Full text of Federal Reserve Bulletin : May 1980

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M ay

1980

FEDERAL RESERVE

BULLETIN

Domestic Financial Developments in the First Quarter of 1980




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V o l u m e 66 □ N u m b e r 5 □ M a y 1980

FEDERAL RESERVE

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

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

it t e e

Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
Michael J. Prell, S taff Director
The F e d e r a l R e s e r v e B u l l e t i n is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is
furnished by the Economic Editing Unit headed by Mendelle T. Berenson.




Table of Contents
361 D o m e s t ic F i n a n c i a l D e v e l o p m e n t s
in the

Fir s t Q u ar te r

of

1980

According to the quarterly report to Con­
gress, interest rates rose to record levels in
the first quarter, but in April most rates fell
dramatically.
369 I n d u s t r i a l P r o d u c t i o n
Output decreased 1.9 percent in April.
371 S t a t e m e n t s

to

C o n gress

Governor J. Charles Partee testifies on the
redefinition of the monetary aggregates and
on the change in operating procedures in
providing funds to the market, before the
Subcommittee on Domestic Monetary Policy
of the House Committee on Banking, Fi­
nance and Urban Affairs, March 20, 1980.
374 Chairman Paul A. Volcker indicates his
support for the provisions of H.R. 6811, a
bill that authorizes U.S. participation in the
replenishment of the World Bank’s Inter­
national Development Association, before
the Subcommittee on International De­
velopment Institutions and Finance of the
House Committee on Banking, Finance and
Urban Affairs, April 16, 1980.
376 Governor Partee discusses housing and
the economy in light of the sharp deteriora­
tion in the mortgage and housing markets
in recent months and says that the Federal
Reserve must restrain growth in money and
credit consistent with the longer-run needs
of the economy in order to restore stable,
viable housing and residential mortgage
markets, before the Joint Economic Com­
mittee of the U.S. Congress, April 16,
1980.
379 Governor Emmett J. Rice presents the
views of the Board on the Home Mortgage



Disclosure Act and recommends a threeyear extension for HMDA along with more
limited and finely focused reporting re­
quirements, before the Subcommittee on
Financial Institutions Supervision, Regula­
tion and Insurance of the House Committee
on Banking, Finance and Urban Affairs,
April 16, 1980.
382 Vice Chairman Frederick H. Schultz dis­
cusses the effects of inflation on the econo­
my, particularly on small businesses, and
emphasizes that the special credit restraint
program encourages banks and finance
companies to meet the basic financing
needs of small businesses, farmers, and
others “ with limited alternative sources of
funds,” before the Subcommittee on Gen­
eral Oversight and Minority Enterprise of
the House Committee on Small Business,
April 17, 1980.
384 Governor Nancy H. Teeters states that the
Board believes the Cash Discount Act,
which would amend the Truth in Lending
Act and permit merchants to encourage
their customers to pay with cash rather
than with a credit card, is both timely and
beneficial; Mrs. Teeters also states that the
Fair Credit Practices Act, which would pro­
hibit creditors from imposing certain ad­
verse changes on the account terms of out­
standing balances in open-end consumer
credit accounts, would not serve either
consumers or creditors, before the Sub­
committee on Consumer Affairs of the
House Committee on Banking, Finance and
Urban Affairs, April 23, 1980.
386 Governor Teeters discusses the Board’s
opposition to the proposed privacy legisla­
tion, given that in its present form the bill
unnecessarily duplicates many existing pro­
visions of the Equal Credit Opportunity
Act, Regulation B, and the Fair Credit Re­

tions in the period until the next meeting
should be directed toward expansion of re­
serve aggregates consistent with growth
over the first half of 1980 at annual rates of
4V2 percent for M-1A and 5 percent for M1B, or somewhat less, provided that in the
intermeeting period the weekly average
federal funds rate remained within a range
of 13 to 20 percent. Consistent with this
short-run policy, in the Committee’s view,
M-2 should grow at an annual rate of about
VU percent over the first half, and expan­
sion of bank credit should slow in the
months ahead to a pace compatible with
growth over the year as a whole within the
range of 6 to 9 percent agreed upon.

porting Act, before the Senate Committee
on Banking, Housing, and Urban Affairs,
April 30, 1980.
388 Chairman Volcker outlines his role and that
of the Federal Reserve in assessing the
financial repercussions of the recent specu­
lation in the silver market, before the
Subcommittee on Agricultural Research
and General Legislation of the Senate
Committee on Agriculture, May 1, 1980.
393 A n n o u n c e m e n t s
Removal of surcharge on discount borrow­
ings by large banks.
Amendments to the consumer credit re­
straint program. (See Legal Developments.)

407 L e g a l D e v e l o p m e n t s

Establishment of a temporary seasonal
credit program for all small banks.

Amendments to Regulations E and L and to
the credit restraint program; delegation of
authority; interpretation of Regulation D;
various bank holding company and bank
merger orders; and pending cases.

Interpretation of Regulation D to imple­
ment the Monetary Control Act of 1980.
(See Legal Developments.)
Amendments to Regulation E relating to
implementation of the Electronic Fund
Transfer Act. (See Legal Developments.)
Issuance of final rules to carry out the pro­
visions of the Depository Institutions Man­
agement Interlocks Act. (See Legal Devel­
opments.)
Proposed revision to clarify and streamline
changes in Regulation Z; proposed changes
in the operations of the System’s wire net­
work.
First meeting of the Depository Institutions
Deregulation Committee.
Change in Board staff.
Admission of one state bank to membership
in the Federal Reserve System.
399 R e c o r d
Fed eral

P o l i c y A c t io n s o f t h e
O p e n M a r k e t C o m m it t e e

of

At the meeting on March 18, 1980, the
Committee agreed that open market opera­




Ai

Fin a n c ia l

and

B u s in e s s S t a t is t ic s

A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A69 G u id e
and

to T a b u l a r P r e s e n t a t io n
S t a t is t ic a l R e l e a s e s

A70 B o a r d

of

G overnors

and

S ta f f

A l l 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
AND STAFF; ADVISORY COUNCILS

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 f f ic 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 ic a t io n s

A76 I n d e x
A78 M a p

to

of

S t a t is t ic a l Ta b l e s

F e d e r a l R e s e r v e S y st e m

Domestic Financial Developments
in the First Quarter of 1980
This report , which was sent to the Joint Econom­
ic Com mittee o f the U.S. Congress on M ay 9,
1980, highlights the important developm ents in
dom estic financial m arkets during the winter and
early spring.

Interest rates rose sharply in the first quarter,
reaching new record levels in nominal terms.
Yields on long-term securities began to climb
early in the year as concerns about inflation
mounted. Unexpected continuing strength in eco­
nomic activity, large increases in January and
February in major price indexes, and inter­
national political developments that raised the
likelihood of higher domestic defense outlays en­
hanced fears that inflationary pressures might ac­
celerate further. In February, moreover, mone-

tary growth spurted upward, and money markets
tightened as the Federal Reserve’s provision of
nonborrowed reserves—consistent with its much
more moderate monetary growth targets—fell
well short of demands by member banks. In Feb­
ruary also, the Federal Reserve raised the dis­
count rate 1 percentage point, increasing the cost
of borrowed reserves for member banks to 13
percent. The federal funds rate rose more than
13/4 percentage points in February and then in­
creased that much again by the second week in
March; other short-term market rates traced a
similar pattern. Mortgage interest rates moved
upward as the rising cost of loanable funds and
reduced deposit flows at thrift institutions in­
duced these institutions to cut back further on
their mortgage lending.

Interest rates

Monthly averages except for Federal Reserve discount rate and
conventional mortgages (based on quotations for one day each
month). Yields: U.S. Treasury bills, market yields on three-month is­
sues; prime commercial paper, dealer offering rates; conventional
mortgages, rates on first mortgages in primary markets, unweighted
and rounded to nearest 5 basis points, from U.S. Department of Hous­
ing and Urban Development; Aaa utility bonds, weighted averages of




new publicly offered bonds rated Aaa, Aa, and A by Moody’s In­
vestors Service and adjusted to Aaa basis; U.S. government bonds,
market yields adjusted to 20-year constant maturity by U.S. Treasury;
state and local government bonds (20 issues, mixed quality), Bond
Buyer. Latest data, April 1980 except March for conventional
mortgages.

362

Federal Reserve Bulletin □ May 1980

Changes in selected monetary aggregates1
Based on seasonally adjusted data unless otherwise noted, in percent
1979
1977

1978

1980

1979

Ql

Q2

Q
3

Q4

Ql

Member bank reserves2
Total ..........................................................................
Nonborrowed ..........................................................
Monetary base3 ........................................................

5.2
2.9
8.2

6.8
6.9
9.2

2.9
.9
7.6

-2 .3
-2 .7
5.9

-3 .7
-7 .5
4.8

5.0
6.9
9.3

12.6
7.0
9.6

5.1
4.3
7.8

Concepts of money4
M -1A..........................................................................
M-1B ..........................................................................
M-2 .............................................................................
M-3 .............................................................................

7.7
8.1
11.5
12.6

7.4
8.2
8.4
11.3

5.5
8.0
8.8
9.5

.2
4.8
6.3
7.9

7.8
10.7
10.2
8.8

8.8
10.1
10.3
10.3

4.7
5.3
7.2
9.9

5.5
6.0
7.3
8.4

Selected components of M-2
Currency ..................................................................
Demand deposits .....................................................
Other checkable deposits5 .....................................
Overnight RPs and overnight
Eurodollar deposits5 ........................................
Money market mutual fund shares5........................
Savings deposits........................................................
Small time deposits..................................................

9.5
7.0
56.0

10.0
6.5
71.8

9.4
4.0
137.3

9.1
-3 .2
250.7

8.1
7.6
102.8

11.1
8.0
46.7

8.1
3.4
15.7

8.7
4.1
17.6

42.5
5.9
9.8
15.1

26.5
163.9
- .5
16.2

6.6
324.2
-11.8
22.7

14.0
210.5
-1 7 .0
24.8

35.4
204.1
-9 .7
20.4

-4 .7
166.2
-1 .5
14.4

-17.3
120.0
-2 1 .0
24.5

- 4 .9
149.9
-19.9
17.6

(change in billions of dollars)
Managed liabilities at commercial banks ................
Large time deposits, gross ....................................
Nondeposit funds ....................................................
Net due to foreign related institutions ............
Other6 ....................................................................

27.9
19.2
8.7
-3 .8
12.4

73.5
50.4
23.1
6.6
16.5

62.9
21.9
41.0
26.0
15.0

19.8
10.7
9.1
4.3
4.8

13.3
-4 .3
17.6
11.9
5.7

19.0
3.3
15.7
9.1
6.6

10.9
12.3
-1 .4
.7
-2 .1

10.5
6.1
4.4
-2 .4
6.9

U.S. government deposits at commercial
banks .....................................................................

- .1

3.5

1.3

1.4

- .8

3.6

- 2 .9

1.5

M em o

1. Changes are calculated from the average amounts outstanding in
each quarter.
2. Annual rates of change in reserve measures have been adjusted
for regulatory changes in reserve requirements.
3. Consists of total reserves (member bank reserve balances
in the current week plus vault cash held two weeks earlier), currency
in circulation (currency outside the U.S. Treasury, Federal Reserve
Banks, and the vaults of commercial banks), and vault cash of non­
member banks.
4. M-1A is currency plus private demand deposits net of deposits
due to foreign commercial banks and official institutions. M-1B is
M-1A plus other checkable deposits (negotiable order of withdrawal
accounts, accounts subject to automatic transfer service, credit union
share draft balances, and demand deposits at mutual savings banks).

In mid-March the Federal Reserve took addi­
tional steps, as part of a general government pro­
gram, to help restrain credit demands and there­
by reduce inflationary pressures. These actions,
some of which were taken under the provisions
of the Credit Control Act of 1969, were intended
to damp overall credit growth and, at the same
time, to achieve a more equitable distribution
among uses of the limited supply of funds. Under
a voluntary special credit restraint program,
banking institutions and finance companies were
urged to keep their total loan growth during 1980
below 9 percent. Lenders, however, were asked
to make particular efforts to meet the basic credit
needs of small businesses and farmers and other
local customers with little or no access to alter­
native sources of funds.



M-2 is M-1B plus overnight repurchase agreements (RPs) issued by
commercial banks, overnight Eurodollar deposits held by U.S.
nonbank residents at Carribbean branches of U.S. banks, money
market mutual fund shares, and savings and small time deposits at
all depository institutions. M-3 is M-2 plus large time deposits at
all depository institutions and term RPs issued by commercial banks
and savings and loan associations. For more information on the
redefined monetary aggregates, see the F e d e r a l R e s e r v e B u l l e t i n ,
vol. 66 (February 1980), pp. 97-114.
5. Not seasonally adjusted.
6. Consists of borrowings from other than commercial banks
through federal funds purchased and securities sold under repurchase
agreements plus loans sold to affiliates, loans sold under repurchase
agreements, and other borrowings.

Additional steps were taken to discourage the
use of purchased funds by large commercial
banks. The base from which large member banks
measure increases in their managed liabilities—
under the program introduced last October—was
reduced and the reserve requirement on this mar­
gin was increased to 10 percent from 8 percent.
The Board similarly directed large nonmember
banks to hold non-interest-bearing special depos­
its with the Federal Reserve System equal to 10
percent of increases in managed liabilities above
a current base-period level. Also, a surcharge of
3 percentage points was applied to frequent bor­
rowings from the discount window by large
banks; the basic discount rate remained at 13
percent.
Restraints were also introduced on the kinds of

Domestic Financial Developments, Q1 1980

consumer credit that had been used to finance
generalized consumer purchases. In particular, a
special deposit requirement of 15 percent was
imposed on increases above base-period levels in
credit cards, check-credit overdraft plans, unse­
cured personal loans, and secured credit when
the proceeds are not used to finance the col­
lateral. Finally, money market mutual funds
(MMMFs) were directed to establish special de­
posits at the Federal Reserve equal to 15 percent
of any further increase in MMMF assets after
March 14.
Interest rates rose further in the second half of
March, reaching historic highs around the end of
the quarter. But in April, as evidence accumu­
lated of a softening in economic activity, most
rates fell dramatically. By late April much of the
upsurge earlier in the year had been retraced;
mortgage rates, however, remained near peak
levels. The steep rise in U.S. interest rates in the
first quarter strengthened demands for the dollar
in international markets, and the exchange value
of the dollar rose sharply in March. But in April
the dollar came under downward pressures as in­
terest rates fell.
Expansion of money and credit slowed abrupt­
ly in March, and for the quarter as a whole,
growth rates of the monetary aggregates were
close to the midpoint of the ranges targeted by
the Federal Open Market Committee for the four
quarters of 1980. On the other hand, credit flows
to nonfinancial sectors of the U.S. economy, de­
spite a moderation in March, appear to have ac­
celerated during the first quarter, entirely the re­
sult of a surge in short- and intermediate-term
credit borrowing by nonfinancial businesses.
Part of the increase in business borrowing appar­
ently was in anticipation of diminished credit
availability. Net funds raised by households, the
U.S. Treasury, and state and local governments
moderated in the first quarter.

363

rapid pace as in the preceding quarter, M-1B
continued to grow somewhat faster than M-l A.
The expansion of these two measures of the pub­
lic’s transactions balances fell well short of the
increase in nominal gross national product, likely
reflecting the efforts of businesses and house­
holds to economize on nonearning balances in an
environment of record high interest rates.
High market rates of interest also induced a
continuation of withdrawals from savings and
fixed-ceiling small-denomination time deposits at
commercial banks and thrift institutions in the
first quarter. These withdrawals were more than
offset, however, by inflows into variable-ceiling
small time deposits and MMMFs. On balance,
the nontransactions component of M-2 expanded
at about the pace of the previous quarter, and
overall M-2 growth was at an annual rate of l lh
percent.
Effective January 1, 1980, commercial banks
and thrift institutions were authorized to offer
time deposits of any size having a minimum
maturity of 2lh years and a maximum yield tied
to that on Treasury securities. In January and
February, the maximum rates at banks and thrift
institutions were respectively 75 and 50 basis
points below the yield prevailing late in the pre­
ceding month on Treasury securities with matuTreasury yield curves and deposit rate ceilings
annum

MONETAR Y A GGREGA TES
Ba n k C re d it

and

Growth in M-l A (currency plus commercial bank
demand deposits) picked up a bit in the first quar­
ter to an annual rate of 5lh percent. With inflows
to other checkable accounts at all depository in­
stitutions maintaining about the same relatively



2

3

4
5
6
7
8
Years to maturity______________

*This point marks the maximum yield on market time de­
posits at commercial banks and thrift institutions for March 31, 1980.
Data reflect annual effective yields. Ceiling rates are yields derived
from continuous compounding of the nominal ceiling rates. Marketyield data are on an investment-yield basis.

364

Federal Reserve Bulletin □ May 1980

rities of 30 months. Owing to the exceptionally
sharp February rise in market yields on Treasury
securities to which the new certificate rates were
tied, however, the federal regulatory agencies
put a temporary cap of 1VU percent at banks and
12 percent at thrift institutions, effective for new
certificates sold beginning in March. Over the
first quarter, sales of the new certificates totaled
$13V4 billion, 65 percent of which were issued by
thrift institutions. Over the same period, net
sales of six-month money market certificates—
with no interinstitutional differential in rates—
amounted to $76 billion, with thrift institutions
accounting for 54 percent of net issuance.
The fastest growing component of M-2,
MMMFs, posted record gains early in the year.
However, growth of these funds slowed consid­
erably in early March, and the level of fund
shares outstanding actually declined slightly af­
ter the March 14 announcement of a 15 percent
special cash deposit on further increases in as­
sets. Even so, at the end of March variable-ceil­
ing deposits and money fund shares accounted
for about 35 percent of the nontransactions com­
ponent of M-2, up from just under 27 percent
three months earlier. Households also acquired a
substantial amount of Treasury bills through
noncompetitive tenders in the first quarter, par­
ticularly in March; such tenders increased still
further in April.
Growth of member bank reserves slowed mark­
edly in the first quarter. The discount rate was
raised to 13 percent from 12 percent at midquar­
ter, and to ensure that banks adjusted promptly
to changes in nonborrowed reserve availability,
the System established a surcharge of 3 percent­
age points on borrowings by large banks coming
to the window frequently. Member bank borrow­
ing averaged $1.9 billion in the first quarter.
Bank credit increased sharply in the first quar­
ter, largely reflecting a strong expansion in busi­
ness loans in January and February. Business
loan demand likely reflected the high cost of
bond financing in the quarter, as well as some
anticipatory borrowing based on expectations
that further official actions to slow credit growth
might be imminent. The moderation in business
loan growth in March reflected in part a sizable
liquidation of bank holdings of bankers accept­
ances. Growth in real estate loans slowed moder


Components of
bank credit

Major categories of
bank loans
Change, billions of dollars
4
BUSINESS

TREASURY SECURITIES
- i —-. I--- 1 ...i

« j

12

4

I*

rl nnn n
~

16

+
0

[ rz

8

OTHER SECURITIES

TOTAL LOANS

□

4
. 0
40

4
0

12

8

32

4
0

24

CONSUMER

16

H o .

n ,n

NONBANK FINANCIAL

JUL
Q1

Q2

Q3

1979

Q4

Q1

1980

Q1

Q2

Q3

1979

Q4

Q1

1980

Seasonally adjusted. Total loans and business loans are adjusted
for transfers between banks and their holding companies, affiliates,
subsidiaries, or foreign branches.

ately in the first quarter, while consumer install­
ment loan extensions declined from the already
reduced pace of the preceding quarter. Bank in­
vestments picked up in the first quarter, but by
less than loan growth; most of the security acqui­
sitions were made in February when deposit in­
flows were strong.
Although bank credit expansion in the first
quarter exceeded inflows to core deposits, bank
issuance of managed liabilities declined slightly
because of a large increase in government depos­
its at banks. Net sales of large-denomination
time deposits remained above the average pace
of 1979 but were considerably less than in the
fourth quarter, as banks increased their reliance
on nondeposit funds.

B u s in e s s F i n a n c e

Total funds raised by businesses in financial mar­
kets increased considerably in the first quarter
from the depressed fourth-quarter pace, but re­
mained below borrowing totals earlier in 1979.
Nonfinancial corporations increased their bor-

Domestic Financial Developments, Ql 1980

Business loans and
short- and intermediate-term business credit
Seasonally adjusted annual rates of change, in percent1
Business loans
at banks2

Short- and
intermediate-term
business credit3

21.8
19.3
-3 .8
1.3
10.5
16 3
17.5

21.5
23.5
-4 .0
4.4
13.6
18.3
20.0

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

20.5
16.6
22.7
6.0

20.8
20.1
27.4
6.4

1980-Qle .................

16.4

22.0

Period
1973
1974
1975
1976
1977
1978
1979

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

1979-Q1
Q2
Q3
Q4

1. Growth rates calculated between last months of period.
2. Based on monthly averages of Wednesday data for domestically
chartered banks and an average of current and previous month-end
data for foreign-related institutions. Adjusted for outstanding amounts
of loans sold to affiliates. Includes holdings of bankers acceptances.
3. Short- and intermediate-term business credit is business loans at
commercial banks plus nonfinancial commercial paper plus finance
company loans to businesses and bankers acceptances outstanding
outside banks. Commercial paper reflects prorated averages of
Wednesday data. Finance company loans and bankers acceptances
outstanding reflect averages of current and previous month-end data.
e Estimated.

rowing even though the gap between their in­
ternal funds and capital outlays remained close
to the fourth-quarter level; corporations appar­
ently added substantially to their holdings of liq­
uid assets. Expanded use of business credit in
the first quarter was concentrated in borrowing
from short- and intermediate-term sources—es­
pecially in the first two months of the year. At
the same time, nonfinancial corporations de­
creased borrowing in bond markets, as many
firms avoided issuing long-term debt at record
high yields.
Much of the growth in borrowing was account­
ed for by the sharp increase in bank loans to busi­
nesses, which occurred despite an increase in the
prime rate at commercial banks of nearly 5 per­
centage points during the first quarter. This rate
reached a record 20 percent in early April. Re­
portedly in anticipation of the imposition of cred­
it controls, businesses increased their credit lines
at banks.
The outstanding commercial paper of non­
financial firms increased at a record rate in the
first quarter, substantially above its fourth-quarter pace. Growth in total bankers acceptances
outstanding also rose appreciably in the first peri­



365

od. In contrast, business credit at finance com­
panies, a major source of funds for some non­
financial businesses in both 1978 and 1979,
contracted somewhat over the first quarter of
1980. The weakness so far this year is attribut­
able, in part, to a runoff of auto- and truck-re­
lated credit. Excluding these loans related to
motor vehicles, however, business credit at
finance companies still grew at only about half
of last year’s pace.
The increased use of short-term financing in
the first quarter resulted in a further rise in the
ratio of short- to long-term debt outstanding for
nonfinancial corporations. At the end of the first
quarter, this ratio was at a record high, well
above its previous peak in 1974.
Long-term debt offered publicly by corpora­
tions fell slightly during the January-March peri­
od, reflecting a decline in issues of financial cor­
porations. Public debt issues of nonfinancial cor­
porations were up slightly for the quarter, owing
to a large volume of longer-term note and
bond issues of public utilities in January. The
volume of bond issuance of nonfinancial firms
declined sharply in February, however, and fell
slightly further in March; firms were deterred
from issuing long-term debt by much higher in­
terest rates and unsettled market conditions. In­
deed, an unusually large portion of the utility
bonds that were brought to market in recent
months were intermediate term, carrying matu­
rities of less than 10 years. Among the low vol­
ume of bond offerings by industrial corporations
in the first quarter, several issues were convert­
ible debt obligations, designed to reduce the im­
mediate cost of borrowing.
Funds made available to corporations through
private bond placements in the first quarter are
estimated to have increased from the reduced
pace of the third and fourth quarters. Never­
theless, life insurance companies (the major pur­
chaser of privately placed bonds) sharply cur­
tailed new commitments for both corporate
bonds and mortgages, as further growth in policy
loans and unexpected deferrals of employer con­
tributions to some of the industry’s pension fund
accounts reduced investable funds of these insti­
tutions in the first quarter.
Yields on corporate bonds increased sharply
further in the first quarter following a substantial

366

Federal Reserve Bulletin □ May 1980

have experienced big gains in share prices over
the last two years—increased markedly.

Gross offerings of new security issues
Seasonally adjusted annual rates, in billions of dollars
1980

1979
Type of security
Ql

Q2

Q3

Q4

Q le

Domestic corporate ....
Bonds.........................
Publicly offered ....
Privately placed....
Stocks .......................

48
39
18
21
9

58
50
35
15
8

55
38
26
12
17

47
35
25
10
12

57
39
23
16
18

Foreign .........................

3

7

9

5

2

State and local
government...............

41

42

44

47

33

G o v e r n m e n t F in a n c e

e Estimated.

upward movement during the last three months
of 1979. Between the end of December and the
end of March, the index of yields on newly is­
sued, Aaa-rated utility bonds increased 23U per­
centage points, to 14 percent. In April, however,
corporate bond rates began to fall, and by the
end of the month more than half of their firstquarter rise had been erased. The spread be­
tween A- and Aaa-rated bonds—a measure of the
risk premiums required by investors on lower­
rated bonds—widened to about IV2 percentage
points in April from around 1 percentage point at
year-end.
All major indexes of stock prices declined on
balance over the first quarter despite substantial
increases in January and early February. The
composite indexes of the American Stock Ex­
change, the New York Stock Exchange, and the
National Association of Securities Dealers
peaked in midquarter at record highs, but by the
end of the first quarter, they had fallen below
their levels at year-end 1979.
The falloff in the major stock price indexes was
reflected in a decline in conventional measures of
price-eamings ratios in the first quarter; the ag­
gregate price-earnings ratio for the 500 firms in­
cluded in Standard & Poor’s index reached a 30year low of 6.7 in late March, which was below
the 1974 low level but still well above the 1949
low of 5.9. The total volume of new equity of­
ferings increased sharply in the first quarter, as
stock prices reached record highs in February
and the cost of debt financing rose appreciably.
Public utilities continued to account for a large
portion of offerings, but new equity offerings by
smaller industrial concerns—many of which



The gross volume of bond issues by state and lo­
cal governments fell sharply in the first quarter
from the near-record pace in the fourth quarter of
1979. A large dollar volume of issues was post­
poned or canceled as many municipal govern­
ments were either unwilling to sell long-term
bonds at high interest rates or unable to sell their
securities because of statutory limitations on the
interest they can pay on such obligations. Most
of the displaced issues were bonds to raise new
capital for purposes other than the support of
housing; the volume of housing bonds was only
slightly below the high level of the previous quar­
ter. Almost 90 percent of the housing revenue
bonds issued in the first quarter were for financ­
ing single-family mortgages.
Interest rates on state and local obligations,
like yields in other markets, rose to record highs
in the first quarter and then fell off sharply in
April. The Bond Buyer index of yields on general
obligation bonds, at 9.4 percent at the end of
March, was about 2X percentage points above
U
its level at the end of 1979. By late April, the
index had moved back down to near 8.1 percent.
Net Treasury borrowing during the first quar­
ter—at $19.1 billion (not seasonally adjusted)—
was little changed from the fourth-quarter level,
despite a slight increase in the combined federal
deficit, which includes the net outlays of off-bud­
get agencies. As in the fourth quarter, a consid­
erable portion of the deficit was financed by a
drawdown of Treasury cash balances.
The outstanding volume of nonmarketable
Treasury obligations fell by $7.8 billion during
the first quarter. Savings bond redemptions ac­
counted for nearly half of this sizable decline, re­
flecting the response of investors to the wide dif­
ferential between market interest rates and yields
on savings bonds. Foreign central banks also re­
deemed a large amount of nonmarketable Trea­
sury securities to fund exchange market inter­
vention in support of their currencies. As a
result, the Treasury’s issuance of marketable
securities was especially large. Although the

Domestic Financial Developments, Ql 1980

367

Federal government borrowing and cash balance
Not seasonally adjusted, in billions of dollars
1978

1980

1979

Item

Federally sponsored credit agencies,
net cash borrowings4 ...........................

Q4

Ql

-8 .1
-3 .1

-2 3 .8
- .1

-2 0 .4
-3 .0

2.5
-3 .2
11.1

15.1
1.0
4.9

15.3
2.6
-6 .1

6.5

6.1

5.2

Q2

Q3

-25.8
-3 .7

14.0
-2 .2

20.8
2.8
-5 .9
4.5

Ql
Treasury financing
Budget surplus, or deficit ( - ) .................
Off-budget deficit1 ....................................
New cash borrowings or
repayments ( - ) .................................
Other means of financing3 .......................
Change in cash balance............................

10.62
4.2
- 8 .6
6.3

Q4

Ql

Q2

Q3

21.4
-5 .2

-4 .4
-4 .2

-2 4 .6
- .9

-27.1
-3 .8

-4 .6
-1 .9
9.8

12.4
2.9
6.7

18.9
- 1 .7
-8 .3

19.1
4.1
-7 .7

5.5

4.7

7.3

6.2e

1. Includes outlays of the Pension Guaranty Corporation, Postal
Service Fund, Rural Electrification and Telephone Revolving Fund,
Rural Telephone Bank, Housing for the Elderly or Handicapped
Fund, and Federal Financing Bank. All data have been adjusted
to reflect the return of the Export-Import Bank to the unified budget.
2. Includes $2.6 billion of borrowing from the Federal Reserve
on March 31, which was repaid April 4 after enactment of a
new debt-ceiling bill.

3. Checks issued less checks paid, accrued items, and other
transactions.
4. Includes debt of the Federal Home Loan Mortgage Corporation,
Federal Home Loan Banks, Federal Land Banks, Federal Inter­
mediate Credit Banks, Banks for Cooperatives, and Federal National
Mortgage Association (including discount notes and securities guaran­
teed by the Government National Mortgage Association).
e Estimated.

Treasury increased the outstanding volume of
coupon securities, the principal source of funds
to meet its financing requirements was the bill
market. New funds raised in the weekly and
monthly bill auctions totaled almost $6.5 billion,
a moderate increase from the pace in the fourth
quarter of 1979. Also, the Treasury issued about
$12 billion of cash management bills to be repaid
after the receipt of tax payments in April and
June.
Net borrowing by federally sponsored credit
agencies totaled an estimated $6.2 billion in the
first quarter (not seasonally adjusted), somewhat
below the record volume of the previous quarter.
Slightly more than half of these funds were raised
by the Federal Farm Credit Banks for mortgage
lending activity of the Federal Land Banks. The
two major housing agencies, the Federal Home
Loan Bank Board and the Federal National
Mortgage Association, borrowed about $3 bil­
lion, considerably less than in the fourth quarter.
Yields on Treasury securities of all maturities
increased appreciably in the first quarter. Inter­
est rates on Treasury bills rose between 3 and 4
percentage points from the beginning of the year
to mid-March, and rates on intermediate- and
long-term Treasury securities increased between
2 and 3 percentage points. The upward move­
ments in interest rates during the first quarter
were less pronounced for Treasury obligations
than for private debt securities, owing to in­
creased desires for safety and liquidity on the

part of investors. Yields on Treasury issues also
declined rapidly in April and by the end of the
month had returned to levels near those prevail­
ing in December.




M ortgage

and

C o n s u m e r C r e d it

Mortgage credit conditions tightened sharply in
the first quarter. The average rate at savings and
loan associations on new commitments for con­
ventional home mortgages, with 80 percent loanto-value ratios, was above 16 percent at the end
of the quarter—more than 3 percentage points
higher than in December 1979. Federal preemp­
tion of state ceilings on most conventional resi­
dential mortgage rates, which had been in force
on a temporary basis during the first quarter, was
made permanent as of April 1, subject to state
action within three years to restore usury limits.
Yields on government-underwritten loans in the
first quarter moved up somewhat less than yields
on conventional mortgages. As market rates
rose, the administration raised, in several steps,
the ceiling rate for Federal Housing Administra­
tion-insured and Veterans Administration-guar­
anteed home loans to a high of 14 percent in early
April. The rate was subsequently lowered to 13
percent in association with the decline in market
yields.
The large increase in interest rates deterred
borrowing during the first quarter, and mortgage

368

Federal Reserve Bulletin □ May 1980

lending and commitment activity declined sub­
stantially. The slowing in mortgage lending was
concentrated in the residential sector and primar­
ily reflected reductions in net lending at com­
mercial banks and savings and loan associations,
as well as a large falloff in issues of GNMA-guar­
anteed mortgage-backed securities. Loan com­
mitments outstanding at savings and loan associ­
ations and mutual savings banks fell sharply in
the first quarter, reflecting concerns about the fu­
ture cost and availability of lendable funds in
light of weak deposit flows at these institutions.
The overall weakness of deposit growth at thrift
institutions was attributable to a decline in pass­
book and fixed-ceiling time deposits early in the
quarter and, at savings and loans, to a falloff in
the issuance of large certificates of deposit near
the end of the period.
Faced with weak deposit flows, savings and
loan associations stepped up their borrowing to
help meet takedowns of mortgage commitments.
Although other sources of borrowed funds were
used, net borrowing from the Federal Home
Loan Banks (FHLBs) during the first quarter
was the primary source and totaled a record $6.4
billion, seasonally adjusted.
The average liquidity of insured savings and
loan associations—measured by the ratio of cash
and liquid assets to the sum of short-term bor­
rowings and deposits—fell slightly in the first
Net change in mortgage debt outstanding
Seasonally adjusted annual rates, in billions of dollars
1979

1980

Mortgage debt
Q1

Q2

Q3

Q4

Q le

By type o f debt
T otal........................................
Residential ........................
Other1 ................................

156
118
38

164
118
47

160
114
46

154
115
39

134
97
37

By type o f holder
Commercial banks................
Savings and loans...................
Mutual savings banks ...........
Life insurance companies ...
FNMA and GNMA .............
Other2 .....................................

30
45
6
11
12
52

30
51
4
11
7
61

34
43
4
14
3
62

32
33
2
15
10
62

28
24
2
14
11
55

1. Includes commercial and other nonresidential as well as farm
properties.
2. Includes mortgage pools backing securities guaranteed by the
Government National Mortgage Association, Federal Home Loan
Mortgage Corporation, or Farmers Home Administration, some of
which may have been purchased by the institutions shown separately.
e Partially estimated.




quarter. To provide some relief for savings and
loan associations with reduced deposit flows and
earnings difficulties, the FHLB Board lowered
the minimum liquidity requirement from 5V2 to 5
percent, effective April 1, and announced plans
to increase dividends paid to savings and loans
on FHLB stock held by the associations. More­
over, on April 4, the FHLB Board issued a regu­
lation permitting federal savings and loan associ­
ations to offer mortgages providing for interest
rate adjustments, within designated limits, every
three to five years.
The combination of unusually high costs of
funds and restrictive state usury ceilings on fi­
nance rates discouraged the extension of con­
sumer credit during the first quarter. Consumer
installment credit outstanding expanded at about
a 7 percent annual rate, slightly below the al­
ready reduced rate of advance in the fourth quar­
ter. Automobile credit accounted for nearly 50
percent of the expansion in total installment
credit in the January-February period. Finance
companies—especially the subsidiaries of the au­
tomobile manufacturers—were the principal sup­
pliers of automobile credit; in contrast, out­
standing auto credit contracted at credit unions
and increased only negligibly at banks in January
and February.
The credit restraint program announced March
14 provided additional incentives to lenders to
restrain the growth of certain types of consumer
credit—namely, credit cards, check-credit over­
draft plans, and unsecured personal loans. One
aspect of the program requires creditors to main­
tain a non-interest-bearing special deposit with
the Federal Reserve if they permit the amount of
regulated credit to expand above a base amount.
Partly in response to this provision, some retail­
ers and commercial banks have taken steps to
make it more expensive and more difficult for
consumers to obtain credit. Some of the mea­
sures taken have been to increase the cost of
credit-card transactions to the borrower by in­
creasing finance rates or imposing annual fees, or
by changing other terms of credit. Many credi­
tors have raised the credit qualifications required
for new loans and credit-card accounts and have
tightened policies for dealing with delinquent
borrowers.
□

369

Industrial Production
percent in April, with the largest declines in du­
rable materials—especially basic metals such as
steel and parts for consumer durable goods. Out­
put of nondurable materials, in particular textiles
and chemicals, decreased almost 2 percent after
sizable declines in February and March. Produc­
tion of energy materials declined 0.5 percent in
April.

R e le a s e d f o r p u b lic a tio n M a y 16

Industrial production fell sharply in April, by an
estimated 1.9 percent, after smaller declines in
both February and March. The largest declines
during April occurred in the production of motor
vehicles, including parts and related materials,
and in construction supplies. Reductions were
widespread, however, among other components
and accounted for most of the decline in the over­
all index. In April, at 148.5 percent of the 1967
average, the index was 2.9 percent below the
high reached in March 1979.
Output of consumer goods declined 2.0 per­
cent in April, reflecting sharp cutbacks in pro­
duction of autos and utility vehicles (mostly
lightweight trucks), as well as curtailments in
other areas. Autos were assembled at an annual
rate of 6.0 million units—15 percent below the
rate of last month and more than 30 percent be­
low the rate in the first half of 1979. Further re­
ductions occurred in the output of home goods
and in consumer nondurable goods such as food
and fuel. Production of business equipment,
which has been a strong component of the index
over the last year, showed a small decline. Out­
put of construction supplies decreased sharply,
continuing the recent large reduction in the lum­
ber and stone, clay, and glass industries.
Production of materials was reduced by 2.3
=
1967 = 100

p Preliminary.

e Estimated.




Apr.e

151.3
149.1
147.1
148.1
144.1
149.7
175.5
156.6
150.1
154.6

148.5
146.9
145.3
145.1
136.6
148.5
175.0
153.2
145.0
151.0

N ote.

1976

1978

1979

Mar.p
Total industrial production .......
Products, to ta l............................
Final products........................
Consumer g o o d s................
Durable............................
Nondurable.....................
Business equipment .........
Intermediate products............
Construction supplies .......
Materials ....................................

1974

1980

1974

Nov.
- .1
- .1
- .1
- .5
-2 .2
.1
.3
.0
-.1
.1

1976

1978

1980

Federal Reserve indexes, seasonally adjusted. Latest figures: April.
Auto sales and stocks include imports.

Percentage change from preceding month

1980

Grouping

Seasonally adjusted, ratio scale, 1967 = 100

Mar.

Apr.

Percentage
change
Apr. 1979
to
Apr. 1980

- .7
- .7
- .4
- .6
- .4
-.7
- .1
-1 .8
- 2 .6
- .6

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

- 1 .5
- 1 .0
- .1
-2 .7
- 9 .9
.3
3.7
-4 .1
-7 .1
-2 .3

1980
Dec.
.1
.2
.3
- .3
-1 .7
.3
.9
.1
- .4
- .1

Indexes are seasonally adjusted.

Jan.
.3
.2
.0
- .2
- 2 .9
.9
.5
.6
.3
.3

Feb.
- .2
.1
.5
.5
1.6
.1
.4
- .9
-1 .5
- .8

371

Statements to Congress
Testimony o f J. Charles P artee, M em ber o f the
Board o f Governors o f the Federal R eserve Sys­
tem, before the Subcom m ittee on Dom estic
M onetary Policy o f the House Com mittee on
Banking, Finance and Urban Affairs, March 20,
1980.

I shall begin with a few preliminary comments
that might help to focus the discussion and to in­
spire some questions at the same time.
The redefinition of the aggregates has been a
long process at the Federal Reserve. It was more
than a year ago, I think, that we published a pro­
posal for redefinition of the monetary aggregates.
We held meetings with academic and other econ­
omists. We solicited comments from the public
on the proposal. So, it wasn’t a quick thing, but a
carefully studied process of redefinition.
Without going into great detail about the pro­
cess, I would say that, in the redefinition that we
have now adopted and are now publishing, there
were two guiding principles. The first is that we
decided that it was necessary to define the com­
ponents of the money supply according to their
functional rather than their institutional attri­
butes. That is to say, “A rose is a rose by any
other name.” And if there is a transactions ac­
count in a nonbank depositary institution, such
as a savings and loan association or a credit
union, it should be defined as a transactions ac­
count. So, for the first time in the history of our
publication of the aggregates, we now make no
distinction between commercial banks and other
depositary institutions.
The second guiding principle is that we needed
to take account of changes in practices over re­
cent years that resulted from technological and
other changes. In recent years we have had the
development of NOW (negotiable order of with­
drawal) accounts and of share drafts at credit
unions. About a year and a half ago, we permit­
ted the banks to have automatic transfer facilities
from passbook savings accounts. The money
market mutual funds have grown greatly over



this period and provide access to a checkable fa­
cility. And an instrument called a “ repurchase
agreement” has been broadly developed by fi­
nancial institutions for sale largely to corporate
customers; this is a very liquid instrument and
has some attributes of money.
So, we have had to incorporate those develop­
ments, and it is not an exhaustive list ; I am sure it
will be subject to further changes in the years to
come. But, I think our new definitions bring us
up to date on financial practices in the United
States at this time.
We have continued the old M-l series for his­
torical connection, and also because, looking
ahead, there are some possible problems in inter­
preting the new M-l series. We now have an
M-1A and an M-1B. M-1A is pretty close to the
previous definition of M -l, and M-1B includes
some of the new transactions instruments: NOW
accounts. ATS (automatic transfer service), and
share drafts. These instruments do not amount to
much at this point. They totaled about $15 billion
last November. But they are growing more rapid­
ly than the old M -l, and we think they will grow
even faster when the Congress votes permanent
NOW accounts in the bill that has been reported
out of conference committee. That authorization
will take effect at the end of this year, so next
year may be a period of rapid growth in NOW
accounts nationwide.
The reason we retained M-l A is that a NOW
account, for example, often will consist partly of
the old checking account and partly of the old
savings account. The old checking account was
in M-l. The old M-l is now M-1A but NOW ac­
counts will be transferred out of it, thus reducing
the growth rate of M-l A. The old passbook sav­
ings account was previously in M-2, and that ac­
count will be put into M-1B thereby raising the
rate of growth in M-1B.
So, we need to look at both series as we go
through this transition, and thus we will continue
for a period this breakdown into M-l A and
M-1B.

372

Federal Reserve Bulletin □ May 1980

M-2 is defined to include all savings accounts
wherever they may be; all small-denomination
time deposits wherever they may be; overnight
repurchase agreements (RPs); and money market
mutual funds, which have been far and away the
most rapidly growing financial instrument over
the last year and a half and have a great deal of
transactions-type liquidity in them.
And then there is M-3, which includes big ad­
ditions to the old M-2. M-3 comprises large-de­
nomination time deposits and term RPs at both
savings and loans and commercial banks.
When you are finished, the figure for M-3, the
broadest of these aggregates, is about $150 bil­
lion or 8 percent higher than before. And the
growth rate, taking the old M-3 as against the
new M-3, is a shade higher over the last five or
six years.
By and large, this has not changed the histori­
cal characteristics of the series much. But I think
that it would be fair to say that there is an upward
drift that was not in the figures before; so the re­
ported figures under the new definition are a little
higher for the past than under the old definition.
We have used these new aggregates in speci­
fying the target growth ranges for 1980, as was
reported to the House Banking Committee by
Chairman Volcker a couple of weeks ago. So, we
will be using these in operations as well as in
publications in the period to come. The ranges
that we have adopted this year are a little nar­
rower than they were last year: ranges of 2lh
percentage points rather than 3. And without go­
ing into detail, I would characterize these ranges
by saying that, by and large, the top end is about
what actual performance was during 1979 and the
width of the projected range extends below it.
In other words we expect that monetary
growth in 1980 will be no more, taking the top
end of these ranges, than it was in 1979. The mid­
point of the ranges is less. And, of course, the
low end of the ranges is still less than that.
So, what one should conclude, in looking at
the ranges that we have specified, is that we hope
to moderate the growth in the family of monetary
aggregates somewhat compared with the per­
formance in 1979. We think that policy is consis­
tent with a gradual move toward a less inflation­
ary economy.
We believe that the ranges are consistent with
something like an increase of 8 to 10 percent in



nominal gross national product. The top end of
that range would be less than the increase of
about 11 percent at an annual rate from the
fourth quarter of 1978 to the fourth quarter of
1979. The monetary growth ranges are also con­
sistent with the administration’s economic pro­
jections as contained in the President’s Econom­
ic Report and in the related documentation to the
Congress.
It is important to recognize that we are talking
about a supply constraint on the growth of mon­
ey, and indirectly on the growth of institutional
credit, because institutional credit flows have to
be related to these money definitions. The defini­
tions now encompass almost all the forms of fi­
nancing that an institution could use in order to
finance increases in loans and investments. So,
we are talking about a pretty firm supply con­
straint.
That means that market conditions will be de­
termined by the strength of the demand for mon­
ey and credit. If demand for money and credit is
high, market conditions will be tight and interest
rates will be high. If market demand for money
and credit recedes, market conditions will ease
and interest rates will be lower than they would
otherwise be.
It is the demand side, given the supply, that is
going to determine interest rates and the kinds of
conditions that exist in credit markets. Our initial
experience with the new operating procedures
was very good in the fourth quarter—that is, Oc­
tober through December 1979. The demand for
money moderated sharply, and the figures
showed quite modest expansion in credit during
the fourth quarter of the year.
But in January and February of this year, there
was a shift. The demand for money and credit
suddenly intensified, and we have had large in­
creases in bank credit in January and again in
February.
What it was exactly that brought the change in
the demand for credit, we do not know. It could
have been the intensification in inflationary antic­
ipations that you mentioned. It could have been
the budget, which was not well received in finan­
cial markets. It could have been a change in atti­
tude regarding the probability of recession or the
depth of recession that led to stronger credit de­
mands.
But, in any event, there was an unexpected

Statements to Congress

surge in credit demands. And the result of this,
given an effort to constrain supply, was that the
price of money—interest rates—rose very sharp­
ly. This is what led us to the decision to impose
the set of credit restraints that were announced
last Friday. The purpose of those credit re­
straints is to attempt to deal directly with credit
demand and to hold down, in an artificial man­
ner, if you will, credit demand so that it will more
likely fit the supply constraints that are the fun­
damental issue in monetary policy.
Also, there is the distributional effect that you
mentioned. That is, in a situation in which money
is tight because we are not supplying it fast
enough to meet intensified demand, the tendency
has been that some sectors of the economy are
more deprived of credit than others. And we
would like, to the degree possible in this very
fluid situation, to achieve some distributional
equity. So, distributional equity is the second
objective of the program announced last Friday.
As you might surmise from my comments, it
has become very difficult to predict interest rates
because they reflect changes in inflation, changes
in borrowers’ needs, and unanticipated develop­
ments in the market. So, last October we decided
to change our operating procedures in providing
funds to the market, by emphasizing the achieve­
ment of monetary growth rates—target growth
rates—through reserve provision at the New
York Federal Reserve Trading Desk, and
deemphasizing the setting of any particular
short-term market rate. We had dealt with some­
thing called the “federal funds rate” up until that
time, and we now let that rate vary more than
before.
This did not mean that we were going to have a
constant rate of growth in reserves. Indeed such
growth would be quite inconsistent with stability
in the growth of the aggregates—our real finan­
cial objective in monetary policy—because there
are all kinds of technical changes that occur in
the mix of deposits and the multiplier. There are
many things that make it impossible to stabilize
both the reserve growth or monetary base
growth and the performance of the aggregates,
and our interest is in stabilizing growth rates in
the aggregates.
But we moved to this reserve kind of operation
in which, basically, the Manager of the System
Open Market Account supplies reserves to the



373

market at a pace that is determined—subject to
revision every week—to be consistent with
growth in the aggregates that is within our target
ranges.
It is a fact, however, that banks must legally
hold reserves that are a certain proportion of
their deposits. They would be operating outside
the law if they did not have these legally required
reserves. Therefore, because the Manager may
be providing less reserves than the banks need to
support the deposits they have accepted from the
public, the discount window acts as a safety
valve. The major function of the discount win­
dow is to make it possible for banks to meet their
legal reserve requirements.
Now, we tie a very important string to the ex­
tension of credit through the discount window.
There are a couple of special programs that I am
not referring to here, but for the most part, what
we provide at the window is something called
“ adjustment credit.” We expect the banks to ad­
just their portfolios promptly when they have un­
expected increases in loans or unexpected de­
creases in deposits so that they will not be in debt
to us for very long.
Thus, it is very short-term accommodation
credit, with an expected cleanup by the bank in
its position in quite a short period of time—a
matter of two or three weeks in the case of a big
city bank and perhaps as long as a couple of
months in the case of a small country bank.
Therefore, that string makes the use of the
window remarkably small compared with other
federal government credit sources. We are at al­
most a record level of borrowing at the window
now—a little more than $3 billion. The Federal
Home Loan Bank System lends more than 10
times that and the Farm Credit Administration
lends 20 times that. And so it is not a great deal of
money that we are talking about because of the
string that the Federal Reserve attaches to the
use of this credit.
In that environment when the discount rate is
considered relative to market rates, it is less im­
portant than one might ordinarily expect. It is not
true that the banks will come to us in volume if
the discount rate is below the market rate be­
cause they know they will have to get right out
again.
Also, banks like to keep clean records, so if they
really need to borrow some time in the future

374

Federal Reserve Bulletin □ May 1980

they know they will be able to get this accommo­
dation at the window.
Nevertheless, the recent sharp rise in market
rates, to which you referred, had put market in­
terest rates considerably above the discount rate
of 13 percent that we had posted in mid-Febru­
ary. So, one of the moves made last Friday was
to impose a surcharge of 3 percentage points for
frequent borrowing—that is, borrowing for two
consecutive weeks or more than four weeks in a

quarter—by large banks that should be able to
make their adjustments in the market. Large
banks in this case are defined as banks with de­
posits of $500 million or more.
The surcharge has the effect of fortifying what
we believe already to be a discipline at the win­
dow of making prompt adjustment. It also, in­
cidentally, has the effect, to the extent that banks
get into this surcharge area, of reducing any sub­
sidy in our lending operations to them.
□

Statem ent by Paul A. Volcker, Chairman, Board
o f Governors o f the Federal Reserve System , be­
fo re the Subcom m ittee on International Devel­
opment Institutions and Finance o f the Com­
m ittee on Banking, Finance and Urban Affairs,
U.S. House o f Representatives, April 16, 1980.

national negotiating process. In addition, I am
satisfied that these institutions have performed
well and should continue to play a central role in
the overall program of foreign economic assist­
ance of the United States. From my present van­
tage point, the contribution that IDA and other
institutions make to orderly economic develop­
ment remains critical. Finally, I should point out
that adoption of H.R. 6811 and the related appro­
priations would not result in significant budget
outlays in the near future. Thus, passage of this
bill is not in conflict with the immediate and
pressing responsibility of the Congress and the
administration to put together a tough, anti-inflationary budget for fiscal year 1981.
In my opinion, the multilateral development
institutions deserve continued strong support by
the United States. Since the late 1950s, when the
United States proposed the creation of IDA and
supported the expansion and establishment of
other multilateral development banks, we have
gradually shifted an increasing share of our bud­
get for foreign economic assistance to these insti­
tutions. Their development policy goals are simi­
lar to those of the bilateral U.S. development
assistance program of the Agency for Inter­
national Development (AID). Moreover, a high
degree of compatibility between the bilateral and
multilateral programs remains despite the major
reappraisal and reorientation of development ob­
jectives for our bilateral program that the Con­
gress initiated in the early 1970s. For, as AID be­
gan to restructure its program to emphasize
meeting basic human needs, the development
banks began cautiously to shift the composition
of their lending programs in the same direction.
As senior Treasury and IDA officials have pre­

Mr. Chairman, I appear before your subcommit­
tee today, in response to your request, in a purely
personal capacity to support the provisions of
H.R. 6811, a bill that authorizes U.S. participa­
tion in the sixth replenishment of the World
Bank’s International Development Association
(IDA).
It is, to say the least, highly unusual for any
Federal Reserve official to testify on legislative
requests of this kind. Indeed, since joining the
Federal Reserve Board last year, I have not been
accustomed to speaking in favor of any federal
expenditure program. Obviously, that is not be­
cause all those expenditures are unnecessary or
undesirable, but because neither I nor my col­
leagues at the Federal Reserve want to be in a
position to suggest to the Congress or to the ad­
ministration how federal government expendi­
tures should be allocated.
Nevertheless, I have agreed to make this per­
sonal statement on the IDA replenishment be­
cause of several extenuating circumstances.
First, Mr. Chairman, in another capacity I
worked with you for a number of years in plan­
ning and administering U.S. participation in the
multilateral development institutions. During my
years at Treasury, in negotiating U.S. participa­
tion in IDA and the other related institutions, I
came to appreciate the importance of the United
States in maintaining the integrity of the inter­



Statements to Congress

sented to you in greater detail, there is a great
deal of coordination between these programs,
and they both serve the foreign policy, national
security, and economic interests of the United
States.
There are strong reasons for the United States
to channel a sizable portion of the resources for
development assistance through the international
organizations rather than through our separate
bilateral program. U.S. contributions to the
banks are matched by contributions of resources
from other donor countries. For example, for
each dollar that the United States contributes to
the sixth IDA replenishment, other countries will
contribute approximately three dollars. In the
absence of an ongoing multilateral effort support­
ed by the United States, other donor countries
might contribute significantly less for develop­
ment assistance purposes or divert more of their
economic assistance to smaller, less efficient,
and potentially competitive bilateral assistance
programs. Thus, U.S. contributions to the banks
potentially generate larger and more effective
forms of economic assistance to the developing
countries, without implying a disproportionate
burden on the United States. In addition, the
multilateral banks are normally better able than
bilateral lenders to have effective influence on
important areas of economic policy formation in
the borrowing country. The banks can be espe­
cially effective in this area because they are seen
to be politically independent and objective in
their outlook.
I would also like to suggest to the sub­
committee that budgetary decisions about U.S.
support for the multilateral development banks
need to be made with a longer-range perspective
than most other budgetary decisions that come
before the Congress. As members of this sub­
committee are aware, there are substantial lags
between authorization of replenishments for the
banks and the expenditure of funds to fulfill the
purposes of the authorization.
In the case of IDA, authorization is being
sought for U.S. participation in the sixth replen­
ishment of resources to cover a three-year period
from fiscal year 1981 to fiscal year 1983. Appro­
priations will then be sought on an annual basis
for each of those fiscal years. Approval of the full
authorization and the first year’s appropriation
are needed to “ trigger” the replenishment agree­



375

ment and to bring the initial contributions of oth­
er countries into effect. Approval of each year’s
appropriation is needed to provide commitment
authority for IDA lending and to trigger sub­
sequent installments from other countries. The
actual expenditures of funds, however, will be
delayed for several years, on average, because
funds are made available to the World Bank only
as needed to cover actual project costs. This long
lag for disbursements is dictated by the types of
projects that IDA finances.
Thus, if this legislation is approved and the ap­
propriation for the first installment of our contri­
bution goes forward, IDA will be in a position in
July 1980, when its next fiscal year begins, or
shortly thereafter, to make loan com m itm ents
based on the sixth replenishment of its re­
sources. However, the disbursement of those
funds will be deferred for several years, with the
bulk of the disbursements concentrated in the
mid-1980s and with total disbursements not com­
pleted until about 1990.
One implication of the lag between project
commitments and actual expenditures is that
very little of the resources to be authorized and
appropriated by the Congress for the sixth re­
plenishment of IDA will be spent during the U.S.
fiscal year 1981. It can be estimated, on the basis
of past spending patterns, that actual budgetary
outlays will amount only to about $20 million of
the $1.08 billion to be requested for the IDA ap­
propriation for fiscal year 1981. Thus, as I in­
dicated in my introductory comments, deferral
or reduction of U.S. contributions to the sixth
IDA replenishment would not result in meaning­
ful near-term savings in the federal budget.
The federal budgetary outlays that will occur
in fiscal year 1981 are the result of U.S. financial
commitments to IDA and to other banks that
were made during the mid- and late-1970s. These
outlays definitely have a significant bearing on
the overall budget planning problem for fiscal
year 1981, when the total disbursement of U.S.
contributions through all the multilateral devel­
opment banks is estimated by the administration
to amount to about $950 million. Almost all of
these funds, however, have been fully obligated
by the U.S. government, which has issued ir­
revocable letters of credit to the banks.
Because of the unusual timing problems asso­
ciated with the negotiation and disbursement of

376

Federal Reserve Bulletin □ May 1980

resources for the multilateral development
banks, the Congress needs to make its input to
budget planning for these contributions at an ear­
lier stage than in most other areas. This loss of
flexibility—flexibility that is usually desirable—
seems to me inevitable and justified in an area
that involves the closest kind of coordination and
planning with other contributors and a careful
process of project development and execution.
The Congress may differ with an administration
about the appropriate size of the U.S. foreign as­
sistance program or about the share of that pro­
gram to be channeled through the multilateral
banks. Those differences must be reconciled.
But that process, in the case of replenishments
that need to be negotiated internationally, works
best if an administration is made fully aware of,
and is sensitive to, congressional views before
and during the process of multilateral negotia­
tions. I understand that there have been a num­
ber of advance consultations on the negotiations
for the sixth replenishment of IDA, and I am sure
that officials at Treasury would be open to any
suggestions from the Congress for improvement
of the consultation process.
We are now at a stage at which negotiations
have been completed on the IDA replenishment
agreement for fiscal year 1981-83. The IDA
serves the development needs of the poorest of

the developing countries, where the bilateral for­
eign economic assistance program of the United
States is also focused. My own view is that our
multilateral and bilateral commitments in these
countries promote important strategic and for­
eign policy objectives of the United States. Fail­
ure to proceed in concert with other industrial­
ized countries would inevitably damage the
fabric of international economic cooperation and
undermine economic development. For these
reasons, I feel that the bill to authorize the U.S.
commitments to the sixth replenishment of IDA
deserves a favorable report by the subcommittee
and the full support of the Congress.
In supporting this legislation, I do not, of
course, want to exempt the U.S. contribution to
the international development effort from con­
gressional scrutiny and budgetary priorities. No
program should escape that review, least of all
now. I would simply emphasize that in this area
the planning horizon needs to be long because so
many other countries and institutions are in­
volved and because of the nature of the develop­
ment process. For those reasons, I hope the sub­
committee will take this and other opportunities
to develop and indicate its own views of where
the priorities lie in the years ahead, and to work
closely with the administration in developing
specific objectives for the negotiations to come.

Statem ent by J. Charles P artee, Member, Board
o f Governors o f the Federal Reserve System , be­
fore the Joint Economic Committee, April 16,
1980.

and residential construction activity now seems
likely to decline to relatively low levels for much
or all of the remainder of this year. Most of the
decline, of course, has occurred since last Octo­
ber when the Federal Reserve announced a num­
ber of important policy changes. That package of
measures was designed to give the Federal Re­
serve better control over aggregate flows of mon­
ey and credit, and the further actions taken in
mid-March were intended to reinforce the creditrestraining aspects of that effort. Up until now,
unfortunately, overall credit demands have re­
mained exceedingly strong, reflecting the per­
sistent strength of inflation and widespread infla­
tionary psychology as well as a continuing high
level of aggregate economic activity. With strong
credit demands pressing against limited supplies,
financial markets have tightened substantially,

I am glad to appear on behalf of the Federal Re­
serve Board to discuss the subject of housing and
the economy. This is an appropriate and timely
focus of inquiry. Problems in housing often are
considered in isolation from the rest of the eco­
nomic system. Though that is at times the rele­
vant focus, under current circumstances it seems
to me important that the short-term situation of
housing and housing finance be evaluated in the
light of overall economic activity and national
policy objectives.
Conditions in the mortgage and housing mar­
kets have deteriorated sharply in recent months,



Statements to Congress

interest rates have risen sharply, and housing
starts and home sales have plummeted.
The overriding objective of recent Federal Re­
serve policy actions has been to reduce inflation­
ary pressures in the economy—pressures that
have intensified steadily over the past year. Infla­
tion weakens the value of the dollar at home and
abroad, diverts attention from productive to non­
productive pursuits, and inevitably creates a host
of economic and social distortions, imbalances,
and inequities. Indeed, mortgage and housing
markets have not been free of a pattern of specu­
lative and anticipatory behavior that could
threaten destabilizating consequences over the
longer term if inflation and inflationary ex­
pectations are not restrained. The Board believes
that the long-run benefits to be derived from con­
taining inflation will far outweigh the short-run
costs incurred in housing and other markets.
Inflation has produced serious problems also
for the nonbank thrift institutions and for other
types of investors that concentrate their holdings
in longer-term instruments bearing fixed interest
rates. With the increase in actual and expected
inflation rates, nominal interest rates have risen
apace as lenders have sought to protect the pur­
chasing power of their dollars and borrowers
have been willing to pay higher inflation pre­
miums. Consequently, high-quality loans, made
in the past at the lower interest rates of the time,
have become burdens for institutions that fol­
lowed prudent business practices and provided
the useful community service of maturity inter­
mediation—borrowing short term from savers
and making long-term funds available to borrow­
ers. Savings inflows to these institutions have
slowed markedly, even though the average ef­
fective rate paid for funds has moved sub­
stantially higher, so that the interest and partici­
pation of such institutions in the mortgage
market have been on the decline.
The effects of inflation have not been restricted
to the supply side of the mortgage markets. The
inflationary process clearly has influenced the
behavior of homebuyers and mortgage debtors
also, causing some distortions within this market
and affecting patterns of household savings and
investment. High rates of inflation in con­
junction with the tax system have enhanced the
appeal of homeownership, made rental housing
less attractive to investors, and stimulated the



377

conversion of rental projects to condominium
ownership status—creating hardships for some
tenants. The strong demands for homes have
pulled house prices up at a pace that, until re­
cently, was well above the increase in broadbased price indexes, making it increasingly diffi­
cult for new entrants to achieve homeownership.
And since many homeowners apparently have
viewed unrealized capital gains as an important
supplement to their wealth, they have been in­
clined to consume larger proportions of dis­
posable personal income, incur larger debts, and
accept less liquid balance-sheet positions.
The demand for home mortgage credit re­
mained historically strong until late last year, de­
spite the fact that mortgage interest rates had ris­
en to postwar highs. Prospective capital gains on
homes and expectations of rising nominal income
encouraged buyers to commit unusually large
shares of their current income to mortgage pay­
ments. Since last October, however, mortgage
credit demand has weakened as mortgage rates
have risen sharply further and the availability of
credit has become constrained. Indeed, many
prospective buyers have been unable to meet
more stringent lender standards concerning ac­
ceptable ratios of mortgage payments to borrow­
er income.
The effects of general monetary restraint cus­
tomarily fall quite heavily on the mortgage and
housing markets, and the Federal Reserve Board
has consistently supported and recommended
measures that would spread the burden of credit
restraint more evenly throughout the economy.
For example, it makes good sense to remove arti­
ficial interest rate constraints on the flow of mort­
gage funds and to free local depositary institu­
tions gradually from the interest rate ceilings that
prevent them from competing successfully in
markets for savings. Institutional adjustments
designed to permit mortgage borrowers to com­
pete with other participants more effectively for
funds in the long-term debt markets also seem
highly desirable. Mortgage passthrough secu­
rities have been a particularly important in­
novation, providing a way for homebuyers in­
directly to raise mortgage funds on reasonably
favorable terms in the national capital markets.
Local lenders also have obtained funding from
the impersonal national markets for large certifi­
cates of deposit and commercial paper far more

378

Federal Reserve Bulletin □ May 1980

than before, while continuing their active use of
traditional nondeposit sources—primarily Feder­
al Home Loan Bank advances and sales of mort­
gages in the secondary market to the Federal Na­
tional Mortgage Association and others.
The nonbank thrift institutions, of course, can­
not be insulated from the effects of rising market
interest rates. Earnings on thrift portfolios have
not risen in line with market rates because of the
preponderance of long-term fixed-rate assets ac­
quired in past periods. Recent experience has
clearly demonstrated the need for more variable
yields on assets held. If the thrift institutions are
to continue their emphasis on mortgage financ­
ing, the attribute of rate flexibility will be re­
quired in the mortgage instrument as well. The
Federal Reserve has long supported the ex­
panded use of variable-rate mortgages, with ap­
propriate consumer safeguards, and has en­
dorsed the Federal Home Loan Bank Board’s
authorization of renegotiable-rate or “rollover”
mortgages for use by the savings and loans. The
need for these types of mortgage instruments is
even more pressing now that the Congress has
legislated a phaseout of deposit rate ceilings.
Meanwhile, we at the Board are acutely aware
of the recent drying up in mortgage money. In
designing the special credit restraint program an­
nounced March 14, banks were asked to give pri­
ority attention to maintaining a reasonable avail­
ability of funds to small businesses, such as local
builders, and to serving the liquidity needs of
their thrift institution customers. The special de­
posit requirements placed on increases in con­
sumer credit specifically exclude from coverage
the credit that is extended for the purchase or
improvement of homes. Finally, the special de­
posit requirements imposed on any further ex­
pansion in the assets of money market mutual
funds should help limit the massive recent move­
ment of savings toward the central money mar­
ket, thus leaving more funds available in local
markets to help meet local credit demands, in­
cluding those associated with housing.
Nevertheless, with mortgage interest rates at
their current extraordinary level, it seems clear




that many prospective borrowers will defer home
purchases and remain in their present accommo­
dations until conditions become more favorable.
Mortgage lenders and home builders, corre­
spondingly, will experience considerably re­
duced levels of activity. This situation is likely to
be relatively short lived, however, and it is en­
couraging to note that these industries have often
before demonstrated their ability to snap back af­
ter periods of tight credit.
The Congress may wish, of course, to consider
special programs to aid housing through this cur­
rent difficult period. In any such consideration,
we would urge that the benefits expected from
specific measures be carefully weighed against
the likely costs. The types of programs used in
the last housing downswing to provide mortgage
credit to homebuyers at below-market interest
rates undoubtedly would provide some support
for housing activity in the short run. On the other
hand, federal borrowing to finance these pro­
grams would tend to put further upward pressure
on market interest rates and could thereby in­
tensify the problems being experienced by the
thrift institutions. Use of special subsidy pro­
grams, moreover, would add to budgetary and/or
federal credit program outlays and would logical­
ly call for offsetting cutbacks in other areas if the
discipline of tight federal expenditure constraints
as part of the inflation fight is to be maintained.
In any event, short-run solutions designed to
aid the mortgage and housing markets will not go
to the core of the problem facing these and other
sectors of the economy. In order to obtain lasting
improvement, the inflationary process must be
halted. As inflation abates and inflationary ex­
pectations dissipate, market interest rates will re­
cede and pressures on the depositary institutions
will ease. The Federal Reserve role in assisting
this process must be to restrain growth in money
and credit to rates consistent with the longer-run
needs of the economy. Our success in holding to
this course, I believe, will constitute the best
hope for restoration of stable, viable housing and
residential mortgage markets that will serve the
growing needs of our population.
□

Statements to Congress

Statem ent by Em m ett J. R ice, M em ber, Board o f
Governors o f the Federal R eserve System , be­
fo re the Subcom m ittee on Financial Institutions
Supervision, Regulation and Insurance o f the
Committee on Banking, Finance and Urban A f­
fairs, U.S. H ouse o f Representatives, April 16,
1980 .

The Board appreciates having this opportunity to
present its views about the Home Mortgage Dis­
closure Act. In considering the act’s future, we
should ask ourselves at least three basic ques­
tions:
• Has the information provided under the act
been useful?
• How much does providing the information
cost?
• If the information has been useful for certain
purposes, how can the reporting requirements be
modified to further those purposes in the most
cost-effective way?
The original purpose of the act was to provide
local citizens and public officials with informa­
tion about the home purchase and home im­
provement lending patterns of depositary institu­
tions located in their communities. Armed with
this information, citizens and public officials
could determine, as Representative St Germain
stated in October 1975 during floor debate on the
legislation, “whether or not [they] should contin­
ue putting [their] funds into [a particular] institu­
tion, or whether [they] should go to an institution
that is in fact serving the area. It is moral per­
suasion.”
Two years later, however, the Congress de­
cided that more coordinated efforts were neces­
sary in order to increase the viability of our ur­
ban communities. Consequently, it adopted the
Community Reinvestment Act. With the passage
of CRA, the primary vehicle for monitoring “to
determine whether depositary institutions are fullfilling their obligations to serve the housing needs
of the communities and neighborhoods in which
they are located” shifted from the public to the
federal financial regulatory agencies. (Incidental­
ly, the focus also shifted from narrower housing
needs to broader credit needs.)
While local citizens and officials used home
loan disclosure information before CRA and
perhaps use it even more now, that use is still
small in comparison with the number of dis­



379

closure reports prepared each year. The pre­
dominant use of the information is by the finan­
cial regulatory agencies, which analyze it to help
monitor lending performance under CRA and to
help detect possible ethnic or racial discrimina­
tion in violation of the Equal Credit Opportunity
and Fair Housing Acts. Thus, the answer to the
first question about the utility of the information
is that it provides the principal quantifiable mea­
sure by which to gauge the performance of de­
positary institutions located in urban areas in
helping to meet housing-related community cred­
it needs.
Even if home loan disclosure information is
useful to the agencies, however, there still is the
question of cost. In a study jointly sponsored by
the Federal Deposit Insurance Corporation
(FDIC) and the Federal Home Loan Bank Board
(FHLBB), the 1977 cost of reporting the informa­
tion was estimated to be about $1.50 per loan on
average or approximately $6 million for all loans
subject to disclosure. (That figure should be con­
sidered only a rough estimate because of the dif­
ficulty of determining the number, as opposed to
the amount, of covered home purchase and home
improvement loans made nationwide in any giv­
en year.)
While the per-loan cost of reporting may ap­
pear small, the overall cost of compliance is not
an insignificant burden on depositary institu­
tions, particularly smaller-sized ones. As one
would expect, the cost per loan rises appre­
ciably—threefold and more—as the number of
loans to be reported declines. Consequently, if
reporting is continued, efforts should be made to
reduce the cost, especially for institutions mak­
ing fewer than 200 loans per year (the FDICFHLBB study shows a significant per-loan cost
escalation below 200 loans).
Since home mortgage disclosure information is
useful for helping to monitor CRA performance
and for enforcing various civil rights laws, the is­
sue becomes how the reporting requirements
could be modified to support those uses in the
most cost-effective way. The Board believes that
the essential usefulness of the information could
be preserved, while reducing the costs for report­
ing institutions, if three steps were taken.
First, instead of exempting from the act’s dis­
closure requirements a depositary institution
with assets of $10 million or less, the Board rec­

380

Federal Reserve Bulletin □ May 1980

ommends that an institution be exempted if it has
a home purchase and improvement loan portfolio
of $10 million or less, unless it makes more than
200 home purchase loans in a calendar year. The
200-loan criterion would be applied only if an in­
stitution had a home loan portfolio of $10 million
or less. It is designed to increase coverage by re­
quiring an institution to report even if it had a
relatively small portfolio—$10 million or less—if
it made a reasonably significant number of
loans—more than 200 in a calendar year. Thus,
there would be two classes of institutions that
would have to report: (1) those with home loan
portfolios of more than $10 million, and (2) those
that held a smaller portfolio but made more than
200 home purchase loans each year.
Since the act requires disclosure of home loan
information, the Board believes that the exemp­
tion level should be measured in the same terms.
Describing what has to be reported in terms of
home loans, while gauging who must report in
terms of assets, mixes apples and oranges. That
is particularly true for commercial banks, which
typically have a diversity of assets—commercial,
consumer, and home mortgage loans.
The Board does not believe that the supple­
mentary exemption test of 200 home purchase
loans per year would significantly discourage an
institution from making more than 200 of those
loans in a year. In our view, factors other than
the act’s disclosure requirements would have a
much more material influence on an institution’s
loan policies—factors such as the amount of
lendable funds, home lending experience, loan
demand, interest rates, and general economic
conditions.
Based upon 1978 figures, about 5,160 com­
mercial banks and 2,350 savings and loan associ­
ations were required to report under the act.
Those institutions held more than 99 percent of
the amount of outstanding home purchase and
improvement loans held by all banks and savings
and loans located in standard metropolitan statis­
tical areas (SMSAs). If the exemption measure
were changed along the lines that the Board sug­
gests, about 1,400 commercial banks and 2,250
savings and loan associations would be required
to report based upon 1978 portfolio size.
Although that change would reduce the num­
ber of reporting banks about 73 percent, it would
reduce home loan portfolio coverage at com­



mercial batiks only 13 percentage points—from
99 to 86 percent. If savings and loan associations
were included, the percentage of portfolio hold­
ings of banks and savings and loans would drop
only 3 points—from 99 to 96 percent. We firmly
believe that modified reporting requirements that
would apply to those banks and thrift institutions
holding 96 percent of the amount of home loans
held by all banks and savings and loans located in
SMSAs would represent substantially complete
coverage, yet would permit a significant reduc­
tion in compliance costs.
Second, the Board recommends that census
tract disclosure be required only for loans relat­
ing to homes in urban SMSA counties—those
with a population of more than 50,000 persons—
rather than for all SMSA home loans. Loans not
reported by census tract would be reported by
county within the SMSA. This change would not
affect whether an institution would have to pre­
pare a report (that would be governed by portfo­
lio size or the number of home purchase loans
made); it would merely reduce the reporting bur­
den for institutions already subject to the act’s
disclosure requirements.
Mention of the term “ standard metropolitan
statistical area” brings to mind cities like Bos­
ton, Chicago, Dallas, Denver, Los Angeles, and
New York—metropolitan areas with populations
greater than one million persons. Although an
SMSA, by definition, must have a population of
at least 50,000 persons, many SMSAs, particu­
larly in areas of rapid population growth, encom­
pass counties that are predominantly rural and
that have much smaller populations.
To illustrate the point, consider the Atlanta
SMSA. It currently is composed of fifteen coun­
ties, but the two central counties have two-thirds
of the population. Based upon 1970 census fig­
ures, none of the outer ten counties had a popu­
lation of more than 31,000 people, and two coun­
ties had as few as 11,000 persons. Moreover,
those ten outer counties are predominantly rural
in character. The Atlanta situation is not unique.
At least 36 of the 288 SMSAs have two or more
counties with fewer than 50,000 people (based
upon the 1970 Census), and many more have at
least one county in that category.
Although CRA has no geographic limits to its
coverage, the major thrust behind its passage, as
stated in the conference committee report, was

Statements to Congress

“to increase the viability of our urban commu­
nities.” As noted, however, many of the coun­
ties in the 288 currently designated SMSAs are
not urban in character. Generally, fewer loans
are made in those nonurban counties, making in­
terpretation of the data more tenuous. Moreover,
the critical comparisons between lending pat­
terns and information on race, national origin,
family income, and housing stock—comparisons
that are at the heart of CRA monitoring and civil
rights enforcement—are more difficult to per­
form for nonurban areas and in some instances
would be meaningless.
Consequently, requiring disclosure by census
tract of loans relating to homes in nonurban
counties does relatively little to advance CRA
monitoring or civil rights enforcement. There­
fore, the Board believes that, to maximize utility
and efficiency, census tract reporting should be
refocused on urban areas within SMSAs where
the information has been used in the past and
where it would be most helpful in the future.
Continued reporting for the nonurban areas of an
SMSA on a county basis would still permit com­
parisons of the volume of urban versus suburban
lending patterns.
The Board’s third major recommendation is
that the reporting categories be simplified. The
current distinction between conventional and
government-insured or government-guaranteed
loans should be eliminated. Whereas such a
breakdown might be interesting information, it
has not been critical in any CRA review that
the Board has conducted, and it contributes to
reporting errors. The same is true of the require­
ment that home loans to borrowers who do not in­
tend to reside in the home be disclosed sepa­
rately—theoretically interesting information, but
one that has not been used, either by the public
or by the agencies. The consequences of these
proposed changes are illustrated in the two ex­
hibits appended to my testimony.1
Representative St Germain’s proposed bill and
two Senate bills (S. 2290 and S. 2291) would stan­
dardize the reporting period by substituting cal­
endar year disclosures for the current fiscal year
disclosures. In our view, the change makes sense

381

and would not increase compliance costs. The
three bills also would require a nationwide, stan­
dardized reporting format. The Board has no ob­
jection to that requirement, but would only point
out that it might preempt to some degree the
home loan disclosure requirements of five
states—California, Connecticut, Massachusetts,
New Jersey, and New York—all of which have
adapted those requirements to their own per­
ceived needs.
Another proposed requirement in each of the
bills is that the financial regulatory agencies, in
consultation with the Department of Housing
and Urban Development, establish central col­
lection centers—for example, at public libraries
or local government offices—for the disclosure
reports. While centralized collection and mainte­
nance of the reports might be helpful to the pub­
lic, the Board is concerned about the potential
costs and logistical problems of specifying con­
venient repositories for each SMSA. The Comp­
troller, FDIC, FHLBB, and Federal Reserve
System have banks, branches, or regional offices
in only 40 of the 288 SMSAs. Therefore, post of­
fices and libraries would be the most likely can­
didates for collection centers, but presumably
both the Postal Service and local library authori­
ties would object to having the burden placed on
them; and, in the case of libraries, the federal
government has no authority to require them to
serve as collection centers. On the other hand,
renting space and paying for minimum mainte­
nance of the records could be more expensive
than the cost of reporting. Therefore, the Board
does not support this proposal.
A less expensive, less burdensome, and even
more helpful arrangement, however, would be to
require each depositary institution that prepares
a report to mail a copy to any person requesting
it upon prepayment of copying and postage
charges. Currently, institutions that receive
requests supply copies of their reports free of
charge or for the cost of copying, and many may
already be mailing copies to those who ask.
Therefore, we do not believe that our suggestion
would be particularly burdensome, but it cer­
tainly would be less expensive than collecting
and maintaining reports and providing copying
services at a central facility.
1. The attachments to this statement are available on
The bill proposed by Representative St Ger­
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
main also would mandate a study of the useful­



382

Federal Reserve Bulletin □ May 1980

ness and feasibility of requiring disclosure of
small business loans. While the Board has not
taken a position on the merits of requiring dis­
closure of small business loans, it would be will­
ing to study the issue in conjunction with the oth­
er financial supervisory agencies and the Small
Business Administration.
The final issue is whether, for each of the
288 SMS As, the federal financial supervisory
agencies should aggregate each year the census
tract loan information reported under the Home
Mortgage Disclosure Act as would be required by
S. 2291. The bill also would mandate that the ag­
gregate data be further categorized according to
age of the housing and the income and racial or
ethnic characteristics of the borrowers.
The Board opposes those proposals because it
believes that the cost of assembling the informa­
tion outweighs the value of any benefit. Home
loan information currently is prepared on an indi­
vidual institution basis, and that is the form in
which it is principally used. Whether measuring
home lending performance under CRA or search­
ing for possibly illegal discrimination under the
Equal Credit Opportunity and Fair Housing
Acts, both the financial supervisory agencies and
community groups are interested in knowing
about individual lenders, not about all depositary
institutions within an SMSA. Even when com­
paring one institution’s efforts with another’s per­
formance, the comparison must be between insti­
tutions of similar type and size to be meaningful.
Thus, having an overall view of SMSA lending
patterns would not be particularly helpful, in our
view, for either CRA evaluation or civil rights
enforcement.

On the expense side, the FDIC-FHLBB study
estimates that compiling the information would
cost about $1 million a year and that it would
take a year to complete. The Board’s Data Pro­
cessing Division also has considered the costs in­
volved and generally concurs with the FDICFHLBB estimate. We believe that spending
about $1 million a year to process year-old infor­
mation is not the best use of public funds. If indi­
vidual states or localities find aggregated lending
information valuable for planning purposes, they
can compile the information more quickly and
perhaps in a more useful format than can be done
in Washington.
That brings us to the ultimate question regard­
ing the Home Mortgage Disclosure Act: should it
be renewed? On balance, the Board believes that
the reported information, if confined to truly ur­
ban areas, is useful for analysis of community
reinvestment and civil rights issues. We also be­
lieve that the cost of reporting, if reduced along
the lines suggested, would be reasonable in rela­
tion to the value of the information gained. Con­
sequently, the Board would support more limited
and finely focused reporting requirements.
The Board also recommends that a sunset pro­
vision-sim ilar to the one that has prompted this
review—be attached to any new reporting re­
quirements. We suggest that three years would
be an appropriate extension period because by
then we will have developed sufficient experi­
ence with CRA evaluations and with new civil
rights enforcement systems to determine how
useful the proposed home loan disclosures would
be for those purposes and whether further
changes would be appropriate.
□

Statem ent by Frederick H. Schultz , Vice Chair­
m an, Board o f Governors o f the Federal Reserve
System , before the Subcomm ittee on General
Oversight and Minority Enterprise o f the Com­
m ittee on Small Business, U.S. House o f Repre­
sentatives, April 17, 1980.

There is wide agreement in this country that
inflation is our most serious economic problem.
It is a problem that we have lived with for more
than a decade. Even so, the difficulties encoun­
tered in adjusting to an inflationary environment,
and the costs associated with these adjustments,
make it clear that inflation is not a phenomenon
that people can learn to live with comfortably.
Inflation breeds economic instability, espe­
cially when it accelerates unexpectedly, as in re­
cent years. In such an environment, the inter­

I appreciate the opportunity to appear before you
to discuss the difficulties that inflation poses for
our economy and, in particular, for small busi­
nesses.



Statements to Congress

pretation of current market developments and
planning and forecasting of future events is par­
ticularly difficult. For businesses, earning a rea­
sonable return on investment hinges on an ability
to spot emerging trends in product demand, to
utilize the most efficient method of meeting that
demand, and to price products appropriately. In­
flation alters spending and saving patterns, re­
quiring businesses to adapt constantly to a vary­
ing economic environment. At the same time, the
general rise in prices can obscure changes in
price relationships and underlying shifts in sup­
ply and demand that they signal.
Inflation impairs the ability of businesses to
plan because future income flows are particularly
hard to project when prices are being adjusted
upward frequently. A major plant expansion, for
example, would not be undertaken without some
assurance that it would earn an adequate return
over its lifetime. This calculation depends on
predictions about the cost of the plant as well as
the labor and materials used in the production
process and the price and volume of its output.
In an inflation these projections have a greater
chance of being wrong. As a result, profits tend
to be more variable, increasing the risks in any
capital venture and raising the rate of return that
investors will require to finance it. For this rea­
son, some investments that might have been un­
dertaken in a stable price environment would not
be attractive in an environment of inflation.
Indeed, even the measurement of income
flows from capital investment is a difficult task in
an inflationary environment. Under traditional
accounting techniques, corporations value the
materials and physical capital used in production
at historical prices, which tend to fall increas­
ingly below current costs of production during
rapid inflation. The effect of this tendency is to
enlarge the reported profits of corporations and
also the tax liabilities of these firms. The increase
in profits, however, reflects capital gains on in­
ventories and fixed assets rather than income
generated from the operations of the firm. These
capital gains must be reinvested by the firm if it
wishes to maintain its productive capacity. The
increased tax burdens associated with these
gains, however, tend to reduce internal funds
available to corporations.
Many of the problems associated with inflation
seem especially acute for small businesses. Sub­



383

ject as they are to competitive forces, small busi­
nesses have little control over many of the fac­
tors affecting their profitability. As purchasers,
they may lack the influence to make their sup­
pliers absorb a portion of cost increases; as sell­
ers, they may be less able than large businesses
to pass through to consumers cost increases as
they occur. Moreover, because of their depen­
dence on outside suppliers, small businesses may
have trouble anticipating cost increases. This can
be especially troublesome when a business must
sell products or services at prices contracted for
several months in advance.
Dependence on a single or limited line of prod­
ucts increases a small firm’s vulnerability to un­
expected changes in product demand or produc­
tion costs. Its size often precludes the flexibility
to alter production or sales practices quickly in
response to rapid changes in underlying supply
and demand conditions. And it is less able to ab­
sorb losses that result from a bad guess or a pur­
chase or contract that turns out to be unprof­
itable.
The financing needs of businesses are in­
creased during an inflation as the dollar volume
of transactions rises along with the price level.
Moreover, the nominal cost of financing will rise
as interest rates increase to compensate lenders
for the declining value of the dollars they will be
repaid. Small businesses can be especially af­
fected by these developments. Typically, they
rely heavily on short-term funds, and thus their
financing costs tend to escalate rapidly as infla­
tion boosts interest rates. Rising interest charges
may be particularly difficult to pass on in the
price of output if competitors are less dependent
on short-term credit. Also, fluctuations in rates
add an additional element of uncertainty to the
planning process. We have heard from many
small businesses over the last few years that in­
flation-enlarged interest expense has squeezed
profit margins and deterred expansion. More­
over, most small businesses cannot borrow di­
rectly in credit markets, and thus they are espe­
cially vulnerable to reduced credit availability at
banks and other lenders on which they must rely.
I have touched upon only a few of the prob­
lems that inflation can cause for small businesses
and others. They serve, however, to underscore
the importance of a return to price stability. It is
toward this goal that the Federal Reserve’s re­

384

Federal Reserve Bulletin □ May 1980

cent actions have been directed. Last October,
the Federal Reserve took steps to slow the
growth of money and credit and to improve its
ability to control future expansion of these vari­
ables. In February we announced to the Con­
gress target ranges for the monetary aggregates
in 1980 designed to produce an appreciable slow­
ing of money growth and bank credit consistent
with a move toward a noninflationary economy.
In the near term these actions, taken against a
backdrop of strong credit demands, have raised
the cost and reduced the availability of credit for
all borrowers. Because such restraint works ini­
tially through the banking system, it may be hav­
ing a disproportionate impact on small business­
es and others that rely primarily on banks for
funds.
Our March 14 initiatives were designed to
spread the effects of credit stringency more equi­
tably, as well as to reinforce our earlier actions.
As part of the special credit restraint program,
banks and finance companies are encouraged to
“ meet the basic needs of established customers
for normal operations, particularly smaller busi­
ness, farmers” and others “ with limited alterna­
tive sources of funds.” Moreover, the Board ex­
pects that in setting interest rates and other
lending terms banks and finance companies will,
when possible, take account of the special needs
of these borrowers. At the same time, institu­

tions are asked to avoid extensions of credit for
speculative or nonproductive purposes or for
purposes that may be financed from other
sources. We are requiring reports from lenders
so that we may monitor their efforts to meet our
goals. Other parts of the March 14 program work
toward assuring an adequate flow of credit to
small businesses by discouraging certain types of
consumer loans and by reducing the incentive for
depositors to move their funds from banks and
from thrift institutions into money market mutual
funds.
There should be no illusions about this pro­
gram, however. It cannot be used to insulate
some classes of bank customers from the impact
of tight money. The program must be viewed in
the context of the Board’s and the nation’s over­
riding goal of reducing inflation. I might note that
a greater degree of fiscal discipline would speed
the return to more stable price behavior. More­
over, a reduction in federal borrowing would re­
lieve some of the pressures on interest rates and
free credit for use in the private sector.
The process of breaking the grip of inflation on
our economy will not be a painless one. None­
theless, the effects of inflation are so serious for
small businesses and others that we must per­
severe on our current course. Delay will only in­
crease the severity of inflation and the costs of
eventually bringing it under control.
□

Statem ent by N ancy H. Teeters, Board o f Gover­
nors o f the Federal Reserve System , before the
Subcomm ittee on Consumer Affairs o f the Com­
mittee on Banking, Finance and Urban Affairs,
U.S. House o f R epresentatives, April 23, 1980.

sumer credit restraint program for combating in­
flation, encouraging merchants to offer their cus­
tomers real incentives for paying in cash is a
desirable goal. However, we believe this legisla­
tion is desirable also in more general terms. For
example, to the extent that merchants are suc­
cessful in persuading their customers to pay cash
for smaller purchases, an increase in the overall
efficiency of credit-card processing operations
may result.
As you know, the Truth in Lending Act cur­
rently establishes special rules for cash dis­
counts. If the discount is 5 percent or less, and if
it is made available to all customers, then the dis­
count will not be considered a finance charge un­
der either federal or state law. The Board has im­
plemented these provisions in Regulation Z.

I am pleased to be here today to discuss H.R.
6928, the Cash Discount Act, and H.R. 7038, the
Fair Credit Practices Act. I will first talk about
the Cash Discount Act, which the Board sup­
ports.
The Cash Discount Act would amend the
Truth in Lending Act and permit merchants to
offer unlimited discounts to encourage their cus­
tomers to pay with cash rather than with a credit
card. The Board believes that the bill is both
timely and beneficial. In view of the ongoing con­



S tatem ents to Congress

The bill would make two changes in existing
law, in addition to removing the 5 percent limit
on cash discounts. I would like to address each.
First, the bill would eliminate the Board’s defini­
tion of the “ regular price” of merchandise con­
tained in Regulation Z. Since the Truth in Lend­
ing Act specifically defines both a “ discount”
and a “ surcharge” by reference to a regular
price, the Board believed that it was necessary to
make clear what that intermediate, benchmark
price would be. For example, if the tagged price
of a coat is $100, but a cash customer is only
asked to pay $90 for the coat, is the $10 dif­
ference a discount or a surcharge? The answer
would depend on what the undefined regular
price of the coat was considered to be. In 1977
the Board considered this problem. Among the
suggested ways of defining the regular price was
“ the price a merchant normally expects to re­
ceive without taking into consideration the meth­
od of payment.” The Board decided that such
suggestions were not the best course to follow
for two reasons. First, the cash discount provi­
sions were meant to encourage , not mandate, a
two-tier pricing program, and thus the simplest
and most straightforward approach was thought
to be desirable.
Second, in view of the fact that surcharges are
illegal, merchants may be reluctant to offer a dual
pricing system without specific assurance of its
lawfulness from either the Congress or the
Board. Under H.R. 6928, neither the Board nor
its staff would be able to provide such assurance,
because section 3 of the bill would remove the
Board’s implementing and interpretive authority
on cash discounts. Consequently, the Board urg­
es the committee to consider adding a specific
definition of regular price to the bill.
The bill would also eliminate current require­
ments that a discount must be offered to all pro­
spective customers and that its availability must
be clearly and conspicuously disclosed. Thus, it
would be possible for merchants to make discre­
tionary decisions about offering a discount on a
customer-by-customer basis. For example, dis­
counts might be made available only to persons
who proffer a credit card. The Board is con­
cerned about the fair and nondiscriminatory
treatment of all cash customers and opposes the
removal of the requirement to display promi­
nently the availability to all of discounts for cash.



385

Next I would like to talk about H.R. 7038, the
Fair Credit Practices Act. That bill would pro­
hibit creditors from imposing certain adverse
changes on the account terms of outstanding bal­
ances in open-end consumer credit accounts. It
would also require creditors to give 60 days ad­
vance notice of any change in account terms.
The Board believes that the approach taken by
the Fair Credit Practices Act, while intending to
benefit consumers, may even have a greater ad­
verse effect on consumers than the extreme ap­
proach of permitting all changes in account terms
to apply to existing balances. The Board’s deci­
sion, announced on April 2, is an intermediate
approach based on careful consideration.
Before implementing its change in accountterm requirements under the Credit Control
Act, the Board was informed that many creditors
could not apply changes only to new extensions
of credit and that many others could do so only at
great expense and with a long lead time. To the
extent that creditors find making changes diffi­
cult or impossible, they will seek other ways of
responding to their higher costs of doing busi­
ness. The strategies that they devise may be
more onerous to consumers than having a change
in terms apply to outstanding account balances.
For example, creditors may simply terminate ac­
counts, or deny all applications for new ac­
counts. The classes of people likely to be most
affected by such severe action would probably be
those whom the Equal Credit Opportunity Act
was designed to protect—minorities, women,
and the elderly. Creditors might also step up col­
lection activities and cancel cards for minor de­
linquencies. This action would fall most heavily
on debtors who are showing signs of distress, and
therefore it would seem to have undesirable so­
cial consequences.
The Board believes it is vitally important to
keep in perspective the effect of the types of
changes in account terms planned by most credi­
tors. The Board’s staff has conducted an informal
survey of the kinds of changes that creditors have
been announcing since the credit restraint pro­
gram went into effect. Whether because of mar­
ket forces or overriding long-term goals such as
maintaining a customer base, these changes
seem tempered and even constructive. Attached
is a summary of media reports of creditors’ reac­
tion to the credit restraint program. Here are

386

Federal Reserve Bulletin □ May 1980

some examples drawn from this review. First
Jersey National Corporation increased its mini­
mum payment from V36th to V3oth of the out­
standing balance. On a balance of $500, this
would be an increase in payment of $3 per
month. Several banks intend to impose charges
for the card they issue ranging from $10 to $20
per year.
Sears, Roebuck and Company announced an
increase in its smallest minimum payment from
$8 to $10. Persons with an outstanding balance of
up to $500 would have their monthly payment in­
creased $2, and persons owing more than $500
would have their payment increased from V2sth
of the outstanding balance to !/23rd. This means
that a person with an outstanding balance of
$1,000, presumably a solid credit risk, would
have his or her payment increased from $40 to
$44 a month.
Many states are increasing their allowable rate
of finance charge on open-end consumer credit.

It might be instructive to run through what an
increase in rate means to the budget of a con­
sumer. For example, an increase from 12 to 15
percent, annual percentage rate (APR), means a
monthly increase of $1 to a person with a $500
outstanding balance. An increase from 18 to 22
APR means an increase in monthly finance
charges of $1.67 to a person with a $500 balance.
It should be kept in mind, of course, that under
the Board’s regulation, changes affecting existing
balances may only occur if the consumer affirm­
atively agrees to the change, either in writing or
by continued use of the account.
In summary, the Board considered the ap­
proach taken in H.R. 7038 and concluded that,
because of current market conditions with the
credit restraint program in effect, both con­
sumers and creditors would be seriously dis­
served by that approach. The Board strongly rec­
ommends that this Committee not approve the
Fair Credit Practices Act.
□

Statem ent by N ancy H. Teeters, M em ber, Board
o f Governors o f the Federal Reserve S ystem , be­
fore the Com m ittee on Banking, Housing, and
Urban Affairs, U.S. Senate, April 30, 1980.

believes that, as drafted, the bill unnecessarily
duplicates many existing provisions of the Equal
Credit Opportunity Act and Regulation B, and
the Fair Credit Reporting Act. We think that the
bill, in failing to take cognizance of our experi­
ence with present consumer credit statutes and
regulations, may very well lead to the same
tedious niggling that we have endured under
Truth in Lending.
The Board requested its staff to focus on title
II and to prepare a draft that attempts to elimi­
nate the duplication and excessive detail that we
now perceive in that title. The result of their ef­
fort and a commentary comparing their draft
with title II accompany the written text of my
testimony.1 The draft is not endorsed by the
Board; rather, it is offered merely as an alterna­
tive approach that attempts to weave the privacy
protections of this legislation into existing con­
sumer protection statutes and regulations.
First, the Board strongly recommends against
the penalty structure contained in title II. At

Mr. Chairman, I am pleased to appear before
your subcommittee this morning to testify on the
proposed privacy legislation. I regret, however,
that the Board must oppose S. 1928 in its present
form.
The Board believes the following:
• Persons are entitled to an expectation of
confidentiality in their personal financial records,
which should not be violated.
• Persons should have access to their records
and some control over disclosure of those rec­
ords to third persons.
• Personal financial records should be ac­
curate, and when they contain errors they should
be corrected.
• Information-handling practices should not
be kept secret.
The Board, however, regards the general ap­
proach taken by S. 1928, particularly titles II
and IV, as inviting needlessly complex, expen­
sive, and burdensome regulation. The Board



1.
The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.

Statem ents to Congress

present, the penalty structure is similar to that of
Truth in Lending in that it contains potentially
massive civil liabilities for what might be consid­
ered technical violations. The Board’s experi­
ence with Truth in Lending indicates that this ap­
proach to penalties leads larger financial
institutions to seek increased specificity from the
Board and its staff on how to dot every “ i” and
cross every “ t” in their operations. This, in turn,
creates so much detail in the regulatory matrix
that smaller institutions throw up their arms in
frustration—unable to cope with the complexity.
It is the Board’s view that, to a great extent, the
high degree of noncompliance with Truth in
Lending is the result of this “ information over­
load” on the smaller creditors, which, in part,
has its source in the penalty structure. Conse­
quently, the Board recommends a penalty
structure similar to that of the Equal Credit Op­
portunity Act. That act provides similar maxi­
mum exposures; but instead of statutory minimums, it provides for actual and punitive
damages. The Board believes that courts can be
relied on to award punitive damages when they
are called for and to deal responsibly with techni­
cal, inadvertent violations.
If the Congress accepts an approach of actual
and punitive damages, the Board would recom­
mend either no rulewriting or limited rulewriting
as contained in the present bill. The present Fair
Credit Reporting Act, which, like the present
bill, deals with matters of information handling
and dispute resolution, contains no rulewriting
authority. That act has, we believe, substan­
tially achieved its purposes without creating an
enormous regulatory burden.
Title II, which addresses information collec­
tion and dissemination practices of creditors,
relies heavily on the disclosure of those practices
to regulate the marketplace. Mr. Chairman, as
you recently pointed out in the hearings on the
Rule of 78s, we should not expect competition to
regulate subsidiary matters such as prepayment
refunds. The same may be said of informationhandling practices.
The notices that creditors are required to pro­
vide by title II will, in all likelihood, be uniform
because the Board is given the authority to draft
model notices and will attempt in drafting to ad­
dress as many creditor practices as possible. Be­
cause the use of the model notice will insulate



387

creditors from civil liability, most creditors will
use a version of the notice modified to describe
their particular practices. The Board believes
that the information collection and disclosure
practices of various categories of creditors are,
for the most part, identical, and therefore the no­
tices provided by any particular type of creditor
will probably be indistinguishable. We do not see
the benefit for consumers in the receipt of mul­
tiple, identical notices.
Indeed, the Board’s experience with Truth in
Lending indicates that few consumers read de­
tailed disclosure statements. Despite the fact that
consumers have received their billing rights no­
tice twice a year for several years, 50 percent of
the cardholders surveyed in the 1977 Con­
sumer Credit Survey published by the Board of
Governors indicated that they did not know that
a federal law dealing with credit-card billing er­
rors even existed. The approach suggested by
the staff prescribes a privacy notice on all appli­
cations for consumer credit and requires that
creditors prepare a complete statement of their
information collection and disclosure practices
and provide it only upon a consumer’s request.
The proposed bill duplicates existing proce­
dures of Regulation B and the Equal Credit Op­
portunity Act, relating to notification of adverse
action. At the same time, it allows the elimina­
tion of the existing requirement that the prohibit­
ed bases of discrimination and the name and ad­
dress of the creditor’s monitoring agency be
disclosed to the consumer. The Board believes
that these disclosures are useful items of infor­
mation for consumers, and, while the Board may
have the authority to reinstitute the omitted dis­
closures under the proposed bill, it seems a need­
less exercise when the provisions are already in
place under Regulation B.
In addition, Regulation B already provides
creditors with the option of furnishing a state­
ment of specific reasons underlying an adverse
credit decision or sending notice of the con­
sumer’s right to request a statement of the specif­
ic reasons. Presently, consumers who receive a
notice of their right to request a statement of spe­
cific reasons may make the request orally. The
proposed bill would require the consumer to sub­
mit that request in writing. We believe that the
additional burden placed on the consumer to
request the statement of reasons in writing is un­

388

Federal Reserve Bulletin □ May 1980

warranted and will result in a decrease in the
number of consumers who will obtain the state­
ment of specific reasons. We recommend that
existing requirements, contained in Regulation B,
concerning adverse action notice be used as the
basis for some of the privacy protections of the
proposed bill instead of superimposing a dif­
ferent set of requirements upon them.
Before the subcommittee proceeds toward
enactment of this or other related legislation, it

may prove helpful to bear in mind our previous
experiences with the regulation of consumer fi­
nancial services. At this juncture we have the op­
portunity to draw from the precedents of existing
statutes and regulations. Also, we may at this
time utilize some of those statutes and regula­
tions to achieve the purposes of this legislation
without duplicating their provisions. The Federal
Reserve Board urges that the opportunity not be
missed.
□

Statem ent by Paul A. Volcker, Chairman, Board
o f Governors o f the Federal R eserve System,
before the Subcom m ittee on Agricultural R e­
search and General Legislation o f the Commit­
tee on Agriculture, Nutrition, and F orestry, U.S.
Senate, M ay 1, 1980.

inquiries of other agencies with direct responsi­
bility for, or sharing a general interest in, the per­
formance of the commodities markets when re­
ports and rumors first surfaced last fall of
unusual speculative activity in silver. Those dis­
cussions led to little or no specific information
beyond that publicly available. On October 6,
1979, the Federal Reserve did make a general
request to banks to refrain from speculative lend­
ing as part of the credit restraint program in­
troduced at that time. That action was not specif­
ically directed to the silver market, but did reflect
our growing concern about speculative price de­
velopments in a number of sensitive commodity
markets. Indeed, as we indicated at the time, the
highly speculative atmosphere contributed to our
decisions with respect to monetary policy gener­
ally.
We continued to follow price developments in
the silver and other commodity markets as part
of our normal economic intelligence throughout
the fall and winter. During this period we had no
knowledge, apart from rumors reported in the
press, of the size or value of the Hunt positions
in the silver market or of any bank lending
against silver. As you will recall, prices moved
sharply higher in December and January amid in­
tensified inflationary expectations, but began to
fall rapidly after an environment of intense credit
restraint developed. In January and February the
organized commodity exchanges also acted to in­
crease margin requirements substantially and to
limit individual positions.
The first indication I had of any potentially se­
rious financial consequences arising from the
sharp fall of the price of silver was in an urgent
call from a leading brokerage house at midday on

Before turning to the substantive questions in
your letter to me, Mr. Chairman, let me say I am
aware of a good deal of confusion, misinterpreta­
tion, and questions engendered by the initial
press reports about my, or the Federal Re­
serve’s, involvement in certain loans to Hunt in­
terests. In the circumstances, I particularly wel­
come this opportunity to outline my role and that
of the Federal Reserve with respect to assessing
the financial repercussions of recent speculation
in the silver market.
As you are no doubt aware, the Federal Re­
serve has no statutory or other authority over
commodity markets in general, or the silver mar­
ket in particular, nor over brokerage or com­
modity houses buying and selling commodities
for their own account or for others. We do have
supervisory responsibility for member banks, but,
with some exceptions, our legal authority does
not reach to particular loans to particular cus­
tomers, nor are we ordinarily informed of specif­
ic loans or lending decisions except as part of the
ex post facto examination process. The Federal
Reserve does, of course, have a general interest
in developments in any market that bears signifi­
cantly upon economic and inflationary develop­
ments and particularly on developments that
may affect the safety of our financial institutions,
especially banks.
Because of that general interest, I did initiate



Statem ents to Congress

Wednesday, March 26, indicating that the Hunt
interests were failing to meet substantial margin
calls and that certain loans the brokerage house
had with banks, secured by Hunt silver, were ei­
ther undermargined or in imminent danger of be­
coming undermargined. As a result, the firm was
concerned that its capital position could fall be­
low certain requirements imposed by the Securi­
ties and Exchange Commission or the New York
Stock Exchange if the price of silver continued
declining, and if further margin calls went unan­
swered.
I immediately alerted the Chairmen of the
Commodity Futures Trading Commission
(CFTC) and of the Securities and Exchange
Commission (SEC), as well as Treasury officials.
That afternoon, as well as in ensuing days, the
concerned agencies urgently began to develop
further information about the extent of the Hunt
involvement in the commodity markets and the
potential exposure of other brokerage houses,
commodity dealers, and commercial banks in­
volved in Hunt business. While precise and com­
prehensive data were difficult to obtain, it quick­
ly became apparent that hundreds of millions of
dollars were involved in silver credits or personal
loans of one form or another. There were also
large amounts of credit outstanding to various
Hunt business enterprises; whereas those credits
basically appeared to grow out of ordinary busi­
ness requirements and to be well secured, the
close relationships of those businesses to the
Hunt family warranted close scrutiny of the de­
gree of insulation of those credits from the per­
sonal fortunes of the family.
During this period careful consideration was
given by me and by others to possible action by
the federal government with respect to the silver
market, but no special government action regard­
ing the markets was deemed appropriate and de­
sirable. The Federal Reserve itself, as I noted
earlier, has no authority over commodity markets
or brokerage houses. However, among other
things, the SEC and CFTC undertook to inspect
the position of certain brokers or commodity
dealers with Hunt-related accounts, and both the
Federal Reserve and the Office of the Comptroller
of the Currency, using examination authority
when appropriate, began to develop more de­
tailed information on the extent of commercial
bank loan exposure, including information on the



389

collateral or other security for loans to the Hunts
and to Hunt-related companies.
Late on Friday, March 28, I learned of some
particularly large forward contracts providing for
the purchase of silver by the Hunt interests from
the Engelhard Minerals & Chemical Corporation
at prices far above the current market. Settle­
ment was due after the weekend, with no appar­
ent prospect for payment. Engelhard, while itself
in a strong profits-and-asset position, believed
that it might be faced with a decision on Monday
to sue the Hunts for payment, forcing probable
bankruptcy and possibly triggering massive liqui­
dation of silver positions to the peril of all credi­
tor institutions (and indirectly placing in jeop­
ardy the customers and creditors of those
institutions in a financial chain reaction). The al­
ternative, as the company saw it, was to negoti­
ate with the help of some banks a credit to the
Hunts or intermediaries that could provide time
for repayment and avoid forced liquidation of sil­
ver in an already nervous, depressed market.
The precise nature of the proposed credit was
rather vague to me, but the question did arise as
to whether such a credit would in any way be
considered speculative within the context of our
credit restraint program.
After informing other government officials of
this development and considering all the implica­
tions of the matter, I interposed no objection to
Engelhard pursuing whatever negotiations the
company felt essential to protect its own posi­
tion, but I made it quite clear that the net result
should not be to free funds for renewed specula­
tive activity by any of the parties. In view of the
wider implications, I asked to be kept informed
of the progress of any negotiations.
While fulfilling a speaking engagement before
the Reserve City Bankers Association meeting in
Boca Raton, Florida, that weekend, I learned
that the Engelhard and the Hunt interests would
together approach a group of banks with a refi­
nancing proposal late in the evening on March 30
in Boca Raton. While the nature of that proposal
was not known to me, I asked to be kept in­
formed because of the potential implications for
the silver and the financial markets. Subsequent
to the negotiation (and well after midnight), I was
informed that the banks had rejected or planned
to reject the proposal by the Hunts and Engel­
hard on business grounds. Neither I, nor any oth­

390

Federal Reserve Bulletin □ May 1980

er government official, either instigated or guided
these negotiations.
Following the rejection of the proposal to con­
solidate and restructure the Hunt silver in­
debtedness, negotiations proceeded through
much of the night directly between the Hunts and
Engelhard. The results of those negotiations, in­
volving in part the transfer to Engelhard of cer­
tain oil properties owned by the Hunts, became
known to me in the morning and were announced
the same day. This exchange of assets for the
Hunt indebtedness to Engelhard involved no
credit extension.
In the following days, the Federal Reserve and
other agencies continued efforts to develop more
comprehensive information on the extent of
Hunt and Hunt-related obligations and to ap­
praise the potential vulnerability of banks and
other intermediaries. While large amounts of
credit remained outstanding, those creditors who
appeared to be in the most vulnerable position
seemed to have extricated themselves, albeit
with some losses (some of which, at least, have
since been recouped). Together with representa­
tives of other agencies, I also turned to ways of
developing means of avoiding further extreme
speculative episodes of this kind in the future,
with all their implications for the stability of fi­
nancial institutions and financial markets.
The credit referred to in recent press articles
first came to my attention in a general way on
Easter weekend at the initiative of one of the lead
banks involved. By that time, lending banks had
more fully appraised their overall exposure to
Hunt interests and had reached at least tentative
conclusions regarding the value of available
Hunt assets and those of key Hunt-related com­
panies. A small group of banks developed a con­
cept over the next few days about a method of
restructuring the Hunt silver indebtedness in a
manner that would greatly strengthen the securi­
ty position of creditors with outstanding silver
loans or contracts. In the process, new creditors
would in some instances replace existing credi­
tors, while other creditors would essentially ex­
change old loans for new. The new bank loans
would be to, and secured by the assets and earn­
ing power of, perhaps the strongest of the Huntrelated companies, the Placid Oil Company.
Control over the silver and the silver contracts,
with appropriate safeguards, would pass into the



hands of that same company. Silver-related loans
to the Hunts would be paid off. The immediate
purpose would be to protect more securely the
interests of existing Hunt silver creditors, both
banks and nonbanks. That result, in itself, was
not, and is not, contrary to the broad public inter­
est in the stability of financial markets and insti­
tutions.
I recognize that the outcome, while plainly de­
sirable in the interests of the creditors and of fi­
nancial stability in general, could have as a by­
product some stabilization of the financial
position of the Hunts themselves. For that rea­
son, my particular concern was that the funds
not be used, directly or indirectly, to support
new speculation by Hunt interests in the silver or
in any other commodity market. Moreover,
while the creditors and others have a legitimate
interest in not forcing liquidation of silver in an
unreceptive market at the expense of their own
stability, that of other institutions, and that of the
market itself, continued concentration of a mas­
sive silver position in the hands of one family or
institution is fundamentally unhealthy for the
performance of markets.
The bank negotiators indicated that they fully
understood my concerns on these issues; they
have assured me that all parties to the potential
loan agreement recognize and share the concern.
On that understanding and after consulting
with other government agencies, the bank nego­
tiators were informed that our main concern was
that the loan be structured in such a manner,
through appropriate covenants or otherwise, that
the funds not directly or indirectly be used for
speculative purposes and that indeed the parties
to the agreements refrain from silver and other
speculative commodity purchases for the life of
the loan. Provided that stipulation could be met,
the banks could reasonably conclude that we had
no objection, within the framework of our loan
restraint program, to the negotiations proceeding
along the lines of the general concept of the fi­
nancing arrangement as a whole as outlined to
me. The business and credit judgments involved
are, of course, entirely those of the banks.
I would emphasize, too, that the arrange­
ments, if completed, will be essentially a restruc­
turing of existing obligations rather than fresh
credit, although the total of new bank loans could
exceed outstanding bank loans. The difference

Statem ents to Congress

391

would reflect refinancing of obligations on fu­
and severe financial disturbances. Even today, a
tures or forward contracts or loans extended by
substantial fraction of the privately held stocks
brokerage houses from their own funds.
of silver remains concentrated in the hands of
As the negotiations proceeded, I suggested to
one group—an unfortunate heritage of the past.
the banks that they describe the nature of the fi­
Organized commodity markets perform impor­
nancing in writing so that I could respond in writ­
tant economic functions. They provide a means
ing to pin down explicitly the safeguards against
for producers, middlemen, and consumers alike
speculative activity. As a step toward that end, I / to hedge positions acquired in the ordinary
and my associates met with bank representa­ ^course of business, facilitating production and
commerce. They encourage broader participa­
tives, as well as with outside counsel involved in
tion in markets, including the kind of “ benign”
writing the loan agreement, so that a clear under­
standing could be conveyed as to the nature of
speculation that assures market liquidity and
bridges temporary imbalances in ultimate supply
those safeguards.
These negotiations were then, and are today to
and consumption. The markets provide for both
the best of my knowledge, incomplete. I believe
buyer and seller a clear set of price quotations
a fair conclusion from my discussions with the
established under highly competitive conditions.
banks would be that the Federal Reserve would
If the markets are to perform these functions,
not object to the conclusion of the negotiations— the costs to those participating in the market can­
indeed would have no reasonable basis for such
not be too high, lest the legitimate “ hedgers” and
an objection in the framework of the loan re­
“ speculators” that together make the market
straint program—provided the restructuring of cannot function effectively. Yet, those same low
the indebtedness in the manner indicated did not
costs can attract an unhealthy kind of specula­
contribute to fresh speculative activity. That re­
tion, exemplified by the Hunt activities. At the
mains my judgment today.
extreme, while it is very rare, situations can arise
I hope this recital makes it evident that neither
in some of the more limited markets in which rel­
I, nor any Federal Reserve or government offi­ atively few operators (or even one group) may be
cial, instigated or guided the negotiation of the
tempted for a time to operate in such a manner as
credit. I did repeatedly insist that any possibility
virtually to control the available supply and push
of fresh speculation by Hunt interests be avoid­
the price to extremes in the hope of reaping ex­
ed, while not barring orderly resolution of the po­
traordinary profits.
tential credit and market problem. Indeed, we
In the end, the best defense against that type of
can count ourselves fortunate that while the
behavior must be the discipline of the market it­
Hunt family bears the losses and the residual
self. History is replete with efforts at “ corner­
risk, the fabric of our financial institutions has
ing” that failed. I hope the recent silver experi­
been unimpaired and, assuming the negotiations
ence has had a chastening influence. But
are completed, we will have in place protection
memories are short; human greed leads to temp­
from renewed Hunt speculation.
tation; and an attempt to corner, successful or
The larger issues remain. Evidence indicates
not, can be extremely damaging, not just to the
that there was an attempt to control the supply
speculator but to all those who count on the sta­
of a significant commodity; to some degree,
bility of markets and financial institutions.
this stimulated uncertainty and inflationary ex­
The question is how to minimize the dangers,
pectations more generally. As the market price
arising rarely, without smothering the markets in
declined, funding of the speculative positions re­
their useful, even indispensable, everyday work.
quired substantial amounts of credit, and certain
I have no specific recommendations to make this
market intermediaries had, wittingly or not, com­
morning about the structure and regulation of
mitted an excessive amount of their own capital
these markets. Indeed, I would caution against
in support of speculative activity in one com­
striking out with hastily conceived restrictive leg­
modity by a single group of people. As the mar­ islation with respect to organized futures mar­
ket values collapsed, some of those institutions
kets. Those markets already have considerable
were placed in jeopardy, and their failure could financial safeguards embedded in their structure.
in turn have triggered financial losses for others
One danger from excessive regulation or the im­



392

Federal Reserve Bulletin □ May 1980

position of heavy costs is that activity will shift
to unregulated channels here or abroad, poten­
tially leaving the markets more vulnerable than
before to manipulation or credit weakness.
I do not suggest at all that the status quo
should be left unquestioned. In discussions with
colleagues in government, I have urged that the
interested agencies sponsor and complete within
the shortest feasible time period a dispassionate
study, drawing upon thinking and experience out­
side the government as well as within, given the
simple fact that the requisite knowledge and ex­
perience within government is limited. Specific
questions of the amount and form of margin re­
quirements, of position limits for traders, of pru­
dent capital requirements for market middlemen,
and of other issues are sure to be relevant, and
no single reform is likely to provide a complete
answer.
I am simply not able today, in so highly spe­




cialized an area, to indicate with any confidence
detailed judgments on these questions; indeed, I
believe it would be unwise to do so before I can
benefit more fully from the thinking of others fa­
miliar with market needs and problems. But I as­
sure you I intend to pursue this matter and to
share my conclusions with the relevant com­
mittees of the Congress.
Finally, I cannot refrain from emphasizing that
the environment of inflation and the uncertainty
and doubts about the future that accompany in­
flation provided the fertile breeding ground for
the recent speculative activity in commodity
markets generally—speculation that reached an
extreme form in the case of silver. Stable, wellfunctioning markets ultimately depend upon a
sense of stability and confidence in our currency,
and certainly that sense of stability is at the cen­
ter of our policy considerations in the Federal
Reserve.
□

Similar testim ony was presented to the Subcom ­
m ittee on Commerce, Consumer, and M onetary
Affairs o f the Com m ittee on Government Opera­
tions, U.S. H ouse o f R epresentatives, on April
30, 1980.

393

Announcements
Rem oval of S urcharge
o n D is c o u n t R ate

The Federal Reserve Board has announced the
elimination of the surcharge on discount borrow­
ings by large banks that was imposed on March
14, 1980. The action was effective May 7.
The basic discount rate of 13 percent remains
unchanged.
A 3 percent surcharge was imposed last March
to discourage frequent use of the discount win­
dow by banks with deposits of $500 million or
more. The surcharge was designed to bring costs
of credit at the discount window for large and fre­
quent borrowers into rough alignment with the
constellation of short-term rates in the market at
that time. Market rates have subsequently de­
clined, and consequently the need no longer ex­
ists.
In eliminating the surcharge, the Board acted
on requests from the directors of the Federal Re­
serve Banks of Boston, Philadelphia, Richmond,
Atlanta, Chicago, St. Louis, Minneapolis, Dal­
las, and San Francisco, and of New York, Cleve­
land, and Kansas City effective May 9. The dis­
count rate is the interest rate that member banks
are charged when they borrow from their district
Federal Reserve Banks.

rules for creditors to follow if they impose or in­
crease finance or other charges or make certain
other changes in the terms of consumer credit ac­
counts ( F e d e r a l R e s e r v e B u l l e t i n , vol. 66,
April 1980, pages 316-17).
The further revisions make the following clari­
fications:
1. That the requirements for changes in the
terms of consumer credit accounts apply not on­
ly to open-end accounts (for which the consumer
may pay the balance due in installments), but al­
so to open accounts (such as 30-day accounts for
which the consumer may incur new debt from
time to time but is expected to pay the full
amount due upon being billed).
2. That the provisions for the change in term
requirements of consumer credit accounts do not
affect the maximum finance charge permitted un­
der state laws, or the maximum rates permitted
under the Depository Institutions Deregulation
and Monetary Control Act of 1980, but that fed­
eral limitations on finance charges for other cov­
ered creditors, such as regulations governing oil
company credit programs, are superseded to the
extent they are inconsistent with the Board’s
rules.

Te m p o r a r y S e a s o n a l C r e d it P r o g r a m
A m e n d m e n t s t o C o n s u m e r C r e d it
R e s t r a in t P r o g r a m

The Federal Reserve Board has announced two
technical amendments to its consumer credit re­
straint program, effective April 14, 1980. They
deal with changes in the terms of certain con­
sumer credit accounts and with the relationship
of the program to maximum finance charge rates
permitted by state and federal laws and Depart­
ment of Energy rules.
The amendments are extensions of revisions in
the consumer credit restraint regulations an­
nounced April 2 establishing uniform national



The Federal Reserve Board announced on April
17, 1980, a temporary seasonal credit program
that is designed to help small banks under liquidi­
ty pressures meet the credit needs of their com­
munities.
The practical effect of the program is to extend
immediately the coverage of the seasonal bor­
rowing privilege, previously limited to smaller
member banks, to all small banks under sim­
plified guidelines. This action is taken in further
implementation of the provisions of the Deposi­
tory Institutions Deregulation and Monetary
Control Act of 1980 regarding the availability of
the discount window to institutions holding

394

Federal Reserve Bulletin □ May 1980

transactions accounts or nonpersonal time de­
posits. By July 1 the Board expects to have more
permanent guidelines in place.
The seasonal program is aimed generally at
banks—both member and nonmember—with
less than $100 million in deposits. Seasonal credit
will be granted mainly to finance increases in
loans by banks operating within the qualitative
guidelines of the Board’s special credit restraint
program and thus giving special attention to the
normal financing needs of farmers and small
businesses.
Details of the seasonal program were included
in a letter to all banks. The letter also clarified the
application of the special credit restraint program
to smaller banks that lend primarily for agricul­
ture, small business, or other priority uses.
The letter explains that the intent of the guide­
lines under the program is to encourage banks to
meet the ordinary continuing or seasonal need of
their established local customers, taking account
of the special needs of small businesses, farmers,
and others. Should a bank’s total lending appear
to be proceeding at a pace that would exceed the
9 percent guideline on loan growth, small banks,
like other banks, would be expected to cut back
on less urgent forms of lending. In those in­
stances when a bank is essentially confining loan
expansion to priority areas, which may be the
case particularly with community banks serving
agricultural areas and small business, that bank
is justified in exceeding the quantitative guide­
lines of the special credit restraint program.

1. A bank that was a member of the System on
July 1, 1979, and withdrew between that time and
March 30, 1980, is required to maintain reserves
to the same extent as a member bank.
2. A bank that withdraws from the System on
or after March 31, 1980, must continue to main­
tain reserves to the same extent as a member
bank.
The Board has approved interpretations relat­
ing to provisions of the act, as follows:
1. How the date of withdrawal of a member
bank from the System is to be determined.
2. Waiving reserve requirements of former
member banks for the period March 31 through
August 27, 1980. Member banks will be required
to maintain full reserve requirements thereafter,
with provisions for limited extensions to avoid
hardships in extraordinary circumstances.
3. How reserve requirements will be applied to
banks that withdrew from the System on or after
July 1, 1979, due to merger or consolidation in
which (1) a nonmember bank merged or consoli­
dated with a member bank and the surviving
bank is a nonmember, when the merger or con­
solidation took place between July 1, 1979, and
August 27, 1980, or on or after August 28, 1980;
or (2) a surviving member bank merged with a
nonmember bank after March 30, 1980.
4. How the date of a merger or consolidation
will be determined.
5. Policy for access to Federal Reserve serv­
ices, providing that banks maintaining full feder­
al reserves pursuant to this interpretation will be
given access to all Federal Reserve services.

R e g u l a t i o n D. I n t e r p r e t a t io n
R e g u l a t io n E . A m e n d m e n t s

The Federal Reserve Board has adopted an inter­
pretation of Regulation D (Reserves of Member
Banks) to implement the Monetary Control Act
of 1980 as it applies to reserve requirements of a
bank that was a member of the Federal Reserve
System on July 1, 1979, and subsequently with­
drew, and to member banks involved in mergers
or consolidations since that date.
The interpretation, which also deals with the
availability of Federal Reserve services to banks
maintaining reserves, was effective as of April
21, 1980.
The Monetary Control Act of 1980 makes the
following provisions:



The Federal Reserve Board on April 10, 1980,
announced the adoption of amendments to Regu­
lation E (Electronic Fund Transfers), implement­
ing the Electronic Fund Transfer Act. The
action relates to rules issued by the Board in
January and to proposals made then with respect
to sections of the EFT Act that become effective
May 10.
The Board is delaying until August 10, 1980,
the requirements that a financial institution dis­
close on periodic statements (1) the name of any
third party to or from whom electronic fund
transfers were made, and (2) the terminal loca­

Announcements

tion, for transfers initiated at electronic termi­
nals. All other requirements of the regulation
went into effect on May 10, 1980, as scheduled.
In taking this action the Board made the fol­
lowing statement:
The Board wishes to insure that consumers enjoy the
major protections of the act and regulation during the
three-month delay. Consequently, a requirement pre­
viously stated in the F ed eral R e g ister has been incor­
porated into the regulation. When applicable, financial
institutions must, upon the consumer’s request and
without cost, provide the consumer with evidence of
proof of payment to another person. The Board reiter­
ates that financial institutions must treat any request
for additional information from the consumer as to an
incompletely identified transfer as an “ error” and
comply with the error resolution procedures.

The Board also permanently “ grandfathered”
cash dispensers that do not generate a receipt at
the time a withdrawal is made, on the condition
that the consumer be sent a receipt on the next
business day. This exception is available only to
terminals that do not perform any electronic
transfer function other than dispensing cash. It is
also limited to machines that were purchased or
ordered by the financial institution before Febru­
ary 6, 1980, the date on which the Board’s final
documentation rules were published. The ex­
ception is intended to permit the continuation of
a service that is beneficial to consumers, without
loss of consumer protections. It will also enable
financial institutions to replace these terminals in
an orderly and cost-effective manner.
The Board adopted two other amendments.
The first applies to deposits of cash or checks at
electronic terminals. In January, the Board
stated the opinion that such deposits are covered
by the EFT Act and Regulation E. In response to
comments asking that it reconsider the matter,
the Board reiterated its position, but exempted
deposits made at electronic terminals from the
requirement that the terminal location be shown
on the periodic statement.
The second change relates to the charges that
must be disclosed on the periodic statement. Un­
der a rule adopted in January, institutions were
required to disclose separately the total of
charges related to electronic transfers, even if
the cost were identical for electronic and paper
transfers. The amendment now gives institutions
the option of disclosing instead the total charges



395

for account maintenance, including any pertransaction charges. This change comports with
the statutory language and was made in response
to comments pointing to the operational diffi­
culty in segregating EFT charges, particularly
with respect to accounts on which charges are
based on minimum balances and may involve re­
bates. Consumers will continue to receive infor­
mation about specific EFT charges on initial dis­
closures required by the regulation.

R e g u l a t i o n L. F i n a l R u l e s

The Federal Reserve Board, together with other
agencies that supervise federally insured finan­
cial institutions, on April 14, 1980, made public
revised final regulations to carry out the provi­
sions of the Depository Institutions Management
Interlocks Act (Title II of the Financial Institu­
tions Regulatory and Interest Rate Control Act
of 1978).
The Board had issued final rules—Regulation
L (Management Official Interlocks)—under the
Interlocks Act in July, but said it would accept
further comment on them. The revisions, ef­
fective May 9, 1980, reflect consideration of com­
ment received.
Requests for relief were received from deposi­
tory institutions facing loss of a large number of
their directors or other management officials
through application of the provisions of the Inter­
locks Act. Accordingly, and in view of the intent
of the Congress to avoid undue disruptions in the
operations of depository institutions, the Board
has provided in Regulation L that organizations
experiencing the loss of half or more of their di­
rectors or of other management personnel under
provisions of the act may have up to 30 months
to comply with the act, provided that the deposi­
tory institution submits a written proposal for or­
derly termination of the services of the affected
management officials, and that the officials agree
to sever their relationships with the institution
not later than 30 months after the change in cir­
cumstances that requires termination.
Most of the changes to the final rules were
clarifications in response to comment. These in­
cluded the adoption of a 10-mile rule—measured
by road miles—for defining “ adjacent,” and de­

396

Federal Reserve Bulletin □ May 1980

fining the “ office” of a depository holding com­
pany as its principal corporate office.
In July the Board had also proposed four
amendments to Regulation L; as a result of the
comments received, it has taken the following
actions.
The Board has adopted without substantive
change its proposal stating that those eligible for
grandfathered interlocking relationships include
those whose service began before November 10,
1978, and were not then in violation of the Clay­
ton Antitrust Act. Such grandfathered interlocks
may continue, absent a change in circumstances,
until November 10, 1988. The Board withdrew a
proposal to apply certain restraints to the service
of a management official with a corporation that
became a depository holding company after No­
vember 9, 1978, by acquiring shares of the de­
pository institution.
Another proposal would have made certain
relationships of an official—including family, em­
ployment, or agency—normally sufficient to es­
tablish an express or implied duty of the official
to act as a representative or nominee. In the final
form of this amendment these relationships
“ may” establish such obligations, but will not of
themselves create an express or implied obliga­
tion. The Board added a provision specifying
that whether such obligations exist will be de­
cided on a case-by-case basis after the affected
person or persons shall be given an opportunity
to respond.
In July the Board had offered for comment
three alternatives as possible definitions of “ per­
sons.” The amendment as adopted after con­
sideration of comment received includes as
“ persons” corporations and other businesses as
well as natural persons. But it excludes corpora­
tions and other businesses from the definition of
“ representative” or “ nominee.” Thus, while
corporations are considered persons for the
purposes of the provisions of the Interlocks Act,
they will not, under Regulation L, be deemed to
have representatives or nominees on boards.
The provisions of the proposal on changes in
circumstances affecting grandfathered interlocks
were retained generally. Increased management
responsibility has been eliminated as a change in
circumstances that would defeat grandfathered
rights. An extended grace period has been pro­
vided for compliance by institutions that experi­



ence changes in circumstances before the ef­
fective date of the amendments and also for
compliance by institutions that must, as a result
of a change in circumstances, terminate non­
grandfathered interlocks.
Separately, the Board has issued an inter­
pretation of its rules permitting the Federal Re­
serve Banks, under delegated authority, to per­
mit a further extension to avoid undue disruption
of annual shareholders’ meetings.

P r o p o s e d A c t io n s

The Federal Reserve Board on April 28, 1980,
issued a proposed revision of its Regulation Z
(Truth in Lending), and asked for comment on
the streamlined and simplified regulation through
July 31, 1980. The Board proposed the revisions
to carry out the objectives of the Truth in Lend­
ing Simplification and Reform Act (Title VI of
the Depository Institutions Deregulation and
Monetary Control Act, Public Law 96-221),
which became law on March 31, 1980. The re­
vised Regulation Z will become effective when
adopted in final form not later than April 1, 1981.
The act becomes fully effective on April 1, 1982.
The Federal Reserve Board also on April 28,
1980, requested comment on proposals by Feder­
al Reserve staff for changes in the operation of
the System’s wire network intended to accom­
plish the following:
1. Establish uniform, nationwide operating
hours for transfer of federal funds (excess re­
serves).
2. Extend operating hours for transfer of feder­
al funds.
3. Establish a one-hour period at the end of the
day for interbank settlement transfers.
The proposals were developed by Federal Re­
serve staff in response to a request from the Fed­
eral Advisory Council.

M e e t in g o f D e p o s i t o r y I n s t it u t io n s
D e r e g u l a t io n C o m m it t e e

The Depository Institutions Deregulation Com­
mittee has announced that at its first meeting it
elected Paul A. Volcker, Chairman of the Feder­
al Reserve Board, as its Chairman. Irvine H.

Announcements

Sprague, Chairman of the Federal Deposit Insur­
ance Corporation, was named Vice Chairman.
The committee was created by the Depository
Institutions Deregulation and Monetary Control
Act of 1980, signed on March 31. Title II of that
act transferred to the newly formed committee
the authority to set interest rate ceilings on de­
posits of commercial banks, mutual savings
banks, and savings and loan associations. The
committee’s assignment under the act is to pro­
vide for the orderly phaseout of interest rate ceil­
ings over a six-year period and eventually to pro­
vide depositors with a market rate of return on
their savings.
Members of the committee are the Secretary
of the Treasury and the chairmen of the Federal
Reserve Board, Federal Deposit Insurance Cor­
poration, Federal Home Loan Bank Board, and
National Credit Union Administration Board.
The Comptroller of the Currency serves as a
nonvoting member.
In its first substantive action, the committee
requested comment by June 16 on a proposal to
prohibit premiums or gifts by an institution upon
the opening of a new account or an addition to an
existing account. Premiums are now limited to $5
(at wholesale, exclusive of packaging and ship­
ping costs) for deposits of less than $5,000 and to
$10 for deposits of $5,000 or more.
In addition, the committee proposed to limit
any finder’s fees to third parties to cash pay­
ments and to regard any finder’s fees as interest
to the depositor. Comment was requested on this
proposal also by June 16.
In other actions, the committee adopted two
final rules, effective May 6, as follows:
1. To permit a depositor to withdraw at any
time without penalty all interest earned on a time
deposit that was renewed automatically on the
same terms as the original deposit. This will
bring rules of the FDIC and the Federal Reserve
into conformity with those of the Federal Home
Loan Bank Board.
2. To authorize institutions to pay interest on
certificates of deposit for up to seven days after




397

the maturity date. At present, the Federal Home
Loan Bank Board permits savings and loan asso­
ciations to pay interest for up to ten days after a
certificate matures (seven days for the twenty-six
week money market certificate). The FDIC and
Federal Reserve have no parallel ruling.
The National Credit Union Administration is
expected to take actions similar to the final rules
adopted by the committee.
In other organizational matters, the committee
selected the following members of its permanent
staff: General Counsel: Neal L. Petersen, Gener­
al Counsel of the Federal Reserve Board; Execu­
tive Secretary: Normand R. V. Bernard, Special
Assistant to the Federal Reserve Board; and Pol­
icy Director: Edward C. Ettin, Deputy Staff Di­
rector in the Office of Staff Director for Monetary
and Financial Policy at the Federal Reserve. The
permanent offices of the committee will be at the
Federal Reserve Board.

Ch a n g e

in

B o a r d S ta f f

The Board of Governors has announced the fol­
lowing appointment.
Martha Bethea as Assistant Director, Division
of Research and Statistics, effective May 4, 1980.
Ms. Bethea, Chief of the Financial Reports Sec­
tion, joined the Board’s staff in 1976, after 17
years at the Federal Reserve Bank of Atlanta.
Ms. Bethea is a graduate of Agnes Scott College
and attended the Stonier Graduate School of
Banking.

S y st e m M e m b e r s h i p :
A d m is s io n o f S t a t e B a n k

The following bank was admitted to membership
in the Federal Reserve System during the period
April 11 through May 10, 1980:
Virginia

S uffolk................................... Bank of Suffolk

399

Record of Policy Actions of the
Federal Open Market Committee
Meeting held on March 18, 1980
1. Domestic Policy Directive
The information reviewed at this
meeting suggested that real output of
goods and services was continuing
to grow in the first quarter of 1980
after having expanded at an annual
rate of about 2 percent in the fourth
quarter of 1979. The rise in average
prices, as measured by the fixedweight price index for gross domes­
tic business product, appeared to
have accelerated in the current quar­
ter from an average rate of about 10
percent during 1979.
Retail sales rose briskly in Janu­
ary, but advance data suggested a
moderate decline in February. After
adjustment for higher prices, the lev­
el in February was close to the aver­
age for the fourth quarter. Unit sales
of new automobiles in the first two
months of the year were consid­
erably above the reduced pace in the
fourth quarter.
The index of industrial production
rose somewhat in both January and
February after changing little during
the fourth quarter, and returned to
its peak level of March 1979. The
rate of capacity utilization in manu­
facturing was unchanged in Febru­
ary at a level about 3 percentage
points below its recent peak in
March 1979.
Nonfarm payroll employment,
which had expanded substantially in
January, rose appreciably further in
February, and the rate of unemploy­
ment fell 0 .2 percentage point to 6 .0
percent. Employment in manufac­
turing continued to change little.
The latest Department of Com­



merce survey of business spending
plans, taken in late January and Feb­
ruary, suggested that expenditures
for plant and equipment would in­
crease about 11 percent from 1979 to
1980. Adjusted for price increases
that were expected by businesses,
the survey implied little change in
real outlays.
In January housing starts declined
further to an annual rate of about 1 .4
million units. Since the third quarter
of 1979, housing starts had fallen by
more than 2 0 percent and residential
building permits by nearly 25 per­
cent. Sales of new single-family
homes rose somewhat in January but
remained well below their thirdquarter level, while sales of existing
single-family homes continued to de­
cline.
Producer prices of finished goods
rose at a greatly accelerated pace in
January and February, and con­
sumer prices also increased at a
sharply higher rate in January. The
advances reflected a continuing
surge in prices of energy-related
items and, with the exception of
foods, widespread increases in prices
of other items as well. During 1979
producer prices had risen 1 2 V2 per­
cent and consumer prices about 13 lU
percent. The index of average hourly
earnings of private nonfarm produc­
tion workers rose at an annual rate of
about 7 percent over the JanuaryFebruary period, compared with a rise
of about 8 V2 percent during 1979.
In foreign exchange markets the
dollar had been in strong demand
since mid-February, largely in re­
sponse to sharp increases in U.S. in­
terest rates and, most recently, to
the President’s announcement of a

400

Federal Reserve Bulletin □ May 1980

series of measures designed to curb
inflationary pressures in the U.S.
economy. By the first part of March
the trade-weighted value of the dol­
lar against major foreign currencies
had risen to around its high of late
October 1979. By mid-March, the
dollar had advanced further, to
about 6 percent above its level at the
time of the February meeting. Over
the course of recent weeks foreign
monetary authorities had intervened
in heavy volume to support their
currencies.
In January the U.S. foreign trade
deficit increased sharply, despite
some reduction in the volume and
value of oil imports. Other imports
rose substantially, while exports ex­
panded at a reduced pace; agricul­
tural exports were down somewhat
from a high December level.
At its meeting on February 4-5,
the Committee had decided that
open market operations in the period
until this meeting should be directed
toward expansion of reserve aggre­
gates consistent with growth from
December 1979 to March 1980 at an
annual rate of about Alh percent for
M-l A and about 5 percent for M-1B,
provided that in the intermeeting pe­
riod the weekly average federal
funds rate remained within a range
of IIV 2 to 15V2 percent. In the Com­
mittee’s view this short-run policy
should be consistent with growth in
M-2, as newly defined, at an annual
rate of about 6 V2 percent over the
first quarter.
Growth in M-l A and M-1B accel­
erated in February to annual rates of
about 12 percent and IIV 2 percent
respectively from rates of about V h
percent and 4lU percent in January.
Growth in M-2 also quickened in
February, to an annual rate of about
103/ 4 percent from 6 3/4 percent in
January, reflecting in part the contin­
ued rapid expansion in money mar­
ket mutual funds; and growth in M-3
was buoyed by increased issuance of
large-denomination time deposits at
commercial banks associated with
rapid expansion of bank credit. In



late February and the first part of
March, growth of M-l A and M-1B
subsided.
Reflecting the acceleration of mon­
etary growth in February, the de­
mand for bank reserves expanded
substantially in relation to the supply
of nonborrowed reserves and money
market conditions tightened consid­
erably. Effective February 15, Feder­
al Reserve discount rates were
raised from 12 percent to 13 percent.
The federal funds rate rose from
about OV 2 percent in the statement
week ending February 13, the first
full week after the Committee’s
meeting in early February, to almost
15 percent in the week ending Febru­
ary 20. On February 22 the Com­
mittee voted to raise the upper limit
of the intermeeting range for the
funds rate to I 6 V2 percent, and on
March 7 it voted to raise the limit to
18 percent. The federal funds rate
averaged about I 6 V2 percent in the
week ending March 12, the last com­
plete statement week before this
meeting, and exceeded 17 percent on
some days in early March. Member
bank borrowings rose to an unusu­
ally high level of almost $3 V2 billion
in the week ending March 12; in the
preceding three weeks borrowings
had averaged about $2 V4 billion.
Expansion of total credit out­
standing at U.S. commercial banks
strengthened in January and acceler­
ated further in February. Growth
was especially pronounced in busi­
ness loans, and available reports in­
dicated a surge in demands for loan
commitments in the latter part of
February and early March. The is­
suance of commercial paper by non­
financial corporations strengthened
markedly in December and contin­
ued very large in January and Febru­
ary.
Interest rates rose sharply during
the intermeeting period as inflation­
ary expectations continued to wors­
en. Upward pressures on rates, es­
pecially on short-term rates, also
reflected the constraint on the provi­
sion of bank reserves in relation to

R ecord o f Policy Actions o f the FOM C

the demand for reserves and the in­
creases in Federal Reserve Bank dis­
count rates on February 15. Such
pressures were reinforced in short­
term markets by the sizable bank is­
suance of certificates of deposit and
by large sales of Treasury bills by
foreign official institutions to finance
intervention in foreign exchange
markets. Over the period, com­
mercial banks raised their loan rate
to prime business borrowers from
15V4 percent to I 8 V2 percent. In
home mortgage markets, rates on
new commitments advanced sharply
further and lenders also tightened
other lending terms.
On March 14 the President an­
nounced a broad program involving
fiscal, energy, credit, and other mea­
sures that were designed to help
curb inflationary forces in a manner
that would also restore the basis for
stable economic growth. Consistent
with that program and with the con­
tinuing objective of the Federal Re­
serve System to restrain growth in
money and credit during 1980, the
Board of Governors announced the
following actions on March 14 to re­
inforce the measures announced on
October 6 , 1979:
1. A voluntary special credit re­
straint program intended to curb the
expansion in credit extensions by a
variety of financial institutions.
2. A special deposit requirement
of 15 percent for all lenders on in­
creases in certain types of consumer
credit.
3. An increase from 8 percent to
10 percent in the marginal reserve
requirement on managed liabilities
of large member banks and a reduc­
tion in the base upon which the re­
serve requirement is calculated.
4. A special deposit requirement
of 10 percent on increases in man­
aged liabilities of large nonmember
banks.
5. A special deposit requirement
of 15 percent on increases in total as­
sets of money market mutual funds.
6 . A surcharge of 3 percentage
points on frequent borrowings from



the Federal Reserve Banks by mem­
ber banks with deposits of $500 mil­
lion or more.
In part because of the new pro­
gram announced on March 14, pro­
jections of activity and prices at this
time were subject to more uncer­
tainty than usual. Staff projections
prepared for this meeting suggested
that real GNP probably would turn
down in the second quarter and that
the contraction in activity was likely
to persist for a number of quarters
and to be accompanied by a signifi­
cant increase in the unemployment
rate. The rise in average prices was
projected to moderate from the ac­
celerated pace in the first quarter but
to remain rapid.
In the Committee’s discussion of
the economic situation, many of the
members continued to stress the un­
usual uncertainties affecting eco­
nomic forecasts, although the likeli­
hood of some decline in activity over
the rest of 1980 was broadly accept­
ed. With respect to price prospects,
it was suggested that the underlying
inflation rate would not be reduced
very much in the short run by the
rather moderate contraction in activ­
ity generally being projected.
Contrary to widespread expecta­
tions, it was noted, expansion in
some sectors of the economy had
been strong enough in recent months
to sustain overall output despite con­
siderable weakness in the automo­
bile and housing markets. For the
period immediately ahead, the
course of total output appeared to be
dependent to a considerable degree
on whether consumer expenditures
for goods and services remained ab­
normally high in relation to dis­
posable income or tended to decline.
While the strength of investment ac­
tivity and apparently balanced in­
ventory behavior suggested a mild
recession, the possibility was recog­
nized that a recession, whenever it
occurred, could be exacerbated by
the accumulation of sizable amounts
of debt, by businesses as well as
consumers, at exceptionally high in­

401

402

Federal Reserve Bulletin □ May 1980

terest rates and by other developing
strains in the financial system.
At its meeting on February 4-5,
1980, the Committee had agreed that
from the fourth quarter of 1979 to the
fourth quarter of 1980 average rates
of growth in the monetary aggre­
gates within the following ranges ap­
peared to be consistent with broad
economic aims: M-1A, V I 2 to 6 per­
cent; M-IB, 4 to 6 V2 percent; M-2, 6
to 9 percent; and M-3, 6 V2 to 9xli
percent. The associated range for
the rate of growth in commercial
bank credit was 6 to 9 percent. It had
also been agreed that the longer-run
ranges, as well as the particular ag­
gregates for which such ranges were
specified, would be reconsidered in
July or at any other time that condi­
tions might warrant, and also that
short-run factors might cause con­
siderable variation in annual rates of
growth from one month to the next
and from one quarter to the next.
In contemplating policy for the pe­
riod immediately ahead, the Com­
mittee took note of a staff analysis
indicating that growth of M-l A and
M-1B over the first two months of
the year had substantially exceeded
the pace consistent with the objec­
tives for the December-March peri­
od established by the Committee at
its preceding meeting. Accordingly,
extension of the first-quarter objec­
tives for M-l A and M-1B through
the second quarter, in keeping with
the Committee’s objectives for mon­
etary growth over the whole year,
would imply a considerable slowing
of growth from February to June.
The staff analysis also noted that
monetary growth had subsided in re­
cent weeks; available data indicated
little if any growth of M-l A in
March, even if growth resumed in
the latter part of the month.
Growth of M-2 over the first half
associated with extension of the ear­
lier objectives for M-l A and M-1B
would be more rapid than had been
contemplated for the first quarter,
but the projected rate nevertheless
was well within the range estab­



lished for the year as a whole. Owing
to the public’s response to the high
market interest rates prevailing, ex­
pansion of money market mutual
funds in the first two months of the
year had been stronger than ex­
pected. Whether their expansion
would remain relatively strong de­
pended in part on the adjustments
the funds made to the new special
deposit requirement imposed on the
increase in their assets.
In the Committee’s discussion of
policy for the period immediately
ahead, most members favored es­
sentially an extension through the
second quarter of the objectives for
the first quarter that had been estab­
lished at the meeting in early Febru­
ary. Specifically, they favored annu­
al rates of growth over the first half
of the year of about 4 V2 percent for
M-l A and about 5 percent for M-1B,
with an associated rate of about VU
percent for M-2. Such a policy was
viewed as sufficiently restrictive, es­
pecially in light of its implication for
a significant slowing of monetary
growth over the period from Febru­
ary to June. However, some senti­
ment was also expressed for seeking
slightly lower rates of growth over
the first half, to underscore support
for the new anti-inflation program by
making clear that general credit re­
straint would not be relaxed.
Many members expressed con­
cern about the possibility that a
bulge in monetary growth in April,
even if it followed little growth or a
decline in March, would have an ad­
verse impact on market psychology
and on assessments of the likely suc­
cess of the new program in helping
to contain inflation. While favoring
essentially an extension of the firstquarter objectives for monetary
growth that had been established at
the preceding meeting, they also ad­
vocated directing operations in the
period immediately ahead toward
working against any bulge that might
be developing and assuring that ex­
cessive growth in April, should it oc­
cur, would be compensated for in

R ecord o f Policy Actions o f the FOM C

succeeding months. These members
in general felt that, in the process,
they would be willing to tolerate
somewhat less growth over the first
half of the year than the annual rates
of 41/ 2 percent for M-l A and 5 per­
cent for M-1B that represented an
extension of the first-quarter objec­
tives.
Members differed in their views
concerning the range to be specified
for the weekly average federal funds
rate during the period before the
next meeting of the Committee. Sen­
timent was expressed for a number
of variations: retaining the widened
range of IIV 2 to 18 percent existing
since the Committee’s vote on
March 7 to raise the upper limit; re­
storing the range to the more cus­
tomary 4 percentage points by rais­
ing the lower limit to 14 percent; and
raising the upper limit to 2 0 percent,
with no change in the lower limit or
with an increase in that limit to 13 V2
or 14 percent. It was observed, in
this connection, that the Committee
had, and frequently used, estab­
lished procedures for changing spec­
ifications during periods between
meetings when circumstances seemed
to warrant such changes.
The suggestion was made that the
language of the domestic policy di­
rective take account of the new vol­
untary special credit restraint pro­
gram. That might be done by includ­
ing a reference in the operational
paragraphs to an expectation of an
appropriate slowing of growth in
bank credit in the months ahead.
At the conclusion of the dis­
cussion, the Committee agreed that
open market operations in the period
until the next meeting should be di­
rected toward expansion of reserve
aggregates consistent with growth
over the first half of 1980 at annual
rates of 4 V2 percent for M-l A and 5
percent for M-1B, or somewhat less,
provided that in the intermeeting pe­
riod the weekly average federal
funds rate remained within a range
of 13 to 20 percent. Consistent with
this short-run policy, in the Com­



mittee’s view, M-2 should grow at an
annual rate of about VU percent
over the first half, and expansion
of bank credit should slow in the
months ahead to a pace compatible
with growth over the year as a whole
within the range of 6 to 9 percent
agreed upon. If it appeared during
the period before the next regular
meeting that the constraint on the
federal funds rate was inconsistent
with the objective for the expansion
of reserves, the Manager for Domes­
tic Operations was promptly to noti­
fy the Chairman who would then de­
cide whether the situation called for
supplementary instructions from the
Committee.
The following domestic policy di­
rective was issued io the Federal Re­
serve Bank of New York:
The information reviewed at this
meeting suggests that real output o f
goods and services continued to grow in
the first quarter o f 1980 and that the rise
in prices accelerated. In February retail
sales declined moderately, but the de­
crease followed an exceptionally large
increase in January. Industrial produc­
tion expanded somewhat in both
months, after a period o f little change,
and nonfarm payroll employment contin­
ued to rise. The unemployment rate
edged down in February to 6.0 percent.
Private housing starts declined further in
January and were more than one-fifth be­
low the rate in the third quarter o f last
year. The rise in producer prices o f fin­
ished goods and in consumer prices was
more rapid in the first month or two o f
1980 than in 1979, despite some easing
in prices of foods. Over the first two
months o f 1980 the rise in the index of
average hourly earnings was somewhat
below the rapid pace recorded in 1979.
The dollar has been in strong demand
in exchange markets since mid-February, largely in response to rising U .S.
interest rates; by early March the tradeweighted value o f the dollar against ma­
jor foreign currencies had returned to
about the level reached at the end o f last
October, and since then, it has risen fur­
ther. Intervention by foreign monetary
authorities to support their currencies
was very heavy in February and the first
half o f March. The U .S. foreign trade
deficit rose sharply in January although
the volume and value o f imports of pe­
troleum were somewhat reduced.
Growth of M -l A and M-1B, which had
remained moderate in January, acceler­

403

404

Federal Reserve Bulletin □ May 1980

ated sharply in February, and growth of
M-2 also quickened. In recent w eeks,
however, monetary growth has sub­
sided. Expansion o f commercial bank
credit picked up in the first two months
of this year from the reduced pace in the
fourth quarter o f 1979. Market interest
rates have risen substantially in recent
weeks. An increase in Federal Reserve
discount rates from 12 to 13 percent was
announced early on February 15, ef­
fective immediately.
On March 14 the President announced
a broad program of fiscal, energy, credit,
and other measures designed to moder­
ate and reduce inflationary forces in a
manner that can also lay the groundwork
for a return to stable economic growth.
Consistent with that objective and with
the continuing intent o f the Federal Re­
serve System to restrain growth in mon­
ey and credit during 1980, the Board of
Governors took the following actions to
reinforce the effectiveness o f the mea­
sures announced in October 1979: (1) A
special credit restraint program; (2) A
special deposit requirement for all lend­
ers on increases in certain types of con­
sumer credit; (3) An increase in the mar­
ginal reserve requirement on managed
liabilities of large member banks; (4) A
special deposit requirement on increases
in managed liabilities of large non­
member banks; (5) A special deposit re­
quirement on increases in total assets o f
money market mutual funds; (6) A sur­
charge o f 3 percentage points on fre­
quent borrowing of large member banks
from Federal Reserve Banks.
Taking account of past and prospec­
tive economic developments, the Feder­
al Open Market Committee seeks to fos­
ter monetary and financial conditions
that will resist inflationary pressures
while encouraging moderate econom ic
expansion and contributing to a sustain­
able pattern o f international transac­
tions. At its meeting on February 4-5,
1980, the Committee agreed that these
objectives would be furthered by growth
o f M-1A, M-1B, M-2, and M-3 from the
fourth quarter o f 1979 to the fourth quar­
ter of 1980 within ranges o f 3V2 to 6, 4 to
6V2, 6 to 9, and 6V2 to 9V2 percent re­
spectively. The associated range for
bank credit was 6 to 9 percent.
In the short run, the Committee seeks
expansion of reserve aggregates consis­
tent with growth over the first half of
1980 at an annual rate of 4V2 percent for
M-1A and 5 percent for M-1B, or som e­
what less, provided that in the period be­
fore the next regular meeting the weekly
average federal funds rate remains with­
in a range of 13 to 20 percent. The Com­
mittee believes that, consistent with this
short-run policy, M-2 should grow at an



annual rate o f about V U percent over the
first half and expansion o f bank credit
should slow in the months ahead to a
pace compatible with growth over the
year as a whole within the range agreed
upon.
If it appears during the period before
the next meeting that the constraint on
the federal funds rate is inconsistent with
the objective for the expansion o f re­
serves, the Manager for Domestic Oper­
ations is promptly to notify the Chairman
who will then decide whether the situa­
tion calls for supplementary instructions
from the Committee.
Votes for this action: Messrs. Volcker, Guffey, Morris, Partee, Rice,
Roos, Schultz, Mrs. Teeters, Messrs.
Winn, and Timlen. Vote against this
action: Mr. Wallich. (Mr. Timlen
voted as alternate member.)

Mr. Wallich dissented from this
action because he favored pursuit of
a more restrictive policy for the peri­
od immediately ahead to assure
maintenance of firm general credit
restraint, especially as a means of
buttressing the new anti-inflation
program.

2. Review of
Continuing Authorizations
This being the first regular meeting
of the Federal Open Market Com­
mittee following the election of new
members from the Federal Reserve
Banks to serve for the year begin­
ning March 1 , 1980, the Committee
followed its customary practice of
reviewing all of its continuing autho­
rizations and directives. The Com­
mittee reaffirmed the authorization
for domestic open market opera­
tions, the foreign currency directive,
and the procedural instructions with
respect to foreign currency opera­
tions in the forms in which they were
currently outstanding.
Votes for these actions: Messrs.
Volcker, Guffey, Morris, Partee,
Rice, Roos, Schultz, Mrs. Teeters,
Messrs. Wallich, Winn, and Timlen.
Votes against these actions: None.
(Mr. Timlen voted as alternate mem­
ber.)

R ecord o f Policy A ctions o f the FOM C

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 lend­
ing of U.S. government securities
held in the System Open Market Ac­
count under such instructions as the
Committee might specify from time
to time. That paragraph had been
added to the authorization on Octo­
ber 7, 1969, on the basis of a judg­
ment by the Committee that such
lending of securities was reasonably
necessary to the effective conduct of
open market operations and to the
implementation of open market poli­
cies, and on the understanding that
the authorization would be reviewed
periodically. At this meeting the
Committee concurred in the judg­
ment of the Manager for Domestic
Operations that the lending activity
in question remained reasonably
necessary and that, accordingly, the
authorization should remain in effect
subject to annual review.

3. Authorization for
Foreign Currency Operations
The Committee reaffirmed the au­
thorization for foreign currency op­
erations, with a technical modifica­
tion. In paragraph 6 , the title
“ Manager for Foreign Operations”
was substituted for “ Manager” the
first time the latter appeared, in rec­
ognition that positions and titles re­
lating to management of the System
Open Market Account had been
changed since the Committee had
last conducted its annual review of
its continuing authorizations and di­
rectives.
Votes for this action: Messrs. Volcker, Guffey, Morris, Partee, Rice,
Roos, Schultz, Mrs. Teeters, Messrs.
Wallich, Winn, and Timlen. Votes
against this action: None. (Mr. Tim­
len voted as alternate member.)
Pursuant to paragraph 3 of the au­
thorization for foreign currency op­
erations, the Committee expressly



authorized the Federal Reserve
Bank of New York, for the System
Open Market Account, to enter into
contracts to purchase foreign ex­
change at specified rates that reflected
market rates of late February and
early March when contract dis­
cussions were initiated and simulta­
neously to transfer the foreign ex­
change so acquired directly to the
Exchange Stabilization Fund (ESF)
at those same rates.
Votes for this action: Messrs. Volcker, Guffey, Morris, Partee, Rice,
Roos, Schultz, Mrs. Teeters, Messrs.
Wallich, Winn, and Timlen. Votes
against this action: None. (Mr. Tim­
len voted as alternate member.)

4. Agreement with
Treasury to Warehouse
Foreign Currencies
At its meeting on January 17-18,
1977, the Committee had agreed to a
suggestion by the Treasury that the
Federal Reserve undertake to
“ warehouse” foreign currencies—
that is, to make spot purchases of
foreign currencies from the ESF and
simultaneously to make forward
sales of the same currencies at the
same exchange rate to the ESF. Pur­
suant to that agreement, the Com­
mittee had agreed in December 1978,
that the Federal Reserve would be
prepared to warehouse for the
Treasury or for the ESF up to $5 bil­
lion of eligible foreign currencies for
periods of up to 12 months. In view
of the U.S. program of issuing notes
denominated in foreign currencies,
the Committee voted at this meeting
to reaffirm the agreement to ware­
house up to $5 billion of foreign cur­
rencies and to drop the 12 -month
limitation on the period such cur­
rencies could be warehoused. It was
understood that the basic agreement
would be subject to annual review.
Votes for this action: Messrs. Volcker, Guffey, Morris, Partee, Rice,
Roos, Schultz, Mrs. Teeters, Messrs.
Wallich, Winn, and Timlen. Votes
against this action: None. (Mr. Timlen
voted as alternate member.)

405

406

Federal Reserve Bulletin □ May 1980

5. Authorization for Domestic
Open Market Operations
On April 16, 1980, the Committee
voted to increase from $3 billion to
$4 V2 billion the limit on changes be­
tween Committee meetings in Sys­
tem Account holdings of U.S. gov­
ernment and federal agency secur­
ities specified in paragraph 1(a) of the
authorization for domestic open
market operations, effective immedi­
ately, for the period ending with the
close of business on April 22, 1980.
Votes for this action: Messrs. Volcker, Guffey, Morris, Partee, Rice, Roos,
Schultz, Mrs. Teeters, Messrs. Wallich,
Winn, and Timlen. Votes against this
action: None. Absent and not voting:
Mr. Solomon. (Mr. Timlen voted as al­
ternate for Mr. Solomon.)

This action was taken on recom­
mendation of the Manager for Do­
mestic Operations. The Manager
had advised that since the March
meeting, large-scale purchases of
securities had been undertaken to
counter the effects on member bank
reserves of a decline in float, an in­
crease in currency in circulation,
and a rise in required reserves asso­
ciated with the System actions an­
nounced on March 14. As a result,
the leeway for further purchases had
been reduced to less than $ 2 0 0 mil­
lion. It appeared likely that addition­
al purchases would be required be­
cause projections indicated a need
for further reserve-providing opera­
tions in the week ahead.

*

*

Records of policy actions taken by the Federal Open Market Committee at each meeting, in
the form in which they will appear in the Board’s Annual Report, are made available a few days
after the next regularly scheduled meeting and ai e later published in the B u l l e t i n .



407

Legal Developments
A m e n d m e n t s to R e g u l a t io n E

The Board o f Governors has adopted amendments
to § 205.9 of Regulation E (Electronic Fund Transfers).
The amendments are intended to facilitate com­
pliance with the requirements of Regulation E, while
not diminishing the consumer protections that it pro­
vides.
Effective May 10, 1980, Regulation E is amended by
adding a footnote to paragraph (b)(l)(iv), amending
paragraph (b)(3), and adding paragraphs (f) and (g) to
§ 205.9, to read as follows:

Section 205.9—Documentation of Transfers

(b) P eriodic sta tem en ts.* * *

***
(iv) For each transfer initiated by the consumer at
an electronic terminal,43 ***

(1) The transfer occurs at an electronic terminal that
(i) Does not permit transfers other than cash with­
drawals by the consumer,
(ii) Cannot make a receipt available to the con­
sumer at the time the transfer is initiated,
(iii) Cannot be modified to provide a receipt at that
time, and
(iv) Was purchased or ordered by the financial in­
stitution prior to February 6, 1980; and
(2) The financial institution mails or delivers a writ­
ten receipt to the consumer that complies with the oth­
er requirements o f paragraph (a) o f this section on the
next business day following the transfer.
(g) D e la y ed effective d a te fo r certain p e rio d ic s ta te ­
m en t requ irem en ts. The failure o f a financial institu­
tion to describe an electronic fund transfer in accord­
ance with the requirements o f paragraphs (b)(l)(iv)
and (v) o f this section shall not constitute a violation o f
the Act or this regulation unless the transfer occurs on
or after August 10, 1980, if, when a transfer involves a
payment to another person, the financial institution,
upon the consumer’s request, and without charge,
promptly provides the consumer with proof that such a
payment was made.

4aA financial institution need not identify the terminal location for de­
posits of cash, checks, drafts, or similar paper instruments at electron­
ic terminals.

A m e n d m e n t s to R e g u l a t io n L

(3)
The total amount o f any fees or charges, other
than a finance charge under 12 CFR 226.7(b)(l)(iv), as­
sessed against the account during the statement period
for electronic fund transfers or the right to make such
transfers, or for account maintenance.

(f) R eceip t requ irem en ts f o r certain cash -dispen sin g
term inals. The failure o f a financial institution to com­
ply with the requirement o f paragraph (a) of this sec­
tion that a receipt be made available to the consumer
at the time an electronic fund transfer is initiated at an
electronic terminal shall not constitute a violation of
the Act or this regulation, provided



The Board o f Governors has adopted final amend­
ments to its existing Regulation L (Management Offi­
cial Interlocks). The amendments include certain clari­
fying and technical changes in the regulations
published originally in July 1979.
Effective May 9, 1980, Regulation L is amended as
set forth below:
Section
212.1 Authority, Purpose, and Scope
212.2 Definitions
212.3 General Prohibitions
212.4 Permitted Interlocking Relationships
212.5 Grandfathered Interlocking Relationships
212.6 Changes in Circumstances
212.7 Effect o f Interlocks Act on Clayton Act
212.8 Enforcement

408

Federal Reserve Bulletin □ May 1980

Section 212.1—Authority, Purpose, and Scope
(a) A u th ority. This Part is issued under the provi­
sions of the Depository Institution Management Inter­
locks Act (“ Interlocks A ct” ) (12 U .S.C . 3201 et seq.).
(b) P urpose an d sc o p e . The general purpose of the
Interlocks Act and this Part is to foster competition by
generally prohibiting a management official of a de­
pository institution or depository holding company
from also serving as a management official of another
depository institution or depository holding company
if the two organizations (1) are not affiliated and (2) are
very large or are located in the same local area. This
Part applies to management officials of State member
banks, bank holding companies, and their affiliates.

Section 212.2—Definitions
For the purpose of this Part, the following defini­
tions apply:
(a) “ Adjacent cities, towns, or villages” means
cities, towns or villages whose borders are within ten
road miles of each other at their closest points. The
property line o f an office located in an unincorporated
city, town, or village is regarded as the boundary line
o f that city, town, or village for the purpose of this
definition.
(b) “ Affiliate” has the meaning given in section 202
of the Interlocks Act. For purposes of section 202, an
individual’s shares include shares of members of his or
her immediate family. For the purpose of section
202(3)(B) of the Interlocks Act, an affiliate relationship
based on common ownership does not exist if the
appropriate Federal supervisory agency or agencies de­
termine, after giving the affected persons the opportu­
nity to respond, that the asserted affiliation appears to
have been established in order to avoid the prohibi­
tions of the Interlocks Act and does not represent a
true commonality of interest between the depository
organizations. In making this determination, the
agencies will consider, among other things, whether a
person, including members of his or her immediate
family, whose shares are necessary to constitute the
group owns a nominal percentage of the shares of one
o f the organizations and the percentage is substantially
disproportionate with that person’s ownership of
shares in the other organization. “ Immediate family”
includes spouse, mother, father, child, grandchild, sis­
ter, brother, or any of their spouses, whether or not
any of their shares are held in trust.



(c) “ Community” means city, town, or village, or
contiguous or adjacent cities, towns, or villages.
(d) “ Contiguous cities, towns, or villages” means
cities, towns or villages whose borders actually touch
each other.
(e) “ Depository holding company” means a bank
holding company or a savings and loan holding compa­
ny (as more fully defined in section 202 o f the Inter­
locks Act) having its principal office located in the
United States.
(f) “ Depository institution” means a commercial
bank (including a private bank), a savings bank, a trust
company, a savings and loan association, a building
and loan association, a homestead association, a coop­
erative bank, an industrial bank, or a credit union,
chartered in the United States and having a principal
office located in the United States. Additionally, a
United States office, including a branch or agency, of a
foreign commercial bank is a “ depository institution.”
(g) “ Depository organization” means a depository
institution or a depository holding company.
(h) “ Management official” means an em ployee or
officer with management functions (including a branch
manager), a director (including an advisory director or
honorary director), a trustee of a business organization
under the control o f trustees (e.g., a mutual savings
bank), or any person who has a representative or nom­
inee serving in any such capacity. “ Management offi­
cial” does not mean a person w hose management
functions relate exclusively to the business of retail
merchandising or manufacturing, for the purposes of
section 212.3(c) o f this Part, and does not mean a per­
son whose management functions relate principally to
the business outside the United States of a foreign
commercial bank. “ Management official” does not in­
clude persons described in the provisos o f section
202(4) of the Interlocks Act.
(i) “ Office” o f a depository institution means a
principal office or a branch office located in the United
States, but does not include a representative office of a
foreign commercial bank, an electronic terminal, or a
loan production office. “ Office” o f a depository hold­
ing company means its principal corporate headquar­
ters.
(j) “ Person” means a natural person, corporation,
or other business.
(k) “ Representative or nominee” means a person

Legal D evelopm ents

who serves as a management official and has an ex­
press or implied obligation to act on behalf o f another
person with respect to management responsibilities.
Whether a person is a “ representative or nominee”
depends upon the facts in individual cases, and the ap­
propriate Federal supervisory agency or agencies will
determine, after giving the affected persons an oppor­
tunity to respond, whether a person is a “ representa­
tive or nom inee.” Certain relationships, including
family, employment, or agency relationships, or the
ability and exercise o f ability by a shareholder of a de­
pository organization to elect a director may be evi­
dence o f such an express or implied obligation by the
management official to another person. For the pur­
poses of this definition, “ person” shall include only
natural persons.

409

both are located in the same SMSA and either o f the
depository institution affiliates has total assets o f $20
million or more; or (3) an office o f one o f the deposi­
tory organizations is located in the same SMSA as an
office of a depository institution affiliate o f the other
and either the depository organization or the deposi­
tory institution affiliate has total assets o f $20 million
or more.
(c)
M ajor A ss e ts . Without regard to location, a
management official o f a depository organization with
total assets exceeding $ 1 billion or a management offi­
cial o f any affiliate o f the greater than $1 billion deposi­
tory organization may not serve at the same time as a
management official o f a nonaffiliated depository or­
ganization with total assets exceeding $500 million or a
management official o f any affiliate o f the greater than
$500 million depository organization.

(1)
“ Total assets” means assets measured on a con­
solidated basis as of the close of the organization’s last
fiscal year. The total assets of a depository holding
company include the total assets o f its depository in­
Section 212.4—Permitted Interlocking
stitution affiliates for the purposes of section 212.3(b)
Relationships
of this Part, and include the total assets o f all of its
affiliates for purposes of section 212.3(c) of this Part.
(a) In terlockin g rela tio n sh ip s p e r m itte d by sta tu te .
Total assets of a United States branch or agency of a
The prohibitions o f section 212.3 do not apply in the
foreign commercial bank means total assets of such
branch or agency itself exclusive of the assets of the
case of any one or more o f the following organizations
other offices o f the foreign commercial bank.
or their subsidiaries:
(1) a depository organization that does not do busi­
ness within the United States except as an incident to
(m) “ United States” means any State of the United
its activities outside the United States;
States, the District o f Columbia, any territory of the
(2) a corporation operating under section 25 or
United States, Puerto Rico, Guam, American Samoa,
25(a) of the Federal Reserve Act (“ Edge Corpora­
or the Virgin Islands.
tions” and “ Agreement Corporations” );
(3) a depository organization that has been placed
formally in liquidation, or that is in the hands o f a re­
ceiver, conservator, or other official exercising a simi­
Section 212.3—General Prohibitions
lar function;
(4) a credit union being served by a management
(a) C om m un ity. A management official of a deposi­
official of another credit union;
tory organization may not serve at the same time as a
management official of another depository organiza­
(5) a State-chartered savings and loan guaranty cor­
poration; or
tion not affiliated with it if: (1) offices of both are lo­
(6) a Federal Hom e Loan Bank or any other bank
cated in the same community; (2) offices of depository
institution affiliates of both are located in the same
organized solely for the purpose o f serving depository
institutions (commonly referred to as “ bankers’
community; or (3) an office of one of the depository
organizations is located in the same community as an
banks”) or solely for the purpose o f providing secu­
office of a depository institution affiliate of the other.
rities clearing services and services related thereto for
depository institutions, securities companies, or both.
(b) SM SA . A management official of a depository
organization may not serve at the same time as a man­
(b) Interlocking relation sh ips p e r m itte d by B o a rd
agement official o f another depository organization not
order. A management official or a prospective manage­
affiliated with it if: (1) offices o f both are located in the
ment official o f a State member bank, bank holding
company, or affiliate of either may apply for the
same
Standard
Metropolitan
Statistical Area
(“ SM SA” ) and either has total assets o f $20 million or
Board’s prior approval to enter into a relationship in­
volving another depository organization that would
more; (2) offices of depository institution affiliates of



410

Federal Reserve Bulletin □ May 1980

otherwise be prohibited under section 212.3 of this
Part, if the relationship falls within any of the classifi­
cations enumerated in this paragraph. If the relation­
ship involves a depository organization subject to the
supervision of another Federal supervisory agency as
specified in section 207 o f the Interlocks Act, the man­
agement official or prospective management official
must also obtain the prior approval of that other
agency.
(1) O rgan ization in low incom e a rea; m inority or
w om en's organ izatio n . A person may serve at the
same time as a management official of two or more de­
pository organizations (or affiliates thereof) if one of
the depository organizations is (A) located, or to be
located, in a low income or other economically de­
pressed area, or (B) controlled or managed by persons
who are members o f minority groups or by women,
subject to the following conditions: (i) The appropriate
Federal supervisory agency or agencies determine the
relationship to be necessary to provide management or
operating expertise to the organization specified in (A)
or (B) above; (ii) no interlocking relationship permitted
by this paragraph shall continue for more than five
years; and (iii) other conditions in addition to or in lieu
o f the foregoing may be imposed by the appropriate
Federal supervisory agency or agencies in any specific
case.
(2) N ew ly-ch a rtere d o rgan ization . A person may
serve at the same time as a management official o f two
or more depository organizations if one o f the deposi­
tory organizations (or an affiliate thereof) is a newlychartered organization, subject to the following condi­
tions: (i) The appropriate Federal supervisory agency
or agencies determine the relationship to be necessary
to provide management or operating expertise to the
newly-chartered organization; (ii) no interlocking rela­
tionship permitted by this paragraph shall continue for
more than two years after the newly-chartered organi­
zation commences; and (iii) other conditions in addi­
tion to or in lieu of the foregoing may be imposed by
the appropriate Federal supervisory agency or
agencies in any specific case.
(3) C onditions en dan gerin g sa fe ty or so u n d n ess. A
person may serve at the same time as a management
official of two or more depository organizations (or af­
filiates thereof) if the primary Federal supervisory
agency o f one of the depository organizations believes
that such depository organization faces conditions en­
dangering the organization’s safety or soundness, sub­
ject to the following conditions: (i) The appropriate
Federal supervisory agency or agencies determine the
relationship to be necessary to provide management or
operating expertise to the organization facing condi­



tions endangering safety or soundness; and (ii) other
conditions in addition to or in lieu o f the foregoing may
be imposed by the appropriate Federal supervisory
agency or agencies in any specific case.
(4) O rgan ization sp o n so rin g cred it union. A man­
agement official o f a depository organization or its af­
filiate may serve at the same time as a management
official o f a Federally-insured credit union that is spon­
sored by the depository organization or its affiliate pri­
marily to serve em ployees o f the depository organiza­
tion.
(5) L o ss o f m a n a g em en t officials due to ch an ges in
circu m sta n ces. If a depository organization experi­
ences a change in circumstances described in para­
graphs (a)(1), (b)(1), or (b)(2) of section 212.6, and the
change requires the termination o f service at the de­
pository organization o f 50 per cent or more o f the or­
ganization’s directors or o f 50 per cent or more o f the
total management officials o f the depository organiza­
tion, such management officials may continue to serve
in excess o f the time periods provided in paragraphs
(a)(2), (b)(1), and (b)(2) o f section 212.6, provided that:
(i) The appropriate Federal supervisory agency or
agencies determines that the service by such manage­
ment officials is necessary to provide management or
operating expertise; (ii) each management official so
affected agrees to sever the prohibited interlocking
relationship no later than 30 months after the change in
circumstances; (iii) the depository organization sub­
mits a proposal for the orderly termination o f service
by such management officials over the time period pro­
vided; and (iv) other conditions in addition to or in lieu
o f the foregoing may be imposed by the appropriate
Federal supervisory agency or agencies in any specific
case.

Section 212.5—Grandfathered Interlocking
Relationships
A person whose interlocking service in a position as
a management official o f two or more depository or­
ganizations began prior to Novem ber 10, 1978, and
was not immediately prior to that date in violation of
section 8 of the Clayton Act (15 U .S.C . § 19) is not
prohibited from continuing to serve in such inter­
locking positions until Novem ber 10, 1988, except as
provided in section 212.6(a) of this Part.

Section 212.6—Changes in Circumstances
(a)(1) G ra n d fa th ered in terlocks. If a person’s serv­
ice as a management official is grandfathered under

Legal D evelopm ents

section 212.5 o f this Part, the person must terminate
such service if the service becomes prohibited by the
occurrence of any o f the following changes in circum­
stances:
(1) A cq u isitio n s , m e rg e rs , a n d co n so lid a tio n s. One
o f the depository organizations involved in the inter­
locking relationship acquires or is acquired by, is
merged into or with, or is consolidated with another
depository organization for which prior to the transac­
tion the person could not have served as a manage­
ment official under section 212.3; or
(ii)
B ranching. One of the depository organizations
involved in the grandfather interlocking relationship,
or its depository institution affiliate, establishes an ini­
tial office in the same community as the other deposi­
tory organization, or its depository institution affiliate,
or both o f the depository organizations, or their de­
pository institution affiliates, establish offices in a com­
munity or SMSA where neither previously had an
office.
(2) G race p erio d . If a person’s grandfathered serv­
ice becomes prohibited under paragraph (a)(1) of this
section, the person may continue to serve as a man­
agement official of all organizations involved in the
prohibited interlocking relationship through the date of
the next regularly scheduled annual shareholders’
meeting of any of the organizations involved, which­
ever occurs last, unless the appropriate Federal super­
visory agency or agencies take affirmative action in an
individual case to establish a shorter period. However,
the person may request the appropriate agency or
agencies to grant an additional extension of time to
continue the interlocking relationship, but the prohib­
ited interlocking relationship may not continue for
more than 15 months from the date of the change in
circumstances. If the change in circumstances oc­
curred prior to [May 9, 1980], the change will be con­
sidered to have occurred on [May 9, 1980] for pur­
poses of this paragraph.
(b)(1) N o n -g ra n d fa th ered in terlocks; involuntary
changes; g ra ce p erio d . If a person’s service as a man­
agement official is not grandfathered under section
212.5 and becom es prohibited as a result o f an increase
in the asset size of an organization due to natural
growth, or as a result o f a change in SMSA or commu­
nity boundaries or the designation of a new SMSA, the
person has 15 months from the date of the change in
circumstances to comply with this Part, unless the ap­
propriate Federal supervisory agency or agencies take
affirmative action in an individual case to establish a
shorter period. If the change in circumstances oc­
curred prior to [May 9, 1980], the change will be con­



411

sidered to have occurred on [May 9, 1980] for pur­
poses of this subparagraph.
(2)
N on-grandfathered interlocks; voluntary changes;
g ra ce p e rio d . If a person’s service as a management
official is not grandfathered under section 212.5
of this Part and becom es prohibited as a result of
an acquisition, merger, consolidation, or the estab­
lishment of an office, the person may continue to serve
as a management official o f all organizations involved
in the prohibited interlock through the date o f the next
regularly scheduled annual shareholders’ meeting of
any o f the organizations involved, whichever occurs
last, unless the appropriate Federal supervisory agen­
cy or agencies take affirmative action in an individual
case to establish a shorter period. However, the per­
son may request the appropriate agency or agencies to
grant an additional extension o f time to continue the
interlocking relationship, but the prohibited inter­
locking relationship may not continue for more than 15
months from the date o f the change in circumstances.
If the change in circumstances occurred prior to
[May 9, 1980], the change will be considered to have
occurred on [May 9, 1980] for purposes of this para­
graph.

Section 212.7—Effect of Interlocks Act on
Clayton Act
The Board of Governors o f the Federal Reserve Sys­
tem regards the provisions o f the first three paragraphs
o f section 8 of the Clayton Act (1 5 U .S .C . 19) to have
been supplanted by the revised and more comprehen­
sive prohibitions on management official interlocks be­
tween depository organizations in the Interlocks Act.

Section 212.8—Enforcement
The Board of Governors o f the Federal Reserve Sys­
tem administers and enforces the Interlocks Act with
respect to State member banks, bank holding com­
panies, and their affiliates, and may refer the case o f a
prohibited interlocking relationship involving any such
organization, regardless o f the nature o f any other or­
ganization involved in the prohibited relationship, to
the Attorney General o f the United States to enforce
compliance with the Interlocks Act and this Part. If an
affiliate of a State member bank or bank holding com­
pany is primarily subject to the regulation o f another
Federal supervisory agency, then the Board does not
administer and enforce the Interlocks Act with respect
to that affiliate.

412

Federal Reserve Bulletin □ May 1980

presented more conspicuously than the rest of the no­
tice by, for example, bold-faced type, larger type size,
1.
The Board of Governors adopted on March 14, or contrasting color. Language similar to the follow ­
ing, or modified to reflect the creditor’s individual
1980, a consumer credit restraint program that re­
quires certain creditors that extend certain types of
credit plan, may be used:
consumer credit, including open-end credit, to main­
tain a special deposit with the Federal Reserve Banks.
“ WARNING: Continued use o f your account on or
after [effective date of change] will result in stricter
Many creditors believe that to best restrain the growth
terms.
of open-end consumer credit they will have to modify
the terms of existing accounts. Because the rules that
govern how and when account terms can be changed
You have TWO OPTIONS:
vary from state to state, and because consumer accountholders are insufficiently protected in many
(1) You may stop making charges on your account
before [effective date of change] and pay off under the
states, the Board is adding a new section to Subpart A
to establish national uniformity.
existing terms described in this notice all or any part of
Effective April 2, 1980, Subpart A of Credit Re­
what you owe us on that date. You may continue to
straint is amended by adding a new section as follows:
use your account on or after that date, but if you do so,
the new terms will apply as explained in option (2) be­
low.

A m e n d m e n t s to C r e d it R e s t r a in t

Section 229.6—Change in Terms of Open-End
Credit Accounts
(a) Notwithstanding the terms of any open-end
credit agreement or the provision of any other law, a
covered creditor, with respect to its open-end credit
accounts, may (1) impose or increase any finance or
other charge, (2) change the method of computing the
balance upon which charges are imposed, or (3) in­
crease the required minimum periodic payment, if the
following two conditions are met. First, the covered
creditor shall mail or deliver a written notice of the
change to each affected consumer accountholder at
least 30 days before the effective date of the change.
Second, the covered creditor shall permit each af­
fected consumer accountholder to repay, under the
existing account terms, any debt incurred prior to the
effective date of the change, unless the accountholder
incurs additional debt on or after that date or other­
wise assents in writing to the changes.
(b)(1) This section does not authorize a covered
creditor to impose a rate of interest or finance charge
in excess of the maximum permitted by law.
(2)
This section does not govern any change in the
terms specified in paragraph (a) of this section if the
covered creditor began mailing or delivering notice of
that change to affected consumer accountholders be­
fore March 14, 1980.
(c)(1) The notice required by this section shall clear­
ly set forth the new term(s), the corresponding existing
term(s), and the effective date of the change; shall ap­
pear on a single document that contains no other infor­
mation except the changed account agreement or other
material directly related to the change; and shall be in
plain language.
(2)
The notice also shall clearly explain the two op­
tions available to the consumer. The options shall be



OR
(2) You may make charges on your account on or
after [effective date of change], in which case the new
terms described in this notice will apply to what you
then owe us and to future charges.”

2.
The provisions of the Credit Restraint Regulation
require a covered creditor to maintain a special non­
interest bearing deposit with the Federal Reserve on
the outstanding covered credit during a month that ex­
ceeds the creditor’s base amount o f covered credit. To
prevent undue hardship to creditors that experience
seasonal fluctuation, the Board has amended Subpart
A of its credit restraint regulation.
Effective March 14, 1980, Subpart A is amended as
follows:

Section 229.2—Definitions

(b) “ B ase” means either
(1) a constant amount, which is the larger of $2 mil­
lion or the amount o f covered credit outstanding as of
the close of business on the base date; or
(2) a variable amount, which is the larger of $2 mil­
lion or a seasonally projected amount determined by
application of a factor each month to the amount of
covered credit outstanding in the same month in the
preceding year. This factor is based on a comparison
of the covered credit outstanding on the base date and
the covered credit outstanding in the same date in
March 1979, expressed as a ratio, which is progres­

Legal D evelopm ents

sively diminished by one-twelfth each month. The
base for each month after March 14, 1980 equals the
factor described above, multiplied by the amount of
covered credit outstanding in the corresponding month
in the year before. The formula for the base in any
month “ i” is:
Base for any month “ i” , 1980 =
Credit outstanding on base date
_
Credit outstanding on same date, 1979
12 - n \
12

j

j

x

j x
I

Credit outstanding in
same month “ i” , 1979

where “ n” is a variable representing the number of
months after March, 1980. (Therefore, “ n” equals one
in April, “ n” equals two in May, and it increases pro­
gressively in each succeeding month up to 12 in
March, 1981.)
For purposes of filing base and monthly reports as re­
quired by § 229.3, a creditor must choose either the
constant amount base or the variable amount base and
may not vary that choice.

Section 229.3—Reports
(a)(1) Each covered creditor with $2 million or more
of covered credit outstanding as of the base date that
selects the constant amount base described in
§ 229.2(b)(1), and certain covered creditors as may be
required by the Board, shall file a base report by
April 1, 1980. The base report shall state the amount
o f the covered creditor’s base.
(a)(2) Each covered creditor with $2 million or more
o f covered credit outstanding as of the base date that
selects the variable amount base described in
§ 229.2(b)(2) shall file a base report by April 29, 1980.
Each covered creditor with covered credit outstanding
in excess of $2 million on a average basis during any
month after the base date that selects the variable
amount base shall file a base report together with the
monthly report required in paragraph (a)(3) of this sub­
section. The base report shall state the following: (i)
the amount of covered credit outstanding on the base
date; (ii) the amount of covered credit outstanding on
the same date (or other period) in 1979; (iii) the aver­
age amount of covered credit outstanding during each
of the twelve months (on a daily average basis if such
data are available) beginning April, 1979 and ending
March, 1980; (iv) the variable amount base for each of
the twelve months beginning April, 1980 and ending
March, 1981.




413

(a)(3) A creditor with a base of $2 million or more as
indicated on its base report or with covered credit out­
standing in excess of $2 million on an average basis
during any calendar month, shall submit monthly re­
ports. The initial monthly report shall be filed by
May 12, 1980, for the period March 15 through April 30,
1980; thereafter, the monthly report shall be filed for
each full month by the second Monday of the following
calendar month. The monthly report shall include the
average amount of covered credit outstanding during
the month (on a daily average basis if such data are
available) and the amount by which that number ex­
ceeds the creditor’s base.

Section 229.4—Maintenance of Special Deposit
(a) Each covered creditor shall hold a non-interest
bearing special deposit equal to 15 per cent of the
amount by which the average amount of its covered
credit outstanding during the month exceeds its base.
The corresponding period during which the special de­
posit shall be maintained begins on the fourth Thurs­
day of the calendar month following the month for
which the report was filed and continues through the
W ednesday before the fourth Thursday of the next cal­
endar month. The special deposit shall be maintained
in collected funds in the form of U .S. dollars.

3. On April 14, 1980, the Board adopted two techni­
cal amendments to its April 2 amendment. The first
makes clear that the change in terms requirements ap­
ply not only to open-end credit accounts where the
consumer may pay the balance due in installments
subject to a finance charge, but also to open accounts
(such as so-called 30-day accounts referred to at 45 FR
17928) where the consumer may make credit purchas­
es or obtain credit advances from time to time, yet is
expected to pay in full upon being billed.
The second technical amendment clarifies that the
change in terms provision does not affect the maxi­
mum finance charge rate permitted by state law or, for
depository institutions, the maximum rate allowed by
Title V of the Depository Institutions Deregulation and
Monetary Control Act o f 1980 (Public Law 96-221).
Effective April 14, 1980, Subpart A of Credit Re­
straint, Sections 229.6(a) and (b)(1) are amended as
follows:

(a)
Notwithstanding the terms of any credit agree­
ment or the provision of any other law, a covered cred­
itor, with respect to its open-end or other open credit

414

Federal Reserve Bulletin □ May 1980

accounts, may (1) impose or increase any finance or
other charge, (2) change the method of computing the
balance upon which charges are imposed, or (3) in­
crease the required minimum periodic payment, if the
following two conditions are met.

(b)(1) This section does not authorize a covered
creditor to impose a rate of interest or finance charge
in excess of the maximum permitted by state law, nor
does it authorize a depository institution (as defined in
section 19(b) of the Federal Reserve Act as amended
by the Monetary Control Act of 1980) to impose a rate
of interest or finance charge in excess of the maximum
permitted by federal law.

A m e n d m e n t s To R u l e s 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 of Governors has amended its Rules Re­
garding Delegation of Authority to delegate to the Re­
serve Banks the authority to grant an additional grace
period for the termination of management official inter­
locks that become prohibited as a result of certain
changes in circumstances as provided in the Board’s
regulations (12 C.F.R. Part 212) issued under the D e­
pository Institution Management Interlocks Act (12
U .S.C . § 3201 et seq.). This action is intended to expe­
dite reviews of requests for an extended grace period
provided in the regulations.
Effective May 9, 1980, Rules Regarding Delegation
of Authority is amended by adding a new paragraph
(f)(48) as follows:

cial relationships), to grant time for compliance with
§ 212 of up to an aggregate of 15 months from the date
on which the change in circumstances as specified in
that section occurs, if the granting of the additional
time appears to be appropriate to avoid undue disrup­
tion of the annual shareholders’ meetings of the de­
pository organizations involved in the management
interlocks.

I n t e r p r e t a t io n o f R e g u l a t io n D

The Board of Governors has adopted an inter­
pretation of section 19(b)(8)(D) of the Federal Reserve
Act (12 U .S.C . § 461 (b)), as amended by section 103
of the Monetary Control Act o f 1980 (Title I o f P. L.
96-221). This interpretation applies to the reserves that
will be required of any bank that was a member bank
in the Federal Reserve System on July 1, 1979, and
which subsequently withdraws from membership, and
to banks involved in mergers. In addition, this inter­
pretation discusses the availability of Federal Reserve
services to banks maintaining reserves.
Effective April 21, 1980, Regulation D is amended
by adding a new section 204.120 as follows:

Section 204.120—Implementation of Monetary
Control Act of 1980.

The Monetary Control Act o f 1980 (Title I of P. L.
96-221) (“ A ct” ) provides that any bank that was a
member bank on July 1, 1979, and which withdraws
from membership in the Federal Reserve System dur­
ing the period beginning on July 1, 1979, and ending on
March 30, 1980, is required to maintain reserves in an
amount equal to the amount of reserves it would have
Section 265.2—Specific Functions Delegated to
been required to maintain if it had been a member bank
on March 31, 1980. The Act further provides that any
Board Employees and to Federal Reserve
bank that withdraws from membership in the Federal
Banks.
Reserve System on or after March 31, 1980, shall
maintain reserves in the same amount as member
*
*
*
*
*
banks. The Board o f Governors has established cer­
(f)
Each Federal Reserve Bank is authorized as to a tain policies and procedures to implement these provi­
sions.
member bank or other indicated organization for
which the Reserve Bank is responsible for receiving
applications or registration statements; as to its offi­
1.
D eterm in ation o f D a te o f W ithdraw al fr o m M em ­
cers under subparagraph (23) of this paragraph; and as
bersh ip. Any bank that was a member bank, but which
to its own facilities under subparagraph (26) of this
withdrew from memebership in the Federal Reserve
System prior to July 1, 1979, as determined below, will
paragraph:
be subject to Federal reserve requirements on Septem­
ber 1, 1980, the effective date of the remaining provi­
sions of the Monetary Control Act. Such banks will be
(48) Under the provisions of § 212.6 of this chapter
entitled to an eight-year phase-in of reserve require­
(Regulation L relating to changes in circumstances re­
ments. A bank that is determined to have withdrawn
quiring termination of interlocking management offi­
from membership on July 1, 1979, or thereafter, is sub­




Legal D evelopm ents

ject to Federal reserve requirements pursuant to Regu­
lation D in the same manner as a member bank.
The date of withdrawal from membership in the Sys­
tem for a State member bank will be determined by the
date on which the Federal Reserve Bank received no­
tice o f the decision of the bank’s board of directors
(and shareholders where State law requires) to with­
draw from membership.1 With regard to a national
bank, the date of withdrawal is the date on which such
national bank received a State charter whether by con­
version, merger, or consolidation.
In recognition of the fact that there may have been
individual bank circumstances that delayed an individ­
ual bank’s withdrawal or acquisition of a State charter,
the Board consistent with the legislative history of sec­
tion 103 of the Act, will consider evidence from a
former member bank that it made an unambiguous ir­
revocable decision to withdraw from membership be­
fore July 1, 1979, and, thus, is entitled to an eight-year
phase-in of required reserves. A bank that was a State
member bank whose directors (and shareholders
where State law requires) voted to leave the System
prior to July 1, 1979, or a bank that was a national bank
whose shareholders voted to convert to a State charter
(including conversion by merger or consolidation) pri­
or to July 1, 1979, and was not a member bank on
March 31, 1980, may present the Board with clear,
unambiguous documentation of such actions. Upon re­
view o f such information, the Board may then deter­
mine that the date that an individual bank made such
an irrevocable decision is its date of withdrawal from
membership. Any bank that believes that it meets
these criteria, should submit full documentation to the
Board as soon as possible, but in any event, no later
than June 16, 1980. Such submissions should be ad­
dressed to Theodore E. Allison, Secretary of the
Board, Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue, N .W .,
Washington, D.C. 20551.
2. R e se rv e R equ irem en ts o f F orm er M em b er B anks.
The Board has determined, with respect to banks that
withdrew from the System (other than by merger or
consolidation) on or after July 1, 1979, and ceased
maintaining reserves pursuant to Regulation D prior to
March 31, 1980, to waive all Federal reserve require­
ments for the period from March 31, 1980, through the
maintenance period ending August 27, 1980.2 Such

1. See 126 Cong. Rec. E 1619 (daily ed. March 28, 1980) (remarks of
Rep. Brademas and Rep. Reuss); 126 Cong. Rec. S 3176 (daily ed.
March 28, 1980) (remarks of Senators Bayh, Proxmire and Lugar).
2. Such banks will continue to be subject to the special deposit
requirement on managed liabilities pursuant to Subpart C of 12 CFR
Part 229.




415

banks will be required to maintain currently prescribed
levels o f Federal reserves commencing with the re­
serve maintenance period that begins on August 28,
1980. A former member bank may commence main­
taining reserves with a Federal Reserve Bank beginning
on or after June 5, 1980, in order to have sufficient bal­
ances available for Federal reserve requirement pur­
poses for the August 28-Septem ber 3, maintenance pe­
riod. A former member bank that maintains full
reserve balances on or after June 5, 1980, will receive
access to all System services.
The Board recognizes that certain former member
banks may experience hardships by being subjected to
Federal reserve requirements in the same manner as a
member bank, notwithstanding the delayed effective
date that has been established. In order to accom mo­
date former members banks that may incur significant
hardship by maintaining full reserve balances by the
maintenance period beginning August 28, the Board
will consider granting limited extensions beyond that
date in extraordinary circumstances. A former mem­
ber bank that placed its Federal reserve balances, pri­
or to March 31, 1980, in assets that have declined sig­
nificantly in value and that cannot be converted to
cash before August 28, 1980, without incurring signifi­
cant losses may be granted a limited extension o f time
by the Board to maintain full Federal reserve require­
ments. A former member bank requesting such an ex­
tension should submit information concerning such
placements of reserve balances withdrawn by July 15,
1980. Such submissions should be addressed to Theo­
dore E. Allison, Secretary of the Board, Board o f G ov­
ernors o f the Federal Reserve System , 20th Street and
Constitution Avenue, N .W ., Washington, D.C. 20551.
Any bank that maintained Federal reserves pursuant
to Regulation D during the maintenance period that in­
cluded March 31, 1980, and any member bank that
withdraws from the System (other than by merger or
consolidation) on or after March 31, 1980, is required
to maintain Federal reserves against its deposits in the
same manner as a member bank.
3.
M erg ers. Banks that withdraw from membership
due to mergers or consolidations on or after July 1,
1979, will be required to maintain Federal reserves in
the same manner as a member bank on the proportion
o f their deposits attributable to former member banks.
The date of a merger will be determined in accordance
with the procedures established in item 1 above.
Where a nonmember bank merges or consolidates
on or after July 1, 1979, with a member bank and the
surviving bank is a nonmember bank, the bank is re­
quired to maintain Federal reserves in the same man­
ner as a member bank on a proportion o f its deposits
attributable to the absorbed member bank. This pro­
portion will be the ratio that daily average deposits of

416

Federal Reserve Bulletin □ May 1980

the absorbed member bank were to the daily average
deposits of the combined banks during the reserve
computation period immediately preceding the date o f
the merger. For example, if during the last full compu­
tation period before the date of a merger or consoli­
dation between a member bank and a nonmember
bank, the ratio of member bank daily average deposits
to the daily average total deposits of the merged entity
is 25 per cent, then the surviving nonmember bank will
maintain Federal reserve requirements in the same
manner as a member bank on 25 per cent of its depos­
its. The portion of the surviving bank’s deposits repre­
senting nonmember bank deposits, that is, 75 per cent,
will be subject to Federal reserve requirements on an
eight-year phase-in schedule under the Act.
A ratio also will be computed for vault cash, and
only the proportion of the vault cash attributable to the
absorbed member bank will be permitted to be used in
determining the amount of reserve balances required
to be held at the Federal Reserve. For example, if dur­
ing the last full computation period before the date of a
merger or consolidation between a member bank and a
nonmember bank, the ratio of member bank daily av­
erage vault cash to the daily average total vault cash of
the merged entity is 35 per cent, then the surviving
nonmember bank will take that proportion of its vault
cash into account in computing the reserve balance re­
quired to be maintained against its deposits attribut­
able to the absorbed member bank.
For mergers or consolidations taking place between
July 1, 1979, and August 27, 1980, where the surviving
bank is a nonmember bank, Federal reserves will be
required to be maintained on that portion of the bank’s
deposits representing member bank deposits during
the maintenance period beginning August 28, 1980.
Mergers and consolidations that take place on or af­
ter March 31, 1980, between a member and nomember
bank that was engaged in business on July 1, 1979,
where a member bank is the surviving bank will be
treated on a proportionate basis for reserve purposes.
H owever, only the amount of deposits and vault cash
o f the nonmember bank outstanding on a daily average
basis during the computation period immediately pre­
ceding the date of the merger will be eligible for an
eight-year phase-in of reserves. The balance of the de­
posits of the surviving member bank will continue to
be subject to member bank reserve requirements.
Mergers and consolidations involving two member
banks will continue to be subject to the Board’s cur­
rent policy of a two-year transitional phase-in of in­
creased reserve requirements.

tory clearing balances. However, a nonmember bank
that is maintaining reserves due to the acquisition of a
member bank will have access to services if it main­
tains Federal reserves pursuant to Regulation D
against all of its deposits.

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

Orders Under Section 3 o f Bank Holding Com­
pany A ct

Ada Banc Shares, Inc.
Ada, Minnesota
O rder A p p ro vin g F o rm a tio n o f a B ank H oldin g
C om pan y

Ada Banc Shares, Inc., Ada, Minnesota, has applied
for the Board’s approval under section 3(a)(1) of the
Bank Holding Company Act (12 U .S.C . § 1842(a)(1))
of formation of a bank holding company by acquiring
93.9 percent of the voting shares of The Ada National
Bank, Ada, Minnesota (“ Bank” ).
N otice o f 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 o f the factors set forth in
section 3(c) of the Act.
Applicant, a nonoperating corporation with no sub­
sidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Bank. Upon ac­
quisition of Bank, Applicant would control the 148th
largest commercial bank in Minnesota, with 0.09 per­
cent of the total deposits in commercial banks in the
state.1
Bank holds deposits o f $17.7 million, representing
approximately 43.5 percent of the total deposits in
commercial banks in the Ada banking market2 and is
the largest of four banks in the relevant banking mar­
ket. This proposal involves a restructuring of Bank’s
ownership from individuals to a corporation owned by
those same individuals. Applicant’s principals are also
principals of another bank, Norman County State
Bank, Hendrum, Minnesota, located in a separate
banking market. Accordingly, it appears from the facts
o f record that consummation o f the proposal would
not result in any adverse effects upon competition in
any relevant area. Thus, competitive considerations
4.
A c c e s s to S ervices. Any bank maintaining full are consistent with approval.
Federal reserves pursuant to the above policies will be
1. All banking data are as of December 31, 1978.
permitted access to all Federal Reserve services, ex­
2. The Ada banking market is approximated by the eastern twocept that Federal Reserve Banks may require satisfac­
thirds of Norman County, Minnesota.




Legal Developm ents

Where principals of an applicant are engaged in op­
erating a chain of banking organizations, the Board, in
addition to analyzing the bank holding company pro­
posal before it, also considers the total chain and ana­
lyzes the financial and managerial resources and future
prospects of the chain within the context of the
Board’s multi-bank holding company standards.
Based upon such analysis in this case, the financial and
managerial resources and future prospects of Appli­
cant, Bank, and the affiliated bank appear to be satis­
factory. While Applicant will incur debt in connection
with the proposal, it appears that Applicant will be
able to service the debt without adversely affecting the
financial condition of Bank. Accordingly, financial and
managerial factors are consistent with approval of the
application.
Since acquiring control of Bank in 1978, Applicant’s
principals have expanded Bank’s lending to its com ­
munity. Following consummation of the transaction,
Applicant intends to assist Bank in instituting new and
improved customer services, as well as providing
drive-in facilities for Bank’s customers. Consequently,
convenience and needs factors lend some weight to­
ward approval of this application. Based upon the
foregoing and other considerations reflected in the rec­
ord, it is the Board’s judgment that the proposed ac­
quisition is in the public interest and that the appli­
cation should be approved.
On the basis of the record, the application is ap­
proved for the reasons summarized above. The trans­
action shall not be consummated before the thirtieth
calendar day following the effective date of this Order
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board, or by the Federal Reserve Bank of
Minneapolis pursuant to delegated authority.
By order of the Board of Governors, effective
April 7, 1980.
Voting for this action: Vice Chairman Schultz and Gover­
nors Partee, and Teeters. Voting against this action: Gov­
ernor Rice, Absent and not voting: Chairman Volcker and
Governor Wallich.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D e p u ty S e creta ry o f the B oard.

Dissenting Statement of Governor Rice
I would deny the application of Ada Banc Shares,
Inc. to becom e a bank holding company by acquiring
The Ada National Bank (“ Bank” ). In assessing the
competitive effects of this proposal, the Board found
that Bank was located in a separate banking market
from its affiliated bank, Norman County State Bank,
Hendrum, Minnesota (“ Norman Bank” ), and there­



417

fore that consummation o f the proposal would not re­
sult in any adverse effects upon competition in any
relevant area.
I believe, however, that Bank and Norman Bank are
located in the same banking market, the Norman
County banking market, which is approximated by
Norman County, Minnesota. There are seven banks
located within the Norman County banking market
and Bank and Norman Bank are located 16 miles
apart, with no intervening banks. Thus, despite the
fact that there presently exists little overlap in the two
banks’ service areas, it appears that the two banks
may be considered reasonably equivalent banking al­
ternatives for customers in Norman County. Bank
holds approximately 28.8 percent o f the total deposits
in commercial banks in the Norman County banking
market and Norman Bank holds 10.8 percent o f mar­
ket deposits. Together, the two banks control 39.6
percent of market deposits. Bank’s acquisition by Ap­
plicant’s principals in 1978 resulted in the elimination
of significant competition that existed at that time be­
tween Bank and Norman Bank, increased the concen­
tration of banking resources within the relevant bank­
ing market, and eliminated an independent banking
competitor in the market. Convenience and needs
factors, although lending some weight toward ap­
proval of this application, do not outweigh the adverse
competitive factors o f the application.
On the basis of the above, I believe this application
should be denied.

First Lake County Corporation,
Liberty ville, Illinois
O rder A p p ro vin g F orm ation o f B ank H oldin g
C om pan y

First Lake County Corporation, Liberty ville, Illinois,
has applied for the Board’s approval under section
3(a)(1) o f the Bank Holding Company Act (12 U .S.C . §
1842 (a)(1)) to become a bank holding company by ac­
quiring 100 percent (less directors’ qualifying shares)
of the voting shares of the successor by merger to First
National Bank o f Liberty ville (“ Bank” ), Libertyville,
Illinois. The bank into which Bank is to be merged has
no significance except as a means to facilitate the ac­
quisition o f the voting shares o f Bank. Accordingly,
the proposed acquisition of shares of the successor or­
ganization is treated herein as the proposed acquisition
of shares o f Bank.
N otice of the application, affording opportunity for
interested persons to submit comments and view s, has
been given in accordance with section 3(b) o f the Act.
The time for filing comments and views has expired
and the Board has considered the application and all

418

Federal Reserve Bulletin □ May 1980

comments received, including those of Mr. Timothy J.
Anderson (“ Protestant” ), in light of the factors set
forth in section 3(c) of the A ct.1
Applicant is a nonoperating company organized for
the purpose of becoming a bank holding company by
acquiring Bank. Upon the acquisition of Bank ($72.8
million in deposits), Applicant would become the 161st
largest banking organization in Illinois, with 0.1 per­
cent of total deposits in commercial banks in the
state.2
Bank is the 110th largest of 359 banking organiza­
tions in the Chicago banking market,3 controlling ap­
proximately 0.1 percent of total market deposits. This
proposal represents a restructuring of the existing
ownership of Bank from individuals to a corporation
owned by substantially the same individuals. It ap­
pears, therefore, that consummation of this proposal
would not have any adverse effects on competition in
any relevant area. Accordingly, competitive factors
are considered to be consistent with approval of the
application.
Based upon the facts of record, the Board finds that
the financial and managerial resources and future pros­
pects of Bank and Applicant are satisfactory. Appli­
cant will incur no acquisition debt in connection with
this proposal. The debt to be used to finance the pur­
chase of capital stock of the bank into which Bank will
be merged will be retired upon consummation of the
merger. Protestant alleges that in recent years Bank
has paid dividends that were excessive in light of
Bank’s capital position. After considering all of the
facts of record, including the facts submitted by Prot­
estant, it is the Board’s view that Bank’s dividend pol­
icy has not significantly impaired Bank’s capital,
which appears to be satisfactory. Protestant also
claims that the granting to Bank’s chairman and other
officers of options to purchase shares of Bank’s stock
evidences self-dealing and a conflict of interest on the
part of Bank’s board of directors. There is no evidence
in the record, however, to support Protestant’s allega­
tion that the granting of the stock options indicates any
improper conduct by Bank’s management.4 Therefore,
considerations relating to banking factors are consid­
ered to be satisfactory. Although consummation of the
proposal would effect no immediate change in the

1. Protestant, a shareholder of Bank, objects to the proposal on a
wide variety of grounds. Among other things, Protestant criticizes the
method by which the proposal would be effectuated, the purpose of
the proposal, and the adequacy of other information provided in the
application.
2. All banking data are as of December 31, 1978.
3. The Chicago banking market is approximated by Cook and
DuPage Counties and the southern half of Lake County, Illinois.
4. The Board has reviewed each of Protestant’s remaining objec­
tions and has determined that such claims do not warrant denial of
the application.




services offered by Bank, considerations relating to
the convenience and needs of the community to be
served are consistent with approval of the application.
Accordingly, the Board has determined that consum­
mation of the transaction would be in the public inter­
est and that the application should be approved.
On the basis of the record, the application is ap­
proved for the reasons summarized above. The trans­
action shall not be made before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date o f this Order
unless such period is extended for good cause by the
Board o f Governors or by the Federal Reserve Bank of
Chicago, pursuant to delegated authority.
By order of the Board of Governors, effective
April 22, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, and Rice.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D e p u ty S ecreta ry o f the B oard.

First National Corporation,
Appleton, Wisconsin
O rder D en yin g A cq u isitio n o f Bank

First National Corporation, Appleton, Wisconsin, a
bank holding company within the meaning of the Bank
Holding Company Act, has applied for the Board’s ap­
proval under section 3(a)(3) o f the Act (12 U .S.C .
§ 1842(a)(3)) to acquire 51 percent or more of the vot­
ing shares of Farmers & Merchants Bank, Men­
omonee Falls, Wisconsin (“ Bank” ).
N otice of the application, affording opportunity for
interested persons to submit comments and view s, 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 o f the factors set forth in
section 3(c) of the Act (12 U .S .C . § 1842(c)).
Applicant, the eighth largest banking organization in
W isconsin, controls nine subsidiary banks with aggre­
gate deposits o f approximately $344.0 million, repre­
senting 1.8 percent of the commercial bank deposits in
the state.1 Acquisition o f Bank, with deposits of ap­
proximately $90.3 million, would increase Applicant’s
share of deposits in commercial banks in Wisconsin by
only .5 percent and it would become the fifth largest
banking organization in the state. Accordingly, con­
summation of this proposal would not result in a signif1. All banking data are as of June 30, 1979.

Legal D evelopm ents

icant increase in the concentration of commercial
banking resources in Wisconsin.
Bank, the tenth largest of 61 banking organizations
in the Milwaukee banking market,2 controls approxi­
mately 1.5 percent of the total commercial bank depos­
its therein. Applicant’s closest subsidiary banking of­
fice is located approximately 35 miles from Bank, in a
separate banking market, and consummation of the
proposal would eliminate no existing competition. The
Milwaukee banking market is considered attractive for
de novo entry and consummation of this proposal
would eliminate some potential and probable future
competition. However, these adverse effects are miti­
gated by other facts of record, including the size of the
Milwaukee banking market and the fact that the Mil­
waukee market is not highly concentrated. Therefore,
consummation of the proposed acquisition would have
only slightly adverse competitive effects.
Under the Bank Holding Company Act, the Board is
required to consider the financial and managerial re­
sources of an applicant and its subsidiary banks. In the
exercise of that responsibility, the Board has indicated
on previous occasions that it will closely examine the
condition of an applicant to ensure that it will serve as
a source o f financial and managerial strength to its sub­
sidiary banks. The Board has also stated that the finan­
cial structure of a multi-bank holding company should
be more conservative than that of a one-bank holding
com pany.3
The Board has considered the managerial resources
o f Applicant and Bank and regards them as satisfac­
tory. Therefore, managerial considerations are consis­
tent with approval.
In connection with this proposal, Applicant would
fund the acquisition of Bank from a portion of the pro­
ceeds of an equity offering of $5 million and the in­
currence of $4.3 million in long term debt. Although
Applicant’s parent-company-only debt to equity ratio
is considerably higher than that for its peer group, Ap­
plicant’s financial condition at present is considered to
be generally satisfactory and, absent this proposed ac­
quisition, its prospects for serving as a source of finan­
cial strength for its subsidiaries appear favorable. The
majority of Applicant’s debt was incurred in con­
nection with Applicant’s acquisition of the Oshkosh
National Bank (approved by the Board on February
12, 1979). Consummation of the proposed acquisition
would result in a further significant increase in Appli­
cant’s debt. Moreover, particularly in light of current
econom ic conditions, Applicant’s financial projections

2. The Milwaukee banking market is approximated by the Milwau­
kee RMA, consisting of all of Milwaukee and Waukeasha Counties
and portions of five adjacent counties.
3. Citizens Ban-Corporation, 65 F e d e r a l R e s e r v e B u l l e t i n 163
(1979).




419

over the debt retirement period appear to be unduly
optimistic and it does not appear that Applicant will
possess the financial flexibility necessary to meet its
annual debt service requirements, provide the divi­
dend level deemed necessary for successful offering of
the equity issue, and at the same time continue to
maintain the adequate capital position of its subsidiary
banks. In light o f these facts and other facts of record,
the Board concludes that financial considerations are
significantly adverse. Managerial considerations do
not outweigh the adverse financial factors, and there­
fore, considerations relating to the banking factors
warrant denial of this application.
With respect to considerations relating to the conve­
nience and needs of the community to be served, the
record does not reflect that any banking needs o f the
area are not being met. On balance, convenience and
needs considerations are consistent with, but lend no
weight toward approval o f the application.
On the basis of all the facts of record, the Board
concludes that the banking considerations involved in
this proposal present significant adverse factors bear­
ing upon the financial resources o f Applicant. Such ad­
verse factors are not outweighed by benefits to the
community that would result from consummation o f
the proposal. Accordingly, it is the Board’s judgment
that approval of the application would not be in the
public interest and that the application should be de­
nied.
By the order of the Board o f Governors, effective
April 14, 1980.
Voting for this action: Vice Chairman Schultz and Gover­
nors Wallich, Partee, Teeters, and Rice. Absent and not vot­
ing: Chairman Volcker.
(Signed) T h e o d o r e E. A l l i s o n ,
[s e a l]

S e creta ry o f th e B oard.

Heritage Racine Corporation,
Racine, Wisconsin
O rder D en yin g F orm ation o f a B ank H oldin g
C om pan y

Heritage Racine Corporation, Racine, Wisconsin, has
applied for the Board’s approval under section 3(a)(1)
o f the Act (12 U .S.C . § 1842(a)(1)) o f formation o f a
bank holding company by acquiring 80 percent or
more o f the voting shares o f Heritage Bank and Trust
(“ Wind Point Bank” ), Racine, Wisconsin; Heritage
National Bank of Racine (“ Racine Bank” ), Racine,
Wisconsin; Heritage Bank-Mt. Pleasant (“ Mt. Pleas­
ant Bank” ), Racine, Wisconsin; and, Racine County

420

Federal Reserve Bulletin □ May 1980

National Bank (“ Franks ville Bank” ), Franks ville,
W isconsin (collectively referred to as “ Banks” ) . 1
N otice of the application, affording opportunity for
interested persons to submit comments and view s, 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, including those of Bank of Elm­
wood, Racine, Wisconsin; North Side Bank, Racine,
Wisconsin (“ Protestants” ); Congressman Les Aspin;
and the United States Department of Justice in light of
the factors set forth in section 3(c) of the Act (12
U .S.C . § 1842(c)).
Applicant is a nonoperating corporation with no
subsidiaries, organized for the purpose of becoming a
bank holding company through the acquisition of
Banks, which have aggregate deposits of $149.4 mil­
lion.2 Upon acquisition of Banks, Applicant would
control 0.7 percent of total deposits in commercial
banks in W isconsin,3 and Applicant would be the 17th
largest banking organization in the state. It appears,
therefore, that the acquisitions would not have an ap­
preciable effect upon the concentration of banking re­
sources in the state.
Banks are all located in eastern Racine County, Wis­
consin. Applicant claims that the relevant banking
market for determining the competitive effects of the
proposal should include the Racine Ranally Metro
Area (“ RM A” ), as well as the southeastern portion of
Milwaukee County and the northeastern portion of
Kenosha County. Protestants, in contending that con­
summation of the proposal would eliminate significant
existing competition, assert that the relevant banking
market should be limited to that portion of the Racine
RMA lying east of Interstate Highway 94.
The Board believes that the relevant banking market
should consist of the localized area where the banks
involved offer their services and where local custom ­
ers can practicably turn for alternatives. As the Su­
preme Court has noted in this regard, “ the proper
question is not where the parties to the merger do busi­
ness or even where they com pete, but where, within
the area of competitive overlap, the effect of the merg­
er on competition will be direct and immediate.” 4
Based on a review of all the facts of record, in the
Board’s judgment the relevant geographic market for
analyzing the competitive effects of this proposal is ap­
proximated by the Racine RMA.

1. Applicant proposes to acquire 80.7 percent of Wind Point Bank;
92.3 percent of Racine Bank; 88.4 percent of Mt. Pleasant Bank; and,
80.9 percent of Franksville Bank.
2. Banking data are as of June 30, 1979, except as otherwise noted.
3. Statewide deposit data are as of December 31, 1978.
4. U nited S tates v. Philadelphia N ational Bank 374 U.S. 321, 357
(1963); U nited S tates v. Phillipsburg N ational Bank, 399 U.S. 350,
364-365 (1970).




By definition, an RMA includes a central city area
and all adjacent areas by census tract from which a
minimum of 20 percent of the labor force or 8 percent
of the general population commutes daily to work in
the central city or its adjacent built-up areas.5 Because
an RMA designates a defined geographic locality that
has been determined to be demographically and com ­
mercially integrated, the RMA has in many cases pro­
vided a guide for the Board in defining the relevant
geographic banking market.6 The Racine RMA repre­
sents an urban center and adjacent suburban areas
commercially and econom ically linked to that urban
center, as evidenced by the existence of a significant
amount o f commuting to the urban area. The facts of
record in this case indicate that the Racine RMA best
approximates the area where the effects of this pro­
posal will be “ direct and immediate.” All of the offices
of the banks headquartered in the Racine area (includ­
ing all offices o f Banks) are located within the Racine
RMA, and the primary service areas7 of Banks are
confined almost exclusively to the Racine RM A.8
In proposing a banking market larger than the Ra­
cine RMA, Applicant claims that the RMA, which is
based on commuting data obtained from the 1970 Cen­
sus, does not reflect current commercial activity and
commuting patterns, which, according to Applicant,
have increased since 1970. In the Board’s view, the
banking market proposed by Applicant, which would
extend into three counties, is too large to approximate
accurately the localized area where the banks involved
are in significant, direct competition. Moreover, Ap­
plicant’s claim concerning the present level o f com ­
muting from the Racine area is based only on Appli­
cant’s “ general knowledge o f banking patterns.”
Applicant has not provided the Board with any facts or
empirical evidence to support its assertion.9 Accord­
ingly, on the basis of these and other facts of record,
5. R an d M cN ally & C o., 1979 C om m ercial A tlas & M arketing
Guide 2 (110th ed. 1979). On the basis of commuting data from the
1970 Census, the Racine RMA was redefined in 1979 to include certain
areas of western Racine County that previously had not been included
in the RMA.
6. See Ellis Banking C orporation, 64 F e d e r a l R e s e r v e B u l l e t i n
884, 885 (1978) (O r d e r d e n y in g r e q u e s t f o r re c o n s id e ra tio n ). In c o n s id ­
erin g s e v e r a l r e c e n t a p p lic a tio n s b y b a n k h o ld in g c o m p a n ie s to a c ­
q u ire b a n k s in th e R a c in e a r e a , th e B o a rd h a s fo u n d th e re le v a n t m a r ­
k e t to b e a p p r o x im a te d b y th e R a c in e R M A . The M arine C orporation,
66 F e d e r a l R e s e r v e B u l l e t i n 347-349 (O rd e r o f M a rc h 26, 1980);
M arshall & Ilsley C orporation, 61 F e d e r a l R e s e r v e B u l l e t i n 444

(1975).
7. A primary service area is defined by the Board as the geographic
area from which a bank derives 80 percent of the dollar amount of its
deposits or loans.
8. The Board notes that a small portion of the service area of sever­
al of Banks extends slightly outside the boundaries of the RMA. These
portions of the service areas are not significant and the Board has
taken the slight extension of the service areas outside the RMA into
account in its analysis of this proposal.
9. Applicant claims that 20 to 25 percent of the Racine County work
force now commutes to Milwaukee and Kenosha Counties. Even if
this statement were supported by evidence of record, this information

Legal Developm ents

the Board concludes that the relevant banking market
is approximated by the Racine R M A .10
Banks each compete in the relevant banking market.
While consummation of the proposal would appear to
eliminate some existing competition between Banks,
the Board notes that Applicant’s principals, Mr. Sam­
uel C. Johnson and members of his immediate family,
currently control three of Banks: Wind Point Bank,
which controls deposits of $68.0 million, representing
12.4 percent of the total market deposits; Mt. Pleasant
Bank, which controls deposits of $21.3 million, repre­
senting 3.9 percent of market deposits; and, Racine
Bank, which controls deposits of $21.9 million, repre­
senting 4.0 percent of market deposits (collectively re­
ferred to as the “ Johnson Banks” ). Applicant’s princi­
pals organized Wind Point Bank as a new bank in 1970,
and in 1974 organized Mt. Pleasant Bank, also as a
new bank. In 1976, Applicant’s principals acquired Ra­
cine Bank. The Johnson family currently controls 70
percent or more of the outstanding shares of each of
the Johnson Banks, and there are numerous director
and officer interlocks between these banks. In view of
these relationships, it appears that no meaningful com ­
petition currently exists between the Johnson Banks,
and, accordingly, that consummation of the proposal
would not eliminate any existing competition between
the three Johnson Banks.
Consummation of this proposal would, however,
eliminate existing competition between the Johnson
Banks and Franksville Bank, which currently is not
controlled by Applicant’s principals. Viewed as a
single banking organization because of the substantial
common ownership, the Johnson Banks constitute the
second largest banking organization in the Racine
banking market, controlling deposits of $111.2 million
and 20.3 percent of total market deposits. Franksville
Bank controls deposits of $38.2 million, representing
7.0 percent of total market deposits, and ranks as the
seventh largest banking organization in the Racine
banking market.
Applicant’s acquisition of Franksville Bank, togeth­
er with its acquisition of the Johnson Banks, would
increase the share of market deposits under common
control from 20.3 percent to 27.3 percent, and Appli­
cant would become the largest banking organization in
would not necessarily warrant inclusion of Milwaukee and Kenosha
Counties in the relevant market because Applicant does not identify to
which adjoining county the Racine County workers travel. If only a
small portion of the Racine work force travels to one of the adjoining
counties, then that county is not part of the relevant market, notwith­
standing a larger pattern of commuting generally. In addition, Appli­
cant’s information concerns the commuting patterns from Racine
County, not from the geographically smaller Racine RMA.
10.
The relevant geographic market suggested by Protestants, the
portion of the Racine RMA lying east of Interstate Highway 94, would
exclude a large part of the primary service area of Franksville Bank.
Thus, the Board finds that this suggested market does not adequately
reflect the competitive influences involved in this proposal.




421

the relevant market. The Board notes that such an in­
crease in market shares would exceed the Department
of Justice Merger G uidelines.1 The Board also notes
1
that Franksville Bank and the Johnson Banks are di­
rect and immediate competitors in that both offices of
Franksville Bank are located within 11 miles from each
office o f the Johnson Banks. Moreover, consummation
of the proposal would increase the share of deposits
held by the four largest banking organizations in the
Racine market from 65.9 percent to 72.9 percent. A c­
cordingly, the Board concludes that consummation of
this proposal would have substantially adverse effects
on existing competition and on the concentration of
banking resources in the Racine banking market.
Applicant contends that the combination of the
Johnson Banks with Franksville Bank would not result
in significantly adverse competitive effects, stating
that an analysis based on the percentage of market
shares alone does not, in light of other factors, accu­
rately reflect the probable effect of the proposal on
existing competition. Applicant asserts that the market
shares of Banks should be reduced or “ shaded” by 10
percent in order to account for the banking business
done in the relevant market by banks located outside
of the market and for the existence of commuting from
the Racine RMA. There does not, however, appear to
be substantial evidence in the record to support Appli­
cant’s claims of an increased level of commuting. Ap­
plicant also asserts that the Board should take into ac­
count the presence of savings and loan institutions in
the relevant banking market.
In view of Supreme Court decisions that the unique
cluster of products and services offered by commercial
banks distinguishes them from all other types of finan­
cial institutions,12 and the fact that both the Supreme
Court and the Board have recognized that this situa­
tion is subject to change,13 there is some question as to
the weight that the Board must accord the presence of
thrift institutions in a relevant banking market in as­
sessing the competitive effects of an application. Al­
though it appears that state-chartered savings and loan
associations in Wisconsin may offer checking-like de­
posits, there is nothing in the record to indicate that
the savings and loan associations in the Racine market
provide substantial competition to the commercial
banks in the market. In any event, in the Board’s view
it is unnecessary for the purposes o f this case to deter­
11. 1 CCH Trade R eg. R ep. 1 4510. In its official letter of comment
1
concerning this application, the United States Department of Justice
based a recommendation of denial of the application upon its findings
that the proposed acquisitions would have significantly adverse effects
on existing competition and concentration of banking resources within
the relevant banking market.
12. E.g., U nited States v. C onnecticut N ational Bank, 418 U.S.
656, 662-666 (1974).
13. See id. at 666; U nited Bank Corporation o f N ew York, 66 F e d ­
e r a l R e s e r v e B u l l e t in 61, 63 (1980).

422

Federal Reserve Bulletin □ May 1980

mine to what extent, if any, “ shading” of market
shares would be appropriate or necessary. Even if the
share of market deposits held by Banks were shaded
downward by 10 percent, as Applicant suggests, the
resulting market share of Applicant after acquisition of
the Johnson Banks and Franksville Bank would, nev­
ertheless, indicate that the proposal would eliminate
substantial existing competition in the relevant market
and would have substantially adverse effects on the
concentration of banking resources in the market.
Even as shaded, the increase in market shares result­
ing from this proposal would exceed the Justice D e­
partment Merger Guidelines.
Finally, Applicant asserts that there has been a
trend toward deconcentration of banking resources in
the Racine banking market that mitigates the anti­
competitive effects of the proposal. The Racine RMA
currently appears to be moderately concentrated in
terms of bank resources, and in the judgment of the
Board, any increase in the level of concentration is a
matter for serious concern. In sum, it is the Board’s
judgment that the combination of the Johnson Banks
and Franksville Bank under common control in Appli­
cant would have substantial adverse competitive ef­
fects.
As noted above, Applicant’s principals acquired
control of Racine Bank in February 1976. In analyzing
the competitive effects of an application to form a bank
holding company where an individual or group of indi­
viduals, controlling in a personal capacity more than
one bank in a relevant banking market, seeks to trans­
fer control of one or more of the banks to a holding
company, the Board takes into consideration the com ­
petitive effects of the transaction whereby common
ownership was established between the banks in the
m arket.14 At the time of their acquisition of Racine
Bank, Applicant’s principals also controlled Wind
Point Bank and Mt. Pleasant Bank, which together
held aggregate deposits of $56.3 million, representing
12.9 percent of total market deposits.15 Racine Bank
then controlled deposits of $11.9 million, representing
2.7 percent of the total market deposits. Accordingly,
the Board notes that the acquisition of Racine Bank by
the Johnson family in February 1976 eliminated some
existing competition between Racine Bank, on one
hand, and Wind Point Bank and Mt. Pleasant Bank on
the other, and increased the concentration of banking
resources within the Racine banking market.16
Accordingly, the Board finds, on the basis of the
14. E.g., M id-N ebraska B ancshares, Inc., 64 F e d e r a l R e s e r v e
B u l l e t in 589 (1978), a f f ’d sub nom. M id-N ebraska Bancshares, Inc.
v. B oard o f Governors, No. 78-1658 (D.C. Cir., Feb. 15, 1980).
15. Deposit data are as of December 31, 1975.
16. The Board also notes that Mr. Johnson, a principal of Appli­
cant, is also a principal of Heritage Wisconsin Corporation (“ HWC” ),
Wauwatosa, Wisconsin, a bank holding company operating seven sub­
sidiary banks in Wisconsin. None of HWC’s subsidiary banks com-




foregoing and other facts o f record, that the sub­
stantially adverse effects on existing competition and
concentration of banking resources within the Racine
banking market that would result from consummation
of this proposal warrant denial of this application, un­
less such anticompetitive effects are clearly out­
weighed by convenience and needs considerations.
The Board has indicated on previous occasions that
a holding company should serve as a source of finan­
cial and managerial strength to its subsidiary banks
and that the Board will closely examine the condition
of an applicant in each case with this consideration in
mind. Having examined such factors in light of the rec­
ord of this application, the Board concludes that finan­
cial considerations support denial of this application.
As part of its proposal, Applicant would assume
debt in connection with its acquisition of Franksville
Bank and also would incur debt to inject additional
capital into Banks. Applicant proposes to service this
debt over a 10-year period through dividends to be de­
clared by Banks and tax benefits to be derived from
filing consolidated tax returns. In the Board’s view,
Applicant’s projections of growth and earnings over
the debt retirement period appear to be somewhat op­
timistic and it appears that Applicant may have diffi­
culty in meeting its annual debt servicing requirements
while maintaining adequate capital at Banks, even if
the acquisition debt were serviced over a 12-year peri­
od. In view of these and other facts of record, the
Board concludes that the considerations relating to
banking factors lend some weight against approval of
the application.
In regard to convenience and needs considerations,
Applicant proposes to introduce automated teller ma­
chines, trust services, expanded operating hours, and
other services to Franksville Bank. Trust services cur­
rently offered through Wind Point feank would be of­
fered through Racine Bank and Mt. Pleasant Bank.
Applicant’s proposed capital injections into Banks
would increase Banks’ lending limits and thus improve
their ability to meet commercial and agricultural credit
demand in their communities; however, there is noth­
ing in the record to show that such demand is not being
met. There is also no indication that the needs o f the
customers of Franksville Bank are not currently being
met, or that the proposed new services cannot be ob­
tained from other institutions in the market, or that the
improved services could not be offered through the
banks in the market controlled by Applicant’s princi­
pals. Indeed, Applicant proposes to offer some of the
proposed additional services through the Johnson
Banks. In short, Applicant has failed to demonstrate
that the benefits expected from the proposal “ cannot
petes in the Racine banking market. See The Jacobus Com pany, 64
F e d e r a l R e s e r v e B u l l e t i n 126, 126 n.3 (1978).

Legal Developm ents

reasonably be expected through other m eans.” 17 A c­
cordingly, the Board finds that convenience and needs
considerations do not outweigh the substantially ad­
verse competitive effects that would result from the
acquisition by Applicant of the Johnson Banks and
Franks ville Bank.
On the basis of all relevant facts of record, it is the
Board’s judgment that consummation of the proposal
would not be in the public interest and that the appli­
cation should be denied. Accordingly, the application
is denied for the reasons summarized above.18
By order of the Board of Governors, effective April
21, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, and Rice.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D e p u ty S ecreta ry o f the B oard.

Mercantile Texas Corporation,
Dallas, Texas
O rder D enying A cqu isition o f a B ank H oldin g
C om pany

Mercantile Texas Corporation, Dallas, Texas (“ Appli­
cant” ), a bank holding company within the meaning of
the Bank Holding Company Act (the “ A ct” ), has ap­
plied for the Board’s approval under section 3(a)(5)
of the Bank Holding Company Act (12 U .S.C .
§ 1842(a)(5)) to acquire by merger PanNational Group,
Inc., El Paso, Texas (“ PanNational” ) ,1 a registered
bank holding company.
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, the fifth largest banking organization in
Texas, controls nine banks with aggregate deposits of
approximately $2.8 billion, representing 4.2 percent of
the total commercial bank deposits in the state.2 Pan17. See U nited States v. Third N ational Bank, 390 U.S. 171, 190
(1968).
18. In view of the Board’s action on the application, the Board finds
it unnecessary to reach the other grounds for denial advanced by Prot­
estants.
1. PanNational has two nonbanking subsidiaries engaged in activi­
ties permissible under section 225.4(a)(6) and (8) of the Board’s Regu­
lation Y. By virtue of the Board’s denial of this application, the con­
versions of these subsidiaries into an operating subsidiary of a national
bank and a bank service corporation are moot.
2. Unless otherwise indicated, all banking data are as of December
31, 1978, and reflect bank holding company formations and acquisi-




423

National, the twelfth largest banking organization in
Texas, controls five banks with aggregate deposits of
approximately $622.7 million, representing 0.9 percent
o f the total commercial bank deposits in the state. Up­
on consummation o f the proposal, Applicant’s share of
commercial bank deposits in Texas would be in­
creased to 5.1 percent. Although Applicant would re­
main the fifth largest banking organization in the state,
the proposed merger would have the immediate effect
o f increasing Applicant’s overall deposit size by about
22 percent and, as discussed more fully below, viewed
in the context of Texas banking structure, this increase
of banking resources in Texas is o f concern to the
Board.
PanNational is the second largest o f 13 banking or­
ganizations located in the El Paso banking market, by
virtue of its control o f four subsidiary banks in the
market aggregating $440.9 million in commercial bank
deposits, representing 31.5 percent o f market depos­
its.3 PanNational also controls the second largest o f 15
banking organizations in the Waco banking market
through its control o f $181.8 million in commercial
bank deposits, representing 27.6 percent of the depos­
its in the Waco banking market.4 N one o f Applicant’s
subsidiary banks has an office in either o f these bank­
ing markets, or within 90 miles of any subsidiary bank
o f PanNational. Thus, no significant existing com­
petition would be eliminated upon consummation of
the proposal.
With regard to potential competition, however, the
Board has previously expressed its concern about the
adverse competitive effects resulting from the entry by
one of the larger banking organizations in a state into
smaller metropolitan areas through acquisition of a
large organization in those smaller metropolitan mar­
kets. Such adverse effects are exacerbated particularly
in a situation where the banking organization to be ac­
quired is located in a concentrated market(s).5 The
structures of both the El Paso and Waco banking mar­
kets are concentrated, with the four largest banking
organizations in each market controlling, respectively,
86.1 and 73.8 percent of total market commercial bank
deposits.
It is the Board’s opinion that Applicant possesses
the financial and managerial resources for de novo or
foothold entry into either the Waco or El Paso banking
market. With respect to the El Paso market, there is
evidence of record to suggest that successful de novo

tions approved as of December 31, 1979.
3. The El Paso banking market is approximated by the El Paso
SMSA, which is represented by El Paso County, Texas.
4. The Waco banking market is approximated by the Waco SMSA,
which is represented by McClennan County, Texas.
5. First City B ancorporation o f Texas, Inc., 65 F e d e r a l R e s e r v e
B u l l e t in 862 (1979).

424

Federal Reserve Bulletin □ May 1980

entry could occur, as indicated by the number of de
novo banks formed between 1970 and 1979, and the
fact that the overall size and growth of the market con­
tinue to make El Paso attractive for such means of en­
try. Although the Waco banking market appears rela­
tively less attractive for de novo entry, numerous
smaller foothold entry points remain available for ac­
quisition into that market. There also are numerous
smaller foothold entries into the El Paso banking mar­
ket.
In the Board’s view, Applicant has the capability to
enter either the El Paso or Waco banking market in a
less anticompetitive fashion than under the present
proposal. In addition, the acquisition of PanNational
by Applicant would eliminate the probability that
these two organizations will come into direct com­
petition in the future. Moreover, approval of this pro­
posal would do nothing to reduce the concentration of
banking resources in the concentrated Waco or El
Paso banking market. On the other hand, denial of the
proposal would preserve the probability that Applicant
and PanNational will be confronting each other in
these concentrated markets in the future.
In view of the facts of record, including the financial
and managerial resources of Applicant, the market
shares held by PanNational in the El Paso and Waco
banking markets, the level concentration in the two
markets, and other characteristics of the markets in­
volved, the Board concludes that consummation of
this proposal would have such substantially adverse
effects on probable future competition in the relevant
banking markets as to warrant denial of the proposal
unless such anticompetitive effects are clearly out­
weighed by considerations relating to the convenience
and needs of the communities to be served.
The competitive consequences associated with this
proposal must also be considered in light of their ef­
fects upon the structure of banking in Texas. The
Board has consistently expressed its concern regard­
ing acquisitions that impact significantly on statewide
structure and the concentration of resources within a
state, and has indicated that there are limits as to what
it regards as approvable under the standards of the
Bank Holding Company Act. The Board continues to
monitor statewide banking structures in general and,
more particularly, the size disparity between the large
banking organizations operating statewide and the
smaller, regional banking organizations. The Board is
concerned with the possibility that continued approval
o f acquisition or merger proposals involving large
statewide holding companies and relatively sizable
banking organizations, such as is presented by this
proposal, may perpetuate this size disparity and in­
crease concentration ratios.6 Under section 3(c) of the
6. F idelity Union B ancorporation, 65 F e d e r a l R e s e r v e B u l l e -




Act, the Board is not required to tolerate increases in
banking concentration since the underlying purpose of
the Clayton Act as incorporated in the Bank Holding
Company Act is to brake the force o f a trend toward
undue concentration before it gathers momentum (See
Brown Shoe Co. v. U n ited S ta te s , 370 U .S. 294, 317—
18 (1961)). In reviewing the overall impact o f consum­
mation of this proposal, it is the Board’s opinion that
absorption by Applicant of a multi-bank holding com­
pany o f PanNational’s size would not be in the public
interest and that approval is not warranted.
It should be noted that the Board by this Order does
not intend to discourage some consolidations among
smaller, “ second-tier” and “ third-tier” banking or­
ganizations in Texas. Nevertheless, this case exceeds
the limits, in terms o f the size of the banking organiza­
tion being acquired and the effects on competition and
concentration o f what the Board would regard as ap­
provable in light o f present structural and legal consid­
erations.7
The financial and managerial resources and future
prospects o f Applicant, its subsidiaries and PanNational are regarded as satisfactory and consistent
with approval. While some new or expanded services
may result from approval of this acquisition, including
the offering of credit life and credit accident insurance
and automated teller machine services to PanNational’s customers, which facts lend some weight
toward approval, there is no evidence in the record
indicating that the banking needs of the community to
be served are not being met. On the basis o f the rec­
ord, it is the Board’s opinion that convenience and
needs considerations are not sufficient to clearly out­
weigh the substantially adverse competitive effects as­
sociated with this proposal. Accordingly, it is the
Board’s judgment that consummation o f the proposed
transaction would not be in the public interest and that
the application should be denied. Based on the fore­
going and other facts of record, the application is here­
by denied.
By order of the Board of Governors, effective April
15, 1980.
Voting for this action: Vice Chairman Schultz and Gover­
nors Partee^ Teeters, and Rice. Absent and not voting: Chair­
man Volcker and Governor Wallich.
(Signed) t h e o d o r e E. A l l i s o n ,
[s e a l]

S ecreta ry o f the B oard.

1006 (1979); Old K en t Financial Corporation, 65 F e d e r a l R e ­
B u l l e t i n 1010 (1979); First City B ancorporation o f Texas,
Inc., 65 F e d e r a l R e s e r v e B u l l e t i n 862 (1979); and First Inter­
national B ancshares, Inc., 60 F e d e r a l R e s e r v e B u l l e t i n , 290
(1974).
7. First City Bancorporation o f Texas, Inc., 65 F e d e r a l R e s e r v e
B u l l e t in 862 (1979).
t in

ser v e

Legal Developm ents

New England Merchants Company, Inc.,
Boston, Massachusetts
O rder A pprovin g M erg e r o f Bank H o ld in g C om pan ies

N ew England Merchants Company, Inc., Boston,
Massachusetts, a bank holding company within the
meaning of the Bank Holding Company Act (“ A ct” ),
has applied for the Board’s approval under section
3(a)(5) of the Act (12 U .S.C . § 1842(a)(5)) to merge
with Massachusetts Bay Bancorp, Inc. (“ M BB” ),
Lawrence, Massachusetts, which is also a bank hold­
ing company.
N otice 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) o f the Act.
Applicant, the fourth largest banking organization in
Massachusetts, has three subsidiary banks with aggre­
gate deposits o f $1,352.8 million, representing 7.8 per­
cent o f the total deposits in commercial banks in the
state.1 MBB, the thirteenth largest banking organiza­
tion in the state, has two subsidiary banks with aggre­
gate deposits o f $165.8 million, representing 0.97 per­
cent o f the total deposits in commercial banks in the
state. Upon consummation of the proposed merger,
Applicant would remain the fourth largest banking or­
ganization in the state with 8.77 percent of total depos­
its in commercial banks in Massachusetts.
Both Applicant and MBB compete in the Boston
banking market.2 Applicant’s lead banking subsidiary,
with deposits of $1,252.5 million, representing 9.29
percent of commercial bank deposits in the market,
makes Applicant the fifth largest banking organization
in the market. Both of MBB’s subsidiary banks are lo­
cated in the Boston market, where they hold 1.23 per­
cent of commercial bank deposits, making MBB the
tenth largest banking organization in the market. Con­
summation of this proposal would increase Appli­
cant’s share of commercial bank deposits in the mar­
ket to 10.52 percent and its rank in the market to
fourth. In light of these and other facts o f record, the
Board finds that consummation of the proposal will re­
sult in the elimination of competition between Appli­
1. Banking data are as of June 30, 1979.
2. The Boston banking market, which is approximated by the Bos­
ton RMA, includes the major metropolitan areas (SMSAs) of Boston,
Brockton, Lowell and Lawrence-Haverhill. There are 159 cities and
towns in this market, which extends over the entire east coast of Mas­
sachusetts except Cape Cod and includes 13 towns in southern New
Hampshire. The Massachusetts portion of the market includes all of
Suffolk County, all of Essex County, most of Middlesex, Norfolk and
Plymouth Counties, and small segments of Worcester and Bristol
Counties.




425

cant and MBB, will remove an independent com ­
petitor from the Boston market, and will slightly
increase the concentration o f resources in that market.
Taken alone these facts would support a conclusion
that consummation o f the proposal would have ad­
verse competitive effects. However, the Board be­
lieves that other factors associated with the proposal
mitigate the anticompetitive effects of the transaction.
As the Board has previously noted,3 proposals in­
volving the acquisition o f an independent banking or­
ganization by an organization already represented in a
market must be analyzed carefully, giving attention to
all o f the facts presented in each case, such as the
structural characteristics of the market as well as the
quantitative factors associated with the proposal. In
this regard, the Board notes that there are three larger
organizations in the market, with far more extensive
branch networks in the market. Massachusetts law
prevents Applicant from branching into most o f the
towns served by MBB and de novo entry in E ssex
County appears unattractive. Finally, neither of
M BB’s subsidiary banks is a sizeable competitor in the
Boston market. In view of these factors and conve­
nience and needs considerations associated with the
proposal, the Board concludes that the overall com­
petitive effects o f this proposal do not warrant denial.
The Board considers the financial and managerial re­
sources and future prospects o f Applicant and its sub­
sidiaries generally satisfactory. Moreover, affiliation
with Applicant should materially improve the financial
and managerial resources and future prospects of
M BB’s subsidiary banks. Applicant will take needed
steps to strengthen M BB’s lead bank, and these ac­
tions should enhance its otherwise limited ability to
serve the convenience and needs o f the community ef­
fectively. This affiliation, for example, will enable that
bank to raise its rates on regular savings accounts. In
addition, Applicant proposes to lower rates on install­
ment loans, introduce international banking services,
and increase automated teller machines for both of
M BB’s subsidiary banks. Applicant’s existing subsidi­
ary banks appear to be actively engaged in seeking to
ascertain and meet the credit needs o f their commu­
nities. In light of the above, considerations relating to
the convenience and needs o f the community to be
served lend significant weight toward approval o f the
application and, in the Board’s judgment, outweigh
any adverse competitive effects that might result from
consummation o f the proposal. Accordingly, the
Board has determined that the application should be
approved.
On the basis o f the record, the application is ap­
proved for the reasons summarized above. The trans3.
al

See The M arine C orporation/Com m ercial S tate Bank, 66 F e d e r ­

R e s e r v e B u l l e t i n 166 (1980).

426

Federal Reserve Bulletin □ May 1980

action shall not be made before the thirtieth calendar
day following the effective date o f this Order, or later
than three months after the effective date of this Order
unless such period is extended for good cause by the
Board, or by the Federal Reserve Bank of Boston, un­
der delegated authority.
By order of the Board of Governors, effective April
8, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, and Partee. Absent and not voting: Gover­
nors Teeters and Rice.
(Signed) G r i f f i t h L. G a r w o o d ,
D e p u ty S ecreta ry o f the B oard,

[s e a l]

Toledo Trustcorp, Inc.,
Toledo, Ohio
O rder D enying A cqu isitio n o f Bank

Toledo Trustcorp, Inc., Toledo, Ohio, a bank holding
company within the meaning of the Bank Holding
Company Act, has applied for the Board’s approval
under section 3(a)(3) of the Act (12 U .S.C . §
1842(a)(3)) to acquire 80 percent or more of the voting
shares of National Bank of Defiance, Defiance, Ohio.
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)).
On the basis of the record, the application is denied
for the reasons set forth in the Board’s Statement,
which will be released at a later date.
By order of the Board of Governors, effective
March 26, 1980.
Voting for this action: Vice Chairman Schultz and Gov­
ernors Partee, Teeters, and Rice. Absent and not voting:
Chairman Volcker and Governor Wallich.
(Signed) G r i f f i t h L. G a r w o o d ,
D ep u ty S ecreta ry o f the B oard.

[s e a l]

Statement by Board of Governors of the Federal
Reserve System Regarding Application of
Toledo Trustcorp, Inc. to Acquire National Bank
of Defiance
^

T

rp | j
i

,

Toledo Trustcorp, Inc., Toledo Ohio, a bank
holding company within the meaning of the Bank




Holding Company Act, has applied for the Board’s
approval under section 3(a)(3) of the Act (12 U .S.C .
§ 1842(a)(3)) to acquire 80 percent or more of the
voting shares of National Bank of Defiance (“ Bank” ),
Defiance, Ohio.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) o f 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, the 12th largest banking organization in
Ohio, controls eight banks with aggregate deposits of
$797.7 million, representing 2.1 percent o f total depos­
its in commercial banks in the state.1 Acquisition of
Bank ($31.1 million in deposits) would increase Appli­
cant’s share of statewide deposits by 0.1 percent and
would not alter Applicant’s rank among banking or­
ganizations in Ohio.
The Board has previously defined the Defiance
banking market to include all of Defiance County ex­
cept the Township o f Hicks ville and all o f Paulding
County except the Township of Carryall. Applicant
urged the Board to revise its view of the relevent geo­
graphic market, contending initially that the market
should be limited to all o f Defiance County, with Paul­
ing County constituting a separate banking market. A
field survey conducted by the Federal Reserve Bank of
Cleveland did not support this contention. Applicant
then contended that the relevant market area included
all of Defiance and Paulding Counties, plus the w est­
ern half of Henry County (including the Townships of
Flatrock, Pleasant, Napoleon, Marion and Monroe)
and the northwestern portion of Putnam County (in­
cluding Monroe and Perry Townships). Based upon an
analysis of the computer patterns in the area, township
employment data, a survey of the market, and other
facts of record, the Board has determined the relevant
market area to include all of Defiance County, except
the Township of Hicks ville, all of Paulding County,
except the Township o f Carryall, the Townships of
Flatrock and Pleasant in Henry County and the Town­
ships of Monroe and Perry in Putnam County.
Bank is the second largest of eight banking organiza­
tions in the Defiance banking market, controlling 20.4
percent of the total deposits in commercial banks
therein. Approval of this acquisition would eliminate
substantial existing competition between Bank and
one o f Applicant’s subsidiary banks, National Bank o f
Paulding (“ Paulding Bank” ), Paulding, Ohio, which is
also located in the Defiance banking market. Paulding

1.
Unless other
31, 1979, and include the approved but still unconsummated acquisition by Applicant of the Oak Harbor State Bank Company, Oak Harbor, Ohio.

Legal D evelopm ents

Bank is the third largest banking organization in the
relevant banking market and controls 12.7 percent of
the total deposits in commercial banks therein. Ap­
proval of this acquisition would increase Applicant’s
share of the total deposits in commercial banks in the
market to 33.1 percent and Applicant would become
the second largest banking organization in the market.
Consummation o f this acquisition would reduce the
number of competitors and increase the four-bank
concentration ratio in this highly concentrated market
from 76.9 percent to 84.4 percent of total deposits in
commercial banks in the market.2 Accordingly, the
Board concludes that, based upon the facts of record,
consummation o f this proposal would have sub­
stantially adverse effects on competition in the rele­
vant market.
Applicant also contended that the competition af­
forded by thrift institutions in the market must be con­
sidered in analyzing the competitive effects of this pro­
posal. The Board has stated that while commercial
banking is the appropriate line of commerce for com­
petitive analysis purposes, in certain cases the share of
market deposits of commercial banks may be
“ shaded” downward to take into consideration com­
petition by thrift institutions.3 In this case, however,
even if thrift institutions in Ohio were considered to be
competitors with commercial banks over the full range
of services offered by commercial banks, the acquisition
would result in Applicant increasing its share of depos­
its in the market from 6.6 percent to 17.2 percent, still
presenting a substantially adverse competitive effect.
Accordingly, the Board has determined that the over­
all effects of the proposal on competition and concentraton of resources are so serious as to require de­
nial of the application, unless such substantially
adverse competitive effects are clearly outweighed by
considerations relating to the convenience and needs
o f the communities to be served.
The financial and managerial resources o f Appli­
cant, its subsidiary banks and Bank are regarded as
generally satisfactory and the future prospects of each
appear favorable. Accordingly, considerations relating
to banking factors are consistent with, but lend no
weight toward, approval of the application.
With respect to the convenience and needs of the
communities to be served, Applicant asserts that the
acquisition of Bank would have some beneficial re­
sults. Applicant’s affiliation with Bank would result in
larger lending limits and the lending expertise of Appli­
cant’s lead bank being made available to Bank. Appli­
cant would also offer trust services through Bank in
addition to offering Bank data processing services and

2. Market area deposits are as of June 30, 1978.
3. See, e.g., U nited Bank Corporation o f N ew York, 66 F e d e r a l
R e s e r v e B u l l e t i n 61 (1980).




427

training and development programs for Bank’s person­
nel. It is the Board’s view that the benefits to the pub­
lic are not sufficient to clearly outweigh the sub­
stantially adverse effects on competition and
concentration of banking resources in the market area
that would result from consummation o f the proposed
transaction. Accordingly, it is the Board’s judgment
that the proposed transaction would not be in the pub­
lic interest and that the application should be denied.
Board o f Governors o f the Federal Reserve System,
April 7, 1980.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D ep u ty S ecreta ry o f the B oard.

Orders Under Section 4 o f Bank Holding
Company A ct

Northwestern Financial Corporation,
North Wilkesboro, North Carolina
O rder A pp ro vin g R eten tio n o f M & J F inancial
C orporation

Northwestern Financial Corporation, North Wilkes­
boro, North Carolina, 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 retain voting shares of M & J Financial
Corporation (“ MJF” ), Shelby, North Carolina. MJF
engages in consumer financing, second mortgage lend­
ing, leasing, dealer floor plan lending, providing data
processing services, and acting as agent for the sale of
credit life and credit accident and health insurance in
connection with its extensions of credit. These activi­
ties have been determined by the Board to be closely
related to banking (12 C .F.R. § 225.4(a)(1), (6), (8)(ii),
(9)(ii)).
Notice of the application, affording an opportunity
for interested persons to submit comments and views
on the public interest factors, has been duly published
(44 F ederal R e g iste r 69730 (1979)). The time for filing
comments and views has expired, and the Board has
considered the application and all comments received
in light of the public interest factors set forth in section
4(c)(8) of the Act.
Applicant, a one bank holding company and the
fourth largest banking organization in North Carolina,
became a bank holding company as a result of the 1970
Amendments to the Act because o f its control of The
Northwestern Bank (“ Northwestern Bank” ), North
Wilkesboro, North Carolina. Northwestern Bank,
with 179 banking offices in 44 counties in North Caroli­

428

Federal Reserve Bulletin □ May 1980

na, holds deposits of $1.3 billion, representing 8.5 per­
cent of the total deposits in commercial banks in the
state.1 Applicant acquired MJF on October 31, 1969,
and under section 4 of the Act2 it may not retain MJF
after December 31, 1980, without the Board’s approv­
al. The Board regards the standards under section
4(c)(8) for retention o f shares of a nonbanking compa­
ny to be the same as the standards for a proposed ac­
quisition of such a company.
MJF is the 126th largest finance company in the
United States. It operates 36 loan offices serving 28
counties in North Carolina and South Carolina. As of
December 31, 1978, it had $45 million in total assets.
The relevant product market to be considered in
evaluating the competitive effects of the proposal is
the making of personal loans.3 The Board has pre­
viously determined that consumer finance companies
compete with commercial banks in the area of person­
al loans and that the market to be considered is the
local banking market.4 In October 1969, when MJF
was acquired by Applicant, MJF had offices in ten
counties in North Carolina (representing nine banking
markets) in which Northwestern Bank also had of­
fices.5 In many of these markets, MJF and North­
western Bank controlled a significant percentage of the
market for direct cash loans.6 Thus, the acquisition of
MJF by Applicant resulted in a considerable decrease
in existing competition.
In addition to eliminating existing competition, Ap­
plicant’s acquisition of MJF also decreased potential
competition between the two organizations. However,
the amount of potential competition eliminated does
not appear significant in view of the large number of
potential entrants that remained after the acquisition,
the relatively low barriers to entry associated with the
consumer finance industry, and MJF’s small absolute
size. Although subsequent de novo expansion by MJF
and Northwestern Bank in North Carolina has in­
creased the number of counties in which both MJF and
Northwestern Bank are located, the de novo nature of
this expansion mitigates somewhat any adverse effects

1. As of June 30, 1979.
2. Section 4 of the Act provides, inter alia, that nonbanking activi­
ties acquired between June 30, 1968, and December 31, 1970, by a
company that became a bank holding company as a result of the 1970
Amendments to the Act may not be retained beyond December 31,
1980, without Board approval.
3. Security Pacific Corp. (American Finance System Inc.), 65 F e d ­
e r a l R e s e r v e B u l l e t i n 73,74, n .ll (1979).
4. Bankers Trust Corp. (Public Loan Co.), 59 F e d e r a l R e s e r v e
B u l l e t i n 694 (1973).
5. These banking markets were Mecklenburg, Buncombe, Ca­
tawba, Greensboro-Winston-Salem-High Point, Haywood, Iredell,
Rockingham, Rutherford and Wilkes, North Carolina. Subsequent to
the acquisition of MJF by Applicant, both MJF offices in the Mecklen­
burg, North Carolina, banking market were closed.
6. The combined market share of MJF and Northwestern Bank in
these markets in 1969 ranged from a low of 3.9 percent to a high of 29.3
percent, and averaged 15.3 percent.




on probable future competition that may have oc­
curred as a result o f this expansion.
In order to reduce the anticompetitive effect of its
proposal, Applicant has committed to divest by De­
cember 31, 1980, all MJF offices in five o f the eight
markets where the two firms were in direct com­
petition at the time of the original acquisition in 1969.7
The 1969 combined market shares in the five markets
affected by the proposed divestiture ranged from 14.1
percent to 29.3 percent and averaged 21.0 percent. Ap­
plicant proposes to retain offices in three markets
where the two firms were in direct competition in 1969.
Although the 1969 combined market shares in these
markets were 6.4 percent, 3.9 percent and 7.0 percent,
these combined market shares have declined to 2.8
percent, 2.4 percent, and 4.7 percent, respectively. In
view of the foregoing, it appears that the proposed re­
tention would continue to result in some reduction o f
existing competition but would have less significant ef­
fects on potential competition.
In its application, Applicant has submitted evidence
demonstrating that the acquisition o f MJF by Appli­
cant has resulted in substantial benefits to the public.
For example, MJF now makes all of its direct cash
loans on simple interest terms. In addition, MJF has
eliminated late fees on loans, and its customers are not
penalized by application of the “ Rule o f 78s” if they
elect to prepay their loans. The affiliation o f MJF with
Applicant also has led to the implementation of credit
counseling services at several MJF offices, and Appli­
cant has committed to redraft its notes and contracts in
“ plain English.”
On the basis of these and other facts o f record, the
Board concludes that the benefits to the public result­
ing from Applicant’s acquisition of MJF outweigh any
decrease in competition associated with the instant
proposal, in view of Applicant’s commitment to divest
the MJF offices mentioned above. Furthermore, there
is no evidence in the record indicating that the reten­
tion would result in any undue concentration of re­
sources, conflicts o f interests, unsound banking prac­
tices or other adverse effects on the public interest.
Based on the foregoing and other considerations re­
flected in the record, the Board has determined that
the balance o f the public interest factors the Board is
required to consider under section 4(c)(8) is favorable
and that the application should be approved. Accord­
ingly, the application is hereby approved on the condi­
tion that Applicant divest all offices of MJF in Wilkes,
Haywood, Iredell, Catawba and Rutherford Counties,

7.
The counties affected by the proposed divestiture are Wilkes,
Haywood, Iredell, Catawba, and Rutherford, North Carolina. The
Board expects that Applicant will use its best efforts to sell such of­
fices as going concerns, with substantially the same quality and type of
assets in the relevant product line and in an amount not less than the
amount held by those offices on February 1, 1980.

Legal Developm ents

North Carolina, by December 31, 1980. This determi­
nation also is subject to the conditions set forth in sec­
tion 225.4(c) of Regulation Y and to the Board’s au­
thority to require such modification or termination of
the activities of a holding company or any of its sub­
sidiaries as is necessary to assure compliance with the
provisions and purposes of the Act and the Board’s
regulations and orders issued thereunder, or to pre­
vent evasion thereof.
By order of the Board of Governors, effective April
8, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, and Partee. Absent and not voting: Gover­
nors Teeters and Rice.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D ep u ty S e creta ry o f the B oard.

Virginia National Bankshares, Inc.,
Norfolk, Virginia
O rder A pprovin g A cqu isitio n o f
A sse ts and Insurance A ctivities

Virginia National Bankshares, Inc., Norfolk, Virginia,
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 ac­
quire, through its wholly-owned subsidiary, VNB Real
Estate Loan Corporation (“ VNB Real Estate” ), cer­
tain assets, leases, and three offices of VNB Mortgage
Corporation (“ VNB Mortgage” ), Richmond, Virginia,
a subsidiary of Applicant’s subsidiary bank. VNB
Mortgage is a company engaged in the activities of
mortgage banking, including the origination, market­
ing, and servicing of residential and commercial loans.
Upon consummation o f this proposal, VNB Real Es­
tate will assume the mortgage banking business of
VNB Mortgage at the offices to be acquired in Upper
Darby and Camp Hill, Pennsylvania, and Wilmington,
Delaware. In addition, VNB Real Estate will engage in
the activities, from these offices, of acting as agent for
the sale of credit life and credit accident and health
insurance and mortgage redemption and mortgage ac­
cident and sickness insurance directly related to its ex­
tensions of credit and provision o f other financial serv­
ices. Such activities have been determined by the
Board to be closely related to banking (12 C.F.R.
§§ 225.4(a)(1),(3), and (9)).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published (44 F ed era l R e g iste r 8356 (1980)).



429

The time for filing comments and views has expired
and the application and all comments received have
been considered in light of the public interest factors
set forth in section 4(c)(8) of the Act (12 U .S.C .
§ 1843 (c)(8)).
Applicant, the second largest banking organization
in Virginia, controls Virginia National Bank
(“ Bank” ), Norfolk, Virginia, with total deposits o f ap­
proximately $2.0 billion, representing 11.2 percent of
total state deposits.1 VNB Mortgage, a wholly-owned
subsidiary of Bank operating pursuant to section
4(c)(5) o f the Act (12 U .S.C . § 1843(c)(5)), acquired
certain assets and leases from an unaffiliated company
on June 1, 1978. The proposed transaction would
transfer direct ownership o f VNB Mortgage from
Bank to Applicant. Under section 4(c)(5), VNB Mort­
gage is not authorized to conduct mortgage banking
operations at locations other than where Bank is au­
thorized to engage in business.2 Applicant now seeks
permission to operate VNB Mortgage under the au­
thority o f section 4(c)(8).
The Board regards the standards o f section 4(c)(8)
for the retention o f shares of a nonbanking company
previously operated by a bank holding company pur­
suant to section 4(c)(5), to be the same as the stan­
dards for any acquisition under section 4(c)(8). There­
fore, the Board must consider whether the acquisition
by VNB Mortgage in June 1978 resulted in any undue
concentration of resources, decreased or unfair com­
petition, conflicts of interests, or unsound banking
practices.3
VNB Mortgage became an indirect subsidiary of
Applicant in 1972 when Bank became affiliated with
Applicant. On June 1, 1978, VNB Mortgage acquired
assets, leases, three offices, and mortgage servicing
rights worth $321 million from Bogley, Harting and
Reese (“ BHR” ), Upper Darby, Pennsylvania, a cor­
poration then engaged in mortgage banking. The three
offices served markets approximated by the Phila­
delphia and Harrisburg, Pennsylvania, and Wilming­
ton, Delaware, Standard Metropolitan Statistical
Areas. Since Applicant did not compete for mortgage
banking business in these markets at the time o f the
acquisition of BH R’s assets, it appears that the June
1978 acquisition did not eliminate any existing com­
petition. The record also indicates that BHR operated
an office in Rockville, Maryland, which was closed by

1. All banking data are as of June 30, 1979.
2. In Independent Bankers A ssociation o f Am erica v. Heimann,
No. 78-0811 (D.D.C. 1978), the District Court overturned an Inter­
pretive Ruling by the Comptroller of the Currency (12 C.F.R.
§ 7.7380) that a national bank or its subsidiary may originate loans at
locations the national bank itself is not authorized to maintain a
branch office.
3. See Provident N ational M ortgage Corporation, 58 F e d e r a l R e ­
s e r v e B u l l e t in 936, (1972), and U nited Virginia Bankshares,
Inc., 58 F e d e r a l R e s e r v e B u l l e t i n 938, 939 (1972).

430

Federal Reserve Bulletin □ May 1980

Applicant upon consummation of the acquisition of
BHR’s assets; thus, it appears that the acquisition had
some adverse competitive effects. In view of the size
o f BHR and other facts of record, however, the overall
competitive effects of the June 1978 acquisition are
viewed as slightly adverse. Applicant’s entry into the
Philadelphia, Harrisburg, and Wilmington markets
provided a source of new and vigorous competition,
and approval of this application would preserve Appli­
cant as a competitor for mortgage banking business.
Approval would also permit Applicant to compete for
credit-related insurance business in these markets. Ac­
cordingly, it is concluded that the proposal can reason­
ably be expected to produce benefits to the public that
outweigh any adverse effects. Furthermore, there is no
evidence in the record indicating that consummation
o f this proposal would result in any undue concentra­
tion of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices, or
that any such adverse effects, with the exception of
those discussed above, resulted from the acquisition of
assets by VNB Mortgage in June 1978.
Based upon the foregoing and other considerations
reflected in the record, it has been determined, in ac­
cordance with the provisions of section 4(c)(8) of the
Act, that the acquisition of VNB Mortgage can reason­
ably be expected to produce favorable public benefits.
Accordingly, 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 sub­
sidiaries as the Board finds necessary to assure com­
pliance with the provisions and purposes of the Act
and the Board’s regulations and orders issued there­
under, or to prevent evasion thereof.
The transaction shall be consummated not later than
three months after the effective date o f this Order, un­
less such period is extended for good cause by the
Board or by the Federal Reserve Bank o f Richmond.
By order of the Secretary of the Board, acting pur­
suant to delegated authority from the Board of Gover­
nors, effective April 22, 1980.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D ep u ty S ecre ta ry o f the B oard.

Orders Under Section 2 o f Bank Holding
Company Act

Great American Corporation,
Baton Rouge, Louisiana



O rder G ranting D eterm in a tio n U nder the Bank
H olding C o m p a n y A c t

Great American Corporation, Baton Rouge, Louisiana
(“ Great American” ), a bank holding company within
the meaning o f the Bank Holding Company Act of
1956, as amended, (12 U .S.C . § 1841 et seq.) (“ A ct” ),
has requested determination under section 2(g)(3) of
the Act (12 U .S.C § 1841(g)(3)) that Great American
and its subsidiary, American Bank & Trust Company,
Baton Rouge, Louisiana (“ Bank” ), are not in fact ca­
pable of controlling All American Assurance Compa­
ny, Charleston, North Carolina (“ Assurance” ), Amer­
ican
Commonwealth
Financial
Corporation,
Louisville, Kentucky (“ ACFC” ), or I.C.H . Corpora­
tion, Louisville, Kentucky (“ I.C .H .” ), notwithstand­
ing the fact that ACFC, a subsidiary o f I.C .H ., is in­
debted to Great American and Bank as a result of
ACFC’s purchase o f 64 percent o f the voting shares o f
Assurance from Great American and Bank.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor are deemed to be indirectly owned or con­
trolled by the transferor unless the Board, after oppor­
tunity for hearing, determines that the transferor is not
in fact capable o f controlling the transferee. No
request for a hearing was made by Great American.
Great American has submitted evidence to the Board
to support its contention that it is not in fact capable of
controlling Assurance, ACFC, or I.C .H ., either direct­
ly or through Bank, and the Board has received no
contradictory evidence.
On the basis o f the following facts o f record, it is
hereby determined that Great American is not in fact
capable o f controlling Assurance, ACFC, or I.C.H.
The sale of Assurance’s shares by Great American ap­
pears to have been negotiated at arm’s-length. There
are no business relationships between Great Ameri­
can, Bank, or any o f their subsidiaries, and ACFC,
I.C .H ., or any o f their subsidiaries, apart for this
transaction. Furthermore, there are no officer or direc­
tor interlocks between Great American, Bank, or any
of its subsidiaries, on the one hand, and ACFC,
I.C.H ., or any o f their subsidiaries on the other hand.
ACFC’s indebtedness to Great American and Bank is
equal to approximately 52 percent o f the total pur­
chase price and is secured by surplus debenture issued
by ACFC which gives Great American and Bank no
interest in the stock o f Assurance. There is no evi­
dence that the financial resources of ACFC and I.C.H.
are not sufficient to repay the debt to Great American
and Bank. The terms governing the debt relationship
are those reasonably required in accordance with
sound and accepted banking practices. Finally, Great

Legal Developm ents

American has undertaken that it will not attempt to
exercise control over Assurance, ACFC, or I.C.H.
and ACFC and I.C .H . have undertaken not to allow
Great American to exercise control over them or As­
surance.
Accordingly, it is ordered that the request of Great
American for a determination pursuant to section
2(g)(3) is granted. This determination is based on rep­
resentations made to the Board by Great American,
Bank, ACFC and I.C.H. In the event that the Board
should hereafter determine that facts material to this
determination are otherwise than represented, or that
Great American, Bank, ACFC or I.C .H ., have failed
to disclose to the Board other material facts, this de­
termination may be revoked, and any change in the
facts and circumstances relied upon by the Board in
making this determination could result in the Board re­
considering the determination made herein.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(1)) effective April 16, 1980.
(Signed) T h e o d o r e E. A l l i s o n ,
[s e a l]

S ecreta ry o f the B oard.

L. E. S., Incorporated,
David City, Nebraska
O rder G ranting D eterm in a tio n U nder the Bank
H olding C om pan y A c t

L .E .S.,
Incorporated,
David
City,
Nebraska
(“ L .E .S .” ) ,a bank holding company within the mean­
ing o f § 2(a) o f the Bank Holding Company Act of
1956, as amended (12 U .S.C . § 1841 et seq.) (the
“ A ct” ), by virtue o f its ownership o f an interest of
David City Bank, David City, Nebraska (“ Bank” ),
has requested a determination, pursuant to the provi­
sions of section 2(g)(3) o f the Act (12 U .S.C . §
1841(g)(3)) that L .E .S. is not in fact capable of con­
trolling Bank, DCB Investment C o., Inc., David City,
Nebraska (“ D C B” ), or its principals, Lester E. Souba
and Lester W. Souba in connection with the sale of
Bank’s stock to DCB.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
control by the transferor, are deemed to be indirectly
owned or controlled by the transferor unless the
Board, after opportunity for hearing, determines that
the transferor is not in fact capable of controlling the
transferee.



431

It is hereby determined that L .E .S. is not, in fact,
capable of controlling Bank, DCB, or its principals,
Lester E. Souba and Lester W. Souba. This determi­
nation is based upon the evidence o f record in this
matter, including the following facts. L .E .S. is a small
closely-held corporation of which Mr. Lester E. Souba
owns 100 percent o f the outstanding voting shares.
L.E.S. divested o f Bank by selling 83 percent of
Bank’s outstanding shares to a newly-formed onebank holding company owned by Lester E. Souba and
his son, Lester W. Souba. Thus, L .E .S. now holds no
voting shares o f Bank. Inasmuch as Lester E. Souba
owns and controls all o f L .E .S ., the sale o f Bank to
DCB does not appear to have been a means o f perpetu­
ating L .E .S .’s control over Bank. Rather, on the basis
o f the above and other facts o f record, the Board con­
cludes that control o f L.E .S. resides with Lester E.
Souba, as an individual, and that it is not in fact capable
of controlling Mr. Souba or his son in their capacity as
transferees o f Bank or otherwise.
Accordingly, it is ordered, that the request o f L.E.S.
for a determination pursuant to section 2(g)(3) be, and
hereby is, granted. This determination is based upon
the representations made to the Board by L .E .S .,
DCB, Lester E. Souba and Lester W. Souba. In the
event the Board should hereafter determine that facts
material to this determination are otherwise than as
represented, or that L .E .S ., DCB, Lester E. Souba or
Lester W. Souba failed to disclose to the Board other
material facts, this determination may be revoked, and
any change in the facts or circumstances relied upon
by the Board in making this determination could result
in the Board reconsidering the determination made
herein.
By order of the Board o f Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(1)), effective April 29, 1980.
(Signed) T h e o d o r e E. A l l i s o n ,
[s e a l]

S e c re ta ry o f the B oard.

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

Powell Lumber Company,
Lake Charles, Louisiana
P rior C ertification P u rsu an t to the B ank H oldin g
C om pan y Tax A c t o f 1976

[Docket No. 7CR 76-164]
Powell Lumber Company, Lake Charles, Louisiana
(“ Powell” ) has requested a prior certification pursuant

432

Federal Reserve Bulletin □ May 1980

to section 1101(a) and 1101(c), as amended by section
2(a) of the Bank Holding Company Tax Act of 1976
(“ Tax Act” ), that its proposed divestiture of nonbank
assets and the proposed divestiture o f nonbank assets
by its subsidiary, Farmers Land and Canal Co.
(“ Farmers” ) Lake Charles, Louisiana, are necessary
or appropriate to effectuate section 4 o f the Bank
Holding Company Act (“ BHC A ct” ) 12 U .S.C .
§ 1843 et seq.). Powell proposes to transfer certain non­
banking property held by it and Farmers to two new
corporations created and availed of solely for the pur­
pose of receiving such property. The stock of the two
new corporations subsequently will be distributed on a
pro rata basis to the stockholders of Farmers and Pow­
ell, respectively.
In connection with this request, the following infor­
mation is deemed relevant for the purposes of issuing
the requested certification.1
1. Powell is a corporation organized under the laws
of the state of Louisiana on June 28, 1906. On Decem­
ber 22, 1938, Powell acquired 39 percent of the out­
standing shares of Farmers, a corporation organized
under the laws of the state of Louisiana. On August 25,
1969, Powell and Farmers each acquired 24,900 shares
o f American Bank o f Commerce (“ Bank” ), Lake
Charles, Louisiana, representing in the aggregate 49.8
percent, of Bank’s stock.
2. Powell became a bank holding company on D e­
cember 31, 1970, as a result of the 1970 amendments to
the Bank Holding Company Act by virtue of its direct
and indirect ownership and control of more than 25
percent of the outstanding voting shares o f Bank, and
it registered as such with the Board on May 31, 1971.
Powell would have been a bank holding company in
July 7, 1970, if the BHC Act Amendments by 1970 had
been in effect on such date, by virtue of its direct and
indirect ownership and control on that date of more
than 25 percent o f the outstanding voting shares of
Bank. Powell currently owns or controls 49,800
shares, representing 49.8 percent of the outstanding
voting shares of Bank.
3. Powell owns 39 percent of the outstanding voting
shares of Farmers. Pursuant to section 2(d)(1) of the
BHC Act, Farmers is currently a subsidiary of Powell

1. This information derives from Powell’s correspondence with the
Board concerning its request for this certification, Powell’s registra­
tion statement filed with the Board pursuant to the BHC Act, and
other records of the Board.




and would have been a subsidiary on July 7, 1970 if the
BHC Act Amendments had been enacted on that date.
4.
The nonbanking property to be divested by Pow­
ell consist o f lumbering, forrestry and real estate oper­
ations which it has held since prior to July 7, 1970.
Similarly, the nonbanking property to be divested by
Farmers consist o f its farming and irrigation opera­
tions that were acquired prior to July 7, 1970. Thus,
Powell and Farmers acquired property on or before
July 7, 1970, the disposition o f which would be neces­
sary or appropriate under section 4 o f the BHC Act, if
Powell were to remain a bank holding beyond Decem ­
ber 31, 1980, which property is “ prohibited property”
within the meaning o f section 1103(c) o f the Code.
On the basis o f the foregoing information, it is here­
by certified that:
A. Powell and Farmers are each a qualified bank
holding corporation within the meaning of section
1103(b) of the Code, and each satisfies the require­
ments of that section;
B. the nonbanking property that Powell and Farm­
ers propose to exchange for shares o f N ew Farmers
and N ew Powell, respectively, are “ prohibited proper­
ty ” within the meaning o f section 1103(c) of the Code;
C. the exchange o f certain nonbanking property of
Farmers described in paragraph 4 hereof for the shares
o f N ew Farmers and the distribution to the share­
holders of Farmers o f the shares o f N ew Farmers are
necessary or appropriate to effectuate section 4 o f the
BHC Act; and
D. the exchange o f certain nonbanking property of
Powell described in paragraph 4 hereof for the shares
o f N ew Powell and the distribution to the shareholders
o f Powell of the shares o f N ew Powell are necessary or
appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the representations
and commitments made to the Board by Powell and
upon the facts set forth above. In the event the Board
should hereafter determine that facts material to this
certification are otherwise than as represented by
Powell, or that Powell has failed to disclose to the
Board other material facts or to fulfill its com­
mitments, it may revoke this certification.
By order o f the Board o f Governors acting through
its General Counsel pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3)), effective April 2, 1980.
(Signed) G r i f f i t h L. G a r w o o d ,
[s e a l]

D e p u ty S ecreta ry o f the B oard.

Legal D evelopm ents

433

O r d e r s A p p r o v e d U n d e r B a n k H o l d in g C o m p a n y A c t
B y th e B o a r d o f G o v e r n o r s

During April 1980 the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors o f the Federal Reserve Sys­
tem, Washington, D.C. 20551.

Section 3

A p p lic a n t

First Financial Group of N ew Hampshire,
Inc., Manchester, N ew Hampshire
Tsvaiter Financial Corporation,
Chicago, Illinois

B o a rd action
(effective
d a te )

Bank(s)

First Bank and Trust Company, Meredith,
New Hampshire, et al.
Garfield Ridge Trust and Savings Bank,
Chicago,

April 21, 1980
April 7, 1980

Section 4
N on ban kin g
co m p a n y
(or a ctivity)

A p p lic a n t

Mellon National Corporation,
Pittsburgh, Pennsylvania

E ffective
d a te

To transfer ownership of Mellon National
Mortgage Company of Colorado, from
Mellon Bank N. A. to Laurel Mortgage
Co.

April 25, 1980

B y F ed era l 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

A p p lica n t

American Bancshares-Red River, Inc.,
Coushatta, Louisiana
Aurora Bancshares Corporation,
Aurora, Illinois
Breckenridge Bancorporation, Inc.,
Breckenridge, Colorado
CB & T Bancshares, Inc.,
Columbus, Georgia
Chisago Holding Company,
Chisago City, Minnesota
Commercial Company, Inc.,
Mason, Texas



B ank(s)

American Bank & Trust
Company, Coushatta,
Louisiana
Aurora National Bank,
Aurora, Illinois
Bank of Breckenridge,
Breckenridge, Colorado
Sumter County Bank,
Americus, Georgia
Tri-County National Bank,
Forest Lake, Minnesota
The Commercial Bank,
Mason, Texas

R ese rve
Bank

E ffective
d a te

Dallas

April 28, 1980

Chicago

April 18, 1980

Kansas City

April 18, 1980

Atlanta

April 22, 1980

Minneapolis

April 28, 1980

Dallas

April 17, 1980

434

Federal Reserve Bulletin □ May 1980

Section 3—Continued

A p p lica n t

B ank(s)

Concho Bancshares, Inc.,
San Angelo, Texas
Currie Bancorporation, Inc.,
Currie, Minnesota
Diboll State Bancshares, Inc.,
Diboll, Texas
Drexel Bancshares, Inc.,
Drexel, Missouri
FSB Holding Company, Kalona, Iowa

Southwest Bank o f San Angelo,
San Angelo, Texas
Currie State Bank,
Currie, Minnesota
Diboll State Bank,
Diboll, Texas
Bank of Drexel,
Drexel, Missouri
Farmers Savings Bank,
Kalona, Iowa
Farmers State Savings Bank,
Independence, Iowa
The First National Bank of
Elgin, Elgin, Illinois
First National Bank,
LeRoy, Minnesota
First Bank o f Commerce,
Columbia, Missouri
First National Bank o f West
University Place, Houston,
Texas
Garden City Bank, Garden
City, Missouri
Highland Park Bank and Trust,
Topeka, Kansas
The Jacksboro National Bank,
Jacksboro, Texas
Mainland Bank, Texas City,
Texas
Soulard Bank & Trust
Company, St. Louis,
Missouri
Centennial State Bank,
Lyons, Colorado
First Western Corporation,
Casper, Wyoming
First Commercial Bank o f Live
Oak, Live Oak, Florida
Bank of Toronto, Toronto,
South Dakota
The Commercial Bank,
Bowdon, Georgia
Valley National Bank o f Le
Sueur, Le Sueur, Minnesota
Citizens National Bank of
Whitley County, Columbia
City, Indiana

Fidelity Ban Corporation,
Independence, Iowa
Financial National Bancshares, Co.,
Elgin, Illinois
First Noble Holding Company,
LeRoy, Minnesota
First Union Bancorporation,
St. Louis, Missouri
First University Corporation,
Houston, Texas
Garden City Bancshares, Inc.,
Garden City, Missouri
Highland Bancshares, Inc.,
Topeka, Kansas
Jacksboro National Bancshares, Inc.,
Jacksboro, Texas
Mainland Bancorporation, Inc.,
Mainland Bank, Texas City, Texas
Manufacturers Bancorp, Inc.,
St. Louis, Missouri
National Western Bancorporation,
Loveland, Colorado
Second Western Corporation,
Casper, Wyoming
Suwannee County Bancorporation,
Live Oak, Florida
Toronto Bancorporation, Inc.,
Toronto, South Dakota
Trust Company of Georgia,
Atlanta, Georgia
Valley Bancorporation, Inc.,
Le Sueur, Minnesota
Whitley Financial Corp.,
Auburn, Indiana




R eserv e
B ank

E ffective
d a te

Dallas

April 25, 1980

Minneapolis

April 16, 1980

Dallas

April 25, 1980

Kansas City

March 31, 1980

Chicago

April 21, 1980

Chicago

April 17,1980

Chicago

April 16, 1980

Minneapolis

April 9, 1980

St. Louis

April 22, 1980

Dallas

April 28, 1980

Kansas City

April 11,1980

Kansas City

April 10, 1980

Dallas

April 21, 1980

Dallas

April 24, 1980

St. Louis

April 18, 1980

Kansas City

April 4, 1980

Kansas City

April 4, 1980

Atlanta

April 18,1980

Minneapolis

April 23,1980

Atlanta

April 15, 1980

Minneapolis

April 10, 1980

Chicago

April 22,1980

Legal Developm ents

435

Section 4

A p p lica n t

First Amtenn Corporation,
Nashville, Tennessee
Kiester Investments, Inc.,
Kiester, Minnesota
Manufacturers National Corporation,
Detroit, Michigan
Philadelphia National Corporation,
Philadelphia, Pennsylvania
Southern Bancorporation, Inc.,
Greenville, South Carolina
South Carolina National Corporation,
Columbia, South Carolina

N on ban kin g
com pan y
(or a ctivity)

First Amtenn Life Insurance
Company, Phoenix, Arizona
to continue to sell insurance as
a general insurance agent
Manucor Insurance
Corporation, Phoenix,
Arizona
retention of assets o f Colonial
Associates, Inc., San Diego,
California
Citizens Finance Service,
Moultrie, Georgia
Peoples Finance Corporation,
Richmond, Virginia

E ffective
d a te

R ese rv e
Bank

Atlanta

April 15, 1980

Minneapolis

April 23, 1980

Chicago

April 21, 1980

Philadelphia

April 16, 1980

Richmond

April 28, 1980

Richmond

April 3, 1980

P e n d in g C a s e s I n v o l v in g th e B o a r d o f G o v e r n o r s
*This list o f p en d in g c a se s d o e s n ot include suits
ag a in st the F ed era l R e se rve B anks in w hich the B oard
o f G overn ors is n ot n a m ed a p a rty .
A lb ert A . R a p o p o rt v. B o a rd o f G overn ors a n d M anu­
fa c tu rers H a n o ver Trust C o ., filed February 1980,

U .S.D .C . for the District of Columbia.
A m erican Trust C o. o f H a w a ii , e t a l., v. B o a rd o f G o v­
ernors, filed January 1980, U .S .D .C . for the District
o f Columbia.
In depen den t B ank C orporation v. B o a rd o f G over­
nors, filed October 1979, U .S.C . A. for the Sixth Cir­
cuit.
W iley v. U n ited S ta te s, e t al., filed September 1979,
U .S.D .C . for the District of Columbia.
C ounty N a tio n a l B an corporation a n d TGB C o. v.
B oa rd o f G overn o rs, filed September 1979,
U .S.C .A . for the Eighth Circuit.
E dwin F. G ordon v. B o a rd o f G o vern o rs, e t al., filed
August 1979, U .S .D .C . for the Northern District of
Georgia.
E dwin F. G ordon v. B o a rd o f G o vern o rs, e t a l., filed
August 1979, U .S .C .A . for the Fifth Circuit.
A m erican Bankers A ssociation v. B o a rd o f Governors,
e t al., filed August 1979, U .S.D .C . for the District of
Columbia.
G regory v. B o a rd o f G overn ors, filed July 1979,
U .S.D .C . for the District of Columbia.



D o n a ld W. R ieg el, Jr. v. F ed era l O pen M a rk et C o m ­
m ittee, filed July 1979, U .S .D .C . for the District of

Columbia.
C o n n ecticu t B an kers A sso c ia tio n , e t a l., v. B o a rd o f
G overnors, filed May 1979, U .S .C .A . for the Dis­

trict o f Columbia.
Ella Jackson e t a l., v. B o a rd o f G o vern o rs, filed May

1979, U .S.C .A . for the Fifth Circuit.
M em ph is Trust C o m p a n y v. B o a rd o f G overn ors, filed

May 1979, U .S .C .A . for the Sixth Circuit.
In d ep en d en t In su ran ce A g en ts o f A m erica , e t a l., v.
B o a rd o f G o vern o rs, filed May 1979, U .S .C .A . for

the District o f Columbia.
In d ep en d en t In su ran ce A g en ts o f A m erica , e t a l., v.
B o a rd o f G overn o rs, filed April 1979, U .S.C . A. for

the District o f Columbia.
In d ep en d en t In su ran ce A g e n ts o f A m erica , e t al. v.
B o a rd o f G overn ors, filed March 1979, U .S .C .A . for

the District o f Columbia.
C redit an d C o m m erce A m erica n In ve stm e n t, e t a l., v.
B o a rd o f G overn ors, filed March 1979 U .S.C . A. for

the District of Columbia.
In d ep en d en t B an kers A sso cia tio n o f T exas v. F irst
N a tio n a l B ank in D a lla s, et a l., filed July 1978,

U .S.D .C . for the Northern District o f Texas.
M id -N eb ra sk a B a n csh a res, Inc. v. B o a rd o f G o ver­
nors, filed July 1978, U .S.C .A . for the District o f

Columbia.

436

Federal Reserve Bulletin □ May 1980

Security B an corp a n d S ecu rity N a tio n a l B ank v.
B oard o f G overn ors, filed March 1978, U .S.C .A . for

the Ninth Circuit.
V ickars-H enry C orp. v. B o a rd o f G o v e rn o rs, filed De­

cember 1977, U .S .C .A . for the Ninth Circuit.




In vestm en t C o m p a n y In stitu te v. B o a rd o f G o vern o rs ,

filed September 1977, U .S.D .C . for the District o f
Columbia.
R o b ert F arm s, Inc. v. C o m p tro ller o f the C urrency, et
al., filed November 1975, U .S.D .C . for the Southern
District of California.

A1

Financial and Business Statistics
C ontents
D o m e s tic F in a n cia l S ta tis tic s

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

A3
A4
A5
A6

Assets and liabilities
All reporting banks
Banks with assets of $ 1 billion or more
A ll
Banks in N ew York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans

Monetary aggregates and interest rates
Factors affecting member bank reserves
Reserves and borrowings of member banks
Federal funds and repurchase agreements of
large member banks

P o l ic y I n s t r u m e n t s

A7
A8
A9

Federal Reserve Bank interest rates
Member bank reserve requirements
Maximum interest rates payable on time and
savings deposits at federally insured institutions
A 10 Federal Reserve open market transactions

A20
A 21

A24 Major nondeposit funds of commercial banks
A25 Gross demand deposits of individuals,
partnerships, and corporations

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

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

A25 Commercial paper and bankers dollar
acceptances outstanding
A26 Prime rate charged by banks on short-term
business loans
A26 Terms of lending at commercial banks
A l l Interest rates in money and capital markets
A28 Stock market—Selected statistics

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

A29 Savings institutions—Selected assets and
liabilities

Federal R eserve B a n k s

A 12 Bank debits and deposit turnover
A 13 Money stock measures and components
A14 Aggregate reserves and deposits of member
banks
A 15 Loans and investments of all commercial banks

C o m m e r c i a l B a n k A s s e t s a n d L ia b il it ie s

A 16 Last-Wednesday-of-month series
A 17 Call-date series
A 18 Detailed balance sheet, September 30, 1978




F e d e r a l F in a n c e

A30
A31
A32
A32

Federal fiscal and financing operations
U .S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U .S. Treasury—Types and
ownership
A33 U .S. government marketable securities—
Ownership, by maturity
A34 U .S. government securities dealers—
Transactions, positions, and financing
A35 Federal and federally sponsored credit
agencies—Debt outstanding

A2

Federal Reserve Bulletin □ May 1980

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

A36 N ew security issues—State and local
governments and corporations
A37 Open-end investment companies—N et sales and
asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations—A ssets and liabilities
A38 Business expenditures on new plant and
equipment
A39 Domestic finance companies—A ssets and
liabilities; business credit

R eal E state

A40 Mortgage markets
A41 Mortgage debt outstanding

International Statistics
A54
A55
A55
A56

U .S. international transactions—Summary
U .S. foreign trade
U .S. reserve assets
Foreign branches of U .S . banks—Balance sheet
data
A58 Selected U .S . liabilities to foreign official
institutions

R e p o r t e d b y B a n k s i n th e U n it e d S ta tes

A58
A59
A61
A62

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks’ own claims on foreigners
Banks’ own and domestic customers’ claims on
foreigners
A62 Banks’ own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches

C o n s u m e r I n s t a l l m e n t C r e d it

A42 Total outstanding and net change
A43 Extensions and liquidations

Flow of F unds

A44 Funds raised in U .S . credit markets
A45 Direct and indirect sources of funds to credit
markets

S e c u r it ie s H o l d i n g s a n d Tr a n s a c t i o n s

A64 Marketable U .S . Treasury bonds and notes—
Foreign holdings and transactions
A64 Foreign official assets held at Federal Reserve
Banks
A65 Foreign transactions in securities

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

Domestic Nonfinancial Statistics
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 producer prices
A52 Gross national product and income
A53 Personal income and saving




A66 Liabilities to unaffiliated foreigners
A67 Claims on unaffiliated foreigners

Interest a n d E x c h a n g e R ates

A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates

A69

Guide to Tabular Presentation and
Statistical Releases

Domestic Financial Statistics
1.10

A3

MONETARY AGGREGATES AND INTEREST RATES
1980

1979

1979

1980

Item
Q2

Q3

Q4

Nov.

Ql

Dec.

Jan.

Feb.

Mar.

- 4 .4
- 0 .2 '
- 1 6 .4 '
5 .7 '

6.7
5.1
- 2 6 .9
7.2

12.2 '
12.0 '
10.5'
12.5'
13.3'

- 3 .2
- 1.8
3.2
3.7
n.a.

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1

1
2
3
4

M em ber bank reserves
T o t a l ..............................................................................................................
Required .....................................................................................................
Nonborrowed ............................................................................................
Monetary base2 ........................................................................................

- 3 .7
- 3 .5
- 7 .5
4.8

5
6
7
8
9

Concepts o f money and liquid assets3
M -1A ............................................................................................................
M -1B ............................................................................................................
M -2 ..............................................................................................................
M -3 ..............................................................................................................
L .....................................................................................................................

7.8
10.7
10.2
8.8
13.1

8.8
10.1
10.3
10.3
11.7

Time and savings deposits
Commercial banks
10
T o t a l .........................................................................................................
11
Savings4 ...................................................................................................
12
Small-denomination tim e5 ...............................................................
13
Large-denomination tim e6 ...............................................................
14 Thrift institutions7 ...................................................................................

1.8
- 7 .4
22.5
- 7 .9
7.4

9.1
- 0 .4
21.5
6.0
7.4

12.5
- 1 5 .1
28.6
22.6
6.7

8.6
- 1 6 .8
28.1
10.6
2.4

11.7
- 2 9 .7
44.5
15.2
6.2

0.9
- 9 .7
18.9
- 7 .8
6.5

15 Total loans and securities at commercial banks8 .........................

11.9

15.8

3.4

11.5

- .5

4.1

5.0
4.7'
6.9
9.3

12.6
11.8 '
7.0
9.6

5.1
5.4
4.3
7.8

4.7
5.3
7.2
9.9
9 .2'

5.5
6.0
7.3
8.4
n.a.

1979
Q2

6.7
7.4
10.4
5.6
5.2
4.4
5.8
7.4
5.0'

1980

Q3

Dec.

2.8
4.2
9.6
10.3

6.2
7.5
7.7
7.5
8 .6 '

3.6
4 .0 '
6.8
7.9
8.4'

8.0
- 1 2 .3
24.6
6.8
- .9 '

16.2
- 1 6 .1
28.6
30.6
.7

7.3
- 3 4 .6
33.7
12.7
3.8

18.7

12.8

1979

Ql

Q4

16.3
12.1
30.0
7.6

2.6

1980
Jan.

Feb.

Mar.

Apr.

Interest rates (levels, percent per annum)
Short-term rates
Federal funds9 ..........................................................................................
Federal Reserve discount10 .................................................................
Treasury bills (3-month market yield) 1 1 ...........................................
Commercial paper (3-month) 11’1 2 ......................................................

10.18
9.50
9.38
9.85

10.94
10.21
9.67
10.64c

13.58
11.92
11.84
13.35

15.07
12.51
13.35
14.54

13.78
12.00
12.04
13.24

13.82
12.00
12.00
13.04

14.13
12.52
12.86
13.78

17.19
13.00
15.20
16.81

17.61
13.00
13.20
15.78

Long-term rates
Bonds
20
U.S. government1 3 ...............................................................................
21
State and local government1 4 ..........................................................
22
Aaa utility (new issue) 1 5 ...................................................................
23 Conventional mortgages16 ...................................................................

9.08
6.22
9.66
10.35

9.03
6.28
9.64
11.13

10.18
7.20
11.21
12.38

11.78
8.23
13.22
n.a.

10.18
7.22
11.25
12.50

10.65
7.35
11.73
12.80

12.21
8.16
13.57
14.10

12.49
9.17
14.00
16.05

11.42
8.63
12.90
15.55'

16
17
18
19

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

g




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

A4

Domestic Financial Statistics □ May 1980

1.11

FACTORS AFFECTING MEMBER BANK RESERVES
Millions of dollars
Monthly averages of
daily figures

Weekly averages of daily figures for week-ending

1980

1980

Factors

Feb.

Mar.P

Apr . p

Mar. 19p

Mar. 26 p

Apr. 2p

Apr. 9 p

Apr. 16 p

Apr. 23 p

Apr. 30 p

Supplying R eserve F unds
1 Reserve Bank credit o u tsta n d in g ..................................

135,485

136,504

139,098

137,239

137,270

136,966

138,007

137,880

141,682

140,025

2 U .S. government securities1 ...........................................
3
Bought outright .............................................................
4
Held under repurchase agreements ......................
5 Federal agency securities ...............................................
6
Bought outright .............................................................
7
H eld under repurchase agreements ......................

115,028
114,842
186
8,299
8,216
83

115,902
115,473
429
8,341
8,212
129

118,636
118,268
368
8,910
8,833
77

115.653
115.653
0
8,211
8,211
0

116,837
116,638
199
8,420
8,211
209

117,315
116,235
1,080
8,447
8,211
236

117,629
116,987
642
8,940
8,879
61

117.688
117.688
0
8.877
8.877
0

120,823
119,886
937
9,146
8,877
269

119.509
119.509
0
8.877
8.877
0

Acceptances ........................................................................
Loans .....................................................................................
Float ........................................................................................
Other Federal Reserve assets ......................................

67
1,655
5,617
4,818

76
2,828
4,658
4,699

55
2,444
3,902
5,151

0
3,001
5,674
4,699

36
2,660
4,459
4,857

187
2,262
3,750
5,005

82
2,386
4,081
4,890

0
2,276
3,896
5,144

155
2,555
3,741
5,263

0
2,664
3,651
5,324

12 Gold s t o c k ............................................................................
13 Special drawing rights certificate a c c o u n t................
14 Treasury currency ou tsta n d in g ......................................

11,172
2,968
13,059

11,172
2,968
13,132

11,172
2,968
13,209

11,172
2,968
13,127

11,172
2,968
13,146

11,172
2,968
13,193

11,172
2,968
13,186

11,172
2,968
13,209

11,172
2,968
13,218

11,172
2,968
13,229

15 Currency in circulation ....................................................
16 Treasury cash holdings ....................................................
Deposits, other than member bank reserves, with
Federal Reserve Banks
17
T rea su ry ............................................................................
18
F o r e ig n ...............................................................................
19
Other2 ...............................................................................

121,591
477

122,437
535

123,708
593

122,783
532

122,503
540

122,847
576

123,807
585

124,097
593

123,740
593

123,280
590

3,379
322
324

2,773
346
403

2,647
346
500

2,514
346
535

3,243
359
400

2,211
341
378

2,258
379
328

1,256
323
447

3,362
315
625

3,845
365
571

20 Other Federal Reserve liabilities and c a p ita l.........
21 Reserve accounts3 .............................................................

4,713
31,878

4,881
32,400

4,990
33,663

4,840
32,955

4,924
32,587

5,044
32,900

4,933
33,042

4,907
33,606

5,117
35,289

5,007
33,735

Apr. 16

Apr. 23

Apr. 30

8
9
10
11

A bsorbing R eserve Funds

End-of-month figures

Wednesday figures

1980

1980

Feb.

Mar.P

Apr.P

22 Reserve bank credit outstanding ..................................

134,555

136,313

23
24
25
26
27
28

U .S. government securities1 ......................................
Bought outright ........................................................
H eld under repurchase agreements ..................
Federal agency securities ...........................................
Bought outright ........................................................
H eld under repurchase agreements ..................

115,171
114,550
621
8,247
8,216
31

116,657
115,734
923
8,291
8,211
80

29
30
31
32

Acceptances ...................................................................
Loans .................................................................................
Float ...................................................................................
Other Federal Reserve assets ..................................

205
3,364
3,154
4,414

33 Gold s t o c k ............................................................................
34 Special drawing rights certificate a c c o u n t................
35 Treasury currency o u tsta n d in g ....................................

Mar. 19

Mar. 26

Apr. 2

Apr. 9

141,107

132,506

118.825
118.825
0
8.877
8.877
0

111,808
111,808
0
8,211
8,211
0

139,097

133,204

133,627

139,391

140,713

141,107

117.830
117.830
0
8,211
8,211
0

113.803
113.803
0
8,211
8,211
0

112.561
112.561
0
8.879
8.879
0

117.015
117.015
0
8.877
8.877
0

119,611
119,402
209
9,125
8,877
248

118.825
118.825
0
8.877
8.877
0

171
2,502
3,682
5,010

0
4,770
3,072
5,563

0
2,859
4,738
4,890

0
4,651
3,382
5,023

0
2,108
3,978
5,104

0
1,890
5,051
5,246

0
3,579
4,639
5,281

0
2,962
3,646
5,369

0
4,770
3,072
5,563

11,172
2,968
13,259

11,172
2,968
13,352

11,172
2,968
13,244

11,172
2,968
13,146

11,172
2,968
13,146

11,172
2,968
13,186

11,172
2,968
13,186

11,172
2,968
13,218

11,172
2,968
13,218

11,172
2,968
13,244

121,436
525

122,943
586

123,776
605

122,948
530

122,874
540

123,533
580

124,502
587

124,410
591

123,688
592

123,796
585

2,417
450
350
4,668
32,108

2,334
468
313
4,886
32,270

4,561
648
553
5,066
33,282

3,827
284
492
4,646
27,065

2,998
368
342
4,773
34,488

2,057
325
322
4,678
29,035

1,410
276
283
4,662
29,233

3,164
342
494
4,848
32,900

5,212
322
571
4,983
32,703

4,561
648
553
5,066
33,282

S upplying R eserve F unds

A bsorbing R eserve F unds
36 Currency in circulation ....................................................
37 Treasury cash holdings ....................................................
Deposits, other than member bank reserves, with
Federal Reserve Banks
38
T rea su ry ............................................................................
39
F o r e ig n ...............................................................................
40
Other2 ...............................................................................
41 Other Federal Reserve liabilities and c a p ita l.........
42 Reserve accounts3 .............................................................

1. Includes securities loaned— fully guaranteed by U .S. government securities
pledged with Federal Reserve Banks— and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes special deposits under the credit restraint program held by money
market mutual funds and other financial intermediaries and held by nonmember
banks against managed liabilities.




3. Includes reserves of member banks, Edge Act corporations and U .S. agencies
and branches of foreign banks.
N ote : For amounts of currency and coin held as reserves, see table 1.12

Member Banks
1.12

RESERVES AND BORROWINGS

A5

Member Banks

Millions of dollars
Monthly averages of daily figures
Reserve classification

1979

1978
D ec.

A ll m em ber banks
Reserves
A t Federal Reserve Banks .
Currency and coin ................
Total held1 ................................
Required .............................
E xcess1 ..................................
Borrowings at Reserve Banks2
6
Total ...........................................
7
Seasonal ....................................
1
2
3
4
5

Large banks in New York City
8 Reserves held .............................
9
Required ..................................
10
Excess ......................................
11 Borrowings2 ..................................
Large banks in Chicago
12 Reserves held .............................
13
Required ..................................
14
Excess ......................................
15 Borrowings2 ..................................
Other large banks
16 Reserves held .............................
17
Required ..................................
18
Excess ......................................
19 Borrowings2 ..................................
A ll other banks
20 Reserves held .............................
21
Required ..................................
22
Excess ......................................
23 Borrowings2 .................................
Edge corporations
24 Reserves held .............................
25
Required ..................................
26
Excess ......................................
U.S. agencies and branches
27 Reserves held .............................
28
Required ..................................
29
Excess ......................................

Aug.

Sept.

1980
Nov.

Oct.

D ec.

Jan.

Feb.

Mar . p

Aprils

31,158
10,330
41,572
41,447
125

30,006
10,523
40,687
40,494
193

29,986
10,726
40,868
40,863
5

31,455
10,681
42,279
42,007
272

32,030
10,737
42,908
42,753
155

32,473
11,344
43,972
43,578
394

32,712
12,283
45,170
44,928
242

31,878
11,063
43,156
42,966
190

32,400
10,729
43,352
42,907
445

33,663
10,895
44,769
44,678
91

874
134

1,097
177

1,344
169

2,022
161

1,906
146

1,473
82

1,241
75

1,655
96

2,828
152

2,443
156

7,120
7,243
-123
99

6,408
6,427
-1 9
79

6,437
6,378
59
87

6,915
6,855
60
180

6,913
6,932
-1 9
143

7,401
7,326
75
66

7,758
7,760
-2
26

7,168
7,205
-3 7
125

7,276
7,194
82
60

7,603
7,655
-5 2
81

1,907
1,900
7
10

1,694
1,706
-1 2
6

1,654
1,760
-1 0 6
80

1,863
1,859
4
136

1,940
1,950
-1 0
122

2,036
2,005
31
90

2,051
2,063
-1 2
60

1,968
1,941
27
97

1,886
1,961
-7 5
137

2,150
2,173
-2 3
60

16,446
16,342
104
276

16,370
16,321
49
484

16,426
16,491
-6 5
600

16,840
16,799
41
883

16,970
17,004
-3 4
803

17,426
17,390
36
707

18,078
18,065
13
647

17,246
17,265
-1 9
729

17,029
17,135
-1 0 6
1,479

17,644
17,991
-3 4 7
1,287

16,099
15,962
137
489

16,215
16,040
175
528

16,351
16,234
117
577

16,571
16,422
149
823

16,582
16,398
184
838

16,734
16,536
198
610

16,904
16,692
212
508

16,403
16,229
174
704

16,261
16,233
28
1,152

16,314
16,367
-5 3
1,015

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

90
72
18

308
288
20

336
303
33

339
323
16

328
303
25

317
300
17

339
299
40

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

195
181
14

39
18
21

40
25
15

43
23
20

90
84
6

198
193
5

Apr. 16p

Apr. 23 p

Apr. 30 p

Weekly averages o f daily figures for week (in 1980) ending
Feb. 27
A ll m em ber banks
Reserves
At Federal Reserve Banks .
Currency and coin ................
Total held1 ................................
Required .............................
Excess1 ..................................
Borrowings at Reserve Banks2
35
Total ...........................................
36
Seasonal ....................................

30
31
32
33
34

Large banks in New Y ork City
37 Reserves held .............................
38
Required ..................................
39
Excess ......................................
40 Borrowings2 ..................................
Large banks in Chicago
41 Reserves held .............................
42
Required ..................................
43
Excess ......................................
44 Borrowings2 ..................................
Other large banks
45 Reserves held .............................
46
Required ..................................
47
Excess ......................................
48 Borrowings2 ..................................
A ll other banks
49 Reserves held .............................
50
Required ..................................
51
Excess ......................................
52 Borrowings2 ..................................
Edge corporations
53 Reserves held .............................
54
Required ..................................
55
Excess ......................................
U.S. agencies and branches
56 Reserves held .............................
57
Required ..................................
58
Excess ......................................

Mar. 5

Mar. 12

Mar. 26 p

Apr. 2p

Apr. 9p

31,867
10,711
42,792
42,999
-2 0 7

31,902
10,883
42,998
42,467
531

30,755
11,425
42,409
42,331
78

32,955
10,348
43,530
43,307
223

32,587
10,261
43,073
42,941
132

32,900
10,766
43,880
43,482
398

33,042
11,094
44,350
44,151
199

33,606
11,039
44,854
44,615
239

35,289
10,184
45,681
45,258
423

33,735
11,299
45,244
45,028
216

2,060
110

2,506
114

3,438
140

3,001
155

2,660
111

2,262
165

2,386
154

2,276
140

2,555
159

2,664
172

7,061
7,244
-1 8 3
207

7,053
6,963
90
13

7,022
7,055
-3 3
29

7,325
7,413
-8 8
80

7,083
7,074
9
71

7,498
7,471
27
89

7,67 4
7,452
222

7,560
7,712
-1 5 2
194

7,926
7,785
141
44

7,671
7,725
-5 4
92

1,883
1,893
-1 0
47

1,922
1,899
23
291

1,891
1,909
-1 8
288

1,938
2,004
-6 6
0

1,779
1,985
-2 0 6
117

1,970
2,006
-3 6
12

2,318
2,265
53
10

2,161
2,239
-7 8
68

1,984
2,150
-1 6 6
54

2,209
2,084
125
122

17,044
17,231
-1 8 7
908

17,251
17,054
197
1,187

16,846
16,926
-8 0
2,021

17,106
17,256
-1 5 0
1,670

16,789
17,157
-3 6 8
1,342

17,525
17,327
198
978

17,223
17,663
-4 4 0
1,338

17,794
17,933
-139
1,056

17,972
18,347
-375
1,345

17,815
18,210
-3 9 5
1,484

16,455
16,314
141
898

16,402
16,229
173
1,015

16,236
16,060
176
1,100

16,252
16,208
44
1,251

16,326
16,352
-2 6
1,130

16,305
16,271
34
1,183

16,175
16,119
56
1,038

16,184
16,177
7
958

16,332
16,556
-2 2 4
1,112

16,628
16,644
-1 6
966

309
298
11

307
277
30

319
296
23

358
335
23

298
282
16

341
305
36

327
272
55

368
340
28

328
287
41

317
293
24

40
19
21

63
45
18

95
85
10

101
91
10

101
91
10

107
102
5

380
380
0

216
214
2

141
133
8

80
72
8

1.
Adjusted to include waivers of 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 merged into an
existin g m em ber bank, or w nen a nonm em b er bank joins the Federal




Mar. 19p

Reserve System. For weeks for which figures are preliminary, figures by class of
bank do not add to total because adjusted data by class are not available.
2. Based on closing figures.

A6
1.13

Domestic Financial Statistics □ May 1980
FEDERAL FUNDS AND REPURCHASE AGREEMENTS

Large Member Banks*

Averages of daily figures, in millions of dollars
1980, week ending W edneday
By maturity and source
Mar. 5 '

One day and continuing contract
1 Commercial banks in U .S ..........................................................
2 Other depositary institutions, foreign banks and foreign
official institutions, and U .S . government agencies
3 Nonbank securities d e a le r s ......................................................
4 A ll other .......................................................................................

Mar. 12

Mar. 19

Mar. 26

Apr. 2

Apr. 9

Apr. 16

Apr. 23

Apr. 30

46,985

48,709

45,820'

42,320

44,598

50,537

48,918

46,309

44,024

12,832
1,696
13,489

13,216
1,863
13,798'

13,386
1,625'
14,527'

13,738
1,556
13,816'

12,967
1,595
13,721

11,711
1,090
12,276

11,486
1,065
13,200

12,100
1,359
13,196

12,169
1,222
13,142

A ll other maturities
5 Commercial banks in U .S ..........................................................
6 Other depositary institutions, foreign banks and foreign
official institutions, and U .S. government agencies
7 Nonbank securities d e a le r s ......................................................
8 All other .......................................................................................

5,307

4,988

4,853'

4,990

5,109

6,250

5,677

6,054

6,208

6,383
2,188
10,347

6,194
2,186
10,313''

6,151
2,302'
8,872'

6,164
2,290
9,500'

6,315
2,283
9,430

7,023
2,134
10,533

6,640
2,499
8,948

6,622
2,375
9,059

6,807
2,279
8,852

M emo : Federal funds and resale agreement loans in ma­
turities of one day or continuing contract
9 Commercial banks in U .S ..........................................................
10 Nonbank securities d e a le r s ......................................................

14,824
2,296

12,814
2,312

14,255
1,980

15,903
1,815

14,849
2,217

14,179
2,266

13,897
2,330

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




13,440
2,269

13,582
1,828

Policy Instruments
1.14

A7

FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Loans to member banks
Loans to all others
under sec. 13, last par.2

Under sec. 10(b) 1
Under secs. 13 and 13a3

Federal Reserve
Bank

, Special rate4

Regular rate
Rate on
4/30/80

Effective
date

13
13
13
13
13
13

2/19/80
2/15/80
2/19/80
2/15/80
2/15/80
2/15/80

Boston .........
New York ..
Philadelphia .
Cleveland . . .
Richmond . . .
Atlanta .........

13
13
13
13
13
13

C h ic a g o .........
St. L o u is ----M inneapolis .
Kansas City .
Dallas ...........
San Francisco

2/15/80
2/15/80
2/15/80
2/19/80
2/15/80
2/15/80

Previous
rate

12
12
12
12

12
12
12
12

12
12
12

12

Rate on
4/30/80

Effective
date

13
13l 2
/
13V2
13 Vi
13l z
/
13 Vi

2/19/80
2/15/80
2/19/80
2/15/80
2/15/80
2/15/80

l3Vz
13 Vi
13 Vi

2/15/80
2/15/80
2/15/80
2/19/80
2/15/80
2/15/80

V i
hV
YiVi

i3 >
k

Previous
rate

Rate on
4/30/80

Effective
date

12Vi

14
14
14
14
14
14

2/19/80
2/15/80
2/19/80
2/15/80
2/15/80
2/15/80

14
14
14
14
14
14

2/15/80
2/15/80
2/15/80
2/19/80
2/15/80
2/15/80

nVi
12V2
12 h

\2V
i
XlVi

12Vi
\2Yi

nvi
nVi
YlVi
\2V
i

Previous
rate

Rate on
4/30/80

Effective
date

13
13
13
13
13
13

16
16
16
16
16
16

2/19/80
2/15/80
2/19/80
2/15/80
2/15/80
2/15/80

15
15
15
15
15
15

13
13
13
13
13
13

16
16
16
16
16
16

2/15/80
2/15/80
2/15/80
2/19/80
2/15/80
2/15/80

15
15
15
15
15
15

Previous
rate

Range of rates in recent years5

In effect D ec. 31, 1970 ................
1 9 7 1 _ Jan

8
15
19
22
29
Feb. 13
19
July 16
23
Nov. 11
19
Dec. 13
17
24

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

1973— Jan. 15
Feb. 26
Mar. 2
Apr. 23
May 4

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

1 1 ....................................

18 .............................
June 11 .............................
15 .............................

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N .Y .

5V2

5Vi

5V4-5 Vi

Effective date

5V4
5V4
5V4
5
5
5
43/4
5
5
5
43/4
43/4
4Vi
4V2

5-51/4
5-5 V
4
5
43
/4-5
43/4
43
/4-5
5
43 5
/V
43/4
41/2- 43/4
4V^-43
/4
4 ¥2
5
5-5 Vi
5 Vi
5 h -5 3
/4
53
/4

53 -6
A
6
6 - 6 V2
6 V2

5
5 Vi
51/2
5V2
53
/4

6
6
6 V2
6 Vi

7
7 -7 1/2
IV 2

F.R.
Bank
of
N.Y.
7
IV 2
IV 2

1973— July
2
Aug. 14
23

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

1974— Apr. 25
30
D ec. 9
16

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

IV 2 -8
8
73
/4-8
73
/4

8
8
73
/4
73
/4

1975— Jan.

6
10
24
Feb. 5

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

IV4
IV4
1V4

1V4

7

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

Mar. 10
14
May 16

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

6 3 -7 !/4
/4
63
/4
6!/4^63
/4
6V
4
6 - 6 !/4

63
/4
63
/4
61/4
61/4
6

Effective date

1977— Sept. 2
Oct. 26

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

1978— Jan.

71/4
71/4

19
23
Nov. 22
26

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

5 1 2-6
/
5Vi

51/2

51/4-51/2

51/4

5X
/4

5!/4

1977— Aug. 30
31

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

5 !/4 -5 3
/4
51/ 4- 53/4

5i/4
53
/4

1976— Jan.

1. Advances secured to the satisfaction of the Federal Reserve Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at the section
13 rate.
2. Advances to individuals, partnerships, or corporations other than member
banks secured by direct obligations of, or obligations fully guaranteed as to prin­
cipal and interest by, the U .S . government or any agency thereof.
3. Discounts or eligible paper and advances secured by such paper or by




Range (or
level)—
All F.R.
Banks

Effective date

9 ..................
20 ..................
May 11 ..................
12 ..................
July
3 ..................
10 ..................
Aug. 2 1 ....................
Sept. 22 ..................
Oct. 16 ..................
20 ..................
Nov. 1 ..................
3 ..................

1979— July 20
Aug. 17
20
Sept. 19

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N .Y .

53
/4
6

53
/4
6

6-6
6 V2
6 V2- I
1

7-7!/4
7 ! /4 -7 3
/4
73
/4

8
8-8 Vi
8 V2
8 V2- 9 V2
9V2

6 V2
6 V1
1
1

1V4
1V4
73
/4

8
m
8 V2
9 V2
9 Vi

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

10
10- 101/2
10 Vi
101/ 2-11

21

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

8
10

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

11
1 1 -1 2
12

11
11
12
12

1980— Feb. 15 ..................
19 ..................
In effect Apr. 30, 1980

12-13
13
13

13
13
13

5 Vi

Oct.

.........

10

10 Vi
10 Vi

U.S. government obligations or any other obligations eligible for Federal Reserve
Bank purchase.
4. Applicable to special advances described in section 201.2(e)(2) of Regulation
.A
5. Rates under secs. 13 and 13a (as described above). For description and earlier
data, see the following publications of the Board of Governors: Banking and
Monetary Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975,
1972-1976, 1973-1977, and 1974-1978.

.

A8
1.15

Domestic Financial Statistics □ May 1980
MEMBER BANK RESERVE REQUIREMENTS'
Percent of deposits
Requirements in effect
April 30, 1980

Type of deposit, and deposit interval
in millions of dollars

Previous requirements

Percent
N et dem and2
0 -2 .......................................................................................................................................
2-10 ....................................................................................................................................
10-100
100-400 ..............................................................................................................................
Over 400 ...........................................................................................................................

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

Time and savings 2'3 4
S a v in g s ................................................................................................................................
Tim e5
0-5, by maturity
30-179 days ..............................................................................................................
180 days to 4 y e a r s ..............................................................................................
4 years or more .....................................................................................................
Over 5, by maturity
30-179 days ..............................................................................................................
180 days to 4 y e a r s ...............................................................................................
4 years or more .....................................................................................................

Effective date

Percent

7
9V2
ll3
/4
123
/4
1614

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

IVi
10
12
13
16 Vi

2/13/75
2/13/75
2/13/75
2/13/75
2/13/75

3

3/16/67

3>/2

3/2/67

3

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

3 Vi
3
3

3/2/67
3/16/67
3/16/67

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

5
3
3

2 Vz
1

6

2 Yi
1

Effective date

10/1/70
12/12/74
12/12/74

Legal limits
Minimum
Net demand
Reserve city banks ...................................................................................................
Other banks ................................................................................................................
Borrowings from foreign b a n k s .................................................................................
1. For changes in reserve requirements beginning 1963, see Board’s Annual
Statistical D igest, 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 of the deposits of each bank. Dem and deposits subject to reserve
requirements are gross demand deposits minus cash items in process of collection
and demand balances due from domestic banks.
(b) The Federal Reserve Act specifies different ranges of 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 of more than $400 million is considered to have the character of business
of a reserve city bank. The presence of the head office of such a bank constitutes
designation of 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
of $400 million or less are considered to have the character of business of 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 Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U .S residents were reduced to zero from 4 percent and
1 percent, respectively. The Regulation D reserve requirement on borrowings
from unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations are subject to the same reserve require­
ments as deposits of member banks.
3. Negotiable order of withdrawal (NO W ) accounts and time deposits such as




Maximum

10
7
3
0

22
14
10
22

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 Nov. 2, 1978, a supplementary reserve requirement o f 2 percent
was imposed on large time deposits of $ 100,000 or m ore, obligations of affiliates,
and ineligible acceptances.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a mar­
ginal reserve requirement of 8 percent was added to managed liabilities in excess
of a base amount, and with the maintenance period beginning Apr. 3, 1980, the
requirement was increased to 10 percent. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U .S . gov­
ernment and federal agency securities, federal funds borrowings from nonm ember
institutions, and certain other obligations. In general, the base for the marginal
reserve requirement was originally $100 million or the average amount o f the
managed liabilities held by a member bank, Edge corporation, or family o f U .S.
branches and agencies of a foreign bank for the two statement weeks ending Sept.
26, 1979. For the computation period beginning Mar. 20, 1980, the base was
lowered by (a) 7 percent or (b) the decrease in an institution’s U .S . office gross
loans to foreigners and gross balances due from foreign offices o f other institutions
between the base period (Sept. 13-26, 1979) and the week ending Mar. 12, 1980,
whichever is greater. In addition, the base will be reduced further after Mar. 19,
1980, to the extent that such foreign loans and balances continue to decline. The
minimum base remains at $100 million.
N o t e . Required reserves must be held in the form of deposits with Federal
Reserve banks or vault cash.

Policy Instruments
1.16

A9

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

Type and maturity of deposit

In effect Apr. 30, 1980
Percent

1 Savings ..........................................................................................
2 Negotiable order of withdrawal accounts 2 ....................
Time accounts 4
Fixed ceiling rates by maturity
3
30-89 days ...............................................................................
4
90 days to 1 year .................................................................
5
1 to 2 years 5 ..........................................................................
6
2 to 2 Vi years 5 ......................................................................
7
2Vi to 4 years 5 ......................................................................
8
4 to 6 years 6 ..........................................................................
9
6 to 8 years 6 ..........................................................................
10
8 years or more 6 .................................................................
11
Issued to governmental units (all maturities)8 .........
12
Individual retirement accounts and Keogh (H .R . 10)
plans (3 years or m ore)8-9 ........................................
13
14

Special variable ceiling rates by maturity
6 months m oney market time deposits1 0 ....................
2Yi years or m o r e .................................................................

Effective
date

5V
4
5

7/1/79
1/1/74

5^4
53/4

8/1/79
1/1/80

6

7/1/73

6V2
7Va
7Vi
73/4
8

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

8

6/1/78

)

(n)

)

1. July 1, 1973, for mutual savings banks; July 6 , 1973 for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW ) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was
extended to similar institutions throughout New England on Feb. 27, 1976, and
in New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979.
3. No separate account category.
4. For exceptions with respect to certain foreign time deposits see the F e d e r a l
R e s e r v e B u l l e t i n for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­
ruary 1968 (p>. 167).
5. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
6 . No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retire­
ment Account (IR A ) or a Keogh (H .R . 10) plan established pursuant to the
Internal Revenue Code. The $1,000 minimum requirement was removed for such
accounts in Decem ber 1975 and November 1976 respectively.
7. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however,
the amount of such certificates that an institution could issue was limited to 5
percent of its total time and savings deposits. Sales in excess of that amount, as
well as certificates of less than $ 1,000, were limited to the 6 V percent ceiling on
2
time deposits maturing in 2 Vl years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
8 . Accounts subject to fixed rate ceilings. See footnote 6 for minimum denom­
ination requirements.
9. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IRA and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2 Vi year or more variable ceiling cer­
tificates or in 26-week money market certificates regardless of the level of the
Treasury bill rate.
10. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.




Savings and loan associations and
mutual savings banks

Previous maximum
Percent

Effective
date

In effect Apr. 30, 1980
Percent

7/1/73

7/1/79
1/1/74

(3)

5
5 Vl
5Yi

53/4
53
/4

(77,4
>^
(37 3/4
),
73
/4

Effective
date

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

(3)
6

1/1/80

6I
/2

(')

11/1/73

73 4
/

63
/4

V
/7

0

Previous maximum
Percent

54
V
(3)
(3)

5/4
3
53
/4

6
6

O

Effective
date

0)

0)

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

’ 12/23/74'

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

7
7Vz
?
)
(3) ,

7/6/77

6/1/78

73/4

7/6/77

(n)

(1)
3

8

(in

(u )

(1)
2

7/4
3

(1)
3

1l/i/73
' 12/23/74

(n )

11. 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 (auction average) on most
recently issued 6-m onth U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate
for savings and loan associations and mutual savings banks was Va percentage point
higher than the rate for commercial banks. Beginning Mar. 15, 1979, the Va per­
centage point interest differential is removed when the 6-m onth Treasury bill rate
is 9 percent or more. The full differential is in effect when the 6-m onth bill rate
is 83 percent or less. Thrift institutions may pay a maximum 9 percent when the
/4
6-m onth bill rate is between 8-V and 9 percent. Also effective March 15, 1979,
4
interest compounding was prohibited on 6-month money market time deposits at
all offering institutions. For both commercial banks and thrift institutions, the
maximum allowable rates in April were as follows: April 3, 14.804; April 10,
14.226; April 17, 13.549; April 24, 11.892.
12. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks are authorized to offer variable ceiling accounts with no
required minimum denomination and with maturities of 2Vi years or more. The
maximum rate for commercial banks is 3 percentage points below the yield on
/4
2Vi year U.S. Treasury securities; the ceiling rate for thrift institutions is Va per­
centage point higher than that for commercial banks. Effective March 1, 1980, a
temporary ceiling of l l 3 percent was placed on these accounts at commercial
/4
banks; the temporary ceiling is 12 percent at savings and loan associations and
mutual savings banks. These ceilings were in effect from March 1 to April 30,
1980.
13. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were authorized to offer variable
ceiling accounts with no required minimum denomination and with maturities of
4 years or more. The maximum rate for commercial banks was W a percentage
points below the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift
institutions was Va percentage point higher than that for commercial banks.
N o t e . Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526,
respectively. Title II of the Depository Institutions Regulation and Monetary Con­
trol Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish
maximum rates of interest payable on deposits to the Depository Institutions
Deregulation Committee. The maximum rates on time deposits in denominations
of $100,000 or more with maturities of 30-89 days were suspended in June 1970;
such deposits maturing in 90 days or more were suspended in May 1973. For
information regarding previous interest rate ceilings on all types of accounts, see
earlier issues of the interest rate ceilings on all types of accounts, see earlier issues
of the F e d e r a l R e se r v e B u ll e t i n , the Federal Home Loan Bank Board Journal
and the Annual Report of the Federal Deposit Insurance Corporation.

A10
1.17

Domestic Financial Statistics □ May 1980
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1979
1977

Type of transaction

1978

1980

1979
Oct.

Sept.

Nov.

D ec.

Jan.

Feb.

Mar.

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

Treasury bills
Gross purchases ........................................................
Gross sales .................................................................
Exchange ......................................................................
Redemptions ...............................................................

5
6
7
8
9

Others within 1 yea r1
Gross purchases .........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ...................................................................... }
Redemptions ...............................................................

10
11
12
13

1 to 5 years
Gross purchases ........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................

14
15
16
17

5 to 10 years
Gross purchases .........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................

18
19
20
21

Over 10 years
Gross purchases ........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................

22
23
24

13,738
7,241
0
2,136

16,628
13,725
0
2,033

16,623
7,480
0
2,900

1,692
353
0
200

861
780
0
300

2,752
154
0
300

2,464
378
0
0

0
1,722
0
790

187
1,590
0
400

1,370
0
0
0

3,017
0
4,499

1,184
0
-5 ,1 7 0

2,500

0

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

120
0
876
0
0

28
0
354
- 1 ,1 3 8
0

0
0
1,080
-2 ,0 1 6
0

90
0
571
-727
0

0
0
383
-403
0

0
0
1,822
- 2 ,1 7 7
0

292
0
921
-8 0 9
0

2,833
0

4,188
0

} -6 ,6 4 9

-178

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

354
0
-8 7 6
0

35
0
-3 5 4
1,138

0
0
- 1 ,0 8 0
1,302

398
0
-571
727

0
0
-383
403

0
0
-3 7 4
1,377

355
0
-921
809

523
0
- 4 ,6 4 6
2,181

73
0
0
0

0
0
0
0

0
0
0
400

81
0
0
0

0
0
0
0

0
0
- 1 ,3 6 4
450

107
0
0
0

454
0
0
1,619

87
0
0
0

0
0
0
0

0
0
0
314

51
0
0
0

0
0
0
0

0
0
-8 4
350

81
0
0
0

758
0

1,526
0

|

584

2,803

553
0

1,063
0

}

1,565

2,545

A ll maturities'
Gross purchases ........................................................
Gross sales .................................................................
Redemptions ...............................................................

20,898
7,241
4,636

24,591
13,725
2,033

22,950
7,480
5,500

2,326
353
200

924
780
300

2,752
154
300

3,084
378
0

0
1,722
790

187
1,590
400

2,206
0
0

25
26

Matched sale-purchase transactions
Gross sales ..................................................................
Gross purchases .........................................................

425,214
423,841

511,126
510,854

626,403
623,245

41,395
41,583

58,656
58,671

45,204
45,979

53,681
49,738

53,025
55,557

54,541
54,584

55,658
54,636

27
28

Repurchase agreements
Gross purchases .........................................................
Gross sales .................................................................

178,683
180,535

151,618
152,436

107,374
107,291

10,850
10,380

10,599
11,336

4,303
3,869

7,251
6,643

5,704
6,872

5,407
4,787

6,682
6,379

29 Net change in U .S. government se cu ritie s...........

5,798

7,743

6,896

2,431

-8 7 8

3,507

-6 2 9

- 1 ,1 4 8

- 1 ,1 4 0

1,486

F ederal A gency O bligations
30
31
32

Outright transactions
Gross purchases .........................................................
Gross sales .................................................................
Redemptions ...............................................................

1,433
0
223

301
173
235

853
399
134

0
0
18

0
0
3

0
0
*

0
0
5

0
0
0

0
0
*

0
0
5

33
34

Repurchase agreements
Gross purchases ........................................................
Gross sales .................................................................

13,811
13,638

40,567
40,885

37,321
36,960

5,016
4,069

5,146
6,188

1,992
1,075

2,383
2,863

3,049
3,543

2,403
2,372

1,883
1,834

35 Net change in federal agency o b lig a tio n s.............

1,383

-4 2 6

681

928

-1 ,0 4 5

917

-485

-4 9 4

31

45

36 O utright transactions, n e t ...........................................
37 Repurchase agreements, net ....................................

-1 9 6
159

0
-3 6 6

0
116

0
578

0
-7 3 5

0
-4 8

0
434

0
-7 0 4

0
205

0
-3 4

38 Net change in bankers a ccep ta n ces.........................

-3 7

-366

116

578

-7 3 5

-4 8

434

-7 0 4

205

-3 4

39 Total net change in System Open Market
Account ....................................................................

7,143

6,951

7,693

3,937

-2 ,6 5 8

4,376

-6 7 9

- 2 ,3 4 5

-9 0 3

1,497

B ankers A cceptances

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): September 1977, 2,500; March 1979, 2,600.




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

Reserve Banks
1.18

FEDERA L RESERVE BANKS

A ll

Condition and Federal Reserve Note Statements

Millions of dollars
Wednesday
1980

Account
Apr. 2p

Apr. 9p

End of month
1980

Apr. 16p

Apr. 23p

Apr. 30p

Feb.

Mar.P

Apr./7

Consolidated condition statement
A ssets
1 Gold certificate account .....................................................
2 Special drawing rights certificate account ......................
3 Coin .......................................................................................
Loans
4 Member bank borrowings..............................................
5 Other .................................................................................
Acceptances
6 Bought outright ...............................................................
7 Held under repurchase agreements ............................
Federal agency obligations
8 Bought outright ...............................................................
9 Held under repurchase agreements ............................
U.S. government securities
Bought outright
10
Bills ...............................................................................
11
Certificates—Special ..................................................
12
Notes .............................................................................
13
Bonds .............................................................................
14
Total i .............................................................................
15
Held under repurchase agreements ............................
16 Total U.S. government securities ....................................

11,172
2,968
399

11,172
2,968
390

11,172
2,968
386

11,172
2,968
393

11,172
2,968
387

11,172
2,968
468

11,172
2,968
415

11,172
2,968
387

2,108
0

1,890
0

3,579
0

2,962
0

4,770
0

3,364
0

2,502
0

4,770
0

0
0

0
0

0
0

0
0

0
0

0
205

0
171

0
0

8,211
0

8,879
0

8,877
0

8,877
248

8,877
0

8,216
31

8,211
80

8,877
0

41,920
0
57,164
14,719
113.803
0
113.803

40,678
0
57,164
14,719
112.561
0
112.561

44,525
0
57,707
14,783
117.015
0
117.015

46,912
0
57,707
14,783
119,402
209
119,611

46,335
0
57,707
14,783
118.825
0
118.825

43,503
0
56,411
14,636
114,550
621
115,171

43,851
0
57,164
14,719
115,734
923
116,657

46,335
0
57,707
14,783
118.825
0
118.825

17 Total loans and securities...............................................

124,122

123,330

129,471

131,698

132,472

126,987

127,621

132,472

18 Cash items in process of collection ..................................
19 Bank premises .....................................................................
20
Denominated in foreign currencies2 ............................
21
All other ...........................................................................

10,692
431
2,353
2,320

12,060
431
2,282
2,533

12,521
432
2,103
2,746

11,093
434
2,077
2,858

10,595
433
2,236
2,894

8,906
411
2,075
1,928

8,949
430
2,334
2,246

10,595
433
2,236
2,894

22 Total assets ......................................................................

154,457

155,166

161,799

162,693

163,157

154,915

156,135

163,157

111,326

112,293

112,169

111,455

111,524

109,170

110,597

111,524

Reserve accounts
24
Member banks .............................................................
25
Edge Act corporations ..............................................
26
U.S. agencies and branches of foreign b an k s........
27
Total ...............................................................................
28
Special Deposits—Credit Restraint Program ............
29
U.S. Treasury—General account ................................
30
Foreign—Official accounts ............................................
31 Other .....................................................................................

28,698
239
98
29,035
0
2,057
325
322

28,562
360
311
29,233
0
1,410
276
283

32,311
409
180
32,900
216
3,164
342
278

32,245
348
110
32,703
283
5,212
322
288

32,927
315
40
33,282
171
4,561
648
382

31,725
328
55
32,108
0
2,417
450
350

31,870
308
92
32,270
0
2,334
468
313

32,927
315
40
33,282
171
4,561
648
382

Liabilities
23 Federal Reserve n o te s .........................................................
Deposits

32 Total deposits ..................................................................

31,739

31,202

36,900

38,808

39,044

35,325

35,385

39,044

33 Deferred availiability cash ite m s ......................................
34 Other liabilities and accrued dividends3 ..........................

6,714
2,141

7,009
2,113

7,882
2,288

7,447
2,348

7,523
2,470

5,752
2,106

5,267
2,173

7,523
2,470

35 Total liabilities ................................................................

151,920

152,617

159,239

160,058

160,561

152,353

153,422

160,561

36 Capital paid in .....................................................................
37 Surplus ...................................................................................
38 Other capital accounts .......................................................

1,160
1,145
232

1,160
1,145
244

1,160
1,145
255

1,159
1,145
331

1,162
1,145
289

1,153
1,145
264

1,159
1,145
409

1,162
1,145
289

39 Total liabilities and capital accounts ................................

154,457

155,166

161,799

162,693

163,157

154,915

156,135

163,157

40 Memo: Marketable U.S. government securities held in
custody for foreign and international accoun t........

76,535

75,183

73,191

72,405

74,045

80,625

77,566

74,045

Capital A ccounts

Federal Reserve note statement
41 Federal Reserve notes outstanding (issued to Bank) ..
Collateral held against notes outstanding
42
Gold certificate account .................................................
43
Special drawing rights certificate account ..................
44
Eligible paper ...................................................................
45
U.S. government and agency securities......................

128,769

129,212

129,606

130,095

130,478

127,046

128,418

130,478

11,172
2,968
1,566
113,063

11,172
2,968
946
114,126

11,172
2,968
777
114,689

11,172
2,968
1,045
114,910

11,172
2,968
1,613
114,725

11,172
2,968
1,473
111,433

11,172
2,968
1,665
112,613

11,172
2,968
1,613
114,725

46 Total collateral ................................................................

128,769

129,212

129,606

130,095

130,478

127,046

128,418

130,478

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




2. Beginning Dec. 29, 1978, such assets are revalued monthly at market exchange
rates.
3. Includes exchange-translation account reflecting, beginning Dec. 29, 1978,
the monthly revaluation at market exchange rates of foreign-exchange commit­
ments.

A12
1.19

Domestic Financial Statistics □ May 1980
FEDERA L RESERVE BANKS

Maturity Distribution of Loan and Security Holdings

Millions of dollars
Wednesday
1980

Type and maturity
Apr. 2

Apr. 9

End of month
1980

Apr. 16

Apr. 23

Apr. 30

Feb. 29

Mar. 31

Apr. 30

1 Loans .....................................................................................
2 Within 15 d a y s .................................................................
3
16 days to 90 d a y s ...........................................................
4 91 days to 1 year .............................................................

2,108
2,025
83
0

1,890
1,800
90
0

3,579
3,525
54
0

2,962
2,911
51
0

4,770
4,716
54
0

3,364
3,324
40
0

2,502
2,458
44
0

4,770
4,716
54
0

5 Acceptances .........................................................................
6 Within 15 d a y s .................................................................
7
16 days to 90 d a y s ...........................................................
8 91 days to 1 year .............................................................

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

205
205
0
0

171
171
0
0

0
0
0
0

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

113,803
2,149
24,644
32,817
29,131
11,967
13,095

112,561
3,025
22,644
32,699
29,131
11,967
13,095

117,015
3,160
26,057
33,106
29,504
12,029
13,159

119,611
5,360
26,800
32,759
29,504
12,029
13,159

118,825
7,519
22,179
34,155
29,784
12,029
13,159

115,171
3,086
27,708
30,615
28,888
11,860
13,014

116,657
4,238
25,319
32,907
29,131
11,967
13,095

118,825
7,519
22,179
34,155
29,784
12,029
13,159

16 Federal agency obligations.................................................
17 Within 15 days1 ...............................................................
16 days to 90 d a y s ...........................................................
18
19 91 days to 1 year .............................................................
20
Over 1 year to 5 y e a r s ...................................................
Over 5 years to 10 y ea r s.................................................
21
22
Over 10 y e a r s...................................................................

8,211
62
403
1,470
4,323
1,233
720

8,879
108
358
1,686
4,721
1,262
744

8,877
94
371
1,646
4,760
1,262
744

9,125
296
409
1.627
4,778
1,271
744

8,877
48
409
1,627
4,778
1,271
744

8,247
219
268
1,480
4,242
1,318
720

8,291
224
279
1,478
4,337
1,253
720

8,877
48
409
1,627
4,778
1,271
744

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

1.20

BANK DEBITS A N D DEPOSIT TUR NO VER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
Bank group, or type
of customer

1979
1976

1977

1980

1978
Oct.

Nov.

Dec.

Jan.

Feb.

59.086.2
23,678.0
35.408.2

59,948.9
23,636.7
36,312.2

856.2
92.8
763.4

760.4
79.4
681.0

189.1
763.4
125.8

191.9
760.6
129.1

4.3
9.3
4.0

3.9

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

29,180.4
11.467.2
17.713.2

34,322.8
13,860.6
20,462.2

40,297.8
15,008.7
25,289.1

53.454.7
19.681.7
33,772.9

51,853.9
19,223.2
32,630.8

53,967.2
20.498.1
33.469.1

Debits to sa>/ings deposits 2 (not seasonsilly adjusted)
174.0
21.7
152.3

4 All customers
5 Business3 . . .
6 Others ........

417.7
56.7
361.0

823.9
95.0
728.9

750.6
85.3
665.3

724.3

88.1
636.2

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

116.8
411.6
79.8

129.2
503.0
85.9

139.4
541.9
96.8

170.2
639.1
119.2

165.8
643.0
115.4

172.4
684.0
118.2

Savings deposit turnover2 (not seasonally adjusted)
10 All customers
11 Business3
12 Others ........
1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes negotiable order of withdrawal (NOW) accounts and special club
accounts, such as Christmas and vacation clubs.
3. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings and loan associations, mutual savings
banks, credit unions, the Export-Import Bank, and federally sponsored lending
agencies).




1.6
4.1
1.5

1.9
5.1
1.7

4.0
8.4
3.7

3.7
7.8
3.5

3.6
8.4
3.4

8.2
3.6

N o t e . Historical data—estimated for the period 1970 through June 1977, partly
on the basis of the debits series for 233 SMSAs, which were available through June
1977—are available from Publications 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.

M o n eta ry A g g reg a tes
1.21

A 13

M ONEY STOCK M EASURES A N D COMPONENTS
Billions of dollars, averages of daily figures

Item

1976
Dec.

1977
Dec.

1978
Dec.

1980

1979
Dec.

Feb.

Mar.

376.4'
392.9
1,546.2'
1,803.9'
2,177.7'

375.4
392.3
1,550.3
1,803.9
n.a.

108.2
268.1
405.1'
669.3
228.1

108.9
266.5
394.5
683.0
231.5

368.1
384.6
1,538.0'
1,795.9'
2,175.2'

368.5
385.4
1,538.0
1,795.9
n.a.

106.9
261.2
16.5
24.8'
56.7
402.0'
672.5
228.3

107.9
260.6
16.9
22.7
60.5
394.8
686.3
232.3

Seasonally adjusted
Measures1
1
2
3
4
5

M-l A .........................................................
M-1B .........................................................
M-2 .............................................................
M-3 .............................................................
L2 ...............................................................

6
7
8
9
10

Currency ...................................................
Demand deposits .....................................
Savings deposits .......................................
Small time deposits3 .................................
Large time deposits4 ..............................

305.0
307.7
1,166.7
1,299.7
1,523.5

328.4
332.5
1,294.1
1,460.3
1,715.5

351.6
359.9
1,400.8
1,622.2
1,926.3

80.7
224.4
447.7
396.6
118.0

88.7
239.7
486.5
454.9
145.2

97.6
253.9
476.0
533.8
194.7

371.5
387.7
1,524.2
1,773.6
2,139.0'

368.0
383.9
1,507.2
1,751.8
2,114.8'

369.6
385.3
1,514.5
1,762.6
2,213.7'

371.5
387.7
1,524.2
1,773.6
2,139.0'

372.6
389.0'
1,532.8
1,785.3
2,153.9'

106.1
265.4
417.7
653.8
219.1

105.4
262.7
435.9
627.5
213.6

105.9
263.7
422.2
645.8
218.3

106.1
265.4
417.7
653.8
219.1

107.3
265.3
412.9
659.5
222.2

C omponents

Not seasonally adjusted
M easures 1

11
12
13
14
15

M-1A .........................................................
M-1B .........................................................
M-2 .............................................................
M-3 .............................................................
L2 ...............................................................

16
17
18
19
20
21
22
23

Currency ...................................................
Demand deposits .....................................
Other checkable deposits5 ....................
Overnight RPs and Eurodollars6 ..........
Money market mutual fu n d s................
Savings deposits .......................................
Small time deposits3 .................................
Large time deposits4 ...............................

313.5
316.1
1,169.1
1,303.8
1,527.1

337.2
341.3
1,295.9
1,464.5
1,718.5

360.9
369.3
1,402.9
1,627.8
1,929.8

381.1
397.3
1,526.0
1,779.0
2,141.5'

82.1
231.3
2.7
13.6
3.4
444.9
393.5
119.7

90.3
247.0
4.1
18.6
3.8
483.2
451.3
147.7

99.4
261.5
8.3
23.3
10.3
472.8
529.8
198.2

108.0
273.1
16.2
24.1
43.6
414.8
648.8
222.6'

369.7
385.5
1,507.1
1,752.4
2,113.0'

372.2
387.8
1,509.9
1,759.1
2,122.1'

381.1
397.3
1,526.0
1,779.0
2,141.5'

377.4
393.9
1,536.1
1,790.6
2,160.5'

105.2
264.5
15.8
25.6
36.9
434.6
627.3
214.2

106.6
265.6
15.7
23.5
40.4
420.0
640.8
219.5

108.0
273.1
16.2
24.1
43.6
414.8
648.8
222.6

106.5
270.9
16.5
24.9
49.1
410.3
660.6
224.1

C omponents

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




2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Small time deposits are those issued in amounts of less than $100,000.
4. Large time deposits are those issued in amounts of $100,000 or more and are
net of the holdings of domestic banks, thrift institutions, the U.S. government,
money market mutual funds, and foreign banks and official institutions.
5. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Ca­
ribbean branches of member banks to U.S. nonbank customers.
N 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.

A14
1.22

Domestic Financial Statistics □ May 1980
AGGREGATE RESERVES AND DEPOSITS

Member Banks

Billions of dollars, averages of daily figures

Item

1977
Dec.

1978
Dec.

1979

1979
Dec.
Aug.

Sept.

Oct.

Nov.

Dec

Seasonally adjusted

1 Reserves1 ...................................................

36.00

41.16

2 Nonborrowed ...............................................
3 R equired.......................................................
4 Monetary base2 ...........................................

35.43
35.81
127.6

40.29
40.93
142.2

42.03
43.11
153.6

40.03
40.89
148.6

5 Deposits subject to reserve requirements3

567.6

616.1

644.7

6 Time and savings.........................................
Demand
7 Private .......................................................
8 U.S. government.....................................

385.6

428.8

451.1

178.5
3.5

185.1

2.2

43.51

43.51

43.40

43.74

42.03
43.11
153.6

42.27
43.16
154.8

41.74
43.20
155.6

40.91
43.48
156.6

644.7

643.9

647.7

649.5

451.1

451.9

454.5'

457.8

189.6
2.4

191.3
1.9

189.9

40.09
41.24
150.0

40.17
41.92
151.5

41.16
42.83
152.8

625.4

631.5

638.2

642.0

436.3

441.7

446.7

450.0

191.9

187.0

2.1

189.8
1.7

190.0
1.9

191.9

1.8

188.1
1.7

1.8

1.8

Not seasonally adjusted
9 Monetary base2 .............................................................................

129.8

144.6

156.2

148.4

149.4

151.3

153.5

156.2

156.1

154.0

154.9

10 Deposits subject to reserve requirements3 ..............................

575.3

624.0

652.9

620.4

629.0

637.8

642.2

652.9

652.4

644.4r

648.4

11 Time and savings...........................................................................
Demand
Private .........................................................................................
U.S. governm ent.......................................................................

386.4

429.6

452.0

434.1

439.4

445.8

449.1

452.0

454.6

455.8

460.6

185.1
3.8

191.9
2.5

199.0
1.9

184.5
1.7

187.5
2.1

190.5
1.6

191.4
1.7

199.0
1.9

195.5
2.2

186.7
1.9

186.0
1.8

12
13

1. Series reflects actual reserve requirement percentages with no adjustment to
eliminate the effect of changes in Regulations D and M. There are breaks in series
because of changes in reserve requirements effective Jan. 8 and Dec. 30, 1976;
and Nov. 2, 1978. In addition, effective Jan. 1, 1976, statewide branching in New
York was instituted. The subsequent merger of a number of banks raised required
reserves because of higher reserve requirements on aggregate deposits at these
banks.
2. Includes total reserves (member bank reserve balances in the current week
lus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal
Reserve Banks, and the vaults of commercial banks; and vault cash of nonmember
banks.

g




3.
Includes total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits except
those due to the U.S. government, less cash items in process of collection and
demand balances due from domestic commercial banks.
N o t e . Back data and estimates of the impact on required reserves and changes
in reserve requirements are shown in table 14 of the Board’s Annual Statistical
Digest, 1971-1975.

A 15

M o n eta ry A g g reg a tes
1.23

LOANS A N D SECURITIES

All Commercial Banks'

Billions of dollars; averages of Wednesday figures
Category

1977
Dec.

1980

1979
Dec .p

1978
Dec.

Feb./7

1977
Mar.P

1978
Dec.

Dec .p

Seasonally adjusted
1 Total loans and securities2 .......................

891.1

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

99.5
159.6
632.1
211.2s
175.2s
138.2
20.6
25.8s
25.8
5.8
29.5

1980

1979

Dec.

Feb.P

Mar.P

Not seasonally adjusted

1,014.33

1,132.54

1,162.7

1,165.2

93.4
173.I 3
747.83
246.5 6
210.5
164.9
19.4
27.17
28.2
7.4
43.63

93.8
191.5
847.24
290.54
242.44
182.7
18.3
30.34
31.0
9.5
42.6

94.8
195.2
872.7
301.1
247.7
184.4
17.7
31.1
31.7
9.9
49.1

94.5
196.0
874.7
302.7
249.6
184.4
16.8
31.9
32.0
10.1
47.4

899.1
100.7
160.2
638.3
212.6 s
175.5s
139.0
22.0
26.3 s
25.7
5.8
31.5

1,023.83

1,143.04

1,151.4

1,159.0

94.6
173.93
755.4 3
248.26
210.9
165.9
20.7
27.67
28.1
7.4
46.63

95.0
192.3
855.74
292.44
242.94
183.8
19.6
30.84
30.8
9.5
45.9

95.5
194.2
861.7
297.8
246.7
182.7
17.3
30.4
31.1
9.9
45.8

96.3
195.4
867.2
300.9
248.1
181.6
16.7
31.1
31.4
10.1
47.4

M em o :

13 Total loans and securities plus loans

sold2’9 ...............................................

895.9

1,018.13

1,135.34’8

1,165.3

1,167.8

903.9

1,027.63

1,145.74'8

1,154.0

1,161.6

14 Total loans plus loans sold2-9 ..................
15 Total loans sold to affiliates9 ..................
16 Commercial and industrial loans plus
loans sold9 ...........................................
17 Commercial and industrial loans sold9
18 Acceptances held ..................................
19 Other commercial and industrial loans
20
To U.S. addressees1 ........................
1
21
To non-U.S. addressees....................
22 Loans to foreign banks ............................
23 Loans to commercial banks in the
United States ..................................

636.9
4.8

751.63
3.8

850.04-8
2.88

875.3
2.6

877.3
2.6

643.0
4.8

759.23
3.8

858.44-8
2.88

864.3
2.6

869.8
2.6

213.9s
2.7
7.5
203.7 s
193.8 s
9.9 s
13.5

248.56-10
1.910
6.8
239.7
226.6
13.1
21.2

292.34-8
1.88
8.5
282.0
263.2
18.8
18.7

302.8
1.7
9.1
292.0
271.8
20.3
19.8

304.3
1.7
8.0
294.7
274.2
20.5
19.7

215.3s
2.7
8.6
203.9s
193.7 s
10.3 s
14.6

250.16-10
1.9'"
7.5
240.9
226.5
14.4
23.0

294.24-8
1.88
9.4
283.1
263.2
19.8
20.1

299.5
1.7
9.0
288.7
268.5
20.2
18.6

302.6
1.7
8.1
292.8
272.8
20.0
19.2

78.5

78.9

56.9

82.5

81.5

54.1

57.3

77.8

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




60.3

81.9

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

A16
1.24

Domestic Financial Statistics □ May 1980
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS

Last-Wednesday-of-Month Series

Billions of dollars except for number of banks
1979

1980

A c co u n t
M ay

June

July

A u g.

Sept.

O ct.

N ov.

D e c.

Jan.

Feb .

Mar.

L oans and investm en ts ..................................
L oan s, gross .......................................................
In terbank ........................................................
C om m ercial and industrial .....................
O th er ................................................................
U .S . T reasury securities ...............................
O th er securities ................................................

1,059.4
785.3
45.9
236.4
503.0
93.2
181.0

1,071.3
797.9
46.3
240.5
511.2
91.6
181.7

1,081.8
807.6
48.1
242.0
517.4
92.1
182.1

1.094.3
819.4
50.3
244.1
525.0
90.6
184.3

1,112.1
833.8
53.6
249.4
530.9
91.9
186.4

1,118.4
839.0
54.0
249.8
535.3
91.5
187.8

1,118.0
836.7
52.6
248.0
536.1
92.1
189.3

1.143.3
860.1
62.9
253.4
543.7
92.5
190.7

1,133.4
849.7
57.2
252.6
540.0
92.4
191.2

1.143.6
857.0
58.0
256.2
542.9
93.6
192.9

1,144.0
855.4
55.7
259.1
540.7
94.3
194.3

8 Cash assets, total .............................................
9 C urrency and coin .....................................
10 R eserv e s with F ed eral R e serv e B anks
11
B alan ces with d ep ositary institution s
12 Cash item s in process o f co lle c tio n ...

158.8
16.0
32.8
44.6
65.4

146.3
16.3
32.6
40.8
56.5

140.2
16.1
29.6
41.2
53.4

145.7
16.8
33.7
41.1
54.1

148.5
16.7
31.6
40.7
59.5

160.7
16.6
34.1
45.5
64.6

158.1
18.2
34.7
43.7
61.5

146.4
17.9
28.4
37.7
62.4

148.4
17.3
28.3
43.7
59.0

149.9
17.1
30.7
43.4
58.7

153.9
16.8
34.2
43.1
59.8

D om estic a lly C h a r t e r e d
C o m m e r c ia l B a n k s 1

1
2
3
4
5
6
7

13 O th er assets ...............................................

52.7

55.1

53.9

53.8

57.5

57.8

59.3

61.2

63.1

65.0

66.0

14 Total assets/total liabilities and capital ..

1,270.9

1,272.7

1,275.9

1,293.8

1,318.2

1,336.9

1,335.4

1,351.0

1,344.9

1,358.4

1,364.0

15 D e p o sits .....................................................
16 D em an d ............................................................
17 Savings .............................................................
18 T im e ..................................................................

975.5
357.8
215.5
402.3

971.3
352.4
216.4
402.5

975.2
352.6
218.3
404.2

982.9
352.4
216.6
413.8

996.6
358.7
213.4
424.5

1,023.6
376.6
207.6
439.4

1,017.6
365.1
205.0
447.4

1.030.6
377.6
203.4
449.7

1.022.5
362.4
200.6
459.6

1.028.9
358.7
199.9
470.3

1.033.3
354.7
196.8
481.8

19 B orrow in gs ..........................................................
20 O th er lia bilities ................................................
21 R esid u al (a sse ts less lia b ilities) ................

132.0
65.4
98.1

137.1
65.5
98.9

•137.2
64.9
98.7

140.1
69.7
101.1

147.0
71.2
103.3

137.4
74.0
101.9

135.6
78.5
103.7

140.5
74.1
105.8

143.1
77.5
101.8

145.1
81.6
102.9

142.2
84.3
104.2

4.9
14,616

12.9
14,620

11.9
14.584

8.6
14.607

17.8
14,616

8.4
14.605

5.0
14.608

12.8
14.610

15.0
14.594

8.1
14,609

9.4
14,626

L oans and in vestm en ts ............................
L oan s, gross .............................................
Interbank ...............................................
C om m ercial and industrial .................
O th er .....................................................
U .S . T reasu ry sec u r ities .........................
O th er secu rities ................................................

1,131.2
854.2
61.8
268.8
523.6
94.6
182.3

1,146.9
870.7
60.4
274.6
535.7
93.1
183.1

1.153.1
876.2
60.6
276.9
538.6
93.5
183.5

1.169.8
892.1
63.8
280.5
547.8
91.9
185.8

1.197.7
915.9
69.2
288.1
558.6
93.5
188.3

1,200.3
917.6
71.6
288.3
557.7
93.1
189.5

1,200.9
916.2
71.8
287.9
556.6
93.7
190.9

1.229.8
943.1
80.5
295.0
567.6
94.5
192.2

1,217.7
930.7
75.4
295.1
560.1
94.3
192.7

1.230.8
941.0
78.3
298.5
564.2
95.5
194.4

31 Cash a ssets, total .....................................
32 Currency and coin ...............................
33
R e serv e s with F ed eral R e serv e B ank s
34
B alan ces w ith d ep ositary in stitu tion s
35
Cash item s in p ro ce ss o f co llec tio n ...

176.5
16.1
33.5
60.3
66.6

167.8

160.4
16.1
30.4
59.3
54.7

166.0

172.2

179.9
16.6
34.3
62.5
65.9

176.7
18.2
35.6
60.0
62.9

169.5
17.9
29.0
59.0
63.7

166.5
17.3
28.9
59.8
60.4

168.8
17.1
31.3
60.5
60.0

M em o :

22 U .S . T reasu ry n ote b alan ces in clu d ed in
b orrow in g ...................................................

23 N u m b er o f banks .............................................
A ll C o m m e rc ia l B a n k in g
I n st it u t io n s 2

24
25
26
27
28
29
30

16.3

33.4
60.3
57.7

16.8

16.7

34.5
59.3
55.3

32.5
62.4
60.6

36 O th er assets ...............................................

67.7

71.4

69.7

70.9

76.7

76.5

78.5

81.0

83.7

86.8

37 Total assets/total liabilities and capital ..

1,375.5

1,386.1

1,383.2

1,406.7

1,446.5

1,456.7

1,456.1

1,480.3

1,468.0

1,486.5

38 D e p o s its ................................................................
39
D e m a n d ...........................................................
40
Savings ...................................................
41
T im e .......................................................

1.013.2
375.8
216.7
420.7

1,015.6
376.4
217.2
422.0

1.012.3
369.7
219.1
432.5

1.020.9
369.1
217.6
434.2

1.043.6
383.2
214.2
446.2

1.062.6
394.2
208.3
460.1

1,058.5
384.9
205.9
467.7

1.076.3
400.5
204.3
471.5

1.063.1
380.5
201.3
481.3

1.070.0
376.8
200.3
492.9

42 B orrow in gs ..........................................................
43 O th er liabilities ........................................
44 R esid u al (a sse ts less liabilities) .............

159.5
102.8
100.0

165.4
104.2
100.9

165.8
104.4
100.8

169.5
113.1
103.2

182.1
115.2
105.6

171.6
118.5
104.0

169.5
122.2
105.8

180.5
115.4
108.1

179.5
121.1
104.2

182.9
128.4
105.2

4.9
14,954

12.9
14.968

11.9
14,933

8.6
14,960

17.8
14.972

8.4
14,963

5.0
14,969

12.8
14.975

15.0
14.962

8.1
14.978

n.a.

M em o:

45 U .S . T reasu ry n ote b alan ces in clu d ed in
b orrow in g ...........................................
46 N u m b er o f b anks .....................................

1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks; included are member and non­
member banks, stock savings banks, and nondeposit trust companies.
2. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks. Edge Act and Agreement cor­
porations, and New York state foreign investment corporations.




N o t e . Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month; data for
other banking institutions are for last Wednesday except at end of quarter, when
they are for the last day of the month.

Commercial Banks
1.25

COMMERCIAL BANK ASSETS AND LIABILITIES

A ll

Call-Date Series

Millions of dollars, except for number of banks
1976

1977

1978

1976

June 30

Dec. 31

1977

1978

Account
Dec. 31

June 30

Dec. 31

Total insured

June 30

Dec. 31

June 30

National (all insured)

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
80,583
74,641

52,244
86,033
92,050

50,519
87,886
90,728

7 Total assets/total liabilities1 .................................................

1,003,970

1,040,945

1,129,712

1,172,772

583.304

599,743

651,360

671,166

8 D ep o sits.................................................................................
Demand
9
U.S. government .............................................................
10
Interbank...........................................................................
11
Other .................................................................................
Time and savings
12 Interbank...........................................................................
13
Other .................................................................................

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

14 Borrowings ...........................................................................
15 Total capital accounts.........................................................

75,291
75,061

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

16 M emo : Number of b a n k s...................................................

14,397

14,425

14,397

14,381

4,735

4,701

4,654

4,616

2
3
4
5
6

Loans
Gross .................................................................................
Net .....................................................................................
Investments
U.S. Treasury securities .................................................
Other .................................................................................
Cash assets .......................................................................

State member (all insured)
17 Loans and investment, g r o s s .............................................
Loans
18 Gross .................................................................................
19 Net .....................................................................................
Investments
20 U.S. Treasury securities .................................................
21
Other .................................................................................
22
Cash assets .......................................................................

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

23 Total assets/total liabilities1 .................................................

189,579

195,452

210,442

217,384

231,086

245,748

267,910

284,221

24 D ep o sits.................................................................................
Demand
25
U.S. government .............................................................
26
Interbank...........................................................................
27
Other .................................................................................
Time and savings
28
Interbank...........................................................................
29
Other .................................................................................

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

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 Borrowings ...........................................................................
31 Total capital accounts .........................................................

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

32 M em o : Number of b a n k s...................................................

1,023

1,019

1,014

1,005

8,639

8,705

8,729

8,760

Noninsured nonmember

Total nonmember

33 Loans and investments, gross ...........................................
Loans
34 Gross .................................................................................
35
Net .....................................................................................
Investments
36 U.S. Treasury securities .................................................
37
Other .................................................................................
38
Cash assets .......................................................................

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

Total assets/total liabilities1 ..............................................

26,790

33,390

36,433
39

42,279

257,877

279,139

304,343

326,501

40 D ep o sits.................................................................................
Demand
41
U.S. government .............................................................
42
Interbank...........................................................................
43
Other .................................................................................
Time and savings
44
Interbank...........................................................................
45
Other .................................................................................

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

46 Borrowings ...........................................................................
47 Total capital accounts .........................................................

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

48 Memo: Number of b a n k s...................................................

275

293

310

317

8,914

8,998

9,039

9,077

1. Includes items not shown separately.




For Note see table 1.24.

A18
1.26

Domestic Financial Statistics □ May 1980
COMMERCIAL BAN K ASSETS A N D LIABILITIES

Detailed Balance Sheet, September 30, 1978

Millions of dollars, except for number of banks
Member banks1
Asset account

Insured
commercial
banks

Large banks
Total

All other
New York
City

City of
Chicago

Non­
member
banks1

Other
large

1 Cash bank balances, items in p ro ce ss.................................................
2 Currency and c o i n ...............................................................................
3 Reserves with Federal Reserve B a n k s............................................
4
Demand balances with banks in United S ta tes..............................
5 Other balances with banks in United S ta tes ..................................
6 Balances with banks in foreign countries......................................
7 Cash items in process of 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 .............................................................................

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

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 s to c k ......................................

1,656

1,403

311

111

507

475

253

26 Federal funds sold and securities resale agreem ent..........................
27
Commercial b a n k s .............. ................................................................
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, g r o ss...................................................................................
31 L ess : Unearned income on lo a n s .........................................................
32
Reserves for loan l o s s .................................................................
33 Other loans, n e t .......................................................................................

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
25,621
8,418
117,176

138,730
19,100
3,655
81,370

10,241
2,598
23
5,362

2,938
685
34
1,559

111,674

77,422

4,617

1,460

72,863
6,581
3,146
43,236

64,656
6,521
4,763
35,806

41,570

34,252

7,503
104,171
5,502
399
5,103
52,171

6,500
70,922
3,948
340
3,609
34,605

508
4,109
746
132
613
2,258

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

2,502
39,068
1,665
92
1,573
19,901

1,003
33,249
1,554
59
1,495
17,566

Loans to financial institutions...............................................................
REITs and mortgage com panies.......................................................
Domestic commercial banks .............................................................
Banks in foreign countries.................................................................
Other depositary institutions.............................................................
Other financial institutions.................................................................
Loans to security brokers and d ea lers.................................................
Other loans to purchase or carry securities........................................
Loans to farmers except real e s ta te .....................................................
Commercial and industrial lo a n s ...........................................................

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 Loans to individuals ...............................................................................
56 Installment loans .................................................................................
57
Passenger automobiles ...................................................................
58
Residential repair and modernization .........................................
59
Credit cards and related p la n s.......................................................
60
Charge-account credit ca r d s.......................................................
61
Check and revolving credit p la n s .............................................
62
Other retail consumer g o o d s .........................................................
63
Mobile h o m e s ...............................................................................
64
Other .............................................................................................
65
Other installment loans .................................................................
66
Siilgle-payment loans to individuals.................................................
67 All other lo a n s .........................................................................................

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, n e t ...............................................................

Other loans, gross, by category
34 Real estate loans .....................................................................................
35
Construction and land developm ent.................................................
36
Secured by farmland...........................................................................
37
Secured by residential properties .....................................................
38
1- to 4-family residences.................................................................
39
FHA-insured or VA-guaranteed...............................................
40
Conventional ...............................................................................
41
Multifamily residences ...................................................................
42
FHA-insured.................................................................................
43
Conventional ...............................................................................
44 Secured by other properties...............................................................
45
46
47
48
49
50
51
52
53
54

956,579

696,833

102,383

35,536

259,820

299,094

259,867

Direct lease financing.............................................................................
Fixed assets—Buildings, furniture, real e s ta te ..................................
Investment in unconsolidated subsidiaries...........................................
Customer acceptances outstanding.......................................................
Other assets .............................................................................................

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

For notes see opposite page.




Commercial Banks
1.26

A19

Continued

Member banks1
Liability or capital account

Insured
commerical
banks

Large banks
Total

All other
New York
City

City of
Chicago

Non­
member
banks1

Other
large

75 Demand deposits .....................................................................................
76
Mutual savings banks .........................................................................
77
Other individuals, partnerships, and corporations........................
78
U.S. government .................................................................................
79
States and political subdivisions .......................................................
80 Foreign governments, central banks, e t c ........................................
81
Commercial banks in United S ta tes................................................
82
Banks in foreign countries.................................................................
83
Certified and officers’ checks, e t c .....................................................

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

84 Time deposits ...........................................................................................
85
Accumulated for personal loan paym ents......................................
86
Mutual savings banks .........................................................................
87
Other individuals, partnerships, and corporations........................
88
U.S. government .................................................................................
89
States and political subdivisions ......................................................
90
Foreign governments, central banks, e t c ........................................
91
Commercial banks in United S ta tes................................................
92 Banks in foreign countries.................................................................

368,562
79
399
292,120
864
59,087
6,672
7,961
1,381

266,496
66
392
210,439
689
40,010
6,450
7,289
1,161

38,086
0
177
29,209
61
1,952
3,780
2,077
829

15,954
0
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 d ep osits.......................................................................................
94
Individuals and nonprofit organizations..........................................
95
Corporations and other profit organizations..................................
96
U.S. government .................................................................................
97
States and political subdivisions .......................................................
98
All other ...............................................................................................

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
Commercial b a n k s...............................................................................
102 Brokers and dealers ...........................................................................
103
Others ...................................................................................................

91,981
42,174
12,787
37,020

85,582
39,607
11,849
34,126

21,149
6,991
2,130
12,028

8,777
5,235
1,616
1,926

41,799
21,609
6,381
13,809

13,857
5,773
1,722
6,362

6,398
2,566
939
2,894

104
105
106
107

Other liabilities for borrowed m o n ey ..................................................
Mortgage indebtedness ...........................................................................
Bank acceptances outstanding...............................................................
Other liabilities .......................................................................................

8,738
1,767
16,661
27,124

8,352
1,455
16,140
23,883

3,631
234
8,398
8,600

306
27
1,260
1,525

3,191
701
6,070
9,020

1,225
491
412
4,477

386
316
521
3,494

108 Total liabilities ....................................................................................

1,107,188

836,607

157,026

41,144

314,868

323,569

270,849

109 Subordinated notes and debentures....................................................

5,767

4,401

1,001

79

2,033

1,287

1,366

110 Eauity capital ...........................................................................................
111
Preferred sto c k .....................................................................................
112 Common stock .....................................................................................
113
Surplus...................................................................................................
114 Undivided p rofits.................................................................................
115
Other capital reserves.........................................................................

85,540
88
17,875
32,341
33,517
1,719

63,174
36
12,816
23,127
26,013
1,182

12,871
0
2,645
4,541
5,554
132

2,947
0
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 cap ital.....................................................

1,198,495

904,182

170,899

44,170

338,079

351,034

294,595

252,337

171,864

18,537

5,576

60,978

86,774

80,472

M em o :

117 Demand deposits adjusted2 ...................................................................
Average for last 15 or 30 days
Cash and due from b a n k .......................................................................
Federal funds sold and securities purchased under agreements to
resell .................................................................................................
Total loans ...............................................................................................
Time deposits of $100,000 or more ....................................................
Total d ep osits...........................................................................................
Federal funds purchased and securities sold under agreements to
repurchase .........................................................................................
Other liabilities for borrowed m o n ey ...................................................

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

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 of credit outstanding..................................................
126 Time deposits of $100,000 or more ....................................................
127
Certificates of d ep o sit.........................................................................
128
Other time dep osits.............................................................................

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 of b a n k s.....................................................................................

14,390

5,593

12

9

153

5,419

8,810

118
119
120
121
122
123
124

1. Member banks exclude and nonmember banks include 13 noninsured trust
companies that are members of the Federal Reserve System.
2. Demand deposits adjusted are demand deposits other than domestic com­
mercial interbank and U.S. government, less cash items reported as in process of
collection.




N o t e . Data include consolidated reports, including figures for all bank-premises
subsidiaries and other significant majority-owned domestic subsidiaries. Securities
are reported on a gross basis before deductions of valuation reserves. Back data
in lesser detail were shown in previous issues of the B u l l e t in .

A20
1.27

Domestic Financial Statistics □ May 1980
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of Dollars, Wednesday figures

Account
Mar. 5

Mar. 12

Mar. 19

Mar. 26

Apr. 2p

Apr. 9p

Apr. 16p

Apr. 23p

Apr. 30p

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

54,154

51,064

53,577

49,845

55,312

49,679

53,850

49,637

56,437

17,717
30,046

17,995
27,697

18,480
27,023

17,870
33,998

19,108
29,457

19,421
29,439

17,431
33,182

16,331
32,811

20,880
33,918

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

523,326

519,715

520,184

514,571

523,583

524,575

520,976

517,470

520,618

Securities
U.S. Treasury securities ...............................................
Trading account .........................................................
Investment account, by m aturity............................
One year or l e s s .....................................................
Over one through five years ..............................
Over five y e a r s.......................................................
Other securities .............................................................
Trading account .........................................................
Investment account ...................................................
U.S. government agencies ..................................
States and political subdivision, by maturity . . .
One year or l e s s .................................................
Over one y e a r .....................................................
Other bonds, corporate stocks and securities ..

37,234
7,082
30,153
7,285
18,179
4,689
73,022
3,142
69,879
15,868
51,351
6,542
44,809
2,660

35,951
5,761
30,190
7,408
18,134
4,648
73,992
4,005
69,987
15,849
51,484
6,560
44,924
2,654

34,483
4,978
29,505
6,761
18,105
4,639
73,182
3,184
69,998
15,840
51,533
6,520
45,013
2,625

35,128
5,506
29,622
6,938
18,051
4,633
72,777
2,795
69,982
15,772
51,604
6,503
45,101
2,606

34,673
5,296
29,377
6,952
17,880
4,545
71,968
2,642
69,326
15,681
51,042
6,018
45,024
2,602

36,815
7,478
29,337
7,018
17,803
4,516
72,636
3,328
69,309
15,664
51,061
6,131
44,930
2,584

36,671
7,411
29,260
7,018
17,735
4,508
72,857
3,106
69,751
15,708
51,470
6,265
45,206
2,573

35,095
6,110
28,985
6,918
17,497
4,570
72,972
2,938
70,034
15,756
51,703
6,201
45,502
2,575

35,291
5,929
29,362
6,824
18,066
4,472
74,534
4,072
70,462
15,918
51,965
6,500
45,465
2,578

25,980
19,150
4,896
1,934
399,707
159,807
4,644
155,163
148,768
6,396
102,203
73,275

24,337
17,510
4,313
2,514
398,099
160,662
4,044
156,618
150,272
6,346
102,649
73,029

25,302
19,496
3,949
1,857
399,932
161,286
3,925
157,361
151,072
6,288
102,989
73,197

20,978
16,950
2,917
1,111
398,417
160,287
3,545
156,742
150,319
6,422
103,172
73,122

25,010
19,478
3,579
1,953
404,560
161,833
3,740
158,094
151,954
6,140
103,210
72,953

27,419
19,876
4,302
3,240
400,419
161,312
3,787
157,524
151,377
6,147
103,513
72,653

24,838
20,017
3,670
1,150
399,391
161,165
4,097
157,067
150,976
6,091
103,802
72,597

24,776
20,584
3,016
1,177
397,453
160,105
3,886
156,219
150,109
6,110
103,986
72,529

24,654
20,546
3,076
1,032
398,922
160,175
4,384
155,792
149,654
6,137
104,196
72,269

3,167
7,030
10,395
16,415
6,925
2,486
4,942
13,061
7,198
5,419
387,090
8,265
67,414

3,287
6,572
9,459
16,406
6,093
2,476
4,991
12,474
7,232
5,434
385,434
8,281
67,034

3,728
6,655
8,985
16,190
6,542
2,458
5,006
12,897
7,285
5,430
387,217
8,307
66,257

3,622
6,473
9,644
16,236
5,898
2,425
4,990
12,548
7,326
5,404
385,687
8,357
65,519

4,114
6,757
10,593
16,938
7,082
2,388
4,983
13,708
7,251
5,377
391,932
8,378
69,222

3,808
6,855
9,567
16,815
5,668
2,358
4,937
12,932
7,318
5,395
387,705
8,340
68,423

3,495
6,259
9,502
16,160
6,432
2,346
4,982
12,650
7,367
5,414
386,610
8,349
66,999

3,155
6,707
9,051
16,067
6,028
2,330
4,987
12,508
7,413
5,414
384,626
8,388
68,057

3,544
6,818
8,964
16,078
6,701
2,317
5,009
12,850
7,339
5,444
386,140
8,438
69,727

700,922

691,786

693,828

690,160

705,060

699,878

700,787

692,694

710,018

196,166
641
133,266
4,685
3,258
34,422
9,070
2,032
8,793
273,847
72,510
68,238

190,856
601
134,532
4,363
1,937
30,941
8,989
1,588
7,904
274,156
71,837
67,655

194,565
654
131,724
4,920
3,048
35,364
9,258
1,671
7,926
275,671
71,294
67,216

183,742
561
127,794
4,500
1,734
31,694
8,232
1,958
7,269
275,915
71,214
67,157

201,657
909
139,544
4,760
972
34,760
9,419
1,902
9,391
276,175
71,208
67,205

195,093
772
134,938
4,492
955
34,891
8,926
2,146
7,973
277,981
70,981
66,985

198,113
779
138,151
4,957
1,680
34,097
8,253
2,208
7,987
277,308
70,174
66,289

187,396
644
131,557
4,778
1,687
31,541
7,905
1,736
7,546
278,311
69,244
65,383

201,132
761
134,295
5,978
2,426
37,616
8,745
2,837
8,474
278,007
68,477
64,602

3,589
668
14
201,338
167,920
22,558
407
5,610

3,531
633
17
202,319
168,711
22,695
373
5,818

3,433
631
14
204,377
170,629
22,694
374
5,969

3,435
610
11
204,702
170,714
22,635
376
6,097

3,372
620
10
204,967
171,839
21,978
370
5,984

3,387
597
13
207,000
173,508
21,973
376
6,092

3,258
617
9
207,134
173,405
21,836
392
6,204

3,261
591
10
209,067
175,188
21,865
373
6,286

3,232
632
10
209,530
175,973
21,533
402
6,322

4,843

4,722

4,711

4,879

4,795

5,051

5,297

5,355

5,301

1,490
1,645
113,886

1,987
274
110,300

1,741
1,764
106,281

3,398
6,098
104,941

1,139
228
108,189

1,016
220
110,762

2,691
4,615
104,908

1,817
5,703
106,101

2,936
10,637
103,940

5

6
7
8
9
10
11
12
13
14
15
16
17
18

Loans
19 Federal funds sold1 .......................................................
20 To commercial banks ...............................................
21
To nonbank brokers and dealers in securities . . . .
22 To o th ers.....................................................................
23 Other loans, gross .........................................................
24
Commercial and industrial ......................................
25
Bankers acceptances and commercial paper . . .
26
All other .................................................................
27
U.S. addressees .................................................
28
Non-U.S. addressees ........................................
29 Real estate .....................................................................
30 To individuals for personal expenditures..............
To financial institutions
31
Commercial banks in the United S ta tes............
32
Banks in foreign countries ..................................
33
Sales finance, personal finance companies, etc .
34
Other financial institutions..................................
35
To nonbank brokers and dealers in securities . . . .
36 To others for purchasing and carrying securities2
37 To finance agricultural production ........................
38
All other .....................................................................
39 L e s s : Unearned income ..............................................
40
Loan loss reserve ...............................................
41 Other loans, n e t .............................................................
42 Lease financing receivables ........................................
43 All other asse ts...............................................................

44 Total assets ................................................................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

66
67

68
69

Deposits
Demand deposits ...........................................................
Mutual savings banks ...............................................
Individuals, partnerships, and corporations..........
States and political subdivisions ............................
U.S. government .......................................................
Commercial banks in the United S ta tes................
Banks in foreign countries .......................................
Foreign governments and official institutions . . . .
Certified and officers’ ch eck s..................................
Time and savings deposits ..........................................
Savings .........................................................................
Individuals and nonprofit organizations............
Partnerships and corporations operated for
p rofit.................................................................
Domestic governmental u n its ..............................
All other .................................................................
Time .............................................................................
Individuals, partnerships, and corporations . . . .
States and political subdivisions ........................
U.S. government ...................................................
Commercial banks in the United S ta tes............
Foreign governments, official institutions, and
banks ...............................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s ............
Treasury tax-and-loan n o te s ....................................
All other liabilities for borrowed money3 ............
Other liabilities and subordinated note and
debentures ...............................................................

67,362

67,624

67,349

69,470

70,900

67,961

66,476

66,519

66,209

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

654,397

645,198

647,371

643,564

658,288

653,032

654,112

645,849

662,861

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

46,525

46,588

46,457

46,596

46,772

46,845

46,676

46,846

47,157

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




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

Weekly Reporting Banks
1.28

A21

LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977 Assets and Liabilities
Millions of dollars, Wednesday figures
Account
Mar. 5

Mar. 12

Mar. 19

Mar. 26

Apr. 2p

Apr. 9p

Apr. 16p

Apr. 23p

Apr. 30p

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

51,526
17,075
28,249

48,583
17,302
25,974

51,055
17,740
25,220

47,590
17,273
31,689

52,696
18,467
27,619

47,427
18,697
27,699

50,945
16,772
31,167

46,810
15,818
30,716

53,411
20,202
31,747

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

488,421

485,134

485,699

480,517

489,293

489,665

486,296

482,934

486,280

Securities
U.S. Treasury securities.................................................................
Trading account ...........................................................................
Investment account, by maturity..............................................
One year or l e s s .......................................................................
Over one through five y e a r s................................................
Over five y ea r s.........................................................................
Other securities ...............................................................................
Trading account ...........................................................................
Investment account .....................................................................
U.S.government agencies ......................................................
States and political subdivision, by maturity......................
One year or l e s s ...................................................................
Over one y e a r .......................................................................
Other bonds, corporate stocks and securities....................

34,686
7,016
27,670
6,773
16,629
4,268
67,250
3,071
64,179
14,752
46,927
5,971
40,956
2,500

33,414
5,698
27,716
6,898
16,588
4,230
68,150
3,936
64,214
14,697
47,027
5,961
41,065
2,490

31,950
4,921
27,028
6,246
16,562
4,221
67,344
3,103
64,241
14,698
47,080
5,947
41,134
2,462

32,586
5,440
27,146
6,423
16,518
4,204
66,941
2,719
64,222
14,629
47,150
5,937
41,212
2,443

32,203
5,212
26,990
6,425
16,401
4,165
66,226
2,566
63,660
14,562
46,659
5,525
41,134
2,439

34,340
7,390
26,951
6,497
16,323
4,131
66,888
3,230
63,657
14,568
46,669
5,634
41,035
2,420

34,221
7,335
26,885
6,504
16,242
4,139
67,096
2,990
64,106
14,619
47,077
5,764
41,312
2,409

32,643
6,046
26,597
6,418
15,989
4,190
67,139
2,812
64,328
14,635
47,281
5,695
41,586
2,411

32,857
5,858
26,999
6,367
16,533
4,099
68,571
3,940
64,630
14,753
47,464
5,901
41,563
2,413

5
6
7
8
9
10
11
12
13
14
15
16
17
18

Loans
19 Federal funds sold1 .........................................................................
20 To commercial banks .................................................................
21
To nonbank brokers and dealers in securities......................
22 To o th ers.......................................................................................
23 Other loans, gross ...........................................................................
24
Commercial and industrial.........................................................
25
Bankers’ acceptances and commercial paper ....................
26
All other ...................................................................................
27
U.S. addressees ...................................................................
28
Non-U.S. addressees ...........................................................
29
Real estate ...................................................................................
30 To individuals for personal expenditures................................
To financial institutions
31
Commercial banks in the United S ta tes..............................
32
Banks in foreign countries....................................................
33
Sales finance, personal finance companies, e t c ................
34
Other financial institutions....................................................
35
To nonbank brokers and dealers in securities......................
36 To others for purchasing and carrying securities2 ................
37
To finance agricultural production ..........................................
38
All other .......................................................................................
39 L e s s : Unearned income .................................................................
40
Loan loss reserve .................................................................
41 Other loans, n e t ...............................................................................
42 Lease financing receivables ...........................................................
43 All other assets ...............................................................................

23,270
16,937
4,451
1,882
374,881
151,611
4,540
147,070
140,723
6,348
96,007
64,694

21,964
15,622
3,869
2,472
373,325
152,462
3,955
148,507
142,209
6,298
96,439
64,454

23,075
17,735
3,532
1,808
375,100
153,014
3,843
149,171
142,931
6,240
96,773
64,643

19,098
15,411
2,625
1,062
373,667
152,080
3,464
148,616
142,242
6,374
96,954
64,579

22,768
17,675
3,180
1,914
379,774
153,653
3,654
150,000
143,909
6,091
96,997
64,422

24,477
17,583
3,693
3,201
375,718
153,078
3,706
149,372
143,282
6,090
97,313
64,200

22,100
17,779
3,210
1,111
374,700
152,920
4,015
148,905
142,867
6,038
97,587
64,131

22,304
18,481
2,687
1,136
372,717
151,808
3,797
148,011
141,952
6,059
97,748
64,088

22,459
18,703
2,749
1,007
374,217
151,910
4,303
147,607
141,520
6,087
97,965
63,855

3,092
6,929
10,216
15,988
6,835
2,267
4,786
12,455
6,562
5,104
363,214
8,041
65,517

3,205
6,511
9,290
15,979
6,005
2,252
4,834
11,894
6,600
5,118
361,606
8,058
65,112

3,652
6,586
8,821
15,778
6,448
2,237
4,851
12,296
6,649
5,120
363,330
8,082
64,342

3,544
6,407
9,480
15,815
5,808
2,207
4,831
11,963
6,688
5,088
361,892
8,130
63,526

4,031
6,692
10,428
16,517
6,991
2,172
4,825
13,043
6,619
5,060
368,096
8,149
67,221

3,727
6,795
9,406
16,401
5,579
2,142
4,780
12,297
6,681
5,077
363,960
8,112
66,503

3,412
6,196
9,332
15,760
6,376
2,131
4,820
12,034
6,727
5,094
362,879
8,121
65,072

3,074
6,640
8,876
15,678
5,974
2,112
4,824
11,893
6,770
5,099
360,848
8,156
66,078

3,466
6,751
8,784
15,696
6,640
2,101
4,848
12,201
6,705
5,120
362,392
8,203
67,662

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

658,830

650,164

652,138

648,725

663,505

658,104

658,374

650,511

667,505

184,271
610
123,983
4,160
2,956
33,046
9,006
2,031
8,479
254,398
67,046
63,107
3,323
602
14
187,352
156,239
20,532
393
5,345
4,843

179,161
578
125,157
3,850
1,736
29,700
8,922
1,585
7,632
254,660
66,423
62,572
3,264
569
17
188,237
156,951
20,656
359
5,548
4,722

182,756
625
122,583
4,122
2,810
34,100
9,208
1,671
7,637
256,149
65,901
62,154
3,182
551
14
190,248
158,822
20,662
360
5,694
4,711

172,441
539
118,779
3,938
1,592
30,454
8,176
1,954
7,009
256,406
65,851
62,113
3,180
546
11
190,555
158,921
20,574
362
5,819
4,879

189,573
869
129,852
4,249
877
33,387
9,365
1,902
9,074
256,727
65,844
62,150
3,125
559
9
190,883
160,054
19,972
356
5,706
4,795

183,459
743
125,530
3,967
863
33,656
8,871
2,142
7,686
258,454
65,616
61,934
3,136
533
13
192,838
161,658
19,953
362
5,814
5,051

185,737
746
128,317
4,412
1,330
32,840
8,204
2,207
7,680
257,900
64,861
61,290
3,024
538
9
193,039
161,583
19,861
378
5,920
5,297

175,359
620
122,289
4,162
1,060
30,388
7,850
1,735
7,254
258,877
64,004
60,446
3,022
526
10
194,873
163,246
19,909
359
6,003
5,355

188,805
725
124,794
5,360
1,916
36,329
8,691
2,836
8,153
258,673
63,316
59,729
2,994
583
10
195,357
163,995
19,638
388
6,034
5,301

1,356
1,507
107,955
65,907

1,741
251
104,604
66,271

1,548
1,580
100,769
66,000

3,204
5,726
99,365
68,125

1,037
203
102,756
69,577

898
194
104,733
66,656

2,607
4,347
99,083
65,162

1,767
5,335
100,274
65,173

2,844
9,961
98,410
64,814

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

615,395

606,688

608,801

605,267

619,873

614,394

614,836

606,785

623,507

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

43,435

43,475

43,337

43,458

43,632

43,710

43,538

43,726

43,998

45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

66
67

68
69

Deposits
Demand deposits .............................................................................
Mutual savings banks .................................................................
Individuals, partnerships, and corporations ..........................
States and political subdivisions ..............................................
U.S. government .........................................................................
Commercial banks in the United S ta tes..................................
, Banks in foreign countries.........................................................
Foreign governments and official institutions........................
Certified and officer’s ch eck s....................................................
Time and savings deposits .............................................................
Savings ...........................................................................................
Individuals and nonprofit organizations..............................
Partnerships and corporations operated for p ro fit............
Domestic governmental units ..............................................
All other ...................................................................................
Time ...............................................................................................
Individuals, partnerships, and corporations ......................
States and political subdivisions ..........................................
U.S. government .....................................................................
Commercial banks in the United S ta tes..............................
Foreign governments, official institutions, and banks . . . .
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..............................
Treasury tax-and-loan n o te s .......................................................
All other liabilities for borrowed money3 ..............................
Other liabilities and subordinated note and debentures . . . .

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




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

A22
1.29

Domestic Financial Statistics □ May 1980
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1980
Account
Mar. 5

Mar. 12

Mar. 19

Mar. 26

Apr. 2p

Apr. 9p

Apr. 16p

Apr. 23p

Apr. 30p

1 Cash items in process of collection ...............................................
2 Demand deposits due from banks in the United S ta tes..........
3 All other cash and due from depositary institutions................

19,536
12,146
8,793

18,042
12,484
7,250

19,946
13,192
6,284

18,803
13,053
8,657

19,332
13,218
6,624

18,652
13,353
8,049

18,614
12,004
8,533

18,466
11,228
8,149

20,987
15,431
10,030

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

112,262

111,192

113,442

109,617

116,135

112,806

112,683

111,704

112,551

Investment account, by m aturity..............................................
One year or l e s s .......................................................................
Over one through five y e a r s................................................
Over five y ea r s.........................................................................

6,003
1,290
4,001
712

5,978
1,291
4,021
666

5,623
940
4,029
654

5,602
935
4,017
650

5,907
1,001
4,244
662

5,907
1,001
4,244
662

5,850
979
4,203
667

5,640
919
3,997
724

5,752
866
4,268
617

Investment account .....................................................................
U.S. government agencies ....................................................
States and political subdivision, by m aturity......................
One year or l e s s ...................................................................
Over one y e a r .......................................................................
Other bonds, corporate stocks and securities....................

12,549
2,407
9,538
1,693
7,844
604

12,554
2,412
9,534
1,674
7,861
607

12,589
2,407
9,584
1,672
7,912
599

12,627
2,423
9,604
1,677
7,927
599

12,445
2,423
9,421
1,490
7,931
600

12,372
2,415
9,350
1,450
7,899
606

12,454
9,373
1,436
7,937
609

12,489
2,493
9,380
1,399
7,981
616

12,571
2,496
9,459
1,467
7,993
615

6,076
3,164
1,984
928
90,315
47,303
1,622
45,680
43,424
2,256
12,526
8,658

6,251
3,660
1,514
1,078
89,105
47,552
1,459
46,093
43,861
2,231
12,691
8,601

8,160
6,138
1,322
699
89,765
47,660
1,336
46,324
44,121
2,203
12,751
8,651

5,279
3,875
1,093
311
88,799
46,885
1,112
45,772
43,564
2,208
12,793
8,702

7,356
5,370
1,225
761
93,102
48,005
1,239
46,765
44,800
1,966
12,723
8,751

6,119
3,674
1,021
1,424
91,110
47,696
1,379
46,317
44,366
1,951
12,805
8,770

6,785
4,974
1,423
387
90,326
47,464
1,660
45,804
43,849
1,955
12,892
8,799

6,350
4,779
1,220
351
89,977
47,030
1,588
45,442
43,455
1,987
12,941
8,837

6,381
4,784
1,278
319
90,576
47,144
1,874
45,271
43,258
2,012
12,997
8,870

1,142
3,220
4,445
5,114
3,675
472
307
3,453
1,000
1,681
87,634
1,580
31,794

1,317
3,199
3,804
5,009
3,211
469
329
2,921
1,009
1,688
86,408
1,593
31,308

1,604
3,181
3,462
4,939
3,348
461
320
3,386
1,022
1,674
87,069
1,589
29,596

1,467
3,066
3,927
5,055
2,948
444
323
3,189
1,036
1,653
86,110
1,609
29,034

1,767
3,120
4,528
5,570
3,990
421
302
3,924
1,023
1,651
90,427
1,607
31,009

1,925
3,376
3,835
5,340
3,197
397
290
3,477
1,044
1,657
88,408
1,606
32,160

1,490
2,760
3,919
5,079
3,975
390
290
3,268
1,066
1,666
87,594
1,602
29,863

1,470
3,173
3,730
4,991
3,830
388
290
3,298
1,079
1,673
87,225
1,606
29,654

1,578
3,050
3,667
5,126
4,018
375
286
3,464
1,057
1,672
87,847
1,624
30,645

186,111

181,868

184,049

180,774

187,925

186,626

183,299

180,808

191,268

64,833
299
30,973
371
818
20,043
7,087
1,200
4,042
46,304
9,348
8,896
319
126
7
36,956
30,942
1,698
62
1,438
2,816

61,837
279
31,513
420
423
17,746
7,172
742
3,542
46,160
9,265
8,834
308
117
6
36,895
30,958
1,669
58
1,491
2,720

66,934
310
31,407
481
838
21,826
7,275
922
3,876
46,450
9,201
8,781
297
119
4
37,249
31,387
1,663
61
1,523
2,615

61,404
255
30,056
378
416
19,503
6,306
1,193
3,296
46,782
9,272
8,861
293
113
5
37,510
31,486
1,663
64
1,597
2,700

66,898
496
33,144
400
118
20,038
7,245
1,158
4,298
46,832
9,320
8,897
291
127
4
37,512
31,646
1,588
63
1,543
2,672

65,926
442
32,664
395
197
20,586
6,992
1,417
3,234
47,686
9,328
8,921
288
112
7
38,358
32,252
1,599
56
1,605
2,845

63,547
449
31,500
523
420
19,421
6,380
1,437
3,417
47,923
9,338
8,941
280
113
3
38,584
32,467
1,552
79
1,554
2,932

61,262
303
31,140
363
350
18,633
5,946
986
3,540
48,328
9,129
8,739
278
107
4
39,199
33,021
1,630
80
1,547
2,922

69,669
353
32,026
527
411
23,691
6,593
2,068
4,000
48,352
9,013
8,587
277
143
5
39,340
33,234
1,611
73
1,519
2,901

90
273
36,180
24,170

200
1
35,656
23,729

400
272
31,801
23,949

500
1,316
32,265
24,279

125
2
33,724
26,026

1
34,354
24,350

1,360
1,659
30,268
24,297

310
1,333
31,619
23,732

640
2,481
32,211
23,450

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

171,850

167,584

169,808

166,546

173,607

172,317

169,053

166,585

176,804

71 Residual (total assets minus total liabilities)7 ............................

14,261

14,284

14,240

14,228

14,318

14,309

14,246

14,223

14,464

Securities
6
7
8
9

10
11
V

13
14
15
16

17
18

Loans
19 Federal funds sold3 .........................................................................
To commercial banks .................................................................
To nonbank brokers and dealers in securities......................
To o th ers.......................................................................................
23 Other loans, gross ...........................................................................
24
Commercial and industrial .........................................................
Bankers’ acceptances and commercial paper ....................
25
All other ...................................................................................
26
27
U.S. addressees ...................................................................
Non-U.S. addressees ...........................................................
28
Real estate ...................................................................................
29
30 To individuals for personal expenditures................................
To financial institutions
Commercial banks in the United S ta tes..............................
31
Banks in foreign countries.....................................................
32
Sales finance, personal finance companies, etc...................
33
34
Other financial institutions.....................................................
35 To nonbank brokers and dealers in securities......................
36 To others for purchasing and carrying securities4 ................
To finance agricultural production ..........................................
37
All other .......................................................................................
38
39 L e s s : Unearned income .................................................................
Loan loss reserve .................................................................
40
41 Other loans, n e t ...............................................................................
42 Lease financing receivables ...........................................................
43 All other assets5 ...............................................................................

20
21
22

44 Total assets ..................................................................................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

67
68

69

Deposits
Demand deposits .............................................................................
Mutual savings banks .................................................................
Individuals, partnerships, and corporations ..........................
States and political subdivisions ...............................................
U.S. government .........................................................................
Commercial banks in the United S ta tes..................................
Banks in foreign countries.........................................................
Foreign governments and official institutions........................
Certified and officers’ ch eck s.....................................................
Time and savings deposits .............................................................
Savings ...........................................................................................
Individuals and nonprofit organizations..............................
Partnerships and corporations operated for p ro fit............
Domestic governmental units ...............................................
All other ...................................................................................
Time ...............................................................................................
Individuals, partnerships, and corporations ......................
States and political subdivisions ..........................................
U.S. government .....................................................................
Commercial banks in the United S ta tes..............................
Foreign governments, official institutions, and banks . . . .
Liabilities for borrowed money
Borrowings from Federal Reserve Banks ..............................
Treasury tax-and-loan n o t e s .......................................................
All other liabilities for borrowed money6 ..............................
Other liabilities and subordinated note and debentures..........

1.
2.
3.
4.

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




2M 2

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

Weekly Reporting Banks
1.30

LARGE WEEKLY REPORTING COMMERCIAL BANKS

A23

Balance Sheet Memoranda

Millions of dollars, Wednesday figures

Category
M ar. 5

M ar. 12

M ar. 19

M ar. 26

A p r. 2 p

A p r. 9p

A p r. 16p

A p r. 23 p

A p r. 30 p

B a n k s w i t h A s s e t s o f $750 M i l l i o n o r M o r e

1 T otal lo a n s (g r o ss) an d sec u r ities a d ju ste d 1 ....................................
2 T otal loan s (gross) a d ju ste d 1 ....................................................................
3 D e m a n d d ep o sits ad ju sted 2 ......................................................................

513,626
403,370
104,332

511,583
401,639
106,914

509,676
402,011
102,576

506,728
398,823
100,469

512,620
405,979
110,613

513,604
404,153
109,567

510,245
400,716
108,486

506,558
398,491
104,530

509,311
399,486
104,652

4 T im e d ep o sits in a ccoun ts o f $100,000 or m o r e .............................
5
N e g o tia b le C D s ..........................................................................................
6
O th er tim e d e p o s i t s ...................................................................................

132,396
94,045
38,351

132,593
93,914
38,679

133,570
94,599
38,971

133,640
94,530
39,110

132,324
93,508
38,815

133,444
94,471
38,973

132,978
94,194
38,784

134,159
95,185
38,974

134,692
95,623
39,069

7 L oan s sold ou trigh t to a ffilia te s3 .............................................................
8
C om m ercial and i n d u s t r i a l ....................................................................
9
O th er ................................................................................................................

2,602
1,673
929

2,609
1,678
931

2,609
1,687
922

2,569
1,652
917

2,580
1,666
914

2,581
1,679
902

2,678
1,764
914

2,600
1,693
908

2,633
1,645
988

10 T otal lo a n s (g ro ss) an d sec u r ities a d ju ste d 1 .....................................
11 T o ta l loan s (g r o ss) a d ju ste d 1 ....................................................................
12 D e m a n d d ep o sits a d ju sted 2 ......................................................................

480,059
378,122
96,743

478,025
376,461
99,141

476,081
376,787
94,791

473,338
373,811
92,806

479,265
380,836
102,614

480,113
378,885
101,513

476,927
375,610
100,622

473,248
373,466
97,102

475,935
374,507
97,149

13 T im e d ep o sits in a ccoun ts o f $100,000 or m o r e .............................
14
N eg o tia b le C D s ..........................................................................................
15
O th er tim e d e p o s i t s ...................................................................................

123,903
87,652
36,251

124,058
87,492
36,566

125,060
88,187
36,873

125,136
88,136
37,001

123,980
87,218
36,762

125,074
88,157
36,916

124,719
87,985
36,734

125,904
88,971
36,933

126,434
89,402
37,031

16 L oan s sold ou trigh t to a ffilia te s3 .............................................................
17
C om m ercial and industrial ....................................................................
18
O th er ................................................................................................................

2,557
1,644
912

2,560
1,647
914

2,564
1,657
907

2,524
1,624
900

2,541
1,638
903

2,541
1,651
890

2,640
1,737
902

2,559
1,665
894

2,592
1,618
974

19 Total loans (gross) and securities adjusted1-4 ............................
20 Total loans (gross) adjusted1 .........................................................
21 D e m a n d d ep o sits a d ju sted 2 ......................................................................

110,636
92,084
24,436

108,912
90,380
25,627

108,396
90,183
24,325

106,964
88,735
22,681

111,673
93,321
27,410

109,908
91,630
26,492

108,950
90,646
25,092

108,207
90,078
23,812

108,919
90,596
24,580

22 T im e d ep o sits in a ccoun ts o f $100,000 or m o r e .............................
23
N e g o tia b le C D s ..........................................................................................
24
O th er tim e d e p o s i t s ...................................................................................

29,056
20,550
8,506

28,904
20,375
8,529

29,806
20,502
8,584

29,260
20,709
8,551

28,980
20,471
8,509

29,545
21,063
8,482

29,662
21,240
8,421

30,115
21,690
8,425

30,221
21,805
8,416

B a n k s w i t h A s s e t s o f $1 B i l l i o n o r M o r e

B anks

in

N ew Y o r k C ity

1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.

3. Loans sold are those sold outright to a bank’s own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank’s holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
4. Excludes trading account securities.

NOTES TO TABLE 1.311.
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus U.S. branches, agencies, and New York in­
vestment company subsidiaries of foreign banks and Edge Act corporations.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates.
Includes averages of Wednesday data for domestic chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and partici­
pations in pooled loans. Includes averages of daily figures for member banks




and averages of current and previous month-end data for foreign-related institu­
tions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.

6. Includes averages of daily figures for member banks and quarterly call report
figures for nonmember banks.
7. Includes averages of current and previous month-end data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.

A24
1.31

Domestic Financial Statistics □ May 1980
LARGE WEEKLY REPORTING COMMERCIAL BANKS

Domestic Classified Commercial and Industrial Loans

Millions of dollars
Outstanding
Industry classification

1979

Net change during

1980

1979

Adjust­
ment
bank

1980

Dec. 26

Jan. 30

Feb. 27'

Mar. 26'

Apr. 30

1 Durable goods manufacturing ..............

23,593

23,735

24,237

24,961

24,003

2 Nondurable goods manufacturing........
3 Food, liquor, and tob acco..................
4 Textiles, apparel, and leather ..........
5 Petroleum refining ..............................
6 Chemicals and rubber ........................
7 Other nondurable g o o d s ....................

19,205
5,220
4,342
2,677
3,836
3,129

19,116
4,941
4,138
3,175
3,714
3,148

19,302
4,885
4,331
3,111
3,714
3,260

19,824
4,923
4,480
3,139
3,911
3,370

18,692
4,177
4,614
2,612
3,910
3,379

298
314
-6 8 6
705
209
-2 4 3

04

Q l'
1

Feb.'

Mar.'

Apr.

1,322

503

724

-9 5 8

46

580
-3 0 2
132
461
61
229

186
-5 6
194
-6 3

522
38
149
28
197
110

-1,132
-7 4 6
133
-5 2 7
-1
10

39
6
6
1
14
12

112

8 Mining (including crude petroleum
and natural gas) ..............................

11,998

12,323

12,479

12,596

13,280

317

585

156

117

684

14

9 Trade .........................................................
10 Commodity dealers ............................
11
Other wholesale ...................................
12 Retail .....................................................

24,885
2,134
11,992
10,759

24,438
2,136
11,705
10,597

25,184
2,171
11,938
11,076

25,456
1,816
12,097
11,543

25,325
1,784
12,050
11,491

230
275
52
-9 6

450
-3 2 3
71
702

746
35
233
479

272
-3 5 4
159
468

-131
-3 2
-4 7
-5 3

121
6
34
82

14
15
16

13 Transportation, communication,
and other public u tilities................
Transportation ....................................
Communication....................................
Other public utilities ..........................

17,830
7,133
2,522
8,176

18,027
7,173
2,619
8,236

17,884
7,238
2,630
8,016

18,292
7,516
2,747
8,028

18,841
7,693
2,853
8,295

1,070
300
197
574

448
376
224
-1 5 2

-1 4 3
65
11
-2 1 9

407
278
117
12

550
177
105
267

14
7
1
5

17 Construction .............................................
18 Services .....................................................
19 All other1 ...................................................

5,778'
19,399'
14,817'

5,783'
19,840
15,202

5,772
19,964
15,220

5,874
20,211
15,028

5,878
20,495
15,005

-1 1 4 '
1,040
94'

73
715
-7 7

-1 1
123
19

102
247
-1 9 2

4
284
-2 3

23
96
288

20 Total domestic lo an s..............................

137,505'

138,464'

140,043

142,242

141,520

2,935'

4,096

1,579

2,199

-722

641

21 M e m o : Term loans (original maturity
more than 1 year) included in do­
mestic lo a n s ......................................

72,449'

74,864'

74,780

76,026

76,210

4,077'

3,544

-8 4

1,246

184

33

1. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.

1.311

N o t e . New series. The 134 large weekly reporting commercial banks with domestic assets of $1 billion or more as of December 31, 1977, are included in this
series. The revised series is on a last-Wednesday-of-the-month basis.

MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
December outstanding

Outstanding in 1979 and 1980

Source
1976

1
2
3
4
5
6

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

1977

1978

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

54.7
53.3

61.8
60.4

85.4
84.4

129.7
131.3

131.0
131.2

129.8
130.5

125.6
128.4

120.0
118.5

123.1
121.7

130.7
127.4

133.3
130.2

47.1
45.8
3.7
3.8

58.4
57.0
- 1 .3
4.8

74.8
73.8
6.8
3.8

92.9
94.5
33.1
3.7

91.3
91.5
35.9
3.7

91.9
92.6
34.3
3.6

85.9
88.6
36.2
3.6

88.0
86.5
29.2
2.8

92.0
90.6
28.5
2.7

97.2
93.9
30.9
2.6

97.9
94.8
32.9
2.6

-6 .0
12.8
6.8

-1 2 .5
21.1
8.6

-1 0 .2
24.9
14.7

8.2
19.5
27.7

10.5
21.7
32.2

9.1
22.1
31.2

11.4
21.7
33.0

6.4
22.9
29.3

5.9
23.0
28.9

6.6
23.4
29.8

9.3
23.6
32.9

9.7
8.3
18.1
27.9
27.0
3.9
4.4
137.7
140.0

11.1
10.3
21.4
36.3
35.1
4.4
5.1
162.0
165.4

17.0
14.2
31.2
43.8
42.4
8.7
10.3
213.0
217.9

24.9
16.2
41.0
43.0
44.7
12.4
9.8
216.4
214.2

25.4
18.1
43.5
45.0
46.8
11.1
12.4
223.2
221.2

25.3
20.5
45.7
46.9
46.4
12.9
11.7
228.4
227.9

24.8
21.9
46.8
41.8
43.9
5.7
5.5
231.3
232.6

22.8
24.2
47.0
46.7
45.2
7.9
9.5
229.8
235.0

22.5
26.1
48.6
48.6
45.3
12.5
12.4
231.1
235.1

24.4
27.1
51.5
46.9
45.2
11.0
11.4
237.0
238.1

23.6
27.5
51.1
41.7
41.1
7.1
7.4
239.5
241.7

M em o

7 Domestic chartered banks net positions with own foreign
branches, not seasonally adjusted6 ......................................
8 Gross due from balances ...........................................................
9
Gross due to b alances.................................................................
10 Foreign-related institutions net positions with directly related
institutions, not seasonally adjusted7 ..................................
11
Gross due from balances ...........................................................
12 Gross due to balances.................................................................
13 Security RP borrowings, seasonally adjusted8 ..........................
14 Not seasonally adjusted .............................................................
15 U.S. Treasury demand balances, seasonally adjusted9 ............
16 Not seasonally adjusted .............................................................
17 Time deposits, $100,000 or more, seasonally adjusted1 0 ........
18 Not seasonally adjusted .............................................................
For notes see bottom of page A23.




Deposits and Commercial Paper
1.32

A25

GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1976
Dec.

1980

1977
Dec.
Sept.

1 All holders—Individuals, partnerships, and

19792

1978
1975
Dec.

Dec.

Mar.

June

Sept.

Dec.

Mar.

corporations.......................................................

236.9

250.1

274.4

278.8

294.6

270.4

285.6

292.4

302.2

288.4

2 Financial business .......................................................
3 Nonfinancial business .................................................
4 Consumer .....................................................................
5 Foreign...........................................................................
6 Other .............................................................................

20.1
125.1
78.0
2.4
11.3

22.3
130.2
82.6
2.7
12.4

25.0
142.9
91.0
2.5
12.9

25.9
142.5
95.0
2.5
13.1

27.8
152.7
97.4
2.7
14.1

24.4
135.9
93.9
2.7
13.5

25.4
145.1
98.6
2.8
13.7

26.7
148.8
99.2
2.8
14.9

27.1
157.7
99.2
3.1c
15.1

28.4
144.9
97.6
3.1
14.4

Weekly reporting banks
1978
1975
Dec.

1976
Dec.

Nov.

7 All holders—Individuals, partnerships, and
corporations.......................................................
8
9
10
11
12

Financial business .......................................................
Nonfinancial business .................................................
Consumer .....................................................................
Foreign...........................................................................
Other .............................................................................

1980

Dec.

Mar.

June

Sept.

Dec.

Mar.

124.4

128.5

139.1

142.7

147.0

121.9

128.8

132.7

139.3

133.6

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

19.3
75.7
37.7
2.5
7.5

19.8
79.0
38.2
2.5
7.5

16.9
64.6
31.1
2.6
6.7

18.4
68.1
33.0
2.7
6.6

19.7
69.1
33.7
2.8
7.4

20.1
74.1
34.3
3.0
7.8

20.1
69.1
34.2
3.0
7.2

3. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See “Announcements,” p. 408 in the
May 1978 B u l l e t in . Beginning in March 1979, demand deposit ownership esti­
mates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.

1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 B u l l e t in , p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1

1.33

19793

1977
Dec.

COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1979

Instrument

1976

1977

Dec.

1980

1978

Dec.

Dec.
Sept.

Oct.1

Nov.

Dec.

Jan.

Feb.

Mar.

Commercial paper (seasonally adjusted)
1 All issuers .................................................................

2

3
4
5
6

Financial companies2
Dealer-placed paper3
Total ...........................................................................
Bank-related .............................................................
Directly placed paper4
Total ...........................................................................
Bank-related .............................................................
Nonfinancial companies5 .............................................

53,010

65.036

83,420

107,249

107,116

109,395

112,803

116,718

116,446

119,893

7,263
1,900

8,888
2,132

12,300
3,521

18,209
4,485

16,133
3,052

16,765
2,958

17,579
2,784

17,768
3,034

17,308
3,010

18,254
3,142

32,622
5,959
13,125

40,612
7,102
15,536

51,755
12,314
19,365

61,505
15,930
27,535

63,338
18,024
27,645

64,640
18,339
27,990

64,931
17,598
30,293

66,342
19,221
32,608

65,368
19,922
33,770

64,440
19,338
37,199

Bankers dollar acceptances (not seasonally adjusted)

7 Total ..........................................................................
8
9
10
11
12
13

Holder
Accepting b a n k s...........................................................
Own bills ..........................................................................
Bills b ou gh t...............................................................
Federal Reserve Banks
Own account.............................................................
Foreign correspondents..........................................
Others ...........................................................................

22,523

25,450

33,700

42,147

43,486

43,599

45,321

47,780

50,269

49,317

10,442
8,769
1,673

10,434
8,915
1,519

8,579
7,653
927

8,119
7,288
831

7,785
7,121
664

8,297
7,514
782

9,865
8,327
1,538

8,578
7,692
886

9,343
8,565
778

8,159
7,560
598

991
375
10,715

954
362
13,700

1
664
24,456

1,053
1,470
31,505

317
1,498
33,886

269
1,465
33,569

704
1,382
33,370r

0
1,431
37,771

205
1,417
39,303r

171
1,373
39,614

4,992
4,818
12,713

6,378
5,863
13,209

8,574
7,586
17,540

9,724
9,354
23,069

10,129
9,519
23,838

10,354
9,271

23 S I A

10,270
9,640
25,411

11,217
10,248
26,315

11,393
11,102
27,774

10,926
11,001
27,389

Basis
14 Imports into United S ta tes........................................
15 Exports from United S ta te s......................................
16 All other .......................................................................

1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October.
2. Institutions engaged primarily in activities such as, but not limited to, com­
mercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, ana other business lending; insurance underwriting; and
for FRASER activities.
other investment

Digitized


3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with inves­
tors.
5. Includes public utilities and firms engaged primarily in such activities, as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and reserves.

A26
1.34

Domestic Financial Statistics □ May 1980
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum

Effective date

1979—Nov.

1 ................
9 ................
16 ................
30 ................
Dec. 7 ................
1980—Feb. 19 ..................
22 ..................
2 9 ..................

1.35

15V4
15VS
153
/4
15V4
15 V
4
153
/4
16*4-16^
163
/4

Rate

1980—Mar.

4
7
14
19
28
Apr. 2
18

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

Month

Average
rate

Month

Average
rate

171/4
173
/4
18 Vi
19
19k>
20
19 Vi

Effective Date

Rate

1979—Jan............................
Feb...........................
Mar...........................
Apr...........................
May ........................
J u n e ........................
July ........................
Aug..........................

11 75
11.75
11.75
11.75
11.75
11.65
11.54
11.91

1979—Sept .
Oct............................
Nov...........................
D ec...........................
1980—Jan............................
Feb............................
Mar ..................
Apr...........................

12.90
14.39
15.55
15.30
15.25
15.63
18.31
19.77

TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 4-9, 1980 A
Size o f loan (in thousands o f dollars)
Item

All
sizes
1-24

25-49

50-99

100-499

1,000
and over

50-999

S hort -T erm C ommercial and
Industrial L oans
1
2
3
4
5

Am ount of loans (thousands of d o lla r s ).........................
Number of loans ....................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

9,920,415
135,532
2.5
15.67
14.87-16.43

768,933
100,191
3.4
15.06
13.65-16.99

485,280
14,735
3.4
15.54
13.80-17.27

526,248
8,270
3.2
15.91
14.99-17.39

1,709,993
9,789
3.3
16.23
15.40-17.27

659,611
1,032
3.1
16.34
15.73-17.00

5,770,349
1,515
1.9
15.50
14.84-16.21

50.8
47.8
25.6

19.0
19.8
10.7

39.4
29.0
18.1

46.3
37.2
22.9

58.1
50.0
21.1

61.0
59.6
34.4

53.3
52.0
28.7

Percentage of amount of loans
6 With floating r a t e ...................................................................
7 Made under co m m itm en t....................................................
8 With no stated m a tu r ity ......................................................
L ong -T erm C ommercial and
Industrial L oans
9
10
11
12
13

Am ount o f loans (thousands of d o lla r s ).........................
Number of loans ...................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

1,866,260
21,710
43.2
15.32
15.25-16.25

287,223
20,016
32.3
15.42
14.00-16.94

254,459
1,243
42.8
15.40
15.25-16.70

120,692
186
50.9
15.70
15.25-16.90

1,223,885
264
45.1
15.24
15.25-15.86

65.6
71.4

20.0
29.0

46.0
72.9

76.5
74.9

79.3
80.7

Percentage of amount of loans
14 With floating r a t e ....................................................................
15 Made under commitment ....................................................
C onstruction and
L and D evelopment L oans
16
17
18
19
20

Am ount of loans (thousands o f d o lla r s ).........................
Number of loans ....................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

21
22
23
24

855,640
18,763
13.1
15.79
13.85-17.99

102,387
11,371
17.5
15.80
14.08-17.45

97,606
2,806
4.5
14.47
12.55-16.09

178,002
2,645
2.8
14.96
13.80-16.10

278,768
1,788
20.7
16.80
16.25-18.11

198,877
152
14.5
15.78
13.50-18.01

39.3
95.4
60.6
9.0

26.5
93.1
62.8
7.2

18.4
99.4
78.4
4.2

16.5
99.0
69.2
4.8

35.4
94.7
42.4
10.8

82.2
92.5
68.7
13.4

54.2
5.3
40.4

75.6
3.0
21.4

88.7
2.7
8.6

74.1
4.0
22.0

34.7
9.1
56.1

36.0
3.8
60.3

With floating r a t e ....................................................................
Secured by real e s t a t e ...........................................................
Made under commitment ....................................................
With no stated m a tu r ity ......................................................

Percentage of amount of loans

Type of construction
25 1- to 4-family ..........................................................................
26 Multifamily ...............................................................................
27 Nonresidential ........................................................................

All
sizes

1-9

10-24

25-49

50-99

100-249

250
and over

L oans to F armers

28 Am ount of loans (thousands o f d o lla r s ).........................
29 Number of loans ....................................................................
30 Weighted-average maturity (months) .............................
31 Weighted-average interest rate (percent per annum)
32
Interquartile range1 ...........................................................

By purpose o f loan
33 Feeder livestock ......................................................................
34 Other liv e s to c k ........................................................................
35 Other current operating e x p e n s e s ....................................
36 Farm machinery and equipment ......................................
37 Other ..........................................................................................

1,142,204
63,877
7.2
14.14
13.39-15.03

149,134
41,030
8.1
13.49
12.89-14.37

177,200
11,985
7.6
13.58
12.55-14.67

14.41
13.48
14.28
13.00
14.60

13.35
14.19
13.52
13.17
13.35

12.99
14.81
13.81
13.10
13.52

1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.




184,658
5,443
13.72
13.21-14.28

221,694
3,490
7.1
13.76
13.42-14.20

195,259
1,485
8.3
14.77
13.65-15.75

214,259
443
5.7
15.25
13.90-16.36

14.08
13.76
14.09
12.05
14.06

14.14
12.44
14.32
13.75
14.16

14.64

15.40

14.73
14.02
16.39

14.79

6.6

A Revised; data published in the April 1980 B u l l e t in were not final.
N ote.

For more detail, see the Board’s E.2(416) statistical release.

15.86

Securities Markets
1.36

A ll

INTEREST RATES Money and Capital Markets
Averages, percent per annum
1980
1977

Instrument

1978

1980, week ending

1979
Jan.

Feb.

Mar.

Apr.

Apr. 5

Apr. 12

Apr. 19

Apr. 26

May 3

Money market rates
1 Federal funds1 .............................................
Commercial paper2-3
1-month .....................................................
3-month .....................................................
6-month .....................................................
Finance paper, directly placed2-3
5
1-month .....................................................
6
3-month .....................................................
7 6-month .....................................................
8 Prime bankers acceptances, 90-day3-4 . . .
Certificates of deposit, secondary market5
9
1-month .....................................................
10 3-month .....................................................
11 6-month .....................................................
12 Eurodollar deposits, 3-month6 ................
2
3
4

U.S. Treasury bills3-7
Secondary market
3-month .................................................
6-month .................................................
1-year .....................................................
Auction average8
16
3-month .................................................
17
6-month .................................................
13
14
15

5.42
5.54
5.60

7.76
7.94
7.99

10.86
10.97
10.91

13.07
13.04
12.66

13.62
13.78
13.60

16.55
16.81
16.50

16.10
15.78
14.93

17.22
17.41
17.08

17.73
17.44
16.52

16.74
16.25
15.24

14.90
14.44
13.47

12.76
12.44

5.38
5.49
5.50
5.59

7.73
7.80
7.78

8.11

10.78
10.47
10.25
11.04

13.01
11.96
11.79
13.15

13.58
13.05
12.39
14.01

16.30
15.36
14.70
17.10

15.70
14.05
13.68
15.63

17.15
15.66
15.21
17.51

17.62
15.41
14.84
17.12

16.44
14.37
14.11
16.06

13.99
12.82
12.50
14.39

12.20
11.42
11.15
12.46

5.48
5.64
5.92
6.05

7.88

11.03

8.22

11.22

8.61
8.74

11.44
11.96

13.26
13.39
13.48
14.33

13.93
14.30
14.58
15.33

16.81
17.57
17.74
18.72

16.23
16.14
15.80
17.81

17.33
18.07
18.28
19.60

17.60
17.65
17.57
19.45

16.92
16.62
15.89
18.54

15.24
14.79
14.24
17.10

12.97
12.89
12.67
15.33

5.27
5.53
5.71

7.19
7.58
7.74

10.07
10.06
9.75

12.00
11.84
10.96

12.86

15.20
15.03
14.03

13.20

12.86
12.46

11.97

14.78
14.75
13.90

14.30
14.11
13.11

13.57
13.03
11.97

12.18
11.72
10.80

10.47
10.38
9.99

5.265
5.510

7.221
7.572

10.041
10.017

12.036
11.851

12.814
12.721

15.526
15.100

14.003
13.618

15.037
14.804

14.424
14.226

13.818
13.549

12.731
11.892

10.788
10.790

11.86

12.88

11.88

Capital market rates
U .S . T r e a s u r y N o t es

18
19
20
21
22
23
24
25
26

and

B onds

Constant maturities9
1-year .......................................................
2 -y ea r.......................................................
2V2-year10 ...............................................
3-year .......................................................
5-year .......................................................
7-year .......................................................
10-year .....................................................
20-year .....................................................
30-year .....................................................

Composite1
1
27
3 to 5 years12 .........................................
28
Over 10 years (long-term) ..................
S ta t e

and

L o c a l N o t es

and

6.09
6.45

10.67
9.71
9.52
9.48
9.44
9.33
9.29

12.06
11.50
11.15
10.88
10.74
10.77
10.80
10.65
10.60

10.12

6.69 '
6.99
7.23
7.42
7.67

13.92
13.42
14.00
12.84
12.60
12.53
12.41
12.13

15.82
14.88
14.65
14.05
13.47
13.00
12.75
12.49
12.34

12.21

13.30
12.50
11.25

15.74
14.56

14.68
13.61

13.21
12.28

11.44

10.94
10.61

12.02

13.64
13.29
12.74
12.62
12.43
12.30

12.91 ‘
12.57
12.04
12.05
11.77
11.76

11.81
11.67
11.25
11.25
11.15
11.17

11.23 '
11.08
10.93
10.90
11.04
11.05

10.49
10.63
10.54
10.57
10.78
10.77

11.84
11.49
11.47
11.42
11.40

6.85
7.06

8.30
7.89

9.58
8.74

10.76
10.03

12.52
11.55

13.41
11.87

5.20

5.52
6.27
6.03

5.92
6.73
6.52

6.58
7.60
7.35

7.28

5.68

8.16

8.16
10.30
9.17

8.43

9.07

10.12

11.74

12.92

13.73

13.21

13.93

8.02

9.63
9.94
10.20
10.69

11.09
11.56
12.42

12.38
12.73
12.99
13.57

12.96
13.51
13.97
14.45

12.04
13.06
13.55
14.19

12.95
13.76
14.24
14.75

10.15

B onds

Moody’s series13
29 Aaa .............................................................
30 B a a ...............................................................
31 Bond Buyer series14 ................................

6.12

8.12

7.95
9.19
8.63

8.25
10.00
9.44

8.60
9.75
9.07

7.60
8.75
7.89

7.35
8.25

8.11

7.15
8.25
7.96

13.65

13.12

12.79

12.60

12.57
13.50
13.95
14.56

11.87
13.03
13.45
14.11

11.51
12.62
13.17
13.86

11.38
12.39
12.94
13.68

C orporate B onds

32 Seasoned issues, all industries15 ............
By rating group
33
Aaa .........................................................
34
Aa ...........................................................
35
A .............................................................
36
B a a ...........................................................

8.24
8.49
8.97

8.73
8.92
9.12
9.45

Aaa utility bonds16
37
New issue ...............................................
38
Recently offered is s u e s ........................

8.19
8.19

8.96
8.97

10.03
10.02

11.73
11.77

13.57
13.35

14.00
13.90

12.90
12.91

13.98
13.93

13.28
13.30

12.87
12.69

12.42
12.64

12.10
12.05

Dividend/price ratio17
Preferred sto c k s ....................................
Common stocks ....................................

7.60
4.56

8.25
5.28

9.07
5.46

10.14
5.40

10.55
5.24

11.26
5.77

11.06
6.05

11.75
6.06

11.48
6.04

11.17
6.14

10.78
6.05

10.12
5.94

11.88

M em o :

39
40

1. Weekly figures are seven-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on a given
day weighted by the volume of transactions at these rates.
2. Beginning November 1977, unweighted average of offering rates quoted by
at least five dealers (in the case of commercial paper), or finance companies (in
the case of finance paper). Previously, most representative rate quoted by those
dealers and finance companies. Before November 1979, maturities for data shown
are 30-59 days, 90-119 days, and 120-179 days for commercial paper; and 30-59
days, 90-119 days, and 150-179 days for finance paper.
3. Yields are quoted on a bank-discount basis.
4. Average of the midpoint of the range of daily dealer closing rates offered for
domestic issues.
5. Five-day average of rates quoted by five dealers (three-month series was
previously a seven-day average).
6. Averages of daily quotations for the week ending Wednesday.
7. Except for auction averages, yields are computed from daily closing bid prices.
8. Rates are recorded in the week in which bills are issued.
9. Yield on the more actively traded issues adjusted to constant maturities by
the U.S. Treasury, based on daily closing bid prices.




10. Each figure is an average of only five business days near the end of the
month. The rate for each month is used to determine the maximum interest rate
payable in the following month on small saver certificates. (See table 1.16).
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 several very low yielding “flower”
bonds.
12. The three- to five-year series has been discontinued.
13. General obligations only, based on figures for Thursday, from Moody’s
Investors Service.
14. Twenty issues of mixed quality.
15. Averages of daily figures from Moody’s Investors Service.
16. Compilation of the Board of Governors of the Federal Reserve System.
Issues included are long-term (20 years or more). New-issue yields are based on
quotations on date of offering; those on recently offered issues (included only for
first 4 weeks after termination of underwriter price restrictions), on Friday closeof-business quotations.
17. Standard and Poor’s corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one trans­
portation. Common stock ratios on the 500 stocks in the price index.

A28
1.37

Domestic Financial Statistics □ May 1980
STOCK M ARKET

Selected Statistics
1980

Indicator
Dec.

Feb.

Mar.

Apr.

Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31, 1965 = 50) .
2
Industrial ...................................................................
3 Transportation .........................................................
4
U tility .........................................................................
5 Finance .....................................................................
6 Standard & Poor’s Corporation (1941— = 10)1 .
43
7 American Stock Exchange (Aug. 31, 1973 = 100)

53.67
57.84
41.07
40.91
55.23
98.18
116.18

53.76
58.30
43.25
39.23
56.74
96.11
144.56

55.67
61.82
45.20
36.46
58.65
98.34
186.56

48.07
36.58
61.64
104.47
212.33

59.02
66.45
47.61
36.55
60.64
103.66
216.58

61.75
69.82
50.59
37.29
63.21
107.78
238.83

63.74
72.67
52.61
37.08
64.22
110.87
259.54

66.05
76.42
57.92
36.22
61.84
115.34
288.99

59.52
68.71
51.77
33.38
54.71
104.69
259.79

58.47
66.31
48.62
35.29
57.32
102.97
242.60

Volume of trading (thousands of shares)
8 New York Stock Exchange ......................................
9 American Stock Exchange ........................................

20,936
2,514

28,591
3,622

32,233
4,182

37,301
5,446

31,126
3,938

35,510
5,389

52,647
9,363

47,827
6,903

41,736
5,947

32,102
3,428

59.27
66.68

Customer financing (end-of-period balances, in millions of dollars)

10 Regulated margin credit at brokers/dealers2

9,993

11,035

11,615

11,483

11,083

11 Margin stock3 ..................................................
12 Convertible bonds ..........................................
13 Subscription is s u e s ..........................................

9,740
250
3

10,830
205

11,450
164

11,310
173

10,920
161

11,450
167r

1

1

2

2'

Free credit balances at brokers4
14 Margin-account................................................
15 Cash-account....................................................

640
2,060

835
2,510

1,050
4,060

950
3,490

955
3,435

11,987"

1,105
4,060

12,638

11,820
165r
V

12,460
175
3

11,740
171
3

1,180
4,680

1,320
4,755

1,365
5,000

Margin-account debt at brokers (percentage distributions, end of period)
16 Total ..........................................................................
17
18
19
20
21
22

By equity class (in percent)5
Under 40 .......................................................................
40-49 .............................................................................
50-59 .............................................................................
60-69 .............................................................................
70-79 .............................................................................
80 or m o r e .....................................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

18.0
36.0
23.0

33.0
28.0
18.0
10.0
6.0
5.0

16.0
26.0
24.0
14.0
8.0
7.0

27.0
31.0
20.0
10.0
6.0
6.0

17.0
31.0
25.0
13.0
7.0
7.0

16.0
31.0
24.0
14.0
8.0
7.0

13.0
29.0
25.0
16.0
9.0
8.0

16.0
29.0
25.0
14.0
9.0
7.0

45.0
22.0
13.0
9.0
6.0
5.0

11.0
6.0
5.0

n.a.

1

1

Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6

9,910

13,092

Distribution by equity status (percent)
24 Net credit sta tu s..................................
Debt status, equity of
25
60 percent or more ........................
26
Less than 60 p ercen t......................

44.9
11.7

45.1
13.6

16,290

14,800

14,995

48.5

44.5

46.5

48.5

43.6
7.9

45.5

45.0
8.5

43.6
7.9

10.0

16,550

16,670

17,025

47.7
7.3

45.4
7.7

39.7

11.6

Margin requirements (percent of market value and effective date)7
Mar. 11, 1968
27 Margin stocks . . .
28 Convertible bonds
29 Short s a le s ..........

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or
related equity instruments and secured at least in part by stock. Credit extended
is end-of-month data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally. Regu­
lations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.




50
50
50

5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually sales pro­
ceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­
scribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term “margin stocks" is defined in the corresponding
regulation.

Thrift Institutions
1.38

SAVINGS INSTITUTIONS

A29

Selected Assets and Liabilities

M illio n s o f d o lla r s , e n d o f p e r io d

1979
Account

1977

1980

1978
June

July

Aug.

Sept.

Nov.

Oct.

Dec.

Jan.

Feb.

Mar .p

Savings and loan associations
1 Assets .........................................................

459,241

523,542

555,409

561,037

566,493

570,479

576,251

578,922

579,307

582,252

585,685

587,430

2 Mortgages .....................................................
3 Cash and investment securities1 ................
4 Other .............................................................

381,163
39,150
38,928

432,808
44,884
45,850

456,544
48,253
50,612

460,620
49,496
50,721

464,609
50,007
51,877

468,307
49,3013
52,871

472,198
49,220
54,833

474,678
48,180
56,064

475,797
46,541
56,969

476,448
48,473
57,331

477,303
50,168
58.214

479,070
50,593
59,767

5 Liabilities and net worth ...........................

459,241

523,542

555,409

561,037

570,479

566,493

576,251

578,922

579,307

582,252

585,685

587,430

Savings capital .............................................
Borrowed money ........................................
FHLBB .....................................................
Other .........................................................
Loans in p rocess..........................................
Other .............................................................

386,800
27,840
19,945
7,895
9,911
9,506

430,953
42,907
31,990
10,917
10,721
9.904

454,642
46,993
34,266
12,727
11,260
11,681

456,657
48,437
35,286
13,151
11,309
13,503

457,856
50,437
36,009
14,428
11,047
15,712

462,626
52,738
37,620
15.118
10,909
12.497

464,489
54,268
39,223
15,045
10,766
14,673

465.646
54,433
39,638
14,795
10,159
16,324

470,171
55,375
40,441
14,934
9.511
11.684

472.236
55,233
40.364
14,869
8.735
13,315

473.862
55.276
40,337
14,939
8,269
15.385

478,065
57,559
42,458
15,101
8,105
12,557

12 Net worth2 .....................................................

25,184

29,057

30,833

31,131

31,441

31,709

32,055

32,360

32.566

32,733

32.893

33,144

13 M e m o : Mortgage loan com­
mitments outstanding3 ........................

19,875

18.911

22,770

22,360

22,282

22,397

20,930

18.029

16,007

15.559

16.744

15,935

6
7
8
9
10
11

Mutual savings banks4

14,287

158,174

161,814

162,598

163,388

163,431

163,133

163,205

163,366

163,214

163,214

88,195
6,210

95,157
7,195

96,743
9,577

97,238
10,282

97,637
10,430

97.973
9.982

98.304
9.510

98.610
9.449

98.924
9.259

98.949
9.771

99.229
9.771

5,895
2,828
37,918
2,401
3,839

4,959
3,333
39,732
3,665
4,131

8,029
3,175
37,281
2,764
4.245

7.992
3,154
37.171
2..540
4.220

7,921
3,149
37,125
2.866
4,260

7.891
3,150
37,076
3,020
4,339

7.750
3.100
37.210
2.909
4,351

7.754
3,003
37,036
3,010
4,343

7.630
2.929
37.119
3.198
4.308

7.366
2.886
37.157
2.755
4.329

7.415
2.852
37.270
3.072
4.385

22 Liabilities ...................................................

147,287

158,174

161,814

162,598

163,388

163,431

163,133

163,205

163,366

163,214

163,214

23
24
25
26
27
28
29
30

134,017
132,744
78,005
54,739
1,272
3,292
9,978

142,701
141,170
71,816
69,354
1,531
4,565
10,907

146,057
144,161
68,104
76,057
1,896
4,545
11,212

145.757
143,843
67.537
76,306
1.914
5.578
11,264

145,713
143,731
66,733
76,998
1.982
6.350
11.324

146.252
144.258
65.676
78.572
2.003
5.790
11.388

145.096
143.263
62.672
80.591
1,834
6.600
11,437

144,828
143.064
61.156
81.908
1.764
6.872
11.504

145.855
143,903
61,078
82,824
1,952
5.989
11.522

144.902
142.980
59,191
83.789
1.923
6,773
11.539

145.023
143.121
58,172
84.950
1.902
3.190
11.539

4,066

4,400

4,469

4,214

4.071

4.123

3.749

3.619

3.182

2,919

2.618

14 Assets .........................................................
15
16
17
18
19
20
21

Loans
Mortgage ...................................................
Other .........................................................
Securities
U.S. government5 ....................................
State and local government ..................
Corporate and other6 ..............................
Cash ...............................................................
Other a sse ts...................................................

Deposits .........................................................
Regular7 .....................................................
Ordinary savin gs...................................
Time and o th e r ....................................
Other .........................................................
Other liabilities .............................................
General reserve accounts ..........................
Memo: Mortgage loan com­
mitments outstanding8 ........................

n.a.

Life insurance companies
31 Assets .............................................................

351,722

389,924

409,853

414,120

418,350

421,660

423,760

427,496

431,453

436,378

439,119

Securities
Government .............................................
United States9 .......................................
State and local ....................................
Foreign10 ...............................................
Business .....................................................
Bonds .....................................................
Stocks .....................................................
Mortgages .....................................................
Real e s ta te .....................................................
Policy loans ...................................................
Other a sse ts...................................................

19,553
5,315
6,051
8,187
175,654
141,891
33,763
96,848
11,060
27,556
21,051

20,009
4,822
6,402
8,785
198,105
162,587
35,518
106,167
11,764
30,146
23,733

20,397
5,178
6,241
8,978
209,804
173,130
36,674
111,123
12,199
32,131
24,199

20,468
5,228
6,243
8,997
212,876
175.854
37.022
112,120
12,351
32,390
23,915

20,472
5,229
6,258
8,985
215,252
176,920
38,332
113.102
12,738
32,713
24,073

20,379
5,067
6,295
9,017
216,500
177,698
38,802
114.368
12.740
33.046
24.627

20.429
5,075
6,339
9,015
216.183
178.633
37.550
115.991
12,816
33.574
24,767

20,486
5.122
6.354
9,010
217,856
179.158
38.698
117,253
12.906
34.220
24.775

20,294
4.984
6,392
8,918
218,284
178,828
39,456
118,784
13,047
34.761
26,283

20.281
4,896
6.417
8.968
222.475
182,305
40,170
120.083
13,076
35.261
25.202

20.317
4,953
6.516
8.850
223.998
183,383
40.615
121.100
13.241
35.784
24.677

32
33
34
35
36
37
38
39
40
41
42

n. a.

Credit unions
43 Total assets/liabilities and

capital .................................................
44
45
46
47
48
49
50
51

53,755

62,348

65,435

68,840

65,547

66,280

65,063

65,419

65,854

64,506

64,857

65,678

Federal ...........................................................
State ...............................................................
Loans outstanding .......................................
Federal .......................................................
State ...........................................................
Savings ...........................................................
Federal (shares) .......................................
State (shares and deposits) ....................

29,564
24,191
41,845
22,634
19,211
46,516
25,576
20,940

34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715

36,146
29,289
52,028
28,487
23,541
56,437
31,048
25,839

35,413
29,427
52,083
28,379
23,704
56,393
30,732
25,661

35,724
29,823
52,970
28,848
24,122
56,583
30,761
25,822

36,151
30,129
53,545
29,129
24,416
57,255
31,097
26,158

35,537
29,526
53,533
29,020
24,513
55,739
30,366
25,373

35,670
29,749
56,267
30,613
25,654
55,797
30,399
25,398

35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702

35,228
29,278
52,089
28,053
24,036
55,447
30.040
25,407

35,425
29.432
51,626
27,783
23,843
55,790
32,256
25,534

36,091
29,587
51,337
27,685
23,652
56,743
30,948
25,795

For notes see bottom of page A30.




A30
1.39

Domestic Financial Statistics □ May 1980
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
year

year

1977

Type of account or operation

Fiscal
year

1978

1979

1979

1978
H2

HI

1980
H2

Jan.

Feb.

Mar.

U.S. budget
1 Receipts^ ...................................................
2 Outlays1 .....................................................
3 Surplus, or deficit(-) ..............................
4
Trust funds ............................................
5
Federal funds2 ........................................

357,762
402,725
- 4 4 ,9 6 3
9,497
- 5 4 ,4 6 0

401,997
450,836
-4 8 ,8 3 9
12,693
-6 1 ,5 3 2

465,940
493,673
-2 7 ,7 3 3
18,335
- 4 6 ,0 6 9

206,275
238,186
-3 1 ,9 1 2
11,754
- 4 3 ,6 6 6

246,574
245,616
958
4,041
-4 ,9 9 9

233,952
263,044
-2 9 ,0 9 3
9,679
-3 8 ,7 7 3

43,429
47,988
-4 ,5 5 9
-5 ,0 9 0
531

37,862
47,208
-9 ,3 4 6
3,398
-1 2 ,7 4 5

33,351
46,566
- 1 3 ,2 1 5
- 1 ,5 9 0
- 1 1 ,6 2 5

- 8 ,4 1 5
-2 6 9

-1 0 ,6 6 1
334

-1 3 ,2 6 1
832

-5 ,0 8 2
1,843

- 7 ,7 1 2
-447

-5 ,9 0 9
805

-7 1 4
103

-8 1 9
-294

- 2 ,0 1 6
-1 1 8

-5 3 ,6 4 7

-5 9 ,1 6 6

-4 0 ,1 6 2

-3 5 ,1 5 1

-7 ,2 0 1

- 3 4 ,1 9 7

- 5 ,1 7 0

-1 0 ,4 5 9

-1 5 ,3 4 9

53,516

59,106

33,641

30,314

6,039

31,320

-5 5 5

2,066

11,802

-2 ,2 4 7
2,378

- 3 ,0 2 3
3,083

-408
6,929

3,381
1,456

- 8 ,8 7 8
10,040

3,059
-1 8 2

6,403
-6 7 8

6,007
2,386

3,231
315

19,104
15,740
3,364

22,444
16,647
5,797

24,176
6,489
17,687

16,291
4,196
12,095

17,485
3,290
14,195

15,924
4,075
11,849

16,602
2,931
13,671

10,688
2,417
8,271

8,154
2,334
5,820

Off-budget entities (surplus, or deficit
6 Federal Financing Bank outlays .............
7 Other3 .......................................................

U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - ) .............................

Source or financing
9
Borrowing from the public...................
10
Cash and monetary assets (decrease, or
increase ( - ) ) 4 ................................
11
Other5 ...................................................
M em o:

12 Treasury operating balance (level, end of
13
14

period) ...............................................
Federal Reserve B an k s.........................
Tax and loan accounts ................................

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual’s tax liability, formerly treated as income tax refunds, are classified as
outlays retroactive to January 1976.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Includes Pension Benefit Guaranty Corporation; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund; and Rural Telephone Bank.
4. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.

5. Includes accrued interest payable to the public; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seignorage; increment
on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for
IMF valuation adjustment; 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 of the United States Government,
Fiscal Year 1981.

NOTES TO TABLE 1.38
1. Holdings of stock of the Federal Home Loan Banks are included in “other
assets.”
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies. Prior
to that date, this item was included in “Corporate and other.”
6. Includes securities of foreign governments and international organizations
and, prior to April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guar­
anteed, which are shown in the table under “Business” securities.




10. Issues of foreign governments and their subdivisions and bonds of the In­
ternational Bank for Reconstruction and Development.
N o t e . Savings and loan associations: Estimates by the FHLBB for all associa­
tions in the United States. Data are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differ­
ences between market and book values are not made on each item separately but
are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.

Federal Finance
1.40

A31

U .S. B U D G E T RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type

Fiscal
year
1977

Fiscal
year
1978

Fiscal
year
1979

1979

1978

1980

H2

HI

H2

Feb.

Jan.

Mar.

R eceipts
1 All sources1 ................................................

357,762

401,997

465,940

206,275

246,574

233,952

43,429

37,862

33,351

2 Individual income taxes, net ...................
3 Withheld ................................................
4 Presidential Election Campaign Fund .
5 Nonwithheld ..........................................
6 Refunds1 ................................................
Corporation income taxes
7 Gross receipts ........................................
8 Refunds .................................................
9 Social insurance taxes and contributions,
n e t .......................................................
10 Payroll employment taxes and
contributions2 ................................
11 Self-employment taxes and
contributions3 ................................
12 Unemployment insurance .....................
13 Other net receipts4 ................................

157,626
144,820
37
42,062
29,293

180,988
165,215
39
47,804
32,070

217,841
195,295
36
56,215
33,705

98,854
90,148
3
10,777
2,075

111,603
98,683
32
44,116
31,228

115,488
105,764
3
12,355
2,634

26,856
17,821
0
9,061
26

15,522
19,466
7
1,230
5,181

9,056
18,077
9
2,998
12,027

60,057
5,164

65,380
5,428

71,448
5,771

28,536
2,757

42,427
2,889

29,169
3,306

2,702
465

2,117
697

10,255
747

108,683

123,410

141,591

61,064

75,609

71,031

10,775

16,857

11,499

88,196

99,626

115,041

51,052

59,298

60,562

9,085

14,447

10,346

4,014
11,312
5,162

4,267
13,850
5,668

5,034
15,387
6,130

369
6,727
2,917

4,616
8,623
3,072

417
6,899
3,149

441
675
574

377
1,490
543

401
208
544

17,548
5,150
7,327
6,536

18,376
6,573
5,285
7,413

18,745
7,439
5,411
9,237

9,879
3,748
2,691
4,260

8,984
3,682
2,657
4,501

9,675
3,741
2,900
5,254

1,448
611
509
992

1,378
519
506
1,661

1,289
584
494
920

14
15
16
17

Excise ta x e s ...............................................
Customs deposits ......................................
Estate and gift taxes ................................
Miscellaneous receipts5 .............................
Outlays

402,725

450,836

493,673

238,186

245,616

263,044

47,988

47,208

46,566

National defense........................................
International affairs ..................................
General science, space, and technology ..
Energy .......................................................
Natural resources and environment........
Agriculture ................................................

97,501
4,813
4,677
4,172
10,000
5,532

105,186
5,922
4,,742
5,861
10,925
7,731

117,681
6,091
5,041
6,856
12,091
6,238

55,124
2,060
2,383
4,279
6,020
4,967

57,643
3,538
2,461
4,417
5,672
3,020

62,002
4,617
3,299
3,281
7,350
1,709

11,195
859
528
439
1,167
1,432

11,174
885
545
471
961
163

11,742
1,048
526
311
970
340

Commerce and housing c re d it.................
Transportation ..........................................
Community and regional development . ..
Education, training, employment, social
services ................................................
29 Health .......................................................
30 Income security1 ........................................

-4 4
14,636
6,348

3,324
15,445
11,039

2,565
17,459
9,482

3,292
8,740
5,844

60
7,688
4,499

3,,002
10,298
4,855

676
1,914
1,304

-122
1,278
868

579
1,469
611

20,985
38,785
137,915

26,463
43,676
146,212

29,685
49,614
160,198

14,247
23,830
73,127

14,467
24,860
81,173

14,579
26,492
86,007

3,088
4,980
15,150

2,915
4,562
15,937

2,727
4,745
15,792

18,038
3,600
3,312
9,499
38,009
-15,053

18,974
3,802
3,737
9,601
43,966
-15,772

19,928
4,153
4,153
8,372
52,556
-18,489

9,532
1,989
2,304
4,610
24,036
-8,199

10,127
2,096
2,291
3,890
26,934
-8,999

10,113
2,174
2,103
4,286
29,045
-12,164

803
400
384
1,798
3,037
-1,166

2,775
347
394
51
4,950
-945

746
367
616
61
4,630
-714

18 All types1 ...................................................
19
20
21
22
23
24
25
26
27
28

31
32
33
34
35
36

Veterans benefits and services.................
Administration of justice .........................
General government ................................
General-purpose fiscal assistance ...........
Interest6 .....................................................
Undistributed offsetting receipts6 7 .........

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual’s tax liability, formerly treated as income tax refunds, are classified as
outlays retroactive to January 1976.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal employee retirement
contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­
ceipts.




6. Effective September 1976, “Interest” and “Undistributed offsetting receipts”
reflect the accounting conversion for the interest on special issues for U.S. gov­
ernment 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.
S o u r c e . “Monthly Treasury Statement of Receipts and Outlays of the
Government” and the Budget o f the U.S. Government, Fiscal Year 1981.

U .S .

A32
1.41

Domestic Financial Statistics □ May 1980
FED ER A L D EBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977

1978

1979

Item
Sept. 30

Dec. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31.

1 Federal debt outstanding.................................................

709.1

729.2

758.8

780.4

797.7

804.6

812.2

833.8

852.2

2 Public debt securities...........................................................
3
Held by p u b lic.................................................................
4 Held by agencies .............................................................

698.8
543.4
155.5

718.9
564.1
154.8

749.0
587.9
161.1

771.5
603.6
168.0

789.2
619.2
170.0

796.8
630.5
166.3

804.9
626.4
178.5

826.5
638.8
187.7

845.1
658.0
187.1

5 Agency securities .................................................................
6
Held by p u b lic.................................................................
7 Held by agencies .............................................................

10.3
8.5
1.8

10.2
8.4
1.8

9.8
8.0
1.8

8.9
7.4
1.5

8.5
7.0
1.5

7.8
6.3
1.5

7.3
5.9
1.5

7.2
5.8
1.5

7.1
5.6
1.5

8 Debt subject to statutory lim it........................................

700.0

720.1

750.2

772.7

790.3

797.9

806.0

827.6

846.2

9 Public debt securities...........................................................
10 Other debt1 ...........................................................................

698.2
1.7

718.3
1.7

748.4
1.8

770.9
1.8

788.6
1.7

796.2
1.7

804.3
1.7

825.9
1.7

844.5
‘ 1.7

11 M e m o . Statutory debt limit ...............................................

700.0

752.0

752.0

798.0

798.0

798.0

830.0

830.0

879.0

1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.

1.42

GROSS PUBLIC D EBT OF U .S. TREA SUR Y

N ote.

Data from Treasury Bulletin ( U .S . Treasury Department),

Types and Ownership

Billions of dollars, end of period
1979
Type and holder

1975

1976

1977

1980

1978
Nov.

Dec.

Jan.

Feb.

Mar.

1 Total gross public d e b t...................................................

576.6

653.5

718.9

789.2

833.8

845.1

847.7

854.6

863.5

By type
Interest-bearing debt ...........................................................
Marketable ...........................................................................
Bills ...................................................................................
Notes .................................................................................
Bonds .................................................................................
Nonmarketable1 ...................................................................
Convertible bonds2 .........................................................
State and local government se r ie s................................
Foreign issues3 .................................................................
Government .................................................................
Public .............................................................................
Savings bonds and n o te s .................................................
Government account series4 ...........................................

575.7
363.2
157.5
167.1
38.6
212.5
2.3
1.2
21.6
21.6
0
67.9
119.4

652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
22.3
0
72.3
129.7

715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
22.2
0
77.0
139.8

782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5

832.7
519.6
165.1
279.7
74.8
313.2
2.2
24.5
29.2
23.9
5.3
80.0
177.0

844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5

846.5
535.7
175.5
284.0
76.1
310.9
2.2
24.8
30.0
23.6
6.4
78.6
174.9

853.4
540.6
177.4
286.8
76.4
312.7
2.2
24.5
29.6
23.2
6.4
77.7
178.4

862.2
557.5
190.8
290.4
76.3
304.7
2.2
23.9
26.9
20.5
6.4
76.0
175.5

15 Non-interest-bearing d e b t ...................................................

1.0

1.1

3.7

6.8

1.1

1.2

1.2

1.2

1.2

By holder5
U.S. government agencies and trust fu n d s ....................
Federal Reserve B a n k s.......................................................
Private investors...................................................................
Commercial banks ...............................................................
Mutual savings banks .........................................................
Insurance companies ...........................................................
Other companies .................................................................
State and local governments .............................................

139.1
89.8
349.4
85.1
4.5
9.5
20.2
34.2

147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6

154.8
102.5
461.3
101.4
5.9
15.1
22.7
55.2

170.0
109.6
508.6
93.4
5.2
15.0
20.6
68.6

187.1
118.1
528.6
95.0
4.3
14.4
24.0
68.2

187.1
117.5
540.5
97.0
4.2
14.4
23.9
68.2

184.5
116.3
546.9
97.1
4.0
14.4
24.5
71.7

189.3
115.2
551.6
97.8
4.0
14.3
23.6
72.1

Individuals
24 Savings b o n d s ...................................................................
25
Other securities ...............................................................
26 Foreign and international6 .................................................
27 Other miscellaneous investors7 ........................................

67.3
24.0
66.5
38.0

72.0
28.8
78.1
38.9

76.7
28.6
109.6
46.1

80.7
30.0
137.8
57.4

80.1
33.7
120.6
88.3

79.9
34.2
123.8
94.8

78.6
34.7
125.1
96.9

77.6
36.7
124.8
100.5

2
3
4
5
6

7
8
9
10
11
12
13
14

16

17
18
19
20
21
22
23

1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depositary bonds, retirement plan bonds, and individual retire­
ment bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner’s option for 1Vi percent, 5-year mar­
ketable Treasury notes. Convertible bonds that have been so exchanged are re­
moved from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




n. a.

6. Consists of the investments of foreign balances and international accounts in
the United States. Beginning with July 1974, the figures exclude non-interestbearing notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pen­
sion trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
N o t e . Gross public debt excludes guaranteed agency securities and, beginning
in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.

Federal Finance
1.43

U.S. GOVERNM ENT M ARKETABLE SECURITIES

A33

Ownership, by maturity

Par value; m illions of dollars, end of period
1980
Type of holder

1978

1980

1979

1978
Jan.

1979

Feb.

Jan.

All maturities

Feb.

1 to 5 years

1 All h old ers.............................................................................................

487,546

530,731

535,658

540,636

162,886

164,198

165,535

168,993

2 U.S. government agencies and trust fu n d s....................................
3 Federal Reserve B a n k s.......................................................................

12,695
109,616

11,047
117,458

11,048
116,311

10,818
115,169

3,310
31,283

2,555
28,469

2,518
27,885

2,281
29,268

4 Private investors...................................................................................

365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288

402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072

408,300
69,136
3,027
11,461
8,690
3,124
17,681
295,181

414,649
69,667
3,812
11,383
8,258
3,131
17,845
300,553

128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433

133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546

135,132
38,561
1,641
4,422
3,030
1,789
4,095
81,594

137,444
39,612
1,974
4,249
2,471
1,745
4,060
83,332

5
6

7
8
9
10
11

Commercial banks ...........................................................................
Mutual savings banks .....................................................................
Insurance companies .......................................................................
Nonfinancial corporations .............................................................
Savings and loan associations .......................................................
State and local governments .........................................................
All others .........................................................................................

Total, within 1 year

5 to 10 years

12 All holders.............................................................................................

228,516

255,252

257,400

258,053

50,400

50,440

50,437

51,132

13 U.S. government agencies and trust fu n d s....................................
14 Federal Reserve B a n k s.......................................................................

1,488
52,801

1,629
63,219

1,668
62,903

1,381
60,978

1,989
14,809

871
12,977

871
12,774

1,650
11,890

15 Private investors...................................................................................
16 Commercial banks ...........................................................................
17 Mutual savings banks .....................................................................
18 Insurance companies .......................................................................
19 Nonfinancial corporations .............................................................
20
Savings and loan associations .......................................................
21
State and local governments .........................................................
22
All others .........................................................................................

174,227
20,608
817
1,838
4,048
1,414
8,194
137,309

190,403
20,171
836
2,016
4,933
1,301
5,607
155,539

192,829
20,249
672
1,971
4,541
1,184
6,568
157,643

195,694
19,939
1,008
1,930
4,503
1,235
6,712
160,367

33,601
7,490
496
2,899
369
89
1,588
20,671

36,592
8,086
459
2,815
308
69
1,540
23,314

36,793
7,775
462
2,847
309
73
1,695
23,631

37,593
7,333
567
3,117
326
92
1,878
24,280

Bills, within 1 year
23 All holders.............................................................................................

161,747

172,644

24 U.S. government agencies and trust fu n d s ....................................
25 Federal Reserve B a n k s.......................................................................

2
42,397

0
45,337

26 Private investors...................................................................................
27
Commercial banks ...........................................................................
28 Mutual savings banks .....................................................................
29
Insurance companies .......................................................................
30 Nonfinancial corporations .............................................................
31
Savings and loan associations .......................................................
32
State and local governments .........................................................
33
All others .........................................................................................

119,348
5,707
150
753
1,792
262
5,524
105,161

127,306
5,938
262
473
2,793
219
3,100
114,522

175,522

10 to 20 years

177,422

19,800

27,588

29,032

29,328

45,264

43,618

3,876
2,088

4,520
3,272

4,520
3,265

3,773
3,761

130,258
6,461
136
465
2,504
234
3,726
116,732

133,803
6,054
138
472
2,534
251
4,184
120,171

13,836
956
143
1,460
86
60
1,420
9,711

19,796
993
127
1,305
218
58
1,762
15,332

21,247
1,238
125
1,299
327
58
1,803
16,397

21,794
1,348
180
1,193
439
45
2,007
16,582

Other, within 1 year

Over 20 years

34 All holders.............................................................................................

66,769

82,608

81,878

80,631

25,944

33,254

33,254

33,130

35 U.S. government agencies and trust fu n d s ....................................
36 Federal Reserve B a n k s.......................................................................

1,487
10,404

1,629
17,882

1,668
17,640

1,381
17,360

2,031
8,635

1,472
9,520

1,472
9,483

1,734
9,272

37 Private investors...................................................................................
38
Commercial banks ...........................................................................
39
Mutual savings banks .....................................................................
40
Insurance com panies.......................................................................
41
Nonfinancial corporations .............................................................
42
Savings and loan associations .......................................................
43 State and local governm ents.........................................................
44 All others .........................................................................................

54,879
14,901
667
1,084
2,256
1,152
2,670
32,149

63,097
14,233
574
1,543
2,140
1,081
2,508
41,017

62,571
13,788
536
1,505
2,037
950
2,842
40,912

61,891
13,885
869
1,459
1,969
985
2,528
40,196

15,278
1,446
126
774
135
17
3,616
9,164

22,262
1,470
113
842
130
19
3,339
16,340

22,299
1,313
126
924
482
19
3,520
15,915

22,124
1,434
83
893
520
14
3,188
15,993

N o te . Direct public issues only. Based on Treasury Survey of Ownership from

Treasury Bulletin (U.S. Treasury Department).

Data complete for U.S. government agencies and trust funds and Federal Re­
serve Banks, but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number and pro­
portion reporting as of Feb. 29, 1980; (1) 5,375 commercial banks,




460 mutual savings banks, and 724 insurance companies, each about 80 percent;
(2) 420 nonfinancial corporations and 482 savings and loan associations, each about
50 percent; and (3) 492 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
1.44

Domestic Financial Statistics □ May 1980
U .S. G OVERNM ENT SECURITIES DEALERS

Transactions

Par value; averages o f daily figu res, in m illions o f dollars
1979
Item

1977

1978

1980

1980, week ending Wednesday

1979
Dec.

1 U.S. government securities ........
1
By maturity
2 B ills ................................................
3 Other within 1 year ....................
4 1-5 years ......................................
5 5-10 years ....................................
6 Over 10 years ..............................

10,838
6,746
237
2,320
1,148
388

10,285
6,173
392
1,889
965
867'

Jan.

13,182

15,620

16,180

17,530

16,169

17,656

15,642

14,779

16,057

16,387

7,914
455
2,416
1,121
1,276

10,527'
591
2,380
1,159
963

10,519
488
2,694
990
1,488

9,726
356
3,680
2,014
1,754

12,194
845
1,968
542
619

11,548
601
2,655
939
1,913

10,050
460
2,554
1,063
1,575

9,360
330
2,413
1,127
1,548

10,382
461
3,158
883
1,173

10,500
343
3,161
1,013
1,370

Feb.

Jan. 2

Jan. 9

Jan. 16

Jan. 23

Jan. 30

Feb. 6

By type of customer
7 U.S. government securities
dealers ..................................
8 U.S. government securities
brokers ..................................
9 Commercial banks ......................
10 All others1 ....................................

1,268r

1,135

1,448

1,905

1,720

1,364

2,817

1,810

1,842

1,589

1,695

1,604

3,709
2,294'
3,567'

3,838
1,804
3,508

5,171
1,905
4,658

5,384
2,026'
6,306

6,700
2,026
5,734

7,409
2,243
6,502

3,981
2,128
7,243

7,001
2,600
6,244

6,620
1,827
5,352

6,639
1,731
4,820

6,508
1,867
5,988

7,016
2,070
5,647

11 Federal agency securities...........

1,734'

1,895'

2,724

3,068

2,838'

3,051

2,252

2,540

3,016

2,925

2,594

3,244

1. Includes, among others, all other dealers and brokers in commodities and
securities, foreign banking agencies, and the Federal Reserve System.
N o t e . A v e ra g es for tr ansactions are b ased on num ber o f trading days in the
p eriod .

1.45

U .S. G OVERNM ENT SECURITIES DEALERS

Transactions are market purchases and sales of U.S. government securities deal­
ers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured securities, or purchases or sales of securities under repurchase,
reverse repurchase (resale), or similar contracts.

Positions and Sources of Financing

Par value; averages o f daily figures, in m illions o f dollars
1979
Item

1977

1979 and 1980, week ending Wednesday

1978
Dec.

Jan.

Feb.

Dec. 12

Dec. 19

Dec. 26

Jan. 2

Jan. 9

Jan. 16

Positions1

1 U.S. government securities

5,172

2,656

3,223

3,888

3,443

2,734

5,151

3,507

4,411

1,069

2,418

3,456

2
3
4
5
6

B ills ......................................
Other within 1 y e a r ........
1-5 years ..........................
5-10 years ..........................
Over 10 years ....................

4,772
99
60
92
149

2,452
260
-9 2
40
-4

3,813
-325
-455
160
30

5,789
-1,548
-6 7 9
385
-5 9

4,386
-1,094
-3 0 5
123
333

2,941
-7 9 0
28
327
227

7,564
-1,683
-1,128
441
-4 4

6,084
-1,719
-1,258
409

-1 0

5,444
-1,513
288
288
-9 6

2,347
-1,335
-1 1 7
255
-8 1

3,197
-1,087
-311
253
366

4,332
-1,105
-4 5 2
196
485

7 Federal agency securities .

693

606

1,471

1,309

998

236

1,236

1,150

1,502

1,423

1,016

1,122

Finaricing2

9
10
11
12

Commercial banks
New York C it y ............
Outside New York City
Corporations3 ..................
All o th ers..........................

20,890

10,204

8 All sources .......................
1,313
1,987
2,358'
4,155

599
2,174
2,379
5,052

1,395
2,868

3,373
4,104

16,097

15,997

21,426

22,186

20,678

17,263

14,581

16,406

1,638
3,707
4,498
11,048

3,878
3,672
7,678

749
3,661
3,731
7,856

1,667
3,982
5,237
10,540

1,407
3,862
4,777
12,140

2,264
3,403
3,810
5,534

977
3,347
3,208
5,407

380
3,479
3,915
6,807

1,120
3,673
3,757
7,856

1. New amounts (in terms of par values) of securities owned by nonbank dealer
firms and dealer departments of commercial banks on a commitment, that is,
trade-date basis, including any such securities that have been sold under agree­
ments to repurchase. The maturities of some repurchase agreements are sufficiently
long, however, to suggest that the securities involved are not available for trading
purposes. Securities owned, and hence dealer positions, do not include securities
purchased under agreement to resell.
2. Total amounts outstanding of funds borrowed by nonbank dealer firms and
dealer departments of commercial banks against U.S. government and federal




agency securities (through both collateral loans and sales under agreements to
repurchase), plus internal funds used by bank dealer departments to finance po­
sitions in such securities. Borrowings against securities held under agreeement to
resell are excluded when the borrowing contract and the agreement to resell are
equal in amount and maturity, that is, a matched agreement.
3. All business corporations except commercial banks and insurance companies.
N o t e . Averages for positions are based on number of trading days in the period;
those for financing, on the number of calendar days in the period.

Federal Finance
1.46

A35

FED ER A L A N D FEDERA LLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1979

Agency

1976

1977

1980

1978

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

1 Federal and federally sponsored agencies1 .........................

103,848

112,472

137,063

154,753

158,298

161,653

163,290

165,819

167,813

2 Federal agencies...............................................................

22,419
1,113
8,574
575

22,760
983
8,671
581

23,488
968
8,711
588

24,341
767
8,886
551

24,151
757
8,881
547

24,224
748
8,812
545

24,715
738
9,191
537

24,883
729
9,176
539

25,013
719
9,144
546

4,120
2,998
4,935
104

3,743
2,431
6,015
336

3,141
2,364
7,460
356

3,004
1,837
8,850
446

3,004
1,837
8,670
455

3,004
1,837
8,825
453

2,979
1,837
8,997
436

2,979
1,837
9,182
441

2,979
1,837
9,347
441

81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2

89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2

113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2

130,412
30,303
2,622
46,378
17,075
2,676
785
29,297
1,275
1

134,147
31,874
2,621
46,861
16,006
2,676
584
32,189
1,335
1

137,429
33,296
2,621
47,278
16,006
2,676
584
33,547
1,420
1

138,575
33,330
2,771
48,486
16,006
2,676
584
33,216
1,505
1

140,936
33,122
2,769
49,031
15,106
2,144
584
36,584
1,595
1

142,800
33,102
2,764
50,139
15,106
2,144
584
37,240
1,720
1

28,711

38,580

51,298

64,211

65,583

66,281

67,383

68,294

69,268

Export-Import Bank4 ...............................................................
Postal Service7 .............................................................................
Student Loan Marketing Association8 ...............................
Tennessee Valley A uthority ....................................................
United States Railway Association7 ....................................

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,898
2,114
915
5,635
356

7,953
1,587
1,275
7,125
446

7,953
1,587
1,335
6,945
455

7,953
1,587
1,420
7,100
453

8,353
1,587
1,505
7,272
436

8,353
1,587
1,595
7,457
441

8,353
1,587
1,720
7,622
441

Other Lending10
26 Farmers Home Administration .............................................
27 Rural Electrification Administration ..................................
28 Other ................................................................................

10,750
1,415
4,966

16,095
2,647
6,782

23,825
4,604
6,951

31,080
5,926
8,202

31,670
6,157
9,481

31,950
6,272
9,546

32,050
6,484
9,696

32,145
6,701
10,015

32,565
6,874
10,106

3
4
5
6

7
8
9

Defense Department2 .................................................
Export-Import Bank3 4 ...............................................
Federal Housing Administration5 ....................................
Government National Mortgage Association
participation certificates6 ...........................................
Postal Service7 ........................................................................
Tennessee Valley A uthority........................................
United States Railway Association7 ..........................

10 Federally sponsored agencies1 ........................................
11
Federal Home Loan Banks ........................................
12
Federal Home Loan Mortgage Corporation ................
13
Federal National Mortgage Association .........................
14
Federal Land Banks .............................................................
15
Federal Intermediate Credit Banks ...........................
16
Banks for Cooperatives ..............................................
17
Farm Credit Banks1 .....................................................
18
Student Loan Marketing Association8 ...........................
19
Other ..........................................................................................
M em o :

20 Federal Financing Bank debt7’9 .............................................

Lending to federal and federally sponsored agencies
21
22
23
24
25

1. In September 1977 the Farm Credit Banks issued their first consolidated
bonds, and in January 1979 they began issuing these bonds on a regular basis to
replace the financing activities of the Federal Land Banks, the Federal Interme­
diate Credit Banks, and the Banks for Cooperatives. Line 17 represents those
consolidated bonds outstanding, as well as any discount notes that have been
issued. Lines 1 and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the se­
curities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Admin­
istration; Department of Health, Education, and Welfare; Department




of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing As­
sociation may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included
in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any par­
ticular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration
entry contains both agency assets and guaranteed loans.

A36

Domestic Financial Statistics □ May 1980

1.47

NEW SECURITY ISSUES of State and Local Governments
M illions o f dollars
1979

Type of issue or issuer.

1977

1980

1979

1978

Sept.

Oct.

Nov.

Dec.

Jan.P

Feb.P

46,769

48,607

43,490

2,479

4,229

4,172

3,583

3,013

2,350

18,042
28,655

17,854
30,658

12,109
31,256

699
1,773

1,037
3,180

805
3,355

855
2,712

1,151
1,856

987
1,353

72

95

125

7

12

12

16

6

10

Type of issuer
6 State ...................................................................................................
7 Special district and statutory authority ......................................
8 Municipalities, counties, townships, school districts................

6,354
21,717
18,623

6,632
24,156
17,718

4,314
23,434
15,617

113
1,404
955

294
2,749
1,174

274
2,697
1,189

569
2,102
896

699
1,379
929

327
1,202
811

9 Issues for new capital, to ta l.......................................................

36,189

37,629

41,505

2,436

4,171

3,702

3,186

3,000

2,340

Use of proceeds
Education .........................................................................................
Transportation .................................................................................
Utilities and conservation...............................................................
Social welfare ...................................................................................
Industrial aid ...................................................................................
Other purposes.................................................................................

5,076
2,951
8,119
8,274
4,676
7,093

5,003
3,460
9,026
10,494
3,526
6,120

5,130
2,441
8,594
15,968
3,836
5,536

218
38
336
1,082
382
380

311
562
1,426
1,191
427
254

298
97
515
2,042
369
381

408
214
409
1,724
157
274

220
172
547
1,285
51
725

366
176
326
1,050
68
354

1 All issues, new and refunding1 ...................................................
2
3

4
5

10
11
12
13
14
15

Type of issue
General obligation...........................................................................
Revenue ...........................................................................................
Housing Assistance Administration2 ..........................................
U.S. government lo a n s ...................................................................

1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by
contract requiring the Housing Assistance Administration to make annual contri­
butions to tne local authority.

1.48

So u r c e .

Public Securities Association

NEW SECURITY ISSUES of Corporations
M illions o f dollars

Type of issue or issuer,
or use

1979
1977

1978

1980

1979
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

1 All issues1 ................................................................

53,792

47,230

51,102

4,095

4,083

4,308

4,561

3,834

3,774

5,740

2 Bonds ........................................................................

42,015

36,872

39,690

3,114

2,859

3,021

3,532

2,589

2,441

4,397

4 Private placement .......................................................

24,072
17,943

19,815
17,057

25,815
13,877

2,247
867

1,973
886

2,167
854

2,669
863

1,583
1,006

1,500
941

2,450
1,947

Industry group
Manufacturing .............................................................
Commercial and miscellaneous ................................
Transportation .............................................................
Public utility .................................................................
Communication ...........................................................
Real estate and financial.............................................

12,204
6,234
1,996
8,262
3,063
10,258

9,572
5,246
2,007
7,092
3,373
9,586

9,590
3,939
3,054
8,058
4,198
10,853

968
241
380
174
26
1,325

806
413
171
137
336
996

1,095
361
175
620
418
353

1,334
214
296
1,107
433
147

322
207
257
663
854
287

265
455
187
743
55
737

774
503
313
1,338
483
987

11 Stocks ........................................................................

11,777

10,358

11,410

981

1,224

1,287

1,029

1,245

1,333

1,343

Type
12 Preferred .......................................................................
13 Common .......................................................................

3,916
7,861

2,832
7,526

3,650
7,760

392
589

401
823

698
589

195
834

465
780

289
1,044

290
1,053

Industry group
Manufacturing .............................................................
Commercial and miscellaneous ................................
Transportation .............................................................
Public utility .................................................................
Communication ...........................................................
Real estate and financial.............................................

1,189
1,834
456
5,865
1,379
1,049

1,241
1,816
263
5,140
264
1,631

1,686
2,623
255
5,218
303
1,324

38
173

360
266
142
366

394
218
4
527
83
61

151
98

158
286
2
607
2
190

231
430

324
313
59
506

Type of offering
3 Public .............................................................................

5
6
7
8
9
10

14
15
16
17
18
19

1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of




598
68
103

91

662
47
70

365
1
306

140

1933, employee stock plans, investment companies other than closed-end, intra­
corporate transactions, and sales to foreigners,
So u r c e .

Securities and Exchange Commission.

Corporate Finance
1.49

OPEN-END INVESTMENT COMPANIES

A37

Net Sales and Asset Position

M illions o f dollars
1979
Item

1978

1980

1979
Sept.

Nov.

Oct.

Dec.

Jan/

Feb.

Mar.

I n v e st m e n t C o m p a n ie s 1

1 Sales of own shares2 ...........................................................
2 Redemptions of own shares3 ............................................
3 Net sales ...............................................................................

6,645
7,231
-5 8 6

7,495
8,393
-8 9 8

580
784
-2 0 4

617
805
-1 8 8

690
579
111

4 Assets4 ...................................................................................
5
Cash position5 ...................................................................
6
Other .................................................................................

44,980
4,507
40,473

49,493
4,983
44,510

50,147
5,016
45,131

46,271
4,521
41,750

48,613
4,984
43,629

1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvest­
ment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to an­
other in the same group.
4. Market value at end of period, less current liabilities.

1.50

748
743
5
49,277r
4,983
44,294r

957
776
181

773
882
-1 0 9

723
892
-1 6 9

51,278
5,702
45,576

49,512
5,895
43,617

44,581
5,644
38,937

5.
Also includes all U.S. government securities and other short-term debt se­
curities.
N o t e . Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Se­
curities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.

CORPORATE PROFITS A N D THEIR DISTRIBUTION
B illion s o f dollars; quarterly data are at seasonally adjusted annual rates.
1978
Account

1977

1978

1979

1979
Q2

Q3

Q4

Q1

Q2

Q3

Q4

1 Profits before tax .....................................................

177.1

206.0

237.4

207.2

212.0

227.4

233.3

227.9

242.3

246.2

Profits tax liability.......................................................
Profits after tax ...........................................................
Dividends .................................................................
Undistributed profits ...............................................
Capital consumption allowances ..............................
Net cash flow ...............................................................

72.6
104.5
42.1
62.4
109.3
171.7

84.5
121.5
47.2
74.3
119.8
194.1

92.9
144.5
52.7
91.8
131.1
222.9

84.7
122.4
46.0
76.4
119.1
195.5

87.5
124.5
47.8
76.8
120.6
197.3

95.1
132.3
49.7
82.6
123.1
205.7

91.3
142.0
51.5
90.5
125.5
216.0

88.7
139.3
52.3
87.0
130.4
217.3

94.0
148.3
52.8
95.5
132.8
228.3

97.4
148.8
54.4
94.4
135.2
229.6

2

3
4
5
6

7

Source.

Survey of Current Business ( U .S . Department of Commerce).




A38
1.51

Domestic Financial Statistics □ May 1980
NONFINANCIAL CORPORATIONS

Current Assets and Liabilities

Billions of dollars, except for ratio
1978
Account

1975

1976

1979

1977
Q2

Q3

Q4

Ql

Q2

Q3

Q4

1 Current assets...........................................................

759.0

826.3

900.9

954.2

992.6

1,028.1

1,078.6

1,110.6

1,169.6

1,199.9

2 Cash ...............................................................................
3 U.S. government securities ......................................
4 Notes and accounts receivable..................................
5 Inventories ...................................................................
6 Other .............................................................................

82.1
19.0
272.1
315.9
69.9

87.3
23.6
293.3
342.9
79.2

94.3
18.7
325.0
375.6
87.3

91.3
17.3
356.0
399.3
90.3

91.7
16.1
376.4
415.5
92.9

103.7
17.8
381.9
428.3
96.3

102.4
19.2
405.3
452.6
99.1

100.1
20.8
419.0
469.2
101.5

103.6
17.8
448.9
492.7
106.7

116.2
17.8
451.7
503.9
110.3

7 Current liabilities .....................................................

451.6

492.7

546.8

593.5

626.0

661.9

701.6

723.9

773.7

803.7

8 Notes and accounts payable......................................
9 Other .............................................................................

264.2
187.4

282.0
210.6

313.7
233.1

338.0
255.6

356.2
269.7

375.1
286.8

392.6
309.0

410.8
313.2

443.1
330.6

460.8
342.8

10 Net working capital .................................................

307.4

333.6

354.1

360.6

366.6

366.2

377.0

386.7

395.9

396.3

11 M e m o : Current ratio 1 ...............................................

1.681

1.677

1.648

1.608

1.586

1.553

1.537

1.534

1.512

1.493

1. Ratio of total current assets to total current liabilities.

All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.

For a description of this series, see “Working Capital of Nonfinancial
Corporations” in the July 1978 B ulletin , pp. 533-37.
N ote:

Source.

1.52

Federal Trade Commission.

BUSINESS EXPEND ITUR ES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1978
Industry

1978

1979

1980

1979
Q3

04

Ql

Q2

Q3

Q4

Q l2

Q22

1 All industries.............................................................

153.82

177.09

155.41

163.96

165.94

173.48

179.33

186.95

189.49

193.83

Manufacturing
2 Durable goods industries ...........................................
3 Nondurable goods industries ....................................

31.66
35.96

38.23
40.69

32.25
35.50

33.99
39.26

34.00
37.56

36.86
39.56

39.72
40.50

41.30
43.88

42.60
43.21

44.63
44.38

4.78

5.56

4.99

4.98

5.46

5.31

5.42

6.06

6.49

5.97

3.32
2.30
2.43

3.93
3.24
2.95

3.38
2.20
2.47

3.49
2.39
2.55

4.02
3.35
2.71

3.66
3.26
2.79

4.03
3.10
3.16

4.20
3.39
3.15

4.08
4.50
3.42

4.08
3.86
3.64

29.48
4.70
18.16
25.71

32.56
5.07
20.56
29.35

24.92
4.70
18.90
26,09

26.95
4.78
18.46
27.12

27.70
4.66
18.75
27.73

28.06
5.18
20.29
28.51

28.32
5.01
20.41
29.66

26.02
5.50
22.71
30.72

27.94
5.28
51.97

27.96
5.61
53.71

Nonmanufacturing

4 Mining ...........................................................................
5
6

7
8
9
10
11

Transportation
Railroad .....................................................................
Air .............................................................................
Other .........................................................................
Public utilities
E lectric.......................................................................
Gas and o th e r ...........................................................
Communication ...........................................................
Commercial and other1 ...............................................

1. Includes trade, service, construction, finance, and insurance.
2. Anticipated by business.
N ote.

Estimates for corporate and noncorporate business, excluding agricul-




ture; real estate operators; medical, legal, educational, and cultural service; and
nonprofit organizations.
So u r c e.

Survey o f Current Business (U .S . Dept, of Commerce).

Corporate Finance
1.53

DOM ESTIC FINANCE COM PANIES

A39

Assets and Liabilities

Billions of dollars, end of period
1979
1973

Account

1974

1975

1976

1977

1978
Ql

Q2

Q3

Q4

A ssets
A ccounts receivable, gross
Consumer .............................................................................
Business .................................................................................
Total ...................................................................................
L ess : Reserves for unearned income and losses . . .
Accounts receivable, n e t ..................................................
Cash and bank deposits ..................................................
Securities ...............................................................................
All other ...............................................................................

35.4
32.3
67.7
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

44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3

52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3

54.9
66.7
121.6
16.5
105.1

9 Total assets ...............................................................

73.2

79.6

81.6

89.2

104.3

122.4

10 Bank loans ..........................................................................
11 Commercial paper .............................................................

7.2
19.7

9.7
20.7

8.0
22.2

6.3
23.7

5.9
29.6

Debt
12 Short-term, n .e .c ..............................................................
13
Long-term n .e .c ...............................................................
14
Other .................................................................................

4.6
24.6
5.6

4.9
26.5
5.5

4.5
27.6
6.8

5.4
32.3
8.1

6.2
36.0
11.5

1
2
3
4
5
6
7
8

111.1

62.3
68.1
130.4
18.7
111.7

65.7
70.3
136.0
20.0
116.0

24.6

25.8

24.9

128.9

135.8

137.4

140.9

6.5
34.5

6.5
38.1

7.3
41.0

7.8
39.2

8.5
43.3

8.1
43.6
12.6

6.7
44.5
15.1

8.8
46.0
14.4

9.1
47.5
15.4

8.2
46.7
14.2

23.81

58.7
70.1
128.8
17.7

L iabilities

15 Capital, surplus, and undivided p r o f it s ....................

11.5

12.4

12.5

13.4

15.1

17.2

18.0

18.2

18.4

19.9

16 Total liabilities and capital ......................................

73.2

79.6

81.6

89.2

104.3

122.4

128.9

135.8

137.4

140.9

1. Beginning Q l 1979, asset items on lines 6, 7, and 8 are combined.
N ote. Components may not add to totals due to rounding.

1.54

DOM ESTIC FINANCE COM PANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding
Feb. 29,

Changes in accounts
receivable
1979

Extensions

1980

1979

Repayments

1980

1979

1980

19801

Dec.

Jan.

Feb.

Dec.

Jan.

Feb.

Dec.

Jan.

Feb.

1 Total ..................................................................

70,300

-561

-473

302

16,443

16,918

17,843

17,004

17,391

17,541

2 Retail automotive (commercial veh icles)........

15,030
13,141

-8 3
-7 6 3

-5 5
-849

24
-3 1 5

1,096
5,028

1,127
5,094

1,172
5,339

1,179
5,791

1,182
5,943

1,148
5,654

19,238

264

555

419

1,398

1,468

1,529

1,134

913

1,110

7,299
15,592

285
-2 6 4

180
-304

111
63

6,806
2,115

7,085
2,144

7,782
2,021

6,521
2,379

6,905
2,448

7,671
1,958

3 Wholesale automotive ........................................
4 Retail paper on business, industrial and

farm equipment ...........................................
5 Loans on commercial accounts receivable and

factored commercial accounts receivable .
6 All other business cr ed it....................................
1. Not seasonally adjusted.




A40
1.55

Domestic Financial Statistics □ May 1980
MORTGAGE MARKETS
M illions o f d o llars; e x c e p tio n s n o te d .
1980
Item

Terms and yields in primary and secondary markets
P r im a r y M a r k e t s

Conventional mortgages on new homes
Terms'
Purchase price (thousands of dollars)..........
Amount of loan (thousands of dollars)
Loan/price ratio (percent) ............................
Maturity (years) ...............................................
Fees and charges (percent of loan amount)2
Contract rate (percent per annu m )..............

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

76.4
54.9
73.7
28.5
1.70
10.91

77.1
55.4
73.8
28.5
1.82
11.04

79.4
56.0
72.9
28.8
1.85
11.30

11.48

Yield (percent per annum)
7 FHLBB series^ .................................................
8 HUD series4 .....................................................

8.99
8.99

9.01
8.95

9.54
9.68

11.21

12.15

11.37
12.50

11.64
12.50

11.87
12.80

11.93
14.10

12.62
16.05

8.82
8.17

8.68
8.04

9.70
8.98

n.a.
11.25

12.41
11.57

12.24
11.35

12.60
11.94

n.a.
13.16

14.63
13.79

8.99
9.11

8.73
8.98

9.77
10.01

12.52
12.85

12.75
13.66

12.48
12.98

12.90
13.20

14.48
14.12

15.64
16.62

1
2
3
4
5
6

76.9
54.4
73.0
28.1

2.11

79.8
56.6
72.5
28.8
1.79
11.60

77.7
55.1
72.0
27.4
1.98
12.25

Secondary M arkets

9
10
11
12

Yield (percent per annum)
FHA mortgages (HUD series)5 ....................
GNMA securities6 ...........................................
FNMA auctions7
Government-underwritten loans ..............
Conventional loans ....................................

Activity in secondary markets
F e d e r a l N a t io n a l M o r t g a g e A sso c ia tio n

Mortgage holdings (end of period)
13 T otal .................................................................................................
14
F H A -in su red ...........................................................................
15
V A -g u a r a n teed .......................................................................
16
C on ven tion al ...........................................................................

32,904
18,916
9,212
4,776

34,370
18,457
9,315
6,597

43,311
21,243
10,544
11,524

49,744
23,899
10,327
15,517

50,350
24,178
10,374
15,797

51,091
24,489
10,496
16,106

52,106
24,906
10,653
16,546

3,606
86

4,780
67

12,303
5

859
0

872
0

893
0

1,163
0

1,087'
0

1,063
0

6,247
3,398

9,729
4,698

18.960
9,201

2,369
7,472

496
6,974

402
6,409

508
5,671

999
5,504r

825
5,078

4,929.8
2.787.2

7.974.1
4.846.2

12,978
6.747.2

2.943.4
1.130.4

558.4
264.6

649.2
249.3

516.0
213.8

1,169.4
563.7

1,267.3
426.1

2,595.7
1.879.2

5.675.2
3.917.8

9,933.0
5.110.9

1.049.9
431.2

366.1
190.2

413.2
152.4

443.1
247.2

412.1
147.8

918.6
239.9

4,269
1,618
2,651

3,276
1,395
1,881

3,064
1,243
1,822

3,726
1,120
2,606

3,990
1,112
2,879

4,035
1,102
2,933

4,124
1,098
3,026

4,145
1,092
3,052

4,235
1,086
3,149

1,175
1,396

3,900
4,131

6,524
6,211

552
530

458
186

403
361

280
180

248
207

193
106

1,477

5,546
1,063

7,451
1,410

504
1,312

221
1,036

199
797

296
779

197
726

186
700

53,063
25,146
10,885
16,853

53,990
n .a .
n .a .

17,079

Mortgage transactions (during period)
17 Purchases .......................................................................................
18 S ales .................................................................................................

Mortgage commitments8
19 C on tracted (during p erio d ) .................................................
20 O utstanding (end o f p erio d ) ..............................................

Auction of 4-month commitments to buy
G overnm ent-u nd erw ritten loans
O ffe re d 9 .....................................................................................
A c c e p te d ...................................................................................
C on v en tio n a l loans
23
O ffe re d 9 .....................................................................................
24
A c cep te d ...................................................................................

21
22

F e d e r a l H om e L o a n M o r t g a g e C o r p o r a t io n

Mortgage holdings (end of period) 10
25 T otal .................................................................................................
26
F H A /V A ..................................................................................
27
C on ven tion al ...........................................................................

Mortgage transactions (during period)
28 Purchases .......................................................................................
29 S ales .................................................................................................

Mortgage commitments1
1
30 C on tracted (during p erio d ) .................................................
31 O utstan din g (end o f p erio d ) ..............................................

333

1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups. Compiled by the Federal Home Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and “points” paid (by the borrower
or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages,
rounded to the nearest 5 basis points; from Department of Housing and Urban
Development.
5. Average gross yields on 30-year, minimum-downpayment. Federal Housing
Administration-insured first mortgages for immediate delivery in the private sec­
ondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Associ­
ation guaranteed, m ortgage-backed, fully m odified pass-through




securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mort­
gages carrying the prevailing ceiling rate. Monthly figures are unweighted averages
of Monday quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association's auctions
of 4-month commitments to purchase home mortgages, assuming prepayment in
12 years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month.
8. Includes some multifamily and nonprofit hospital loan commitments in ad­
dition to 1- to 4-family loan commitments accepted in FNMA's free market auction
system, and through the FNMA-GNMA tandem plans.
9. Mortgage amounts offered by bidders are total bids received.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.

Real Estate Debt
1.56

A41

M ORTGAGE DEBT O UTSTANDING
Millions of dollars, end of period
1978
Type of holder, and type of property

1977

1978

1979

1979
04

Q2

Ql

Q3

Q4

1 AH holders........................................................................

1,023,505

1,172,754

l,334,373r

1,172,754

1,206,213

1,252,426

1,295,644

1,334,373"

2 1- to 4-family .......................................................................
3 Multifamily ...........................................................................
4 Commercial ...........................................................................
5

656,566
111,841
189,274
65,824

761,843
121,972
212,746
76,193

872,191r
130,758'
239,093'
92,331r

761,843
121,972
212,746
76,193

784,546
123,965
217,495
80,207

816,940
125,916
224,499
85,071

846,115
128,256
232,120
89,153

872,191'
130,758'
239,093'
92,331'

6 Major financial institutions ..............................................
Commercial banks1 .........................................................
8
1- to 4-family ...............................................................
9
Multifamily ...................................................................
10
Commercial ...................................................................
11
Farm ...............................................................................

745,011
178,979
105,115
9,215
56,898
7,751

848,095
213,963
126,966
10,912
67,056
9,029

940,268'
246,763
146,077
12,585
77,737
10,364

848,095
213,963
126,966
10,912
67,056
9,029

865,974
220,063
130,585
11,223
68,968
9,287

894,385
229,564
136,223
11,708
71,945
9,688

919,967
239,363
142,038
12,208
75,016
10,101

940,268
246,763
146,077
12,585
77,737
10,364

Mutual savings banks .....................................................
1- to 4-family ...............................................................
Multifamily ...................................................................
Commercial ...................................................................
Farm ...............................................................................

88,104
57,637
15,304
15,110
53

95,157
62,252
16,529
16,319
57

98,924
64,717
17,183
16,965
59

95,157
62,252
16,529
16,319
57

96,136
62,892
16,699
16,488
57

97,155
63,559
16,876
16,662
58

97,929
64,065
17,010
16,795
59

98,924
64,717
17,183
16,965
59

Savings and loan associations........................................
1- to 4-family ...............................................................
Multifamily ...................................................................
Commmercial ...............................................................

381,163
310,686
32,513
37,964

432,808
356,114
36,053
40,641

475,797
394,436
37,588
43,773

432,808
356,114
36,053
40,641

441,358
363,723
36,677
40,958

456,543
377,516
37,071
41,956

468,307
387,992
37,277
43,038

475,797
394,436
37,588
43,773

Life insurance companies ..............................................
1- to 4-family ...............................................................
Multifamily ...................................................................
Commercial ...................................................................
Farm ...............................................................................

96,765
14,727
18,807
54,388
8,843

106,167
14,436
19,000
62,232
10,499

118,784'
16,193'
19,274'
71,137'
12,180'

106,167
14,436
19,000
62,232
10,499

108,417
14,507
19,080
63,908
10,922

111,123
14,489
19,102
66,055
11,477

114,368
14,884
19,107
68,513
11,864

118,784'
16,193'
19,274'
71,137'
12,180'

26 Federal and related agen cies............................................
27 Government National Mortgage Association ............
1- to 4-family ...............................................................
28
Multifamily ...................................................................
29

70,006
3,660
1,548
2,112

81,853
3,509
877
2,632

97,293
3,852
763
3,089

81,853
3,509
877
2,632

86,689
3,448
821
2,627

90,095
3,425
800
2,625

93,143
3,382
780
2,602

97,293
3,852
763
3,089

7

12
13
14

15
16
17
18
19
20
21
22
23
24

25

30
31
32
33
34

Farmers Home Administration ....................................
1- to 4-family ...............................................................
Multifamily ...................................................................
Commercial ...................................................................
Farm ...............................................................................

1,353
626
275
149
303

926
288
320
101
217

1,274
417
71
174
612

926
288
320
101
217

956
302
180
283
191

1,200
363
75
278
484

1,383
163
299
262
659

1,274
417
71
174
612

35
36
37

Federal Housing and Veterans Administration ........
1- to 4-family ...............................................................
Multifamily ...................................................................

5,212
1,627
3,585

5,419
1,641
3,778

5,764
1,863
3,901

5,419
1,641
3,778

5,522
1,693
3,829

5,597
1,744
3,853

5,672
1,795
3,877

5,764
1,863
3,901

38
39
40

Federal National Mortgage A ssociation......................
1- to 4-family ...............................................................
Multifamily ...................................................................

34,369
28,504
5,865

43,311
37,579
5,732

51,091
45,488
5,603

43,311
37,579
5,732

46,410
40,702
5,708

48,206
42,543
5,663

49,173
43,534
5,639

51,091
45,488
5,603

41
42
43

Federal Land Banks .......................................................
1- to 4-family ...............................................................
Farm ...............................................................................

22,136
670
21,466

25,624
927
24,697

31,277
1,552
29,725

25,624
927
24,697

26,893
1,042
25,851

28,459
1,198
27,261

29,804
1,374
28,430

31,277
1,552
29,725

44

Federal Home Loan Mortgage Corporation..............
1- to 4-family ...............................................................
Multifamily ...................................................................

3,276
2,738
538

3,064
2,407
657

4,035
3,059
976

3,064
2,407
657

3,460
2,685
775

3,208
2,489
719

3,729
2,850
879

4,035
3,059
976

47 Mortgage pools or trusts2 ..................................................
48 Government National Mortgage Association ............
1- to 4-family ...............................................................
49
50
Multifamily ...................................................................

70,289
44,896
43,555
1,341

88,633
54,347
52,732
1,615

119,278
76,401
74,546
1,855

88,633
54,347
52,732
1,615

94,551
57,955
56,269
1,686

102,259
63,000
61,246
1,754

110,648
69,357
67,535
1,822

119,278
76,401
74,546
1,855

51
52
53

Federal Home Loan Mortgage Corporation..............
1- to 4-family ...............................................................
Multifamily ...................................................................

6,610
5,621
989

11,892
9,657
2,235

15,180
12,149
3,031

11,892
9,657
2,235

12,467
10,088
2,379

13,708
11,096
2,612

14,421
11,568
2,853

15,180
12,149
3,031

54
55
56
57
58

Farmers Home Administration ....................................
1- to 4-family ...............................................................
Multifamily ...................................................................
Commercial ...................................................................
Farm ...............................................................................

18,783
11,397
759
2,945
3,682

22,394
13,400
1,116
3,560
4,318

27,697
14,884
2,163
4,328
6,322

22,394
13,400
1,116
3,560
4,318

24,129
13,883
1,465
3,660
5,121

25,551
14,329
1,764
3,833
5,625

26,870
14,972
1,763
4,054
6,081

27,697
14,884
2,163
4,328
6,322

59 Individual and others3 .........................................................
60
1- to 4-family ...................................................................

138,199
72,115
20,538
21,820
23,726

154,173
82,567
21,393
22,837
27,376

177,534'
96,047'
23,439
24,979'
33,069'

154,173
82,567
21,393
22,837
27,376

158,999
85,354
21,637
23,230
28,778

165,687
89,345
22,094
23,770
30,478

171,886
92,565
22,920
24,442
31,959

177,534'
96,047'
23,439
24,979'
33,069'

45

46

61

62
63

Multifamily .......................................................................
Commerical .......................................................................
F a rm ...................................................................................

1. Includes loans held by nondeposit trust companies but not bank trust de­
partments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U.S. agencies for which amounts are small or separate
data are not readily available.




N o t e . Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and in­
terpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.

A42
1.57

Domestic Financial Statistics □ May 1980
CONSUM ER INSTALLMENT CREDIT>

Total Outstanding, and Net Change

M illions o f dollars
1979
Holder, and type of credit

1977

1978

1980

1979
Sept.

Nov.

Oct.

Dec.

Jan.

Feb.

Mar.

Amounts outstanding (end of period)
1 Total .......................................................

230,829

275,629

311,122

303,902

305,217

307,641

311,122

308,984

308,190'

307,621

By major holder
Commercial banks ..................................
Finance com panies..................................
Credit unions ..........................................
Retailers2 ..................................................
Savings and lo a n s .....................................
Gasoline companies ................................
Mutual savings b an k s..............................

112,373
44,868
37,605
23,490
7,354
2,963
2,176

136,189
54,298
45,939
24,876
8,394
3,240
2,693

149,604
68,318
48,186
27,916
10,361
4,316
2,421

148,657
64,822
49,214
24,446
9,972
4,244
2,547

149,152
65,692
48,770
24,860
10,073
4,174
2,496

149,057
67,164
48,673
25,732
10,241
4,281
2,493

149,604
68,318
48,186
27,916
10,361
4,316
2,421

148,868
68,724
47,270
26,985
10,320
4,433
2,384

148,249
69,545'
46,707
26,309
10,543
4,467
2,370

147,315
70,421
46,521
25,841
10,755
4,421
2,347

By major type of credit
9 Automobile ...............................................
10 Commercial banks ..............................
11
Indirect paper ..................................
12
Direct lo a n s .......................................
13 Credit u nion s.........................................
14 Finance com panies...............................

82,911
49,577
27,379
22,198
18,099
15,235

102,468
60,564
33,850
26,714
21,967
19,937

115,022
65,229
37,209
28,020
23,042
26,751

114,765
65,813
37,267
28,546
23,534
25,418

114,876
65,973
37,469
28,504
23,322
25,581

115,121
65,646
37,334
28,312
23,275
26,200

115,022
65,229
37,209
28,020
23,042
26,751

114,761
64,824
37,020
27,804
22,604
27,333

115,007
64,544'
36,949
27,595
22,335
28,128

115,281
64,047
36,821
27,226
22,246
28,988

15 R evolving...................................................
16 Commercial banks ..............................
17 R etailers.................................................
18 Gasoline companies ............................

39,274
18,374
17,937
2,963

47,051
24,434
19,377
3,240

55,330
28,954
22,060
4,316

50,422
27,446
18,732
4,244

50,883
27,600
19,109
4,174

52,060
27,827
19,952
4,281

55,330
28,954
22.060
4,316

54,420
28,841
21,146
4,433

53,522
28,575
20,480
4,467

52,662
28,241
20,000
4,421

19 Mobile home .............................................
20 Commercial banks ..............................
21
Finance companies ..............................
22
Savings and lo a n s ................................
23
Credit u n ion s........................................

15,141
9,124
3,077
2,538
402

16,042
9,553
3,152
2,848
489

17,409
9,991
3,390
3,516
512

17,105
9,940
3,258
3,384
523

17,244
10,013
3,295
3,418
518

17,349
10,036
3,321
3,475
517

17,409
9,991
3,390
3,516
512

17,387
9,968
3,415
3,502
502

17,476
9,974
3,428
3,578
496

17,596
9,978
3,475
3,650
494

24 Other .........................................................
25
Commercial banks ..............................
26
Finance com panies..............................
27
Credit u n ion s........................................
28
R etailers.................................................
29
Savings and lo a n s ................................
30
Mutual savings b an k s..........................

93,503
35,298
26,556
19,104
5,553
4,816
2,176

110,068
41,638
31,209
23,483
5,499
5,546
2,693

123,361
45,430
38,177
24,632
5,856
6,845
2,421

121,610
45,458
36,146
25,157
5,714
6,588
2,547

122,214
45,566
36,816
24,930
5,751
6,655
2,496

123,111
45,548
37,643
24,881
5,780
6,766
2,493

123,361
45,430
38,177
24,632
5,856
6,845
2,421

122,416
45,235
37,976
24,164
5,839
6,818
2,384

122,185r
45,156
37,989r
23,876
5,829
6,965
2,370

122,082
45,049
37,958
23,781
5,841
7,106
2,347

2
3
4
5
6
7
8

Net change (during period)3
31 Total .......................................................

35,278

44,810

35,491

4,446

2,186

2,407

1,349

1,372

2,295r

1,437

By major holder
Commercial banks ...................................
Finance com panies...................................
Credit unions ...........................................
Retailers2 ...................................................
Savings and lo a n s ....................................
Gasoline companies ................................
Mutual savings b an k s..............................

18,645
5,948
6,436
2,654
1,111
132
352

23,813
9,430
8,334
1,386
1,041
276
530

13,414
14,020
2,247
3,040
1,967
1,076
-2 7 3

1,521
1,773
411
443
207
127
-3 6

771
1,076
-1 5 2
335
76
122
-4 2

283
1,340
-4 4
477
143
218
-1 0

218
1,087
-4 5 5
282
165
115
-6 3

433
1,096
-3 2 4
120
7
50
-1 0

783
1,376'
-3 7 3
53
306
166
-1 6

17
1,174
-2 1 5
243
204
48
-3 4

'By major type of credit
39 Automobile ..............................................
40
Commercial banks ..............................
41
Indirect paper ..................................
42
Direct lo a n s .......................................
43
Credit u n ion s........................................
44 Finance companies ..............................

15,204
9,956
5,307
4,649
2,861
2,387

19,557
10,987
6,471
4,516
3,868
4,702

12,554
4,665
3,359
1,306
1,075
6,814

1,823
762
542
220
218
843

487
203
237
-3 4
-7 9
363

533
-7 6
40
-1 1 6
-2 4
633

682
122
260
-1 3 8
-2 1 3
773

972
83
72
11
-1 3 4
1,023

881
22
48
-2 6
-1 7 7
1,036

395
-4 1 2
-8 6
-3 2 6
-8 2
889

45 R evolving..................................................
46
Commercial banks ..............................
47
R etailers................................................
48
Gasoline companies ............................

6,248
4,015
2,101
132

7,776
6,060
1,440
276

8,279
4,520
2,683
1,076

1,057
546
384
127

664
253
289
122

799
136
445
218

432
24
293
115

289
109
130
50

575
383
26
166

611
395
168
48

49 Mobile h o m e .............................................
50
Commercial banks ..............................
51
Finance companies ..............................
52
Savings and lo a n s ................................
53
Credit u nion s.........................................

565
387
-1 8 9
297
70

897
426
74
310
87

1,366
437
238
668
23

89
10
17
57
5

150
105
27
21
-3

103
33
19
52
-1

108
-2 2
84
51
-5

120
68
48
10
-6

198
57
32
115
-6

128
17
57
57
-3

54 Other ........................................................
55
Commercial banks ..............................
56
Finance companies ..............................
57 Credit u nion s.........................................
58
R etailers................................................
59
Savings and lo a n s ................................
60 Mutual savings b an k s..........................

13,261
4,287
3,750
3,505
553
814
352

16,580
6,340
4,654
4,379
-5 4
731
530

13,292
3,792
6,968
1,149
357
1,299
-2 7 3

1,477
203
913
188
59
150
-3 6

885
210
686
-70
46
55
-4 2

972
190
688
-1 9
32
91
-1 0

127
94
230
-2 3 7
-1 1
114
-6 3

-9
173
25
-1 8 4
-1 0
-3
-1 0

32
33
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
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); figures for all months are seasonally adjusted.




641'
321
308'
-1 9 0
27
191
-1 6

303
17
228
-1 3 0
75
147
-3 4

N o t e . 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 $70.9 billion at the end of 1979, $64.7 billion at the
end of 1978, $58.6 billion at the end of 1977, and $55.4 billion at the end of 1976.

Consumer Debt
1.58

CONSUM ER INSTALLMENT CREDIT

A43

Extensions and Liquidations

M illions o f dollars; m onthly data are seasonally adjusted.
1979
Holder, and type of credit

1977

1978

1980

1979
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Extensions

1 Total ..........................................................................

254,071

298,351

322,558

28,634

27,695

26,464

25,671

26,702

27,076'-

26,620

By major holder
Commercial banks .......................................................
Finance com panies.......................................................
Credit unions ...............................................................
Retailers1 .......................................................................
Savings and lo a n s .........................................................
Gasoline com panies.....................................................
Mutual savings banks .................................................

117,896
41,989
34,028
39,133
4,485
14,617
1,923

142,720
50,505
40,023
41,619
5,050
16,125
2,309

149,599
61,518
36,778
46,092
7,333
19,607
1,631

13,172
5,489
3,363
4,082
678
1,734
116

12,718
5,642
2,942
3,930
571
1,773
119

11,738
5,105
2,808
4,161
606
1,913
133

11,370
5,249
2,396
4,054
632
1,895
75

12,126
5,540
2,527
4,010
485
1,889
125

12,004
5,639'
2,495
4,042
775
2,004
117

11,315
5,700
2,501
4,358
665
1,987
94

By major type of credit
9 Automobile ...................................................................
10 Commercial banks ...................................................
11
Indirect paper .......................................................
12
Direct lo a n s ...........................................................
13 Credit unions ...........................................................
14 Finance com panies...................................................

75,641
46,363
25,149
21,214
16,616
12,662

88,987
53,028
29,336
23,692
19,486
16,473

91,847
50,596
28,183
22,413
18,301
22,950

8,430
4,544
2,569
1,975
1,655
2,231

7,676
4,185
2,376
1,809
1,434
2,057

7,066
3,640
2,009
1,631
1,399
2,027

7,131
3,808
2,181
1,627
1,223
2,100

7,780
4,026
2,154
1,872
1,348
2,406

7,659'
3,936
2,096
1,840
1,338
2,385

7,240
3,394
1,978
1,416
1,306
2,540

15 Revolving .....................................................................
16 Commercial banks ...................................................
17
Retailers ...................................................................
18 Gasoline com panies................................................

86,756
38,256
33,883
14,617

104,587
51,531
36,931
16,125

120,728
60,406
40,715
19,607

10,699
5,398
3,567
1,734

10,424
5,165
3,486
1,773

10,613
5,014
3,686
1,913

10,196
4,683
3,618
1,895

10,475
5,030
3,556
1,889

10,458
4,920
3,534
2,004

11,038
5,200
3,851
1,987

19 Mobile h o m e .................................................................
20
Commercial banks ...................................................
21
Finance com panies..................................................
22
Savings and lo a n s .....................................................
23
Credit unions ...........................................................

5,425
3,466
643
1,120
196

6,067
3,704
886
1,239
238

6,395
3,720
797
1,687
191

531
294
69
148
20

582
374
83
114
11

515
294
69
139
13

490
245
97
140
8

558
351
87
112
8

597
304
80
207
6

506
263
90
143
10

24 Other .............................................................................
25
Commercial banks ..................................................
26
Finance com panies..................................................
27
Credit unions ...........................................................
28
Retailers ...................................................................
29
Savings and lo a n s .....................................................
30
Mutual savings banks ............................................

86,249
29,811
28,684
17,216
5,250
3,365
1,923

98,710
34,457
33,146
20,299
4,688
3,811
2,309

103,588
34,877
37,771
18,286
5,377
5,646
1,631

8,974
2,936
3,189
1,688
515
530
116

9,013
2,994
3,502
1,497
444
457
119

8,270
2,790
3,009
1,396
475
467
133

7,854
2,634
3,052
1,165
436
492
75

7,889
2,719
3,047
1,171
454
373
125

8,362'
2,844
3,174'
1,151
508
568
117

7,836
2,458
3,070
1,185
507
522
94

2
3

4
5
6
7
8

Liquidations
31 Total ..........................................................................

218,793

253,541

287,067

24,188

25,509

24,057

24,322

25,330

24,781r

25,183

By major holder
Commercial banks .......................................................
Finance com panies.......................................................
Credit unions ...............................................................
Retailers1 .......................................................................
Savings and lo a n s .........................................................
Gasoline com panies.....................................................
Mutual savings banks ................................................

99,251
36,041
27,592
36,479
3,374
14,485
1,571

118,907
41,075
31,689
40,233
4,009
15,849
1,779

136,185
47,498
34,531
43,052
5,366
18,531
1,904

11,651
3,716
2,952
3,639
471
1,607
152

11,947
4,566
3,094
3,595
495
1,651
161

11,455
3,765
2,852
3,684
463
1,695
143

11,152
4,162
2,851
3,772
467
1,780
138

11,693
4,444
2,851
3,890
478
1,839
135

11,221
4,263'
2,868
3,989
469
1,838
133

11,298
4,526
2,716
4,115
461
1,939
128

By major type of credit
39 Automobile ...................................................................
40
Commercial banks ...................................................
41
Indirect p a p e r .......................................................
42
Direct lo a n s ...........................................................
43
Credit unions ...........................................................
44 Finance com panies...................................................

60,437
36,407
19,842
16,565
13,755
10,275

69,430
42,041
22,865
19,176
15,618
11,771

79,293
45,931
24,824
21,107
17,226
16,136

6,607
3,782
2,027
1,755
1,437
1,388

7,189
3,982
2,139
1,843
1,513
1,694

6,533
3,716
1,969
1,747
1,423
1,394

6,449
3,686
1,921
1,765
1,436
1,327

6,808
3,943
2,082
1,861
1,482
1,383

6,778'
3,914
2,048
1,866
1,515
1,349

6,845
3,806
2,064
1,742
1,388
1,651

45 Revolving .....................................................................
46
Commercial banks ...................................................
47
Retailers ...................................................................
48
Gasoline companies ................................................

80,508
34,241
31,782
14,485

96,811
45,471
35,491
15,849

112,449
55,886
38,032
18,531

9,642
4,852
3,183
1,607

9,7b0
4,912
3,197
1,651

9,814
4,878
3,241
1,695

9,764
4,659
3,325
1,780

10,186
4,921
3,426
1,839

9,883
4,537
3,508
1,838

10,427
4,805
3,683
1,939

49 Mobile h o m e .................................................................
50 Commercial banks ...................................................
51
Finance com panies...................................................
52 Savings and lo a n s .....................................................
53
Credit unions ...........................................................

4,860
3,079
832
823
126

5,170
3,278
812
929
151

5,029
3,283
559
1,019
168

442
284
52
91
15

432
269
56
93
14

412
261
50
87
14

382
267
13
89
13

438
283
39
102
14

399
247
48
92
12

378
246
33
86
13

54 Other .............................................................................
55
Commercial banks ...................................................
56
Finance com panies...................................................
57
Credit unions ...........................................................
58
Retailers ...................................................................
59
Savings and lo a n s .....................................................
60
Mutual savings banks ............................................

72,988
25,524
24,934
13,711
4,697
2,551
1,571

82,130
28,117
28,492
15,920
4,742
3,080
1,779

90,296
31,085
30,803
17,137
5,020
4,347
1,904

7,497
2,733
2,276
1,500
456
380
152

8,128
2,784
2,816
1,567
398
402
161

7,298
2,600
2,321
1,415
443
376
143

7,727
2,540
2,822
1,402
447
378
138

7,898
2,546
3,022
1,355
464
376
135

32
33
34
35
36
37
38

1.
Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.




7,721'
2,523
2,866'
1,341
481
377
133

7,533
2,441
2,842
1,315
432
375
128

A44
1.59

Domestic Financial Statistics □ May 1980
FUNDS RAISED IN U.S. CREDIT MARKETS
B illion s o f dollars; quarterly data are at seasonally adjusted annual rates.
1977

1976
Transaction category, sector

1973

1974

1975

1976

1977

1979

1978

1978
H2

HI

H2

HI

H2

HI

Nonfinancial sectors
1 Total funds raised.....................................................
2 Excluding equities .......................................................

203.1

191.3

210.8

271.9

338.5

400.3

274.9

298.1

378.9

384.5

416.1

384.3

195.4

187.4

200.7

261.1

335.4

398.2

266.8

296.9

373.8

387.1

409.3

381.6

8.3
7.9
.4
194.9
7.7
187.2
188.8
7.9
180.9
105.1
14.7
9.2

11.8
12.0
- .2
179.5
3.8
175.6
164.1
4.1
160.0
98.0
16.5
19.7

85.4
85.8
-.4
125.4
10.1
115.3
112.1
9.9
102.1
98.4
16.1
27.2

69.0
69.1
- .1
202.9
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8

56.8
57.6
- .9
281.8
3.1
278.6
267.9
2.7
265.1
175.6
23.7
21.0

53.7
55.1
- 1 .4
346.6
2.1
344.5
314.4
2.6
311.8
196.6
28.3
20.1

61.4
61.8
- .3
213.4
8.1
205.4
192.3
7.7
184.6
126.5
10.9
22.9

46.1
46.7
-.6
252.0
1.2
250.8
241.5
.5
241.0
158.7
22.3
16.6

67.4
68.6
- 1 .2
311.5
5.1
306.4
294.2
4.9
289.3
192.5
25.0
25.4

61.4
62.3
-.9
323.1
- 2 .6
325.7
302.5
-1 .8
304.3
188.0
27.8
20.6

46.0
47.9
- 1 .9
370.2
6.8
363.4
326.3
7.0
319.2
205.1
28.7
19.6

27.3
29.6
- 2 .3
357.0
2.7
354.3
340.2
2.8
337.4
202.6
17.4
23.3

46.4
10.4
18.9
5.5
75.8
26.0
37.1
2.5
10.3

34.8
6.9
15.1
5.0
62.0
9.9
31.7
6.6
13.7

39.5
*

96.4
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0

104.5
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2

70.0
3.1
12.5
7.3
58.0
27.6
10.8
2.3
17.4

89.7
6.4
14.8
9.0
82.3
36.6
27.3
3.4
14.9

103.1
8.4
21.9
8.7
96.7
44.5
26.7
2.4
23.2

99.8
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8

109.2
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5

111.0

4.6
3.8
9.7
-1 2 .3
-2 .6
9.0

63.7
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4

15
16
17
18
19
20
21
22
23

By sector and instrument
U.S. government .........................................................
Treasury securities ...................................................
Agency issues and m ortgages................................
All other nonfinancial sectors ..................................
Corporate equities ...................................................
Debt instruments .....................................................
Private domestic nonfinancial secto rs..................
Corporate equities ...............................................
Debt instruments .................................................
Debt capital instruments................................
State and local obligations ........................
Corporate b o n d s...........................................
Mortgages
Home .........................................................
Multifamily residential ..........................
Commercial ...............................................
Farm ...........................................................
Other debt instruments..................................
Consumer credit ...........................................
Bank loans n.e.c............................................
Open market paper ....................................
Other .............................................................

24
25
26
27
28
29

By borrowing sector ...........................................
State and local governments..........................
Households .......................................................
Farm ...................................................................
Nonfarm noncorporate ..................................
Corporate .........................................................

188.8
13.2
80.1
9.6
13.0
73.0

164.1
15.5
51.2
8.0
7.7
81.7

112.1
13.7
49.5
8.8
2.0
38.1

182.0
15.2
90.7
10.9
5.4
59.8

267.9
20.4
139.9
14.7
12.5
80.3

314.4
23.6
162.6
18.1
15.7
94.5

192.3
11.7
98.8
11.9
5.8
64.1

241.5
15.7
129.4
15.7
13.4
67.3

294.2
25.0
150.4
13.8
12.5
92.4

302.5
21.0
156.1
15.3
16.3
93.7

326.3
26.1
169.1
20.8
14.5
95.8

340.2
14.4
167.5
23.6
15.1
119.4

30
31
32
33
34
35
36

F oreign.......................................................................
Corporate equities ...............................................
Debt instruments .................................................
Bonds .................. ..............................................
Bank loans n.e.c................................................
Open market paper ........................................
U.S. government loans ..................................

6.1
- .2
6.3
1.0
2.7
.9
1.7

15.4
- .2
15.7
2.1
4.7
7.3
1.6

13.3
.2
13.2
6.2
3.9
.3
2.8

20.8
.3
20.5
8.6
6.8
1.9
3.3

13.9
.4
13.5
5.1
3.1
2.4
3.0

32.3
-.5
32.8
4.0
18.3
6.6
3.9

21.1
.3
20.8
9.7
5.1
2.4
3.6

10.5
.6
9.9
4.4
- .4
2.7
3.1

17.3
.2
17.1
5.7
6.5
2.2
2.9

20.6
-.8
21.4
5.0
9.3
3.6
3.6

43.9
-.2
44.1
3.0
27.3
9.6
4.2

16.9
- .1
16.9
3.5
4.3
6.1
3.1

3
4
5
6
7
8
9
10
11
12
13
14

11.0

8.1
25.7
17.1
134.8
48.2
46.9
10.8
28.9

Financial sectors

44.8

39.2

12.7

24.1

54.0

81.4

28.5

47.7

60.3

80.7

82.1

87.8

19.9
16.3
3.6
0
24.9
1.5
23.4
3.5
- 1 .2
9.0
4.9

23.1
16.6
5.8
.7
16.2
.3
15.9
2.1
-1 .3
4.6
3.8

13.5
2.3
10.3
.9
-.8
.6
- 1 .4
2.9
2.3
- 3 .7
1.1

18.6
3.3
15.7
- .4
5.5
1.0
4.4
5.8
2.1
- 3 .7
2.2

26.3
7.0
20.5
- 1 .2
27.7
.9
26.9
10.1
3.1
- .3
9.6

41.4
23.1
18.3
0
40.0
1.7
38.3
7.5
.9
2.8
14.6

20.7
4.3
17.2
- .7
7.8
2.3
5.6
5.1
2.8
- 5 .3
5.0

22.6
7.1
17.9
- 2 .3
25.1
.9
24.2
10.2
3.1
- 1 .8
9.8

29.9
6.8
23.1
0
30.4
.8
29.6
10.1
3.0
1.2
9.5

38.5
21.9
16.6
0
42.2
2.2
40.0
8.5
2.1
2.5
13.5

44.3
24.3
20.1
0
37.8
1.1
36.7
6.4
- .3
3.1
15.7

45.9
21.7
24.2
0
41.9
2.5
39.3
8.9
- .4
- 1 .3
24.5

7.2

6.7

- 4 .0

- 2 .0

4.3

12.5

- 2 .0

2.9

5.8

13.2

11.8

7.7

16.3
3.6
24.9
1.2
2.2
6.0
.5
9.5
6.5
-1 .2

17.3
5.8
16.2
1.2
3.5
4.8
.9
6.0
.6
- .7

3.2
10.3
- .8
1.2
.3
-2 .3
1.0
.5
- 1 .4
- .1

2.6
15.7
5.5
2.3
- .8
.1
.9
6.4
- 2 .4
- 1 .0

5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
- 2 .2
- .9

23.1
18.3

- 1 .0
- 1 .0

3.5
17.2
7.8
2.1
-.3
.3
.9
7.2
- 2 .7
.4

4.7
17.9
25.1
.8
1.3
8.3
.9
16.7
- 2 .4
-.6

6.8
23.1
30.4
1.5
1.2
11.5
1.0
18.5
- 2 .0
-1 .3

21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
- 1 .0
- .5

24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
-1 .0
-1 .5

21.7
24.2
41.9
1.1
6.2
9.8
1.0
24.4
-.5
-.3

60 Total funds raised, by instrum ent...........................

248.0

230.5

223.5

296.0

392.5

481.7

303.4

345.8

439.2

465.2

498.3

472.1

61 Investment company shares .......................................
62 Other corporate eq u ities.............................................
63 Debt instruments .........................................................
64
U.S. government securities ..................................
65
State and local obligations .....................................
66
Corporate and foreign b o n d s................................
67
Mortgages .................................................................
68
Consumer credit .......................................................
69
Bank loans n.e.c........................................................
70
Open market paper and R P s ................................
71
Other loans ...............................................................

-1 .2
10.4
238.8
28.3
14.7
13.6
79.9
26.0
48.8
8.3
19.1

- .7
4.8
226.4
34.3
16.5
23.9
60.5
9.9
41.0
17.7
22.7

-.1
10.8
212.8
98.2
16.1
36.4
57.2
9.7
-1 2 .2
-1 .2
8.7

- 1 .0
12.9
284.1
88.1
15.7
37.2
87.1
25.6
7.0
8.1
15.3

- .9
4.9
388.5
84.3
23.7
36.1
134.0
40.6
29.8
15.0
25.2

- 1 .0
4.7
478.0
95.2
28.3
31.6
149.0
50.6
58.4
26.4
38.6

.4
9.9
293.1
82.9
10.9
37.7
95.5
27.6
10.6
9.6
18.23

- .6
2.6
343.8
71.2
22.3
31.2
122.9
36.6
25.1
15.9
18.5

- 1 .3
7.2
433.3
97.4
25.0
41.1
145.1
44.5
34.4
14.0
31.8

- .5
.1
465.5
100.0
27.8
34.2
141.6
50.1
54.9
22.4
34.6

-1 .5
9.4
490.4
90.4
28.7
29.1
156.4
51.0
61.8
30.4
42.5

5.5
466.9
73.4
17.4
35.7
161.4
48.2
49.8
41.3
39.8

37 Total funds raised ..................................................

49

By instrument
U.S. government related ..............................
Sponsored credit agency securities..........
Mortgage pool securities............................
Loans from U.S. government ..................
Private financial sectors ................................
Corporate equities ......................................
Debt instruments .........................................
Corporate b o n d s......................................
Mortgages .................................................
Bank loans n.e.c........................................
Open market paper and repurchase
agreements ...............................................
Loans from Federal Home Loan Banks

50
51
52
53
54
55
56
57
58
59

By sector
Sponsored credit agencies..............................
Mortgage p o o ls .................................................
Private financial sectors ................................
Commercial banks ......................................
Bank affiliates...............................................
Savings and loan associations....................
Other insurance companies ......................
Finance com panies......................................
REITs ...........................................................
Open-end investment com panies..............

38
39
40
41
42
43
44
45
46
47
48




1.3
LI

- .3

Flow o f Funds
1.60

A45

1977

1979

DIRECT A N D INDIRECT SOURCES OF FUND S TO CREDIT MARKETS
B illion s o f d ollars, ex cep t as n oted ; quarterly data are at seasonally adjusted annual rates

1976
Transaction category, or sector

1973

1974

1975

1976

1977

1978

1978
H2

1 Total funds advanced in credit markets to nonfinancial
sectors ......................................................................

HI

H2

HI

H2

HI

195.4

187.4

200.7

261.1

355.4

398.2

266.8

296.9

373.8

387.1

409.3

381.6

31.8
9.5
8.2
7.2
6.9

53.7
11.9
14.7
6.7
20.5

44.6
22.5
16.2
-4.0
9.8

54.3
26.8
12.8
-2 .0
16.6

85.1
40.2
20.4
4.3
20.2

109.7
43.9
26.5
12.5
26.9

60.3
30.2
14.7
-2 .0
17.4

66.1
27.1
18.9
2.9
17.2

104.2
53.3
22.0
5.8
23.1

102.8
43.7
22.2
13.2
23.7

116.6
44.0
30.7
11.8
30.1

45.1
-27.6
33.7
7.7
31.2

2.8
19.1
9.2
.6
19.9

9.8
26.5
6.2
11.2
23.1

15.1
14.8
8.5
6.1
13.5

8.9
20.3
9.8
15.2
18.6

11.8
26.8
7.1
39.4
26.3

20.4
44.6
7.0
37.7
41.4

11.9
22.2
6.2
20.0
20.7

5.9
21.6
10.2
28.3
22.6

17.8
32.0
4.0
50.4
29.9

19.4
39.4
13.4
30.6
38.5

21.4
49.8
.5
44.9
44.3

24.3
50.6
- .8
-28.9
45.9

183.6
18.8
14.7
10.0
48.4
98.8
7.2

156.8
22.4
16.5
20.9
26.9
76.8
6.7

169.7
75.7
16.1
32.8
23.2
17.9
-4.0

225.4
61.3
15.7
30.5
52.7
63.3
-2 .0

276.5
44.1
23.7
22.5
83.3
107.3
4.3

330.0
51.3
28.3
22.5
88.2
152.2
12.5

227.2
52.7
10.9
31.8
58.2
71.6
-2 .0

253.5
44.1
22.3
18.0
77.1
94.9
2.9

299.6
44.1
25.0
27.0
89.4
119.7
5.8

322.8
56.3
27.8
24.1
86.7
141.1
13.2

337.1
46.4
28.7
20.9
89.6
163.3
11.8

382.4
100.9
17.4
26.9
85.3
159.7
7.7

19 Credit market funds advanced by private financial
institutions .................................................................
20 Commercial banking ...................................................
21 Savings institutions .....................................................
22 Insurance and pension funds ......................................
23 Other finance ...............................................................

161.3
84.6
35.1
23.7
17.9

125.5
66.6
24.2
29.8
4.8

122.5
29.4
53.5
40.6
-1 .0

190.3
59.6
70.8
49.9
10.0

255.9
87.6
82.0
67.9
18.4

296.9
128.7
75.9
73.5
18.7

202.2
68.3
70.4
47.9
15.5

249.1
84.6
81.4
65.2
18.0

265.0
90.7
82.6
70.6
21.2

301.7
132.5
75.8
76.9
16.6

292.0
125.0
75.9
70.2
20.8

320.6
130.3
57.8
79.9
52.6

24 Source of funds ...............................................................
25 Private domestic deposits ............................................
26 Credit market borrowing ............................................
27 Other sources ...............................................................
28
Foreign funds ...........................................................
29
Treasury balances ...................................................
30
Insurance and pension reserves..............................
31
Other, net .................................................................

161.3
97.3
23.4
40.6
3.0
-1 .0
18.4
20.2

125.5
67.5
15.9
42.1
10.3
-5.1
26.2
10.6

122.5
92.0
-1 .4
32.0
-8.7
-1 .7
29.7
12.7

190.3
124.6
4.4
61.3
-4.6
-.1
34.5
31.4

255.9
141.2
26.9
87.8
1.2
4.3
49.4
32.9

296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3

202.2
132.4
5.6
64.2
-2 .8
-3 .9
33.2
37.8

249.1
138.6
24.2
86.2
1.6
.1
45.3
39.3

265.0
143.8
29.6
91.7
.8
8.5
53.4
29.0

301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6

292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0

320.6
118.1
39.3
163.2
53.1
5.5
60.4
44.2

32 Direct lending in credit m arkets....................................
33 U.S. government securities ........................................
34 State and local obligations..........................................
35 Corporate and foreign bo n d s......................................
36 Commercial paper .......................................................
37 Other ............................................................................

45.7
18.8
5.4
2.0
9.8
9.7

47.2
18.9
9.3
5.1
5.8
8.0

45.8
24.1
8.4
8.4
-1.3
6.2

39.5
16.1
3.8
5.8
1.9
11.8

47.5
23.0
2.6
-3.3
9.5
15.7

71.4
33.2
4.5
-1 .4
16.3
18.7

30.6
11.0
-1 .5
6.0
1.6
13.5

28.6
11.9
- .5
- .1
8.2
9.2

64.1
34.2
5.7
-6 .5
10.8
19.9

61.1
32.1
7.0
-3 .7
8.2
17.5

81.7
34.4
2.0
1.0
24.4
20.0

101.1
64.3
- .8
2.2
10.4
25.1

38 Deposits and currency.....................................................
39 Security RPs .................................................................
40 Money market fund sh ares..........................................
41 Time and savings accounts..........................................
42
Large negotiable certificates of deposit.................
43
Other at commercial banks ....................................
44
At savings institutions..............................................
45 Money ..........................................................................
46
Demand deposits .....................................................
47
Currency ...................................................................

101.2
11.0
75.7
17.8
29.5
28.5
14.5
10.6
3.9

73.8
-2.2
2.4
65.4
18.4
25.3
21.8
8.2
1.9
6.3

98.1
.2
1.3
84.0
-14.3
38.8
59.4
12.6
6.4
6.2

131.9
2.3
*
113.5
-13.6
57.9
69.1
16.1
8.8
7.3

149.5
2.2
.2
121.0
9.0
43.0
69.0
26.1
17.8
8.3

151.8
7.5
6.9
115.2
10.8
43.3
61.1
22.2
12.9
9.3

141.0
3.2
.5
122.9
-7 .8
61.5
69.3
14.3
5.8
8.6

144.5
4.3
- .5
115.3
-4.5
47.5
72.3
25.4
19.6
5.8

154.5
.2
.9
126.7
22.6
38.4
65.7
26.8
16.1
10.8

148.7
9.8
6.1
110.7
10.1
42.1
58.5
22.1
11.6
10.5

154.8
5.1
7.7
119.8
11.4
44.5
63.8
22.3
14.2
8.1

128.1
18.5
30.2
73.7
-40.6
58.7
55.5
5.7
-4 .2
10.0

By public agencies and foreign

2 Total net advances...........................................................
3 U.S. government securities ........................................
4 Residential mortgages .................................................
5 FHLB advances to savings and lo an s.........................
6 Other loans and securities ..........................................
Total advanced, by sector

7
8
9
10
11

U.S. government .............................................................
Sponsored credit agencies .............................................
Monetary authorities.......................................................
Foreign ............................................................................
Agency borrowing not included in line 1 .......................
Private domestic funds advanced

12 Total net advances...........................................................
13 U.S. government securities ........................................
14 State and local obligations..........................................
15 Corporate and foreign b o n d s......................................
16 Residential mortgages .................................................
17 Other mortgages and loans ........................................
18 L ess: Federal Home Loan Bank advances...............
Private financial intermediation

Private domestic nonfinancial investors

48 Total of credit market instruments, deposits and
currency ....................................................................

146.9

121.0

143.9

171.4

197.0

223.2

171.6

173.1

218.6

209.8

236.6

229.2

Public support rate (in percent) ................................
Private financial intermediation (in percent) ...........
Total foreign funds .....................................................

16.3
87.9
3.6

28.7
80.0
21.5

22.2
72.2
-2 .6

20.8
84.4
10.6

25.4
92.5
40.5

27.5
90.0
44.0

22.6
89.0
17.3

22.2
98.2
29.9

27.9
88.5
51.2

26.5
93.5
36.3

28.5
86.6
51.8

11.8
83.9
24.2

M em o: Corporate equities not included above
52 Total net issues.................................................................
53 Mutual fund shares .....................................................
54 Other equities...............................................................

9.2
-1 .2
10.4

4.1
- .7
4.8

10.7
-.1
10.8

11.9
-1.0
12.9

4.0
- .9
4.9

3.7
-1 .0
4.7

10.3
.4
9.9

2.1
- .6
2.6

5.9
-1 .3
7.2

-.4
- .5
.1

7.9
-1 .5
9.4

5.2
- .3
5.5

55 Acquisitions by financial institutions ............................
56 Other net purchases .......................................................

13.1
-3 .9

5.8
-1.7

9.6
1.1

12.3
- .4

7.4
-3 .4

7.6
-3 .8

11.8
-1 .5

6.8
-4 .7

8.1
-2 .2

.4
- .8

14.7
-6 .8

14.5
-9 .3

49
50
51

N o t es

1.
2.
6.
11.
12.
17.
25.
26.
28.
29.

b y line n u m b e r .

Line 2 of p. A-44.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines
3, 13, 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, and 44.
Includes farm and commercial mortgages.
Sum of lines 39 and 44.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.




30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes
mortgages.
45. Mainly an offset to line 9.
46. Lines 32 plus 38, or line 12 less line 27 plus 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 o t e . Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.

A46
2.10

Domestic Nonfinancial Statistics □ May 1980
NO NFINANCIAL BUSINESS ACTIVITY

Selected Measures

1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1979
1977

Measure

1978
Sept.

1 Industrial production1 ...........................

137.9
135.9
145.3
123.0
145.1
138.6

152.4

138.2

Market groupings
Products, total .........................................
Final, total ...........................................
Consumer goods ............................
Equipment .......................................
Intermediate .........................................
Materials ...................................................

2
3
4
5

6
7

144.8
142.2
149.1
132.8
154.1
148.3

Industry groupings
8 Manufacturing .........................................

149.7
147.0
150.5
142.2
160.0
156.0

Oct.

152.2

149.9
147.2
149.7
143.9
159.8
156.3

149.6
146.8
149.7
142.9
159.8
156.3

149.4
146.6
148.9
143.6
159.8
156.4

85.3
86.7

84.9

86.6

Feb/

Nov

Apr.

152.6

152.3

151.3

148.5

149.7
147.0
148.5
145.0
159.9
156.2

150.0
147.0
148.2
145.4
160.8
156.7

150.2
147.7
149.0
145.9
159.4
155.5

149.1
147.1
148.1
145.7
156.6
154.6

146.9
145.3
145.1
145.4
153.2
151.0

84.6
86.4

84.3
87.2

84.4

86.0

83.9
85.2

83.0
84.5

81.0
82.2

153.2

Capacity utilization (percent)12
9 Manufacturing .........................................
10 Industrial materials industries ..............

81.9
82.7

84.4
85.6

11 Construction contracts3 ........................

160.5

174.3

185.0

171.0

156.0

183.0

190.0

171.0

155.0

n.a.

12 Nonagricultural employment, total4 . . .
13
Goods-producing, total ......................
14
Manufacturing, total ......................
15
Manufacturing, production-worker
16
Service-producing ..............................
17 Personal income, total5 ........................
18
Wages and salary disbursements . . .
19
Manufacturing ................................
20 Disposable personal income ................

125.3
104.5
98.8
136.7
244.4
230.2
198.3
194.8

131.4
109.8
105.3
102.8
143.2
274.1
258.1
222.4
217.7

136.0
114.0
107.9
104.9
148.1
306.9
287.1
246.8
242.5'

136.5
114.1
107.7
104.5
148.8
312.8
291.9
248.7

136.8
114.0
107.5
104.1
149.3
316.2
294.1
250.6

136.9
113.8
107.1
103.6
149.6
320.1
297.4
251.7
251.3

137.2
114.4
107.4
103.9
149.7
323.7
300.1
254.7

137.8
114.9
107.4
103.8
150.3
326.6
302.4
256.5

138.1
114.7
107.4
103.6
150.9
327.8
304.3
258.4
259.3

138.0
114.1
107.4
103.6
151.1
330.3
306.4
259.4

137.3
112.4
106.0
101.7
150.9
n.a.
n.a.
n.a.

21 Retail sales6 ............................................

229.8

253.8

280.9

293.9

292.0

294.8

Prices1
22 Consumer ................................................
23 Producer finished goods ........................

181.5
180.6

195.4
194.6

227.5
226.3'

229.9
228.1'

239.8
238.2

n.a.
240.0

101.2

85.7
87.2

223.4
220.7

233.2
232.1

236.4
235.4

6. Based on Bureau of Census data published in Survey of Current Business
(U.S. Department of Commerce).
7. Data without seasonal adjustment, as published in Monthly Labor Review
(U.S. Department of Labor). Seasonally adjusted data for changes in the price
indexes may be obtained from the Bureau of Labor Statistics, U.S. Department
of Labor.

1. The industrial production and capacity utilization series have been revised.
For a description of the changes see the August 1979 B u l l e t in , pp. 603-07.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Com­
merce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.

2.11

225.4
224.2

298.0

N o t e : Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey of Current Business (U.S. Department of Commerce).
Figures for industrial production for the last two months are preliminary and
estimated, respectively.

O UTPUT, CAPACITY, A N D CAPACITY UTILIZATION'
Seasonally adjusted
1979

1980

1979

1980

1979

1980

Series
02

Q3

Q4

Q l'

Output (167 = 100)

Q2

Q3

Q4

Ql

Capacity (percent of 1967 output)

Q2

Q3

Q4

Q lr

Utilization rate (percent)

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

153.1

152.9

153.0

152.7

178.2

179.5

180.8

182.3

85.9

84.6

84.6

83.8

2 Primary processing...............................................
3 Advanced processing ...........................................

161.9
148.5

161.8
148.1

161.8
148.2

160.1
148.7

184.2
175.0

185.7
176.2

187.2
177.4

188.7
178.8

87.9
84.8

86.5
83.5

86.4
83.6

84.8
83.1

4 Materials ...........................................................

155.6

156.3

156.3

155.6

178.1

179.5

181.0

182.5

87.3

86.3

86.3

85.2

5 Durable goods .....................................................
6
Metal materials .................................................
7 Nondurable goods ...............................................
8 Textile, paper, and chemical ........................
9
Textile ...........................................................
10
Paper .............................................................
11
Chemical .......................................................
12 Energy ...................................................................

157.7
124.3
173.4
181.3
119.6
140.7
224.8
128.1

156.1
119.5
178.2
187.0
123.7
148.4
230.4
129.9

156.3
119.5
178.3
186.9
123.7
148.4
230.2
129.1

155.2
117.0
178.6
186.0
121.7
142.2
231.8
128.3

183.0
140.3
193.5
201.3
137.3
149.6
250.3
147.5

184.5
140.7
195.3
203.2
137.7
150.6
253.3
148.3

186.0
141.1
197.3
205.3
138.1
151.6
256.3
149.2

187.7
141.5
199.1
207.3
138.5
152.9
259.4
149.8

86.2
88.5
89.6
90.0
87.1
94.0
89.8
86.9

83.9
84.7
90.3
91.1
89.6
97.9
89.8
86.8

84.0
84.7
90.4
91.0
89.6
97.9
89.8
86.6

82.7
82.7
89.7
89.7
87.9
93.0
89.4
85.6

1 Manufacturing

1.
The capacity utilization series has been revised. For a description of the
changes, see the August 1979 B u l l e t in , pp. 606-07.




L a b o r M a rk e t
2.12

A 47

LABO R FORCE, EM PLOYM ENT, A N D UNEMPLOYM ENT
T housands o f persons; m onthly data are seasonally adjusted. E xceptions n oted .
1979

Category

1977

1978

1980

1979

Oct.

Nov.

D e c.

Jan.

Feb.

Mar.

Apr.

H o u se h o l d Su r vey D ata

1 Noninstitutional population1 .........................

158,559

161,058

163,620

164,468

164,682

164,898

165,101

165,298

165,506

165,693

2 Labor force (including Armed Forces)1 ..

99,534
97,401

102,537
100,420

104,996
102,908

105,688
103,595

105,744
103,652

106,088
103,999

106,310
104,229

106,346
104,260

106,184
104,094

106,507
104,415

87,302
3,244

91,031
3,342

93,648
3,297

94,180
3,294

94,223
3,385

94,553
3,359

94,534
3,270

94,626
3,326

94,298
3,358

93,912
3,242

6,855
7.0
59,025

6,047
6.0
58,521

5,963
5.8
58,623

6,121
5.9
58,780

6,044
5.8
59,937

6,087
5.9
58,810

6,425
6.2
58,791

6,307
6.0
58,951

6,438
6.2
59,322

7,265
7.0
59,182

3
4
5

6
7
8

Civilian labor force ....................................
Employment
Nonagricultural industries2 ................
Agriculture ...............................................
Unemployment
Number ......................................................
Rate (percent of civilian labor force)
Not in labor fo r c e .............................................
E st a b l ish m e n t S u r v e y D a ta

9 Nonagricultural payroll employment3 . . . .

82,423

86,446

89,497

89,982

90,100

90,241

90,652

90,845'

90,799'

90,320

10 Manufacturing...............................................
11 Mining .................................................................
12 Contract construction ....................................

19,682
813
3,851
4,713
18,516
4,467
15,303
15,079

20.476
851
4,271
4,927
19,499
4,727
16,220
15.476

20,979
958
4,642
5,154
20,140
4,964
17,047
15,613

20,899
979
4,694
5,218
20,243
5,018
17,257
15,674

20,836
983
4,714
5,229
20,308
5,039
17,298
15,693

20,881
991
4,783
5,223
20,254
5,056
17,357
15,696

20,890
1,000
4,893
5,212
20,428
5,081
17,442
15,706

20,892'
1,009'
4,831'
5,210'
20,521'
5,092'
17,522'
15,768'

20,889'
1,010'
4,698'
5,212'
20,498'
5,103'
17,540'
15,849'

20,615
1,016
4,558
5,186
20,367
5,108
17,546
15,924

13 Transportation and public utilities ...........
14 Trade ....................................................................
15 Finance ...........................................................
16 Service .................................................................
17 Government .................................................

1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data from Employment and Earnings (U.S. Department of La­
bor).
2. Includes self-employed, unpaid family, and domestic service workers.




3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the February
1977 benchmark. Based on data from Employment and Earnings (U.S. Department
of Labor).

A48
2.13

Domestic Nonfinancial Statistics □ May 1980
INDUSTRIAL PRODUCTION

Indexes and Gross Value'

M onthly data are seasonally adjusted.

Grouping

1967
pro­
por­
tion

1979
aver­
age

1979
Mar.

Apr.

July

Aug.

1980

Sept.

Oct.

Nov.

Dec.

Jan.r

Feb.

Mar.P

A pr/

Index (1967 = 100)
M a jo r M a r k e t

1 Total index.................................................

100.00

152.2

153.0

150.8

152.8

151.6

152.4

152.2

152.1

152.2

152.6

152.3

151.3

148.5

2 Products .........................................................
3 Final products ...........................................
4
Consumer g o o d s ..................................
5
Equipment .............................................
6
Intermediate products ............................
7 Materials .......................................................

60.71
47.82
27.68
20.14
12.89
39.29

149.7
147.0
150.5
142.2
160.0
156.0

150.8
148.2
152.9
141.7
160.4
156.3

148.4
145.4
149.1
140.4
159.7
154.5

149.7
147.1
150.8
142.1
159.4
157.6

148.7
145.6
148.2
141.8
160.6
156.0

149.9
147.2
149.7
143.9
159.8
156.3

149.6
146.8
149.7
142.9
159.8
156.3

149.4
146.6
148.9
143.6
159.8
156.4

149.7
147.0
148.5
145.0
159.9
156.2

150.0
147.0
148.2
145.4
160.8
156.7

150.2
147.7
149.0
145.9
159.4
155.5

149.1
147.1
148.1
145.7
156.6
154.6

146.9
145.3
145.1
145.4
153.2
151.0

Consumer goods
8 Durable consumer goods ..........................
9
Automotive products..............................
10
Autos and utility v eh icles..................
11
Autos .................................................
12
Auto parts and allied g o o d s ..............

7.89
2.83
2.03
1.90
80

155.5
167.7
154.3
136.7
201.6

163.6
186.8
178.8
153.8
207.2

151.6
163.0
147.4
128.6
202.7

157.2
170.3
155.6
141.8
207.8

147.5
147.3
125.1
118.5
203.7

151.8
157.6
139.7
128.0
203.0

152.6
159.2
142.4
129.0
202.1

149.2
150.6
131.0
118.3
200.3

146.6
141.8
121.4
110.2
193.6

142.4
131.3
108.7
98.0
188.5

144.7
142.1
124.6
116.8
186.7

144.1
141.4
123.0
114.9
188.1

136.6
126.0
102.3
97.1
186.1

13
14
15
16
17

Home goods .............................................
Appliances, A/C, and T V .................
Appliances and TV .......................
Carpeting and furniture......................
Miscellaneous home g o o d s ................

5.06
1.40
1.33
1.07
2.59

148.7
127.5
129.3
170.6
151.1

150.6
128.4
130.3
173.5
153.2

145.2
115.6
116.5
170.7
150.8

149.8
129.7
131.6
171.9
151.6

147.7
121.2
124.1
171.7
152.1

148.5
129.6
132.2
169.7
150.0

148.8
128.0
130.2
169.2
151.7

148.4
129.7
132.4
169.1
150.0

149.3
134.2
136.5
168.8
149.4

148.6
128.9
130.0
171.2
149.9

146.2
122.4
124.4
169.4
149.6

145.5
121.3
124.1
169.0
149.0

142.6
116.0

18 Nondurable consumer goods ....................
19 Clothing .....................................................
20
Consumer staples ....................................
21
Consumer foods and to b a cco ............
22
Nonfood staples ..................................
23
Consumer chemical products ........
24
Consumer paper products..............
25
Consumer energy products............
26
Residential u tilities......................

19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45

148.5
129.1
153.8
145.4
163.6
205.5
120.8
153.0
165.2

148.6
130.9
153.6
145.1
163.4
202.8
121.4
154.7
167.9

148.0
127.7
153.7
145.2
163.5
201.6
120.9
156.4
169.1

148.2
126.9
154.1
147.0
162.4
206.1
119.9
149.8
158.5

148.5
128.0
154.2
145.3
164.6
209.2
121.2
151.6
163.5

148.9
129.0
154.3
146.5
163.5
207.2
121.1
150.8
162.2

148.6
127.7
154.3
146.7
163.2
206.4
121.6
150.5
164.2

148.7
129.1
154.2
145.9
163.8
207.9
119.3
152.2
166.7

149.2
129.1
154.8
146.8
164.2
207.8
121.0
152.2
166.3

150.5
128.3
156.7
148.4
166.4
210.5
123.7
153.4
164.6

150.7
127.9
157.0
148.8
166.7
210.6
122.3
155.1

149.7

148.5

156.5
148.0
166.3
210.3
122.0
154.7

Equipment
27 Business .........................................................
28
Industrial ...................................................
29
Building and m in in g............................
30
Manufacturing .......................................
31
Power .....................................................

12.63
6.77
1.44
3.85
1.47

171.3
152.1
206.1
130.3
156.3

170.8
152.8
205.2
130.3
160.2

168.7
150.4
204.2
128.0
156.0

171.4
151.3
207.4
130.3
151.0

171.5
151.7
210.6
131.1
147.7

173.6
153.5
212.0
130.4
156.3

172.0
151.2
200.6
130.8
156.3

172.5
153.3
204.4
132.5
157.6

174.1
153.1
204.4
132.1
157.8

175.0
157.4
222.9
132.6
158.1

175.7
158.7
230.2
132.4
157.3

175.5
159.0
235.5
132.1
154.4

175.0
158.5
236.4
131.3
153.1

Commercial transit, farm ......................
Commercial ...........................................
Transit ...................................................
Farm .......................................................

5.86
3.26
1.93
67

193.4
227.8
152.2
144.9

191.6
224.4
150.5
150.0

189.9
223.0
148.8
147.7

194.6
227.0
155.2
151.0

194.4
230.5
149.4
148.3

196.8
231.4
156.3
145.3

195.9
234.2
154.9
128.0

194.6
232.2
150.3
139.5

198.4
236.9
153.3
141.0

195.3
237.8
143.8
137.1

195.3
237.6
146.7
129.9

194.6
239.2
141.6
130.0

194.0
238.5
141.6

36 Defense and space .......................................

7.51

93.2

92.9

92.9

92.8

92.0

94.0

94.0

95.0

95.9

95.8

95.8

95.7

95.8

Intermediate products
37 Construction supplies..................................
38 Business supplies .........................................
39
Commercial energy products ................

6.42
6.47
1.14

156.9
163.1
172.3

157.1
163.8
173.5

156.0
163.2
174.6

156.4
162.4
167.8

157.3
163.8
170.7

156.3
163.2
169.8

156.8
162.7
172.2

156.7
162.9
174.4

156.0
163.8
175.7

156.4
165.0
172.3

154.1
164.7
173.2

150.1
163.1
173.5

145.0

Materials
40 Durable goods m aterials............................
41
Durable consumer parts ........................
42
Equipment p a rts......................................
43
Durable materials n.e.c............................
44
Basic metal m aterials..........................

20.35
4.58
5.44
10.34
5.57

157.8
137.1
189.9
150.0
124.0

159.2
145.8
186.8
150.6
126.7

155.7
136.9
187.0
147.7
123.2

160.7
138.5
192.1
154.0
130.5

157.7
129.7
190.7
152.7
127.7

157.6
132.2
192.0
150.7
124.8

157.2
132.0
192.7
149.6
121.4

156.0
126.8
195.1
148.3
119.9

155.6
123.8
196.6
148.0
117.7

156.3
122.2
199.8
148.6
118.8

154.8
120.8
199.3
146.3
116.5

154.4
120.6
200.0
145.3
116.2

149.3
110.0
198.1
141.0

45 Nondurable goods m aterials......................
46
Textile, paper, and chemical materials .
47
Textile m aterials..................................
48
Paper m aterials....................................
49
Chemical m aterials..............................
50
Containers, nondurable ..........................
51
Nondurable materials n.e.c.....................

10.47
7.62
1.85
1.62
4.15
1.70
1.14

174.9
182.9
121.0
143.2
226.1
164.5
136.7

173.1
180.1
119.0
139.9
223.0
167.3
135.6

173.0
180.7
117.0
140.8
224.7
162.0
138.2

174.6
182.8
122.2
146’2
224.1
163.1
137.5

175.8
184.3
120.6
146.7
227.5
162.9
138.2

176.7
185.9
124.4
148.1
228.2
161.8
136.9

177.2
186.1
124.3
148.6
228.4
166.1
134.4

178.3
186.7
123.2
148.4
230.2
168.1
137.4

179.5
187.8
123.7
148.2
232.0
169.6
138.8

180.8
188.6
122.3
146.3
234.8
174.1
138.5

178.6
185.8
122.6
139.9
231.9
172.6
139.6

176.3
183.6
120.3
140.4
228.8
167.5
140.2

173.0
180.0

52 Energy materials ........................................
53
Primary energy ........................................
54
Converted fuel m aterials........................

8.48
4.65
3.82

128.4
113.0
147.2

128.7
114.6
145.9

128.4
113.0
147.1

129.1
112.8
148.8

127.7
112.0
146.9

128.1
113.6
145.7

128.5
114.6
145.3

130.1
114.9
148.7

128.7
113.5
147.3

127.7
145.3

128.6
111.8
149.0

128.6
113.3
147.2

128.0

113.1

9.35
12.23
3.76
8.48

139.7
137.8
158.8
128.4

141.6
138.4
160.3
128.7

137.2
138.7
161.9
128.4

139.3
137.1
155.2
129.1

138.6
136.8
157.4
127.7

139.5
136.8
156.5
128.1

139.1
137.2
157.1
128.5

139.5
139.0
159.0
130.1

140.0
138.1
159.3
128.7

139.3
137.3
159.1
127.7

137.8
138.4
160.6
128.6

136.2

138.4
160.4

134.3
137.5

32
33
34
35

147.1

155.2
164.6

Supplementary groups

55 Home goods and clothing..........................
56 Energy, total ................................................
57
Products ....................................................
58
Materials ..................................................
For notes see opposite page.




128.6

128.0

Output
2.13

A49

Continued
Grouping

SIC
code

1967
pro­
por­
tion

1979

1979
age

Mar.

Apr.

July

Aug.

1980

Sept.

Oct.

Nov.

Dec.

Jan/

Feb.

Mar.P

A pr/

Index (1967 = 100)
M a jo r I n d u s t r y

12.05
6.36
5.69
3.88
87.95
35.97
51.98

1 Mining and utilities ....................
4
Electric ..................................
5 Manufacturing ..............................
6 Nondurable ..............................

144.5
125.3
166.1
185.8
153.2
163.3
146.3

143.5
122.3
167.1
188.8
154.5
163.0
148.6

143.8
P2.7
167.4
189.0
151.6
161.7
144.6

143.7
124.7
164.8
182.2
154.1
164.1
147.2

144.9
126.4
165.5
183.6
152.4
164.3
144.2

144.5
125.8
165.3
184.1
153.5
164.6
145.9

146.0
128.1
166.1
184.3
153.2
164.0
145.7

147.7
130.0
167.4
185.7
153.0
164.5
145.0

148.3
131.6
167.0
186.0
152.8
164.7
144.5

147.4
132.6
163.9
183.0
153.4
166.1
144.7

148.2
132.0
166.4

148.8
132.5
167.1

149.0
132.9
166.9

152.9
165.4
144.2

151.7
164.0
143.3

148.6
161.9
139.4

142.9
130.5

8
9
10
11

Mining
Metal .............................................
Coal ..............................................
Oil and gas extraction................
Stone and earth minerals ..........

10
11,12
13
14

.51
.69
4.40
.75

126.8
133.6
121.7
137.6

126.9
124.0
119.3
135.6

128.9
130.1
118.6
135.3

128.6
137.1
120.4
136.4

126.5
144.1
121.6
138.3

122.1
142.6
121.6
137.5

124.1
144.7
124.2
138.2

132.0
141.9
126.0
141.2

136.8
145.0
127.2
141.0

137.6
141.0
128.5
145.3

135.6
136.0
128.7
145.1

132.4
137.2
130.0
143.3

12
13
14
15
16

Nondurable manufactures
Foods .............................................
Tobacco products ........................
Textile mill products ..................
Apparel products ........................
Paper and products ....................

20
21
22
23
26

8.75
.67
2.68
3.31
3.21

147.9
117.1
143.8
130.7
150.8

147.6
123.3
142.3
136.5
149.0

147.0
120.0
141.2
130.8
148.7

149.4
118.9
143.0
129.7
154.0

148.1
107.5
144.1
130.1
153.9

148.8
115.6
146.9
131.2
155.3

148.6
115.6
146.0
128.5
154.1

148.3
113.0
147.9
128.8
153.3

148.9
116.6
147.1
128.3
154.7

150.0
118.7
147.8
127.2
156.0

151.2
118.0
145.4
127.3
150.4

150.6

152. O
'

149.2

Printing and publishing..............
Chemicals and products..............
Petroleum products ....................
Rubber and plastic products . . . .
Leather and products..................

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

136.9
210.4
143.6
270.0
71.3

137.3
207.4
143.8
270.4
72.9

135.7
207.7
145.4
265.5
69.6

135.6
210.5
143.9
278.0
69.7

137.7
213.1
143.0
275.7
69.7

137.1
212.0
143.1
272.9
70.8

137.2
211.4
141.1
274.5
70.1

136.2
215.1
142.1
271.3
70.4

137.8
216.5
142.6
262.3
71.2

138.9
217.7
146.7
266.9
73.2

139.9
216.7
144.9
265.7
72.1

139.0
213.8
141.9
262.0
72.3

138.7

Durable manufactures
22 Ordnance, private and
government ..........................
23 Lumber and products..................
24 Furniture and fixtures ................
25 Clay, glass, stone products........

19,91
24
25
32

3.64
1.64
1.37
2.74

75.5
136.9
161.4
163.3

75.4
137.7
163.5
164.9

75.1
137.2
159.4
161.2

74.6
135.2
159.5
163.3

74.9
138.0
161.7
161.4

75.3
138.6
162.0
160.6

75.3
138.7
163.3
162.3

77.0
136.1
162.9
162.8

77.0
131.7
161.0
164.4

76.6
131.6
161.0
165.1

76.3
130.3
158.8
162.3

75.1
122.9
158.7
158.4

26
27
28
29
30

Primary metals ............................
Iron and steel ..........................
Fabricated metal products..........
Nonelectrical machinery ............
Electrical machinery ..................

33
331,2
34
35
36

6.57
4.21
5.93
9.15
8.05

121.2
113.2
148.5
163.6
175.0

123.7
116.2
150.2
164.0
174.2

121.7
115.8
148.8
161.8
170.6

127.1
119.0
149.3
165.3
174.4

121.0
112.0
147.6
166.2
171.7

121.7
115.0
146.5
165.1
176.7

118.0
108.2
147.5
162.3
177.3

117.2
108.0
146.9
162.8
179.5

115.4
106.6
146.1
162.9
181.2

116.4
107.2
145.0
166.9
181.7

111.9
103.4
145.3
166.4
180.4

113.4
106.7
144.7
166.0
179.8

140.8
164.8
176.9

31 Transportation equipm ent..........
32
Motor vehicles and p a rts........
33
Aerospace and miscellaneous
transportation equipment
34 Instruments ..................................
35 Miscellaneous manufactures . . . .

37
371

9.27
4.50

135.3
160.0

143.7
179.7

131.6
156.0

135.5
160.2

124.7
138.5

131.7
150.6

133.7
150.6

128.2
139.9

125.9
135.4

122.4
127.6

126.2
135.4

124.3
131.5

116.0
115.7

372-9
38
39

4.77
2.11
1.51

112.0
174.9
153.7

109.7
177.3
154.5

108.6
176.3
152.3

112.2
174.0
155.7

111.8
173.9
155.7

113.9
172.9
153.6

117.7
175.0
154.5

117.1
173.3
155.3

117.0
175.0
153.7

117.5
175.8
154.0

117.5
175.0
152.0

117.4
174.9
151.4

116.2
173.5
149.4

17
18
19
20
21

143.2

137.9

75.2

109.0

Gross value (billions of 1972 dollars, annual rates)
M a jo r M a r k e t

36 Products, to ta l..............................

507.4

624.1

636.1

620.8

622.7

613.0

622.6

621.6

617.8

619.0

617.1

621.6

614.9

603.3

37 Final ...............................................
38
Consumer goods ......................
39
Equipment ................................
40 Intermediate ................................

390.92
277.52
113.42
116.62

479.9
326.3
153.7
144.2

491.0
334.7
156.3
145.1

476.4
323.9
152.5
144.4

479.6
326.0
153.6
143.2

468.8
319.2
149.6
144.2

478.8
323.6
155.2
143.8

477.6
324.6
153.0
144.0

474.4
321.9
152.5
143.4

475.2
321.6
153.6
143.8

472.7
319.6
153.1
144.5

478.5
322.9
155.6
143.1

474.0
321.0
153.0
140.9

465.4
313.0
152.5
137.8

1. The industrial production series has been revised. For a description of the
changes, see “Revision of Industrial Production Index” in the August 1979 Bui l e t i n , pp. 603-05.
2. 1972 dollars.




N o t e . Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D.C.), Decemher 1977.

A50
2.14

Domestic Nonfinancial Statistics □ May 1980
H OUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1979
1977

Item

1978

1980

1979
Sept.

Oct.

Nov.

Dec.

Jan.'

Feb.'

Mar.

Private residential real estate activity (thousands of units)
N ew U n its

1 Permits authorized ..................................
2
1-family ................................................
3 2-or-more-family..................................

1,677
1,125
551

1,801
1,183
618

1,539
971
568

1,775
1,015
760

1,542
927
615

1,263
751
512

1,244
780
464

1,264
761
503

1,142
695
447

941
535
406

4 Started ......................................................
5
1-family ................................................
6
2-or-more-family ..................................

1,987
1,451
536

2,020
1,433
587

1,745
1,194
551

1,874
1,237
637

1,710
1,139
571

1,522
980
542

1,548
1,055
493

1,419
1,002
417

1,332
789
543

1,041
606
435

7 Under construction, end of period1 . . .
8
1-family ................................................
9 2-or-more-family ..................................

1,208
730
478

1,310
765
546

1,140'
639'
501'

1,227'
716'
511'

1,212'
705'
507'

1,188'
687'
501'

1,160'
662'
498

1,165
670
495

1,107
630
477

n.a.
n.a.
n.a.

10 Completed .................................................
11
1-family ................................................
12 2-or-more-family ..................................

1,656
1,258
399

1,868
1,369
498

1,855'
1,286'
570'

1,963'
1,228'
735'

1,819'
1,255'
564

1,831
1,240'
591'

1,880'
1,328'
552

1,785
1,274
511

1,748
1,176
572

n.a.
n.a.
n.a.

13 Mobile homes shipped............................

277

276

277

270

287

251

241

276

270

n.a.

820
408

818
419

709'
402'

716
412

674
407

617'
399'

571'
398'

584
397

540
385

446
381

49.0
48.2

55.8
n.a.

65.0
n.a.

62.3
n.a.

63.9'
n.a.

61.5'
n.a.

63.3
n.a.

65.5
n.a.

63.8
n.a.

54.4

62.7

76.8

71.5

74.2'

72.6'

72.6

77.5

72.4

3,572

3,905

3,742

3,900

3,870

3,450

3,350

3,210

2,990

2,750

42.8
47.1

48.7
55.1

55.5
64.0

57.3
66.1

56.3
65.2

55.6
64.6

56.5
65.2

57.9
68.2

59.0
69.4

59.5
69.4

Merchant builder activity in 1-family
units
14 Number sold .............................................
15 Number for sale, end of period1 ..........
Price (thousand of dollars)2
Median
16 Units sold .............................................
17 Units for sale .......................................
Average
18 Units sold .............................................
E xisting U n its

62.7
n.a.
71.9'

(1-family)

19 Number sold ............................................
Price of units sold (thous. of dollars)2
20 Median .......................................................
21 Average .....................................................

Value of new construction3 (millions of dollars)
C o n s tr u c tio n

22 Total put in p lace ..................................

173,998

206,223

226,885

232,898'

238,707'

237,698'

242,009

249,966

243,126

228,996

23 Private .......................................................
24
R esidential............................................
25
Nonresidential, total ..........................
Buildings
Industrial ......................................
26
Commercial ..................................
27
Other ............................................
28
Public utilities and o th e r ................
29

135,824
80,957
54,867

160,403
93,425
66,978

178,168
97,574
80,594

181,966'
99,373'
82,593'

185,948'
100,663'
85,285'

185,802'
101,088'
84,714'

189,906
101,982
87,924

190,558
99,654
90,904

186,758
97,742
89,016

176,433
89,683
86,750

7,713
14,789
6,200
26,165

10,993
18,568
6,739
30,678

14,424
24,234
7,352
34,584

13.698
25,693
7,331
35,871'

15,019
26,663
7,851
35,752'

15,022
26,923
7,722
35,047'

15,249
28,857
8,194
35,624

15,559
30,707
9,090
35,548

15,306
29,423
8,444
35,843

14,038
29,032
8,455
35,225

30 Public ........................................................
Military ................................................
31
32
Highway ................................................
Conservation and development ........
33
34
Other4 ....................................................

38,172
1,428
8,984
3,862
23,898

45,821
1,498
10,286
4,436
29,601

48,722
1,629
11,167'
4,736'
31,190'

50,932
1,658
12,345
4,900
32,029

52,759'
1,778'
14,518
4,291'
32,172'

51,895'
1,742'
11,900
4,955'
33,298'

52.103
1.724
12,495'
5,186'
32,698'

59,409
1,844
15,586
5,225
36,754

56,368
1,753
15,192
5,263
34,160

52,563
1,777
12,574
5,582
32,630

1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly com­
parable 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.
4. Beginning January 1977 “Highway” imputations are included in “Other”.




N o t e . Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back and
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 14,000 jurisdictions through 1977, and
16,000 jurisdictions beginning with 1978.

Prices

A51

2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to

3 months (at annual rate) to

Item

1979
1979
Mar.

1 month to

1980

1979

1980

1980
Mar.
June

Sept.

Dec.

Mar.

Nov.

Dec.

Jan.

Feb.

Mar.

Index
level
Mar.
1980
(1967
= 100)1

C o n su m e r P r ic e s 2

1 All item s.....................................................

10.2

14.7

12.8

13.8

13.7

18.1

1.0

1.2

1.4

1.4

1.4

239.8

2 Commodities .............................................
3 Food .......................................................
4 Commodities less food .........................
5
Durable ..............................................
6
Nondurable ........................................
7 Services .....................................................
8 Rent .......................................................
9 Services less rent ..................................

10.4
12.8
9.4
9.9
8.8
9.9
6.7
10.3

13.7
7.3
16.6
9.8
25.3
16.1
8.9
17.2

12.7
6.4
15.6
9.4
24.7
13.2
8.2
13.9

13.3
6.5
16.4
9.1
25.2
14.3
10.2
14.9

12.5
12.1
12.7
13.2
12.8
15.8
9.0
16.9

16.1
3.8
22.1
7.6
39.8
20.9
8.3
22.8

1.0
.7
1.1
1.4
.8
1.1
.4
1.2

1.1
1.4
1.1
1.0
1.4
1.4
.4
1.5

1.4
0.0
2.0
1.1
3.2
1.4
.7
1.5

1.2
0
1.7
.5
3.0
1.5
.8
1.7

1.2
1.0
1.3
.2
2.4
1.9
.5
2.0

228.0
247.3
216.7
203.0
232.6
261.3
186.6
275.4

9.6
9.3
13.7

16.3
12.6
21.7

14.4
10.1
17.8

15.4
10.9
19.5

14.2
13.9
25.6

21.7
15.7
24.1

1.1
1.1
2.0

1.2
1.2
1.8

1.8
1.3
1.9

1.6
1.1
1.5

1.5
1.2
2.1

237.1
225.7
302.0

10.6
11.3
13.0
10.3
8.8
11.9
9.8

13.9
15.7
3.0
23.0
9.5
16.2
18.7

7.9
7.1
-9 .2
17.2
9.4
12.9
15.4

16.1
20.7
15.3
23.4
5.9
19.7'
19.4

12.9
14.0
8.3
17.3
9.4
15.5
16.5

19.3
21.8
- .9
34.9
13.3
16.6
23.7

1.2
1.4
1.9
1.1
.7
1.0'
.9

.8
.7
.2
1.0
.7
1.I'­
Ll

1.6
1.6
- .8
2.8
1.6
1.9'
3.0

1.5
1.8
-.5
2.9
.7
2.0'
1.7

1.4
1.6
1.1
1.9
.8
- .1
.7

238.2
240.6
233.0
242.0
231.8
279.2
275.7

20.1
19.9

24.3
- .6

23.1
-4.5

25.1
16.4

30.0
5.7

19.3
-16.7

1.7
1.0

2.6
.2

-1 .4
-2 .7

412.2
245.9

Other groupings

10 All items less fo o d ....................................
11 All items less food and energy.................
12 Homeownership ........................................
P r o d u c e r P ric es

13 Finished goods ..........................................
14 Consumer ..............................................
15
Foods .................................................
16
Excluding foods ................................
17 Capital equipment ................................
18 Materials ...................................................
19 Intermediate3 ........................................
Crude
20
Nonfood ..............................................
21
Food ...................................................

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.




2.8
-3.8

3.2
2.2

3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
S ource.

Bureau of Labor Statistics.

A52
2.16

Domestic Nonfinancial Statistics □ May 1980
GROSS NA TIO NAL PRO DUC T A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1979

1978
Account

1977

1978

1980

1979
Q4

Q1

Q2

Q3

Q4

QlP

G ross National Product
1 Total ...................................................................................

1,899.5

2,127.6

2,368.8

2,235.2

2,292.1

2,329.8

2,396.5

2,459.6'

2,520.3

2 Personal consumption expenditures ...........................
3 Durable goods .........................................................
4 Nondurable goods ...................................................
5 Services ....................................................................

1,210.0
178.8
481.3
549.8

1,350.8
200.3
530.6
619.8

1,509.8
213.0
596.9
699.8

1,415.4
212.1
558.1
645.1

1,454.2
213.8
571.1
669.3

1,475.9
208.7
581.2
686.0

1,528.6
213.4
604.7
710.6

1,580.4
216.2
630.7
733.5

1,634.1
221.8
653.0
759.4

6 Gross private domestic investment............................

10
11
12

Fixed investment .....................................................
Nonresidential .....................................................
Structures...........................................................
Producer’s durable equipm ent.........................
Residential structures ..........................................
Nonfarm.............................................................

303.3
281.3
189.4
62.6
126.8
91.9
88.8

351.5
329.1
221.1
76.5
144.6
108.0
104.4

387.2
369.0
254.9
92.6
162.2
114.1
110.2

370.5
349.8
236.1
84.4
151.8
113.7
110.0

373.8
354.6
243.4
84.9
158.5
111.2
107.8

395.4
361.9
249.1
90.5
158.6
112.9
109.1

392.3
377.8
261.8
95.0
166.7
116.0
112.0

387.2
381.7
265.2
100.2
165.1
116.4
112.1

388.8
384.3
271.6
102.6
169.0
112.7
108.3

13
14

Change in business inventories ..............................
Nonfarm ...............................................................

21.9
20.7

22.3
21.3

18.2
16.5

20.6
19.3

19.1
18.8

33.4
32.6

14.5
12.6

5.6
2.1

4.5
4.1

15 Net exports of goods and services..............................
16 Exports ....................................................................
17 Imports ....................................................................

-9 .9
175.9
185.8

-10.3
207.2
217.5

-4 .6
257.5
262.1

-4.5
224.9
229.4

4.0
238.5
234.4

-8.1
243.7
251.9

-2.3
267.3
269.5

-11.9
280.4
292.4

-21.0
299.4
320.4

18 Government purchases of goods and services...........
19 Federal ......................................................................
20 State and local .........................................................

396.2
144.4
251.8

435.6
152.6
283.0

476.4
166.6
309.8

453.8
159.0
294.8

460.1
163.6
296.5

466.6
161.7
304.9

477.8
162.9
314.9

501.2
178.4
322.8

518.3
187.3
331.0

21 Final sales, to ta l...........................................................
22 G oods........................................................................
23
Durable ................................................................
24
Nondurable ...........................................................
25 Services ....................................................................
26 Structures ................................................................

1,877.6
842.2
345.9
496.3
866.4
190.9

2,105.2
930.0
380.4
549.6
969.3
228.2

2,350.6
1,030.5
423.1
607.4
1,085.1
253.2

2,214.5
983.8
402.3
581.6
1,005.3
246.0

2,272.9
1,011.8
425.5
586.2
1,041.4
238.9

2,296.4
1,018.1
422.4
595.7
1,064.2
247.5

2.381.9
1,036.0
424.4
611.6
1,100.6
259.8

27 Change in business inventories ..................................
28 Durable goods .........................................................
29 Nondurable goods ...................................................

21.9
11.9
10.0

22.3
13.9
8.4

18.2
13.0
5.2

20.6
13.4
7.2

19.1
18.4
.7

33.4
24.3
9.1

14.5
7.3
7.2

5.6
1.8
3.8

4.5
-8 .0
12.5

30 Memo. Total GNP in 1972 d ollars..............................

1,340.5

1,399.2

1,431.6

1,426.6

1,430.6

1,422.3

1,433.3

1,440.3

1,444.2

31 Total ...................................................................................

1,525.8

1,724.3

1,925.6

1,820.0

1,869.0

1,897.9

1,941.9

1,990.4'

32 Compensation of employees ......................................
33 Wages and salaries...................................................
34
Government and government enterprises..........
35
Other ....................................................................
36 Supplement to wages and salaries...........................
37
Employer contributions for social insurance---38
Other labor income ..............................................

1,156.9
984.0
201.3
782.7
172.9
81.2
91.8

1,304.5
1,103.5
218.0
885.5
201.0
94.6
106.5

1,227.4
1,459.2
233.5
993.9
231.8
109.1
122.7

1,364.8
1,154.7
225.1
929.6
210.1
98.2
111.9

1,411.2
1,189.4
228.1
961.3
221.8
105.8
116.0

1,439.7
1,211.5
231.2
980.3
228.2
107.9
120.3

1,472.9
1,238.0
234.4
1,003.6
234.8
109.9
124.9

1,513.2
1,270.7
240.2
1,030.5
242.5
113.0
129.6

1,552.4
1,301.0
243.4
1,057.6
251.4
117.0
134.4

39 Proprietors’ income1 ...................................................
40 Business and professional1 ......................................
41 Farm1 ........................................................................

100.2
80.5
19.6

116.8
89.1
27.7

130.8
98.0
32.8

125.7
94.4
31.3

129.0
94.8
34.2

129.3
95.5
33.7

130.3
99.4
30.9

134.5
102.1
32.5

131.3
102.9
28.4

By source

7
8
9

By major type of product

2,451.4
1,056.3
420.2
636.1
1,134.0
266.6'

2,515.8
1,085.6
422.8
662.8
1,167.6
267.0

National Income
n.a.

42 Rental income of persons2 ..........................................

24.7

25.9

26.9

27.1

27.3

26.8

26.6

27.0

27.0

43 Corporate profits1 .......................................................
44 Profits before tax3 ...................................................
45 Inventory valuation adjustm ent..............................
46 Capital consumption adjustm ent............................

150.0
177.1
-15.2
-12.0

167.7
206.0
-25.2
-13.1

179.0
237.4
-41.8
-16.7

184.8
227.4
-28.8
-13.8

178.9
233.3
-39.9
-14.5

176.6
227.9
-36.6
-14.7

180.8
242.3
-44.0
-17.6

176.4'
243.0'
-46.5
-20.1

n.a.
n.a.
-63.7
-22.2

47 Net in terest..................................................................

94.0

109.5

129.7

117.6

122.6

125.6

131.5

139.2

147.2

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.
S ource.

Survey of Current Business (Department of Commerce).

National Income Accounts

A53

2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1978
1977

1979

1980

1978
Q4

Ql

Q2

Q3

Q4

Q lp

P erso na l I n com e and S aving

1 Total personal in com e..................................

2 Wage and salary disbursements...................
3 Commodity-producing industries.............
4
Manufacturing........................................
5 Distributive industries ..............................
6 Service industries ......................................
7 Government and government enterprises

1.531.6

1,717.4

1.924.2

1.803.1

1.852.6

1,892.5

1.946.6

2.005.0

2.056.6

984.0
343.1
266.0
239.1
200.5
201.3

1.103.3
387.4
298.3
269.4
228.7
217.8

1,227.6
435.2
330.9
300.8
257.9
233.7

1.154.3
408.6
312.7
281.6
239.4
224.7

1,189.3
423.0
324.8
291.1
247.2
228.0

1.212.4
431.7
328.5
295.8
252.8
232.1

1,238.1
438.3
331.9
304.0
261.3
234.5

1,270.5
447.8
338.3
312.4
270.2
240.1

1,301.1
458.7
346.1
319.3
279.6
243.6

129.6
134.5

8
9
10
11
12
13
14
15
16

Other labor incom e...................................................
Proprietors’ income1 .................................................
Business and professional1 ....................................
Farm1 ......................................................................
Rental income of persons2 ........................................
Dividends ..................................................................
Personal interest incom e............................................
Transfer payments .....................................................
Old-age survivors, disability, and health insurance
benefits ...........................................................

91.8
100.2
80.5
19.6
24.7
42.1
141.7
208.4

106.5
116.8
89.1
27.7
25.9
47.2
163.3
224.1

122.7
130.8
98.0
32.8
26.9
52.7
192.1
252.0

111.9
125.7
94.4
31.3
27.1
49.7
174.3
231.8

116.0
129.0
94.8
34.2
27.3
51.5
181.0
237.3

120.3
129.3
95.5
33.7
26.8
52.3
187.6
243.6

124.9
130.3
99.4
30.9
26.6
52.8
194.4
260.8

32.5
27.0
54.4
205.5
266.5

134.4
131.3
102.9
28.4
27.0
56.7
217.9
274.6

105.0

116.3

132.4

121.5

123.8

127.1

138.7

140.0

142.2

17

L ess : Personal contributions for social insurance

61.3

69.6

80.7

71.8

78.7

79.8

81.2

82.9

86.4

1.531.6

1.717.4

1.924.2

1.803.1

1.852.6

1.892.5

1.946.6

2.005.0

2.056.6

18 E q ua ls : Personal income .......................................

102.1

L ess : Personal tax and nontax payments.............

226.4

259.0

299.9

278.2

280.4

290.7

306.6

321.9

320.0

20 E q u a ls : Disposable personal income .....................

1.305.1

1.458.4

1.629.3

1,524.8

1,572.2

1.601.7

1,640.0

1.683.1

1.736.5

21

L ess : Personal outlays...........................................

1.240.2

1.386.4

1,550.5

1.453.4

1,493.0

1.515.8

1.569.7

1,623.4

1.677.6

22 E q u a ls : Personal saving .........................................

65.0

72.0

73.8

71.5

79.2

85.9

70.3

59.7

58.9

6,181
3,974
4,285
5.0

6,402
4,121
4,449
4.9

6,494
4,194
4,512
4.5

6,506
4,197
4,522
4.7

6,514
4,197
4,536
5.0

6,459
4,155
4,510
5.4

6,494
4,195
4,501
4.3

6,509
4,227
4,502
3.5

6,511
4,234
4,499
3.4

276.1

324.6

363.9

346.9

362.2

374.3

367.3

351.9

295.6
65.0
35.2
-15.2

324.9
72.0
36.0
-25.2

350.1
73.8
33.4
-41.8

336.1
71.5
40.1
-28.8

345.2
79.2
36.1
-39.9

360.5
85.9
35.6
-36.6

352.1
70.3
34.0
-44.0

342.6
59.7
27.8
-46.5

n.a.
58.9
n.a.
-63.7

121.3
74.1

132.9
84.0

147.7
95.3

136.8
87.7

139.9
89.9

145.1
93.9

150.4
97.5

155.3
99.8

159.6
103.7

-19.5
-46.3
26.8

- .3
-27.7
27.4

13.5
-11.2
24.7

10.8
-16.3
27.1

15.8
-11.7
27.6

12.7
-7 .0
19.7

14.0
-11.3
25.3

10.0"
-1 5 .7 '
25.8'

19

M em o:

Per capita (1972 dollars)
23 Gross national p ro d u ct...................
24 Personal consumption expenditures
25 Disposable personal incom e...........
26 Saving rate (percent) . .........................
G ross S aving

27 Gross saving
28
29
30
31

Gross private saving ...................................................
Personal saving.............................................................
Undistributed corporate profits1 ................................
Corporate inventory valuation adjustm ent...............
Capital consumption allowances

32 Corporate ....................................................................
33 Noncorporate ...............................................................
34 Wage accruals less disbursements..............................
35 Government surplus, or deficit ( —), national income

36
37

and product accounts............................................
Federal ......................................................................
State and local .........................................................

1.1

40 Gross private domestic .
41 Net foreign ...................
42 Statistical discrepancy

283.6

1.1

1.1

1.1

1.1

362.8

373.1

375.6

359.1

352.0

373.8
-11.0

395.4
-22.3

392.3
-16.7

387.2
-28.1

388.8
-36.7

303.3
-19.6

351.5
-23.5

387.2
-19.5

370.5
-19.4

7.5

3.3

2.9

4.1

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




1.1

367.6

38 Capital grants received by the United States, net
39 Gross investment .............................................................

n.a.
n.a.

7.2'

So u r c e . Survey of Current Business (Department of Commerce).

A54
3.10

International Statistics □ May 1980
U .S. INTERNATIO NAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1978
Item credits or debits

1977

1978

1979

1979
Q4

1 Balance on current account .................................................
2 Not seasonally adjusted.....................................................

Q2

Ql

Q3

Q4

-14,092

-13,467

-317

105
1,130

274
1,737

-810
-178

1,139
-2,717

-923
841

3
4
5
6
7
8
9

Merchandise trade balance2 .............................................
Merchandise exports .....................................................
Merchandise imports .....................................................
Military transactions, net .................................................
Investment income, net3 ...................................................
Other service transactions, n e t ..........................................
MEMO: Balance on goods and services3 4 .......................

-30,873
120,816
-151,689
1,679
17,989
1,783
-9,423

-33,759
142,054
-175,813
492
21,645
3,241
-8,381

-29,450
182,074
-211,524
-1,181
32,314
3,648
5,332

-5,951
39,421
-45,372
-239
6,599
1,010
1,419

-6,197
41,435
-47,632
34
6,814
945
1,596

-7,409
42,890
-50,299
-217
7,414
765
553

-7,248
47,235
-54,483
-418
9,174
1,000
2,508

-8,596
50,514
-59,110
-580
8,912
935
671

10
11

Remittances, pensions, and other transfers.....................
U.S. government grants (excluding military)...................

-1,895
-2,775

-1,934
-3,152

-2,160
-3,488

-524
-790

-517
-805

-466
-897

-497
-872

-680
-914

12 Change in U.S. government assets, other than official re­
serve assets, net (increase, - ) ......................................

-3,693

-4,656

-3,780

-994

-1,094

-1,001

-763

-922

13 Change in U.S. official reserve assets (increase, - ) .........
14 Gold ...................................................................................
15 Special drawing rights (S D R s)..........................................
16 Reserve position in International Monetary F u n d .........
17 Foreign currencies .............................................................

-375
-118
-121
-294
158

732
-65
1,249
4,231
-4,683

-1,107
-65
-1,136
-189
283

182
-65
1,412
3,275
-4,440

-3,585
0
-1,142
-86
-2,357

343
0
6
-7 8
415

2,779
0
0
-5 2
2,831

-644
-6 5
0
27
-606

18 Change in U.S. private assets abroad (increase, - ) 3 .......
19 Bank-reported claim s.........................................................
20 Nonbank-reported claims .................................................
21 U.S. purchase of foreign securities, n e t ..........................
22 U.S. direct investments abroad, net3 ..............................

-31,725
-11,427
-1,940
-5,460
-12,898

-57,033
-33,023
-3,853
-3,487
-16,670

-58,536
-26,089
-2,718
-4,967
-24,762

-29,442
-21,980
-1,898
-918
-4,646

-2,943
'6,572
-2,719
-1,056
-5,740

-15,494
-8,266
668
-629
-7,267

-26,825
-17,127
-667
-2,164
-6,867

-13,273
-7,268
n.a.
-1,118
-4,887

23 Change in foreign official assets in the United States
(increase, + ) ..................................................................
24 U.S. Treasury securities ...................................................
25 Other U.S. government obligations ................................
26 Other U.S. government liabilities5 ..................................
27 Other U.S. liabilities reported by U.S. b an k s.................
28 Other foreign official assets6 ............................................

36,656
30,230
2,308
1,240
773
2,105

33,758
23,542
656
2,754
5,411
1,395

-15,192
-22,470
465
-748
6,553
1,008

18,764
13,422
-115
2,045
3,156
256

-9,391
-8,872
-5
-164
-563
213

-10,043
-12,859
94
257
2,321
145

5,745
5,030
335
191
83
106

-1,503
-5,769
41
-1,031
4,712
544

14,167
6,719
473

29,956
16,975
1,640

49,094
32,702
1,118

10,475
7,556
-177

10,868
7,157
-651

16,100
12,067
1,086

18,544
13,006
683

3,582
472
n.a.

534
2,713
3,728

2,180
2,867
6,294

4,725
2,874
7,674

1,549
540
1,007

2,583
790
989

-239
1,161
2,025

1,460
605
2,790

921
319
1,871

0
-937

0
10,711

1,139
28,699

0
910
1,291

1,139
4,732
1,117

0
10,904
482

0
-619
-3,821

0
13,682
2,222

-937

10,711

28,699

-381

3,615

10,422

3,202

11,460

29 Change in foreign private assets in the United States
(increase, + )3 ................................................................
30 U.S. bank-reported liabilities............................................
31 U.S. nonbank-reported liabilities......................................
32 Foreign private purchases of U.S. Treasury securities,
net ................................................................................
33 Foreign purchases of other U.S. securities, n e t .............
34 Foreign direct investments in the United States, net3 . ..
35 Allocation of SDRs ...............................................................
36 Discrepancy ............................................................................
37 Owing to seasonal adjustm ents........................................
38 Statistical discrepancy in recorded data before seasonal
adjustment ..................................................................
M em o :

Changes in official assets
U.S. official reserve assets (increase, - ) .........................
Foreign official assets in the United States
(increase, + ) ...............................................................
41 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 23
above) ..............................................................................
42 Transfers under military grant programs (excluded from
lines 4, 6, and 11 above)...............................................
39
40

-375

732

-1,107

182

-3,585

343

2,779

-644

35,416

31,004

-14,444

16,719

-9,227

-10,299

5,554

-472

6,351

-727

4,737

1,803

-1,916

151

1,658

4,844

204

259

288

63

31

48

84

124

1. Seasonal factors are no longer calculated for lines 13 through 42.
2. Data are on an international accounts (IA) basis. Differs from the census
basis primarily because the IA basis includes imports into the U.S. Virgin Islands,
and it excludes military exports, which are part of line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Differs from the definition of “net exports of goods and services” in the
national income and product (GNP) account. The GNP definition makes various
adjustments to merchandise trade and service transactions.




5. Primarily associated with military sales contracts and other transactions ar­
ranged with or through foreign official agencies.
6. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
N o t e . Data are from Bureau of Economic Analysis, Survey of Current Business
(U.S. Department of Commerce).

Trade a n d R eserve A ssets
3.11

A55

U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1979

1980

Item
Sept.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments .......................................
2

GENERAL IMPORTS including mer­
chandise for immediate consump­
tion plus entries into bonded
warehouses ..................................

3 Trade balance ....................................

121,150

143,578

181,637

15,822

Oct.

16,680

Nov

16,928

Dec.

16,742

Jan.

Feb.

17,348

17,233

Mar.

18,534

147,685

171,978

206,326

18,407

19,037

18,548

19,665

20,945

21,640

20,607

-26,535

-23,400

-24,690

-2,585

-2,357

-1,620

-2,923

-3,597

-4,407

-2,073

N o t e . 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 international-accounts-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 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.
S o u r c e . FT 900 “Summary of U.S. Export and Import Merchandise Trade”
(U.S. Department of Commerce, Bureau of the Census).

3.12 U.S. RpSERVE ASSETS
Millions of dollars, end of period
1979
Type

1977

1978

1980

1979
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

1 Total1 .....................................................

19,312

18,650

18,928

17,994

19,261

18,928

20,962

20,840

21,448

21,521

2 Gold stock, including Exchange Stabili­
zation Fund1 .......... ; ........................

11,719

11,671

11,172

11,194

11,112

11,172

11,172

11,172

11,172

11,172

3 Special drawing rights2-3 ........................

2,629

1,558

2,724

2,659

2,705

2,724

3,871

3,836

3,681

3,697

4 Reserve position in International Mone­
tary Fund2 ........................................
5

4,946

1,047

1,253

1,238

1,322

1,253

1,251

1,287

1,222

1,094

Foreign currencies4 ................................

18

4,374

3,779

2,903

4,122

3,779

4,668

4,545

5,373

5,558

1. Gold held under earmark at Federal Reserve Banks for foreign and inter­
national accounts is not included in the gold stock of the United States; see table
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of 16 member countries.
The U!s! SDR holdings and reserve position in the IMF also are valued on this
basis beginning July 1974.




3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan.
1, 1972; and $1,139 million on Jan. 1, 1979; plus net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.

A56
3.13

International Statistics □ May 1980
FOREIGN BRANCH ES OF U .S. BANKS

Balance Sheet Data

Millions of dollars, end of period
1979

Asset account

1976

1977

1980

19781

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb .p

All foreign countries
1 Total, all currencies.................................

219,420

258,897

306,795

350,441

360,817

358,320

365,587

364,166'

361,597

374,102

2 Claims on United S ta te s.......................
3 Parent b a n k ........................................

Other .................................................

7,889
4,323
3,566

11,623
7,806
3,817

17,340
12,811
4,529

41,917
35,203
6,714

37,758
30,004
7,754

34,880
28,046
6,834

37,606
31,133
6,473

32,279r
25,926'
6,353'

32,750
25,839
6,911

40,780
32,949
7,831

5 Claims on foreigners.............................
6 Other branches of parent b a n k ........
7 Banks .................................................
8 Public borrowers2 ..............................
9 Nonbank foreigners ...........................

204,486
45,955
83,765
10,613
64,153

238,848
55,772
91,883
14,634
76,560

278,135
70,338
103,111
23,737
80,949

295,011
74,749
111,190
25,132
83,940

309,004
80,106
117,994
25,777
85,127

309,652
80,126
119,253
25,288
84,985

313,409
79,076
122,004
25,568
86,761

317,133'
79,664
123,335'
26,060'
88,074

313,884
75,457
125,052
25,784
87,591

316,890
78,223
124,416
25,833
88,418

4

10 Other assets............................................

7,045

8,425

11,320

13,513

14,055

13,788

14,572

14,754'

14,963

16,432

11 Total payable in U.S. d ollars................

167,695

193,764

224,940

259,035

263,630

263,094

266,544

267,645'

266,343

277,982

12 Claims on United S ta te s.......................
13 Parent b a n k ........................................
14 Other .................................................

7,595
4,264
3,332

11,049
7,692
3,357

16,382
12,625
3,757

40,799
34,939
5,860

36,527
29,773
6,754

33,638
27,674
5,964

36,362
30,652
5,710

31,148'
25,629'
5,519'

31,665
25,567
6,098

39,543
32,569
6,974

15 Claims on foreigners .............................
16 Other branches of parent b a n k .........
17 Banks ...........................................................
18 Public borrowers2 ..............................
19 Nonbank foreigners ...........................

156,896
37,909
66,331
9,022
43,634

178,896
44,256
70,786
12,632
51,222

203,498
55,408
78,686
19,567
49,837

211,663
58,255
83,466
20,988
48,954

220,665
62,058
88,882
21,439
48,286

222,543
61,918
90,911
20,909
48,805

223,201
60,397
92,730
21,160
48,914

229,077'
61,528
96,183'
21,618'
49,748

226,811
58,084
97,877
21,523
49,317

228,892
60,217
97,187
21,598
49,890

20 Other assets............................................

3,204

3,820

5,060

6,573

6,438

6,913

6,981

7,420'

7,867

9,547

United Kingdom
21 Total, all currencies................................

81,466

90,933

106,593

120,703

126,091

127,949

131,959

130,873

128,417

133,793

22 Claims on United S ta te s.......................
23
Parent b a n k ........................................
24
Other .................................................

3,354
2,376
978

4,341
3,518
823

5,370
4,448
922

10,559
8,520
2,039

10,687
8,395
2,292

11,653
9,643
2,010

11,841
9,892
1,949

11,114
9,335
1,779

10,147
8,207
1,940

10,697
8,584
2,113

25 Claims on foreigners ............................
26
Other branches of parent b a n k .........
27
Banks .................................................
28
Public borrowers2 ..............................
29 Nonbank foreigners ...........................

75,859
19,753
38,089
1,274
16,743

84.016
22.017
39,899
2,206
19,895

98,137
27,830
45,013
4,522
20,772

106,394
31,800
46,625
4,639
23,330

111,598
32,998
49,938
4,882
23,780

112,450
32,464
51,466
4,646
23,874

115,656
33,487
52,580
4,868
24,721

115,126
34,294
51,343
4,919
24,570

113,617
31,995
52,177
4,559
24,886

118,212
35,187
53,127
4,499
25,399

30 Other assets............................................

2,253

2,576

3,086

3,750

3,806

3,846

4,462

4,633

4,653

4,884

31 Total payable in U.S. d ollars................

61,587

66,635

75,860

85,380

89,032

91,485

93,502

94,287

91,760

96,228

32 Claims on United S ta te s.......................
33
Parent b a n k ........................................
34
Other ..........................................................

3,375
2,374
902

4,100
3,431
669

5,113
4,386
727

10,146
8,443
1,703

10,169
8,343
1,826

11,164
9,485
1,679

11,352
9,697
1,655

10,743
9,294
1,449

9,820
8,161
1,659

10,285
8,467
1,818

35 Claims on foreigners ..................................
36 Other branches of parent b a n k .........
37 Banks .................................................
38
Public borrowers2 ....................................
39 Nonbank foreigners ...........................

57,488
17,249
28,983
846
10,410

61,408
18,947
28,530
1,669
12,263

69,416
22,838
31,482
3,317
11,779

73,503
26,983
31,318
3,210
11,992

77,145
27,631
34,276
3,336
11,902

78,428
27,092
36,183
3,206
11,947

80,127
27,993
36,604
3,311
12,219

81,297
28,931
36,760
3,319
12,287

79,740
26,842
37,487
3,274
12,137

83,603
29,907
38,185
3,253
12,258

40 Other assets............................................

824

1,126

1,331

1,731

1,718

1,893

2,023

2,247

2,200

2,340

Bahamas and Caymans
41 Total, all currencies................................

66,774

79,052

91,735

113,512

109,925

106,484

108,872

108,910'

112,132

118,557

42 Claims on United S ta te s ...........................
43
Parent b a n k ........................................
44
Other .................................................

3,508
1,141
2,367

5,782
3,051
2,731

9,635
6,429
3,206

29,021
24,929
4,092

24,731
19,919
4,812

21,394
17,131
4,263

23,856
19,868
3,988

19,104'
15,196'
3,908'

20,827
16,417
4,410

27,814
22,986
4,828

45 Claims on foreigners ............................
46
Other branches of parent b a n k ........
47
Banks ..........................................................
48 Public borrowers2 ....................................
49 Nonbank foreigners ...........................

62,048
8,144
25,354
7,105
21,445

71,671
11,120
27,939
9,109
23,503

79,774
12,904
33,677
11,514
21,679

81,370
10,745
37,261
12,619
20,745

82,296
10,834
38,425
12,757
20,280

82,068
10,514
38,820
12,355
20,379

81,959
8,854
40,050
12,658
20,397

86,673'
9,689
43,111'
12,893'
20,980'

87,868
10,242
44,044
12,895
20,687

86,887
10,265
42,434
13,108
21,080

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

1,217

1,599

2,326

3,121

2,898

3,022

3,057

51 Total payable in U.S. d ollars ..................

62,705

73,987

85,417

106,767

103,034

99,715

101,932

50 Other assets

For notes see opposite page.




3,133

102,302'

3,437

3,856

106,199

112,222

A 57

O versea s B ranches
3.13

Continued

1979
1976

Liability account

1977

1980

1978'
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb./*

All foreign countries
52 Total, all currencies .................................

219,420

258,897

306,795

350,441

360,817

358,320

365,587

364,166'

361,597

374,102

53 To United States .....................................
54
Parent bank ...........................................
55
Other banks in United S ta tes............
56
Nonbanks ...............................................

32.719
19.773

44.154
24.542

67.744
20.242
17.785
29.717

67.505
21.343
18.581
27.581

65,998
21.317
14.713
29.968

62.179
19.274
13.897
29,008

66,567'
24,275
15,129'
27.163'

71,449
25,874
13,199
32,276

71,920
23,675
14,837
33,408

270.328
72.977
117.794
33.511
46.046

280.391
78.413
117.853
36.196
47.929

279.240'
78,005'
116,058
35,921
49,256

289.555
77.188
128.024
34.958
49.385

283.330
77,601
122.832'
35,664
47.233'

276,230
72,884
122,043
33,195
48,108

286,296
73,619
130,268
34,208
48,201

13,082'

13.853

14,269'

13,918

15,886

12.946

19.613

179.954
44.370
83.880
25.829
25.877

}

57 To foreigners.............................................
58
Other branches of parent bank ........
59
Banks .....................................................
60
Official institutions ...............................
61
Nonbank foreigners .............................

57.948
28.464
12.338
17.146

206.579
53.244
94.140
28.110
31.085

238.912
67.496
97.711
31.936
41.769

62 Other liabilities .........................................

6.747

8.163

9.935

12.369

12.921

63 Total payable in U.S. d o lla r s................

173,071

198,572

230,810

264,339

269,811

268,769

272,166

273,752'

271,783

284,169

64 To United States .....................................
65
Parent bank ...........................................
66
Other banks in United S ta te s............
67
N onbanks...............................................

31.932
19.599
12.373

42.881
24.213
18.669

55.811
27.393
12.084
16.334

65.126
19.192
17.345
28.589

64.882
20.177
18,140
26.565

63,408
20,089
14,375
28.944

59,889
18,089
13,698
28.102

64.479'
23.216'
14.932
26.331'

69,065
24,735
12,869
31,461

69,410
22,454
14,430
32,526

68 To foreigners.............................................
69
Other branches of parent bank ........
70
Banks .....................................................
71
Official institutions...............................
72
Nonbank foreigners ............................

137.612
37.098
60.619
22.878
17.017

151.363
43.268
64.872
23.972
19.251

169.927
53.396
63.000
26.404
27.127

192.481
56.840
78.006
27.468
30.167

197.993
60.656
76.032
29.932
31.373

198.229'
60,413'
74,852
29.653
33,311

204,654
59.429
83.605
28.521
33.099

201.462
60.513
80.674'
29.048
31.227'

195,232
56,779
80,987
26,813
30,653

205,528
57.714
89,254
27.714
30,846

73 Other liabilities .........................................

3.527

4.328

5.072

6.732

6.936

7,132'

7.623

7.811'

7,486

9,231

}

United Kingdom
74 Total, all currencies .................................

81,466

90,933

106,593

120,703

126,091

127,949

131,959

130,873

128,417

133,793

75 To United States .....................................
76
Parent bank ...........................................
77
Other banks in United S ta tes............
78
N onbanks...............................................

5.997
1.198

7.753
1.451

4.798

6.302

9.730
1.887
4.232
3.611

17.174
2.669
6.155
8.350

18,502
2.070
7.790
8.642

19.730
2.258
8,004
9.468

19.612
2.516
7.381
9.715

20.986
3,104
8.715
9.167

20,378
3,014
7,631
9,733

20,808
2,758
7,627
10,423

73.228
7.092
36.259
17.273
12,605

80.736
9.376
37.893
18.318
15,149

93.202
12.786
39,917
20,963
19.536

98.557
11.507
46.256
21.825
18.969

102,533
13,045
44.913
24.461
20.114

103,093
13,139
44,440
24,438
21,076

106.766
12.463
49,299
23,060
21,944

104,032
12,567
47.620
24,202
19,643

102,117
11,458
48,872
21,944
19,843

106,524
11,099
53,031
22,890
19,504

}

79 To foreigners.............................................
80
Other branches of parent bank ........
81
Banks .....................................................
82
Official institutions...............................
83
Nonbank foreigners .............................
84 Other liabilities .........................................

2,241

2.445

3.661

4.972

5.056

5,126

5,581

5,855

5,922

6,461

85 Total payable in U.S. d o lla r s................

63,174

67,573

77,030

86,642

90,682

92,817

94,983

95,449

92,771

97,395

86 To United States .....................................
87
Parent bank ...........................................
88
Other banks in United S ta te s............
89
N onbanks...............................................

5,849
1,182
4,667

7,480
1.416
6.064

9.328
1.836
4.144
3,348

16.572
2,613
6.068
7.891

17,868
1,966
7.715
8.187

19,187
2,196
7,940
9,051

19.138
2.467
7.338
9,333

20,552
3,054
8,673
8,825

19,827
2,968
7,569
9,290

20,206
2,724
7,467
10,015

90 To foreigners.............................................
91
Other branches of parent bank ........
92
Banks .....................................................
93
Official institutions...............................
94
Nonbank foreigners ............................

56,372
5,874
25,527
15,423
9,547

58,977
7,505
25,608
15,482
10,382

66,216
9,635
25,287
17,091
14.203

68.035
7.720
28.698
18,119
13,498

70.730
8,663
26,851
20,703
14,513

71,561
8,955
26,132
20,457
16,017

73.542
8,337
29,424
19,139
16,642

72,397
8.446
29,424
20.192
14,335

70,597
7,793
30,988
18,117
13,699

74,705
7,322
34,694
18,923
13,766

95 Other liabilities .........................................

953

1,116

1,486

2,035

2,084

2,069

2,303

2,500

2,347

2,484

}

Bahamas and Caymans
66,774

79,052

91,735

113,512

109,925

106,484

108,872

108,910'

112,132

118,557

22,721
16,161

32,176
20,956

6,560

11,220

39,431
20,356
6,199
12,876

41,734
11,117
10,192
20,425

40,582
13,525
8.947
18,110

38,294
12,864
5,757
19,673

34,995
10,937
5,545
18,513

37,668'
15,080'
5,343
17,245'

44,200
17,912
4,609
21,679

44,206
15,732
6,299
22,175

101 To foreigners.............................................
102
Other branches of parent b a n k ........
103
Banks .....................................................
104 Official institutions...............................
105
Nonbank foreigners .............................

42,899
13,801
21,760
3,573
3,765

45,292
12,816
24,717
3,000
4,759

50,447
16,094
23,104
4,208
7,041

69,373
20,246
35,121
4,751
9,255

67,017
20,730
32,799
4,418
9,070

65,822'
19,206'
32,266
4,712
9,638

71,259
21,078
36,498
5,176
8,507

68,584
20,875
33,614'
4,866
9,229'

65,232
20,559
30,503
5,020
9,150

71.149
22.150
34,717
5,003
9,279

106 Other liabilities.........................................

1,154

1,584

1,857

2,405

2,326

2,368'

2,618

2,658'

2,700

3,202

74,463

87,014

107,623

104,113

103,339

103,393'

107,183

113,647

96 Total, all currencies .................................
97 To United States .....................................
98
Parent bank ...........................................
99
Other banks in United S ta tes............
100
N onbanks...............................................

107 Total payable in U.S. d o lla rs................

}

63,417

1. In May 1978 the exemption level for branches required to report was increased, which reduced the number of reporting branches.
2. In May 1978 a broader category of claims on foreign public bor-




100,820

rowers, including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official institutions.

A58
3.14

International Statistics □ May 1980
SELECTED U .S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1979
Item

1977

1980

1979'

1978'

Sept.'

1 Total1 ........................................................................

5
6

By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3 ........................
U.S. Treasury bonds and notes
Marketable ...............................................................
Nonmarketable4 .......................................................
U.S. securities other than U.S. Treasury securities5

1
8
9
10
11
12

By area
Western Europe1 .........................................................
Canada ...........................................................................
Latin America and C aribbean..................................
Asia ................ ...........................................................
Africa .............................................................................
Other countries6

2
3

4

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

Nov.'

D ec.'

Jan.

Feb.P

Mar . p

131,097

162,521

149,508

149,807

146,871

141,575

149,508

145,985

144,991

141,773

18,003
47,820

23,258
67,671

30,476
47.666

25,596
50,842

25,041
49,411

26,857
43,921

30,476
47.666

24,750
48,864

24,469
48,234

27,106
42,655

32,164
20,443
12,667

35,892
20,970
14,730

37.667
17,387
16,312

38,101
19,547
15,721

38,157
18,497
15,765

37,120
17,837
15,840

37.667
17,387
16,312

38,148
17,434
16,789

37,884
17,384
17,020

37,780
16,784
17,448

70,748
2,334
4,649
50,693
1,742
931

93,026
2,486
5,046
58,812
2,408
743

85,650
1,898
6,371
52,693
2,412
484

87,117
2,412
4,895
52,437
2,511
435

85,468
1,954
4,558
51,922
2,583
386

80,838
1,971
4,579
51,420
2,215
552

85,650
1,898
6,371
52,693
2,412
484

82,623
1,922
4,780
53,448
2,480
732

79,828
2,347
4,896
54,602
2,392
927

77,011
1,644
6,098
53,810
2,419
791

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^ionmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.

3.15

Oct.'

5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
Based on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers
in the United States.

N ote:

LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1978
Item

1976

Dec.
1 Banks’ own liabilities .................................................................................
2 Banks’ own claims1 .....................................................................................
3
Deposits ...................................................................................................
4
Other claims .............................................................................................
5 Claims of banks’ domestic customers2 ....................................................

781
1,834
1,103
731

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.




1979

1977

925
2,356
941
1,415

N o te:

thorities.

2,235
3,504
1,633
1,871
367

Mar.
1,781
2,602
1,121
1,481
476

June'
1,931
2,467
1,271
1,196
574

Sept.'
2,312
2,564
1,220
1,343
616

Dec.
1,855
2,435
1,013
1,422
592

Data on claims exclude foreign currencies held by U.S. monetary au-

Bank-Reported Data
3.16

LIABILITIES TO FOREIGNERS
Payable in U .S. dollars

A59

Reported by Banks in the United States

Millions of dollars, end of period

Holder and type of liability

1976

1977

1978
Sept.

Oct.

Nov.

Dec.

Jan.'

Feb.

Mar.P

1 All foreigners .....................................................

167,080'

185,835'

180,817'

184,466'

187,749

185,087

194,253

185,653

2 Banks’ own liabilities ......................................
3 Demand deposits ..........................................
4 Time deposits1 ..............................................
5 Other2 .............................................................
6 Own foreign offices3 ....................................

78,987'
19,211'
12,441'
9,713'
37,622'

111,857'
20,209'
12,856'
12,897'
65,894'

108,034'
17,914'
12,204'
12,890'
65,026'

117,282'
23,338
12,649'
12,723'
68,572'

117,561
23,367
13,641
16,268
64,286

113,791
20,810
12,481
12,703
67,797

122,944
22,569
12,711
12,484
75,181

119,114
22,723
12,904
14,552
68,935

88,093
68,202

73,978'
52,429

72,783
50,452

67,184
45,005

70,187
48,573

71,296
49,855

71,309
49,360

66,538
44,265

17,396
2,495

19,312
2,237

20,141
2,190

19,802
2,376

19,270
2,344

18,931
2,509

19,407
2,542

19,602
2,671

2,607

2,909

2,389

2,717

2,352

1,712

1,758

906
330

491
161
82
248

566
143
82
342

753
214

710
260
152
298

444
164
89
191

393
153
78
162

383
160
79
144

1,701

2,418
912

1,823
327

1,964
258

1,643

783

201

102

102

1,319
114

1,376
157

1,499

1,505

1,494

1,605

1,538

1,206

101

1,218

1

2

681

1

2

20 Official institutions8 ...........................................

90,674'

76,437'

74,452'

70,779'

78,143

73,614

72,704

69,760

21 Banks’ own liabilities ......................................
22
Demand deposits ..........................................
23 Time deposits1 ...............................................
24
Other2 .............................................................

12,097'
3,390
2,550'
6,157'

13,465'
3,143'
2,239'
8,083'

12,070'
2,374'
1,883'
7,813'

14,390'
5,652
1,972'
6,767'

18,229
4,724
3,071
10,434

12,358
3,745
2,289
6,324

12,129
3,700
2,347
6,082

14,502
3,926
2,393
8,183

78,577
67,415

62,972
50,842

62,381
49,411

56,388
43,921

59,914
47,666

61,256
48,864

60,575
48,234

55,258
42,655

10,992
170

12,080
51

12,913
57

12,411
56

12,196
52

12,357
35

12,303
37

12,571
32

57,779'

89,023'

86,236'

92,716

88,694

91,628

100,656

95,004

52,994'
15,372
11,249'
1,453'
2,670'

83,876'
17,981'
12,466'
1,641'
3,874'

81,135'
16,110'
10,620'
1,478'
4,011'

87,511
18,939'
12,879
1,606'
4,454'

83,699
19,413
13,262
1,663
4,488

86,246
18,449
11,822
1.275
5,353

95.181
20,000
13,346
1,295
5,359

89,305
20.370
13.371
1,549
5,450

37,622'

65,894'

65,026'

68,572'

64,286

67,797

75.181

68,935

4,785
300

5,147
406

5,100
400

5,205
451

4,995
422

5,382
533

5,475
566

5,699
675

2,425
2,060

2,625
2,116

2,684
2,017

2,611
2,143

2,405
2,168

2,573
2.276

2,559
2,350

2,556
2,468

14,736

16,020

17,466'

17,741'

18,254

18,560

18,617

19.181

19,130

4,304
7,546

12,990
4,242
8,353
394

14,025'
4,439
8,894
692'

14,262'
4,778'
8,760
724

14,627
4,594
8,991
1,043

14,924
5,121
8,755
1,048

14,743
5,079
8,828
835

15,242
5,371
8,991

14,924
5,266
8,883
776

16,803
11,347

7 Banks' custody liabilities4 ................................
8 U.S. Treasury bills and certificates5 ..........
9 Other negotiable and readily transferable
instruments6 ..........................................
10 Other ...............................................................

18,996
11,521

48,906

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

25 Banks’ custody liabilities4 ................................
26
U.S. Treasury bills and certificates5 ..........
27
Other negotiable and readily transferable
instruments6 ..........................................
28
Other ...............................................................

290
205

2,701

3,394
2,321

3,528
1,797

37,725

47,820

42,335

29 Banks9 .................................................................
30 Banks’ own liabilities ......................................
31
Unaffiliated foreign banks ..........................
32
Demand deposits ......................................
33
Time deposits1 ..........................................
34
Other2 .........................................................
35

231
139

9,104
2,297

10,933
2,040

Own foreign offices3 ....................................

36 Banks’ custody liabilities4 ................................
37
U.S. Treasury and certificates....................
38
Other negotiable and readily transferable
instruments6 ..........................................
39
Other ...............................................................
40 Other foreigners ................................................
41 Banks’ own liabilities ......................................
42
Demand deposits ..........................................
43
Time deposits .................................................
44
Other2 .............................................................

119

12,814
4,015
6,524

141

45 Banks’ custody liabilities4 ................................
46
U.S. Treasury bills and certificates............
47
Other negotiable and readily transferable
instruments6 ..........................................
48
Other ...............................................................

3,030
285

3,442
269

3,479
315

3,626
375

3,636
382

3,875
356

3,939
446

4,205
778

2,481
264

3,103
70

3,050
114

3,175
76

3,131
123

3,320
199

3,339
154

3,256
171

49 Memo: Negotiable time certificates of deposit
in custody for foreigners..........................

11,007

11,264

11,346

10,821

10,974

11,395

11,210

1. Excludes negotiable time certificates of deposit, which are included in “Other
negotiable and readily transferable instruments.” Data for time deposits prior to
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign sub­
sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­
ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term
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.
6. Principally bankers acceptances, commercial paper, and negotiable time cer­
tificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in “Official institutions.”

A60
3.16

International Statistics □ May 1980
LIABILITIES TO FOREIGNERS Continued
1979
Area and country

1976

1977

1980

1978
Sept.

Oct.

Nov.

Dec.

Jan.'

Feb.

Mar.P

1 Total ..........................................................................

110,657

126,168

167,080'

185,835'

180,817'

184,466'

187,749

185,087

194,253

185,653

2 Foreign countries .....................................................

104,943

122,893

164,473'

182,926'

178,428'

181,748'

185,396

183,860

192,541

183,894

3 Europe .........................................................................
Austria .......................................................................
5 Belgium-Luxembourg ............................................
6 Denmark ...................................................................
7 Finland .......................................................................
8 France .......................................................................
9
Germany ...................................................................
10 Greece .......................................................................
Italy ...........................................................................
11
12 Netherlands ...............................................................
13 Norway .....................................................................
14 Portugal .....................................................................
15 Spain .........................................................................
16 S w eden .......................................................................
17 Switzerland ...............................................................
18 Turkey .......................................................................
19 United Kingdom .......................................................
20
Yugoslavia .................................................................
21
Other Western Europe1 ........................................
22 U .S.S.R .......................................................................
23
Other Eastern Europe2 ..........................................

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
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236

85,447'
513
2,552
1,946
346
9,208
17,286
826
7,739'
2,402
1,271
330
870
3,121
18,560
157
14,265
254
3,393'
82
325

88,593'
444
2,920
1,100
415
10,509'
13,129
691
8,551
2,281
1,402
554
1,133
2,062
16,642
135
22,622
142
3,493
52
317

88,008
426
2,710
1,001
334
9,340
13,154
632
8,481
2,174
1,393
620
1,103
2,165
16,643
150
24,138
147
3,087
53
259

87,488
404
2,786
1,166
390
10,301
10,801
792
8,345
2,165
1,407
595
1,184
2,064
17,206
145
24,043
147
3,248
39
261

91,411
413
2,364
1,092
398
10,401
12,935
635
7,782
2,327
1,267
557
1,259
2,005
18,501
120
24,665
266
4,070
52
302

87,294
378
2,108
955
455
10,534
10,345
832
7,825
2,529
1,229
550
1,192
1,845
17,311
232
25,081
157
3,474
46
217

86,305
379
2,404
587
544
11,247
8,960
627
7,394
2,482
1,159
438
1,146
1,978
17,507
118
25,298
149
3,455
41
390

85,678
335
2,364
611
508
10,979
8,617
627
7,385
2,355
1,523
314
1,242
1,663
16,087
138
26,803
115
3,668
42
303

4

24 C anada...........................................................................

4,659

4,607

6,969

8,323'

8,644

7,280

7,379

9,541

9,556

7,989

25 Latin America and Caribbean..................................
26
Argentina .................................................................
27
Bahamas ...................................................................
28
Bermuda ...................................................................
29
Brazil .........................................................................
30
British West Indies .................................................
31
Chile ...........................................................................
32
Colombia ...................................................................
33
C u b a ...........................................................................
34
Ecuador .....................................................................
35
Guatemala3 ...............................................................
36 Jamaica3 .....................................................................
37 Mexico .......................................................................
38 Netherlands Antilles ...............................................
39
Panama .....................................................................
40
Peru ...........................................................................
41
Uruguay .....................................................................
42
Venezuela .................................................................
43
Other Latin America and Carribbean ................

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

2,870
158
1,167
257
245
3,118
1,797

2,876
196
2,331
287
243
2,929
2,167

31,606
1,484
6,752
428
1,125
5,991
399
1,756
13
322
416
52
3,417
308
2,968
363
231
3,821
1,760

49,433'
1,935
18,372
392
1,198
11,227'
420
2,188
9
364
335
175
3,549
359
3,336
477
217
2,903
1,977

47,182'
1,705'
15,377
399
994
11,445'
425
2,243
7
482
361
113
3,528
609
3,926
388
217
3,168
1,795

51,624
1,573
18,540
404
1,051
12,534
356
2,377
12
476
374
74
3,666
460
4,290
417
185
3,014
1,822

49,565
1,582
15,311
430
1,005
11,049
469
2,617
13
425
414
76
4,096
499
4,483
383
202
4,192
2,318

50,537
1,635
16,322
447
1,405
11,908
396
2,882
10
386
394
96
3,980
344
4,770
376
216
3,083
1,886

57,596
1,698
21,909
560
1,156
12,956
471
2,840
5
412
391
90
3,973
524
4,646
388
210
3,497
1,872

51,560
1,574
16,316
534
1,366
11,843
445
2,825
6
459
426
97
4,000
571
4,274
363
240
4,058
2,161

44 Asia ...............................................................................

29,766

30,488

36,487'

32,608'

30,691'

31,272'

32,898

32,043

34,550

34,041

China
Mainland ...............................................................
Taiwan ...................................................................
Hong Kong ...............................................................
India ...........................................................................
Indonesia ...................................................................
Israel .........................................................................
Japan .........................................................................
Korea .........................................................................
Philippines .................................................................
Thailand.....................................................................
Middle-East oil-exporting countries4 ..................
Other Asia ...............................................................

48
990
894
638
340
392
14,363
438
628
277
9,360
1,398

53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

67
502
1,256
790
449
688'
21,927
795
644
427
7,529
1,414

45
1,231
1,659'
674
463
626
13,292
938
632
421
10,766'
1,862

49
1,339
1,542
496
555
621
10,885
950
598
304
11,388'
1,963

45
1,413
1,624
580
478
574
7,867
951
671
415
14,788'
1,876

49
1,393
1,672
527
504
707
8,886
993
800
281
15,212
1,871

46
1,386
1,694
544
743
517
9,429
959
729
408
14,081
1,506

32
1,567
1,776
579
693
502
10,708
1,016
772
284
14,990
1,631

34
1,065
2,015
569
659
758
9,644
1,063
669
419
15,512
1,633

57 Africa .............................................................................
58
Egypt ...................... ..................................................
59
M orocco.....................................................................
60
South Africa .............................................................
Z a ir e ...........................................................................
61
Oil-exporting countries5 ........................................
62
63
Other Africa .............................................................

2,298
333
87
141
36
1,116
585

2,535
404
66
174
39
1,155
698

2,886
404
32
168
43
1,525
715

3,194
245
40
235
73
1,832
768

3,141
294
30
194
112
1,711
800

3,105
380
36
213
104
1,513
859

3,239
475
33
184
110
1,635
804

3,330
449
50
268
128
1,503
932

3,170
332
33
195
93
1,665
852

3,326
318
31
314
102
1,660
901

64 Other countries ...........................................................
65
Australia ...................................................................
66
All other ...................................................................

2,012
1,905
107

1,297
1,140
158

1,076
838
239

776
549
227

762
528
234

980
714
266

904
684
220

1,114
853
261

1,363
1,054
309

1,301
989
312

67 Nonmonetary international and regional
organizations .........................................................
International .............................................................
68
Latin American regional.........................................
69
70
Other regional6 .........................................................

5,714
5,157
267
290

3,274
2,752
278
245

2,607
1,485
808
314

2,909
1,810
824
275

2,389
1,343
755
291

2,717
1,504
790
423

2,352
1,232
813
308

1,227
823
90
314

1,712
612
786
315

1,758
652
746
361

45
46
47
48
49
50
51
52
53
54
55
56

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hufigary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in “Other Western
Europe.”

Bank-Reported Data
3.17

A61

BAN K S’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U .S. Dollars
M illions o f dollars, end o f period
1979
Area and country

1976

1977

1980

1978
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.P

1 Total ..........................................................................

79,301

90,206

115,610'

127,363'

121,249'

124,466'

133,586

127,290'

130,834

130,669

2 Foreign countries .....................................................

79,261

90,163

115,554'

127,312'

121,213'

124,422'

133,554

127,254'

130,801

130,633

3 Europe ...........................................................................
4 Austria .......................................................................
5 Belgium-Luxembourg ............................................
6 Denmark ...................................................................
7 Finland .......................................................................
8 France .......................................................................
9 Germany ...................................................................
10 Greece .......................................................................
11
Italy ...........................................................................
12 Netherlands ...............................................................
13 Norway .....................................................................
14 Portugal .....................................................................
15 Spain .........................................................................
16 S w eden .......................................................................
Switzerland ...............................................................
17
18 Turkey .......................................................................
19 United K ingdom ......................................................
20
Yugoslavia .................................................................
21
Other Western Europe1 ........................................
22
U.S.S.R.......................................................................
23
Other Eastern Europe2 ..........................................

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
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566

24,202'
140
1,175'
254
305
3,735'
845'
164
1,523'
677'
299
171
1,115'
537
1,283
300'
10,172'
363
122
366
657

28,309'
191
1,733'
166
227
3,788'
1,819'
194
1,566
631
238
325
1,126
459
1,179
140'
12,305'
584
247
326
1,064

26,196'
190
1,559
116
230
2,738'
1,316'
282
1,424
618
236
349
1,117
603
1,171
162'
11,839
578
154
349
1,163'

25,890
168
1,402
149
182
3,305
1,396
171
1,259
603
257
352
1,050
548
1,232
151
11,426
582
185
311
1,160

28,314
284
1,328
147
202
3,302
1,159
154
1,572
514
276
330
1,051
542
1,162
149
13,789
611
175
290
1,277

24,821'
258'
1,416'
126'
262'
3,086'
921'
136
1,345'
472
177'
288
948'
747'
935
128
11,334'
569
203'
263
1,205'

25,469
315
1,524
156
237
3,197
1,209
141
1,405
610
175
213
1,015
702
1,359
131
10,770
565
227
265
1,251

25,660
331
1,631
202
186
2,966
1,306
191
1,483
534
243
227
907
587
1,353
123
10,863
594
225
253
1,453

24 Canada ...........................................................................

3,319

3,355

5,152

4,785'

4,332'

4,365'

4,347

4,221'

4,344

4,186

25 Latin America and Caribbean ..................................
26
Argentina .................................................................
27
Bahamas ...................................................................
28 Bermuda ...................................................................
29
Brazil .........................................................................
30 British West Indies ................................................
31
Chile ...........................................................................
32
Colombia ...................................................................
C u b a ...........................................................................
33
34
Ecuador .....................................................................
Guatemala3 ...............................................................
35
36 Jamaica3 .....................................................................
37
Mexico .......................................................................
Netherlands Antilles ..............................................
38
39
Panama .....................................................................
40
Peru ...........................................................................
41
Uruguay .....................................................................
42
Venezuela .................................................................
43
Other Latin America and Caribbean ..................

38,879
1,192
15,464
150
4,901
5,082
597
675
13
375

45,850
1,478
19,858
232
4,629
6,481
675
671
10
517

4,822
140
1,372
933
42
1,828
1,293

4,909
224
1,410
962
80
2,318
1,394

57,374'
2,281
21,420'
184
6,251
9,692'
972
1,012
*
705
94
40
5,430'
273
3,089'
918
52
3,474
1,487

62,643'
3,285
18,969'
170'
7,286
9,522'
1,323
1,264'
4
943
103'
32
8,452'
301
4,520'
716
60
4,176
1,516'

59,359'
3,656'
17,485'
485
7,567
6,754'
1,396
1,456'
4
1,000
110
29
8,438'
230
4,268
607
72
4,349
1,455

62,328'
4,157
16,046
462
7,497
9,149'
1,349
1,523
4
1,007
115
34
8,360'
227
5,774
604
71
4,392
1,557

67,632
4,415
18,681
496
7,767
9,762
1,438
1,614
4
1,025
134
47
8,971
248
5,986
652
105
4,689
1,598

65,166'
4,683'
20,443'
434'
7,555'
7,816'
1,376'
1,655'
4
1,001
114
51
8,829'
325'
4,432'
585'
100
4,244'
1,518'

65,930
4,899
18,217
314
8,404
10,136
1,430
1,699
4
1,025
105
44
8,891
397
3,939
634
83
4,194
1,515

65,019
4,975
18,822
322
8,111
7,364
1,414
1,618
4
1,022
109
42
9,207
539
4,718
699
90
4,444
1,520

44

19,204

19,236

25,616'

28,552'

28,463'

29,057

30,624

30,169'

32,325

33,007

China
Mainland ...............................................................
Taiwan ...................................................................
Hong Kong ...............................................................
India ...........................................................................
Indonesia ...................................................................
Israel .........................................................................
Japan .........................................................................
Korea .........................................................................
Philippines .................................................................
T hailand.....................................................................
Middle East oil-exporting countries4 ..................
Other Asia ...............................................................

3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863

10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

4
1,499
1,679'
54
143
888'
12,681'
2,282
680
758
3,145'
1,804

25
1,935
1,859
74
140
882
14,682'
3,730'
638
1,036
1,914
1,637

55
1,930
1,737
68
147
891
14,989'
3,839
724
956
1,190
1,939

31
1,805
1,794
69
135
842
16,155
3,732
642
972
1,107
1,776

35
1,821
1,804
92
131
990
16,925
3,796
737
935
1,544
1,813

28
1,700'
1,804'
136'
117
812'
17,027'
4,080'
649'
971 r
1,397'
1,448'

51
1,691
2,127
90
128
787
18,904
4,339
645
993
1,211
1,359

75
1,497
1,869
117
132
734
19,658
4,713
693
851
1,437
1,232

57 Africa .............................................................................
58
Egypt .........................................................................
59
M orocco.....................................................................
60
South Africa .............................................................
61
Z a ir e...........................................................................
Oil-exporting countries5 ........................................
62
63
Other .........................................................................

2,311
126
27
957
112
524
565

2,518
119
43
1,066
98
510
682

2,221
107
82
860
164
452
556

2,101
120
23
704
149
563
542

1,926
122
66
602
135
435
566

1,865
91
73
565
135
442
559

1,785
112
103
445
142
391
592

1,899'
130'
106'
412'
146
507'
599'

1,775
154
109
342
144
452
574

1,725
127
118
336
143
351
649

64 Other countries ...........................................................
Australia ...................................................................
65
66
All other ...................................................................

772
597
175

1,090
905
186

988
877
111

922'
750'
172

935'
756'
180

916
741
176

853
673
180

978'
803'
175

959
789
170

1,036
800
236

67 Nonmonetary international and regional
organizations6 .......................................................

40

43

56

50

36

44

32

35

33

36

45
46
47
48
49
50
51
52
53
54
55
56

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in “Other
Western Europe.”
N o t e . Data for period prior to April 1978 include claims of banks’ domestic
customers on foreigners.

A62
3.18

International Statistics □ May 1980
BAN K S’ OWN A N D DOM ESTIC 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
Sep t/

90,206

N ov/

121,249
14,246
38,280
39,781
6,532
33,249
28,943

124,466
13,753
43,646
37,831
5,509
32,322
29,236

Feb.

Dec.

126,829

146,176

2
3
4
5
6
7
8

Banks’ own claims on foreigners..........................
Foreign public borrowers ......................................
Own foreign offices1 ..............................................
Unaffiliated foreign banks ....................................
Deposits .................................................................
Other .....................................................................
All other foreigners................................................

115,610
10,168
41,697
40,467
5,456
35,011
23,278

127,363
13,943
39,554
46,011
7,156
38,855
27,854

9
10
11
12

Claims of banks’ domestic customers2 ................
Deposits .....................................................................
Negotiable and readily transferable instruments3
Outstanding collections and other claims4 ..........

11,219
480
5,385
5,353

18,813
975
11,760
6,078

19,948
955
12,974
6,019

14,919

19,751

21,173

12,804

18,734

1 Total ...........................................................................

79,301

O ct/

5,756

6,176

13 M e m o : Customer liability on acceptances..........
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United
States5 .................................................................
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 majority-owned subsidiaries of foreign
banks: principally amounts due from head office or parent foreign bank, and
foreign brancnes, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.

3.19

153,534

21,615

133,586
15,054
47,056
40,902
6,217
34,685
30,574

127,290
14,862
46,075
36,140
4,985
31,155
30,214

130,834
15,007
46,817
38,776
5,069
33,707
30,233

130,669
15,700
45,314
39,572
5,566
34,006
30,083

20,060

4. Data for March 1978 and for period prior to that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certif­
icates of deposit denominated in U.S. dollars issued by banks abroad. For de­
scription of changes in data reported by nonbanks, see July 1979 B u l l e t in , p. 550.
N o t e : Beginning April 1978, data for banks’ own claims are given on a monthly
basis, but the data for claims of banks’ own domestic customers are available on
a quarterly basis only.

BAN K S’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U .S. Dollars
Millions of dollars, end of period
1978

1979

Maturity; by borrower and area
June

Sept.

D ec/

M ar/

June'

Sep t/

Dec.

1 T o tal....................................................................................................

55,902

60,091r

73,696

71,566

77,662

87,477

86,170

By borrower
Maturity of 1 year or less1 .....................................................................
Foreign public borrowers ...................................................................
All other foreigners.............................................................................
Maturity of over 1 year1 .........................................................................
Foreign public borrowers ...................................................................
All other foreigners.............................................................................

44,558
3,128
41,430
11,343
3,243
8,101

47,226'
3,711r
43,515'
12,866'
4,235'
8,631r

58,418
4,583
53,835
15,278
5,338
9,939

55,387
4,627
50,760
16,179
5,940
10,239

60,012
4,604
55,408
17,650
6,411
11,239

68,311
6,057
62,254
19,166
7,638
11,528

65,042
6,894
58,148
21,128
8,074
13,054

9,710
1,598
17,439
13,831
1,457
523

10,513
1,953
18,624
14,010'
1,535
591

15,169
2,670
20,934
17,579
1,496
569

12,389
2,514
21,660
16,992
1,290
541

14,019
2,703
23,096
18,191
1,438
565

16,786
2,471
25,612
21,519
1,399
524

15,203
1,843
24,774
21,657
1,072
493

2,920
344
5,900
1,297
631
252

3,102
794
6,877
1,303
580
211

3,142
1,426
8,452
1,407
637
214

3,103
1,456
9,325
1,486
629
180

3,486
1,221
10,265
1,881
614
183

3,660
1,364
11,757
1,574
623
188

4,142
1,453
12,792
1,920
652
169

2
3

4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By area
Maturity of 1 year or less1
Europe ...................................................................................................
Canada ...................................................................................................
Latin America and Caribbean..........................................................
Asia .......................................................................................................
A frica .....................................................................................................
All other2 .............................................................................................
Maturity of over 1 year1
E u rop e...................................................................................................
Canada ...................................................................................................
Latin America and Caribbean..........................................................
Asia .......................................................................................................
A frica.................... ................................................................................
All other2 .............................................................................................

1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.




Bank-Reported Data
3.20

A63

CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1978
Area or Country

1975

1976

1979

1977
Mar.

June2

Sept.

Dec.

Mar.

June

Sept.

Dec.

1 T o tal.................................................................................................

167.1

206.8

241.4

244.7

247.1

247.6

266.1

263.8

275.3

293.7

304.3

2 G-10 countries and Switzerland ......................................................
3 Belgium-Luxembourg .....................................................................
4 France ...............................................................................................
5 Germany ...........................................................................................
6 Italy ...................................................................................................
7 N etherlands.......................................................................................
8 Sweden .............................................................................................
9 Switzerland .......................................................................................
10 United Kingdom .............................................................................
11
Canada ...............................................................................................
12 Japan .................................................................................................

88.0
5.3
8.5
7.7
5.2
2.8
1.0
2.4
36.3
3.8
14.9

100.3
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.7
5.1
15.9

116.4
8.4
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8

116.9
8.3
11.4
9.0
6.0
3.4
2.0
4.0
46.7
7.0
19.1

112.8
8.3
11.4
9.1
6.4
3.4
2.1
4.1
45.0
5.1
17.9

113.7
8.4
11.7
9.7
6.1
3.5
2.2
4.3
44.4
5.0
18.6

124.9
9.0
12.2
11.4
6.6
4.4
2.1
5.4
47.3
6.0
20.6

119.1
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.5
5.9
19.0

125.3
9.7
12.7
10.8
6.1
4.0
2.0
4.8
50.4
5.5
19.4

135.8
10.7
12.0
12.9
6.1
4.7
2.3
5.0
53.8
6.0
22.3

139.2
11.1
11.6
12.0
6.3
4.8
2.4
4.8
55.9
7.7
22.4

13 Other developed countries.................................................................
14 A ustria...............................................................................................
15 Denmark ...........................................................................................
16 Finland...............................................................................................
17 Greece ...............................................................................................
18 Norway .............................................................................................
19 Portugal .............................................................................................
20
Spain .................................................................................................
21
Turkey ...............................................................................................
22
Other Western Europe ...................................................................
23
South Africa .....................................................................................
24 Australia ...........................................................................................

10.8
.7
.6
.9
1.4
1.4
.3
1.9
.6
.6
1.2
1.3

15.0
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2

18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4

19.7
1.5
1.8
1.2
2.1
1.9
.7
3.6
1.4
1.5
2.5
1.5

19.4
1.5
1.7
1.1
2.3
2.1
.6
3.6
1.4
1.2
2.4
1-4

18.6
1.5
1.9
1.0
2.2
2.1
.5
3.5
1.5
.9
2.2
1.3

19.4
1.7
2.0
1.2
2.3
2.1
.6
3.4
1.5
1.3
2.0
1.4

18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3

18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
1.0
1.8
1.4

19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3

19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3

25 Oil-exporting countries3 .....................................................................
26
Ecuador .............................................................................................
27
Venezuela .........................................................................................
28
Indonesia...........................................................................................
29 Middle East countries.....................................................................
30
African countries .............................................................................

6.9
.4
2.3
1.6
1.6
1.0

12.6
.7
4.1
2.2
4.2
1.4

17.6
1.1
5.5
2.2
6.9
1.9

19.2
1.3
5.5
2.1
8.3
2.0

19.2
1.4
5.6
1.9
8.4
1.9

20.4
1.6
6.2
1.9
8.7
2.0

22.7
1.6
7.2
2.0
9.5
2.5

22.6
1.5
7.2
1.9
9.4
2.6

2?.7
1.6
7.6
1.9
9.0
2.6

23.4
1.6
7.9
1.9
9.2
2.8

22.8
1.7
8.7
1.9
8.0
2.6

31 Non-oil developing countries.............................................................

34.1

44.2

48.7

49.7

49.1

49.6

52.5

53.8

56.2

59.1

63.2

32
33
34
35
36
37
38

Latin America
Argentina .........................................................................................
Brazil .................................................................................................
C h ile ...................................................................................................
C olom bia...........................................................................................
Mexico ...............................................................................................
Peru ...................................................................................................
Other Latin America .....................................................................

1.7
8.0
.5
1.2
9.0
1.4
2.5

1.9
11.1
.8
1.3
11.7
1.8
2.8

2.9
12.7
.9
1.3
11.9
1.9
2.6

3.0
13.0
1.1
1.2
11.2
1.7
3.4

3.0
13.3
1.3
1.3

3.0
14.9
1.6
1.4
10.8
1.7
3.6

3.1
14.9
1.7
1.5
10.9
1.6
3.5

3.5
15.1
1.8
1.5

1.8
3.3

2.9
14.0
1.3
1.3
10.7
1.8
3.4

1.4
3.3

4.1
15.1
2.2
1.7
11.7
1.4
3.6

5.1
15.3
2.5
2.2
12.3
1.5
3.7

39
40
41
42
43
44
45
46
47

Asia
China
Mainland .......................................................................................
Taiwan ...........................................................................................
In d ia ...................................................................................................
Israel .................................................................................................
Korea (South) .................................................................................
Malaysia4 ...........................................................................................
Philippines.........................................................................................
Thailand ...........................................................................................
Other Asia ....................................................................... ............

.0
1.7
.2
.9
2.4
.3
1.7
.7
.5

.0
2.4
.2
1.0
3.1
.5
2.2
.7
.5

.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4

.0
3.1
.3
.8
3.6
.7
2.6
1.1
.4

.0
2.5
.2
.7
3.6
.6
2.7
1.1
.3

.0
2.4
.3
.7
3.5
.6
2.8
1.1
.3

.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2

.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.3

.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4

.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.3

.1
3.5
.2
1.3
5.5
.9
4.3
1.6
.4

48
49
50
51

Africa
Egypt .................................................................................................
Morocco ...........................................................................................
Zaire .................................................................................................
Other Africa5 ...................................................................................

.4
.1
.3
.8

.4
.3
.2
1.2

.3
.5
.3
.7

.3
.4
.3
1.4

.3
.5
.2
1.2

.4
.5
.2
1.3

.4
.6
.2
1.4

.5
.6
.2
1.4

.7
.5
.2
1.5

.6
.5
.2
1.6

.6
.6
.2
1.7

52 Eastern Europe .................... ..............................................................
53
U.S.S.R...............................................................................................
54 Yugoslavia.........................................................................................
55
Other .................................................................................................

3.7
1.0
.6
2.1

5.2
1.5
.8
2.9

6.3
1.6
1.1
3.7

6.3
1.4
1.2
3.7

6.4
1.4
1.3
3.7

6.6
1.4
1.3
3.9

6.9
1.3
1.5
4.1

6.7
1.1
1.6
4.0

6.7
.9
1.7
4.1

7.2
.9
1.8
4.6

7.8
1.0
1.8
5.0

56 Offshore banking ce n ter s...................................................................
57 Bahamas ...........................................................................................
58 Bermuda ...........................................................................................
59 Cayman Islands and other British West Indies ........................
60 Netherlands Antilles . . . . ! ! ...........................................................
61
Panama .............................................................................................
62
Lebanon ...........................................................................................
63
Hong K o n g .............................. .....................................................
64
Singapore .........................................................................................
65
Others6 ...................................... ...................................................

18.9
7.3
.5
2.5
.6
2.6
.2
1.6
3.6
.1

24.7
10.1
.5
3.8
.6
3.0
.1
2.2
4.4
.0

26.1
9.8
.6
3.8
.7
3.1
.2
3.7
3.7
.5

28.8
11.3
.6
4.6
.7
3.1
.2
4.1
3.9
.3

32.2
12.4
.7
6.7
.6
3.3
.1
4.1
3.8
.5

30.0
11.7
.7
6.4
.6
3.1
.1
4.0
2.9
.5

30.6
10.4
.7
6.9
.8
3.0
.1
4.3
3.9
.5

33.5
12.4
.6
6.8
.8
3.4
.1
4.8
4.2
.4

36.4
14.5
.7
7.0
1.0
3.5
.1
4.9
4.2
.4

37.9
13.0
.7
9.2
1.1
3.0
.2
5.5
4.9
.4

39.7
13.5
.7
9.5
1.2
3.8
.2
6.0
4.5
.4

66 Miscellaneous and unallocated7 .........................................................

4.7

5.0

5.3

5.9

8.1

8.6

9.1

9.5

... 9.9

10.6

11.8

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of: y .S . banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. For June 1978 and subsequent dates, the claims of the U.S. offices




11.0

11.0

11.0

in this table include only banks’ own claims payable in dollars. For earlier dates
the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. Includes Algeria, Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Oman,
Qatar, Saudi Arabia, and United Arab Emirates in addition to countries shown
individually.
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.

A64
3.21

International Statistics □ May 1980
MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Holdings and Transactions

Millions of dollars
1980
Country or area

1978
Jan.Mar.P

Sept.

Oct.

Dec.

Jan.

Feb.

Mar.P

51,827

Holdings (end of period)1

1 Estimated total2 ......................................

44,938

50,306

50,257

50,888

49,779

50,306

52,828

52,031

2 Foreign countries2 .....................................

39,817

44,875

45,060

45,206

44,276

44,875

46,777

45,387

45,365

3 Europe2 .......................................................
4 Belgium-Luxembourg ..........................
5 Germany2 ...............................................

17,072
19
8,705
1,358
285
977
5,373
354

23,705
60
12,937
1,466
647
1,868
6,236
491

22,599
65
10,953
1,667
588
2,496
6,193
637

22,692
65
11,082
1,660
600
2,427
6,191
666

21,910
60
11,337
1,490
593
1,961
5,955
513

23,705
60
12,937
1,466
647
1,868
6,236
491

25,351
60
14,081
1,407
640
1,894
6,755
514

23,732
55
12,629
1,414
636
1,564
6,921
512

23,441
27
12,321
1,454
633
1,534
6,993
478

6

9
10
11
12

Netherlands .............................................
S w eden .....................................................
Switzerland2 ...........................................
United Kingdom .....................................
Other Western Europe ........................
Eastern Europe .....................................
Canada .........................................................

13
14
15
16
17
18
19
20

Latin America and Caribbean................
Venezuela ...............................................
Other Latin American and Caribbean
Netherlands Antilles ............................
Asia .............................................................
Japan .......................................................
Africa ...........................................................
All other .....................................................

7
8

152

232

' ’ '233'

’ ’ ’ 235

234

'' ' 232

231

389

’ ’ ' 394

416
144
110
162
21,488
11,528
691
-3

546
183
200
163
19,804
11,175
591
-3

539
183
192
165
21,000
12,789
691
-3

541
183
194
164
21,050
12,591
691
-3

539
183
192
164
21,005
12,502
591
-3

546
183
200
163
19,804
11,175
591
-3

546
183
200
163
20,061
10,844
591
-3

547
183
201
164
20,130
10,420
591
-3

552
183
206
164
20,390
9,631
591
-3

organizations ......................................

5,121

5,431

5,197

5,682

5,503

5,431

6,051

6,644

6,462

International ..........................................
Latin American regional......................

5,089
33

5,388
40

5,150
46

5,636
46

5,463
40

5,388

6,016
35

6,592
53

6,407
53

21 Nonmonetary international and regional
22
23

Transactions (net purchases, or sales ( - ) , during period)
24 Total2 .........................................................

6,297

5,368

25 Foreign countries2 ..................................
26
Official institutions..............................
27
Other foreign2 .......................................

5,921
3,727
2,195

5,059'
1,775'
3,283'

28 Nonmonetary international and regional
organizations .....................................

375

311

Oil-exporting countries
29 Middle East3 .............................................
30 Africa4 .......................................................

-1,785
329

1,521

681

-1,015
-1 0 0

632

-

1,110

527

146
56

-9 3 0
-1,037
108

600
547
53

1,902
481
1,422

-223
-264
41

-104
82

600

487

-180

-7 3

624

594

-1 8 6

72

490
113
377

299

64
-100

168

550

500

1,014

81
91'

-1 0 '

1,032

-2 2

M em o:

2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of for­
eign countries.

3.22

FOREIGN OFFICIAL ASSETS H ELD AT FEDERAL RESERVE BANKS
M illions o f dollars, end o f period
1979
Assets

1977

1978

1980

1979
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.P

1 D ep o sits.........................................................................

424

367

429

351

490

429

439

450

468

618

Assets held in custody
2 U.S. Treasury securities1 ...........................................
3 Earmarked gold2 .........................................................

91,962
15,988

117,126
15,463

95,075
15,169

97,965
15,253

90,874
15,230

95,075
15,169

97,116
15,138

96,200
15,109

89,290
15,087

85,717
15,057

1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.




N o t e . Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,

Investment Transactions
3.23

A65

FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1980
Transactions, and area or country

1978

1979

1980

1979
Jan.Mar.P

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar./7

U.S. corporate securities
Stocks
1 Foreign purchases .......................................................
2 Foreign sales .................................................................

20,142
17,723

22,595'
20,974'

10,240
8,096

2,074
2,023

2,385
2,372

1,876
1,687

2,359
2,182

3,104
2,417

4,436
3,319

3 Net purchases, or sales ( - ) ....................................

2,420

1,621'

2,144

51

13

189

177

687

1,117

340

4 Foreign countries .....................................................

2,466

1,605'

2,142

58

13

192

173

686

1,119

338

1,283
47
620
-2 2
-5 8 5
1,230
74
151
781
187
-13
3

216
122
-221
-7 1
-5 1 9
964
550
-1 8
656
208'
-1 4
7

1,518
155
61
-3 9
493
824
289
79
163
96
1
-4

-1 0 7
-2 0
-3 7
*
-6 4
19
145
-8
41
-1 2
-2
1

-3 4
-4 8
-3 2
38
-6 8
83
67
-9 3
59
18
-1
-3

77
-1 8
-1 8
12
-1 4 8
278
14
-7
133
-2 9
1
2

75
8
-1 0
-2 5
-6 8
155
47
40
32
-2 1
-3
2

506
71
35
8
153
215
40
92
15
30
*
2

855
133
51
-4 1
375
332
125
35
50
58
-1
-3

156
-4 9
-2 5
-6
-3 5
277
124
-4 8
97
8
2
-2

-4 6

17'

1

8,840'
7,581'

3,320
1,928

5
6
7
8
9
10
11
12
13
14
15
16

Europe ...........................................................................
France .......................................................................
Germany ...................................................................
Netherlands ...............................................................
Switzerland ...............................................................
United Kingdom .......................................................
C anada...........................................................................
Latin America and Caribbean..................................
Middle East* .................................................................
Other Asia ...................................................................
Africa .............................................................................
Other countries ...........................................................

17 Nonmonetary international and regional

organizations .....................................................

-7

2,700
2,361

*

-3

4

1

-2

2

448'
288

827
639

732
913

964
550

1,149
494

933
594

1,237
839

B o n d s2

18 Foreign purchases .......................................................
19 Foreign s a le s .................................................................

7,975
5,587'

20 Net purchases, or sales ( - ) ....................................

2,388r

1,259'

1,392

160'

188

-181

414

655

339

398

21 Foreign countries .....................................................

1,979'

1,360'

1,204

73'

48

-118

429

523

274

407

22
23
24
25
26
27
28
29
30
31
32
33

837'
30
68
12
-1 7 0 '
930
102
98
810
131
-1
1

638'
11
83
-2 0 2
-9 8 '
816
90
112
424'
94
1
1

561
23
13
-3 4
16
531
61
32
540
-1
3
8

19
-1
-1
-2
4
23
17
-4
43
-4
1
*

88
1
-7
-7
*
103
8
6
-3 9
-1 6
*
1

-2 0 5
11
2
-1 5
-5 3
-1 2 4
-1
12
71
5
*
*

33
1
2
-2 0
7
36
-1 6
15
406
-1 0
*
*

205
8
-5
-3
6
195
25
14
280
*
*
*

41
*
6
-3 0
8
71
28
10
181
3
2
8

315
15
11
*
3
265
8
9
79
-4
*

409

-102

187

87

140

-6 3

-1 4

132

65

-1 0

Europe ...........................................................................
France .......................................................................
Germany ...................................................................
Netherlands ...............................................................
Switzerland ...............................................................
United Kingdom .......................................................
Canada ...........................................................................
Latin America and Caribbean..................................
Middle East1 .................................................................
Other Asia ...................................................................
Africa .............................................................................
Other countries ...........................................................

34 Nonmonetary international and regional
organizations .....................................................

*

, Foreign securities
35 Stocks, net purchases, or sales ( - ) ........................
36 Foreign purchases ...................................................
37
Foreign s a le s .............................................................

527
3,666
3,139

-7 8 6 '
4,615'
5,401'

-661
2,094
2,755

-3 3 8
420
758

-1 9 8
466
663

-8 4
365
449

-1 3 0
406
536

-2 3 3
624
858

-4 2 6
804
1,230

-2
665
667

38 Bonds, net purchases, or sales ( - ) ........................
39 Foreign purchases ...................................................
40 Foreign s a le s .............................................................

-4,052
11,043
15,094

-3 ,8 6 3 '
12,362'
16,224'

-1 6 8
3,797
3,965

-7 2 5
829
1,554

-7 5
1,081
1,156

-3 3 4 '
1,081'
1,415

-2 9 5
1,124
1,419

-7 2
1,279
1,351

-7 1
1,379
1,450

-2 5
1,139
1,164

41 Net purchases, or sales ( — of stocks and bonds ..
),

-3,525

-4,649'

-829

-1,063

-273

-4 1 9 '

-425

-305

-497

-2 7

42 Foreign countries .....................................................
43 Europe ...........................................................................
44 C anada...........................................................................
45 Latin America and Caribbean..................................
46 Asia ...............................................................................
47 Africa .............................................................................
48 Other countries ...........................................................

-3,338

-3,889'

-913

-914

-277

-3 0 0 '

-563

-382

-498

-3 2

-6 4
-3,238
201
350
-441
-1 4 6

-1 ,6 0 0 '
-2 ,6 0 0 '
378'
-7 9 '
-1 4
25

107
-906
136
-225
-4
-2 0

-1 2 0
-891
*
92
*
*

-3 8
-3 5 8
11
112
-6
2

-1 1 8 '
-9 7
29
-1 1 8
1
3

-2 8 2
-1 4 2
-1 4
-1 2 8
2
3

176
-3 3 0
5
-2 2 8
-2
-4

-1 2 3
-4 1 5
101
-4 7
-1
-1 3

54
-161
29
49
*
-3

84

-150

4

138

78

1

6

49 Nonmonetary international and regional
organizations .....................................................

-187

-760

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).




-118

2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments abroad.

A66
3.24

International Statistics □ May 1980
LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1978

1979

Type, and area or country
Sept.

Mar.

June

Sept.'

D e c .P

1 Total ...............................................................

10,099

11,085

14,676

11,870

12,786

14,265

15,164

2 Payable in dollars........................................
3 Payable in foreign currencies2 ..................

9,390
709

10,284
801

11,400
3,276

11,044
825

11,955
831

11,369
2,896

12,415
2,749

12,578
2,912

13,776
2,773

By type
4 Financial liabilities.......................................
5 Payable in dollars....................................
6
Payable in foreign currencies................

6,145
3,745
2,400

5,894
3,705
2,190

5,781
3,735
2,046

5,951
3,790
2,161

6,940
4,958
1,982

7 Commercial liabilities ................................
8 Trade payables .........................................
9 Advance receipts and other liabilities .

8,531
3,984
4,547

8,371
3,484
4,886

9,384
4,244
5,140

9,539
4,084
5,455

9,608
4,347
5,261

10 Payable in dollars.........................................
11 Payable in foreign currencies....................

7,655
876

7,664
707

703

8,788
750

8,818
790

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe ................ ......................................
Belgium-Luxembourg ........................
France ...................................................
Germany ...............................................
Netherlands ...........................................
Switzerland ...........................................
United K ingdom ...................... ........

3,834
287
162
366
389
248
2,054

3,570
264
138
395
422
239
1,992

3,394
313
134
271
378
231
1,852

3,553
277
126
381
520
190
1,860

4,318
305
166
482
802
168
2,216

19

Canada .......................................................

242

258

292

300

369

20
21
22
23
24
25
26

Latin America and Caribbean..............
Bahamas ...............................................
Bermuda ...............................................
Brazil .....................................................
British West Indies ............................
Mexico ...................................................
Venezuela .............................................

1,283
426
56
127
102
49

1,279
411
41
13
136
101
55

1,325
442
37
19
127
131
65

1,330
345
37
14
194
122
71

1,445
319
109
18
507
121
72

27
28
29

Asia ...........................................................
Japan ....................................................
Middle East oil-exporting countries3

775
714
27

778
714
23

759
706
19

757
700
19

723
35

30
31

Africa .........................................................
Oil-exporting countries4 ....................

5

5

2

6

5

1

2

1

32

All other5 ................................................

33
34
35
36
37
38
39

Commercial liabilities
Europe ......................................................
Belgium-Luxembourg ........................
France ..................................................
Germany ..............................................
N etherlands..........................................
Switzerland ..........................................
United K ingdom ..................................

2,972
75
317
536
208
302
798

2,941
70
339
402
194
329
843

3,255
81
339
481
202
439
979

3,395
103
394
539
206
348
1,015

10

3,620
137
460
531
221
310
1,077

40

Canada ......................................................

667

614

651

709

852

41
42
43
44
45
46
47

Latin America ........................................
Bahamas .............................................
Bermuda ..............................................
Brazil ....................................................
British West Indies ............................
Mexico .................................................
Venezuela ............................................

995
25
95
74
53
106
303

1,161
16
40
61
89
236
356

1,319
65
80
165

1,306
69
32
203

203
323

1,387
89
48
186
21
256
359

48
49
50

Asia ..........................................................
Japan ...................................................
Middle East oil-exporting countries3

2,950
438
1,535

2,636
411
1,113

3,021
499
1,216

2,985
506
1,070

2,864
481
1,026

51
52

Africa ......................................................
Oil-exporting countries4 ..................

743
312

779
343

891
410

775
370

728
384

53

All other5 ..............................................

239

246

287

1. For a description of the changes in the International Statistics tables, see July
1979 B u l l e t in , p. 550.
2. Before December 1978, foreign currency data include only liabilities denom­
inated in foreign currencies with an original maturity of less than one year.




121

21

242
301

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data
3.25

CLAIMS ON UN AFFILIATED FOREIGNERS
United States1

A67

Reported by Nonbanking Business Enterprises in the

M illions o f dollars, end o f period

Type, and area or country
Sept.
1 Total ..............................................................

19,350

21,298

27,626

23,229

2 Payable in dollars........................................
3 Payable in foreign currencies2 ..................

18,300
1,050

19,880
1,418

24,604
3,022

21,665
1,564

June

30,071
21,292
1,968

Sept.

Dec.P

30,072

27,241
2,829

26,495
2,904

27,407
2,665

26,995
2,669

By type
4 Financial claims ..........................................
5 Deposits ....................................................
6
Payable in d ollars................................
7
Payable in foreign currencies............
8 Other financial claims ............................
9
Payable in dollars................................
10
Payable in foreign currencies............

16,276
10,815
9,753
1,062
5,461
3,872
1,589

19,328
13,895
12,975
920
5,433
3,893
1,540

18,382
12,807
11,871
936
5,575
4,012
1,563

18,296
12,886
11,987
899
5,410
4,013
1,397

16,988
11,808
10,927
881
5,179
3,797
1,382

11 Commercial claim s......................................
12 Trade receivables ....................................
13 Advance payments and other claims ..

11,351
10,712
639

10,743
9,996
747

11,016
10,311
705

11,776
11,016
760

12,677
11,987
690

14
15

Payable in d ollars....................................
Payable in foreign currencies................

10,979
371

10,373
370

10,612
404

11,407
369

12,271
406

16
17
18
19
20
21
22

By area or country
Financial claims
Europe .......................................................
Belgium-Luxembourg ........................
France ...................................................
Germany ...............................................
Netherlands ..........................................
Switzerland ..........................................
United K ingdom ..................................

5,035
48
178
510
103
98
3,848

5,164
63
171
266
85
96
4,253

5,458
54
183
361
62
81
4,478

6,403
33
191
391
51
85
5,365

6,000
32
177
398
53
73
4,941

23

Canada .......................................................

4,521

5,196

5,066

4,736

4,369

24
25
26
27
28
29
30

Latin America and Carribbean............
Bahamas ...............................................
Bermuda ...............................................
Brazil .....................................................
British West Indies ............................
Mexico ...................................................
Venezuela .............................................

5,563
2,871
80
151
1,280
162
150

7,883
4,111
63
137
2,443
160
142

6,772
3,173
57
2,278
158
148

5,993
2,831
31
133
1,717
155
139

5,625
2,294
30
163
1,851
158
133

31
32
33

Asia ...........................................................
Japan .....................................................
Middle East oil-exporting countries3

922
307
18

829
207
16

216
17

818
222
21

697
190
20

34
35

Africa .........................................................
Oil-exporting countries4 ....................

181

204
26

227
23

277
41

253
49

69

44

4,121
179
518
448
262
224
818

203
724
580
298
269
905

36
37
38
39
40
41
42
43

52

All other5 .................................................
Commercial claims
Europe .......................................................
Belgium-Luxembourg ........................
France ...................................................
Germany ...............................................
Netherlands ...........................................
Switzerland ..........................................
United K ingdom ..................................

10

122

3,990
148
613
416
262
198
817

3,837
177
494
514
274
230
691

3,842
174
473
435
306
232
724

44

Canada .......................................................

1,110

1,121

1,127

1,171

847

45
46
47
48
49
50
51

Latin America and C aribbean..............
Bahamas ...............................................
Bermuda ...............................................
Brazil .....................................................
British West Indies ............................
Mexico ...................................................
Venezuela .............................................

2,544
109
215
626
9
506
292

2,391
117
241
491
10
489
274

2,403
98
118
499
25
584
296

2,598
16
154
568
13
650
346

2,859
21
197
647
16
704
342

52
53
54

Asia ...........................................................
Japan .....................................................
Middle East oil-exporting countries3

3,081
979
712

2,756
896
672

2,969
1,003
685

3,116
1,128
701

3,292
1,127

55
56

Africa .........................................................
Oil-exporting countries4 ....................

447
136

443
131

487
139

549
140

556
133

57

All other5 .................................................

179

189

220

239

1. For a description of the changes in the International Statistics tables, see July
1979 B u l l e t in , p. 550.
2. Prior to December 1978, foreign currency data include only liabilities de­
nominated in foreign currencies with an original maturity of less than one year.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

International Statistics □ May 1980

A68
3.26

DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Apr. 30, 1980

Rate on Apr. 30. 1980
Per­
cent
Argentina ..........................
Austria ..............................
Belgium ............................
Brazil ................................
Canada ..............................
Denmark ..........................

18.0
6.75
14.0
33.0
15.67
13.0

Country
Per­
cent

Month
effective
Feb.
Mar.
Mar.
Nov.
Apr.
Feb.

1972
1980
1980
1978
1980
1980

France ................................
Germany, Fed. Rep. of . .
Italy ....................................
Japan ................................
Mexico ..............................
Netherlands ......................

N o t e . 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, 1980

Country

Country

Month
effective

9.5
7.0
15.0
9.0
4.5
9.5

Aug.
Feb.
Dec.
Mar.
June
Nov.

1977
1980
1979
1980
1942
1979

Per­
cent
9.0

Norway ..............................
Sweden ..............................
Switzerland ......................
United Kingdom ..............
Venezuela ........................

Month
effective
Nov. 1979
Jan. 1980
Feb. 1980
Nov. 1979
May 1979

10.0
3.0
17.0
8.5

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 o f daily figures
1979
1977

Country, or type

1978

1980

1979
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Eurodollars .....................................................................
United Kingdom ...........................................................
Canada .............................................................................
Germany .........................................................................
Switzerland .....................................................................

6.03
8.07
7.47
4.30
2.56

8.74
9.18
8.52
3.67
0.74

11.96
13.60
11.91
6.64
2.04

15.00
16.09
14.19
9.57
3.97

14.51
16.71
14.02
9.54
5.67

14.33
17.30
13.93
8.79
5.45

15.33
17.72
13.96
8.94
5.19

18.72
18.07
14.72
9.51
6.57

17.81
17.70
16.31

6 Netherlands .....................................................................
7 France .............................................................................
8 Italy .................................................................................

4.73
9.20
14.26
6.95

6.53

9.33
9.44
11.85
10.48

11.86

14.56
12.55
16.01
14.49
8.42

11.85
12.31
17.00
14.38
8.44

11.99
12.63
17.88
14.45
9.10

11.48
13.94
18.12
16.23
12.37

10.76
12.84
16.91
17.10
13.51

1
2
3
4
5

9 Belgium ...........................................................................
10 Japan ...............................................................................

6.22

8.10
11.40
7.14
4.75

N o t e . Rates are for 3-month interbank loans except for the following:
Canada, finance company paper: Belgium, time deposits of 20 million

3.28

12.72
13.12
14.17
8.13

6.10

10.12
6.87

francs and over; and Japan, loans and discounts that can be called after
being held over a minimum of two month-ends.

FOREIGN EXCHANG E RATES
C ents per unit o f foreign currency
1979
Country/currency

1977

1978

1980

1979
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

1
2
3
4
5

Australia/dollar ..........................
Austria/schilling ........................
Belgium/franc ............................
Canada/dollar ............................
Denmark/krone ..........................

110.82
6.0494
2.7911
94.112
16.658

114.41
6.8958
3.1809
87.729
18.156

111.77
7.4799
3.4098
85.386
19.010

109.34
7.8345
3.4822
84.771
19.034

110.30
8.0039
3.5423
85.471
18.618

110.97
8.0689
3.5688
85.912
18.568

110.41
7.9815
3.5221
86.546
18.326

109.03
7.5539
3.3395
85.255
17.325

109.10
7.4513
3.3156
84.311
17.104

6
7
8
9
10

Finland/markka ..........................
France/franc................................
Germany/deutsche mark ..........
India/rupee ................................
Ireland/pound ............................

24.913
20.344
43.079
11.406
174.49

24.337
22.218
49.867
12.207
191.84

27.732
23.504
54.561
12.265
204.65

26.428
24.065
56.470
12.209
208.70

26.830
24.614
57.671
12.350
212.76

27.082
24.750
57.986
12.519
214.31

26.912
24.413
57.203
12.529
211.59

25.998
23.188
54.039
12.270
202.25

26.158
22.985
53.310
12.395
198.98

11
12
13
14
15

Italy/lira ......................................
Japan/yen ....................................
Malaysia/ringgit ........................
M exico/peso................................
Netherlands/guilder ..................

16
17
18
19
20

New Zealand/dollar ..................
Norway/krone .............................
Portugal/escudo..........................
South Africa/rand......................
Spain/peseta................................

96.893
18.789
2.6234
114.99
1.3287

103.64
19.079
2.2782
115.01
1.3073

21
22
23
24

Sri Lanka/rupee ........................
Sweden/krona ............................
Switzerland/franc ......................
United Kingdom/pound............

11.964
22.383
41.714
174.49

6.3834
22.139
56.283
191.84

.11328
.37342
40.620
4.4239
40.752

.11782
.47981
43.210
4.3896
46.284

.12112
.40834
45.661
4.3726
50.686

.12329
.41613
45.931
4.3768
52.092

102.23
19.747
2.0437
118.72
1.4896

96.813
19.928
1.9852
120.32
1.5051

98.100
20.092
2.0036
120.79
1.5039

98.690
20.373
2.0051
121.64
1.5124

97.960
20.483
2.0634
122.90
1.5006

95.451
19.815
2.0116
123.59
1.4446

94.704
19.739
1.9798
123.88
1.3918

6.4226
23.323
60.121
212.24

6.4053
23.677
60.870
213.52

6.4300
23.935
62.542
220.07

6.4323
24.112
62.693
226.41

6.4350
23.974
60.966
228.91

6.4098
23.008
56.710
220.45

6.1500
22.872
56.857
220.94

88.09

88.12

86.32

85.52

86.37

90.26

91.09

.12035
.45834
45.720
4.3826
49.843

.12427
.42041
45.868
4.3780
52.527

.12346
.40934
45.896
4.3789
51.886

.11635
.40246
44.956
4.3739
49.270

.11417
.39980
43.817
4.3779
48.570

M em o :

25 United States/dollar1 ................

103.31

92.39

1. Index 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




the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page
700 of the August 1978 B u l l e t in .
N ote.

Averages of certified noon buying rates in New York for cable transfers.

A69

Guide to
Tabular Presentation and Statistical Releases
G

u id e t o

Ta b u l a r P

r e s e n t a t io n

S y m b o ls a n d A b b r e v ia tio n s

c
e
p
r
*

Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is mil­
lions)

0
Calculated to be zero
n.a.
Not available
n.e.c.
Not elsewhere classified
IPCs
Individuals, partnerships, and corporations
REITs
Real estate investment trusts
RPs
Repurchase agreements
SMSAs
Standard metropolitan statistical areas
................. Cell not applicable

G en era l In fo rm a tio n

Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
“U.S. government securities” may include guaranteed is­
sues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obli­

S

t a t is t ic a l

gations of the Treasury. “State and local government” also
includes municipalities, special districts, and other political
subdivisions.
In some of the tables details do not add to totals because of
rounding.

R eleases

L is t P u b lish e d S em ia n n u a lly, w ith L a te s t B ulletin R e fe re n c e
Issue

Anticipated schedule of release dates for individual releases ........................




December 1979

Page

A-76

A70

Federal Reserve Board of Governors
P a u l A. V o l c k e r , Chairman
F r e d e r ic k H . S c h u l t z , Vice Chairman

H e n r y C . W a l l ic h
J. C h a r l e s P a r t e e

O f f ic e

O f f ic e o f S t a f f D ir e c t o r f o r
M o n e t a r y a n d F in a n c ia l P o l ic y

of

B

oard

M

em bers

A ssistan t to the B oard
a n , Special A ssistant to the Board
F r a n k O ’B r i e n , J r ., Special A ssistant to the Board
J o s e p h S . S i m s , Special A ssistant to the Board
D o n a l d J. W i n n , Special Assistant to the Board
Jo s e p h R . C o y n e ,

Ja y P a u l B r e n n e m

L egal D

D
Counsel

J. V ir g i l M a t t i n g l y , A ssistant General Counsel
G i l b e r t T . S c h w a r t z , A ssistant General Counsel

o f th e

Secretary

T h e o d o r e E. A l l i s o n , Secretary
G r i f f i t h L . G a r w o o d , D eputy Secretary
B a r b a r a R . L o w r e y , A ssistant Secretary
*C a th y L . P e t r y sh y n ,
tR iC H A R D

D

H.

Puckett,

iv is io n o f

and

S ta ff Director

to the Board

iv is io n

N e a l L. P e t e r s e n , General Counsel
R o b e r t E . M a n n i o n , D eputy General Counsel
C h a r l e s R . M c N e i l l , A ssistant to the General

O f f ic e

S t e p h e n H . A x il r o d ,

E d w a r d C . E t t i n , D eputy Staff D irector
M u r r a y A l t m a n n , A ssistant to the Board
P e t e r M . K e i r , A ssistant to the Board
S t a n l e y J. S i g e l , A ssistant to the Board
N o r m a n d R . V . B e r n a r d , Special A ssistant

Com

A ssistant Secretary
A ssistant Secretary

C o nsu m er
A f f a ir s

m u n it y

J a n e t O . H a r t , D irector
N a t h a n i e l E . B u t l e r , A ssociate D irector
J e r a u l d C . K l u c k m a n , A ssociate D irector

iv is io n o f

R esearch

and

iv is io n o f

B a n k in g

S

u p e r v is io n a n d

R

e g u l a t io n

D irector
A ssociate D irector
W i l l i a m T a y l o r , A ssociate D irector
W i l l i a m W . W i l e s , A ssociate D irector
J a c k M . E g e r t s o n , A ssistant D irector
R o b e r t A. J a c o b s e n , A ssistant D irector
D o n E . K l i n e , A ssistant D irector
R o b e r t S . P l o t k i n , A ssistant D irector
T h o m a s A. S i d m a n , A ssistant D irector
S a m u e l H . T a l l e y , A ssistant D irector
Jo h n E . R y a n ,

F r e d e r ic k R . D a h l ,




t a t is t ic s

J a m e s L . K i c h l i n e , D irector
J o s e p h S . Z e i s e l , D eputy Director
J o h n H . K a l c h b r e n n e r , A ssociate D irector
M i c h a e l J. P r e l l , A ssociate Director
R o b e r t A. E i s e n b e i s , Senior D eputy A ssociate D irector
t J o H N J . M i n g o , Senior D eputy A ssociate D irector
E l e a n o r J . S t o c k w e l l , Senior D eputy A ssociate
J a m e s M . B r u n d y , D eputy A ssociate D irector

D irector

J a r e d J. E n z l e r , D eputy A ssociate D irector
J . C o r t l a n d G . P e r e t , D eputy A ssociate D irector
H

elm ut

F. W

endel

,

D eputy A ssociate D irector

M a r t h a B e t h e a , A ssistant D irector
R o b e r t M . F i s h e r , A ssistan t D irector
F r e d e r i c k M . S t r u b l e , A ssistant D irector
S t e p h e n P . T a y l o r , A ssistant D irector
L e v o n H . G a r a b e d i a n , A ssistant Director (Administration)

D

iv is io n o f

In t e r n a t io n a l F in a n c e

E d w i n M. T r u m a n , D irector
R o b e r t F. G e m m i l l , A ssociate

D

S

D irector
A ssociate D irector
C h a r l e s J . S i e g m a n , A ssociate D irector
S a m u e l P i z e r , Staff A dviser
J e f f r e y R . S h a f e r , D eputy A ssociate D irector
D a l e W. H e n d e r s o n , A ssistant Director
L a r r y J . P r o m i s e l , A ssistant Director
R a l p h W. S m i t h , J r . , A ssistant D irector
G eorge

B.

H

enry,

A71

and Official Staff
N an cy H . T eeters
E m m e t t J. R i c e

O f f ic e o f
S ta f f D ir e c t o r

for

M

O f f ic e o f S t a f f D ir e c t o r f o r
F e d e r a l R e s e r v e B a n k A c t iv it ie s

anagem ent

J o h n M . D e n k l e r , S ta ff D irector
E d w a r d T . M u l r e n i n , A ssistant S ta ff D irector
J o s e p h W . D a n i e l s , S r . , D irector o f Equal Em ploym ent

W i l l i a m H . W a l l a c e , S taff D irector
H a r r y A . G u i n t e r , A ssistant D irector

fo r Contingency

Planning

Op­

portunity
D
D

iv is io n o f

L.

D

P

ata

r o c e s s in g

D irector
A ssociate D irector
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 i n s , A ssistant D irector
R o b e r t J. Z e m e l , A ssistan t D irector
C harles

B ruce M . B

D

pton

,

ear d sley

Ham

,

iv is io n o f

P ersonnel

D a v id L . S h a n n o n ,

D irector

J o h n R . W e i s , A ssistant D irector
C h a r l e s W . W o o d , A ssistant D irector

O f f ic e

o f th e

Jo h n K a k a l e c ,

C ontroller

Controller
A ssistant Controller

G eorg e E . L iv in g s t o n ,

D

iv is io n o f

D onald E. A
W

alter

S

upport

n d er so n

W . K r e im

,

ann

,

S e r v ic e s

Director
A ssociate D irector

*On loan from the Federal Reserve Bank of Cleveland.
+On leave of absence.




iv is io n o f

Ban

k

F e d eral R eserve

O p e r a t io n s

J a m e s R . K u d l i n s k i , D irector
C l y d e H . F a r n s w o r t h , J r ., D eputy

D irector
A ssistant D irector
C h a r l e s W . B e n n e t t , A ssistant D irector
L o r i n S . M e e d e r , A ssistan t Director
P . D . R i n g , A ssistant D irector
R a y m o n d L . T e e d , A ssistant Director
W alter A

lth ausen

,

A ll

Federal Reserve Bulletin □ May 1980

FOMC and Advisory Councils
Federal Open M

arket

C o m m it t e e

P a u l A . V o l c k e r , Chairman

A n t h o n y M . S o l o m o n , Vice Chairman
E m m e t t J. R ic e
L a w r e n c e K. R o o s
F r e d e r ic k H . S c h u lt z

R oger G u ffe y
F r a n k E . M o r r is
J. C h a r l e s P a r t e e

M u r r a y A l t m a n n , Secretary
N o r m a n d R . V . B e r n a r d , A ssistant Secretary
N e a l L. P e t e r s e n , General Counsel
J a m e s H . O l t m a n , D eputy General Counsel
R o b e r t E . M a n n i o n , A ssistant General Counsel
S t e p h e n H . A x i l r o d , Econom ist
A l a n R . H o l m e s , A dviser fo r M arket Operations
A n a t o l B a l b a c h , A ssociate Econom ist
J o h n D a v i s , A ssociate Econom ist

N a n c y H. T e e t e r s
H e n r y C. W a llic h
W i l l i s J. W in n

R i c h a r d G . D a v i s , A ssociate Econom ist
T h o m a s D a v i s , A ssociate Econom ist
R o b e r t E i s e n m e n g e r , A ssociate Econom ist
E d w a r d C. E t t i n , A ssociate Econom ist
G e o r g e B. H e n r y , A ssociate Econom ist
P e t e r M. K e i r , A ssociate Econom ist
J a m e s L. K i c h l i n e , A ssociate Econom ist
E d w i n M. T r u m a n , A ssociate Econom ist
J o s e p h S. Z e i s e l , A ssociate Econom ist

P e t e r D. S t e r n l i g h t , M anager fo r D om estic Operations, System Open M arket Account
S c o t t E . P a r d e e , M anager fo r Foreign Operations, System Open M arket Account

Federal A

d v is o r y

C

o u n c il

C l a r e n c e C . B a r k s d a l e , Eighth District, President
J a m e s D. B e r r y , Eleventh District, Vice President
H e n r y S. W o o d b r i d g e , J r ., First District
D o n a l d C . P l a t t e n , Second District
W i l l i a m B. E a g l e s o n , J r ., Third District
M e r l e E . G i l l i a n d , Fourth District
J. O w e n C o l e , Fifth District

R o b e r t S t r i c k l a n d , Sixth District
R o g e r E. A n d e r s o n , Seventh District
C l a r e n c e G . F r a m e , Ninth District
G o r d o n E. W e l l s , Tenth District
C h a u n c e y E. S c h m i d t , Twelfth District

H e r b e r t V . P r o c h n o w , Secretary
W i l l i a m J. K o r s v i k , A ssociate Secretary

C o n su m e r A d v is o r y C o u n c il
W i l l i a m D. W a r r e n , L o s Angeles, California, Chairman
M a r c i a A. H a k a l a , Omaha, Nebraska, Vice Chairman
J u l i a H . B o y d , Washington, D .C .
R o l a n d E . B r a n d e l , San Francisco, California
E l l e n B r o a d m a n , Washington, D.C.
J a m e s L . B r o w n , M ilw a u k e e , W is c o n s in
M a r k E . B u d n i t z , A tla n ta , G e o r g ia
R o b e r t V . B u l l o c k , F r a n k fo r t, K e n tu c k y
R ic h a r d S . D ’A g o s t i n o , P h ila d e lp h ia , P e n n sy lv a n ia
J o a n n e F a u l k n e r , N e w H a v e n , C o n n e c tic u t
V e r n a r d W . H e n l e y , R ic h m o n d , V ir g in ia
J u a n J e s u s H i n o j o s a , M c A lle n , T e x a s
S h ir l e y T . H o s o i , L o s A n g e le s , C a lifo r n ia
F . T h o m a s J u s t e r , A n n A r b o r , M ic h ig a n
R ic h a r d F . K e r r , C in c in n a ti, O h io
R o b e r t J. K l e i n , N e w Y o r k , N e w Y o r k




H a r v e y M. K u h n l e y , Minneapolis, Minnesota
T h e R e v . R o b e r t J. M c E w e n , S.J., Boston, M assachusetts
R . C. M o r g a n , El Paso, Texas
M a r g a r e t R e i l l y - P e t r o n e , Upper Montclair, N ew Jersey
R e n e R e i x a c h , Rochester, N ew York
F l o r e n c e M . R ic e , N ew York, N ew York
R a l p h J. R o h n e r , Washington D.C.
H e n r y B. S c h e c h t e r , Washington, D.C.
P e t e r D. S c h e l l i e , Washington, D.C.
E. G. S c h u h a r t , II, Amarillo, Texas
C h a r l o t t e H . S c o t t , Charlottesville, Virginia
R i c h a r d A. V a n W i n k l e , Salt Lake City, Utah
R i c h a r d D. W a g n e r , Simsbury, Connecticut
M a r y W . W a l k e r , Monroe, Georgia

A73

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BA N K ,
branch, or fa c ility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON* .................... .02016

Robert M. Solow
Robert P. Henderson

Frank E. Morris
James A. McIntosh

NEW YORK* ............... 10045

Robert H. Knight
Boris Yavitz
Frederick D. Berkeley, III

Anthony M. Solomon
Thomas M. Timlen

John W. Eckman
Werner C. Brown

David P. Eastbum
Richard L. Smoot

Robert E. Kirby
J. L. Jackson
Lawrence H. Rogers, II
William H. Knoell

Willis J. Winn
Walter H. MacDonald

Maceo A. Sloan
Steven Muller
Catherine Byrne Doehler
Robert E. Elberson

Vice President
in charge o f branch

Robert P. Black
George C. Rankin

Buffalo.......................... 14240
PHILADELPHIA

.19105

CLEVELAND* ............ .44101
Cincinnati.................... .45201
Pittsburgh.................... 15230
RICHMOND* ................ 23261
Baltim ore......................21203
Charlotte ......................28230

John T. Keane

Robert E. Showaiter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne

C u lpeper C o m m u n ica tio n s
an d R e c o rd s C e n ter 22701

ATLANTA .................... 30303
Birmingham ............... 35202
Jacksonville ............... 32203
Miami .......................... .33152
Nashville .................... 37203
New O rleans............... 70161
CHICAGO*.................... 60690
D etroit.......................... 48231
ST. LOUIS .................... .63166
Little R o c k .................. 72203
L ou isville.................... 40232
Memphis .................... ,38101
M INN EAPO LIS............ 55480
H elena.......................... 59601
K ANSAS CITY ............ 64198
D enver.......................... 80217
Oklahoma City............ 73125
Om aha.......................... 68102
DALLAS ....................... 75222
El Paso.......................... .79999
H ouston ....................... 77001
San Antonio ............... 78295
SA N FRANCISCO

, ,94120

Los Angeles ..............
Portland.......................
Salt Lake C it y ............
S ea ttle ..........................

90051
97208
84125
98124

Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Harold B. Blach, Jr.
Joan W. Stein
David G. Robinson
Robert C. H. M athews, Jr.
George C. Cortright, Jr.

Vacancy
Robert P. Forrestall

John Sagan
Stanton R. Cook
Howard F. Sims

Robert P. Mayo
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Richard O. Donegan
Charles S. Youngblood

Lawrence K. Roos
Donald W. Moriarty, Jr.

Stephen F. Keating
William G. Phillips
Patricia P. Douglas

Mark H. Willes
Thomas E. Gainor

Joseph H. Williams
Paul H. Henson
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder

Roger Guffey
Henry R. Czerwinski

Irving A. Mathews
Gerald D. Hines
Chester J. K esey
Gene M. Woodfin
Carlos A. Zuniga

Ernest T. Baughman
Robert H. Boykin

Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
Loran L. Stewart
Wendell J. Ashton
Lloyd E . Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
Pierre M.Viguerie

William C. Conrad

John F. Breen
Donald L. Henry
Robert E. Matthews

Betty J. Lindstrom

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Joel L. K oonce, Jr.
J. Z. Rowe
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A74

Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES.
ROOM MP-510, BOARD OF GOVERNORS OF THE FED­
ERAL RESERVE SYSTEM , W ASHINGTON, D.C. 20551.
When a charge is indicated, rem ittance should accom pany

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B a n k C r e d i t - C a r d a n d C h e c k - C r e d i t P l a n s . 1968. 102
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S u r v e y o f C h a n g e s in F a m i l y F i n a n c e s . 1968. 321 pp .
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A75

C o n s u m e r E d u c a t io n P a m p h l e t s
Short pam phlets suitable fo r classroom use. Multiple
copies available without charge.
The Board o f Governors o f the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors,
Lawyers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
H ow to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You U se A Credit Card
Truth in Leasing
U .S. Currency
What Truth in Lending Means to You

M e a s u r e m e n t o f C a p a c ity U t i l i z a t i o n : P r o b le m s a n d
T a s k s , by Frank de Leeuw, Lawrence R. Forest, Jr.,

Richard D. Raddock, and Zoltan E. K enessey. July 1979.
264 pp.
The

M a rk et f o r F e d e r a l F u n d s a n d R ep u rch a se
A g r e e m e n t s , by Thomas D . Simpson. July 1979. 106 pp.
I m p a c t o f B a n k H o l d i n g C o m p a n ie s o n C o m p e t i t i o n
a n d P e r f o r m a n c e i n B a n k i n g M a r k e t s , by Stephen

A. Rhoades and Roger D. Rutz. Aug. 1979. 30 pp.
T h e G N M A -G u a r a n te e d P a s s th r o u g h S e c u r ity : M a r­
k e t D e v e lo p m e n t a n d I m p lic a tio n s f o r t h e G r o w th
a n d S t a b i l i t y o f H o m e M o r t g a g e L e n d i n g , by
David F . Seiders. D ec. 1979. 65 pp.

Printed in Full in the Bulletin
B a n k H o l d i n g C o m p a n i e s , by
Robert J. Lawrence and Samuel H. Talley. January 1976.

A n A ssessm en t o f

R
S t a f f S t u d ie s
Studies and papers on economic and financial subjects that
are o f general interest.

Summaries Only Printed in the Bulletin
R equests to obtain single copies o f the fu ll text or to be
added to the mailing list fo r the series m ay be sent to Pub­
lications Services.
I n t e r e s t R a t e C e i l i n g s a n d D i s i n t e r m e d i a t i o n , by Ed­

ward F. M cK elvey. Sept. 1978. 105 pp.
T h e R e la tio n s h ip B e t w e e n R e se r v e R a tio s a n d t h e
M o n e ta r y A g g r e g a te s U n d e r R e se r v e s a n d F e d ­
e r a l F u n d s R a t e O p e r a t i n g T a r g e t s , by Kenneth J.

Kopecky. D ec. 1978. 58 pp.
T ie - in s B e t w e e n t h e G r a n t i n g o f C r e d i t a n d S a l e s o f
I n s u r a n c e b y B a n k H o l d i n g C o m p a n ie s a n d O t h e r
L e n d e r s , by Robert A . Eisenbeis and Paul R. Schweitzer.

Feb. 1979. 75 pp.
G e o g r a p h i c E x p a n s i o n o f B a n k s a n d C h a n g e s in B a n k ­
i n g S t r u c t u r e , by Stephen A. Rhoades. Mar. 1979. 40

pp.
I m p a c t o f t h e D o l l a r D e p r e c i a t i o n o n t h e U .S. P r i c e
L e v e l: A n A n a l y t i c a l S u r v e y o f E m p ir ic a l E s t i­
m a t e s , by Peter Hooper and Barbara R . Lowrey. Apr.

1979. 53 pp.
I n n o v a t i o n s in B a n k L o a n C o n t r a c t i n g : R e c e n t E v i­
d e n c e by Paul W. Boltz and Tim S. Campbell. May 1979.

40 pp.




e p r in t s

Except fo r Staff Studies, and som e leading articles, m ost
o f the articles reprinted do not exceed 12 p a g es.
Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
A ssets and Liabilities o f Foreign Branches o f U .S . Banks.
2/72.
Bank Debits, D eposits, and Deposit Turnover—Revised
Series. 7/72.
Yields on Newly Issued Corporate Bonds. 9/72.
Yields on Recently Offered Corporate Bonds. 5/73.
Rates on Consumer Instalment Loans. 9/73.
N ew Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power U se. 1/76.
Revision of Money Stock Measures. 2/76.
Revised Series for Member Bank Deposits and Aggregate Re­
serves. 4/76.
Industrial Production— 1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
N ew Estimates of Capacity Utilization: Manufacturing and
Materials. 11/76.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970’s. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation o f the International Banking Act. 10/79.
Changes in Bank Lending Practices, 1977-79. 10/79.
U .S. International Transactions in 1979: Another Round of
Oil Price Increases. 4/80.

A76

Index to Statistical Tables
References are to pages A-3 through A -6 8 although the prefix “A ” is om itted in this index
ACCEPTANCES, bankers, 10, 25, 27
Agricultural loans, commercial banks, 18,20-22, 26
Assets and liabilities (See also Foreigners)
Banks, by classes, 16, 17 ,1 8 ,2 0 -2 3 ,2 9
Domestic finance companies, 39
Federal Reserve Banks, 11
Nonfinancial corporations, current, 38
Automobiles
Consumer installment credit, 42,43
Production, 4 8 ,4 9
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
Yields, 3
Branch banks
Assets 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, 11
Central banks, 68
Certificates of deposit, 23,27
Commercial and industrial loans
Commercial banks, 15, 18,26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks
A ssets and liabilities, 3, 15-19, 20-23
Business loans, 26
Commercial and industrial loans, 24, 26
Consumer loans held, by type, 42,43
Loans sold outright, 23
Number, by classes, 16, 17, 19
Real estate mortgages held, by type o f holder and
property, 41
Commercial paper, 3, 25, 27, 39
Condition statements (See A ssets and liabilities)
Construction, 46, 50
Consumer installment credit, 42,43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits, taxes, and dividends, 37
Security issues, 36, 65
Cost of living (See Consumer prices)
Credit unions, 2 9 ,4 2 ,4 3
Currency and coin, 5, 16, 18
Currency in circulation, 4, 13
Customer credit, stock market, 28
DEBITS to deposit accounts, 12
Debt (See specific types o f debt or securities)
Demand deposits
Adjusted, commercial banks, 12, 15, 19
Banks, by classes, 1 6 ,1 7 ,1 9 ,2 0 -2 3
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 14
Turnover, 12




Deposits (See also specific types)
Banks, by classes, 3, 16, 17, 19, 20-23, 29
Federal Reserve Banks, 4, 11
Subject to reserve requirements, 14
Turnover, 12
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 10, 11, 12, 34
Federal and federally sponsored credit agencies, 35
Federal finance
Debt subject to statutory limitation and types and
ownership o f gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 3 ,6 ,1 8 , 20, 21, 2 2 ,2 7 ,3 0
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35,4 0 ,4 1
Federal Housing Administration, 35,40,41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35,41
Federal National Mortgage Association, 3 5 ,40,41
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U .S . government securities held, 4, 11, 12, 32, 33
Federal Reserve credit, 4, 5, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 20-22
Float, 4
Flow o f funds, 44,45
Foreign
Currency operations, 11
Deposits in U .S. banks, 4, 11, 19, 20, 21, 22
Exchange rates, 68
T rade,55
Foreigners
Claims on, 56, 58, 61, 62, 63,67
Liabilities to, 23, 56-60, 64-66
GOLD
Certificates, 11
S tock ,4,55
Government National Mortgage Association, 35 ,4 0 ,4 1
Gross national product, 52, 53
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46,48
Installment loans, 42,43
Insurance com panies, 29,3 2 , 33,41

A ll

Insured commercial banks, 17, 18, 19
Interbank loans and deposits, 16, 17
Interest rates
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 7
Foreign countries, 68
Money and capital markets, 3, 27
Mortgages, 3 ,40
Prime rate, commercial banks, 26
Time and savings deposits, 9
International capital transactions of the United States, 56-67
International organizations, 56-61,64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific typ es)
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16,17,18
Federal Reserve Banks, 11, 12
Life insurance companies, 29
Savings and loan associations, 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 16, 17, 18, 20-23, 29
Commercial banks, 3, 15-18, 20-2 3 ,2 4 ,2 6
Federal Reserve Banks, 3, 4, 5, 7, 11, 12
Insurance companies, 29,41
Insured or guaranteed by United States, 40,41
Savings and loan associations, 29
M ANUFACTURING
Capacity utilization, 46
Production, 46,49
Margin requirements, 28
Member banks
A ssets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 11
Federal funds and repurchase agreements, 6
Number, by classes, 16, 17, 19
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 14
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 14
M oney and capital market rates (See Interest rates)
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9, 20-22, 29, 32, 33, 41
NATIONAL banks, 17
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 10
PERSONAL income, 53
Prices
Consumer and producer, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46,48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 18, 20-22, 29,41




Real estate loans—Continued
Life insurance companies, 29
Mortgage terms, yields, and activity, 3 ,4 0
Type o f holder and property mortgaged, 41
Repurchase agreements and federal funds, 6
Reserve requirements, member banks, 8
Reserves
Commercial banks, 16, 18, 20, 21, 22
Federal Reserve Banks, 11
Member banks, 3, 4, 5, 14, 16, 18
U .S . reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 4 2 ,4 3 ,4 6
SAVING
Flow o f funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 9, 29, 33, 41, 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, 11, 54, 55
State and local governments
Deposits, 19,20, 21, 22
Holdings of U .S. government securities, 32, 33
N ew security issues, 36
Ownership of securities of, 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
TAX receipts, federal, 31
Time deposits, 3, 9, 12, 14, 16, 17, 19, 20, 21, 22, 23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 30
Treasury operating balance, 30
UNEM PLOYM ENT, 47
U .S . balance of payments, 54
U .S. government balances
Commercial bank holdings, 1 9 ,2 0 ,2 1 ,2 2
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4, 11, 30
U .S . government securities
Bank holdings, 16, 17, 1 8 ,2 0 ,2 1 ,2 2 ,2 9 ,3 2 ,3 3
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 11, 12, 32, 33
Foreign and international holdings and transactions, 11,
32, 64
Open market transactions, 10
Outstanding, by type and ownership, 32,33
Rates, 3,27
Utilities, production, 49
VETERANS Administration, 40,41
W EEKLY reporting banks, 20-24
Wholesale prices, 46, 51
YIELDS (See Interest rates)

A78

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

Helena

D etroit

Chicago
Omaha*

jSalt lake City

Louisville

Kansas City

t.

Louis
^ M m p his Hashvjll*

\Oklahoma Cit j

'"geles
A ttleR ock

B ir m in g h a n ^ la flt(f

Houston!
tan Antonio

January 1978

ALASKA

Legend

Boundaries of Federal Reserve Districts

®

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

•

Federal Reserve Branch Cities

* Federal Reserve Bank Facility
©

Board of Governors of the Federal Reserve
System