranges over a number of months,
particularly because of the uncertainty about the outlook for economic
activity, they favored directing operations in the period just after the
meeting toward maintaining the money market conditions currently
prevailing— as indicated by a federal funds rate of 10 percent or slightly
higher— or toward a little less firmness in those conditions. The
objective of operations later in the period before the next regular
meeting of the Committee would be determined on the basis of the
incoming evidence on the behavior of the monetary aggregates, al
though it was suggested that the Committee consult again before any
change was made in the operational objective for the funds rate.
Other members of the Commitee emphasized the recent acceleration
of the rise in prices, and they believed that action should be taken
to demonstrate that inflation represented the greatest risk to economic
stability over a period of time. Accordingly, they advocated directing
initial operations in the period ahead toward a slight firming in money
market conditions, represented by an increase in the objective for the
federal funds rate to about 10% percent. Their prescription for opera
tions later in the period called for holding the objective for the funds
rate within a relatively narrow range.
At the conclusion of the discussion the Committee decided that
ranges of tolerance for the annual rates of growth in M-1 and M-2
over the March-April period should be 4 to 8 percent and 3V2 to IVi
percent, respectively. The Manager was instructed to direct open
market operations initially toward maintaining the federal funds rate
at about the current level, represented by a rate of about 10 percent
or slightly higher. Subsequently, if the two-month growth rates of
M-1 and M-2 appeared to be significantly above or below the midpoints
of the indicated ranges, the objective for the funds rate was to be
raised or lowered in an orderly fashion within a range of 9% to IOV2
percent. It was also agreed that in assessing the behavior of the
aggregates, the Manager should give approximately equal weight to
the behavior of M-1 and M-2.
As is customary, it was understood that the Chairman might call
upon the Committee to consider the need for supplementary instruc
Record of Policy Actions of FOMC
tions before the next scheduled meeting if significant inconsistencies
appeared to be developing among the Committee’s various objectives.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
T he inform ation review ed at this m eeting su ggests that in the current
quarter grow th in real output o f good s and services has m oderated from
the rapid rate in the last quarter o f 1978, w h ile the rise in prices has
accelerated. In January and February the dollar value o f total retail sales
rose sligh tly further. N onfarm payroll em p loym en t continued to expand
over the tw o-m onth period, but in part because o f severe w eather,
industrial production increased little. The unem ploym ent rate in February,
at 5 .7 percent, w as virtually unchanged from its lev el in January and
in late 1978. O ver recent m onths, on balance, the index of average hourly
earnings has continued to rise rapidly.
The trade-w eighted value o f the dollar against major foreign currencies
has show n no net change sin ce early February. The U .S . trade deficit
in January w as larger than the m onthly average in the fourth quarter of
1978, to som e extent because o f a bulge in im ports o f oil.
M -l d eclined in both January and February, in part because o f the
continuing effects o f the grow th o f the autom atic transfer service. W ith
market interest rates continuing h igh , inflow s o f the interest-bearing
deposits included in M -2 and M -3 rem ained at reduced le v e ls, despite
substantial flow s into m on ey market certificates at both com m ercial banks
and nonbank thrift institutions. O ver the tw o m onths, con seq u en tly, M -2
changed little and M -3 grew at a relatively slow rate. The behavior o f
all three m onetary aggregates w as affected by shifts o f funds from deposits
to m on ey market mutual funds and other liquid assets. M ost market
interest rates have risen in recent w eek s, after having d eclin ed in January.
T aking account o f past and prospective d evelopm ents in em p loym en t,
unem p loym en t, production, in vestm ent, real in co m e, productivity, inter
national trade and paym ents, and p rices, it is the p o licy o f the Federal
O pen Market C om m ittee to foster m onetary and financial conditions that
w ill resist inflationary pressures w h ile encouraging m oderate eco n o m ic
expansion and contributing to a sustainable pattern o f international trans
actions. The C om m ittee agreed that these objectives w ou ld be furthered
by grow th o f M - l , M -2 , and M -3 from the fourth quarter o f 1978 to
the fourth quarter o f 1979 w ithin ranges o f IV2 to AVi percent, 5 to 8
percent, and 6 to 9 percent, resp ectively. The associated range for bank
credit is IV2 to 10 V2 percent. T hese ranges w ill be reconsidered in July
or at any tim e as conditions warrant.
In the short run, the C om m ittee seeks to ach ieve bank reserve and
m on ey market conditions that are broadly consistent w ith the longer-run
ranges for m onetary aggregates cited ab ove, w h ile g iv in g due regard to
the program for supporting the foreign exch an ge value o f the dollar and
to d ev elo p in g conditions in dom estic financial markets. Early in the period
415
416
Federal Reserve Bulletin □ May 1979
before the next regular meeting, System open market operations are to
be directed at maintaining the weekly average federal funds rate at about
the current level. Subsequently, operations shall be directed at maintaining
the weekly average federal funds rate within the range of 9 3A to IOV2
percent. In deciding on the specific objective for the federal funds rate
the Manager shall be guided mainly by the relationship between the latest
estimates of annual rates of growth in the March-April period of M-l
and M-2 and the following ranges of tolerance: 4 to 8 percent for M-l
and 3Vz to IV2 percent for M-2. If, with approximately equal weight
given to M-l and M-2, their rates of growth appear to be significantly
above or below the midpoints of the indicated ranges, the objective for
the funds rate is to be raised or lowered in an orderly fashion within
its range.
If the rates of growth in the aggregates appear to be above the upper
limit or below the lower limit of the indicated ranges at a time when
the objective for the funds rate has already been moved to the corre
sponding limit of its range, the Manager will promptly notify the Chair
man, who will then decide whether the situation calls for supplementary
instructions from the Committee.
Votes for this action: Messrs. Miller, Balles, Black, Mayo,
Partee, and Mrs. Teeters. Votes against this action: Messrs.
Volcker, Coldwell, Kimbrel, and Wallich.
M essrs. Volcker, Coldwell, Kimbrel, and Wallich dissented from
this action because they favored a somewhat more restrictive policy
posture, in view of strong inflationary forces reinforced by pressure
on capacity in some industries and in view of the near-term potential
for excessive inventory demands. They believed that, despite uncer
tainty about prospects for economic activity later this year, some
additional firming in money market conditions at this time was appro
priate to help in containing inflationary pressures and maintaining
renewed confidence in the dollar in foreign exchange markets.
2. R e v ie w o f C ontinuing A uthorizations
This being the first regular meeting of the Federal Open Market
Committee follow ing the election of new members from the Federal
Reserve Banks to serve for the year beginning March 1, 1979, the
Committee followed its customary practice of reviewing all of its
continuing authorizations and directives. The Committee reaffirmed
the authorization for domestic open market operations, the authori
zation for foreign currency operations, and the special authorization
Record of Policy Actions of FOMC
relating to System obligations in Swiss francs in the forms in which
they were then outstanding.
V otes for these actions: M essrs. M iller, V olck er, B a lles, B lack ,
C o ld w ell, K im brel, M ayo, Partee, M rs. T eeters, and Mr. W allich .
V otes against these actions: N o n e.
In reviewing the authorization for domestic open market operations,
the Committee took special note of paragraph 3, which authorizes
the Reserve Banks to engage in the lending of U.S. government
securities held in the System Open Market Account under such
instructions as the Committee might specify from time to time. That
paragraph had been added to the authorization on October 7, 1969,
on the basis of a judgment by the Committee that in the existing
circumstances such lending of securities was reasonably necessary to
the effective conduct of open market operations and to the implemen
tation of open market policies, and on the understanding that the
authorization would be reviewed periodically. At this meeting the
Committee concurred in the judgment of the Manager that the lending
activity in question remained reasonably necessary and that, accord
ingly, the authorization should remain in effect subject to review in
six months.
3. Foreign Currency Directive
The Committee reaffirmed the foreign currency directive, with a
technical modification. In paragraphs 1 and 4(c), the word “ proposed”
was deleted preceding the references to International Monetary Fund
(IMF) Article IV in recognition that Article IV had been put in place
since the Committee had last conducted its annual review of all its
continuing authorizations and directives. As amended paragraphs 1
and 4(c) read as follows:
1.
System operations in foreign currencies shall generally be directed
at countering disorderly market co n d ition s, provided that market exch an ge
rates for the U .S . dollar reflect actions and behavior con sisten t w ith the
IM F A rticle IV , Section 1.
4 . S ystem foreign currency operations shall be conducted:
*
*
*
*
*
C.
In a manner consistent w ith the obligations o f the U nited States
in the International M onetary Fund regarding exch an ge arrangements
under the IM F A rticle IV .
417
418
Federal Reserve Bulletin □ May 1979
Votes for this action: Messrs. Miller, Volcker, Balles, Black,
Coldwell, Kimbrel, Mayo, Partee, Mrs. Teeters, and Mr. Wallich.
Votes against this action: None.
4. Procedural Instructions with Respect to Foreign Currency
Operations
In December 1976 the Committee agreed upon procedural instructions
intended to clarify the respective roles of the Committee, the Foreign
Currency Subcommittee, and the Chairman in providing guidance to
the Manager of the System Open Market Account with respect to
proposed or ongoing foreign currency operations under the authori
zation for foreign1currency operations and the foreign currency direc
tive. Under paragraphs IA and IB of the procedural instructions, the
Manager is required to obtain clearance from the Foreign Currency
Subcommittee (or from the Chairman, if consultation with the Sub
committee is not feasible in the time available) for operations in excess
of specified daily and intermeeting limits. Under paragraph 2A, the
Manager is required to obtain clearance from the Committee (or from
the Foreign Currency Subcommittee or from the Chairman, if consul
tation with the Committee is not feasible in the time available) for
operations in excess of a specified intermeeting limit. In order to
facilitate implementation of the broad Government program to
strengthen the dollar in foreign markets announced on November 1,
1978, the daily and intermeeting limits were suspended.
At this meeting, in light of experience gained in conducting opera
tions under procedural instructions, the Committee decided to reinstate
limits under the procedural instructions and at the same time to modify
them in order to provide more leeway for operations without formal
consultations with the Foreign Currency Subcommittee or the Com
mittee. In practice, the management of the System Open Market
Account consults with members of the Subcommittee on a continuing
basis.
The limit on daily changes in the System’s overall open position
in foreign currencies specified in paragraph IA was raised from $100
million to $300 million, and the intermeeting limit was raised from
$300 million to $600 million; the limit on daily changes in the System’s
net position in a single foreign currency specified in paragraph IB
was raised from $100 million to $150 million, or to $300 million
Record of Policy Actions of FOMC
when the operation is associated with repayment of swap drawings,
and the intermeeting limit was eliminated. The Committee also raised
from $500 million to $1.5 billion the intermeeting limit on changes
in the System’s overall open position in foreign currencies specified
in paragraph 2A. The procedural instructions as amended read as
follows:
In conducting operations pursuant to the authorization and direction
o f the Federal Open M arket C om m ittee as set forth in the A uthorization
for Foreign Currency O perations and the Foreign Currency D irectiv e, the
Federal R eserve Bank of N ew Y ork, through the M anager o f the System
O pen M arket A ccou n t, shall be guided by the fo llo w in g procedural
understandings w ith respect to consultations and clearance w ith the C o m
m ittee, the Foreign Currency S ubcom m ittee, and the Chairman o f the
C om m ittee. A ll operations undertaken pursuant to such clearances shall
be reported prom ptly to the C om m ittee.
1. The M anager shall clear w ith the Subcom m ittee (or w ith the Chair
m an, if the Chairman b eliev es that consultation w ith the Subcom m ittee
is not feasib le in the tim e available):
A . A ny operation that w ould result in a change in the S y stem ’s
overall open p osition in foreign currencies ex ceed in g $ 3 0 0 m illion on
any day or $ 6 0 0 m illion since the m ost recent regular m eeting o f the
C om m ittee.
B . A ny operation that w ould result in a change on any day in the
S y stem ’s net p osition in a sin gle foreign currency ex ceed in g $ 1 5 0 m illion ,
or $ 3 0 0 m illion w hen the operation is associated w ith repaym ent o f sw ap
draw ings.
C . A ny operation that m ight generate a substantial volu m e o f trading
in a particular currency by the S ystem , ev en though the change in the
S y stem ’s net p osition in that currency m ight be less than the lim its
specified in IB .
D . A n y sw ap draw ing proposed by a foreign bank not ex ceed in g
the larger of (i) $ 2 0 0 m illio n , or (ii) 15 percent of the size o f the sw ap
arrangement.
2. The M anager shall clear with the C om m ittee (or w ith the S u b com
m ittee, if the Subcom m ittee b eliev es that consultation w ith the full
C om m ittee is not feasib le in the tim e available, or w ith the Chairm an,
if the Chairman b e liev es that consultation w ith the Subcom m ittee is not
feasib le in the tim e available):
A . A ny operation that w ould result in a change in the S y stem ’s
overall open p osition in foreign currencies ex ceed in g $ 1 .5 b illion since
the m ost recent regular m eeting o f the C om m ittee.
B . A n y sw ap draw ing proposed by a foreign bank ex ceed in g the
larger of (i) $ 2 0 0 m illion or (ii) 15 percent of the size o f the sw ap
arrangement.
419
420
Federal Reserve Bulletin □ May 1979
3.
The Manager shall also consult with the Subcommittee or the
Chairman about proposed swap drawings by the System, and about any
operations that are not of a routine character.
Votes for this action: Messrs. Miller, Volcker, Balles, Black,
Kimbrel, Mayo, Partee, Mrs. Teeters, and Mr.. Wallich. Vote
against this action: Mr. Coldwell.
Mr. Coldwell dissented from this action because he believed that
the new limit of $1.5 billion specified in paragraph 2A was too high.
He preferred a limit of $1 billion.
5. Authorization for Domestic Open Market Operations
Paragraph 2 of the authorization for domestic open market operations
specified a limit of $2 billion on Federal Reserve Bank holdings of
special short-term certificates of indebtedness purchased directly from
the Treasury. On March 29, 1979, the Committee voted to raise the
limit to the statutory ceiling of $5 billion, effective immediately, for
the period ending with the close of business on April 17, 1979, the
date of the next scheduled meeting.
Votes for this action: Messrs. Miller, Volcker, Balles, Black,
Coldwell, Mayo, Partee, Mrs. Teeters, Messrs. Wallich, and Roos.
Votes against this action: None. Absent: Mr. Kimbrel (Mr. Roos
voted as alternate for Mr. Kimbrel).
The temporary debt ceiling of $798 billion was scheduled to expire
at midnight on March 31, 1979, and the Congress was not expected
to act on debt ceiling legislation before April 2, 1979. The Treasury
had postponed several auctions of securities designed to raise funds
to repay maturing debt and to meet cash outlays in early April. The
Committee’s action was taken on recommendation of Chairman Miller
to provide maximum operating flexibility for the Treasury.
On April 2, 1979, the Committee voted to modify paragraph 1C
of the authorization, effective immediately, for the period until the
close of business on April 6, 1979, to permit arrangement of one-day
repurchase agreements with dealers, in connection with special Treas
ury financings, at the rate at which the securities were auctioned. Under
paragraph 1C, rates on repurchase agreements with dealers must be
determined by competitive bidding, unless otherwise expressly au
thorized by the Committee.
Record of Policy Actions of FOMC
V otes for this action: M essrs. M iller, V olck er, B a lle s, B lack ,
C o ld w ell, K im brel, M a y o, Partee, M rs. T eeters, and M r. W allich .
V otes against this action: N o n e.
This action was taken on the recommendation of the management
of the System Open Market Account. The management had advised
that delay in enactment of a new temporary debt ceiling had created
a severe cash problem for the Treasury, which might persist for some
days. The Treasury planned to deal with the problem through the sale
of sizable amounts of securities for payment on the day of the auction.
However, dealers might experience difficulty in bidding in the auction,
because awards of the securities might be made too late in the day
to allow the dealers to make normal financing arrangements. The
Committee’s action provided assistance in marketing such securities
by assuring dealers that in the event financing proved to be difficult
to obtain for the first day on which the securities were issued, financing
could be made available for one day through repurchase agreements
at the same rate at which the securities were sold.
Records of policy actions taken by the Federal Open Market Committee at each
m eeting, 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 i n .
421
422
Law Department
S ta tu te s ,
re g u la tio n s ,
in te rp re ta tio n s ,
A m e n d m e n t to E q u a l C r e d it O p p o r t u n it y
The Board of Governors has amended its Regu
lation B, Equal Credit Opportunity, to clarify that
it covers persons, such as real estate brokers, home
builders, and automobile dealers, who regularly
refer applicants or prospective applicants to credi
tors, or who select or offer to select creditors to
whom requests for credit may be made.
Effective May 21, 1979, section 202.2(1) is
amended to read as follows:
Section 2 0 2 .2 —
Definitions and R ules of Construction
*
*
*
*
*
(1) Creditor means a person who, in the ordi
nary course of business, regularly participates in
the decision of whether or not to extend credit.
The term includes a creditor’s assignee, transferee,
or subrogee who so participates. For purposes of
§§ 202.4 and 202.5(a), the term also includes a
person who, in the ordinary course of business,
regularly refers applicants or prospective appli
cants to creditors, or selects or offers to select
creditors to whom requests for credit may be
made. A person is not a creditor regarding any
violation of the Act or this Part committed by
another creditor unless the person knew or had
reasonable notice of the act, policy, or practice
that constituted the violation before its involve
ment with the credit transaction. The term does
not include a person whose only participation in
a credit transaction involves honoring a credit
card.
*
*
*
*
*
R e v is io n o f L o a n s
to
E x e c u t i v e O f f ic e r s , D i r e c t o r s , a n d
P r in c ip a l S h a r e h o l d e r s o f M e m b e r B a n k s
The Board of Governors has amended its Regu
lation O, formerly entitled “ Loans to Executive
a n d
d e c is io n s
Officers of Member Banks.” Amended Regulation
O implements new section 22(h) of the Federal
Reserve Act, recently enacted by Congress as
section 104 of the Financial Institutions Regu
latory and Interest Rate Control Act of 1978
(“ FIRA” )(P.L. 95-630).
Effective March 10, 1979, Regulation O is
amended as set forth below:
Part 215— Loans to Executive Officers ,
D irectors, and Principal Shareholders of
M em ber Banks
Contents
Section
215.1
215.2
215.3
215.4
215.5
Authority, Purpose, and Scope
Definitions
Extension of Credit
General Prohibitions
Additional Restrictions on Loans to
Executive Officers of Member Banks
215.6 Extensions of Credit Outstanding on
March 10, 1979
215.7 Records of Member Banks
215.8 Reports by Executive Officers
215.9 Reports by Member Banks
215.10 Civil Penalties
Section 21 5 .1 — A uthority , Purpose , and Scope
(a) Authority. This Part is issued pursuant to
sections 11 (i), 22(g), and 22(h) of the Federal
Reserve Act (12 U.S.C. 248(i), 375a, and
375b(7)).
(b) Purpose and Scope. This Part governs any
extension of credit by a member bank to an exec
utive officer, director, or principal shareholder of
(1) the member bank, (2) a bank holding company
of which the member bank is a subsidiary, and
(3) any other subsidiary of that bank holding
company. It also applies to any extension of credit
by a member bank to (1) a company controlled
by such a person and (2) a political or campaign
committee that benefits or is controlled by such
a person.
423
S ection 2 1 5 .2 — D efinitions
For the purposes o f this Part, the fo llo w in g
definitions apply:
(a) “ C om p an y” m eans any corporation, part
nership, trust (business or o th erw ise), association ,
joint venture, p ool syn d icate, so le proprietorship,
unincorporated organization, or any other form o f
b usiness entity not specifically listed herein. H o w
ever, the term d oes not include (1) an insured bank
(as defined in 12 U .S .C . 1813(h)) or (2) a cor
poration the majority o f the shares of w hich are
ow ned by the U nited States or by any State.
(b)(1) “ Control o f a com pany or bank” m eans
that a person directly or indirectly, or acting
through or in concert w ith one or m ore persons:
(1) o w n s, controls, or has the pow er to vote 25
per cent or m ore o f any class o f votin g securities
of the com pany or bank;
(ii) controls in any manner the electio n o f a
m ajority of the directors o f the com pany or bank;
or
(iii) has the pow er to exercise a controlling
influence over the m anagem ent or p o licies o f the
com pany or bank.
(2) A person is presum ed to have control, in
cluding the pow er to ex ercise a controlling influ
en ce over the m anagem ent or p o lic ies, o f a co m
pany or bank if:
(i) the person is (A ) an ex ecu tiv e officer or
director of the com pany or bank and (B ) directly
or indirectly o w n s, controls, or has the pow er to
vote more than 10 per cent o f any class of voting
securities of the com pany or bank; or
(ii) (A ) the person directly or indirectly o w n s,
controls, or has the pow er to vote m ore than 10
per cent o f any class o f votin g securities o f the
com pany or bank, and (B ) no other person o w n s,
con trols, or has the pow er to vote a greater per
centage of that class o f votin g securities.
(3) A n individual is not considered to have
control, including the pow er to ex ercise a control
ling influence over the m anagem ent or p o lic ie s,
of a com pany or bank so lely by virtue o f the
ind ivid ual’s p osition as an officer or director o f
the com pany or bank.
(4) A person m ay rebut a presum ption estab
lished by paragraph (b )(2) o f this section by sub
m itting to the appropriate Federal banking agency
(as defined in 12 U .S .C . 1813 (q )) written m ateri
als that, in the a g en cy ’s judgm ent, dem onstrate
an absence of control.
(c) “ Director of a m em ber bank” includes (1)
any director o f a m em ber bank, w hether or not
receiving com pen sation , (2) any director o f a bank
h olding com pany (as defined in 12 U .S .C .
1 8 4 1 (a)) of w hich the m em ber bank is a su b sid i
ary, and (3) any director o f any other subsidiary
of that bank holding com pany. A n advisory direc
tor is not considered a director if the advisory
director (1) is not elected by the shareholders of
the com pany or bank, (2) is not authorized to vote
on matters before the board o f directors, and (3)
provides so lely general p o licy ad vice to the board
of directors.
(d) “ E xecu tive officer” o f a com pany or bank
m eans a person w ho participates or has authority
to participate (other than in the capacity o f a
director) in major p olicym ak in g functions o f the
com pany or bank, w hether or not: (1) the officer
has an official title, (2) the title designates the
officer an assistant, or (3) the officer is serving
w ithout salary or other co m p en sa tio n .1 The chair
man o f the board, the president, every v ice p resi
dent, the cashier, the secretary, and the treasurer
of a com pany or bank are considered ex ecu tiv e
officers, unless (1) the officer is ex clu d ed , by
resolution of the board o f directors or by the
b ylaw s o f the bank or com p an y, from participation
(other than in the capacity o f a director) in major
p olicym ak in g functions of the bank or com p an y,
and (2) the officer d oes not actually participate
therein. For the purpose of section s 2 1 5 .4 and
2 1 5 .7 b e lo w , an ex ecu tiv e officer o f a m em ber
bank includes an ex ecu tive officer o f (1) a bank
holding com pany (as defined in 12 U .S .C .
1 8 4 1 (a )) o f w hich the m em ber bank is a subsidiary
and (2) any other subsidiary o f that bank h olding
com pany, unless the ex ecu tiv e officer o f the sub
sidiary (i) is exclu d ed (by nam e or by title) from
participation in major p olicym ak in g functions of
the m em ber bank by resolutions o f the boards o f
directors of both the subsidiary and the m em ber
bank, and (ii) d oes not actually participate in such
major p olicym ak in g functions.
(e) “ Im m ediate fa m ily ” m eans the spouse of
an individual, the in d ivid u al’s m inor children, and
any o f the in d ivid u al’s children (including adults)
residing in the in d ivid u al’s hom e.
(f) The “ lending lim it” for a m em ber bank is
an amount equal to the lim it on loans to a sin gle
1.
The term is not intended to include persons who may
have official titles and may exercise a certain measure of
discretion in the perform ance of their duties, including discre
tion in the making of loans, but who do not participate in
the determ ination of m ajor policies of the bank or company
and whose decisions are limited by policy standards fixed by
the senior m anagement of the bank or com pany. For exam ple,
the term does not include a m anager or assistant m anager of
a branch of a bank unless that individual participates, or is
authorized to participate, in major policym aking functions of
the bank or com pany.
424
Federal Reserve Bulletin □ May 1979
borrower established by section 5200 of the Re
vised Statutes, 12 U.S.C. 84. This amount is 10
per cent of the bank’s capital stock and unimpaired
surplus or any higher amount permitted by section
5200 of the Revised Statutes for the types of
obligations listed therein as exceptions to the 10
per cent limit. A member bank’s capital stock and
unimpaired surplus equals the sum of (1) the “ total
equity capital” of the member bank reported on
its most recent consolidated report of condition
filed under 12 U.S.C. 1817(a)(3), (2) any subor
dinated notes and debentures approved as an addi
tion to the member bank’s capital structure by the
appropriate Federal banking agency, and (3) any
valuation reserves created by charges to the mem
ber bahk’s income.
(g) “ Member bank” means any banking insti
tution that is a member of the Federal Reserve
System. The term does not include any foreign
bank (as defined in 12 U.S.C. 3101(b)(7)) that
maintains a branch in the United States, whether
or not the branch is insured (within the meaning
of 12 U.S.C. 1813(s)) and regardless of the
operation of 12 U.S.C. 1813(h) and 12 U.S.C.
1828(j)(2).
(h) “ Pay an overdraft on an account” means
to pay an amount upon the order of an account
holder in excess of funds on deposit in the account.
(i) “ Person” means an individual or a com
pany.
(j) “ Principal shareholder” means an individ
ual or a company (other than an insured bank)
that directly or indirectly, or acting through or in
concert with one or more persons, owns, controls,
or has the power to vote more than 10 per cent
of any class of voting securities of a member bank
or company. However, for the purposes of section
215.4(c) below, this percentage shall be “ more
than 18 per cent” if the member bank is located
in a city, town, or village with a population of
less than 30,000. Shares owned or controlled by
a member of an individual’s immediate family are
considered to be held by the individual. A
principal shareholder of a member bank includes
(1) a principal shareholder of a bank holding
company (as defined in 12 U.S.C. 1841(a)) of
which the member bank is a subsidiary and (2)
a principal shareholder of any other subsidiary of
that bank holding company.
(k) “ Related interest” means (1) a company
that is controlled by a person or (2) a political
or campaign committee that is controlled by a
person or the funds or services of which will
benefit a person.
(1) “ Subsidiary” has the meaning given in 12
U.S.C. 1841(d), but does not include a subsidiary
of a member bank.
Section 2 15.3— Extension of C redit
(a) An extension of credit is a making or re
newal of any loan, a granting of a line of credit,
or an extending of credit in any manner whatso
ever, and includes:
(1) a purchase under repurchase agreement of
securities, other assets, or obligations;
(2) an advance by means of an overdraft, cash
item, or otherwise;
(3) issuance of a standby letter of credit (or other
similar arrangement regardless of name or descrip
tion) or an ineligible acceptance, as those terms are
defined in section 208.8(d) of this Chapter;
(4) an acquisition by discount, purchase, ex
change, or otherwise of any note, draft, bill of
exchange, or other evidence of indebtedness upon
which a person may be liable as maker, drawer,
endorser, guarantor, or surety;
(5) a discount of promissory notes, bills of
exchange, conditional sales contracts, or similar
paper, whether with or without recourse; but the
acquisition of such paper by a member bank from
another bank, without recourse, shall not be con
sidered a discount by the member bank for the
other bank;
(6) an increase of an existing indebtedness, but
not if the additional funds are advanced by the
bank for its own protection for (i) accrued interest
or (ii) taxes, insurance, or other expenses inciden
tal to the existing indebtedness;
(7) an advance of unearned salary or other
unearned compensation for a period in excess of
30 days; and
(8) any other transaction as a result of which
a person becomes obligated to pay money (or its
equivalent) to a bank, whether the obligation arises
directly or indirectly, or because of an endorse
ment on an obligation or otherwise, or by any
means whatsoever.
(b) An extension of credit does not include:
(1) an advance against accrued salary or other
accrued compensation, or an advance for the pay
ment of authorized travel or other expenses in
curred or to be incurred on behalf of the bank;
(2) a receipt by a bank of a check deposited
in or delivered to the bank in the usual course
of business unless it results in the carrying of a
cash item for or the granting of an overdraft (other
than an inadvertent overdraft in a limited amount
that is promptly repaid, as described in section
215.4(d) below);
Law Department
(3) an acquisition of a n ote, draft, bill o f e x
chan ge, or other ev id en ce o f indebtedness through
(i) a merger or con solid ation o f banks or a sim ilar
transaction by w h ich a bank acquires assets and
assum es liabilities of another bank or sim ilar or
ganization or (ii) foreclosure on collateral or sim i
lar proceeding for the protection of the bank,
provided that such indebtedness is not held for a
period o f m ore than three years from the date o f
the acquisition, subject to exten sion by the appro
priate Federal banking agen cy for good cause;
(4) (i) an endorsem ent or guarantee for the
protection of a bank of any loan or other asset
previously acquired by the bank in good faith or
(ii) any indebtedness to a bank for the purpose
of protecting the bank against loss or o f giv in g
financial assistance to it; or
(5) indebtedness o f $ 5 ,0 0 0 or less arising by
reason o f any general arrangement by w hich a
bank (i) acquires charge or tim e credit accounts
or (ii) m akes paym ents to or on behalf of partici
pants in a bank credit card plan, check credit plan,
interest bearing overdraft credit plan of the type
specified in section 2 1 5 .4 (d ) b e lo w , or sim ilar
open-end credit plan, provided: (A ) the indebt
edness does not in v o lv e prior individual clearance
or approval by the bank other than for the purposes
of determ ining authority to participate in the ar
rangem ent and com p lian ce w ith any dollar lim it
under the arrangem ent, and (B ) the indebtedness
is incurred under terms that are not m ore favorable
than those offered to the general public.
(c) N on-interest-bearing deposits to the credit
of a bank are not considered loan s, advances, or
exten sion s o f credit to the bank o f deposit; nor
is the givin g o f im m ediate credit to a bank upon
un collected item s received in the ordinary course
o f b usiness considered to be a loan , advance, or
extension of credit to the dep ositin g bank.
(d) For purposes o f section s 2 1 5 .4 (b ) and (c)
b elo w , an exten sion of credit by a m em ber bank
is considered to have been m ade at the tim e the
bank enters into a binding com m itm ent to m ake
the exten sion of credit.
(e) A participation w ithout recourse is co n sid
ered to be an exten sion o f credit by the partici
pating bank, not by the originating bank.
(f) An extension o f credit is considered made
to a person covered by this Part to the extent that
the proceeds of the exten sion of credit are used
for the tangible eco n o m ic benefit o f, or are trans
ferred to, such a person.
Section 215 .4 — General Prohibitions
(a) Terms and Creditworthiness. N o m em ber
425
bank m ay extend credit to any o f its ex ecu tiv e
officers, directors, or principal shareholders or to
any related interest o f that person unless the e x
tension of credit: (1) is m ade on substantially the
sam e term s, including interest rates and collateral,
as those prevailing at the tim e for com parable
transactions by the bank w ith other persons that
are not covered by this Part and w h o are not
em p loyed by the bank, and (2) d oes not in v o lv e
more than the normal risk o f repaym ent or present
other unfavorable features.
(b) P rior A pproval. (1) N o m em ber bank m ay
extend credit or grant a line o f credit to any of
its ex ecu tiv e officers, directors or principal share
holders or to any related interest o f that person
in an am ount that, w hen aggregated w ith the
amount o f all other exten sion s o f credit and lines
o f credit by the m em ber bank to that person and
to all related interests o f that person, ex ceed s
$ 2 5 ,0 0 0 , unless (i) the exten sion o f credit or line
of credit has been approved in advance by a
majority o f the entire board o f directors o f that
bank and (ii) the interested party has abstained
from participating directly or indirectly in the
voting.
(2) A pproval by the board o f directors under
paragraph (b )(1) o f this section is not required for
an exten sion of credit that is m ade pursuant to
a line of credit that w as approved under paragraph
(b)(1) o f this section w ithin 14 m onths o f the date
of the exten sion of credit. The exten sion o f credit
must also be in com p lian ce w ith the requirem ents
of section 2 1 5 .4 (a ) above.
(3) Participation in the d iscu ssio n , or any at
tempt to influence the votin g, by the board o f
directors regarding an exten sion o f credit co n sti
tutes indirect participation in the votin g by the
board o f directors on an exten sion of credit.
(c) A ggregate Lending Limit. N o m em ber bank
m ay extend credit to any o f its ex ecu tiv e officers
or principal shareholders or to any related interest
of that p erso n 2 in an amount that, w hen aggregated
with the am ount o f all other exten sion s o f credit
by the m em ber bank to that person and to all
related interests of that person, ex ceed s the lending
lim it of the m em ber bank specified in section
2 1 5 .2 (f) above. This prohibition d oes not apply
to an exten sion o f credit by a m em ber bank to
2.
This prohibition does not apply to m ember bank loans
to a director of the member bank or to a related interest of
the director, unless the director is also an executive officer
or principal shareholder. See also the definition of principal
shareholder in section 215.2(j) above, in the case of a member
bank located in a city, town or village with a population of
less than 30,000.
426
Federal Reserve Bulletin □ May 1979
a bank holding company (as defined in 12 U.S.C.
1841(a)) of which the member bank is a subsidiary
or to any other subsidiary of that bank holding
company.
(d)
Overdrafts. No member bank may pay an
overdraft of an executive officer or director of the
bank3 on an account at the bank, unless the pay
ment of funds is made in accordance with (1) a
written, preauthorized, interest-bearing extension
of credit plan that specifies a method of repayment
or (2) a written, preauthorized transfer of funds
from another account of the account holder at the
bank. This prohibition does not apply to payment
of inadvertent overdrafts on an account in an
aggregate amount of $1,000 or less, provided (1)
the account is not overdrawn for more than 5
business days, and (2) the member bank charges
the executive officer or director the same fee
charged any other customer of the bank in similar
circumstances.
Section 2 1 5 .5 —A dditional Restrictions on
Loans to Executive Officers of M em ber Banks
(a) No member bank may extend credit to any
of its executive officers,4 and no executive officer
of a member bank shall borrow from or otherwise
become indebted to the bank, except in the
amounts, for the purposes, and upon the conditions
specified in paragraphs (c) and (d) of this section.
(b) No member bank may extend credit in an
aggregate amount greater than $10,000 out
standing at any one time to a partnership in which
one or more of the executive officers of the mem
ber bank are partners and, either individually or
together, hold a majority interest. For the purposes
of paragraph (c)(3) below, the total amount of
credit extended by a member bank to such part
nership is considered to be extended to each exec
utive officer of the member bank who is a member
of the partnership.
(c) A member bank is authorized to extend
credit to an executive officer of the bank in an
aggregate amount not to exceed:
3. This prohibition does not apply to the paym ent by a
m em ber bank of an overdraft of a principal shareholder of
the m em ber bank, unless the principal shareholder is also an
executive officer or director. This prohibition also does not
apply to the paym ent by a m em ber bank of an overdraft of
a related interest of an executive officer, director, or principal
shareholder of the mem ber bank.
4. Sections 215.5, 215.8, and 215.9 of Regulation O im ple
m ent section 22(g) of the Federal Reserve Act and do not apply
to nonm em ber banks. For the purposes of these sections, an
executive officer of a m em ber bank does not include an execu
tive officer of a bank holding com pany of which the member
bank is a subsidiary or any other subsidiary of that bank holding
com pany.
(1) $20,000 outstanding at any one time to
finance the education of the executive officer’s
children;
(2) $60,000 outstanding at any one time to
finance the purchase, construction, maintenance,
or improvement of a residence of the executive
officer, if the extension of credit is secured by a
first lien on the residence and the residence is
owned (or expected to be owned after the exten
sion of credit) by the executive officer; and
(3) $10,000 outstanding at any one time for a
purpose not otherwise specifically authorized
under this paragraph.
(d)
Any extension of credit by a member bank
to any of its executive officers shall be: (1) prom
ptly reported to the member bank’s board of
directors; (2) in compliance with the requirements
of section 215.4(a) above; (3) preceded by the
submission of a detailed current financial statement
of the executive officer; and (4) made subject to
the condition that the extension of credit will, at;
the option of the member bank, become due and
payable at any time that the officer is indebted to
any other bank or banks in an aggregate amount
greater than the amount specified for a category
of credit in paragraph (c) of this section.
Section 215.6—Extensions of Credit
Outstanding on March 10, 1979
(a) Any extension of credit that was outstanding
on March 10, 1979, and that would, if made on
or after March 10, 1979, violate section 215.4(c)
above, shall be reduced in amount by March 10,
1980, to be in compliance with the lending limit
in section 215.4(c). Any renewal or extension of
such an extension of credit on or after March 10,
1979, shall be made only on terms that will bring
the extension of credit into compliance with the
lending limit of section 215.4(c) by March 10,
1980. However, any extension of credit made
before March 10, 1979, that bears a specific ma
turity date of March 10, 1980, or later, shall be
repaid in accordance with its repayment schedule
in existence on or before March 10, 1979.
(b) If a member bank is unable to bring all
extensions of credit outstanding on March 10,
1979, into compliance as required by paragraph
(a) of this section, the member bank shall promptly
report that fact to the Comptroller of the Currency,
in the case of a national bank, or to the appropriate
Federal Reserve Bank, in the case of a State
member bank, and explain the reasons why all the
extensions of credit cannot be brought into com
pliance. The Comptroller or the Reserve Bank, as
the case may be, is authorized, on the basis of
Law Department
good cause shown, to extend the March 10, 1980,
date for compliance for any extension of credit
for not more than two additional one-year periods.
Section 2 1 5 .7 —R ecords of M em ber Banks
Each member bank shall maintain records nec
essary for compliance with the requirements of this
Part. These records shall (a) identify all executive
officers, directors, and principal shareholders of
the member bank and the related interests of these
persons and (b) specify the amount and terms of
each extension of credit by the member bank to
these persons and to their related interests. Each
member bank shall request at least annually that
each executive officer, director, or principal
shareholder of the member bank identify the re
lated interests of that person.
Section 2 1 5 .8 — R eports by Executive Officers
Each executive officer5 of a member bank who
becomes indebted to any other bank or banks in
an aggregate amount greater than the amount spe
cified for a category of credit in section 215.5(c)
above, shall, within 10 days of the date the in
debtedness reaches such a level, make a written
report to the board of directors of the officer’s
bank. The report shall state the lender’s name, the
date and amount of each extension of credit, any
security for it, and the purposes for which the
proceeds have been or are to be used.
Section 2 1 5 .9 — R eports by M em ber Banks
Each member bank shall include with (but not
as part of) each report of condition (and copy
thereof) filed pursuant to 12 U.S.C. 1817(a)(3) a
report of all extensions of credit made by the
member bank to its executive officers6 since the
date of the bank’s previous report of condition.
Section 2 1 5 .1 0 — C ivil Penalties
As specified in section 29 of the Federal Reserve
Act (12 U.S.C. 504), any member bank, or any
officer, director, employee, agent, or other person
participating in the conduct of the affairs of the
bank, that violates any provision of this Part is
subject to a civil penalty of not more than $1,000
per day for each day during which the violation
continues.
Appendix— Section 5200 o f the R evised Statutes
The total obligations to any national banking
5. See note 4 above.
6. See note 4 above.
427
association of any person, copartnership, associa
tion, or corporation shall at no time exceed 10
per centum of the amount of the capital stock of
such association actually paid in and unimpaired
and 10 per centum of its unimpaired surplus fund.
The term “ obligations” shall mean the direct
liability of the maker or acceptor of paper dis
counting with or sold to such association and the
liability of the indorser, drawer, or guarantor who
obtains a loan from or discounts paper with or
sells paper under his guaranty to such association
and shall include in the case of obligations of a
copartnership or association the obligations of the
several members thereof and shall include in the
case of obligations of a corporation all obligations
of all subsidiaries thereof in which such corpora
tion owns or controls a majority interest. Such
limitation of 10 per centum shall be subject to the
following exceptions:
(1) Obligations in the form of drafts or bills
of exchange drawn in good faith against actually
existing values shall not be subject under this
section to any limitation based upon such capital
and surplus.
(2) Obligations arising out of the discount of
commercial or business paper actually owned by
the person, copartnership, association, or corpora
tion negotiating the same shall not be subject under
this section to any limitation based upon such
capital and surplus.
(3) Obligations drawn in good faith against
actually existing values and secured by goods or
commodities in process of shipment shall not be
subject under this section to any limitation based
upon such capital and surplus.
(4) Obligations as indorser or guarantor of
notes, other than commercial or business paper
excepted under (2) hereof, having a maturity of
not more than six months, and owned by the
person, corporation, association, or copartnership
indorsing and negotiating the same, shall be sub
ject under this section to a limitation of 15 per
centum of such capital and surplus in addition to
such 10 per centum of such capital and surplus.
(5) Obligations in the form of banker’s accept
ances of other banks of the kind described in
sections 372 and 373 of this title shall not be
subject under this section to any limitation based
upon such capital and surplus.
(6) Obligations of any person, copartnership,
association or corporation, in the form of notes
or drafts secured by shipping documents, ware
house receipts, or other such documents transfer
ring or securing title covering readily marketable
nonperishable staples when such property is fully
428
Federal Reserve Bulletin □ May 1979
covered by insurance, if it is custom ary to insure
such staples shall be subject under this section to
a lim itation of 15 per centum o f such capital and
surplus in addition to such 10 per centum of such
capital and surplus w hen the market value of such
staples securing such ob ligation is not at any time
less than 115 per centum o f the face am ount of
such obligation, and to an additional increase of
lim itation of 5 per centum of such capital and
surplus in addition to such 25 per centum o f such
capital and surplus w hen the market value of such
staples securing such additional obligation is not
at any tim e less than 120 per centum o f the face
amount of such additional ob ligation , and to a
further additional increase of lim itation of 5 per
centum of such capital and surplus in addition to
such 30 per centum of such capital and surplus
w hen the market value of such staples securing
such additional obligation is not at any tim e less
than 125 per centum of the face am ount o f such
additional obligation , and to a further additional
increase of lim itation of 5 per centum of such
capital and surplus w hen the market value o f such
staples securing such additional ob ligation is not
at any time less than 130 per centum o f the face
amount of such additional ob ligation , and to a
further additional increase of lim itation of 5 per
centum of such capital and surplus in addition to
such 4 0 per centum of such capital and surplus
when the market value of such staples securing
such additional obligation is not at any tim e less
than 135 per centum o f the face amount of such
additional ob ligation , and to a further additional
increase of lim itation of 5 per centum of such
capital and surplus in addition to such 45 per
centum of such capital and surplus w hen the mar
ket value of such staples securing such additional
obligation is not at any tim e less than 140 per
centum of the face amount of such additional
ob ligation, but this excep tion shall not apply to
obligations of any one person, copartnership, as
sociation, or corporation arising from the sam e
transactions and/or secured by the identical staples
for more than ten m onths. O bligations o f any
person, copartnership, association , or corporation
in the form of notes or drafts secured by shipping
docum ents, w arehouse receipts, or other such
docum ents transferring or securing title covering
refrigerated or frozen readily marketable staples
w hen such property is fu lly covered by insurance,
shall be subject under this section to a lim itation
of 15 per centum of such capital and surplus in
addition to such 10 per centum o f such capital
and surplus w hen the market value of such staples
securing such ob ligation is not at any tim e less
than 115 per centum o f the face amount o f such
additional obligation but this excep tion shall not
apply to obligations o f any one person, copartner
ship, association , or corporation arising from the
sam e transactions and/or secured by the identical
staples for more than six m onths.
(7) O bligations of any person, copartnership,
association , or corporation in the form o f notes
or drafts secured by shipping docum ents or instru
m ents transferring or securing title covering liv e
stock or g iv in g a lien on livestock w hen the market
value o f the livestock securing the obligation is
not at any tim e less than 115 per centum o f the
face amount of the notes covered by such d o cu
m ents shall be subject under this section to a
lim itation of 15 per centum o f such capital and
surplus in addition to such 10 per centum o f such
capital and surplus. O bligations arising out o f the
discount by dealers in dairy cattle o f paper given
in paym ent for dairy cattle, w hich bear a full
recourse endorsem ent or unconditional guarantee
o f the seller and are secured by the cattle being
sold , shall be subject under this section to a
lim itation o f 15 per centum of such capital and
surplus in addition to such 10 per centum o f such
capital and surplus.
(8) O bligations of any person, copartnership,
association , or corporation secured by not less than
a like amount of bonds or notes o f the U nited
States issued since April 2 4 , 1917, or certificates
of indebtedness of the U nited States, treasury b ills
of the U nited States or obligations fu lly guaranteed
both as to principal and interest by the U nited
States, shall (excep t to the extent permitted by
rules and regulations prescribed by the C om p
troller of the C urrency, with the approval of the
Secretary of the Treasury) be subject under this
section to a lim itation of 15 per centum o f such
capital and surplus in addition to such 10 per
centum of such capital and surplus.
(9) O bligations representing loans to any na
tional banking association or to any banking in sti
tution organized under the law s o f any State, or
to any receiver, conservator, or superintendent of
banks, or to any other agent, in charge o f the
b usiness and property of any such association or
banking institution, w hen such loans are approved
by the C om ptroller o f the C urrency, shall not be
subject under this section to any lim itation based
upon such capital and surplus.
(10) O bligations shall not be subject under this
section to any lim itation based upon such capital
and surplus to the extent that such ob ligations are
secured or covered by guaranties, or by com m it
m ents or agreem ents to take over or to purchase,
Law Department
m ade by any Federal R eserve bank or by the
U nited States or any departm ent, bureau, board,
com m ission , or establishm ent o f the U nited States,
including any corporation w h o lly ow n ed directly
or indirectly by the U nited States: Provided , That
such guaranties, agreem ents, or com m itm ents are
unconditional and m ust be perform ed by paym ent
of cash or its equivalent w ithin sixty days after
dem and. The C om ptroller of the Currency is
hereby authorized to define the terms herein used
if and w hen he m ay deem it necessary.
(11) O bligations o f a local public agen cy (as
defined in section 1460(h) of T itle 4 2 ) or of a
public housing agen cy (as defined in the U nited
States H ousing A ct of 1937, as am ended); w hich
have a maturity o f not m ore than eighteen m onths
shall not be subject under this section to any
lim itation, if such ob ligations are secured by an
agreem ent betw een the obligor agency and the
Secretary of H ousin g and Urban D evelop m en t in
w hich the agen cy agrees to borrow from the S e c
retary, and the Secretary agrees to lend to the
agen cy, prior to the maturity o f such ob ligation s,
m onies in an am ount w hich (together w ith any
other m onies irrevocably com m itted to the p a y
m ent of interest on such ob ligation s) w ill suffice
to pay the principal o f such ob ligation s w ith inter
est to maturity, w hich m on ies under the terms of
said agreem ent are required to be used for that
purpose.
(12) O bligations insured by the Secretary of
A griculture pursuant to the Bankhead-Jones Farm
Tenant A ct, as am ended, or the A ct of A ugust
2 8 , 1937, as am ended (relating to the conservation
of water resources), or section s 1471 -1 4 8 5 o f T itle
4 2 , shall be subject under this section to a lim ita
tion of 15 per centum o f such capital and surplus
in addition to such 10 per centum o f such capital
and surplus.
(13) O bligations as endorser or guarantor of
negotiable or n on-negotiable installm ent consum er
paper w hich carriers a full recourse endorsem ent
or unconditional guarantee by the person, copart
nership, association , or corporation transferring
the sam e, shall be subject under this section to
a lim itation of 15 per centum o f such capital and
surplus in addition to such 10 per centum of such
capital and surplus: Provided , however , That if
the bank’s files or the k n ow led ge of its officers
of the financial condition of each maker o f such
obligations is reasonably adequate, and upon cer
tification by an officer of the bank designated for
that purpose by the board o f directors o f the bank,
that the responsibility of each maker of such o b li
gations has been evaluated and the bank is relying
429
prim arily upon each such maker for the paym ent
of such ob ligation s, the lim itations o f this section
as to the ob ligation s o f each such maker shall be
the sole applicable loan lim itation: Provided fur
ther, That such certification shall be in w riting and
shall be retained as part o f the records o f such
bank.
(14)
O bligations o f the Student Loan M arketing
A ssociation shall not be subject to any lim itation
based upon such capital and surplus.
A m e n d m en ts to R ules
R e g a r d in g D e l e g a t io n o f A u t h o r it y
The Board o f G overnors has delegated authority
for certain Federal R eserve Bank matters to the
B oard’s General C ou n sel, the Staff D irector for
Federal R eserve Bank A c tiv itie s, and to the F ed
eral R eserve Banks.
E ffective M arch 2 1 , 1979, section 2 6 5 .2 is
am ended as fo llo w s:
1. 12 CFR § 2 6 5 .2 (b ) is am ended by adding
a n ew paragraph (8) to read as fo llo w s:
Section 26 5 .2 — Specific functions delegated to
B oard em ployees and Federal R eserve Banks.
*
*
*
*
*
(b)
The General C ounsel o f the Board (or in
the General C o u n se l’s a b sen ce, the acting General
C ounsel) is authorized:
(8)
to approve provision s of Federal R eserve
Bank operating circulars related to uniform ser
v ices.
2. 12 CFR § 2 6 5 .(e) is deleted and reserved.
3. 12 CFR § 2 6 5 .2 (d ) is am ended by revising
paragraphs (1 ), (2 ), and (5) and adding new para
graphs (6 )-(8 ) to read as fo llo w s:
Section 26 5 .2 — Specific functions delegated to
B oard em ployees and to Federal R eserve
Banks.
(d)
The Staff D irector for Federal R eserve Bank
A ctivities or the Staff D irector’s d esig n ee is au
thorized;
(1) to approve
(i) requests of up to $ 5 0 0 ,0 0 0 for each R eserve
Bank for the purchase or lease of com puter m ain
fram es, if the acquisition is consistent w ith the
long-range autom ation plan approved by the Board
of G overnors, and
(ii) requests o f up to $ 5 0 0 ,0 0 0 for each R eserve
430
Federal Reserve Bulletin □ May 1979
Bank for purchase or lease o f autom ation or co m
m unications equipm ent not specifically included in
the long-range autom ation plan approved by the
Board o f G overnors, excep t com puter m ainfram es.
(2)
to approve proposed rem odeling or renova
tion of or additions to R eserve Bank or Branch
buildings if the cost is over $ 5 0 0 ,0 0 0 , but not over
$ 1 ,0 0 0 ,0 0 0 , and if the project has been included
in the capital or operating budget approved by the
Board of G overnors.
*
*
*
*
*
*
*
*
(6) w ithin the con tin gen cy allow an ce for a new
building project, to approve individual co n
struction change orders over $ 5 0 0 ,0 0 0 , but not
over $ 1 ,0 0 0 ,0 0 0 .
(7) to exercise supervision over the fo llo w in g
matters relating to Federal R eserve notes:
(i) printing orders and
(ii) contracts for shipm ent, g iv in g consideration
to:
(a) the desirability of m aintaining a tw o-year
reserve supply of $5 and $ 1 0 0 notes and a one-year
supply of $1 n otes, and
(b) awarding contracts to the lo w est bidder d e
term in ed to be q u alified .
(8) to m odify the R eserve Bank A ccou ntin g
M anual (after considering the v iew s of the Sub
com m ittee on A ccou n tin g S y stem s, B udgets and
Expenditures of the C om m ittee on M anagem ent
System s and Support Services of the C onference
of First V ice Presidents) in accordance w ith g en
erally accepted accounting practices for banks,
excep t that the fo llo w in g w ill not be authorized:
(i) reserves for co n tin g en cies,
(ii) charge-off o f land to b elo w estim ated mar
ket value,
(iii) charge-offs o f b u ild in gs, or special a llo w
ances for depreciation that w ould result in full
depreciation before 4 0 years after the date of
com pletion of the structure, and
(iv) w rite-dow n o f G overnm ent securities
b elow cost, including establishm ent of a valuation
reserve.
4.
12 CFR 2 6 5 .2 (f) is am ended by revising
paragraphs (25) and (34) and adding new para
graphs (3 9 )-(5 0 ) to read as fo llo w s:
Section 2 6 5 .2 — Specific Functions D elegated to
and
to Federal R eserve
(f) Each Federal R eserve Bank is authorized:
*
*
*
*
*
(2 5 ) to set the salaries o f its officers b elo w the
lev el o f First V ic e President (including the G eneral
Auditor) w ithin gu id elin es issu ed by the Board o f
G overn ors.
*
*
*
*
*
*
(5) to review R eserve Bank agreem ents w ith
architects and other consultants for n ew c o n
struction or renovation projects over $ 1 0 0 ,0 0 0 , but
not over $ 1 ,0 0 0 ,0 0 0 .
*
B oard Em ployees
Banks.
(34) under the provision s o f section s 3 and 11 j
of the Federal R eserve A ct (1 2 U .S .C . § 5 2 1 and
2 48 (j)) to undertake rem od elin g, renovation o f
or addition to its ex istin g b uildings or those of
its branches if the expenditure for any com pleted
project is not over $ 5 0 0 ,0 0 0 , and if it has been
included in the capital or operating budget ap
proved by the Board o f G overnors.
*
*
*
*
*
(39) under the provision s o f the twenty-first
paragraph o f section 4 of the Federal R eserve A ct
(12 U .S .C . 3 0 6 ), to approve the appointm ent of
assistant Federal R eserve agents (including repre
sentatives or alternate representatives of such
agents).
(40) under the provision s of the sixteenth para
graph of section 4 of the Federal R eserve A ct (12
U .S .C . 3 0 4 ), to cla ssify m em ber banks for the
purposes o f electin g Federal R eserve B ank class
A and class B directors, giv in g consideration to:
(i) the statutory requirem ent that each of the
three groups shall con sist as nearly as m ay be o f
banks o f sim ilar capitalization, and
(ii) the desirability that every m em ber bank
have the opportunity to vote for a class A or a
class B director at least o n ce every three years.
(41) to increase its operating budget up to 1
per cent o f the annual operating budget.
(42) to purchase or lease new autom ation or
com m unications equipm ent, excep t com puter
m ainfram es, at a cost of up to $ 1 ,0 0 0 ,0 0 0 , if
included in long-range autom ation plans and cap i
tal or operating budgets approved by the Board
of G overnors.
(4 3 ) to set the salary structure for nonofficial
em p lo y ees w ithin gu id elin es issued by the Board
o f G overnors, and to approve paym ent of salary
above or b elo w established salary ranges for one
year.
(44) to approve paym ent of separation a llo w
ances upon the involuntary term ination o f e m
ploym ent of officers b elo w the lev el o f First V ice
Law Department
President (separation payments made to the Gen
eral Auditor may be approved by the Chairman
of the Board of Directors).
(45) in connection with building projects:
(i) to enter into agreements with architects and
other consultants up to $100,000;
(ii) to administer the contingency allowance;
(iii) within the contingency allowance for a new
building, to approve construction change orders
up to $500,000;
(iv) to approve exceptions to Buy American
Policy for construction materials within authorized
dollar limits; and
(v) to award contracts to other than the lowest
bidder within authorized dollar limits.
(46) to sell real property (prior consultation
with the Director of the Division of Federal Re
serve Bank Operations is required for any property
appraised at more than $1,000,000).
(47) to purchase or lease new fixed or operating
equipment, other than automation or com
munications equipment, costing up to $250,000,
if identified in capital or operating budgets ap
proved by the Board.
(48) to make changes in territories served by
offices within its district for specific functions.
(49) to extend the employment of officers and
employees, except the President and First Vice
President, for one year beyond mandatory retire
ment age.
(50) to grant performance cash awards.
(1) to Senior Vice Presidents, if approved by
the President, and
(ii)
to the General Auditor, if approved by the
Chairman of the Board of D irectors.
The Board of Governors has delegated to the
Secretary of the Board authority to permit member
banks to waive the penalty for early withdrawal
of a time deposit in § 217.4(d) of Regulation Q
for depositors suffering emergency-related losses
in areas declared an emergency area by the Presi
dent.
Effective April 26, 1979, paragraph 265.2
(a)(18) is amended to read as follows:
Section 265.2—Specific Functions Delegated to
Board Employees and Federal Reserve Banks
(2) The Secretary of the Board (or, in the
Secretary’s absence, the Acting Secretary) is au
thorized:
(18) Under the provisions of section 19(j) of
431
the Federal Reserve Act (12 U .S.C . § 371b) and
§§ 217.4(a) and (d) of Regulation Q (12 C .F.R .
§§ 217.4(a) and (d)) to permit member banks to
waive the penalty for early withdrawal of a time
deposit in § 217.4(d) (Regulation Q), if all of the
following conditions are met:
(i) The President of the United States declares
an area a major disaster area or an emergency area
pursuant to section 301 of the Disaster Relief Act
of 1974 (42 U .S.C . §5141) and Executive Order
No. 11795 of July 11, 1974.
(ii) A waiver is limited in effectiveness to de
positors suffering disaster or emergency-related
losses in the officially designated disaster or em er
gency area.
(iii) The appropriate Reserve Bank recom
mends approval.
(iv) All relevant divisions of the Board’s staff
recommend approval.
B a n k H o l d in g C o m p a n y
and
Bank M
Issu e d
by
erger
th e
B
Orders
oard of
G overnors
Orders Under Section 3
of Bank Holding Company Act
Minneapolis Holding Company,
Minneapolis, Minnesota
O rder A pproving
Formation of a Bank H olding Com pany
Minneapolis Holding Company, Minneapolis,
Minnesota, has applied for the Board’s approval
under section 3(a)(1) of the Bank Holding Com
pany Act (12 U .S.C . § 1842(a)(1)) of formation
of a bank holding company by acquiring 97 per
cent of the voting shares of Bank of Minneapolis
and Trust Company, Minneapolis, Minnesota
(“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the Board has considered
the application and all comments received in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant is a nonoperating Minnesota corpora
tion organized for the purpose of becoming a bank
holding company by acquiring Bank. Bank has
total deposits of $28.0 million, representing ap
proximately 0.2 percent of total commercial bank
432
Federal Reserve Bulletin □ M ay 1979
deposits in M innesota.1 Upon consummation of
the proposal, Applicant would control the 62nd
largest bank in the state. Bank is the 30th largest
of 115 banking organizations within the Minneapolis-St. Paul banking market (the relevant
market) and holds 0.3 percent of total commercial
bank deposits in the m arket.2 The subject proposal
is essentially a reorganization that places current
individual ownership interests in a corporation
owned by the same individuals, and it does not
appear that consummation of the proposal would
eliminate any existing competition, increase the
concentration of banking resources, or have an
adverse effect on the development of future com
petition in the market. Therefore, the Board finds
that competitive considerations are consistent with
approval.
The financial and managerial resources of Ap
plicant are largely dependent upon those of Bank.3
It appears from the facts of record that Bank’s
condition has improved since the current owners
acquired Bank and that income to be derived from
Bank would provide Applicant with sufficient rev
enue to service its acquisition debt while main
taining acceptable capital levels at Bank. It appears
from these and other facts of record that the
financial and managerial resources of Bank and
Applicant are satisfactory and that their future
prospects appear favorable. Therefore, the Board
concludes that banking factors are consistent with
approval.
Although consummation of the proposal would
not change.the banking services offered by Bank,
considerations relating to the convenience and
needs of the community to be served are consistent
with approval. It has been determined that con
summation of the transaction would be in the
public interest and that the application should be
approved.
1. A ll banking data are as o f June 3 0 , 1978.
2. The relevant banking market is approxim ated by the
M inneapolis-St. Paul R M A adjusted to include all o f Carver
C ounty.
3. Title II of the Financial Institutions Regulatory and In
terest Rate Control A ct of 1978 ( “ F IR A ” ) sets forth prohibi
tions against certain interlocks betw een m anagem ent officials
of depository institutions, including com m ercial banks and
“ depository holding co m p a n ies,” and further provides that
these prohibitions w ill not apply until 1988 to certain interlocks
that existed on the date of its enactm ent. U pon acquisition
o f Bank, an interlock m ight exist betw een Applicant and
M idw est Federal Savings and Loan, a mutual savings associa
tion located in M inneapolis, w hich w ould not qualify for the
grandfather exem ption in FIR A . If the relationship proves to
be inconsistent with forthcom ing regulations im plem enting
T itle II of FIR A , Applicant w ill be expected to conform its
m anagem ent structure to the requirements of the regulations
adopted by the board.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be consummated (a) before
the thirtieth day following the effective date of this
Order, or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board or by
the Federal Reserve Bank of Minneapolis pursuant
to delegated authority.
By order of the Board of Governors, effective
April 27, 1979.
Voting for this action: Chairman Miller and Gover
nors Wallich, Partee, and Teeters. Absent and not
voting: Governor Coldwell.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
Northwest Bancorporation,
Minneapolis, Minnesota
O rder A pproving A cquisition of Bank
Northwest Bancorporation, Minneapolis, M in
nesota, a bank holding company within the mean
ing of the Bank Holding Company Act, has ap
plied for the Board’s approval under section
3(a)(3) of the Act (12 U .S.C . § 1842(a)(3)) to
acquire 95 percent or more of the voting shares
(less directors’ qualifying shares) of First National
Bank, Cedar Falls, Iowa (“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the Board has considered
the application and all comments received, in
cluding those of The National Bank of W aterloo,
Waterloo, Iowa (“ Protestant” ), in light of the
factors set forth in section 3(c) of the Act (12
U .S.C. § 1842(c)).
Applicant controls 84 banks located in seven
midwestern states,1 including Iowa, with total de
posits of $7.8 billion.2 Applicant is the largest
banking organization in Iowa, controlling nine
banks with total deposits of $997.8 million, repre
senting approximately 6.8 percent of the total
deposits in commercial banks in Iowa. Acquisition
of Bank ($41.0 million in deposits) would increase
Applicant’s share of deposits in the state by only
0.3 percent and would have no appreciable effect
1. T hese seven states are M innesota, M ontana, North D a
kota, South D akota, W iscon sin , N ebraska, and Iow a.
2. A ll banking data are as of June 30 , 1978.
Law Department
upon the concentration of banking resources in
Iowa.
Bank is the fourth largest of thirteen banking
organizations operating in the Waterloo banking
market,3 controlling approximately 9.3 percent of
market deposits. Applicant’s two closest banking
subsidiaries are located in Mason City and Marion,
70 miles northwest and southeast, respectively, of
Bank in separate banking markets. In view of the
distances between Bank and A pplicant’s banking
subsidiaries and other facts of record, it appears
that no significant existing competition would be
eliminated between Bank and any of Applicant’s
subsidiary banks by consummation of this pro
posal.
As part of its analysis of this application, the
Board has considered the comments in opposition
to the proposal submitted by Protestant, the largest
banking organization in the relevant banking m ar
ket, with deposits of $136.4 million and 30.8
percent of market deposits. In summary, Protestant
contends that Applicant is capable of entering the
market on a de novo basis; competition between
Applicant’s mortgage banking subsidiary, Banco
M o rtg ag e C o m p an y , St. P a u l, M in n eso ta
(“ Banco” ), and Bank will be eliminated upon
consummation of this proposal; and convenience
and needs factors are not sufficient to outweigh
what it believes to be the adverse competitive
effects of the proposal.
While the Applicant has the resources to enter
the market de novo , based upon the facts of record
the market appears only moderately attractive to
de novo entry by Applicant. Furthermore, the
Board does not view the acquisition of Bank,
which is not one of the market’s largest banks,
as raising such a significant competitive issue to
warrant denial of this application. M oreover, upon
consummation of this proposal, numerous inde
pendent banking alternatives would remain as po
tential entry vehicles into the market.
Protestant contends that competition between
Applicant’s mortgage banking subsidiary, Banco,
and Bank will be eliminated upon consummation
of the proposal. However, it appears from the facts
of record that no significant competitive effects
will result from approval of this application. Banco
operates an office in Waterloo that serves both as
Banco’s national loan servicing center and one of
38 residential mortgage loan origination offices.
Banco’s Waterloo office extends residential mort
3.
The W aterloo banking market is approximated by Black
Hawk County and that portion o f the W aterloo Ranally M etro
politan Area ( “ R M A ” ) extending into Bremer County, in
Iowa.
433
gage loans in Bank’s market area; since Bank also
originates such loans, Applicant and Bank are
direct competitors. As of year-end 1977, Banco
was servicing loans on residential properties lo
cated in Black Hawk County with a total out
standing balance of $26.8 million. Banco’s W a
terloo office accounted for 3.2 and 6.2 percent of
the total mortgage recordings in Black Hawk
County in 1976 and 1977, respectively, while
Bank’s originations represented less than 1.0 per
cent of the County total in each of these years.
However, the proposed acquisition of Bank would
not significantly reduce the number of organi
zations in the markets offering mortgage loans,
since nine other commercial banks and six savings
and loan associations originate such loans in the
market, as do a number of the 31 credit unions
located in the area. Moreover, the proposal may
have a procompetitive effect upon mortgage lend
ing in the market, since upon consummation of
this proposal Applicant intends to enable Bank to
offer FHA-insured and VA-guaranteed mortgage
loans and graduated payment mortgage services
not previously offered by Bank. Based upon these
and other facts of record, the Board concludes that
consummation of the proposal would not result in
any significant adverse effects upon competition
in any relevant area. Thus, competitive consid
erations, when viewed in light of other aspects
of the proposal, are regarded as being consistent
with approval of the application.
The financial and managerial resources and fu
ture prospects of Applicant, its subsidiary banks
and Bank are regarded as satisfactory. Accord
ingly, banking factors are consistent with approval
of this application.
Protestant asserts that the convenience and
needs factors are insufficient to outweigh what
Protestant believes to be the adverse competitive
effects of the proposal. As noted above, the Board
does not view consummation of the proposal as
resulting in any significant adverse effects upon
competition in any relevant area.
With respect to convenience and needs consid
erations, the Board believes that such consid
erations lend weight toward approval of the appli
cation and outweigh any anticompetitive effects
that may be associated with the proposal. For
example, Applicant plans to introduce some new
services to the customers of Bank, including lease
financing, and a full range of trust and international
services, as well as the mortgage lending services
previously discussed. In addition, Applicant in
tends to cause Bank to offer increased returns on
savings deposits and certificates through daily
434
Federal Reserve Bulletin □ M ay 1979
compounding on accounts and expand its lending.
These considerations relating to the convenience
and needs of the community to be served lend
weight toward approval of the application and
outweigh any adverse competitive effects that
might result from consummation of this proposal.
Based upon the foregoing and other considerations
reflected in the record, it is the Board’s judgment
that the proposed application is in the public inter
est and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be consummated (a) before
the thirtieth calendar day following the effective
date of this Order, or (b) later than three months
after the effective date of this Order unless such
period is extended for good cause by the Board,
or by the Federal Reserve Bank of Chicago pur
suant to delegated authority.
By order of the Board of Governors, effective
April 20, 1979.
Voting for this action: Chairman Miller and Gover
nors Wallich, Coldwell, Partee, and Teeters.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the B o a rd .
The Wyoming National Corporation,
Casper, Wyoming
O rder D enying A cquisition of Bank
The Wyoming National Corporation, Casper,
W yoming, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board’s approval under § 3(a)(3)
of the Act (12 U .S.C . § 1842(a)(3)) to acquire
80 percent or more of the voting shares of First
National Bank of Glenrock, Glenrock, Wyoming
(“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U .S.C .
§ 1842(c)).
Applicant, the third largest banking organization
and bank holding company in Wyoming, controls
three bank subsidiaries1 with aggregate deposits
1.
On D ecem ber 2 8 , 1978, the Board approved A pplicant’s
proposal to acquire W yom in g National Bank o f East Casper,
Casper, W yom in g, a d e novo bank (65 F e d e r a l R e s e r v e
of $208.8 million, representing 9.5 percent of total
deposits in commercial banks in W yoming.2 Ac
quisition of Bank, ($8.7 million in deposits) would
increase Applicant’s share of commercial bank
deposits in Wyoming by 0.4 percent and would
not have an appreciable effect upon the concentra
tion of banking resources in the state.
Bank is the only bank in Glenrock, located
approximately 20 miles east of Casper, and is in
the Casper banking market, which is defined to
include Natrona County and western Converse
County, W yoming.3 The definition of the Casper
market includes the town of Glenrock, which is
located in western Converse County.
While Casper and Glenrock are located 20 miles
apart, evidence of record indicates that Casper and
Glenrock are in fact an economically integrated
area. For example, Glenrock residents commute
to Casper for employment and shopping purposes;
Casper’s newspaper is the only daily newspaper
of general circulation in Glenrock, and Glenrock
is served by Casper’s television station; and
Casper and Glenrock are linked by a major inter
state highway.
Also, the record shows significant deposit and
loan overlap between Applicant’s lead bank, The
Wyoming National Bank of Casper, Casper,
Wyoming (“ Casper Bank” ), and Bank, which is
another indicator that the two banks are located
in the same market.4 In addition, the facts of
r e c o r d i n d i c a t e that Bank’s management is sensi
tive to the business strategies of banks in Casper
and that Bank is responsive to the prices charged
and the services offered by banks in Casper. Ac
B u l l e t in 69 (1 9 7 9 )), but this proposal has not yet been
consum m ated.
2. A ll banking data are as of June 30 , 1978, and reflect
bank holding com pany form ations and acquisitions approved
as of January 3 1 , 1979.
3. In the B oard’s Order approving A pplicant’s proposal to
acquire W yom ing National Bank of East Casper, the Board
noted that it w as review in g the definition of the Casper banking
market, w hich was then approxim ated by the R anally M etro
politan Area including the City of Casper and the tow ns of
M ills, E vansville, and Paradise V alley, all in Natrona C ounty,
W yom in g. (65 F ederal R eserve B u l l e t in 69 , 7 0 n.3
(1 9 7 9 )).
4. A pplicant, in contending that Casper Bank and Bank do
not com pete in the sam e market, states that the percentages
of total loans and total deposits that each bank derives from
the other bank’s Primary Service Area ( “ P S A ” ) are sm all
enough to be insignificant. H ow ever, the Board feels that the
more relevant measure of deposit and loan overlap is the total
deposits (loans) that one bank derives from the other bank’s
PSA divided by the total deposits (loans) that the other bank
derives from its PSA . M easured on this basis, even taking
into account that many of the com m ercial loans made by Capser
Bank in the Glenrock area are to businesses w hose principals
live in C asper, the deposit and loan overlap ratio betw een
Casper Bank and Bank reflect that a substantial amount of
com petition exists betw een Casper Bank and Bank.
Law Department
cordingly, it is the Board’s opinion that the Casper
banking market is appropriately defined as Natrona
County and western Converse County, including
the town of Glenrock.
Applicant is the largest of nine banking organi
zations located in the Casper banking market and
controls deposits of $192.2 million, representing
42.3 percent of total deposits in commercial banks
in the relevant market. Bank is the sixth largest
bank in the relevant market and holds deposits of
$8.7 million, representing 1.9 percent of total
deposits in commercial banks in the market. The
acquisition of Bank would raise Applicant’s share
of market deposits to 44.2 percent and further
increase concentration in an already highly con
centrated market. The four largest banking orga
nizations in the Casper banking market, which
include the two largest banking organizations in
W yoming, control 93.9 percent of market depos
its. Accordingly, the Board views the effects of
the proposal upon the concentration of banking
resources in the Casper banking market as an
adverse factor in its consideration of this applica
tion. The facts of record indicate that consumma
tion of the proposal would also eliminate substan
tial existing competition between Casper Bank and
Bank. Accordingly, the Board finds on the basis
of the foregoing and other facts of the record that
consummation of this proposal would have sub
stantially adverse competitive effects and that the
proposal should not be approved unless the anti
competitive effects are clearly outweighed by ben
efits to the public in meeting the convenience and
needs of the community to be served.
The f in a n c i a l a n d m a n a g e r i a l r e s o u r c e s a n d fu
ture prospects of Applicant, its banking subsidi
aries and Bank are regarded as satisfactory. Ac
cordingly, considerations relating to banking fac
tors are consistent with approval of the application.
While some benefits relating to the convenience
and needs of the community to be served might
result from consummation of the proposal, the
Board is of the view that such benefits do not
clearly outweigh the substantially adverse com
petitive effects that would result from Applicant’s
acquisition of Bank.
On the basis of the facts in the record, and in
light of the factors set forth in section 3(c) of the
Act, it is the Board’s judgment that approval of
the proposal would not be in the public interest.
Accordingly, the application is denied for the
reasons summarized herein.
By order of the Board of Governors, effective
April 2, 1979.
435
Voting for this action: Chairman Miller and Gover
nors Wallich, Coldwell, Partee, and Teeters.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
Orders Under Section 4
of Bank Holding Company Act
Citizens Bancorporation,
Sheboygan, Wisconsin
O rder A pprovin g A cquisition of Citizens
M anagem ent Services Corporation
Citizens Bancorporation, Sheboygan, W iscon
sin, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board’s approval, under section 4(c)(8) of
the Act (12 U .S.C . § 1843(c)(9)) and section
225.4(b)(2) of the Board’s Regulation Y (12
C .F.R . § 225.4(b)(2)), to acquire all of the voting
shares of Citizens Management Services Corpora
tion, Sheboygan, W isconsin (“ Company” ), a
proposed new company formed to engage in the
activities of furnishing management consulting
advice on an explicit fee basis to nonaffiliated
banks, including advice with respect to auditing,
investments, data processing, marketing personnel
establishment of branches, credit policies and ad
ministration and trust operations. Such activities
have been determined by the Board to be closely
related to banking (12 C .F.R . § 225.4(a)(12)).
Notice of the application, affording opportunity
for interested persons to submit comments on the
p u b l i c in t e r e s t f a c t o r s , h a s b e e n d u l y p u b l i s h e d (43
Federal R egister 1220). The time for filing com
ments has expired, and the Board has considered
the application and all comments received in the
light of the public interest factors set forth in
§ 4(c)(8) of the Act (12 U .S.C . 1843(c)(8)).
Applicant, the ninth largest banking organi
zation in Wisconsin, controls 5 banks with aggre
gate deposits of $298 m illion,1 representing 1.62
percent of the total deposits in commercial banks
in the state. Applicant also engages through non
banking subsidiaries in mortgage banking and
leasing activities.
Company proposes to provide its management
consulting to nonaffiliated banks located in Eastern
Wisconsin. Applicant’s entry into the field de novo
would provide an additional competitor that offers
1. A s of June 30 , 1978.
2. A s of D ecem ber 31 , 1977.
436
Federal Reserve Bulletin □ May 1979
this specialized financial and consulting advice and
would have no adverse effects on existing or
potential competition in any relevant area. M ore
over, availability of this advice on an explicit fee
basis, rather than as part of a correspondent bank
ing service, will enable client banks to more accu
rately analyze the cost of such services and such
banks may be able to more efficiently allocate their
funds.
There is no evidence in the record indicating
that consummation of the proposed transaction
would result in any undue concentration of re
sources, unfair competition, conflicts of interests,
unsound banking practices, or other adverse ef
fects on the public interest. Furthermore, Appli
cant states that it is aware of the prohibitions
concerning tie-ins contained in section 106 of the
Act (12 U .S.C . § 1972) and the Board’s Regula
tion Y (12 C .F.R . § 225.4(c)) and will comply
with those prohibitions.
Based upon the foregoing and other consid
erations reflected in the record, the Board has
determined, in accordance with the provisions of
§ 4(c)(8), that consummation of this proposal can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. Ac
cordingly, the application is hereby approved. This
determination is subject to the conditions set forth
in section 225.4(c) of Regulation Y and to the
Board’s authority to require such modification or
termination of the activities of a holding company
or any of its subsidiaries as the Board finds neces
sary to assure compliance with the provisions and
purposes of the Act and the Board’s regulations
and orders issued thereunder, or to prevent evasion
thereof.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Chicago.
By order of the Board of Governors, April 16,
1979.
Voting for this action: Chairman Miller and Gover
nors Wallich, Partee, and Teeters. Absent and not
voting: Governor Coldwell.
(Signed) G r if f it h L . G a r w o o d ,
[seal]
Deputy Secretary of the Board.
Deutsche Bank AG,
Frankfurt, Federal Republic of Germany
O rder A pprovin g Acquisition of Fiat C redit
S ervices, Inc., and Fiat C redit Corporation
Deutsche Bank AG, Frankfurt, Federal Repub
lic of Germany, a foreign bank subject to certain
provisions of the Bank Holding Company Act of
1956 (“ the A ct” ) ,1 has applied for the Board’s
approval, pursuant to section 4(c)(8) of the Act
(12 U .S.C . § 1843(c)(8)) and section 225.4(b)(2)
of the B o a rd ’s R e g u latio n Y (12 C .F .R .
§ 225.4(b)(2)), to acquire, through Applicant’s
subsidiary, Deutsche Bank Compagnie Financiere
Luxembourg, Luxembourg, 50 percent of the vot
ing shares of Fiat Credit Services, Inc. (“ Ser
vices” ), Deerfield, Illinois, a de novo corporation.
The remaining shares of Services would be held
by a subsidiary of Fiat S.p.A . (“ Fiat” ), Turin,
Italy. Services would engage, through its wholly
owned subsidiary, Fiat Credit Corporation (“ Cor
poration” ), Deerfield, Illinois, in the activities of
dealer inventory financing for dealers of affiliates
of Fiat in the United States and retail financing
for purchasers and lessees of products from such
dealers. These activities have been determined by
the Board to be closely related to banking (12
C .F.R. § 225.4(a)(1)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been duly published (44 Federal R e g
ister 10548). The time for filing comments and
views has expired, and the Board has considered
the application and all comments in light of the
public interest factors set forth in section 4(c)(8)
of the Act.
Applicant is the largest bank in Germany and
the third largest bank in the Free W orld, with
consolidated assets equivalent to approximately
$66.1 billion.2 Since the proposed initial invest
ment of $5 million and anticipated later invest
ments represent a minimal percentage of Appli
cant’s consolidated assets, the proposal would not
appear to have any significant effect upon Appli
cant’s financial condition.
Fiat is a major diversified industrial corporation
based in Italy, with consolidated assets equivalent
to approximately $4.7 billion. Fiat manufactures
automobiles, trucks, agricultural equipment, air
craft parts, and construction equipment; it also
1. A pplicant, a foreign bank operating a branch in N ew
York, N ew Y ork, is subject to certain provisions of the A ct
by operation of section 8(a) of the International B anking A ct
of 1978, Pub. L. N o. 9 5 -3 6 9 , § 8(a), 92 Stat. 622.
2. A ll financial data are as of D ecem ber 3 1 , 1977.
Law Department
operates in other industries, including steel and
energy production, civil engineering projects, and
tourist services.
Applicant proposes to acquire 50 percent of the
shares of Services, a nonoperating corporation
formed to hold all the shares of Corporation.
Through Corporation, Applicant and Fiat propose
to engage de novo in providing dealer financing
for dealers of affiliates of Fiat in the United States
and retail financing for purchasers and lessees of
products from such dealers. Fiat’s affiliates now
include Fiat Motors of North America, Inc., FiatAllis Construction M achinery, Inc., Hesston Cor
poration, and Iveco Trucks of North America
Incorporated. Corporation will engage in these
finance activities from an office in Deerfield, Illi
nois. Since this acquisition represents de novo
entry, no existing competition would be eliminated
between Services and the subsidiaries of either
Applicant or Fiat,3 and independent entry into this
activity by Applicant or Fiat appears unlikely.
On the other hand, in the circumstances of this
proposal, the Board finds that consummation of
the proposal would result in public benefits. Ap
plicant’s proposal would provide dealers in the
United States in products manufactured by Fiat an
additional source of inventory financing and pro
vide customers of those dealers an additional
source of retail financing. Furthermore, there is
no evidence in the record indicating that consum
mation of this proposal would result in undue
concentration of resources, unfair competition,
conflicts of interests, unsound banking practices
or other adverse effects.
Based upon the foregoing and other consid
erations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
section 4(c)(8) of the Act is favorable. Accord
3.
A pplicant’s N ew York branch is engaged primarily in
w holesale banking and is not engaged in the proposed finance
activities. Applicant ow ns indirectly through its subsidiary,
German A m erican Capital Corporation, 20 .1 percent o f the
shares o f European-Am erican Bancorp, w hich controls Euro
pean-Am erican Bank and Trust Com pany ( “ E A B & T ” ), both
of N ew York, N ew York. The Board noted in its Order dated
M ay 10, 1977, approving the acquisition o f E A B & T that
Applicant w as not a bank holding com pany with respect to
E A B & T . E A B & T engages in w holesale and retail sales finance
in the N ew York M etropolitan banking market (w hich consists
of N ew York C ity, N assau, W estchester, Putnam, and R ock
land Counties and western Suffolk County in N ew York, the
northern two-thirds of B ergen County and eastern H udson
County in N ew Jersey, and southwestern Fairfield County in
C onnecticut). H ow ever, even if Applicant were considered to
engage indirectly through E A B & T in such finance activities,
E A B & T ’s existing business is confined to a lim ited area and
the com bined market shares of E A B & T and Corporation w ould
not represent a significant presence in any relevant market.
437
ingly, the application is approved. This determi
nation is subject to the conditions set forth in
section 225.4(c) of Regulation Y and to the
Board’s authority to require such modification or
termination of such activities as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board’s regula
tions and orders issued thereunder, or to prevent
evasion thereof.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of New
York pursuant to authority hereby delegated.
By order of the Board of Governors, effective
April 13, 1979.
Voting for this action: Chairman Miller and Gover
nors Wallich, Partee, and Teeters. Absent and not
voting: Governor Coldwell.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the B o a rd .
First National Holding Corp.
Atlanta, Georgia
O rder A pprovin g A cquisition of
First G rand Junction Industrial Bank
First National Holding Corp., Atlanta, Georgia,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board’s approval, under section 4(c)(8) of the
Act (12 U .S.C . § 1843(c)(8)) and section
225.4(b)(2) of the Board’s Regulation Y (12
C.F.R. § 225.4(b)(2)), to acquire First Grand
Junction Industrial Bank (“ Industrial Bank” ),
Grand Junction, Colorado, a de novo corporation,
through its subsidiary, Gulf Finance Corp. ( “ Gulf
Finance” ), Atlanta, Georgia. Industrial Bank
would operate as an industrial bank pursuant to
the laws of Colorado and act as agent for the sale
of life and accident and health insurance directly
related to its extensions of credit. The Board has
determined these activities to be closely related
to banking (12 C .F.R . § 225.4(a)(2) and (9)(ii)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been duly published (44 Federal R eg
ister 6517). The time for filing comments and
views has expired, and the Board has considered
the application and all comments received in the
light of the public interest factors set forth in
section 4 (c )(8 ) of the A ct (12 U .S .C .
§ 1843(c)(8)).
438
Federal Reserve Bulletin □ M ay 1979
Applicant, the third largest banking organization
in Georgia, controls four banks with aggregate
deposits of approximately $1.55 billion, repre
senting 10.3 percent of the total deposits in com
mercial banks in the state.1 Through Industrial
Bank, Applicant proposes to engage in industrial
loan activities,2 including accepting savings de
posits, issuing certificates of deposit, engaging in
general consumer lending and limited amounts of
commercial lending. Industrial Bank would also
engage in the sale of credit-related insurance, but
the institution would not accept demand deposits.
Since the acquisition of Industrial Bank involves
de novo entry in an area served by none of Appli
cant’s subsidiaries, consummation of the proposal
would not have an adverse effect on competition
in any relevant area. Accordingly, the Board finds
competitive factors to be consistent with approval
of the application.
The Board also finds that consummation of the
proposal is likely to result in public benefits.
Industrial Bank would provide the relevant market,
approximated by the town of Grand Junction, both
an additional savings facility and an additional
source of loans and credit-related insurance, which
results the Board regards as being in the public
interest. There is no evidence in the record indi
cating that consummation of this proposal would
result in undue concentration of resources, unfair
competition, conflicts of interests, unsound bank
ing practices, or other adverse effects. The Board
believes furthermore that Applicant’s financial re
sources are generally consistent with approval of
this application.
Based upon the foregoing and other consid
erations reflected in the record, the Board has
determined that the balance of public interest fac
tors the board is required to consider under section
4(c)(8) is favorable. Accordingly, the application
is approved. The transaction shall be made not
later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank
of Atlanta pursuant to authority hereby delegated.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y and to
1. A ll banking data are as of June 3 0, 1978. One of
A pplicant’s subsidiary banks, The Bank of D alton, D alton,
G eorgia, (deposits of $ 2 3 .7 m illion) must be divested in
accordance with a previous Board Order (63 F ederal R eserve
B u l l e t in 9 2 9 (1977)).
2. Under Colorado law , an industrial bank is subject to
exam ination tw ice each year by the Colorado State Bank
C om m issioner and must be a member of the Industrial Bank
Savings Guaranty Corporation, a self-insuring entity, if it is
not a member o f the Federal D eposit Insurance Corporation.
the Board’s authority to require such modification
or termination of the activities of a holding com
pany or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board’s regula
tions and orders issued thereunder, or to prevent
evasion thereof.
By order of the Board of Governors, effective
April 9, 1979.
Voting for this action: Chairman Miller and Gover
nors Wallich, Coldwell, Partee, and Teeters.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
Memphis Trust Company,
Memphis, Tennessee
O rder D enying R equest fo r R econsideration
Memphis Trust Company, Memphis, Tennessee
(“ Memphis Trust” ), has requested that the Board
of Governors reconsider its Order, published on
April 10, 1975, in which the Board denied the
application of Memphis Trust filed pursuant to
section 4(c)(8) of the Bank Holding Company Act
(12 U .S.C . § 1843(c)(8)) (the “ A ct” ), for Board
approval to acquire shares of Homeowners Savings
and Loan Association, Collierville, Tennessee
(“ Homeowners” ), and thereby to engage de novo
in the activity of operating a savings and loan
association.
At its meeting on April 9, 1975, the Board voted
to deny the application of Memphis Trust to ac
quire Homeowners, approved an Order reflecting
that action, and authorized the entry of the Order.
The Order was printed, signed by the Board’s
Secretary, and released to the public and Memphis
Trust on April 10, 1975. The Board found that,
while operating a savings and loan association is
closely related to banking, the performance of the
activity by Memphis Trust was not a “ proper
incident” to banking because of adverse financial
factors.1 Memphis Trust did not request the Board
to reconsider its action, nor did Memphis Trust
petition for review of the Board’s Order in the
court of appeals within 30 days of the entry of
the Order as provided in section 9 of the A ct.2
1. The Board has subsequently determined that operating
a savings and loan association is not a perm issible activity
for bank holding com panies because the potential for adverse
effects of generally allow in g affiliations of banks and savings
and loan associations is sufficiently strong to outw eigh any
public benefits that m ight result in individual cases. (D . H.
B aldw in C om pany, 63 F e d e r a l R e s e r v e B u l l e t i n 28 0
(1977)).
2. 12 U .S .C . § 1848.
Law Department
On February 19, 1976, Memphis Trust filed an
action in the United States District Court for the
Western District of Tennessee seeking a determi
nation that Memphis Trust’s application should be
deemed approved as a matter of law since, ac
cording to Memphis Trust, the Board’s denial
Order was issued more than 91 days after submis
sion to the Board of the complete record of the
application.3 The District Court granted the relief
requested by Memphis Trust. On appeal, the
United States Court of Appeals for the Sixth Cir
cuit reversed the District Court judgment and re
manded the case to the District Court with in
structions to dismiss the complaint for lack of
subject matter jurisdiction. M em phis Trust Com
pany v. B oard of G overnors, 584 F.2d 921 (1978).
In its decision, the Sixth Circuit indicated that the
dismissal of the District Court judgment was
“ without prejudice to [Memphis Trust’s] right to
request the Board to reconsider its order of April
10, 1975.”
Consistent with the Supreme Court’s decision
in W hitney N ational Bank v. Bank of N ew Orleans
& Trust C o., 379 U .S. 411 (1965), the Court of
Appeals held that the exclusive means by which
an aggrieved party may obtain judicial review of
an order of the Board under the Act is by a timely
petition to an appropriate Court of Appeals. In
order to be timely, the petition must be filed within
30 days after entry of the order.4 Accordingly, any
right of reconsideration is implicitly limited by the
30-day appeal p eriod5 provided in section 9 of
the A ct.6 The Board believes that strict adherence
to the 30-day limitation for seeking review of a
3. Section 4 (c) o f the A ct provides:
In the event o f the failure o f the Board to act on any
application for an order under paragraph (8) o f this
subsection w ithin the ninety-one-day period w hich b e
gins on the date of subm ission to the Board o f the
com plete record on that application, the application
shall be deem ed to have been granted. 12 U .S .C .
§ 1843(c).
4 . T im e lim its for judicial review are “ jurisdictional and
unalterable.” M icro w a ve C om m un ications, Inc. v. F ederal
C om m unications C om m ission , 515 F .2 d 3 8 5 , 389 (D .C . Cir.
1974).
5. On October 19, 1978, the Board am ended its R ules of
Procedure to require that a petition for reconsideration of a
Board order be filed within 15 days of entry o f the order.
(43 F ederal R e g iste r 4 9 9 7 3 (1 9 7 8 )).
6. H ow ever, in Investm ent C om pany Institute v . B o a rd o f
G o vern o rs, 551 F .2 d 1270 (D .C . Cir. 1977), the court held
that an untim ely request for reconsideration o f a Board regula
tion under the A ct m ight be appropriate in extraordinary
circum stances, where the petitioner had a “ legitim ate e x c u se ”
for failing to file w ithin the 30-day appeal period. In this
connection, the court stated that the agency “ must be strict
in determ ining what constitutes a ‘legitim ate’ excu se; other
w ise, the po licy o f finality underlying the 30-day lim it w ill
not be a c h ie v e d .” Id. at 1282. The court found a legitim ate
excu se for untim ely filing because o f the uncertainty as to the
439
Board order under the Act is necessary in the
interest of administrative efficiency, judicial econ
omy, and the implementation of Congressional
intent.7
It is undisputed that Memphis Trust did not file
a petition for review of the Board’s denial Order
within 30 days of entry of that O rder.8 Nor did
Memphis Trust file a timely petition for recon
sideration of that Order. Accordingly, the Board
believes that the instant petition for recon
sideration, filed more than three years after entry
of the Board’s Order, is untimely, and, for this
reason, reconsideration is not warranted.
Memphis Trust has neither alleged nor presented
evidence of any extraordinary circumstances as
might lead the Board to exercise its discretion to
grant reconsideration of its 1975 Order. Memphis
Trust attempts to explain its failure to seek timely
review or reconsideration of the Order by claiming
that it relied on a 1972 Board interpretation that
the 91 day period does not begin to run until the
Board’s staff has submitted all necessary informa
tion (including staff memoranda) to the members
of the Board. The Board finds this explanation
unpersuasive since Memphis Trust could have
challenged the Board’s 1972 analysis and the
Board’s 1975 Order by seeking judicial review of
the Order within 30 days of its entry.9 Such a
challenge to the Board’s interpretation of the 91day rule was filed by Tri-State Bancorporation in
1975 and upheld by the Court of Appeals for the
Seventh Circuit.10 The same procedure was avail
able to Memphis Trust.
Accordingly, the Board does not believe that
reconsideration of its 1975 Order is appropriate
or warranted. The petition for reconsideration is
therefore denied for untimeliness. However, be
cause of the suggestion in M em phis Trust, supra,
that the Board should address the 91-day issue,
the Board believes it appropriate to set forth its
appropriate m ethod of obtaining judicial review of a regulation
and the “ ripeness” o f a regulation for review . In M em phis
Trust’s case, there w as no such uncertainty because the chal
lenged action w as an order, not a regulation, and the order
was unquestionably ripe for review upon its entry.
7. In M em ph is T rust, supra at 9 2 7 , the Sixth Circuit stated
that “ [T]he 30-day lim it [of section 9] prom otes finality of
Board determ inations, conserves adm inistrative resources, and
protects the reliance interests o f holding com panies w hose
applications to engage in nonbanking activity have been ap
p roved.”
8. Indeed, M em phis Trust’s first challenge to the B oard’s
Order was not made until February 19, 1976, more than ten
months after entry o f the Order.
9. The U nited States Court of A ppeals for the Sixth Circuit
also appears to question the persuasiveness of M em phis Trust’s
explanation. M em ph is T rust C om pany, supra at 9 2 4 , n .7.
10. T ri-S tate B a n corporation , Inc. v. B o a rd o f G overn ors,
524 F .2d 562 (7th Cir. 1975).
440
Federal Reserve Bulletin □ May 1979
view on the lack of merit in Memphis Trust’s claim
under the 91-day rule in § 4(c) of the Act.
Section 4(c) of the Act requires that the Board
“ act” on an application within the 91-day period
that begins on the date of the submission to the
Board of the complete record on the application.11
The record shows that the Board acted on M em
phis Trust’s application to acquire Homeowners
on April 9, 1975, within 91 days of receipt by
the Board on January 8, 1975, of the information
submitted to the Board by Memphis Trust regard
ing its financial condition. Accordingly, the
Board’s action was timely under the Act.
The Board considered Memphis Trust’s appli
cation at its meeting on April 9, 1975, which date
Memphis Trust acknowledges was within 91 days
of the date the record on its application was
com plete.12 At the meeting, the Board discussed
the various recommendations concerning action on
the application proposed by its staff. On that same
date, the Board took final action on the application
by voting to deny the application. The Board also
authorized issuance of the denial Order that was
published on April 10, 1975.13
Memphis Trust claims that the entry of the
11. The Board believes that the 9 1 -day rule is inapplicable
to applications to engage in prohibited activities (such as
ownership of a savings and loan association, w hich the Board
has found to be not so “ clo sely related to banking” as to
be “ a proper incident thereto” ). At the tim e of M em phis
Trust’s application, the Board had not determined that, as a
general matter, savings and loan activities were a proper
incident to banking, nor had the Board added the activity to
the B oard’s list of perm issible activities for bank holding
com panies (12 C .F .R . § 2 2 5 .4 (a )). The Board had found that
the activity was “ c lo sely related” but not that it was a “ proper
incid en t.” A m erica n F letch er C o rp o ra tio n , (60 F e d e r a l R e
s e r v e B u l l e t i n , 868 (1 9 7 4 )).
M em phis Trust’s attempt to apply the 9 1 -day rule to Board
determinations concerning a prohibited activity is inconsistent
with the fundamental legislative intent of the Bank H olding
C om pany A ct to separate banking and nonbanking. There is
no reason to believe that C ongress intended that an application
to engage in a prohibited activity (i.e ., to operate a steel m ill)
w ould be approved in 91 days if the Board failed to act on
such application.
12. “ The Board’s jurisdiction [to act on the application]
expired [on] April 9 , 1 9 7 5 ” p. 10, Brief for the A ppelle,
M em ph is Trust, supra.
The Board believes that Board action on the 91st day after
the record is com plete fulfills the A c t’s requirement that the
Board act w ithin the 9 1 -day period that begins on the date
of subm ission of the com plete record. This method of com pu
tation is consistent with com m on usage and accepted practice
in other areas. S ee, e .g ., Rule 3 4 , U .S . Supreme Court R ules;
B u rn et v. W illingham Loan & Trust C o ., 282 U .S . 4 3 4 (1931);
U nited S ta tes v. B esa se, 319 F. Supp. 1064 (N .D . O hio,
1970).
13. Entry o f the Order on April 10, 1975, marks the start
of M em phis Trust’s 30-day time lim it for judicial review since
section 9 o f the A ct expressly provides that the appeal period
starts upon “ entry of the order.” H ow ever, the 9 1 -day rule
in section 4 (c) is in terms o f “ failure o f the Board to a c t,”
and is not, as in the case of the appeal period of section 9,
measured from “ entry o f the order.”
Order on April 10 marks the date the Board acted 14
on its application and that April 10 is 92 days
from January 8, 1975, the date the record on the
application was complete. Memphis Trust there
fore concludes that the Board’s failure to enter an
Order on April 9, 1975, resulted in approval of
the application under the 91-day rule. However,
the Board’s action on April 9, 1975, plainly con
stituted action under section 4(c)(8) of the Act and
within the meaning of the 91-day rule. Since the
Board’s action on April 9 was within the 91-day
period specified in the Act, the 91-day rule does
not apply to Memphis Trust’s application. The
“ entry” of the Board’s Order, a purely ministerial
function assigned by the Board’s rules to the
Board’s Secretary, did not occur until the follow
ing day as a result of the time required to duplicate,
address and distribute copies of the Board’s Order
to Memphis Trust, other agencies and the press.15
Having acted on the application in a timely manner
on April 9, 1975, there is no doubt that the Board
was authorized to publish an Order on April 10
explaining the reasons for its earlier action.
On the basis of the foregoing, Memphis Trust’s
request for reconsideration of the Board’s Order
denying Memphis Trust’s application to acquire
Homeowners is hereby denied.
By order of the Board of Governors, effective
April 25, 1979.
Voting for this action: Chairman Miller and Gover
and T e e te r s .
n o rs W a llic h , C o ld w e ll, P a r te e ,
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the Board.
C e r t if ic a t io n s P u r s u a n t
to
the
B a n k H o l d in g C o m p a n y Ta x A
ct of
19 7 6
C.I.T. Financial Corporation,
New York, New York
Prior Certification Pursuant to the Bank
H olding Com pany Tax A c t of 1976
14. The Board did not m eet on April 10, 1975, and therefore
could not possibly have ac te d on that date within the m eaning
of section 4(c) of the A ct.
15. At the tim e of the Board’s action, section 3(b) of the
B oard’s R ules of Organization (12 C .F .R . § 2 6 2 .3 (b )) pro
vided that the Office of the Secretary “ . . . prepares docum ents
for the Board’s agenda and im plem ents actions tak en .” In 1976
these Rules were am ended to state that the Office of the
Secretary “ . . . im plem ents action taken at Board m e e tin g s.”
Sim ilarly, the B oard’s R ules of Procedure, 12 C .F .R .
§§ 2 6 2 .3 (d ) and 2 6 2 .3 (g )(4 ) distinguish betw een the Board’s
actions and the docum ents or orders that em body such action.
Law Department
[D ocket N o. TCR 76-167]
C .I.T. Financial Corporation, New York, New
York (“ C .I.T .” ), has requested a prior certifi
cation pursuant to section 6158(a) of the Internal
Revenue Code (“ Code” ), as added by section 3(a)
of the Bank Holding Company Tax Act of 1976
(“ Tax A ct” ), that its sale of 100 percent of the
outstanding voting shares of National Bank of
North America, Jamaica, New York (“ NBN A ” ),
to NatWest Holdings Inc., W ilmington, Delaware
(“ H oldings” ), a wholly owned subsidiary of Na
tional W estminster Bank Limited, London, Eng
land (“ NatW est” ), is necessary or appropriate to
effectuate the policies of the Bank Holding Com
pany Act (12 U .S.C . § 1841 et seq.) (“ BHC
A ct” ) .1
In connection with this request for a prior cer
tification, the following information is deemed
relevant for purposes of issuing the requested
certification:2
1. C .I.T . is a corporation organized under the
laws of Delaware on January 24, 1924.
2. C .I.T . owned 3,522,297, representing 92.88
percent, of the outstanding voting shares of NBNA
on December 31, 1965, and has owned such shares
continuously since that date.3 On July 7, 1970,
C .I.T. owned and controlled 5,660,130, repre
senting 97.49 percent, of the outstanding voting
shares of NBNA. Since 1972, C .I.T . has owned
and controlled 100 percent (less directors’ quali
fying shares) of the outstanding voting shares of
NBNA.
3. C .I.T . became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
direct ownership and control at that time of more
than 25 percent of the outstanding voting shares
of NBNA, and it registered as such with the Board
on October 4, 1971. C .I.T . would have been a
1. On March 16, 1979, the Board issued a prior certification
pursuant to the Tax A ct relating to the proposed sale by C .I.T .
of 75 .1 percent of the shares of N B N A . C .I.T . now proposes
to sell the additional 2 4 .9 percent o f N B N A ’s shares. A ccord
ingly, this certification amends the B oard’s certification of
March 16, 1979, and provides prior certification for the sale
of a portion of the additional shares.
2. This inform ation derives from C .I .T .’s correspondence
with the Board concerning its request for this certification,
C .I .T .’s Registration Statement filed with the Board pursuant
to the BHC A ct, and other records of the Board.
3. C .I.T . presently ow ns 6 ,2 1 5 ,4 9 4 of the outstanding vot
ing shares of N B N A , including 5 5 5 ,3 6 4 shares acquired by
C .I.T . after July 7 , 1970. Under section 6 158 o f the C ode,
shares o f N B N A acquired by C .I.T . after July 7 , 1970,
generally do not qualify for the tax benefits of section 6158(a)
of the C ode w hen sold by an otherw ise qualified bank holding
com pany.
441
bank holding company on July 7, 1970, if the 1970
Amendments of the BHC Act had been in effect
on such date, by virtue of its direct ownership and
control on that date of more than 25 percent of
the outstanding voting shares of NBNA.
4. C .I.T . holds property acquired by it on or
before July 7, 1970, the disposition of which
would be necessary or appropriate to effectuate
section 4 of the BHC Act if C .I.T . were to
continue to be a bank holding company beyond
December 31, 1980. This property is “ prohibited
property” within the meaning of section 1103(c)
of the Code.
5. C .I.T . has represented to the Board that after
the sale of the shares of NBNA to Holdings, no
person holding an office or position (including an
advisory or honorary position) as a director or
officer of C .I.T. will hold any such office or
position with NatWest or any of its subsidiaries,
including NBNA and Holdings. In its prior certif
ication of March 16, 1979, the Board indicated
that C .I.T .’s proposed retention of 24.9 percent
of the shares of NBNA would not terminate
C .I.T .’s status as a bank holding company, and
noted that the sale of such shares would be neces
sary or appropriate to effectuate the purposes of
the Act. In light of the foregoing and inasmuch
as C .I.T . has represented that after the proposed
sale, C .I.T. will not exercise a controlling influ
ence over the management or policies of NBNA,
and C .I.T. will not own or control, either directly
or indirectly, more than 5 percent of the out
standing shares of any other bank, it presently
appears that upon consummation of the sale by
C .I.T. of all of its shares of NBNA, C .I.T . would
cease to be a bank holding company.4
On the basis of the foregoing, it is hereby
certified that:
(A) C .I.T. is a qualified bank holding corpora
tion within the meaning of section 1103(b) of the
Code, and satisfies the requirements of that sec
tion;
(B) the 5,660,130 shares, representing 97.49
percent of the outstanding voting shares, of NBNA
that C .I.T. proposes to sell to Holdings are all
or part of the property by reason of which C .I.T.
controls within the meaning of section 2(a) of the
BHC Act a bank or bank holding company; and
(C) the sale of such shares of NBNA is neces
sary or appropriate to effectuate the policies of the
BHC Act.
4.
Under section 6158 of the C ode, C .I.T . must obtain a
final certification from the Board after it has consum m ated the
proposal that it has ceased to be a bank holding com pany.
442
Federal Reserve Bulletin □ May 1979
This certification is based upon the repre
sentations made to the Board by C .I.T . and upon
the facts set forth above. In the event that the
Board should hereafter determine that the facts
material to this certification are otherwise than as
provided by C .I.T ., or that C .I.T . has failed to
disclose to the Board other material facts, the
Board may revoke this certification.
By order of the Board of Governors, acting
through its General Counsel pursuant to delegated
authority (12 C .F.R . § 265.2(6)(3)), effective
April 9, 1979.
(Signed)
[s e a l ]
G r if f it h
L.
G arw ood,
D eputy Secretary of the B oard.
Frank J. Eicher Company, Inc.,
Coral ville, Iowa
Prior Certification Pursuant to the Bank
Holding Company Tax A c t of 1976
[D ocket No. TCR 76-169]
Frank J. Eicher Company, Inc., Coral ville,
Iowa (“ Company” ), has requested a prior certifi
cation pursuant to section 1101(a)(1) of the Inter
nal Revenue Code (“ Code” ), as amended by
section 2(a) of the Bank Holding Company Tax
Act of 1976, that its proposed divestiture of 1,010
voting shares of Eicher’s, Inc., Iowa City, Iowa,
and 19,750 voting shares of Seville Corporation,
Iowa, City, Iowa, currently held by Company,
through the p ro rata distribution of such shares
to the two shareholders of Company who are
husband and wife, is necessary or appropriate to
effectuate the policies of the Bank Holding Com
pany Act (12 U .S.C . § 1841 et seq.) (“ BHC
A ct” ).
In connection with this request, the following
information is deemed relevant for the purpose of
issuing the requested certification:1
1. Company is a corporation organized under
the laws of the state of Iowa on October 1, 1968.
2. On January 1, 1969, Company acquired
2,306 voting shares, representing approximately
55 percent of the outstanding voting shares, of
uniBank and Trust Company, Coral ville, Iowa
(“ Bank” ) (formerly Coralville Bank and Trust
Company).
3. Company became a bank holding company
1.
This inform ation derives from C om pany’s com
munications with the Board concerning its request for this
certification, C om pany’s registration statement filed with the
Board pursuant to the BH C A ct, and other records of the Board.
on December 31, 1970, as a result of the enact
ment of the 1970 Amendments to the BHC Act,
by virtue of its ownership and control at that time
of more than 25 percent of the outstanding voting
shares of Bank, and it registered as such with the
Board on July 29, 1971. Company would have
been a bank holding company on July 7, 1970,
if the 1970 Amendments to the BHC Act had been
in effect on such date by virtue of its direct
ownership and control on that date of more than
25 percent of the outstanding voting shares of
Bank. Company presently owns and controls ap
proximately 80.3 percent of the outstanding voting
shares of Bank.
4. Company acquired 100 percent of the out
standing voting shares of Eicher’s, Inc., a retail
floral business, and Seville Corporation, a business
that owns and operates apartment complexes, on
October 1, 1968, and has owned such shares
continuously since that date.
5. Following the proposed divestiture, Com
pany will not engage in any nonbanking activities
other than indirectly holding through Bank First
(1st) Coralville Company, Coralville, Iowa, a real
estate holding company, the sole asset of which
is the building occupied by Bank.
6. Company acquired the shares of Eicher’s,
Inc., and Seville Corporation before July 7, 1970.
The disposition of the shares of these companies
would be necessary or appropriate to effectuate
section 4 of the BHC Act if Company were to
continue to be a bank holding company beyond
December 31, 1980.
On the basis of the foregoing information, it
is hereby certified that:
A. Company is a qualified bank holding cor
poration within the meaning of section 1103(b) of
the Code, and satisfies the requirements of that
section;
B. The shares of Eicher’s, Inc., and Seville
Corporation are “ prohibited property” within the
meaning of section 1103(c) of the Code;
C. The distribution of the shares of Eicher’s,
Inc., and Seville Corporation is necessary or ap
propriate to effectuate the policies of the BHC Act.
This certification is based upon the repre
sentations made to the Board by Company and
upon the facts set forth above. In the event the
Board should hereafter determine that the facts
material to this certification are otherwise than as
represented by Company or that Company has
failed to disclose to the Board other material facts,
the Board may revoke this certification.
By order of the Board of Governors, acting
through its General Counsel pursuant to delegated
Law Department
authority (12 C .F.R .
April 26, 1979.
Orders A
pproved
§ 265.2(b)(3)), effective
(Signed)
L.
G arw ood,
D eputy Secretary of the B oard.
[s e a l ]
U n d e r B a n k H o l d in g C o m p a n y A
G r if f it h
443
ct
B y the B o a rd o f G overn ors
During April 1979 the Board of Governors approved the applications listed below. Copies are available
upon request to Publications Services, Division of Support Services, Board of Governors of the Federal
Reserve System, Washington, D .C. 20551.
Section 3
Applicant
American National Bancorp, Inc. ,
South Bend, Indiana
Fairmont Bancorporation, Inc.,
Fairmont, M innesota
First Bankshares of W yoming,
Cheyenne, Wyoming
First Dover Investment Company,
Inc., Elgin, Minnesota
Ford Financial Corporation,
Kempton, Illinois
Presque Isle Bancorporation,
Rogers City, Michigan
St. Joseph Agency, Inc.,
South Bend, Indiana
Southwest Bancshares, Inc.,
Houston, Texas
Taylor Bancor, Inc.,
Emington, Illinois
Board action
(effective
date)
Bank(s)
American Affiliates, Inc.,
South Bend, Indiana
The Fairmont National Bank,
Fairmont, Minnesota
The First National Bank and Trust
Company of Wyoming, Cheyenne,
Wyoming
First Dover Investment Company,
Inc., Elgin, Minnesota
Kempton State Bank & Trust
Company, Kempton, Illinois
Presque Isle Bank,
Rogers City, Michigan
St. Joseph Bank and Trust Company,
South Bend, Indiana
Lewisville National Bank,
Lewisville, Texas
The Taylor State Bank,
Emington, Illinois
April 13, 1979
April 20, 1979
April 27, 1979
April 27, 1979
April 17, 1979
April 6, 1979
April 16, 1979
April 18, 1979
April 17, 1979
B y F ederal R e se rv e B anks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of
the orders are available upon request to the Reserve Banks.
Section 3
Applicant
Alabama Bancorporation,
Birmingham, Alabama
Ellis Banking Corporation,
Bradenton, Florida
Bank(s)
Citizens National Bank of
Limestone County, Athens,
Alabama
Pan American Bank of Altamonte Springs, Altamonte
Springs, Florida
Reserve
Bank
Effective
date
Atlanta
April 27, 1979
Atlanta
April 2, 1979
444
Federal Reserve Bulletin □ May 1979
Section 3 (Continued)
Applicant
Bank(s)
Mid-America Bancshares, Inc.,
Pleasant Hill, Missouri
Toledo Trustcorp, Inc.,
Toledo, Ohio
Goppert Bancshares, Inc.,
Kansas City, Missouri
Peoples National Bank of
Delphos, Delphos, Ohio
Reserve
Bank
Effective
date
Kansas City
April 6, 1979
Cleveland
April 26, 1979
Section 4
Nonbanking
Company
(or activity)
Applicant
Mercantile Bankshares Corpora
tion, Baltimore, Maryland
Reinsuring credit life and
credit accident and health
insurance
Expansion of the insurance
underwriting activities
Tennessee Valley Bancorp,
Inc., Nashville, Tennessee
Orders A
pproved
Un der B a n k M
erger
A
P e n d in g
C ases
In v o l v in g
Bank(s)
Community State Bank and
Trust Company, Linden,
New Jersey
th e
B
oard
Effective
date
Richmond
April 24, 1979
Atlanta
April 18, 1979
ct
Applicant
Commercial Trust Company of
New Jersey, Jersey City,
New Jersey
Reserve
Bank
of
Reserve
Bank
New York
Effective
date
April 6, 1979
G overnors
D oes not include suits against the Federal R eserve Banks in which the B oard of G overnors is not nam ed a p arty.
Independent Insurance A gents of A m erica , et al.
v. B oard of G overnors filed March 1979,
Ella Jackson et a l., v. B oard of G overnors, filed
U .S.C .A . for the District of Columbia.
G ibralter Financial Corp. of California v. B oard
of G overnors, filed March 1979, U .S.C .A . for
the District of Columbia.
Credit and Com merce Am erican Investm ent , et
a l ., v. B oard of G overnors, filed March 1979,
U .S.C .A . for the District of Columbia.
California Life Corporation v. B oard of G over
nors, filed January 1979, U .S .C .A . for the
District of Columbia.
Consumers Union of the United States v. G.
W illiam M iller, et a l., filed December 1978,
U .S.D .C . for the District of Columbia.
M anchester-T ow er G rove Community O rgani
za tio n /A C O R N v. B oard of G overnors, filed
November 1978, U .S.C .A . for the Fifth Circuit.
September 1978, U .S.C .A . for the District of
Columbia.
Beckley v. B oard of G overnors, filed July 1978,
U .S.D .C . for the Northern District of Illinois.
Independent Bankers A ssociation of Texas v. First
N ational Bank in D a lla s , et a l., filed July 1978,
U .S.C .A . for the Northern District of Texas.
M id-N ebraska B ancshares , Inc. v. Board of G ov
ernors, filed July 1978, U .S.C .A . for the Dis
trict of Columbia.
N C N B Corporation v. B oard of G overnors, filed
Law Department
June 1978, U .S.C .A . for the Fourth Circuit.
United States L eague of Savings A ssociations v.
B oard of G overnors, filed May 1978, U .S.D .C .
for the District of Columbia.
Citicorp v. B oard of G overnors, filed March 1979,
U .S.C .A . for the Second Circuit.
Security Bancorp and Security N ational Bank v.
B oard of G overnors, filed March 1978,
U .S.C .A . for the Ninth Circuit.
M ichigan N ational Corporation v. B oard of G ov
ernors, filed January 1978, U .S.C .A . for the
Sixth Circuit.
W isconsin Bankers A ssociation v. B oard of G ov
ernors, filed January 1978, U .S.C .A . for the
District of Columbia.
Vickars-Henry Corp. v. B oard of G overnors, filed
December 1977, U .S.C .A . for the Ninth Cir
cuit.
Emch v. The United States of A m erica, et al.,
filed November 1977 for the Eastern District of
Wisconsin.
Central Bank v. B oard of G overnors, filed Oc
tober 1977, U .S.C .A . for the District of Co
lumbia.
445
Investment Com pany Institute v. B oard of G over
nors, filed September 1977, U .S.D .C . for the
District of Columbia.
BankAm erica C orporation v. B oard of G over
nors, filed May 1977, U .S.D .C . for the North
ern District of California.
BankAm erica Corporation v. B oard of G over
nors, filed May 1977, U .S.C .A . for the Ninth
Circuit.
R oberts Farms , Inc. v. Com ptroller of the Cur
rency, et a l., filed November 1975, U .S.D .C .
for the Southern District of California.
Florida A ssociation of Insurance A g en ts, Inc. v.
B oard of G overnors, and N ational A ssociation
of Insurance A gents, Inc. v. B oard of G over
nors, filed August 1975, actions consolidated
in U .S.C .A . for the Fifth Circuit.
D avid R. M errill , et a l., v. Federal Open M arket
Com mittee of the Federal R eserve System , filed
May 1975, U .S.D .C . for the District of Colum
bia.
Bankers Trust N ew York C orporation v. B oard
of G overnors, filed May 1973, U .S.C .A . for
the Second Circuit.
Al
Financial and Business Statistics
C
ontents
D o m e s t i c F in a n c ia l S t a t i s t i c s
W e e k l y R e p o r t in g C o m m e r c ia l B a n k s
A3 Monetary aggregates and interest rates
A4 Factors affecting member bank reserves
A5 Reserves and borrowings of member
banks
A6 Federal funds transactions of money
market banks
P o l ic y In st r u m e n t s
A8 Federal Reserve Bank interest rates
A9 Member bank reserve requirements
A 10 Maximum interest rates payable on
time and savings deposits at federally
insured institutions
A ll Federal Reserve open market
transactions
Fe d e r a l R e s e r v e B a n k s
Assets and Liabilities of—
A20
All reporting banks
A21
Banks in New York City
A22
Banks outside New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A25 Gross demand deposits of individuals,
partnerships, and corporations
Fin a n c ia l M
arkets
A25 Commercial paper and bankers
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Terms of lending at commercial banks
A27 Interest rates in money and capital
markets
A28 Stock market— Selected statistics
A 12 Condition and F.R. note statements
A 13 Maturity distribution of loan and
security holdings
A29 Savings institutions— Selected assets
and liabilities
M
Fe d e r a l Fin a n c e
onetary and
C r e d it A
ggregates
A 13 Bank debits and deposit turnover
A 14 Money stock measures and components
A 15 Aggregate reserves and deposits of
member banks
A 15 Loans and investments of all
commercial banks
C o m m e r c ia l B a n k A
sse ts a n d
L ia b il it ie s
A 16 Last-Wednesday-of-month series
A 17 Call-date series
A18 Detailed balance sheet, September 30, 1978
A30 Federal fiscal and financing operations
A31 U.S. budget receipts and outlays
A32 Federal debt subject to statutory
limitation
A32 Gross public debt of U.S. Treasury—
Types and ownership
A33 U.S. government marketable
securities— Ownership, by maturity
A34 U.S. government securities dealersTransactions, positions, and financing
A35 Federal and federally sponsored credit
agencies— Debt outstanding
A2
Federal Reserve Bulletin □ M ay 1979
S e c u r it ie s M
arkets an d
C o r p o r a t e Fin a n c e
A36 New security issues— State and local
governments and corporations
A37 Open-end investment companies— Net
sales and asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations— Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A39 Domestic finance companies— Assets
and liabilities; business credit
R eal E state
A40 Mortgage markets
A41 Mortgage debt outstanding
I n te r n a ti o n a l S t a t i s t i c s
A54 U.S. international transactions—
Summary
A55 U.S. foreign trade
A55 U.S. reserve assets
A56 Foreign branches of U.S. banks—
Balance sheet data
A58 Selected U.S. liabilities to foreign
official institutions
R eported
by
Banks
in
th e
U n it e d S t a t e s
A59 Liabilities to foreigners
A61 Banks’ own claims on foreigners
A62 Banks’ own and domestic customers’
claims on foreigners
A63 Banks’ own claims on unaffiliated
foreigners
A63 Liabilities to and claims on foreigners
C onsumer Installment C redit
S e c u r it ie s H o l d in g s
A42 Total outstanding and net change
A43 Extensions and liquidations
Fl o w
of
F unds
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to
credit markets
A46 Nonfinancial business activity—
Selected measures
A46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production— Indexes and
gross value
A50 Housing and construction
A51 Consumer and wholesale prices
A52 Gross national product and income
A53 Personal income and saving
Tr a n s a c t io n s
A64 Marketable U.S. Treasury bonds and
notes— Foreign holdings and
transactions
A64 Foreign official assets held at F.R.
Banks
A65 Foreign transactions in securities
R eported
D o m e s t i c N o n f in a n c ia l S t a t i s t i c s
and
th e
by
N
o n b a n k in g
Concerns
in
U n it e d S t a t e s
A66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners
In t e r e s t
and
Exc h a n g e R ates
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A69 G u id e to T a b u l a r P r e s e n ta tio n
a n d S ta tis tic a l R e le a s e s
Domestic Financial Statistics
A3
1.10 M O N ETA R Y AG G R EG A TES A N D INTER ES T RATES
1978
Q2
Q3
1979
Q4
Ql
1978
Nov.
1979
Dec.
Feb.
Mar.
Monetary and credit aggregates
(annual rates o f change, seasonally adjusted in per cent)13
Member bank reserves
Total.............................................................................
Required.....................................................................
Nonborrowed.............................................................
Monetary base1.........................................................
7 .6
9.3
Concepts of money2
5
M -l...............................................................................
6
M-1 + ...........................................................................
7 M -2...............................................................................
8
M -3...............................................................................
9 .2
7.2
8.4
8.4
9.9
10.4
4 .4
2.4
7.7
9 .3
Time and savings deposits
Commercial banks:
9
Total.........................................................................
10
Savings.....................................................................
11
Other time...............................................................
12
Thrift institutions 3................................................
11.5
3.8
11.4
8.5
11.3
2.3
18.5
12.4
-0 .9
19.2
13 Total loans and investments at commercial banks4
14.9
1
2
3
4
6.2
0.6
6.7
8.6
8.6
6.6
8.1
6.0
11.1
Ml.8
2.3
-2 .9
4 .6
8.4
-3 .3
5.7
2.1
11.6
'10.7
1978
Q2
Q3
Q4
-2.8
- 2 .4
- 5 .4
1.6
4 .6
8.4
-10.2
15.9
8.8
11.0
-3 .6
-5 .4
13.4
'5.9
-2.0
-0.1
- 0 .4
-4 .9
'6.5
1.7
6.0
6.6
2.2
'9.5
1.8
3.3
1.3
5.5
-5 .1
4 .7
6 .7
-1.6
2 .7
5.5
-1.2
2.8
- 3 .7
- 7 .0
'2.3
4 .7
0 .7
- 1 .7
3 .7
21.9
-9 .6
24.5
9 .6
5.1
-7 .5
9 .3
9 .0
-1 3 .0
12.7
8.5
8.6
-12.0
20.3
'8.2
-1 .4
12.0
r12.7
'0 .4
'25.3
'10.9
1979
1978
Ql
Dec.
-5 .3
-8 .4
-21.0
-2 0 .9
-20.6
-1.0
6.0
-6.1
14.0
9.1
2.0
1979
Jan.
Feb.
Mar.
Apr.
Interest rates (levels, per cent per annum)
14
15
16
17
Short-term rates
Federal funds 5..........................................................................
Federal Reserve discount6 .....................................................
Treasury bills (3-month market y ie ld )7 ....................................
Commercial paper (90- to 119-day)7>8...............................
7.28
6.78
6.48
7.16
8.09
7.50
7.31
8.03
9.58
9.09
8.57
9.83
10.07
9.50
9.38
10.04
10.03
9.50
9.08
10.37
10.07
9.50
9.35
10.25
10.06
9.50
9.32
9.95
10.09
9.50
9.48
9.90
10.01
9.50
9.46
9.85
18
19
20
Long-term rates
Bonds:
U.S. Government9...............................................................
State and local government10....................................
Aaa utility (new issue)11....................................................
8.43
6.02
8.98
8.53
6.16
8.94
8.78
6.28
9.23
9.03
6.37
9.58
8.90
6.51
9.28
8.98
6.47
9.54
9.03
6.31
9.53
9.08
6.33
9.62
9.12
6.29
9.70
21
Conventional mortgages12....................................................
9.58
9.80
10.12
10.33
10.30
10.30
10.35
10.35
10.35
1 Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier); currency outside the U.S.
Treasury, Federal Reserve Banks and the vaults o f commercial banks;
and vault cash o f nonmember banks.
2 M -l equals currency plus private demand deposits adjusted.
M -l -(-equals M -l plus savings deposits at commercial banks, NOW
a cco u n ts at b a n k s a n d th rift in stitu tio n s, cred it u n io n share draft ac
counts, and demand deposits at mutual savings banks.
M-2 equals M -l plus bank time and savings deposits other than large
negotiable certificates o f deposit (CDs).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
3 Savings and loan associations, mutual savings banks, and credit
unions.
4 Quarterly changes calculated from figures shown in table 1.23.
5 Seven-day averages o f daily effective rates (average o f the rates on
a given date weighted by the volume o f transactions at those rates).
6 Rate for the Federal Reserve Bank o f New York.
7 Quoted on a bank-discount basis.
8 Beginning Nov. 1977, unweighted average of offering rates quoted
by at least five dealers. Previously, most representative rate quoted by
these dealers.
9 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
10 Bond Buyer series fo r 20 issu es o f m ix ed q u ality.
11 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.
12 Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept, of Housing and Urban Development.
13 Unless otherwise noted, rates o f change are calculated from average
amounts outstanding in preceding month or quarter.
A4
Domestic Financial Statistics □ M a y 1979
1.11 FACTORS AFFECTING MEMBER BANK RESERVES
Millions o f dollars
Monthly averages o f daily
figures
Weekly averages o f daily figures for weeks ending—
1979
1979
Factors
Feb.
Mar.
Apr.p
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr. 18»
Apr. 25p
1 Reserve Bank credit outstanding.........
125,953
126,356
127,579
124,911
127,043
125,959
126,417
125,560
128,433
129,448
U.S. government securities i ...........
Bought outright.............................
Held under repurchase agree
ments .......................................
Federal agency securities.................
Bought outright.............................
Held under repurchase agree
ments .......................................
103,335
103,087
105,359
104,707
105,618
105,369
104,111
103,142
106,041
104,905
105,979
105,979
105,732
105,006
104,230
104,230
105,648
105,648
107,267
106,632
248
7,528
7,487
652
7,633
7,468
249
7,515
7,464
969
7,683
7,464
1,136
7,856
7,464
0
7,464
7,464
726
7,622
7,464
0
7,464
7,464
0
7,464
7,464
635
7,610
7,464
41
165
51
219
392
0
158
0
0
146
Acceptances........................................
Loans...................................................
Float....................................................
Other Federal Reserve assets.........
88
973
8,955
5,074
152
999
5,933
6,280
61
897
6,635
6,853
261
882
5,841
6,133
260
1,024
5,455
6,407
0
1,082
5,024
6,410
87
867
5,675
6,434
0
628
6,429
6,810
0
950
7,460
6,911
195
990
6,513
6,874
12 Gold stock..............................................
13 Special Drawing Rights certificate
account............................................
14 Treasury currency outstanding...........
11,553
11,514
11,435
11,540
11,506
11,481
11,478
11,456
11,418
11,418
1,300
11,949
1,300
12,050
1,300
12,161
1,300
12,025
1,300
12,062
1,300
12,076
1,300
12,135
1,300
12,128
1,300
12,167
1,300
12,180
110,951
303
111,764
358
113,367
393
111,970
357
111,888
362
111,747
362
112,349
377
113,332
386
113,976
394
113,492
401
17 Treasury..................................................
18 Foreign.....................................................
19 Other........................................................
3,502
276
867
3,204
276
785
2,623
286
673
2,717
292
717
2,873
279
852
3,102
262
694
2,707
292
690
2,474
268
637
2,072
323
678
3,617
250
649
20 Other Federal Reserve liabilities and
capital..............................................
21 Member bank reserves with Federal
Reserve Banks................................
4,371
4,434
4,340
4,309
4,440
4,611
4,394
4,104
4,302
4,506
30,485
30,399
30,792
29,415
31,217
30,040
30,519
29,243
31,571
31,430
SUPPLYING RESERVE FU N D S
2
3
4
5
6
7
8
9
10
11
ABSORBING RESERVE FUNDS
15 Currency in circulation........................
16 Treasury cash holdings.........................
Deposits, other than member bank
reserves, with Federal Reserve
Banks
End-of-month figures
Wednesday figures
1979
1979
Feb.
Mar.
Apr.p
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr. 18^
Apr. 25^
22 Reserve bank credit outstanding.........
125,778
130,681
131,713
132,654
119,555
126,751
117,607
125,614
130,270
132,447
23
24
25
U.S. government securities1...........
Bought outright.............................
Held under repurchase agree
ments .......................................
Federal agency securities.................
Bought outright.............................
Held under repurchase agree
ments .......................................
103,486
103,486
110,940
109,260
108,588
107,287
106,492
103,803
97,142
97,142
104,705
104,705
95,822
95,822
103,225
103,225
104,465
104,465
108,016
105,821
0
7,487
7,487
1,680
7,832
7,464
1,301
7,613
7,464
2,689
8,354
7,464
0
7,464
7,464
0
7,464
7,464
0
7,464
7,464
0
7,464
7,464
0
7,464
7,464
2,195
8,095
7,464
0
368
149
890
0
0
0
0
0
631
Acceptances........................................
L oans...................................................
Float....................................................
Other Federal Reserve assets.........
0
1,603
8,631
4,571
204
963
4,337
6,405
252
1,255
6,900
7,105
757
1,438
9,408
6,205
0
1,839
6,601
6,509
0
1,498
6,575
6,509
0
721
7,208
6,392
0
476
7,927
6,522
0
3,171
8,152
7,018
575
1,527
7,195
7,039
33 Gold stock..............................................
34 Special Drawing Rights certificate
account............................................
35 Treasury currency outstanding...........
11,544
11,479
11,416
11,532
11,481
11,481
11,476
11,434
11,418
11,418
1,300
12,018
1,300
12,114
1,300
12,205
1,300
12,025
1,300
12,070
1,300
12,085
1,300
12,128
1,300
12,128
1,300
12,177
1,300
12,183
111,334
339
111,988
385
113,182
385
112,265
350
112,020
369
112,228
374
113,029
368
114,088
371
114,177
394
113,671
387
3,443
343
779
5,726
303
708
3,100
388
813
3,318
262
746
2,106
225
677
3,178
271
661
756
244
545
865
225
669
4,868
252
682
4,067
275
692
SUPPLYING RESERVE FUNDS
26
27
28
29
30
31
32
ABSORBING RESERVE FUNDS
36 Currency in circulation........................
37 Treasury cash holdings.........................
D eposits, other than member bank
reserves, with Federal Reserve
Banks
38
39
40
41
Treasury...................................................
Foreign.....................................................
Other........................................................
Other Federal Reserve liabilities and
capital...............................................
42 Member bank reserves with Federal
Reserve Banks................................
4,679
4,750
4,641
4,482
4,304
4,775
3,707
4,215
4,364
4,632
29,723
31,714
34,125
36,088
24,706
30,131
23,862
30,043
30,427
33,623
1 Includes securities loaned—fully guaranteed by U.S. government
N ote. For amounts o f currency and coin held as reserves, see table
securities pledged with Federal Reserve Banks—and excludes (if any)
1.12.
securities sold and scheduled to be bought back under matched salepurchase transactions.
Member Banks
1.12 RESERVES A N D BORROWINGS
Millions of dollars
A5
Member Banks
Monthly averages o f daily figures
Reserve classification
1
All member banks
Reserves
At Federal Reserve Banks..........
3
Total held i ......................................
Large banks in Chicago
Other large banks
20
21
22
23
All other banks
Reserves held......................................
Required..........................................
Excess..............................................
Borrowings2........................................
1979
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.p
27,057
9,351
36,471
36,297
174
28,079
9,512
37,666
37,404
262
28,010
9,605
37,689
37,614
75
28,701
9,654
38,434
38,222
212
29,853
9,794
39,728
39,423
305
31,158
10,330
41,572
41,447
125
31,935
11,093
43,167
42,865
302
30,485
10,074
40,703
40,494
209
30,399
9,776
40,316
40,059
257
30,792
9,741
40,661
40,549
112
558
54
1,147
188
1,068
191
1,261
221
722
185
874
134
994
112
973
114
999
121
897
133
6,244
6,279
-3 5
48
6,334
6,290
44
58
6,182
6,251
-6 9
78
6,428
6,349
79
157
6,682
6,658
24
48
7,120
7,243
-1 2 3
99
7,808
7,690
118
117
6,995
6,976
19
6,892
6,845
47
45
6,821
6,837
-1 6
61
1,593
1,613
-2 0
26
1,648
1,646
2
3
1,655
1,650
5
35
1,672
1,649
23
14
1,791
1,765
26
4
1,907
1,900
7
10
2,011
2,010
1
23
1,824
1,823
1
10
1,822
1,809
13
26
1,776
1,824
-4 8
16
13,993
13,931
62
243
14,502
14,423
79
417
14,564
14,541
23
363
14,862
14,867
-5
408
15,547
15,447
100
194
16,446
16,342
104
276
16,942
16,923
19
269
16,055
16,018
37
275
15,844
15,802
42
215
15,813
16,013
-2 0 0
268
14,641
14,474
167
241
15,182
15,045
137
669
15,288
15,172
116
592
15,472
15,357
115
682
15,708
15,553
155
476
16,099
15,962
137
489
16,406
16,242
164
585
15,829
15,677
152
688
15,758
15,603
155
713
15,943
15,875
68
552
Borrowings at Federal Reserve
Banks2
Large banks in New York City
1978
1977
Weekly averages o f daily figures for weeks ending—
1979
AH member banks
Reserves
At Federal Reserve Banks..........
Currency and coin.........................
Total held1......................................
Required......................................
Excess1........................................
Borrowings at Federal Reserve
Banks2
29
Total
..........................................
30
Seasonal..........................................
24
25
26
27
28
31
Large banks in New York City
Reserves held......................................
33
Excess..............................................
35
36
Large banks in Chicago
Reserves held......................................
Required..........................................
39
Other large banks
Reserves held......................................
43
All other banks
Reserves held......................................
Feb. 21
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr. 18*
Apr. 25*
31,414
9,321
40,878
40,521
357
29,846
9,737
39,726
39,637
89
30,434
9,818
40,394
40,190
204
29,415
10,394
39,950
39,849
101
31,217
9,133
40,491
40,345
146
30,040
9,760
39,941
39,858
83
30,519
9,776
40,430
40,042
388
29,243
10,071
39,448
39,292
156
31,571
9,655
41,351
41,140
211
31,430
9,317
40,872
40,716
156
938
123
1,083
123
1,027
108
882
109
1,024
123
1,082
134
867
130
628
119
950
126
990
143
7,126
7,051
75
6,441
6,497
-5 6
6,844
6,849
-5
70
6,887
6,871
16
36
7,014
6,962
52
40
6,617
6,648
-3 1
55
7,035
6,959
76
0
6,597
6,601
-4
0
7,226
7,130
96
175
6,562
6,710
-1 4 8
11
1,832
1,827
5
2
1,741
1,735
6
4
1,808
1,805
3
43
1,804
1,815
-1 1
2
1,847
1,836
11
69
1,779
1,783
-4
0
1,819
1,804
15
0
1,768
1,778
-1 0
0
1,954
1,977
-2 3
69
1,688
1,732
-4 4
0
16,102
16,006
96
196
15,737
15,736
1
309
15,992
15,948
44
267
15,672
15,688
-1 6
247
15,863
15,902
-3 9
151
15,740
15,730
10
213
15,795
15,660
135
164
15,459
15,474
-1 5
199
15,702
16,241
-5 3 9
241
16,197
16,118
79
381
15,818
15,637
181
740
15,807
15,669
138
770
15,750
15,588
162
647
15,587
15,475
112
597
15,767
15,645
122
764
15,805
15,697
108
814
15,781
15,619
162
703
15,624
15,439
185
429
15,894
15,792
102
465
16,210
16,156
54
598
i Adjusted to include waivers o f penalties for reserve deficiencies in
accordance with board policy, effective Nov. 19, 1975, o f permitting
transitional relief on a graduated basis over a 24-month period when a
nonmember bank merges into an existing member bank, or when a
nonmember bank joins the Federal Reserve System. For weeks for which
figures are preliminary, figures by class o f bank do not add to total
because adjusted data by class are not available,
2 Based on closing figures.
A6
Domestic Financial Statistics □ M a y 1979
1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks
Millions o f dollars, except as noted
1979, week ending Wednesday
Type
Mar. 7
Feb. 28
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr. 18
Apr. 25
Total, 46 banks
Basic reserve p9 sition
1 Excess reserves1......................... ............
L ess:
2
Borrowings at Federal Reserve
Banks............................................
3
N et interbank federal funds
4
5
Equals: Net surplus, or deficit ( —)
Amount................................................
Percent o f average required reserves.
Interbank federal funds transactions
Gross transactions
7
Sales.......................................................
8 Two-way transactions2 .........................
Net transactions
9
Purchases o f net buying banks........
10
Sales o f net selling banks.................
Related transactions with U .S.
government securities dealers
11 Loans to dealers 3....................................
12 Borrowing from dealers4 ......................
13 Net loans..................................................
1
14
23
—182
136
80
60
48
307
169
75
186
78
135
73
26
25
15,586
17,468
18,228
15,340
14,936
16,732
22,233
21,461
18,974
-1 5 ,6 6 0
9 3.8
-1 7 ,6 4 1
102.3
-1 8 ,2 8 3
106.9
-1 5 ,4 7 4
89.2
-1 5 ,1 9 1
89.8
-1 6 ,6 2 2
9 6 .6
-2 2 ,1 7 9
132.7
-2 1 ,7 0 7
121.3
-1 9 ,0 9 5
111.6
22,337
6,751
5,799
24,736
7,268
5,952
25,264
7,036
5,564
23,226
7,887
5,727
22,687
7,751
5,702
24,440
7,707
6,147
28,231
5,997
5,643
27,904
6,443
5,976
25,501
6,527
4,993
16,538
952
18,784
1,316
19,700
1,472
17,499
2,159
16,985
2,050
18,293
1,561
22,588
354
21,929
467
20,509
1,534
4,654
1,516
3,138
3,899
1,077
2,822
3,723
1,486
2,237
3,557
2,097
1,461
3,242
1,284
1,958
4,182
1,700
2,482
5,657
1,402
4,257
4,186
1,498
2,688
3,578
1,978
1,600
65
40
52
-5
8 banks in New York City
Basic reserve position
14 Excess reserves1......................................
L ess:
15
Borrowings at Federal Reserve
Banks............................................
16
Net interbank federal funds
transactions..................................
Equals : Net surplus, or deficit ( —)
17
A m ount.................................................
18
Percent o f average required reserves.
19
Interbank federal funds transactions
Gross transactions
Purchases..............................................
21 Two-way transactions2 .........................
N et transactions
22
Purchases o f net buying banks........
23
Sales o f net selling banks.................
Related transactions with U.S.
government securities dealers
24 Loans to dealers3....................................
-5
-1 2
3
40
70
36
33
55
172
11
2,227
4,002
4,566
2,768
3,056
3,987
6,274
5,344
5,090
- 2 ,2 3 2
3 7.9
- 4 ,0 8 4
6 5 .7
-4 ,6 0 0
73.9
-2 ,7 6 0
43.8
3,123
51.9
- 3 ,9 2 3
62.0
- 6 ,2 3 4
104.2
-5 ,4 6 3
84.9
-5 ,1 0 5
84.4
3,616
1,389
1,262
5,064
1,062
1,062
5,574
1,008
1,008
4,613
1,845
1,295
4,456
1,399
1,399
5,057
1,070
1,070
7,086
812
812
6,653
1,309
1,310
6,071
981
981
2,354
128
4,002
4,566
3,317
549
3,056
3,987
6,274
5,344
5,090
2,855
444
2,411
2,146
516
1,631
2,126
561
1,566
1,806
801
1,005
1,415
677
738
2,159
606
1,553
3,179
589
2,590
1,872
539
1,333
1,753
678
1,076
40
8
53
-1 2
38 banks outside New York City
Basic reserve position
L ess:
Borrowings at Federal Reserve
Banks............................................
29
Net interbank federal funds
6
26
21
-3 9
-1 7 0
71
28
30
31
Equals : Net surplus, or deficit ( —)
A m ount................................................
Percent o f average required reserves.
Interbank federal funds transactions
Gross transactions
34 Two-way transactions2 .........................
N et transactions
35
Purchases o f net buying banks........
36
Sales o f net selling banks.................
Related transactions with U .S.
government securities dealers
37 Loans to dealers3....................................
For notes seeend of table.
75
116
42
102
18
26
25
135
159
13,359
13,466
13,663
12,572
11,880
12,745
15,960
16,117
13,884
-1 3 ,4 2 7
124.2
-1 3 ,5 5 7
122.9
-1 3 ,6 8 4
125.9
-1 2 ,7 1 4
115.2
-1 2 ,0 6 8
110.8
-1 2 ,7 0 0
116.8
-1 5 ,9 4 5
148.6
-1 6 ,2 4 5
141.8
-1 3 ,9 9 0
126.4
18,721
5,362
4,537
19,672
6,206
4,890
19,690
6,028
4,556
18,614
6,042
4,432
18,231
6,352
4,302
19,383
6,638
5,077
21,145
5,185
4,831
21,251
5,134
4,667
19,431
5,546
4,012
14,184
825
14,782
1,316
15,134
1,472
14,182
1,610
13,929
2,050
14,306
1,561
16,314
354
16,584
467
15,419
1,534
1,799
1,072
727
1,753
561
1,192
1,597
925
671
1,751
1,296
456
1,826
607
1,219
2,023
1,094
929
2,480
813
1,667
2,314
959
1,355
1,825
1,301
524
Federal Funds
A7
1.13 Continued
1979, week ending Wednesday
Type
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr. 18
Apr. 25
5 banks in City o f Chicago
Basic reserve position
40 Excess reserves1......................................
Less:
41
Borrowings at Federal Reserve
Banks............................................
42
Net interbank federal funds
transactions.................................
5,258
5,617
5,629
5,262
4,947
5,501
6,210
7,073
5,926
Equals: Net surplus, or deficit
43
Amount.................................................
44
Percent o f average required reserves.
-5,251
324.6
-5 ,6 5 5
335.9
-5 ,6 3 6
332.7
-5 ,3 2 9
310.3
-4 ,9 5 0
297.2
-5,491
325.4
-6,210
-7 ,1 3 0
383.9
-5 ,9 2 6
366.8
6,756
1,498
1,470
7,096
1.478
1.478
6,921
1,293
1,281
6,776
1,514
1,496
6,349
1,402
1,356
6,711
7,407
1,197
1,170
6,711
1,188
1,211
1,188
7,124
1,198
1,167
5,286
28
5,617
5,640
11
5,280
18
4,994
47
5,524
23
6,237
27
5,524
23
5,957
31
364
81
283
553
368
135
233
474
226
247
586
54
532
608
26
583
647
608
26
583
387
15
327
62
39
45
46
47
48
49
Interbank federal funds transactions
Gross transactions
Purchases..............................................
S a le s ...................................................
Two-way transactions2 .........................
Net transactions
Purchases o f net buying banks____
Sales o f net selling banks.................
Related transactions with U.S.
government securities dealers
50 Loans to dealers 3.............................
51 Borrowing from dealers4 ...............
52 Net loans............................................
10
43
8
545
69
64
1,211
373.6
2
645
33 other banks
Basic reserve position
53 Excess reserves1................................
Less:
54
Borrowings at Federal Reserve
Banks..................................
55
Net interbank federal funds
transactions...........................
56
57
Equals: Net surplus, or deficit ( —)
A m o u n t...........................................
Percent o f average required reserves
Interbank federal funds transactions
Gross transactions
58
Purchases............................................
59
Sales.....................................................
60 Two-way transactions2 .......................
Net transactions
61
Purchases o f net buying banks----62
Sales o f net selling banks...............
Related transactions with U.S.
government securities dealers
63 Loans to dealers 3.............................
64 Borrowing from dealers4 ................
65 Net loans............................................
21
28
-167
53
75
74
42
34
18
26
25
71
159
8,101
7,849
8,034
7,310
6,933
7,245
9,749
9,044
7,959
-8 ,1 7 7
88.9
-7 ,9 0 2
84.6
-8,048
87.7
-7 ,3 8 5
79.3
-7 ,1 1 8
77.2
-7 ,2 0 9
78.5
-9,735
107.4
-9 ,1 1 4
95.0
-8 ,0 6 4
85.4
11,965
3,864
3,067
12,576
A,121
3,411
12,769
4,735
3,275
11,838
4,528
2,936
11,882
4,949
2,947
12,672
5,427
3,889
13,737
3,988
3,661
12,672
5,427
3,889
12,307
4,348
2,846
8,898
797
9,165
1,316
9,495
1,461
8,902
1,591
8,935
2,003
8,782
1,538
10,077
327
8,782
1,538
9,461
1,502
1,435
992
444
1,201
1,229
790
438
1,278
1,069
209
1,241
553
687
1,415
1,068
347
1,833
811
1,415
1,068
347
1,438
1,286
553
647
1 Based on reserve balances, including adjustments to include waivers
o f penalities for reserve deficiencies in accordance with changes in policy
o f 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.
-4 1
1.022
152
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. government or other securities.
N ote. Weekly averages o f daily figures. For description o f series, see
August 1964 B u lle tin , pp. 944-53. Back data for 46 banks appear in
the board’s Annual Statistical Digest, 1971-1975, table 3.
A8
Domestic Financial Statistics □ M a y 1979
1 14 FEDER AL RESERVE BANK INTEREST RATES
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
Rate on
4/30/79
Effective
date
Previous
rate
9%
9%
9%
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
m
9%
9%
9%
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
B oston...........
New York. . .
Philadelphia..
Cleveland----Richmond. . .
Atlanta...........
Chicago.........
St. Louis........
M inneapolis..
Kansas C ity..
D allas............
San Francisco
9%
9%
9%
91/z
9%
9%
8%
8%
8%
8%
8%
8i/i
8%
8%
8i/i
8%
8%
Rate on
4/30/79
10
10
10
10
10
10
10
10
10
10
10
10
Effective
date
Special rate 3
Previous
rate
Rate on
4/30/79
Effective
date
Previous
rate
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
9%
9%
9%
9%
9%
9%
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
9%
9%
9%
9%
9%
9%
10%
10%
10*i
10%
10%
10%
10%
10%
10%
10%
10%
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
.10*4
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
Rate on
4/30/79
Effective
date
12%
12%
12%
12%
12%
12%
12%
12%
12%
12%
12%
12%
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
Previous
rate
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N .Y .
1976—Jan.
19...................
23...................
Nov. 22...................
26...................
5% -6
5%
5%-5%
5%
5%
5%
5%
5%
1977—Aug. 30...................
31...................
Sept. 2 ...................
Oct. 26...................
5 %-5 %
5%-534
5%
6
5%
534
534
6
1978—Jan.
6-6%
6%
6%-7
7
7-7%
7%
734
8
8-8%
8%
8%-9%
9%
6%
6%
7
7
7%
7%
734
8
8%
8%
9%
9%
9%
9%
Range o f rates in recent years5
Effective date
In effect Dec. 31, 1970,
Range
or level)—
All F.R.
Banks
F.R.
Bank
of
N .Y .
5%
5%
8 .............
15.............
19.............
22.............
29.............
Feb. 13.............
19.............
July 16..........
2 3
N ov 11.............
19.............
Dec. 13.............
17.............
2 4
51/4-5%
5%
5-5%
5-5%
5
43/4-5
4Va
4%_5
5
434-5
43Va
4%-4%
4%-4%
4%
5%
5%
5%
5
5
5
43Va
5
5
5
43Va
43Va
4%
4%
1973—Jan. 15...........
Feb. 26........
Mar. 2 ...........
Apr. 23...........
5
5-5%
5%
5%-5%
5
5%
5%
5%
1971 _ j a n .
Effective date
4 ...................
11...................
18...................
June 11...................
15...................
July 2 ...................
Aug. 14...................
23...................
1973—May
F.R.
Bank
of
N.Y.
5%
2*
53^-6
6-6%
6%
7
7-7%
7%
1974—Apr. 25...................
30...................
Dec. 9 ...................
16...................
7%-8
1975—Jan.
IVa-IVa
IVa-IVa
7 Va
8
73/4
7%-8
6 ...................
10...................
24...................
Feb. 5 ...................
7 ...................
Mar. 10...................
14...................
May 16...................
23...................
1 Discounts o f eligible paper and advances secured by such paper or by
U.S. government obligations or any other obligations eligible for Federal
Reserve Bank purchase.
2 Advances secured to the satisfaction o f the Federal Reserve 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.
Range
(or level)—
All F.R.
Banks
63/4-71/4
63Va
6M-6K
6i/4
6-6%
6
6
6%
6%
k
7Va
m
73Va
7i/a
IVa
63Va
63Va
6i/a
6!Va
6
6
Effective date
9 ...................
20 ...................
May 11...................
12...................
July 3...................
10...................
Aug. 2 1 ...................
Sept. 2 2 ...................
Oct. 16...................
20...................
N ov. 1...................
3...................
In effect Apr. 30, 1979. ..
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. government 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, 1972-76, and
1973-77.
Policy Instruments
A9
1.15 MEMBER BA N K RESERVE R EQ UIREM EN TS1
Percent of deposits
Requirements in effect
April 30, 1979
Type o f deposit, and deposit interval
in millions o f dollars
Previous requirements
Percent
Effective date
Percent
Effective date
7
m
11 Va
12?!*
161/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
m
10
12
13
16^
2/13/75
2/13/75
2/13/75
2/13/75
2/13/75
3
3/16/67
3 Vi
3/2/67
Net demand2
10-100.....................................................................................................
100-400...................................................................................................
Over 4 00..................................................................................................
Time and savings2*3.4
Savings........ ...........................................................................................
Time 5.......................................................................................................
0-5 by maturity
Over 5, by maturity
30-179 days....................................................................................
3
2%
1
3/16/67
1/8/76
10/30/75
m
3
3
3/2/67
3/16/67
3/16/67
6
12/12/74
1/8/76
10/30/75
5
3
3
10/1/70
12/12/74
12/12/74
'A
1
2
4 years or m ore.............................................................................
Legal limits
Net demand
Reserve city banks................................................................................
Other banks...................................................................... ....................
Borrowings from foreign banks.............................................................
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 Federal Reserve Banks or branches are also
reserve cities. Any banks having net demand deposits o f $400 million or
less are considered to have the character o f business o f banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the board’s Regulation D.
(c) Effective August 24, 1978, the Regulation M reserve requirements
Minimum
Maximum
10
7
3
0
22
14
10
22
on net balances due from domestic banks to their foreign branches and
on deposits that foreign branches lend to U.S. residents were reduced to
zero from 4 percent and 1 percent, respectively. The Regulation D reserve
requirement on borrowings from unrelated banks abroad was also reduced
to zero from 4 percent.
(d) EflFective with the reserve computation period beginning Nov. 16,
1978, domestic deposits o f Edge Corporations are subject to the same
reserve requirements as deposits o f member banks.
3 Negotiable order 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 reserve requirement on savings and other time deposits
must be at least 3 percent, the minimum specified by law.
5 Effective November 2, 1978, a supplementary reserve requirement of
2 percent was imposed on time deposits o f $100,000 or more, obligations
o f affiliates, and ineligible acceptances.
N ote. Required reserves must be held in the form of deposits with
Federal Reserve Banks or vault cash.
A10
Domestic Financial Statistics □ M a y 1979
1.16 M AXIM UM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Commercial banks
Type and maturity o f deposit
In effect Apr. 30, 1979
Percent
1 Savings...........................................................
Negotiable order o f withdrawal
accounts1...........................................
3
Money market time deposits o f less
than $100,0002..................................
2
90 days to 1 year
Multiple-maturity................................
Single-maturity.....................................
8
9
10
2 to 2Yi years4........ ............................... .
11
12
13
14
7
7/1/73
4*4
1/1/74
(10)
(9)
(9)
(9)
7/1/73
41/4
15
7/1/73
6
6%
7/1/73
7/1/73
4 to 6 years5.............................................
6 to 8 years 5............................................
8 years or more5 ....................................
7Va
7V4
m
11/1/73
12/23/74
6/1/78
Issued to governmental units (all
maturities).......................................
Individual retirement accounts and
Keogh (H.R. 10) plans6...............
8
8
6/1/78
1 to 2 years4............ .................................
6/1/78
1 For authorized states only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks in Massachusetts and New Hampshire were first permitted to offer
negotiable order o f withdrawal (NOW) accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institutions
throughout New England on Feb. 27, 1976, and in New York State on
Nov. 10, 1978.
2 Must have a maturity o f exactly 26 weeks and a minimum denomina
tion o f $10,000, and must be nonnegotiable.
3 For exceptions with respect to certain foreign time deposits see the
F e d e ra l R eserve B u lle tin for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
4 A minimum o f $ 1,000 is requi red 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.
5 $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.
6 3-year minimum maturity.
7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan associations.
9 Commercial banks, savings and loan associations, and mutual savings
banks were authorized to offer money market time deposits effective
June 1, 1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. Until March 15,
1979, the ceiling rate for savings and loan associations and mutual savings
banks was V4 percentage point higher than the rate for commercial banks.
Percent
5
5 Vi
2 y 2 to 4 years4.........................................
Previous maximum
5
Time (multiple- and single-maturity
unless otherwise indicated)3
30-89 days
4
Multiple-maturity................................
5
Single-maturity.....................................
6
Effective
date
Savings and loan associations and
mutual savings banks
5
5%
5V4
5*A
(")
7%
(10)
m
m
Effective
date
1/21/70
(9)
In effect Apr. 30, 1979
Percent
Effective
date
Previous maximum
Percent
5%
(7)
5
5
1/1/74
(10)
(9)
(9)
(9)
1/21/70
9/26/66
(10)
7/20/66
9/26/66
4 5V4
(7)
1/21/70
1/21/70
1/21/70
6V4
( 7)
(7)
11/1/73
m
m
8
12/23/74
8
6/1/78
7/6/77
8
6/1/78
6 y4
Effective
date
(8)
(9)
(10)
11/1/73
12/23/74
6/1/78
{
5%
1/21/70
I*
6
1/21/70
1/21/70
1/21/70
(“ )
m
(10)
11/1/73
m
m
12/23/74
7/6/77
Beginning March 15, 1979, the V4 percentage point interest differential
is removed when the 6-month Treasury bill rate is 9 percent or more.
The full differential is in effect when the 6-month bill rate is 8% percent
or less. Thrift institutions may pay a maximum 9 percent when the 6-month
bill rate is between 8% and 9 percent. Also effective March 15, 1979,
interest compounding was prohibited on money market time deposits
at all offering institutions. For both commercial banks and thrift institu
tions, the maximum allowable rates in April were as follows: April 5,
9.496; April 12, 9.572; April 19, 9.627; April 26, 9.295.
10 No separate account category.
11 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 percent o f its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6Vi percent ceiling on time deposits maturing in 2Vi
years or more.
Effective Nov. 1, 1973, ceilings were reimposed 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.
N ote. 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 o f $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 F e d e ra l R eserve B u lle tin ,
the Federal Home Loan Bank Board Journal, and the Annual Report
o f the Federal Deposit Insurance Corporation.
Policy Instruments
A ll
1.17 FEDER AL RESERVE OPEN M A R K E T TRANSACTIONS
Millions of dollars
Type o f transaction
1976
1977
1978
1978
1979
Sept.
Oct.
Nov.
Dec.
16,628
13,725
2,033
2,635
0
0
1,978
2,148
0
2,039
3,587
603
0
2,751
0
0
3,758
500
0
228
400
2,012
475
400
1,184
3,017
0
0
4,499 - 5 ,1 7 0
2,500
0
168
0
563
0
73
0
-3 8 5
0
139
0
-7 7 8
0
0
0
705
0
0
0
-6 7 3
0
48
0
-3 0
0
2,600
0
724
0
0
0
673
426
0
2,205
0
0
-7 2 4
Jan.
Feb.
Mar.
U.S. GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
Treasury bills
1 Gross purchases........................................................
2 Gross sales.................................................................
3 Redemptions..............................................................
14,343
8,462
2 5,017
Others within 1 year1
Gross purchases........................................................
Gross sales.................................................................
Exchange, or maturity shift...................................
Redemptions.............................................................
472
0
792
0
1 to 5 years
8 Gross purchases........................................................
9 Gross sales.................................................................
10 Exchange, or maturity shift....................................
2 3,202
177
-2 ,5 8 8
2,833
0
-6 ,6 4 9
4,188
0
-1 7 8
350
0
-5 6 3
507
0
385
628
0
-6 5 7
0
0
-7 0 5
5 to 10 years
11 Gross purchases........................................................
12 Gross sales.................................................................
13 Exchange, or maturity shift....................................
1,048
0
1,572
758
0
584
1,526
0
2,803
110
0
0
87
0
0
163
0
835
0
0
0
134
0
0
0
0 - 2 ,9 7 5
0
0
0
Over 10 years
14 Gross purchases........................................................
15 Gross sales.................................................................
16 Exchange, or maturity shift....................................
642
0
225
553
0
1,565
1,063
0
2,545
122
0
0
139
0
0
108
0
600
0
0
0
0
0
0
93
0
800
0
0
0
All maturities1
17 Gross purchases........................................................ 219,707
8,639
18 Gross sales.................................................................
25,017
19 Redemptions.............................................................
20,898
7,241
4,636
24,591
13,725
2,033
3,386
0
0
2,785
2,148
0
3,075
3,587
603
0
2,751
0
0
3,758
500
700
228
400
4,612
475
400
Matched sale-purchase transactions
20 Gross sales..................................................................
21 Gross purchases........................................................
196,078 425,214 511,126
196,579 423,841 510,854
33,346
33,130
35,112
36,106
40,785
40,546
52,661
51,586
64,691 56,291
60,750 58,426
61,669
63,707
Repurchase agreements
22 Gross purchases........................................................
23 Gross sales.................................................................
232,891
230,355
178,683
180,535
151,618
152,436
10,724
10,353
18,976
20,565
7,719
8,383
8,133
7,049
3,117
4,201
6,931
6,931
11,817
10,137
24 Net change in U.S. government securities.........
9,087
5,798
7,743
3,540
43
- 2 ,0 1 7
- 2 ,7 4 3
-9 ,2 8 3
2,207
7,454
4
5
6
7
13,738
7,241
2,136
FEDERAL AGENCY OBLIGATIONS
Outright transactions
25 Gross purchases........................................................
26 Gross sales.................................................................
27 Redemptions.............................................................
Repurchase agreements
28 Gross purchases........................................................
29 Gross sales.................................................................
891
0
169
1,433
0
223
301
173
235
0
0
28
0
0
12
0
0
39
0
0
3
0
379
10
0
20
*
0
0
23
10,520
10,360
13,811
13,638
40,567
40,885
3,877
3,348
6,675
7,196
2,544
2,670
4,307
4,174
713
846
1,152
1,152
2,851
2,482
30 Net change in federal agency obligations..........
882
1,383
-4 2 6
501
-5 3 3
-1 6 5
130
-5 2 2
-2 0
345
31 Outright transactions, n et......................................
32 Repurchase agreements, net..................................
-5 4 5
410
-1 9 6
159
0
-3 6 6
0
419
0
-4 7 9
0
-2 3 6
0
587
0
-5 8 7
0
0
0
204
33 Net change in bankers acceptances......................
-1 3 5
-3 7
-366
419
-4 7 9
-2 3 6
587
-5 8 7
0
204
34 Total net change in System Open Market
Account...............................................................
9,833
7,143
6,951
4,460
-9 6 9
-2 ,4 1 9
-2 ,0 2 6
-1 0 ,3 9 2
2,187
8,003
BANKERS ACCEPTANCES
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; Mar. 1979, 2,600.
2 In 1975, the System obtained $421 million o f 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction
amounting to $189 million. Acquisition o f these notes is treated as a
purchase; the run-off o f bills, as a redemption.
N ote. 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 □ M a y 1979
1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements
Millions o f dollars
Account
Mar. 28
Apr. 4
Wednesday
End o f month
1979
1979
Apr. 11
Apr. 18?
Apr. 25*
Feb.
Mar.
Apr.P
Consolidated condition statement
ASSETS
1 Gold certificate account............................................
2 Special Drawing Rights certificate account..........
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Loans
Member bank borrowings........................................
Acceptances
Federal agency obligations
Held under repurchase agreements.........................
U .S. government securities
Bought outright
Bills............................................................................
17
18
Total loans and securities..........................................
19
20
11,481
1,300
11,476
1,300
11,434
1,300
11,418
1,300
11,418
1,300
11,544
1,300
11,479
1,300
11,416
1,300
380
385
377
381
393
344
395
405
1,498
0
721
0
476
0
3,171
0
1,527
0
1,603
0
963
0
1,255
0
0
0
0
0
0
0
0
0
0
575
0
0
0
204
0
252
7,464
0
7,464
0
7,464
0
7,464
0
7,464
631
7,487
0
7,464
368
7,464
149
36,686
0
0
54,662
13,357
104,705
0
28,442
0
0
54,023
13,357
95,822
0
35,206
0
0
54,662
13,357
103,225
0
36,446
0
0
54,662
13,357
104,465
0
37,802
0
0
54,662
13,357
105,821
2,195
35,467
0
0
54,662
13,357
103,486
0
38,641
2,600
0
54,662
13,357
109,260
1,680
39,268
0
0
54,662
13,357
107,287
1,301
104,705
95,822
103,225
104,465
108,016
103,486
110,940
108,588
113,667
104,007
111,165
115,100
118,213
112,576
119,939
117,708
12,594
396
14,183
396
14,785
395
16,419
397
14,240
397
15,229
395
10,271
396
12,805
397
3,774
2,339
3,777
2,219
3,812
2,315
3,814
2,807
3,814
2,828
2,266
1,910
3,754
2,255
3,745
2,963
145,931
137,743
145,583
151,636
152,603
145,564
149,789
150,739
Other assets
21
22
23
LIABILITIES
100,896
101,654
102,708
102,776
102,269
99,999
100,654
101,767
25
26
27
28
30,131
3,178
271
661
23,862
756
244
545
30,043
865
225
669
30,427
4,868
252
682
33,623
4,067
275
692
29,723
3,443
343
779
31,714
5,726
303
708
34,125
3,100
388
813
29
34,241
25,407
31,802
36,229
38,657
34,288
38,451
38,426
30
31
6,019
1,902
6,975
1,384
6,858
1,714
8,267
1,692
7,045
1,783
6,598
1,859
5,934
1,795
5,905
1,663
143,058
135,420
143,082
148,964
149,754
142,744
146,834
147,761
1,110
1,078
685
1,112
1,078
133
1,113
1,078
310
1,113
1,078
481
1,116
1,078
655
1,088
1,078
654
1,113
1,078
764
1,117
1,078
783
145,931
137,743
145,583
151,636
152,603
145,564
149,789
150,739
90,623
86,900
86,412
85,999
85,957
94,611
89,184
84,423
Deposits
Other liabilities and accrued dividends 3................
32
CAPITAL ACCOUNTS
33
34
35
36
37
M emo: Marketable U.S. government securities
held in custody for foreign and international
Federal Reserve note statement
38
39
40
41
42
Federal Reserve notes outstanding (issued to
Bank).....................................................................
Collateral held against notes outstanding
Gold certificate account.............................................
Special Drawing Rights certificate account..........
Eligible paper..............................................................
43
114,098
114,432
114,435
114,957
115,490
113,160
114,135
115,604
11,481
1,300
1,225
100.092
11,476
1,300
647
101,009
11,434
1,300
414
101,287
11,418
1,300
2,512
99,727
11,418
1,300
1,117
101,655
11,544
1,300
1,424
98,892
11,479
1,300
845
100,511
11,416
1,300
986
101,902
114,098
114,432
114,435
114,957
115,490
113,160
114,135
115,604
1 Includes securities loaned—fully guaranteed by U.S. government
securities pledged with Federal Reserve Banks—and excludes (if any)
securities sold and scheduled to be bought back under matched salepurchase transactions.
2 Beginning December 29, 1978, such assets are revalued monthly
at market exchange rates.
3 includes exchange-translation account reflecting, beginning December
29, 1978, the monthly revaluation at market exchange rates of foreignexchange commitments.
Reserve Banks
1.19 FED ER AL RESERVE BANKS
Millions of dollars
A13
Maturity Distribution of Loan and Security Holdings
Type and maturity
Mar. 28
Apr. 4
Wednesday
End of month
1979
1979
Apr. 11
Apr. 18
Apr. 25
Feb. 28
Mar. 31
Apr. 30
1,495
1,463
32
0
721
664
57
0
476
412
64
0
3,171
3,140
31
0
1,527
1,492
35
0
1,604
1,577
27
0
964
905
59
0
1,255
1,211
44
0
Acceptances....................................................................
Within 15 days...............................................................
16 days to 90 days........................................................
91 days to 1 year...........................................................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
575
575
0
0
0
0
0
0
204
204
0
0
252
252
0
0
9 U.S. government securities..........................................
10 Within 15 days*.............................................................
11 16 days to 90 days........................................................
104,705
4,998
16,550
25,506
34,208
11,875
11,568
95,822
4,384
8,645
25,866
33,484
11,875
11,568
103,225
4,105
14,776
26,777
34,124
11,875
11,568
104,465
4,214
15,494
27,190
34,124
11,875
11,568
108,016
5,534
18,444
26,471
34,124
11,875
11,568
103,486
3,084
16,546
25,864
34,549
11,875
11,568
110,940
7,663
20,031
25,595
34,208
11,875
11,568
108,588
5,284
18,905
27,113
33,843
11,875
11,568
7,464
25
553
994
3,509
1,573
810
7,464
0
611
961
3,509
1,573
810
7,464
55
591
986
3,486
1,536
810
7,464
117
529
986
3,486
1,536
810
8,095
693
604
945
3,507
1,571
775
7,487
114
344
1,098
3,553
1,568
810
7,832
393
553
994
3,509
1,573
810
7,613
211
604
945
3,507
1,571
775
2 Within 15 days...............................................................
3 16 days to 90 days........................................................
5
6
7
8
13 Over 1 year to 5 years.................................................
14 Over 5 years to 10 years..............................................
16 Federal agency obligations..........................................
18 16 days to 90 days........................................................
19 91 days to 1 year...........................................................
20 Over 1 year to 5 years.................................................
22 Over 10 years.................................................................
i
Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity o f the agreements.
1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions o f dollars, turnover as ratio o f debits to deposit. Monthly data are at annual rates.
Bank group, or type
o f customer
1978
1975
1976
1979
1977
Oct.
Nov.
Dec. r
Jan.
Feb.
Debits to demand deposits 2 (seasonally adjusted)
1 All commercial banks................
2 Major New York City banks. .
3 Other banks..................................
25,028.5
9 ,670.7
15,357.8
29,180.4
11,467.2
17,713.2
34,322.8
13,860.6
20,462.2
42,942.5
15,437.8
27,504.7
42,941.5
15,673.6
27,267.9
41,781.8
14,661.8
27,120.0
44,683.3
16,345.5
28,337.8
43,818.6
15,433.7
28,384.9
578.7
76.2
502.6
445.9
55.6
390.3
151.7
584.2
106.3
150.5
565.1
107.5
2 .7
6.9
2.5
2.1
5.3
1.9
Debits to savings deposits 3 (not seasonally adjusted)
4 All customers................................
5 Business 1......................................
6 Others.............................................
174.0
21.7
152.3
467. 6
67.2
400.4
446.0
66.8
379.1
443.1
69.9
373.3
Demand deposit turnover 2 (seasonally adjusted)
7 All commercial banks.................
8 Major New York City banks. .
9 Other banks..................................
105.3
356.9
72.9
116.8
411.6
79.8
129.2
503.0
85.9
144.1
530.1
102.3
145.1
559.8
101.8
139.8
520.4
100.2
Savings deposit turnover 3 (not seasonally adjusted)
10 All customers................................
11 Business 1......................................
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 order o f withdrawal (NOW) accounts and
special club accounts, such as Christmas and vacation clubs.
1.6
4.1
1.5
2.1
5.8
1.9
2 .0
5.8
1.8
2 .0
6.0
1.8
N o te. Historical data—estimated for the period 1970 through June
1977, partly on the basis o f the debits series for 233 SMSAs, which were
available through June 1977—are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551. Debits and turnover data
for savings deposits are not available prior to July 1977.
A14
Domestic Financial Statistics □ M a y 1979
1.21 M ON EY STOCK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures
1975
Dec.
1976
Dec.
1977
Dec.
1978
1978
Dec.
Oct.
Item
Nov.
1979
Dec.
Jan.
Feb.
Mar.
361.5
586.4
876.3
1,500.6
972.9
1,597.3
359.9
582.3
875.4
1,504.1
975.9
1,604.6
358.8
578.9
r8 7 7 .1
1,510.0
979.2
'•1,612.2
359.0
578.1
879.8
1,517.6
978.8
1,616.6
Seasonally adjusted
MEASURES i
1
2
3
4
5
6
M - l...........................................................
M-1 + .......................................................
M -2...........................................................
M -3...........................................................
M -4...........................................................
M -5...........................................................
295.4
456.8
664.8
1,092.4
745.8
1,173.5
313.8
517.2
740.6
1,235.6
803.0
1,298.0
338.7
560.6
809.4
1,374.3
883.1
1,448.0
361.5
586.4
876.3
1,500.6
972.9
1,597.3
361.6
589.7
870.9
1,485.5
959.6
1,574.1
361.0
587.2
874.3
1,493.8
969.7
1,589.2
COMPONENTS
7 Currency..................................................
Commercial bank deposits
8 Demand...................................................
9 Time and savings....................................
10
Savings.................................................
11
Negotiable CDs 2...............................
12
Other tim e..........................................
73.8
80.8
88.6
97.5
95.8
96.6
97.5
98.2
98.9
99.4
221.7
450.3
160.7
81.0
208.6
233.0
489.2
202.1
62.4
224.7
250.1
544.4
219.7
73.7
251.0
264.1
611.4
222.0
96.6
292.8
265.8
597.9
225.2
88.6
284.1
264.4
608.8
223.4
95.4
289.9
264.1
611.4
222.0
96.6
292.8
261.7
616.0
219.6
100.5
295.9
259.9
620.4
111 A
102.1
300.9
259.6
619.7
216.3
99.0
304.4
13 Nonbank thrift institutions 3...............
427.7
495.0
564.9
624.3
614.6
619.5
624.3
628.7
"633.0
637.8
371.6
594.4
882.0
1,503.3
981.6
1,602.9
365.7
587.3
880.1
1,507.2
981.2
1,608.3
352.0
571.5
871.4
rl ,502.5
970.9
1,602.0
353.8
574.1
878.5
1,517.5
976.0
1,615.0
N ot seasonally adjusted
MEASURES i
14
15
16
17
18
19
M - l...........................................................
M -l + .......................................................
M -2...........................................................
M -3.......................................... ................
M -4...........................................................
M -5...........................................................
303.9
463.6
670.0
1,095.0
753.5
1,178.4
322.6
524.2
745.8
1,238.3
810.0
1,302.6
348.2
568.0
814.9
1,377.2
890.8
1,453.2
75.1
82.1
90.1
99.1
95.6
97.2
99.1
97.4
97.6
98.6
228.8
162.8
62.6
449.6
159.1
83.5
207.1
240.5
169.4
67.5
487.4
200.2
64.3
222.9
258.1
177.5
76.2
542.6
217.7
75.9
249.0
272.5
182.9
85.6
609.9
219.9
99.5
290.5
265.8
179.3
82.7
597.6
223.5
90.8
283.3
265.7
178.3
83.7
605.0
221.5
96.4
287.1
272.5
182.9
85.6
609.9
219.9
99.5
290.5
268.3
179.2
84.9
615.5
218.8
101.1
295.6
254.4
169.5
81.0
618.9
216.7
99.6
302.6
255.2
170.3
80.8
622.2
217.5
97.5
307.2
0.7
424.9
1.4
492.5
2.1
562.3
2.9
621.3
2.8
613.4
2.9
616.2
2.9
621.3
2.8
627.1
2.8
631.1
2.8
639.0
4.1
4 .4
5.1
10.2
4.3
8 .0
10.2
12.0
8.3
6.5
371.6
594.4
882.0
1,503.3
981.6
1,602.9
361.4
587.8
868.2
1,481.6
959.0
1,572.4
363.0
587.4
871.6
1,487.8
968.0
1,584.2
COMPONENTS
20 Currency................................... ..............
Commercial bank deposits
21 Demand..................................... ..............
Member...............................................
Domestic nonmember.....................
24 Time and savings....................................
25
Savings.................................................
26
Negotiable C D s2...............................
27
Other tim e..........................................
28 Other checkable deposits4...................
29 Nonbank thrift institutions3...............
30 U.S. government deposits (all
commercial banks).......................
i Composition o f the money stock measures is as follows:
M - l: Averages o f daily figures for (1) demand deposits at commercial
banks other than domestic interbank and U.S. government, less cash items
in process o f collection and Federal Reserve float; (2) foreign demand
balances at Federal Reserve Banks; and (3) currency outside the Treasury,
Federal Reserve Banks, and vaults o f commercial banks.
M-1 + : M -l plus savings deposits at commercial banks, NOW accounts
at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M -l plus savings deposits, time deposits open account, and time
certificates o f deposit (CDs) other than negotiable CDs 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 CDs.
M -5: M-3 plus large negotiable CDs.
2 Negotiable time CDs issued in denominations o f $100,000 or more
by large weekly reporting commercial banks.
3 Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
4 Includes NOW accounts at thrift institutions, credit union share
draft accounts, and demand deposits at mutual savings banks.
N ote. Latest monthly and weekly figures are available from the board’s
(H.6) 508 release. Back data are available from the Banking Section,
Division of Research and Statistics.
NOTES TO TABLE 1.23:
1 Adjusted to exclude domestic commercial interbank loans and
Federal funds sold to domestic commercial banks.
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.
3 As o f Mar. 31, 1976, reclassification o f loans reduced these loans by
about $1.2 billion.
4 As o f Dec. 31, 1977, reclassification o f loans at one large bank
reduced these loans by about $200 million.
5 As o f Dec. 31, 1978, total loans and investments were reduced by
$0.1 billion. Total loans were reduced by $1.6 billion, and “Other invest
ments” were increased by $1.5 billion largely as the result o f reclassifica
tions of certain tax-exempt obligations.
6 As o f Dec. 31, 1978, commercial and industrial loans were reduced by
$0.1 billion as a result of reclassifications.
7 As o f Dec. 31, 1978, commercial and industrial loans sold outright
were increased by $0.7 billion as the result of reclassifications, but $0.1
billion of this amount was offset by a balance sheet reduction of $0.1
billion as noted above.
N o te. Data are for last Wednesday o f month except for June 30 and
December 31 call report data. Data revised beginning July 1978 to reflect
adjustments to preliminary December 31, 1978, Call Report data.
Monetary Aggregates
1.22 A G G R EG A TE RESERVES A N D DEPOSITS
Billions of dollars, averages of daily figures
1975
Dec.
A15
Member Banks
1976
Dec.
1978
1977
Dec.
Aug.
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.
Seasonally adjusted
Reserves1...........................................................................
Nonborrowed...................................................................
Required............................................................................
Monetary base2...............................................................
Deposits subject to reserve requirements 3...................
34.67
34.54
34.40
106.7
504.2
336.8
34.89
34.84
34.61
118.4
528.6
354.1
36.10
35.53
35.91
127.8
568.6
386.7
37.93
36.79
37.77
r135.4
602.7
413.0
38.21
37.15
38.02
136.8
607.0
416.8
38.38
37.10
38.22
137.8
608.9
418.3
39.75
39.05
39.53
r140.0
616.9
427.5
41.27
40.40
41.04
r142.3
616.7
429.4
41.48
40.48
41.26
143.4
621.1
433.5
40.75
39.78
40.54
143.3
619.7
436.1
40.81
39.82
40.66
143.9
616.4
434.1
Demand
7 Private................................................................................
8 U.S. government.............................................................
164.5
2.9
171.5
3.0
178.5
3.5
186.5
3.3
186.2
4 .0
187.2
3.5
187.0
2.3
185.1
2.3
185.6
1.9
181.9
1.8
180.5
1.8
1
2
3
4
5
Not seasonally adjusted
9 Monetary base 2...............................................................
10 Deposits subject to reserve requirements3...................
11 Time and savings.............................................................
Demand
12 Private................................................................................
13 U.S. government.............................................................
108.3
510.9
337.2
120.3
534.8
353.6
129.8
575.3
386.4
135.2
599.2
412.8
136.2
605.9
416.6
137.5
608.4
418.5
140.5
615.1
425.2
144.6
624.0
429.6
144.4
627.1
433.8
141.9
614.3
434.2
142.3
614.3
434.9
170.7
3 1
177.9
3.3
185.1
3.8
183.9
2.5
184.7
4 .6
186.9
3.0
188.0
2 .0
191.9
2.5
191.5
1.9
178.2
1.8
177.5
1.9
1 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.
2 Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier); currency outside the U.S.
Treasury, Federal Reserve Banks and the vaults o f commercial banks;
and vault cash of nonmember banks.
3 Includes total time and savings deposits and net demand deposits as
defined by Reguation D. Private demand deposits include all demand
deposits except those due to the U.S. government, less cash items in
process o f collection and demand balances due from domestic commercial
banks.
N o te. Back data and estimates o f the impact on required reserves
and changes in reserve requirements are shown in table 14 of the board’s
Annual Statistical Digest, 1971-1975.
1.23 LOANS AND INVESTMENTS All Commercial Banks
Billions o f dollars; last Wednesday of month except for June 30 and Dec. 31
1978
Category
1975
Dec. 31
1976
Dec. 31
1979
1977
Dec. 31
Oct. 25^
Nov. 29^ Dec. 31p
Jan. 31^
Feb. 28»
Mar. 28^ Apr. 25p
Seasonally adjusted
1 Loans and investments1........................
2
Including loans sold outright2 . . . .
721.8
726.2
785.1
788.9
870.6
875.5
967.3
971.0
977.6
981.3
5977.7
5981.5
998.6
1,002.2
1,007.7
1,011.3
1,012.6
1,016.2
1 ,024.0
1,027.7
Loans
3 Total1.......................................................
4
Including loans sold outright2. . . .
5 Commercial and industrial.................
6
Including loans sold outright2 . . . .
496.9
501.3
176.2
178.7
538.9
542.7
3179.7
3182.1
617.0
621.9
4201.4
4204.2
700.9
704.8
227.6
229.5
715.1
718.8
230.7
232.6
5715.4
5719.2
6230.9
7233.4
732.4
736.0
237.8
240.3
738.3
741.9
240.6
243.1
743.4
747.0
243.5
246.1
752.9
756.6
247.6
250.2
Investments
7 U.S. Treasury.........................................
8 Other........................................................
80.1
144.8
98.0
148.2
95.6
158.0
96.0
170.4
91.4
171.1
88.8
5173.5
89.4
176.8
92.1
177.3
90.5
178.7
91.8
179.3
N ot seasonally adjusted
9 Loans and investments1........................
10
Including loans sold outright2 . . . .
737.0
741.4
801.6
805.4
888.9
893.8
964.8
968.7
980.4
984.1
5998.2
51,002.0
994.6
998.2
1,000.0
1,003.6
1,009.5
1,013.1
1 ,022.7
1,026.4
Loans
11 Total1.......................................................
12
Including loans sold outright2 . . . .
13 Commercial and industrial.................
14
Including loans sold outright2 . . . .
507.4
511.8
179.3
181.8
550.2
554.0
3182.9
3185.3
629.9
634.8
4205.0
4207.8
700.7
704.6
227.1
229.0
715.5
719.2
230.7
232.6
5730.4
5734.2
6235.1
7237.6
726.0
729.6
235.3
237.8
730.3
733.9
238.6
241.1
737.5
741.1
243.0
245.6
748.0
751.7
248.3
250.9
Investments
15 U.S. Treasury........................................
16 Other........................................................
84.1
145.5
102.5
148.9
100.2
158.8
94.4
169.7
93.7
171.2
93.6
5174.3
92.2
176.4
93.3
176.5
93.9
178.2
94.4
180.4
For notes see bottom of opposite page.
A16
Domestic Financial Statistics □ M a y 1979
1.24 COM M ERCIAL B A N K ASSETS A N D LIABILITIES
Billions of dollars except for number of banks
Last-Wednesday-of-Month Series
1978
June
July^
Aug.*5 Sept.**
1979
Oct.*5
Nov.*’
Dec.^
Jan.*?
Feb.*7 Mar.^
Apr.
All commercial *
986.2
724.3
42.9
454.2
97.9
165.1
453.5
96.3
165.2
459.4
95.2
166.7
738.0
45.1
224.5
468.4
95.6
168.5
Cash assets, total......................................
Currency and coin....................................
Reserves with Federal Reserve Banks.
Balances with depositary institutions..
Cash items in process o f collection----
166.8
29 .6
56.0
69.3
131.8
14.9
23.6
4 6 .0
47.3
140.3
15.2
29.7
45.9
49.6
146.8
15.2
32.6
49.4
49.7
13 Other assets...............................................
63.2
67.3
8
9
10
11
12
Loans and investments.............
Loans, gross.............................
Interbank..............................
Commercial and industrial.
Other......................................
U.S. Treasury securities.........
Other securities........................
985.0
722.1
46.3
1,002.2
979.4
718.0
43.5
1
2
3
4
5
6
7
221.6
12.0
221.0
222.0
68.6
70.5
14 Total assets/total liabilities and capital. 1 ,2 1 5 .0 1 ,1 7 8 .6 1,195.1
1,219.5
1,010.8 1,029.2 1,051.3 1,041.6 1,048.1 1,059.8 1,074.4
746.7
764.3
782.6
773.0
787.7
778.3
799.7
46.0
48.8
56.0
50.2
47.0
48.1
51.7
227.1
230.7
232.8
235.3
238.6
243.0
248.3
473.6
484.8
493.8
490.7
491.6
494.5
499.7
94.4
93.7
92 2
94.0
93.9
93.3
94.4
169.7
171.2
176.4
174.7
178.2
176.5
180.4
148.5
15.1
34.6
47.1
51.7
150.7
16.7
32.6
48.0
53.5
69.9
74.0
77.9
77.3
1,229.2 1,254.0
1,303.9
1,269.5
174.7
17.2
37.7
56.3
63.5
150.5
15.3
29.6
50.8
54.7
158.8
15.1
29.4
54.1
60.2
148.1
15.3
29.9
48.8
54.1
76.1
72.9
70.1
1,283.0 1 ,280.8
1,296.5
152.0
15.7
33.7
50.9
51.7
15 D eposits................
16 Demand................
17 Time and savings.
18
Savings.............
19
Time..................
965.7
374.8
591.0
n.a.
n.a.
931.5
339.0
592.5
n.a.
n.a.
939.8
340.5
599.3
n.a.
n.a.
956.0
351.9
604.1
n.a.
n.a.
957.2
348.7
608.5
n.a.
n.a.
968.1 1,005.8
382.1
349.0
619.1
623.7
n.a.
n.a.
n.a.
n.a.
979.9
350.8
629.1
216.5
412.7
988.2
355.7
632.5
216.6
415.9
979.4
343.1
635.2
218.6
417.7
986.4
353.8
632.7
217.5
415.2
20 Borrowings................................................
106.8
102.6
108.5
112.1
117.8
126.9
136.8
122.3
122.1
125.1
133.8
M emo items :
21 U.S. Treasury note balances included
in borrowing......................................
22 Number o f banks.....................................
14,698
14,709
14,718
14,723
14,712
7.5
14,724
12.4
14,712
11.6
14,701
3.7
14,711
4 .7
14,716
5.7
14,720
Member
699.7
519.6
n.a.
n.a.
67.4
112.7
695.8
517.6
n.a.
n.a.
65.7
112.5
698.9
520.3
n.a.
n.a.
65.3
113.3
706.9
527.0
n.a.
n.a.
65.4
114.5
713.4
533.9
n.a.
n.a.
64.1
115.3
724.3
544.6
n.a.
n.a.
63.5
116.2
739.5
558.3
n.a.
n.a.
63.6
117.6
732.5
549.6
30.3
519.3
62.3
120.4
736.9
553.2
30.6
522.6
63.4
120.2
741.2
555.5
30.7
524.8
64.1
121.5
753.1
565.1
31.1
534.0
64.7
123.2
Cash assets, total......................................
Currency and coin....................................
Reserves with Federal Reserve B anks..
Balances with depositary institutions..
Cash items in process o f collection----
133.8
8 .7
2 9.6
29.1
66.5
104.2
10.8
23.6
24.3
45.4
111.2
11.1
29.7
22.9
47.6
115.4
11.1
32.6
24.0
47.7
118.6
11.1
34.6
23.2
49.7
121.3
12.3
32.6
25.1
51.4
140.2
12.7
37.7
28.6
61.2
119.1
11.2
29.6
25.8
52.5
125.4
11.1
29.4
27.0
57.9
115.5
11.2
29.9
22.3
52.1
119.0
11.5
33.7
24.1
49.7
55.2
57.3
58.4
60.0
59.3
62.9
65.5
65.5
64.2
61.3
58.1
35 Total assets/total liabilities and capital.
888.7
857.3
868.5
882.2
891.2
908.5
945.2
917.1
926.5
918.0
930.1
694.3
282.7
411.5
n.a.
n.a.
666.1
255.0
411.1
n.a.
n.a.
670.6
256.1
414.5
n.a.
n.a.
679.6
262.3
417.2
n.a.
n.a.
682.5
262.6
420.0
n.a.
n.a.
688.6
262.3
426.4
n.a.
n.a.
716.3
286.8
429.5
n.a.
n.a.
696.6
263.5
433.1
146.5
286.6
701.7
267.6
434.1
146.4
287.7
687.9
253.2
434.5
147.7
286.8
691.8
262.0
429.8
147.1
282.7
92.1
88.0
93.9
97.2
101.4
108.1
115.9
102.3
104.0
107.1
115.3
5,622
5,613
5,610
5,593
5,585
6.3
5,586
11.1
5,565
9.3
5,544
3 .0
5,532
3.7
5,531
4 .5
5,532
29
30
31
32
33
M emo items :
42 U.S. Treasury note balances included
1 Figures partly estimated except on call dates.
N o te. Figures include all bank-premises subsidiaries and other signi
ficant 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.
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 1.25 and are included with noninsured banks
in table 1.25: 1977—December, 12; 1979—March, 13.
Commercial Banks
1.25 COM M ERCIAL BA N K ASSETS A N D LIABILITIES
Millions of dollars, except for number of banks
Call-Date Series
1977
1976
1978
1976
June 30
Dec. 31
1977
1978
Account
Dec. 31
June 30
Dec. 31
Total insured
1
Loans
2
3
4
5
6
N et............................. ............................................
Investments
U.S. Treasury securities....................................
Cash assets....................................................................
7
8
Demand
9
10
11
Interbank..............................................................
Other......................................................................
Time and savings
12
13
Other......................................................................
14
15
16
Memo: Number o f banks........................................
17
20
21
22
Dec. 31
June 30
827,696
854,733
914,779
956,431
476,610
488,240
523,000
542,218
578,734
560,077
601,122
581,143
657,509
636,318
695,443
672,207
340,691
329,971
351,311
339,955
384,722
372,702
403,812
390,630
101,461
147,500
129,562
100,568
153,042
130,726
99,333
157,936
159,264
97,001
163,986
157,393
55,727
80,191
76,072
53,345
83,583
74,641
52,244
86,033
92,050
50,519
87,886
90,728
1,003,970 1,040,945 1,129,712 1,172,772
583,304
599,743
651,360
671,166
825,003
847,372
922,657
945,874
469,377
476,381
520,167
526,932
3,022
44,064
285,200
2,817
44,965
284,544
7,310
49,843
319,873
7,956
47,203
312,707
1,676
23,149
163,346
1,632
22,876
161,358
4,172
25,646
181,821
4,483
22,416
176,025
8,248
484,467
7,721
507,324
8,731
536,899
8,987
569,020
4,907
276,296
4,599
285,915
5,730
302,795
5,791
318,215
75,291
72,061
81,137
75,502
89,339
79,082
98,351
83,074
54,421
41,319
57,283
43,142
63,218
44,994
68,948
47,019
14,397
14,425
14,397
14,381
4,735
4,701
4,654
4,616
Insured nonmember
144,000
144,597
152,514
157,464
207,085
221,896
239,265
256,749
102,277
99,474
102,117
99,173
110,243
107,205
115,736
112,470
135,766
130,630
147,694
142,015
162,543
156,411
175,894
169,106
18,849
22,874
32,859
19,296
23,183
35,918
18,179
24,091
42,305
16,886
24,841
43,057
26,884
44,434
20,631
27,926
46,275
20,166
28,909
47,812
24,908
29,595
51,259
23,606
Loans
N et..........................................................................
Investments
U.S. Treasury securities....................................
June 30
National (all insured)
State member (all insured)
18
19
A17
23
189,579
195,452
210,442
217,384
231,086
245,748
267,910
284,221
24
149,491
152,472
163,436
167,403
206,134
218,519
239,053
251,539
429
19,295
52,204
371
20,568
52,570
1,241
22,346
57,605
1,158
23,117
55,550
917
1,619
69,648
813
1,520
70,615
1,896
1,849
80,445
2,315
1,669
81,131
28
29
2,384
75,178
2,134
76,827
2,026
80,216
2,275
85,301
956
132,993
988
144,581
973
153,887
920
165,502
30
31
17,310
13,199
19,697
13,441
21,736
14,182
23,167
14,670
3,559
17,542
4,155
18,919
4,384
19,905
6,235
21,384
1,023
1,019
1,014
1,005
8,639
8,705
8,729
8,760
Demand
25
26
27
32
Interbank..............................................................
Other......................................................................
Time and savings
Memo: Number o f banks.........................................
Noninsured nonmember
Total nonmember
18,819
22,940
24,415
28,699
225,904
244,837
263,681
285,448
16,336
16,209
20,865
20,679
22,686
22,484
26,747
26,548
152,103
146,840
168,559
162,694
185,230
178,896
202,641
195,655
1,054
1,428
6,496
993
1,081
8,330
879
849
9,458
869
1,082
9,360
27,938
45,863
27,127
28,919
47,357
28,497
29,788
48,662
34,367
30,465
52,341
32,967
39
26,790
33,390
36,433
42,279
257,877
279,139
304,343
326,501
40
13,325
14,658
16,844
19,924
219,460
233,177
255,898
271,463
4
1,277
3,236
8
1,504
3,588
10
1,868
4,073
8
2,067
4,814
921
2,896
72,884
822
3,025
74,203
1,907
3,718
84,518
2,323
3,736
85,946
1,041
7,766
1,164
8,392
1,089
9,802
1,203
11,831
1,997
140,760
2,152
152,974
2,063
163,690
2,123
177,334
4,842
818
7,056
893
6,908
917
8,413
962
8,401
18,360
11,212
19,812
11,293
20,823
14,649
22,346
275
293
310
317
8,914
8,998
9,039
9,077
33
34
35
36
37
38
Loans
N et..........................................................................
Investments
U.S. Treasury securities....................................
Demand
41
42
43
Time and savings
44
45
46
47
Total capital accounts..................... ...........................
48
1Includes items not shown separately.
For Note seetable 1.24.
A18
Domestic Financial Statistics □ M a y 1979
1.26
COMMERCIAL BANK ASSETS A N D LIABILITIES
Detailed Balance Sheet, September 30, 1978
Millions o f dollars, except for number o f banks.
IVlember bant:si
Asset account
Insured
commercial
banks
Non
member
banks1
Large banks
Total
New York
City
City of
Chicago
Other
large
All other
1 Cash bank balances, items in process..............................................
2
3
Reserves with Federal Reserve Banks........................................
4
Demand balances with banks in United States.......................
Other balances with banks in United States............................
5
6
Balances with banks in foreign countries..................................
7
Cash items in process o f collection............................................
158,380
12,135
28,043
41,104
4,648
3,295
69,156
134,955
8,866
28,041
25,982
2,582
2,832
66,652
43 .,758
'867
3,621
12,821
601
331
25,516
5,298
180
1,152
543
15
288
3,119
47,914
2,918
12,200
3,672
648
1,507
26,969
37,986
4,901
11,067
8,945
1,319
705
11,049
23,482
3,268
3
15,177
2,066
463
2,504
8 Total securities held—Book value.....................................................
9
U.S. Treasury..................................................................................
10
Other U.S. government agencies................................................
11
States and political subdivisions..................................................
12
All other securities..........................................................................
n
Unclassified total............................................................................
262,199
95,068
40,078
121,260
5,698
94
179,877
65,764
25,457
85,125
3,465
66
20,808
9,524
1,828
9,166
291
7,918
2,690
1,284
3,705
240
58,271
22,051
7,730
27,423
1,048
19
92,881
31,499
14,616
44,831
1,887
47
82,336
29,315
14,622
36,136
2,234
28
14
15
16
17
18
19
Trading-account securities.............................................................
U.S. Treasury..............................................................................
Other U.S. government agencies............................................
States and political subdivisions..............................................
All other trading account securities.......................................
6,833
4,125
825
1,395
394
94
6,681
4,103
816
1,381
316
66
3,238
2,407
401
363
67
708
408
82
117
101
2,446
1,210
278
794
145
19
290
78
55
107
3
47
151
23
9
14
78
28
20
21
22
23
24
Bank investment portfolios............................................................
U.S. Treasury................... ..........................................................
Other U.S. government agencies............................................
States and political subdivisions..............................................
All other portfolio securities....................................................
255,366
90,943
39,253
119,865
5,305
173,196
61,661
24,641
83,745
3,149
17,570
7,117
1,426
8,803
224
7,210
2,282
1,201
3,588
138
55,825
20,840
7,452
26,629
903
92,591
31,422
14,561
44,724
1,884
82,185
29,293
14,613
36,123
2,156
25 Federal Reserve stock and corporate stock..................................
1,656
1,403
311
111
507
475
253
26 Federal funds sold and securities resale agreement.......................
27
Commercial banks.........................................................................
28
Brokers and dealers.......................................................................
29
Others....................................... ........................................................
41,258
34,256
4,259
2,743
31,999
25,272
4,119
2,608
3,290
1,987
821
482
1,784
1,294
396
94
16,498
12,274
2,361
1,863
10,427
9,717
541
169
9,365
9,090
140
135
30 Other loans, gross....................... ........................................................
31
Less: Unearned income on loans.............................. .................
32
Reserves for loan lo ss..........................................................
33
Other loans, n et..............................................................................
675,915
17,019
7,431
651,465
500,802
11,355
5,894
483,553
79,996
675
1,347
77,974
26,172
107
341
25,724
190,565
3,765
2,256
184,544
204,069
6,809
1,949
195,311
175,113
5,664
1,537
167,912
203,386
Construction and land development...................................... , 25,621
8,418
Secured by farmland..................................................................
117,176
Secured by residential properties............................................
111,674
1- to 4-family residences........................................................
7,503
104,171
Conventional.......................................................................
5,502
Multifamily residences...........................................................
399
FHA-insured........................................................................
5,103
Conventional.......................................................................
52,171
Secured by other properties.....................................................
138,730
19,100
3,655
81,370
77,422
6,500
70,922
3,948
340
3,609
34,605
10,241
2,598
23
5,362
4,617
508
4,109
746
132
613
2,258
2,938
685
34
1,559
1,460
44
1,417
99
27
72
660
52,687
9,236
453
31,212
29,774
3,446
26,328
1,438
88
1,350
11,786
72,863
6,581
3,146
43,236
41,570
2,502
39,068
1,665
92
1,573
19,901
64,656
6,521
4,763
35,806
34,252
1,003
33,249
1,554
59
1,495
17,566
34
35
36
37
38
39
40
41
42
43
44
Other loans, gross, by category
45
46
47
48
49
50
51
52
53
54
Loans to financial institutions.......................................................
REITs and mortgage companies............................................
Domestic commercial banks....................................................
Banks in foreign countries.......................................................
Other depositary institutions...................................................
Other financial institutions.......................................................
Loans to security brokers and dealers.......................................
Other loans to purchase or carry securities..............................
Loans to farmers—except real estate........................................
Commercial and industrial loans................................................
37,072
8,574
3,362
7,359
1,579
16,198
11,042
4,280
28,054
213,123
34,843
8,162
2,618
7,187
1,411
15,465
10,834
3,532
15,296
171,815
12,434
2,066
966
3,464
290
5,649
6,465
410
168
39,633
4,342
801
165
268
76
3,033
1,324
276
150
13,290
15,137
4,616
1,206
2,820
785
5,710
2,846
1,860
3,781
67,833
2,930
680
281
635
261
1,073
199
985
11,196
51,059
2,228
412
744
171
167
733
207
747
12,758
41,309
55
56
57
58
59
60
61
62
63
64
65
66
67
Loans to individuals.......................................................................
Passenger automobiles...........................................................
Residential repair and modernization................................
Credit cards and related plans............................................
Charge-account credit cards............................................
Check and revolving credit plans...................................
Other retail consumer goods................................................
Mobile homes.....................................................................
Other.....................................................................................
Other installment loans.........................................................
Single-payment loans to individuals.......................................
All other loans................................................................................
161,599
131,571
58,908
8,526
21,938
17,900
4,038
19,689
9,642
10,047
22,510
30,027
17,360
110,974
90,568
37,494
5,543
19,333
16,037
3,296
13,296
6,667
6,629
14,902
20,406
14,778
7,100
5,405
1,077
331
2,268
1,573
695
427
179
249
1,302
1,694
3,545
2,562
1,711
209
60
1,267
1,219
47
57
19
38
119
851
1,290
40,320
33,640
11,626
2,088
9,736
8,192
1,545
5,242
2,563
2,678
4,948
6,680
6,100
60,993
49,811
24,582
3,064
6,062
5,053
1,009
7,570
3,905
3,664
8,533
11,182
3,844
50,624
41,003
21,414
2,983
2,605
1,863
742
6,393
2,976
3,417
7,608
9,621
2,582
68 Total loans and securities, net...........................................................
956,579
696,833
102,383
35,536
259,820
299,094
259,867
6,717
22,448
3,255
16,557
34,559
6,212
16,529
3,209
16,036
30,408
1,145
2,332
1,642
8,315
11,323
96
795
188
1,258
1,000
3,931
6,268
1,282
6,054
12,810
1,041
7,133
96
409
5,275
505
5,926
46
521
4,249
74 Total assets........................................................................................... 1,198,495
904,182
170,899
44,170
338,079
351,034
294,595
69
70
71
72
73
Direct lease financing.........................................................................
Fixed assets—Buildings, furniture, real estate.............................
Investment in unconsolidated subsidiaries....................................
Customer acceptances outstanding.................................................
Other assets........................................ ..................................................
For notes see opposite page.
Commercial Banks
A19
1.26 Continued
Member banks1
Liability or capital account
Insured
commercial
banks
Nonmember
banks1
Large banks
Total
New York
City
City o f
Chicago
All other
Other
large
75 Demand deposits................................................................................
Mutual savings banks..................................................................
76
Other individuals, partnerships, and corporations...............
77
U.S. government...........................................................................
78
States and political subdivisions................................................
79
Foreign governments, central banks, etc.................................
80
Commercial banks in United States........................................
81
Banks in foreign countries..........................................................
82
Certified and officers’ checks, etc..............................................
83
369,030
1,282
279,651
7,942
17,122
1,805
39,596
7,379
14,253
282,450
1,089
205,591
5,720
11,577
1,728
38,213
7,217
11,315
66,035
527
31,422
569
764
1,436
21,414
5,461
4,443
10,690
1
7,864
188
252
19
1,807
207
352
100,737
256
79,429
1,987
3,446
211
10,803
1,251
3,354
104,988
305
86,876
2,977
7,116
62
4,189
298
3,166
86,591
194
74,061
2,222
5,545
77
1,393
162
2,937
85
86
87
88
89
90
91
92
266,496
66
392
210,439
689
40,010
6,450
7,289
1,161
38,086
15,954
Banks in foreign countries.........................................................
368,562
79
399
292,120
864
59,087
6,672
7,961
1,381
177
29,209
61
1,952
3,780
2,077
829
40
12,074
40
1,554
1,145
999
103
98,525
1
148
76,333
356
16,483
1,401
3,585
219
113,931
65
27
92,824
232
20,020
124
629
9
102,066
13
7
81,680
175
19,077
222
672
220
93 Savings deposits.................................................................................
94
Individuals and nonprofit organizations..................................
Corporations and other profit organizations..........................
95
96
U.S. government...........................................................................
97
States and political subdivisions................................................
98
223,326
207,701
11,216
82
4,298
30
152,249
141,803
7,672
65
2,682
27
10,632
9,878
519
2
215
18
2,604
2,448
148
3
4
*
54,825
51,161
3,195
24
437
8
84,188
78,316
3,809
35
2,025
2
71,077
65,897
3,544
17
1,616
3
99 Total deposits....................................................................................
960,918
701,195
114,753
29,248
254,087
303,107
259,733
100 Federal funds purchased and securities sold under agreements
to repurchase......................... ....................................................
101
102
Brokers and dealers.....................................................................
103
104 Other liabilities for borrowed money...........................................
105 Mortgage indebtedness....................................................................
106 Bank acceptances outstanding.......................................................
107 Other liabilities..................................................................................
91,981
42,174
12,787
37,020
8,738
1,767
16,661
27,124
85,582
39,607
11,849
34,126
8,352
1,455
16,140
23,883
21,149
6,991
2,130
12,028
3,631
234
8,398
8,860
8,777
5,235
1,616
1,926
306
27
1,260
1,525
41,799
21,609
6,381
13,809
3,191
701
6,070
9,020
13,857
5,773
1,722
6,362
1,225
491
412
4,477
6,398
2,566
939
2,894
386
316
521
3,494
270,849
Mutual savings banks..................................................................
Other individuals, partnerships, and corporations...............
U.S. government..........................................................................
States and political subdivisions................................................
Foreign governments, central banks, etc.................................
108 Total liabilities.................................................................................... 1,107,188
836,607
157,026
41,144
314,868
323,569
109 Subordinated notes and debentures..............................................
5,767
4,401
1,001
79
2,033
1,287
1,366
110 Equity capital.....................................................................................
I ll
Preferred stock..............................................................................
112
Common stock..............................................................................
Surplus............................................................... .............................
113
114
Undivided profits..........................................................................
Other capital reserves...................................................................
115
85,540
88
17,875
32,341
33,517
1,719
63,174
36
12,816
23,127
26,013
1,182
12,871
2,947
2,645
4,541
5,554
132
570
1,404
921
52
21,177
5
4,007
8,148
8,680
337
26,178
31
5,594
9,034
10,858
661
22,380
52
5,064
9,217
7,509
538
116 Total liabilities and equity capital................................................. 1,198,495
904,182
170,899
44,170
338,079
351,034
294,595
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..........................................
252,337
171,864
18,537
5,576
60,978
86,774
80,472
146,283
124,916
36,862
6,030
45,731
36,293
21,379
43,873
651,874
183,614
944,593
33,682
483,316
150,160
687,543
4,272
76,750
32,196
107,028
1,887
25,722
13,216
28,922
16,007
184,790
65,776
250,804
11,517
196,054
38,972
300,789
Federal funds purchased and securities sold under agree
ments to repurchase.............................................................
Other liabilities for borrowed m oney......................................
10,307
168,558
33,454
257,062
92,685
8,716
86,635
8,326
22,896
3,679
9,473
370
40,541
3,211
13,725
1,067
6,053
390
125 Standby letters o f credit outstanding............................................
126 Time deposits o f $100,000 or more...............................................
Certificates o f deposit..................................................................
127
128
Other time deposits......................................................................
18,820
186,837
160,227
26,610
17,658
152,553
129,667
22,886
10,063
32,654
27,950
4,704
1,477
13,486
11,590
1,896
4,820
66,684
56,383
10,301
1,297
39,728
33,743
5,985
1,162
34,284
30,560
3,724
129 Number o f banks..............................................................................
14,390
5,593
12
9
153
5,419
8,810
117
118
119
120
121
122
123
124
1 Member banks exclude and nonmember banks include 13 noninsured
trust companies that are members o f the Federal Reserve System.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. government, less cash items reported
as in process o f collection.
N o te. Data 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 o f valuation reserves. Back data in lesser detail were shown in
previous issues o f the B u lle tin .
A20
Domestic Financial Statistics □ M a y 1979
1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £750 Million or More on
December 31, 1977, Assets and Liabilities A
Millions of dollars, Wednesday figures
1979
Account
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4 p
Apr. \ \ p
Apr. 18p
Apr. 25p
49,082
42,944
44,596
40,658
44,700
47,148
46,235
47,102
41,974
15,544
12,285
12,534
13,823
12,475
13,764
13,634
3 All other cash and due from depositary
institutions..........................................................
4 Total loans and securities.........................................
13,126
13,602
28,921
455,176
24,686
460,266
35,290
455,966
24,739
461,963
28,920
457,323
24,409
470,234
29,193
465,754
30,363
471,328
32,555
465,670
Securities
5 U.S. Treasury securities...........................................
Trading account.....................................................
6
Investment account, by maturity.......................
7
One year or less................................................
8
Over one through five years............................
9
Over five years...................................................
10
11
12
Investment account..............................................
13
14
States and political subdivision, by maturity.
15
One year or less............................................
16
Over one year.................................................
17
Other bonds, corporate stocks and
18
36,132
4,410
31,722
8,588
18,682
4,451
64,617
2,596
62,021
12,287
46,982
7,269
39,713
38,380
5,328
33,052
9,679
19,002
4,371
64,661
2,594
62,067
12,189
47,109
7,578
39,531
37,132
4,302
32,830
9,651
18,890
4,288
65,488
3,133
62,355
12,436
47,153
7,577
39,576
37,283
4,438
32,845
9,718
18,854
4,272
65,121
2,760
62,361
12,467
47,134
7,579
39,555
36,939
4,130
32,809
9,717
18,826
4,267
65,343
2,863
62,480
12,430
47,284
7,625
39,659
40,378
7,333
33,045
10,760
18,025
4,260
64,701
2,891
61,810
11,957
47,066
7,235
39,831
40,148
6,446
33,702
11,261
18,212
4,229
65,371
3,263
62,108
12,029
47,319
7,214
40,105
39,958
6,339
33,619
11,097
18,258
4,264
67,280
3,770
63,510
12,150
48,616
8,371
40,246
37,472
5,458
32,014
9,788
17,936
4,290
66,962
3,194
63,767
12,349
48,672
8,356
40,316
2,752
2,769
2,765
2,759
2,766
2,786
2,760
2,744
2,746
25,821
17,992
5,184
2,645
338,804
134,097
28,821
17,649
7,528
3,644
338,676
133,975
25,736
18,195
5,093
2,449
337,923
134,074
30,715
20,633
6,997
3,085
339,219
135,071
25,549
17,800
5,425
2,324
339,905
135,905
30,690
19,159
8,393
3,138
344,844
137,321
25,820
17,016
6,304
2,500
344,883
137,706
27,935
18,104
6,816
3,015
346,682
138,843
25,656
17,320
5,693
2,642
346,171
138,822
3,678
130,419
124,194
6,225
82,372
60,843
3,425
130,550
124,362
6,188
82,582
60,885
3,308
130,766
124,632
6,134
82,915
61,007
3,159
131,912
125,710
6,202
83,082
61,185
3,405
132,500
126,305
6,195
83,289
61,440
3,368
133,953
127,704
6,248
83,415
61,745
3,135
134,570
128,328
6,243
83,844
61,906
3,376
135,467
129,306
6,161
84,151
62,357
2,997
135,825
129,653
6,172
84,334
62,807
2,851
8,073
2,633
7,723
2,886
8,019
2,709
7,670
2,744
7,040
2,937
7,383
2,913
7,601
2,908
6,826
2,679
6,778
7,934
14,952
7,924
8,184
15,042
8,266
8,047
14,782
6,982
8,057
14,676
7,603
8,084
14,611
7,405
8,372
14,881
8,935
8,712
14,799
8,039
8,381
14,827
8,600
8,322
14,778
8,443
2,364
4,424
12,971
5,647
4,551
328,606
5,554
63,546
617,823
2,380
4,464
12,541
5,684
4,588
328,403
5,572
62,338
608,090
2,388
4,507
12,315
5,739
4,574
327,610
5,630
63,075
617,092
2,318
4,544
12,303
5,791
4,584
328,844
5,654
62,382
609,219
2,326
4,578
12,481
5,834
4,578
329,492
5,681
60,801
609,900
2,306
4,600
12,948
5,809
4,569
334,465
5,722
59,697
620,974
2,313
4,620
12,431
5,889
4,579
334,415
5,720
60,242
620,778
2,308
4,665
12,816
5,941
4,586
336,155
5,741
58,417
626,078
2,326
4,667
12,215
5,983
4,607
335,580
5,761
58,272
617,835
167,876
766
120,399
4,303
775
26,375
6,796
1,168
7,293
257,676
76,413
71,331
172,469
692
124,087
4,384
886
28,332
6,498
1,138
6,452
257,564
76,254
71,198
168,171
651
119,885
4,736
918
27,662
6,742
1,131
6,444
256,893
76,565
71,498
169,110
611
120,176
4,355
763
26,546
6,549
1,182
8,927
256,756
76,831
71,745
182,147
892
126,623
4,330
3,227
30,633
6,600
1,413
8,428
256,047
77,784
72,682
181,070
837
127,663
4,686
1,656
30,159
6,452
1,236
8,380
254,426
77,674
72,611
181,112
770
129,958
4,628
2,631
27,633
6,509
1,245
7,739
251,881
77,115
72,084
173,984
715
124,462
4,764
1,965
26,800
6,734
1,250
7,294
251,506
76,680
71,659
4,202
856
25
181,263
142,458
24,070
492
7,438
4,178
859
20
181,309
142,494
24,116
510
7,379
4,176
859
32
180,328
141,580
24,062
488
7,389
4,231
833
23
179,925
141,430
23,887
476
7,270
4,215
865
22
178,263
140,501
23,475
474
7,006
4,202
834
27
176 752
139,639
23,245
480
6,736
4,118
891
22
174,766
138,269
23,066
478
6,534
4,142
863
17
174,825
138,416
23,178
496
6,408
6,805
81,379
6,810
86,598
6,808
79,081
6,862
81,065
6,806
82,423
6,652
86,344
6,418
87,770
6,327
87,648
1,490
1,253
9,639
731
314
10,996
1,104
5,016
9,848
838
2,224
9,664
220
492
10,051
87
214
10,165
2,597
4,214
9,793
940
3,208
10,189
46,869
566,183
46,378
575,050
47,279
567,392
48,241
567,900
47,390
578,770
46,162
578,468
46,495
583,863
48,147
575,623
41,908
42,042
41,827
42,000
42,204
42,311
42,215
42,212
1 Cash items in process o f collection.......................
2 Demand deposits due from banks in the United
Loans
19
20
21
22
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
To commercial banks................... .............. ..
To nonbank brokers and dealers in securities.
Commercial and industrial..................................
Bankers’ acceptances and commercial
paper............................................................
All other..............................................................
Non-U.S. addressees.....................................
To individuals for personal expenditures.........
To financial institutions
Banks in foreign countries..............................
Sales finance, personal finance companies,
etc.................................................................
Other financial institutions..............................
To nonbank brokers and dealers in securities.
To others for purchasing and carrying
securities2 .......................................................
To finance agricultural production...................
40
41
42 Lease financing receivables......................................
43
Deposits
45 Demand deposits..................... ................................ 180,205
698
Mutual savings banks...... ...................................
46
Individuals, partnerships, and corporations.. 125,848
47
5,228
States and political subdivisions.......................
48
858
49
31,659
Commercial banks in United States.................
50
6,565
Banks
in
foreign
countries.................
................
51
1,496
Foreign governments and official institutions.
52
7,852
Certified and officers’ checks..............................
53
54 Time and savings deposits...................................... 257,725
76,032
Savings....................................................................
55
70,998
Individuals and nonprofit organizations.. . .
56
Partnerships
and
corporations
operated
for
57
4,167
845
Domestic governmental units.........................
58
23
59
181,693
60
Individuals, partnerships, and corporations.. 142,704
61
24,302
States and political subdivisions.......................
62
487
U.S. government...................................................
63
7,394
Commercial banks in United States...... ..........
64
Foreign governments, official institutions,
65
6,806
77,056
Other liabilities for borrowed money
816
Borrowings from Federal Reserve Banks..
67
1,954
Treasury tax-and-loan notes...........................
68
All other liabilities for borrowed money. ..
11,571
69
Other liabilities and subordinated note and
70
46,502
575,828
71
72
Residual (total assets minus total liabilities)4 .
41,995
1 Includes securities purchased under agreements to resell.
2 Other than financial institutions and brokers and dealers.
3 Includes securities sold under agreements to repurchase.
4 This is not a measure o f equity capital for use in capital adequacy analysis or
for other analytic uses.
A See “Announcements,” p. 408, for information on availability of revised back data.
Weekly Reporting Banks
A21
1.28 LAR G E W EEK LY REPORTING COM M ERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977 Assets and LiabilitiesA
Millions of dollars, Wednesday figures
1979
Account
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4*
Apr. 11*
Apr. 18*
Apr. 25*
46,746
40,846
42,498
38,606
42,734
44,831
44,110
44,699
39,607
14,779
11,669
11,917
13,154
11,821
12,927
12,894
12,526
12,929
27,024
425,920
23,211
430,578
33,417
426,347
23,235
431,982
27,158
427,846
23,002
440,205
27,513
435,700
28,797
440,857
30,673
435,780
33,725
4,355
29,370
7,975
17,275
4,119
59,693
2,547
57,145
11,434
43,188
6,683
36,505
35,943
5,266
30,677
9,049
17,588
4,040
59,757
2,547
57,210
11,348
43,321
6,902
36,419
34,708
4,264
30,443
9,013
17,463
3,968
60,553
3,076
57,477
11,589
43,352
6,890
36,462
34,834
4,388
30,446
9,092
17,402
3,952
60,190
2,702
57,488
11,613
43,333
6,884
36,449
34,488
4,076
30,411
9,099
17,368
3,944
60,393
2,808
57,585
11,576
43,460
6,926
36,535
37,901
7,271
30,629
10,106
16,574
3,949
59,838
2,807
57,032
11,128
43,335
6,650
36,685
37,615
6,376
31,239
10,603
16,718
3,918
60,510
3,193
57,317
11,190
43,587
6,629
36,958
37,389
6,249
31,140
10,440
16,750
3,950
62,314
3,703
58,611
11,300
44,784
7,702
37,083
34,995
5,425
29,570
9,154
16,444
3,973
61,962
3,130
58,832
11,487
44,820
7,674
37,146
2,523
2,540
2,536
2,541
2,548
2,568
2,540
2,527
2,524
24,058
16,468
4,977
2,613
317,888
127,175
26,634
15,716
7,297
3,621
317,757
127,076
23,664
16,371
4,867
2,426
316,969
127,137
28,421
18,656
6,783
2,982
318,144
128,028
23,750
16,228
5,229
2,294
318,856
128,876
28,346
17,103
8,126
3,118
323,728
130,301
23,541
15,072
5,989
2,479
323,726
130,618
25,544
15,954
6,602
2,988
325,353
131,660
23,808
15,738
5,449
2,622
324,819
131,631
3,609
123,566
117,390
6,175
77,175
54,179
3,360
123,716
117.578
6,138
77,384
54,210
3,246
123,891
117,810
6,081
77,700
54,309
3,088
124,940
118,792
6,148
77,858
54,465
3,340
125,536
119,394
6,142
78,048
54,716
3,312
126,989
120,795
6,194
78,184
54,964
3,080
127,537
121,348
6,189
78,608
55,105
3,317
128,342
122,235
6,107
78,887
55,510
2,941
128,690
122,571
6,119
79,075
55,937
2,749
7,989
2,544
7,650
2,796
7,935
2,625
7,597
2,657
6,972
2,854
7,323
2,833
7,530
2,824
6,766
2,602
6,728
7,782
14,445
Other financial institutions.....................
7,836
To nonbank brokers and dealers in securities.
To others for purchasing and carrying
2,069
securities2 ............................. .........................
4.281
To finance agricultural production...................
12,209
All other..................................................................
5,162
Less: Unearned income............................................
4.281
Loan loss reserve............................................
Other loans, net......................................................... 308,444
5,396
Lease financing receivables......................................
62,011
All other assets...........................................................
Total assets................................................................. 581,877
8,031
14,528
8,172
7,903
14,284
6,897
7,902
14,212
7,513
7,918
14,167
7,310
8,197
14,428
8,842
8,520
14,358
7,959
8,187
14,389
8,514
8,127
14,332
8,358
2,090
4,321
11,751
5,196
4,317
308,245
5,411
60,864
572.579
2,107
4,362
11,541
5,245
4,302
307,422
5,469
61,607
581,256
2,045
4,396
11,502
5,293
4,313
308,537
5,493
60,919
573,391
2,045
4,430
11,718
5,334
4,307
309,215
5,519
59,309
574,385
2,064
4,449
2,076
4,470
11,649
5,384
4,307
314,034
5,557
58,730
584,504
2,075
4,516
12,026
5,430
4,314
315,610
5,578
56,928
589,384
2,093
4,514
11,422
5,469
4,336
315,015
5,597
56,769
581,355
157,567
712
112,470
3,784
592
25,072
6,738
1.154
7,045
240,672
70,818
66,147
161,946
115,773
3,812
808
27,101
6,434
1,134
6,216
240,477
70.652
159,015
584
112,297
3,688
170,228
811
119,193
4,146
1,513
28,826
6,386
1,233
66,022
157,911
628
112,038
3,969
819
26,425
6,687
1,130
6,215
239,790
70,942
66,293
169,821
748
121,140
4,076
2,324
26,383
6,444
1,243
7,462
234,934
71,508
66,864
163,002
692
115,993
4,126
1,655
25,584
6,678
1,232
7,043
234,566
71,102
66,467
3,886
760
24
169,854
133,511
21,917
487
7,151
3,865
746
19
169,825
133,494
21,940
505
7,092
3,868
750
31
168,848
132,575
21,880
483
7,116
3,816
806
6,788
77,354
6,794
82,574
1,478
1.154
9,272
1 Cash items in process o f collection.......................
2 Demand deposits due from banks in the United
States...................................................................
3 All other cash and due from depositary
institutions..........................................................
4 Total loans and securities.........................................
Securities
5 U.S. Treasury securities...........................................
6
Trading account.....................................................
7
Investment account, by maturity.......................
8
One year or less................................................
9
Over one through five years...........................
10
Over five years...................................................
11 Other securities..........................................................
12
Trading account.....................................................
13
Investment account..............................................
14
U.S. government agencies.........................
15
States and political subdivision, by maturity.
16
One year or less............................................
17
Over one year.................................................
18
Other bonds, corporate stocks and
securities.....................................................
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Loans
Federal funds sold1..................................................
To commercial banks.................................. .*.•••
To nonbank brokers and dealers in securities.
To others.................................................................
Other loans, gross.....................................................
Commercial and industrial...........................
Bankers’ acceptances and commercial
paper............................................................
All other..............................................................
U.S. addresses................................................
Non-U.S. addressees.....................................
Real estate...............................................................
To individuals for personal expenditures.........
To financial institutions
Commercial banks in the U .S........................
Banks in foreign countries.....................
Sales finance, personal finance companies,
Deposits
45 Demand deposits....................................................... 169,524
665
46
Mutual savings banks..........................................
47
Individuals, partnerships, and corporations.. 117,655
4,594
48
States and political subdivisions.......................
748
49
U.S. government...................................................
30,281
50
Commercial banks in United States.................
6,489
51
Banks in foreign countries................. ................
1,494
52
Foreign governments and official institutions.
7,599
53
Certified and officers’ checks..............................
54 Time and savings deposits...................................... 240,754
70,479
55
Savings...............................................................
65,831
56
Individuals and nonprofit organizations___
57
Partnerships and corporations operated for
3,855
profit............................................................
771
58
Domestic governmental units.........................
22
59
All other..............................................................
170,275
60
Time..........................................................................
61
Individuals, partnerships, and corporations.. 133,766
62
States and political subdivisions.......................
22,135
482
63
U.S. government...................................................
64
Commercial banks in United States.................
7,103
65
Foreign governments, official institutions,
6,790
and banks.......................................................
73,042
66 Federal funds purchased 3........................................
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks..
703
1,816
68
Treasury tax-and-loan notes...........................
69
All other liabilities for borrowed m oney. ..
11,276
70
Other liabilities and subordinated note and
45,346
debentures.......................................................
71
Total liabilities....................................................... 542,460
72
Residual (total assets minus total liabilities)4.
39,416
1 Includes securities purchased under agreements to resell.
2 Other than financial institutions and brokers and dealers.
3 Includes securities sold under agreements to repurchase.
12,120
5,310
4,298
314,120
5,559
58,213
584,738
25,389
6,491
1,180
8,698
239,714
71,226
66,548
171,164
854
118,270
3,782
2,983
29,190
6,543
1,411
8,131
239,027
72,134
67,422
3,920
736
3,905
786
168,489
132,436
21,738
470
6,997
6,794
75,106
675
273
10.653
45,774
533,271
39,308
666
688
8,120
237,376
72,026
67,369
166,894
131,589
21,307
468
6,736
3,891
740
26
165,350
130,693
21,071
475
6,474
163,426
129,355
20,921
472
6,272
3,835
784
16
163,464
129,476
21,037
491
6,147
6,847
76,971
6,793
78,300
6,638
82,103
6,405
83,703
6,313
83,428
1,066
4,667
9,497
767
2,066
9,346
195
463
9,712
87
189
9,826
2,589
3,969
9,340
934
2,925
9,828
45,226
541,824
46,123
534,161
47,129
535,009
46,286
545,148
45,020
544,829
45,442
549,797
47,079
541,763
39,432
39,230
39,376
39,590
39,675
39,587
39,592
22
20
21
4 This is not a measure o f equity capital for use in capital adequacy analysis or
for other analytic uses.
A See “Announcements,” p. 408, for information on availability of revised back data.
A ll
Domestic Financial Statistics □ M a y 1979
1.29 LAR GE W EEK LY REPORTING COM M ERCIAL BANKS IN NEW Y O R K C IT Y
Millions of dollars, Wednesday figures
Assets and LiabilitiesA
1979
Account
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. A?
Apr. 11^
Apr. 18^
Apr. 25 p
18,084
15,648
15,851
13,768
18,038
17,040
17,205
15,841
14,443
9,662
7,609
7,737
9,008
7,824
8,342
8,575
7,909
8,652
5,999
97,452
5,921
98,095
8,164
97,209
5,618
100,060
6,503
97,294
4,716
100,950
7,046
98,916
6,450
100,291
5,405
99,152
Investment account, by maturity.......................
One year or less.................................................
Over one through five years............................
Over five years...................................................
6,604
932
4,659
1,013
7,233
1,121
5,149
963
6,956
1,059
4,969
928
7,003
1,135
4,939
928
7,004
1,117
4,970
917
7,077
1,584
4,556
937
7,157
1,563
4,660
934
7,035
1,401
4 ,'682
952
6,611
1,189
4,463
958
Investment account...............................................
U.S. government agencies...............................
States and political subdivision, by maturity.
One year or less............................................
Over one year................................................
Other bonds, corporate stocks and securities
11,012
1,413
9,037
1,464
7,573
561
11,145
1,513
9,078
1,492
7,587
553
11,031
1,453
9,030
1,470
7,561
548
11,021
1,396
9,079
1,528
7,551
546
11,066
1,390
9,126
1,558
7,568
549
10,895
1,343
9,001
1,461
7,540
551
10,891
1,353
8,995
1,432
7,562
543
11,335
1,388
9,421
1,879
7,542
526
11,272
1,372
9,373
1,820
7,552
527
6,483
3,922
1,689
872
75,423
38,287
6,348
2,476
2,763
1,109
75,459
38,340
6,458
3,790
1,818
850
74,854
38,273
9,367
6,420
2,245
701
74,763
38,279
6,618
3,976
1,995
647
74,713
38,460
7,549
3,783
3,044
721
77,525
39,267
5,626
2,965
1,987
674
77,348
39,285
6,881
4,169
2,140
572
77,152
39,476
6,518
3,252
2,192
1,074
76,878
39,505
950
37,337
35,076
2,261
10,377
7,264
925
37,415
35,168
2,247
10,404
7,290
908
37,364
35,128
2,237
10,464
7,305
822
37,457
35,224
2,233
10,477
7,319
900
37,560
35,331
2,229
10,504
7,344
1,109
38,158
35,909
2,249
10,508
7,372
960
38,326
36,070
2,256
10,545
7,394
970
38,506
36,279
2,227
10,576
7,433
883
38,622
36,396
2,225
10,591
7,481
953
3,548
965
3,421
1,219
3,732
964
3,517
974
3,147
974
3,641
1,002
3,909
956
3,213
885
3,268
3,064
4,373
4,221
3,230
4,315
4,354
3,160
4,096
3,477
3,117
4,119
3,888
3,081
4,130
3,915
3,238
4,232
4,983
3,416
4,143
4,505
3,232
4,181
4,838
3,067
4,167
4,844
432
206
2,695
660
1,410
73,354
499
32,157
163,854
430
209
2,500
667
1,423
73,369
500
32,012
159,784
421
223
2,485
674
1,417
72,764
529
33,071
162,561
353
236
2,492
679
1,414
72,669
529
32,482
161,465
355
227
2,575
689
1,417
72,607
531
31,261
161,451
353
236
2,722
684
1,412
75,429
530
32,742
164,320
354
230
2,564
691
1,415
75,241
536
32,263
164,541
357
244
2,646
696
1,415
75,040
537
31,257
162,286
356
242
2,472
705
1,422
74,751
533
31,895
160,080
58,556
381
29,600
412
102
18,552
4,662
1,255
3,593
49,881
9,548
8,913
51,369
399
26,755
365
92
14,188
5,035
870
3,664
49,672
9,617
8,983
53,254
392
27,885
384
134
16,295
4,653
832
2,679
49,677
9,617
8,993
53,823
352
28,302
508
113
15,782
5,056
890
2,820
49,306
9,686
9,042
53,955
313
27,799
382
102
14,490
4,872
933
5,064
48,447
9,767
9,129
56,728
509
28,602
385
794
16,496
4,866
1,205
3,871
47,830
9,952
9,308
57,037
497
28,632
422
401
17,116
4,677
982
4,309
47,054
9,963
9,334
53,396
409
28,090
441
599
14,450
4,906
1,014
3,485
46,200
9,988
9,328
52,646
392
27,187
376
491
14,791
5,037
1,021
3,351
45,563
9,964
9,309
440
184
12
40,333
31,071
1,877
23
3,274
440
178
16
40,055
30,813
1,868
28
3,274
435
178
10
40,061
30,861
1,844
40
3,194
446
174
23
39,621
30,460
1,852
43
3,179
448
178
12
38,680
29,738
1,765
43
3,060
447
185
12
37,878
29,179
1,670
48
2,876
443
169
17
37,091
28,703
1,640
52
2,729
443
204
14
36,212
28,164
1,633
48
2,584
444
203
7
35,599
27,728
1,638
46
2,456
4,087
19,291
4,072
22,385
4,121
24,328
4,087
21,342
4,074
22,398
4,105
23,610
3,967
24,615
3,783
24,780
3,731
25,205
411
4,049
490
210
3,990
155
2
3,985
279
1,264
3,869
386
498
3,766
4,063
2
4,309
1,225
991
4,226
75
486
4,388
18,777
150,966
18,890
147,006
18,217
149,619
18,776
148,660
19,248
148,698
19,250
151,482
18,653
151,670
18,655
149,472
18,936
147,300
12,889
12,779
12,943
12,806
12,752
12,839
12,871
12,814
12,780
1 Cash items in process o f collection.......................
2 Demand deposits due from banks in the United
States ....................................................................
3 All other cash and due from depositary
institutions..........................................................
4 Total loans and securities1.......................................
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
Loans
To commercial banks......... .................................
20
To nonbank brokers and dealers in securities.
21
To others.................................................................
22
23 Other loans, gross.....................................................
Commercial and industrial.................................
24
Bankers’ acceptances and commercial
25
paper............................ ...............................
All other.............................................................
26
U.S. addressees.............. ...............................
27
Non-U.S. addressees....................................
28
Real estate............................... ...............................
29
To individuals for personal expenditures.. . .
30
To financial institutions
Commercial banks in the U .S........................
31
Banks in foreign countries..............................
32
Sales finance, personal finance companies,
33
etc..................................................................
Other financial institutions..............................
34
To nonbank brokers and dealers in securities.
35
To others for purchasing and carrying
36
To finance agricultural production...................
37
38
39 Less: Unearned income............................................
40
41
43
Deposits
Mutual savings banks..........................................
46
Individuals, partnerships, and corporations...
47
States and political subdivisions........................
48
49
Commercial banks in United States.................
50
Banks in foreign countries................. ................
51
Foreign governments and official institutions.
52
Certified and officers’ checks..............................
53
54 Time and savings deposits........................................
55
Individuals and nonprofit organizations.. . .
56
Partnerships and corporations operated for
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Domestic governmental units.........................
All other.............................................................
Time.........................................................................
Individuals, partnerships, and corporations.
States and political subdivisions....................
U.S. government...............................................
Commercial banks in U.S...............................
Foreign governments, official institutions,
and banks...................................................
Federal funds purchased6........................................
Other liabilities for borrowed money
Borrowings from Federal Reserve Banks........
Treasury tax-and-loan notes..............................
All other liabilities for borrowed money.........
Other liabilities and subordinated note and
debentures...........................................................
71
72 Residual (total assets minus total liabilities)7 ..
1 Excludes trading account securities.
2 Not available due to confidentiality.
3 Includes securities purchased under agreements to resell.
4 Other than financial institutions and brokers and dealers.
5 Includes trading account securities.
6 Includes securities sold under agreements to repurchase.
7 This is not a measure o f equity capital for use in capital adequacy analysis or
for other analytic uses.
▲ See “Announcements,” p. 408, for information on availability o f revised back data.
Weekly Reporting Banks
1.30 LAR G E W EEK LY REPORTING COM M ERCIAL BANKS
Millions of dollars, Wednesday figures
A23
Balance Sheet Memoranda
1979
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4*
Apr. 11*
Apr. 18*
Apr. 25*
Large weekly reporting banks with assets o f $750 million or more
1 Total loans (gross) and investments adjusted1. . . 444,532
2 Total loans (gross) adjusted1.................................. 343 782
98,606
3 Demand deposits adjusted2 ....................................
450,256
347,215
97,782
445,198
342,578
98,654
448,996
346,592
98,932
447,191
344,909
97,101
458,516
353,438
101,139
456,293
350,774
103,020
460,843
353,605
103,746
456,261
351,827
103,244
4 Time deposits in accounts o f $100,000 or more. 130,790
5
Negotiable C D s..................................................... ■94,714
36,076
6
Other time deposits..............................................
130,190
94,244
35,946
129,947
93,767
36,180
128,710
92,697
36,013
128,274
92,361
35,913
126,393
90,979
35,413
124,608
89,576
35,032
122,207
87,503
34,704
121,796
86,870
34,926
3,540
2,489
1,050
3,491
2,496
995
3,474
2,467
1,007
3,504
2,498
1,006
3,631
2,594
1,037
3,587
2,550
1,036
3,632
2,618
1,014
3,594
2,586
1,008
3,648
2,638
1,010
7 Loans sold outright to affiliates3 ..........................
8
Commercial and industrial..................................
9
Other........................................................................
Large weekly reporting banks with assets o f $1 billion or more
10 Total loans (gross) and investments adjusted1...
11 Total loans (gross) adjusted1..................................
12 Demand deposits adjusted2 ....................................
416,147
322,729
91,749
421,831
326.132
91,056
416,727
321,466
91,538
420,308
325,284
92,061
418,603
323,722
90,205
429,857
332,117
94,160
427,486
329,361
95,779
431,822
332,120
96,414
427,245
330,288
96,155
13 Time deposits in accounts of $100,000 or more.
Other time deposits..............................................
123,119
89,983
33,136
122,558
89,519
33,039
122,258
89,015
33,244
121,036
87,952
33,084
120,638
87,608
33,029
118,877
86,294
32,583
117,074
84,735
32,339
114,765
82,712
32,053
114,437
82,099
32,338
16 Loans sold outright to affiliates3...........................
17
Commercial and industrial..................................
18
Other........................................................................
3,498
2,471
1,027
3,453
2,480
973
3,435
2,452
983
3,463
2,482
981
3,590
2,577
1,013
3,546
2,535
1,011
3,583
2,595
988
3,544
2,565
980
3,599
2,617
982
15
Large weekly reporting banks in New York City
19 Total loans (gross) and investments adjusted1*4.
20 Total loans (gross) adjusted1..................................
21 Demand deposits adjusted2 ....................................
94,646
77,030
21,817
96,745
78,366
21,440
94,292
76,305
20,974
94,768
76,744
24,160
94,450
76,381
21,326
98,289
80,317
22,398
97,055
79,007
22,314
97,278
78,908
22,505
97,142
79,259
22,922
22 Time deposits in accounts o f $100,000 or more.
23
Negotiable C D s.....................................................
24
Other time deposits..............................................
35,191
27,683
7,508
34,886
27,373
7,513
34,810
27,248
7,562
34,351
26,874
7,477
33,438
26,062
7,376
32,512
25,202
7,310
31,674
24,425
7,249
30,731
23,548
7,184
30,100
22,906
7,194
1 Exclusive o f loans and federal funds transactions with domestic com
mercial banks.
2 All demand deposits except U.S. government and domestic banks
less cash items in process o f collection.
3 Loans sold are those sold outright to a bank’s own foreign branches,
nonconsolidated nonbank affiliates o f the bank, the bank’s holding com
pany (if not a bank) and nonconsolidated nonbank subsidiaries o f the
holding company.
4 Excludes trading account securities.
A24
Domestic Financial Statistics □ M a y 1979
1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial
Loans
Millions o f dollars
Outstanding
Industry classification
1979
1978
Dec. 27
Net change during—
Jan. 31
Feb. 28r Mar. 28 '
Apr. 25
1978
1979
Q4
Q l-
1979
Feb.
Mar.
Apr.
1 Durable goods manufacturing...........
18,004
17,786
18,814
19,479
20,600
365
1,475
1,028
665
1,121
2 Nondurable goods manufacturing. . .
3
Food, liquor, and tobacco..............
4
Textiles, apparel, and leather.........
5
Petroleum refining.............................
6
Chemicals and rubber......................
7
Other nondurable g ood s.................
17,216
4,936
3,726
2,643
3,540
2,371
16,474
4,620
3,788
2,370
3,285
2,411
16,814
4,685
3,943
2,352
3,383
2,451
17,452
4,812
4,189
2,273
3,506
2,671
17,570
4,766
4,323
2,112
3,603
2,766
213
686
-6 2 4
153
88
-8 9
236
-1 2 4
463
-3 7 0
-3 4
300
339
64
156
-1 8
98
40
638
127
246
-7 9
124
220
118
-4 6
134
-1 6 0
97
94
8 Mining (including crude petroleum
and natural gas)............................
10,652
10,038
9,982
10,143
10,376
200
-5 0 9
-5 6
160
233
9 Trade........................................................
10
Commodity dealers...........................
11
Other wholesale.................................
12
Retail....................................................
19,964
1,963
9,436
8,565
21,136
1,982
10,157
8,997
21,484
1,946
10,399
9,138
22,476
1,892
10,966
9,618
22,961
1,815
11,265
9,881
817
227
277
312
2,512
-7 1
1,530
1,053
347
-3 6
242
141
992
-5 4
566
480
485
-7 8
300
263
13 Transportation, communication, and
other public utilities.....................
14
Transportation...................................
15
Communication.................................
16
Other public utilities.........................
13,411
5,641
1,797
5,973
13,543
5,798
1,753
5,991
13,834
6,031
1,830
5,974
13,986
6,203
1,845
5,938
14,397
6,255
1,881
6,261
1,086
74
83
930
575
562
48
-3 5
292
232
76
-1 7
151
172
16
-3 6
411
53
35
323
17 Construction...........................................
18 Services....................................................
19 All other1................................................
5,207
14,957
16,908
5,113
15,478
15,592
5,077
15,610
15,775
5,399
15,914
14,545
5,503
16,344
14,818
-2 5
982
-4 0 9
192
957
- 2 ,3 6 3
-3 6
132
183
322
304
- 1 ,2 3 0
104
431
273
20 Total domestic loans............................
116,319
115,161
117,390
119,394
122,570
3,229
3,075
2,229
2,003
3,176
21 Memo: Term loans (original maturity
more than 1 year) included in
domestic loans...............................
55,273
57,709
58,700
60,014
61,389
1,718
4,741
991
1,314
1,375
1 Includes commercial and industrial loans at a few banks with assets
with domestic assets o f $1 billion or more as o f December 31, 1977 are
o f $1 billion or more that do not classify their loans.
included in this series. The revised series is on a last-Wednesday-of-themonth basis.
N ote. New series. The 134 large weekly reporting commercial banks
Deposits and Commercial Paper
A25
1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations
Billions o f dollars, estimated daily-average balances
At commercial banks
1977
Type o f holder
1 All
holders,
individuals,
partnerships,
1974
Dec.
and
3 Nonfinancial business................................................
1975
Dec.
1978
1976
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
225.0
236.9
250.1
253.8
252.7
274.4
262.5
271.2
278.8
294.6
19.0
118.8
73.3
2.3
11.7
20.1
125.1
78.0
2 .4
11.3
22.3
130.2
82.6
2 .7
12.4
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
25.7
137.7
92.9
2 .4
12.4
25.9
142.5
95.0
2.5
13.1
27.8
152.7
97.4
2 .7
14.1
At weekly reporting banks
1978
1975
Dec.
7 All
holders,
individuals,
partnerships,
and
8 Financial business.......................................................
9 Nonfinancial business................................................
1976
Dec.
1977
Dec.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
124.4
128.5
139.1
136.9
139.9
137.7
139.7
141.3
142.7
147.0
15.6
69.9
29.9
2.3
6 .6
17.5
69.7
31.7
2 .6
7.1
18.5
76.3
34.6
2 .4
7 .4
19.0
71.9
36.6
2.3
7.1
19.4
73.7
37.1
2.3
7.3
19.4
72.0
36.8
2 .4
7.1
18.9
74.1
37.1
2 .4
7.3
19.1
75.0
37.5
2 .5
7.2
19.3
75.7
37.7
2 .5
7.5
19.8
79.0
38.2
2.5
7.5
N ote. Figures include cash items in process o f collection. Estimates of
gross deposits are based on reports supplied by a sample o f commercial
banks. Types of depositors in each category are described in the June 1971
B u lle tin , p. 466.
1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
Millions o f dollars, end o f period
1978
Instrument
1975
Dec.
1976
Dec.
1977
Dec.
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.
Mar.
Commercial paper (seasonally adjusted)
Financial companies1
Dealer-placed paper 2
2
Total..........................................................................
3
Bank-related.............................................................
Directly-placed paper 3
4
Total..........................................................................
6 Nonfinancial companies4..........................................
48,471
52,971
65,101
77,021
77,734
80,679
83,665
85,226
87,358
90,796
6,212
1,762
7,261
1,900
8,884
2,132
11,429
2,622
10,949
2,868
11,487
3,231
12,296
3,521
12,915
4,413
13,419
3,969
14,247
3,793
31,404
6,892
32,511
5,959
40,484
7,102
47,760
10,383
48,460
10,925
50,093
11,478
51,630
12,314
52,880
12,191
54,586
12,166
55,653
12,642
10,855
13,199
15,733
17,832
18,325
19,099
19,739
19,431
19,353
20,896
Dollar acceptances (not seasonally adjusted)
7 Total..............................................................................
Held by
8 Accepting banks...........................................................
10
Bills bought.............................................................
Federal Reserve Banks
11
Own account . .
. . .
............................
13 Others............................................................................
18,727
22,523
25,450
27,952
30,579
32,145
33,700
33,749
34,337
34,617
7,333
5,899
1,435
10,442
8,769
1,673
10,434
8,915
1,519
7,647
6,461
1,186
8,379
7,012
1,366
8,082
6,840
1,243
8,579
7,653
927
7,339
6,214
1,125
7,715
6,708
1,007
7,645
6,535
1,110
1,126
293
991
375
954
362
1
556
557
585
1
664
765
750
743
25,829
26,179
9,114
7,858
17,365
9,281
8,104
17,232
9,975
10,715
13,904
19,748
21,644
23,478
24,456
25,646
3,726
4,001
11,000
4,992
4,818
12,713
6,378
5,863
13,209
7,957
6,350
13,644
8,575
6,665
15,339
8,675
7,224
16,245
8,574
7,586
17,540
8,869
7,762
17,118
Based on
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 all 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
Domestic Financial Statistics □ M a y 1979
1.34 PRIME R A TE C H ARG ED BY BANKS on Short-term Business Loans
Percent per annum
Rate
Effective date
1978—Jan. 10..............
May
8
Effective date
Rate
1978—Sept. 15............
28............
9%
9%
8%
8%
Oct.
June
8%
9
Nov.
Aug. 3 1 .............
9%
26............
6.........
10
10%
10%
10%
Dec. 26............
11%
11%
13............
27............
1............
17.............
24............
Month
Month
Average
rate
1977—Aug.
Sept.
Oct..
Nov.
Dec.
6.83
7.13
7.52
7.75
7.75
1978—Jan..
Feb.
Mar.
Apr.
May
June
7.93
8.00
8.00
8.00
8.27
8.63
Average
rate
1978—July.
Aug.
Sept.
Oct..
Nov.
Dec.
9.00
9.01
9.41
9.94
10.94
11.55
1979—Jan.
Feb.
Mar.
Apr.
11.75
11.75
11.75
11.75
1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 5-10, 1979
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
25-49
50-99
100-499
1,000
and over
500-999
Short-term commercial and industrial loans
1 Amount o f loans (thousands o f dollars)........
6,849,553
144,174
3.2
annum)...........................................................
Interquartile range1........................................
Percent of amount o f loans:
6
With floating rate............................................
7 Made under commitment..............................
12.27
11.51-13.10
2 Number o f loans..................................................
3 Weighted-average maturity (months).............
4 Weighted-average interest rate (percent per
5
572,350
17,073
3.3
582,423
9,420
3.7
1,571,248
8,982
3.3
639,108
1,025
3.3
2,720,187
1,137
2 .8
12.14
12.01
10.47-13.52 10.75-13.25
12.83
11.75-14.20
12.55
11.89-13.37
12.63
12.00-13.28
11.99
11.50-12.45
39.6
24.1
36.8
37.5
45.9
47.6
56.9
55.3
61.8
57.5
764,236
106,536
3.3
50.1
46.4
29.0
20.3
Long-term commercial and industrial loans
---------------- '
8
9
10
11
Amount of loans (thousands of dollars)........
Number o f loans..................................................
Weighted-average maturity (months).............
Weighted-average interest rate (percent per
annum)...........................................................
12
Interquartile range1........................................
Percentage o f amount of loans:
13
With floating rate............................................
14
Made under com m itm ent..............................
1,081,529
16,416
47.6
242,097
14,943
36.7
205,214
1,111
51.0
96,688
154
57.2
537,530
207
49.6
12.01
11.50-13.15
11.83
10.47-13.16
12.25
11.57-13.15
11.93
11.75-12.50
12.02
11.50-13.25
61.7
55.4
25.8
29.3
52.5
41.9
71.4
61.0
79.6
71.2
Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25
Amount of loans (thousands o f dollars)........
Number o f loans..................................................
Weighted-average maturity (months)..............
Weighted-average interest rate (percent per
annum)...........................................................
Interquartile range1........................................
Percentage o f amount o f loans:
With floating rate............................................
Secured by real estate.....................................
Made under commitment..............................
Type o f construction: 1- to 4-family...........
Multifamily..............
N onresidential.........
591,415
15,222
7.8
94,199
11,013
8 .4
63,486
1,918
5.4
11.79
10.21-13.37
11.22
10.00-12.55
12.15
10.16-13.69
44.2
92.4
59.3
40.9
15.8
43.2
22.6
84.1
49.1
62.0
2.9
35.2
24.8
92.9
48.1
80.1
3.3
16.5
All
sizes
1-9
10-24
122,193
639
7.8
218,129
133
10.4
12.00
12.43
10.50-12.68 11.05-13.75
11.48
9 .9 5 - 13.00
93,408
1,520
2 .8
20.2
97.4
71.7
82.3
4 .0
13.7
64.1
92.9
63.2
4.1
2 9.6
66.2
53.8
93.8
56.3
38.4
16.7
44.9
25-49
50-99
100-249
250
and over
Loans to farmers
26
27
28
29
30
31
32
33
34
35
Amount of loans (thousands of dollars)........
Number o f loans..................................................
Weighted-average maturity (m onths)..............
Weighted-average interest rate (percent per
annum)...........................................................
Interquartile range1........................................
By purpose of loan:
Feeder livestock...........................................
Other livestock............................................
Other current operating expenses............
Farm machinery and equipment.............
Other..............................................................
968,124
62,545
7.8
154,312
43,081
8 .4
159,679
11,189
10.7
154,817
4,553
8.0
166,626
2,411
8.0
137,522
996
6.1
195,168
315
5.1
11.01
10.00-11.83
10.34
9.50-11.00
10.40
9 .73-11.00
10.37
9.61-11.00
10.69
10.00-11.00
11.69
11.00-12.49
12.33
11.00-13.50
11.10
11.23
10.88
10.28
11.23
10.35
10.47
10.31
10.23
10.42
10.18
10.87
10.42
10.25
10.83
10.54
10.53
10.33
10.10
10.28
10.60
10.71
10.78
1 Interest rate range that covers the middle 50 percent o f the total
dollar amount o f loans made.
( 2)
10.66
11.33
( 2)
( 2)
11.65
12.61
12.86
( 2)
12.07
( 2)
11.81
2 Fewer than 10 sample loans,
Note. For more detail, see the board’s 416 (G. 14) statistical release.
Securities Markets
A27
1.36 IN TER ES T RATES Money and Capital Markets
Averages, per cent per annum
1979
1976
1977
1979, week ending—
1978
Jan.
Feb.
Mar.
Apr.
Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28
Money market rates
1 Federal funds1..................................................
5.05
5.54
7.94
10.07
10.06
10.09
10.01
10.00
9.95
9.93
9.96
10.09
Prime commercial paper2-3
2 90- to 119-day...................................................
3 4- to 6-month...................................................
5.24
5.35
5.54
5.60
7.94
7.99
10.25
10.32
9.95
10.01
9.90
9.96
9.85
10.39
9.76
9.81
9.83
9.85
10.04
10.05
9.90
9.94
9.65
9.68
4 Finance company paper, directly placed,
3- to 6-month3-4......................................
5.22
5.49
7.78
10.10
9.85
9.73
10.15
9.51
9.66
9.77
9.64
9.51
5 Prime bankers acceptances, 90-day3*5........
5.19
5.59
8.11
10.29
10.01
9.94
10.42
9.82
9.90
10.05
9.90
9.75
Large negotiable certificates of deposit
6 3-month, secondary market6.........................
5.26
5.58
8.20
10.51
10.18
10.13
10.05
9.99
10.09
10.27
9.94
9.94
7 Eurodollar deposits, 3-month 7 ...................
5.57
6.05
8.74
11.16
10.79
10.64
10.60
10.54
10.53
10.81
10.49
10.71
U.S. government securities
Bills3-8
Market yields:
3-month.....................................................
6-month.....................................................
1-year.........................................................
Rates on new issue:9
3-month.....................................................
6-month.....................................................
4.98
5.26
5.52
5.27
5.53
5.71
7.19
7.58
7.74
9.35
9.47
9.54
9.32
9.41
9.39
9.48
9.47
9.38
9.46
9.49
9.28
9.46
9.43
9.29
9.53
9.46
9.26
9.70
9.65
9.37
9.41
9.45
9.22
9.23
9 .40
9.27
4.989
5.266
5.265
5.510
7.221
7.572
9.351
9.501
9.265
9.349
9.457
9.458
9.493
9.498
9.498
9.437
9.593
9.496
9.649
9.572
9.613
9.627
9.115
9.295
8
9
10
11
12
CCapital m;arket rates
Government notes and bonds
U.S. Treasury
Constant maturities10
1-year........................................
2-year........................................
3-year........................................
5-year........................................
7-year........................................
10-year......................................
20-year......................................
30-year......................................
9.78
9.43
9.25
9.21
9.18
9.12
9.08
9.72
9.33
9.18
9.13
9.09
9.05
9.01
10.09
9.72
9.34
9.18
9.12
9.09
9.05
9.01
10.24
9.83
9.46
9.28
9.23
9.18
9.11
9.07
10.04
9.75
9.44
9.24
9.20
9.17
9.12
9.08
10.12
9.25
8.45
9.32
8.44
9.23
8.43
9.24
8.40
9.34
8.43
9.32
8.43
9.35
8.47
5.66
6.75
6.31
5.82
6.41
6.33
5.80
6.25
6.29
5.90
6.40
6.28
5.85
6.20
5.85
6.30
6.33
5.75
6.25
6 .30
6.20
5.75
6.30
6.26
9.65
9.63
9.76
9.81
9.77
9.76
9.79
9.82
9.86
9.25
9.48
9.72
10.13
9.26
9.50
9.68
10.08
9.37
9.61
9.81
10.26
9.38
9.65
9.88
10.33
9.35
9.61
9.84
10.28
9.31
9.61
9.84
10.29
9.37
9.59
9.87
10.33
9.39
9.65
9.89
10.36
9.44
9.7 2
9.90
10.36
8.96
8.97
9.54
9.51
9.53
9.56
9.62
r9 . 62
9.70
9.74
9.60
9.62
9.59
9.61
9.68
9.68
9.66
9.70
9.87
9.88
8.25
5.28
8.79
5.29
8.77
5.43
8.77
5.39
8.29
5.35
8.78
5.28
8.31
5.31
8.29
5.35
8.24
5.38
8.31
5.36
6.77
7.18
7.42
7.61
7.86
6.09
6.45
6.69
6.99
7.23
7.42
7.67
8.34
8.34
8.29
8.32
8.36
8.41
8.48
8.49
10.41
9.86
9.50
9.20
9.14
9.10
8.98
8.94
10.24
9.72
9.29
9.13
9.11
9.10
9.03
9.00
10.25
9.79
9.38
9.20
9.15
9.12
9.08
9.03
Notes and bonds maturing in— 11
21 3 to 5 years......................................
22 Over 10 years (long-term).............
6.94
6.78
6.85
7.06
8.30
7.89
9.36
8.43
9.16
8.43
State and local
Moody's series 12
23
A aa.........................
24
B aa.........................
25 Bond Buyer series13.
5.66
7.49
6.64
6.12
5.20
5.68
5.52
6.27
6.03
5.95
7.14
6.47
9.01
8.43
9.07
8.43
8.75
9.09
9.75
8.02
8.24
8.49
8.97
8.73
8.92
9.12
9.45
Aaa utility bonds15
31 New issue.......................
32 Recently offered issues.
8.48
8.49
8.19
8.19
Dividend/price ratio
33 Preferred stocks............
34 Common stocks...........
7.97
3.77
7.60
4.56
13
14
15
16
17
18
19
20
26
27
28
29
30
Corporate bonds
Seasoned issues14
All industries........
By rating groups:
A aa.........................
A a ...........................
A .............................
B aa.........................
5.8
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 at least five dealers. Previously, most representative rate quoted by
those dealers.
3 Yields are quoted on a bank-discount basis.
4 Averages o f the most representative daily offering rates published by
finance companies for varying maturities in this range.
5 Average o f the midpoint o f the range o f daily dealer closing rates
offered for domestic issues.
6 Weekly figures (week ending Wednesday) are 7-day averages o f the
daily midpoints as determined from the range o f offering rates; monthly
figures are averages o f total days in the month. Beginning Apr. 5, 1978,
weekly figures are simple averages o f offering rates.
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.
10.12 10.11
9.80
9.47
9.28
9.26
9.25
9.20
9.15
9 Rates are recorded in the week in which bills are issued.
10 Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
11 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.
12 General obligations only, based on figures for Thursday, from
Moody’s Investors Service.
13 Twenty issues o f mixed quality.
14 Averages of daily figures from Moody’s Investors Service.
15 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 a y 1979
1.37 STOCK M A R K E T
Selected Statistics
1978
Indicator
1976
1978
1977
Oct.
Nov.
1979
Dec.
Jan.
Feb.
Mar.
Apr.
55.06
60.42
42.27
39.22
56.09
56.18
61.89
43.22
38.94
57.65
57.50
63.64
45.92
38.63
59.50
Prices and trading (averages o f daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
2 Industrial.....................................................................
4 U tility...................................... .....................................
6 Standard & Poor’s Corporation (1941-43 = 10)1..
53.76
58.30
43.25
39.23
56.74
56.40
61.60
46.70
39.44
60.42
98.18
96.11
54.45
60.44
39.57
36.97
52.94
53.67
57.84
41.07
40.91
55.23
102.01
7 American Stock Exchange (Aug. 31,1973 = 100).
101.63
116.18
144.56
Volume o f trading (thousands o f shares)
8 New York Stock Exchange......................................
9 American Stock Exchange.......................................
21,189
2,565
20,936
2,514
28,591
3,922
52.74
57.50
41.80
37.88
54.95
53.69
58.72
42.49
38.09
55.73
100.58
94.71
96.10
99.70
98.23
100.11
102.10
160.14
144.17
149.94
159.26
160.92
171.51
181.14
31,020
4,544
24,505
3,304
24,622
3,430
27,988
3,150
25,037
2,944
29,536
4,105
31,033
4,262
55.76
61.31
43.69
38.79
57.59
Customer financing (end-of-period balances, in millions o f dollars)
10
11
12
13
Regulated margin credit at brokers/dealers2
Margin stock 3...................................................
Convertible bonds............................................
Subscription issues..........................................
8,166
7,960
204
2
9,993
9,740
250
3
11,035
10,830
205
1
12,307
12,090
216
1
11,209
11,000
209
Free credit balances at brokers4
14 Margin-account................................................
15 Cash-account.....................................................
585
1,855
640
2,060
835
2,510
885
2,465
790
2,305
11,035
10,830
205
1
10,955
10,750
204
1
10,989
10,790
195
4
11,056
10,870
185
1
835
2,510
810
2,565
775
2,430
830
2,490
T
n. a.
Margin-account debt at brokers (percentage distribution, end o f period)
16 T otal..............................................................................
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
By equity class (in percent)5
Under 4 0 .......................................................................
40-49.............................................................................
50-59..............................................................................
60-69.............................................................................
70-79..............................................................................
80 or more....................................................................
12.0
23.0
35.0
15.0
8.7
6 .0
18.0
36.0
23.0
11.0
6.0
5.0
33.0
28.0
18.0
10.0
6.0
5.0
47.0
20.0
15.0
8.0
5.0
5.0
32.0
27.0
20.0
10.0
6 .0
5.0
33.0
28.0
18.0
10.0
6.0
5.0
21.0
32.0
22.0
12.0
7.0
6 .0
29.0
31.0
18.0
11.0
6.0
5.0
18.0
30.0
25.0
13.0
8.0
6 .0
17
18
19
20
21
22
n.a.
Special miscellaneous-account balances at brokers (end o f period)
23 Total balances (millions o f dollars)6 .
Distribution by equity status ( percent)
24
Net credit status................................
Debit status, equity o f—
25
60 percent or m ore......................
26
Less than 60 percent...................
8,776
9,910
41.3
43.4
47.8
10.9
44.9
11.7
Margin requirements (percent o f market value)7
Effective date
27 Margin stocks.............................................................
28 Convertible bonds......................................................
29 Short sales...................................................................
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
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 Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended is end-of-month data for member firms o f the New York
Stock Exchange.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise o f subscription rights.
3 A distribution o f this total by equity class is shown on lines 17-22.
4 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
5 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.
6 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.
7 Regulations G, T, and U o f the Federal Reserve Board o f Governors,
prescribed in accordance with the Securities Exchange Act or 1934,
limit the amount o f 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 of the collateral
at the time the credit is extended. Margin requirements are the difference
between the market value (100 percent) and the maximum loan value. The
term “margin stocks” is defined in the corresponding regulation.
Thrift Institutions
1.38 SAVINGS IN S TITU TIO N S
Millions of dollars, end of period
Selected Assets and Liabilities
1978
1975
A29
1976
1979
1977
July
Account
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.*
Savings and loan associations9
1 Assets......................................... 338,233 391,907 459,241 498,301 504,298 508,977 515,352
520,677 523,649 529,820 534,168 539,663
2 M ortgages................................ 278,590 323,005 381,163 411,956 416,677 420,971 425,236
3 Cash and investment
securities1............................. 30,853 35,724 39,150 43,627 44,188 43,987 45,577
4 Other.......................................... 28,790 33,178 38,928 42,718 43,433 44,019 44,539
429,420 432,858 435,460 437,905 441,347
45,869 44,855
45,388 45,936
47,653 49,018
46,707 . 47,245
50,161
48,155
5 Liabilities and net worth........ 338,233 391,907 459,241 498,301 504,298 508,977 515,352
520,677 523,649 529,820 534,168 539,663
Savings capital......................... 285,743 335,912 386,800 411,660 413,972 420,405 423,050
Borrowed money...................... 20,634 19,083 27,840 35,730 37,219 38,595 39,873
15,708
19,945 26,151 27,363 28,632 29,456
FH LBB................................. 17,524
9,856
9,963
9,579
10,417
3,110
3,375
7,895
Other......................................
11,222
9,911
11,540 11,422
5,128
6,840
11,165
Loans in process.....................
11,972
13,906
6,949
8,074
9,506
10,676
12,832
Other..........................................
425,207 431,009 435,752 438,633 446,955
40,981 42,960 42,368 41,368 41,637
30,322 31,990 31,758
31,004 31,177
10,659 10,970
10,610
10,364
10,460
11,315 10,737
10,445
10,287
10,299
14,666 9,918
11,971
14,250
10,901
6
7
8
9
10
11
12 Net worth2...............................
19,779
21,998
25,184
27,399
27,779
28,079
28,432
28,808 29,025
13 Memo: M ortgage loan com
mitments outstanding 3 ..
10,673
14,826
19,875
22,393
22,047
21,648
21,503
20,738
18,911
29,284
29,630
29,871
"18,053
19,038
21,062
Mutual savings banks10
14 Assets........................................ 121,056 134,812 147,287 154,315 155,210 156,110 156,843
15
16
17
18
19
21
Loans:
M ortgage.............................. 77,221
4,023
Other.....................................
Securities:
4,740
U.S. government...............
State and local government. 1,545
Corporate and other4........ 27,992
2,330
3,205
81,630
5,183
88,195
6,210
92,230
8,207
92,866
8,379
93,403
8,418
93,903
8,272
94,497 95,205
7,921
7,176
95,582
7,729
95,857
8,426
5,840
2,417
33,793
2,355
3,593
5,895
2,828
37,918
2,401
3,839
5,269
3,025
39,639
2,029
3,915
5,210
3,098
39,592
2,080
3,985
5,172
3,180
39,639
2,293
4,006
5,105
3,190
39,651
2,735
3,988
5,035 4,950
3,307
3,335
39,679 39,759
3,730
3,033
3,962
4,031
4,811
3,328
40,044
3,332
4,085
4,775
3,167
40,353
3,368
4,151
22 Liabilities.................................. 121,056 134,812 147,287 154,315 155,210 156,110 156,843
23
24
25
26
27
28
29
30
157,436 158,185 158,910 160,097
Deposits.................................... 109,873 122,877 134,017 139,128 139,308 140,816 141,026
Regular:5.............................. 109,291 121,961 132,744 137,430 137,690 139,068 139,422
Ordinary savings............. 69,653 74,535 78,005 76,116 75,578 75,423 74,124
Time and other............... 39,639 47,426 54,739 61,313 62,112 63,645 65,298
582
1,619
916
1,272
1,747
1,604
Other......................................
1,698
5,040
2,755
2,884
3,292
4,636
5,246
4,570
Other liabilities.......................
10,654
8,428
9,052
9,978
10,777
General reserve accounts.. . .
10,551
10,725
Memo : M ortgage loan commitments outstanding6 ..
1,803
2,439
4,066
4,872
4,789
4,561
4,843
157,436 158,185 158,910 160,097
141,155
139,853
72,398
67,299
1,458
5,411
10,870
4,823
n. a.
142,629 142,854 143,496
141,089 141,355 142,022
71,702 70,540 68,685
69,387 70,815
73,338
1,540
1,499
1,474
4,666
5,090
5,561
10,891
10,967
11,040
4,400
4,366
4,453
Life insurance companies11
31 A ssets........................................ 289,304 321,552 351,722 374,415 378,124 381,050 382,446
32
33
34
35
36
37
38
Securities:
13,758 17,942 19,553 19,447 19,563 19,638 19,757
5,155
5,183
5,368
4,736
5,156
5,315
5,006
5,884
5,594
4,508
6,001
State and local.................
6,035
6,051
5,925
8,524
4,514
6,980
8,481
8,539
Foreign8...........................
8,187
8,516
Business................................. 135,317 157,246 175,654 192,112 194,620 196,152 195,883
Bonds................................ 107,256 122,984 141,891 156,207 157,888 159,972 161,347
34,262 33,763 35,905 36,732
Stocks................................ 28,061
36,180 34,536
40 Real estate................................
41 Policy loans..............................
42 Other assets..............................
89,167
9,621
24,467
16,971
91,552
10,476
25,834
18,502
96,848 100,596
11,060 11,562
27,556 28,843
21,051 21,855
101,602
11,538
29,067
21,734
102,365
11,583
29,290
22,022
103,161
11,693
29,521
22,431
385,562 389,021 393,402 395,553
19,711
4,934
6,235
8,542
197,615
162,835
34,780
19,579 19,829 19,922
5,049
A,195
5,209
6,250
6,236
6,132
8,534
8,544
8,581
197,342 201,061 201,869
161,923 165,552 166,693
35,419
35,509
35,176
104,106 105,932
11,707 11,776
29,818 30,202
22,605 24,190
106,397
11,841
30,506
23,768
107,137
11,919
30,835
23,871
n.a.
Credit unions
43 Total assets/liabilities and
Federal..................................
38,037
20,209
17,828
45,225
24,396
20,829
54,084
29,574
24,510
59,152
32,679
26,473
60,141
33,315
26,826
61,211
34,058
27,219
60,909
33,718
27,191
61,465 62,595
34,093 34,681
27,372 27,914
61,756
34,165
27,591
62,319
34,419
27,900
63,883
35,289
28,594
46 Loans outstanding...................
47
Federal..................................
48
State......................................
28,169
14,869
13,300
34,384
18,311
16,073
42,055
22,717
19,338
47,620
25,970
21,650
49,103
26,840
22,263
50,121
27,510
22,611
50,549
27,697
22,852
51,264 51,807
28,176 28,583
23,088 23,224
51,526
28,340
23,186
51,716
28,427
23,289
52,480
28,918
23,562
49 Savings......................................
50
Federal (shares)...................
State (shares and deposits).
51
33,013
17,530
15,483
39,173
21,130
18,043
46,832
25,849
20,983
51,551
28,627
22,924
51,772
28,779
22,993
52,867
29,429
23,438
52,468
29,086
23,382
52,600 53,048
29,163 29,326
23,437 23,722
51,916
28,427
23,489
52,484
28,743
23,741
54,243
29,741
24,502
44
45
For notes see bottomof page A30.
A30
Domestic Financial Statistics □ M a y 1979
1.39 FED ER AL FISCAL A N D FIN A N C IN G OPERATIONS
Millions of dollars
Calendar year
Type o f account or operation
Transition
quarter
(JulySept.
1976)
Fiscal
year
1977
Fiscal
year
1978
1977
1978
1979
H2
HI
H2
Jan.
Feb.
Mar.
1
2
3
4
5
U.S. budget
Receipts1..............................................
Outlays1................................................
Surplus, or deficit ( —) ...................
Trust funds......................................
Federal funds 2...............................
81,772
94,729
-1 2 ,9 5 6
-1 ,9 5 2
-1 1 ,0 0 4
357,762
402,725
-4 4 ,9 6 3
7,833
-5 2 ,7 9 6
401,997
450,836
-4 8 ,8 3 9
12,693
-6 1 ,5 3 2
175,820
216,781
-4 0 ,9 6 1
4,293
-4 5 ,2 5 4
210,650
222,518
-1 1 ,8 7 0
4,334
-1 6 ,2 0 4
206,275
238,150
-3 1 ,8 7 5
11,755
-4 3 ,6 3 0
38,364
41,095
-2 ,7 3 1
-3 ,9 7 1
1,240
32,639
37,739
-5 ,1 0 0
2,188
-7 ,2 8 8
31,144
43,725
-1 2 ,5 8 1
-1 ,1 5 5
-1 1 ,4 2 6
6
7
Off-budget entities surplus, or
deficit ( —)
Federal Financing Bank outlays. . .
Other 3...................................................
-2 ,5 6 4
779
-8,201
-4 8 3
-10,614
287
-6,663
428
- 5 ,1 0 5
-7 9 0
-5 ,0 8 2
1,841
-6 9 3
-2 7 2
-995
62
- 1 ,6 3 9
498
-14,741
-5 3 ,6 4 7
-59,166
—47,196
-17,765
-3 5 ,1 1 7
- 3 ,6 9 6
-6 ,0 3 3
-13,722
18,027
53,516
59,106
40,284
23,374
30,308
3,312
-668
8,012
- 2 ,8 9 9
-3 8 7
-2 ,2 3 8
2,369
-3 ,0 2 3
3,083
4,317
2,597
-5,098
-5 1 1
3,381
1,428
-227
611
8,179
-1,478
-7 7 9
6,489
17,418
13,299
4,119
19,104
15,740
3,364
22,444
16,647
5,797
12,274
7,114
5,160
17,526
11,614
5,912
16,291
4,196
12,095
15,146
3,522
11,624
6,887
3.443
3.444
7,685
5,726
1,959
U.S. budget plus off-budget, in
cluding Federal Financing Bank
Surplus, or deficit ( —) .......................
Financed by:
9
Borrowing from the public..........
10
Cash and monetary assets (de
crease, or increase ( —) ) ........
11
Other 4..............................................
8
M emo items :
12 Treasury operating balance (level, end
of period)..........................................
13
Federal Reserve Banks.....................
14
Tax and loan accounts.....................
1 Effective June 1978, earned income credit payments in excess of
an individual’s tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2 Half years calculated as a residual o f total surplus/deficit and trust
fund surplus/deficit.
3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund; and Rural Telephone
Bank.
4 Includes accured interest payable to the public; deposit funds; mis
cellaneous liability (including checks outstanding) and asset accounts;
seignorage; increment on gold; net gain/loss for U.S. currency valuation
adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
S ource. “Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government,” Treasury Bulletin, and the Budget o f the United
States Government, Fiscal Year 1980„
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. government 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 Association of the
State o f 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 o f the
International Bank for Reconstruction and Development.
9 Data reflect benchmark revisions back to 1977.
10 Data for June, July, and August 1978 have been revised.
11 Data for 1977 and the first 6 months o f 1978 have been revised by
the American Council o f Life Insurance.
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 o f the American Council o f 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 percent o f credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.
Federal Finance
A31
1.40 U.S. B U D G ET RECEIPTS A N D O U TLA YS
Millions of dollars
Calendar year
Source or type
Transition
quarter
(JulySept.
1976)
Fiscal
year
1977
Fiscal
year
1978
1977
H2
1979
1978
HI
H2
Jan.
Feb.
Receipts
1 All sources1..............................................
81,772
357,762
401,997
175,820
210,650
206,275
38,364
32,639
31,144
2 Individual income taxes, n et..................
3
Withheld.............................................
4
Presidential Election Campaign
Fund...........................................
5
Nonwithheld......................................
6
Refunds1............................................
7 Corporation income taxes
8
Gross receipts....................................
9
R efunds..............................................
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 ..........................
38,800
32,949
157,626
144,820
180,988
165,215
82,911
75,480
90,336
82,784
98,854
90,148
23,667
15,843
14,509
16,292
8,255
16,194
1
6,809
958
37
42,062
29,293
39
47,804
32,070
1
9,397
1,967
36
37,584
30,068
3
10,777
2,075
7,866
42
5
1,037
2,825
10
3,119
11,068
9,808
1,348
60,057
5,164
65,380
5,428
25,121
2,819
38,496
2,782
28,536
2,757
2,539
392
1,706
424
9,879
578
25,760
108,683
123,410
52,347
66,191
61,064
9,429
13,614
10,373
21,534
88,196
99,626
44,384
51,668
51,052
8,098
11,528
9,315
269
2,698
1,259
4,014
11,312
5,162
4,267
13,850
5,668
316
4,936
2,711
3,892
7,800
2,831
369
6,727
2,917
341
478
512
322
1,286
478
321
198
540
4,473
1,212
1,455
1,612
17,548
5,150
7,327
6,536
18,376
6,573
5,285
7,413
9,284
2,848
2,837
3,292
8,835
3,320
2,587
3,667
9,879
3,748
2,691
4,260
1,520
630
485
486
1,436
527
426
846
1,434
621
449
712
15
16
17
18
Excise taxes............................................
Customs deposits..................................
Estate and gift taxes...........................
Miscellaneous receipts 5 .....................
Outlays 8
19 All types1 ...............................................
94,729
402,725
450,836
216,781
222,518
238,150
41,095
37,739
43,725
20 National defense.................................
21 International affairs...........................
22 General science, space, and
technology....................................
23 Energy...................................................
24 Natural resources and environment,
25 Agriculture...........................................
22,307
2,197
97,501
4,813
105,186
5,922
50,873
2,896
52,979
2,904
55,129
2,221
9,304
550
8,803
460
10,159
896
1,161
794
2,532
581
4,677
4,172
5,532
4,742
5,861
10,925
7,731
2,318
10,000
2,395
2,487
4,959
2,353
2,362
4,461
6,119
4,854
421
622
953
1,755
422
904
1,030
762
459
700
855
457
26 Commerce and housing credit.........
27 Transportation....................................
28 Community and regional
development................................
29 Education, training, employment,
and social services.....................
30 H ealth.....................................................
31 Income security1.................................
1,392
3,304
-4 4
14,636
3,325
15,444
-9 4 6
7,723
3,291
8,758
109
1,419
-5 5 3
1,095
173
1,257
1,340
6,286
11,000
4,924
5,928
6,108
800
625
773
5,162
8,721
32,797
20,985
38,785
137,915
26,463
43,676
146,212
10,800
19,422
71,081
12,792
21,391
75,201
13,676
23,942
73,305
2,467
4,149
12,959
2,075
3,894
13,300
2,578
4,231
14,415
32 Veterans benefits and services...........
33 Administration o f justice..................
34 General governm ent..........................
35 General-purpose fiscal assistance...,
36 Interest 6 ..............................................
37 Undistributed offsetting receipts 6*7
3,962
859
883
2,092
7,216
- 2 ,5 6 7
18,038
3,600
3,374
9,499
38,009
-1 5 ,0 5 3
18,974
3,802
3,777
9,601
43,966
-1 5 ,7 7 2
9,864
1,723
1,749
4,926
19,962
-8 ,5 0 6
9,603
1,946
1,803
4,665
22,280
-7 ,9 4 5
9,545
1,973
757
341
392
1,754
2,860
-5 1 6
1,622
352
300
81
4,099
- 1 ,5 3 0
2,717
347
435
67
3,807
-6 0 3
1 Effective June 1978, earned income credit payments in excess o f an
individual’s tax liability, formerly treated as income tax refunds, are
classified as outlays 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 Federal Reserve Banks and other miscel
laneous receipts.
6 Effective September 1976, “Interest” and “Undistributed Offsetting
""5 A ll
2,111
4,385
24,110
-8,200
Receipts” reflect the accounting conversion for the interest on special
issues for U.S. government accounts from an accrual basis to a cash basis.
7 Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. government contributions for
employee retirement.
8 For some types of 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 1980; data are not available for half-years
prior to 1978.
In addition, for some categories the table includes revisions in figures
published earlier.
A32
Domestic Financial Statistics □ M a y 1979
1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions o f dollars
1977
1976
1978
Item
Sept. 30
Dec. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding.......................
2 646.4
665.5
685.2
709.1
729.2
747.8
758.8
780.4
797.7
2 Public debt securities............... ..............
3
Held by public..................... ..............
4
Held by agencies................................
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
738.0
585.2
152.7
749.0
587.9
161.1
771.5
603.6
168.0
789.2
619.2
170.0
6
7
1 1 .6
1 2 .0
1 0 .8
2 9 .7
1.9
10.0
1.9
9 .0
1.8
10.3
8.5
1.8
1 0 .2
Held by public..................... ..............
Held by agencies................................
8.4
1.8
9 .9
8.1
1.8
9 .8
8 .0
1.8
8 .9
7.4
1.5
8 .5
7 .0
1.5
8 Debt subject to statutory lim it..............
635.8
654.7
675.6
700.0
720.1
739.1
750.2
772.7
790.3
9 Public debt securities.............................
10 Other debt1............................... ..............
634.1
1.7
652.9
1.7
673.8
1.7
698.2
1.7
718.3
1.7
737.3
1.8
748.4
1.8
770.9
1.8
788.6
1.7
11 M emo: Statutory debt lim it;...............
636.0
682.0
700.0
700.0
752.0
752.0
752.0
798.0
798.0
1 Includes guaranteed debt o f government agencies, specified participa
tion certificates, notes to international lending organizations, and District
o f Columbia stadium bonds.
2 Gross federal debt and agency debt held by the public increased
$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 ote. Data from Treasury Bulletin (U.S. Treasury Department).
1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership
Billions o f dollars, end o f period
Type and holder
1 Total gross public debt...................................
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing debt........................................
Marketable.......................................................
B ills................................................................
N otes.............................................................
Bonds.............................................................
Nonmarketable1..............................................
Convertible bonds2 ....................................
State and local government series...........
Foreign issues 3............................................
Government.............................................
Public.........................................................
Savings bonds and notes...........................
Government account series4 ....................
1974
1975
1977
1976
1979
1978
Feb.
Mar.
Apr.
492.7
576.6
653.5
718.9
789.2
790.5
792.2
796.8
796.4
491
282
119
129
33
208
575.7
363.2
157.5
167.1
38.6
212.5
2.3
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
22.3
715.2
459.9
161.1
251.8
47.0
255.3
782.4
487.5
161.7
265.8
60.0
294.8
789.5
496.5
162.3
272.8
61.4
293.0
791.2
498.0
162.4
271.4
64.2
293.3
792.3
500.4
165.5
270.8
64.1
? 291.9
795.4
504.6
163.7
275.3
65.5
290.8
24.3
29.6
28.0
24.2
30.3
27.5
24.2
28.2
25.4
67.9
119.4
72.3
129.7
77.0
139.8
80.9
157.5
80.8
155.2
80.8
157.6
2.8
24.2
28.2
24.0
4 .2
80.8
153.8
24.0
25.4
21.3
4 .2
80.8
158.2
4 .4
.9
2.
22.
22.
\
63.
119.
1.2
21.6
21.6
0
0
2.2
13.9
22.2
22.2
0
2.2
1.6
2.2
2.8
2.2
15 Non-interest-bearing debt.. . . .....................
1.1
1.0
1.1
3.7
6.8
1.0
1.0
By holder5
16 U.S. government agencies and trust funds
17 Federal Reserve Banks..................................
138.2
80.5
139.1
89.8
147.1
97.0
154.8
102.5
170.0
109.6
167.7
101.3
170.1
103.5
271.0
55.6
2 .5
349.4
85.1
4 .5
9 .5
461.3
101.4
5.9
15.1
22.7
55.2
508.6
93.4
5.2
15.0
20.6
68.6
521.4
95.0
5.2
15.1
22.5
67.9
518.6
94.0
5.2
15.1
23.5
34.2
409.5
103.8
5.9
12.7
27.7
41.6
18
19
20
21
22
23
Private investors....................... .......................
Commercial banks................... .......................
Mutual savings banks....................................
Insurance companies......................................
Other corporations.........................................
State and local governments........................
24
25
Individuals
Savings bonds..............................................
Other securities............................................
63.4
21.5
67.3
2 4.0
72.0
28.8
76.7
28.6
80.7
30.0
80.6
30.4
80.6
30.8
26 Foreign and international6...........................
27 Other miscellaneous investors7 ...................
22.8
58.8
66.5
38.0
78.1
38.9
109.6
46.1
137.8
57.4
142.2
62.5
137.0
63.8
6.2
11.0
2 9.2
20.2
1 Includes (not shown separately): Securities issued to the Rural
Electrification Administration, depositary 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 l l/t
percent, 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 dollar-denominated and foreign currency denomin
ated series held by foreigners.
4 Held almost entirely by U.S. government agencies and trust funds.
5 Data for Federal Reserve Banks and U.S. government agencies and
trust funds are actual holdings; data for other groups are Treasury
estimates.
2.2
2.2
68.6
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 government
deposit accounts, and government sponsored agencies.
8 Includes a nonmarketable Federal Reserve special certificate for $2.6
billion.
N ote. Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement o f the Public Debt o f
the United States (U.S. Treasury Department); data by holder from
Treasury Bulletin.
Federal Finance
1.43 U.S. G O VER N M EN T M AR KETABLE SECURITIES
Par value; millions of dollars, end of period
Type o f holder
1977
A33
Ownership, by maturity
1979
1978
1977
Jan.
1979
1978
Feb.
Jan.
All maturities
Feb.
1 to 5 years
1
459,927
487,546
496,529
497,976
151,264
162,886
168,879
169,352
2 U.S. government agencies and trust funds.............................
3 Federal Reserve Banks.................................................................
14,420
101,191
12,695
109,616
12,694
101,279
12,693
103,486
4,788
27,012
3,310
31,283
3,310
31,577
2,710
34,208
4 Private investors............................................................................. 344,315
5
75,363
6
4,379
7
12,378
8
9,474
9
4,817
10
15,495
11
All others.................................................................................... 222,409
365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288
382,556
67,445
3,457
11,838
8,700
3,983
18,418
268,716
381,797
68,344
3,408
11,844
9,048
3,923
18,589
266,641
119,464
38,691
2,112
4,729
3,183
2,368
3,875
64,505
128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433
133,992
38,191
1,905
4,764
3,667
2,279
3,906
79,281
132,435
38,252
1,752
5,033
3,112
2,149
3,791
78,246
Total, within 1 year
5 to 10 years
12 All holders.......................................................................................
230,691
228,516
230,075
233,525
45,328
50,400
50,396
45,163
13 U.S. government agencies and trust funds.............................
14 Federal Reserve Banks.................................................................
1,906
56,702
1,488
52,801
1,488
44,310
2,088
45,835
2,129
10,404
1,989
14,809
1,989
14,717
1,989
11,875
15 Private investors............................................................................
16
17
18
Insurance companies................................................................
19
Nonfinancial corporations.......................................................
20
21
22
All others....................................................................................
172,084
29,477
1,400
2,398
5,770
2,236
7,917
122,885
174,227
20,608
817
1,838
4,048
1,414
8,194
137,309
184,277
19,284
778
1,856
4,385
1,537
7,801
148,637
185,602
20,220
820
1,962
5,249
1,608
8,009
147,735
32,795
6,162
584
3,204
307
143
1,283
21,112
33,601
7,490
496
2,899
369
89
1,588
20,671
33,690
7,508
496
2,962
345
90
1,605
20,683
31,299
7,299
450
2,571
320
89
1,511
19,058
Bills, within 1 year
10 to 20 years
23 All holders.......................................................................................
161,081
161,747
162,286
162,416
12,906
19,800
21,234
21,190
24 U.S. government agencies and trust funds.............................
25 Federal Reserve Banks.................................................................
32
42,004
2
42,397
2
33,959
1
35,467
3,102
1,510
3,876
2,088
3,876
2,077
3,876
2,119
26 Private investors.............................................................................
27
Commercial banks....................................................................
28
29
Insurance companies.................................................................
30
31
Savings and loan associations.................................................
32
State and local governments...................................................
33
All others....................................................................................
119,035
11,996
484
1,187
4,329
806
6,092
94,152
119,348
5,707
150
753
1,792
262
5,524
105,161
138,325
4,490
123
770
2,123
303
5,161
115,354
126,948
4,877
100
695
2,522
294
5,133
113,326
8,295
456
137
1,245
133
54
890
5,380
13,836
956
143
1,460
86
60
1,420
9,711
15,282
1,117
153
1,478
159
61
1,459
10,855
15,195
1,045
153
1,478
160
61
1,587
10,712
Other, within 1 year
Over 20 years
69,610
66,769
67,789
71,109
19,738
25,944
25,944
28,746
35 U.S. government agencies and trust funds.............................
36 Federal Reserve Banks.................................................................
1,874
14,698
1,487
10,404
1,487
10,350
2,087
10,368
2,495
5,564
2,031
8,635
2,031
8,599
2,030
9,449
37 Private investors............................................................................
Commercial banks....................................................................
38
39
Mutual savings banks...............................................................
40
Insurance companies.................................................................
41
Nonfinancial corporations.......................................................
42
Savings and loan associations.................................................
43
State and local governments...................................................
44
All others....................................................................................
53,039
15,482
916
1,211
1,441
1,430
1,825
28,733
54,879
14,901
667
1,084
2,256
1,152
2,670
32,149
55,952
14,794
655
1,086
2,262
1,234
2,640
"33,282
58,654
15,343
720
1,267
2,727
1,313
2,876
34,409
11,679
578
146
802
81
16
1,530
8,526
15,278
1,446
126
774
135
17
3,616
9,164
15,315
1,346
125
777
144
16
3,647
9,260
17,267
1,528
133
800
208
16
3,692
10,890
N ote. Direct public issues only. Based on Treasury Survey o f Owner
ship from Treasury Bulletin (U.S. Treasury Department).
Data complete for U.S. government agencies and trust funds and
Federal Reserve 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 Feb. 28, 1979:
(1) 5,461 commercial banks, 463 mutual savings banks, and 728 insurance
companies, each about 80 percent; (2) 435 nonfinancial corporations and
485 savings and loan associations, each about 50 percent; and (3) 491
state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A34
Domestic Financial Statistics □ M ay 1979
1.44 U.S. G O VER N M EN T SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
1976
1 U.S. government securities.. . 10,449
1977
Transactions
1979
1978
1979, week ending Wednesday
Jan.
Feb.
Mar.
Jan. 31
Feb. 7
Feb. 14
Feb. 21
Feb. 28
Mar. 7
10,838
10,285
10,778
11,612
9,882
13,874
13,331
12,677
8,861
11,240
11,664
6,746
237
2,320
1,148
388
6,173
392
1,889
965
6,016
464
2,344
813
1,140
6,261
344
2,595
1,185
1,227
6,204
320
1,744
825
789
7,010
630
3,820
7,437
284
3,009
1,446
1,155
6,330
261
2,422
1,665
5,143
316
1,768
798
836
5,925
492
2,982
849
992
7,116
344
2,191
985
1,028
By maturity
Bills............................................
Other within 1 year................
1-5 years..................................
5-10 years................................
Over 10 years...........................
2,317
1,019
229
By type o f customer
U.S. government securities
dealers...............................
U.S. government securities
brokers.............................
Commercial banks.................
All others1...............................
1,360
1,267
1,135
1,037
1,235
1,170
1,361
1,267
1,283
989
1,360
1,505
3,407
2,426
3,257
3,709
2,295
3,568
3,838
1,804
3,508
4,526
1,599
3,616
4,750
1,764
3,863
3,651
1,565
3,496
5,900
2,031
4,582
5,845
2,196
4,023
5,182
1,758
4,455
3,483
1,270
3,119
4,323
1,731
3,826
4,322
1,880
3,957
11 Federal agency securities. . . .
1,548
1,729
1,894
2,477
2,351
2,099
3,016
2,383
2,185
2,235
2,544
2,466
2
3
4
5
6
7
8
9
10
6,676
210
866
1 Includes, among others, all other dealers and brokers in commodities
and securities, foreign banking agencies, and the Federal Reserve System.
N ote. Averages for transactions are based on number o f trading days
in the period.
1,102
1,312
2,000
Transactions are market purchases and sales of U.S. government
securities dealers reporting to the Federal Reserve Bank o f New York.
The figures exclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, or purchases or
sales o f securities under repurchase, reverse repurchase (resale), or similar
contracts.
1.4:5 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing
Par value; averages o f daily figures, in millions o f dollars
1979
Item
1976
1977
1979, week ending Wednesday
1978
Jan.
Feb.
Mar.
Jan. 10
Jan. 17
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Positions2
1 U.S. government securities...
7,592
5,172
2,656
3,549
3,077
1,849
3,254
3,583
4,144
4,238
4,419
3,639
2
3
4
5
6
Bills........................................
Other within 1 year...........
1-5 years..............................
5-10 y e a r s .................................
Over 10 years.......................
6,290
188
515
402
198
4,772
99
60
92
149
2,452
260
-9 2
40
-4
3,045
239
115
15
134
3,060
-7 2
-3 5 5
152
293
2,471
-2 6 2
-4 7 1
-2 0
131
2,420
247
159
87
341
3,143
251
-5 0
41
198
3,691
282
122
-6 4
113
3,874
201
158
-3 6
40
4,382
153
-6 0
71
-1 2 6
2,990
77
-4 2 6
410
589
7 Federal agency securities. . . .
729
693
606
609
761
734
379
417
486
1,234
1,220
861
Sources o f financing3
8 All sources...............................
Commercial banks
9 New York City.......................
10 Outside New York City........
8,715
9,877
10,204
13,157
13,370
12,378
11,837
13,141
14,174
14,361
14,174
13,407
1,896
1,660
1,479
3,681
1,313
1,987
2,423
4,155
599
2,174
2,370
5,052
2,136
2,367
2,756
5,898
2,189
2,402
2,602
6,176
874
2,453
2,748
6,304
1,912
2,062
2,818
5,045
1,881
2,425
2,713
6,121
2,459
2,367
2,824
6,525
2,444
2,914
2,775
6,228
2,376
2,592
2,695
6,511
2,161
2,318
2,535
6,392
1 All business corporations except commercial banks and insurance
companies.
2 New 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 re
purchase 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 agreements to resell.
3 Total amounts outstanding o f funds borrowed by nonbank dealer
firms and dealer departments o f commercial banks against U.S. govern
ment 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.
Federal Finance
1.46 FEDER AL A N D FED ER A LLY SPONSORED C R E D IT AGENCIES
Millions of dollars, end of period
Agency
1976
1977
A35
Debt Outstanding
1978
1978
1979
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
103,325
109,924
131,982
125,397
127,468
129,139
131,982
129,849
129,865
2 Federal agencies.........................................................
3
Defense Department1..........................................
4
Export-import Bank 2•3........................................
5
Federal Housing Administration4.....................
6
Government National Mortgage Association
participation certificates5............................
7
Postal Service®.......................................................
8
Tennessee Valley Authority................................
9
United States Railway Association6.................
21,896
1,113
7,801
575
22,760
983
8,671
581
23,488
868
8,711
588
23,139
897
8,709
601
23,279
897
8,704
598
23,073
- 876
8,392
594
23,488
868
8,711
588
23,431
864
8,515
582
23,485
859
8,499
586
4,120
2,998
5,185
104
3,743
2,431
6,015
336
3,141
2,364
7,460
356
3,166
2,364
7,045
357
3,166
2,364
7,195
355
3,166
2,364
7,325
356
3,141
2,364
7,460
356
3,141
2,364
7,620
345
3,141
2,364
7,690
346
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.......................................
17
Student Loan Marketing Association7.............
18
Other........................................................................
81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2
87,164
18,345
1,686
31,890
19,118
11,174
4,434
515
2
108,494
27,563
2,262
41,080
20,360
11,469
4,843
915
2
102,258
25,025
2,063
38,353
20,198
11,555
4,317
745
2
104,189
25,395
2,063
39,776
20,360
11,554
4,264
775
2
106,066
26,777
2,062
39,814
20,360
11,548
4,668
835
2
108,494
27,563
2,262
41,080
20,360
11,469
4,843
915
2
106,418
27,677
2,262
41,917
19,275
9,978
4,392
915
2
106,380
28,447
2,461
42,405
19,275
8,958
3,852
980
2
28,711
38,580
51,298
48,078
49,212
49,645
51,298
52,154
53,221
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,898
2,114
915
5,635
356
6,568
2,114
745
5,220
357
6,568
2,114
775
5,370
355
6,568
2,114
835
5,500
356
6,898
2,114
915
5,635
356
6,898
2,114
915
5,795
345
6,898
2,114
980
5,865
346
10,750
1,415
4,966
16,095
2,647
6,782
23,825
4,604
6,951
22,275
4,192
6,607
23,050
4,407
6.573
23,050
4,489
6,733
23,825
4,604
6,951
24,445
4,680
6,962
25,160
4,735
7,123
M emo items :
19 Federal Financing Bank debt6*8 .............................
Leading to federal and federally sponsored
agencies
20 Export-import Bank3...............................................
21 Postal Service6 ...........................................................
22 Student Loan Marketing Association7.................
23 Tennessee Valley Authority....................................
24 United States Railway Association6.....................
Other lending9
25 Farmers Home Administration..............................
26 Rural Electrification Administration....................
27 Other.............................................................................
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 o f 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 a y 1979
1.47 NEW SECU R ITY ISSUES of State and Local Governments
Millions of dollars
Type o f issue or issuer,
or use
1 All issues, new and refunding 1............
2
3
4
5
Type o f issue
General obligation..................................
Revenue....................................................
Housing Assistance Administration 2.
U.S. government loans........................
1976
1978
1978
1977
Oct.
Nov.
1979
Jan.
Mar.
35,313
46,769
48,607
3,244
4,328
3,694
2,823
2,589
4,495
18,040
17,140
18,042
28,655
17,854
30,658
1,148
2,083
1,168
3,152
1,698
1,992
1,301
1,501
934
1,651
1,030
3,457
21
133
72
95
Type o f issuer
6 State......................................................................................
7 Special district and statutory authority........................
8 Municipalities, counties, townships, school districts.
7,054
15,304
12,845
6,354
21,717
18,623
6,632
24,156
17,718
552
1,616
1,061
343
2,848
1,129
497
2,148
1,043
467
953
1,382
580
1,190
813
436
2,873
1,179
9 Issues for new capital, total.............................................
32,108
36,189
37,629
3,160
4,216
3,379
2,794
2,562
4,484
4,900
2,586
9,594
6,566
483
7,979
5,076
2,951
8,119
8,274
4,676
7,093
5,003
3,460
9,026
10,494
3,526
314
422
831
1,169
249
175
463
259
1,241
817
323
1,113
319
337
705
1,126
276
616
483
248
541
765
265
492
411
209
729
791
171
251
10
11
12
13
14
15
Use of proceeds
Education............................
Transportation...................
Utilities and conservation.
Social welfare.....................
Industrial aid ......................
Other purposes...................
6,120
267
202
2,021
1,146
217
631
Source. Public Securities Association.
1 Par amounts o f long-term issues based on date o f 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 NEW SECURITY ISSUES of Corporations
Millions o f dollars
Type o f issue or issuer,
or use
1978
1976
1977
1978
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 All issues 1...................................
53,488
54,205
45,309
4,226
3,311
3,832
3,685
3,207
4,401
2 Bonds............................................
42,380
42,193
35,178
3,718
2,529
2,905
2,516
2,481
3,281
Type o f offering
3 Public............................................
4 Private placement.......................
26,453
15,927
24,186
18,007
19,939
15,239
2,177
1,541
1,497
1,032
1,610
1,295
1,651
865
1,608
873
1,227
2,054
Industry group
Manufacturing............................
Commercial and miscellaneous
Transportation...........................
Public utility................................
Communication..........................
Real estate and financial...........
13,264
4,372
4,387
8,297
2,787
9,274
12,510
5,887
2,033
8,261
3,059
10,438
8,839
4,670
1,972
7,112
3,306
9,276
675
417
235
768
326
1,296
485
414
115
521
546
448
823
454
135
912
205
375
405
487
67
819
290
446
805
96
384
456
627
1,031
694
123
383
285
765
11 Stocks...........................................
11,108
12,013
10,131
508
782
927
1,169
726
1,120
Type
12 Preferred.................................... ..
13 Common......................................
2,803
8,305
3,878
8,135
2,629
7,502
57
451
157
625
127
800
1,122
47
149
577
424
696
2,237
1,183
24
1,265
1,838
418
6,058
1,379
1,054
1,219
1,812
263
4,973
249
1,614
167
167
40
31
27
76
236
148
168
35
42
303
113
271
175
216
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing............................
Commercial and miscellaneous
Transportation......................... ..
Public utility................................
Communication..........................
Real estate and financial...........
6,121
776
771
1 Figures, which represent gross proceeds o f issues maturing in more
than one year, sold for cash in the United States, are principal amount or
number o f units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act o f 1933, employee stock plans, investment
110
0
354
6
75
12
426
10
164
90
112
0
800
0
167
112
111
12
377
1
190
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
Source. Securities and Exchange Commission.
Corporate Finance
A37
1.49 OPEN-END IN V ESTM EN T COMPANIES Net Sales and Asset Position
Millions of dollars
1978
Item
1977
1979
1978
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
INVESTMENT COMPANIES
excluding money market funds
1
2
3
Sales o f own shares1............................................
Redemptions o f own shares2 ............................
Net sales.................................................................
6,401
6,027
357
6,645
7,231
-5 8 6
519
673
-1 5 4
463
607
-1 4 4
587
439
148
602
545
57
648
607
41
451
548
-9 7
523
646
-1 2 3
4
5
6
Assets3 ....................................................................
Cash position4 ......................................................
Other.......................................................................
45,049
3,274
41,775
44,980
4,507
40,473
48,151
3,703
44,448
43,462
3,793
39,669
44,242
4,299
39,943
44,980
4,507
40,473
46,591
4,624
41,967
45,016
4,851
40,165
47,051
4,746
42,305
1 Includes reinvestment of investment income dividends. Excludes
reinvestment o f capital gains distributions and share issue o f 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 o f period, less current liabilities.
4 Also includes all U.S. government securities and other short-term
debt securities.
N ote. Investment Company Institute data based on reports o f mem
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering o f securities.
1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions o f dollars; quarterly data are at seasonally adjusted annual rates.
1977
Account
1976
1977
1978
197-8
Q2
Q3
Q4
Q1
Q2
Q3
Q4
1 Profits before ta x ..........................................................
155.9
173.9
202.1
175.1
177.5
178.3
172.1
205.5
205.4
225.3
2 Profits tax liability........................................................
3 Profits after tax.............................................................
64.3
91.6
71.8
102.1
83.9
118.2
72.3
102.8
72.8
104.7
73.9
104.4
70.0
102.1
85.0
120.5
86.2
119.2
94.5
130.8
4 Dividends........................................................................
5 Undistributed profits...................................................
37.9
53.7
43.7
58.4
49.3
68.9
42.7
60.1
44.1
60.6
46.3
58.1
47.0
55.1
48.1
72.4
50.1
69.1
51.9
78.9
6 Capital consumption allowances...............................
7 Net cash flow.................................................................
97.1
150.8
106.0
164.4
114.4
183.3
105.0
165.1
107.6
168.2
109.3
167.4
111.3
166.4
113.3
185.7
115.4
184.5
117.5
196.4
Source. Survey o f Current Business (U.S. Department of Commerce.)
A38
Domestic Financial Statistics □ M a y 1979
1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities
Billions o f dollars, except for ratio
1976
Account
1974
1977
1978
1975
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3
734.6
756.3
823.1
842.0
856.4
880.3
900.1
924.2
953.5
992.4
2
3
4
5
6
Cash..........................................................................
U.S. government securities.................................
Notes and accounts receivable............................
Inventories...............................................................
Other........................................................................
73.0
11.3
265.5
318.9
65.9
80.0
19.6
272.1
314.7
69.9
86.8
26.0
292.4
341.4
76.4
80.8
26.8
304.1
352.1
78.3
83.1
22.1
312.8
358.8
79.6
83.4
21.5
326.9
367.5
81.0
94.2
20.9
325.7
375.0
84.3
88.5
20.9
338.3
389.7
86.8
90.9
19.7
356.8
399.1
87.0
91.4
18.6
377.8
415.5
89.0
451.8
446.9
487.5
502.6
509.5
528.9
543.2
570.4
590.8
624.5
8
9
Notes and accounts payable................................
Other.........................................................................
272.3
179.5
261.2
185.7
273.2
214.2
280.2
222.4
286.8
222.7
297.8
231.1
306.8
236.3
317.2
253.2
331.3
259.4
349.9
274.6
10 Net working capital....................................................
282.8
309.5
335.6
339.5
346.9
351.4
357.0
353.8
362.7
367.9
11 M emo: Current ratio1...............................................
1.626
1.693
1.688
1.675
1.681
1.664
1.657
1.620
1.614
1.589
1
i Ratio of total current assets to total current liabilities.
Source. Federal Trade Commission.
N ote. For a description o f this series see “Working Capital o f Non
financial Corporations” in the July 1978 Bulletin, pp. 533-37.
1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions o f dollars; quarterly data are at seasonally adjusted annual rates.
1977
Industry
1977
1978
1979
1978
Q3
Q4
Ql
Q2
Q3
Q4
Ql
Q22
1 All industries................................................................
135.72
153.60
140.38
138.11
144.25
150.76
155.41
163.96
164.23
167.52
Manufacturing
2 Durable goods industries...........................................
3 Nondurable goods industries...................................
27.75
32.33
31.59
35.86
29.23
33.79
28.19
33.22
28.72
32.86
31.40
35.80
32.25
35.50
33.99
39.26
34.18
37.78
37.09
38.81
4.49
4.81
4.74
4.50
4.45
4.81
4.99
4.98
5.35
4.89
2.82
1.63
2.55
3.33
2.34
2.42
3.20
1.69
1.96
2.80
1.76
2.32
3.35
2.67
2.44
3.09
2.08
2.23
3.38
2.20
2.47
3.49
2.39
2.55
3.77
3.28
3.01
3.11
2.36
2.89
21.57
4.21
15.43
22.95
24.71
4.72
18.15
25.67
21.90
4.32
16.40
23.14
22.05
4.18
15.82
23.27
23.15
4.78
17.07
24.76
23.83
4.62
18.18
24.71
24.92
4.70
18.90
26.09
26.95
4.78
18.46
27.12
27.06
5.24
I AA *A
Nonmanufacruting
4 M ining...........................................................................
Transportation:
5
Railroad....................................................................
6
Air..............................................................................
7
Other..........................................................................
Public utilities:
8
Electric......................................................................
9
Gas and other.........................................................
10 Communication...........................................................
11 Commercial and other1............................................
1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
Note. Estimates for corporate and noncorporate business, excluding
26.92
4.98
t O. *rO
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source. Survey of Current Business (U.S. Dept, of Commerce).
Corporate Finance
1.521 DOM ESTIC FIN A N C E COMPANIES
A39
Assets and Liabilities
Billions o f dollars, end o f period
1973
Account
1974
1977
1976
1975
1978
Q3
Q4
Ql
Q2
Q3
Q4
44.5
57.6
12.8
89.3
2 .2
1.2
15.0
47.1
59.5
106.6
14.1
92.6
2.9
1.3
16.2
49.7
58.3
108.0
14.3
93.7
2 .7
1.8
17.1
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
ASSETS
Accounts receivable, gross
Consumer.................................................................
Business....................................................................
Total......................................................................
L ess: Reserves for unearned income and losses
Accounts receivable, net...........................................
Cash and bank deposits............................................
Securities.......................................................................
All other........................................................................
35.4
32.3
6 7 .7
8.4
59.3
2 .6
.8
10.6
36.1
37.2
73.3
9 .0
64.2
3.0
.4
12.0
36.0
39.3
75.3
9 .4
65.9
2.9
1.0
11.8
38.6
44.7
83.4
10.5
72.9
2 .6
1.1
12.6
42.3
50.6
92.9
11.7
81.2
2.5
1.8
14.2
44 .0
55.2
99.2
12.7
86.5
2 .6
.9
14.3
9 Total assets...................................................................
73.2
79.6
81.6
89.2
99.6
104.3
107.7
112.9
115.3
122.4
7 .2
19.7
9 .7
20.7
8.0
22.2
6.3
23.7
5.4
25.7
5.9
29.6
5.8
29.9
5.4
31.3
5.4
29.3
6.5
34.5
4 .6
24.6
5 .6
4.9
26.5
5.5
4.5
27.6
6.8
5 .4
32.3
8.1
5.4
34.8
13.7
6 .2
36.0
11.5
5.3
38.0
12.9
6.6
40.1
13.6
6.8
41.3
15.2
8.1
43.6
12.6
1
2
3
4
5
6
7
8
1 0 2 .1
LIABILITIES
10 Bank loans....................................................................
11 Commercial paper......................................................
Debt:
12
Short-term, n.e.c.....................................................
13
Long-term, n.e.c......................................................
14
Other..........................................................................
15 Capital, surplus, and undivided profits.................
11.5
12.4
12.5
13.4
14.6
15.1
15.7
16.0
17.3
17.2
16 Total liabilities and capital........................................
73.2
79.6
81.6
89.2
99.6
104.3
107.7
112.9
115.3
122.4
N ote. Components may not add to totals due to rounding.
1.522 DOMESTIC FINANCE COMPANIES Business Credit
Millions o f dollars, seasonally adjusted except as noted
Type
Changes in accounts
receivable
Accounts
receivable
outstand
ing Feb. 28,
19791
1979
1978
Dec.
Jan.
1979
1978
Feb.
Repayments
Extensions
1979
1978
Dec.
Jan.
Feb.
Dec.
Jan.
Feb.
1 Total........................................................................
65,248
1,271
860
756
17,680
16,160
16,858
16,409
15,300
16,102
2 Retail automotive (commercial vehicles)........
3 Wholesale automotive.........................................
4 Retail paper on business, industrial, and
farm equipment............................................
5 Loans on commercial accounts receivable. . .
}
6 Factored commercial accounts receivable.. . .
7 All other business credit....................................
14,681
14,493
245
551
145
1,156
183
655
1,308
6,967
1,231
6,723
1,283
7,080
1,063
6,416
1,086
5,567
1,100
6,425
20
262
32
161
-4 2 5
-8 4
1,790
( 4,110
-1 0 8 X
1,550
1,955
110
1,012
} 5,261
1,933
1,123
5,375
1,997
1,770
j 3,848
f 1,518
1,794
1,437
| 5,234
1,976
1,207
5,483
1,887
1Not seasonally adjusted.
16,162
6,693
13,219
(
{
}
27
-4 3
\
2 Beginning January 1979 the categories “Loans on commercial ac
counts receivable” and “Factored commercial accounts receivable” are
combined.
A40
Domestic Financial Statistics □ M a y 1979
1.53 M O R TG AG E M ARKETS
Millions of dollars; exceptions noted.
1978
Item
1976
1977
1979
1978
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Terms and yields in primary and secondary markets
PRIM ARY MARKETS
Conventional mortgages on new homes
Terms1
Maturity (years)....................................................
Fees and charges (percent o f loan amount)2. ..
Contract rate (percent per annum)..................
48 .4
35.9
74.2
27.2
1.44
8.76
54.3
40.5
76.3
27.9
1.33
8.80
62.6
45.9
75.3
28.0
1.39
9.30
66.8
48.6
74.4
28.0
1.37
9.60
65.1
47.5
74.4
27.9
1.40
9.63
68.1
49.6
75.1
28.1
1.49
9.76
71.9
52.0
74.7
28.6
1.56
9.92
68.3
49.5
74.5
28.6
1.56
9.94
68.1
49.9
7 5.4
28.5
1.63
10.02
Yield (percent per annum)
FHLBB series 3.......................................................
H U D series4...........................................................
8.99
8.99
9.01
8.95
9.54
9.68
9.83
9.95
9.87
10.10
10.02
10.30
10.18
10.30
10.20
10.35
10.30
10.35
8.82
8.17
8.68
8.04
9.70
8.98
9.93
9.25
9.99
9.39
10.16
9.54
10.17
9.67
10.17
9.67
10.19
9.70
8.99
9.11
8.73
8.98
9.77
10.01
10.03
10.19
10.30
10.56
10.50
10.85
10.70
11.07
10.54
11.04
10.54
10.94
2
Amount o f loan (thous. dollars)........................
4
5
6
7
8
SECONDARY MARKETS
Yields (percent per annum)
FNM A auctions7
Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
Mortgage holdings (end o f period)
13 Total............................................................ ..
14
FHA-insured..............................................
15
VA-guaranteed..........................................
16
Conventional..............................................
32,904
18,916
9,212
4,776
34,370
18,457
9,315
6,597
43,311
21,243
10,544
11,524
41,957
20,625
10,565
10,767
42,590
20,929
10,535
11,126
43,311
21,243
10,544
11,524
44,329
21,704
10,578
12,046
45,155
21,967
10,606
12,582
46,140
22,601
10,616
13,193
Mortgage transactions (during period)
17 Purchases.........................................................
18 Sales..................................................................
3,606
86
4,780
67
12,303
5
1,053
920
974
1,280
1,173
1,291
Mortgage commitments*
19 Contracted (during period).......................
20 Outstanding (end o f period).......................
6,247
3,398
9,729
4,698
18,960
9,201
1,900
9,547
1,275
9,525
1,051
9,201
479
8,161
388
7,381
565
6,573
4 ,9 2 9 .8
2.7 8 7 .2
7.974.1
4.846.2
12,978
6,747.2
1.964.8
832.4
788.0
321.8
627.0
319.6
304.9
155.4
210.6
161.2
508
284.4
2 ,5 9 5 .7
1.879.2
5.675.2
3,917.8
9,933.0
5,110.9
1.156.8
495.6
861.4
386.8
417.4
220.9
113.5
58.1
63.0
45.4
144.9
113.5
Mortgage holdings (end o f period) 10
25 Total.................................................................
26
FH A /V A .....................................................
27
Conventional.............................................
4,269
1,618
2,651
3,276
1,395
1,881
3,064
1,243
1,822
2,867
1,594
1,273
3,022
1,257
1,766
3,064
1,243
1,822
3,263
1,231
2,033
3,207
1,989
1,220
3,510
1,260
2,250
Mortgage transactions (during period)
28 Purchases.........................................................
29 Sales.............................................. ..................
1,175
1,396
3,900
4,131
6,524
6,211
791
369
763
581
596
540
498
317
300
r494
350
116
Mortgage commitments11
30 Contracted (during period)........................
31 Outstanding (end o f period).......................
1,477
333
5,546
1,063
7,451
1,410
547
1,716
706
1,617
455
1,410
374
1,248
357
1,177
547
1,342
Auction o f 4-month commitments to buy—
Government-underwritten loans
Offered9.......................................................
Accepted................................ .....................
Conventional loans
23
Offered9.......................................................
24
Accepted............................................ .. • •.
21
22
0
0
0
0
0
0
FEDERAL HOME LOAN
MORTGAGE CORPORATION
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
Corporation.
2 Includes all fees, commissions, discounts, and “points” paid (by the
borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepay
ment 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, o f 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 of
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 in 12 years on pools o f 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages o f 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 FN M A ’s
free market auction system, and through the FNM A-GNM 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.
Real Estate Debt
A41
1.54 M O R TG AG E D EB T O U TS TA N D IN G
Millions of dollars, end of period
Type o f holder, and type o f property
1974
1975
1976
1978
1977
Ql
Q2
Q3
Q4*>
1 All holders.......................................................
2
1- to 4-family............................................
3
Multifamily................................................
4
Commercial...............................................
5
Farm...........................................................
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
1,023,505
656,566
111,841
189,274
65,824
1,051,908
676,573
113,915
193,355
68,065
1,092,451
706,230
116,419
198,926
70,876
1,133,122
734,097
119,207
206,045
73,773
1,169,522
759,617
121,928
211,810
76,167
6 Maior financial institutions.........................
7
Commercial banks1.................................
8
1- to 4-family........................................
9
Multifamily............................................
10
Commercial...........................................
11
Farm.......................................................
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
745,011
178,979
105,115
9,215
56,898
7,751
764,614
184,423
108,699
9,387
58,407
7,930
794,009
194,469
115,389
9,925
60,950
8,205
822,184
205,445
121,911
10,478
64,386
8,670
846,788
213,845
126,896
10,906
67,019
9,024
12
13
14
15
16
Mutual savings banks.............................
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
Farm.......................................................
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
88,104
57,637
15,304
15,110
53
89,800
58,747
15,598
15,401
54
91,535
59,882
15,900
15,698
55
93,403
61,104
16,224
16,019
56
95,044
62,178
16,509
16,300
57
17
18
19
20
Savings and loan associations...............
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
249,301
200,987
23,808
24,506
278,590
223,903
25,547
29,140
323,130
260,895
28,436
33,799
381,163
310,686
32,513
37,964
392,428
320,064
33,592
38,772
407,965
334,164
34,351
39,450
420,971
345,232
35,446
40,293
432,922
355,291
36,452
41,179
21
22
23
24
25
Life insurance companies.......................
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
Farm.......................................................
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
96,765
14,727
18,807
54,388
8,843
97,963
14,476
18,851
55,426
9,210
100,040
14,129
18,745
57,463
9,703
102,365
14,189
18,803
59,268
10,105
104,971
14,550
19,284
60,782
10,361
26 Federal and related agencies......................
27
Government National Mortgage Assn.
1- to 4-family........................................
28
29
Multifamily............................................
58,320
4,846
2,248
2,598
66,891
7,438
4,728
2,710
66,753
4,241
1,970
2,271
70,006
3,660
1,548
2,112
72,014
3,291
948
2,343
73,991
3,283
922
2,361
78,672
3,560
897
2,663
82,086
3,610
910
2,700
30
31
32
33
34
Farmers Home Admin............................
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
Farm.......................................................
1,432
759
167
156
350
1,109
208
215
190
496
1,064
454
218
72
320
1,353
626
275
149
303
1,179
202
408
218
351
618
124
102
104
288
1,384
460
240
251
433
1,084
360
188
197
339
35
36
37
Federal Housing and Veterans admin..
1- to 4-family........................................
Multifamily............................................
4,015
2,009
2,006
4,970
1,990
2,980
5,150
1,676
3,474
5,212
1,627
3,585
5,219
1,585
3,634
5,225
1,543
3,682
5,295
1,565
3,730
5,365
1,587
3,778
38
39
40
Federal National Mortgage Assn.........
1- to 4-family........................................
Multifamily............................................
29,578
23,778
5,800
31,824
25,813
6,011
32,904
26,934
5,970
34,369
28,504
5,865
36,029
30,208
5,821
38,753
32,974
5,779
41,189
35,437
5,752
43,311
37,579
5,732
41
42
43
Federal Land Banks................................
1- to 4-family........................................
Farm.......................................................
13,863
406
13,457
16,563
549
16,014
19,125
601
18,524
22,136
670
21,466
22,925
691
22,234
23,857
727
23,130
24,758
819
23,939
25,658
849
24,809
44
45
46
Federal Home Loan Mortgage Corp...
1- to 4-family........................................
Multifamily............................................
4,586
4,217
369
4,987
4,588
399
4,269
3,889
380
3,276
2,738
538
3,371
2,785
586
2,255
1,856
399
2,486
1,994
492
3,058
2,453
605
47 Mortgage pools or trusts2...........................
Government National Mortgage Assn.
48
49
1- to 4-family........................................
50
Multifamily............................................
23,799
11,769
11,249
520
34,138
18,257
17,538
719
49,801
30,572
29,583
989
70,289
44,896
43,555
1,341
74,080
46,357
44,906
1,451
78,602
48,032
46,515
1,517
82,153
50,844
49,276
1,568
86,747
54,347
52,732
1,615
51
52
53
Federal Home Loan Mortgage C orp...
1- to 4-family........................................
Multifamily............................................
757
608
149
1,598
1,349
249
2,671
2,282
389
6,610
5,621
989
7,471
6,286
1,185
9,423
7,797
1,626
9,934
8,358
1,576
10,125
8,519
1,606
54
55
56
57
58
Farmers Home Admin...........................
1- to 4-family........................................
Multifamily............................................
Commercial...........................................
Farm.......................................................
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
18,783
11,379
759
2,945
3,682
20,252
12,235
732
3,528
3,757
21,147
12,742
1,128
3,301
3,976
1,084
360
188
197
339
22,275
13,392
1,163
3,510
4,210
59 Individuals and others3................................
60
1- to 4-family............................................
61
Multifamily................................................
62
Commercial...............................................
63
Farm...........................................................
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
138,199
72,115
20,538
21,820
23,726
141,200
74,741
20,327
21,603
24,529
145,849
77,466
20,904
21,960
25,519
150,113
80,004
21,119
22,459
26,531
153,901
82,321
21,390
22,823
27,367
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 government
sources, with some quarters estimated in part by Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the Depart
ment o f Commerce. Separation o f nonfarm mortgage debt by type o f
property, if not reported directly, and interpolations and extrapolations
where required, are estimated mainly by Federal Reserve. Multifamily
debt refers to loans on structures o f five or more units.
A42
Domestic Financial Statistics □ M a y 1979
1.55 CONSUMER IN S TA LL M E N T C R E D IT1 Total Outstanding, and Net Change A
Millions of dollars
Holder, and type of credit
1976
1977
1978
1978
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.
Mar.
Amounts outstanding (end o f period)
193,977
230,829
275,640
263,387
265,821
269,445
275,640
275,346
275,818
278,347
By major holder
Commercial banks.........
Finance companies........
Credit unions...................
Retailers2.........................
Savings and loans..........
Gasoline companies
Mutual savings banks..
93,728
38,919
31,169
19,260
6,246
2,830
1,825
112,373
44,868
37,605
23,490
7,354
2,963
2,176
136,189
54,309
45,939
24,876
8,394
3,240
2,693
131,403
51,280
44,325
22,302
8,055
3,416
2,606
132,702
51,984
44,635
22,464
8,177
3,276
2,583
133,908
53,099
45,305
23,006
8,291
3,173
2,663
136,189
54,309
45,939
24,876
8,394
3,240
2,693
136,452
55,004
45,526
23,962
8,427
3,338
2,637
136,671
55,728
45,661
23,246
8,488
3,274
2,750
137,445
56,885
46,301
22,929
8,671
3,292
2,824
By major type o f credit
9 Autom obile................... .
10
Commercial banks. . ,
11
Indirect paper
12
Direct loans............
13
Credit unions.............
14
Finance companies. .,
67,707
39,621
22,072
17,549
15,238
12,848
82,911
49,577
27,379
22,198
18,099
15,235
102,468
60,564
33,850
26,714
21,976
19,937
99,062
59,085
33,067
26,018
21,196
18,781
100,159
59,778
33,415
26,363
21,344
19,037
101,565
60,347
33,709
26,638
21,664
19,554
102,468
60,564
33,850
26,714
21,967
19,937
102,890
60,682
33,928
26,754
21,769
20,439
103,780
61,053
34,261
26,792
21,834
20,893
105,426
61,742
34,592
27,150
22,140
21,544
15 Revolving.......................
16
Commercial banks. .
17
Retailers.....................
18
Gasoline companies.
17,189
14,359
2,830
39,274
18,374
17,937
2,963
47,051
24,434
19,377
3,240
42,420
21,935
17,069
3,416
42,579
22,165
17,138
3,276
43,523
22,724
17,626
3,173
47,051
24,434
19,377
3,240
46,516
24,677
18 501
3,338
45,586
24,502
17,810
3,274
45,240
24,442
17 506
3,292
19 Mobile hom e...............
20
Commercial banks.
21
Finance companies.
22
Savings and loans. .
23
Credit unions..........
14,573
8,737
3,263
2,241
332
15,141
9,124
3,077
2,538
402
16,042
9,553
3,152
2,848
489
15,910
9,591
3,114
2,733
472
15,925
9,548
3,127
2,775
475
16,017
9,572
3,150
2,813
482
16,042
9,553
3,152
2,848
489
16,004
9,511
3,149
2,859
485
16,008
9,495
3,147
2,880
486
16,092
9,509
3,148
2,942
493
24 Other...................................
25
Commercial banks
26
Finance companies___
27
Credit unions.................
28
Retailers.........................
29
Savings and loans........
30
Mutual savings banks.
94,508
31,011
22,808
15,599
19,260
4,005
1,825
93,503
35,298
26,556
19,104
5,553
4,816
2,176
110,079
41,638
31,220
23,483
5,499
5,546
2,693
105,995
40,792
29,385
22,657
5,233
5,322
2,606
107,158
41,211
29,820
22,816
5,326
5,402
2,583
108,340
41,265
30,395
23,159
5,380
5,478
2,663
110,079
41,638
31,220
23,483
5,499
5,546
2,693
109,936
41,582
31,416
23,272
5,461
5,568
2,637
110,444
41,621
31,688
23,341
5,436
5,608
2,750
111,589
41,752
32,193
23,668
5,423
5,729
2,824
1 Total.
2
3
4
5
6
7
8
Ncit change (<3luring perio»d)3
21,647
35,278
45,066
3,680
3,382
4,104
4,400
3,061
3,308
3,731
Credit unions...................
Retailers1.........................
Savings and loans..........
Gasoline companies
Mutual savings banks..,
10,792
2,946
5,503
1,059
1,085
124
138
18,645
5,948
6,436
2,654
1,111
132
352
24,058
9,441
8,334
1,386
1,041
276
530
1,714
847
639
328
94
9
49
1,617
863
644
115
127
16
-8
1,925
1,018
779
186
88
-1
104
2,080
1,098
773
196
115
96
42
1,330
1,341
360
-9 0
67
100
-4 7
1,630
1,205
402
-2 2 1
86
68
138
1,465
1,334
528
143
173
20
68
By major type o f credit
39 Autom obile.....................
40
Commercial banks. . .
41
Indirect paper.........
42
Direct loans............
43
Credit unions..............
44
Finance companies. . ,
10,465
6,334
2,742
3,592
2,497
1,634
15,204
9,956
5,307
4,649
2,861
2,387
19,557
10,987
6,471
4,516
3,868
4,702
1,532
848
517
331
313
371
1,375
759
354
405
301
315
1,755
839
440
399
364
552
1,780
845
530
315
391
544
1,680
633
387
246
187
860
1,565
739
530
209
190
636
1,486
617
290
327
245
624
45 Revolving.......................
46
Commercial banks. .
47
Retailers.....................
48
Gasoline companies.
2,170
2,046
124
6,248
4,015
2,101
132
7,776
6,060
1,440
276
622
380
233
9
346
337
-7
16
665
556
110
-1
869
610
163
96
433
375
-4 2
100
317
492
-2 4 3
68
742
588
134
20
49 Mobile hom e...............
50
Commercial banks.
51
Finance companies.
52
Savings and loans..
53
Credit unions..........
140
70
-1 8 2
192
60
565
387
-1 8 9
297
70
897
426
74
310
87
72
31
6
27
8
25
-2 5
-2
46
6
75
19
15
34
7
71
21
11
30
9
40
12
7
19
2
56
15
9
28
4
108
31
11
59
7
54 Other...................................
55
Commercial banks
56
Finance companies___
57
Credit unions................
58
Retailers.........................
59
Savings and loans........
60
Mutual savings banks.
8,872
2,342
1,494
2,946
1,059
893
138
13,261
4,287
3,750
3,505
553
814
352
16,836
6,585
4,665
4,379
-5 4
731
530
1,454
455
470
318
95
67
49
1,636
554
550
337
122
81
-8
1,609
516
451
408
76
54
104
1,680
604
543
373
33
85
42
908
310
474
171
-4 8
48
-4 7
1,370
384
560
208
22
58
138
1,395
229
699
276
9
114
68
31 Total.
By major holder
32 Commercial banks
33 F in a n c e c o m p a n ie s ..........
34
35
36
37
38
1 The Board’s series cover most short- and intermediate-term credit
extended to individuals through regular business channels, usually to
finance the purchase o f consumer goods and services or to refinance
debts incurred for such purposes, and scheduled to be repaid (or with
the option o f repayment) in two or more installments.
2 Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
N ote. Total consumer noninstallment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $64.3 billion at the end
o f 1978, $58.6 billion at the end o f 1977, $54.8 billion at the end o f 1976,
and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979
will be published in the February 1980 Bulletin.
A Consumer installment credit series have been revised from 1943.
effective Dec. 7, 1978. Information is available from Mortgage and
Consumer Finance Section, Division of Research and Statistics.
Consumer Debt
1.56 CONSUMER IN S TA LL M E N T C R ED IT
Millions of dollars
Extensions and Liquidations A
1979
1978
Holder, and type o f credit
1976
1977
A43
1978
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Extensions2
1 Total.........................................................
211,028
254,071
298,574
25,537
25,766
26,219
26,500
25,544
26,202
26,698
By major holder
Commercial banks................................
Finance companies................................
Credit unions..........................................
Retailers1.................................................
Savings and loans..................................
Gasoline companies..............................
Mutual savings banks...........................
97,397
36,129
29,259
29,447
3,898
13,387
1,511
117,896
41,989
34,028
39,133
4,485
14,617
1,923
142,965
50,483
40,023
41,619
5,050
16,125
2,309
12,123
4,372
3,360
3,718
403
1,346
215
12,190
4,605
3,401
3,518
566
1,335
151
12,481
4,512
3,530
3,571
489
1,376
260
12,521
4,679
3,526
3,612
516
1,451
195
12,153
4,547
3,241
3,565
481
1,440
117
12,430
4,822
3,238
3,460
468
1,486
298
12,412
5,123
3,250
3,611
583
1,493
226
By major type o f credit
9 Automobile.............................................
10
Commercial banks............................
11
Indirect paper................................
12
Direct loans....................................
13
Credit unions......................................
14
Finance companies...........................
63,743
37,886
20,576
17,310
14,688
11,169
75,641
46,363
25,149
21,214
16,616
12,662
88,986
53,028
29,336
23,692
19,486
16,472
7,542
4,479
2,519
1,960
1,641
1,422
7,501
4,345
2,384
1,961
1,643
1,513
7,787
4,503
2,422
2,081
1,718
1,566
7,833
4,443
2,451
1,992
1,738
1,652
7,545
4,286
2,318
1,968
1,635
1,624
7,756
4,430
2,472
1,958
1,624
1,702
7,797
4,424
2,449
1,975
1,587
1,786
15 Revolving................................................
16
Commercial banks............................
17
Retailers..............................................
18
Gasoline companies..........................
43,934
30,547
13,387
86,756
38,256
33,883
14,617
104,587
51,531
36,931
16,125
9,006
4,457
3,203
1,346
8,846
4,475
3,036
1,335
9,176
4,702
3,098
1,376
9,424
4,814
3,159
1,451
9,417
4,799
3,178
1,440
9,357
4,860
3,011
1,486
9,714
5,024
3,197
1,493
19 Mobile hom e..........................................
20
Commercial banks............................
21
Finance companies...........................
22
Savings and loans..............................
23
Credit unions......................................
4,859
3,064
702
929
164
5,425
3,466
643
1,120
196
6,067
3,704
886
1,239
238
494
297
77
100
20
604
352
73
154
25
486
280
77
108
21
502
295
74
111
22
369
235
33
88
13
454
295
60
81
18
516
296
61
139
20
24 Other........................................................
25
Commercial banks............................
26
Finance companies...........................
27
Credit unions......................................
28
Retailers...............................................
29
Savings and loans..............................
30
Mutual savings banks.......................
98,492
25,900
24,258
14,407
29,447
2,969
1,511
86,249
29,811
28,684
17,216
5,250
3,365
1,923
98,934
34,702
33,125
20,299
4,688
3,811
2,309
8,495
2,890
2,873
1,699
515
303
215
8,815
3,018
3,019
1,733
482
412
151
8,870
2,996
2,869
1,791
473
381
260
8,741
2,969
2,953
1,766
453
405
195
8,213
2,833
2,890
1,593
387
393
117
8,635
2,845
3,060
1,596
449
387
298
8,671
2,668
3,276
1,643
414
444
226
2
3
4
5
6
7
8
Liquidations2
31 T otal.........................................................
253,508
21,857
22,384
22,115
22,100
22,483
22,894
22,967
99,251
36,041
27,592
36,479
3,374
14,485
1,571
118,907
41,042
31,689
40,233
4,009
15,849
1,779
10,409
3,525
2,721
3,390
309
1,337
166
10,565
3,742
2,757
3,403
439
1,319
159
10,551
3,494
2,751
3,385
401
1,377
156
10,441
3,581
2,753
3,416
401
1,355
153
10,823
3,206
2,881
3,655
414
1,340
164
10,800
3,617
2,836
3,681
382
1,418
160
10,947
3,789
2,722
3,468
410
1,473
158
53,278
31,552
17,834
13,718
12,191
9,535
60,437
36,407
19,842
16,565
13,755
10,275
69,429
42,041
22,865
19,176
15,618
11,770
6,010
3,631
2,002
1,629
1,328
1,051
6,126
3,586
2,030
1,556
1,342
1,198
6,032
3,664
1,982
1,682
1,354
1,014
6,053
3,598
1,921
1,677
1,347
1,108
5,865
3,653
1,931
1,722
1,448
764
6,191
3,691
1,942
1,749
1,434
1,066
6,311
3,807
2,159
1,648
1,342
1,162
45 Revolving................................................
46
Commercial banks............................
47
Retailers..............................................
48
Gasoline companies..........................
41,764
28,501
i3,263
80,508
34,241
31,782
14,485
96,811
45,471
35,491
15,849
8,384
4,077
2,970
1,337
8,500
4,138
3,043
1,319
8,511
4,146
2,988
1,377
8,555
4,204
2,996
1,355
8,984
4,424
3,220
1,340
9,040
4,368
3,254
1,418
8,972
4,436
3,063
1,473
49 Mobile hom e..........................................
50
Commercial banks............................
51
Finance companies...........................
52
Savings and loans..............................
53
Credit unions......................................
4,719
2,994
884
737
104
4,860
3,079
832
823
126
5,170
3,278
812
929
151
422
266
71
73
12
579
377
75
108
19
411
261
62
74
14
431
274
63
81
13
329
223
26
69
11
398
280
51
53
14
408
265
50
80
13
54 Other........................................................
55
Commercial banks............................
56
Finance companies...........................
57
Credit unions......................................
58
Retailers..............................................
59
Savings and loans..............................
60
Mutual savings banks.......................
89,620
23,558
22,764
11,461
28,388
2,076
1,373
72,988
25,524
24,934
13,711
4,697
2,551
1,571
82,098
28,117
28,460
15,920
4,742
3,080
1,779
7,041
2,435
2,403
1,381
420
236
166
7,179
2,464
2,469
1,396
360
331
159
7,161
2,480
2,418
1,383
397
327
156
7,061
2,365
2,410
1,393
420
320
153
7,305
2,523
2,416
1,422
435
345
164
7,265
2,461
2,500
1,388
427
329
160
7,276
2,439
2,577
1,367
405
330
158
189,381' 218,793
By major holder
Commercial banks................................
Finance companies................................
Credit unions..........................................
Retailers1.................................................
Savings and loans..................................
Gasoline companies..............................
Mutual savings banks...........................
86,605
33,183
23,756
28,388
2,813
13,263
1,373
By major type o f credit
39 Automobile.............................................
40
Commercial banks............................
41
Indirect paper................................
42
Direct loans....................................
43
Credit unions......................................
44
Finance companies...........................
32
33
34
35
36
37
38
1 Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
2 Monthly figures are seasonally adjusted.
A Consumer installment credit series have been revised from 1943,
effective Dec. 7, 1978. Information is available from Mortgage and Consumer Finance Section, Division o f Research and Statistics.
A44
Domestic Financial Statistics □ M ay 1979
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions o f dollars; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1973
1974
1976
1975
1976
1977
1977
1978
HI
1978
H2
HI
H2
HI
H2
Nonfinancial sectors
1 Total funds raised............................................ 203.8
2
Excluding equities.......... ............................. 196.1
By sector and instrument
8.3
3
U.S. government............. .............................
7.9
4
Public debt securities..............................
.4
Agency issues and mortgages...............
5
6
All other nonfinancial sectors..................... 195.5
7.7
7
Corporate equities...................................
8
Debt instruments..................................... 187.9
9
Private domestic nonfinancial sectors. . 189.3
10
7 .9
Corporate equities..............................
11
Debt instruments................................ 181.4
1:2
Debt capital instruments............... 105.0
14.7
13
State and local obligations. . . .
9 .2
14
Corporate bonds.........................
Mortgages
46.4
15
H om e.........................................
10.4
16
Multifamily residential........
17
18.9
Commercial..............................
18
Farm..........................................
5.5
19
76.4
Other debt instruments.................
20
Consumer credit.........................
23.8
21
39.8
Bank loans n.e.c..........................
22
Open market paper.....................
2.5
23
Other..............................................
10.3
188.8
184.9
208.1
198.0
272.5
261.7
340.5
337.4
389.4
387.4
259.6
245.9
285.6
277.5
302.2
301.0
378.9
373.8
378.2
376.8
400.7
398.0
11.8
12.0
-.2
177.0
3.8
173.1
161.6
4.1
157.5
98.0
16.5
19.7
85.4
85.8
-.4
122.7
10.1
112.6
109.5
9.9
99.6
97.8
15.6
27.2
69.0
69.1
-.1
203.5
10.8
192.6
182.8
10.5
172.3
126.8
19.0
22.8
56.8
57.6
-.9
283.8
3.1
280.6
271.4
2.7
268.7
181.1
29.2
21.0
53.7
55.1
-1 .4
335.8
2.1
333.7
310.1
2.6
307.5
194.8
29.6
20.1
73.5
73.4
.1
186.0
13.6
172.4
168.5
13.3
155.2
117.8
19.3
22.2
64.5
64.9
-.3
221.0
8.1
213.0
197.2
7.7
189.5
135.9
18.7
23.5
42.6
43.1
-.6
259.6
1.2
258.5
252.1
.5
251.6
163.4
29.3
16.0
71.0
72.2
-1 .2
307.9
5.1
302.8
290.7
4.9
285.8
198.9
29.0
26.0
58.7
59.7
-.9
319.4
1.4
318.0
302.2
2.2
300.0
185.6
28.5
19.0
48.6
50.5
-1 .9
352.1
2.7
349.3
318.0
3.0
314.9
204.0
30.8
21.2
34.8
6 .9
15.1
5.0
59.6
10.2
29.0
6 .6
13.7
39.5
*
11.0
4.6
1.8
9.4
-1 4 .0
-2 .6
9.0
63.7
1.8
13.4
6.1
45.5
23.6
3.5
4 .0
14.4
96.4
7 .4
18.4
8.8
87.6
35.0
30.6
2.9
19.0
101.4
10.1
23.1
10.3
112.7
50.5
37.1
4.9
20.2
56.9
.6
13.8
4 .9
37.4
22.9
-2 .7
5.6
11.6
70.5
3.1
12.9
7.3
53.6
24.3
9 .6
2 .4
17.3
88.5
6 .4
14.2
8.9
88.2
35.7
34.0
3.5
15.0
104.2
8.4
22.6
8.7
86.9
34.4
27.2
2 .4
23.0
99.3
9 .2
20.3
9.3
114.5
49.8
41.4
5 .2
18.0
103.6
11.1
26.0
11.4
110.9
51.3
32.7
4.5
22.4
24
25
26
27
28
29
By borrowing sector...........................
State and local governments.........
H ouseholds.......................................
Farm...................................................
Nonfarm noncorporate.................
Corporate..........................................
189.3
13.2
80.9
9 .7
12.8
72.7
161.6
15.5
49.2
7 .9
7 .4
81.8
109.5
13.2
48.6
8.7
2.0
37.0
182.8
18.5
89.9
11.0
5.2
58.2
271.4
25.9
139.6
14.7
12.6
78.7
310.1
24.9
161 .3
17.2
17,2
89.5
168.5
17.6
82.7
9.9
4 .0
54.3
197.2
19.5
97.1
12.1
6 .4
62.2
252.1
22.7
131.2
15.5
12.8
69.8
290.7
29.0
148.0
13.8
12.3
87.6
302.2
21.7
155.0
14.6
20.3
90.6
318.0
28.1
167.5
19.9
14.2
88.2
30
31
32.
33
34
35
36
Foreign.......................................................
Corporate equities...............................
Debt instruments................................
Bonds.................................................
Bank loans n.e.c..............................
Open market paper.........................
U.S. government loans. . .*..........
6 .2
-.2
6 .4
1.0
2 .8
.9
1.7
15.3
-.2
15.6
2.1
4.7
7.3
1.5
13.2
.2
13.0
6.2
3.7
.3
2.8
20.7
.3
20.4
8.5
6.6
1.9
3.3
12.3
.4
11.9
5.0
1.6
2 .4
3.0
25.7
-.5
26.2
4.3
12.0
6.6
3.3
17.5
.3
17.2
7 .4
5 .4
1.5
2.9
23.8
.3
23.5
9 .7
7.9
2 .4
3.6
7.5
.6
6.9
4 .4
- 3 .2
2.7
3.1
17.2
.2
17.0
5.6
6 .4
2.2
2.9
17.2
-.8
18.0
4.9
6.2
3.6
3.3
34.1
-.3
34.4
3.7
17.7
9.6
3.4
Financial sectors
37 Total funds raised............................................
By instrument
38
U.S. government related............................
39
Sponsored credit agency securities....
40
Mortgage pool securities.......................
41
Loans from U.S. government.............
42
Private financial sectors..............................
43
Corporate equities..............................
44
Debt instruments.....................................
45
Corporate bonds..................................
46
Mortgages.............................................
47
Bank loans n.e.c...................................
48
Open market paper and RPs...........
49
Loans from FH LBs............................
50
51
52
53
54
55
56
57
58
59
60
By sector
Sponsored credit agencies.........................
Mortgage pools............................................
Private financial sectors..............................
Commercial banks..................................
Bank affiliates...........................................
Savings and loan associations..............
Other insurance companies...................
Finance companies..................................
REITs.........................................................
Open-end investment companies.........
Money market funds..............................
57.6
36.4
11.7
29.2
58.8
93.8
27.9
30.5
61.5
56.2
102.9
84.6
19.9
16.3
3.6
23.1
16.6
5.8
.7
13.3
.3
13.0
2.1
-1 .3
4 .6
.9
6.7
13.5
2 .3
10.3
.9
-1 .9
.6
-2 .5
2.9
2.3
-3 .6
-.1
-4 .0
18.6
3.3
15.7
-.4
10.6
1.0
9.6
5.8
2.1
-3 .7
7.3
-2 .0
26.3
7 .0
20.5
-1 .2
32.6
.6
32.0
10.1
3.1
*
14.4
4.3
39.0
22.6
16.5
54.7
1.1
53.7
7.7
.9
1.2
31.3
12.5
18.2
4.1
14.2
*
9.7
-.2
10.0
6 .4
1.5
-2 .6
6.2
-1 .5
19.0
2.6
17.2
- .7
11.5
2.3
9 .2
5.2
2.7
-4 .8
8.5
-2 .5
25.0
9.5
17.9
- 2.3
36.5
.5
36.0
10.1
3.3
- 2 .3
21.4
3.4
27.5
4 .4
23.1
0
28.7
.7
28.0
10.1
2.9
2 .3
7 .4
5.2
41.5
24.9
16.6
0
61.4
1.1
60.3
8.4
2 .4
.5
34.9
14.1
36.5
20.2
16.3
0
48.0
1.0
47.0
6.9
-.5
1.9
27.8
10.9
36.4
17.3
5 .8
13.3
-5 .6
3.5
6 .3
.9
6 .0
.6
- .7
2 .4
11.7
3.2
10.3
- 1 .9
-1 .4
.3
-2 .2
1.0
.6
-1 .4
- .1
1.3
29.2
2.9
15.7
10.6
7.5
-.8
*
.9
6 .4
- 2 .4
-1 .0
*
58.8
5.8
20.5
32.6
4.8
1.3
11.9
.9
16.9
-2 .4
-1 .0
.2
93.8
22.6
16.5
54.7
8 .2
4.3
16.4
1.1
19.7
-1 .3
-.5
6.9
27.9
4 .0
14.2
9.7
9 .0
- 1 .3
.1
.9
6 .0
-2 .1
- 2 .4
-.5
30.5
1.8
17.2
11.5
6 .0
-.3
-.1
.9
6.9
-2 .7
.4
.5
61.5
7.1
17.9
36.5
10.0
1.3
10.6
.9
17.4
- 2 .5
-.8
-.5
56.2
4 .4
23.1
28.7
-.4
1.2
13.1
1.0
16.4
-2 .2
-1 .2
.9
102.9
24.9
16.6
61.4
12.2
5.8
19.7
1.0
18.7
- 1 .3
—.6
5.9
84.6
20.2
16.3
48.0
4 .2
2.8
13.1
1.1
20.6
-1 .3
-.4
8.0
316.0
.4
9.9
305.7
84.3
18.7
38.4
96.4
24.3
12.6
13.3
17.7
363.7
-.8
2.5
362.0
70.0
29.3
30.5
121.2
35.7
28.4
27.6
19.2
435.0
-1 .2
7 .0
429.2
98.6
29.0
41.7
146.7
34.4
35.9
11.9
31.0
481.1
- .6
3.1
478.6
100.4
28.5
32.3
140.3
49.8
48.2
43.7
35.4
485.3
-.4
4 .2
481.5
85.2
30.8
31.8
151.5
51.3
52.2
41.9
36.8
37.7
1.5
36.2
3.5
-1 .2
8.9
17.8
7 .2
57.6
16.3
3.6
37.7
14.1
2 .2
6 .0
.5
9 .4
6.5
- 1 .2
All sectors
61 Total funds raised, by instrument.................
62
Investment company shares......................
63
Other corporate equities............................
64
Debt instruments.........................................
65
U.S. government securities....................
66
State and local obligations....................
67
Corporate and foreign bonds...............
68
Mortgages.................................................
69
Consumer credit......................................
70
Bank loans n.e.c.......................................
71
Open market paper and R Ps...............
72
Other loans...............................................
261.4
-1 .2
10.4
252.3
28.3
14.7
13.6
79.9
23.8
51.6
21.2
19.1
225.1
-.7
4.8
221.0
34.3
16.5
23.9
60.5
10.2
38.3
14.8
22.6
219.8
-.1
10.8
209.1
98.2
15.6
36.4
57.2
9.4
- 1 3 .9
- 2 .4
8.7
301.7
-1 .0
12.9
289.8
88.1
19.0
37.2
87.1
23.6
6 .4
13.3
15.3
399.4
-1 .0
4.8
395.6
84.3
29.2
36.1
134.0
35.0
32.2
19.8
25.1
483.2
-.5
3.6
480.1
92.8
29.8
32.1
145.9
50.5
50.2
42.8
36.1
287.5
- 2 .4
15.8
274.1
91.9
19.3
36.1
77.7
22.9
.1
13.3
12.9
Flow o f Funds
A45
1.58 D IR EC T A N D IN D IR E C T SOURCES OF FUNDS TO C R E D IT M ARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors..................................
1973
1974
1975
1976
1977
1976
1978
1977
1978
HI
H2
HI
H2
HI
H2
196.1
184.9
198.0
261.7
337.4
387.4
245.9
277.5
301.0
373.8
376.8
398.0
By public agencies and foreign
Total net advances..........................................
U.S. government securities......................
Residential mortgages................................
FHLB advances to S&Ls.........................
Other loans and securities..........................
Totals advanced, by sector
U.S. government.........................................
Sponsored credit agencies..........................
Monetary authorities..................................
Foreign............................................................
Agency borrowing not included in line 1 ..
34.1
9 .5
8.2
7 .2
9 .2
52.6
11.9
14.7
6.7
19.4
44.3
22.5
16.2
-4 .0
9.5
54.5
26.8
12.8
-2 .0
16.9
85.4
40.2
20.4
4.3
20.5
102.8
43.1
24.6
12.5
22.6
49.7
24.4
11.8
- 1 .5
1 5.0.
59.3
29.3
13.7
-2 .5
18.8
69.3
27.2
20.0
3.4
18.6
101.6
53.2
20.9
5.2
22.4
103.5
42.7
23.5
14.1
23.3
102.0
43.6
25.7
10.9
21.8
2 .8
21.4
9.2
.6
19.9
9.7
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
11.8
26.9
7.1
39.5
26.3
18.3
44.0
7 .0
33.5
39.0
6.3
2 0.0
13.7
9.7
18.2
11.5
21.2
6 .0
20.6
19.0
6.1
26.7
10.2
26.4
25.0
17.6
27.2
4.1
52.7
27.5
19.2
44.9
12.9
26.4
41.5
17.4
43.2
1.0
40.5
36.5
Private domestic funds advanced
12 Total net advances...........................................
13
U.S. government securities......................
14
State and local obligations........................
15
Corporate and foreign bonds...................
16
Residential mortgages................................
17
Other mortgages and loans.......................
18
L ess: FHLB advances................................
182.0
18.8
14.7
10.0
48.4
97.2
7 .2
155.3
22.4
16.5
20.9
26.9
75.4
6 .7
167.3
75.7
15.6
32.8
23.2
16.1
- 4 .0
225.7
61.3
19.0
30.5
52.7
60.4
-2 .0
278.2
44.1
29.2
22.3
83.2
103.7
4.3
323.6
49.7
29.6
23.4
86.9
146.6
12.5
214.4
67.5
19.3
28.6
45.6
51.9
-1 .5
237.1
55.1
18.7
32.3
59.7
68.9
-2 .5
256.8
42.8
29.3
17.2
74.9
96.0
3.4
299.7
45.4
29.0
27.3
91.6
111.5
5.2
314.8
57.7
28.5
22.4
84.9
135.4
14.1
332.5
41.6
30.8
24.3
88.9
157.8
10.9
Private financial intermediation
19 Credit market funds advanced by private
financial institutions................................
20
Commercial banking...................................
21
Savings institutions......................................
22
Insurance and pension funds....................
23
Other finance.................................................
165.4
86.5
36.9
23.9
18.0
126.2
64.5
26.9
30.0
4.7
119.9
27.6
52.0
41.5
-1 .1
191.2
58.0
71.4
51.7
10.1
249.6
85.8
84.8
62.0
16.9
289.6
119.2
79.1
71.4
19.9
174.4
46.6
70.5
53.2
4 .2
207.9
69.4
72.4
50.2
15.9
241.1
81.1
85.3
60.3
14.5
258.0
90.5
84.3
63.7
19.4
283.7
120.4
77.2
69.4
16.6
295.5
117.9
81.0
73.4
23.2
24 Sources o f funds...............................................
25
Private domestic deposits..........................
26
Credit market borrowing...........................
165.4
86.6
36.2
126.2
69.4
13.0
119.9
90.6
- 2 .5
191.2
121.5
9 .6
249.6
136.0
32.0
289.6
124.5
53.7
174.4
108.3
10.0
207.9
134.6
9 .2
241.1
127.0
36.0
258.0
145.0
28.0
283.7
119.4
60.3
295.5
129.6
47.0
27
28
29
30
31
Other sources................................................
Foreign funds...........................................
Treasury balances....................................
Insurance and pension reserves...........
Other, net...................................................
42.5
5 .8
-1 .0
18.4
19.4
43.8
16.8
-5 .1
2 6.0
6 .0
31.9
.9
-1 .7
29.6
3.1
60.1
5.1
-.1
34.8
20.3
81.6
11.6
4.3
48.0
17.8
111.4
15.7
9.7
57.0
29.0
56.1
.7
2.3
35.8
17.2
64.1
9.5
-2 .5
33.8
23.4
78.2
.7
-1 .8
45.5
33.7
85.1
22.4
10.4
50.4
1.9
104.0
4 .0
- .7
55.9
44.9
118.9
27.5
20.1
58.2
13.1
Private domestic nonfinancial investors
32 Direct lending in credit markets...................
33
U.S. government securities......................
34
State and local obligations........................
35
Corporate and foreign bonds...................
36
Commercial paper.......................................
37
Other...............................................................
52.8
19.2
5 .4
1.3
18.3
8.6
42.2
17.5
9 .3
4 .7
2 .4
8.2
44.9
2 3.0
8.3
8 .0
-.8
6 .4
44.1
19.6
6.8
2.1
4.1
11.5
60.6
24.6
9.1
1.1
9.5
16.2
87.7
33.1
8.8
- .9
27.8
18.8
50.0
25.0
7 .6
2.9
4 .8
9.7
38.4
14.1
6 .0
1.3
3.4
13.5
51.6
14.1
8.2
.4
13.0
15.9
69.6
35.2
10.1
1.8
6 .0
16.5
91.4
36.3
10.8
- 2 .6
28.8
18.2
84.0
30.0
6 .8
.8
26.9
19.5
38 Deposits and currency....................................
39
Time and savings accounts.......................
40
Large negotiable C D s............................
41
Other at commercial banks...................
42
At savings institutions............................
90.6
76.1
18.1
29.6
28.5
75.7
66.7
18.8
26.1
21.8
96.8
84.8
-1 4 .1
39.4
59.4
128.8
112.2
- 1 4 .4
58.1
68.5
144.3
120.1
9.3
41.7
69.1
133.8
117.8
13.8
42.8
61.3
114.3
99.5
-1 9 .8
52.0
67.3
143.3
125.0
-9 .1
64.3
69.8
132.6
110.5
-4 .4
45.3
69.6
156.0
129.7
22.9
38.2
68.7
129.5
110.2
10.3
4 5.0
54.9
138.0
125.5
17.3
40.5
67.7
43
44
45
M oney............................................................
Demand deposits.....................................
Currency.....................................................
14.4
10.5
3.9
8.9
2.6
6.3
12.0
5.8
6 .2
16.6
9.3
7.3
24.2
15.9
8.3
15.9
6.6
9.3
14.8
8.9
6 .0
18.3
9 .6
8.6
22.1
16.5
5.6
26.3
15.3
11.0
19.3
9 .2
10.1
12.5
4.1
8.5
46 Total of credit market instruments, de
posits and currency..................................
143.4
117.8
141.6
172.9
204.9
221.5
164.3
181.6
184.2
225.6
220.9
222.0
17.4
28.5
22.4
20.8
25.3
26.5
20.2
21.4
2 3.0
27.2
27.5
25.6
90.9
6 .4
81.3
28.0
71.7
7.1
84.7
20.3
89.7
51.1
89.5
49.2
81.3
10.4
87.7
30.1
93.9
27.1
86.1
75.1
90.1
30.4
88.9
68.0
9.2
-1 .2
10.4
13.3
-4 .1
4.1
-.7
4 .8
5 .8
-1 .6
10.7
-.1
10.8
9.7
1.0
11.9
-1 .0
12.9
12.5
-.7
3 .8
-1 .0
4.8
6 .2
-2 .4
3.1
-.5
3.6
4.9
-1 .7
13.4
-2 .4
15.8
13.1
.3
10.4
.4
9 .9
12.0
-1 .6
1.7
-.8
2.5
6.1
- 4 .4
5.8
-1 .2
7 .0
6.3
-.5
2.5
-.6
3.1
1.7
.8
3.8
-.4
4 .2
8.0
- 4 .2
2
3
4
5
6
7
8
9
10
11
47
48
49
Public support rate (in percent).............
Private financial intermediation (in per
cent) ........................................................
Total foreign funds......................................
M emo: Corporate equities not included
above
51
Mutual fund shares.....................................
52
Other equities...............................................
53 Acquisitions by financial institutions..........
54 Other net purchases........................................
N otes by line number.
1. Line 2 o f p. A-44.
2. Sum o f lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. 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.
12. 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.
17. Includes farm and commercial mortgages.
25. Sum o f lines 39 and 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities o f foreign banking agencies to foreign af
filiates.
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. Sum of lines 10 and 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 of 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 a y 1979
2.10 N O N FIN A N C IA L BUSINESS A C T IV IT Y Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1978
1976
Measure
1977
1979
1978
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.*
Apr.c
1 Industrial production..............................
129.8
137.1
145.2
147.8
148.7
149.6
150.9
150.9
151.0
152.0
150.5
M arket groupings
Products, total........................................
Final, total..........................................
Consumer goods............................
Equipment.......................................
Intermediate........................................
Materials............................... ..................
129.3
127.2
136.2
114.6
137.2
130.6
137.1
134.9
143.4
123.2
145.1
136.9
144.3
141.4
147.4
133.1
155.3
146.5
146.5
143.7
149.0
136.4
157.0
149.7
147.0
144.1
149.2
137.0
158.0
151.4
147.7
144.5
149.7
137.3
159.3
152.7
149.1
145.6
150.6
138.7
161.8
153.8
149.4
145.9
150.6
139.5
162.6
153.1
149.9
146.3
150.7
140.1
163.1
152.7
150.6
147.3
151.7
141.3
162.7
154.1
148.9
145.3
149.0
140.5
162.1
153.0
Industry groupings
8 Manufacturing..................... ..................
129.5
137.1
145.6
148.7
149.5
150.4
151.8
151.9
152.0
152.9
151.3
Capacity utilization (percent) 1
9 Manufacturing........................................
10 Industrial materials industries.............
80.2
80.4
82.4
81.9
84.2
84.9
85.3
86.3
85.5
87.1
85.8
87.6
86.3
86.1
86.0
87.4
85.8
86.9
86.1
87.5
84.9
86.7
11 Construction contracts2 .......................
190.2
160.5
174.3
182.0
193.0
173.0
184.0
181.0
231.0
186.0
n.a.
120.7
125.0
104.2
130.3
108.9
104.5
131.6
110.1
105.1
102.4
143.4
132.3
111.0
105.9
103.5
144.0
133.5
111.7
106.6
104.3
144.2
133.0
112.0
107.1
104.8
144.5
133.5
112.4
107.4
105.2
145.0
134.1
113.3
107.8
105.5
145.5
134.2
113.3
107.7
105.4
145.7
285.0
268.8
234.8
288.5
271.5
238.0
290.3
274.4
238.0
292.6
276.9
244.1
296.2
280.6
246.7
297.1
281.1
245.6
2
3
4
5
6
7
12 Nonagricultural employment, total3. ..
13 Goods-producing, total.........................
14
Manufacturing, total.........................
15
Manufacturing, production-worker
16 Service-producing..................................
97.7
95.3
131.9
101.0
98.6
136.4
102.1
142.1
131.0
109.3
104.3
101.6
142.9
220.4
189.3
177.1
244.0
230.1
198.6
272.5
257.5
223.6
278.4
262.0
226.4
282.2
266.1
230.3
100.2
17 Personal income, total4.........................
18 Wages and salary disbursements........
19 Manufacturing........................................
20 Disposable personal income................
176.8
194.5
216.7
21 Retail sales5...................................... ..
203.5
224.4
248.0
253.5
257.5
262.0
265.3
270.7
271.8
274.5
275.9
Prices 6
22 Consumer7..............................................
23 Producer finished goods8.....................
170.5
170.3
181.5
180.6
195.4
194.6
199.3
196.9
200.9
199.7
202.0
200.6
202.9
202.4
204.7
205.2
207.1
207.4
209.6
208.8
n.a.
211.2
1 Ratios of indexes o f production to indexes o f capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and D e
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 Em ploym ent and Earnings (U.S. Department of
Labor). Series covers employees only, excluding personnel in the Armed
Forces.
4 Based on data in Survey o f Current Business (U.S. Department of 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. Department o f Commerce).
6 Data without seasonal adjustment, as published in M onthly Labor
233.4
226.0
Review (U.S. Department of Labor). Seasonally adjusted data for changes
in the price indexes may be obtained from the Bureau o f Labor Statistics,
U.S. Department of Labor.
7 Beginning Jan. 1978, based on new index for all urban consumers.
8 Beginning with the November 1978 Bulletin, producer price data
in this table have been changed to the BLS series for producer finished
goods. The previous data were producer prices for all commodities.
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. Department of Commerce).
Figures for industrial production for the last two months are preliminary
and estimated, respectively.
2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1978
1979
1978
1979
1978
Series
Q2
Q3
Q4
Q lr
Output (1967 = 100)
Q2
Q3
Q4
Ql
Capacity (percent o f 1967 output)
Q2
Q3
1979
Q4
Q lr
Utilization rate (percent)
1 Manufacturing......................... .........................
144.4
147.7
150.6
152.3
172.0
173.7
175.4
177.1
84.0
85.0
85.9
86.0
2
3
Primary processing......................................
Advanced processing..................................
154.1
139.3
158.2
142.1
161.9
144.5
162.0
147.1
178.5
168.5
180.2
170.2
181.9
171.8
183.8
173.4
86.3
82.7
87.8
83.5
89.0
84. 1
88.1
84.8
4 Materials...........................................................
145.1
148.7
152.6
153.3
171.7
173.0
174.2
175.6
84.5
86.0
87.6
87.3
144.0
117.5
163.2
167.7
117.1
139.7
201.4
125.5
150.4
124.6
163.2
168.4
117.3
134.8
204.4
127.0
155.2
129.4
166.9
172.2
119.4
137.2
209.5
128.7
155.1
124.3
169.4
175.0
117.8
137.4
215.3
129.0
175.2
146.1
184.4
193.1
144.1
154.8
230.1
147.8
176.3
146.5
186.5
195.4
144.7
155.8
233.5
148.4
177.4
146.8
188.5
197.5
145.2
156.9
236.8
148.9
178.4
147.1
190.7
199.8
145.8
158.0
240.2
150.2
82.2
80.4
88.5
86.8
81.2
90.3
87.5
84.9
85.3
85.1
87.5
86.2
81.0
86.5
87.5
85.6
87.5
88. 1
88.5
87.2
82.2
87.4
88.5
86.4
87.0
84.5
88.8
87.6
80.8
87.0
89.6
85.9
5
6
7
8
9
10
11
12
Durable goods..............................................
Basic m etal...............................................
Nondurable goods......................................
Textile, paper, and chemical................
Textile...................................................
Paper.....................................................
Chemical...............................................
Energy...........................................................
Labor Market
A47
2.12 LABOR FORCE, EM PLOYM ENT, A N D UN EM P LO YM EN T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1978
Category
1976
1977
1979
1978
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
Household survey data
2 Labor force (including Armed
Forces)1...........................................
3 Civilian labor force...............................
Employment
4
Nonagricultural industries2........
5
Agriculture......................................
Unemployment
156,048
158,559
161,058
161,829
162,033
162,250
162,448
162,633
162,909
163,008
96,917
94,773
99,534
97,401
102,537
100,420
103,199
101,077
103,745
101,628
103,975
101,867
104,277
102,183
104,621
102,527
104,804
102,714
104,193
102,111
84,188
3,297
87,302
3,244
91,031
3,342
91,867
3,374
92,476
3,275
92,468
3,387
93,068
3,232
93,335
3,311
93,499
3,343
92,987
3,186
5,937
7,288
6,855
6,047
5,836
5,877
6,012
5,883
5,881
5,871
Rate (percent o f civilian labor
force) ........................................
7.7
7.0
6 .0
5 .8
5 .8
5 .9
5 .8
5 .7
5 .7
5 .8
8 Not in labor force..................................
59,130
59,025
58,521
58,630
58,288
58,275
58,170
58,012
58,105
58,815
'87,818
'20,895
'26,199
'4,385
'5,001
'19,883
'4,829
'16,438
'15,468
'88,240
'20,960
'26,413
'4,532
'5,024
'19,949
'4,842
'16,512
'15,500
88,312
20,941
26,397
4,534
4,958
19,992
4,860
16,569
15,536
7
Establishment survey data4
9 Nonagricultural payroll employment3
11
12
13
14
M ining.....................................................
Contract construction...........................
Transportation and public utilities. . .
Trade........................................................
16 Service......................................................
17 Government............................................
79,382
18,997
779
3,576
4,582
17,755
4,271
14,551
14,871
82,256
19,647
809
3,833
4,696
18,492
4,452
15,249
15,079
85,760
20,331
837
4,213
4,858
19,392
4,676
15,976
15,478
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.
3 Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,
86,573
20,436
893
4,341
4,922
19,632
4,737
16,169
15,443
87,036
20,601
903
4,368
4,947
19,701
4,774
16,270
15,472
87,281
20,729
904
4,397
4,967
19,697
4,789
16,327
15,471
87,524
20,825
905
4,381
4,974
19,817
4,809
16,352
15,461
unpaid family workers, and members o f the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employ
ment and Earnings (U.S. Dept, o f Labor).
4 The establishment survey data in this table have been revised to
conform to the industry definitions o f the 1972 Standard Industrial
Classification (SIC) Manual and to reflect employment benchmark
levels for March 1977. In addition, seasonal factors for these data have
been revised, based on experience through May 1978.
A 48
2.13
D o m estic N o n fin an c ial S tatistics □ M a y 1979
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
pro
por
tion
1978
average*
1978
Feb.
Mar.
Apr.
Aug.
1979
Sept.
Oct.
Nov.
Dec.
Jan.r Feb.r Mar.* Apr.®
Index (1967 = 100)
MAJOR MARKET
1
3 Final products..........................................
4 Consumer goods....................................
5 Equipment..............................................
6 Intermediate products...............................
100.00 145.2 139.2 140.9 143.2 147.1 147.8 148.7 149.6 150.9 150.9 151.0 152.0 150.5
60.71 144.3 139.6 141.6 143.0 146.2 146.5 147.0 147.7 149.1 149.4 149.9 150.6 148.9
47.82 141.4 136.4 138.9 140.5 143.3 143.7 144.1 144.5 145.6 145.9 146.3 147.3 145.3
27.68 147.4 143.8 145.9 147.5 148.4 149.0 149.2 149.7 150.6 150.6 150.7 151.7 149.0
20.14 133.1 126.2 129.1 130.8 136.3 136.4 137.0 137.3 138.7 139.5 140.1 141.3 140.5
12.89 155.3 151.4 151.4 152.1 156.4 157.0 158.0 159.3 161.8 162.6 163.1 162.7 162.1
39.29 146.5 138.6 139.9 143.7 148.6 149.7 151.4 152.7 153.8 153.1 152.7 154.1 153.0
Consumer goods
8 Durable consumer goods..........................
9 Automotive products.............................
Autos and utility vehicles.................
10
Autos..............................................
11
Auto parts and allied goods.............
12
7.89
2.83
2.03
1.90
80
158.9
178.6
172.5
148.5
194.0
151.2
162.8
153.9
131.5
185.3
157.5
175.8
171.0
149.7
188.5
161.8
184.3
182.7
159.1
188.2
161.5
182.1
175.6
151.1
198.0
160.3
178.3
170.0
144.4
199.8
161.6
185.6
180.5
154.2
199.1
161.8
189.0
185.0
159.7
199.0
161.9
185.1
179.3
151.8
200.1
160.9
181.3
173.4
145.9
201.8
161.3
179.1
170.7
144.9
200.7
163.9
186.0
180.1
153.7
200.8
13
14
IS
16
17
Miscellaneous home goods...............
5.06
1.40
1.33
1.07
2.59
147.8
132.5
134.5
164.3
149.3
144.6
133.3
135.7
160.2
144.3
147.2
135.4
137.9
159.3
148.7
149.2
142.2
144.7
158.9
149.0
150.0
133.9
135.6
167.9
151.3
150.2
134.4
136.9
169.0
150.8
148.2
128.7
129.9
168.0
150.6
146.5
123.4
124.4
164.9
151.3
148.9
129.1
129.8
166.8
152.0
149.5
125.9
126.8
170.8
153.6
151.3
130.4
131.5
172.9
153.7
151.6 149.0
128.5 120.0
129.9
174.8
154.5 154.5
18 Nondurable consumer goods...................
19
20 Consumer staples...................................
71
19.79
4.29
15.50
8.33
142.8
125.5
147.6
140.1
148.8
121.1
146.3
138.3
141.3
122.4
146.4
138.7
141.8
124.9
146.6
140.8
143.1
126.6
147.8
140.8
144.4
128.9
148.8
141.2
144.3 144.8 146.2 146.5 146.5 146.9 147.1
128.3
130.1 130.1 129.5
148.8 i49.2 150.6 151.0 151.2 151.7 152.1
140.4 141.0 143.0 142.1 142.6 143.7
Nonfood staples.................................
Consumer chemical products........
Consumer paper products.............
Consumer energy products...........
Residential utilities.....................
7.17
2,63
1.92
2.62
1.45
156.2
187.1
118.1
153.2
161.5
155.8
184.3
118.8
154.5
167.6
155.3
182.1
118.9
155.0
166.9
153.3
182.5
117.7
149.9
159.0
155.9
188.0
117.3
152.0
160.1
157.4
191.9
118.2
153.3
160.9
158.5
191.9
117.6
155.4
162.8
158.8
190.7
117.6
156.7
162.1
159.6
193.2
116.9
156.9
161.1
161.3
196.5
120.1
156.6
165.3
161.2
196.3
121.6
155.1
160.9 162.0
195.9
121.6
154.7
12.63
6.77
1.44
3.85
1.47
162.0
149.9
223.4
121.9
151.0
154.2
144.6
214.9
117.7
145.8
157.4
146.9
221.7
118.3
148.8
159.3
147.8
225.1
119.0
147.3
165.4
152.8
228.1
123.9
154.6
165.8
152.7
226.3
124.4
154.8
166.9
152.9
226.5
125.0
154.0
167.2
151.8
223.8
124.2
153.4
168.7
152.2
222.3
124.7
155.6
169.7
154.7
222.3
127.9
158.5
170.5
155.7
223.6
128.9
158.9
172.0
156.5
223.6
129.4
161.0
Farm...................................................
5.86
3.26
1.93
67
176.0
208.6
133.8
138.9
165.5
200.9
115.9
134.8
169.4
202.0
126.1
137.0
172.6
203.8
133.7
132.9
179.9
212.2
138.5
141.3
180.8
214.1
138.6
142.0
182.9
215.1
142.6
143.2
184.9
214.9
147.5
145.8
187.8
217.1
151.0
151.5
187.1
218.1
148.2
149.5
187.4
218.8
146.2
154.1
190.0 187.9
220.8 221.1
149.4 142.6
157.0
36 Defense and space................... .................
7.51
84.5
79.2
81.9
82.9
87.1
87.1
86.7
87.2
87.9
88.7
89.1
Intermediate products
37 Construction supplies...............................
38 Business sunnlies.......................................
39 Commercial energy products................
6.42 153.3 148.6 147.9 148.5 154.7 155.6 157.0 159.0 160.8 161.2 161.4 160.7 159.6
6.47 157.3 154.2 155.0 155.6 158.2 158.4 159.2 159.9 162.7 163.8 164.7 164.6
1.14 166.5 165.6 164.3 163.5 167.4 169.9 168.8 168.8 170.0 172.2 172.5 172.8
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Home goods..........................................
Equipment
Industrial................................................
Building and mining..........................
Manufacturing...................................
Commercial transit, farm ......................
Materials
41
42
43
44
20.35
4.58
5.44
Equipment parts....................................
Durable materials n.e.c......................... 10.34
Basic metal materials.........................
5.57
146.9
140.3
159.1
143.4
120.4
137.0
131.1
146.6
134.6
111.0
138.6
133.1
151.3
134.5
110.4
142.7
136.8
154.8
138.9
116.7
150.4
142.2
162.9
147.6
125.4
152.1
144.8
164.6
148.7
126.7
154.0
147.3
166.0
150.5
128.2
154.9
147.4
167.6
151.6
129.1
156.8
148.4
170.5
153.6
130.9
155.4
147.8
170.5
150.8
124.6
154.6
144.6
171.6
150.2
123.6
89.7
155.4
145.2
173.0
150.8
124.8
153.4
161.3
147.4
128.6
197.0
170.8
155.9
223.6
129.0
160.0
89.4
153.2
135.8
172.4
150.6
10.47 162.9 158.5 160.5 162.0 162.7 164.4 165.7 167.8 167.1 168.3 169.4 170.5 171.1
Textile, paper, and chemical materials. 7.62 167.9 162.8 165.7 166.4 167.0 170.0 171.0 173.3 172.3 173.7 175.1 176.2 177.2
1.85 117.2 115.8 115.1 116.5 116.0 118.7 118.7 120.4 119.0 118.1 116.9 118.3
Textile materials.....................................
1.62 137.1 136.8 137.8 139.2 131.5 137.7 137.3 137.6 136.6 133.5 138.5 140.3
Paper materials......................................
4.15 202.6 194.2 199.2 199.5 203.7 205.5 207.6 210.7 210.3 214.3 215.6 216.1
Chemical materials................................
45 Nondurable goods materials....................
46
47
48
49
50
Containers, nondurable.........................
Nondurable materials n.e.c...................
53
54
Primary energy.......................................
Converted fuel materials.......................
Supplementary groups
S6 F.nercv. total. .............................................
57 Products................................................
58
For N ote see opposite page.
1.70
1.14
8.48
4.65
3.82
160.5
133.2
125.2
112.7
140.5
158.7
128.9
117.7
101.0'
138.0i
158.1
129.3
117.5
104.5
133.3
9.35i
12.23i
3.76i
8.481
137.6i
135.1
157.2i
125.2t
133.81 135.9
130.C►129.8!
157.9' 157.9
117.'J' 117.5i
160.5
134.6
123.9
115.5
134.1
161.8
134.8
127.0
115.4
141.3
161.1
131.8
126.0
111.8
143.4
163.4
134.5
128.0
115.9
142.7
165.6
134.5
128.4
117.4
141.8
165.5
135.4
129.6
116.9
145.1
167.6
133.4
128.7
113.5
147.3
167.2
134.3
127.6
112.2
146.6
168.3
135.9
130.7 130.3
115.1
149.6
138.0
133.1
154.1
123.9
139.2
136.1
156.7
127.C1
140.3
135.9
158.3
126.0i
139.1
137.6
159.3
128.0i
138.5
138.2
160.4
128.4
140.2
139.3
161.0•
129.6i
140.6i
138.7'
161.3i
128.7
141.4
137.7
160 5
127.6
141.5 140.0
139.8 139.7
160.2
130^7 i30.3
Output
A 49
2.13 Continued
Grouping
SIC
code
1967
pro
por
tion
1978
aver
age*
1978
Feb.
Mar.
Apr.
Aug.
Sept.
1979
Oct.
Nov.
Dec.
Jan.r Feb.r Mar.* Apr.®
144.5
128.1
162.9
185.0
145.0
127.6
164.3
186.6
144.2 143.6 145.0 144.9
124.0 121.8 124.1 123.8
166.8 167.8 168.1 168.4
189.4
Index (1967 = 100)
MAJOR INDUSTRY
141.6
124.2
161.0
182.2
137.7
114.4
163.5
184.3
138.2
119.3
159.5
.178.8
140.9
127.2
156.0
175.0
142.5
126.0
160.8
183.2
142.1
124.1
162.3
184.4
144.1
127.6
162.4
184.1
1 Mining and utilities.
2 Mining..................
3 Utilities.................
4
Electric..............
12.05
6.36
5.69
3.88
5 Manufacturing.,
6 Nondurable. .
7 Durable.........
87.95 145.7 139.4 141.4 143.5 147.6 148.7 149.5 150.4 151.8 151.9 152.0 152.9 151.3
35.97 154.8 150.6 151.4 153.2 155.6 157.1 157.4 158.5 159.6 160.4 160.4 161.2 161.2
51.98 139.3 131.5 134.4 136.9 142.2 142.8 144.0 144.8 146.4 146.0 146.1 147.4 144.4
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Mining
.51
.69
4.40
.75
121.0 119.9 127.6 122.3 117.9 115.6
115.7 56.5 78.4 129.5 124.9 114.7
124.7 120.4 123.3 127.3 126.2 124.9
131.1 129.1 128.2 128.9 131.6 133.8
122.1
114.7
124.5
134.0
125.3
145.1
124.9
132.9
Foods...............................
Tobacco products............
Textile mill products.......
Apparel products............
Paper and products.........
8.75
.67
2.68
3.31
3.21
142.9
119.2
140.0
126.3
144.5
140.8
117.7
136.4
121.1
143.9
141.1
115.6
135.1
122.8
144.9
143.1
121.0
138.1
126.1
145.7
144.0
118.6
139.5
127.2
141.9
144.4
120.6
142.2
130.9
142.3
143.2
119.0
142.1
130.6
145.8
144.2 145.7 145.5 146.5 147.1
121.5 122.0 120.0 118.8
143.9 144.9 143.5 141.3 143.2
131.4 132.3 130.2
145.3 147.8 144.9 148.0 i49.’i 148.9
Printing and publishing..............
Chemicals and products.............
Petroleum products.....................
Rubber and plastic products.. . .
Leather and products..................
4.72
7.74
1.79
2.24
129.9
190.7
144.2
254.8
74.1
128.3
183.7
139.0
240.0
73.0
129.1
185.2
140.1
243.1
72.1
128.6
185.5
141.7
249.1
76.0
129.5
192.2
144.1
261.1
74.0
131.0
194.2
147.1
263.1
74.1
130.5
195.9
147.1
264.1
73.8
132.1
197.6
148.9
264.2
74.1
Metal................................
Coal..................................
Oil and gas extraction. . .
Stone and earth minerals.
10
11,12
13
14
Nondurable manufactures
123.9
146.8
123.8
134.2
123.5
116.0
123.2
136.7
133.0
197.9
149.9
267.0
74.0
135.8
200.8
147.9
268.1
75.1
124.1
104.0
121.7
137.0
137.1
201.4
145.5
266.9
73.3
126.4
124.0 129.3
121.7 120.7
136.8
136.8 137.0
201.3
145.0 146.1
269.4
73.0
Durable manufactures
22 Ordnance, private and govern
ment ...................................
23 Lumber and products...............
24 Furniture and fixtures..............
25 Clay, glass, stone products
19,91
24
25
32
3.64 73.7 71.2 72.7 73.0 75.2 74.3 73.9 73.6 74.2 73.4 73.5 75.4
1.64 138.9 135.5 136.5 136.9 136.9 139.2 141.2 142.5 146.0 142.0 141.1 140.0
1,37 154.7 150.1 149.5 148.9 159.0 160.7 160.9 157.6 156.7 161.7 163.6 165.0
2.74 159.2 152.6 154.2 156.7 159.5 160.9 162.1 166.3 167.7 168.6 166.9 165.0
26
27
28
29
30
33
331,2
34
35
36
6.57
4.21
5.93
9.15
8.05
Primary metals.................. .
Iron and steel.................
Fabricated metal products.
Nonelectrical machinery__
Electrical machinery...........
31 Transportation equipment............
37
371
32 Motor vehicles and parts..........
33 Aerospace and miscellaneous
transportation equip
ment ................................... 372-9
34 Instruments...................................
38
35 Miscellaneous manufactures........
39
119.0
113.2
142.6
155.6
154.3
106.2
96.3
136.9
150.1
146.4
106.1
96.4
138.1
151.5
149.5
114.3
109.0
139.5
152.2
152.3
126.0
120.9
145.8
157.3
156.9
127.9
123.2
146.3
158.7
158.3
128.6
123.8
146.0
160.3
157.9
129.0
124.1
146.9
160.3
159.0
130.4
124.5
149.0
161.8
161.9
122.0
112.7
151.0
163.6
163.9
121.4
112.8
152.2
164.6
164.9
121.9
114.5
152.3
166.0
166.1
74.1
121.1
151.0
165.3
165.2
9.27 130.5 118.4 126.5 130.5 133.4 132.8 137.0 139.3 139.5 137.7 136.3 140.3 127.3
4.50 168.3 153.1 165.1 171.7 171.0 168.9 176.8 180.8 179.7 174.5 171.4 177.9 153.8
4.77 94.9 85.8 90.1 91.8 98.3 98.9 99.6 100.2 101.7 103.0 103.2 104.8 102.5
2.11 171.6 163.5 168.7 170.5 175.4 174.6 175.3 172.2 179.5 180.4 181.0 182.3 182.5
1.51 153.3 151.8 153.7 152.9 153.8 154.1 153.9 152.1 153.7 154.8 157.0 157.3 155.7
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
591.2
454.4
318.6
135.8
601.1
463.5
321.6
142.0
608.8
470.7
326.3
144.4
36 Products, total........
37 Final.......................
38 Consumer goods.
39 Equipment..........
1507.4
1390.9
1277.5
1113.4
40 Intermediate.,
1116.6 140.4 137.0 137.5 138.3 141.4 141.9 142.6 144.0 145.6 146.3 146.8 147.2 146.4
609.6
469.3
324.0
145.3
i 1972 dollars.
N ote. Published groupings include some series and subtotals not
613.3
472.2
324.7
147.5
613.6
471.8
324.4
147.7
621.3
478.8
328.1
150.6
625.3
481.6
330.8
150.9
632.0
486.6
332.3
154.3
628.0
481.8
329.0
152.9
630.7
484.3
329.9
154.2
654.6
487.6
331.5
156.2
624.1
477.9
324.6
153.1
shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), December 1977.
A 50
D o m estic N o n fin an c ial S tatistics □ M a y 1979
2.14 HO USING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1976
1977
1978
1978
Item
Sept.
Oct.
1979
Nov.
Dec.
Ja n .'
Feb.
Mar.
Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized..............................
2
1-family............................................
3 2-or-more-family.............................
1,296
4 Started .................................................
5
1-family...........................................
6 2-or-more-family.............................
1,538
7 Under construction, end o f period 1
8 1-family...........................................
9 2-or-more-family.............................
1,147
655
492
829
613
10 Completed. ..........................................
11
1-family...........................................
12 2-or-more-family................. ...........
1,362
1,652
1,026
336
1,254
398
13 Mobile homes shipped.......................
246
277
276
272
639
433
819
407
817
423
44.2
41.6
48.9
48.2
48.1
14
15
16
17
18
Merchant builder activity in
1-family units:
Number sold............................. .........
Number for sale, end of period i ........
Price (thous. of dollars)2
Median:
Units sold....................................
Units for sale...............................
Average:
Units sold....................................
894
402
1,163
377
1,677
1,126
551
1,986
1,451
535
1,442
1,658
1,731
1,078
581
1,092
639
2,019
2,024
1,433
586
1,355
1,378
553
1,866
1,432
r592
1,311
784
526
1,900
1,729
1,135
592
2,054
1,436
r618
1,320
781
539
1,883
1,724
1,664
1,114
610
1,149
515
2,107
2,074
1,539
535
1,502
r605
1,345
1,337
791
545
799
546
1,324
841
483
1,321
787
534
1,579
978
601
1,679
r1,384
1,365
1,352
n.a.
n.a.
n.a.
472
n.a.
n.a.
n.a.
1,139
540
815
550
'946
'438
799
553
1,793
1,263
530
1,885
1,888
1,416
1,321
1,367
484
525
286
280
303
311
'272
268
796
417
900
407
803
412
802
413
774
412
'697
'410
811
407
55.9
n.a.
57.3
n.a.
58.3
n.a.
58.8
n.a.
59.9
n.a.
60.3
n.a.
'61.2
n.a.
60.4
n.a.
54.4
62.7
64.4
65.7
66.3
6 1A
67.7
'68.7
68.5
3,002
3,572
3,905
3,950
4,290
4,350
4,160
3,710
3,620
3,650
38.1
42.2
42.9
47.9
48.7
55.1
50.2
57.7
50.1
57.3
50.7
57.4
50.9
58.1
52.0
59.8
51.9
59.5
53.8
61.8
1,368
498
1,370
530
1,414
468
1,375
510
1,805
1,892
EXISTING UNITS (1-family)
19 Number sold.......................................
Price of units sold (thous. of
dollars):2
20 Median............................................
21
Average...........................................
Value of new construction 4
(millions of dollars)
CONSTRUCTION
148,778
172,552
202,219
209,833
211,984
215,827
218,529
208,595
205,593
211,582
23 Private ................................................. 110,416
24 Residential....................................... 60,519
49,897
25 Nonresidential, total......................
Buildings:
7,182
26
Industrial.................................
12,757
27
Commercial.............................
28
Other........................................
6,155
29
Public utilities and other............ 23,803
134,723
157,455
161,863
164,096
167,931
170,966
162,260
163,830
168,555
7,713
14,789
6,200
25,064
10,762
18,280
6,659
28,666
12,634
18,926
6,686
28,935
12,627
19,410
6,667
30,230
12,529
20,294
6,877
30,637
13,273
20,049
6,922
31,929
12,512
19,272
6,598
31,688
13,022
18,767
6,431
31,540
14,754
20,930
6,900
31,326
37,828
44,762
47,970
47,888
47,897
47,563
46,335
41,763
43,027
30 Public ..................................................
31 Military............................................
32 Highway..........................................
33 Conservation and development. . .
34 Other3..............................................
38,312
1,521
9,439
3,751
23,601
80,957
53,766
1,517
9,280
3,882
23,149
93,088
64,367
1,462
8,627
3,697
23,503
1 Not at annual rates.
2 Not seasonally adjusted.
3 Beginning Jan. 1977 Highway imputations are included in Other.
4 Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
94,682
67,181
1,615
10,862
5,660
29,833
95,162
68,934
1,409
11,428
3,851
31,200
97,594
70,337
1,415
10,956
4,593
30,933
98,793
72,173
1,442
11,176
4,357
30,588
92,188
70,072
1,621
n.a.
n.a.
n.a.
94,070
69,760
1,438
n.a.
n.a.
n.a.
94,646
73,909
1,737
n.a.
n.a.
n.a.
N ote. Census Bureau estimates for all series except (a) mobile homes
which are private, domestic shipments as reported by the Manufactured
Housing Institute and seasonally adjusted by the Census Bureau, and
(b) sales and prices of existing units, which are published by the Na
tional 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.
Prices
2.15
A51
C O N S U M E R A N D P R O D U C E R P R IC E S
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—
Item
1978
Mar.
1979
Mar.
3 months (at annual rate) to—
1978
June
1 month to—
1979
Sept.
Dec.
Mar.
1978
Nov.
1979
Dec.
Jan.
Feb.
Mar.
Index
level
Mar.
1979
(1967
= 100)2
Consumer prices 3
1 All items........................................................
6.5
10.2
10.7
8.5
8.5
13.0
.6
.6
.9
1.2
1.0
209.1
2 Commodities................................................
3
4 Commodities less food.............................
Durable.................................................
5
6
Nondurable..........................................
5.7
18.3
4.6
4.7
4.1
10.4
12.8
9.4
9.9
8.8
10.5
18.3
7.2
9.0
5.5
7.3
4.8
8.3
9.1
6.9
9.6
10.2
9.6
11.3
6.7
14.5
17.7
12.9
10.0
16.5
.7
.6
.7
1.0
.5
.8
1.0
.8
.8
.6
1.1
1.4
.9
.9
1.1
1.2
1.6
1.0
1.0
'.8
1.1
1.1
1.1
.5
1.9
200.5
230.4
185.9
184.9
185.7
7 Services.........................................................
8 R ent..........................................................
9 Services less rent......................................
7.8
6.4
8.1
9.9
6.7
10.3
11.0
8.2
11.3
10.3
7.3
10.8
7.2
7.7
7.1
10.6
3.6
11.7
.5
.7
.4
.4
.6
.4
.5
.3
.6
1.1
.4
1.1
.9
.2
1.0
225.1
171.3
235.0
6.2
6.3
9.5
9.6
9.3
13.7
8.9
10.4
13.2
9.3
9.7
14.6
8.5
7.7
10.9
12.0
9.3
16.7
.6
.7
.8
.6
.4
.4
.8
.5
.8
1.0
.9
1.8
1.0
.8
1.3
203.8
200.4
248.2
'1 .0
'1 .2
1.0
1.0
208.8
1.2
1.6
.9
.8
1.1
1.2
1.1
.6
207.6
225.9
196.5
211.4
Other groupings
10 All items less food.......................................
11 All items less food and energy...................
Producer prices4
7.4
>■10.5
13.7
10.6
11.4
10.5
9.1
7.5
4.9
8.8
7.0
'11.1
'15.3
'8 .8
8.8
15.6
20.1
12.9
9.8
.6
.8
.6
.8
1.2
1.2
'1 .2
.6
'1.3
1.8
'1.1
1.0
11.8
9.6
9.9
7.2
7.5
6.9
13.0
'11.2
17.3
13.2
.9
.9
.7
'.7
1.4
'1.1
1.6
.9
1.0
1.1
240.0
231.9
20.1
19.8
14.9
26.6
16.9
2.8
'19.8
'21.2
29.5
30.6
1.7
.9
1.2
.3
'1 .6
2.8.
2.8
'3 .8
2.1
.2
331.8
247.2
10.4
13 Finished goods.............................................
6.5
14
15
16
17
Consumer..................................................
Foods....................................................
Excluding foods...................................
Capital equipment...................................
6.1
7.3
5.4
7.7
11.1
12.8
10.2
8.6
18 Materials......................................................
19 Intermediate1............................................
Crude
20
Nonfood................................................
21
Food......................................................
5.8
6.4
5.0
4.7
10.3
1 Excludes intermediate materials for food manufacturing and manufactured animal feeds.
2 Not seasonally adjusted.
'.7
3 Figures for consumer prices are those for all urban consumers,
4 Formerly wholesale prices.
Source. Bureau of Labor Statistics.
A 52
2.16
D o m estic N o n fin an c ial S tatistics □ M a y 1979
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1976
1977
1978
Account
1977
Q4
1978
Q2
Ql
1979
Q3
Q4
Ql*
Gross national product
1
By source
2 Personal consumption expenditures......................
1,700.1
1,887.2
2,107.6
1,958.1
1,992.0
2,087.5
2,136.1
2,214.8
2,265.6
1 ,0 9 0 .2
1 ,206.5
1,340.1
1,255.2
197.5
526.5
616.2
187.2
496.9
571.1
1 ,276.7
1,322.9
1,356.9
1,403.9
1,4 4 4 .7
Durable goods..................................................
Nondurable goods............................................
Services..............................................................
156.6
442.6
491.0
6 Gross private domestic investment........................
7 Fixed investment...............................................
8
Nonresidential................................................
9
Structures...................................................
10
Producers’ durable equipment.................
11
Residential structures...................................
12
Nonfarm....................................................
243.0
3
4
5
232.8
164.6
57.3
107.3
68.2
65.8
178.4
479.0
549.2
297.8
345.6
313.5
190.4
222.6
200.3
282.3
329.6
63.9
126.5
91.9
88.9
77.8
144.8
107.0
103.8
300.5
67.4
132.8
100.2
97.5
183.5
501.4
591.8
350.1
364.0
371.6
220.1
227.5
237.1
80.9
146.6
109.0
105.7
85.1
152.0
113.4
110.2
242.6
20.1
22.1
13.6
14.6
13.5
13.4
18.1
19.6
-5 .5
-1 0 .7
210.1
220.8
221.9
229.5
-7 .6
- 1 0 .3
424.7
439.8
454.5
154.0
285.8
162.5
292.0
459.4
2,122.5
2,201.3
13.1
10.4
16.7
16.9
15 Net exports o f goods and services.........................
16 Exports..............................................................
17 Im ports..............................................................
7.4
- 1 1 .1
- 1 2 .0
163.2
155.7
204.8
216.8
- 2 3 .2
- 2 4 .1
175.5
186.6
18 Government purchases o f goods and services.. . .
19 Federal...............................................................
20 State and 1ocal..................................................
394.0
433.9
129.9
229.6
By major type of product
21 Final sales, total....................................................
22 Goods .................................................................
23
Durable..........................................................
24
Nondurable....................................................
25 Services..............................................................
26 Structures..........................................................
76.6
143.5
105.3
102.1
181.7
205.8
205.4
210.9
416.7
145.1
248.9
153.8
280.2
152.2
260.3
151.5
265.2
147.2
277.6
1,689.9
1,871.6
2,091.6
1,945.0
1,975.3
2,067.4
760.3
832.6
859.6
861.8
912.2
918.4
341.3
491.3
862.8
191.8
376.8
541.7
962.5
226.7
10.2
5.3
4.9
15.6
8.4
7.2
16.0
11.7
4.3
30 M emo: Total GNP in 1972 dollars.................... 1,271.0
1,332.7
1,385.7
27 Change in business inventories............................
28 Durable goods..................................................
29 Nondurable goods............................................
325.3
68.5
137.1
100.3
97.3
16.0
16.7
412.5
304.6
455.7
778.0
161.9
213.4
569.7
661.6
345.4
306.0
15.6
15.0
359.5
209.1
553.4
641.4
322.7
10.2
12.2
172.1
195.2
199.5
531.7
625.8
205.6
Change in business inventories........................
Nonfarm........................................................
13
14
197.8
519.3
605.8
336.5
927.3
350.5
972.5
353.5
85.0
157.6
110.9
107.8
229.0
239.2
164.7
294.8
2,247.4
1,000.7
351.2
510.6
926.4
203.8
375.8
536.4
952.0
223.4
380.1
547.2
973.7
235.0
13.1
6.3
6.8
16.7
14.8
1.9
20.1
10.8
9.3
13.6
10.2
3.4
13.5
10.8
2.7
18.1
22.4
- 4 .3
1,354.5
1,354.2
1,382.6
1,391.4
1,414.7
1,417.3
347.4
512.2
893.6
204.9
400.1
572.4
997.7
244.7
421.8
579.0
1,025.2
239.6
National income
31
1,359.2
1,515.3
r1,703.7
1,576.9
1,603.1
1,688.1
1,728.4
"1,795.2
n.a.
32 Compensation of employees................................ 1,036.8
33
890.1
Wages and salaries............................................
187.6
34
Government and government enterprises . .
35
O ther..............................................................
702.5
146.7
36 Supplement to wages and salaries.....................
37
Employer contributions for social
insurance................................................
69.7
38
Other labor income.......................................
77.0
1,153.4
1,301.4
1,199.7
1,241.0
1,101.0
1,317.1
1,359.8
1,405.9
983.6
1,287.8
39 Proprietors ’ income1..............................................
40 Business and professional1...............................
Farm 1................................................................
41
8 8.6
70.2
18.4
200.8
782.9
216.1
884.8
1,021.2
208.1
813.1
1,050.8
211.4
839.3
1,0 9 0 .2
1,113.4
1,149.4
1,184.5
197.6
203.6
921.X
210.4
221.4
213.9
876.3
216.8
896.6
222.3
225.1
959.5
169.8
200.5
178.4
190.2
79.4
90.4
94.5
105.9
82.4
96.1
90.2
100.0
93.6
104.0
107.9
95.1
98.6
111.8
105.5
115.9
99.8
113.2
107.3
105.0
110.1
114.5
123.0
92.6
30.4
123.7
79.5
20.3
87.8
25.3
82.3
25.1
83.1
21.9
86.1
24.0
89.6
25.0
93.1
30.6
42 Rental income of persons2...................................
22.5
22.5
23.4
22.7
22.8
22.2
24.3
24.4
24.7
43 Corporate profits 1................................................
44 Profits before tax 3............................................
45 Inventory valuation adjustment.......................
46 Capital consumption adjustment.....................
127.0
155.9
-1 4 .5
- 1 4 .4
144.2
173.9
-1 4 .8
-1 4 .9
"159.5
"202.0
- 2 4 .4
-1 8 .1
148.2
178.3
- 1 4 .8
-1 5 .3
132.6
172.1
-2 3 .5
-1 6 .1
163.4
205.5
-2 4 .9
- 1 7 .2
165.2
205.4
-2 0 .9
-1 9 .3
"176.6
"224.9
- 2 8 .4
-1 9 .9
n.a.
n.a.
-4 0 .3
-2 0 .7
47 Net interest............................................................
84.3
95.4
106.3
99.0
101.7
104.6
107.4
111.4
114.2
1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustments.
3 For after-tax profits, dividends, and the like, see table 1.50.
Source. Survey o f Current Business (U.S. Dept, o f Commerce).
National Income Accounts
A 53
2.17 PERSONAL INCOME AND SAVING
Billions o f current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1976
1977
1978
Account
1977
Q4
1978
Ql
Q2
1979
Q3
Q4
Qlp
Personal income and saving
1 Total personal income...........................................
1,380.9
1,529.0
1,708.0
1,593.0
1,628.9
1,682.4
1,731.7
1,789.0
1,834.1
2 Wage and salary disbursements ..................................
3 Commodity-producing industries....................
4
Manufacturing..............................................
5 Distributive industries......................................
6 Service industries..............................................
7 Government and government enterprises.......
890.1
983.6
1 ,021.2
1,050.8
307.5
237.5
216.4
178.6
187.6
1,100.9
1 ,0 9 0 .2
1,11 3 .2
1 ,149.4
1,184.1
343.7
266.3
239.1
200.1
200.8
390.2
299.9
268.9
225.8
216.1
357.1
277.3
247.5
208.5
208.1
365.9
286.9
257.0
216.5
211.4
387.0
296.1
266.4
222.8
213.9
396.4
302.0
271.6
228.5
216.7
411.3
314.4
280.4
235.4
222.3
426.4
327.3
290.4
242.6
225.3
8 Other labor income..............................................
77.0
90.4
105.9
96.1
100.0
104.0
107.9
111.8
115.9
9 Proprietors ’ income1.....................................................
10 Business and professional1...............................
11
Farm 1................................................................
8 8 .6
113.2
107.3
105.0
79.5
20.3
110.1
114.5
70.2
18.4
99.8
123.0
123.7
24.7
87.8
25.3
82.3
25.1
83.1
21.9
86.1
24.0
89.6
25.0
92.6
30.4
93.1
30.6
12 Rental income of persons2...................................
22.5
22.5
23.4
22.7
22.8
22.2
24.3
24.4
13 Dividends..............................................................
37.9
43.7
49.3
46.3
47.0
48.1
50.1
51.9
54.0
14 Personal interest income.......................................
126.3
141.2
159.0
146.0
151.4
156.3
161.7
166.6
171.8
15 Transfer payments................................................
16 Old-age survivors, disability, and health
insurance benefits......................................
193.9
208.8
226.0
215.9
219.2
220.6
230.4
233.9
238.1
92.9
105.0
117.4
110.1
112.1
113.7
121.1
122.7
124.5
17
L ess: Personal contributions for social
insurance....................................................
55.5
61.0
69.7
62.6
67.2
69.2
70.5
72.1
78.8
18 E quals: Personal income...................................
1,380.9
1,529.0
1,708.0
1,593.0
1,628.9
1,682.4
1,731.7
1,789.0
1,834.1
Less: Personal tax and nontax paym ents.. . .
196.5
226.0
256.2
233.3
237.3
249.1
263.2
275.1
270.6
20 E quals: Disposable personal income................
1,184.4
1,303.0
1,451.8
1,359.6
1,391.6
1,433.3
1,468.4
1,513.9
1,563.5
21
19
L ess: Personal outlays.....................................
1,116.3
1,236.1
1,374.9
1,285.9
1,309.2
1,357.0
1,392.5
1,440.9
1,482.6
22 Equals: Personal saving.....................................
68.0
66.9
76.9
73.7
82.4
76.3
76.0
73.0
80.9
M emo items :
Per capita (1972 dollars):
Gross national product.....................................
Personal consumption expenditures................
Disposable personal income.............................
Saving rate (percent)...........................................
5,906
3,808
4,136
5.7
6,144
3,954
4,271
5.1
6,340
4,080
4,421
5.3
6,226
4,030
4,365
5.4
6,215
4,009
4,370
5.9
6,334
4,060
4,399
5.3
6,360
4,092
4,428
5.2
6,452
4,159
4,485
4.8
6,454
4,170
4,512
5.2
23
24
25
26
1
Gross saving
270.7
290.8
'320.1
304.3
305.4
319.9
325.7
'329.6
n.a.
Personal saving..................................................
Undistributed corporate profits1.....................
Corporate inventory valuation adjustment....
68.0
24.8
-1 4 .5
66.9
28.7
- 1 4 .8
76.9
26.3
-2 4 .4
73.7
28.0
- 1 4 .8
82.4
15.6
-2 3 .5
76.3
30.3
- 2 4 .9
76.0
29.0
- 2 0 .9
73.0
'30.3
-2 8 .4
80.9
n.a.
- 4 0 .3
Capital consumption allowances:
Corporate......................................................
Noncorporate................................................
111.5
66.3
120.9
74.3
132.5
84.4
124.6
77.9
127.4
79.9
130.5
82.8
134.7
86.1
137.4
89.0
140.3
91.4
-3 3 .2
-1 8 .6
-1 .6
-2 9 .9
28.3
-2 9 .6
-4 8 .1
29.6
38 Investment........................................................................
39 Gross private domestic.....................................
40 Net foreign........................................................
241.7
320.4
243.0
- 1 .2
276.9
297.8
-2 0 .9
345.6
- 2 5 .2
313.5
-3 4 .1
322.7
-3 6 .3
345.4
-1 8 .9
350.1
-2 3 .5
364.0
-2 2 .1
41 Statistical discrepancy..........................................
4.2
4.7
'1.8
4.8
2.2
.5
.4
'4.3
27 Gross private saving..............................................
28
29
30
31
32
33
34 Government surplus, or deficit ( —), national
35
36
income and product accounts.............................
Federal..............................................................
State and local..................................................
- 5 3 .8
20.7
6 .2
-5 8 .6
29.0
- 5 2 .6
31.5
- 2 3 .6
29.8
.6
-2 2 .8
23.4
r —20.8
28.8
279.5
286.4
326.6
326.6
342.0
- 2 1 .1
r8 .0
37 Capital grants received by the United States,
n et_________________________________
1.1
1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustment.
n.a.
n.a.
n.a.
Source. Survey o f Current Business (U.S. Dept, of Commerce).
346.7
371.6
-2 5 .0
n.a.
A 54
In te rn a tio n a l S tatistics □ M a y 1979
3.10 U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions o f dollars; quarterly data are seasonally adjusted except as noted.1
1977
Item credits or debits
1976
1977
1978
1978
Q4
1 Merchandise exports.................
2 Merchandise imports................
3 Merchandise trade balance2 .
4 Military transactions, net..........
5 Investment income, net3...........
6 Other service transactions, n e t.
7 Balance on goods and services3,4.....................
8 Remittances, pensions, and other transfers...
9 U.S. government grants (excluding military).
10 Balance on current account3.
11 Not seasonally adjusted 3. .
12 Change in U.S. government assets, other than official
reserve assets, net (increase, —) .....................................
13 Change in U.S. official reserve assets (increase, —) ............ .
14 G old...................................................................................
15 Special Drawing Rights (SDRs).......................................
16 Reserve position in International Monetary Fund (IM F ).,
17 Foreign currencies............................................................. .
114,694 120,576 141,844
124,047 151,706 175,988
-9 ,3 5 3 -31,130 -34,144
312
15,933
2,469
Ql
Q2
Q3
Q4
29,637
39,009
-9 ,3 7 2
30,787
42,707
-11,920
35,256
43,125
-7 ,8 6 9
36,486
44,478
-7 ,9 9 2
39,315
45,678
-6 ,3 6 3
1,334
17,507
1,705
531
19,915
2,814
5
3,812
482
210
4,877
532
444
4,581
835
12
4,878
666
-1 3 6
5,580
781
9,361 -10,585
-10,885
-5 ,0 7 2
-6 ,3 0 2
-2 ,0 0 9
-2 ,4 3 6
-1 3 8
-1 ,9 3 2
-2 ,7 7 6
-2,0 4 8
-3,0 2 8
-473
-591
-5 0 4
-778
-536
-781
-4 9 6
-779
-513
-691
4,339 -15,292
-15,961
-6 ,1 3 6
-7 ,5 8 4
-3 ,3 2 6
-3 ,7 1 1
-1 ,3 4 2
-1 ,8 7 8
-3,145
- 5 ,2 4 5
-4,213
-3 ,6 7 9
-4,657
-2 ,5 3 0
-2 3 1
872
-838
- 6 ,3 8 2
- 2 ,8 0 3
-6 ,3 2 6
-896
-1,176
-1,498
246
329
115
-4 4 9
-1 ,0 8 6
182
-7 8
-2 ,2 1 2
-240
-118
-121
-294
302
-6 5
1,249
4,231
-4,543
-6 0
-2 9
42
47
-1 6
324
-6 2
-1 0 4
437
-4
-4 3
195
-3 7
-6 5
1,412
3,275
-4 ,4 4 0
18 Change in U.S. private assets abroad (increase, —) 3.
-43,865
-30,740
-54,963
-13,862
-14,417
-5,320
-8,833
-2 6 ,3 9 4
19
Bank-reported claims. ...........................................
-21,368
-11,427
-33,957
-8 ,7 5 0
-6 ,2 7 0
-503
-5,622
-21,562
20
21
22
23
24
Nonbank-reported claims ........................
-2 ,0 3 0
- 1 ,7 0 0
- 2 ,2 5 6
- 1 ,,184
- 2 ,2 2 2
267
-2 6 5
-5 7
-2 ,1 6 5
-949
-4 ,9 7 6
80
187
-1,103
-3,981
-3 6
62
-9 8
-467
-2,708
-5 2
-213
-8 7 0
-3 ,6 9 7
15,760
-5,6 8 5
4,852
19,040
3,029
443
350
946
84
13,797
-115
1,968
3,134
256
Long-term............................................
Short-term...........................................
U.S. purchase of foreign securities, net.
U.S. direct investments abroad, net3. . .
25 Change in foreign official assets in the United States
(increase, + ) ...............................................................
26 U.S. Treasury securities................................................
27 Other U.S. government obligations............................
28 Other U.S. government liabilities5.............................
29 Other U.S. liabilities reported by U.S. banks.............
30 Other foreign official assets®........................................
33
25
5
-2 ,2 8 9
-2,035
-1,7 2 5
-3
,3
8
9
-8,8 5 2
-5 ,3 9 8
-11,614 -12,215 -15,361
-279
-905
-731
-3 ,1 9 7
18,073
37,124
9,333
573
4,993
969
2,205
30,294
2,308
1,644
773
2,105
31 Change in foreign private assets in the United States
(increase, -f-)3..................................................................
18,897
13,746
29,293
4,522
2,336
6,090
10,637
10,230
32
U.S. bank-reported liabilities.
10,990
6,719
16,860
3,143
-314
1,836
7,965
7,373
33
34
35
36
U.S. nonbank-reported liabilities .......................................
257
1,676
37
38
Long-term.......................................................................
Short-term......................................................................
Foreign private purchases of U.S. Treasury securities,
n et...............................................................................
Foreign purchases of other U.S. securities, n e t..............
Foreign direct investments in the United States, net3. ...
39 Allocation of SDRs...............................................................
40 Discrepancy ..............................................................................
41
Owing to seasonal adjustments..........................................
42 Statistical discrepancy in recorded data before seasonal
adjustment.................................................................. .
43
44
45
46
M emo items:
Changes in official assets:
U.S. official reserve assets (increase, —) ....................... .
Foreign official assets in the United States (increase, + ).,
Changes in Organization of Petroleum Exporting Coun
tries (OPEC) official assets in the Unites States (part
of line 25 above).............................................................
Transfers under military grant programs (excluded from
lines 1, 4, and 9 above).................................................
24,063
656
2,810
5,043
1,395
15,543
12,900
973
390
909
371
425
12,965
117
804
1,456
418
495
-5,728
211
-312
-493
637
—53
-4 9
1,725
-2 4 2
667
38
457
-6 8
316
248
986
106
880
-125
72
563
2,869
3,338
2,248
2,899
5,611
-299
803
450
881
462
812
847
1,308
1,852
-1 ,0 5 3
533
2,206
1,573
596
741
9.300
-9 2 7
11.449
771
4,555
9,087
108
-2 ,4 5 5
1,431
9.300
-927
11.449
-6 7 4
3,638
8,979
893
-2,061
-2 ,5 3 0
13,080
-231
35,480
872
31,157
15,153
246
14,956
329
-5 ,3 7 3
115
4,502
182
17,072
9,581
6,733
-570
1,024
1,963
-2,838
-1,592
1,897
373
194
274
71
75
57
69
73
-5 0 7
-958
451
-620
877
2,783
1,284
4,347
11Seasonal factors are no longer calculated for lines 13 through 46.
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 Includes reinvested earnings of incorporated affiliates.
4 Differs from the definition of “net exports of goods and services” in
the national income and product (GNP) account. The GNP definition
33,967
1,445
917
-1 ,5 6 2
-6 3 0
excludes certain military sales to Israel from exports and excludes U.S.
government interest payments from imports.
5 Primarily associated with military sales contracts and other transac
tions arranged with or through foreign official agencies.
6 Consists of 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 Current
Business (U.S. Department of Commerce).
Trade and Reserve A ssets
3.11
A 55
U.S. FOREIGN TRADE
Millions o f dollars; monthly data are seasonally adjusted.
Item
1976
1977
1978
1978
1979
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
13,274
12,901
13,451
13,282
13,132
13,507
14,452
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments........................................
115,156
2 GENERAL IMPORTS including
merchandise for immediate con
sumption plus entries into bonded
warehouses......................................
121,009
147,685
172,026
14,820
14,852
14,825
15,032
16,231
14,806
15,273
3 Trade balance......................................
-5 ,8 5 3
-26,535
-28,451
-1 ,5 4 5
-1 ,9 5 0
-1 ,3 7 4
-1 ,7 4 9
-3 ,0 9 9
-1 ,2 9 9
-821
121,150
143,575
Note. 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. The internationalaccounts-basis data adjust the Census basis data for reasons of coverage
and timing. On the export side, the largest adjustments are: (a) the addition
of exports to Canada not covered in Census statistics, and (b) the exclusion
of military exports (which are combined with other military transactions
3.12
and are reported separately in the “service account”). On the import
side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not
included in Census statistics.
Source. FT 900 “Summary of U.S. Export and Import Merchandise
Trade” (U.S. Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1978
Type
1976
1977
1978
1979
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.®
3 21,658
3 21,403
1 Total....................................................
18,747
19,312
18,650
18,935
17,967
18,650
20,468
r20,292
2 Gold stock, including Exchange
Stabilization Fund1........................
11,598
11,719
11,671
11,655
11,642
11,671
11,592
11,544
11,479
11,418
3 Special Drawing Rights2...................
2,395
2,629
4,374
3,097
1,522
1,558
2,661
2,672
3 2,667
3 2,602
4 Reserve position in International
Monetary Fund...............................
4,434
4,946
1,047
4,147
1,099
1,047
1,017
1,120
3
5 Convertible foreign currencies4.........
320
18
1,558
36
3,704
4,374
5,198
*•4,956
1 Gold held under earmark at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United
States; see table 3.24.
2 Includes allocations by the International Monetary Fund of SDRs as
follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710
million on Jan. 1, 1972; and $1,139 million on Jan. 1, 1979; plus net
transactions in SDRs.
1,121
6,391
3
1,097
6,286
3 Beginning July 1974, the IM F adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position in
the IM F also are valued on this basis beginning July 1974.
4 Beginning November 1978, valued at current market exchange rates.
A 56
3.13
In te rn a tio n a l S tatistics □ M a y 1979
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
Millions of dollars, end of period
19782
Asset account
1975
1976
1979
1977
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.*
292,305 "295,643 "305,777
294,774
295,017
"76,690
"12,161
4,529
15,340
15,065
"277,767
"68,403 "70,340
101,043 "102,805
22,993
23,679
"78,692 "80,943
267,772
All foreign countries
176,493
219,420
258,897
274,929
287,369
2
3
4
Claims on United States .................
6,743
10,024
4,323
3,566
11,623
14,976
Parent bank.................................
Other............................................
3,665
3,078
7,889
5
6
7
8
9
Claims on foreigners .......................
163,391
204,486
10
Other assets.....................................
6,359
7,045
8,425
10,123
10,330
11,015
11 Total payable in U.S. dollars.............
132,901
167,695
193,764
200,779
212,063
210,939
7,595
11,049
9,219
14,168
11,328
1 Total, all currencies............................
Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners....................
34,508
69,206
5,792
53,886
45,955
83,765
10,613
64,153
7,806
3,817
5,818
4,206
238,848
254,782
55,772
91,883
14,634
76,560
58,746
92,811
23,354
79,871
12
13
14
Claims on United S tates .................
6,408
Parent bank.................................
Other............................................
3,628
2,780
4,264
3,332
15
16
17
18
19
Claims on foreigners .......................
123,496
156,896
178,896
187,041
37,909
66,331
9,022
43,634
44,256
70,786
12,632
51,222
46,326
69,560
20,255
50,900
20
Other assets.....................................
2,997
3,204
3,820
4,519
Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners....................
28,478
55,319
4,864
34,835
7,692
3,357
5,628
3,591
10,693
4,283
262,063
63,493
95,222
23,896
79,452
10,535
3,633
12,169
7,879
4,290
"9,046
"4,380
269,121
271,131
67,748
98,104
23,936
79,333
"11,086
194,882
4,438
4,729
52,887
72,644
20,301
49,050
10,789
4,551
66,653
97,696
23,716
79,707
10,188
4,877
267,728
64,249
99,147
24,550
79,782
"11,320
11,662
12,224
"218,289 "224,290
214,313
213,097
"15,732
"11,975
"3,757
14,506
14,127
"200,777 "203,498
"54,721
"55,410
76,473
"78,389
19,618
19,868
49,965
"49,831
194,417
51,799
73,459
20,092
49,067
193,269
49,615
74,393
20,613
48,648
"12,530
"8,877
"3,653
7,688
3,640
193,457
50,880
71,892
20,505
50,180
r13,426
10,596
3,910
9,958
4,169
"4,982
5,060
5,390
5,701
United Kingdom
21
22
23
24
Claims on United S tates .................
25
26
27
28
29
Claims on foreigners ................
30
Other assets......................... ...........
Parent bank..................... ...........
Other................................ ...........
Other branches of parent bank..
Banks................................. .........
Public borrowers1........... ...........
Nonbank foreigners........ ...........
74,883
81,466
90,933
93,333
99,084
101,887
102,032
106,593
100,786
101,179
2,392
3,354
4,341
2,624
2,940
3,706
1,595
1,029
5,370
3,960
3,518
823
2,014
926
3,119
3,912
87,772
93,364
1,449
943
70,331
17,557
35,904
881
15,990
75,859
19,753
38,089
1,274
16,743
84,016
22,017
39,899
2,206
19,895
21,661
40,350
4,583
21,178
24,691
42,677
4,549
21,447
2,230
889
95,774
26,516
43,926
4,692
20,640
2,779
927
95,220
25,802
44,353
4,526
20,539
4,448
922
2,930
1,030
98,137
93,690
27,830
45,013
4,522
20,772
25,911
42,531
4,549
20,699
2,689
1,223
94,032
24,474
44,032
4,548
20,978
2,159
2,253
2,576
2,937
2,780
2,994
3,106
3,086
3,136
3,235
57,361
61,587
66,635
64,449
70,008
70,209
71,761
75,860
70,502
70,525
3,275
4,100
2,335
2,598
1,481
854
1,895
703
2,877
32
33
34
Claims on United S tates .................
2,273
35
36
37
38
39
Claims on foreigners .......................
54,121
40
Other assets.....................................
967
Parent bank.................................
Other............................................
2,376
978
1,445
828
Other branches of parent bank.. 15,645
Banks........................................... 28,224
Public borrowers1.......................
648
Nonbank foreigners.................... . 9,604
2,374
902
3,431
669
61,408
18,947
28,530
1,669
12,263
60,910
66,242
17,249
28,983
846
10,410
18,305
27,268
3,544
11,793
20,934
29,859
3,471
11,978
824
1,126
1,204
1,168
57,488
2,187
690
2,727
748
3,475
5,113
3,738
3,618
66,132
67,031
69,416
65,364
65,416
1,255
1,331
1,400
1,491
87,993
21,377
29,680
3,595
11,480
1,200
21,197
30,565
3,467
11,802
4,386
727
22,838
31,482
3,317
11,779
2,878
860
21,171
29,113
3,342
11,738
2,610
1,008
19,884
30,185
3,414
11,933
Bahamas and Caymans
41 Total, all currencies............................
45,203
66,774
79,052
85,654
88,755
86,291
"89,720
"91,085
87,899
3,229
3,508
5,782
5,620
10,053
7,247
r7 ,501
r8,985
9,753
1,141
2,367
3,051
2,731
11,477
31,638
11,392
21,285
42
43
44
Claims on United States .................
45
46
47
48
49
Claims on foreigners ........................
41,040
50
Other assets....................................
933
1,217
1,599
2,085
2,051
2,176
"2,213
"2,326
2,354
2,492
41,887
62,705
73,987
79,701
83,007
80,223
"83,710
"84,767
81,669
81,736
Parent bank.................................
Other............................................
Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners....................
51 Total payable in U.S. dollars.............
For notes see opposite page.
1,477
1,752
5,411
16,298
3,576
15,756
62,048
8,144
25,354
7,105
21,445
71,671
11,120
27,939
9,109
23,503
2,751
2,869
77,949
12,134
29,749
12,461
23,605
7,090
2,963
4,255
2,992
"4,437
"3,064
"5,779
"3,206
76,651
76,868
12,348
29,472
12,362
22,469
12,618
30,317
12,094
21,839
"80,006
"13,526
"33,060
11,535
"21,885
"79,774
"12,906
"33,675
11,520
21,673
6,646
3,107
75,792
8,994
5,780
3,214
76,507
11,841
31,534
12,125
21,007
Overseas Branches
A 57
3.13 Continued
Liability account
1975
1976
19782
1977
Aug.
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.*
292,305 '295,643
'305,777
19 A,11A
295,017
' 57,102
'30,032
9,084
'17,986
' 58,650
'28,843
'12,467
'17,340
52,366
53,717
' 228,876
65,903
93,759
30,922
'38,292
' 236,935
68,064
'97,556
30,650
'40,665
232,155
231,038
'9,665
'10,192
10,253
10,262
'222,873 '230,160
220,210
219,734
' 56,514
'27,818
'12,213
'16,483
50,336
51,527
' 162,756 ' 168,380
53,409
53,950
'58,663
'62,849
25,377
25,118
'26,463
'25,307
164,299
All foreign countries
52 Total, all currencies.
176,493
219,420
258,897
274,929
287,369
20,221
32,719
44,154
52,441
49,325
53
54
55
56
To United S tates ...........................
57
58
59
60
61
To foreigners .................................
62
Other liabilities..................
6,456
6,747
8,163
8,514
9,311
9,647
63 Total payable in U.S. dollars.
135,907
173,071
198,572
204,938
215,496
215,518
19,503
31,932
42,881
50,325
r26 ,112
Parent bank...............................
Other banks in United States..
Nonbanks..................................
Other branches of parent bank.
Banks.........................................
Official institutions...................
Nonbank foreigners..................
12,165
8,057
|
149,815
34,111
72,259
22,773
20,672
19,773
12,946
179,954
44,370
83,880
25,829
25,877
64
65
66
67
To United S tates ...........................
Parent bank...............................
Other banks in United States..
Nonbanks..................................
11,939
; 7,564
19,559
12,373
68
69
70
71
72
To foreigners .................................
112,879
137,612
73
Other liabilities.
Other branches of parent bank.
Banks.........................................
Official institutions...................
Nonbank foreigners..................
28,217
51,583
19,982
13,097
3,526
37,098
60,619
22,878
17,017
3,527
51,506
24,542
19,613
r27,004
7,659
r17,778
r22,930
10,064
r16,331
r25,486
8,362
r17,658
206,579
213,974
56,955
228,733
231,152
53,244
94,140
28,110
31,085
89,234
31,461
36,324
61,599
97,629
33,086
36,419
47,171
65,010
95,956
32,246
37,940
49,273
24,213
18,669
7,286
'16,927
'21,980
9,724
r15,467
'24,551
8,008
'16,714
151,363
150,478
163,626
161,542
43,268
64,872
23,972
19,251
45,620
55,285
26,184
23,389
4,328
4,135
49,978
63,271
27,367
23,010
52,052
58,912
26,341
24,237
4,699
4,703
'.55,148
'29,202
8,813
'17,133
24,026
8,221
20,119
65,318
92,795
31,087
42,955
23,088
7,960
19,288
51,356
58,491
25,517
28,935
23,583
9,162
20,972
62,612
94,306
31,667
42,453
22,522
8,856
20,149
162,474
48,697
59,392
26,096
28,289
4,969
'5,266
5,575
5,733
United Kingdom
74 Total, all currencies.....................
74,883
81,466
90,933
93,333
99,084
101,887
102,032
106,593
100,786
101,179
75
76
77
78
To United States .....................
5,646
5,997
7,753
6,978
8,033
8,347
9,053
' 10,675
2,669
4,395
'3,611
8,118
9,538
1,585
2,693
3,840
2,055
3,216
4,267
79
80
81
82
83
To foreigners .................................
67,240
7,092
36,259
17,273
12,605
87,678
89,979
'92,257
12,928
'40,252
20,181
18,896
88,942
87,789
6,494
32,964
16,553
11,229
84
Other liabilities.............................
1,997
2,122
Parent bank.........................
Other banks in United States.. } 3,523
Nonbanks.............................
Other branches of parent bank.
Banks.........................................
Official institutions...................
Nonbank foreigners..................
87
88
89
2,176
2,949
3,222
2,367
3,234
3,452
1,451
6,302
1,905
2,290
2,783
73,228
80,736
82,991
2,241
2,445
3,364
3,373
3,561
3,632
3,661
3,726
3,843
IQ,111
71,158
72,812
77,030
72,048
72,293
7,650
7,985
8,666
' 10,273
2,618
4,307
'3,348
7,736
9,179
9,376
37,893
18,318
15,149
11,708
35,293
19,863
16,127
12,006
37,677
21,493
16,502
12,175
39,277
21,193
17,334
89,347
13,153
38,167
20,182
17,845
57,820
63,174
67,573
64,918
To United S tates ...........................
5,415
5,849
7,480
6,606
1,182
4,667
1,416
6,064
1,852
2,209
2,545
1,805
3,092
2,753
2,116
2,902
2,967
2,321
3,178
3,167
85 Total payable in U.S. dollars...........
86
1,872
3,150
3,011
1,198
4,798
Parent bank...............................
2,083
Other banks in United States..
Nonbanks.................................. } 3,332
12,856
36,558
19,700
19,828
1,539
2,601
3,596
11,303
37,221
20,313
18,961
2,018
3,122
4,039
To foreigners .................................
56,372
58,977
57,015
61,802
62,631
10,302
23,044
16,317
12,968
' 65,271
9,764
'25,622
16,309
13,576
62,629
61,405
7,505
25,608
15,482
10,382
9,163
20,601
16,113
11,138
61,231
Other branches of parent bank.
Banks.........................................
Official institutions...................
Nonbank foreigners..................
51,447
92
93
94
95
Other liabilities.............................
959
953
1,116
1,297
1,346
1,371
1,515
1,486
1,683
1,709
90
91
5,442
23,330
14,498
8,176
5,874
25,527
15,423
9,547
9,317
22,936
17,659
11,319
9,301
23,260
17,106
12,135
10,014
22,058
15,834
14,723
8,393
22,477
16,544
13,991
Bahamas and Caymans
45,203
66,774
79,052
85,654
88,755
86,291
'89,720
'91,085
87,899
87,993
97
98
99
100
To United States ...........................
11,147
22,721
39,532
34,378
'21,268
4,509
'13,755
'18,046
4,415
'13,215
' 38,781
19,806
'6,199
'12,776
36,447
20,956
11,220
' 40,629
'22,252
4,852
'13,525
36,927
'16,750
5,511
'12,117
35,676
16,161
6,560
32,176
101
102
103
104
105
To foreigners .................................
Other branches of parent bank...
Banks.........................................
Official institutions...................
Nonbank foreigners..................
32,949
42,899
45,292
44,597
52,574
48,955
' 47,402
14,715
'21,932
4,354
'6,401
' 50,447
16,115
'23,082
4,208
'7,042
49,153
106
Other liabilities.
1,106
1,154
1,584
1,525
1,803
1,660
'1,689
'1,857
1,819
2,001
42,197
63,417
74,463
81,314
84,317
81,324
'85,012
'86,364
83,152
83,332
96 Total, all currencies.
Parent bank...............................
7,628
Other banks in United States.. } 3,520
Nonbanks..................................
107 Total payable in U.S. dollars...........
10,569
16,825
3,308
2,248
13,801
21,760
3,573
3,765
12,816
24,717
3,000
A,159
11,436
21,884
4,604
6,673
14,762
27,372
4,477
5,963
15,635
22,471
4,449
6,400
17,021
4,308
15,598
14,266
22,290
4,602
7,995
15,613
4,888
15,946
49,545
13,697
23,310
4,429
8,109
2 In May 1978 the exemption level for branches required to report
1 In May1978 a broader category of claims on foreign public borrowers,
was increased, which reduced the number of reporting branches.
including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official
institutions.
A 58
3.14
In te rn a tio n a l S tatistics □ M a y 1979
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
Item
1976
1977
1978
1978
Sept.r
Oct.r
A.
1979
Nov.r
Dec.r
Jan.
Feb .p
Mar.*
By type
1 Total1.....................................................................
95,634 131,097 162,303 145,401 152,203 156,285 162,303 162,656 159,770 154,195
2 Liabilities reported by banks in the United
States2.............................................................
3 U.S. Treasury bills and certificates3.....................
17,231
37,725
18,003
47,820
23,086
67,650
19,930
55,014
22,040
57,967
21,719
62,635
23,086
67,650
22,600
68,415
23,120
65,558
23,126
59,652
11,788
20,648
32,164
20,443
35,877
20,970
35,577
20,304
36,153
21,426
36,222
20,993
35,877
20,970
36,026
20,952
35,509
20,912
36,033
20,471
8,242
12,667
14,720
14,576
14,617
14,716
14,720
14,663
14,671
14,913
U.S. Treasury bonds and notes
4 Marketable.........................................................
5 Nonmarketable4................................................
6 U.S. securities other than U.S. Treasury
securities5........................................................
B. By area
7 Total........................................
8
9
10
11
12
13
Western Europe1.....................
Canada.....................................
Latin America and Caribbean
Asia........................................ .
Africa.......................................
Other countries6.....................
95,634 131,097 162,303 145,401 152,203 156,285 162,303 162,656 159,770 154,195
45,882
3,406
4,926
37,767
1,893
1,760
70,748
2,334
4,649
50,693
1,742
931
1 Includes the Bank for International Settlements.
2 Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under repurchase agreements.
3 Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
4 Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
92,946
2,486
5,029
58,656
2,443
743
80,387
1,497
3,902
56,870
2,006
739
85,118
2,619
4,615
56,928
2,184
741
88,412
2,446
4,499
57,834
2,301
793
92,946
2,486
5,029
58,656
2,443
743
94,397
2,150
4,330
58,962
2,299
518
92,565
1,911
4,407
57,727
2,371
789
90,112
3,088
4,193
53,995
2,135
672
5 Debt securities of U.S. government corporations and federally
sponsored agencies, and U.S. corporate stocks and bonds.
6 Includes countries in Oceania and Eastern Europe.
N ote. Based on Treasury Department data and on data reported to
the Treasury Department by banks (including Federal Reserve Banks)
and securities dealers in the United States.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.
Bank-reported D ata
A 59
3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions o f dollars, end o f period
1975
1976
1978
1977
Sept.
A.
1 All foreigners..............
95,590 110,657 126,168
2 Banks’ own liabilities.
3 Demand deposits...
4 Time deposits1.......
5 Other2.....................
6 Own foreign offices3
13,564
10,267
16,803
11,347
18,996
11,521
37,414
40,744
48,906
7 Banks’ custody liabilities4.....................................
8 U.S. Treasury bills and certificates5.................
9 Other negotiable and readily transferable
instruments6................................................
10 Other...................................................................
11 Nonmonetary international and regional
organizations7................................................
12 Banks’ own liabilities.
13 Demand deposits...
14 Time deposits1.......
15 Other2.....................
16 Banks’ custody liabilities4.....................................
17 U.S. Treasury bills and certificates.................
18 Other negotiable and readily transferable
instruments6..............................................
19 Other...................................................................
20 Official institutions8.
21
22
23
24
Banks’ own liabilities.
Demand deposits...
Time deposits1.......
Other2.....................
25
26
27
Banks’ custody liabilities4.................................
U.S. Treasury bills and certificates5.............
Other negotiable and readily transferable
instruments6............................................
O ther..............................................................
28
29 Banks9.
30
31
32
33
34
35
36
37
38
39
Banks’ own liabilities............
Unaffiliated foreign banks.
Demand deposits.............
Time deposits1.................
Other2...............................
5,714
Banks’ own liabilities.
Demand deposits...
Time deposits1.......
Other2.....................
45
46
47
Banks’ custody liabilities4.................................
U.S. Treasury bills and certificates...............
Other negotiable and readily transferable
instruments6............................................
Other...............................................................
Jan.
Feb.p
Mar.p
By holder and type of liability
-144,251 150,296 158,231 166,011 163,824 163,069 165,946
r68,623 *•71,087 *•75,265
17,204 *•17,553 18,264
12,154 12,279 12,514
*•9,652 *•8,641
r6,695
r32,570 *•31,603 *■35,847
77,711
19,199
12,298
9,527
36,687
74,210
17,785
12,120
8,889
35,416
76,106
17,201
11,967
9,194
37,744
84,185
16,640
12,404
8,301
46,839
*79,209 *•82,966
59,068 63,130
88,300
68,178
89,614
68,999
86,964
66,352
81,761
60,587
>•16,598 *•17,355 *•17,439
2,786
2,397
2,366
17,581
2,541
18,197
2,418
18,304
2,307
19,011
2,163
r75,628
56,665
3,406
2,929
2,225
2,617
2,317
2,095
2,364
336
133
116
87
417
153
102
161
916
330
94
492
762
333
88
340
506
272
102
131
769
279
96
394
139
148
290
205
231
139
2,554
2,701
706
2,639
1,036
2,593
403
1,809
183
1,701
201
1,555
183
1,589
193
1,595
211
1,603
1
2,189
1
1,625
1
1,499
1
1,367
5
1,393
3
1,382
2
54,956
65,822 r74,944 *79,999 *"84,050
90,481
90,828
88,522
82,779
2,644
3,423
3,394
2,321
3,528
1,797
r9,458 *•11,479 *•10,829
r3,310 *•3,050 *•3,416
2,563
2,399
2,345
3,585
6,030 *•5,068
11,732
3,389
2,334
6,008
10,504
2,699
2,288
5,517
11,071
2,759
2,169
6,143
10,392
2,857
2,529
5,006
34,199
37,725
47,820
r65,486 *•68,520 *•73,221
55,014 57,958 62,331
78,749
67,394
80,324
68,228
77,451
65,402
72,387
59,652
r 10,227 *•10,352 *•10,783
245
210
107
11,185
170
11,905
191
11,861
188
12,692
43
37,174
42,335 r50,542 *•51,372 *"55,363
56,861
54,683
55,800
64,993
9,104
2,297
r45,771 *•46,417 *•50,529
r 13,201 *•14,814 *"14,682
10,933 *•9,710 *•10,148 *"10,066
1,269 *•1,564
2,040
1,735
*•2,222 *•3,102 *"2,881
52,035
15,349
11,239
1,489
2,621
49,932
14,517
10,425
1,479
2,612
51,042
13,299
9,426
1,322
2,551
60,012
13,172
9,344
1,261
2,567
r32,570 *•31,603 *•35,847
50,461
29,330
7,534
1,873
36,687
35,416
37,744
46,839
4,771
307
4,955
381
4,834
371
4,826
300
4,751
302
4,757
399
4,981
425
2,536
1,928
2,447
2,126
2,561
1,902
2,417
2,109
2,422
2,027
2,384
1,973
2,496
2,060
14,736
15,359 *15,996
16,593
16,052
15,995
16,653
15,810
12,627 *•12,855
4,039
4,222
8,222 *■8,201
365
432
13,490
4,628
8,331
531
13,028
4,242
8,380
406
13,012
4,328
8,264
420
13,487
4,744
8,374
368
13,012
4,161
8,518
333
119
10,100
12,814
3,248
4,823
4,015
6,524
4,304
7,546
325
198
240
49 M emo: Negotiable time certificates of deposit
held in custody for foreigners.......................
1 Excludes negotiable time certificates of deposit, which are included
in “Other negotiable and readily transferable instruments.”
2 Includes borrowings under repurchase agreements.
3 U.S. banks: includes amounts due to own foreign branches and
foreign subsidiaries consolidated in “Consolidated Report of Condition”
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due to head
office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank.
4 Financial claims on residents of the United States, other than long
term securities, held by or through reporting banks.
5 Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
Dec.
3,274
Own foreign offices3.
41
42
43
44
Nov.
767
144
99
523
Banks’ custody liabilities4.................................
U.S. Treasury bills and certificates..............
Other negotiable and readily transferable
instruments6............................................
Other...............................................................
40 Other foreigners.
48
5,699
Oct.
1979
2,732
308
3,141
326
3,103
245
3,024
282
2,983
285
3,166
357
2.798
299
2,231
193
2,367
448
2,471
387
2,480
262
2,503
195
2,665
143
2,440
59
*•10,058 *•10,992 *■10,821
10,926
11,080
10,988
11,187
6 Principally bankers acceptances, commercial paper, and negotiable
time certificates of deposit.
7 Principally the International Bank for Reconstruction and Develop
ment, and the Inter-American and Asian Development Banks.
8 Foreign central banks and foreign central governments and the
Bank for International Settlements.
9 Excludes central banks, which are included in “Official institutions.”
N ote. Data for time deposits prior to April 1978 represent short-term
only.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.
A 60
3.15
In te rn a tio n a l S tatistics □ M a y 1979
Continued
Item
1975
1976
1978
1977
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.*
Mar.*
B. By area and country
1
95,590 110,657 126,168 "144,251 "150,296 "158,231 166,011 163,824 163,069 165,946
2 Foreign countries....................................................
89,891 104,943 122,893 "140,845 "147,367 "156,006 163,394 161,507 160,975 163,581
3 Europe....................................................................
4 Austria................................................................
5
6 Denmark............................................................
7 Finland............................................................
8 France.............................................................
9 Germany.............................................................
10 Greece.................................................................
11
12 Netherlands........................................................
13 Norway...............................................................
14 Portugal..............................................................
15 Spain...................................................................
16 Sweden................................................................
17 Switzerland.........................................................
18 Turkey.................. .......... ..................................
19 United Kingdom................................................
20 Yugoslavia....................... ..................................
21 Other Western Europe1....................................
22 U.S.S.R..............................................................
23 Other Eastern Europe2. ....................................
44,072
759
2,893
329
391
7,726
4,543
284
1,059
3,407
994
193
423
2,277
8,476
118
6,867
126
2,970
40
197
47,076
346
2,187
356
416
4,876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236
60,295 "69,275 "73,171 "78,129 "84,605
514
473
431
506
318
2,471
2,531
"2,353 "2,449
2,546
1,734
770
1,673
1,827
1,946
424
323
415
388
346
8,421
5,269
8,060
8,817
8,631
7,239 11,206 13,345 15,652 17,286
603
865
887
907
826
7,394
6,857
7,346
7,761
7,674
2,869 "2,743 "2,501
2,402
"2,518
1,102
944
1,208
1,210
1,271
273
521
379
386
330
702
619
765
885
778
2,712
3,341
3,187
3,216
3,131
12,343 "12,898 "14,195 "15,463 18,564
130
226
164
163
157
14,125 "11,938 "12,232 12,826 14,214
232
167
158
190
254
1,804 "2,745 "3,012 "2,777
3,334
98
65
82
73
82
236
262
262
198
325
"5,131
24 Canada...................................................................
2,919
4,659
4,607
25 Latin America and Caribbean............................
26
Argentina...........................................................
27
Bahamas.............................................................
28 Bermuda.............................................................
29 Brazil..................................................................
30 British West Indies........... ................................
31 Chile...................................................................
32 Colombia............................................................
33 Cuba...................................................................
34 Ecuador..............................................................
35 Guatemala 3........................................................
36 Jamaica3.............................................................
37 Mexico................................................................
38 Netherlands Antilles4........................................
39 Panama...............................................................
40
41
Uruguay.............................................................
42 Venezuela............................................................
43 Other Latin America and Caribbean...............
15,028
1,146
1,874
184
1,219
1,311
319
417
6
120
19,132
1,534
2,770
218
1,438
1,877
337
1,021
6
320
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,070
129
1,115
243
172
3,309
1,393
2,870
158
1,167
257
245
3,118
1,797
2,876
196
2,331
287
243
2,929
2,167
44
45
46
47
48
49
50
51
52
53
54
55
56
China (Mainland)..............................................
China (Taiwan)..................................................
Hong Kong........................................................
India...................................................................
Indonesia............................................................
Israel...................................................................
Japan...................................................................
K orea..................................................................
Philippines..........................................................
Thailand..............................................................
Middle East oil-exporting countries5...............
Other A sia..........................................................
22,384
123
1,025
605
115
369
387
10,207
390
700
252
7,355
856
29,766
48
990
894
638
340
392
14,363
438
628
277
9,360
1,398
57
58
59
60
61
62
63
Egypt...................................................................
Morocco.............................................................
South Africa......................................................
Zaire...................................................................
Oil-exporting countries6....................................
Other Africa.......................................................
3,369
342
68
166
62
2,240
491
2,298
333
87
141
36
1,116
585
2,535
404
66
174
39
1,155
698
2,645
417
74
238
45
1,270
601
64 Other countries......................................................
65 Australia.............................................................
66 All other.............................................................
2,119
2,006
113
2,012
1,905
107
1,297
1,140
158
67 Nonmonetary international and regional
organizations.............................. .....................
5,699
5,714
68
69
70
5,415
188
96
5,157
267
290
International......................................................
Latin American regional...................................
Other regional7..................................................
1 Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3 Included in “Other Latin America and Caribbean” through March
1978.
4 Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
83,774
555
2,481
2,036
379
8,377
15,770
683
8,723
2,536
1,411
254
759
2,955
19,864
141
13,080
174
3,296
150
150
81,310
498
2,177
2,074
357
8,153
13,867
761
8,056
2,786
1,445
246
704
2,656
19,641
141
13,639
184
3,691
62
171
81,078
524
2,125
2,131
361
8,613
12,995
671
8,145
2,765
1,531
279
731
2,520
18,457
132
15,348
176
3,258
59
257
"7,465
"8,073
6,963
6,622
7,036
8,043
29,216 "28,461
1,393
1,650
7,251
"4,870
409
387
1,441
1,275
5,380 "5,921
351
333
1,431
1,483
7
7
405
369
347
368
78
57
3,112
3,101
317
352
2,741
2,396
321
323
197
210
2,562
3,696
1,639 "1,494
31,111
1,504
6,309
425
1,234
6,692
341
1,612
7
348
357
43
3,413
368
2,808
337
211
3,550
1,553
31,470
1,498
6,615
428
1,130
5,978
399
1,756
13
322
416
52
3,397
308
2,992
363
233
3,809
1,760
30,909
1,682
7,391
386
1,099
5,715
376
1,769
7
321
352
72
3,178
321
2,818
320
222
3,336
1,544
32,241
1,789
7,276
463
1,150
6,844
358
1,867
13
274
386
43
3,158
361
2,486
347
220
3,705
1,500
37,810
1,734
13,087
374
1,134
6,765
549
1,925
6
330
339
75
3,178
318
2,501
404
234
3,168
1,691
30,488 "33,488 "34,542
53
46
49
1,013
1,280
1,319
1,094
1,250
1,368
961
899
833
410
348
575
559
432
453
14,616 19,933 19,937
602
776
790
687
623
594
264
290
352
8,979 "6,337 "6,823
1,250
1,341
1,384
34,843
57
1,247
1,189
843
439
469
21,355
750
578
279
6,381
1,256
36,394
67
499
1,256
790
449
674
21,969
795
639
427
7,420
1,411
36,650
65
546
1,400
804
575
669
21,428
771
612
379
8,120
1,283
36,452
105
488
1,436
838
357
625
21,764
827
544
307
7,864
1,297
32,929
273
605
1,252
857
479
635
18,108
748
642
277
7,816
1,236
2,540
322
84
266
39
1,230
600
2,636
312
30
294
43
1,335
622
2,886
404
32
168
43
1,525
715
2,693
337
29
179
48
1,379
721
2,804
278
32
207
42
1,549
697
2,650
329
43
242
50
1,256
729
1,090
899
191
1,189
975
213
"1,214
"977
236
1,076
838
239
860
655
204
1,131
933
198
1,072
862
211
3,274
3,406
2,929
2,225
2,617
2,317
2,095
2,364
2,752
278
245
2,339
799
269
1,789
856
284
1,033
870
323
1,485
808
324
1,210
809
299
919
865
311
1,189
872
303
6 Comprises Algeria, Gabon, Libya, and Nigeria.
7 Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in
“Other Western Europe.”
N ote. For a description of the changes in the International Statistics
tables, see July 1978 Bulletin, p. 612.
Bank-reported Data
A61
3.16 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions o f dollars, end o f period
Area and country
1975
1976
1978
1977
Sept.
1
3 Europe....................................................................
4 Austria................................................................
5 Belgium-Luxembourg.........................................
6 Denmark.............................................................
7
8
9
10 Greece..................................................................
11
12
13
14 Portugal..............................................................
15
16
17
18
19
20 Yugoslavia..........................................................
Other Western Europe1.....................................
21
22 U.S.S.R...............................................................
23 Other Eastern Europe2 .....................................
90,206 r95,101
'97,097 '105,425 114,606 105,406 103,799 108,443
*•97,057 '105,379 114,550 105,366 103,759 108,404
11,109
35
286
104
180
1,565
380
290
443
305
131
30
424
198
199
164
5,170
210
76
406
513
14,776
63
482
133
199
1,549
509
279
993
315
136
88
745
206
379
249
7,033
234
85
485
613
18,114 r18,469 *•19,345 '20,565
111
142
95
65
r969 '1,061
1,232
561
173
147
193
160
221
172
232
260
2,082 '2,832
2,716
2,752
742
838
644
808
134
206
126
161
1,453
1,334 *•1,019 M,358
602
338
380
494
282
162
263
238
99
180
175
106
722
735
980
*•893
325
218
348
465
871
564
1,045
781
360
305
283
293
8,964 r7,958
'8,417
*•8,115
307
302
311
293
129
86
*•138
107
321
413
370
387
612
566
575
617
4,961
5,049
5,185
4,822
140
1,372
933
42
1,828
1,293
705
94
40
5,417
268
3,074
918
52
3,474
1,487
52,372
2,134
20,873
175
6,259
5,368
1,012
1,054
*
700
87
37
5,449
259
3,179
873
50
3,324
1,538
50,250
2,360
18,640
155
6,119
5,122
939
1,019
*
768
109
48
5,398
222
3,493
846
44
3,481
1,487
54,133
2,534
20,000
150
6,574
7,297
964
1,004
4
839
89
61
5,561
282
2,850
835
46
3,525
1,519
17,706
22
1,053
289
57
246
721
10,944
1,791
534
520
744
785
19,204
3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863
19,236 '20,195 '21,565 '22,743
10
8
6
10
1,719 *•1,242
1,356
1,285
543 *•1,017 '1,484
1,385
53
76
66
46
232
152
144
188
544
584
719
555
9,839 '10,303 '10,629 11,997
2,336
1,933
1,788 '1,792
594
730
732
717
633
633
734
758
1,746
2,200 '2,127
2,188
947
1,592
1,357
2,012
25,511
4
1,499
1,573
54
143
872
12,734
2,277
680
753
3,118
1,804
24,232
15
1,457
1,620
61
141
996
12,566
2,239
607
753
2,333
1,446
25,103
13
1,767
1,952
60
123
896
12,220
2,478
692
830
2,487
1,585
24,957
16
1,841
1,891
52
124
909
12,783
2,545
660
774
1,945
1,417
1,933
123
8
657
181
382
581
2,311
126
27
957
112
524
565
2,518
119
43
1,066
98
510
682
r2 ,161
67
38
1,022
82
406
*•547
2,219
56
40
990
161
438
534
2,163
68
36
906
162
439
551
2,221
107
82
860
164
452
556
2,145
82
97
838
156
438
533
2,092
83
88
760
155
456
551
1,969
73
66
701
155
455
519
830
700
130
772
597
175
1,090
905
186
1,063
*•895
'169
1,023
879
145
1,041
894
147
988
877
111
914
792
122
812
704
108
961
830
131
33
40
43
39
41
45
56
40
39
39
1 Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3 Included in “Other Latin America and Caribbean” through March
1978.
4 Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
21,199
177
1,798
166
295
2,864
887
191
1,308
581
203
209
908
313
1,069
143
8,564
448
124
319
630
5,142
44
45
46
47
48
49
50
51
52
53
54
55
56
67 Nonmonetary international and regional
20,454
115
1,376
170
264
2,275
717
169
1,395
619
252
173
1,103
388
970
132
8,886
409
110
309
621
56,507
2,266
21,118
189
6,251
9,173
968
1,012
3,355
*•3,610
20,743
147
1,504
172
281
2,629
840
162
1,402
681
251
169
905
449
1,051
179
8,444
400
135
327
617
'4,522
3,745
72
1,138
805
57
1,319
1,302
64 Other countries......................................................
65
66 All other..............................................................
r3,453
24,181
140
1,200
254
305
3,737
900
164
1,504
680
299
171
1,110
537
1,283
283
10,124
363
122
366
638
45,850 r49,721 *•49,295 '54,346
1,690 '1,461
1,698
1,478
19,858 r 19,272 *•19,210 '23,546
141
232
141
352
5,252
4,629
5,596
6,137
8,397 '7,178
6,432
6,481
742
862
832
675
727
671
793
936
*
1
4
10
517
646
621
680
79
89
85
46
49
45
5,255
4,909 '5,011
4,927
224
230
212
242
1,410 '2,301
'2,485
2,531
962
967
931
945
80
51
63
58
*•2,747
2,318
3,367
3,105
1,394 r l ,421
1,386
1,388
3,319
Oil-exporting countries6....................................
Mar.p
90,163 '95,062
38,879
1,192
15,464
150
4,901
5,082
597
675
13
375
Morocco..............................................................
South Africa.......................................................
Feb.?
79,261
2,834
57
58
59
60
61
62
63
Jan.
79,301
23,863
1,377
7,583
104
3,385
1,464
494
751
14
252
Middle East oil-exporting countries5...............
Other Asia..........................................................
Dec.
58,275
24 Canada............... ...................................................
Philippines..........................................................
Nov.
58,308
25 Latin America and Caribbean..............................
26 Argentina............................................................
Bahamas..............................................................
27
28
29
30 British West Indies............................................
31 Chile....................................................................
32
33
34
35 Guatemala 3........................................................
36 Jamaica 3..............................................................
37
38 Netherlands Antilles4.........................................
39
40 Peru.....................................................................
Uruguay.............................................................
41
42
43 Other Latin America and Caribbean...............
China (Mainland)...............................................
China (Taiwan)..................................................
Hong Kong........................................................
India....................................................................
Oct.
1979
*
6 Comprises Algeria, Gabon, Libya, and Nigeria.
7 Excludes the Bank for International Settlements, which is included
in “Other Western Europe.”
N ote. Data for period prior to April 1978 include claims of banks’
domestic customers on foreigners. For a description of the changes in
the International Statistics tables, see July 1978 Bulletin, p. 612.
A 62
3.17
In te rn a tio n a l S tatistics □ M a y 1979
BANKS’ OWN A N D DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
Type of claim
1975
1976
1978
1977
Sept.r
1 Total.......................................................................
58,308
79,301
O ct.r
1979
N ov.r
90,206 104,157
Dec.
Jan.
Feb.*
Mar.*
125,616
2 Banks’ own claims on foreigners.........................
95,101
97,097 105,425 114,606 105,406 103,799 108,443
3
4
5
6
7
8
Foreign public borrowers.................................
Own foreign offices1..........................................
Unaffiliated foreign banks.................................
Deposits..........................................................
Other...............................................................
All other foreigners............................................
8,053
35,005
31,539
4,463
27,076
20,504
8,378
36,581
30,912
4,002
26,910
21,225
9 Claims of banks’ domestic customers2...............
9,056
10
11
12
Deposits..............................................................
Negotiable and readily transferable in
struments 3. . ..............................................
Outstanding collections and other claims4. .. .
5,467
5,756
13 M emo: Customer liability on acceptances
1 U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in “Consolidated Report of Condition”
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or whollyowned subsidiaries of head office or parent foreign bank.
2 Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.
6,176
9,235
40,403
33,552
4,396
29,157
22,234
10,047
40,882
40,379
5,506
34,873
23,298
10,304
37,933
34,494
4,670
29,824
22,674
10,499
35,581
34,649
5,146
29,503
23,070
10,632
36,845
37,487
6,113
31,374
23,479
11,009
500
972
3,724
4,832
4,762
5,275
12,723
14,837
3 Principally negotiable time certificates of deposit and bankers ac
ceptances.
4 Data for March 1978 and for period prior to that are outstanding
collections only.
N ote. Beginning April 1978, data for banks’ own claims are given
on a monthly basis, but the data for claims of banks’ domestic customers
are available on a quarterly basis only.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.
Bank-reported Data
A 63
3.18 BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions o f dollars, end o f period
Maturity; by borrower and area
1978
1978
1979
1979
June r
Sept.
55,433
59,907
73,250
2 Maturity of 1 year or less 1......................................
3 Foreign public borrowers....................................
4 All other fore’gners..............................................
44,103
3,067
41,036
47,055
3,702
43,353
57,982
4,497
53,486
5 Maturity of over 1 year 1.........................................
6 Foreign public borrowers....................................
7 All other foreigners..............................................
11,330
2,931
8,399
12,852
3,925
8,927
15,268
5,315
9,952
1 T otal.........................................................................
By borrower
Dec.*
Mar.
June
Sept.
By area
8
9
10
11
12
13
Maturity of 1 year or less1
Europe...................................................................
Canada..................................................................
Latin America and Caribbean............................
Asia.......................................................................
Africa....................................................................
A llother2..............................................................
9,627
1,598
17,203
13,695
1,457
523
10,454
1,948
18,759
13,769
1,535
591
14,934
2,662
20,813
17,500
1,512
562
14
15
16
17
18
19
Maturity of over 1 year1
Europe.......................... . ...............
...
Canada...........................................
Latin America and Caribbean...
. . .
A sia.................................
Africa.................................
A llother2..............................................................
2,920
344
5,886
1,298
631
252
3,104
794
6,859
1,305
580
211
3,163
1,426
8,444
1,393
629
214
1 Remaining time to maturity.
2 Includes nonmonetary international and regional organizations.
3.19
N o t e . The first available data are for June 1978. For a description o f
the changes in the International Statistics tables, see July 1978 B u l l e t i n ,
p. 612.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
Item
1975
1976
1978
1977
Mar.
1 Banks’ own liabilities.....................................................................
2 Banks’ own claims1.......................................................................
3 Deposits.......................................................................................
4 Other claims...............................................................................
5 Claims of banks’ domestic customers2........................................
560
1,459
656
802
1 Includes claims of banks’ domestic customers through March 1978.
2 Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the accounts of their domestic customers.
781
1,834
1,103
731
925
2,356
941
1,415
986
2,383
948
1,435
June
Sept.
1,464
2,622
1,084
1,538
809
1,768
2,989
1,400
1,589
446
Dec.*
2,055
3,612
1,797
1,815
400
Data on claims exclude foreign currencies held by U.S. monetary authorities.
For a description of the changes in the International Statistics tables,
see July 1978 B u l l e t i n , p. 612.
N o te .
A 64
In te rn a tio n a l Statistics □ M a y 1979
3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Holdings and Transactions
Millions o f dollars
Country or area
1977
1979
1978
1978
Jan.Mar.*
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.*
Mar.*
47,524
Holdings (end of period) 4
1 Estimated total1. .
38,640
44,933
42,217
43,627
43,852
44,933
46,205
45,662
2 Foreign countries1
33,894
39,812
37,830
38,476
38,474
39,812
41,336
40,958
42,926
13,936
19
3,168
911
100
497
8,888
349
4
17,072
19
8,705
1,358
285
977
5,373
354
14,689
19
6,157
1,306
211
694
5,909
393
15,260
19
6,645
1,356
231
731
5,915
365
15,654
19
7,102
1,351
266
915
5,674
327
17,072
19
8,705
1,358
285
977
5,373
354
18,360
19
8,864
1,433
320
1,818
5,489
417
18,501
19
8,860
1,517
355
1,508
5,823
420
20,171
19
10,216
1,587
360
1,537
5,991
461
3
4
5
6
7
8
9
10
11
Europe1...........................
Belgium-Luxembourg..
Germany1.....................
Netherlands.................
Sweden.........................
Switzerland...................
United Kingdom..........
Other Western Europe.
Eastern Europe............
12
Canada.
288
152
276
151
151
152
150
146
166
13
14
15
16
Latin America and Caribbean................
Venezuela..............................................
Other Latin American and Caribbean.
Netherlands Antilles............................
551
199
183
170
416
144
110
162
445
144
139
162
426
144
119
162
416
144
109
162
416
144
110
162
433
183
88
162
417
183
72
162
418
183
72
162
17
18
Asia........... .
Japan.
18,745
6,860
21,483
11,528
21,924
11,096
21,942
11,560
21,565
11,483
21,483
11,528
21,704
12,226
21,205
12,422
21,483
12,729
19
Africa........
362
691
491
691
691
691
691
691
691
20
All other.
11
-3
5
6
-3
-3
-3
-3
-3
21 Nonmonetary international and regional
organizations.....................................
4,746
5,121
4,387
5,151
5,378
5,121
4,869
4,704
4,598
22
23
4,646
100
5,089
33
4,354
33
5,118
33
5,345
33
5,089
33
4,837
33
4,666
38
4,560
38
International....................
Latin American regional.
Transactions (net purchases, or sales ( —), during period)
24 Total1...................
22,843
6,292
2,591
639
1,410
225
1,081
1,272
-543
1,862
25 Foreign countries1
21,130
5,916
3,115
706
646
-3
1,338
1,524
-378
1,968
20,377
753
3,712
2,205
157
2,959
704
3
577
69
69
-7 2
-3 4 6
1,683
150
1,375
-5 1 7
141
524
1,443
28 Nonmonetary international and regional
organizations.....................................
1,713
375
-523
-6 7
764
227
-2 5 6
-2 5 2
-165
-1 0 6
M emo: Oil-exporting countries
29 Middle East 2....................
30 Africa 3....................................
4,451
-181
-1 ,7 8 5 -1 ,1 8 4
329
-3 1
-401
200
-241
-1
-127
-461
-693
*
-3 1
26
27
Official institutions.
Other foreign1........
1 Beginning December 1978, includes U.S. Treasury notes publicly
issued to private foreign residents.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
3 Comprises Algeria, Gabon, Libya, and Nigeria.
3.21
4 Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
Assets
1976
1977
1978
1978
Oct.
1 Deposits.................................................................
352
Assets held in custody:
2 U.S. Treasury securities1...................................
3 Earmarked gold2...............................................
66,532
16,414
424
305
379
Dec.
367
Jan.
338
Feb.
343
Mar.
Apr.*
303
388
91,962 117,126 107,934 112,434 117,126 116,961 114,005 107,854
15,988 15,463 15,548 15,525 15,463 15,448 15,432 15,426
99,674
15,406
1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and inforeign currencies.
2 The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.
367
Nov.
1979
N ote. Excludes deposits and U.S. Treasury securities held for international and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
of the United States,
Investment transactions
3.22
A 65
F O R E IG N T R A N S A C T IO N S I N S E C U R IT IE S
Millions o f dollars
1978
Transactions, and area or country
1979
Jan.Mar.P
1978
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Feb.*
Mar.*
U.S. corporate securities
Stocks
1 Foreign purchases..................................................
2 Foreign sales..........................................................
14,155
11,479
20,130
17,723
4,687
4,002
2,357
2,115
1,509
1,523
1,461
1,359
1,438
1,102
1,361
1,301
1,384
1,264
1,941
1,437
3 Net purchases, or sales ( —) ...................................
2,676
2,408
685
241
-1 4
103
336
60
120
504
4 Foreign countries....................................................
2,661
2,454
666
244
-1 5
102
336
61
104
501
5
6
7
Europe................................................................
France..............................................................
Germany.........................................................
9
10
Switzerland......................................................
United Kingdom............................................
1,006
40
291
22
152
613
1,271
47
620
-2 2
-585
1,218
166
43
1
-6 9
-30
230
-3 3
2
24
7
-115
54
-9 1
-4
-3 0
7
-118
58
-1 0
1
8
6
-8 8
67
264
-3 8
264
-9
-2 3
74
-7
-6
-1 8
-3 5
-30
85
52
16
20
-1 5
12
19
121
33
-1
-1 9
-1 2
126
11
12
13
14
15
16
Canada................................................................
Latin America and Caribbean..........................
Middle East*......................................................
Other Asia..........................................................
Africa..................................................................
Other countries..................................................
65
127
1,390
59
5
8
74
151
781
187
-1 3
3
58
44
255
141
6
-3
117
1
120
35
5
-1
22
13
42
—4
2
2
6
-2
109
1
-2
1
38
16
4
15
-1
1
7
34
-1 6
49
-2
-4
-6
-2 5
46
30
6
1
57
36
225
61
1
1
17 Nonmonetary international and regional
organizations...................................................
15
-4 6
18
-3
1
1
*
-1
16
3
Bonds2
18 Foreign purchases..................................................
19 Foreign sales..........................................................
7,739
r3,560
7,955
r5,509
1,675
1,740
610
550
727
530
437
r439
884
r564
641
704
453
547
581
489
20 Net purchases, or sales ( —) ..................................
r4,179
r2,446
-6 5
60
197
r_ 2
r320
-6 3
-9 4
92
21 Foreign countries....................................................
r4,083
>-2,037
162
62
137
r —12
>•128
54
28
79
22
Europe................................................................
24
25
26
27
Germany.........................................................
Netherlands....................................................
Switzerland.....................................................
United Kingdom............................................
rl ,850
-3 4
-2 0
72
94
r l ,690
r9l5
30
r68
19
-1 0 0
r930
149
30
59
-4 1
27
66
80
-2
-5
19
43
*
89
-1 0
-1 2
-4
9
110
r 146
17
10
-6
39
r 109
39
18
42
-4
8
-5 4
110
*
13
-1 0
6
93
1
13
4
-2 7
12
27
28
29
30
31
32
33
Canada................................................................
Latin America and Caribbean..........................
Middle E asti......................................................
Other Asia..........................................................
Africa..................................................................
Other countries..................................................
141
64
1,695
338
-6
*
102
78
810
131
-1
1
53
55
-1 1 6
17
1
1
16
11
-7 3
28
*
*
-5
13
-1 9
60
*
*
r -2 5
3
*■-45
-1
9
9
*
-1
-8
23
*
*
6
5
-2 1
-5
*
-3
11
23
-3 4
16
*
*
10
9
-106
4
1
*
33
24
24
-3
*
1
34 Nonmonetary international and regional
organizations...................................................
96
409
-2 2 7
-3
60
10
192
-118
-1 2 2
13
Foreign securities
527
3,666
3,139
-4
828
831
-6 9
261
330
-1 9
299
318
163
360
197
-1 2
232
244
11
265
254
-2 8
232
260
14
331
318
38 Bonds, net purchases, or sales ( —) .......................
39 Foreign purchases..................................................
40 Foreign sales..........................................................
-5 ,0 9 6 -4 ,0 1 7
8,040 11,044
13,136 15,061
-9 1 4
2,906
3,820
36
762
726
-677
941
1,618
-4 4 6
856
1,302
73
1,020
948
-5 5 0
783
1,333
-3 2 2
942
1,264
-4 2
1,182
1,223
41 Net purchases, or sales ( —) of stocks and bonds..
-5 ,5 0 6
-3 ,4 9 0
-917
-3 3
-6 9 6
-2 8 3
61
-5 4 0
-3 4 9
-2 8
42
43
44
45
46
47
48
-3 ,9 4 9 -3 ,3 1 3
-1 ,1 0 0
-4 0
-2 ,4 0 4 -3 ,2 3 7
-8 2
201
-9 7
350
2
-441
-1 4 6
-267
-6 6 5
-167
-706
184
30
-1 6
10
-6 7
-8 6
-4 1
-1 2
72
-1
1
-507
13
-747
-1 7
236
1
6
-3 0 3
-1 0 2
-2 4 6
18
21
1
4
19
53
-2 4
*
-1 5
*
5
-5 1 3
-1 2 4
-305
60
-141
-3
1
-141
-4 2
-1 8 4
70
19
-5
2
-1 1
-1
-2 1 6
54
153
-8
7
-1 ,5 5 7
-2 5 3
34
-189
20
41
-2 7
-209
-1 7
35 Stocks, net purchases, or sales ( —) ......................
36 Foreign purchases..................................................
37 Foreign sales..........................................................
Foreign countries....................................................
Europe....................................................................
Canada...................................................................
Latin America and Caribbean..............................
Asia.........................................................................
Africa......................................................................
Other countries......................................................
49 Nonmonetary international and regional
organizations...................................................
-410
2,255
2,665
-177
1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
2 Includes state and local government securities, and securities of U.S.
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
government agencies and corporations. Also includes issues of new debt
securities sold abroad by U.S. corporations organized to finance direct
States).
investments abroad.
A 66
In te rn a tio n a l S tatistics □ M a y 1979
3.23 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS
in the United States
Reported by Nonbanking Concerns
Millions o f dollars, end o f period
Type, and area or country
1977
1978
Mar.
Dec.
June
1977
Sept.
Dec.
1978
Dec.
Mar.
Liabilities to foreigners
1
2
3
4
5
June
Dec.
Sept.
Claims on foreigners
7,910
8,361
8,792
'9,683
9,817
16,221
18,399
18,162 '18,252
20,021
Payable in dollars........................... ...................
7,109
7,477
7,967
'8,853
8,829
14,803
16,636
16,598 '16,284
18,257
Payable in foreign currencies...........................
Deposits with banks abroad in reporter’s
name........................................................
Other...............................................................
801
884
825
'831
988
1,418
1,763
1,564
'1,968
1,764
613
805
783
980
673
890
'803
1,165
937
827
9,692
3,394
45
240
17
9
336
399
37
162
216
23
8
141
70
338
55
1.188
28
25
29
28
16,220
5,764
24
211
56
13
513
450
41
387
166
40
69
387
117
220
39
2,795
20
25
55
135
18,397
5,508
21
187
47
13
545
420
42
381
184
40
27
408
117
202
35
2,619
24
33
44
121
18,160 '18,250
5,273
'5,884
25
28
172
155
34
40
53
50
622
533
436
'535
40
44
451
400
'174
192
42
45
34
54
376
351
78
80
285
346
29
31
2,338 '2,817
27
23
24
28
37
33
51
'44
20,020
7,007
26
167
51
19
688
808
99
446
222
66
42
317
102
253
30
3,491
34
21
67
59
By type
By area or country
6 Foreign countries....................................................
7 Europe....................................................................
8
9 Belgium-Luxembourg........................................
10 Denmark............................................................
11
12
13
14
15
16 Netherlands........................................................
17
18 Portugal..............................................................
19 Spain...................................................................
20
21
22 Turkey......................................... .......................
23
24 Yugoslavia..........................................................
25 Other Western Europe......................................
26 U.S.S.R...............................................................
27 Other Eastern Europe......................................
7,695
2,491
21
116
14
9
238
284
85
128
232
7
11
77
28
263
108
735
90
10
24
12
8,214
2,820
26
171
23
12
273
335
108
104
253
9
7
94
37
211
93
937
82
8
15
23
8,661
2,993
26
167
22
3
302
356
82
156
220
18
25
105
38
282
92
962
84
18
19
17
'9,559
'3,173
33
165
17
'3
'266
391
71
188
'219
23
11
110
51
308
102
'1,070
76
17
27
25
28 Canada...................................................................
504
530
524
566
658
2,681
3,428
3,502
'3,722
3,259
29 Latin America........................................................
30 Argentina............................................................
31
32
33 Chile...................................................................
34 Colombia............................................................
35 Cuba...................................................................
36 Mexico................................................................
37 Panama...............................................................
38 Peru.....................................................................
39 Uruguay.............................................................
40 Venezuela............................................................
41
Other Latin American republics.......................
42
43 Other Latin America.........................................
1,201
40
329
49
17
42
*
114
22
15
3
216
118
25
209
1,353
53
327
62
14
26
*
169
12
22
5
264
107
41
250
1,421
74
321
63
23
42
*
185
71
17
9
185
101
30
299
'1,536
131
353
87
14
42
*
'238
59
19
7
232
121
19
213
1,521
124
312
74
11
38
*
142
44
50
15
318
105
35
255
4,467
53
2,019
493
45
84
*
314
91
32
5
269
281
12
768
5,943
53
3,122
482
40
80
*
312
175
30
6
306
268
24
1,045
6,001
61
3,081
479
37
79
*
331
97
30
4
309
229
19
1,245
'5,147
65
'2,357
418
40
69
*
382
76
25
5
284
223
21
'1,182
6,008
65
2,695
618
57
95
*
436
107
27
7
264
240
17
1,381
44
45
46
47
48
49
50
51
52
53
54
55
2,835
8
156
40
37
56
63
695
103
74
17
1,588
2,814
1
167
32
26
57
68
761
99
95
11
1,498
3,008
1
170
30
10
59
59
807
107
107
27
1,631
'3,534
'2
'178
61
23
49
68
865
103
157
43
'1,985
3,324
47
150
67
27
67
69
898
42
98
55
1,804
2 ,111
9
157
98
38
375
38
1,068
171
99
23
702
2,970
22
144
85
85
185
47
1,379
133
94
32
764
2,810
21
173
92
93
152
43
1,142
168
96
30
800
'2,904
23
157
127
85
167
'85
1,157
161
107
29
804
3,136
23
269
142
80
144
64
1,239
177
110
37
850
56 Africa........................... ........... .............................
57 Egypt..................................................................
58 Morocco.............................................................
59 South Africa.......................................................
60 Zaire...................................................................
61 Other Africa.......................................................
571
13
112
20
46
380
594
19
130
30
55
360
603
25
148
36
57
338
661
34
145
34
56
391
708
40
166
45
88
371
386
34
21
75
15
241
402
31
22
71
11
268
430
36
16
88
16
274
'439
29
16
'73
12
'309
452
35
15
79
12
311
62 Other countries......................................................
63 Australia.............................................................
64 All other.............................................................
93
75
18
104
89
14
111
97
14
'89
'75
14
86
75
11
146
111
35
145
111
34
143
109
34
'154
'114
40
158
120
38
65 Nonmonetary international and regional
organizations...................................................
215
147
132
125
125
1
1
2
2
1
China, Mainland...............................................
China, Taiwan...................................................
Hong Kong........................................................
Indonesia............................................................
Japan.................................................................
Thailand.............................................................
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.
Nonbank-reported Data
3.24 SHORT-TERM CLAIMS ON FOREIGNERS
A 67
Reported by Large Nonbanking Concerns in the United States
Millions o f dollars, end o f period
1978
Type and country
1975
1976
1977
1978'
1 Total.......................................................................
3,799
5,720
7,136
3,042
2,710
332
4,984
4,505
479
757
511
246
1,306
1,156
546
343
446
By type
5 Payable in foreign currencies...............................
By country
10 Bahamas.................................................................
11 Japan.......................................................................
July'
Aug. '
Sept.'
Oct. '
Nov. '
Dec.
9,604
8,957
10,107
8,644
10,533
11,288
9,604
6,121
5,703
418
8,301
7,786
515
7,643
7,172
471
8,820
8,284
536
7,410
6,986
424
9,262
8,710
552
9,979
9,342
637
8,301
7,786
515
735
404
331
1,015
547
468
1,302
873
429
1,314
698
616
1,288
668
620
1,234
738
496
1,271
797
474
1,309
839
470
1,302
873
429
1,838
1,698
1,355
133
716
2,120
1,777
1,896
153
1,190
2,754
2,151
2,519
246
1,934
1,878
2,537
3,217
279
1,046
1,869
3,013
3,543
276
1,406
2,245
2,452
2,247
253
1,447
2,981
2,858
2,819
226
1,649
3,168
2,851
3,038
249
1,934
2,754
2,151
2,519
246
1,934
i 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.
3.25
N ote. Data represent the assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on
foreigners reported by nonbanking concerns in the United States and
are included in the figures shown in table 3.26.
LONG-TERM LIABILITIES TO A N D CLAIMS ON FOREIGNERS
in the United States
Reported by Nonbanking Concerns
Millions of dollars, end of period
Area and country
1977
Dec.
1978
Mar.
June
1977
Sept.
Dec.
Dec.
Liabilities to foreigners
1978
Mar.
June
Sept.
Dec.
Claims on foreigners
1 Total.......................................................................
3,175
3,149
3,077
'3,102
2,985
5,077
5,143
5,067
'5,008
5,139
2 Europe....................................................................
3 Germany............................................................
4 Netherlands........................................................
5 Switzerland........................................................
6 United Kingdom................................................
2,425
255
287
241
1,222
2,498
295
292
241
1,228
2,422
282
266
236
1,214
'2,460
290
275
246
'1,242
2,347
265
258
162
1,174
864
74
82
49
310
937
75
81
48
332
943
71
76
55
363
927
76
74
58
341
1,081
73
71
52
497
7 Canada...................................................................
62
58
56
'60
60
1,776
1,792
1,811
'1,781
1,833
8 Latin America........................................................
9 Bahamas.............................................................
10 Brazil..................................................................
11 Chile...................................................................
284
148
7
1
30
248
142
6
1
27
248
141
7
1
26
'230
138
7
1
'26
226
143
6
1
23
1,402
40
144
203
177
1,387
42
154
194
183
1,298
2
143
190
188
1,283
2
144
176
217
1,233
2
158
139
212
13 Asia.........................................................................
14 Japan..................................................................
342
305
284
250
290
255
289
254
292
261
817
66
810
83
803
78
812
70
762
66
15 Africa.....................................................................
2
2
2
3
3
161
156
154
149
170
16 All other i ...............................................................
60
60
60
61
57
59
60
59
56
59
1 Includes nonmonetary international and regional organizations.
A68
3.26
In te rn a tio n a l S tatistics □ M a y 1979
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Apr. 30, 1979
Country
Per
cent
Argentina........................
Austria.............................
Belgium...........................
Brazil...............................
Canada............................
Denmark.........................
Rate on Apr. 30,1979
Country
Month
effective
18.0
3.75
6.0
33.0
11.25
8.0
Feb.
Jan.
July
Nov.
Jan.
July
1972
1979
1978
1978
1979
1977
Per
cent
Germany, Fed. Rep. of.
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
3.27
Rate on Apr. 30, 1979
Country
Month
effective
Aug.
Mar.
Sept.
Apr.
June
Oct.
9.5
4.0
10.5
4.25
4.5
6.5
1977
1979
1978
1979
1942
1978
Per
cent
Month
effective
7.0
6.5
1.0
12.0
5.0
United Kingdom..........
Feb.
July
Feb.
Apr.
Oct.
1978
1978
1978
1979
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 of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1976
Country, or type
1977
1978
1978
Nov.
1979
Dec.
Jan.
Feb.
Mar.
Apr.
5.58
11.35
9.39
6.03
8.07
7.47
8.74
9.18
8.52
11.51
12.00
10.37
11.62
12.28
10.44
11.16
12.61
10.87
10.79
13.28
10.94
10.64
11.98
11.08
10.60
11.64
11.18
Germany...............................................................
Switzerland...........................................................
Netherlands...........................................................
France...................................................................
4.19
1.45
7.02
8.65
4.30
2.56
4.73
9.20
3.67
0.74
6.53
8.10
3.81
0.20
8.86
7.06
4.09
0.22
10.25
6.59
3.85
0.05
8.69
6.55
4.13
0.13
7.42
6.83
4.42
0.03
7.35
7.05
5.50
0.93
7.23
6.96
8 Italy.......................................................................
9 Belgium.................................................................
10 Japan.....................................................................
16.32
10.25
7.70
14.26
6.95
6.22
11.40
7.14
4.75
11.17
9.19
4.78
11.24
9.28
4.76
11.12
8.93
4.52
11.38
8.23
4.50
11.46
7.63
4.54
11.52
7.63
5.13
1 Eurodollars...........................................................
3 Canada..................................................................
4
5
6
7
N ote. Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits of 20 million francs and
3.28
over; and Japan, loans and discounts that can be called after being held
over a minimum of two month-ends.
FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
Country/currency
1976
1977
1978
1978
1979
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1
2
3
4
5
Australia/dollar..................
Austria/schilling.................
Belgium/franc.....................
Canada/dollar.....................
Denmark/krone..................
122.15
5.5744
2.5921
101.41
16.546
110.82
6.0494
2.7911
94.112
16.658
114.41
6.8958
3.1809
87.729
18.156
114.53
7.1808
3.3389
85.244
19.025
114.15
7.2621
3.3637
84.763
19.063
114.04
7.3821
3.4276
84.041
19.487
113.12
7.3510
3.4153
83.638
19.423
112.15
7.3312
3.3971
85.187
19.269
110.85
7.1862
3.3271
87.235
18.958
6
7
8
9
10
Finland/markka.................
France/franc.......................
Germany/deutsche m ark...
India/rupee.........................
Ireland/pound.....................
25.938
20.942
39.737
11.148
180.48
24.913
20.344
43.079
11.406
174.49
24.337
22.218
49.867
12.207
191.84
24.932
22.958
52.508
12.458
196.08
24.957
23.178
53.217
12.174
198.61
25.252
23.570
54.056
12.185
200.53
25.186
23.395
53.862
12.124
200.42
25.161
23.328
53.754
12.138
203.73
24.976
22.967
52.745
12.191
201.97
11
12
13
14
15
Italy/lira..............................
Japan/yen...........................
Malaysia/ringgit.................
Mexico/peso.......................
Netherlands/guilder............
16
17
18
19
20
New Zealand/dollar...........
Norway/krone....................
Portugal/escudo.................
South Africa/rand..............
Spain/peseta.......................
99.115
18.327
3.3159
114.85
1.4958
96.893
18.789
2.6234
114.99
1.3287
103.64
19.079
2.2782
115.01
1.3073
105.41
19.736
2.1510
115.04
1.4015
105.45
19.574
2.1472
115.01
1.4085
105.64
19.730
2.1358
114.96
1.4293
105.32
19.610
2.1065
116.76
1.4427
105.39
19.619
2.0855
118.40
1.4490
104.96
19.444
2.0482
117.94
1.4679
21
22
23
24
Sri Lanka/rupee.................
Sweden/krona.....................
Switzerland/franc...............
United Kingdom/pound. . .
11.908
22.957
40.013
180.48
11.964
22.383
41.714
174.49
6.3834
22.139
56.283
191.84
6.4695
22.856
59.766
196.08
6.4700
22.808
59.703
198.61
6.4491
22.987
59.840
200.53
6.4439
22.898
59.699
200.42
6.4593
22.901
59.473
203.78
6.4455
22.772
58.220
207.34
105.57
103.31
88.86
88.52
87.77
88.25
88.39
89.49
M emo:
25 United States/dollar1.........
.12044
.33741
39.340
6.9161
37.846
.11328
.37342
40.620
4.4239
40.752
.11782
.47981
43.210
4.3896
46.284
.11857
.52066
45.415
4.3881
48.512
1Index of weighted average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see “Index of
.11863
.51038
45.524
4.3950
49.120
.11955
.50571
45.487
4.4038
50.082
.11899
.49877
45.488
4.3952
49.856
.11888
.48470
45.440
4.3835
49.801
.11858
.46241
45.023
4.3780
48.794
the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on
page 700 of the August 1978 Bulletin.
N ote. Averages of certified noon buying rates in New York for cable
transfers.
A 69
G uide to
Tabular P resentation and S ta tistic a l Releases
G u id e
to
Ta b u l a r Pr e s e n t a t io n
Symbols and Abbreviations
c
e
P
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on colum n head
ing when more than half of figures in that
column are changed.)
Amounts insignificant in terms of the last
decimal place shown in the table (for
exam ple, less than 500 ,0 0 0 when the
smallest unit given is m illions)
0
n.a.
n .e.c.
IPCs
REITs
RPs
SM SA s
Calculated to be zero
Not available
Not elsew here classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
M inus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
“ U .S . government securities” may include guaran
teed issues of U .S . government agencies (the flow of
funds figures also include not fully guaranteed issues)
as well as direct obligations of the Treasury. “ State
and local governm ent” also includes municipalities,
special districts, and other political subdivisions.
In some of the tables details do not add to totals
because of rounding.
S t a t is t ic a l R e l e a s e s
List Published Semiannually, with Latest Bulletin Reference
Issue
Anticipated schedule of release dates for individual r e le a s e s ...................
D ecem ber 1978
P age
A-76
A 70
F e d e ra l R e se rve B o a rd o f G o v e rn o rs
G.
W illia m
H enry C. W
M ille r ,
Chairman
a l l ic h
O ff ice o f B o a r d M e m b e r s
J o s e p h R . C o y n e , Assistant to the Board
K e n n e t h A . G u e n t h e r , Assistant to the Board
J ay P a u l B r e n n e m a n , Special Assistant to the
Board
F r a n k O ’B r i e n , J r ., Special Assistant to the
Board
J o s e p h S. S im s , Special Assistant to the Board
D o n a l d J. W i n n , Special Assistant to the Board
P h ilip
E.
C o ld w e ll
J. C h a r l e s P a r t e e
O ff ice o f S t a f f D ir e c t o r fo r
M o n e t a r y a n d Fi n a n c i a l P o l ic y
S t e p h e n H . A x il r o d , Staff Director
E d w a r d C . E t t i n , Deputy Staff Director
M u r r a y A l t m a n n , Assistant to the Board
P e t e r M . K e i r , Assistant to the Board
S t a n l e y J. S i g e l , Assistant to the Board
N o r m a n d R . V . B e r n a r d , Special Assistant to
the Board
L e g a l D iv i s i o n
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
N e a l L . P e t e r s e n , General Counsel
R o b e r t E . M a n n i o n , A ssociate General
J a m e s L . K i c h l i n e , D irector
J o s e p h S. Z e i s e l , Deputy Director
J o h n H . K a l c h b r e n n e r , Associate Director
J o h n J. M i n g o , Senior Research Division
Counsel
A l l e n L . R a i k e n , Associate General Counsel
C h a r l e s R . M c N e i l l , Assistant to the General
Counsel
J. V ir g il M a t t i n g l y , Assistant General
Counsel
G il b e r t T . S c h w a r t z , Assistant General
Counsel
Officer
E l e a n o r J. S t o c k w e l l , Senior Research
Division Officer
J a m e s M . B r u n d y , Associate Research Division
Officer
R o b e r t A . E is e n b e is , Associate Research
Division Officer
J a r e d J. E n z l e r , Associate Research Division
O f f ice 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 is o n , Secretary
G r if f it h L . G a r w o o d , Deputy Secretary
* E d w a r d T . M u l r e n i n , Assistant Secretary
R ic h a r d H . P u c k e t t , Manager, Regulatory
Improvement Project
Officer
J. C o r t l a n d G . P e r e t , Associate Research
Division Officer
M ic h a e l J. P r e l l , Associate Research Division
Officer
H e l m u t F . W e n d e l , Associate Research
Division Officer
R o b e r t M . F is h e r , A ssistant Research Division
Officer
F r e d e r ic k M . S t r u b l e , Assistant Research
D iv i s i o n o f C o n s u m e r A f f a ir s
Division Officer
S t e p h e n P . T a y l o r , Assistant Research
J a n e t O . H a r t , D irector
N a t h a n ie l E . B u t l e r , Associate Director
J e r a u l d C. K l u c k m a n , Associate D irector
A n n e G e a r y , Assistant Director
D iv is io n of 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 i o n
J o h n E . R y a n , Director
f F r e d e r ic k C. S c h a d r a c k , Deputy Director
F r e d e r ic k R . D a h l , Associate D irector
W il l ia m T a y l o r , Associate D irector
W il l ia m W . W i l e s , Associate Director
J a c k M . E g e r t s o n , Assistant Director
D o n E . K l i n e , Assistant Director
R o b e r t S. P l o t k i n , Assistant Director
T h o m a s A . S i d m a n , Assistant Director
S a m u e l H . T a l l e y , Assistant Director
Division Officer
L e v o n H . G a r a b e d ia n , Assistant Director
D iv is io n o f In t e r n a t io n a l Fin a n c e
E d w in M . T r u m a n , D irector
R o b e r t F . G e m m il l , Associate Director
G e o r g e B . H e n r y , A ssociate Director
C h a r l e s J. S i e g m a n , Associate Director
S a m u e l P i z e r , Senior International Division
Officer
J e f f r e y R . S h a f e r , Associate International
Division Officer
D a l e W . H e n d e r s o n , A ssistant International
Division Officer
L a r r y J. P r o m is e l , Assistant International
Division Officer
R a l p h W . S m i t h , J r ., Assistant International
Division Officer
A 71
and O ffic ia l S ta ff
N anc y H . T eeters
O ff ice o f
O ff ice o f S t a f f D ir e c t o r fo r
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
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 , Staff D irector
R o b e r t J. L a w r e n c e , Deputy Staff Director
J o s e p h W D a n i e l s , S r ., D irector of Equal
W il l ia m H . W a l l a c e , Staff D irector
Employment Opportunity
H a r r y A . G u i n t e r , Program D irector for
D iv i s i o 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 ts
Contingency Planning
D i v i s i o n o f D a t a P r o c e s s in g
C h a r l e s L. H a m p t o n , Director
B r u c e M . B e a r d s l e y , Associate Director
U y l e s s D . B l a c k , A ssistant Director
G l e n n L. C u m m in s , Assistant Director
R o b e r t J. Z e m e l , Assistant Director
A l b e r t R . H a m i l t o n , D irector
C l y d e H . F a r n s w o r t h , J r ., Associate
Director
C h a r l e s W . B e n n e t t , A ssistant Director
P . D . R i n g , Assistant D irector
R a y m o n d L . T e e d , Assistant Director
D iv is io n o f Fe 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
D iv is io n of P e r s o n n e l
D a v id L . S h a n n o n , Director
J o h n R . W e i s , Assistant Director
C h a r l e s W . W o o d , Assistant Director
O ff ice 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 , Controller
D i v i s i o n o f S u p p o r t S e r v ic e s
D onald
Jo hn L.
W alter
Jo h n D .
E . A n d e r s o n , D irector
G r i z z a r d , Associate Director
W . K r e i m a n n , Associate D irector
S m i t h , Assistant Director
*On loan from Office of the Controller.
tOn loan from the Federal Reserve Bank of New York.
J a m e s R . K u d l i n s k i , Director
W a l t e r A l t h a u s e n , Assistant D irector
B r ia n M . C a r e y , Assistant D irector
H a r r y A . G u i n t e r , Assistant Director
L o r in S. M e e d e r , Assistant Director
A 72
F ederal R eserv e B ulletin □ M ay 1979
F O M C and A d v is o ry C o u n cils
F e d e r a l O p e n M a r k e t C o m m it t e e
G . W illia m M i l l e r , Chairman
Jo h n B alles
R obert B lack
P hilip E. C o ld w e ll
P a u l A . V o l c k e r , Vice Chairman
M o nro e K imbrel
R obert M ayo
J. C harles P artee
N a n cy H. T eeters
H en ry C. W allich
M u r r a y A lt m a n n , Secretary
G e o r g e B. H e n r y , A ssociate Econom ist
P e t e r M . K e ir , A ssociate Econom ist
N o r m a n d R. V . B e r n a r d , A ssistan t Secretary
M ic h a e l K e r a n , A ssociate Econom ist
N e a l L. P e t e r s e n , G eneral Counsel
Jam es L. K i c h li n e , A ssociate Econom ist
Jam es H. O lt m a n , D eputy General Counsel
R o b e r t E. M a n n io n , A ssistan t General Counsel
Jam es P a r th e m u s , A ssociate Econom ist
K a r l S c h e l d , A ssociate Econom ist
S te p h e n H. A x i l r o d , Econom ist
E d w in M . T r u m a n , A ssociate Econom ist
H a r r y B r a n d t , A ssociate Econom ist
J o sep h S. Z e i s e l , A ssociate Econom ist
R ic h a r d G. D a v is , A ssociate Econom ist
EiDWARD C. E t t i n , A ssociate Econom ist
A l a n R. H o lm e s , M anager, System Open M arket A ccount
P e t e r D . S t e r n l i g h t , D eputy M an ager fo r D om estic O perations
S c o t t E. P a r d e e , D eputy M anager fo r Foreign O perations
Fe d e r a l A d v is o r y C o u n c il
J. W . M c L e a n , t e n t h d i s t r i c t , President
R ic h a r d H. V a u g h a n , n in t h d i s t r i c t , Vice President
H e n r y S. W o o d b r id g e , Jr ., first district
F ra n k A . P l u m m e r , sixth district
W alter B . W r is t o n , sec o n d district
R oger E. A n d e r s o n , se v e n t h district
W illiam B . E a g l e s o n , Jr ., th ird district
C la renc e C. B a r k s d a l e , eig h th district
M erle E. G il l ia n d , fo u r t h district
James D . B e r r y , e l e v e n t h district
J. O w e n C o l e , fifth district
C h a u n c e y E. S c h m id t , t w e lft h district
H e r b e r t V . P r o c h n o w , Secretary
W illia m J. K o r s v ik , A ssociate Secretary
C o n su m e r A d v is o r y C o u n c il
W illia m D . W a r r e n , Los A n g eles, C alifornia, Chairman
M a r c ia A . H a k a l a , Om aha, N ebraska, Vice Chairman
R o l a n d E. B r a n d e l , San F rancisco, California
P ercy W . L o y , Portland, Oregon
James L. B r o w n , M ilw au k ee, W isconsin
R. C. M o r g a n , El P aso, T exas
M ark E. B u d n i t z , B oston , M assachusetts
F lo rence M . R ic e , N ew York, N ew York
Jo h n G. B u l l , Fort Lauderdale, Florida
R alph J. R o h n e r , W ashington, D . C.
R ay m o n d J. S a u l n ie r , N ew York, N ew York
R obert V . B u l l o c k , Frankfort, Kentucky
C arl F e l s e n f e l d , N ew Y ork, N ew York
H e n r y B . S c h e c h t e r , W ashington, D . C.
J ea n A . F o x , Pittsburgh, P ennsylvania
E. G . S c h u h a r t II, A m arillo, T exas
R ich ard H. H o l t o n , B erk eley, C alifornia
B lair C. S h ic k , C am bridge, M assachusetts
E d n a D e C o ursey Jo h n s o n , B altim ore, M ary
T hom as R. S w a n , Portland, M aine
land
A n n e G ary T a y l o r , A lexandria, Virginia
R ich ard F. K er r , C incinnati, O hio
R ichard A . V an W in k l e , Salt Lake C ity, Utah
R obert J. K l e in , N ew York, N ew York
R ich ard D . W a g n e r , Sim sbury, C onnecticut
M ary W . W a l k e r , M onroe, G eorgia
H arvey M . K u h n l e y , M inneapolis, M innesota
A 73
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*......................02106
Robert M. Solow
Robert P. Henderson
Frank E. Morris
James A. McIntosh
NEW YORK*............... 10045
Robert H. Knight
Boris Yavitz
Frederick D. Berkeley
Paul A. Volcker
Thomas M. Timlen
PHILADELPHIA.......... 19105
John W. Eckman
Werner C. Brown
David P. Eastburn
Richard L. Smoot
CLEVELAND*..............44101
Robert E. Kirby
Arnold R. Weber
Lawrence H. Rogers, II
G. Jackson Tankersley
Willis J. Winn
Walter H. MacDonald
E. Angus Powell
Maceo A. Sloan
I. E. Killian
Robert E. Elberson
Robert P. Black
George C. Rankin
Buffalo........................ 14240
Cincinnati...................45201
Pittsburgh............... 15230
RICHMOND*............... 23261
Baltimore.................... 21203
Charlotte.................... 28230
John T. Keane
Robert E. Showalter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Culpeper Communications
and Records Center . 22701
ATLANTA.................... 30303
Birmingham............... 35202
Jacksonville............... 32203
M iam i......................... 33152
Nashville..................3 7 2 0 3
New Orleans..............70161
CHICAGO* ...................60690
Detroit......................... 48231
ST. LOUIS.................... 63166
Little Rock ............... 72203
Louisville .................40232
Memphis ...................38101
MINNEAPOLIS............55480
Helena......................... 59601
KANSAS C ITY ............64198
Denver........................80217
Oklahoma City.......... 73125
Omaha ........................68102
DA LLA S........................75222
El Paso........................79999
Houston......................77001
San Antonio............... 78295
SAN FRANCISCO.......94120
Los Angeles............... 90051
Portland ...................... 97208
Salt Lake City ........ 84125
Seattle ........................98124
Vice President
in charge of branch
Albert D. Tinkelenberg
Clifford M. Kirtland, Jr.
William A. Fickling, Jr.
William H. Martin, III
Copeland D. Newbern
Castle W. Jordan
Cecelia Adkins
Levere C. Montgomery
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 F. Thompson
Frank A. Jones, Jr.
Lawrence K. Roos
Donald W. Moriarty
Stephen F. Keating
William G. Phillips
Patricia P. Douglas
Mark H. Willes
Thomas E. Gainor
Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Gerald D. Hines
A. J. Losee
Gene M. Woodfin
Pat Legan
Ernest T. Baughman
Robert H. Boykin
Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Wendell J. Ashton
Lloyd E. Cooney
John J. Balles
John B. Williams
Hiram J. Honea
Charles B. East
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; W indsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Colum bus, Ohio 43216; Columbia, South
Carolina 29210; Charleston, W est Virginia 25311; Des M oines, Iowa 50306; Indianapolis, Indiana 46204; and M ilwaukee,
W isconsin 53202.
A 74
Federal Reserve B oard P u blicatio ns
Available from Publications Services, Division of Sup
port Services, Board of Governors of the Federal R e
serve System, Washington, D .C. 20551. Where a
charge is indicated, remittance should accompany re-
quest and be made payable to the order of the Board
of Governors of the Federal Reserve System. Rem it
tance from foreign residents should be drawn on a U.S.
bank. (Stamps and coupons are not accepted.)
The
B ank Credit-C ard and C heck -Credit Pla n s . 1968.
102 pp. $1.00 each; 10 or more to one address,
$.8 5 each.
S urvey of C hanges in F amily Finances . 1968. 321
pp. $1 .0 0 each; 10 or more to one address, $.85
each.
Report of the Joint Treasury -F ederal Reserve
S tudy of the U .S . G overnment S ecurities
M arket . 1969. 48 pp. $ .25 each; 10 or more to
one address, $.20 each.
Joint T reasury -Federal Reserve S tudy of the
G overnment S ecurities M arket: S taff S tud
ies— P art 1. 1970. 86 pp. $ .5 0 each; 10 or more
to one address, $ .4 0 each. P art 2. 1971. 153 pp.
and P art 3. 1973. 131 pp. Each volum e $1.00;
Federal Reserve S ystem— Purposes
Functions . 1974. 125 pp.
and
A nnual Report.
Federal Reserve B u lletin . Monthly. $ 2 0 .0 0 per
year or $2 .0 0 each in the United States, its posses
sions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 8 .0 0 per year or $1.75
each. Elsewhere, $ 2 4 .0 0 per year or $ 2 .5 0 each.
B anking and M onetary S tatistics, 1914-1941.
(Reprint of Part 1 only) 1976. 682 pp. $5.00.
B anking and M onetary S tatistics, 1941-1970.
1976. 1,168 pp. $ 15.00.
A nnual S tatistical D igest
1971-75. 1976. 339 pp. $ 4 .0 0 per copy for each
paid subscription to Federal Reserve Bulletin ; all
others $5.0 0 each.
1972-76. 1977. 338 pp. $ 1 0 .0 0 per copy.
1973-77. 1978. 361 pp. $1 2 .0 0 per copy.
Federal Reserve C hart B ook . Issued four times a
year in February, M ay, August, and November
Subscription includes one issue of Historical Chart
Book. $7.0 0 per year or $ 2 .0 0 each in the United
States, its possessions, Canada, and M exico. E lse
where, $ 10.00 per year or $3.0 0 each.
Historical C hart B ook . Issued annually in Sept
Subscription to Chart Book includes one issue.
$1.25 each in the United States, its possessions,
Canada, and M exico; 10 or more to one address,
$1.00 each. Elsewhere, $ 1 .5 0 each.
C apital M arket D evelopments. Weekly. $ 1 5 .0 0 per
year or $ .4 0 each in the United States, its posses
sions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 3 .5 0 per year or $.35 each.
Elsewhere, $ 2 0 .0 0 per year or $ .5 0 each.
S elected Interest and E xchange R ates— W eekly
S eries of C harts . Weekly. $ 15 .0 0 per year or
$ .4 0 each in the United States, its possessions,
Canada, and Mexico; 10 or more of same issue
to one address, $ 1 3 .5 0 per year or $.35 each.
Elsewhere, $ 2 0 .0 0 per year or $ .5 0 each.
T he Federal Reserve A ct , 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.
Regulations of the B oard of Governors of the
F ederal Reserve S ystem
Published Interpretations of the B oard of G ov
ernors, as of June 30, 1978. $7.50.
Industrial Production— 1976 Edition . 1977. 304
pp. $ 4 .5 0 each; 10 or more to one address, $ 4 .0 0
each.
10 or more to one address, $.85 each.
Open M arket Policies and O perating Proce
dures— S taff S tudies . 1971. 218 pp. $ 2 .0 0
each; 10 or more to one address, $1.75 each.
R eappraisal o f t h e F e d e r a l R eserve D isc o u n t
M echanism . Vol. 1. 1971. 276 pp. Vol. 2. 1971.
173 pp. Vol. 3. 1972. 220 pp. Each volum e $3.00;
10 or more to one address, $ 2 .5 0 each.
The Econometrics of Price D etermination Con
ference , October 30-31, 1970, Washington, D.C.
1972. 397 pp. Cloth ed. $ 5 .0 0 each; 10 or more
to one address, $ 4 .5 0 each. Paper ed. $ 4 .0 0 each;
10 or more to one address, $ 3 .6 0 each.
Federal Reserve S taff S tu dy : W ays to M oderate
F luctuations in Housing Construction .
1972. 487 pp. $4 .0 0 each; 10 or more to one
address, $3 .6 0 each.
Lending Functions of the Federal Reserve
B an ks . 1973. 271 pp. $ 3 .5 0 each; 10 or more
to one address, $3 00 each.
Improving the M onetary A ggregates (Report of the
Advisory Com mittee on Monetary Statistics).
1976. 43 pp. $ 1 .0 0 each; 10 or more to one
address, $ .85 each.
A n n u a l P e r c e n ta g e R a te T a b les (Truth in Lend
ing— Regulation Z) Vol. I (Regular Transactions).
1969. 100 pp. Vol. II (Irregular Transactions).
1969. 116 pp. Each volum e $ 1 .0 0 , 10 or more
of same volum e to one address, $.85 each.
Federal R eserve M easures of C apacity and C a
pacity U tilization . 1978. 40 pp. $1.75 each,
10 or more to one address, $ 1.50. each.
T he B ank Holding Company M ovement to 1978:
A Compendium . 1978. 289 pp. $2.5 0 each, 10
or more to one address, $2.25 each.
Improving the M onetary A ggregates: S taff
Papers. 1978. 170 pp. $4 .0 0 each, 10 or more
to one address, $3.75 each.
1977 Consumer C redit S urvey . 1978. 119 pp. $2.0 0
each.
Federal R eserve B oard Publications
C o n su m e r E d u c a t io n Pa m ph le ts
(Short pamphlets suitable for classroom use. Multiple
copies available without charge.)
A 75
Printed in Full in the Bulletin
Staff Studies shown under “R eprints."
R e p r in t s
Consumer H andbook T o Credit Protection L aws
The Equal Credit Opportunity A ct and . . . A ge
T he Equal Credit Opportunity A ct and . . .
C redit Rights in H ousing
T he Equal Credit O pportunity A ct and . . .
D octors, L awyers , S mall R etailers, and
O thers W ho M ay Provide Incidental Credit
T he Equal Credit Opportunity A ct and .
W omen
F air Credit B illing
A G uide to Federal Reserve Regulations
How t o F ile A Consum er C red it C om plaint
If Y ou B orrow T o B uy S tock
If Y ou U se A Credit C ard
Truth in L easing
U .S. Currency
W hat Truth in Lending M eans to Y ou
(Except for Staff Papers, Staff Studies, and some
leading articles, most of the articles reprinted do not
exceed 12 pages.)
M easures of S ecurity Credit . 12/70.
Revision of B ank Credit S eries . 12/71.
A ssets and Liabilities of Foreign B ranches of
U .S . B anks . 2 /72.
B ank D ebits, D eposits, and D eposit T urnover —
Revised S eries . 7/72.
Y ields on N ewly Issued Corporate B o n d s . 9 /7 2 .
Recent A ctivities of Foreign B ranches of U .S .
B anks . 10/72.
Revision of C onsumer C redit S tatistics . 10/72.
O ne -B ank H olding Companies B efore the 1970
A mendments . 12/72.
Y ields on Recently O ffered Corporate B o n d s .
5/73.
S t a f f S t u d ie s
Studies and papers on economic and financial subjects
that are of general interest.
Summ aries Only Printed in the Bulletin
(Limited supply of mimeographed copies of full text
available upon request for single copies.)
M ortgage B orrowing A gainst E quity in E xisting
Homes : M easurement , G eneration , and Im
plications for Economic A ctivity , by David F.
Seiders. May 1978. 42 pp.
T he B ehavior of M ember B ank Required R eserve
R atios and the Effects of B oard A ction ,
1 9 6 8 -7 7 , by Thomas D . Sim pson. July 1978. 39
pp.
F oothold A cquisitions a n d B ank M arket S truc
t u r e , by Stephen A . Rhoades and Paul Schw eit
zer, July 1978. 8 pp.
Interest R ate C eilings and D isintermediation , by
Edward F. M cK elvey. Sept. 1978. 105 pp.
T he Relationship B etween Reserve R atios and
the M onetary A ggregates U nder R eserves
and F ederal F unds R ate O perating T argets,
by Kenneth J. Kopecky. Dec. 1978. 58 pp.
Tie-ins B etween the Granting of Credit and
S ales of Insurance by B ank Holding Compa
nies and O ther Lenders , by Robert A. Eisenbeis
and Paul R. Schweitzer. Feb. 1979. 75 pp.
G eographic E xpansion of B anks and C hanges in
B anking S tructure , by Stephen A. Rhoades.
March 1979. 40 pp.
Impact of the D ollar D epreciation on the U .S.
Price L evel : A n A nalytical S urvey of Em
pirical E stimates , by Peter Hooper and Barbara
R. Lowery. April 1979. 53 pp.
Rates on Consumer Instalment Lo a n s . 9/73.
N ew S eries for L arge M anufacturing Corpora
tions . 10/73.
U .S. E nergy S upplies and U ses , Staff Economic
Study by Clayton Gehman. 12/73.
T he S tructure of M argin Credit . 4 /7 5 .
N ew S tatistical S eries on Loan Commitments at
S elected L arge Commercial B an k s . 4 /7 5 .
Recent Trends in F ederal B udget Policy . 7 /75.
A n A ssessment of B ank Holding Companies, Staff
Economic Study by Robert J. Lawrence and Sam
uel H. Talley. 1/76.
Industrial Electric Power U se . 1/76.
Revision of M oney S tock M easures . 2 /76.
S urvey of Finance Companies, 1975. 3/76.
Revised S eries for M ember B ank D eposits and
A ggregate Reserves. 4 /7 6 .
Industrial Production— 1976 R evision. 6 /76.
F ederal R eserve O perations
nism s : A S u m m a r y . 6 /76.
in
P a ym ent M ec h a
N ew E stimates of C apacity U tilization : M a n u
facturing and M aterials . 11/76.
B ank Holding Company Financial D evelopments
in 1976. 4 /7 7 .
S urvey of Terms of B ank Lending — N ew S eries .
5 /77.
T he Commercial P aper M arket . 6 /7 7 .
Consumption and Fixed Investment in the Eco
nomic R ecovery A broad . 10/77.
Recent D evelopments in U .S . International
T ransactions. 4 /7 8 .
T he F ederal B udget in the 1970’s. 9/7 8 .
S ummary M easures of the D ollar’s Foreign E x
change V alue . 10/78.
S urvey of Time and S avings D eposits at A ll Com
mercial B anks , July 1978. 11/78.
Redefining the M onetary A ggregates. 1/79.
U .S . International T ransactions in 1978. 4/7 9 .
A 76
Index to S ta tistica l Tables
R eferen ces are to p a g e s A -3 through A -6 8 although the prefix “ A ” is o m itted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 2 0 -2 2 , 26
A ssets and liabilities ( See also Foreigners):
Banks, by classes, 16, 17, 18, 20—23, 29
Dom estic finance com panies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
A utom obiles:
Consumer instalment credit, 4 2 , 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U .S . Government securities):
N ew issues, 36
Y ields, 3
Branch banks:
A ssets and liabilities of foreign branches of U .S .
banks, 56
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
W eekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15 -1 9 , 2 0 -2 3
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 Assets and liabilities)
Construction, 46, 50
Consumer instalment credit, 4 2 , 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, 2 0 -2 3
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits ):
Banks, by classes, 3, 16, 17, 19, 2 0 -2 3 , 29
Federal Reserve Banks, 4 , 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
D ividends, corporate, 37
EM PLO YM ENT, 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 gross 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 M ortgage 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, 4 0 , 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U .S . Government 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:
A ssets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 4 2 , 43
Paper, 25, 27
Financial institutions, loans to, 18, 2 0 -2 2
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
D eposits 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, 5 6 -5 9 , 6 4 -6 7
GOLD.
Certificates, 12
Stock, 4 , 55
Government National M ortgage A ssn ., 35, 4 0 , 41
Gross national product, 52, 53
F ed eral R e serv e B u lletin □ M ay 1979
H O U SIN G , new and existing units, 50
INCOM E, personal and national, 4 6 , 52, 53
Industrial production, 46, 48
Instalment loans, 4 2 , 43
Insurance com panies, 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
M oney and capital markets, 3, 27
M ortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 5 6 -6 7
International organizations, 5 6 -6 1 , 64—67
Inventories, 52
Investment com panies, 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 com panies, 29
Savings and loan assns., 29
LABO R force, 47
Life insurance com panies ( See Insurance com panies)
Loans (See also specific types of loans):
Banks, by classes, 16, 17, 18, 2 0 -2 3 , 29
Commercial banks, 3, 1 5 -1 8 , 2 0 -2 3 , 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance com panies, 29, 41
Insured or guaranteed by United States, 4 0 , 41
Savings and loan associations, 29
M A N U FA C T U R IN G :
Capacity utilization, 46
Production, 4 6 , 49
Margin requirements, 28
Member banks:
A ssets 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
M ining production, 49
M obile home shipments, 50
Monetary aggregates, 3, 15
M oney and capital market rates ( See Interest rates)
M oney stock measures and com ponents, 3, 14
M ortgages (See Real estate loans)
Mutual funds (See Investment com panies)
Mutual savings banks, 3, 10, 2 0 -2 2 , 29, 32, 33, 41
NA TIO NAL banks, 17, 19
National defense outlays, 31
National incom e, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSO NAL incom e, 53
Prices:
Consumer and w holesale, 4 6 , 51
Stock market, 28
Prime rate, com mercial banks, 26
Production, 4 6 , 48
Profits, corporate, 37
A ll
REAL estate loans:
Banks, by classes, 18, 2 0 -2 3 , 29, 41
Life insurance com panies, 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, 4 2 , 4 3 , 46
SAVING:
Flow of funds, 4 4 , 45
National incom e accounts, 53
Savings and loan assns., 3, 10, 29, 33, 4 1 , 44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U .S . Government securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
N ew issues, 36
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
D eposits, 19, 20, 21, 22
Holdings of U .S . Government securities, 32, 33
N ew security issues, 36
Ownership of securities o f, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities):
N ew issues, 36
Prices, 28
TA X 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 PLO YM ENT, 47
U .S . balance of paym ents, 54
U .S . Government balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4 , 12, 30
U .S. Government 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 m oney and capital markets, 3, 27
Y ields, 3
U tilities, production, 49
VETERANS Administration, 4 0 , 41
W EEKLY reporting banks, 2 0 -2 4
W holesale prices, 46
YIELDS (See Interest rates)
A 78
T he Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
January 1978
—
Boundaries of Federal Reserve Districts
----- Boundaries of Federal Reserve Branch
Territories
Q
B oard of G overnors of the Federal
R eserve System
®
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
@FedFRASER