Full text of Federal Reserve Bulletin : November 1976
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N O V E M B E R 1976
FEDERAL RESERVE
BULLETIN
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FEDERAL RESERVE BULLETIN
N U M B E R 11 •
V O L U M E 62 •
N O V E M B E R 1976
CONTENTS
A1
885 Domestic Financial Developments
in the Third Quarter of 1976
Financial and Business Statistics
A1 Contents
A2 U.S. Statistics
A58 International Statistics
892 New Estimates
of Capacity Utilization:
Manufacturing and Materials
A76 Board of Governors and Staff
906 Statements to Congress
A78 Open Market Committee and Staff;
Federal Advisory Council
916 Record of Policy Actions
of the Federal Open Market Committee
A79 Federal Reserve Banks and Branches
928 Law Department
A80 Federal Reserve Board Publications
973 Announcements
A82 Index to Statistical Tables
978 Industrial Production
A84 Map of Federal Reserve System
Inside Back Cover:
Guide to Tabular Presentation and
Statistical Releases
PUBLICATIONS COMMITTEE
Lyle E. Gramley
Stephen H. Axilrod
Joseph R. Coyne
Janet O. Hart
John M. Denkler
John D. Hawke, Jr.
James L. Kichline, Staff Director
The Federal Reserve BULLETIN is issued monthly under the direction of the staff publications committee. This
committee is responsible for opinions expressed except in official statements and signed articles. Direction for
the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed
by Elizabeth B. Sette.
Domestic Financial Developments
in the Third Quarter of 1976
This report, which was sent to the Joint Economic Committee of the U.S. Congress on November 12, 1976, highlights the important developments in financial markets during the
summer and early fall.
The volume of funds raised in financial markets
increased slightly, on a seasonally adjusted
basis, from the second to the third quarter of
1976. However, the supply of credit remained
ample, with especially strong flows of funds
through financial institutions, and interest rates
registered modest declines. By early October
both short- and long-term market rates of interest were lA to
of a percentage point below
their levels of late June, and bond rates generally were at or near their lowest levels in 2Vi
years.
Growth in Mx—currency and demand deposits held by the public—slowed from an un-
usually high annual rate of 8.4 per cent in the
second quarter to 4.1 per cent in the third.
Nevertheless, expansion in the broader monetary aggregates, which include interest-bearing
deposits, continued at a relatively rapid pace;
M 2 and M 3 grew at annual rates of 9.2 and 11.6
per cent, respectively. Changes in financial
technology that have occurred in recent years
continued to induce the public to place in savings deposits some of the transactions and precautionary balances that would otherwise have
been held in demand accounts. In addition,
inflows into time and savings accounts other
than large certificates of deposit (CD's)
strengthened at both commercial banks and
thrift institutions as declining open market
yields enhanced the attractiveness of these deposits relative to other investment alternatives.
Large deposit inflows permitted savings and
loan associations to acquire a record volume of
Interest rates
NOTES:
Monthly averages except for
F.R. discount rate and conventional mortgages (based on quotations for one day each month).
Yields: U.S. Treasury bills, market
yields on 3-month issues; prime
commercial paper, dealer offering
rates; Conventional mortgages,
rates on first mortgages in primary
markets, unweighted and rounded
to nearest 5 basis points, from
Dept. of Housing and Urban Development; Aaa utility bonds,
weighted averages of new publicly
offered bonds rated Aaa, Aa, and
A by Moody's Investors Service
and adjusted to Aaa basis; U.S.
Govt, bonds, market yields adjusted to 20-year constant maturity
by U.S. Treasury; State and local
govt, bonds (20 issues, mixed
quality) Bond Buyer.
886
Federal Reserve Bulletin • November 1976
Yields on U.S. Government securities relative
to deposit rate ceilings at commercial banks
and major thrift institutions
new home mortgages in the third quarter, and
the flow of funds to all mortgage markets combined rose sharply to a 3-year high. Meanwhile,
the growth in total loans and investments of
commercial banks picked up from the sluggish
pace of the preceding 2 years. Nearly all major
components of bank credit—the most notable
exception being Treasury security holdings—
grew more rapidly than in the second quarter.
The outstanding amount of short-term business credit remained essentially unchanged on
balance during the third quarter, while public
bond offerings by domestic corporations
dropped more than seasonally. Much of the
decline in the issuance of long-term debt reflected a lower volume of public issues by
industrial corporations; such firms had made
substantial progress in improving their liquidity
positions through the funding of short-term debt
in 1975 and early 1976, and their needs for
external funds to finance new investment remained moderate. New stock offerings also
Per cent per a n n u m
Ceilings at S&L's and MSB's
Yield curve
June 30, 1976
Yield curve
September 30, 1976
Ceilings at commercial banks
WSmmmsmSBa^mSmm
2
3
4
5
Years to maturity
Deposit ceilings are the maximum interest rates payable on
deposits of varying maturities under $100,000, as determined
by the various Federal regulatory agencies. Yield curves are
based on selected U.S. Government securities yields, all of
which are calculated on an investment basis.
TABLE 1
Changes in selected monetary aggregates
In per cent, seasonally adjusted annual rates
1976
1975
Item
1974
1975
Q4
Member bank reserves:
Total
Nonborrowed
Qi
Q2
Q3
6.8
7.6
-.2
3.2
.6
2.7
-3.8
-3.2
.8
.5
3.0
3.0
5.0
7.7
7.1
10.6
9.0
4.4
8.3
11.1
6.5
9.7
2.3
6.4
9.4
6.7
9.4
2.7
9.7
11.2
5.4
8.4
8.4
10.8
12.0
6.6
9.3
4.1
9.2
11.6
5.9
9.4
10.1
6.5
12.7
6.1
11.7
17.0
8.0
15.8
9.8
14.4
6.6
14.2
15.3
28.3
5.6
13.7
12.5
21.7
5.1
14.0
13.2
13.4
12.7
15.4
9.8
4.3
6.0
2.3
2.4
3.8
23.4
-5.3
1.9
-6.0
-5.8
-4.6
-1.7
-.2
.5
-.7
.2
.7
Concepts of money 1 :
MX
M2
M3
M4
M5
Time and savings deposits at:
Commercial banks (other than
large CD's)
Savings
Other time
Thrift institutions 2
Bank credit proxy 3
MEMO (change in billions of
dollars, seasonally adjusted):
Large CD's
U.S. Govt, demand deposits at all
member banks
NOTES:
1
M 1 is currency plus private demand deposits adjusted.
M 2 is M i plus bank time and
savings deposits adjusted other
than large CD's.
M 3 is M 2 plus deposits at mutual
savings banks and savings and
loans and credit union shares.
M 4 is M 2 plus large negotiable
CD's.
M 5 is M 3 plus large negotiable
CD's.
2
Savings and loan associations,
mutual savings banks, and credit
unions.
3
Total member bank deposits
plus funds provided by Euro-dollar
borrowings and bank-related commercial paper.
NOTE.—Changes are calculated
from the average amounts outstanding in each quarter. Annual
rates of change in reserve measures
have been adjusted for changes in
reserve requirements.
Domestic Financial Developments, Q3 1976
were lower, and stock prices remained generally
unchanged over most of the summer before
declining slightly late in September.
Treasury borrowing increased about seasonally from the second-quarter rate. The Treasury
continued to lengthen the maturity of its outstanding debt by financing the third-quarter deficit almost entirely with coupon issues. State
and local government offerings of new longterm issues, after adjustment for normal seasonal variation, remained near the heavy volume
of the first half of the year.
887
Changes in the income velocity of Mj and M 2
Percentage rate of change
•20
MONETARY AGGREGATES
AND BANK RESERVES
The quarterly-average growth rate of the narrowly defined money stock, Mu during the
summer was somewhat below the average pace
of the first half of 1976 and brought the growth
rate for the first three quarters of the year to
5.1 per cent. The deceleration in the third quarter reflected mainly a very sluggish performance
in September when there was a slight absolute
decline. However, growth of Mx subsequently
rebounded sharply in October. During September and early October, weekly movements
in Mi displayed exceptional volatility, apparently resulting in some degree from the transitory effects of large week-to-week swings in
Treasury deposits at commercial banks and at
the Federal Reserve Banks.
The growth rates of M 2 and M 3 decreased
only slightly in the third quarter as the rapid
expansion of the time and savings deposit components of these measures remained quite
strong. At commercial banks, growth in time
and savings deposits (other than negotiable
CD's at large banks), measured on a quarterlyaverage basis, increased slightly on balance
from 12.5 per cent in the second quarter to 13.2
per cent in the third. Deposits at savings and
loan associations, mutual savings banks, and
credit unions advanced at a 15.4 per cent annual
rate during the summer months, a somewhat
higher rate of growth than the 14.0 per cent
increase of the previous quarter. The acceler-
Data are at seasonally adjusted annual rates of growth.
ation in deposit growth at both types of institutions accompanied a decline in market rates of
interest—especially in the 1- to 4-year maturity
range—that made interest-bearing deposits at
financial institutions more competitive with
open market instruments.
Preliminary estimates indicate that gross national product (GNP) rose at an 8V2 per cent
rate in the third quarter; consequently, the income velocity of M1—that is, the ratio of GNP
to Mx—increased by more than 4 per cent at
an annual rate. The rise in Mx velocity during
the current economic upswing has been substantially larger than in other postwar recoveries, even though short-term interest rates
generally have fallen since the cyclical trough
(in contrast to the cumulative increases of interest rates in most of the upswings in the postwar
period). The income velocity of M 2 , on the other
hand, fell during the quarter and is now roughly
in line with its historical cyclical pattern.
Several factors have contributed to the diver-
888
Federal Reserve Bulletin • November 1976
gent patterns of change in these two velocity
measures over the course of the current recovery. First, since the mid-1940's the velocity of
Mi has tended to rise faster than the velocity
of M 2 , as money holders have continued to
expand their interest-bearing deposits while
economizing on transactions balances that do
not pay interest. Second, recent regulatory
changes have established several interest-bearing alternatives to demand deposits—such as
negotiable orders of withdrawal (NOW) accounts and savings accounts for businesses and
State and local government units—that may be
used for transactions balances and that are included in the broader monetary aggregates but
not in Mi. In recent quarters, utilization of these
financial alternatives continued to spread. Finally, as market interest rates fell to levels near
or below the maximum rates allowed on interest-bearing deposits, the time and savings deposit components of the broader aggregates became more attractive for investment purposes.
Both total reserves and nonborrowed reserves
of member banks increased at a 3.0 per cent
annual rate over the quarter. This moderate
increase in reserves was sufficient to support
substantial growth in the money stock mainly
because the volume of large negotiable CD's
outstanding continued to decline, thereby releasing reserves to support the expansion of
other deposits.
B A N K CREDIT
AND COMMERCIAL PAPER
Total loans and investments at commercial
banks expanded at a 7 per cent annual rate
during the third quarter (on an end-of-month
basis) as all major types of loans except those
to nonbank financial institutions increased.
Business loans expanded at a 3.5 per cent annual
rate in the third quarter, in contrast to the
declines registered in earlier quarters this year;
some of this increase was associated with acquisitions of highly liquid bankers acceptances
in September by large money center banks,
partly for end-of-quarter statement purposes.
Major categories of
bank loans
Components of
bank credit
Change, billions of dollars
TREASURY SECURITIES
„
12
BUSINESS
•JUL- o
LJ
1
n»
T
..
4
o
REAL ESTATE
OTHER SECURITIES
n,n
JUL
n nn
CONSUMER
n
n , n
n
fl n
NONBANK FINANCIAL
| J
U ^
Q3
Q4
-
Q3
Q4
1975
Q1
Q2
1976
Q3
1975
Ql
u
u
Q2
Q3
{9
1976
Seasonally adjusted. Total loans and business loans adjusted
for transfers between banks and their holding companies,
affiliates, subsidiaries, or foreign branches.
Bank holdings of municipal and other securities increased significantly in the third quarter,
after declining on balance during the previous
year. The renewed interest by banks in tax-exempt issues probably reflects their stronger
profit positions, as well as some dissipation of
the uncertainty surrounding the financial condition of several State and local units. Holdings
of Treasury securities—which have accounted
for most of the growth in bank credit in recent
periods—were unchanged for the quarter, although banks lengthened the maturity of their
Treasury portfolios. At large banks, for example, acquisitions of coupon issues and a contemporaneous liquidation of bills raised the
proportion of Treasury securities maturing in 1
year or more to about 60 per cent of total
Treasury holdings at the end of September—
considerably higher than the 50 per cent
proportion in late 1975, but still below the 65
to 70 per cent range that had prevailed during
the preceding decade.
Although commercial banks lowered the rate
on loans to prime borrowers lA of a percentage
point in July and again in late September (to
Domestic Financial Developments, Q3 1976
TABLE 2
Rate spreads and changes in
business loans and commercial paper
Change
Period
Rate
spread1
(basis
points)
Business
loans 2
Commercial
paper3
Total
In billions of dollars,
seasonally adjusted
Annual
rate for
total
(per
cent)
1975—
Q1 ..
Q2 ..
Q3 ..
Q4..
237
170
121
192
-2.4
-4.0
-1.4
.3
.8
-1.5
-.3
-1.6
-1.6
-5.5
-1.7
-1.3
-3.2
-11.1
-3.5
-2.7
1976—
Q1 ••
Q2 ..
Q3 ..
194
171
193
-3.3
-1.0
1.5
.8
1.9
-1.2
-2.5
.9
.3
-5.3
1.9
.6
July
Aug.
Sept.
196
191
191
.8
-.3
1.0
.1
.1
-1.4
.9
-.2
-.4
5.8
-1.3
-2.6
1
Prime rate less 30- to 59-day commercial paper rate.
At all commercial banks based on last-Wednesday-ofmonth data, adjusted for outstanding amounts of loans sold
to affiliates.
3
Nonfinancial company paper measured from end-of-month
to end-of-month.
2
63A per cent), the spread between the prime rate
and the commercial paper rate remained relatively wide. Even so, commercial paper issued
by nonfinancial firms declined in the third quarter, thus offsetting most of the modest increase
in business loans and leaving short-term business credit outstanding only slightly higher on
balance. Business demands for short-term credit
continued to be limited by the moderate size
of external funds requirements and by the preference for long-term financing.
MORTGAGE MARKETS
Total mortgage debt outstanding rose sharply
during the third quarter. Lending on 1- to 4family homes again accounted for the bulk of
the increase, as the multifamily and nonresidential components remained weak.
Strong deposit growth during the summer
enabled savings and loan associations to extend
889
new mortgage credit at a record pace without
significantly eroding their liquidity positions. By
the end of September, moreover, outstanding
commitments at these institutions had risen to
an all-time high of $22.5 billion. As in previous
quarters, savings and loan associations dominated the market for conventional home mortgages. In the Federally underwritten mortgage
sector, extensions of credit via purchases of
pass-through securities guaranteed by the Government National Mortgage Association
(GNMA) were the major source of strength.
Together, conventional loans by savings and
loan associations and acquisitions of GNMA
securities accounted for well over three-fourths
of the over-all increase in residential mortgage
credit during the summer. Federal and related
agencies sold slightly more mortgages in the
secondary market than they acquired, as flows
of funds to private sources of mortgage finance
continued to be strong.
Interest rates on new commitments for home
mortgages in the primary market fluctuated in
a narrow range around 9 per cent throughout
most of the third quarter, but declined somewhat
TABLE 3
Net change in mortgage debt outstanding
In billions of dollars, seasonally adjusted annual rates
1975
1976
Change—
By type of debt:
Total
Residential
Other 1
By type of holder:
Commercial banks
Savings and loans
Mutual savings banks
Life insurance cos
FNMA-GNMA
Other 3
Q3
Q4
Ql
Q2
Q3e
63
46
17
71
53
18
72
56
16
75
58
17
83
64
19
3
35
3
2
5
15
9
39
3
1
6
13
11
36
2
3
1
19
9
44
3
10
49
4
1
(2)
-5
24
(2)
19
1
Includes commercial and other nonresidential as well as
farm properties.
2
Less than $500 million.
3
Includes net changes in securities guaranteed by the Government National Mortgage Association, some of which may
have been purchased by the institutions shown separately.
^Estimated.
890
Federal Reserve Bulletin • November 1976
after mid-September. Yields in the secondary
market fell more significantly during the quarter
and in the first half of October, registering a
total decline of nearly Vi of a percentage point.
Reflecting these declines, the maximum rate
permitted on loans insured by the Federal
Housing Administration or guaranteed by the
Veterans Administration was reduced from SVz
per cent to 8 per cent on October 18.
Deposits
Savings and bans and mutual savings banks
16
public debt offerings, the Board's index of
yields on newly issued Aaa-rated utility bonds
declined during the quarter to 8.29 per cent—the
lowest level since February 1974. Lower shortterm interest rates and changing expectations of
market participants about the course of future
rate movements may also have contributed to
lower corporate bond yields. Average price
levels in the stock market fluctuated narrowly
during most of the third quarter, but declined
slightly in late September and then more markedly during early October.
TABLE 4
Offerings of new securities issues
8
In billions of dollars, seasonally adjusted annual rates
1975
0
Q3
Q4
QL
1975
Q2
Q3
Q3 e
Q3
Q4
Ql
Q2
r
r
r
53 45
41 36
12
9
1976
Seasonally adjusted quarterly averages at annual rates.
SECURITIES M A R K E T S
In the third quarter, gross long-term debt and
equity financing by U.S. corporations dropped
to a seasonally adjusted annual rate of $45
billion from the relatively high $53 billion pace
that had prevailed over the first half. Most of
the reduction in gross bond offerings can be
attributed to a decline in the volume of public
issues, especially by prime-rated industrial concerns; private placements are reported to have
continued at an unusually high level. The decline in stock offerings was more evenly distributed among industry groups. Many corporations apparently accelerated their long-term financing plans in the first and second quarters
when it was widely expected that tighter credit
conditions would prevail late in the year. The
funds thus raised, when combined with the
sustained flow of resources generated internally,
evidently reduced the dependence of many firms
on external sources of finance during the quarter.
Partly as a result of the lighter calendar of
1976
Type of issue
Corporate securities: total
Bonds
Stock
Foreign securities
State and local govt, bonds
47
37
9
7
36
50
39
10
r
10
26
52
38
14
r
12
33
r
10
35
9
35
Estimated.
r
Re vised.
State and local governments continued to
borrow heavily in long-term markets, at a pace
little changed from the previous two quarters.
This high volume resulted in part from the
funding of short-term obligations and the activation of borrowing programs that had been
postponed during the adverse market conditions
that had prevailed during most of 1975 and early
1976. Despite the large volume of long-term
borrowing, the Bond Buyer index of tax-exempt
yields declined over the quarter to reach a level
of 6.33 per cent by early October. This reduction in yields accompanied a strong demand by
institutional investors in general and by property/casualty insurance companies in particular.
These companies had reduced their acquisitions
of tax-exempt securities in 1975, when they
experienced financial losses. With a rebound in
profits this year, they are again providing a
Domestic Financial Developments, Q3 1976
891
TABLE 5
Federal Government borrowing and cash balance
Quarterly totals, in billions of dollars, not seasonally adjusted
1975
1976
Item
Q2
Treasury financing:
Budget surplus, or deficit
-12.0
Off-budget deficit 1
-2.6
Net cash borrowings, or repayments (—)
16.6
Other means of financing2 . . .
-1.0
Change in cash balance
1.0
Federally sponsored credit agencies, net cash borrowings 3
-.1
Q3
Q4
Q1
-18.5
-.8
-26.6
-2.6
-22.7
-3.8
2.2
-.7
-12.7
-2.0
23.5
-1.1
2.9
25.9
1.2
-2.1
24.1
2.0
-.4
9.4
-4.0
6.8
18.0
-.7
2.6
.8
1.8
.3
.5
1.8
1
Includes outlays of the Export-Import Bank, Pension Benefit 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.
2
Checks issued less checks paid, accrued items, and other
transactions.
significant source of demand for State and local
securities.
Net borrowing by the U.S. Treasury nearly
doubled as the unified budget swung from a
modest surplus in the second quarter to a deficit
of $13.2 billion in the third quarter. Of the total
$18.0 billion in net new funds raised, only $300
million came from the bill market as the Treasury continued to lengthen the maturity of its
Q2
Q3
3
Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal
intermediate credit banks, banks for cooperatives, Federal
National Mortgage Association (including discount notes and
securities guaranteed by the Government National Mortgage
Association), and farm credit banks.
outstanding debt. In the regular midquarter refinancing, the Treasury raised $6.4 billion in net
new cash, largely through a 10-year note sold
by means of a fixed-price subscription offering.
Government spending proceeded at a less-thananticipated rate during the transitional quarter
to a new fiscal year, and as a result, the cash
balance advanced $2.6 billion to a record $17.4
billion by the end of September.
•
892
New Estimates of Capacity Utilization:
Manufacturing and Materials
The Federal Reserve has developed new estimates of capacity utilization rates for manufacturing and for industrial materials.1 The revision
of the manufacturing series—the first since
1971—has raised considerably the estimates of
capacity utilization for 1971-76 and lowered
those for 1948-55. The new industrial materials
series, which cover the entire materials grouping
in the Federal Reserve's industrial production
(IP) indexes, are much broader in scope than
the formerly published "major" materials
series, but the levels of utilization rates for both
the new total materials series and the major
materials series have generally been similar.
This article describes the new series and explains the methods employed in estimating capacity utilization, presents some statistical findings, and provides a tabulation of the historical
data. More detailed descriptions of the methodologies for the manufacturing and the materials
capacity utilization series will be included in a
publication that is expected to be available in
the spring.
Publication of these revised rates of capacity
utilization for manufacturing and materials represents the completion of an interim step in a
major effort to improve the Board's statistical
measures of capacity utilization. According to
present plans, these two distinct sets of estimates will be replaced in the future by a single
integrated system of measures of output, capacNOTE.—Richard D. Raddock and Lawrence R. Forest
of the Board's Division of Research and Statistics
prepared this article.
1
A11 Federal Reserve utilization rates in this article
are derived from seasonally adjusted industrial production indexes.
Current estimates for total manufacturing and advanced and primary processing are published in the
Federal Reserve statistical release " Capacity Utilization
in Manufacturing" (E.5). The nine materials series,
which were introduced in July, are shown on page 3
of the 4 4 Industrial Production" statistical release
( G . 1 2 . 3 ) . Selected series will be published in the B U L LETIN each month.
ity, and capacity utilization covering manufacturing, mining, and utilities. Capacity utilization
rates will then be published for total industrial
production and for the major market and industry groupings shown in the IP indexes. The
basic data to be used in the contemplated system
will be the IP indexes and the figures on capacity
utilization rates published yearly by the U.S.
Bureau of the Census in its Survey of Plant
Capacity. The introduction of such an integrated
system will require some time because the
Census Bureau did not begin to collect utilization rate data until the fourth quarter of 1973.
Utilization rate figures from two or three more
Census surveys are needed before it will be
possible to derive an adequate time series of
capacity and capacity use for many individual
industries.
OVERVIEW
The analytical importance of capacity utilization
rates and the different views of how they should
be measured have led a number of public and
private organizations to publish such rates. As
of late 1976 there were six sets of estimates
covering all manufacturing and one set covering
industrial materials.2 Four of these series have
been introduced in the last 3 years—indicating
a growing interest in measures of capacity utilization.
2
The seven capacity utilization series include the
materials series published by the Board of Governors
of the Federal Reserve System (Federal Reserve) and
the six manufacturing or total industrial series published, respectively, by McGraw-Hill Publishing Company; Wharton Econometric Forecasting Associates; the
Federal Reserve; the Bureau of Economic Analysis
(BEA) and the Bureau of the Census of the U.S.
Department of Commerce; and Rinfret-Boston Associates. Publication of the Federal Reserve series for
materials and of the BEA, Census, and Rinfret series
has occurred only during the past 3 years.
New Estimates of Capacity Utilization
893
1. Output, capacity, and utilization
Ratio scale, 1967 output=100
MATERIALS
MANUFACTURING
Capacity
Capacity
Output
Output
Per cent
Seasonally adjusted quarterly data.
This heightened interest can be attributed in
part to a concern that shortages such as those
in 1973-74 might reoccur as the economy
moves closer to full utilization of capacity. This
concern has been aroused by reports that escalating costs of expanding capacity have made
it too expensive for private enterprise to alleviate the bottlenecks that were evident in the
1973-74 period. Those bottlenecks were concentrated in the basic materials industries.
Among the many materials reported in short
supply were metals, petrochemicals, fuels,
paper, and cotton. It may be noted, however,
that the current levels of the Federal Reserve's
utilization rate series for materials do not indicate that capacity to produce industrial materials
is a constraint on production at the present time.
Differences among the various estimates of
industrial utilization rates are indicative of the
basic problems in measuring capacity. These
differences can be explained largely in terms of
the different methods that are used to quantify
such elusive concepts as capacity and capacity
utilization.3 Inasmuch as there are neither uni-
3
The Federal Reserve generally accepts the concept
of capacity implicit in the various surveys of utilization
rates. For the most part it is thought that a concept
of practical maximum capacity is used by most respondents to surveys. For example, the Census Bureau
defines practical capacity as the greatest level of output
versally accepted definitions nor comprehensive
tabulations of capacity for the production facilities of the economy, timely utilization rate estimates have to be developed from the limited
data that are available.
Some of the available utilization rate series
—such as the BEA series published by the
Department of Commerce—are based solely on
company surveys in which businessmen are
asked to provide estimates of their operating
rates as a per cent of capacity. One series is
based almost entirely on the Federal Reserve
indexes of industrial production.4 Monthly estimates published by the Federal Reserve and by
the McGraw-Hill Publishing Company combine
information that is obtained from monthly production indexes and from less frequent utilization rate surveys.
Each of the utilization rate estimates that
the Board publishes is calculated by dividing
an IP index, seasonally adjusted, by a related
estimate of capacity (Chart 1). In our view, this
procedure has two advantages: (1) It provides
that a plant can achieve within the framework of a
realistic work pattern, assuming a normal product mix
and an expansion of operations that can be reasonably
attained in the particular locality and considering only
equipment in place.
4
In deriving the Wharton index of capacity utilization, industry utilization is calculated as the ratio of
the current production index to a trend through the major
peaks in the production index for an industry.
894
Federal Reserve Bulletin • November 1976
more current estimates of utilization rates than
do existing surveys because the IP indexes are
available monthly about 15 days after the end
of the month; and (2) the estimates appear to
reflect the cyclical movements in production
more accurately than do rates based solely on
available surveys of business judgments of utilization rates.
The Board's derived utilization rates have two
general properties: (1) The cyclical movements
approximate those of the IP indexes with the
growth trend removed; and (2) the average
levels of utilization rates over time and the
long-term movements in such rates are determined primarily by the estimates of utilization
rates as reported in various surveys. It should
be noted that the Federal Reserve conducts no
surveys either of capacity or of capacity utilization rates. In fact, there are no comprehensive
surveys that collect consistent capacity and production data, although such data exist for some
basic commodities. In deriving the Board's utilization rate series, capacity indexes are estimated indirectly in a manner that makes them
generally consistent with IP indexes and with
independently conducted surveys of capacity
utilization rates. This consistency cannot always
be maintained in the short term because the
short-term movements in IP and in the utilization survey data often differ, but it is achieved
on average over time.
The over-all levels and the long-term movements of the Federal Reserve capacity estimates
are determined primarily by production indexes
divided by utilization rate data as reported in
various surveys. The resulting IP/utilization rate
ratios are then combined into capacity time
series that are smoothed to eliminate frequent
irregularities.5 The relatively smooth interpo5
There are a number of possible sources of the
inconsistencies between movements in IP indexes and
in survey-based utilization rates that cause the observed
irregularities in the IP/utilization rate ratios. For example, the utilization rate data may be based on relatively small samples of companies while the production
data are usually establishment- or product-based. In
addition, there may be a lack of correspondence between
the time periods covered by the two sets of data.
Moreover, in our opinion, the recessionary cutbacks in
capacity sometimes implied by the IP/utilization rate
ratios are unrealistic. Although it is conceivable that
some small reduction in over-all capacity may occur
in a recession, it is likely that the survey "judgments"
lated and extrapolated series (Chart 1) are based
in part on estimates of deflated capital stocks
that are derived from investment expenditure
data adjusted for estimated scrappage of old
equipment. In other words, the Federal Reserve's capacity estimates reflect long-term production trends, businessmen's judgments concerning the degree of utilization of their facilities, and the pattern of real investment over the
course of the business cycle. These estimated
capacity indexes appear to be reasonably good
measures of production capabilities over time,
but they should not be considered to be accurate
indicators of short-term changes in capacity.
The estimates of manufacturing capacity are
based primarily on the IP indexes and the McGraw-Hill survey of utilization rates. Estimates
of materials capacity too are based on IP indexes
but in this instance the utilization rates used are
derived from data published by various trade
associations such as the American Iron and Steel
Institute or data collected and published by the
Census Bureau in its Survey of Plant Capacity
(actually a survey of utilization rates). Thus,
although they are constructed in much the same
way, the estimates of manufacturing and of
materials capacity are partially independent of
each other because they depend on data obtained
from different surveys. Moreover, the estimates
differ because of coverage: Manufacturing encompasses finished products as well as most
industrial materials, but some materials are produced by mines or utilities that are not part of
manufacturing.
For the period since 1955 the method of
calculating the revised utilization rates for manufacturing—including the subtotals for primary
and advanced processing industries—is much
the same as that used when the series were
introduced in the BULLETIN in November 1966,
except that the revisions have been calculated
in more detail. Nevertheless, the use of McGraw-Hill survey data available since the last
revision in 1971 and of newly revised IP indexes
has resulted in the re-estimation of manufaccontain an element of guesswork and that some respondents view a temporary plant shutdown as a loss in
capacity. Treating a temporary shutdown as a loss in
capacity understates true production capabilities, as
most shutdown plants are likely to be reopened in the
next expansion.
New Estimates of Capacity Utilization
895
1. Capacity utilization series
Rates (in per cent)
Series
1967
Value-added
proportion
of total IP
Average
for period
1973
Monthly
high
1975
Monthly
low
1976
Q3
88.0
85.4
93.6
69.6
70.5
67.8
80.9
79.3
82.4
1955-75
Manufacturing
Advanced processing
Primary processing
87.95
57.36
30.59
83.2
82.3
85.0
Materials
39.29
85.9
93.1
69.7
81.3
Durable goods materials
Basic metal materials
20.35
5.57
82.7
86.4
92.5
97.7
64.3
66.1
78.3
81.7
Nondurable goods materials . . .
Textile, paper, and chemical
Textile materials
Paper materials
Chemical materials
10.47
7.62
1.85
1.62
4.15
88.1
87.6
87.6
93.8
85.6
94.6
94.5
94.4
100.5
93.8
67.8
65.5
58.0
71.8
64.7
85.2
84.1
81.9
90.2
83.0
8.48
91.4
94.6
82.7
84.4
1967-75
Energy materials
turing capacity and in substantial upward revisions in manufacturing capacity utilization for
the period since 1970.
In addition, methodological changes have resulted in new manufacturing capacity extrapolations for the 1948-54 period. The capacity
estimates prior to 1955 can be derived only by
extrapolating backward in time because McGraw-Hill made no surveys of company utilization rates prior to year-end 1954. In the old
series capacity had been extrapolated backward
almost exclusively on the basis of capital stock
data using the relationship between capacity and
capital observed after 1954. In this revision
capacity extrapolations are based on capital
stock estimates that have been retrended to
reflect the results of an analysis of pre-1955 data
relating to production peaks in various industries
and of physical unit output and capacity data
for certain materials. This analysis indicated that
the previously published figures for utilization
rates had been too high and hence that the
previous estimates of capacity had been too low.
The figures in Table 3, presented in the section
on "Statistical Findings," show that the old
major materials series, which is based on physical output and capacity data, support the new
primary processing figures and show that the
revisions in advanced processing are similar in
magnitude to those in primary processing. Al
though the estimates for 1948-54 are believed
to have been improved considerably, it should
be recognized that they are inherently less firmly
based than those for later periods for which the
McGraw-Hill data for utilization rates in manufacturing are available.
Table 1 includes 1967 value-added proportions (total IP = 100) for the published series for
manufacturing and materials and their components. The nine series for materials include all
96 detailed materials series in IP; as the table
shows, they represent about two-fifths of value
added in manufacturing, mining, and utilities,
whereas the old major materials represented less
than one-tenth of industrial value added.6
Within manufacturing, the advanced and primary processing groupings are aggregations of
all two-digit SIC groupings of manufacturing
industries, which represent about nine-tenths of
industrial value added. 7
6
A detailed listing of the components of materials (for
further industrial processing) will appear in the forthcoming Industrial Production, 1976 Edition. An approximate listing is presently available in Industrial
Production, 1971 Edition; however, the new grouping
for energy materials has been significantly expanded
from the industrial fuel and power series previously
shown.
7
Advanced processing includes the following industries: food, tobacco, apparel, furniture, printing, chemical products such as drugs and toiletries, leather, ma-
896
Federal Reserve Bulletin • November 1976
2. Comparison of utilization rate series
Per cent
%
1948
t
f
t
«
1952
i
i
i
t
1956
*
*
t
t
1960
<
t
i
»
1964
i
i
i
i
1968
i
t
t
i
1972
f
t
i
1976
Seasonally adjusted quarterly averages. Major materials (old) utilization rates are based on the IP indexes available prior
to the July 1976 revision.
The new estimates of capacity to produce
industrial materials reflect not only increased
coverage but also adjustments that serve as a
means of converting the initial estimates of
"peak-load" capacity into estimates that better
represent annual productive capacity.8 The result of these adjustments has been to reduce
estimated capacity relative to output and to raise
final estimates of utilization rates. No such adchinery, transportation equipment, instruments, miscellaneous manufacturing, and ordnance.
Primary processing, which incorporates many of the
same manufacturing industries that are represented in
materials, includes textiles, lumber, paper, industrial
chemicals, petroleum refining, rubber and plastics,
stone, clay and glass, and primary and fabricated
metals.
8
The adjustments were made in an attempt to remove
from the (industrial production/survey operating rate)
ratios the amount of indicated capacity that could not
be realized (economically) over the course of a year
because of seasonable variability in attainable production. The adjustments to an annual capacity concept
were based on the maximum monthly seasonal factors
of the associated production series in those cases where
it was judged that the original estimates represented
measures of peak-load capacity. In most cases the
conversions to annual capacity were based on the following:
Annual capacity = peak-load capacity
(peak
monthly capacity output/average
monthly capacity output)
= peak-load capacity + (peak
month's output/average month's
output)
~ peak-load capacity/maximum seasonal adjustment factor
justment had been made to the former major
materials, and none has as yet been made to
the revised manufacturing estimates.9
Two factors in particular have affected the
new estimates of capacity utilization rates for
materials: One is that the new series include
many processed materials that typically have
lower utilization rates than the major materials.
The other is that they incorporate data from the
Census survey, which covers smaller plants;
such plants tend to have lower utilization rates
than the large companies reporting to McGrawHill. For the materials series the effects of
increased coverage of establishments are approximately offset by the adjustment for annual
capacity, so the over-all level of capacity utilization in the new total series, as shown in Chart
2 (and Table 3), is almost the same as for the
former major materials series and the new primary processing series.
STATISTICAL FINDINGS
For the third quarter of 1976, capacity utilization in manufacturing was 81 per cent, according to the revised estimates shown in Table 1.
9
Annual capability adjustments will be made to the
manufacturing capacity series when the more detailed
Census survey data are used in deriving the estimates
of manufacturing capacity.
New Estimates of Capacity Utilization
Although up substantially from the 1975 low
of 70 per cent, this rate was still well below
the 1973 peak of 88 per cent. This reflects the
fact that in the 3 years since that peak, manufacturing capacity has grown by roughly 10 per
cent whereas over the same period manufacturing output fell 17 per cent to a low in March
1975 and has only recently recovered its 1973
levels. Within the manufacturing sector durable
goods output is still below its 1973-74 peak
because of the incomplete recovery in equipment production. Consequently, recent capacity
utilization rates for advanced and primary processing industries and for industrial materials
are below their average levels. Thus there seems
to be a relatively ample margin of capacity at
present even though the recent rate of growth
897
of capacity appears to have been slow by historical standards.
The new third-quarter capacity utilization rate
for manufacturing is about 7 percentage points
above the 74 per cent formerly published. As
shown in Chart 3, the new rates for recent years
are progressively higher than the unrevised data;
the rates for the 1955-70 period are little different; and those for the 1948-54 period have
been lowered. The result is that the range of
the cyclical peaks in manufacturing utilization
rates is much narrower than it had been.
Not surprisingly, peak rates of utilization in
excess of 90 per cent, which occurred in 1953
and 1966 during the wars in Korea and Vietnam,
are somewhat higher than the major peacetime
peaks in 1955 and 1973. This is primarily be-
3. Manufacturing capacity utilization rates
Per cent
t
i
i
i
i iiiiii—i
i
t H H H H H H H H i H i 8 wmmmmmmmmmmmmmmmmtmm
ADVANCED PROCESSING
100
90V. /
\
New S
N—i
80
V
91V
' i H H I mm H
HHHHHH
1 : 1
wmtmm
wtmmmmm
/
wm » Wm
PRIMARY PROCESSING
1948
Seasonally adjusted quarterly averages.
1960
1964
1968
1972
1976
70
898
Federal Reserve Bulletin • November 1976
cause wartime production led to much higher
utilization rates in those advanced processing
industries that produce aircraft and other defense
equipment.
As described earlier, the use of new data in
re-estimating the relationships between capacity
and capital for the pre-1955 and the post-1970
subperiods led to substantial revisions in estimated capacity. It appears that during 1947-53
and 1970-76—both periods that were characterized by high inflation rates—constant-dollar
investment spending resulted in less capacity
early post-World-War-II years, capacity growth
relative to growth in the private capital stock
may have been reduced by (1) private purchases
of existing capacity from the Government, (2)
large-scale expenditures primarily for the purpose of replacing aging and worn-out equipment
that had not been replaced during the Great
Depression or World War II, and (3) an increased rate of substitution of equipment for
labor.
2. Capacity utilization rates
in manufacturing
The disaggregation of manufacturing capacity
utilization rates into primary and advanced processing industries is a rough approximation for
manufacturing of the finer split of all the IP
indexes into groupings for materials and products. 11 The lack of adequate historical information on capacity utilization for more detailed
classification has so far precluded a more refined
split of the manufacturing utilization rates.
As shown in Chart 4, capacity utilization rates
for primary processing industries show more
cyclical movement than those for advanced
processing—just as output of industrial materials is typically more cyclical than that of products. Materials production rises especially rapidly in an expansion because final demand pressures from a variety of sources tend to converge
on metals, chemical materials, and other primary products. Moreover, business users tend
to build up stocks of necessary materials during
a boom, when lead times lengthen and commodity prices escalate, necessitating higher
production levels. Conversely, in a recession,
businesses buy less materials than they use,
thereby cutting into their stocks and causing
materials output to fall more sharply than materials use.
Three Vintages of Federal Reserve Series1
In per cent
Original
1966
estimates
1971
estimates
1976
revisions
1948
1951
1953
88
96
96
94.4
98.1
98.0
83.9
88.3
91.3
1955
1960
1966
91
84
91
91.3
84.1
92.3
88.6
84.5
91.6
n.a.
n.a.
83.3
73.6
87.8
80.9
Quarterly
peaks
1973
1976—Q3
....
1
The dates in the column headings reflect the introduction
of the estimates in the Federal Reserve BULLETIN articles by
deLeeuw (November 1966), Edmonson (October 1971), and
Raddock and Forest (November 1976).
n.a. not available.
growth than one would have expected based on
the relationship among the data for 1953-69.
This variability indicates (1) how difficult it is
to make accurate extrapolations of capacity and
(2) that revisions of current extrapolations
should be made more often than in the past.
In the 1970's significant percentages of investment expenditures have been devoted to
meeting Government safety and pollution control regulations. Such regulations probably
caused some reduction in capacity growth per
deflated investment dollar. 10 Similarly, in the
10
Capacity is an ambiguous concept and can be
measured only roughly. It is possible that price controls,
devaluation of the dollar, and worldwide hoarding,
which led to shortages of many materials, influenced
PRODUCTS A N D MATERIALS
businessmen to reduce their estimates of practical capacity during the 1973-74 boom. With more normal
price relationships and with more adequate availability
of materials, over-all capacity might appear to grow
more rapidly in the next expansion.
11
The materials group includes those industrial goods,
such as raw steel, that are used for the most part as
inputs by manufacturing and mining establishments and
utilities. Products include primarily consumer goods and
equipment, but also some intermediate products such
as fertilizer that are used by nonindustrial firms.
New Estimates of Capacity Utilization
Furthermore, as Table 3 indicates, peak rates
in primary processing are typically higher than
those in advanced processing. This is in part
because of the more varied content of the advanced processing category, which includes not
only consumer durable and nondurable goods
but also defense and business equipment. The
peaks in these series are often less synchronized
than those for primary processing. For instance,
auto production often peaks well before equipment production, whereas raw steel production—buoyed by inventory demand—is likely
to remain at relatively high levels during a
period that begins with a boom in consumer
durable goods and lasts until equipment production weakens. If fears of shortages lead to
excessive inventory accumulation during such
sustained booms, then many basic materials are
likely to reach peaks concurrently.
In 1973-74 the absence of war and the
dispersion of consumer and investor demand
held down the utilization rates for advanced
processing industries. Moreover, shortages of
industrial materials—caused to some extent by
hoarding—probably impeded production further
downstream, so that peak utilization rates for
primary materials were much higher than those
for advanced products. In 1973, capacity utilization in primary processing (and materials)
industries reached a quarterly peak of about 93
per cent. In contrast, capacity utilization in
advanced processing industries reached only 85
per cent.
In light of the 1973-74 shortages of materials
and in light also of the great concern about the
shortage of capital for expanding materials capacity, it is interesting that—as shown in Table
3—both the new primary processing and the old
major materials utilization rates at the 1973 peak
were rather similar to other major peaks since
World War II. This would seem to indicate that
manufacturers have typically not found it profitable to invest in sufficient materials-producing
capacity to meet both the convergence of
derived demands for materials and the build-up
of stocks that occur only at important peaks.
More publicity has usually been given to rates
of utilization in manufacturing than to such rates
in materials industries, even though the capacity
to produce various materials is often the most
significant constraint on production. Recognizing the strategic importance of materials ca-
4. Production and utilization by stage of processing
INDUSTRIAL PRODUCTION
Materials
Products
CAPACITY UTILIZATION RATES
Primary processing
Advanced processing
Seasonally adjusted quarterly averages.
899
900
Federal Reserve Bulletin • November 1976
3. Capacity utilization rates in primary and advanced processing
Old and New Series
In per cent
Advanced processing
Primary processing
Quarterly
peaks
1948
1951
1953
1955
1960
1966
1973
1976—Q3
e
Old major
materials
Old
New
Difference
Old
New
Difference
87.1
92.9
90.0
91.1
99.6
103.8
97.6
95.3
88.3
93.6
92.4
93.9
-11.3
-10.2
-5.2
-1.4
91.7
95.1
98.4
89.1
81.7
85.5
91.1
85.6
-10.0
-9.6
-7.3
-3.5
84.3
93.0
93.5
e
83.0
86.4
92.9
90.1
77.5
86.6
92.0
93.0
82.4
.2
-.9
2.9
4.9
82.9
92.2
79.7
71.3
83.4
91.5
85.2
79.3
.5
-.7
5.5
8.0
Estimated.
pacity in limiting over-all industrial production,
the Federal Reserve had previously estimated
capacity utilization rates for major materials.
Now, the current revision provides more comprehensive estimates for the period since 1967.
As shown in Chart 5, the cyclical movements
in utilization were very large in 1973-75. After
having reached peaks of well over 90 per cent,
such rates fell sharply in 1974 in both durable
and nondurable goods materials. In comparison
with the 1969-70 and other postwar recessions,
the 1974-75 decline in utilization rates in nondurable goods materials was extraordinary. This
indicates a reduction in the growth of final
demand and a very high rate of inventory liquidation.
Since the 1975 low in economic activity,
sales have expanded and manufacturers have
increased their inventories again. As a result,
production of nondurable materials recovered
sharply; in fact, it rose more than output of
durable goods materials, which has been restrained by the slow recovery in equipment
production. In contrast, production of energy
materials has continued weak, reflecting in part
the effect of higher prices on demand.
5. Capacity utilization rates for industrial materials
Per cent
Total
Nondurable
Textile
Seasonally adjusted quarterly averages.
New Estimates of Capacity Utilization
901
6. Capacity utilization, inflation, and unemployment
Annual rate of change, per cent
Utilization rate, per cent
! 30
Intermediate materials prices-
— P r i m a r y processing utilization
IHHHHHHHHHHHIiiHHiiHHHiiil
Per cent
11 m • • • • • • • • • • • • • • •
Inverted scale, per cent
+
Seasonally adjusted quarterly data. The U.S. Bureau of Labor Statistics is the source of the wholesale price and manufacturing
unemployment data.
Most recently, the recoveries in the output
of both durable and nondurable goods materials
have stalled, leaving the utilization rates at
levels far below the 1973 peak values. This
indicates that materials capacity is not likely to
be a significant constraint on economic growth
in the near future unless business investment in
plant, equipment, and inventories picks up dramatically.
COMPARISONS W I T H OTHER SERIES
Relationships between capacity utilization in
primary processing industries and prices of intermediate industrial materials are shown on the
upper panel of Chart 6. It is apparent that there
is a rough correlation between these two series,
but that factors other than utilization rates are
also important in determining price behavior.
For instance, the relaxing of price controls during a worldwide commodities boom led to an
explosion in prices of materials in early 1974.
On the other hand, the lower panel of Chart
6 shows that—as would be expected—the revised estimates of capacity utilization in manufacturing are closely and inversely related to
unemployment rates in the manufacturing sector.
Some of the presently available estimates of
capacity utilization in manufacturing are shown
in Chart 7. The Wharton index of capacity
utilization is generally the highest because in
that index peak production in major industry
groups is defined as 100. Most other series,
which depend on data reported in surveys, are
at a somewhat lower level. The Census Bureau's
survey (not shown) yields the lowest rates because it is an establishment survey and includes
large plants and also relatively small plants that
tend to operate at lower rates. The Federal
Reserve estimates tend to average about the
same as those from the BEA and from the
McGraw-Hill surveys of relatively large companies; however, the cyclical pattern of the
Federal Reserve estimates is generally more
volatile than surveys of utilization rates would
show. The cyclical patterns of the Federal Reserve and the Wharton estimates are most alike
because IP indexes determine the short-term
movements of both.
•
Chart 7 appears on page 902.
902
Federal Reserve Bulletin • November 1976
7. Manufacturing capacity utilization series
Per cent
1952
1956
1960
1964
1968
1972
1976
Seasonally adjusted. Quarterly data except for the once-a-year McGraw-Hill survey. Sources: McGraw-Hill Publishing Company,
Wharton Econometric Forecasting Associates, Inc., U.S. Dept. of Commerce (Bureau of Economic Analysis).
New Estimates of Capacity Utilization
903
Historical Data
A. Manufacturing
Utilization rate (per cent)
Utilization rate (per cent)
Capacity
Output (per cent
(1967 = of 1967
output)
100)
Total
AdPrimary
process- vanced
processing
ing
Period
Capacity
Output (per cent
(1967 = of 1967
100)
output)
AdPrimary
process- vanced
ing
processing
Quarterly
Quarterly
40.7
41.0
41.2
40.8
48.5
49.2
50.0
50.7
83.9
83.3
82.5
80.4
88.1
88.3
88.0
84.7
81.7
80.5
79.6
78.2
39.5
38.1
38.7
38.4
51.4
51.9
52.4
52.9
76.9
73.5
73.8
72.4
80.3
74.4
75.4
74.7
75.2
73.2
73.1
71.4
40.4
43.9
47.5
48.3
53.5
54.1
54.6
55.2
75.6
81.1
87.0
87.5
80.7
87.0
92.6
93.5
73.0
77.9
83.9
84.3
49.3
49.3
47.9
48.1
55.8
56.4
57.0
57.6
88.3
87.4
84.1
83.5
93.6
93.5
88.6
85.3
85.5
84.1
81.5
82.5
49.2
48.8
50.2
54.1
58.2
58.9
59.6
60.3
84.6
82.9
84.2
89.8
85.5
79.7
83.5
90.7
84.2
84.9
84.8
89.6
55.4
56.1
55.9
53.1
60.9
61.5
62.1
62.7
91.0
91.3
90.0
84.7
91.3
92.4
90.4
83.5
91.1
91.0
89.7
85.6
51.1
50.9
51.0
52.6
63.3
63.9
64.4
65.0
80.8
79.7
79.1
80.8
79.6
79.8
79.7
83.3
81.6
79.7
79.0
79.7
55.5
58.1
58.8
60.2
65.7
66.4
67.2
67.9
84.5
87.4
87.5
88.6
88.3
92.4
93.4
93.9
82.4
84.6
84.3
85.6
60.2
60.2
59.3
61.6
68.7
69.6
70.5
71.4
87.6
86.5
84.2
86.3
92.8
90.7
85.0
89.2
84.6
84.3
83.7
84.9
62.4
61.6
61.6
58.9
72.1
72.8
73.5
74.2
86.5
84.6
83.9
79.4
88.2
85.4
85.3
80.0
85.7
84.2
83.3
79.2
55.4
54.6
57.4
60.0
74.8
75.4
76.1
76.7
74.1
72.4
75.4
78.2
72.6
71.1
11A
80.8
75.1
73.3
74.4
76.9
62.9
66.0
63.3
63.6
77.3
78.0
78.7
79.4
81.4
84.6
80.5
80.1
84.8
89.5
77.8
79.8
79.6
82.1
82.3
80.4
67.7
66.0
64.8
63.0
80.2
81.1
82.1
83.0
84.5
81.3
78.9
75.8
86.6
80.9
78.0
73.7
83.4
81.7
79.6
77.2
61.9
64.5
66.8
69.2
83.8
84.5
85.1
85.8
73.8
76.4
78.4
80.6
71.9
76.5
80.7
82.6
75.1
76.6
77.4
79.7
70.2
70.9
86.5
87.2
81.2
81.3
82.9
81.1
80.5
81.8
Seasonally adjusted data.
Total
1962—Q3
Q4
71.8
72.4
88.0
88.7
81.6
81.6
80.7
81.3
82.2
82.0
1963—Q1
Q2
Q3
Q4
73.7
75.7
76.2
77.5
89.5
90.4
91.2
92.1
82.3
83.8
83.6
84.2
81.8
85.0
83.6
84.8
82.9
83.2
83.6
84.0
1964—Q1
Q2
Q3
Q4
78.6
80.4
81.8
83.1
93.0
94.0
95.1
96.1
84.5
85.5
86.1
86.5
85.7
87.1
88.7
89.8
84.0
84.8
84.7
84.9
1965— Q1
Q2
Q3
Q4
86.7
88.7
90.8
92.4
97.5
99.2
101.0
102.7
88.9
89.4
89.9
90.0
91.0
91.2
91.7
90.2
87.8
88.5
89.1
90.0
1966—Q1
Q2
Q3
Q4
95.3
97.5
98.9
99.9
104.5
106.4
108.3
110.2
91.1
91.6
91.2
90.6
91.8
92.0
91.9
90.1
91.0
91.5
91.0
90.9
1967—Q1
Q2
Q3
Q4
99.0
98.8
99.6
102.4
112.1
114.0
115.9
117.8
88.2
86.6
85.9
86.9
87.0
84.3
84.7
86.7
88.9
87.9
86.7
87.0
1968—Q1
Q2
Q3
Q4
104.2
106.0
106.8
108.2
119.6
121.3
123.0
124.7
87.1
87.4
86.8
86.8
86.9
88.5
87.4
87.8
87.2
86.8
86.7
86.4
1969—Q1
Q2
Q3
Q4
110.1
110.6
112.0
111.2
126.3
127.9
129.6
131.2
87.2
86.5
86.4
84.8
88.9
88.4
88.6
88.4
86.3
85.4
85.2
82.9
1970— Q1
Q2
Q3
Q4
108.0
107.2
106.6
103.9
132.6
133.8
134.9
136.1
81.4
80.1
79.0
76.3
84.7
83.1
82.8
80.6
79.7
78.5
76.9
74.0
1971—Q1
Q2
Q3
Q4
106.3
107.6
108.1
110.6
137,2
138.1
139.1
140.0
77.5
77.9
77.8
79.0
81.7
82.9
81.1
82.4
75.3
75.2
75.9
77.1
1972—Q1
Q2
Q3
Q4
114.2
117.3
119.8
124.2
141.1
142.3
143.6
144.8
80.9
82.4
83.4
85.8
85.2
87.2
88.6
91.1
78.6
79.8
80.6
83.1
1973—Q1
Q2
Q3
Q4
127.2
129.2
130.7
131.8
146.1
147.5
149.0
150.4
87.1
87.6
87.8
87.7
91.8
92.1
92.7
93.0
84.5
85.2
85.0
85.0
1974—Q1
Q2
Q3
Q4
130.1
131.3
132.1
124.1
151.8
153.1
154.4
155.7
85.7
85.8
85.5
79.7
90.5
90.0
89.0
80.4
83.0
83.4
83.6
79.3
1975—Q1
Q2
Q3
Q4
111.2
112.4
119.4
122.5
156.8
157.7
158.6
159.5
70.9
71.3
75.3
76.8
69.5
70.0
75.8
78.1
71.5
72.1
75.0
76.1
1976—Q1
Q2
Q3*>
126.7
129.4
131.2
160.4
161.3
162.3
79.0
80.2
80.9
80.2
81.6
82.4
78.2
79.3
79.3
NOTE.—New manufacturing capacity and utilization rate data for
the 1948-54 period are extrapolations and are shown in italics.
904
Federal Reserve Bulletin • November 1976
A. Manufacturing—Continued
Utilization rate (per cent)
Period
Capacity
Output (per cent
(1967 = of 1967
output)
100)
AdPrimary
process- vanced
processing
ing
Total
Period
Capacity
Output (per cent
(1967 = of 1967
100)
output)
Monthly
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
1974—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
125.7
127.6
128.3
128.3
129.6
129.8
130.6
130.4
131.2
131.6
132.0
131.9
130.1
129.8
130.4
130.3
131.5
132.2
132.1
132.1
132.1
129.5
124.6
118.1
Primary
Adprocess- vanced
ing
processing
Total
Monthly
91.0
92.1
92.2
91.8
92.3
92.1
93.0
92.6
92.4
92.6
93.6
92.8
83.8
84.7
85.0
84.9
85.4
85.1
85.1
84.8
85.2
85.1
85.4
84.5
1975-
147.5
148.0
148.5
149.0
149.4
149.9
150.4
150.8
86.3
87.3
87.5
87.2
87.8
87.7
88.0
87.5
87.8
87.8
87.8
87.4
151.3
151.8
152.2
152.6
153.1
153.5
154.0
154.4
154.9
155.3
155.7
156.1
86.0
85.5
85.7
85.4
85.9
86.1
85.8
85.6
85.3
83.4
80.0
75.7
91.1
90.2
90.2
89.8
89.9
90.1
89.6
89.0
88.4
85.6
81.1
74.4
83.1
82.9
83.1
82.5
83.7
83.8
83.6
83.6
83.5
82.1
79.8
76.1
1976-
145.7
146.1
146.6
147.1
Utilization rate (per cent)
Feb
July
Aug
Sept
Dec
Feb
July
Aug
Oct e
113.4
110.8
109.3
110.9
111.8
114.6
117.0
119.7
121.4
121.2
122.7
123.6
157.1
157.4
157.7
158.0
158.3
158.6
158.9
159.2
159.5
159.8
72.5
70.6
69.6
70.4
70.9
72.5
73.9
75.5
76.4
76.1
76.9
77.4
71.2
69.6
67.8
68.9
69.7
71.4
73.4
76.0
78.1
77.8
78.5
78.1
125.2
127.0
127.9
128.5
129.6
130.2
131.0
131.7
131.0
130.0
160.1
160.4
160.7
161.0
161.3
161.6
162.0
162.3
162.6
162.9
78.2
79.2
79.6
79.8
80.3
80.5
80.9
81.2
80.5
79.8
78.8
80.8
81.0
81.2
81.4
82.1
82.1
82.2
82.9
156.5
156.8
72.7
71.2
70.5
71.3
71.9
73.1
74.2
75.3
75.5
75.3
76.1
77.0
77.3
78.6
78.7
78.8
79.6
79.3
79.7
79.8
78.3
B. Industrial Materials
Utilization rate (per cent)
Period
Output
(1967 =
100)
Capacity
(per cent
of 1967
output)
Durable
Nondurable
Total
Total
Textile, paper, and chemical
Basic
metals
Total
Total
Textile
Paper
Energy
Chemical
Quarterly
1967—Ql
Q2.
Q3.
Q4.
99.6
98.4
99.6
102.4
114.1
115.3
116.4
117.6
87.3
85.3
85.5
87.1
86.2
83.2
83.2
84.4
88.2
83.1
82.1
82.4
87.8
87.0
86.2
89.0
87.8
86.1
85.3
88.3
89.4
91.2
90.2
93.0
94.8
91.8
90.8
91.5
84.7
82.2
81.5
85.2
89.5
88.7
90.4
91.3
1968—Ql.
Q2.
Q3
Q4.
104.2
106.6
107.1
108.4
118.8
120.1
121.2
122.5
87.7
88.8
88.4
88.5
85.9
87.2
86.1
86.8
82.7
87.9
85.8
86.7
88.3
89.9
90.9
90.3
89.0
89.8
90.4
89.6
93.3
93.5
92.8
89.6
92.8
94.7
95.6
95.3
86.0
86.5
87.7
87.7
91.5
91.4
90.8
90.4
1969—Ql,
Q2,
Q3.
Q4,
110.6
111.8
113.7
113.8
123.8
124.8
125.8
127.0
89.4
89.6
90.4
89.6
87.9
87.7
89.4
88.2
90.7
90.2
95.0
96.9
91.0
91.2
90.7
89.8
90.5
91.3
90.9
89.7
91.4
91.0
91.6
90.8
96.8
96.8
97.6
97.3
88.3
89.5
88.4
86.8
91.1
92.4
92.2
93.2
1970—Ql.
Q2
Q3
Q4
110.5
109.0
109.9
107.4
128.0
129.0
130.1
131.2
86.3
84.5
84.5
81.9
82.6
79.9
80.2
74.8
89.7
87.8
89.6
84.3
88.2
86.5
85.8
85.4
87.4
85.7
84.7
84.3
87.8
85.4
84.9
86.0
95.7
94.3
92.4
92.4
84.7
83.1
82.1
81.2
93.5
93.3
94.1
95.4
1971—Ql
Q2
Q3
Q4
110.3
112.0
110.4
112.2
132.1
133.4
134.5
135.6
83.5
83.9
82.1
82.8
78.3
78.9
75.6
77.4
84.6
85.0
74.2
76.9
84.7
86.0
86.9
88.1
83.9
85.2
86.5
88.2
84.6
86.4
87.3
87.6
93.7
93.9
94.8
96.7
80.6
82.1
83.6
85.9
94.9
94.5
92.7
89.3
1972—Ql
Q2
Q3
Q4
117.3
120.7
123.4
127.7
136.9
138.3
139.6
141.0
85.7
87.3
88.4
90.6
80.4
82.5
84.1
87.7
82.1
86.3
88.8
92.5
90.0
91.4
91.8
92.8
89.9
91.2
91.6
92.7
88.2
89.9
90.2
91.4
97.3
97.6
97.9
98.8
88.1
89.7
90.1
91.3
93.9
94.4
94.8
94.9
1973—Ql
Q2
Q3
Q4
131.3
133.4
135.4
135.7
142.5
144.2
145.8
147.4
92.1
92.5
92.9
92.1
90.6
91.6
92.3
91.4
95.6
97.2
97.5
96.8
93.9
93.6
93.4
93.7
94.1
93.7
93.9
93.7
92.8
92.7
93.4
93.9
98.4
99.5
98.8
98.2
93.2
92.4
92.5
92.4
93.8
93.4
94.1
92.0
Seasonally adjusted data.
New Estimates of Capacity Utilization
905
B. Industrial Materials—Continued
Utilization rate (per cent)
Output
(1967 =
100)
Capacity
(per cent
of 1967
output)
Durable
Nondurable
Textile, paper, and chemical
Total
Total
Energy
Basic
metals
Total
Total
Textile
Paper
Chemical
Quarterly—Continued
134.6
134.6
135.2
125.2
148.9
150.3
151.8
153.3
90.4
89.6
89.1
81.7
88.5
87.4
87.7
79.9
94.7
93.9
92.0
86.0
94.0
93.0
91.4
81.4
93.6
93.2
91.9
81.0
92.9
89.6
84.5
69.3
97.9
98.4
97.0
89.9
92.5
92.7
92.7
82.1
90.5
90.3
89.4
87.0
110.7
110.4
118.2
122.8
154.8
156.1
157.7
159.2
71.5
70.7
74.9
77.1
66.9
64.6
69.0
70.6
75.2
67.0
70.1
69.4
69.9
72.4
79.8
84.3
67.8
70.3
78.2
83.8
60.1
70.5
81.5
86.2
78.3
73.5
81.2
86.4
67.2
69.4
76.5
82.3
86.8
85.2
84.4
85.2
127.0
130.3
132.7
160.6
161.7
163.1
79.1
80.6
81.3
73.5
76.2
78.3
72.8
77.4
81.7
85.6
85.9
85.2
85.1
85.0
84.1
84.3
83.1
81.9
89.1
90.9
90.2
84.2
84.0
83.0
85.3
84.8
84.4
Monthly
Seasonally adjusted data.
129.9
131.7
132.3
132.4
133.5
134.3
135.1
135.8
135.4
135.2
136.0
136.0
142.0
142.5
143.1
143.5
144.2
144.6
145.2
145.8
146.3
146.9
147.4
147.8
91.5
92.4
92.5
92.3
92.6
92.9
93.0
93.1
92.5
92.0
92.3
92.0
89.6
90.8
91.3
91.3
91.7
92.0
92.5
92.4
91.9
91.2
91.8
91.1
93.5
96.3
96.8
97.0
97.4
97.2
97.7
97.4
97.2
96.7
96.9
96.6
93.0
94.0
94.6
93.3
93.9
93.6
93.0
94.1
93.0
93.2
93.9
93.9
93.4
94.2
94.5
93.5
93.8
93.9
93.7
94.5
93.5
93.4
93.9
93.8
92.8
92.4
93.3
92.5
92.4
93.2
93.2
93.6
93.6
93.9
94.4
93.4
98.0
98.6
98.7
98.8
100.5
99.3
99.3
98.8
98.3
98.4
98.5
97.9
92.3
93.6
93.8
92.3
92.3
92.5
92.2
93.5
91.9
91.8
92.5
92.8
94.3
94.3
92.8
93.2
93.2
93.8
94.6
94.0
93.8
93.1
91.2
91.7
134.9
134.4
134.5
132.9
135.2
135.7
135.4
134.8
135.4
132.4
125.2
118.0
148.4
148.9
149.4
149.8
150.3
150.8
151.3
151.8
152.4
152.9
153.3
153.8
90.9
90.3
90.0
88.7
90.0
90.0
89.5
88.8
88.8
86.6
81.7
76.7
89.6
88.1
87.8
86.4
87.6
88.3
88.1
87.2
87.7
85.4
80.0
74.1
95.8
94.5
93.9
93.7
93.5
94.6
92.5
90.3
93.4
91.5
86.6
80.1
94.0
94.0
93.8
93.1
93.3
92.5
92.7
91.0
90.6
87.0
81.7
75.5
93.9
93.6
93.2
93.0
93.5
92.9
93.1
91.1
91.6
87.3
80.9
74.8
92.2
93.5
92.7
89.9
90.3
88.7
87.5
83.6
82.5
75.1
70.3
62.4
97.8
97.6
98.4
98.5
98.6
98.2
97.9
96.1
97.1
93.0
90.3
86.2
93.3
92.4
92.0
92.3
92.9
92.8
93.4
92.0
92.8
89.5
81.5
75.4
90.2
90.7
90.7
88.6
91.4
91.2
88.6
89.9
89.5
89.2
86.1
85.6
113.7
110.1
108.3
108.8
109.8
112.6
114.5
119.0
121.0
122.0
123.1
123.3
154.4
154.8
155.3
155.7
156.1
156.6
157.2
157.6
158.1
158.6
159.1
159.6
73.6
71.1
69.7
69.9
70.3
71.8
72.8
75.5
76.5
76.9
77.3
77.2
69.9
66.3
64.7
64.6
64.3
64.9
66.6
69.9
70.6
70.5
70.6
70.7
78.3
75.7
71.6
68.6
66.5
66.1
67.5
71.9
70.8
70.4
70.2
67.7
71.9
70.0
67.8
70.3
72.2
74.6
76.8
79.2
83.3
83.9
84.2
84.7
69.9
68.0
65.5
67.7
70.0
73.2
74.6
77.7
82.4
83.2
83.7
84.3
58.0
60.2
62.2
66.1
69.9
75.4
78.3
79.4
86.7
85.7
86.3
86.4
82.3
80.4
72.4
71.8
72.0
76.7
78.4
81.0
84.3
85.0
86.7
87.5
70.0
67.0
64.7
67.1
69.4
71.6
72.6
76.3
80.5
81.9
82.1
82.9
87.1
86.3
86.8
84.2
84.3
86.9
84.7
85.7
82.7
84.4
86.1
85.1
125.3
127.3
128.2
129.2
130.6
131.1
132.2
132.9
132.9
132.3
160.1
160.5
160.9
161.3
161.6
162.3
162.7
163.0
163.5
163.9
78.2
79.3
79.7
80.1
80.8
80.8
81.2
81.5
81.3
80.7
72.1
74.0
74.3
75.4
76.6
76.5
78.5
78.7
77.7
77.2
71.6
73.8
72.9
75.5
79.1
77.7
81.9
83.3
79.9
84.6
85.9
86.3
86.2
85.5
86.0
84.9
84.7
85.9
84.8
83.8
85.3
86.1
85.6
84.6
84.8
83.8
83.6
84.8
83.7
85.4
84.0
83.4
82.2
83.7
83.3
82.2
81.3
82.2
87.7
89.9
89.8
90.9
90.1
91.9
90.2
90.4
89.9
82.2
84.3
86.0
85.2
83.3
83.4
82.6
82.3
84.1
86.2
84.6
85.0
84.2
85.2
84.9
83.9
84.5
84.7
84.4
906
Statements to Congress
Statement by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve
System, before the Committee on Banking,
Housing and Urban Affairs, [/.S. Senate, November 11, 1976.
I am pleased to meet once again with this
distinguished committee to present the report of
the Federal Reserve Board on the condition of
the national economy and the course of monetary policy.
During the first year of recovery from the
severe recession of 1974-75, the pace of economic growth was rapid. The physical volume
of total production rose by IV2 per cent. The
level of industrial production—that is, the output of our factories, mines, and power plants—
increased by 12 per cent. Employment across
the Nation rose by 2 million, and the unemployment rate fell by more than a percentage
point—to IVi per cent.
A substantial part of the gain in the gross
national product during the first year of recovery
was attributable to inventory investment—that
is, a turnaround from extensive liquidation of
inventories to a moderate rate of accumulation.
The remaining and basic part of our gross national product—that is, the purchase of goods
and services by the consuming public, by our
governmental units, by foreigners, and by business firms apart from their inventory adjustments—grew AV2 per cent in physical terms
during the first year.
These final sales have continued to advance
during the past two quarters about as rapidly
as in the initial year of recovery. But inventory
investment did not add to the growth of physical
output after the first quarter of this year.
In the absence of further stimulus from inventory accumulation, the growth of over-all
economic activity has moderated. The gross
national product during the past two quarters
rose at an average annual rate of AXA per cent,
and industrial production advanced at a 6V2 per
cent rate. Employment continued to move up
by W2 million; but there was also a large
increase in the labor force, and the unemployment rate drifted higher over the summer
months.
Indeed, the growth of the civilian labor force
has been exceptionally large during the past
year, amounting to over 2 million persons.
Some pick-up in the rate of growth in the labor
force is fairly common during a cyclical recovery because improving employment opportunities tend to attract men and women into the
job market. In the present instance, however,
the persistent pressure on family budgets caused
by inflation has accelerated the rise in labor
force participation and has thus slowed the reduction of unemployment. At a time of inflation, the cost of living increases for everyone;
the like, however, is not true of incomes. Many
individuals are earning no more today than they
did 6 months or a year ago, and some are
earning less. As a consequence, more and more
households have found it necessary for additional family members to work outside the home
in order to make ends meet. This has been
reflected in a sharp rise during the past year in
the proportion of adult women and teenagers
who are working or looking for work.
The slowdown in the rate of economic expansion since last spring has been widely noted,
but it is useful to keep in mind that a roughly
parallel development occurred in earlier postwar
recoveries. During the previous five cyclical
upswings, the physical volume of the Nation's
total production rose, on average, by 8 per cent
in the first year and 4 per cent in the second.
Statements to Congress
In those earlier postwar expansions, as in the
present one, the diminished pace of expansion
during the second year reflected a reduced stimulus from rebuilding of inventories.
Although the broad outlines of the current
expansion thus resemble earlier recoveries,
there has been a notable difference in the behavior of the capital goods sector. Expressed
in constant dollars, business outlays for new
plants, machinery, and other equipment typically begin to move up at about the same time
or soon after the upturn in general business
activity. Throughout last year, however, these
outlays either continued to decline or failed to
rise. Since then, a moderate rate of advance has
resumed. Nevertheless, business fixed investment in the third quarter of this year was only
2 lA per cent above its physical level in the first
3 months of 1975, when general business activity reached its trough. At the comparable stage
of previous postwar upswings, business fixed
investment had risen, on average, by about 15
per cent.
The sluggish advance of business capital
spending in this recovery is a consequence in
large part of the impact of the recession of
1974-75 on the psychology of the business
community. Not many of the current generation
of business managers had ever before experienced an economic decline of comparable severity. In recent times, the view has spread in
business circles, as it already had in the academic community, that the old-fashioned business cycle was dead—that any recession that
might occur would prove to be brief and mild,
since governmental policies could be relied
upon to keep the economy moving forward at
a rather steady pace. Businessmen were certainly unprepared for the slump in sales and
production in 1974 and early 1975 that resulted
from an inflationary process that got out of
control and undermined the strength of the
economy. In the aftermath of this hard experience, it should not be surprising that the rebuilding of confidence needed for a new surge
of investment activity has proceeded rather
slowly.
A gradual restoration of confidence, such as
907
we have been experiencing, is also under way
in other industrial countries. The inflation that
played havoc with our economy was worldwide
in scope, and so was the subsequent recession.
Businessmen around the world are tending to
be cautious in making major long-term investment commitments. Recovery has been slow or
only moderate in Germany, France, Japan, and
other industrial nations. Weakness in business
capital outlays has been rather widespread, and
most industrial countries have experienced a
pause in economic expansion similar to our
own.
The key to releasing the productive energies
of our people, as well as the people of other
industrial nations, lies in a further rebuilding
of confidence—that is, renewed hope of businessmen, investors, and consumers in their
own and their nation's economic future. That
process, I believe, is generally continuing.
True, some recent surveys in our country suggest that consumers have of late become somewhat more cautious. Yet, they are still adding
to their purchases of goods and services. The
personal savings rate fell last quarter to 6V2 per
cent—the lowest level in several years. Rising
disposable income and the strengthened liquidity position of American families should, I
believe, provide the basis for advances in consumer spending over the remainder of this year
and on into 1977.
In the business sector, too, there are indications of a growing willingness to make commitments for the future. New orders for nondefense
capital goods increased in 7 of the first 8 months
of this year; they again increased, by 3 per cent,
in September and are now about 20 per cent
above their level last December. In recent
months, the volume of contracts awarded for
commercial and industrial construction has been
running well above the average level in the early
months of this year. The formation of new
businesses has continued to grow. Moreover,
the latest McGraw-Hill survey of investment
intentions indicates that businesses plan to increase expenditures on plant and equipment by
13 per cent next year.
Historically, such surveys have tended to
908
Federal Reserve Bulletin • November 1976
underestimate capital expenditures when economic activity was expanding. Both corporate
profits and the utilization of industrial capacity
have improved this year. Under such conditions,
business firms are apt to move ahead energetically with their capital expenditure programs.
Although such a development has been delayed
in the present expansion, the traditional pattern
now seems to be emerging, so that business
capital outlays should be an important stimulus
to economic activity next year.
Housing activity has been moving up at a
good pace in recent months, and this should also
help to strengthen the rate of economic expansion. Some slowdown appears to have occurred
recently in the rising price of new homes. This
is an encouraging development in a sector where
rising costs have squeezed out many potential
buyers. Residential building permits have advanced rather rapidly of late, and are now at
the highest level in 3 years. New housing starts
are moving up for both single-family and multifamily units. Sales of new homes are increasing.
With mortgage credit in ample supply in practically all parts of the country, a continued advance in homebuilding activity may reasonably
be expected.
Activity in the major sectors of the private
economy thus seems poised for further advances. The recovery has proceeded in an orderly fashion, and there have been few signs
of the speculative excesses that often develop
in the course of a business-cycle expansion. The
basic sources of strength underlying the expansion of economic activity do not appear to have
been weakened by the recent pause in the pace
of expansion. Final sales are still increasing and
should continue to register good gains in the
months ahead. Some imbalances in inventories
that were a problem earlier this year—particularly in the nondurable goods industries—are
being corrected. The depressing effect of strikes
in the rubber and auto industries on industrial
production, employment, and personal income
is now behind us, and the recent steep decline
of farm income may also be nearing an end.
Furthermore, foreign demand for our exports
should increase as business activity expands
further in Western Europe and Japan. Although
our imports will also generally move up in
response to our own economic expansion, the
beginning of oil flows through the Alaskan
pipeline should moderate the rise in oil imports
in 1977.
All in all, it seems entirely reasonable to
expect a pick-up in the tempo of economic
activity in the near future. Certainly, conditions
in financial markets remain conducive to continued economic expansion.
The Federal Reserve has pursued a moderate
monetary policy during the course of this recovery, seeking to foster financial conditions
that would facilitate a good expansion in economic activity without aggravating in any way
the troublesome problem of inflation. That is
still our basic policy.
In my report to this committee last November, I announced the ranges of growth for
the major monetary aggregates that the Federal
Open Market Committee had projected for the
year ending with the third quarter of 1976. In
the case of Mx—that is, the money stock defined
so as to include only currency and demand
deposits—a range of 5 to IVi per cent was
projected. For M2—which also includes time
and savings deposits other than large certificates
of deposit at commercial banks—the range was
set at 1V2 to 10V2 per cent; and for M 3 —which
encompasses, besides the components of M 2 ,
the deposits at savings banks, credit unions, and
savings and loan associations—a range of 9 to
12 per cent was set.
Looking back over the past year, we find that
the actual pace of monetary expansion was
broadly in line with the specified ranges. During
the year ended in the third quarter of 1976, M1
grew 4.4 per cent, somewhat below the lower
end of the projected range. On the other hand,
M 2 rose 9.3 per cent, a little above the midpoint
of its range, while M 3 grew 11.5 per cent, or
close to the top end of its range.
The shortfall in the growth of Mi from the
projected rate reflects innovations in financial
technology that spread through the financial
system more rapidly than we anticipated. For
example, the spread of overdraft facilities at
Statements to Congress
banks has tended to reduce the volume of demand deposits held by the public for transactions purposes. So also has the growth of Negotiable Order of Withdrawal (NOW) accounts
in the New England region, the development
of telephonic transfers of funds from savings
to checking accounts, and the growing use of
savings deposits to settle monthly bills for utilities, mortgage obligations, and other recurring
items. Moreover, recent regulatory changes,
which permitted commercial banks to accept
savings deposits by business corporations and
State and local governments, have resulted in
a substantial increase in savings accounts. A
significant part of these deposits effectively
serve as transactions balances.
The Board's staff has sought to estimate the
effect of innovations of this kind on the recent
growth of Mt. These estimates are necessarily
rough. They suggest, however, that growth of
Mx over the past year would have been 2 percentage points higher—or about 6V2 instead of
4Vi per cent—in the absence of these developments.
A year ago there was some concern among
the members of the Congress and other interested citizens that the growth ranges of the
monetary aggregates we had projected would
lead to a marked tightening of credit conditions.
That has not occurred. Interest rates usually
begin to rise at about the time general business
activity turns up. In the present instance, however, market interest rates have generally remained below their level in the spring of 1975,
when the economic recovery began. Indeed,
interest rates on short-term securities are about
as low now as at any time in the past 4 years.
In longer-term markets, yields on high-grade
corporate bonds are about 1V2 percentage points
below their level at the beginning of the recovery. In fact, they are lower than at any time
in the past 2V2 years.
The downward tendency of interest rates during the current economic expansion stems, in
part, from the fact that private credit demand—
especially the demand by business firms for
short-term funds—has remained moderate. The
main cause, however, of the unusual behavior
909
of interest rates during this recovery is the
gradual lessening of inflationary fears and the
consequent reduction in the inflation premium
built into interest rates—particularly the longterm rates.
The financial climate that has prevailed during
the recovery has permitted lenders and borrowers alike to strengthen their financial condition. Commercial banks have rebuilt their liquidity, and the condition of the banking system
has been further strengthened through widespread additions to retained earnings and some
new issues of common stock.
The liquidity of savings banks and savings
and loan associations has also improved markedly. The flow of savings to these institutions
has remained abundant, and they have continued
to increase their mortgage lending. Outstanding
mortgage loan commitments of savings and loan
associations—the leading suppliers of home
mortgage credit—are now at the highest dollar
figure in history.
Our Nation's business enterprises have likewise taken advantage of the prevailing financial
climate to improve their financial condition.
During the past 2 years, corporations have issued a huge volume of long-term bonds, and
they have used much of the proceeds to repay
short-term debt and to acquire liquid assets.
Since early this year, many lower-rated firms
have found a more receptive public market for
their debt issues, and others have met their need
for long-term funds through private placements
with life insurance companies and other institutional lenders.
These accomplishments in financial markets
indicate, I believe, that the course of moderation
in monetary policy pursued over the past year
has significantly aided the process of recovery
in economic activity.
We at the Federal Reserve remain deeply
concerned about the high level of unemployment that still exists in our country. We recognize the need to regain more prosperous economic conditions. We also recognize, as
thoughtful Americans generally do, that lasting
prosperity will not be achieved until our country
solves its chronic problem of inflation.
910
Federal Reserve Bulletin • November 1976
The inflation that is still damaging our economy and troubling our people began over a
decade ago—largely as a consequence of loose
fiscal policies. During the early 1970's, the
underlying inflationary trend was aggravated by
a variety of special factors—poor crop harvests
here and abroad, a worldwide boom in economic activity, devaluation of the dollar in
international exchange markets, and an enormous run-up in the prices of gasoline, fuel oil,
and other energy items brought on by the Organization of Petroleum Exporting Countries
(OPEC) cartel. By 1974 the general price level
was rising at an explosive rate.
In 1975 our Nation finally succeeded in reducing the rate of inflation—with the increase
of consumer prices slowing to 7 per cent from
the 12 per cent rise recorded in 1974. Most of
this notable progress occurred in the first half
of 1975.
Since then, there has been little further improvement in the underlying rate of inflation.
Thus, consumer prices have risen during the
past several months at an average annual rate
of around 6 per cent, and the advance of
wholesale prices of industrial commodities has
been still faster. Energy prices are again rising
rapidly; since April the cost of energy items to
consumers has increased at an annual rate of
15 per cent.
Last quarter, the average level of prices of
all items included in the gross national product
rose less than in the second quarter. This improvement, however, mainly reflected technical
factors. With the underlying rate of increase in
the general price level still around 6 per cent,
inflation continues to erode the purchasing
power of the wages and savings of our people
at a disconcerting rate.
Continued progress in unwinding inflation
must remain a major objective of public policy,
along with re-establishment of reasonably full
employment and reasonably full utilization of
our industrial capacity. Experience around the
world indicates that these goals are inseparable—that lasting prosperity cannot be attained
in a highly inflationary environment.
The principal contribution that the Federal
Reserve can now make to the achievement of
our Nation's basic economic objectives is to
adhere to a course of moderation in monetary
policy. With that in mind, the Federal Reserve
has made several adjustments over the past year
in its projected long-run growth ranges for the
monetary aggregates. These adjustments were
in large part designed to take account of the
changes in financial technology that I discussed
earlier, but by pointing gradually downward
they also moved in a direction consistent with
an eventual return to general price stability.
The Federal Open Market Committee has
now adopted ranges for the year ending in the
third quarter of 1977 that differ only a little from
those announced last July. For M x , the upper
boundary of the projected growth range was
reduced by Vi of a percentage point, so that the
new range is 4V2 to 6V2 per cent. This reduction
reflects the fact that changes in financial technology are likely to continue reducing the
proportion of transactions balances held by the
public in the form of currency and demand
deposits. Therefore, an increase of Mx as large
as 7 per cent over the next year would not be
needed to finance a continued good recovery—
and it might well contribute to a revival of
inflationary expectations. The change thus constitutes one more small but prudent step toward
achievement of a monetary growth trend consistent with a gradual return to general price
stability.
For technical reasons, the upper boundary of
the ranges for the broader measures of money
has been raised by xh of a percentage point.
The projected range for M 2 is now 7V2 to 10
per cent, and for M 3 the range is 9 to IP/2 per
cent. These adjustments were dictated by the
fact that market interest rates have recently
declined, while those paid by banks and thrift
institutions on time and savings deposits (other
than large certificates of deposit) have generally
remained at regulatory ceilings. The diversion
of savings funds from market instruments to
deposits at these institutions has therefore been
unexpectedly large, so that growth rates of M 2
and M 3 have of late tended to exceed their
longer-run ranges. We cannot be sure that these
Statements to Congress
higher growth rates of M2 and Af3 will continue,
but there is no reason at present to be seriously
concerned about them.
Let me take this opportunity to state unequivocally once again that further reductions
in the growth ranges of all the major monetary
aggregates will continue to be needed if the
United States is to succeed in unwinding the
inflation that still plagues our economy. We at
the Federal Reserve are mindful of this basic
consideration.
In the course of this review of economic and
financial developments, I have tried to indicate
that our Nation has made considerable progress
over the past year and a half in restoring prosperous conditions. Much remains to be accomplished, however. In recent months the rate of
economic expansion has been retarded, new
jobs have not been created at a sufficient pace,
and unemployment has risen.
I remain entirely optimistic about our Nation's ability to deal successfully with these
problems. There are, however, uncertainties at
the present time that cloud the prospects for a
strong recovery of economic activity next year.
One concern is the possibility that the pace
of inflation may accelerate. Over the past 3
months, wholesale prices of industrial commodities have risen at an annual rate of 11 per
cent. Continuation of anything like that rate
would erode confidence and induce businesses
and consumers to reduce their spending commitments.
A related concern is the threat of a further
increase of OPEC oil prices. If the OPEC cartel
raises prices an additional 10 to 15 per cent,
as has been rumored, the adverse effects on the
recovery of business activity could be serious—
in other countries as well as our own. An
increase of that magnitude would add to the
strains that have already been brought on in
international markets by the continuance of high
rates of inflation in numerous countries. Banks
and other private lenders here and abroad may
be unable to extend a sizable volume of additional loans to foreign borrowers without going
beyond the boundaries of prudent management.
International financial mechanisms may en-
911
counter difficulties in handling still larger or
more widespread balance of payments deficits.
These considerations must be kept sternly in
mind by the political and financial leaders of
both the oil-exporting and the oil-importing nations.
As we at the Federal Reserve Board now
observe the world scene, there is a clear need
for expansion in the economies of both the
industrialized and the developing nations. Both
here and abroad, the recovery from the deep
recession of 1974-75 has been incomplete.
The participants in the recent meetings of the
International Monetary Fund in Manila wisely
recognized the dilemma presently faced by economic policy-makers throughout the world. In
today's environment of deeply ingrained inflationary expectations, traditional policies of economic stimulation might well be counterproductive. Fears of inflation would intensify, and
the seeds of another recession may be sown.
As the Interim Committee of the International
Monetary Fund observed this October,
. .
in present circumstances the restoration of a
reasonable degree of price stability will be necessary to establish the basis for sustained economic growth and the reduction of unemployment."
The Federal Reserve Board continues to believe that structural changes in our economy
would enhance the prospects for returning to
reasonably full employment without releasing a
new wave of inflation. Part of our recent problem of continuing inflation amidst widespread
unemployment stems from a failure to attend
sufficiently to modernization and improvement
of our Nation's industrial plant. There is a need
in our country for a larger volume of business
capital investment and for greater reliance by
business firms on equity funds in financing their
capital expenditures. These objectives could be
promoted by an overhaul of the structure of
Federal taxation.
Governmental practices and programs affecting labor markets also have to be reviewed in
any serious search for lasting measures to reduce
unemployment. For example, the Federal minimum wage law is still pricing many teenagers
912
Federal Reserve Bulletin • November 1976
out of the job market, and our present programs
for unemployment compensation may be providing benefits on such a generous scale as to
blunt incentives to work. We would also benefit
from more effective job banks, more practical
training programs, and other realistic labor
market policies.
Structural changes in other areas are also
needed to enhance the prospects for expanded
employment, while at the same time reducing
the pressures on costs and prices. We need to
gather the courage to reassess the nature and
enforcement of our laws directed against restraint of trade by business firms; also the
various restrictions on entry into the professions, the wage standards in the Davis-Bacon
Act, the proper role of trade unions in the public
sector, the monopoly of first-class mail by the
Postal Service, and the mass of governmental
regulations that impede the competitive process
and run up costs for business enterprises.
There are numerous structural measures besides those I have mentioned that could aid in
the restoration of general prosperity. For example, there is a large contribution to be made
by serious efforts on the part of business managers, trade union leaders, officials of local
governments, and other public-minded citizens
to work cooperatively together to help train
unskilled workers and find them jobs, to stimulate new businesses in the central cities, to
restore the pride of Americans in their local
communities, and to deal on a broad front with
the vast problem of urban decay.
•
Statement by Stephen S. Gardner, Vice Chairman, Board of Governors of the Federal Reserve System, at the public hearings of the
Providers Committee of the National Commission on Electronic Fund Transfers, November
11-12, 1976. (Although not congressional testimony, this statement reflects the views of the
Board of Governors of the Federal Reserve
System.)
staff papers on economic and monetary policy
implications of EFTS, the cost of the current
payments mechanism, the question of sharing
EFT facilities, and other topics will be made
available to the Commission when they are
completed. As you know, we have had under
way a comprehensive appraisal of pricing of and
access to Federal Reserve payments mechanism
services, and when this work is completed, we
shall be pleased to share it with the Commission.
Since its origin in 1913, the Federal Reserve
System has been an active participant in the
Nation's payments mechanism. Currently, the
Federal Reserve System provides clearing and
settlement facilities for the exchange of payments among depositary institutions in paper
form and on magnetic tape. The System also
provides currency and coin services to its member banks and the facilities for the wire transfer
of reserve account balances and transactions in
Government securities. A brief summary of the
System's statutory responsibilities in these areas
may be useful.
Prior to the enactment of the Federal Reserve
Act, checks were exchanged in this country
through a system of clearing houses (or ex-
Mr. Chairman, members of the Commission,
I appreciate the opportunity to present the views
of the Board of Governors of the Federal Reserve System on the important question of the
role of Government in Electronic Fund Transfer
Systems (EFTS). The Board follows the work
of this Commission very carefully and will
benefit from proceedings before the Commission
and hopefully contribute to its deliberations.
The Board's positions on the questions with
which the Commission is concerned are still
under development. Board staff papers on some
of these questions, for example, consumer
issues, competitive effects of terminals, and the
Federal Reserve's current activities in the payments mechanism area, have already been forwarded to the Commission. Additional Board
Statements to Congress
changes). Often exchange charges were levied
by the bank that finally paid the check, and since
the checks were not paid in full, the practice
was termed "nonpar banking." The exchange
charge was generally xk of 1 per cent of the
face value of the check paid, and many banks
engaged in circuitous routing of checks to avoid
such exchange charges. This resulted in check
collection being slow, cumbersome, and costly,
and the system had an adverse effect on commerce and economic growth. Sections 13 and
16 of the Federal Reserve Act changed these
relationships because commercial banks were
required to pay for checks presented to them
by Reserve Banks at par, and the Reserve Banks
were authorized to collect the checks of commercial banks.
With respect to currency and coin services,
Section 16 of the Federal Reserve Act authorized the issuance and redemption of Federal
Reserve notes. The Federal Reserve Banks have
issued and redeemed such notes since 1914,
and, as you know, Federal Reserve notes are
now the primary legal tender in the United
States. On May 29, 1920, the Congress authorized the Secretary of the Treasury to transfer
to the Federal Reserve Banks the duties and
functions of the Assistant Treasurers in connection with the exchange of paper currency and
coin in the United States (41 Stat. 654). Accordingly, Reserve Banks have been authorized
and directed by the Treasury to make in all cases
an equitable and impartial distribution of available supplies of currency and coin directly to
member banks and to nonmember commercial
banks (see 31 CFR 100).
The System has also provided the facilities
for the wire transfer of reserve account balances
and transactions in Government securities since
1915. These facilities are integral to the maintenance of reserve account balances that are
required by the Federal Reserve Act and to
providing a viable Federal funds market.
Much of the discussion of the role of the
Federal Reserve in an electronic payments
mechanism has centered on the automated
clearinghouse (ACH) operations and the pointof-sale system. Both have the potential to be
913
important electronic-based substitutes for currency, paper checks, and other traditional forms
of funds transfer. It may be beneficial to clarify
the role of the Federal Reserve in automated
clearinghouse operations in order to insure that
we are proceeding from a common understanding.
More often than not the term "automated
clearinghouse" has been incorrectly interpreted
as being synonomous with the facilities provided by Reserve Banks in such operations.
Rather, the term "automated clearinghouse"
encompasses much more and extends to the
activities of all of the participants and the many
operations required in the processing of transfers
from origination to final settlement. The Federal
Reserve's role in such operations essentially
parallels its role in the check-clearing operation
except that the payment information is exchanged on magnetic tape in lieu of paper
checks.
In ACH operations, financial institutions
create computer tapes of credit and debit items
based upon customer instructions and deliver the
tapes to their local Federal Reserve automated
clearing and settlement facility, just as those
institutions would deliver checks to the Federal
Reserve's check-clearing and settlement facility. A Federal Reserve computer—which is also
used for other operational purposes—reads,
edits, and balances the information on the tapes,
sorts according to the receiving financial organization, and makes the credit and debit entries
in member bank reserve accounts for settlement
for both the originating and the receiving financial organization.
When the processing has been completed, the
computer creates output consisting of magnetic
tapes and descriptive paper listings. The Federal
Reserve delivers the output material to the receiving financial organization, using the same
courier system that is used for delivering
checks. Currently, the System provides the
clearing and settlement facilities for such
operations in 25 offices. It is important to note
that in this entire process the Federal Reserve
interacts only with financial institutions for purposes of effecting clearing and settlement. All
914
Federal Reserve Bulletin • November 1976
other organizational, operational, and legal requirements are between the participating financial institutions and their customers.
At the invitation of its member banks, the
Federal Reserve System agreed to provide the
clearing and settlement facilities necessary for
automated clearinghouse operations. The two
primary factors considered in agreeing to this
operational role were (1) the cost savings opportunity that electronic funds transfer provided
and (2) a consumer alternative to the traditional
methods of receiving and making payment.
There is very little volume emanating from the
commercial end of the operation, although
Government volume is increasing quite rapidly .
In common with other electronic payments
technologies, the automated clearinghouse
operation must afford customers a level of service or other reward that they cannot otherwise
obtain, and such benefits must be paid for from
cost savings over the paper-based alternative.
If these benefits are realized, I believe that the
automated clearinghouse operation can be a
progressive and cost-effective alternative to the
paper system. In addition, the automated clearing and settlement facility for these operations
is well suited to Reserve Bank participation for
two reasons. First, and most importantly, the
Federal Reserve System has operated the Nation's settlement system since 1913. Regardless
of how EFTS develops, it is unlikely that member banks will choose to duplicate the existing
facilities for settlement purposes. The reserve
balances of our member banks are turned over
repeatedly each day in transferring funds among
member banks and their customers in making
final settlement for the Nation's commercial
transactions. Like check transactions, ACH
transactions are also settled among financial
institutions through the reserve accounts of
member banks of the Federal Reserve System.
Secondly, and perhaps less importantly, the
check courier network that is leased by the
Federal Reserve is also employed in delivering
ACH transactions; and our computer systems,
installed and used primarily for other purposes,
are also used for sorting the payment instructions on magnetic tape. In making available the
clearing and settlement facilities for this alternative payments arrangement, the Federal Reserve provided the payments mechanism infrastructure that the private sector may not have
been organized to provide and assume. And in
doing so, the System expects to realize economies both of financial and of real resources.
Federal Reserve provision of automated
clearing facilities was not intended to preclude
private sector development and operation of
similar facilities any more than its operation of
check-clearing facilities preempts correspondent
or other clearings of paper checks. To the contrary, two privately operated automated clearinghouse facilities that have recently been established use the Federal Reserve's settlement
system and will use its check courier delivery
system. These initiatives, in combination with
the announcement in January 1976 (41 FR 3097)
to study the basis for pricing System payments
mechanism services, emphasize the System's
policy of encouraging private sector alternatives
to Federal Reserve operated automated clearing
and settlement facilities.
On the question of a national exchange capability in the ACH operation, the Federal Reserve
System has agreed to cooperate with the National Automated Clearing House Association
in a pilot study to test the feasibility of exchanging payments among six regions. Five of
these regions use Reserve Bank automated
clearing and settlement facilities, and one uses
a privately operated clearing facility and the
local Reserve Bank's settlement and delivery
systems. Under the pilot test proposal, the Federal Reserve would use its wire network to
transmit the payment instructions contained on
magnetic tape among the six regions. The automated clearing and settlement facilities would
then be used to sort, clear, and settle for the
payments received by wire. Whether or not the
Federal Reserve System will provide such interchange capability nationwide on a continuing
basis will depend upon the Board's appraisal
of the broad issues concerned with Government
participation in an electronic payments mechanism. As you know, this question was raised
in the Board's Subparts B and C of the proposed
Statements to Congress
changes to Regulation J that were published for
comment most recently in January of this year
(41 FR 3097). To refresh our memories, Subparts B and C would provide the regulatory
framework for two types of funds transfer activity. First, they would set forth the rules and
procedures—now contained in Reserve Bank
operating circulars—for the transfer of reserve
account balances on our wire network, an activity we have been performing on behalf of our
member banks since 1915. Secondly, the subparts would establish the regulatory framework
for the automated clearing and settlement of
payments exchanged on magnetic tape nationwide.
In essence, the proposed subparts would define the rights of payors, payees, and their
banks, and are intended to provide uniform and
mutual protection from unauthorized transfers.
In the broadest sense, the subparts would require
financial intermediaries to manage their responsibilities to their customers and to other financial
institutions in the payments mechanism. The
subparts are not conceptually different, therefore, from the Board's current Regulation J
concerning transactions with paper checks. The
current Regulation J reinforces the Uniform
Commercial Code, a system of law that required
nearly 10 years to draft and pass the various
State legislatures. As you know, the Board has
given extended and continued consideration to
proposed Subparts B and C and has invited
extensive public comment, including that of this
Commission. However, the Board has not made
a final determination in this matter, and we look
forward to receiving the views of this Commission.
We are monitoring other developments. For
example, we are cognizant that a Giro1 system
1
Giro is the term used to describe the credit transfer
payment system in use in European countries. Instead
of sending a check to a creditor, a consumer provides
his financial institution with instructions to pay a credi-
915
has been successful in Europe and that such a
system might be accommodated by use of existing facilities. Although some attention has
been given to Giro payments, the industry has
been much more interested in an electronic
mode of payment whereby a customer at a retail
establishment would use an electronic terminal
to arrange for the instantaneous transfer of funds
from the customer to the retailer—what has
become known as the on-line-point-of-sale system. While interest has focused on the on-linepoint-of-sale system, off-line systems that accumulate information concerned with financial
transactions for batched processing, clearing,
and deferred settlement are beginning to receive
serious consideration. An off-line system appears to offer most of the advantages of the
on-line system, including consumer convenience, at substantially reduced costs. Moreover,
such a system would accommodate the debiting
of consumer accounts on a schedule paralleling
the current paper-based payments mechanism—
while providing for simultaneous settlement
among the financial institutions.
The role of all participants in an electronic
payments mechanism is, as yet, unclear. As I
have stated earlier, the Federal Reserve has not
arrived at specific positions on questions related
to its role in the electronic payments mechanism
and has been studying this issue for some time.
In determining its role, the Board will consider
such factors as competitive developments in the
electronic payments mechanism, the positive
encouragement of the private sector, the preservation of consumer options and the willingness
of the private sector to innovate and provide
services beneficial to consumers, the preservation of equity among classes of financial institutions, and the maintenance of a viable and
efficient payments mechanism.
•
tor. As a result, the financial institution initiates a credit
transfer on behalf of the consumer and debits the consumer's account.
916
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON SEPTEMBER 21, 1976
1. Domestic Policy Directive
The information reviewed at this meeting suggested that growth
in real output of goods and services in the third quarter had
remained close to the pace in the second quarter, now indicated
by revised estimates of the Commerce Department to have been
at an annual rate of 4.5 per cent. The rise in the fixed-weighted
price index for gross domestic business product in the third quarter
also appeared to have changed little from that in the second quarter,
now estimated by the Commerce Department to have been at an
annual rate of 5.2 per cent.
Final purchases of goods and services appeared to have increased
more rapidly in the third quarter than in the second. According
to staff estimates, however, growth in real output had been restrained by adjustments in business inventory investment in response to the slackening in the expansion of consumer spending
during the second quarter and to an accumulation of inventories
of nondurable goods to levels in excess of those desired. Staff
projections suggested that growth in real GNP would pick up
somewhat in the fourth quarter and would remain at a good rate
well into 1977. The projections also suggested that average prices
would continue to rise at about the recent pace.
The index of industrial production, which after revision showed
a somewhat larger increase in July than had been indicated a month
earlier, continued to expand in August. In the 2 months—and also
over the 5-month period April through August—the over-all production index rose at an annual rate of about 6 per cent, compared
with a rate of about 12 per cent over the first 3 months of the
year.
In August, as in the preceding 4 months, output of nondurable
goods was about unchanged, reflecting the earlier build-up in
inventories and the sluggishness of consumer spending for such
goods in the second quarter. Among durable goods, output of
Record of Policy Actions of FOMC
materials, construction supplies, and business equipment continued
to rise; output of automotive products and other consumer goods
was about unchanged.
Retail sales rose vigorously in August after having changed little
on balance from April through July. Gains were widespread and
were largest among stores selling automobiles, furniture and appliances, and other goods for which consumers may exercise considerable discretion in their spending decisions. Sales of new automobiles in August, at an annual rate of 10V2 million units, equaled
the levels reached in April and June, even though some of the
popular 1976 models were in short supply. Sales of domestic
models apparently rose further in early September.
Payroll employment in nonfarm establishments, which had risen
substantially in July after 2 months of little change, rose appreciably
further in August. The number of jobs in manufacturing increased
somewhat, but most of the growth continued to be in retail trade,
services, and State and local government. As indicated by the
survey of households, both total employment and the civilian labor
force changed little in August, and the unemployment rate edged
up further from 7.8 to 7.9 per cent.
Growth in personal income—after having accelerated in July,
in part because of a bulge in transfer payments attributable to a
cost-of-living increase in social security payments—slowed in August, as growth in transfer payments subsided, income of farm
proprietors declined, and expansion in wage and salary payments
moderated. Nevertheless, total personal income in August was
nearly 10 per cent higher than a year earlier.
The latest Department of Commerce survey of business plans
for plant and equipment expenditures in 1976, conducted in late
July and early August, indicated a 7.4 per cent increase over outlays
in 1975—almost the same year-to-year increase as had been indicated by the survey taken in May. Actual expenditures in the second
quarter appeared to have fallen short of the expectations recorded
in the earlier survey, but plans for the rest of 1976 called for larger
increases than had been the case in May.
A strengthening in the outlook for plant and equipment outlays
was suggested by monthly indicators. New orders for nondefense
capital goods rose by an unusually large amount in July, marking
the seventh consecutive month of advance. While orders in real
917
918
Federal Reserve Bulletin • November 1976
terms were still below the pre-recession peak in the summer of
1974, they were substantially above the level of last December.
In July unfilled orders for such goods showed the first significant
increase of the current business expansion. Contract awards for
commercial and industrial buildings—measured in terms of floor
space—edged down in July, but the trend of awards had been
upward since the beginning of the year.
Private housing starts declined in July but then rose by a
somewhat larger amount in August; the average for the 2 months
was slightly above the rate in the second quarter. Residential
building permits increased in both months, and the average rate
for the 2 months—the highest since the first quarter of 1974—was
up substantially from the second-quarter rate. Throughout the
summer months mortgage terms changed little, and sales of both
new and existing houses were relatively strong. In July outstanding
mortgage commitments at savings and loan associations advanced
to a near-record level. Furthermore, some support for residential
construction in the period ahead was provided by release of the
remaining $2 billion in GNMA funding to purchase mortgages on
multifamily structures at yields below market interest rates and by
enactment of legislation that revised and extended authorization
for several FHA subsidy programs.
The rise in the index of average hourly earnings for private
nonfarm production workers, which had accelerated slightly in July,
slowed again in August. Over the first 8 months of this year the
rise in the index was somewhat below the rapid rate of increase
during 1975.
The wholesale price index for all commodities was about unchanged in August, after having risen at a moderate rate in the
preceding 3 months. Average prices of farm and food products
declined appreciably—reflecting decreases in prices of grains, soybeans, manufactured animal feeds, hogs, pork, and raw cotton that
were offset only in part by increases in prices of cattle, beef, and
some other commodities. Prices of industrial commodities, as in
July, rose at a faster pace than they had earlier in the year. Increases
were widespread and were largest for fuels, lumber and wood
products, rubber products, and transportation equipment.
The consumer price index advanced at an annual rate of 6 per
cent in both July and August, the same as the average monthly
Record of Policy Actions of FOMC
rate in the second quarter. Average retail prices of foods increased
little in the latest 2 months, while average retail prices of other
commodities and of services rose at an annual rate of about 7 per
cent. Increases were relatively large for gasoline and other fuels,
for apparel, and for used cars.
The average value of the dollar against leading foreign currencies
remained relatively steady over the 5 weeks between the August
and September meetings of the Committee. The dollar declined
somewhat against most of those currencies, but it rose against the
pound sterling.
On September 1 the Mexican peso—which had been pegged to
the U.S. dollar at the same rate for 22 years—was allowed to
float, and the peso immediately depreciated more than 40 per cent.
On September 12 the Finance Minister announced that as long as
possible the Bank of Mexico would hold the peso at a rate
equivalent to a 37 per cent depreciation against the dollar but that
maintenance of this rate did not represent a return to a fixed parity.
The U.S. foreign trade deficit rose sharply in July to a level
considerably above the average monthly deficit in the first half of
the year. The value of exports continued to expand in July, but
the value of imports rose substantially more—reflecting sizable
increases in the physical quantity of industrial supplies and consumer goods and in prices of coffee. Imports of fuels, which had
surged upward in June, changed little in July.
Staff projections for the period through the second quarter of
1977 suggested that growth in real output of goods and services
would be at a somewhat higher rate than in the second and third
quarters of 1976. It was expected that expansion in business fixed
investment would accelerate and that business investment in inventories would increase as manufacturers and distributors endeavored
to maintain stocks in line with rising sales. It was also anticipated
that personal consumption expenditures would grow at a faster rate
than they had in the second and third quarters of 1976; that
residential construction activity would continue to increase; and
that State and local government expenditures would expand at a
moderate pace.
Total bank credit rose further during August. However, most
of the increase was associated with the Treasury's huge August
financing; banks acquired a substantial volume of the new Treasury
919
920
Federal Reserve Bulletin • November 1976
issues and substantially increased their loans to securities dealers.
Business loans at banks contracted again, following the modest
increase in July. Moreover, the outstanding volume of commercial
paper of nonfinancial businesses rose little, even though the spread
between the bank prime rate and market interest rates continued
to favor business borrowing in the commercial paper market. With
business demands for short-term credit remaining slack, two large
banks lowered their prime rate from 7 to 63A per cent in mid-September.
It was anticipated that business loan demands at banks would
remain sluggish in the weeks immediately ahead and that banks
would continue to use a substantial part of their time and savings
deposit inflows to increase holdings of Treasury coupon issues.
At the same time banks were likely to permit the outstanding
volume of CD's to decline further.
The narrowly defined money stock (Afi) grew at a seasonally
adjusted annual rate of just under 6 per cent during August,
somewhat below the rate of 63A per cent in July. Demand deposits
had increased sharply during the first half of August, before
payment on the new issues offered in the Treasury's financing.
But they declined after the payment date for these new issues.
Growth in M 2 also slowed in August from the strong pace in
July. The slackening reflected in part the behavior of Ml9 but in
addition, expansion in the time deposit component of M 2 slowed
sharply. On the other hand, savings deposit inflows at banks
accelerated. Inflows of deposits to savings and loan associations
and to mutual savings banks also accelerated, and growth in M 3
remained rapid.
Over the first 8 months of this year—from December 1975 to
August 1976—M 1 grew at a rate near the midpoint of the Committee's longer-run range for that aggregate. However, growth in M 2
and M 3 was high relative to the Committee's longer-term ranges.
The relatively rapid growth in the broader aggregates resulted
mainly from lower-than-expected short-term interest rates associated with slower-than-expected expansion in nominal GNP and
in credit demands.
The rate of increase in M x thus far in 1976 was consistent with
the view that the downward shift in the demand for currency and
demand deposits that was so evident in 1975 may have slowed.
Record of Policy Actions of FOMC
As a result, the velocity of M1 increased on the average over the
second and third quarters of 1976 at a much slower rate than over
the preceding three quarters, when it had risen at a rate of almost
9V4 per cent.
System open market operations since the August meeting had
been guided by the Committee's decision to maintain prevailing
bank reserve and money market conditions, provided that M x and
M 2 appeared to be growing at about the rates then expected. Since
incoming data indicated that in the August-September period the
aggregates would grow at rates well within the projected ranges,
open market operations continued to be directed toward maintaining
reserve conditions consistent with a Federal funds rate of about
5lA per cent—the rate prevailing at the time of the August meeting.
During the inter-meeting period the Federal funds rate deviated
little from the
per cent midpoint of the operating range that
had been specified by the Committee. However, most other interest
rates declined further—by amounts ranging to nearly 20 basis points
in short-term markets and to as much as 30 basis points in
intermediate- and long-term markets. A relatively light calendar
of new corporate bond issues for the months immediately ahead
and a shading of market forecasts of the fourth-quarter volume
of Treasury cash borrowing contributed to the declines in rates.
In addition, market participants apparently interpreted incoming
economic data as indicative of slower expansion in output and less
rise in prices than they had anticipated earlier.
The Treasury raised another $3.2 billion of new money during
the inter-meeting period—by adding $1.1 billion to the auction
of 2-year notes in late August and by issuing $2.1 billion of a
new 4-year note on which payment was made in mid-September.
The Treasury also announced that it would raise $820 million of
new money when it rolled over a 2-year note that would mature
at the end of September. Because of these operations, and also
because Federal spending had fallen short of earlier expectations,
it now seemed likely that the Treasury cash balance at the end
of September would be quite high—possibly in excess of $15
billion.
The further general decline of bond yields carried indexes of
yields on State and local government issues to the lowest levels
since February 1975. Municipal borrowers took advantage of the
921
922
Federal Reserve Bulletin • November 1976
reduced interest costs by maintaining their bond offerings in July
and August at a relatively high rate for that time of year, but the
offerings were readily absorbed. Fire and casualty insurance companies contributed importantly to the strengthened demands for
municipal bonds.
Average interest rates for new commitments on primary home
mortgages changed little over the inter-meeting period, but yields
in the more sensitive secondary market edged down in response
to the further decline in bond yields. The over-all volume of funds
raised in residential mortgage markets remained large. Most of the
new residential mortgages continued to be absorbed by savings
and loan associations or into pools of mortgages used by GNMA
as collateral for new issues of guaranteed securities. Savings and
loan associations acquired nearly a fifth of these new issues.
During the Committee's discussion of the economic situation
at this meeting no member expressed substantial disagreement with
the staff projection of stronger growth in real GNP over the quarters
immediately ahead. However, two members expressed uncertainty
about the timing with which the anticipated strengthening in economic activity would actually develop, and it was suggested that
the chances of a shortfall from the projected rates of growth
appeared to have increased recently. One member questioned
whether the strike under way in the automobile industry might not
have a significantly adverse effect on expansion in aggregate output,
at least over the near term—although others stated that in the past
the bulk of output losses resulting from major strikes had generally
tended to be made up within a short period. Also, uncertainties
about the course of prices—in particular, concern that cost pressures
might push prices up at a more rapid rate—were seen as a possible
dampening influence on business spending plans.
Other members expressed the view that recent economic statistics
justified optimism about the outlook. The index of industrial production had been revised upward to show a significant increase
in July, and it had continued to rise at the same pace in August.
Figures on retail sales—which had appeared sluggish for a time—
had been revised upward for June and July, sales were reported
to have expanded sharply in August, and weekly estimates suggested that they had remained strong in early September. And while
the advance in personal income was reported to have slowed
Record of Policy Actions of FOMC
appreciably in August, the slowing was attributable in part to
estimates of a decline in farm proprietors' income, figures for which
were highly conjectural. The situation with respect to business
income also appeared to have been healthy recently.
It was also emphasized that the behavior of new orders for
nondefense capital goods and of other advance indicators suggested
that a more rapid increase in business fixed investment was in the
making. With respect to business inventories, some significant
adjustments had been made, no troublesome excesses were apparent, and attitudes remained appropriately cautious. Residential
construction activity was not so strong as one might wish, but
a slow uptrend was in progress; the August figures for housing
starts and building permits were reassuring.
At its July meeting the Committee had agreed that from the
second quarter of 1976 to the second quarter of 1977 average rates
of growth in the monetary aggregates within the following ranges
appeared to be consistent with broad economic aims: M 1? 4% to
7 per cent; M 2 , IV2 to 9V2 per cent; and M 3 , 9 to 11 per cent.
The associated range for growth in the bank credit proxy was 5
to 8 per cent. It was agreed that the longer-term ranges, as well
as the particular aggregates for which such ranges were specified,
would be subject to review and modification at subsequent meetings. It also was understood that short-run factors might cause
growth rates from month to month to fall outside the ranges
contemplated for annual periods.
As to policy for the period immediately ahead, Committee
members in general advocated continuation of the current stance.
Interest rates, especially on long-term debt, had been adjusting
downward, it was observed, in good measure because of improving
confidence that the rate of inflation was being reduced, and also
because of stability in the Federal funds rate. One or two members,
taking note of uncertainties in the outlook for economic activity,
suggested that open market operations in pursuit of the Committee's
objectives for the period immediately ahead might be conducted
so that any deviations would be on the side of ease. At the same
time, other members felt that any marked easing in the near term
might be misinterpreted in the market.
In considering the ranges for Mx and M 2 to be specified for
the September-October period, the Committee took account of,
923
924
Federal Reserve Bulletin • November 1976
among other things, the relatively rapid growth in the time and
savings deposit component of M 2 that appeared to be materializing
for September, given the attractiveness of rates offered on time
and savings deposits in relation to market interest rates. There was
near unanimity in the preferences expressed for ranges of growth
in the monetary aggregates over the September-October period.
The members favored a 2-month range of 4 to 8 per cent for Mi
and either 8 to 12 or 9 to 13 per cent for M 2 . It was suggested
that the relatively rapid growth in M 2 ought to be accommodated.
At the same time, two members cited the rapid growth in M 2 in
recent months as an argument for specifying the lower of the two
ranges. One member suggested giving greater weight to M 2 than
to Mx in assessing the implications of the behavior of the aggregates
for System open market operations.
With respect to the Federal funds rate, the members agreed that
it would be appropriate to maintain the prevailing level of 5 lA per
cent so long as the monetary aggregates were growing at about
the rates expected. They differed, however, in their preferences
for the width of the range for the funds rate. Some members
advocated retention of the 5 to 5V2 per cent range that had been
specified at the August meeting. Others advocated a range of 43A
to 53A per cent—and one favored a still wider range. Others
proposed a range that was not symmetrical around the prevailing
rate of 5XA per cent—specifically, a range of 43A to 5V2 per cent.
In support of that proposal, it was suggested that because of the
recent sluggishness in the economic expansion, it would be appropriate to permit more easing in money market conditions in response
to indications of unexpected weakness in growth of the aggregates
than tightening in response to unexpected strength.
It was observed that, if the Committee specified a wider range
for the Federal funds rate than it had at the August meeting, it
would be appropriate to place greater emphasis than at that meeting
on the behavior of the aggregates in formulating the operating
instructions contained in the last paragraph of the domestic policy
directive issued to the Federal Reserve Bank of New York. One
member suggested that, because of the uncertainties about the
economic situation and outlook, it would be appropriate for the
Committee to emphasize steady growth in the monetary aggregates—just as uncertainties about the changing demand function
Record of Policy Actions of FOMC
for money around the beginning of the year had made it appropriate,
in his view, to place more emphasis on interest rate stability.
At the conclusion of the discussion the Committee decided to
seek bank reserve and money market conditions consistent with
moderate growth in monetary aggregates over the period ahead.
Specifically, the Committee concluded that growth in M1 and M 2
over the September-October period at annual rates within ranges
of 4 to 8 per cent and 8 to 12 per cent, respectively, would be
appropriate. The Committee also decided that, in assessing the
behavior of the aggregates, the Manager should continue to give
approximately equal weight to the behavior of Mx and of M 2 .
It was agreed that until the next meeting the weekly-average
Federal funds rate might be expected to vary in an orderly way
within a range of 43A to 5V2 per cent. It was also agreed that the
Manager should continue to aim for a Federal funds rate of 5 XA
per cent, unless growth in the monetary aggregates appeared to
be deviating significantly from the midpoints of the specified ranges.
As customary, it was understood that the Chairman might call upon
the Committee to consider the need for supplementary instructions
before the next scheduled meeting if significant inconsistencies
appeared to be developing among the Committee's various objectives.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that growth
in real output of goods and services has remained moderate in the
current quarter. In August industrial production continued to expand
at about the average rate in the preceding 4 months. Retail sales
apparently rose vigorously, after having changed little on balance
since April. Payroll employment in nonfarm establishments rose
appreciably further, but according to household survey data, the
unemployment rate edged up from 7.8 to 7.9 per cent. The wholesale
price index for all commodities was about unchanged in August,
as a substantial decline in average prices of farm products and foods
offset another large increase in average prices of industrial commodities. So far this year the advance in the index of average wage
rates has been somewhat below the rapid rate of increase during
1975.
The average value of the dollar against leading foreign currencies
925
926
Federal Reserve Bulletin • November 1976
has remained relatively steady in recent weeks, declining somewhat
against most of these currencies but rising against the pound sterling.
The Mexican peso was allowed to depreciate on September 1 and
in recent days has been about 37 per cent below its old value against
the dollar. In July the U.S. foreign trade deficit increased sharply.
Mx and M2 grew at moderate rates in August. Inflows of the
time and savings deposits included in M2 were relatively strong,
although they slackened from the high rate in July. Inflows of
deposits to nonbank thrift institutions accelerated, however, and
growth in M3 remained rapid. Most market interest rates have
declined somewhat further in recent weeks.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions that
will encourage continued economic expansion, while resisting inflationary pressures and contributing to a sustainable pattern of
international transactions.
To implement this policy, while taking account of developments
in domestic and internationalfinancialmarkets, the Committee seeks
to achieve bank reserve and money market conditions consistent
with moderate growth in monetary aggregates over the period ahead.
Votes for this action: Messrs. Burns, Volcker,
Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Wallich, and Winn. Votes against this
action: None. Absent and not voting: Mr. Partee.
2. Financing Arrangements with Mexico
On the day before this meeting it was announced that the U.S.
Treasury Department and the Federal Reserve had made arrangements with the Government of Mexico under which up to $600
million would be available to the Bank of Mexico to counter
disorderly exchange-market conditions during a transition period
pending the receipt of medium-term financing from the International
Monetary Fund.
Following the devaluation of the peso on August 31, 1976, the
Mexican Government had developed a detailed economic program
designed to cope with Mexico's balance of payments problem.
Subsequently, the Managing Director of the International Monetary
Fund had advised the Mexican authorities that he found the program
adequate to deal with Mexico's balance of payments problem and
was prepared to recommend that the Fund's Executive Board
Record of Policy Actions of FOMC
authorize drawings by Mexico under the Extended Fund Facility
and other facilities of the Fund.
At the time these arrangements were made, the Bank of Mexico
had outstanding drawings of $360 million on its swap line with
the Federal Reserve. These drawings were due to mature in early
October. The arrangements provided that, at the option of the
Mexican Government, the Federal Reserve would make available
amounts repaid in advance of maturity under the existing swap
line, up to $180 million. The remaining amounts would be made
available by the Treasury through the Exchange Stabilization Fund.
These arrangements were approved on behalf of the Federal Open
Market Committee by the Foreign Currency Subcommittee, consisting of Messrs. Burns, Volcker, Gardner, and Wallich.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual Report,
are released about a month after the meeting and are subsequently published in
t h e BULLETIN.
927
928
Law Department
Statutes, regulations, interpretations, and decisions
Securities of Member State Banks
The Board of Governors has amended its Regulation F to make it substantially similar to comparable rules and regulations issued by the Securities and Exchange Commission.
Section 206.7(c)(10) is amended by adding the
following new paragraph:
Section 206.7—Form and
Content of Financial Statements
(c) * * *
(10) *
*
*
(vii) Disclosure of selected quarterly financial
data in notes to financial statements.1
Exemption. This rule shall not apply to any
registrant that does not meet the following conditions:
(a) The bank (1) has securities registered
pursuant to Section 12(b) of the Securities Exchange Act of 1934 or (2) has securities registered
pursuant to Section 12(g) of that Act that also (i)
are quoted on the National Association of Securities Dealers Automated Quotation System and (ii)
meet the requirements for continued inclusion on
the list of OTC margin stocks set forth in Section
220.8(i) of Regulation T of the Board of Governors of the Federal Reserve System; and
(b) The bank and its consolidated subsidiaries
(1) have had a net income after taxes but before
extraordinary items and the cumulative effect of
a change in accounting, of at least $250,000 for
each of the last three fiscal years; or (2) had total
assets of at least $200,000,000 as of the end of
the last fiscal year.
(1) Disclosure shall be made in a note to financial statements of total operating income, income
before security gains (losses), income before ex1
Copies of revised forms F-4 and F-9 are available from
any Federal Reserve Bank.
traordinary items and cumulative effect of a change
in accounting, net income, and per share data
based upon such income for each full quarter
within the two most recent fiscal years and any
subsequent interim period for which income statements are presented.
(2) When the data required by the preceding
paragraph vary from the amounts previously reported on the Form F-4 filed for any quarter, such
as would be the case when a pooling of interests
occurs or where an error is corrected, reconcile
the amounts given with those previously reported
describing the reason for the difference.
(3) Describe the effect of any unusual or infrequently occurring items recognized in each full
quarter within the two most recent fiscal years and
any subsequent interim period for which income
statements are presented, as well as the aggregate
effect and the nature of year-end or other adjustments that are material to the results of that quarter.
(4) Where this note is part of audited financial
statements, it may be designated "unaudited."
Instruction: If the financial statements are covered by an independent public accountant's report,
and the note required by the above paragraph (vii)
is designated as "unaudited," it shall be presumed
that appropriate professional standards and procedures with respect to the data in the note have
been followed by the independent accountant who
is associated with the unaudited footnote by virtue
of reporting on the financial statements in which
it is included.
Bank Holding Companies
By notice of proposed rulemaking published in
the Federal Register on April 10, 1974 (39 F.R.
13007), the Board of Governors proposed, in
connection with an application filed pursuant to
§ 4(c)(8) of the Bank Holding Company Act (12
U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the
Board's Regulation Y (12 CFR § 225.4(b)(2)), to
add to the list of activities that it has determined
Law Department
to be closely related to banking or managing or
controlling banks (§ 225.4(a) of Regulation Y) the
following:
. . . underwriting and dealing in such obligations of the United States, general obligations of any State and of any political subdivision thereof, and other obligations that
State member banks of the Federal Reserve
System may from time to time be authorized
to underwrite and deal in.
The Board has considered all comments received. After considering all relevant aspects of
the proposal to add the above activity to the list
of permissible activities for bank holding companies, the Board has determined not to adopt the
proposed amendment at the present time and to
suspend further consideration of the activity at this
time.
In order for the Board to approve an activity
as permissible for a bank holding company under
§ 4(c)(8) of the Bank Holding Company Act, the
Board must find that the activity satisfies two
distinct tests. The activity must be determined (1)
to be closely related to banking or managing or
controlling banks; and (2) to be a proper incident
thereto. The second test involves a weighing of
public benefits that may be expected to flow from
a bank holding company engaging in the activity
against the possible adverse effects.
On the basis of the information in the record,
the Board believes that there is support for a
determination that the activity is ''closely related
to banking." National banks and State member
banks are specifically authorized under 12 U.S.C.
§§24, Paragraph Seventh and 335, to engage in
the activity directly and many banks do, in fact,
engage in the activity. At the present time, banks
are a major competitive factor in the industry. To
date, only two courts have considered the "closely
related" language in Section 4(c)(8) of the Act,
and both courts concluded, inter alia, that an
activity generally engaged in by banks directly
would seem to qualify as "closely related" to
banking or managing or controlling banks within
the meaning of the statute.1 Accordingly, the
Board is of the view that the proposed activity
is "closely related" to banking.
1
National Courier Association v. Board of Governors of
the Federal Reserve System, 516 F. 2d 1229 (D.C. Cir. 1975);
and Alabama Association of Insurance Agents v. Board of
Governors of the Federal Reserve System, 533 F. 2d 224 (5th
Cir. June 10, 1976).
929
Notwithstanding the foregoing conclusion, the
Board believes that developments occurring since
the issuance of the proposed rulemaking in this
matter warrant deferral of a decision to adopt the
proposed amendment to Regulation Y. In 1975,
subsequent to the notice of the proposed rulemaking in this matter, Congress amended the Securities Exchange Act of 1934 to subject, for the first
time, municipal securities dealers to extensive
regulation. As part of a comprehensive scheme of
regulation, the 1975 Amendments created the
Municipal Securities Rulemaking Board (MSRB)
and authorized it to promulgate rules governing
the activities of bank and nonbank municipal securities dealers. Under the statute, the MSRB is
required, among other things, to propose and adopt
rules that:
"[are] designed . . . to promote just and
equitable principles of trade . . . to remove
impediments to and perfect the mechanism
of a free and open market in municipal
securities, and, in general, to protect investors and the public interest [and must] not
be designed to permit unfair discrimination
between customers . . . [and that] establish
the terms and conditions under which any
municipal securities dealer may sell, or prohibit any municipal securities dealer from
selling, any part of a new issue of municipal
securities to a municipal securities portfolio
during the underwriting period."2
The MSRB is currently in the process of promulgating regulations governing the conduct of
municipal securities dealers. Without the benefit
of a thorough consideration of the impact that the
MSRB's actions may have on the municipal securities industry and in light of the specific Congressional mandate that the MSRB has received
to act in this area, the Board believes that action
by it to adopt the proposed amendment at this time
would be premature.
Possible regulatory changes that may be brought
about by actions of the Municipal Securities Rulemaking Board may significantly alter present
practices and operations of bank-related and nonbank-related municipal securities underwriters and
dealers. In light of this uncertainty, any findings
of public benefits deriving from bank holding
company performance of the instant activity or of
possible adverse effects of such performance
would necessarily be speculative at best. Applica2
Section 15B(b)(2)(C) and (K) of the Securities Exchange
Act of 1934, as amended.
930
Federal Reserve Bulletin • November 1976
tion of the balancing test necessary to determine
that the instant activity is a proper incident to
banking or managing or controlling banks would
be even more uncertain at this time.
For the foregoing reasons, the Board has determined not to adopt the proposed amendment at
this time, and to suspend further consideration of
the activity, either by order or by regulation, as
permissible for bank holding companies, for a
period of twelve months, unless prior to that time
actions of the Municipal Securities Rulemaking
Board lead the Board in its judgment to reconsider
the deferral of action on this matter.
By order of the Board of Governors, effective
October 19, 1976.
Automobile Leasing as an
Activity for Bank Holding Companies
Effective April 17, 1974, the Board of Governors amended section 225.4(a)(6) of its Regulation
Y, 12 CFR 225.4(a)(6), to permit bank holding
companies to engage in the leasing of real and
personal property subject to certain conditions.
The National Automobile Dealers Association
(NADA) sought judicial review of this leasing
regulation insofar as it permitted bank holding
companies to engage in the leasing of automobiles.
The Board requested the court to remand the
matter to the Board for reconsideration of the
specific issue of whether automobile leasing should
continue to be a permissible activity for bank
holding companies. On October 25, 1975, the
court granted the Board's request and remanded
the matter to the Board.
On November 11, 1975, the Board issued notice
(published in the Federal Register on November
17, 1975, 40 Federal Register 53272), of a proposed rulemaking on whether automobile leasing
should continue to be a permissible activity for
bank holding companies and, if so, under what
conditions or limitations. The Board received
written comments from approximately 100 interested parties, including automobile dealers, automobile leasing companies, banks, bank holding
companies, and various trade associations. In response to several requests for an opportunity to
present views orally and for a formal hearing, the
Board announced on January 20, 1976 (published
in the Federal Register on January 28, 1976, 41
Federal Register 4022), a schedule for oral presentation of views and additional written submissions. On March 23, 1976, the informal hearing
was held before available members of the Board,
Governor Jackson presiding. Participants were
permitted to file additional materials until April
23, 1976.
The Board has considered all comments received prior to the oral presentation, the record
of the oral presentation, and all written statements
submitted in connection with and subsequent to
the oral presentation. Although bank holding
companies have been permitted to engage in automobile leasing since 1974 under the Board's general personal property leasing regulation, section
225.4(a)(6)(d) of Regulation Y, the Board has
considered the issue of the permissibility of automobile leasing on a de novo basis and has based
its findings only upon the record of this proceeding.1 After studying the record herein, the Board
has determined that automobile leasing should
continue to be a permissible activity for bank
holding companies and should continue to be included within the scope of the Board's existing
personal property leasing regulation.
In order to authorize a bank holding company
to engage in a nonbanking activity pursuant to
Section 4(c)(8) of the Bank Holding Company Act
("Act"), the Board must first determine whether
the activity is closely related to banking or managing or controlling banks. Such a determination
is usually made by the Board, as here, by regulation in adding the proposed activity to the list of
permissible activities set forth in Regulation Y.
The second determination required by the statute
is that the activity is a "proper incident" to
banking. That is, that performance of the activity
by a bank holding company "can reasonably be
expected to produce benefits to the public . . .
that outweigh possible adverse effects. . . . " A s
set forth below, in adopting and determining in
this action to retain the regulation the Board has
made a general finding that the activity is a proper
incident to banking. However, as provided for in
the Board's regulations and procedures, in many
cases, this issue is reconsidered in light of factors
peculiar to individual applications at the time such
applications are submitted.
I. The Closely Related to Banking Test
There are a number of tests that the Board
applies to proposed new activities and, if an activity qualifies under any one of these, it may be
1
See p. 943 for all footnotes.
Law Department
determined to be closely related to banking and
added to the list of activities in Regulation Y that
are permissible for bank holding companies if also
found to be a proper incident. It appears on the
basis of the record that automobile leasing qualifies under at least two of these tests.
The first of these tests is a strictly factual test
of whether banks generally have provided and do
provide the proposed service.2 Although automobile leasing is a relatively new activity, banks
engage in the activity on a widespread basis.
Moreover, banks have been engaged in leasing of
other types of personal property for a much greater
period of time,3 and the Board considers these
legitimate precedents for automobile leasing since
it does not appear that the basic nature of the
activity is altered by the type of item leased.
The relevant period to consider bank involvement in automobile leasing is the last 25 years,
since it is only within that period that leasing of
vehicles to individuals as well as to businesses
began to develop. Banks began to engage in automobile leasing at a relatively early stage of the
industry's development even though the actual
length of time that banks have been involved in
automobile leasing has not been great.
Automobile leasing has spread nationwide
within the last 12 to 15 years. Leasing of automobiles to individuals has tripled within the last
decade and accounts for 10 per cent of the new
car market nationwide.4 Total automobile leasing
including commercial fleet leasing in 1974 was 2.8
million vehicles, about 26 per cent of new car
production.5 Some projections indicate that this
rate of growth will continue and that by 1980,
40 per cent of new car registrations will be for
leased automobiles.6 In California, where leasing
first developed, two out of every five automobiles
presently in use are leased.7
The record in this proceeding indicates that five
types of entities compete in the leasing industry
today. First, there is the independent leasing organization which engages solely in leasing rather
than selling automobiles. The second type of entity
is the auto dealership which, in addition to selling
automobiles, has the potential to lease vehicles if
it can obtain adequate financing. The larger dealerships lease vehicles in much the same way as
independent leasing companies, frequently obtaining financing from a bank. The third type of lessor
is the bank or bank holding company that may
lease vehicles directly or through a network of
smaller automobile dealerships. The fourth kind
931
of leasing competitor is the financing affiliate of
the auto manufacturer such as Ford Motor Credit
Corporation and General Motors Acceptance Corporation. These organizations use their own network of auto dealers to conduct their leasing
operations. Finally, certain large retail corporations have entered or may enter the market. Most
notably, Sears, Roebuck and Company, the Nation's largest retail corporation, has begun to expand its automobile leasing operation nationwide.
National banks have been engaged in automobile leasing since the 1963 ruling of the Comptroller of the Currency that such activity was
properly incidental to banking. In addition, 31
States have specific statutes permitting banks to
lease personal property, and in other States the
bank supervisory authority permits State banks by
regulation to engage in the activity.8 In 1968 there
were 267 national banks engaged in auto leasing;
by 1974 the number rose to 590 national banks.
Another survey, that included State banks, showe4
680 banks engaged in automobile leasing in the
early 1970's, with lease outstandings of $400
million.9 It appears that the number of banks
involved in automobile leasing is continuing to
grow.
On the basis of (1) the historical involvement
of banks in the leasing of personal property such
as railroad stock and ships, (2) the large and
growing number of banks that lease automobiles,
(3) the fact that banks entered the automobile
leasing industry at an early stage and are now a
significant component of the industry, (4) the fact
that the Comptroller of the Currency and over
two-thirds of the States have determined that automobile leasing is a permissible activity for
banks, and (5) the likelihood that the number of
banks engaging in automobile leasing will continue to grow, the Board concludes that automobile
leasing is closely related to banking.
The second test pursuant to which the Board
finds automobile leasing to be closely related to
banking is a functional test, i.e., whether banks
generally provide services that are functionally or
operationally similar to the proposed service and
are thus qualified to provide the proposed service.
The parties to this proceeding argued strenuously
about whether automobile leasing is functionally
equivalent to other banking services.
Those parties to the proceeding in favor of the
performance of the activity by bank holding companies (generally hereafter ''proponents") argued
that leasing is essentially a financial transaction
932
Federal Reserve Bulletin • November 1976
since it is an alternate method of financing the
purchase of an automobile without the necessity
of a large initial down payment. Thus, to the
customer it is a means of obtaining the possession
and use of an automobile through deferred payment. To the bank it is another in a spectrum of
methods of new car financing that includes instalment credit transactions, floor planning and commercial lending to independent lessors.10
Those parties to the proceeding opposed to the
performance of the activity by bank holding companies (generally hereafter "opponents") argued
that automobile leasing is essentially a merchandising activity in which reliance on the residual
or resale value of the leased vehicle upon the
completion of the lease term is the critical element.
They argue that the need for the lessor to estimate
and thus to speculate on the resale value of a new
automobile three years hence makes automobile
leasing different from an extension of credit or
other types of personal property leasing.11
On the basis of the record, the Board has concluded that automobile leasing, if conducted by
a bank holding company in accordance with the
Board's existing personal property regulation, is
essentially a financial transaction that is functionally equivalent to a bank's lending function. The
leases written by a bank holding company in the
lease of an automobile have many similarities to
a secured loan. In each case there is a sum certain
in amount. This sum includes the acquisition cost
of the vehicle and the cost of financing and is
recovered through a schedule of noncancellable
deferred payments. The term of the payment period in both cases is 24 to 36, or recently to 48
months. The vehicle serves as a type of collateral
to guarantee payment on both the instalment loan
and the lease. Both forms of financing are applied
to a specific automobile that is chosen prior to
preparation of the document. In the case of a lease
the bank is required by the Board's Regulation
Y, section 225.4(a)(6)(a)(/0, to acquire the automobile specifically for an individual transaction.
All attributes of ownership pass to the lessee who
is responsible for servicing, insurance, and depreciation.
In addition to the above, the proponents have
testified that they use the same skills in leasing
a vehicle as they do in financing it through an
instalment loan.12 They assess the credit worthiness of the lessee, examining his record on repayment of earlier obligations and reviewing his ability to meet the payment schedule. They examine
the collateral involved to determine its value over
the term of the lease. In fact, since the amount
financed is larger in the case of a lease than in
the case of a loan, the credit criteria are usually
a little more stringent.
The opponents argue, however, that the Board's
regulation which allows reliance by a lessor upon
a residual value of 20 per cent in computing a
full-payout recovery permits speculation in property and alters the character of the transaction from
that of a loan.13 They point out that a lender does
not generally have an equity interest in the property being financed.14 Further, the Federal District
Court for the Western District of Washington
determined in M&M
Leasing
Corporation
v.
Seattle-First National Bank15 that any lease in
which the bank bears any risk of loss is not the
equivalent of a loan.
The record of the proceeding reflects that the
resale value of automobiles at the conclusion of
a two- to three-year lease is generally between 20
and 55 per cent of a vehicle's acquisition cost.16
By setting a maximum residual value of 20 per
cent, the Board is recognizing that, on an empirical
basis, automobiles have a useful life in excess of
the lease term. On the other hand, the figure is
a small enough percentage of the original price
of the automobile to ensure that the holding company will be truly financing a lessee's acquisition
and use of a vehicle rather than conducting a
short-term rent-a-car operation. The record in this
proceeding reflects that in 90 to 98 per cent of
leases the vehicle is worth more than the residual
value at the conclusion of the lease and is therefore
purchased by the lessee,17 and, even with respect
to those vehicles returned at the end of the lease
there is frequently no deficiency.18 Thus, the Board
finds that the risk of loss in a lease transaction
cannot be said to be significantly greater than in
a loan transaction and a bank holding company
lessor cannot be said to be speculating in the value
of property.
While, as indicated above, a lease in which the
lessor relies on a residual value of up to 20 per
cent of the initial value of the property to calculate
payments that provide for a "full payout" is
equivalent to and a substitute for an extension of
credit, the record in the proceeding reflects that
banks and bank holding companies presently engaging in leasing activities uniformly write openend leases in which the lessee guarantees the
estimated residual value. If upon resale at the end
of the lease term, the vehicle does not bring the
Law Department
estimated residual value, the lessee agrees to reimburse the lessor for the deficiency. If the vehicle's actual resale price exceeds the estimate,
the lessee receives the surplus.
The Board's existing personal property leasing
regulation, section 225.4(a)(6)(a)(/v)(4) of Regulation Y, permits the lessor bank holding company
to rely upon residual value up to 60 per cent of
the acquisition cost of the vehicle if the residual
value is unconditionally guaranteed by a financially qualified third party. This 60 per cent figure
corresponds to the maximum residual value for
most vehicles after a two- or three-year lease,19
and the Board believes such a ceiling prevents
speculation on residual value and preserves the
lease as the functional equivalent of an extension
of credit. The court in M&M Leasing20 found this
traditional automobile lease with the guarantee of
residual value to be the functional equivalent of
a loan.
Subsequent to the Board's adoption of the guarantee provisions, on March 23, 1976, Congress
enacted the Consumer Leasing Act21 which provides, in part, that with respect to a guarantee of
residual value a lessee is obligated to pay the
difference between the projected residual value and
the actual resale price only if the estimate of the
residual value is reasonable and made in good
faith. The estimate is presumed unreasonable if
it exceeds the actual resale value by more than
three times the lessee's average monthly rental
payments. Except in the case of unreasonable wear
and use or a mutually agreeable final adjustment,
the lessor can recover an additional sum only by
filing suit and by demonstrating to a court that
the estimate of residual value was reasonable and
made in good faith.
The opponents argue that the Consumer Leasing
Act effectively prevents reliance by bank holding
company lessors upon the lessee guarantees of
residual value. In their view, such a guarantee is
no longer unconditional as required by the Board's
regulation, as the lessor is compelled to rely upon
the resale value of the vehicle rather than the credit
worthiness of the lessee. This, they argue, destroys
the equivalency of the lease to a loan.22
Initially, it is clear from the legislative history
of the Consumer Leasing Act that Congress intended this legislation to protect the consumer
from liability for unreasonable balloon payments
at the end of a lease term. The legislation was
not intended to indirectly prohibit banks and bank
holding companies from engaging in automobile
933
leasing by eliminating any possibility that they
could rely upon a lessee guarantee.23 In fact, the
legislation was specifically designed to ensure that
the "estimated residual value shall be a reasonable
approximation of the fair market value of the
property on lease expiration." Reasonableness in
the estimating of residual value is required by the
Board's regulation and is one reason for imposing
a 60 per cent ceiling on the guarantee provision.
If the guarantee is reasonable then there is no ban
on reliance upon it under the Consumer Leasing
Act. The Report of the Senate Committee on
Banking, Housing and Urban Affairs, in reporting
out the version of Section 183 of the Consumer
Leasing Act that ultimately was enacted, recognized that the lessee bears the risk of loss upon
which lessors may rely.
The lessor's obligation under this language
(of section 183) is to make a good faith and
rational estimate of future residual value
based on circumstances and information
available at the time the lease was written.
If the lessor does so the lessee bears the risk
of unanticipated fluctuations in market value
and the lessor is assured of full recovery
under the lease.23A
The Board believes that, even in light of the
Consumer Leasing Act, an automobile lease
wherein the bank holding company lessor relies
upon a reasonably estimated residual value
guaranteed by the lessee remains functionally
equivalent to a loan. If anything, the Consumer
Leasing Act eliminates possible speculation on
residual values and forces the lessor to adopt very
conservative residual values. The bank holding
company looks to the lessee for rental payments
and in the event of default, particularly in the early
stages of a lease when most defaults occur24 and
when resale value of the automobile does not equal
the lessor's costs. The lessor also relies upon the
lessee for reimbursement in the event of deficiencies between estimated and actual resale value,
particularly when such deficiencies are less than
three monthly rental payments.25 It stands to reason that, as in the case of a loan, a bank holding
company lessor would prefer to rely upon payment
by a lessee/debtor rather than to attempt to dispose
of the leased item/collateral.
The risk of fluctuation of residual value remains
with the lessee, and even the small risk borne by
the bank holding company that a court may find
the estimate of residual value unreasonable is no
greater than the risk always present in making a
secured loan. As in the case of reliance upon an
934
Federal Reserve Bulletin • November 1976
unguaranteed residual value of 20 per cent or less,
a minimal risk of loss does not destroy the lease's
equivalency to an extension of credit.
Furthermore, the Board does not consider the
Consumer Leasing Act to impose a "condition"
upon a guarantee for purposes of its personal
property leasing regulation. The need to follow
certain statutory procedures to enforce the provisions of a document such as a lease or a secured
loan does not necessarily "condition" that document. Nor does the need to prove that the estimate
of residual value is reasonable impose a condition
upon recovery within the contemplation of the
regulation. The Board has required the estimate
of residual value to be reasonable upon the signing
of the lease. All conditions to recover upon the
lease have been fulfilled at that time and the
document is subject to enforcement.
An additional argument that the opponents raise
to establish that leasing of automobiles is not
functionally equivalent to financing is that it more
closely resembles the merchandising of used cars
since the bank holding company lessor must estimate the vehicle's residual value, must purchase
the vehicle and must dispose of it upon completion
of the lease term. They argue that the need to
estimate, and to rely upon, the residual value of
the vehicles leased transforms the leasing of automobiles into something more than a financial
transaction, particularly since automobile leasing
is the only type of personal property leasing that
relies to such a significant degree upon the factor
of residual value.26
These possible aspects of the activity have been
of concern to the Board and it has imposed certain
conditions designed to avoid any merchandising
aspects of leasing and to preserve its financial
character. The regulation requires that the bank
holding company acquire the item to be leased
specifically for the transaction under consideration
(section 225.4(a)(6)(a)(/i)) and that at the end of
the lease term the holding company release the
item or dispose of it within two years (section
225.4(a)(6)(a)(vi)). Both of these provisions are
designed to prevent the stockpiling or inventorying
of property, activities that indicate a commercial
or merchandising operation. The bank holding
company may purchase an automobile only as
already selected by an individual lessee and must
dispose of that vehicle promptly, if it is returned
rather than purchased or otherwise disposed of by
the lessee.
In the case of indirect leasing, the prospective
lessee deals with an automobile dealer rather than
a bank or bank holding company directly. The
bank or holding company merely purchases the
vehicle selected from the dealer after the dealer
and lessee have agreed upon the make and model,
the accessories to be included and the date of
delivery. The lessor's role is the traditional banking function of credit analysis and approval of the
written financing agreement. Since the dealer is
responsible for delivery, the vehicle may never
even be seen by the lessor.27
The bank holding companies and banks do
prepare a schedule of leasing fees for dealers in
their network, and this includes a projection of
residual values. The proponents testified that they
project residuals on the basis of the Kelly Blue
Book of wholesale prices and similar auto industry
projections, conservatively tempered by a safety
factor and without any reliance upon the inflation
that has marked the used car market in recent
years.28
The projection of residual value draws upon the
same knowledge and expertise with regard to the
value of collateral that banks rely upon when
making secured loans. Banks have traditionally
appraised property before accepting it as collateral
for a mortgage loan, refusing the loan if the
purchase price exceeds the bank's estimated resale
value of the property. On various types of secured
loans banks have traditionally required down payments that are a certain percentage of the purchase
price of the item financed as protection in the event
of early default and repossession. These banking
functions require a level of competence in assessing the value of collateral. The estimate of residual
values in automobile leasing is considered by the
Board to be equivalent to existing banking functions.
In the case of direct leasing the bank or holding
company is more involved than in the case of
indirect leasing since it deals directly with the
lessee, and thus greater concerns are raised as to
"merchandising." However, the banks and bank
holding companies have testified that they do not
counsel or advise the prospective lessee as to the
make or model of vehicle he may wish to lease,
or even suggest that he lease rather than buy.29
They may merely put the lessee in contact with
a dealer who is conveniently located to provide
servicing and maintenance.30 Frequently, as in the
case of indirect leasing, the holding company
never even has possession or contol of the vehicle
which is delivered from dealer to lessee.
Law Department
As an additional safeguard to prevent bank
holding company lessors from becoming too involved in the commercial aspects of automobile
leasing, the Board's regulation (section 225.4(a)
06)(a)(iii)) requires the leases be written on a
nonoperating basis. This means that the bank
holding company may not provide for servicing
and maintenance of the vehicle or for similar
functions. The bank holding company administers
the lease as it would administer a loan.
The opposing parties additionally charge that
disposal of the vehicle at the end of the lease forces
the holding company into the merchandising of
used cars. The experience of banks and bank
holding companies, however, demonstrates that
this activity is very limited because only a small
percentage of the vehicles are returned to the
lessors. In addition to the earlier cited testimony
that between 90 and 98 per cent of all vehicles
leased by banks are disposed of by the lessee, both
Alameda Bancorporation and Wells Fargo Bank
testified that only 2 per cent of their leased vehicles
were returned for resale.31 First National Bank of
San Jose has had to dispose of fewer than 5 per
cent of its leased vehicles,32 and Seattle-First National Bank has had to dispose of only two vehicles
wholesale out of a total of 345 normally terminated
leases since April 1973.33
Such figures tend to demonstrate empirically
that the banks are not engaged in the merchandising of used automobiles but are merely incidentally
disposing of a few vehicles as they would in the
case of repossession on a secured auto loan. Indeed, Seattle-First testified that it repossessed 147
vehicles during the same period that it disposed
of two leased vehicles.34 Wells Fargo "repossessed" approximately 370 leased vehicles in 1975
(out of a total of 17,000) for failure to make
payments, but only 30 additional automobiles were
returned at the close of the lease period.35 Even
if the number of leased vehicles returned to the
bank lessors was significantly greater, the disposal
of such vehicles wholesale, or through auction on
the same basis as repossessed vehicles in the case
of a secured loan, is merely a necessary incident
to automobile leasing. It is conducted in a routine
manner and does not involve bank holding companies in merchandising to any significant degree.
One opposing party has presented a series of
brochures advertising the leasing activities of some
banks and a very small number of bank holding
companies in an attempt to show that banks themselves view automobile leasing in terms of mer-
935
chandising automobiles rather than financing or
extending credit. This literature emphasized such
services as locating the vehicle of the customer's
choice, purchasing it on favorable terms, delivering it without cost and disposing of it at the
conclusion of the lease term.
Such advertising is likely to be used only in
the case of direct leasing, according to testimony
by the proponents, since in the case of indirect
leasing these services are performed by the auto
dealer with whom the prospective lessee negotiates.36 If the advertising is prepared by the bank
holding company for use by all of the dealers in
its network and merely demonstrates the dealers'
services as opposed to those of the holding company, the Board believes no issue as to merchandising by the holding company is raised.
When such advertising emphasizes certain incidental leasing services of the bank holding company itself, however, such advertising still does
not alter the basic nature of the lease transaction.
It appears customary to obtain lending or leasing
business by emphasizing the automobile such a
loan or lease will secure. The Board also notes
that the Consumer Leasing Act has an express
provision regulating the advertising of leases,37
and that this will provide the necessary safeguards
against deceptive advertising.
However, in order to insure that leasing of
automobiles by bank holding companies remains
essentially a financing transaction and does not
take on the character of merchandising, the Board
believes it appropriate to define more fully the
requirement of the existing regulation that bank
holding company leasing be conducted on a
nonoperating basis. Accordingly, the Board is
amending its personal property leasing regulation
by adding the following footnote.
For purposes of the leasing of automobiles, the requirement that the lease be on
a nonoperating basis means that the bank
holding company may not, directly or indirectly, provide for the servicing, repair or
maintenance of the leased vehicle during the
lease term; purchase parts and accessories
in bulk or for an individual vehicle after the
lessee has taken delivery of the vehicle;
provide for the loan of an automobile during
servicing of the leased vehicle; purchase
insurance for the lessee; or provide for the
renewal of the vehicle's license merely as
a service to the lessee where the lessee could
renew the license without authorization from
the lessor.
With this additional safeguard and the other
936
Federal Reserve Bulletin • November 1976
limitations on the automobile leasing activities of
bank holding companies already contained in the
regulation, the Board concludes that the essence
of automobile leasing will remain the financing
of the use and control of a vehicle by a lessee.
It is the equivalent of a loan and thus meets a
second of the tests for establishing that an activity
is closely related to banking.
II. The Proper Incident to Banking Test
The determination that automobile leasing by
bank holding companies is "closely related to
banking or managing or controlling banks" resolves the first portion of the two-part test of
Section 4(c)(8). Resolution of the second issue,
whether bank holding company automobile leasing
"can reasonably be expected to produce benefits
to the public . . . that outweigh possible adverse
effects," is usually achieved through the consideration of the individual applications of bank
holding companies to engage in automobile leasing. This is the case since the public benefits or
adverse effects may vary considerably with each
application depending on such factors as the size
and condition of the applicant and the competitiveness of the relevant market. Nevertheless, before placing a nonbanking activity on the list of
activities that have been found to be "closely
related to banking or managing or controlling
banks," the Board finds it desirable to make a
generalized examination of the activity and to
determine, as a general matter, whether the balance of reasonably expected public benefits and
possible adverse effects is such that it would be
in the public interest for bank holding companies
to enter the industry in question. Particularly in
the case of uncontested applications to engage de
novo in the proposed activity, the public benefits
findings made during the rulemaking proceeding
may prove helpful or perhaps dispositive.
With respect to the question whether bank
holding company performance of leasing activities
may lead to possible unfair competition, opponents
contend that independent lessors are unable to
compete with either the direct or indirect leasing
programs of bank holding companies because of
significant differentials in the cost of funds. Since
banks are the source of funds for the independent
lessors, the opposing parties claim that bank holding companies can and do require the independent
lessors to pay interest rates that make it impossible
for them to be competitive with bank-affiliated
dealers and leasing subsidiaries.38 They allege that
in some instances leasing subsidiaries of bank
holding companies may borrow funds from their
parent corporations without interest.39 Further,
they contend that the financial resources of holding
companies allow them to set the residual value
on leased vehicles artificially high, thereby creating smaller monthly payments coupled with a large
balloon payment at the end of the lease term.
Independents are unable to match these lower
monthly payments because it would mean a negative cash flow.40
The proponents contend that holding companies
generally borrow funds at approximately the same
rates as the independent lessors.41 They state further that Section 23A of the Federal Reserve Act
effectively prohibits holding companies from borrowing from their banking subsidiaries and that
holding companies must borrow their funds from
other banks. They thus contend that leasing subsidiaries of holding companies are, therefore, in
the same position as independent lessors vis-a-vis
access to funds.42 Moreover, if one bank were to
set the price of funds for independent lessors artificially high, other banks would find it profitable
to offer funds at a lower rate and thereby acquire
new customers.43 Almost all of the banking parties testified that, although involved in auto leasing,
they continue to provide funds to independent
lessors, and that there is an adequate number of
banks competing to provide such financing.44
The Board finds that large independent lessors
have approximately the same cost for borrowed
funds as holding companies. It appears that the
disparity between the cost of borrowed funds for
holding companies and small independent lessors
is based primarily on the relative size of holding
companies rather than advantages gained from
affiliation with the banking subsidiaries. Indeed,
large independent lessors appear to have a similar
advantage over small independent lessors with
regard to the cost of borrowed funds. Further, the
record demonstrates that holding companies obtain
at least a portion of their funds by borrowing from
unaffiliated banks.45 It is the Board's judgment that
access to the securities market or a lower cost of
borrowed funds resulting from the size of holding
companies does not represent an unfair competitive advantage, nor does it represent an attempt
to use the assets of the subsidiary banks to obtain
a unique competitive status.
The opponents argue that unfair competition
between bank holding companies and the inde-
Law Department
pendent lessors that must borrow from the subsidiary banks of the same holding companies extends
beyond the cost of funds. They allege that holding
companies have access to significant confidential
information regarding potential competitors, both
independents and small dealers that are part of the
holding company's indirect network of dealers.
Indeed, the opponents suggest, although presenting no evidence to so demonstrate, that indirect
leasing programs may simply be a means of making contact with the customers of small dealers
so that they may later be transferred to the holding
company's direct leasing system.46 Additionally,
they state that by auditing the books of the independent lessors to which loans are granted the
holding companies may acquire confidential information concerning the independent lessor's business. As similar information with regard to the
bank holding companies is not available to the
independent lessors, the opponents state that they
are placed at a competitive disadvantage.47
The American Bankers Association (ABA) responded that it has taken a "strong position" with
regard to protecting such information. The ABA
also commented upon the fact that the leasing
parties did not present a single example of misuse
of such information.48 The California Bankers
Association (CBA) stated that financial information obtained from independent lessors is not, as
a matter of law, entitled to the same amount of
protection as is individual consumer credit information. Absent "improper use" of such information concludes CBA, bank disclosure of such information to a leasing affiliate is not unlawful.49
Moreover, the proponents indicated that lines of
credit and interest rates are reported in the annual
reports of bank holding companies,50 and independent lessors as well aware of the lease terms
being offered by banks and bank holding companies through discussions with lessees and bank
advertising.51
The record reflects that independent lessors have
the option of obtaining financing from banks
whose affiliates are not engaged in auto leasing.52
Even borrowing from a bank subsidiary of a holding company that is so engaged results only in
divulging information to that particular bank. Absent some sort of information pooling agreement,
other bank holding companies would not have
access to this data. There has been no allegation
that such a pooling arrangement exists. Substantial
amounts of information concerning the leasing
operations of bank holding companies are publicly
937
available. Although the misuse of confidential information is a possible adverse effect of allowing
bank holding company entry into the leasing field,
the Board concludes that such possibility should
not be accorded significant adverse weight.
The opposing parties also contend that certain
intrinsic qualities of the banking business also
allow holding companies an unfair advantage.
Banking has associated with it a shield of respectability that no other business may obtain53 and
banks can offer such inducements to prospective
lessees as free checking accounts or safe deposit
boxes.54 The proponents respond that, to the extent
consumers desire a lease package that includes
maintenance and repair work, independent lessors
have a significant advantage over bank holding
companies as the latter are not permitted to offer
such services.55
Although the Board is concerned about subsidiary banks offering their holding company affiliates
services without compensation and has, in fact,
directed its staff to prepare a general study of this
issue for Board consideration, the competitive
effect of free checking or free safe deposit boxes
as an inducement to lease an automobile appears
de minimis. Bank holding companies are not permitted to offer a variety of services provided by
independent lessors such as maintenance and
repair work, the provision of "loaner" automobiles while the leased vehicle is being repaired,
the purchase of insurance for the lessee, the sale
of auto accessories, and the maintenance of inventories of vehicles. When compared to these
services, the offer of free checking or a free safe
deposit box would not appear to give a holding
company an unfair competitive advantage. Furthermore, the Board notes that such services apparently are offered only in isolated instances,
most likely when the bank itself leases and not
the bank holding company.
The opponents claim that holding companies
may tie leasing services to other banking services.
The proponents contend that the participation of
holding companies in the leasing market may, in
fact, prevent tying by other entities. As an example, it is said that auto dealers may be tempted
to write leases requiring that all maintenance work
be performed by that dealer. Further, small dealers
may be required to finance their leasing activities
with funds obtained from auto manufacturers.
These manufacturers could tie the provision of
such credit to other financial services such as floor
plan financing for the dealer's inventory. Thus,
938
Federal Reserve Bulletin • November 1976
it is said, allowing holding companies to engage
in leasing will provide an alternative source of
financing and thereby discourage this type of
tying.56 The proponents also note that Section 106
of the Bank Holding Company Act prohibits the
tying of services by banks and bank holding companies.57
The Board is of the view that it is not necessary
for holding companies to engage in auto leasing
in order to act as an alternative source of financing
and thereby discourage tying in other segments of
the industry. Such an effect could just as well be
achieved through more traditional forms of extending credit. Consequently, it does not appear
that any public benefits will be generated in this
regard through holding company entry. With respect to possible adverse effects, Section 106 of
the Bank Holding Company Act provides a deterrent to holding company tying as it enables any
person injured by such tying to bring a civil action
for treble damages plus reasonable attorney's fees.
Furthermore, the record of this proceeding is devoid of any examples of such tying and the Board
believes that the unsubstantiated possibility of such
tying does not constitute a significant adverse
effect of bank holding company entry to this field.
With respect to the question whether performance of the activity may lead to decreased competition, the opponents point out that bank economic
forecasters predicted in 1973 that entry of bank
holding companies into the auto leasing field
would produce a high mortality rate among smaller
independent lessors. They contend that these small
independent auto dealers offer true competitive
alternatives in contrast to the automobile dealers
involved in indirect leasing that offer the same
single bank leasing program and are merely "economic vassals" of bank holding companies.58 The
opponents argue that, if holding companies
seriously wish to encourage competition, they
have but to make their wholesale lease financing
lines available to the smaller auto dealers, thus
allowing such dealers to compete independently
without relying on a holding company's indirect
leasing program. Holding companies are unlikely
to offer wholesale lease financing to small dealers,
however, if holding companies are permitted to
engage in leasing themselves.59 Rather than allowing smaller dealers to compete as independent
lessors, the opponents contend that bank holding
companies have entered the direct and indirect
leasing fields on a massive scale and have expanded rapidly. The presence of banks and bank
holding companies has increased with such speed
in California, where much of the Nation's auto
leasing occurs, that in a short time several banks
have acquired a larger market share than any
independent lessor has after 30 years of operation,
according to the leasing parties.60 In the State of
Washington, Seattle-First National Bank has
achieved a sizable market share after only two
years.61
The opponents further contend that rapid expansion by holding companies has stifled the vigorous competition that existed beforehand. They
state that in San Jose, California, bank lessors have
virtually driven the independent lessors out of
business.62 It is asserted that independent lessors
in San Jose were able to match the overall price
offered to consumers if the residual value factor
were included but that they were unable to offer
monthly payments as low as those offered by
banks.63 Opponents contend that the auto leasing
market share of California bank holding companies, 49 per cent, coupled with their predatory
pricing tactics, will result in the destruction of the
independents. Thereafter, it is said, holding companies will raise their prices and obtain monopoly
profits. Finally, responding to claims that holding
companies must engage in leasing in order to
preserve their share of the auto financing market,
the opponents state that businesses that merchandise autos must obtain their financing from banks
whether those businesses sell or lease autos.64
The proponents dispute the assertion that the
independent lessors will be driven out of the market. They point out that the history of the provision
of consumer credit does not indicate that banks
have displaced other consumer credit granting entities. After years of financing the sale of automobiles, banks in California finance only 49 per cent
of those sold. By analogy one would not expect
independent lessors to be displaced as a general
matter.65 The banking parties also allege that,
although a considerable number of bank holding
companies have entered the leasing field, the
growth of such leasing by banks and bank holding
companies has not kept pace with that of independent lessors.66
The proponents argue that, in order to control
the auto leasing market and drive out independent
lessors, bank holding companies would be required to engage in a conspiracy to deny funds
to independent lessors. In fact, one bank engaged
in leasing stated that in 1975 it helped to finance
the operations of 97 independent lessors with loans
Law Department
of $195 million.67 Further, unless accompanied by
a withdrawal of alternative sources of funds such
as General Motors Acceptance Corporation, any
conspiracy to deprive independents of funding
would be ineffective.68 The proponents argue that,
although NADA has contended for a number of
years that independent lessors will be driven out
of the market, it has produced no evidence to
support this claim.69
As noted above, the Board has determined that
large independent lessors have approximately the
same cost for borrowed funds as bank holding
companies; that any disparity between the cost of
such funds for holding companies and small independent lessors is probably based on the relative
size of holding companies, and that neither the
lower cost of borrowed funds for large businesses
such as holding companies or large independents,
nor the ability of holding companies to avoid
borrowing funds by resorting to the securities
market, represents an unfair competitive advantage.
Inefficient holding companies will doubtless find
themselves unable to compete with large, wellmanaged independent lessors over the long run.
Furthermore, even small independent lessors may
have the capacity to be quite competitive because
of the restrictions placed on bank holding companies by the personal property leasing regulation,
as modified above. Most significantly, holding
companies may not provide maintenance or repairs
for the vehicles they lease. They may not maintain
inventories of cars, sell auto accessories, purchase
insurance for their lessees, or provide "loaner"
cars while the leased vehicle is being repaired.
A segment of the leasing market may well desire
these services and the record indicates that independent lessors provide all of these services.70
The contentions of the leasing parties that independent lessors will be driven from the leasing
market with a resultant decrease in the level of
competition appears to be based in part on the
assumption that independent lessors face a group
of holding companies that are acting in concert
to eliminate their competitors by charging artificially low prices to their lessees, by unreasonably
raising interest rates on loans made to independent
lessors, or by simply refusing to make loans to
independent lessors. There is no evidence of
record to indicate that banks or bank holding
companies are in fact engaged in such a conspiracy. Further, as the proponents have noted, the
history of the involvement of banks in the area
939
of consumer finance suggests that it is extremely
unlikely that banks will charge independent lessors
artificially high rates of interest or refuse to make
funds available to independents. For example,
while banks have routinely and traditionally made
direct extensions of credit to consumers for the
purchase of autos, they continue to make such
loans indirectly through auto dealer intermediaries
by discounting the notes that dealers have accepted
from consumers.
The record does indicate that the automobile
leasing industry as whole has grown with considerable rapidity in recent years and that some holding company operations have become quite large.
However, the statement by the opponents that
holding companies now control 49 per cent of the
leasing market in California appears to represent
a misunderstanding of the observation that after
many years of financing the sale of new cars banks
have only 49 per cent of that segment of the
financial industry.
In view of the above, the Board believes that
independent lessors will continue to exist as strong
competitors in the automobile leasing market.
Further, there is no evidence of record to suggest
that bank holding companies are not competing
among themselves in this area, just as they do in
other banking and nonbanking fields. The Board
concludes that automobile leasing by bank holding
companies, or banks, has not had anticompetitive
effects in the past and is unlikely to result in
decreased competition in the future.
The record does not provide sufficient data for
the Board to conclude that bank holding company
automobile leasing has had large procompetitive
effects in the past. Nevertheless, the Board concludes that the addition to the total number of
competitors that results from bank holding company entry as well as the innovation and increased
competition which bank holding companies may
offer can be reasonably expected to have procompetitive results, and there is some evidence of
lower lease rates as a result of bank holding
company entry.71
With respect to the issue of whether performance of the activity by bank holding companies
will lead to possible unsound banking practices,
the opponents state that, notwithstanding claims
that bank holding company lessors are protected
by their analysis of the creditworthiness of the
lessee and the guarantee provision of open-end
leases, the major factor in the success of an auto
leasing business is the accurate projection of the
940
Federal Reserve Bulletin • November 1976
residual value of leased vehicles. It is said that
even open-end leases involve a substantial risk if
the lessor makes an overly optimistic estimate of
the residual value.72 A considerable amount of
expertise is required to make such estimates accurately, and this expertise is normally not possessed
by bank holding companies. Consequently, auto
leasing is said to involve a high degree of risk
that endangers the capital adequacy of banks and
holding companies.73
The opponents state that holding companies
make unreasonable estimates of residual values so
that the consumer's monthly payments may be
artificially reduced.74 They contend that since the
Consumer Leasing Act shifts all of the risk involved in estimating the residual value to the
lessor, the failure of holding companies to estimate
residual value reasonably represents an unsound
banking practice.75 Even absent the Consumer
Leasing Act, the leasing parties state that it is
difficult to enforce a lessee guarantee provision due
to the costs involved in litigation and the hesitancy
of courts to rule in favor of the lessor in view
of his superior knowledge of probable residual
values.76
The proponents contend that holding companies
utilize higher standards in assessing the creditworthiness of potential lessees than is the case with
those who wish to finance the purchase of an
auto.77 Residual values are estimated conservatively, using the same basic methods applied by
banks in all secured lending involving autos.78
Banks with up to 12 years experience in auto
leasing indicated that their percentage of delinquent accounts, total dollar losses per repossessed
vehicle, and total number of autos repossessed has
been relatively low, in most cases roughly comparable with their auto sales financing operations.79
The proponents state that any tempation to reduce the lessee's monthly payment by estimating
an imprudently high residual vaue is counterbalanced by the associated reduction in the lessor's
yield. Finally, proponents contend that the lessee's
liability is not limited by the Consumer Leasing
Act if the lessor makes a reasonable estimate of
the residual value based on information available
at the time the lease is written.80
It is the Board's judgment that the Consumer
Leasing Act has a significant effect on the potential
for abuse associated with an automobile leasing
transaction. As discussed above, this Act provides
that lessors are required to make a reasonable
estimate of the residual value of leased property.
To the extent the estimated residual value exceeds
the actual residual value by more than three
monthly payments, the Act creates a rebuttable
presumption that the estimate is unreasonable and
was not made in good faith. The Act further
provides that such excess liability may not be
collected except by mutual agreement or through
litigation and that in such litigation the lessor is
required to pay the lessee's reasonable attorney's
fees unless the reason for the failure to accurately
project the residual value is due to excessive wear
and use of the vehicle by the lessee.
It does not appear that the provisions of this
Act will result in unsound banking practices,
however, as they will substantially reduce any
tendency to overestimate residual value in order
to create lower monthly payments. The low level
of losses historically associated with bank and
bank holding company leasing also diminishes the
possibility that the Consumer Leasing Act will
have significant adverse effects on the automobile
leasing operations of bank holding companies and
support statements by the banking parties that
residual values are estimated in a conservative
manner. The Board finds that the estimation of
residual values is not an inherently unsafe activity
and that holding companies have made such estimates in a reasonable manner that cannot be said
to represent an unsound banking practice.
The opponents further contend that the low rates
of interest at which holding companies provide
funds to their leasing subsidiaries represent an
unsound banking practice. If fair interest rates
were charged, they argue, the supposed profits of
leasing subsidiaries would be deflated and might
even become losses.
The Board is unable to discern how the use of
low interest rates for intracompany transfers of
funds could represent an unsound banking practice. First, the subsidiary banks themselves are
protected from abuse by the provisions of Section
23A of the Federal Reserve Act. Secondly, low
interest loans by the holding company to subsidiaries cannot significantly alter the appearance of
consolidated financial statements for purposes of
determining profit and loss.
With respect to the question whether bank
holding company performance of leasing activities
can be reasonably expected to produce benefits to
the public such as increased convenience, the
opponents contend that, if properly performed,
auto leasing involves the provision of a variety
of services to accompany the leasing transaction.81
Law Department
These services include consumer counseling,
maintenance and repair work, arranging for insurance coverage, provision of free "loaner" cars
while the leased vehicle is being repaired, sale of
auto accessories, sale and purchase of used vehicles, and generally keeping abreast of market
developments to assure consumers that they receive the best possible price. The opponents argue
that bank holding companies are either not allowed
to offer these services or, in the case of consumer
counseling, not qualified, and conclude that holding company lessors are not adequately serving
the needs of their customers.82
The Board concludes that the fact that holding
companies are not permitted to offer certain services does not indicate that their participation in
the market does not lead to greater convenience
for the public. The Board regards holding company leasing as representing an alternative to,
rather than a replacement of, the type of leasing
performed by independent lessors. Allowing bank
holding companies to offer leasing services will
create more leasing outlets for the consumer. The
elimination of the limited type of leasing transaction offered by holding companies would be particularly undesirable in areas that have no independent lessors or whose needs are not adequately
served by existing independent lessors.
The questionable nature of the claim that the
limited type of leasing offered by holding companies does not adequately serve the public is emphasized by the fact that holding company leasing
is intended to be the functional equivalent of an
extension of credit. It has not been suggested, for
example, that bank financing of auto sales is
somehow inadequate because it does not include
the type of services provided by auto dealers.
Thus, the Board concludes that performance of the
activity by bank holding companies will have
benefits to the consumer in terms of increased
convenience.
The opponents contend that some holding companies do not attempt to purchase autos at the
lowest available price and consequently, do not
offer consumers the full benefits of leasing.83
Conversely, holding companies are said to deceive
consumers by offering lower monthly payments on
the basis of artificially high residual values with
the result that consumers are required to make a
substantial deficiency payment at the end of the
lease term.84 Proponents contend that some holding companies purposefully avoid paying the
lowest possible price for the automobiles they
941
purchase for lease because to do so would have
an adverse effect on the quality of the warranty
work performed for the lessor by the automobile
dealer that sells it.85 Proponents further argue that
they have not overestimated residual values, and
offer examples from their own experience to demonstrate that their estimates have been reasonable.86 Furthermore, even if such practice had
existed, the Consumer Leasing Act would have
the effect of severely restricting it.
The Board believes that consumers should be
allowed to choose between lease plans that provide
differing amounts of additional or incidental services and determine how many or how few services
to pay for. Such an increase in selection provides
positive benefits to the consumer and it is reasonably expected that performance by bank holding
companies of the activity will lead to such benefits.
With further reference to the questions of increased convenience and competition, the opponents state in response to claims that the indirect
leasing programs of bank holding companies benefit small automobile dealers and create additional
sources of leasing services, that any benefits which
may accrue to dealers that are enabled to engage
in leasing through indirect leasing programs are
undermined to the extent that the same holding
company is permitted to engage in direct leasing
in competition with the independents.87 Further,
they contend that the individual dealer in an indirect leasing program is not a separate competitor
providing an alternative source of leasing services
to the consumer because the holding company
funding the indirect leasing program is the only
actual competitor.88
The proponents contend that holding company
leasing has markedly increased the number of auto
dealers that are able to offer leasing and, thus,
the number of leasing outlets. Seattle-First National Bank states that 300 of the approximately
480 new car dealers in the State of Washington
utilize its indirect leasing program,89 while Wells
Fargo Bank states that in 1975 it was providing
indirect lease financing through 750 dealerships
that wrote a total of 17,000 leases.90 The proponents argue that were it not for this type of leasing
arrangement small dealers would be unable to
provide auto leasing and the public's alternatives
would be significantly diminished.91
Furthermore, proponents state that holding
company leasing has not precluded other types of
auto financing; that banking subsidiaries continue
942
Federal Reserve Bulletin • November 1976
to extend credit to finance both new car sales and
the operations of independent lessors.92 Moreover,
dealers that utilize indirect leasing programs receive their profit more rapidly than is the case with
conventional financing.93 They contend that by
providing an alternative to conventional financing,
leasing also allows dealers to garner increased
sales.94 Additional public benefits arise through
holding company leasing in rural areas that would
otherwise have no leasing outlets.95 Finally, proponents state that in some areas of the country
holding company leasing has resulted, or is
expected to result, in lower costs to consumers.96
In the Board's judgment, in view of the history
of the involvement of banks in the area of consumer finance, it is unlikely that a holding company's addition of a direct leasing plan to an
indirect program will have a negative impact on
dealers participating in the indirect program.
Banks have demonstrated that they are prepared
to utilize several methods of financing the same
type of transaction and it seems reasonable to
expect that they will do so in the leasing area also.
The record indicates that in practice direct and
indirect methods of holding company leasing are
not incompatible.97 Moreover, allowing direct
leasing provides additional locations at which a
lease may be obtained and is therefore more convenient for the consumer. Direct leasing by bank
holding companies also adds a completely independent competitor to the market.
The contentions of opponents that auto dealers
participating in indirect leasing plans are not independent competitors are undermined by the fact
that dealers may participate in several plans at
once. It does, however, appear reasonable to assume that dealers involved in only one such plan
are not independent competitors and might be
more accurately described as agents for a particular
holding company. Despite this, it must be noted
that even in this instance, the holding company
is added to the number of competitors in the
market served by the dealer. By participating in
several indirect leasing programs, the dealer may
gain a certain degree of independence and additional holding companies may become competitors
in the dealer's market area.
More significantly, the large number of leasing
outlets associated with an indirect leasing plan is
clearly more convenient for the public, particularly
in areas that cannot support an independent leasing
operation. Thus the Board is of the view that bank
holding company leasing, whether of the direct
or indirect type, provides a significant public benefit in terms of greater convenience for the community to be served, and provides a benefit in
terms of increased competition.
With regard to the issue of whether holding
company auto leasing will create gains in efficiency, the opponents contend that bank holding
companies are not leasing experts and therefore
cannot create such gains. Proponents respond that
by using the centralized facilities of a bank holding
company, small auto dealers are able to substantially reduce the cost of administering a leasing
program and that the resulting savings may be
passed on to the consumer.
The Board is of the view that the contention
of the opponents that holding companies cannot
create greater efficiencies because they are inexperienced in leasing is dubious in view of the fact
that national banks have been permitted to engage
in auto leasing since 1963, and many have experience that can be transferred to their parent holding
companies. Moreover, holding companies have
been involved in the related field of auto finance
for decades. Accordingly, the Board concludes
that banks and bank holding companies have had
significant experience in the administration of automobile leasing and automobile sales financing
programs and that gains in efficiency can reasonably be expected to result from making this expertise available to small automobile dealers through
indirect leasing programs.
On the basis of the foregoing, the Board concludes that automobile leasing is closely related
to banking or managing or controlling banks. The
Board has further determined that performance of
this activity by an affiliate of a holding company
can reasonably be expected to produce benefits to
the public which outweigh possible adverse effects
and that the activity is, therefore, a proper incident
to banking or managing or controlling banks. The
Board has therefore determined that bank holding
companies should be allowed tq continue to conduct automobile leasing activities in a manner
consistent with the Board's personal property
leasing regulation. The Board has, however, determined in accordance with the above discussion,
that it would be appropriate to provide a further
definition of the requirement that a lease be on
a nonoperating basis. Accordingly, pursuant to
Section 4(c) (8) of the Bank Holding Company
Act, the Board has decided herein to amend its
personal property leasing regulation.
Law Department
Footnotes:
lr
The Board has considered all submissions of the parties
to this proceeding. It has considered all suggestions for changes
in the Board's existing personal property leasing regulation
as applied to the lease of automobiles. In this Order, the Board
has summarized and dealt specifically with the major arguments
and suggestions of all parties in adopting a regulation permitting bank holding companies to continue to engage in automobile leasing. To the extent that any arguments and suggestions
opposing the regulation are not treated individually in this
Order, they have been considered and dismissed as without
merit.
2
See the Board's Order of November 15, 1973, adding
courier activities to the list of activities in the Board's Reg.
Y that are permissible for bank holding companies. 1973
Federal Reserve Bulletin 892. See also National Courier Association v. Board of Governors, 516 F. 2d 1229, 1237 (D.C.
Cir. 1975).
3
Testimony of Professor Bower: Letter, dated March 12,
1976, pp. 5-8 and Transcript (hereinafter abbreviated Tr.), pp.
154-56; California Bankers Assoc. (hereinafter "CBA"),
March 12, 1976, p. 7.
4
Tr., p. 68; 1975 Federal Reserve Bulletin 414.
5
Federal Reserve Bank of Chicago December 22, 1976, p.
2, citing 1975 Federal Reserve Bulletin 414.
6
Tr., p. 68; Trust Company of Georgia, March 4, 1976,
and United States National Bank of Oregon, December 22,
1975.
7
CBA, March 12, 1976, p. 1.
8
Tr., p. 66.
9
Fulton Bank, Lancaster, Pennsylvania, December 2, 1975,
and Boatman's Bank, St. Louis, Missouri, December 19, 1975.
10
See, for example, Tr., pp. 6, 8-9, 156-159, 182, 184;
CBA, March 12, 1976, pp. 8-11.
11
See, for example, Tr., pp. 39, 42, 110-119, 220; NADA,
December 22, 1975, pp. 9-19, Southwest Leasing Corp.
("SW"), December 15, 195, pp. 3-4.
12
Tr., pp. 8-9, 77-78; Seilon, Inc., Toledo, Ohio, December
16, 1975.
13
Tr. pp. 104-106.
14
Tr., pp. 40, 117-118.
15
391 F. Supp. 1290 (W.D. Wash. 1975).
16
Tr., pp. 19, 90, 104, 106, 126.
17
Tr., pp. 11, 45, 56-58, 62, 72, 89, 95, 165, 176, 180.
18
Tr., pp. 11, 176, 180.
19
See note 16.
20
See note 15.
21
90 Stat. 257, codified as 15 U.S.C. 1667 (1976).
22
NADA, April 23, 1976, pp. 9-13, and American Imported
Automobile Dealers Assn., April 22, 1976, and SW, April
13, 1976.
23
House Report, No. 544, 94th Cong., 1st Sess., 1975; 121
Cong. Record, H10308-10312.
23A
S. Rep. No. 590, 94th Cong., 2d Sess., 1973.
24
Tr., p. 31.
25
The Board believes in light of the "safety factors" used
by banks and bank holding companies in estimating residual
values, it is likely that any deficiency will be less than the
average of three monthly rental payments. See Tr., pp. 9, 72,
166.
26
Tr., pp. 41, 104-105, 111-113, 117-119, NADA, December 22, 1975.
27
Tr., pp. 8-10, 71-72, Seilon, Inc., supra, and First Hawaii
Bank, December 17, 1975.
28
Tr., pp. 9, 71, 166, 175, 180.
29
Tr., pp. 10, 77, CBA, March 12, 1976.
30
Tr., p. 96.
31
Tr., pp. 165, 176.
32
943
Tr., p. 72.
Tr., p. 11.
Tr., p. 11.
35
Letter from Wells Fargo Bank, p. 13, March 12, 1976.
36
Tr., p. 76.
37
Section 184, 90 Stat. 259, 15 U.S.C. 1667(c) (1976).
38
Tr., p. 48; SW December 15, 1975, p. 8.
39
SW, April 21, 1976, p. 1.
40
Tr., p. 58.
41
Tr., pp. 169, 190.
42
Tr., pp. 169, 180-81.
43
Tr., p. 53.
44
Tr., pp. 201-202.
45
Tr., pp. 169, 190.
46
Tr., p. 137.
47
Tr., p. 224.
48
ABA, April 23, 1976, p. 1.
49
CBA, April 23, 1976, pp. 14-16.
50
Tr., p. 169.
51
Tr., p. 232; NADA, April 23, 1976, Appendix A; California Doctors Leasing Service, Inc., April 23, 1976.
52
Tr., pp. 153, 181, Dick Bullis Car Lease Corp., December
15, 1975.
53
American Imported Automobile Dealers Assoc., April 22,
1976, p. 7.
54
SW, December 15, 1975, p. 8.
55
Seattle-First National Bank, April 20, 1976, p. 5.
56
Tr., p. 86.
57
Tr., p. 87.
58
NADA, December 22, 1975, pp. 21-22.
59
NADA, April 23, 1976, p. 19.
60
SW, December 15, 1975, p. 8.
61
Ibid.
62
Tr., p. 222.
63
Tr., p. 123.
64
Tr., p. 153.
65
Tr., p. 196.
66
Tr., p. 75.
67
Tr., p. 172.
68
Tr., p. 181.
69
Seattle-First National Bank, March 12, 1976, pp. 18-20.
70
Tr., pp. 43, 216-218.
71
Tr., p. 188.
72
NADA, December 22, 1975, pp. 22-23.
73
Id., pp. 21-23.
74
Tr., pp. 42, 58.
75
NADA, April 23, 1976, pp. 19-20.
76
Tr., pp. 51-52.
77
Tr., p. 12.
78
Tr., pp. 8-18, 71-72, 175.
79
Tr., pp. 12, 74, 165, 176, 178.
80
Seattle-First National Bank, April 20, 1976.
81
Tr., pp. 212-220.
82
NADA, April 23, 1976, p. 14; SW, December 15, 1976.
83
Tr., pp. 213-214.
84
Tr., p. 238.
85
Tr., p. 99.
86
Tr., pp. 9, 72.
87
Tr., p. 114.
88
NADA, April 23, 1976, pp. 18-19.
89
Tr., p. 8.
90
Tr., p. 173.
91
Seattle-First National Bank, March 12, 1976, pp. 18-20.
92
Tr., pp. 13, 171-73, 201-202.
93
Tr., p. 16.
94
Tr., p. 83.
95
Tr., p. 80.
96
Tr., pp. 26, 188.
97
Tr., p. 71.
33
34
944
Federal Reserve Bulletin • November 1976
A M E N D M E N T TO REGULATION
Y
(1) Effective October 13, 1976, section 225.4(a)
(6) is hereby amended by adding a new footnote
4 at the end of paragraph 225.4(a) (6) (iii) to read
as follows:
Section 225.4—Nonbanking Activities
(а) Activities closely related to banking or managing or controlling banks. * * *
(б)(a) Leasing personal property or acting as
agent, broker or adviser in leasing such property
provided:
(iii) the lease is on a nonoperating basis;4
(2) As an incident to this amendment, footnotes
4 to 12 are redesignated 5 to 13.
4
For purposes of the leasing of automobiles, the requirement
that the lease be on a nonoperating basis means that the bank
holding company may not, directly or indirectly, provide for
the servicing, repair or maintenance of the leased vehicle
during the lease term; purchase parts and accessories in bulk
or for an individual vehicle after the lessee has taken delivery
of the vehicle; provide for the loan of an automobile during
servicing of the leased vehicle; purchase insurance for the
lessee; or provide for the renewal of the vehicle's license
merely as a service to the lessee where the lessee could renew
the license without authorization from the lessor.
Truth in Lending
The Board of Governors has adopted amendments to Regulation Z implementing the Consumer
Leasing Act of 1976 (41 FR 28313).
Effective March 23, 1977, Part 226 is amended
as follows:
Section 226.1—
Authority, Scope, Purpose, etc.
1. By revising the last sentence of paragraph
226.1(a)(1) to read as follows:
(a)(1) * * * Except as otherwise provided
herein, this Part, within the context of its related
provisions, applies to all persons who are creditors, as defined in paragraph(s) of § 226.2, and
in the case of consumer leases, as defined in
paragraph (mm) of § 226.2, to all persons who
are lessors, as defined in paragraph (oo) of §
226.2.
2. In paragraph 226.1(a)(2) by inserting the
words "and consumer lease" between the words
"Advertising of consumer credit" and "terms
must comply" and by adding the following sentence before the last sentence of the paragraph:
* * * This Part is also designed to assure that
lessees of personal property are given meaningful
disclosures of lease terms, to delimit the ultimate
liability of lessees in leasing personal property and
to require meaningful and accurate disclosures of
lease terms in advertisements. * * *
3. In paragraph 226.1(b)(1) by inserting a
comma after the word "creditors," deleting the
word "and" between the words "creditors" and
"credit" and inserting the words "and lessors"
between the words "issuers" and "is."
4. By amending paragraph 226.1(c) to read as
follows:
(c) Penalties and liabilities. Section 112 of the
Act provides criminal liability for willful and
knowing failure to comply with any requirement
imposed under the Act and this Part. Section 134
provides for criminal liability for certain fraudulent
activities related to credit cards. Section 130 provides for civil liability in individual or class actions
for any creditor or lessor who fails to comply with
any requirement imposed under Chapter 2, Chapter 4 or Chapter 5 of the Act and the corresponding
provisions of this Part. Section 130 also provides
creditors or lessors a defense against civil and
criminal liability under Sections 130 and 112 for
any act done or omitted in good faith in conformity
with the provisions of this Part or any interpretation thereof by the Board, or with any interpretations or approvals issued by a duly authorized
official or employee of the Federal Reserve System, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation or approval is amended, rescinded or otherwise determined to be invalid for any reason.
Section 130 further provides that a multiple failure
to disclose in connection with a single account or
single consumer lease shall permit but a single
recovery. Section 115 provides for civil liability
for an assignee of an original creditor where the
original creditor has violated the disclosure requirements and such violation is apparent on the
face of the instrument assigned, unless the assignment is involuntary. Section 185(b) provides for
civil liability under § 130 for any lessor who fails
to comply with any requirement imposed under
§ 184 to any person who suffers actual damage
from the violation. Pursuant to § 108 of the Act,
violations of the Act or this Part constitute violations of other Federal laws which may provide
further penalties.
Law Department
Section 226.2 is amended as follows:
Section 226.2—
Definitions and Rules of Construction
1. In paragraph (d) by inserting the words "or
lessee or prospective lessee" between the words
"prospective customer" and "in."
2. By amending paragraph 226.2(h) to read as
follows:
(h) Arrange for the extension of credit or for
lease of personal property means to provide or
offer to provide consumer credit or a lease which
is or will be extended by another person under
a business or other relationship pursuant to which
the person arranging such credit or lease
(1) Receives or will receive a fee, compensation, or other consideration for such service, or
(2) Has knowledge of the credit or lease terms
and participates in the preparation of the contract
documents required in connection with the extension of credit or the lease. It does not include
honoring a credit card or similar device where no
finance charge is imposed at the time of that
transaction.
3. In paragraph 226.2(jj) by deleting the word
"and" after the words "consumer loan" and
adding the words "and 'lease' to mean 'consumer
lease' " after the words "consumer credit transaction."
4. In paragraph 226.2(kk) by inserting the words
"or a lessor and lessee" between the words "customer" and "irrespective."
5. By adding the following after paragraph
226.2 (11):
(mm) Consumer lease means a contract in the
form of a bailment or lease for the use of personal
property by a natural person primarily for personal, family or household purposes, for a period
of time exceeding four months, for a total contractual obligation not exceeding $25,000, whether
or not the lessee has the option to purchase or
otherwise become the owner of the property at the
expiration of the lease. It does not include a lease
which meets the definition of a credit sale in §
226.2(t), nor does it include a lease for agricultural, business or commercial purposes or one
made to an organization.
(nn) Lessee means a natural person who leases
under, or who is offered, a consumer lease.
(oo) Lessor means a person who in the ordinary
course of business regularly leases, offers to lease
945
or arranges for the leasing of personal property
under a consumer lease.
(pp) Personal property means any property
which is not real property under the law of the
State where is is located at the time it is offered
or made available for lease.
(qq) Realized value means (1) the price received by the lessor for the leased property at
disposition, (2) the highest offer for disposition,
or (3) the fair market value at the end of the lease
term.
(rr) Total lease obligation equals the total of
(1) the scheduled periodic payments under the
lease, (2) any nonrefundable cash payment required of the lessee or agreed upon by the lessor
and lessee or any trade-in allowance made at
consummation, and (3) the estimated value of the
leased property at the end of the lease term.
(ss) Value at consummation equals the cost
to the lessor of the leased property including, if
applicable, any increase or markup by the lessor
prior to consummation.
Section 226.3 is amended by adding a new §
226.3(f) to read as follows:
Section 226.3—
Exempted Transactions
(f) Certain lease transactions. Lease transactions of personal property which are incident to
the lease of real property and which provide that
(1) the lessee has no liability for the value of the
property at the end of the lease term except for
abnormal wear and tear, and (2) the lessee has
no option to purchase the leased property.
Section 226.6 is amended as follows:
Section 226.6—
General Disclosure Requirements
1. By adding a new § 226.6(b)(3) to read as
follows:
(b)(3)(i) A State law which is similar in nature,
purpose, scope, intent, effect or requisites to a
section of Chapter 5 of the Act is not inconsistent
with the Act or this Part within the meaning of
§ 186(a) of the Act if the lessor can comply with
the State law without violating this Part. If a lessor
cannot comply with a State law without violating
a provision of this Part which implements a section
of Chapter 5 of the Act, such State law is inconsistent with the requirements of the Act and this
946
Federal Reserve Bulletin • November 1976
Part within the meaning of § 186(a) of the Act
and is preempted.
(ii) A State, through its Governor, Attorney
General, or other appropriate official having primary enforcement or interpretative responsibilities
for its consumer leasing law, may apply to the
Board for a determination that the State law offers
greater protection and benefit to lessees than a
comparable provision(s) of Chapter 5 of the Act
and its implementing provisions(s) in this Part, or
is otherwise not inconsistent with Chapter 5 of the
Act and this Part, or for a determination with
respect to any issues not clearly covered by §
226.6(b)(3)(i) as to the consistency or inconsistency of a State law with Chapter 5 of the Act
or its implementing provisions in this Part.
2. In paragraph 226.6(c) by inserting the words
"or lessor's" between the words "creditor's" and
"option" and by inserting the words "or lessee"
between the words "customer" and "or" in the
first sentence, and by inserting the words "or
lessor" between the words "creditor" and "who
elects" in the second sentence.
3. By revising paragraphs 226.6 (d), (e) and
(f) to read as follows:
(d) Multiple creditors or lessors; joint disclosure. If there is more than one creditor or lessor
in a transaction, each creditor or lessor shall be
clearly identified and shall be responsible for
making only those disclosures required by this Part
which are within his knowledge and the purview
of his relationship with the customer or lessee.
If two or more creditors or lessors make a joint
disclosure, each creditor or lessor shall be clearly
identified. The disclosures required under paragraphs (b) and (c) of § 226.8 shall be made by
the seller if he extends or arranges for the extension of credit. Otherwise disclosures shall be made
as required under paragraphs (b) and (d) of § 226.8
and paragraph (b) of § 226.15.
(e) Multiple customers or lessees; disclosure
to one. In any transaction other than a credit
transaction which may be rescinded under the
provisions of § 226.9, if there is more than one
customer or lessee, the creditor or lessor need
furnish a statement of disclosures required by this
Part to only one of them other than an endorser,
comaker, guarantor, or a similar party.
(f) Unknown information estimate. If at the
time disclosures must be made, an amount or other
item of information required to be disclosed, or
needed to determine a required disclosure, is unknown or not available to the creditor or lessor
and the creditor or lessor has made a reasonable
effort to ascertain it, the creditor or lessor may
use an estimated amount or an approximation of
the information, provided the estimate or approximation is clearly identified as such, is reasonable,
is based on the best information available to the
creditor or lessor and is not used for the purpose
of circumventing or evading the disclosure requirements of this Part.
Notwithstanding the requirement of this paragraph that the estimate be based on the best information available, a lessor is not precluded in a
purchase option lease from understating the estimated value of the leased property at the end of
the term in computing the total lease obligation
as required in § 226.15(b)(15)(i).
4. By revising the footnote to paragraph 226.6
(g) to read as follows:
6
Such acts, occurrences, or agreements include the failure
of the customer or lessee to perform his obligations under the
contract and such actions by the creditor or lessor as may be
proper to protect his interests in such circumstances. Such
failure may result in the liability of the customer or lessee
to pay delinquency charges, collection costs, or expenses of
the creditor or lessor for perfection or acquisition of any
security interest or amounts advanced by the creditor or lessor
on behalf of the customer or lessee in connection with insurance, repairs to or preservation of collateral.
5. In paragraph 226.6 (i) by inserting the words
"or lessor" between the words "creditor" and
"for" in the first sentence and between the words
"creditor" and "shall" in the last sentence.
Section 226.10 is amended by redesignating the
introductory text of § 226.10(a) as § 226.10(a)(1),
§ 226.10(a)(1) as § 226.10(a)(l)(i) and §
226.10(a)(2) as § 226.10(a)(l)(ii), and by adding
new §§ 226.10(a)(2), 226.10(g) and 226.10(h).
Section 226.10 reads as follows:
Section 226.10—
Advertising Credit and Lease Terms
(a) General rule. ***
(2) No advertisement to aid, promote or assist
directly or indirectly any consumer lease may state
that a specific lease of any property at specific
amounts or terms is available unless the lessor
usually and customarily leases or will lease such
property at those amounts or terms.
(b) Catalogs and multi-page advertisements.
If a catalog or other multiple-page advertisement
sets forth or gives information in sufficient detail
to permit determination of the disclosures required
Law Department
by this section in a table or schedule of credit or
lease terms, such catalog or multiple-page advertisement shall be considered a single advertisement
provided:
(1) The table or schedule and the disclosures
made therein are set forth clearly and conspicuously; and
(2) Any statement of credit or lease terms appearing in any place other than in that table or
schedule of credit or lease terms clearly and conspicuously refers to the page or pages on which
that table or schedule appears, unless that statement discloses all of the credit or lease terms
required to be stated under this section. For the
purpose of this subparagraph, cash price is not a
credit term.
(g) Advertising of consumer leases. No advertisement to aid, promote or assist directly or
indirectly any consumer lease shall state the
amount of any payment, the number of required
payments, or that any or no downpayment or other
payment is required at consummation of the lease
unless the advertisement also states clearly and
conspicuously each of the following items of information as applicable:
(1) That the transaction advertised is a lease.
(2) The total amount of any payment such as
a security deposit or capitalized cost reduction
required at the consummation of the lease, or that
no such payments are required.
(3) The number, amounts, due dates or periods
of scheduled payments, and the total of such
payments under the lease.
(4) A statement of whether or not the lessee
has the option to purchase the lease property and
at what price and time. The method of determining
the price may be substituted for disclosure of the
price.
(5) A statement of the amount or method of
determining the amount of any liabilities the lease
imposes upon the lessee at the end of the term
and a statement that the lessee shall be liable for
the difference, if any, between the estimated value
of the lease property and its realized value at the
end of the lease term, if the lessee has such
liability.
(h) Multiple-item leases; merchandise tags. If
a merchandise tag for an item normally included
in a multipe-item lease sets forth information
which would require additional disclosures under
§ 226.10(g), such merchandise tag need not con-
947
tain such additional disclosures, provided it clearly
and conspicuously refers to a sign or display which
is prominently posted in the lessor's showroom.
Such sign or display shall contain a table or
schedule of those items of information to be disclosed under § 226.10(g).
Section 226.12 is amended to read as follows:
Section 226.12—Exemption
of Certain State Regulated Transactions
(a) Exemption for State regulated transactions. In accordance with the provisions of Supplements II, IV, V, and VI to Regulation Z, any
State may make application to the Board for exemption of any class of transactions within the
State from the requirements of Chapters 2, 4 or
5 of the Act and the corresponding provisions of
this Part, Provided that:
(1) The Board determines that under the law
of that State, that class of transactions is subject
to requirements substantially similar to those imposed under Chapter 2 or Chapter 4 of the Act,
or both, or under Chapter 5, and the corresponding
provisions of this Part; or in the case of Chapter
4, the consumer is afforded greater protection than
is afforded under Chapter 4 of the Act, or in the
case of Chapter 5, the lessee is afforded greater
protection and benefit than is afforded under
Chapter 5 of the Act, and
(2) There is adequate provision for enforcement.
(b) Procedures and criteria. The procedures
and criteria under which any State may apply for
the determination provided for in paragraph (a) of
this section are set forth in Supplement II to
Regulation Z with respect to disclosure and rescission requirements (sections 121-131 of Chapter
2), Supplement IV with respect to the prohibition
of the issuance of unsolicited credit cards and the
liability of the cardholder for unauthorized use of
a credit card (sections 132-133 of Chapter 2), in
Supplement V with respect to fair credit billing
requirements (sections 161-171 of Chapter 4) and
in Supplement VI with respect to consumer leasing
(sections 181-186 of Chapter 5).
A new section 226.15 is added to read as
follows:
Section 226.15—Consumer Leasing
(a) General requirements. Any lessor shall, in
948
Federal Reserve Bulletin • November 1976
accordance with § 226.6 and to the extent applicable, make the disclosures required by paragraph
(b) of this section with respect to any consumer
lease. Such disclosures shall be made prior to the
consummation of the lease on a dated written
statement which identifies the lessor and the lessee,
and a copy of such statement shall be given to
the lessee at that time. All of the disclosures shall
be made together on either
(1) The contract or other instrument evidencing
the lease on the same page and above the place
for the lessee's signature; or
(2) A separate statement which identifies the
lease transaction.
In any lease of multiple items, the description
required by § 226.15(b)(1) may be provided on
a separate statement or statements which are incorporated by reference in the disclosure statement
required by § 226.15(a).
(b) Specific disclosure requirements. In any
lease subject to this section the following items,
as applicable, shall be disclosed:
(1) A brief description of the leased property,
sufficient to identify the property to the lessee and
lessor.
(2) The total amount of any payment, such as
a refundable security deposit paid by cash, check
or similar means, advance payment, capitalized
cost reduction or any trade-in allowance, appropriately identified, to be paid by the lessee at
consummation of the lease.
(3) The number, amount and due dates or periods of payments scheduled under the lease and
the total amount of such periodic payments.
(4) The total amount paid or payable by the
lessee during the lease term for official fees, registration, certificate of title, license fees or taxes.
(5) The total amount of all other charges, individually itemized, payable by the lessee to the
lessor, which are not incuded in the periodic
payments. This total includes the amount of any
liabilities the lease imposes upon the lessee at the
end of the term, but excludes the potential difference between the estimated and realized values,
required to be disclosed under § 226.15(b)(15)(i).
(6) A brief identification of insurance in connection with the lease including (i) if provided or
paid for by the lessor, the types and amounts of
coverages and cost to the lessee, or (ii) if not
provided or paid for by the lessor, the types and
amounts of coverages required of the lessee.
(7) A statement identifying any express warranties or guarantees available to the lessee made by
the lessor or manufacturer with respect to the
leased property.
(8) An identification of the party responsible for
maintaining or servicing the leased property together with a brief description of the responsibility, and a statement of reasonable standards
for wear and use, if the lessor sets such standards.
(9) A description of any security interest, other
than a security deposit disclosed under §
226.15(b)(2), held or to be retained by the lessor
in connection with the lease and a clear identification of the property to which the security interest
relates.
(10) The amount or method of determining the
amount of any penalty or other charge for delinquency, default or late payments.
(11) A statement of whether or not the lessee
has the option to purchase the leased property and,
if at the end of the lease term, at what price, and,
if prior to the end of the lease term, at what time
and the price or method of determining the price.
(12) A statement of the conditions under which
the lessee or lessor may terminate the lease prior
to the end of the lease term and the amount or
method of determining the amount of any penalty
or other charge for early termination.
(13) A statement that the lessee shall be liable
for the difference between the estimated value of
the property and its realized value at early termination or the end of the lease term, if such liability
exists.
(14) Where the lessee's liability at early termination or at the end of the lease term is based
on the estimated value of the leased property, a
statement that the lessee may obtain at the end
of the lease term or at early termination, at the
lessee's expense, a professional appraisal of the
value which could be realized at sale of the leased
property by an independent third party agreed to
by the lessee and the lessor, which appraisal shall
be final and binding on the parties.
(15) Where the lessee's liability at the end of
the lease term is based upon the estimated value
of the leased property:
(i) The value of the property at consummation
of the lease, the itemized total lease obligation at
the end of the lease term, and the difference
between them.
(ii) That there is a rebuttable presumption that
the estimted value of the leased property at the
end of the lease term is unreasonable and not in
good faith to the extent that it exceeds the realized
value by more than three times the average pay-
Law Department
ment allocable to a monthly period, and that the
lessor cannot collect the amount of such excess
liability unless the lessor brings a successful action
in court in which the lessor pays the lessee's
attorney's fees, and that this provision regarding
the presumption and attorney's fees does not apply
to the extent the excess of estimated value over
realized value is due to unreasonable wear or use,
or excessive use.
(iii) A statement that the requirements of §
226-15(b)(15)(ii) do not preclude the right of a
willing lessee to make any mutually agreeable final
adjustment regarding such excess liability.
(c) Renegotiations or extensions. If any existing lease is renegotiated or extended, such renegotiation or extension shall be considered a new
lease subject to the disclosure requirements of this
Part, except that the requirements of this paragraph
shall not apply to (1) a lease of multiple items
where a new item(s) is provided or a previously
leased item(s) is returned, and the average payment allocable to a monthly period is not changed
by more than 25 per cent, or (2) a lease which
949
is extended for not more than six months on a
month-to-month basis or otherwise.
Credit by Banks for the Purpose
of Purchasing or Carrying Margin Stocks
Notice of additional postponement of effective
date of adoption of revised Federal Reserve Form
U-l, "Statement of Purpose of a Stock-Secured
Extension of Credit by a Bank."
Pursuant to the authority of Section 7 of the
Securities Exchange Act (15 U.S.C. 78g), the
Board of Governors, on August 21, 1976 (41 F.R.
35477), published notice of postponement of the
effective date of Federal Reserve Form U-l,
"Statement of Purpose of a Stock-Secured Extension of Credit by a Bank," until November 1,
1976. Because questions relating to operational
difficulties in complying with certain requirements
of revised Form U-l which were raised by some
banks require further review and consideration, the
Board hereby postpones the effective date of the
revision to January 1, 1977 in order to permit
sufficient time to address these questions.
BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS
Orders Under Section 3
of Bank Holding Company Act
Charter Clarendon Bancorporation, Inc.,
Northfield, Illinois
Order
Approving
Formation of Bank Holding
Company
Charter Clarendon Bancorporation, Inc.,
Northfield, Illinois has applied for the Board's
approval under § 3(a)(1) of the Bank Holding
Company Act (12 U.S.C. § 1842(a)(1)) of formation of a bank holding company through acquisition of 80 percent or more of the voting shares
of Bank of Clarendon Hills, Clarendon Hills,
Illinois ("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, a nonoperating corporation with no
subsidiaries, was organized for the purpose of
becoming a bank holding company through the
acquisition of Bank. Bank holds deposits of $31.4
million1 and is the 173rd largest bank in the
Chicago banking market,2 controlling approximately 0.08 per cent of the total deposits in commercial banks in the market. Upon acquisition of
Bank, Applicant would control approximately
0.05 per cent of the total commercial deposits in
the State of Illinois.
Principals of Applicant are also affiliated with
three other one-bank holding companies in the
Chicago market that control the Bank of Wheaton,
the Bank of Northfield, and the Bank of Winfield,
respectively. These three banks are, respectively
nine miles northwest, 24 miles north and 13 miles
northwest of Bank and there are several intervening alternative banking organizations between
Bank and each of them. The aggregate of Bank's
*A11 banking data are as of June 30, 1975.
The Chicago banking market is approximated by Cook
County, DuPage County, and portions of Lake County.
2
950
Federal Reserve Bulletin • November 1976
deposits and the deposits of these three banks
amounts to less than 0.5 per cent of the commercial bank deposits in the market. Accordingly,
consummation of the proposal would not appear
to eliminate any significant existing or potential
competition nor would it significantly increase the
concentration of banking resources in the market.
Therefore, competitive considerations are consistent with approval of the application.
The Board has previously stated that it would
apply multibank holding companies standards in
assessing the managerial and financial resources
of an applicant seeking to become a one-bank
holding company where the principals of the applicant are engaged in establishing a series or chain
of one-bank holding companies.3 The three other
one-bank holding companies and their respective
subsidiary banks with which Applicant's principals
are associated appear to be in satisfactory condition, which suggests that Applicant's principals
would conduct the operations of the proposed
holding company and of Bank in a satisfactory
manner. In addition, Applicant has committed to
inject $400,000 in new capital funds into Bank
within sixty to ninety days after consummation of
the proposal. Although Applicant will incur some
debt in connection with this proposal, it appears
that income from Bank will provide sufficient
revenue to service the debt adequately without
adversely affecting the financial condition of either
Applicant or Bank. Accordingly, considerations
relating to the financial and managerial resources
and future prospects of Applicant and Bank are
consistent with and lend some weight in favor of
approval.
Although consummation of the transaction
would have no immediate effect on area banking
needs, considerations relating to the convenience
and needs of the community to be served are
consistent with approval of the application. It is
the Board's judgment that consummation of the
proposed transaction would be consistent with the
public interest and that the application should be
approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
3
See the Board's Order of June 14, 1976 denying the
application of Nebraska Banco, Inc., Ord, Nebrasks (62 Fed.
Res. Bulletin 638 (1976)).
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Chicago pursuant to
delegated authority.
By order of the Board of Governors, effective
October 26, 1976.
Voting for this action: Chairman Burns and Governors Gardner, Wallich, Coldwell, Jackson, Partee, and
Lilly.
(Signed)
[SEAL]
GRIFFITH
Deputy Secretary
L.
GARWOOD,
of the Board.
Stepp, Inc.,
Mission Hills, Kansas
Order Approving Formation of Bank Holding
Company and Deferring Action on Retention of
A. F. Stepp Investments, Inc.
Stepp, Inc., Mission Hills, Kansas has applied
for the Board's approval under § 3(a)(1) of the
Bank Holding Company Act (12 U.S.C. §
1842(a)(1)) to become a bank holding company
through acquisition of 65 per cent of the voting
shares of Quindaro Bancshares, Inc., Kansas City,
Kansas ("Quindaro"), a one-bank holding company that owns 83.3 per cent of the shares of
Arrowhead State Bank of Kansas City, Kansas
City, Kansas ("Bank"). Quindaro is solely engaged in holding shares of Bank. Applicant has
also applied pursuant to § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)) for permission to retain
shares of A. F. Stepp Investments, Inc., a company engaged in government securities underwriting activities. Such activities have not heretofore
been determined by the Board by regulation to be
closely related to banking.
Notice of the applications, affording opportunity
for interested persons to submit comments and
vieews, has been given in accordance with § § 3
and 4 of the Act (41 Federal Register
14334).
The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the
factors set forth in § 3(c) of the Act and the
considerations specified in § 4(c)(8) of the Act.
Applicant is a corporation that presently controls
one subsidiary, A. F. Stepp Investments, Inc.,
Kansas City, Missouri ("Stepp Investments").
The purpose of the proposed transaction is to effect
a transfer of ownership of shares of Quindaro from
Applicant's sole shareholder to Applicant. Bank
has total deposits of approximately $12.8 million,
representing 0.3 per cent of total deposits in the
Law Department
Kansas City banking market,1 and is the 90th
largest banking organization in that market.2 Since
Applicant has no existing subsidiary banks and the
proposal represents merely a restructuring of the
existing ownership of Quindaro, consummation of
the proposed transaction would not have any adverse effects on existing or potential competition,
nor would it increase the concentration of banking
resources or have an adverse effect upon other
banks in the relevant market. Accordingly, the
Board concludes that competitive considertions are
consistent with approval of the application.
The financial and managerial resources and future prospects of Applicant, which are dependent
upon those same factors as they apply to Bank
and Stepp Investments, are regarded as generally
satisfactory and consistent with approval. Accordingly, considerations relating to the banking factors are regarded as consistent with approval of
the application. Although consummation of the
proposal would have no immediate effect on the
banking services offered by Bank, considerations
relating to the convenience and needs of the community to be served are consistent with approval
of the application. It is the Board's judgment that
consummation of the proposed transaction, to the
extent it relates to acquisition of shares of Quindaro, would be consistent with the public interest
and that the application to that extent should be
approved.
Applicant has also applied to the Board to retain
shares of Stepp Investments, a company that engages in underwriting and dealing in such obligations of the United States, obligations of various
States and of political subdivisions thereof and
other obligations that State member banks of the
Federal Reserve System may from time to time
be authorized to deal in under sections 24 (Paragraph Seventh) and 335 of Title 12 of the United
States Code. By notice of proposed rulemaking
published in the Federal Register on April 10,
1974, (39 F.R. 13007), the Board of Governors
proposed to add this activity to the list of activities
that it has determined to be "so closely related
to banking or managing or controlling banks as
to be a proper incident thereto" (§ 225.4(a) of
the Board's Regulation Y). The Board, on October
1
The Kansas City
son and Wyandotte
and Platte Counties,
Missouri.
2
All banking data
banking market is approximated by JohnCounties in Kansas, and Clay, Jackson,
and the northern half of Cass County in
are as of December 31, 1975.
951
20, 1976, announced its decision not to adopt the
proposed amendment at the present time and to
suspend temporarily further consideration of the
activity, either by order or by regulation. The
reasons for that decision are summarized in that
Statement.
Consistent with its decision to suspend action
on the general activity, the Board hereby defers
consideration of Applicant's application under
section 4(c)(8) of the Act, for a period of twelve
months, unless prior to that time actions of the
Municipal Securities Rulemaking Board lead the
Board in its judgment to reconsider the deferral
of action on the general activity.
Notwithstanding the decision to defer action on
the general activity, the application of Stepp, Inc.,
to become a bank holding company is approved
for the reasons summarized herein.3 The acquisition of shares of Quindaro shall not be made (a)
before the thirtieth calendar day following the
effective date of this Order; nor (b) later than three
months after the effective date of this Order unless
such period is extended for good cause by the
Board or by the Federal Reserve Bank of Kansas
City pursuant to delegated authority.
By order of the Board of Governors, effective
October 22, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Cold well, Jackson, Partee, and
Lilly. Absent and not voting: Chairman Burns.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
3
Under section 4(a)(2) of the Act, Applicant may, in any
event, retain shares of Stepp Investments for two years after
the date Applicant becomes a bank holding company. The
Board is authorized, upon application by Applicant, to extend
the two-year period from time to time for not more than one
year at a time if, in the Board's judgment, such an extension
would not be detrimental to the public interest. Such extensions
may not in the aggregate exceed three years.
Union Holding Company,
Halliday, North Dakota
Order Denying Formation
of Bank Holding Company
Union Holding Company, Halliday, North Dakota, has applied for the Board's approval under
§ 3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) of formation of a bank
holding company through acquistion of 80 per cent
(or more) of the voting shares of The Union Bank,
Halliday, North Dakota ("Bank").
952
Federal Reserve Bulletin • November 1976
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant is a nonoperating corporation organized for the purpose of becoming a bank holding
company through the acquisition of Bank. Upon
acquisition of Bank, Applicant would hold . 13 per
cent of the total deposits in commercial banks in
North Dakota. Bank, with deposits of approximately 3.9 million,1 is the smaller of two banking
organizations in the relevant banking market2 and
hold 42 per cent of market deposits. Inasmuch as
this proposal represents essentially a reorganization of existing ownership interests whereby the
principals of Bank will shift the ownership of Bank
to a corporation owned by them, the acquisition
of Bank by Applicant would have no significant
adverse effects upon either existing or potential
competition within the relevant market.
The Board has indicated on previous occasions
that it believes that a holding company should
constitute a source of financial and managerial
strength to its subsidiary bank(s), and that the
Board will closely examine the condition of an
applicant in each case with this consideration in
mind. The principals of Applicant acquired control
of Bank in 1969 and the record indicates that the
overall condition of Bank has declined somewhat
under their management since that time. In view
of the history of Bank's operations under the
management of Applicant's principals and inasmuch as no management changes are contemplated
by Applicant in connection with this proposal, the
Board is unable to conclude that managerial considerations are consistent with approval.
With respect to financial considerations, the
Board notes that Applicant would incur a sizable
debt in connection with the proposed acquisition.
Applicant proposes to service this debt over a
12-year period through dividends declared by
bank, as well as cash payments made by Bank
and retained by Applicant to the extent that they
represent savings from filing consolidated tax re-
turns. Based upon the Board's analysis of Bank's
operating history, Applicant's financial projections
appear to be overly optimistic, and in the Board's
view Applicant's debt servicing requirements
would result in a further deterioration of Bank's
present capital position and would tend to limit
Applicant's ability to act as a source of financial
strength to Bank in the future. In concluding that
Applicant's debt servicing requirement would
constitute an undue strain on Bank, the Board has
not disregarded certain commitments made by
Applicant's principals to contribute to Bank the
commission income earned from credit life and
credit health and accident insurance during the
debt amortization period by their individually-owned insurance agency. While these contributions would provide some assistance, it is the
Board's view that they would not significantly
lighten the proposed debt burden of Applicant.
Accordingly, on the basis of its analysis of the
facts of record, the Board finds that considerations
relating to financial and managerial resources and
future prospects weigh against approval of the
application.
Although Applicant indicates that some minor
improvements in Bank's services will result from
the proposed transaction, the Board does not view
such considerations as lending any significant
weight toward approval of the application, and in
any event they do not outweigh the adverse financial and managerial considerations that the Board
finds present in the proposal.
On the basis of the circumstances concerning
this application, the Board concludes that the
banking considerations involved in this proposal
present adverse factors bearing upon the managerial and financial resources and future prospects
of both Applicant and Bank. Such adverse factors
are not outweighed by any procompetitive effects
or by benefits that would result in better serving
the convenience and needs of the community.
Accordingly, it is the Board's judgment that the
application should be denied.
On the basis of the facts of record, the application is denied for the reasons summarized above.
By order of the Board of Governors, effective
October 20, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Jackson, Partee, and
Lilly. Absent and not voting: Chairman Burns.
1
A11 banking data are as of December 31, 1975.
The relevant banking market is approximated by Dunn
County.
2
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
Law Department
Utica Agency, Inc.,
Utica, Kansas
Order Approving
Formation of Bank Holding
Company and Retention of Credit-Related
Insurance Activities
Utica Agency, Inc., Utica, Kansas ("Applicant") 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)), to become a bank holding company through the acquisition of 80 per cent
or more of the voting shares of The Citizens State
Bank of Utica, Utica, Kansas ("Bank"). The
factors that are considered in acting on this application are set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)). Applicant has also applied, pursuant to Section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of Regulation
Y, for permission to retain its credit-related insurance agency activities which are presently conducted through Horn Insurance Agency upon the
premises of Bank. Such activities have been determined by the Board to be closely related to
banking (12 C.F.R. § 225.4(a)(9)(ii)(a)).
Notice of the applications, affording an opportunity for interested persons to submit comments
and views, has been given in accordance with
sections 3 and 4 of the Act (41 Federal
Register
24429). The time for filing comments and views
has expired, and the applications and all comments
received have been considered in light of the
factors set forth in section 3(c) of the Act (12
U.S.C. § 1842(c)), and the considerations specified in section 4(c)(8) of the Act (12 U.S.C. §
1843(c)(8)).
Applicant is a corporation recently formed for
the purposes of becoming a bank holding company
through the acquisition of Bank and of conducting
credit-related insurance activities. Upon acquisition of Bank (deposits of $2.8 million), Applicant
would control the 559th largest bank in Kansas,
holding approximately .03 of one per cent of total
deposits in commercial banks in the State.1 Bank
is the smallest of four banks operating in the
relevant banking market, which is approximated
by Ness County, and controls approximately 10.0
per cent of total market deposits. Inasmuch as the
purpose of the transaction is to facilitate the
transfer of the ownership interests of Bank from
individuals to a corporation owned by the same
X
A11 banking data are as of December 31, 1975.
953
individuals, and Applicant has no banking subsidiaries, consummation of the proposal would eliminate neither existing nor potential competition,
nor would it increase the concentration of banking
resources or have an adverse effect on other banks
in the relevant market. Two principals of Applicant also have ownership interests in Consolidated
Insurance, Inc., a one-bank holding company in
Hill City, Kansas. The subsidiary bank of this
holding company does not compete with Bank
because it is located in a separate banking market,
sixty-five miles from Bank. Accordingly, competitive considerations are consistent with approval
of the application.
The financial and managerial resources and future prospects of Applicant, which are largely
dependent upon those of Bank, are considered
generally satisfactory and consistent with approval. The debt to be incurred by Applicant
appears to be serviceable from the income to be
derived from its insurance operations and from
Bank without having an adverse effect on the
financial condition of either Applicant or Bank.
Therefore, considerations relating to banking factors are regarded as being consistent with approval.
Although consummation of the transaction
would effect no changes in the banking services
offered by Bank, considerations relating to the
convenience and needs of the community to be
served are consistent with approval. It has been
determined that consummation of the proposal to
form a bank holding company would be consistent
with the public interest and the application should
be approved.
In connection with the application to become
a bank holding company, Applicant also proposes
to retain the credit-related insurance agency business that operates on Bank's premises. Prior to
Applicant's purchase of the agency, it was
operated as a sole proprietorship by one of Bank's
officers. Applicant's retention of the business
would result in the continued provision of a convenient source of insurance services to residents
of the Utica area, which factor is in the public
interest. There is no evidence in the record indicating that retention of the insurance agency business would result in any undue concentration of
resources, unfair competition, conflicts of interest,
unsound banking practices, or other adverse effects on the public interest.
Based on the foregoing and other considerations
reflected in the record, it has been determined that
954
Federal Reserve Bulletin • November 1976
the considerations affecting the competitive factors
under section 3(c) of the Act and the balance of
the public interest factors set forth in section
4(c)(8) both favor approval of Applicant's proposals.
Accordingly, the applications are approved for
the reasons summarized above. The acquisition of
Bank 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
of this Order, unless such period is extended for
good cause by the Board, or by the Federal Reserve Bank of Kansas City pursuant to delegated
authority. The determination as to Applicant's
insurance activities is subject to the conditions set
forth in section 225.4 of Regulation Y and to the
authority of the Board of Governors to require
reports by, and make examinations of, holding
companies and their subsidiaries and to require
such modifications or termination of the activities
of a bank holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Secretary of the Board, acting
pursuant to delegated authority from the Board of
Governors, effective October 21, 1976.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
Bank Land Company,
Denver, Colorado
Order Approving Acquisition and
Retention of Stock Interests in Bank
Bank Land Company, Denver, Colorado ("Applicant"), a bank holding company within the
meaning of the Bank Holding Company Act
("Act"), has applied for the Board's approval
under § 3(a)(3) of the Act (12 U.S.C. §
1842(a)(3)) to acquire an additional 16.9 per cent
of the outstanding voting shares of Southwest State
Bank, Denver, Colorado ("Bank"), and to retain
8 per cent of the outstanding voting shares of
Bank.
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
applications and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
In June of 1972, Applicant, a one-bank holding
company by virtue of its ownership of 31 per cent
of the outstanding voting shares of Bank, acquired
an additional 8 per cent of Bank's shares without
the Board's prior approval.1 Applicant now seeks
the Board's approval to retain these shares and
to acquire an additional 16.9 per cent of Bank's
stock. Bank ($28.4 million in deposits) is the 28th
largest banking organization in Colorado, controlling 0.38 per cent of the total deposits in commercial banks in the State.2
Bank ranks 16th in the Denver banking market
(which is approximated by Adams, Arapahoe,
Denver and Jefferson Counties and the city of
Broomfield) and holds 0.74 per cent of market
deposits.3 As Applicant has no other banking subsidiaries, and the proposal involves only the retention and acquisition of additional stock interests
in Bank, which, at all times pertinent hereto, was
controlled by Applicant, approval of the application will not result in any adverse competitive
effects. It will eliminate neither existing nor potential competition, nor increase the concentration
of banking resources in any relevant area. Thus,
competitive considerations are consistent with approval of the application.
The financial and managerial resources and future prospects of Applicant and Bank are satisfactory and it appears that Applicant will be able
to service the debt associated with this application
while adequately maintaining Bank's capital position. Thus, banking factors are consistent with
approval.
There is no indication that the convenience and
needs of the community to be served are not
currently being met. Although there will be no
*It appears from the facts of record that the acquisition of
the shares of State Bank was based on a misunderstanding
of the applicable statutes and regulations relating to the acquisition of the voting stock of banks by bank holding companies.
Applicant took prompt action to comply with the Act by
applying for Board approval upon being advised that its actions
constituted a violation of the Act. In accord with the Board's
position with respect to violations of the Act, the Board has
scrutinized the underlying facts surrounding the acquisition of
the shares of State Bank. Upon examination of all the facts
of record, the board is of the view that the facts surrounding
the violation are not such as would call for denial of the
application.
2
3
As of December 31, 1975.
As of March 31, 1976.
Law Department
immediate increase in the services offered by
Bank, convenience and needs considerations are
consistent with approval. Therefore, it is the
Board's judgment that the retention and acquisition
of the shares of Bank would be in the public
interest and that the applications should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above. Acquisition of the shares of Bank shall not be made
(a) before the thirtieth calendar day following the
effective date of this Order or (b) later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board, or by the Federal Reserve Bank of Kansas
City pursuant to authority hereby delegated.
By order of the Board of Governors, effective
November 1, 1976.
Voting for this action: Chairman Burns and Governors Gardner, Wallich, Coldwell, Jackson, Partee, and
Lilly.
(Signed)
[SEAL]
RICHARD
Assistant
D.
Secretary
ABRAHAMSON,
of the
Board.
Bren-Mar Properties, Inc.
Columbia, Missouri
Order Approving
Acquisition
of Bank
Bren-Mar Properties, Inc., Columbia, Missouri
("Applicant"), a bank holding company within
the meaning of the Bank Holding Company Act,
has applied for the Board's approval under §
3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
retain1 an additional 1.5 percent, and to acquire
an additional 48.5 percent, of the voting shares
of First State Bank, Tishomingo, Oklahoma
("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
1
On August 20, 1973, Applicant acquired 24 shares (2.4
percent) of Bank without prior Board approval. Applicant
subsequently sold 10 of these shares on January 30, 1974.
Applicant continues to retain the other 14 shares. On February
4, 1976, Applicant again acquired 1 additional share, without
prior Board approval, which it also presently retains. In accordance with the Board's position with respect to violations
of the Act, the Board has scrutinized the underlying facts
surrounding the acquisitions of Bank's shares without prior
Board approval. Upon an examination of all the facts of record,
including commitments made by Applicant that will guard
against violations of section 3 of the Act in the future, the
Board does not believe that the circumstances surrounding the
violations reflect so adversely on the managerial factors as to
constitute grounds for denial of this application.
955
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, a one-bank holding company, presently owns 31.6 per cent of the shares of Bank.2
Bank, with total deposits of approximately $10.3
million,3 controls approximately 0.1 of one per
cent of the total deposits in commercial banks in
Oklahoma and is the only bank in the relevant
banking market, which is approximated by the
boundaries of Johnston County in south-central
Oklahoma. Applicant proposes to acquire 485
shares, or 48.5 percent of the shares, of Bank from
the family that controls Applicant and Bank and
also requests permission to retain 15 shares of
Bank that were acquired withour prior approval
of the Board. Because the Applicant's proposal
involves the acquisition and retention of shares of
a bank that it already controls, consummation of
the proposal would eliminate no existing or potential competition, nor would it increase the concentration of banking resources. Thus, competitive
considerations are consistent with approval of the
application.
The financial condition, managerial resources,
and future prospects of Applicant and Bank are
regarded as generally satisfactory and consistent
with approval of the application. Although there
will be no immediate change in the services or
facilities of Bank as a result of consummation of
the proposal, considerations relating to the convenience and needs of the community to be served
are consistent with approval of the application.
Therefore, it is the Board's judgment that the
proposal is consistent with the public interest and
that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction involving the acquisition of additional
shares shall not be made (a) before the thirtieth
calendar day following the effective date of this
2
Applicant, a family-owned company, is a "company covered in 1970," as defined in § 2(b) of the Act and engages
in the following activities under the exemption in § 4(c)(ii)
of the Act: (a) the rental of a commercial building in Hobbs,
New Mexcio, currently leased to the U.S. Postal Service, and
(b) the rental of a one-unit apartment in New York City.
Applicant also owns 20 shares (2 percent) of the Bank of
Mountain View, Mountain View, Missouri, located approximately 330 air miles from Bank.
3
All banking data are as of June 30, 1975.
956
Federal Reserve Bulletin • November 1976
Order nor (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Dallas pursuant to
delegated authority.
By order of the Board of Governors, effective
October 5, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Coldwell, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Wallich.
(Signed)
GRIFFITH
Assistant
Secretary
[[SEAL]
L.
GARWOOD,
of the
Board.
Colonial Bancorp, Inc.,
Waterbury, Connecticut
Order Approving
Acquisition
of Banks
Colonial Bancorp, Inc., Waterbury, Connecticut, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval under § 3(a)(3) of the
Act (12 U.S.C. 1842(a)(3)) to acquire all of the
voting shares of The Plainville Trust Company,
Plainville, Connecticut ("Plainville Bank"), and
the successor by merger to Constitution Bank and
Trust Company, Hartford, Connecticut ("Constitution Bank"). The bank into which Constitution
Bank is to be merged has no significance except
as a means to facilitate the acquisition of the voting
shares of Constitution Bank. Accordingly, the
proposed acquisition of shares of the successor
organization is treated herein as the proposed acquisition of the shares of Constitution Bank.
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
applications and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Applicant, the fourth largest banking organization in Connecticut, controls two banks with
aggregate deposits of approximately $547 million,
representing 7.4 per cent of the total deposits in
commercial banks in the State.1 Acquisition of
Plainville Bank (deposits of approximately $30.4
1
Unless otherwise indicated, all banking data are as of
December 31, 1975, and reflect bank holding company formations and acquisitions approved as of September 30, 1976.
million) and Constitution Bank (deposits of approximately $31.4 million) would increase Applicant's share of State deposits by 0.8 per cent and
would not result in a significant increase in the
concentration of banking resources in Connecticut.
Constitution Bank and Plainville Bank are both
located in the Hartford banking market which is
the relevant banking market for purposes of analyzing the competitive effects of these proposals.2
The Hartford banking market is highly concentrated since the two largest banking organizations,
Hartford National Corporation and CBT Corporation, control 76.8 per cent of total commercial
bank deposits and operate 66 offices in the market.3
The third largest banking organization in the market, First Connecticut Bancorp, controls 8.3 per
cent of market deposits and operates 26 offices
in the market. Plainville Bank and Constitution
Bank, even though they are, respectively, the sixth
and seventh largest of 23 banks located in the
relevant market, hold respectively only 1.2 and
1.1 per cent of commercial bank deposits, and
each operates six offices in the market. Applicant
is not represented in the market; however, upon
consummation it would become the fifth largest
banking organization with approximately 2.3 per
cent of market deposits and 12 banking offices.
Applicant would not thereby control an undue
percentage of commercial bank deposits in the
Hartford market, nor would consummation of the
transaction result in a significant increase in the
concentration of firms in the market.
Although Applicant does not operate any offices
in the relevant market, an office of one of Applicant's subsidiary banks is located 8.5 miles from
Plainville Bank and derives some of its deposits
from the Hartford banking market. The amount
of such deposits, however, is not viewed as significant. Applicant's banking office closest to
Constitution Bank is 18 miles south in a separate
banking market. Thus, it appears on the basis of
the distances between Banks and Applicant's
banking subsidiaries and other facts of record, that
consummation of the proposals would not result
in the elimination of a significant amount of existing competition between Applicant and Banks.
With respect to potential competition between
Applicant and Banks, the Board notes that the law
2
The Hartford banking market is approximated by the Hartford, New Britain, and Bristol SMSA's plus the towns of
Somers, Ashford, Lebanon, and Barkhamsted.
3
A11 market data are as of June 30, 1975.
Law Department
of the State of Connecticut contains a home office
protection provision which generally prohibits
branching into towns where the home office of
another commercial bank is located. Applicant's
banking subsidiaries are thus precluded from
branching into either Hartford or Plainville; similarly, Constitution and Plainville Banks are precluded from branching into either Waterbury or
New Haven, the cities where Applicant's two bank
subsidiaries are headquartered. "Open" towns are
available in the Waterbury and New Haven banking markets but because of the size, resources and
unaggressive branching history of Constitution and
Plainville Banks, they do not appear to be likely
entrants into Applicant's markets. Although the
establishment of a de novo bank in the Hartford
banking market by Applicant is possible, it is
doubtful whether Applicant, by establishing a new
bank, could become an effective competitor with
the market's two largest banking organizations
within a reasonable period of time. Accordingly,
on the basis of the above and other facts of record,
the Board concludes that consummation of the
proposed transaction would not have a significantly adverse effect on any existing or potential
competition between Applicant's subsidiary banks
and the banks to be acquired.
To the extent that Constitution Bank and Plainville Bank operate in the same banking market,
some existing competition would be eliminated.
The principal area in which Constitution Bank and
Plainville Bank compete is in the town of Farmington. However, deposits in commercial banks
in Farmington account for only 0.68 per cent of
the total commercial bank deposits in the Hartford
banking market. Although both banks operate offices in Farmington, competition between them has
been limited by the historical growth and traffic
patterns of the town. Furthermore, the ability of
Constitution Bank's branch to compete has been
severely hampered by the bankruptcy of the developer of the complex in which it is located. The
effect of the elimination of some existing competition in Farmington is mitigated, to a degree, by
the fact that the two banking organizations that
are dominant in the market also have offices in
Farmington, and their combined deposits will approximate Applicant's. It appears unlikely that any
significant additional competition will develop in
the future between Constitution Bank and Plainville Bank in light of Connecticut's home office
protection law and the limited resources of Banks.
The total deposits in each Bank have remained
957
essentially unchanged at approximately $30 million for the past several years. This appears to
be due, in part, to the unaggressive branching
policies of each Bank. In light of their past histories, it is reasonable to conclude that if Banks
remained independent they would not become significant competitors. Furthermore, after consummation of the proposal, there would still remain
other entry vehicles attractive for acquisition by
banking organizations not presently operating in
the Hartford market. The Board views these proposals as an appropriate means whereby Applicant
would be able to compete more effectively with
the two largest organizations operating in the market. Furthermore, on the basis of the foregoing
and all the facts of record, it is the Board's
judgment that consummation of the proposed
transactions would not eliminate a significant
amount of existing or potential competition.
The financial and managerial resources and future prospects of Applicant, its subsidiaries, and
Banks are regarded as satisfactory and consistent
with approval of the applications. Following
affiliation, Constitution Bank will begin calculating interest on deposits on a daily rather than
quarterly basis and will offer trust services to its
customers. Plainville Bank will expand its commercial and industrial banking services. In addition, both Banks will offer a full range of real
estate lending services and international banking
services. By their ability to offer expanded services
to businesses and individuals in the Hartford market, Constitution Bank and Plainville Bank should
be able to compete more effectively with the two
largest banking organizations in the market.
Therefore, convenience and needs considerations
associated with the proposals lend weight in favor
of approval of the subject applications. Accordingly, it is the Board's judgment that consummation of the proposed transactions would be in the
public interest and that the applications should be
approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
transactions shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Boston pursuant to delegated authority.
By order of the Board of Governors, effective
October 22, 1976.
958
Federal Reserve Bulletin • November 1976
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Cold well, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Jackson.
[SEAL]
(Signed)
GRIFFITH L .
Assistant
Secretary
GARWOOD,
of the
Board.
First Bancshares of Florida, Inc.,
Boca Raton, Florida
Order Amending Requirement for Injection of
Additional Capital into one of Applicant's
Subsidiary Banks in Connection with Acquisition of
Shares of Vero Beach National Bank,
Vero
Beach, Florida
By Order of December 19, 1975, the Board
approved an application of First Bancshares of
Florida, Inc. ("Applicant") to acquire shares of
Vero Beach National Bank, Vero Beach, Florida
("Vero Beach Bank"). The Board's Order was
conditioned upon Applicant injecting $500,000
additional equity capital into one of Applicant's
other subsidiary banks, Sunrise American National
Bank of Fort Lauderdale, Fort Lauderdale, Florida
("Sunrise Bank"), within 120 days from the effective date of the Board's Order. Subsequently,
Applicant was granted extensions of time until
October 19, 1976 within which to inject the additional capital into Sunrise Bank, and until December 19, 1976 within which to acquire shares
of Vero Beach Bank.
By letter dated August 2, 1976, Applicant advised that it intended to merge its three existing
banking subsidiaries located in Broward County,
Florida, subject to the approval of the Comptroller
of the Currency. Under this plan, Sunrise Bank
and Southport American National Bank, Fort
Lauderdale, Florida would become full service
branches of the American National Bank and Trust
Company of Fort Lauderdale, Fort Lauderdale,
Florida. Applicant asserted that the newly-merged
bank would have adequate capital ratios, thereby
obviating the necessity for the $500,000 capital
injection. In view of the capital improvement to
Sunrise Bank that would result from the proposed
merger, Applicant requested the Board to withdraw its condition that acquisition of Vero Beach
Bank be subject to injecting capital into Sunrise
Bank.
The Board has carefully considered Applicant's
request to withdraw the aforementioned condition.
Based upon all facts of record, the Board believes
that consummation of the proposed merger of
Applicant's three subsidiary banks in Broward
County would satisfactorily resolve the capital
needs of Sunrise Bank. However, the Board remains concerned that these capital needs be resolved as soon as possible. Therefore, the Board
has decided to extend the time for Applicant to
effect a final resolution of the capital needs of
Sunrise Bank until March 31, 1977, with the firm
understanding that Applicant shall file with the
Comptroller of the Currency an appropriate application under the Bank Merger Act (12 U.S.C.
1828(c)) within 30 days from the effective date
of this Amended Order. It should be emphasized
again that the Board expects Applicant to effect
a final resolution of the capital needs of Sunrise
Bank by March 31, 1977, at the very latest, either
as a result of the above merger or, if that proposal
is denied by the Comptroller of the Currency,
through an equity capital injection of $500,000
directly into Sunrise Bank on or before March 31,
1977. Further, it should be noted that the Board
does not contemplate granting any further extensions of time, beyond March 31, 1977, within
which to provide capital support to Sunrise Bank.
Accordingly, the Board's Order of December 19,
1975, is hereby amended for the reasons summarized above.
By order of the Board of Governors, effective
October 15, 1976.
V o t i n g f o r this a c t i o n : V i c e C h a i r m a n G a r d n e r a n d
Governors Coldwell, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Wallich.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
First City Bancorporation of Texas, Inc.,
Houston, Texas
Order Approving
Acquisition
of Bank
First City Bancorporation of Texas, Inc., Houston, Texas, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval under § 3(a)(3)
of the Act (12 U.S.C. § 1843(a)(3)) to acquire
all of the voting shares (less directors' qualifying
shares) of First City Bank—Northeast, N.A.,
Houston, Texas ("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
Law Department
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, the second largest banking organization in Texas, controls 25 banks with aggregate
deposits of $3.4 billion, representing approximately 7.3 percent of the total deposits held by
commercial banks in Texas.1 In addition to its 25
subsidiary banks, Applicant also controls interests
of less than 25 percent in each of 6 other banks.
Acquisition of Bank ($17.4 million in deposits)
would increase Applicant's share of Statewide
deposits by only 0.04 percent and thereby have
no significant effect upon the concentration of
banking resources in Texas.
Bank is located in a northeast suburb of Houston
and ranks 76th out of the 169 banks competing
in the Houston banking market,2 controlling 0.2
percent of market deposits. Bank is the recentlychartered national bank successor by reorganization to Northeast Bank of Houston, Houston,
Texas, which was declared insolvent by the Texas
Banking Commissioner on June 3, 1976 and ordered closed. Applicant operates 12 banking subsidiaries in the Houston banking market and controls 21.2 per cent of deposits therein. Applicant's
closest subsidiary to Bank, located in Houston's
central business district, is approximately 10 miles
southwest of Bank. Acquisition of Bank by Applicant would contribute to an increase in Applicant's deposit share in the market. However, after
consummation of the proposed transaction the four
largest banking organizations would control 56.5
percent of market deposits. Existing competition
between Applicant and Bank is significantly minimized in view of the competitive strength of Bank,
the distances separating Bank from Applicant's
other subsidiary banks, and the number of intervening independent banking alternatives. Approval of this application would also appear not
to have significant adverse effects upon potential
competition since the anticipated increase in Applicant's share of market deposits would be mini-
X
A11 banking data are as of December 31, 1975, and reflect
bank holding company formations and acquisitions approved
as of September 30, 1976.
2
The Houston banking market is the relevant banking market
and is approximated by the Houston RMA, which is comprised
of Harris County and portions of five adjacent counties in
Texas.
959
mal, the banking market would remain attractive
to de dovo entry, and numerous small and medium
sized banks would continue to be available as entry
vehicles. Accordingly, on the basis of the above
and other facts of record, the Board concludes that
consummation of the proposal would have only
slightly adverse competitive effects.
The financial and managerial resources and future prospects of Applicant and its subsidiaries are
regarded as generally satisfactory and consistent
with approval.3 The financial and managerial resources and future prospects of Bank, in the light
of the previously failed condition of the predecessor to Bank and the events surrounding the chartering of Bank, are now regarded as generally
satisfactory. Affiliation with Applicant should enable Bank to insure continuity of banking services
to the public. Accordingly, the Board regards
banking factors as lending weight toward approval
of the application. Moreover, affiliation with Applicant would enable Bank to utilize Applicant's
financial and managerial resources to strengthen
and expand the services provided by Bank. Applicant will also offer to Bank such specialized services as management and personnel training, loan
servicing and appraisal and investment advice.
Thus, considerations relating to the convenience
and needs of the community to be served lend
weight toward approval of the application and in
the Board's view, are sufficient to outweigh any
slight adverse competitive effects that might result
from consummation of the proposal. It is the
Board's judgment that consummation of the proposed acquisition would be in the public interest
and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Dallas pursuant to
delegated authority.
3
On September 15, 1976, the Board approved Applicant's
acquisition of Red Bird National Bank, Dallas, Texas, a
proposed new bank. In connections therewith, Applicant submitted a plan to insure completion, by March 31, 1977, of
certain commitments to either divest itself of certain minority
interests in various banks or to acquire complete ownership
of these banks within a designated period of time. The Board
relies in part on these undertakings in concluding that considerations relating to the managerial factors are consistent with
approval of the instant application.
960
Federal Reserve Bulletin • November 1976
By order of the Board of Governors, effective
October 13, 1976.
Voting for this action: Vice Chairman Gardner, and
Governors Coldwell, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Govenor Wallich.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
LITCO Corporation of New York,
Garden City, New York
Order Approving
Acquistion
of Bank
LITCO Corporation of New York, Garden City,
New York, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval under § 3(a)(3)
of the Act (12 U.S.C. § 1842(a)(3)) to acquire
100 percent of the voting shares of Long Island
Bank ("Bank"), Hicksville, New York, the successor by conversion of Long Island National
Bank.1
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received, including
those of the United States Department of Justice
("Department of Justice"), in light of the factors
set forth in § 3(c) of the Act (12 U.S.C. §
1842(c)).
Applicant, the twenty-fourth largest banking
organization in the State of New York, controls
one bank, Long Island Trust Company ("LIT"),
Garden City, New York, with total deposits of
$504.3 million, representing approximately .37
per cent of total deposits in commercial banks in
the State.2 Acquisition of Bank (deposits of $115.2
million) would increase Applicant's share of commercial bank deposits in the State of New York
by .08 percent and, as such, would not have an
appreciable effect upon the concentration of banking resources in the State.
Both LIT and Bank are located in the Metro1
Consummation of the subject proposal was contingent upon
the prior conversion of Long Island National Bank to a New
York State chartered bank. On September 3, 1976, the Superintendent of Banks of the State of New York approved the
conversion and the conversion has now been completed.
2
All banking data, unless otherwise indicated, are as of
December 31, 1975.
politan New York banking market.3 LIT is the
largest of the commercial banks headquartered in
Nassau or Suffolk Counties, and is the sixteenth
largest of the 122 banking organizations in the
relevant market.4 Bank is the forty-second largest
banking organization in the market, controlling .1
percent of deposits in the market. Since December
31, 1973, its total deposits have decreased from
approximately $133 million to approximately $110
million in March of this year, which is lower than
the amount of total deposits it held as of December
31, 1971. This decline appears to be attributable
to a conservative competitive reaction to aggressive competition from New York City-based
banking organizations. Applicant's acquisition of
Bank would result in its controlling approximately
.5 percent of market deposits and would cause it
to rank as the fifteenth largest banking organization
in the market.
The proposed acquisition would reduce existing
competition within the market, inasmuch as the
service area of Bank falls entirely within the service area of LIT. Also, there is a possibility that
the acquisition could result in a loss of increased
future competition between LIT and Bank to the
extent each, if a separate institution, might open
additional branches in other areas of Nassau and
Suffolk Counties.
Department of Justice has expressed the opinion
that the proposed acquisition would eliminate existing competition between LIT and Bank to a
significant degree. However, Department of Justice's analysis appears to be based upon its utilization of a smaller-than-appropriate market area,
that is, the Nassau-Suffolk SMS A, within which
to assess the competitive effects of this proposal.
In connection with its reconsideration of the application of LIT to merge with the Bank of Westbury
Trust Company, Westbury, New York5 the Board
directed the Federal Reserve Bank of New York
to conduct a comprehensive survey in order to
assist it in properly determining the relevant banking market. Based upon that survey,6 the Board
3
The Metropolitan New York banking market, which is the
relevant market within which to assess the competitive effects
of the proposed acquisition, consists of the five boroughs of
New York City plus Nassau, Westchester, Putnam, and Rockland Counties and western Suffolk County in New York State,
as well as the northern two-thirds of Bergen County and eastern
Hudson County in N e w Jersey, plus southwestern Fairfield
County in Connecticut.
4
Market deposit data are as of June 30, 1975, adjusted for
structural changes through July 6, 1976.
5
Both banks were headquartered in Nassau County.
Law Department
determined that the Metropolitan New York area
was the appropriate market in which the competitive consequences of that proposal should be determined.7
Banks located outside the Nassau-Suffolk
SMSA have a substantial impact on competition
within that area, and constitute a convenient alternative source of banking services for customers,
large and small, within the area. While immediate
and direct competition between LIT and Bank
occurs in Nassau and Suffolk Counties, use of only
this area in measuring the total present and potential competitive consequences of the instant acquisition would ignore major market forces that bear
on the question of the significance of the elimination of such competition. New York City banks
are permitted to branch throughout the New York
portion of the Metropolitan New York area, and
Nassau County banks, such as LIT and Bank, may
also branch into New York City. In major respects,
Nassau County banks are significantly influenced
in their service rates and terms by those set by
the New York City banks. A large proportion of
the working population of Nassau County commutes daily to New York City. These commuters
tend to utilize banking services convenient to their
places of business; even non-commuters tend to
use to some extent either banks outside the County
or banks within that have offices in New York
City. It is the Board's view that the Metropolitan
New York area is the appropriate banking market
within which the competitive effects of this proposal should be determined.
Although Applicant's acquisition of Bank would
eliminate some existing competition and would
eliminate the possibility of future competition between LIT and Bank, the elimination of such
competition is not regarded as significant in the
context of the banking structure in the relevant
6
The manner in which the survey was conducted and the
results thereof are discussed in the Board's Statement accompanying the Board's Order on Petition for Reconsideration in
the matter of the application of Long Island Trust Company
for approval of merger with Bank of Westbury Trust Company,
Westbury, New York, 56 Federal Reserve BULLETIN 769
(1970).
7
Although at that time the Metropolitan New York banking
market consisted only of the five boroughs of New York City
plus Nassau and Westchester Counties, that banking market
has grown since 1970 to encompass also Putnam, Rockland
and western Suffolk Counties in N e w York State, and portions
of both New Jersey and Connecticut. In 1970 and today Nassau
County was and is deemed to be part of the Metropolitan New
York banking market.
961
market. Applicant's acquisition of Bank would
remove home-office protection from the community of Hicksville, currently provided by the provisions of section 105 of the Banking Law of the
State of New York, and thus would open that
community to de novo branching. The Metropolitan New York banking market is not highly
concentrated and considering the large number of
banking alternatives available to the residents and
businesses in the Nassau County area, the loss of
one alternative through this acquisition is not
viewed as a significantly adverse competitive consequence. Accordingly, for the reasons summarized above the Board concludes that consummation of the proposed acquisition would not have
significant anticompetitive effects.
The financial and managerial resources and future prospects of Applicant, its subsidiaries, and
Bank are regarded as generally satisfactory and
consistent with approval. Applicant's acquisition
of Bank will have the procompetitive effect of
providing new services to Bank's customers, including day-of-deposit-to-day-of-withdrawal savings accounts, overdraft checking, one-statement
banking, individual retirement accounts, and business savings accounts. The Board concludes,
therefore, that considerations relating to the convenience and needs of the communities to be
served clearly outweigh the slight anticompetitive
effects of the proposal. Accordingly, it is the
Board's judgment that the proposed acquisition
would be in the public interest and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board or by
the Federal Reserve Bank of New York pursuant
to authority hereby delegated.
By order of the Board of Governors, effective
October 18, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Jackson, Partee, and
Lilly. Absent and not voting: Chairman Burns.
[SEAL]
(Signed)
GRIFFITH L .
Assistant
Secretary
GARWOOD,
of the
Board.
962
Federal Reserve Bulletin • November 1976
The Royal Trust Company;
Royal Trust Bank Corp.,
Montreal, Quebec, Canada
Order Approving
Acquisition
of Bank
The Royal Trust Company, Montreal, Quebec,
Canada ("Applicant"), and its wholly-owned
subsidiary, Royal Trust Bank Corp., Miami,
Florida (' 'Corp.''), both of which are bank holding
companies within the meaning of the Bank Holding Company Act, have applied for the Board's
approval under § 3(a)(3) of the Act [12 U.S.C.
§ 1842(a)(3)] to acquire 51 per cent or more of
the voting shares of Worth Avenue National Bank,
Palm Beach, Florida ("Bank").1 Inasmuch as
Corp. is a wholly-owned subsidiary of Applicant,
the proposed acquisition of Bank by Applicant and
Corp. is treated herein as a proposed acquisition
by Applicant.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has geen given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
proposal and all comments received, including
those of the Comptroller of the Currency,2 in light
of the factors set forth in § 3(c) of the Act [12
U.S.C. § 1842(c)].
Applicant, with total assets of $3.4 billion (as
of December 31, 1975) is the largest trust company
and the eighth largest financial institution in Canada, and operates, through its subsidiaries and
other interests, in both Europe and the Caribbean
Islands. In the United States, Applicant controls
three banks3 and operates one nonbank subsidi-
1
Applicant currently controls The Royal Trust Bank of
Miami, N . A . , Miami, Florida; Dale Mabry State Bank,
Tampa, Florida; and The First Bank of Gulf port, Florida. On
March 1, 1976, pursuant to the Federal Reserve Bank of
Atlanta's approval of a § 3(a)(1) application, Applicant transferred its controlling interest in Royal Trust Bank of Miami
to a newly-formed, wholly-owned Florida subsidiary, Royal
Trust Bank Corp., itself a registered bank holding company.
Applicant also contemplates similar transfers in the future with
respect to both Dale Mabry State Bank and The First Bank
of Gulfport in order to enable Corp. to hold directly all of
Applicant's banking interests in the United States. Such
transfers would require the Board's prior approval under §
3(a)(3) of the Bank Holding Company Act.
2
B y letter dated September 9, 1976, to the Board, the
Comptroller recommended approval of the proposal.
3
See footnote 1. Corp., with total assets of $100,000, has
no financial history because it was incorporated on November
3, 1975 and did not become a bank holding company until
March 1, 1976.
ary,4 which provides data processing and other
related services to financial institutions located in
Florida and operates as a computer service bureau
for the storing and processing of banking, financial, and other related economic data. Through its
three subsidiary banks, Applicant controls aggregate deposits of $108.6 million, representing approximately four-tenths of one per cent of the total
deposits held by commercial banks in Florida.5
Consummation of the subject proposal would increase Applicant's share of State commercial bank
deposits by approximately one-tenth of one per
cent and would not have a significant effect upon
the concentration of banking resources in the State.
Bank (with deposits of $27 million) is the 12th
largest of the 19 banking organizations (controlling
40 banks) in the West Palm Beach banking market6
and holds approximately two per cent of the market's total commercial bank deposits. Applicant
is not currently represented in the relevant market
and its closest banking subsidiary to Bank is located approximately 75 miles south of Bank. There
does not appear to be any existing competition
between Bank and any of Applicant's present
banking and nonbanking subsidiaries and, in view
of the distances involved, it does not appear likely
that any significant competition would develop in
the future. While Applicant could enter the relevant market de novo, in view of Bank's relative
size and its market position, the Board views the
proposed acquisition of Bank as a foothold entry
by Applicant into the market. Such a foothold
entry by Applicant should have a salutary effect
upon competition among the banking organizations in the relevant market by enabling Bank
to compete more effectively in that market.
Therefore, on the basis of the facts of record, the
4
Information Systems Design of Florida, Inc., Miami,
Florida ("ISD-Florida"), is a subsidiary of Information Systems Design, Inc., Santa Clara, California ("ISD-California"),
which is owned by Computel Systems, Ltd. ("Computer'),
a Canadian computer company. By Order of December 6,
1973, the Board denied Applicant's retention of ISD-California
after Applicant's acquisition of Computel [38 Federal Register
34514 (1973); 60 Federal Reserve BULLETIN 58 (1974)].
ISD-California is engaged in non-permissible data processing
activities while ISD-Florida is engaged in permissible data
processing activities. The Board granted Applicant a two-year
period, after its acquisition of Computel, within which to divest
itself of ISD-California. The Board is currently reviewing a
plan of divestiture that has been submitted by Applicant.
5
All banking data are as of December 31, 1975, unless
otherwise indicated.
6
The West Palm Beach banking market is approximated by
the upper two-thirds of Palm Beach County's eastern coastal
area.
Law Department
Board concludes that consummation of the proposal would not have any significant adverse effects upon either existing or potential competition
in any relevant area, and that competitive considerations are consistent with approval of the application.
The financial and managerial resources and future prospects of Applicant, its subsidiary banks
and Bank are regarded as satisfactory. In addition,
Applicant has committed itself to make a capital
contribution of $600,000 to Bank after consummation of this proposal. Therefore, considerations
relating to banking factors are consistent with
approval of the application. Although no significant changes are contemplated in Bank's services,
affiliation of Bank with Applicant would provide
Bank with access to Applicant's financial and
managerial resources, thereby enhancing Bank's
ability to service the community. Thus, considerations relating to the convenience and needs of
the community to be served are consistent with
approval of the application. It is the Board's judgment that the proposed acquisition would be in
the public interest and that the application should
be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Atlanta pursuant to
delegated authority.
By order of the Board of Governors, effective
October 29, 1976.
Voting for this action: Chairman Burns and Governors Gardner, Wallich, Coldwell, Partee, and Lilly.
Absent and not voting: Governor Jackson.
(Signed)
[SEAL]
GRIFFITH
Deputy Secretary
L.
GARWOOD,
of the
Bank Holding Company Act ("Act"), has applied
for the Board's approval, under § 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2))
of the Board's Regulation Y ( 12 CFR §
225.4(b)(2)), to retain the lending activities engaged in by its wholly-owned subsidiary, Main
Plaza Corporation, San Antonio, Texas ("Company). Such activities, consisting of making or
acquiring for its own account or for the account
of others loans or extensions of credit, have been
determined by the Board to be closely related to
banking (12 CFR § 225.4(a)(1)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (41 Federal Register 29040). The time
for filing comments and views has expired, and
the Board has considered the application and all
comments received in the light of the public interest factors set forth in § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant, the tenth largest banking organization in Texas, controls five banks with aggregate
deposits of approximately $687 million, representing 0.5 per cent of the total deposits in commercial banks in the State.1
In acting on applications submitted pursuant to
§ 4(c)(8) of the Act, the Board analyzes an application to continue to engage in § 4(c)(8) activities
by the same standards that it analyzes an application to acquire a company engaged in such activities. In addition, the Board analyzes the competitive effects of a proposal both at the time of the
acquisition and at the time of application for retention. Company was formed on May 1, 1973,
concurrently with the reorganization of Applicant's predecessor, Frost Realty Company, San
Antonio, Texas ("Frost Realty"),2 for the purpose
of holding certain assets and engaging in certain
activities of Frost Realty.3 Included in the activities transferred to Company were the above-de-
Board.
Orders Under Section 4 of
Bank Holding Company Act
FrostBank Corporation,
San Antonio, Texas
Order Approving
Lending
Activities of Main Plaza
Corporation
FrostBank Corporation, San Antonio, Texas, a
bank holding company within the meaning of the
963
1
A11 banking data are as of December 31, 1975.
The reorganization of Frost Realty and formation of Company occurred without prior approval of the Board. However,
the Board has examined the facts surrounding these transactions
and believes that those facts do not call for denial of the
application to retain the lending activities of Company.
3
At the same time, Frost Realty transferred the assets of
Data Processing Center, San Antonio, Texas, to Company.
On November 12, 1973, the Board approved the application
of Applicant to retain those assets and thereby continue to
engage in performing financially-related data processing activities under § 4(c)(8) of the Board's Regulation Y (12 CFR
§ 225(a)(8)).
2
964
Federal Reserve Bulletin • November 1976
scribed lending activities. Since that transaction
was essentially a reorganization of Applicant's
existing nonbank lending activities, it does not
appear to have had any significant adverse effects
on competition at that time.
At present, Company's lending activities essentially involve making business loans in the San
Antonio SMS A. 4 Such lending activities include
making loans for interim construction, stock acquisition and short-term capital working needs.
Company originated $5.3 million of such loans
during 1975 and had $3.7 million of such loans
outstanding as of December 31, 1975. Applicant's
subsidiary banks also engage in making business
loans and hold approximately $200 million of such
loans, representing 29.2 per cent of the total business loans held by the 45 banking organizations
operating in the relevant market. In view of the
relatively small size of Company's lending activities and the number of other competitors,5 it does
not appear that the retention of Company's lending
activities by Applicant would have any significant
adverse effects on existing or potential competition. At the same time, the retention of Company's
lending activities by Applicant should provide
benefits to the public by assuring customers of a
continued and convenient source for such loans.
Moreover, there is no evidence in the record
indicating that the retention of Company's lending
activities would lead to any undue concentration
of resources, unfair competition, conflicts of interests, unsound banking practices or other adverse
effects on the public interest.
Based upon the foregoing and other considerations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under §
4(c)(8) is favorable. Accordingly, the application
is hereby approved. This determination is subject
to the conditions set forth in § 225.4(c) of Regulation Y and to the Board's authority to require
such modification or termination of the activities
of a holding company or any of its subsidiaries
as the Board finds necessary to assure compliance
with the provisions and purposes of the Act and
4
The San Antonio SMSA approximates the relevant geographic market for purposes of analyzing the competitive
effects of the subject application.
5
It should be noted that other competitors include commercial finance companies, insurance companies and savings and
loan associations located outside as well as inside the market
area in addition to the market's banking organizations.
the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
October 5, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Coldwell, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Wallich.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
Philadelphia National Corporation,
Philadelphia, Pennsylvania
Order Approving Acquisition
Shares of Congress Factors
of Additional
Corporation
Philadelphia National Corporation, Philadelphia, Pennsylvania, a bank holding company
within the meaning of the Bank Holding Company
Act, has applied.for the Board's approval, under
§ 4(c)(8) of the Act and § 225.4(b)(2) of the
Board's Regulation Y, to increase its ownership
interest in Congress Factors Corporation ("Congress"), Philadalphia, Pennsylvania, to 100 per
cent. Congress, already a subsidiary of Applicant,
currently engages in the activities of purchasing
accounts receivable and making loans secured by
accounts receivable, inventory, machinery and
equipment and generally in the factoring and
commercial finance business. Such activities have
been determined by the Board to be closely related
to banking (12 CFR § 225.4(a)(1)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (41 Federal Register 34702 (1976)).
The time for filing comments and views has expired, and the Board has considered the application
and all comments received in the light of the public
interest factors set forth in § 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)).
Applicant, the third largest banking organization
in Pennsylvania, controls one bank with total domestic deposits of approximately $2.4 billion,1
representing about 5.5 per cent of the total deposits
in commercial banks in the State.
On September 11, 1973, the Board approved
the application by Applicant to retain 80 per cent
of the voting shares of Congress to be transferred
1
All banking data are as of December 31, 1975.
Law Department
from Applicant's subsidiary bank, the Philadelphia
National Bank ("PNB"), Philadelphia, Pennsylvania.2 Applicant now proposes to acquire indirectly the remaining shares of Congress through
the repurchase by Congress of the ownership interest currently held by Congress' minority shareholders. Such repurchase would be pursuant to an
agreement between Congress and its minority
shareholders which was entered into in 1968 in
connection with PNB's original acquistion of
shares of Congress.
When Applicant received approval to retain its
majority ownership interest in Congress, competitive factors were assessed by the Board and were
not found to be adverse. Since Applicant currently
seeks only to increase its already majority ownership interest in Congress, it does not appear that
consummation of the instant proposal would have
an adverse effect on either existing or potential
competition; nor is there any evidence in the
record indicating that such consummation would
lead to any undue concentration of resources,
conflicts of interests, unsound banking practices,
or any other adverse effect upon the public interest.
On the other hand, approval of the application is
likely to assure the continuation of the public
benefits the Board found to be provided by Applicant's original acquisition of Congress.
Based upon the foregoing and other considerations reflected in the record, the Board has determined, in accordance with the provisions of §
4(c)(8) of the Act, that Applicant's increased
ownership interest in Congress can reasonably be
expected to continue to produce benefits to the
public that outweigh any possible adverse effects.
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 bank holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to
prevent evasion thereof.
The transaction shall be made not later than
three months after the effective date of this Order
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Philadelphia pursuant to authority hereby delegated.
2
38 Federal Register
26156 (1973).
965
By order of the Board of Governors, effective
October 21, 1976.
Voting for this action: Governors Wallich, Cold well,
Jackson, Partee, and Lilly. Present and abstaining: Vice
Chairman Gardner. Absent and not voting: Chairman
Burns.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
Horizon Bancorp,
Morristown, New Jersey
Order Approving Acquisition of Mortgage
Investment Securities, Inc., and M.I.S.I.,
Inc.
Horizon Bancorp, Morristown, New Jersey, a
bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
Board's approval, under § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)), to purchase all the outstanding shares of stock of Mortgage Investment
Securities, Inc. ("Company"), and its subsidiary,
M.I.S.I., Inc. ("M.I.S.I."), both of Clearwater,
Florida, both of which engage in the activities of
making and acquiring loans and other extensions
of credit as would be made by a mortgage company and servicing loans and extensions of credit
to any person. Each of the above activities has
been determined by the Board to be closely related
to banking (12 CFR § 225.4(a)(1) and (3)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors has been duly
published (41 Federal Register 30401 and 32688
(1976)). The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in the light
of the public interest factors set forth in § 4(c)(8)
of the Act (12 U.S.C. § 1843(c)(8)).
Applicant, the thirteenth largest banking organization in New Jersey with deposits of $501.5
million,1 controls two banks in New Jersey and
one nonbank subsidiary, also in New Jersey,
which engages in the activities of equipment financing and leasing and in second mortgage financing.
Company, with total assets of $15.4 million as
of June 25, 1976, is a wholly-owned subsidiary
of Branitek, Inc., Oak Brook, Illinois, a subsidiary
of Union Camp Corporation. Its operations are
1
Unless otherwise indicated, all banking data are as of
December 31, 1975.
966
Federal Reserve Bulletin • November 1976
limited to the origination, sale, and servicing of
mortgage loans, particularly in regard to single
family residential mortgages. Some commercial
mortgages are handled, but only on a brokered
basis, thus not requiring the commitment of funds
by Company. Construction loans are minimal.
Company does not carry mortgages for its own
account and they are held no longer than necessary
to effect delivery in fulfillment of prior commitments. M.I.S.I., the only subsidiary of Company,
was recently formed solely to provide company
with another bidding vehicle for obtaining Federal
National Mortgage Association (FNMA) and
Government National Mortgage Association
(GNMA) loan commitments. M.I.S.I. is not an
operating company and maintains its office of
record at Company's corporate headquarters in
Clearwater, Florida.
Company, a relatively small mortgage banking
firm with a servicing portfolio of $31.6 million,
operates the following 9 offices in 4 states: Clearwater, Auburndale, Fort Lauderdale, and Sarasota,
all in Florida; Atlanta, Georgia; Tucson and
Phoenix, Arizona; and two offices in Oak Brook,
Illinois, one of which is purely administrative and
will be consolidated with Company's new corporate headquarters in Clearwater, Florida.
Through these offices, Company is represented in
7 local markets for the origination of residential
mortgages.2
Applicant currently originates only residential
mortgages through its banking subsidiaries in New
Jersey. Neither Applicant nor Company derives
any business from the service area of the other.
There is wide geographic separation of their market areas and Applicant lacks expertise in the
origination and sale of FHA/VA-insured mortgages which account for approximately one-half
of Company's originations.3 Also, it appears unlikely that Applicant would enter de novo into the
mortgage banking business where Company pres-
2
Data indicates that Company's share of mortgage originations is negligible in all markets where it operates except for
commercial mortgages originated in the Sarasota market.
However, its share of 27.5 per cent of that market reflects
mortgage recordings for a single month and seems unlikely
to be a valid indication of Company's market power considering the number of other competitors operating in that market.
3
Moreover, in view of the substantial number of other firms
originating real estate loans in each of Company's market
areas, including several national mortgage banking firms and
local commercial banks and thrift institutions, any foreclosure
of potential competition between Applicant and Company
would be insignificant.
ently operates. Thus, the proposal would not
eliminate any existing competition between Applicant and Company nor would any significant
potential competition between the two be eliminated by approval of the proposal. It does not
appear that consummation of the proposal would
result in any concentration of resources, conflicts
of interests, or other adverse effects on the public
interest.
Acquisition of Company and M.I.S.I. by Applicant will be accompanied by the opening of a
new office of Company in Morristown, New Jersey, and thus would increase the availability of
FHA and VA mortgages in central New Jersey.
The ownership of a mortgage banking subsidiary
having extensive relationships with institutional
investors and FNMA and GNMA will increase
Applicant's ability to provide additional mortgage
funds to consumers. The Board also notes that
Applicant has undertaken to add additional capital
to Company.4
Based on the foregoing and other considerations
reflected in the record, the Board has determined,
in accordance with section 4(c)(8) of the Act, that
consummation of the proposal can reasonably be
expected to produce benefits to the public that
outweigh possible adverse effects. Accordingly,
the application is hereby approved. This determination is subject to the conditions set forth in §
225.4(c) of Regulation Y (12 CFR § 225.4(c)) and
to the authority of the Board to require such
modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board may find necessary to assure compliance
with the provisions and purposes of the Act and
the Board's regulations or orders issued
thereunder, or to prevent evasion thereof.
The transaction shall be made not later than
three months after the effective date of this Order
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of New
York, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
October 22, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Jackson.
[SEAL]
(Signed)
GRIFFITH
Assistant
Secretary
L.
GARWOOD,
of the
Board.
4
In addition, Applicant intends to augment the capital of
one of its subsidiary banks and of its nonbank subsidiary.
Law Department
United Bancorp,
Roseburg, Oregon
Order Deferring Consideration
of
Application
to Form United Bancorp Municipals,
Inc.
United Bancorp, Roseburg, Oregon, a bank
holding company within the meaning of the Bank
Holding Company Act, has applied for the Board's
approval, under § 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and § 225.4(b)(2) of the Board's
Regulation Y (12 CFR § 225.4(b)(2)), to form
United Bancorp Municipals, Inc., Roseburg, Oregon, a company that will engage de novo in the
activities of underwriting and dealing in certain
government securities. Such activities have not
heretofore been determined by the Board by regulation to be closely related to banking.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 4 of
the Act (39 Federal Register 13007). 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 § 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)).
Applicant, the twelfth largest banking organization in Oregon, controls one subsidiary bank
with aggregate deposits of approximately $40.3
million, representing about 0.7 per cent of the total
deposits in commercial banks in the State.1 United
Bancorp Municipals, Inc. would engage de novo
in the activities of underwriting and dealing in such
obligations of the United States, general obligations of various States and of political subdivisions
thereof and other obligations that State member
banks of the Federal Reserve System may from
time to time be authorized to deal in under § 24
(Paragraph Seventh) and § 335 of Title 12 of the
United States Code. By notice of proposed rulemaking published in the Federal Register on April
10, 1974, (39 F.R. 13007), the Board of Governors proposed to add this activity to the list of
activities that it has determined to be so closely
related to banking or managing or controlling
banks as to be a proper incident thereto (§ 225.4(a)
of Regulation Y). In a Statement issued concurrently with this Order, the Board today announced
its decision not to adopt the proposed amendment
at the present time and to defer temporarily further
consideration of the activity, either by order or
by regulation. The reasons for that decision are
summarized in that Statement.
Consistent with its decision to suspend action
on the general activity, the Board hereby defers
consideration of the instant application for a period
of twelve months, unless prior to that time actions
of the Municipal Securities Rulemaking Board
lead the Board in its judgment to reconsider the
deferral of action on the general activity.
By order of the Board of Governors, effective
October 19, 1976.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Jackson, Partee, and
Lilly. Absent and not voting: Chairman Burns.
(Signed)
1
Banking data are as of December 31, 1975.
967
[SEAL]
THEODORE E .
Secretary
ALLISON,
of the
Board.
ORDERS APPROVED UNDER BANK HOLDING HOLDING COMPANY ACT
By the Board of Governors
During October 1976, the Board of Governors approved the applications listed below. The orders
have been published in the Federal Register, and copies are available upon request to Publications
Services, Division of Administrative Services, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
968
Federal Reserve Bulletin • November 1976
Section 3
Applicant
Exchange Bancorporation,
Inc., Tampa, Florida
Lisco State Company,
Lisco, Nebraska
Peninsula Financial, Inc.,
Sturgeon Bay, Wisconsin
Sioux National Company,
Harrison, Nebraska
Shaw Investment Company,
New Hampton, Iowa
The Spalding City Corporation, Spalding,
Nebraska
Texarkana National Bancshares, Inc., Texarkana,
Texas
Bank(s)
Security National
Bank, Lee County
(P.O. Fort Myers),
Florida
Lisco State Bank,
Lisco, Nebraska
First State Bank of
Algoma, Algoma,
Wisconsin
The Sioux National
Bank of Harrison,
Harrison, Nebraska
First National Bank
in New Hampton,
New Hampton, Iowa
Spalding City Bank,
Spalding, Nebraska
Liberty Eylau State
Bank, Texarkana,
Texas
Board action
(effective
date)
Federal
Register
citation
10/4/76
41 F.R. 44898
10/13/76
10/1/76
41 F.R. 44473
10/8/76
41 F.R. 48611
11/4/76
10/27/76
10/13/76
41 F.R. 46388
10/20/76
10/20/76
41 F.R. 47601
10/29/76
10/12/76
41 F.R. 45915
10/18/76
10/29/76
41 F.R. 49197
11/8/76
Board action
(effective
date)
Federal
Register
citation
10/5/76
41 F.R. 44897
10/13/76
10/12/76
41 F.R. 46060
10/19/76
Section 4
Applicant
Century Financial Corporation of Michigan,
Saginaw, Michigan
Southern Bankshares,
Inc., Richmond,
Virginia
Nonbanking
company
(or activity)
Century Life Insurance Company of
Michigan, Phoenix,
Arizona
Charter Insurance
Managers, Inc.,
Richmond, Virginia
By Federal Reserve Banks
During October 1976, applications were approved by the Federal Reserve Banks as listed below.
The orders have been published in the Federal Register, and copies are available upon request to the
Reserve Bank.
Law Department
969
Section 3
Applicant
Bank(s)
First Michigan Bank
Community State
Corporation, Zeeland,
Bank of
Michigan
Dowagiac,
Dowagiac,
Michigan
The National
First National Financial Corporation, Kala- Bank of Ludington, Ludington,
mazoo, Michigan
Michigan
First Midwest Bancorp., Platte Valley
Bank, RavenInc., St. Joseph,
wood, Missouri
Missouri
Deseret Bancorporation, Bank of Pleasant
Grove, Pleasant
Pleasant Grove, Utah
Grove, Utah;
State Bank of
Lehi, Lehi, Utah;
Mountain View
Bank, American
Fork, Utah; and
Geneva State Bank
of Orem, Orem,
Utah
Federal
Register
citation
Reserve
Bank
Effective
date
Chicago
10/21/76
41 F.R. 49195
11/8/76
Chicago
10/8/76
41 F.R. 47111
10/27/76
Kansas City
10/5/76
41 F.R. 46058
10/19/76
San Francisco
9/29/76
41 F.R. 44897
10/13/76
Sections 3 and 4
Applicant
Milco Bancorporation, Inc.,
Iberia, Missouri
Bank(s)
Bank of Iberia,
Iberia, Missouri
Nonbanking
company
(or activity)
Tritten
Insurance
Company,
Iberia,
Missouri
Reserve
Bank
St. Louis
Effective
date
10/7/76
Federal
Register
citation
41 F.R. 46059
10/19/76
970
Federal Reserve Bulletin • November 1976
ORDER APPROVED UNDER THE BANK MERGER A C T —
Applicant
Reserve
Bank
Bank(s)
New York
Suburban National/
A United Jersey
Bank, South
Plainfield, New
Jersey
United Jersey
Bank/Central,
Elizabeth,
New Jersey
Federal
Register
citation
Effective
date
10/1/76
41 F.R. 46061
10/19/76
PENDING CASES INVOLVING THE BOARD OF GOVERNORS*
Michigan
National
Governors,
Corporation
v. Board
of
September 1976, U.S.C.A. for
the 6th Circuit.
First Security
Corporation
v. Board
of
Gover-
nors, filed August 1976, U.S.C.A. for the
10th Circuit.
Anthony
April 1976, U.S.C.A. for the District of
Columbia Circuit.
United States ex rel. A.R. Martin-Trigona
v.
Arthur F. Burns,
et al., March 1976,
U.S.D.C. for the District of Columbia.
Grandview
R. Martin-Trigona
v. Board
of Gov-
ernors, filed August 1976, U.S.C.A. for the
District of Columbia.
Association
Board
Board
of Governors, filed July 1976, U.S.C.A. for
the 5th Circuit.
Memphis
First State Bank of Clute, Texas, etal. v.
International
Bank v. Board
of Governors,
et
al, filed July 1976, U.S.D.C. for the District
of Columbia.
North Lawndale Economic Development
poration v. Board of Governors, filed
CorJune
1976, U.S.C.A. for the 7th Circuit.
Central
Wisconsin
Bankshares,
Inc. v.
Martin-Trigona
v. Board
of
Governors,
et al., filed June 1976, U.S.D.C. for the
District of Columbia.
National Urban League, et al. v. Office of the
Comptroller
of the Currency,
et al., filed
April 1976, U.S.D.C. for the District of
Columbia Circuit.
Farmers & Merchants
Bank of Las
Cruces,
New Mexico v. Board of Governors,
filed
v.
Board
of Bank
Travel
Bureaus,
Inc.
v.
of Governors, filed February 1976,
U.S.C.A. for the Seventh Circuit.
Trust Company
v. Board
of
Gover-
nors, filed February 1976, U.S.D.C. for the
Western District of Tennessee.
First
Lincolnwood
Corporation
v. Board
of
Governors, filed February 1976, U.S.C.A.
for the Seventh Circuit.
International
Board
of Governors, filed June 1976, U.S.C. A. for
the 7th Circuit.
A.R.
Bank & Trust Company
of Governors, filed March 1976, U.S.C.A.
for the Eighth Circuit.
Bank v . Board of Governors,
filed
December 1975, U.S.C.A. for the District of
Columbia.
Roberts
Farms, Inc. v. Comptroller
of the Cur-
rency, etal., filed November 1975, U.S.D.C.
for the Southern District of California.
National
Computer
Corporation,
Analysts,
Inc. v.
Decimus
et al., filed November 1975,
U.S.D.C. for the District of New Jersey,
t P e t e r E. Blum v. First National
Holding
Cor-
poration, filed May 1976, U.S.C.A. for the
Fifth Circuit,
t P e t e r E. Blum v. Morgan
Guaranty
Trust
Co.,
et al., filed April 1976, U.S.C.A. for the
Fifth Circuit,
t L o g a n v. Secretary
*This list of pending cases does not include suits against
the Federal Reserve Banks in which the Board of Governors
is not named a party.
of State,
et al., filed Sep-
tember 1975, U.S.D.C. for the District of
Columbia.
Law Department
Florida Association of Insurance Agents, Inc.
v. Board of Governors, and National Association of Insurance Agents, Inc. v. Board
of Governors, filed August 1975, actions
consolidated in U.S.C.A. for the Fifth Circuit.
t i D a v i d R. Merrill, et al. v. Federal Open Market
Committee of the Federal Reserve
System,
filed May 1975, U.S.D.C. for the District of
Columbia, appeal pending, U.S.C.A. for the
District of Columbia.
Curvin I. Trone v. United States,
filed April
filed
April 1975, U.S.D.C. for the Eastern District
of Louisiana.
Georgia Association of Insurance Agents, et al.
v. Board of Governors, filed October 1974,
U.S.C.A. for the Fifth Circuit.
Alabama
Association
al. v. Board of Governors, filed July 1974,
U.S.C.A. for the Fifth Circuit,
tInvestment
Company Institute v. Board of Gov-
ernorsdismissed
July 1975, U.S.D.C. for
the District of Columbia, appeal pending,
U.S.C.A. for the District of Columbia Circuit.
East Lansing State Bank v. Board
of Gover-
nors, filed December 1973, U.S.C.A. for the
Sixth Circuit,
tConsumers Union of the United States, Inc.,
etal. v. Board of Governors, filed September
1973, U.S.D.C. for the District of Columbia.
1975, U.S. Court of Claims.
Louis J. Roussel v. Board of Governors,
971
of Insurance Agents,
et
Bankers Trust New York Corporation v. Board
of Governors, filed May 1973, U.S.C.A. for
the Second Circuit.
tDecisions have been handed down in these cases, subject
to appeals noted.
$The Board of Governors is not named as a party in this
action.
973
Announcements
REGULATION Q: Amendments
The Board of Governors of the Federal Reserve
System on November 8, 1976, amended its Regulation Q (Interest on Deposits) to improve the
terms under which member banks may offer Keogh
plan retirement accounts.
The amendments extend to Keogh (H.R. 10)
plan retirement accounts the conditions established
last December for individual retirement accounts
(IRA's). The amendments are:
1. Member banks may pay all, or a part, of
a Keogh plan time deposit (as with an IRA) prior
to its maturity, without the usual penalty for early
withdrawal from a time deposit, when the depositor reaches the age of 59V2 or becomes disabled.
2. In the case of Keogh plan time deposits (as
with IRA's) it is not necessary to have on deposit
a minimum of $1,000 in order to earn the l x k
per cent interest rate available for 4-year time
deposits, or the IV2 per cent for 6-year deposits.
Similar actions will be taken by the Federal
Deposit Insurance Corporation (FDIC) for banks
under its supervision and by the Federal Home
Loan Bank Board (FHLBB) for savings and loan
associations.
The first of the amendments to Regulation Q
allows avoidance of the loss of interest usually
required when funds are withdrawn before a time
deposit matures—when, for example, funds in a
5-year time deposit are withdrawn after 4 years.
As a result of the amendment, member banks may
distribute the full proceeds of a Keogh account
in a single payment, or in a series of annuity-like
payments, without penalty, when the distribution
is made in accordance with the Keogh plan agreement between the bank and the depositor.
The second amendment allows payment of
maximum interest rates on amounts smaller than
$1,000 in recognition of the fact that some depositors may not have that much money to start an
account.
The Board believes these amendments to Regulation Q serve the intent of the Congress to encourage self-employed individuals to save for their
retirement.
Keogh (H.R. 10) plan accounts were authorized
under the Self-Employed Individuals Tax Retirement Act of 1962, to encourage, by tax benefits,
saving for retirement by self-employed persons.
The Keogh plan provisions as amended permit a
self-employed individual to establish a retirement
savings plan with a depositary institution and to
deposit up to 15 per cent of earned income, or
$7,500 a year, whichever is less, in the account.
The amount deposited may be deducted from the
individual's income that is subject to Federal tax.
The Employee Retirement Income Security Act
of 1974 permits individuals not covered by a
retirement plan to deposit in IRA's up to $1,500,
or 15 per cent of gross income, whichever is less.
Keogh plans already in existence may be
amended to incorporate these changes in Regulation Q requirements. Keogh plan accounts must
be established before the end of 1976 in order to
be eligible for tax benefits for the whole year.
REGULATION Y:
Deferred Action on Amendment
The Board of Governors on October 20, 1976,
deferred action on a proposal to make underwriting
and dealing in Federal Government securities and
general obligations of States or their subdivisions
(municipal securities) a permissible activity for
bank holding companies. It also suspended further
consideration of applications by bank holding
companies to engage in the activity.
Action was deferred for 12 months unless before
that time actions by the Municipal Securities
Rulemaking Board—created by Congress in 1975
to regulate the municipal securities field—make
reconsideration appropriate in the Board's judgment.
The Board had proposed on April 2, 1974, to
add to the list of permissible bank holding company activities underwriting and dealing in obligations of the United States, general obligations of
any State and of any political subdivision thereof,
and other obligations that State member banks are
authorized to underwrite and deal in. Underwriting
and dealing in U.S. Government securities and
municipals are common among banks.
974
Federal Reserve Bulletin • November 1976
CONSUMER ADVISORY
COUNCIL: Meetings
The Board of Governors has announced that the
initial meetings of its new Consumer Advisory
Council took place November 10 and 11 at the
Board. The meetings were open to the public.
At itsfirstmeetings the Council acquainted itself
with the Board's responsibilities and functions in
the area of consumer credit and was asked to
advise the Board on current developments in that
field. These include the revision of Regulation B
to implement the amended Equal Credit Opportunity Act.
The Board had announced on September 20 that
Representative Leonor K. Sullivan of Missouri,
a long-time sponsor of consumer protection legislation who is retiring from the Congress in January, will head the Council. At the same time,
the Board had also announced the names of 25
other members of the Council, including Dr. William D. Warren, Dean of the School of Law of
the University of California at Los Angeles, who
will be Vice Chairman and who will preside until
Mrs. Sullivan leaves the Congress in January. The
Council members are as follows:
Leonor K. Sullivan, Chairman, U.S.
House of Representatives, has been in Congress for 24 years, beginning in 1952. She
was the first woman elected to Congress
from Missouri. For 12 years, from 1963 to
1975, Mrs. Sullivan was Chairman of the
Subcommittee on Consumer Affairs of the
House Banking and Currency Committee.
She was one of the primary authors of the
Consumer Credit Protection Act of 1968,
which included the Truth in Lending Act.
In 1970 Mrs. Sullivan sponsored the Fair
Credit Reporting Act in the House. She was
a member of the National Commission on
Consumer Finance from 1969 to 1972. In
1974 Mrs. Sullivan proposed legislation to
forbid discrimination in the extension of
credit on the basis of sex, marital status,
race, color, religion, and age. These proposals are now embodied in the Equal Credit
Opportunity Act. Mrs. Sullivan sponsored
the Food Stamp Act in 1964. Mrs. Sullivan
is currently Chairman of the House Committee on Merchant Marine and Fisheries,
and ranking majority member of the Committee on Banking, Currency and Housing
and of that Committee's subcommittees on
Housing and Community Development, and
Consumer Affairs. In addition, she chairs the
Joint Committee of the Congress on Defense
Protection and its House Materials Availability Subcommittee.
William D. Warren, Vice Chairman, Los
Angeles, California, is Dean of the School
of Law of the University of California at
Los Angeles. He was reporter-draftsman of
the Uniform Consumer Credit Code, 1964
to 1974, and has been a consultant on consumer law and debtor/creditor law to the
National Commission on Consumer Finance
and various California agencies. Mr. Warren
is the author of books and articles concerning commercial and consumer law. He
taught law at Stanford University and the
University of Illinois before joining UCLA.
Barbara D. Blum, Atlanta, Georgia, is
Vice Chairman of the Fulton County Planning Commission and was until recently a
member of the Atlanta Regional Commission Health and Social Services Advisory
Board. She has broad experience as chairman or member of numerous Statewide
consumer-oriented organizations. Ms. Blum
has also worked in the field of mental health.
She has a Master of Social Work degree
from Florida State University.
Roland E. Brandel, San Francisco, California, is a partner in the law firm of Morrison and Foerster. He is a member of the
Committee of the American Bar Association
on the Regulation of Consumer Credit. He
has worked extensively in the field of bank
credit-card law. He has been visiting professor of law at the University of California
at Berkeley. Mr. Brandel has written and
lectured on the subjects of Truth in Lending,
Fair Credit Billing, Equal Credit Opportunity, and Electronic Funds Transfer.
Agnes H. Bryant, Detroit, Michigan, is
Director of the City of Detroit Human Rights
Department. She chairs the Michigan Consumer Council and is vice president of the
Consumer Research Advisory Council, a
member of the Board of the National Association for the Advancement of Colored
People, a member of the Advisory Council
of the Wayne County Consumer Protection
Agency, and a former member of the Michigan State Advisory Council on Vocational
Education.
John G. Bull, Pompano Beach, Florida,
is President and Chief Executive Officer of
the Southern BankCard Corporation. He has
served two terms as chairman of the bankcard division of the Florida Bankers Association and was chairman of the design specifications committee that developed a computer program for descriptive billing in
electronic funds transfer. He has done extensive work on other aspects of the operation of bank-card systems.
John V. Bullock, Frankfort, Kentucky, is
Assistant Attorney General in charge of the
Announcements
Division of Consumer Protection in the Office of the Attorney General of Kentucky.
He is active in the National Association of
Attorneys General's Consumer Protection
Committee. He was previously an attorney
for the Federal Trade Commission in Cleveland, Ohio, and in Washington, D.C.
Linda M. Cohen, Washington, D.C., is
Coordinator of the National Credit Task
Force of the National Organization for
Women and has served as spokesperson and
lecturer on women and credit for that organization. She has been an attorney-adviser
in the General Services Administration since
1973 and is active in local community organizations.
John R. Coleman, Haverford, Pennsylvania, is President of Haverford College and
Chairman of the Board of Directors of the
Federal Reserve Bank of Philadelphia. He
is a Trustee and member of the Research
and Policy Committee of the Committee for
Economic Development. Mr. Coleman was
a member of special CED committees that
produced in 1976 statements regarding national policy on "Welfare Report and its
Financing" and "Fighting Inflation and
Promoting Growth." He is trustee of a
number of educational institutions and was
formerly a trustee of the Special Development Fund of the National Association for
the Advancement of Colored People. Mr.
Coleman is the author of a number of books
having to do with economics and labor
problems. One of his books, Blue Collar
Journal (1974), recounts his experiences in
1973 when he took leave from his professional occupations to work as a blue-collar
laborer.
Robert R. Dockson, Los Angeles, California, is President and chief executive officer of the California Federal Savings and
Loan Association. Prior to joining that Association, he was dean of the undergraduate
School of Business and the Graduate School
of Business Administration of the University
df Southern California at Los Angeles. Mr.
Dockson has received the Human Relations
Award of the American Jewish Committee
and the Brotherhood Award of the National
Conference of Christians and Jews.
Anne G. Draper, Washington, D.C., is
an economic analyst with the AFL-CIO and
author of numerous articles, testimony, and
policy resolutions on consumer matters. She
serves on advisory councils in the Department of Labor and the Bureau of the Census.
She was formerly a social research analyst
with the Social Security Administration and
served as an economist with the National
War Labor Board and the Office of Price
Controls.
975
Carl Felsenfeld, New York City, New
York, is Vice President of Citicorp in charge
of legal aspects of its consumer-related
operations. He is a member of the Committee on the Regulation of Consumer Credit
of the American Bar Association and the
Committee on Consumer Affairs of the New
York City Bar Association and is an adjunct
professor of Banking Law at Fordham University. He has served as consultant to the
Commissioners on Uniform State Laws in
the drafting of the Uniform Consumer Credit
Code.
Marcia A. Hakala, Omaha, Nebraska,
was until recently Executive Director of the
Mayor's Commission on the Status of
Women for the city of Omaha and is a
member of a number of other advisory
councils and committees working in the
fields of manpower planning, women in
small business, and problems of older citizens. She has taught at Illinois State University, Cleveland State University, Stout
State University, and Indiana University.
Joseph F. Holt III, Washington, D.C., is
a consultant to the Federal National Mortgage Association, where he was formerly
National Field Representative with responsibility for field operations, especially in the
area of discrimination by geographic areas
(red-lining). Mr. Holt is a former member
of the U.S. House of Representatives and
was a member of the Education and Labor
Committee and served on House subcommittees responsible for minimum wage legislation and Federal aid for education in
impacted areas.
Edna De Coursey Johnson, Baltimore,
Maryland, is Director of Consumer Services
of the Baltimore Urban League. She is a
member of the President's Consumer Advisory Council. Ms. Johnson is also a member
of the Maryland and Virginia Citizens Consumer Councils, the Governor's Commission on the Status of Women, and the Board
of Directors of Consumers Union of the
United States. She was formerly a teacher
in the Baltimore public schools.
Robert J. Klein, New York City, New
York, is a senior editor of Money Magazine.
He is a member of the National Advisory
Council on Small Claims of the National
Center for State Courts and served from its
inception on the Federal Reserve Board's
Truth in Lending Advisory Committee
(which the Consumer Advisory Council replaces). He has been a reporter and editor
with a number of publications and is the
author of numerous articles concerning consumer affairs. Mr. Klein has testified on
consumer matters before governmental
committees.
976
Federal Reserve Bulletin • November 1976
Ralph Lazarus, Cincinnati, Ohio, is
Chairman of the Board of Directors of Federated Department Stores, Inc. He is a
Trustee and member of the Research and
Policy Committee of the Committee for
Economic Development and has been associated with the Stanford Research Institute
Council and the Council for Financial Aid
to Education. Mr. Lazarus is a Trustee of
Dartmouth College and a member of the
Rockefeller University Council, among a
number of other civic associations.
Percy W. Loy, Portland, Oregon, is President of the Kubla Khan Food Company. He
is serving his third term as a member of the
District Advisory Council of the Small
Business Administration, is a member of the
Business Liaison Committee of the Business
School of the University of Oregon, and is
a past president of the Frozen Food Council
of Oregon and a past member of the Marketing Advisory Council of the Business
School of the University of Oregon. He is
a member of the Board of Overseers of
Lewis and Clark College.
R. C. Morgan, El Paso, Texas, is President of the Government Employees Credit
Union of El Paso. He is immediate past vice
chairman of the National Legislative Forum
and chairman of the Governmental Affairs
Committee of the Credit Union National
Association. He served three terms as president of that Association. He has served as
a member and as chairman of the Credit
Union Advisory Commission for the State
of Texas and as a member of the Texas
Credit Union Commission. He has testified
on consumer protection issues before committees of the U.S. Senate ;and House of
Representatives and regulatory agencies.
Reece A. Overcash, Dallas, Texas, is
President and chief operating officer of Associates Corporation of North America. He
has served as president of the National Consumer Finance Association and formerly
served on the board of directors of the North
Carolina Economic Resources Association.
He has taught at the National Institute of
Consumer Finance at Marquette University
and the National Instalment Banking School
at the University of Colorado.
Raymond J. Saulnier, New York City,
New York, is professor emeritus of economics at Barnard College, Columbia University. He is a former chairman of the
President's Council of Economic Advisers
and a former director of the Financial Research Program of the National Bureau of
Economic Research, where he was responsible for studies of consumer instalment
credit. He has written extensively in the field
of consumer instalment credit.
E. G. Schuhart, Dalhart, Texas, a farmer
and rancher, has served as Vice Chairman
and member of the Federal Farm Credit
Board (policy-making board for the Farm
Credit System). He has also been a member
of the Agricultural Stabilization and Conservation Committee for the State of Texas
and mayor of the City of Dalhart, Texas.
He has been a director of the Farm Credit
Board of Houston and a chairman and
member of the stockholders' committee of
the Federal Land Bank of Houston. He was
formerly manager of the Schuhart Grain
Company.
James E. Sutton, Dallas, Texas, is Secretary and Corporate Counsel of Chilton Corporation. Before joining Chilton in 1973,
Mr. Sutton served 3 years as staff attorney
and consumer education consultant in the
Texas State Consumer Credit Commission.
While in that office, he was charged with
enforcing the Texas Credit Code and worked
closely with the Federal Truth in Lending
Act. Mr. Sutton was also engaged in consumer education programs and participated
in the establishment of the Consumer Credit
Counseling Service of Greater Dallas and
Family Debt Counselors of Corpus Christi.
Anne Gary Taylor, Alexandria, Virginia,
is a former national president of the American Association of University Women. For
21 years she was president of Sweet Briar
College. She has served on the American
Council on Education, and was vice chairman of the Board, and a member of the
Commission on Students and Faculty of the
Association of American Colleges. She was
one of four educational administrators who
arranged for the establishment of the United
States-India Women's Colleges Faculty Exchange Program.
Richard D. Wagner, Simsbury, Connecticut, is President of Wagner Ford Sales,
Incorporated. He is a member of the board
of directors of the National Automobile
Dealers' Association and is chairman of the
Association's Public and Consumer Affairs
Committee and director of the Association
for the State of Connecticut. He established
the Connecticut Automotive Consumer Action Panel Program (AUTOCAP).
Richard L. Wheatley, Jr., Stillwater, Oklahoma, is Chairman and chief executive
officer of the University Bank at Stillwater.
He was the first Administrator of Consumer
Affairs for the State of Oklahoma after the
State enacted the Uniform Consumer Credit
Code, and served as a representative in the
State legislature. He has served as consultant
with some 30 other State legislatures regarding enactment of the Uniform Consumer
Credit Code in those States.
Announcements
The Council was established, at the Board's
suggestion, under the amendments to the Equal
Credit Opportunity Act passed earlier this year.
It will advise and consult with the Board on the
Board's responsibilities under the Consumer
Credit Protection Act, which includes Truth in
Lending, Fair Credit Billing, Equal Credit Opportunity, Fair Credit Reporting, and Consumer
Leasing. In addition, the Board may place before
the Council any other consumer-related matters,
including matters related to its responsibilities
under the Home Mortgage Disclosure Act and the
Federal Trade Commission Improvement Act's
provisions concerning unfair and deceptive practices in banking.
977
ter, New York, and an M.A. from International
University of Rome, and is currently a candidate
for a doctorate from the University of Southern
California.
In addition, the Board has announced the following official staff promotions, all effective October 24, 1976:
Griffith L. Garwood from Assistant Secretary
to Deputy Secretary in the Office of the Secretary.
John H. Kalchbrenner from Adviser to Associate Director in the Division of Research and
Statistics.
J. Cortland G. Peret from Assistant Adviser to
Associate Adviser in the Division of Research and
Statistics.
Eleanor Stockwell from Associate Adviser to
Adviser in the Division of Research and Statistics.
CHANGES IN BOARD STAFF
The Board of Governors has announced the appointment of David L. Shannon, Director of Personnel at the Federal Trade Commission, as
Director, Division of Personnel, effective November 15, 1976.
Mr. Shannon has been on the staff of the FTC
since 1968, prior to which he was associated with
Western Specialists, Inc., Denver, Colorado. He
holds a B.A. from St. Bernard's College, Roches-
SYSTEM MEMBERSHIP:
Admission of State Bank
The following bank was admitted to membership
in the Federal Reserve System during the period
October 16, 1976, through November 15, 1976:
Texas
Snook
First Bank of Snook
978
Industrial Production
Released
for publication
November
15
Industrial production declined by an estimated 0.5
per cent in October to 130.4 per cent of the 1967
average. The September estimate was revised
downward and now shows a decline of 0.2 per
cent, rather than no change. In October, reductions
occurred in output of final products and materials.
These reductions include the effects of strikes in
the farm equipment and automotive industries; the
direct strike effect is estimated to have accounted
for somewhat less than one-third of the October
decline.
Consumer goods production declined 0.7 per
cent last month, reflecting widespread cutbacks in
both durable and nondurable goods. Auto assemblies, at a 7.7-million-unit annual rate, were about
unchanged from September, but utility vehicle
production apparently declined somewhat further.
Output of home goods, such as appliances, carpeting, and furniture, was reduced somewhat.
Production of nondurable consumer goods, particularly clothing, also decreased. Business equipment declined by more than 1 per cent, largely
because of strike effects on farm equipment output
and, to a lesser extent, on building and mining
equipment. Output of construction supplies is estimated to have risen slightly .
Durable materials production is estimated to
have been reduced somewhat in October, reflecting weakness in production of steel and other
metals as well as in component parts for consumer
durable goods. Output of nondurable materials
declined sharply, reflecting reductions in textiles,
paper, and chemicals.
F.R. indexes, seasonally adjusted. Latest figures: October.
*Auto sales and stocks include imports.
Seasonally adjusted, 1967 == 100
Per cent changes from—
1976
Industrial production
Total
Products, total
Final products
Consumer goods
Durable goods
Nondurable goods
Business equipment
Intermediate products
Construction supplies
Materials
p
Preliminary.
e
July
Aug.
Sept. p
Oct. e
Month
ago
130.7
131.3
131.0
130.4
-.5
6.7
1.2
129.8
127.6
136.8
141.8
134.8
136.9
137.6
133.1
132.2
130.4
128.3
137.5
144.1
135.0
137.5
138.1
134.0
132.9
129.7
127.2
136.1
138.7
135.0
137.4
139.0
134.8
132.9
129.2
126.5
135.2
136.3
134.7
135.9
139.0
135.0
132.3
-.4
-.6
-.7
-1.7
-.2
-1.1
.0
.1
-.5
5.6
4.6
5.1
3.3
5.7
5.5
8.6
10.0
8.4
.9
.5
-.2
-.9
.1
2.0
2.2
2.9
1.8
Estimated.
Year
ago
Q2 to
Q3
Al
Financial and Business Statistics
CONTENTS
INSIDE BACK COVER
Guide to Tabular Presentation
Statistical Releases: Reference
U.S. STATISTICS
A2
A9
A10
All
A12
A13
A14
A18
A23
A24
A25
A25
Member bank reserves, Reserve Bank
credit, and related items
Federal funds—Money market banks
Reserve Bank interest rates
Reserve requirements
Maximum interest rates; margin
requirements
Open market account
Federal Reserve Banks
Bank debits
Money stock
Bank reserves; bank credit
Commercial banks, by classes
Weekly reporting banks
Business loans of banks
Demand deposit ownership
Loan sales by banks
Open market paper
A26
A29
A29
A30
Interest rates
Security markets
Stock market credit
Savings institutions
A5
A6
Al
AS
A32
A34
A37
A38
A40
A42
A45
Federal finance
U.S. Government securities
Federally sponsored credit agencies
Security issues
Business finance
Real estate credit
Consumer credit
A48
A50
A50
A52
Industrial production
Business activity
Construction
Labor force, employment, and
unemployment
A53
A53
A54
A56
Consumer prices
Wholesale prices
National product and income
Flow of funds
INTERNATIONAL STATISTICS
A58
A59
A59
A60
A61
A74
A75
A75
U.S. balance of payments
Foreign trade
U.S. reserve assets
Gold reserves of central banks and
governments
International capital transactions
of the United States
Open market rates
Central bank rates
Foreign exchange rates
A82 INDEX TO STATISTICAL TABLES
A2
BANK RESERVES AND RELATED ITEMS • NOVEMBER 1976
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In millions of dollars)
Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date
U.S. Govt, securitiesi
Total
Bought
outright 2
Held
under
repurchase
agreement
Loans
Gold
stock
Special
Drawing
Rights
certificate
account
Treasury
currency
outstanding
Float
Other
F.R.
assets
Total 3
3.235
3,570
3,905
3.479
3,414
2,734
2,204
1,032
982
1,138
1,079
3,129
64,100
66,708
74,255
76,851
85,642
93,967
10,367
11,105
10,132
10,410
11,567
11,630
400
400
400
400
400
6,841
7,145
7,611
8,293
8,668
9,179
Averages of daily figures
1,086
1969—De c
1970—De c
1971—De c
1972—De c
1973—De c
1974—De c
57,500
61,688
69,158
71,094
79,701
86,679
57,295
61,310
68,868
70,790
78,833
85,202
205
378
290
304
868
1,477
1975—Oct
Nov
Dec
90,476
90,934
92,108
89,547
89,560
91,225
929
1,374
883
191
127
1,945
2.480
3,029
3,521
3,481
3,534
96,931
97,817
99,651
11,599
11,599
11,599
500
500
500
9,877
10,010
10,094
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.?
92,998
94,610
94,880
93,243
95,967
95,592
97,105
98,458
98,797
100,374
91,524
92,812
93,503
92,187
94,049
94,289
96,210
96,058
96,689
98,643
1,474
1,798
1,377
1,056
1,918
1,303
895
2,400
1,731
79
76
58
44
121
120
123
104
75
67
2,684
2,375
2,204
2.236
2,071
2,678
2,721
2,512
2,880
2,804
3,505
3,384
3,412
4,144
4,051
4,069
4,375
3,739
3,681
3,744
100,172
101,369
101,336
100,317
102,951
103,106
104,799
105,393
105,880
107,312
11,599
11,599
11,599
11,599
11,599
11,598
11,598
11,598
11,598
11,598
500
500
500
500
500
530
700
700
703
,123
10,177
10,267
10,436
10,501
10,552
10,623
10,648
10,690
10,737
10,785
98,096
94,828
97,336
101,312
95,387
94,828
95,714
96,996
2,709
157
1,622
4,316
85
68
2,450
2,513
2,754
2,274
4,020
4,239
3,587
3,388
105,395
102,015
104,231
107,745
11,598
11,598
11,598
11,598
700
700
700
700
10,658
10,681
10,695
10,698
100,655
97,388
93,935
99,629
103,069
97,203
97,277
93,935
97,086
98,252
3,452
111
2,543
4,817
93
45
61
44
87
2,573
2,441
3,467
3,131
2,414
657
505
709
693
675
107,748
103,645
101,426
107,046
109,848
11,598
11,598
11,598
11,598
11,598
700
700
700
700
700
10,702
10,720
10,735
10,741
10,753
102,173
98,375
100,173
4,465
1,176
1,113
101
47
47
3,873
3,710
3,643
510
2,582
109,436
105,014
107,603
3,750
107,096
11,598
11,598
11,598
11,598
800
1,200
120
2,657
2,596
3,493
100,433
97,708
97,199
99,060
99,923
10,760
10,782
10,786
100,949
103,507
102,675
96,660
98,405
100,035
4,289
5,102
2,640
64
322
45
1,984
2,997
1,925
3,665
3,800
3,770
107,470
111,464
108,752
11,598
11,598
11,598
800
1,200
700
10,645
10,742
10,810
100,262
92,795
101,719
100,787
95,341
92,795
96,220
97,607
4,921
770
599
286
73
3,596
3,367
3,825
3,300
4,088
4,209
3,105
4,041
109,515
101,270
109,619
108,750
11,598
11,598
11,598
11,598
700
700
700
700
10,667
10,692
10,698
10,698
102,282
97,098
94,006
101,363
106,276
96.408
96,320
94,006
98.409
98,076
5,874
778
3,186
2,844
4,283
3,341
2,811
4,528
3,622
3,587
3,669
3,749
111,135
103,925
2,954
8,200
271
40
167
52
326
108,851
113,881
11,598
11,598
11,598
11,598
11,598
700
700
700
700
700
10,715
10,733
10,738
10,750
10,757
94,152
104,330
102,741
101,026
92,262
99,169
100,235
99,426
1,890
5,161
2,506
1,600
56
54
82
569
3,808
4,020
3,757
2,372
3,874
3,629
4,002
3,719
102,270
112,550
110,893
107,912
11,598
11,598
11,598
11,598
800
1,200
1,200
10,775
10,783
10,789
10,804
2,108
321
107
1,049
1,298
703
61
Week ending—
1976—Aug.
4
IS.'.'.'.'.'.'.'.'.'.'.
25
Sept.
1
8
15
22
29
Oct.
6
13
20*
27 P
122
1,200
1,200
10,798
Daily figures for—
End of month
1976—Aug
Sept
Oct.?
Wednesday
1976—Aug.
4
25
Sept.
1
8
15
22
29
Oct.
6
13
20*
27P
5 ] 499
3,180
1
Includes Federal agency issues held under repurchase agreements
beginning Dec. 1, 1966, and Federal agency issues bought outright beginning Sept. 29, 1971.
2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S.
Govt, securities pledged with F.R. Banks—and excludes (if any) securities
sold and scheduled to be bought back under matched sale-purchase
transactions.
102,288
1,200
3 Includes acceptances. For holdings of acceptances on Wed. and endof-month dates, see p. A-10.
4
Beginning July 1973, this item includes certain deposits of domestic
nonmember banks and foreign-owned banking institutions held with
member banks and redeposited in full with F.R. Banks in connection
Notes continued on opposite page.
NOVEMBER 1976 • BANK RESERVES AND RELATED ITEMS
A3
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS-Continued
(In millions of dollars)
Factors absorbing reserve funds
Currency
in
circulation
Treasury
cash
holdings
Deposits, other
than member bank
reserves
with F.R. Banks
Treasury
Foreign
Other 4
Other
F.R.
liabilities
and
capital
Member bank
reserves
Period or date
With
F.R.
Banks
Currency
and
coin 5
Total «
Averages of daily figures
53,591
57,013
61,060
66,060
71,646
78,951
656
427
453
350
323
220
1,194
849
1,926
1,449
1,892
1,741
146
145
290
272
406
357
458
735
728
631
717
874
2,192
2,265
2,287
2,362
2,942
3,266
23,071
23,925
25,653
24,830
28,352
29,767
4,960
5,340
5,676
6,095
6,635
7,174
28,031
29,265
31,329
31,353
35,068
36,941
82,215
83,740
85,810
387
415
452
4,940
4,333
3,955
271
297
259
632
649
906
3,208
3,276
3,247
27,254
27,215
27,215
7,313
7,356
7,773
34,567
34,571
34,989
84,625
84,002
85,014
86,565
87,389
88,547
89,423
89,548
89,863
90,320
496
527
511
524
507
510
469
454
442
481
5,903
8,811
7,653
5,211
7,215
6,778
7,404
7,797
8,270
9,199
287
280
264
254
286
252
262
275
249
266
916
716
810
815
655
784
945
979
1,071
1,012
3,225
3,231
3,252
3,203
3,314
3,275
3,310
3,326
3,315
3,372
26,995
26,168
26,366
26,345
26,236
25,711
25,933
26,001
25,708
26,169
8,445
7,646
7,456
7,568
7,838
7,903
8,064
7,989
8,113
8,028
35,575
33,953
33,967
34,063
34,228
33,774
34,146
34,141
33,979
34,346
89,226
89,759
89,897
89,484
443
439
436
432
7,623
5,416
6,067
10,135
288
224
352
240
1,023
934
909
943
3,398
3,136
3,253
3,394
26,351
25,088
26,311
26,111
8,190
8,324
7,946
7,556
34,691
33,562
34,408
33,818
89,273
89,917
90,355
89,848
89,402
423
419
410
460
474
10,126
6,735
3,768
9,316
12,303
259
267
262
229
220
1,245
1,062
1,197
953
914
3,538
3,095
3,206
3,371
3,529
25,884
25,168
25,261
25,908
26,057
8,017
8,242
8,414
7,428
8,360
34,052
33,564
33,835
33,496
34,577
89,738
90,633
90,544
90,218
499
500
491
457
11,633
7,811
8,399
9,093
273
237
291
243
1,039
1,020
1,010
1,018
3,383
3,212
3,318
3,450
26,028
25,180
27,135
26,214
8,258
8,466
7,429
7,850
34,433
33,800
34,710
34,210
1969—Dec.
1970—Dec.
1971—Dec.
1976—Jan.
Feb.
Sept.
Week ending—
1976—Aug.
4
11
18
25
Sept. 1
8
15
22
29
13
20*
27*
Daily figures for—
End of month
89,494
89,549
90,371
412
496
446
10,795
13,296
10,238
254
393
362
962
1,024
953
3,716
3,625
3,615
24,782
26,220
26,374
8,017
8,258
8,277
32,950
34,626
34,806
89,662
90,181
89,961
89,513
427
431
419
419
5,856
4,666
9,323
10,167
264
199
222
219
1,063
921
815
1,873
3,145
3,136
3,390
3,512
32,062
24,726
28,485
26,043
8,190
8,324
7,946
7,556
40,402
33,200
36,582
33,750
11
18
25
89,683
90,590
90,349
89,785
89,690
412
416
414
466
504
9,959
3,421
5,684
10,841
12,212
216
292
327
230
245
2,227
967
1,112
877
920
3,410
3,123
3,283
3,363
3,649
28,241
28,148
24,155
26,337
29,716
8,017
8,242
8,414
7,428
8,360
36,409
36,544
32,729
33,925
38,236
8
15
90,427
91,007
90,557
90,508
499
504
460
450
7,496
9,128
8,076
9,448
252
280
256
251
898
1,171
1,546
954
3,030
3,285
3,397
3,482
22,842
30,755
30,188
26,421
8,258
8,466
7,429
7,850
31,247
39,375
37,763
34,417
Wednesday
with voluntary participation by nonmember institutions in the F.R. System's program of credit restraint.
As of Dec. 12, 1974, the amount of voluntary nonmember bank and
foreign-agency and branch deposits at F.R. Banks that are associated
with marginal reserves are no longer reported. However, two amounts are
reported: (1) deposits voluntarily held as reserves by agencies and branches
of foreign banks operating in the United States; and (2) Euro-dollar
liabilities.
5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning Jan. 1963, figures are estimated except weekly
averages. Beginning Sept. 12, 1968, amount is based on close-of-business
figures for reserve period 2 weeks previous to report date.
6 Beginning with week ending Nov. 15, 1972, includes $450 million of
13
27*
reserve deficiencies on which F.R. Banks were allowed to waive penalties
for transition period associated with bank adaptation to Regulation J,
as amended effective Nov. 9, 1972. For 1973, allowable deficiencies included are (beginning with first statement week of quarter): Q1, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. For 1974,
Ql, $67 million, Q2, $58 million. Transition period ended after 1974, Q2.
Beginning with week ending Nov. 19, 1975, adjusted to include waivers
of penalties for reserve deficiencies in accordance with Board policy,
effective Nov. 19, 1975, of permitting transitional relief on a graduated
basis over a 24-month period when a nonmember bank merges into an
existing member bank, or when a nonmember bank joins the Federal
Reserve System.
For other notes see opposite page.
A4
BANK RESERVES AND RELATED ITEMS • NOVEMBER 1976
RESERVES A N D BORROWINGS OF M E M B E R
BANKS
(In millions of dollars)
Large banks 2
All member banks
All other banks
Borrowings
Period
Total
held 1
Required
Excess1
Total
New York City
Seasonal
Excess
City of Chicago
Borrowings
Other
Borrowings
Excess
Borrowings
Excess
Borrowings
1965—Dec
22,719
22,267
452
454
41
111
15
23
67
228
330
92
1967—De c
1968—De c
1969—De c
1970—De c
1971—De c
25,260
27,221
28,031
29,265
31,329
24,915
26,766
27,774
28,993
31,164
345
455
257
272
165
238
765
1,086
321
107
18
100
56
34
25
40
230
259
25
35
15
18
7
1
13
85
27
4
8
50
90
6
42
-35
105
270
479
264
22
267
250
177
189
174
80
180
321
28
42
1972—De c
1973—De c
1974—De c
31,353
35,068
36,941
31,134
34,806
36,602
219
262
339
1,049
1,298
703
301
74
13
43
5
55
28
-42
28
39
429
761
323
-160
133
163
264
435
282
1975—Oc t
Nov
Dec
34,567
34,571
34,989
34,411
34,281
34,727
156
290
262
127
31
7
63
-23
34
3
42
89
32
5
26
134
164
127
128
49
38
1976—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept2
Oct. *
35,575
33,953
33,967
34,063
34,228
33,774
34,146
34,141
33,979
34,346
35,366
33,939
33,531
33,974
33,846
33,657
34,076
33,844
33,692
34,115
209
14
436
89
382
117
70
297
287
231
3
-2
108
-47
297
-125
-27
61
63
-188
13
16
14
15
33
22
11
20
3
16
172
177
115
138
141
129
156
119
162
111
40
39
21
21
57
65
62
50
47
48
35,444
34,260
34,654
34.576
34,715
34,982
34,284
34,358
34,577
34,437
462
-24
296
147
-52
94
-35
33
304
51
12
22
7
164
127
178
60
128
277
188
121
113
87
28
33,587
33,762
34,447
34,384
17
-15
41
-43
4
32
2
26
135
151
115
112
20
14
20
28
5
12
19
26
216
-112
80
10
2
34
32
154
119
139
91
27
16
42
51
2
9
244
-153
210
-134
213
79
5
11
45
24
164
138
175
90
180
149
35
38
58
127
57
22
24
-20
52
1
3
10
33
173
126
141
115
104
38
49
63
24
2
113
-53
13
64
16
18
37
15
184
129
184
71
55
39
46
53
14
81
-6
60
-26
41
6
1
6
1
6
160
167
157
98
136
57
44
41
43
50
93
-15
-259
-136
6
3
6
60
181
156
83
71
63
44
41
47
191
61
79
76
58
44
121
120
41
32
-20
-23
132
65
28
13
42
50
64
9
52
-147
177
2
13
22
-41
58
64
-77
11
8
11
11
20
80
9
20
21
29
26
37
28
22
18
-18
-18
-14
36
-4
-69
91
123
104
75
67
24
28
31
32
73
74
65
63
60
149
-83
-9
-8
278
581
239
172
232
94
33,464
33,589
34,317
34,272
123
173
130
112
24
61
40
54
11
-13
29
-4
16
35,296
33,720
34,136
33,597
34,855
33,753
33,891
33,519
441
-33
245
78
30
55
122
136
11
11
12
65
-43
40
-53
33,372
33,197
33,400
33,774
34,341
453
-70
571
525
242
93
49
165
165
17
14
23
30
33,825
33,127
33,971
33,594
34,866
21
28
7
14
21
28
34,521
33,919
34,420
34,219
33,959
33,890
34,192
34,187
562
29
228
32
126
176
59
159
26
23
23
27
-129
63
- 6
34,691
33,562
34,408
33,818
34,255
33,598
34,071
33,700
436
-36
337
118
157
122
85
86
-74
119
86
41
53
-38
68
22
26
27
29
34,052
33,564
33,835
33,496
34.577
33,762
33,291
33,576
33,454
34,378
290
273
259
42
199
93
45
61
44
87
32
29
28
31
34
45
30
34,433
33,800
34,710
34,210
34,099
33.588
34.589
34,064
334
212
121
146
101
47
47
120
35
32
29
33
-18
59
-2
-10
Week ending—
1975—Oct.
1
8
15
22
29
1976—Apr.
7
14
21
May
June
16
July
Aug.
4
IS!"!'.!
25
Sept.
1
8
15
22
29
Oct.
6
13
20?
27*
-180
10
10
11
9
16
1
Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week of quarter): Ql, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning
1974, Ql, $67 million; Q2, $58 million. Transition period ended after
second quarter, 1974. For weeks for which figures are preliminary, figures
by class of bank do not add to the total because adjusted data by class are
not available.
Beginning with week ending Nov. 19, 1975, adjusted to include waivers
of penalties for reserve deficiencies in accordance with Board policy,
effective Nov. 19, 1975, of permitting transitional relief on a graduated
basis over a 24-month period when a nonmember bank merges into an
102
2
-16
39
97
33
-18
15
-16
8
-22
27
6
3
34
40
53
3
-14
30
-42
36
-15
-13
95
62
14
-30
37
60
118
-106
317
-93
50
-28
88
-22
82
62
68
19
21
5
4
30
-20
-26
-10
-4
32
51
48
-96
9
23
-36
1
-161
13
existing member bank, or when a nonmember bank joins the Federal
Reserve
System.
2
Beginning Nov. 9, 1972, designation of banks as reserve city banks
for reserve-requirement purposes has been based on size of bank (net
demand deposits of more than $400 million), as described in the BULLETIN
for July 1972, p. 626. Categories shown here as "Large" and "All other"
parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
NOTE.—Monthly and weekly data are averages of daily figures within
the month or week, respectively.
Borrowings at F. R. Banks: Based on closing figures.
Effective Apr. 19, 1973, the Board's Regulation A, which governs lending by F.R. Banks, was revised to assist smaller member banks to meet
the seasonal borrowing needs of their communities.
NOVEMBER 1976 • MONEY MARKET BANKS
A5
BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions of dollars, except as noted)
Net surplus, or
deficit ( - )
Less—
Reporting banks
and
week ending—
Excess
reserves 1
Borrowings
at F.R.
Banks
Related transactions with
U.S. Govt, securities dealers
Interbank Federal funds transactions
Basic reserve position
Per cent
Net
of
interavg.
bank Amount
required
Federal
reserves
funds
trans.
Net transactions
Gross transactions
Purchases
Sales
Total
two-way
transactions 2
Purchases
of net
buying
banks
Sales
of net
selling
banks
Loans
to
dealers 3
Borrowings
from 4
dealers
Total—46 banks
1976—Sept.
Oct.
1
8
15
22
29
6
13
20
27
151
120
179
-9
56
155
197
-3
11
13,301
16,843
17,798
14,964
13,114
-13,180
-16,723
-17,633
-14,973
-13,094
89.8
115.6
119.9
104.4
87.7
20,840
24,246
23,809
21,509
20,643
7,539
7,404
6,011
6,545
7,529
4,621
4,548
4,160
4,537
4,176
16,219
19,698
19,648
16,971
16,468
2,918
2,855
1,851
2,008
3,354
2,617
3,728
4,916
3,220
2,298
15,877
19,748
16,640
15,528
-15,755
-19,551
-16,647
-15,587
106.6
134.3
109.2
107.2
22,846
26,142
23,506
22,387
6,969
6,394
6,866
6,859
4,636
4,964
4,803
4,975
18,211
21,178
18,703
17,413
2,335
1,430
2,063
1,884
3,683
4,297
3,240
3,308
5,192
7,180
6.109
4,519
5,323
-5,165
-7,075
-5,965
-4,498
-5,357
87.7
123.1
102.7
80.3
90.8
5,881
7,726
6,558
5,230
6,080
688
547
448
711
758
689
546
448
711
758
5,192
7,180
6.109
4,519
5,323
1,885
2,290
2,230
1,968
1,400
6,741
8,019
5,829
5.110
-6,718
-7,911
-5,813
-5,098
114.9
139.0
96.1
91.6
7,225
8,361
6,529
5,983
484
343
700
873
484
342
700
873
6,741
8,019
5,829
5.110
1,998
1,930
2,120
2,157
11,688 -11,668
8,109
9,663
-8,016
-9,647
10,445 -10,474
7,791 - 7 , 7 3 7
91.2
110.6
131.2
119.8
85.7
14,959
16,520
17,251
16,279
14,563
6,850
6,857
5,563
5,834
6,772
3,932
4,002
3,712
3,826
3,418
11,027
12,518
13,539
12,453
11,145
2,918
2,855
1,851
2,008
3,354
732
1,439
2,686
1,251
898
9,136 - 9 , 0 3 7
11,729 -11,640
10,811 -10,835
10,418 -10,489
101.2
131.2
117.9
116.9
15,621
17,781
16,977
16,404
6,485
6,051
6,166
5,986
4,152
4,621
4,103
4,102
11,470
13,159
12,874
12,302
2,335
1,430
2,063
1,884
1,685
2,367
1,119
1,151
8 in New York City
1976—Sept.
Oct.
1
8
15
22
29
6
13
58
104
144
30
21
-4
55
20
108
16
27
13
38 outside
New York City
1976—Sept.
Oct.
1..
8..
15..
22..
29..
93
15
35
-30
6.
13.
100
89
-19
27.
- 2
20.
60
5 in City of Chicago
1976—Sept.
1.
8.
15.
22.
Oct.
1
29.
37
6.
13.
29
37
-5
20.
27.
-1
14
13
5,458
6,234
6,420
5,834
5,204
-5,440
-6,198
-6,435
-5,833
-5,167
361.9
423.4
405.9
390.6
345.3
6,200
6,851
6,973
6,475
5,854
743
618
553
641
650
716
553
641
650
5,485
6,234
6,420
5,834
5,204
227
480
674
422
272
5,557
6,513
6,076
5,982
-5,528
-6,477
-6,081
-5,996
369.7
429.4
388.9
388.9
7,113
6,737
6,646
6,160
603
600
662
663
603
599
662
663
5,556
6,514
6,076
5,983
307
352
340
292
2,651
3,429
5,268
4,611
2,587
-2,576
-3,450
-5,233
-4,641
-2,570
35.4
47.5
71.6
64.0
34.1
8,759
9,669
10,278
9,804
8,709
6,239
5,010
5,193
6,108
6,121
3,217
3 384
3,159
3,185
2,768
5,542
6,284
7,119
6,619
5,941
2,891
2,855
1,851
2,008
3,354
505
959
2,012
830
626
3,580
5,216
4,735
4,436
-3,509
-5,164
-4,754
-4,493
47.2
70.1
62.3
60.4
9,462
10,668
10,240
9,758
5,882
5,452
5,504
5,323
3,549
4,022
3,441
3,439
5,913
6,646
6,798
6,320
2,335
1,430
2,063
1,884
1,378
2,014
780
859
618
33 others
1976—Sept.
1...
8...
15...
22..,
29...
Oct.
6..,
13..
20..
27..
76
-21
35
-30
23
72
52
-14
-1
1
Based upon reserve balances, including all adjustments applicable to
the reporting period. Prior to Sept. 25, 1968, carryover reserve deficiencies,
if any, were deducted. Excess reserves for later periods are net of all carryover reserves. Beginning with week ending Jan. 7, 1976, adjusted to
include waivers of penalties for reserve deficiencies in accordance with
Board policy change effective Nov. 19, 1975.
2
Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's weekly average purchases
and sales are offsetting.
3
Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases of securities from dealers
subject
to resale), or other lending arrangements.
4
Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
NOTE.—Weekly averages of daily figures. For description of series
and back data, see Aug. 1964 BULLETIN, pp. 944-74. Revised data for
Jan. 1976 may be obtained from the Public Information Office, Office of
the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
A6
F.R. BANK INTEREST RATES • NOVEMBER 1976
CURRENT RATES
(Per cent per annum)
Loans to member banks—
Under Sec. 10(b) 2
Under Sees. 13 and 13ai
Federal Reserve
Bank
Regular rate
Loans to all others under
last par. Sec. 134
Special rate 3
Rate on
10/31/76
Effective
date
Previous
rate
Rate on
10/31/76
Effective
date
Previous
rate
Rate on
10/31/76
Effective
date 3
Previous
rate
Rate on
10/31/76
Effective
date
Previous
rate
5*4
5 *4
5 *4
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
9/7
1/19/76
1/19/76
1/19/76
6%
6*4
6%
6%
61/4
61/4
6*4
6*4
6*4
6*4
6*4
6*4
6*4
6*4
6*4
6*4
6*4
6%
6*4
6*4
6*4
6*4
6*4
6*4
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76
7
7
7
7
7
7
7
7
7
7
7
7
8*4
8*4
8*4
8*4
8*4
8*4
8*4
8*4
81/4
81/2
81/4
8%
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76
9
9
9
9
9
9
9
9
9
9
9
9
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
5'ft
5iA
5*4
5*4
5*4
5%
5*4
5%
!<! §
1 Discounts of eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase.
2 Advances secured to the satisfaction of the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the Section 13 rate.
3 Applicable to special advances described in Section 201.2(e)(2) of
Regulation
A.
4
Advances to individuals, partnerships, or corporations other than
member banks secured' by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof.
SUMMARY OF EARLIER CHANGES
(Per cent per annum)
Effective
date
In effect Dec. 31, 1955
1956—Apr.
Aug.
1957—Aug.
Nov.
Dec.
2
1958—Jan. 22
Mar.
7
13
Apr.
May
Aug. 15
Sept. 12
23
Oct.
Nov.
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
Effective
date
May 29
June 12
Sept. 11
18
1960—June
10
Aug.
Sept.
1963—July 17
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
434-5
434
4*4-434
4*4-434
4*4
5
434
434
4*4
4*4
5
-5*4
51/2
5*4-534
534
534-6
6
6 -6*4
6*4
7
7 -7*4
71/2
5
5*4
5V4
514
534
6
6
6*4
6*4
7
7*4
7*4
1974—Apr. 25
30
Dec. 9
16
7*4-8
8
734-8
734
8
8
734
73/4
1975—Jan.
7*4-734
71/4-73/4
714
634-714
634
614-634
61/4
6 -61/4
734
71/4
714
634
63/4
61/4
61/4
6
5
5
1976—Jan. 19
23
5*4-6
5*4
5*4
5*4
5
5
In effect, Oct. 31, 1976
5*4
5*4
2*4
2*4
1964—Nov. 24,
30,
3*4-4
4
4
4
234
23/4
3
3
1965—Dec.
41/2
3 -3*4
3*4
3 -3*4
3
3
3*4
3
3
4 - 4 *4
4 *4
4 -41/2
4
4 -41/2
4 *4
4*4-5
234-3
234-3
214-3
2*4-234
214
1^-21/4
3
3
23/4
214
21/4
214
1%
1*4-2
l34-2
2
2 -2*4
21/2
2
2
2
1A
6,
13.
1967—Apr. 7,
14.
Nov. 20.
27.
1968—Mar. 15,
22,
Apr. 19,
26,
Aug. 16,
30,
Dec. 18,
20.
iy4
13/4 1969—Apr. 4,
2*4
8,
1970—Nov. 11.
13,
2*4-3
3
3 -3*4
31/2
31/2-4
4
3*4-4
3*4-4
3*4
3 -3*4
3
3 -31/2
31/2
3
3
3*4
3 *4
4
4
4
3V4
3*4
3
3
3V4
3*4
Dec.
1
4.
11,
1971—Jan.
8,
15.
19.
22.
29,
Feb. 13
19
July 16
23
NOTE.—Rates under Sees. 13 and 13a (as described in table and notes
above). For description and earlier data, see Section 12 of Banking and
F.R.
Bank
of
N.Y.
2*4-3
234-3
234-3
3
16,
1959—Mar.
Range
(or level)—
All F.R.
Banks
5 -51/2
5*4
51/4-5*4
5*4
51/4-5*4
5V4
5*4-6
6
5%-6
53/4-6
53/4
5^-534
5%
51/4-5 %
5%
5
5
-514
-5%
43^-5
4*A
43/4-5
5
4 *4
4
4
4*4
4*4
4%
5
5%
5%
51/2
514
5%
5*4
6
6
6
53/4
534
5*4
51/2
18
3*
434
Effective
date
1971—Nov. 11
19
Dec. 13
17
24
1973—Jan. 15
Feb. 26
Mar. 2
Apr. 23
May 4
11
18
15
July 2
Aug. 14
23
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
5
6
Monetary Statistics, 1914-41, and Banking and Monetary
1941-1970.
6
Statistics,
NOVEMBER 1976 • RESERVE REQUIREMENTS
A7
RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS
(Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.)
Net demand
Effective
date i
Time 3
(all classes of banks)
Other
Reserve city
In effect
Jan. 1, 1963
Over 5
0-5
0-5
12
16%
Over 5
4
1S»
12
12%
17
17%
16%
17
Other time
Savings
Over 5
0-5
1966—July 14,21
Sept. 8,15
1967—Mar. 2
Mar. 16
1968—Jan. 11,18
1969—Apr. 17
1970—Oct. 1
2
4
4
3%
3
3*
5
6
5
Beginning Nov. 9, 1972
Time 3
Net demand 2,4
Other time
Effective
date
0-2
2-10
10-100
100400
Over
400
Savings
*-
0-5, maturing in—
180
days to 4 years
4 years or more
30-179
days
1972—Nov. 9
Nov. 16
8
1973—July 19
10
12
10%
10
6
16%
13
17%
12%
13%
18
12
13
1974 Dec. 12
1975—Feb. 13
Oct. 30
73
7%
10
12
13
16%
3
3
8
2%
3
8
2%
Net demand deposits, reserve city banks
Net demand deposits, other banks
Time deposits
4 years
or more
75
8 1
3
Present legal limits:
1 When two dates are shown, the first applies to the change at reserve
city banks and the second to the change at country banks. For changes
prior
to 1963 see Board's Annual Reports.
2
(a) Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand
balances due from domestic banks.
(b) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank.
(c) Since Oct. 16, 1969, member banks have been required under
Regulation M to maintain reserves against foreign branch deposits
computed on the basis of net balances due from domestic offices to their
foreign branches and against foreign branch loans to U.S. residents.
Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident
have been excluded from computations, as have total loans of a bank to
U.S. residents if not exceeding $ 1 million. Regulation D imposes a similar
reserve requirement on borrowings from foreign banks by domestic offices
of a member bank. The reserve percentage applicable to each of these
classifications is 4 per cent. The requirement was 10 per cent originally,
was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent
effective June 21, 1973, and was reduced to the current 4 per cent effective
May 22, 1975. Initially certain base amounts were exempted in the computation of the requirements, but effective Mar. 14, 1974, the last of these
reserve-free bases were eliminated. For details, see Regulations D and M.
3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
Beginning Nov. 10, 1975, profitmaking businesses may maintain savings
deposits of $150,000 or less at member banks. For details of 1975 action,
see Regulations D and Q.
Notes
2(b) and 2(c) above are also relevant to time deposits.
4
Effective Nov. 9, 1972, a new criterion was adopted to designate reserve cities, and on the same date requirements for reserves against net
demand deposits of member banks were restructured to provide that each
member bank will maintain reserves related to the size of its net demand
180
days to
4 years
3
6
16%
1976—Jan. 8
In effect Oct. 31, 1976,, .
30-179
days
73
17%
7%
Over 5 5 , maturing in—
8 1
3
8 2%
8 1
6
8 1
8 2%
Minimum
Maximum
10
7
3
22
14
10
deposits. The new reserve city designations are as follows: A bank having
net demand deposits of more than $400 million is considered to have the
character of business of a reserve city bank, and the presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are F.R. Banks or branches are also
reserve cities. Any banks having net demand deposits 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 Regulation D and appropriate supplements and amendments.
5
A marginal reserve requirement was in effect between June 21, 1973,
and Dec. 11,1974, against increases in the aggregate of the following types
of obligations: (a) outstanding time deposits of $100,000 or more, (b)
outstanding funds obtained by the bank through issuance by a bank's
affiliate of obligations subject to existing reserve requirements on time
deposits, and (c) beginning July 12, 1973, funds from sales of finance bills.
The requirement applied to balances above a specified base, but was not
applicable to banks having obligations of these types aggregating less
than $10 million. For details, including percentages and maturity classifications, see "Announcements" in BULLETINS for May, July, Sept., and
Dec. 1973 and Sept. and Nov. 1974.
6 The 16% per cent requirement applied for one week, only to former
reserve city banks. For other banks, the 13 per cent requirement was
continued in this deposit interval.
7 See columns above for earliest effective date of this rate.
8
The average of reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law. For details, see Regulation D.
* Negotiable orders of withdrawal (NOW) accounts are subject to the
same reserve requirements as savings deposits.
NOTE.—Required reserves must be held in the form of deposits with
F.R. Banks or vault cash.
A8
MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • NOVEMBER 1976
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
Rates beginning July 1, 1973
Rates July 20, 1966—June 30, 1973
Effective date
July 20,
1966
Type and size
of deposit
Sept. 26,
1966
Effective date
Apr. 19,
1968
Jan. 21,
1970
Type and size
of deposit
4%
Savings deposits
Other time deposits (multipleand single-maturity):1, 2
Less than $100,000:
30-89 days
90 days to 1 year
1-2% years
2l/i years or more
Minimum denomination
of$1,000:4
4-6 years
6 years or more
Governmental units
$100,000 or more
Savings deposits
Other time deposits:12
Multiple maturity:
30-89 days
5
5%
5
5
5%
5V4
5%
30-59 days
60-89 days
90-179 days
5%
180 days to 1 year
1 year or more...
1
4%
4
90 days to 1 year.
1-2 years
2 years or more..,
Single-maturity:
Less than $100,000:
30 days to 1 year.
1-2 years
2 years or more..
$100,000 or more:
5V2
( )
(3)
(3)
(3)
(3)
5%
5y4
3
6
6V4
For exceptions with respect to certain foreign time deposits, see
BULLETIN f o r F e b . 1 9 6 8 , p . 1 6 7 .
2
Multiple-maturity time deposits include deposits that are automatically renewable at maturity without action by the depositor and deposits
that are payable after written notice of withdrawal.
3 Maximum rates on all single-maturity time deposits in denominations
of $100,000 or more have been suspended. Rates that were effective
Jan. 21, 1970, and the dates when they were suspended are:
6 per centl
6 Vi per cent f
6% per cent |
7 per cent >
7 VI per cent J
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more
June 24, 1970
May 16, 1973
Rates on multiple-maturity time deposits in denominations of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturity deposits was eliminated.
4 Effective Dec. 4, 1975, the $1,000 minimum denomination does not
apply to time deposits representing funds contributed to an Individual
Retirement Account established pursuant to 26 U.S.C. (I.R.C. 1954) §408.
5 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000.
The amount of such certificates that a bank could issue was limited to
July 1,
1973
5
5%
6%
6
(5)
(6)
(3)
Nov. 1,
1973
Nov. 27,
1974
5
5%
6
6%
m
(6)
(3>
For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
Ending
date
1937--Nov.
1945--Feb.
July
1946--Jan.
1947--Feb.
1949--Mar.
1951--Jan.
1953--Feb.
1955--Jan.
Apr.
1958--Jan.
Aug.
Oct.
1960--July
1962--July
1963-—Nov.
1
5
5
21
1
30
17
20
4
23
16
5
16
28
10
6
1945—Feb.
July
1946—Jan.
1947—Jan.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.
1968-—Mar.
June
1970-—May
1971-- D e c .
1972-—Nov.
Effective Jan.
11
June 7
8
1970—May 5
6
1971—Dec. 3
6
1972—Nov. 22
24
1974—Jan.
2
3, 1974.
4
4,
20,
31,
29,
16,
19,
3,
22,
15
4,
15
27
9
5
10
On margin stocks
On convertible bonds
On short sales
(T)
50
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
40
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55
65
50
50
60
50
50
50
50
70
80
65
55
65
50
NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit
to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is
a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference
between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective
Mar. U , 1968.
5
m
m
m
m
m
5%
6
6%
(3>
5%
6
6%
(3>
NOTE.—Maximum rates that may be paid by member banks are established by the Board of Governors under provisions of Regulation Q;
however, a member bank may not pay a rate in excess of the maximum
rate payable by State banks or trust companies on like deposits under
the laws of the State in which the member bank is located. Beginning
Feb. 1, 1936, maximum rates that may be paid by nonmember insured
commercial banks, as established by the FDIC, have been the same as
those in effect for member banks.
* For previous changes, see earlier issues of the BULLETIN.
(Per cent of market value)
Beginning
date
5
5 per cent of its total time and savings deposits. Sales in excess of that
amount were subject to the 6% per cent ceiling that applies to time deposits maturing in 2% years or more.
Effective Nov. 1, 1973, a ceiling rate of 7 1 4 per cent was imposed on
certificates maturing in 4 years or more with minimum denominations
of $1,000. There is no limitation on the amount of these certificates that
banks
may issue.
6
Prior to Nov. 27, 1974, no distinction was made between the time
deposits of governmental units and of other holders, insofar as Regulation Q ceilings on rates payable were concerned. Effective Nov. 27, 1974,
governmental units were permitted to hold savings deposits and could
receive interest rates on time deposits with denominations under $100,000
irrespective of maturity, as high as the maximum rate permitted on such
deposits at any Federally insured depositary institution.
MARGIN REQUIREMENTS
Period
Dec. 23,
1974
NOVEMBER 1976 • OPEN MARKET ACCOUNT
A9
TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions of dollars)
Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Others within 1 year2
Treasury bills1
Period
Gross
purchases
Gross Redemptions
sales
11,074
8,896
8,522
15,517
11,660
11,562
5,214
3,642
6,467
4,880
5,830
5,599
2,160
1,064
2,545
3,405
4,550
6,431
1975—Sept..
Oct...
Nov..
Dec..
2,118
1,263
983
1,984
766
652
200
400
919
200
1976—Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
243
1,664
1,069
2,869
1,335
2,719
279
1,100
1,125
1970..
1971..
1972..
1973.
1974.
1975.
600
389
600
1,000
403
350
875
1,239
511
1,355
1,224
524
1,413
171
Period
1970
197 1
1972
197 3
1974
197 5
12,362
12,515
10,142
18,121
13,537
20,892
1975—Sept...
Oct...
Nov. .
Dec...
2,940
1,263
1,693
2,281
1976—Jan.. .
Feb...
Mar. .
Apr...
May..
June..
July. .
Aug...
Sept...
563
2,003
1,380
3,233
1,335
3,709
279
1,579
2,202
Gross
sales
5,214
3,642
6,467
4,r5,830
5,599
766
652
1,239
618
1,425
1,224
524
1,413
171
Exch.,
Gross maturity Gross
sales shifts, or purredemp- chases
tions
Gross Exch. or Gross
sales maturity purshifts
chases
Gross Exch. or Gross
sales maturity purchases
shifts
-3,483
-6,462
2,933
-140
-1,314
-3,553
848
1,338
789
579
797
2,863
5,430
4,672
-1,405
-2,028
-697
4,275
249
933
539
500
434
1,510
-1,845
685
-2,094
895
1,675
-4,697
93
311
167
129
196
1,070
278
48
-265
28
562
-278
-48
-135
-28
137
300
244
71
968
73
59
24
38
99
1,036
125
1,396
450
3,886
-1,153
349
72
2,602
-449
59
-1,525
-285
83
42
129
Matched
sale-purchase
transactions
(U.S. Govt,
securities)
Total outright1
Gross
purchases
Gross
purchases
Redemptions
Gross
sales
Gross
purchases
267
118
110
177
185
249
617
301
580
Repurchase
agreements
(U.S. Govt,
securities)
Gross
purchases
107
70
Net
change
in U.S.
Govt,
securities
Gross
sales
4,988
8,076
-312
8,610
1,984
7,434
4,451
200
400
919
200
19,931
15,886
14,442
10,559
19,835
16,113
15,207
10,058
16,664
13,699
14,342
8,464
14,857
13,838
17,275
7,247
600
200
600
1,000
403
350
875
11,407
7,551
12,697
15,138
12,417
20,973
10,522
16,389
19,828
11,503
7,957
12,082
14,899
12,355
21,205
10,468
16,180
19,563
18,135
17,753
16,000
17,456
20,355
14,409
12,947
26,641
24,108
14,919
20,943
14,783
15,963
21,203
13,643
14,657
24,655
23,477
100
186
-2,047
2,797
2,037
-982
763
2,061
-1,202
3,834
-3,773
3,357
2,397
63
63
51
418
195
72
272
Outright
Sales or
redemptions
ments,
net
101
370
239
322
246
394
284
....
240
100
200
"85
96
250
Bankers
acceptances,
net
Net
change
Repurchase
485
1,197
865
3,087
1,616
239
297
-102
150
250
87
205
848
1,354
Federal agency obligations
Gross
purchases
Gross Exch. or
sales maturity
shifts
124
155
78
174
-349
-72
-3,105
449
-59
-79
285
2,160 12,177 12,177 33,859 33,859
2,019 16,205 16,205 44,741 43,519
2,862 23,319 23,319 31,103 32,228
4,592 45,780 45,780 74,755 74,795
4,682 64,229 62,801 71,333 70,947
9,559 151,205 152,132 140,311 139,538
1
Before Nov. 1973 BULLETIN, included matched sale-purchase transactions,
which are now shown separately.
2
Includes special certificates acquired when the Treasury borrows
directly from the Federal Reserve, as follows (millions of dollars): June
1971, 955; Sept. 1972, 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974,
131; Mar. 1975, 1,560; Aug. 1975, 1,989.
Over 10 years
5-10 years
1-5 years
1
-88
29
469
-392
203
-124
-169
118
187
-236
217
-155
22
123
-231
95
182
3
Repurchase
agreements
Outright
- 6
22
-9
- 2
511
163
14
49
- 2 1
15
5
-70
-138
-50
-51
-78
-31
-68
-55
-145
-36
420
-35
4,982
8,866
272
9,227
6,149
8,539
94
50
-300
385
5,155
445
-2,537
3,315
98
-109
-31
162
-69
229
-339
220
85
2,567
-1,101
181
812
2,019
-1,080
4,086
-4,375
3,577
2,587
3
Net change in U.S. Govt, securities, Federal agency obligations, and
bankers acceptances.
NOTE.—Sales, redemptions, and negative figures reduce System holdings; all other figures increase such holdings. Details may not add to
totals because of rounding.
AlO
FEDERAL RESERVE BANKS • NOVEMBER 1976
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday
End of month
1976
Item
Oct. 27
Oct. 20
1976
Oct. 13
Oct. 6
Sept. 29
Oct. 31
1975
Sept. 30
Oct. 31
Assets
Special Drawing Rights certificate account
Loans:
Other
Acceptances:
Held under repurchase agreements
Federal agency obligations:
Held under repurchase agreements
U.S. Govt, securities:
Bought outright:
Bills
11,598
1,200
11,598
1,200
11,598
1,200
11,598
800
11,598
700
11,598
1,200
11,598
800
11,599
500
374
370
368
365
365
381
370
398
569
82
54
56
326
45
322
73
196
30
199
112
200
317
199
181
212
507
197
140
207
631
747
300
6,757
51
6,757
110
6,757
293
6,757
83
6,757
295
6,757
79
6,757
323
6,073
169
39,266
40,075
39,009
32,102
38,372
39,875
38,245
35,747
46,897
6,506
46,897
6,506
46,897
6,506
46,897
6,506
46,482
6,465
46,897
6,506
46,897
6,506
43,400
5,104
92,669
1,549
93,478
2,396
92,412
4,868
85,505
1,807
91,319
7,905
93,278
2,561
91,648
4,779
84,251
2,933
Other
Total bought outright *
Other assets:
94,218
95,874
97,280
87,312
99,224
95,839
96,427
87,184
101,821
,507
358
26
103,134
2*9,448
359
26
104,901
10,498
357
27
94,588
9,416
356
27
107,321
8,081
354
26
103,057
2*6,643
358
26
104,667
7,768
354
26
94,546
5,595
313
11
395
2,940
390
3,227
388
2,857
739
2,752
638
2,731
401
2,985
738
2,682
413
3,202
2*126,219
2*129,752
132,194
120,641
131,814
2*126,649
129,003
116,577
80,528
80,598
81,097
80,509
79,802
80,389
79,674
73,063
2*26,421
9,448
251
2*30,188
8,076
256
30,755
9,128
280
22,842
7,496
252
29,716
12,212
245
2*26,374
10,238
362
26,220
13,296
393
26,140
8,517
297
Liabilities
Deposits:
Other:
954
1,546
1,171
898
920
953
1,024
594
2*37,074
f40,066
41,334
31,488
43,093
2*37,927
40,933
35,548
5,135
1,094
5,691
1,126
6,478
1,134
5,608
990
5,270
1,248
4,718
1,165
4,771
1,205
4,468
1,163
2*123,831
2*127,481
130,043
118,595
129,413
2*124,199
126,583
114,242
973
929
486
974
929
368
966
928
257
966
929
151
965
929
507
974
929
547
965
929
526
917
897
521
2*126,219
2*129,752
132,194
120,641
131,814
2*126,649
129,003
116,577
49,748
49,996
49,420
50,037
49,219
2*49,790
49,690
42,399
Capital accounts
Marketable U.S. Govt, securities held in custody for
foreign and international accounts
Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
Gold certificate account
Special Drawing Rights certificate account.
Acceptances
U.S. Govt, securities
85,815
85,829
85,786
85,556
85,571
85,907
85,526
78,659
11,596
619
11,595
600
11,596
600
11,596
435
11,595
394
11,595
619
11,595
421
11,596
302
75,680
75,635
75,635
75,235
75,230
75,680
75,230
69,410
Total collateral.
87,895
87,830
87,831
87,266
87,219
87,894
87,246
81,308
1 See note 2 on p. A-2.
2 See note 4 on p. A-2.
NOVEMBER 1976 • FEDERAL RESERVE BANKS; BANK DEBITS
All
MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions of dollars)
End of month
Wednesday
1976
1976
Item
Oct. 27
Oct. 20
Oct. 13
Oct. 6
Sept. 29
Oct. 31
Sept. 30
Loans—Total
Within 15 d a y s . . .
16-90 days
91 days to 1 year..
569
555
14
82
71
55
37
18
55
35
20
324
311
13
45
31
14
323
299
24
Acceptances—Total.
Within 15 d a y s . . .
16-90 days
91 days to 1 year.
226
57
103
66
311
139
102
70
517
358
98
61
380
236
98
46
719
569
109
41
337
170
99
68
838
691
105
42
94,218
4,036
18,710
26,866
29,559
9,981
5,066
95,874
7,380
17,307
26,581
29,559
9,981
5,066
97,280
9,868
17,406
25,400
29,559
9,981
5,066
87,312
4,663
11,991
26,052
29,559
9,981
5,066
99,224
12,142
17,066
26,061
29,034
9,896
5,025
95,839
5,831
18,395
27,007
29,559
9,981
5,066
96,427
6,688
17,269
27,864
29,559
9,981
5,066
6,808
6,867
131
362
1,033
3,234
1,406
701
7,050
335
382
958
3,267
1,415
693
6,840
124
383
958
3,267
1,415
693
7,052
327
383
967
3,267
1,415
693
6,836
100
374
1,021
3,234
1,406
701
7,080
355
383
967
3,267
1,415
693
U.S. Govt, securities—Total.
Within 15 days 1
16-90 days
91 days to 1 year
1-5 years
5-10 years
Over 10 years
Federal agency obligations—Total.
Within 15 days1
16-90 days
91 days to 1 year
1-5 years
5-10 years
Over 10 years
72
374
1,021
3,234
1,406
701
11
1
Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
BANK DEBITS AND DEPOSIT TURNOVER
(Seasonally adjusted annual rates)
Debits to demand deposit accounts1
(billions of dollars)
Period
N.Y.
6 others 2
Total 232
SMSA's
(excl.
N.Y.)
134.0
134.0
131.0
330.7
364.0
360.8
351.8
123.8
118.7
119.5
118.4
85.1
83.5
84.9
84.7
70.0
69.8
71.5
71.6
132.4
140.9
144.6
140.3
139.3
145.0
145.9
r
148.6
145.8
366.0
375.4
377.5
374.9
380.2
400.8
405.0
400.6
393.7
115.4
128.1
131.4
124.6
126.9
131.9
128.7
138.2
136.1
82.9
89.6
92.5
88.4
88.2
90.9
89.9
r
94.8
94.0
70.3
74.6
77.2
74.2
73.3
75.1
74.9
r
78.1
77.7
Leading SMSA's
6 others 2
Total 232
SMSA's
(excl.
N.Y.)
226
other
SMSA's
Total
233
SMSA's
10,585.0
11.801.5
11,529.9
10,970.9
5,153.0
4,921.3
4.937.3
4.932.5
12,596.9
12,335.6
12,537.8
12.594.2
7,443.8
7,414.3
7,600.5
7,661.8
128.8
11.517.7
4.789.0
5.324.6
5,560.9
5.302.4
5.327.1
5.561.2
5.497.7
5.935.8
5,856.0
12.327.3
13.316.4
13.844.8
13.310.0
13.311.9
13,781.3
13.748.1
14,653.9
14,518.8
7.538.3
7.991.8
8.283.9
8,007.7
7.984.7
Leading SMSA's
Total
233
SMSA's
N.Y.
1975—Sept.
Oct..
Nov.
Dec.
23,181.9
24,137.1
24.067.7
23,565.1
1976—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
23,845.0
25,528.4
26,474.4
25.792.8
25.490.9
26,625.6
27,102.3
r
27,875.0
27,246.6
12.629.6
12.482.8
12.179.0
12,844.3
13,354.2
13.221.1
12.727.9
12,212.0
1
Excludes interbank and U.S. Govt, demand deposit accounts.
2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.
Turnover of demand deposits
8,220.1
8.250.4
'8,718.1
8.662.8
226
other
SMSA's
NOTE.—Total SMSA's include some cities and counties not designated
as SMSA's.
For back data see pp. 634-35 of the July 1972 BULLETIN.
A12
MONEY STOCK • NOVEMBER 1976
MEASURES OF THE MONEY STOCK
(In billions of dollars)
Seasonally adjusted
Period
Mi
Mi
Mz
M2
Not seasonally adjusted
Ms
Mi
Mi
Mz
Mi
Ms
Composition of measures is described in the NOTE below.
1973-—Dec
1974-—Dec
270.5
283.1
571.4
612.4
919.5
981.6
634.9
702.2
982.9
1,071.4
278.3
291 .3
576.5
617.5
921.8
983.8
640.5
708.0
985.8
1,074.3
1975--Sept
Oct
Nov
Dec
293.6
293.4
295.6
294.8
652.9
655.8
662.1
664.3
1,068.1
1,075.8
1,086.5
1,092.9
731.9
736.7
743.9
747.2
1,147.1
1,156.6
1,168.3
1,175.8
291.7
292.3
297.4
303.2
649.5
653.2
660.2
669.3
1,062.8
1,070.4
1,080.6
1,094.6
732.2
736.9
743.0
752.8
1,145.5
1,154.1
1,163.5
1,178.1
295.1
296.6
298.1
301.8
303.5
303.2
304.9
306.4
306.3
670.0
677.9
682.6
690.8
695.7
698.5
705.4
710.8
716.4
1,103.5
1,116.7
1,126.5
1,140.0
1,150.0
1,157.4
1,169.9
1,182.3
1,195.4
749.2
753.3
755.7
762.2
763.9
769.1
774.9
775.1
778.8
1,182.7
1,192.1
1,199.7
1,211.5
1,218.2
1,228.0
1,239.4
1,246.7
1,257.8
301.0
292.9
295.3
303.5
298.5
302.5
305.2
303.1
304.4
675.0
674.8
682.5
695.5
694.1
699.8
705.8
707.4
712.8
1,106.9
1,112.8
1,128.2
1,148.2
1,150.8
1,162.3
1,173.8
1,178.7
1,189.2
753.5
747.8
754.2
764.9
761.5
768.9
774.6
773.6
778.1
1,185.4
1,185.8
1,199.9
1,217.6
1,218.2
1,231.4
1,242.6
1,245.0
1,254.5
r
1976-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
NOTE.—Composition of the money stock measures is as follows:
Mi: Averages of daily figures for (1) demand deposits of commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
Mn Averages of daily figures for Mi plus savings deposits, time deposits open account, and time certificates of deposit other than negotiable CD's of $100,000 of large weekly reporting banks.
Ms: Mi plus the average of the beginning and end-of-month deposits
of mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
A/4: Mi plus large negotiable CD's.
Ms: Mi plus large negotiable CD's.
For a description of the latest revisions in Mi, Mi, Mz, MA, and Ms, see
"Revision of Money Stock Measures" on pp. 82-87 of the Feb. 1976
BULLETIN. Beginning Jan. 1976, money stock measures and related data
have been revised to incorporate benchmark data from the Mar. 31, 1976,
call report.
Latest monthly and weekly figures are available from the Board's H.6
release. Back data are available from the Banking Section, Division of
Research and Statistics.
COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions of dollars)
Seasonally adjusted
Not seasonally adjusted
Commercial banks
Period
Currency
Commercial banks
Time and savings
deposits
Demand
deposits
CD's 1
Other
Total
Nonbank
thrift
institutions2
Demand deposits
Time and savings
deposits
Member
Domestic
nonmember 3
Total 4 CD's 1
Other
Total
Currency
Nonbank
thrift
institutions 2
U.S.
Govt,
deposits 5
1973—Dec
1974—Dec
61.5
67.8
209.0
215.3
63.5
89.8
300.9
329.3
364.4
419.1
348.0
369.2
62.7
69.0
156.5
159.7
56.3
58.5
215.7
222.2
64.0
90.5
298.2
326.3
362.2
416.7
345.3
366.3
6.3
4.9
1975—Sept
Oct
Nov
Dec
72.0
72.6
73.4
73.7
221.6
220.8
222.1
221.0
79.1
80.9
81.8
82.9
359.2
362.4
366.5
369.6
438.3
443.3
448.3
452.4
415.2
420.0
424.4
428.6
71.9
72.5
73.9
75.1
157.0
156.6
159.0
162.1
59.7
60.3
61.4
62.6
219.9
219.9
223.5
228.1
82.7
83.7
82.9
83.5
357.7
360.8
362.8
366.2
440.4
444.5
445.6
449.6
413.3
417.2
420.4
425.3
3.9
3.4
3.5
4.1
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
74.2
75.0
75.7
76.7
77.3
77.6
78.1
78.6
79.1
220.9
221.6
222.4
225.2
226.2
225.6
226.8
227.8
227.2
79.2
75.4
73.2
71.5
68.2
70.6
69.6
64.4
62.4
374.9
381.3
384.4
388.9
392.2
395.3
400.4
404.4
410.1
454.1
456.7
457.6
460.4
460.4
465.9
470.0
468.7
472.5
433.5
438.8
444.0
449.3
454.3
458.9
464.5
471.6
479.0
73.7
74.1
75.1
76.2
77.1
77.8
78.7
78.9
79.0
162.0
155.8
156.9
161.9
157.2
159.3
160.2
158.5
159.1
62.1
59.9
60.3
62.3
61.0
62.3
62.8
62.4
63.2
227.3
218.9
220.2
227.2
221.4
224.7
226.5
224.3
225.4
78.5
73.0
71.8
69.4
67.4
69.1
68.9
66.3
65.3
374.0
381.9
387.2
392.1
395.6
397.3
400.6
404.2
408.4
452.5
454.9
458.9
461.5
462.9
466.4
469.4
470.5
473.7
431.9
433.0
445.7
452.6
456.7
462.5
468.0
471.3
476.4
3.8
4.6
3.9
3.9
3.8
4.8
3.4
3.6
4.9
1
Negotiable time certificates of deposit issued in denominations of
$100,000
or more by large weekly reporting commercial banks.
2
Average of the beginning and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
3 Based on most recent call report single-day observations.
4
Total deposits include, in addition to the member and domestic nonmember deposits shown, deposits due to foreign and international institutions at F. R. Banks and Mi type balances at agencies and branches
of foreign banks.
5 At all commercial banks.
See also NOTE above.
NOVEMBER 1976 • BANK RESERVES; BANK CREDIT
A13
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions of dollars)
Deposits subject to reserve requirements 2
Member bank reserves, S.A. i
S.A.
Period
Total
Nonborrowed
Required
Total
Total member
bank deposits
plus nondeposit
items 3
N.S.A.
Demand
Time
and
savings
Private
U.S.
Govt.
Total
Demand
Time
and
savings
Private
U.S.
Govt.
S.A.
N.S.A.
1973—Dec
1974—Dec. i
34.98
36.63
33.69
35.90
34.68
36.37
442.8
486.9
279.7
322.9
158.1
160.6
5.0
3.4
447.5
491.8
278.5
321.7
164.0
166.6
5.0
3.5
449.4
495.3
454.0
500.1
1975—Sept 1
Oct.
Nov
Dec
34.99
34.79
34.73
34.75
34.59
34.60
34.67
34.62
34.80
34.58
34.44
34.49
498.4
500.1
505.9
506.0
329.8
333.1
336.1
338.7
165.6
164.0
165.9
164.4
3.0
3.0
3.9
3.0
499.1
500.4
503.6
510.9
332.2
334.7
334.3
337.2
164.0
163.3
166.7
170.7
2.9
2.5
2.6
3.1
505.5
508.0
514.1
515.4
506.1
508.3
511.9
519.3
1976—Jan. i
Feb
Mar
Apr
May
June
July
Aug
Sept
34.32
34.05
34.00
34.02
34.14
34.34
34.39
r
34.52
34.36
34.24
33.97
33.95
33.98
34.02
34.21
34.25
r
34.42
34.30
34.08
33.83
33.78
33.87
33.93
34.12
34.15
34.32
34.16
506.2
507.6
507.8
509.8
507.8
513.9
514.9
513.6
515.3
338.9
339.5
339.4
340.2
338.3
342.3
344.2
341.1
342.6
164.7
165.5
165.8
167.2
167.2
167.9
168.0
168.7
168.9
2.6
2.6
2.5
2.5
2.3
3.7
2.7
3.9
3.8
511.1
504.2
506.4
511.9
506.0
512.7
513.9
511.3
514.9
337.9
337.5
339.6
340.2
339.9
342.5
343.7
342.7
344.1
170.3
163.4
163.9
168.8
163.4
166.7
167.7
165.9
167.2
2.9
3.4
2.9
2.9
2.8
3.6
2.5
2.7
3.6
514.1
515.6
516.0
517.3
515.3
522.3
523.6
522.5
523.5
519.0
512.2
514.7
519.4
513.6
521.2
522.7
520.2
523.1
1 Averages of daily figures. Member bank reserve series reflect 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 Dec. 12, 1974, Feb.
13, May 22, and Oct. 30, 1975, and Jan. 8, 1976. 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
Averages of daily figures. Deposits subject to reserve requirements
include total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits
except those due to the U.S. Govt., less cash items in process of collection
and demand balances due from domestic commercial banks.
3 "Total member bank deposits" subject to reserve requirements, plus
Euro-dollar borrowings, loans sold to bank-related institutions, and
certain other nondeposit items. This series for deposits is referred to as
"the adjusted bank credit proxy."
NOTE.—Back data and estimates of the impact of required reserve
changes may be obtained from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS
(In billions of dollars)
Seasonally adjusted
Total
loans
and
investments i
Date
1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
31
31
31
315. . .
1975—Oct. 29
Nov. 26
Dec. 31
1976—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
28*. . .
25* . . .
31*. . .
28*. . .
26*...
30*. . .
28*. . .
25*.. .
29*. . .
27*.. .
Securities
Loans
Total i
Plus
loans2
sold
485.7
558.0
633.4
690.4
320.9
378.9
449.0
500.2
716.3
722.2
721.1
723.3
726.7
731.2
734.5
737.6
738.8
743.1
748.7
752.5
760.3
Not seasonally adjusted
Commercial
and industrial3
U.S.
Treasury
Loans
Total i
Plus
loans
sold 2
497.9
571.4
647.3
705.6
328.3
387.3
458.5
510.7
145.3
146.9
144.8
714.6
722.4
737.0
145.0
144.5
143.3
144.0
144.0
144.1
145.7
146.1
147.1
147.5
721.4
720.8
729.6
732.1
735.1
743.3
740.3
746.1
752.9
758.7
Other4
Total
Plus
loans2
sold
323.7
381.5
453.3
505.0
116.1
130.2
156.4
183.3
117.7
131.9
159.0
186.0
60.6
62.6
54.5
50.4
104.2
116.5
129.9
139.8
495.0
498.5
496.9
499.7
503.2
501.3
176.3
177.1
176.0
179.2
179.9
178.5
76.0
76.8
79.4
497.3
497.8
499.7
500.5
500.6
500.7
504.7
507.6
511 .4
519.3
501.6
502.3
503.9
504.7
505.0
505.2
509.2
511.6
515.3
523.1
176.6
175.1
171.4
170.5
170.7
170.2
171.0
171.0
172.0
174.8
179.1
177.8
174.0
173.1
173.4
173.0
173.8
173.5
174.5
177.2
81.0
84.4
88.2
90.0
93.0
94.0
92.7
95.0
94.0
93.5
1
Adjusted to exclude domestic commercial interbank loans.
2
Loans sold are those sold outright to banks' own foreign branches,
nonconsolidated nonbank affiliates of the banks, the banks' holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both "Total loans" and "Commercial and industrial loans" were reduced by about $100 million.
3 Reclassification of loans at one large bank reduced these loans by
about $400 million as of June 30, 1972 and by about $1.2 billion as of
March
31, 1976.
4
Farmers Home Administration insured notes included in "Other
securities" rather than in loans beginning June 30, 1971, when such notes
totaled
about $700 million.
5
Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in "Other
securities," and $600 million in "Total loans and investments."
Total
loans
and
invest-1
ments
Securities
Commercial
and industrial3
U.S.
Treasury
Other4
120.2
134.4
162.0
189.6
64.9
67.0
58.3
54.5
104.7
117.1
130.6
140.5
175.3
176.5
179.3
178.2
179.3
181.8
75.9
79.4
84.1
144.9
145.4
145.5
174.4
173.5
171.3
170.6
170.8
172.4
170.7
170.3
172.5
174.2
176.9
176.2
173.9
173.2
173.5
175.2
173.5
172.8
175.0
176.6
84.8
85.4
89.3
90.2
90.5
90.8
89.5
91.8
92.6
93.5
144.0
143.6
143.5
145.2
144.6
145.3
145.6
145.8
147.0
147.0
Total
Plus
loans2
sold
331.1
389.9
462.8
515.5
118.5
132.7
159.4
186.8
493.7
497.6
507.4
498.4
502.3
511.8
492.6
491.9
496.9
496.7
500.0
507.2
505.2
508.5
513.3
518.2
496.9
496.4
501.1
500.9
504.4
511.7
509.7
512.5
517.2
522.0
As of Oct. 31, 1974, "Total loans and investments" of all commercial
banks were reduced by $1.5 billion in connection with the liquidation
of one large bank. Reductions in other items were: "Total loans," $1.0
billion (of which $0.6 billion was in "Commercial and industrial loans"),
and "Other securities," $0.5 billion. In late November "Commercial and
industrial loans" were increased by $0.1 billion as a result of loan reclassifications at another large bank.
NOTE.—Total loans and investments: Back data for 1959-75 available
from Banking Section, Division of Research and Statistics; for 1948-58,
see Aug. 1968 BULLETIN, pp. A-94—A-97. For description of seasonally
adjusted series for total loans and investments, see Dec. 1971 BULLETIN,
pp. 971-73 and for commercial and industrial loans, see July 1972 BULLETIN, p. 683. Data are for last Wed. of month except for June 30 and Dec.
31; data are partly or wholly estimated except when June 30 and Dec.
31 are call dates.
A14
COMMERCIAL BANKS • NOVEMBER 1976
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions of dollars)
Total
assets—
Total
liaSecurities
Cash bilities
assets 3 and
capital Total 3
acU.S. Other
2
counts 4
Treasury
Deposits
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Total
Loans
1
Interbank 3
Other
Borrowings
Demand
Demand
Time
Total Numcapital
ber
of
accounts 6 banks
Time 5
U.S.
Govt.
Other
Last-Wednesday-of-month series 7
All commercial banks:
1941—Dec. 3 1 . . .
1947—Dec. 31 8..
1960—Dec. 31...
1970—Dec. 31»..
1971—Dec. 31...
1972—Dec. 31...
1973—Dec. 31...
1974—Dec. 31...
50,746
116,284
199,509
461,194
516,564
598,808
683,799
744,107
21,714
38,057
117,642
313,334
346,930
414,696
494,947
549,183
225
69,221
006
864
61,003
,118
61,742
64,930104,704
67,028 117, 084
<
58,277 130,:574
54,451 140,-473
21,
26,551
37,502
52,150
93,643
99,832
113,128
118,276
128,042
79,104
155,377
257,552
576,242
640,255
739,033
835,224
919,552
71,283
144,103
229,843
480,940
537,946
616,037
681,847
747,903
10,982
15,952
44,349
12,792
240 1,3431 94,367 35,360
17,079 1,799 5,945 133,379 71,641
30,608 1,975 7,938 209,335 231,084
32,205 2,908 10,169 220,375 272,289
33,854 4,194 10,875 252,223 314,891
36,839 6,773 9,865 263,367 365,002
43,483 11,496 4,807 267,506 420,61
1975—Oct. 2 9 . . . 747,250 526,420 75,9401 44,890 110,670 915,890 736,870 31,900 ,210
Nov. 2 6 . . . 757,450 532,660 79,400 145,390 123,150 939,310 753,000 34,560 ,160
Dec. 31... 775,794 546,172 84,119 145,503 133,614 964,918 786,252 41,81* 12,020
1976—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
28...
28...
31io.
28...
26...
30..,
28...
25..,
29*.,
27*. ,
756,630
757,540
767,260
765,550
766,760
779,820
772,540
782,080
790,400
796,900
527,820
528,560
534,530
530,170
531,780
543,740
537,550
544,460
550,820
556,440
Members oi
F.R. System:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
31..
31..
31..
319..
31..
31...
31...
31...
43,521
97,846
165,619
365,940
405,087
465,788
528,124
568,532
32,628
99,933
253,936
277,717
329,548
391,032
429,537
84,7701144,040 112,720
85,420 143,:560 111,470
89,260 143,.,470 120,870
90,180 145, 200 113,210
90,430 144, 550 111,710
90,800 145, 280 125,170
89,490 145, 500 111,530
91,800 145, 820 109,110
92,630 146, 950 118,660
93 ,'460147; 000 115,160
18,021 19,539
23,113
32,845
45,756
81,500
86,189
96,566
100,098
106,995
57,914
49,106
45,399
47,633
48,715
41,494
38,921
927,140
928,540
934,440
926,370
927,690
957,130
934,250
940,510
960,030
962,640
68,121
132,060
216,577
465,644
511,353
585,125
655,898
715,615
28...
28...
3110,
28...
26..,
30..,
28...
25...
29*..
27*..
563,387
562,940
569,913
567.384
567,050
577,509
570,060
578,200
583,553
588,645
402,020
401,731
406,148
402,147
402,319
411,707
405,282
410,790
415,076
419,479
61,704 99,',663 93,808
61,869 99, 340 91,914
64,636 99, 129 100,455
64,892 100,:345 93,743
65,037 99, 694 92,323
65,626 100, 176 104,036
64;442100;336 92,277
66,747 100,1663 89,366
66,973 101,;504 98,897
67,744 101,422 94,911
705,093
704,357
710,228
702,130
702,269
726,826
706,225
710,710
726,823
727.636
2,650 247,590 443,520 60,640
3,530 257,640 446,110 66,780
3,114 278,692 450,615 60,224
32,110 11,540
31,560 11,370
37,510 11,860
32,280 10,990
33,100 10,530
38,270 10,580
33,100 10,160
33,380 9,650
35,180 9,520
34,760 9,140
3,790
4,010
2,430
4,120
3,520
4,660
3,540
3,710
5,840
3,690
245,600
242,810
256,930
250,200
247,550
266,450
250,590
247,400
252,890
258,180
450,100
451,480
457,950
455,560
459,370
462,890
463,790
465,260
469,890
472,140
67,250
68,490
63,420
68,480
66,160
65,870
66,790
72,250
77,520
75,980
140
61,717 10,385
50
12,353
16,437 1,639
29,142 1,733
30,612 2,549
31,958 3,561
34,782 5,843
41,062 10,052
1,709
1,176
5,287
6,460
8,427
9,024
8,273
3,183
37,136
80,609
112,393
168,032
174,385
197,817
202,564
204,203
12,347
28,340
57,273
179,229
209,406
239,763
275,374
317,064
4
54
130
18,578
25,046
36,357
55,611
52,850
743,140
741,230
766,680
753,150
754,070
782,850
761,180
759,400
773,320
777,910
122,528
193,029
384,596
425,380
482,124
526,837
575,563
1975—Oct. 29... 556.383 401,492 54,546 100,345 91,397 695,312 552,649 29.568 9,578
Nov. 26.., 564,023 405,805 57,471 100,747 102,103 714,112 564,835 32,064 9,527
Dec. 31... 578,560 416,366 61,519 100,675 108,489 733.635 590,776 38.569 10,015
1976—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
23
65
163
,375
,912
,083
,994
,369
556,274
552,942
573,878
561,110
561,220
585,345
565,107
562,360
573,939
576,067
1,952 186,851 324,700 54,250
2,708 194,492 326,044 60,162
2,255 210,824 329,"' 53,646
328,352
328,005
332,395
329,567
332,289
335,380
334,881
335,067
338,399
339,215
61,022
62,051
57,4701
62,002
59,588
59,302
60,343
65,878
70,636
69,119
1,762 41,298 15,699
10,654
54 1,325 92,975 34,882
12,615
16,921 1,667 5,932 132,533 71,348
30,233 1,874 7,898 208,037 231,132
33,366 4,113 10,820 250,693 313,830
36,248 6,429 9,856 261,530 363,294
42,587 10,693 4,799 265,444 418,142
10
61
149
19,149
37,556
57,531
55,988
29,712
29,145
34,934
29,923
30,675
35,595
30,720
30,943
32,659
32,213
9,529
9,357
9,848
8,978
8,517
8,570
8,150
7,642
7,521
7,130
2,908
2,977
1,769
3,281
2,701
3,669
2,720
2,793
4,349
2,859
185,773
183,458
194,932
189,361
187,038
202,131
188,636
185,915
191,011
194,650
Call date series
Insured banks:
Total:
1941—Dec.
1947—Dec.
I960—Dec.
1970—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
31...
31...
31...
319..
31...
31...
31...
49,290
114,274
198,011
458,919
594,502
678,113
734,516
21,259
37,583
117,092
312,006
411,525
490,527
541,111
21,046 6,984 25,788
67,941 8,750 36,926
60,468 20,451 51,836
61,438 85,475 92,708
66,679 116,298 111,333
57,961 129,625 116,266
54,132 139,272 125,375
76,820
152,733
255,669
572,682
732,519
827,081
906,325
69,411
141,851
228,401
479,174
612,822
677,358
741,665
6,844
9,734
20,628
42,427
52,166
57,603
63,039
1975—June 3 0 . . . 736,164 526,272 67,833 142,060 125,181 914,781 746,348 41,244 10,252
Dec. 3 1 . . . 762,400 535,170 83,629 143,602 128,256 944,654 775,209 40,259 10,733
3,106 261,903 416,962 59,310 65,986
3,108 276,384 433,352 56,775 68,474
1976—Mar. 3 1 . . . 758,753 527,718 85,372 145,663 119,026 919,546 759,615 36,123 10,420
2,474 256,356 454,241 61,716 67,300
National member:
1941—Dec. 3 1 . . .
1947—Dec. 3 1 . . .
I960—Dec. 3 1 . . .
1970—Dec. 319..
1972—Dec. 3 1 . . .
1973—Dec. 3 1 . . .
1974—Dec. 3 1 . . .
27,571
65,280
107,546
271,760
350,743
398,236
428,433
11,725
21,428
63,694
187,554
247,041
293,555
321,466
12,039
38,674
32,712
34,203
37,185
30,962
29,075
3,806
5,178
11,140
50,004
66,516
73,718
77,892
14,977
22,024
28,675
56,028
67,390
70,711
76,523
43,433
88,182
139,261
340,764
434,810
489,470
534,207
39,458
82,023
124,911
283,663
359,319
395,767
431,039
6,786
35
8,375
611
9,829
982
18,051
19,096 2,155
20,357 3,876
23,497 6,750
1,088
795
3,265
4,740
6,646
5,955
2,437
23,262
53,541
71,660
122,298
146,800
152,705
154,397
8,322
19,278
39,546
137,592
184,622
212,874
243,959
4
45
111
13,100
26,706
39,696
39,603
3,640
5,409
11,098
24,868
30,342
33,125
35,815
1975—June 3 0 . . . 428,167 312,229 37,606 78,331 75,686 536,836 431,646 21,096 6,804
Dec. 3 1 . . . 441,135 315,738 46,799 78,598 78,026 553,285 447,590 22,305 7,302
1,723 152,576 242.492 41,954 37,483
1,788 159,840 250.493 40,875 38,969
1976—Mar. 3 1 . . . 435,453 308,481 46,726 80,246 73,103 536,191 435,144 19,406 6,590
1,441 147,557 260,151 44,112 38,468
For notes see opposite page.
NOVEMBER 1976 • COMMERCIAL BANKS
15
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Deposits
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Securities
Total
Loans
l
U.S.
Treasury
Cash
assets3
Other
2
Total
assets—
Total
liabilities
Total 3
and
capital
accounts4
Interbank3
Demand
Demand
Time
Total Number
Bor- capital
of
rowacings counts 6 banks
Other
Time
5
U.S.
Govt.
Other
Call date series
Insured banks (cont.):
State member:
1941—Dec. 31.... 15,950 6,295
1947—Dec. 31.... 32,566 11,200
I960—Dec. 31.... 58,073 36,240
1970—Dec. 319... 94,760 66,963
1972—Dec. 31.... 115,426 82,889
1973—Dec. 31.... 130,240 97,828
1974—Dec. 3 1 . . . . 140,373 108,346
7,500
19,240
16,394
11,196
11,530
10,532
9,846
2,155 8,145 24,688 22,259
2,125 10,822 43,879 40,505
5,439 17,081 77,316 68,118
16,600 25.472 125,460 101,512
21,008 29,176 150,697 123,186
21,880 29,387 166,780 131,421
22,181 30.473 181,683 144,799
3,739
3,978
15
6,608
1,028
11,091
750
12,862 1,406
14,425 1,968
17,565 3,301
1975—June 30. . . 134,759 100,968 12,004 21,787 31,466 179,787 141,995 18,751
1975—Dec. 31 . . . 137,620 100,823 14,720 22,077 30,451 180,495 143,409 16,265
1976—Mar. 31.... 135,853 98,568 14,641 22,644 28,670 175,394 139,011 15,438
Nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
1,509
5,776 3,241
31....
31.... 16,444 4,958 10,039
31.... 32,411 17,169 11,368
319... 92,399 57,489 16,039
31.... 128,333 81,594 17,964
31.... 149,638 99,143 16,467
3 1 . . . . 165,709 111,300 15,211
1,025
1,448
3,874
18,871
28,774
34,027
39,199
2,668 8,708 7,702
4,083 20,691 19,342
6,082 39,114 35,391
11,208 106,457 93,998
14,767 147,013 130,316
16,167 170,831 150,170
18,380 190,435 165,827
1975—June 30. . . 173,238 113,074 18,223 41,942 18,029 198,157 172,707
1975—Dec. 31. .. 183,645 118,609 22,109 42,927 19,778 210,874 184,210
1976—Mar. 31.... 187,448 120,669 24,006 42,773 17,253 207,960 185,460
Noninsured
nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
241
255
413
642
684
785
949
455
474
550
2,132
2,224
3,731
4,927
8,461
761
1,280
535
304
239
349
316
319
1,201
1975—June 3 0 . . . 11,725 9,559
1975—Dec. 31 .. . 13,674 11,283
358
490
1,902
2,270
11,318
11,904
16,342
17,297
18,313
16,783
15,530
1,266
1,703
4,287
19,514
24,966
29,559
34,976
40,400
Total nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.
31....
318...
31....
31»...
31....
31....
31....
31....
31....
31....
31...
319...
31....
31....
31....
31....
1,457
2,009
1,498
3,079
3,147
4,865
6,192
9,981
7,233
18,454
33,910
95,478
111,674
133,198
155,830
175,690
3,696
5,432
17,719
59,621
69,411
85,325
104,070
119,761
1,
4
27
141
552
586
642
676
719
743
1,397
1,689
1,280
443 48,621 65,654 14,380 12,773
467 50,984 67,656 12,771 13,105
356 47,425 72,705 14,706 12,598
1,064
1,046
1,030
959
6
3,360
7 1,271
6,558
3,232
19
14,095
571 8,326
51,322
73,685 1,199 10,938
87,569 1,920 12,862
100,804 3,138 14,799
6,478
6,948
7,735
8,017
8,229
8,436
940 60,706 108,816 2,976 15,730
853 65,560 115,203 3,128 16,400
676 61,374 121,386 2,898 16,234
8,526
8,585
8,590
852
783
352
184
181
53
149
645
1,438
1,796
1,582
1,616
4,162
12,366
20,140
40,005
52,876
58,966
61,240
4,025
9,062
17,727
42,218
55,523
62,851
73,380
9
20
6,810
177
159
375
380
488
591
897
185
132
101
116
81
344
803
1,392
846
1,298
1,273
1,530
1,836
2,062
13
253
4
478
14
293
226
756
283
1,134
527
1,620
1,463
2,215
2,857 2,382
329
325
358
532
480
491
524
611
207
249
3,534 16,277 8,314
5,359 20,544 11,323
1,338
1,552
957
1,291
2,124
2,308
3,320 3,110
5,115 3,449
570
651
261
457
439
190
643
160
1,466
243
1,592
359
1,895
633
2,057
930
2,422 1,445
5,504
" 13,758
167
657 20,986
1,478 41,303
1,742 45,990
1,850 54,406
1,592 60,802
1,624 63,302
1,288
18
12 1,596
33 3,590
796 8,858
866 9,932
,726 11,429
,383 13,386
,520 15,410
7,662
7,261
7,300
7,919
8,056
8,223
8,436
8,685
951 62,830 112,136 6,086 16,300
859 67,868 120,318 6,577 17,051
8,779
8,846
3,431
4,659
6,396
12,143
13,643
16,562
18,177
21,047
10,992 9,573
23,334 21,591
40,997 36,834
110,822 96,568
129,100 112,764
154,085 134,091
179,480 155,165
204,051 172,454
1
Loans to farmers directly guaranteed by CCC were reclassified as
securities and Export-Import Bank portfolio fund participations were
reclassified from loans to securities effective June 30, 1966. This reduced
"Total loans" and increased "Other securities" by about $1 billion.
"Total loans" include Federal funds sold, and beginning with June 1967
securities purchased under resale agreements, figures for which are included in "Federal funds sold, etc.," on p. A-16.
Effective June 30, 1971, Farmers Home Administration notes were
classified as "Other securities" rather than "Loans." As a result of this
change, approximately $300 million was transferred to "Other securities"
for the period ending June 30, 1971, for all commercial banks.
Effective Mar. 31, 1976, includes "reserves for loan losses" and "unearned income on loans."
See also table (and notes) at the bottom of p. A-24.
2 See first 2 paragraphs of note 1.
3
Reciprocal balances excluded beginning with 1942.
4 Includes items not shown separately. See also note 1.
Effective Mar. 31,1976, "reserves for loan losses" and unearned income
on loans," which for all commercial banks are estimated to be approximately $14.5 billion, have been netted against "other assets" and "other
liabilities" and, therefore, against "total assets/liabilities."
5 See third paragraph of note 1 above.
6 Effective Mar. 31, 1976, includes "reserves for securities" and a
portion of "reserves for loan losses."
7 For the last-Wednesday-of-the-month series, figures for call dates
are shown for June and December as soon as they became available.
8
Beginning with Dec. 31, 1947, the series was revised; for description,
9 Figure takes into account the following changes, which became
effective June 30, 1969: (1) inclusion of consolidated reports (including
129
262
484
1,091
1,408
1,467
1,525
5,478
9,651 10,886
15,914 11,617
13,247 12,425
1,502
1,918
1,644
1,147
1,092
1,076
1,074
13,874
27,068
40.733
45.734
51,017
49,859
49,807
1,872
2,251
1,443
2,570
2,923
3,775
4,996
6,627
2,283
2,643
1,883
4,365
5,130
7,073
8,650
2,010
2,667 13,616
763
576
314
934
1,551
1,794
1975—June 30. . . 184,963 122,633 18,581 43,750 21,563 214,434 181,021
1975—Dec. 31 .. . 197,319 129,892 22,599 44,829 25,137 231,418 195,533
see note 4, p. 587, May 1964 BULLETIN.
2,771
2,712
3,086
1
2,246
3,055
6,299
9,232
621
381
2,022
1,720
2,378
2,318
746
329
2,735
3,241
1,291
1,633
2,010
3,613
7,036
14,388
52,078
63,081
75,305
89,784
103,661
206
253
figures for all bank-premises subsidiaries and other significant majorityowned domestic subsidiaries) and (2) reporting of figures for total loans
and for individual categories of securities on a gross basis—that is, before
deduction
of valuation reserves—rather than net as previously reported.
10
See last paragraph of note 1, second paragraph of note 4, and
note 6.
NOTE.—Data are for all commercial banks in the United States (including
Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both member and nonmember; stock savings
banks; nondeposit trust companies; and U.S. branches of foreign banks.
Figures for member banks before 1970 include mutual savings banks
as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks
are not included in insured commercial banks.
Effective June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business; beginning 1973,
exclude 1 national bank in Puerto Rico.
Beginning Dec. 31, 1973, June 30, 1974, Dec. 31, 1974, June 30, 1975,
and March 31, 1976, respectively, member banks exclude and noninsured
nonmember banks include 1, 2, 3, 4, and 5 noninsured trust companies
that are members of the Federal Reserve System.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and by mergers
etc.
Figures are partly estimated except on call dates.
For revisions in series before June 30, 1947, see July 1947 BULLETIN,
pp. 870-71.
A16
COMMERCIAL BANKS • NOVEMBER 1976
ASSETS BY CLASS OF BANK, MARCH 31y 1976
(Assets and liabilities are shown in millions of dollars.)
Member banks1
Assets
Cash bank balances, items in process
Currency and coin
Demand balances with banks in United States
Other balances with banks in United States
Balances with banks in foreign countries
Cash items in process of collection
Total securities held—Book
value
U.S. Treasury 4
Trading-account 4securities
U.S. Treasury
Bank investment portfolios
U.S. Treasury
Other U.S. Govt, agencies
States and political subdivisions
All other portfolio securities
Insured
commercial
banks
Large banks
Total
New York
City
City of
Chicago
Other
large
All other
Nonmember
banks i
119,026
11,216
28,525
27,671
6,586
2,910
42,119
101,773
8,440
28,525
17,248
4,267
2,530
40,763
26,340
714
4,702
6,704
40
169
14,010
4,185
158
2,065
102
16
41
1,803
39,319
2,845
11,946
3,187
1,593
1,465
18,283
31,929
4,723
9,812
7,255
2,618
856
6,666
17,260
2,776
229,529
162,998
17,581
7,459
53,826
84,131
66,534
5,664
5,584
2,364
772
2,189
259
79
223,865
85,372
32,946
100,143
5,404
157,414
61,367
20,181
72,384
3,482
15,217
7,315
873
6,666
363
6,687
3,137
324
3,083
143
51,637
20,840
5,869
24,090
838
83,872
30,074
13,115
38,545
2,138
66,454
24,007
12,765
27,759
1,923
10,430
2,319
379
1,356
1,506
1,259
243
82
457
478
248
36,012
31,447
3,200
1,365
27,144
22,809
3,019
1,316
1,684
979
352
354
1,484
1,110
344
30
13,321
10,490
2,008
824
10,655
10,231
314
109
8,893
8,663
181
49
491,706
11,218
6,063
474,425
379,905
7,829
4,858
367,217
68,332
407
1,081
66,844
20,815
83
331
20,401
143,842
2,741
1,812
139,289
146,916
4,599
1,634
140,683
111,801
3,388
1,205
107,207
138,288
15,933
6,111
78,347
73,858
8,212
65,646
4,489
431
4,058
37,897
98,569
13,096
2,644
56,662
53,354
7,108
46,246
3,308
365
2,943
26,167
8,778
3,203
6
3,953
3,509
560
2,949
444
126
318
1,615
2,007
502
15
923
827
52
775
96
25
71
567
36,408
6,177
287
20,954
19,709
3,888
15,821
1,244
100
1,144
8,990
51,377
3,214
2,336
30,831
29,309
2,608
26,700
1,522
113
1,409
14,996
39,719
2,836
3,466
21,686
20,504
1,104
19,400
1,182
66
1,115
11,731
Loans to financial institutions
To real estate investment trusts
To domestic commercial banks
To banks in foreign countries
To other depository institutions
To other financial institutions
Loans to security brokers and dealers
Other loans to purch./carry securities
Loans to farmers—except real estate
Commercial and industrial loans
Loans to individuals—Total
Instalment loans
Passenger automobiles
Residential-repair/modernize
Credit cards and related plans
Charge-account credit cards
Check and revolving credit plans
Other retail consumer goods
Mobile homes
Other
Other instalment loans
Single-payment loans to individuals
All other loans
37,463
10,381
3,069
5,687
2,408
15,918
6,125
3,868
20,433
167,013
105,656
83,121
34,120
5,853
11,923
9,216
2,707
15,122
8,628
6,494
16,103
22,535
12,859
35,574
10,072
2,407
5,560
2,281
15,254
6,017
3,238
11,379
138,858
74,974
58,674
22,443
4,175
10,519
8,270
2,249
10,491
6,187
4,304
11,046
16,300
11,293
13,065
3,877
799
2,526
601
5,262
4,085
405
78
34,725
4,846
3,291
489
261
1,080
772
308
183
107
76
1,278
1,555
2,350
4,772
1,536
111
327
15
2,783
627
315
170
10,642
1,604
903
157
35
511
481
30
92
36
56
108
701
678
14,761
3,930
1,066
2,299
1,495
5,971
1,182
1,619
2,607
54,574
27,304
21,703
6,895
1,739
6,032
4,828
1,204
3,836
2,279
1,557
3,201
5,601
5,386
2,975
728
431
408
170
1,238
122
900
8,525
38,917
41,220
32,777
14,902
2,140
2,897
2,190
707
6,380
3,765
2,615
6,458
8,443
2,879
1,887
309
662
126
126
664
108
630
9,054
28,155
30,681
24,447
11,677
1,678
1,403
946
457
4,631
2,441
2,190
5,057
6,234
1,565
Total loans and securities, net
Direct lease financing
Fixed assets—Buildings, furniture, real estate
Investment in unconsolidated subsidiaries
Customer acceptances outstanding
Other assets
741,472
4,200
17,832
1,982
9,731
25,301
558,618
3,988
13,368
1,958
9,440
22,440
86,352
636
1,454
810
4,814
7,940
29,426
129
560
152
350
1,677
206,893
2,619
5,437
925
3,992
9,061
235,947
604
5,916
71
284
3,761
182,881
212
4,466
24
291
2,907
Total assets
919,546
711,585
128,347
36,481
268,246
278,512
208,043
F.R. stock and corporate stock
Federal funds sold and securities resale agreement
Commercial banks
Brokers and dealers
Others
Other loans, gross
Less: Unearned income on loans
Reserves for loan loss
Other loans, net
Gross other loans, by category:
Real estate loans—Total
Construction and land development
Secured by farmland
Secured by residential
1 - to 4-family residences
FHA insured
Conventional
Multifamily residences
FHA insured
Conventional
Secured by other properties
For notes see opposite page.
NOVEMBER 1976 • COMMERCIAL BANKS
A17
LIABILITIES AND CAPITAL BY CLASS OF BANK, MARCH 31, 1976
(Assets and liabilities are shown in millions of dollars.)
Member banks i
Liabilities and capital
Accounts
Insured
commercial
banks
Large banks
Total
New York
City
Other
large
City of
Chicago
All other
Nonmember
banks1
294,953
1,033
228,651
2,474
15,860
1,434
29,608
5,482
10,410
231,623
941
173,801
1,798
11,183
1,388
28,550
5,353
8,610
52,202
432
29,202
121
502
1,168
13,167
4,089
3,522
8,997
2
6,577
25
191
18
1,756
136
291
83,922
222
65,625
661
3,471
172
10,215
1,011
2,545
86,501
284
72,397
990
7,019
30
3,413
117
2,252
63,331
92
54,849
676
4,677
47
1,058
130
1,801
285,241
197
553
219,140
618
46,328
8,550
8,504
1,351
213,442
152
537
161,988
478
32,819
8,337
7,843
1,288
33,200
13,467
297
22,954
91
1,032
5,122
3,001
703
2
9,460
1
1,442
1,136
1,340
86
78,372
12
193
58,504
201
14,147
2,047
2,786
482
88,403
139
45
71,069
186
16,198
33
716
17
71,799
45
16
57,152
141
13,508
213
661
63
Savings deposits
Individuals and nonprofit organizations
Corporations and other profit organizations
U.S. Government
All other
179,421
170,989
5,437
2,925
68
129,091
123,059
3,978
1,988
65
8,650
8,247
192
161
50
2,706
2,616
66
23
47,534
45,430
1,677
418
8
70,201
66,767
2,042
1,385
7
50,330
47,930
1,459
938
3
Total deposits
759,615
574,155
94,053
25,169
209,828
245,105
185,460
57,248
35,330
5,608
16,309
4,467
770
10,385
15,212
54,654
34,269
5,408
14,976
4,164
554
10,094
13,223
11,733
6,625
751
4,357
1,913
53
5,431
4,266
7,536
5,261
1,001
1,273
58
16
352
897
27,819
18,388
2,967
6,464
1,872
304
4,026
5,164
7,566
3,995
689
2,881
321
182
285
2,897
2,594
1,061
200
1,333
304
216
291
2,065
847,697
656,844
117,448
34,028
249,013
256,355
190,930
4,549
3,676
916
84
1,698
978
873
67,300
53
15,699
27,112
22,710
1,725
51,065
34
11,631
20,277
17,906
1,218
9,983
2,368
2,259
3,906
3,745
75
570
1,149
600
50
17,535
10
3,875
7,279
5,962
410
21,178
24
4,928
7,944
7,600
684
16,240
20
4,070
6,836
4,807
508
919,546
711,585
128,347
36,481
268,246
278,512
208,043
220,752
160,512
24,904
5,413
54,763
75,432
60,241
117,460
101,147
26,918
4,255
38,935
31,039
16,316
36,716
486,101
144,427
751,437
27,406
371,737
120,645
567,916
1,767
68,027
30,152
91,522
1,379
20,768
11,156
25,125
12,856
140,866
50,764
207,676
11,404
142,077
28,574
243,593
9,340
114,363
23,781
183,520
59,318
4,093
56,753
3,813
14,503
1,666
7,312
47
27,223
1,815
7,715
286
2,565
280
9,756
123,946
119,853
23,301
9,304
103,711
99,898
20,501
4,800
26,372
24,706
5,253
950
9,098
9,051
2,159
2,940
42,807
40,992
9,478
614
25,434
25,148
3,610
452
20,235
19,955
2,800
14,368
5,778
11
9
155
5,603
8,595
Other individuals, partnerships, and corporations
U.S. Government
States and political subdivisions
Foreign governments, central banks, etc
Commercial banks in United States
Banks in foreign countries
Certified and officers' checks, etc
Time deposits
Mutual savings banks
Other individuals, partnerships, and corporations
States and political subdivisions
Foreign governments, central banks, etc
Commercial banks in United States
Banks in foreign countries
Federal funds purchased and securities sold under agreements to repurchase
Brokers and dealers
Others
Other liabilities for borrowed money
Mortgage indebtedness
Bank acceptances outstanding
Subordinated notes and debentures
Preferred stock
Other capital reserves
Total liabilities and equity capital
Average for last 15 or 30 days:
Average Federal funds sold and securities purchased
under agreements to resell
Average total loans
Average time deposits of $100,000 or more
Average Federal funds purchased and securities sold
under agreements to repurchase
Average other liabilities for borrowed money
Standby letters of credit outstanding
Certificates of deposit
1 Member banks exclude and nonmember banks include 5 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 See table (and notes), Deposits Accumulated for Payment of Personal
Loans, p. 24.
3 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.
NOTE.—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. Holdings by type of security will be reported
as soon as they become available.
Back data in lesser detail were shown in previous Bulletins. Details
may not add to totals because of rounding.
WEEKLY REPORTING BANKS • NOVEMBER 1976
A18
ASSETS AND LIABILITIES OF LARGE COMMERCIAL B A N K S A
(In millions of dollars)
Loans
Federal funds sold, etc. 2
Wednesday
Total
loans
and
invest-1
ments
Other
To brokers
and dealers
involving—
Total
To
commercial
banks
For purchasing
or carrying securities
To
US. Other others Total i
seTreascuriury
ties
securities
Commercial
and
industrial
Agricultural
To brokers
and dealers
To nonbank
financial
institutions
To
others
Pers.
U.S.
and
Treas- Other Treas- Other sales
Other
ury
ury
sees. finance
sees.
sees.
sees.
cos.,
etc.
U.S
Real
estate
Large banks—
Total
1975
Oct.
1
8
15
22
29
390,570
390,283
391,689
385,274
385,124
17,809
18,017
19,703
15,606
16,454
15,054
13,423
15,297
12,922
13,842
1,291
2,990
2,638
1,546
1,653
632
958
,057
533
466
832
646
711
605
493
276,761
276,009
275,949
273,395
272,879
119,944
119,408
119,405
118,542
118,442
3,645
896 3,822
3,632 2,248 3,843
3,624 1,499 4,174
3,639
898 3,489
3,596
798 3,683
2,260
2,262
2,275
2,260
2,266
9,570
8,721
8,700
8,630
8,303
19,458
19,280
19,170
19,071
19,015
59,554
59,477
59,582
59,681
59,733
881
695
816
776
788
269,475
268,91
270,748
270,243
270,394
111,137
111,237
111,853
112,165
112,313
4,191
4,203
4,205
4,202
4,224
2,554
2.535
2.536
2,532
2,554
6,887
6,800
6,884
6,624
6,631
17,316
17,276
17,297
17,105
17,123
62,055
62,082
62,260
62,378
62,431
7,154
7,076
7,379
7,436
2.524
2,496
2.525
2,536
6,620 17,111
6 , 6 8 0 17,137
7,053 16,927
6,828 16,885
62,446
62,540
62,743
62,822
850 2,277
107 1,950 2,460
108 1,216 2,885
109
824 2,271
110
746 2,427
404
406
400
404
405
3,525
2,950
2,911
2,965
2,810
7,530
7,400
7,324
7,288
7,252
9,225
9,262
9,323
9,346
9,341
1976
Sept.
1
8
15
22
29
393,119
395,153
397,347
392,506
392,825
20,705
23,470
23,315
18,791
18,702
17,536
19,599
18,190
15,574
15,711
1,635
2,424
3,608
1,819
1,685
653
752
701
622
518
Oct.
6
13
20
27
401,249
397,704
397,777
396,764
25,027
21,052
19,723
19,751
17,738
17,757
16,278
16,239
5,313
1,823
2,098
1,911
642 1,334 272,646 112,510 4,229 2,381
536
936 272,083 112,497 4,247 1,290
480
867 273,371 13,302 4,255 1,685
418 1,183 272,929 13,525 4,278 1,526
91,066
90,572
91,832
89,668
88,943
2,223
1,216
2,655
2,013
1,703
1,878
1,039
2,451
1,805
1,510
1
8
15
22
29
87,758
86,242
88,070
86,769
85,768
1,701
2,505
1,526
1,177
946
851
1,658
956
689
356
277
572
387
258
318
57
197
114
198
66,564
65,932
66,583
65,743
65,360
32,604
32,626
32,796
32,725
32,864
1,499
1,513
1,618
1,074
909
394
392
389
386
386
2,457
2,382
2,512
2,251
2.245
6,548
6,415
6,453
6,374
6,298
9,249
9,211
9,240
9,211
9,181
6
13
20
27
87,857
87,818
88,787
88,441
1,273
1,238
1,972
2,379
909
690
1,398
1,400
172
275
375
552
156
241
167
410
67,332
66,654
67,309
66,834
33,027
33,185
33,414
33,520
2,082 4,040
1,122 4,084
1,465 4,135
1,346 4,167
376
372
373
369
2.246
2,238
2,476
2,339
6,304
6,269
6,214
6,163
9,166
9,127
9,133
9,135
1,856
1,856
1,875
1,856
1,861
6,045
5,771
5,789
5,665
5,493
11,928 50,329
11,880 50,215
11,846 50,259
11,783 50,335
11,763 50,392
1,613 6,815
1,632 6,391
2,224 6,463
1,226 6,714
1,035 6,439
New York City
1975
Oct.
1
8
15
22
29
70
300 71,325 37,288
128 71,620 37,159
116 71,451 37,182
158 70,074 36,925
102 69,962 36,917
106
1976
Sept.
Oct.
1,266
Outside
New York City
1975
Oct.
1
8
15
22
29
299,504
299,711
299,857
295,606
296,181
15,586 13,176 1,246
16,801 12,384 2,941
17,048 12,846 2,620
13,593 11,117 1,496
14,751 12,332 1,562
632
958
987
533
466
532
518
595
447
391
205,436
204,389
204,498
203,321
202,917
82,656
82,249
82,223
81,617
81,525
3,539
3,525
3,516
3,530
3,486
46
298
283
74
52
563 202,911
638 202,979
619 204,165
662 204,500
590 205,034
78,533
78,611
79,057
79,440
79,449
4,110
4,121
4,125
4,121
4,141
114
119
606
152
2,855
2,755
2,726
2,960
126 2,919
2,160
2,143
2.147
2,146
2,168
4,430
4,418
4.372
4.373
4,386
10,768 52,806
10,861 52,871
10,844 53,020
10,731 53,167
10,825 53,250
299 3,114
168 2,992
220 3,244
180 3,269
2.148
2,124
2,152
2,167
4.374
4,442
4,577
4,489
10,807
10,868
10,713
10,722
1,545
1,383
1,289
1,218
1,256
1976
Sept.
1
8
15
22
29
305,361
308,911
309,277
305,737
307,057
19,004 16,590 1,279
22,204 18,748 2,147
20,810 16,532 3,036
17,265 14,618 1,432
17,525 15,022 1,427
572
671
623
553
486
Oct.
6
13
20
27
313,392
309,886
308,990
308,323
23,754
19,814
17,751
17,372
606 1,178 205,314 79,483 4,143
16,829
17,067
14,880
14,839
5,141
1,548
1,723
1,359
504
448
401
695 205,429 79,312 4,158
700 206,062 79,888 4,165
773 206,095 80,005 4,187
A Effective with changes in New York State branch banking laws,
beginning Jan. 1,1976, three large New York City banks are now reporting
combined totals for previously affiliated banks that have been converted
to branches.
The principal effects of these changes were to increase the reported data
for New York City (total assets, by about $5.5 billion) and to decrease the
53,280
53,413
53,610
53,687
reported data for "Outside New York City" (total assets, by about $4.0
billion).
Historical data (from Jan. 1972) on a basis comparable with 1976 data
are available from the Public Information Department of the Federal
Reserve Bank of New York on request.
For other notes see p. A-22.
A19
NOVEMBER 1976 • WEEKLY REPORTING BANKS
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A—Continued
(In millions of dollars)
Investments
Loans (cont.)
Notes and bonds
maturing—
To commercial banks
Foreign
Other securities
U.S. Treasury securities
Other (cont.)
Consumer
instalment
Foreign
gOVtS.3
Loan
loss
reserve
All and unother earned Total
income
on
loans 1
Total
Bills
Within 1 to
1 yr. 5 yrs.
After
5 yrs.
Obligations
of States
and
political
subdivisions
Tax
warAll
rants4 other
Other bonds,
corp. stocks,
and
securities
Certif.
of
participations
Wednesday
All
other6
Large banks—
Total
1975
35,012
34,997
34,996
35,051
35,142
1,405
1,415
1,453
1,477
1,539
18,460
18,059
18,439
18,039
17,957
5,793 35,461 10,080 5,495 16,988 2,898 60,539
5 , 8 1 6 35,748 10,212 4,396 17,088 3,052 60,509
5,792 35,036 9,827 5,410 16,903 2,896 61,001
5,756 35,716 9,559 5,431 17,875 2,851 60,557
5,766 35,155 9,029 5,518 17,867 2,741 60,636
5,999 37,611
5,899 37,655
5,818 37,725
6,168 37,837
6,095 37,983
1,847
1,928
1,943
1,851
1,924
18,091
18,204
18,312
18,307
18,406
8,634
8,666
8,688
8,701
8,636
43,141
42,634
43,267
43,603
43,421
10,791
10,585
10,978
11,331
10,919
6,141
6,162
6,238
6,194
6,140
22,128 4,081
38,006
38,018
37,929
38,056
2,041
1,941
1,940
1,945
18,250
18,536
18,111
17,867
8,543
8,602
8,608
8,615
43,736
44,469
43,918
43,954
11,301
10,858
10,617
11,016
6,091
6,099
5,972
6,101
5,827
5,938
5,926
5,858
5,782
6,445
6,372
6,758
6,458
6,739
40,034
39,954
39,963
39,805
39,916
2,390
2,346
2,348
2,298
2,306
11,670
11,837
11,932
11,996
11,675
6,130
6,578
6,298
6,210
6,409
40,250
40,354
40,305
40,126
40,311
2,656
2,545
2,560
2,648
2,392
10,762
10,661
10,854
10,885
11,196
Sept.
21,825 4,062
22,001 4,050
22,038 4,040
22,338 4,024
59,798
60,138
60,017
59,869
60,308
22,423
22,713
22,762
22,323
59,840
60,100
60,765
60,130
6,405
6,445
6,795
6,425
40,038
40,057
40,150
39,964
2,359
2,348
2,314
2,354
11,038
11,250
11,506
11,387
Oct.
Oct.
1
8
15
22
29
1976
6,033
5,929
5,986
5,885
3,921
4,799
4,567
4,514
1
8
15
22
29
6
13
20
27
New York City
1975
2,511
2,583
2,576
2,550
2,503
3.574
3,578
3,570
3.575
3,583
522
517
546
585
644
4,071
3,985
4,126
3,931
4,014
1,749
1,740
1,724
1,689
1,709
1,725 10,221
1,716 9,749
1,724 9,656
1,727 10,312
1,655 9,969
1,623
1,642
1,645
1,636
7,875
8,264
8,146
8,093
7,782
1,930
778
762
759
699
689
4,039
4,058
4,107
4,512
4,520
714
859
724
650
592
9,643
9,472
9,580
9,488
9,496
1,494
1,441
1,426
1,405
1,472
6,041
5,993
6,031
5,983
5,988
178
177
178
178
178
1,945
1,922
1,858
2,735 1,026
2,511
997
2,678 1,025
3,448
970
2,904
930
5,274
5,051
4,829
4,843
5,009
1,186
1,190
1,124
1,051
1,126
9,272
9,295
9,326
9,188
9,262
1,442
1,490
1,467
1,423
1,437
6,175
6,187
6,226
6,130
6,166
281
280
280
290
290
1,374
1,338
1,353
1,345
1,369
Sept. 1
8
15
22
29
793
795
765
789
5,218
5,281
5,253
4,971
1,149
1,591
1,311
1,162
9,146
9,238
9,377
9,185
1,435
1,420
1,512
1,376
6,158
6,201
6,086
5,988
290
290
237
242
1,263
1,327
1,542
1,579
Oct.
2,344
2,585
2,556
2,232
1,981
1,861
Oct.
1
8
15
22
29
1976
2,619
2,469
2,416
2,692
2,621
3,870
3,864
3,884
3,935
3,934
548
603
567
518
525
3,699
3,773
3,784
3,766
3,644
2,577
2,518
2,551
2,555
3,943
3,942
3,960
3,957
614
532
546
555
3,710
3,979
3,735
3,637
10,106
10,688
10,129
10,043
2,946
3,021
2,800
3,121
6
13
20
27
Outside
New York City
1975
3,316
3,355
3,350
3,308
3,279
31,438
31,419
31,426
31,476
31,559
883
898
907
892
895
14,389
14,074
14,313
14,108
13,943
4,044
4,076
4,068
4,067
4,057
27,586
27,484
26,890
27,623
27,373
7,736
7,627
7,271
7,327
7,048
4,717
4,634
4,651
4,732
4,829
12,949
13,030
12,796
13,363
13,347
2,184
2,193
2,172
2,201
2,149
50,896
51,037
51,421
51,069
51,140
4,951
4,931
5,332
5,053
5,267
33,993
33,961
33,932
33,822
33,928
2,212 9,740
2.169 9,976
2.170 9,987
2,120 10,074
2,128 9,817
3,380
3,430
3,402
3,476
3,474
33,741
33,791
33,841
33,902
34,049
1,299
1,325
1,376
1,333
1,399
14,392
14,431
14,528
14,541
14,762
6,909
6,950
6,964
6,974
6,981
32,920
32,885
33,611
33,291
33,452
8,056
8,074
8,300
7,883
8,015
5,115
5,165
5,213
5,224
5,210
16,854
16,774
17,172
17,195
17,329
2,895
2,872
2,926
2,989
2,898
50,526
50,843
50,691
50,681
51,046
4,688
5,088
4,831
4,787
4,972
34,075
34,167
34,079
33,996
34,145
2,375
2,265
2,280
2,358
2,102
9,388
9,323
9,501
9,540
9,827
Sept. 1
8
15
22
29
3,456
3,411
3,435
3,330
34,063
34,076
33,969
34,099
1,427
1,409
1,394
1,390
14,540
14,557
14,376
14,230
6,920
6,960
6,963
6,979
33,630
33,781
33,789
33,911
8,355
7,837
7,817
7,895
5,298
5,304
5,207
5,312
17,205
17,432
17,509
17,352
2,772
3,208
3,256
3,352
50,694
50,862
51,388
50,945
4,970
5,025
5,283
5,049
33,880
33,856
34,064
33,976
2,069
2,058
2,077
9,775
9,923
9,964
9 , r
Oct.
Oct.
1
8
15
22
29
1976
For notes see pp. A-l 8 and A-22.
2,112
6
13
20
27
A20
WEEKLY REPORTING BANKS • NOVEMBER 1976
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued
(In millions of dollars)
Deposits
Wednesday
Cash
items
Rein
serves
process with
of
F.R.
collec- Banks
tion
Currency
and
coin
Balances
with
domestic
banks
Investments
in subsidiaries not
consolidated
Demand
Other
assets
Total
assets/
total
liabilities 1
Total
IPC
States
and
political
subdivisions
Dom estic
inter!3ank
U.S.
Govt.
Foreign
Com- Mutual govts.,
mersavetc. 3
cial
ings
Large banks—
Total
1975
36,864
33,477
41,748
32,660
31,848
21,456
19,418
20,810
21,809
22,360
4,808
4,680
4,976
5,048
5,211
13,240
11,927
14,079
12,432
11,491
1,794
1,800
1,801
1,792
1,794
38,788
37,716
37,791
38,009
38,183
507,520
499,301
512,894
497,024
496,011
168,282
160,849
173,950
159,863
159,838
120,217
118,002
126,094
116,374
116,592
6,570
5,805
6,235
5,890
5,880
1,082
906
1,647
1,454
1,261
25,793
23,051
26,156
23,345
22,111
925
851
846
767
794
1,223
1,119
1,102
1,081
1,141
1
8.
15.
77,
79,
35,358
36,447
39,051
33,460
35,950
21,805
22,208
17,964
19,404
23,243
5,308
5,207
5,444
5,474
5,619
12,176
11,550
12,028
10,502
11,902
2,136
2,119
2,116
2,120
2,116
45,773
46,255
46,157
45,277
45,987
515,675
518,939
520,107
508,743
517,642
166,689
166,598
175,122
162,256
165,960
120,365
121,171
126,196
117,377
119,089
6,346
5,790
6,148
6,010
5,620
1,127
1,698
4,737
2,603
2,668
24,617
24,829
24,031
23,142
24,011
845
849
764
744
761
1,023
1,011
1,176
1,138
1,016
6.
n.
20.
27.
36,831
40,238
35,788
35,070
16,628
24,750
23,011
19,807
4,922
5,523
5,468
5,654
12,104
12,469
12,374
11,785
2,158
2,172
2,347
2,351
46,670
47,009
45,572
45,772
520,562
529,865
522,337
517,203
171,099
173,402
169,020
167,554
121,274
125,603
122,606
121,360
5,834
5,587
5,770
5,939
2,440
1,614
2,544
2,060
26,157
26,111
24,464
23,671
968
955
913
876
1,097
1,208
1,226
1,464
13,880
12,465
14,475
11,048
12,070
7,415
5,770
6,411
5,693
7,462
667
662
671
683
683
6,590
5,527
6,542
5,821
5,107
805
804
804
804
806
13,229
13,195
12,664
13,205
12,712
133,652
128,995
133,399
126,922
127,783
50,973
47,330
50,962
46,142
46,871
27,901
27,689
29,099
25,904
26,740
665
615
702
569
465
100
90
256
202
159
13,349
11,044
12,819
11,809
10,619
596
511
499
459
464
986
903
860
841
904
Oct.
1
8.
H
77
29.
Sept.
Oct.
1976
New York City
1975
Oct.
1
8.
15.
22.
29.
Sept.
1
8.
15.
22,
29.
11,991
11,479
12,263
11,845
14,181
7,080
7,877
5,086
5,373
6,949
740
746
735
755
766
5,409
4,737
5,388
4,422
5,046
954
951
949
949
956
15,640
16,183
15,730
15,169
15,906
129,572
128,215
128,221
125,282
129,572
47,476
45,572
49,614
45,736
48,704
26,540
26,149
28,074
25,068
26,585
596
482
523
651
515
83
138
1,354
399
386
11,623
10,908
11,284
11,514
11,930
479
457
400
391
405
798
778
946
907
780
Oct.
6.
13.
20.
27.
13,109
13,496
12,251
12,075
5,439
8,491
6,408
5,220
718
758
753
748
4,962
5,142
5,213
4,976
1,000
1,011
1,011
1,011
16,007
16,180
14,635
14,996
129,092
132,896
129,058
127,467
48,625
48,398
48,625
47,791
26,168
26,626
27,232
26,547
546
542
585
555
397
232
430
303
11,975
12,060
12,075
11,175
548
520
500
468
769
915
944
1,195
22,984
21,012
27,273
21,612
19,778
14,041
13,648
14,399
16,116
14,898
4,141
4,018
4,305
4,365
4,528
6,650
6,400
7,537
6,611
6,384
989
996
997
988
988
25,559
24,521
25,127
24,804
25,471
373,868
370,306
379,495
370,102
368,228
117,309
113,519
122,988
113,721
112,967
92,316
90,313
96,995
90,470
89,852
5,905
5,190
5,533
5,321
5,415
982
816
1,391
1,252
1,102
12,444
12,007
13,337
11,536
11,492
329
340
347
308
330
237
216
242
240
237
1976
Outside
New York City
1975
Oct.
1,
8
15.
22
29,
Sept.
1
8,
15
22
29
23,367
24,968
26,788
21,615
21,769
14,725
14,331
12,878
14,031
16,294
4,568
4,461
4,709
4,719
4,853
6,767
6,813
6,640
6,080
6,856
1,182
1,168
1,167
1,171
1,160
30,133
30,072
30,427
30,108
30,081
386,103
390,724
391,886
383,461
388,070
119,213
121,026
125,508
116,520
117,256
93,825
95,022
98,122
92,309
92,504
5,750
5,308
5,625
5,359
5,105
1,044
1,560
3,383
2,204
2,282
12,994
13,921
12,747
11,628
12,081
366
392
364
353
356
225
233
230
231
236
Oct.
6
13
20
27
23,722
26,742
23,537
22,995
11,189
16,259
16,603
14,587
4,204
4,765
4,715
4,906
7,142
7,327
7,161
6,809
1,158
1,161
1,336
1,340
30,663
30,829
30,937
30,776
391,470
396,969
393,279
389,736
122,474
125,004
120,395
119,763
95,106
98,977
95,374
94,813
5,288
5,045
5,185
5,384
2,043
1,382
2,114
1,757
14,182
14,051
12,389
12,496
420
435
413
408
328
293
282
269
1976
For notes see pp. A-l 8 and A-22.
A21
NOVEMBER 1976 • WEEKLY REPORTING BANKS
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued
(In millions of dollars)
Deposits (cont.)
IPC
Certified
and
officers'
checks
Borrowings
from—
Time and savings
Demand (cont.)
Total 7
Savings
Other
States
and
political
subdivi-
Domestic
interbank
Foreign
govts. 3
Federal
funds
purchased,
etc. 8
Other
liabilities,
etc. 9
F.R.
Banks
Total
equity
capital
and sub,
notes I
debentures 1 0
Wednesday
Other
Large banks—
Total
1975
7,296
6,234
6,828
6,148
7,366
226,110
226,958
225,734
226,418
225,805
65,999 116,500
66,128 116,642
66,165 115,701
66,330 116,182
66,222 115,872
22,067
22,285
22,152
22,206
22,267
7,928
8,064
8,053
8,096
8,028
12,241
12,508
12,308
12,249
12,071
48,488
47,427
47,866
45,394
46,470
393
38
353
842
3
3,962
4,103
4,113
4,195
3,917
23,931
23,558
24,602
24,032
23,645
36,354
36,368
36,276
36,280
36,333
7,271
5,852
6,680
5,898
7,050
221,423
221,436
221,052
222,285
223,690
80,937
81,342
81,280
81,593
82,090
105,378
105,046
104,932
105,704
106,373
19,824
19,764
19,659
19,672
19,795
6,002
5,932
5,863
5,915
5,925
7,776
7,885
7,856
7,919
7,947
61,621
65,781
57,515
58,824
62,494
210
21,681
21,280
22,205
21,492
21,326
40,110
40,054
40,040
40,061
40,128
Sept.
131
24
259
3,941
3,790
4,042
3,801
3,785
7,812
6,618
6,058
6,613
223,785
223,223
222,806
222,596
83,045
83,260
83,886
84,243
105,704
105,079
104,499
104,241
19,659
19,568
19,303
19,194
5,908
5,981
5,799
5,700
7,938
7,870
7,868
7,823
60,396
67,572
64,067
60,717
10
11
40
511
3,969
3,949
3,925
3,917
20,917
21,231
21,870
21,401
40,386
40,477
40,609
40,507
Oct.
Oct.
1
8
15
22
29
1976
1
8
15
22
29
6
13
20
27
New York City
1975
3,522
2,975
3,265
2,844
4,176
48,277
49,027
48,592
48,806
48,432
7,277
7,265
7,258
7.273
7.274
27,419
27,866
27,498
27,669
27,449
1,553
1,562
1,565
1,584
1,596
3,189
3,328
3,358
3,420
3,432
7,928
8,146
8,036
7,984
7,827
13,331
11,548
11,517
10,104
3,584
2,563
3,095
2,789
3,754
41,390
41,070
40,676
40,707
40,903
8,901
8,943
8,940
8,968
9,024
23,009
22,772
22,507
22,537
22,519
1,227
1,197
1,164
1,159
1,227
2,600
2,533
2,479
2,457
2,456
4,805
4,813
4,781.
4,759
4,754
18,232
19,602
15,051
16,293
16,991
4,117
3,201
2,789
3,275
41,011
40,795
40,770
9,115
9,148
9,249
9,263
22,524
22,299
22,175
22,040
1,252
1,296
1,290
1,328
2,515
2,598
2,524
2,502
4,699
4,616
4,696
4,690
16,778
20,742
16,456
15,895
11,886
275
680
1,826
1,806
1,818
10,210
1,932
1,651
9,035
9,069
10,052
9,071
8,757
10,215
10,183
10,187
1,528
1,567
1,422
1,642
1,664
9,280
8,930
9,970
9,420
9,610
11,456
11,474
11,488
11.484
11.485
Sept. 1
1,802
1,746
1,748
1,823
9,333
9,651
9,886
9,788
11,543
11,564
11,573
11,558
Oct.
Oct.
10,186
1
8
15
22
29
1976
40,612
210
215
8
15
22
29
6
13
20
27
Outside
New York City
1975
3,774
3,259
3,563
3,304
3,190
177,833
177,931
177,142
177,612
177,373
58,722
58,863
58,907
59,057
58,948
89,081
88,776
88,203
88,513
88,423
20,514
20,723
20,587
20,622
20,671
4,739
4,736
4,695
4,676
4,596
4,313
4,362
4,272
4,265
4,244
35,157
35,879
36,349
35,290
34,584
3,687
3,289
3,585
3,109
3,296
180,033
180,366
180,376
181,578
182,787
72,036
72,399
72,340
72,625
73,066
82,369
82,274
82,425
83,167
83,854
18,597
18.567
18,495
18,513
18.568
3,402
3,399
3,384
3,458
3,469
2,971
3,072
3,075
3,160
3,193
3,695
3,417
3,269
3,338
182,774
182,428
182,036
181,984
73,930
74,112
74,637
74,980
83,180
82,780
82,324
82,201
18,407
18,272
18,013
17,866
3,393
3,383
3,275
3,198
3,239
3,254
3,172
3,133
393
38
78
3
2,136
2,297
2,295
2,263
2,266
14,896
14,489
14,550
14,961
14,888
26,144
26,153
26,093
26,093
26,147
43,389
46,179
42,464
42,531
45,503
12,401
12,350
12,235
12,072
11,716
28,654
28,580
28,552
28,577
28,643
Sept. 1
131
24
44
2,413
2,223
2,620
2,159
2,121
43,618
46,830
47,611
44,822
10
11
40
511
2,167
2,203
2,177
2,094
11,584
11,580
11,984
11,613
28,843
28,913
29,036
28,949
Oct.
162
Oct.
1
8
15
22
29
1976
For notes see pp. A-l 8 and A-22.
8
15
22
29
6
13
20
27
A22
WEEKLY REPORTING BANKS • NOVEMBER 1976
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A—Continued
(In millions of dollars)
Memoranda
Wednesday
Large negotiable
time CD's
included in time
Total
and savings deposits 13
DeTotal
loans
mand
and
loans
(gross) invest- deposits
ad- 1
ad- 11 ments
Issued Issued
justed (gross) justed 2
Total
ad- 11
to
to
justed
IPC's others
All other large
time deposits 14
Total
Issued
to
IPC's
18,326
18.410
18,380
18.411
18,414
Savings ownership categories
Individ- Partuals
nerDoand
ships mestic
nonand governAll
Issued profit
cormental other 16
to
orgaporaunits
others niza- tions for
tions profit15
Large banks—Total
1975
Oct.
1
8
15
22
29
282,695
283,961
283,730
279,397
278,951
378,695
380,218
379,767
375,670
374,742
104,543
103,415
104,399
102,404
104,618
84,078
84,568
83,360
83,783
83,388
56,416
56,554
55,665
56,121
55,991
27,662
28,014
27,695
27,662
27,397
33,125
33,478
33,439
33,485
33,502
14,799
15,068
15,059
15,074
15,088
65,999
27,666 15,367 12,299
27,656 15,339 12,317
27,608 15,408 12,200
27,326 15,145 12,181
27,564 15,407 12,157
76,413
76,684
76,672
76,898
77,290
3,453
3,543
3,506
3,537
3,607
998
1,010
1,019
1,074
12,003 78,051
11,757 78,230
11,712 78,611
11,487 78,800
3,649
3,694
3,777
3,863
1,270
1,259
1,420
1,499
66,128
66,165
66,330
66,222
1976
Sept.
1
8
15
22
29
279,363
279,792
282,723
280,402
280,230
382,302
382,564
386,007
383,874
383,959
105,587
103,624
107,303
103,051
103,331
65,382
65,123
64,618
65,543
65,990
43,360
43,134
42,755
43,463
43,670
22,022
21,989
21,863
22,080
22,320
Oct.
6
13
20
27
286,668
281,757
283,351
283,172
390,244
386,326
388,034
387,256
105,671
105,439
106,224
106,753
65,096
64,574
63,563
63,151
42,808
42,272
41,584
41,296
27,484
22,302 26,972
21,979 27,024
21,855 26,769
15,481
15,215
15,312
15,282
72,243
72,549
72,386
70,995
70,959
89,761
90,285
90,112
88,576
88,237
23,644
23,731
23,412
23,083
24,023
29,665
30,495
30,078
30,315
30,117
19,205
19,688
19,317
19,581
19,519
10,460
10,807
10,761
10,734
10,598
7,862
7,824
7,804
7,780
7,692
4,901
4,874
4,871
4,814
4,745
2,961
2,950
2,933
2,966
2,947
7,277
7,265
7,258
7.273
7.274
22,288
1,120
New York City
1975
Oct.
1
8
15
22
29
Sept.
1
8
15
22
29
68,298
67,396
68,338
67,351
66,712
87,791
86,440
87,320
86,851
85,943
23,779
23,047
24,713
21,978
22,207
22,519
22,177
21,704
21,770
21,766
14,685
14,505
14,134
14,246
14,162
5,913
5,948
5,984
5,881
6,003
4,306
4,291
4,350
4,229
4,275
1,607
1,657
1,634
1,652
1,728
8,386
8,396
8,403
8,405
8,459
317
325
325
331
333
150
143
155
174
183
Oct.
6
13
20
27
68,549
68,018
68,679
68,826
87,801
87,944
88,185
88,054
23,144
22,610
23,869
24,238
21,673 14,034
21,591 13,890
21,463 13,770
21,399 13,663
6,088
5,923
5,869
5,801
4,387
4,290
4,251
4,268
1,701
1,633
1,533
8,486
8,526
8,566
8,582
340
343
352
361
237
227
276
267
210,452
211,412
211,344
208,402
207,992
288,934
289,933
289,655
287,094
286,505
80,899
79,684
80,987
79,321
80,595
54,413
54,073
53,282
53,468
53,271
37,211
36,866
36,348
36,540
36,472
17,202
17,207
16,934
16,928
16,799
25,263
25,654
25,635
25,705
25,810
13,425
13,536
13,509
13,597
13,669
11,838
12,118
12,126
12,108
12,141
58,722
58,863
58,907
59,057
58,948
10,692
10,660
10,566
10,529
10,429
1976
1,618
Outside New York City
1975
Oct.
1
8
15
22
29
Sept.
1
8
15
22
29
211,065
212,396
214,385
213,051
213,518
294,511
296,124
298,687
297,023
298,016
81,808
80,577
82,590
81,073
81,124
42,863
42,946
42,914
43,773
44,224
28,675
28,629
28,621
29,217
29,508
14,188
14,317
14,293
14,556
14,716
21,753
21,708
21,624
21,445
21,561
11,061
11,048
11,058
10,916
11,132
68,269
68,493
68,831
3,136
3,218
3,181
3,206
3,274
848
867
864
900
937
6
13
20
27
218,119
213,739
214,672
214,346
302,443
298,382
299,849
299,202
82,527
82,829
82,355
82,515
43,423
42,983
42,100
41,752
28,774
28,382
27,814
27,633
14,649
14,601
14,286
14,119
21,396
21,049
21,155
20,968
11,094 10,302 69,565
10,925 10,124 69,704
11,061 10,094 70,045
11,014 9,954 70,218
3,309
3,351
3,425
3,502
1,033
1,032
1,144
1,232
1976
Oct.
A
See p. A-18.
1
Loan loss reserve and unearned income on loans had been reported
as liability items through Mar. 24, 1976. Since then the item is netted
against total loans, and therefore against total assets also. As a proxy for
this item prior to Mar. 31, 1976, reserves for loans have been used to
calculate
year-ago figures.
2
Includes securities purchased under agreements to resell.
3
Includes official institutions and so forth.
4
Includes short-term notes and bills.
5 Federal agencies only.
6 Includes corporate stocks.
7
Includes U.S. Govt, and foreign bank deposits, not shown separately.
8
Includes
securities
sold
under
agreements to repurchase.
9
Includes minority interest in consolidated subsidiaries. Beginning
Mar.
31,
1976,
also
includes
deferred
tax portion of reserves for loans.
10
Includes reserves for securities. Beginning Mar. 31, 1976, also
includes contingency portion of reserves for loans.
68,027
68,288
11
Exclusive of loans and Federal funds transactions with domestic
commercial
banks.
12
All demand deposits except U.S. Govt, and domestic commercial
banks,
less cash items in process of collection.
13
Certificates of deposit issued in denominations of $100,000 or more.
14
All other time deposits issued in denominations of $100,000 or more
(not
included
in large negotiable CD's).
1
5 Other than commercial banks.
^Domestic and foreign commercial banks, and official international organizations.
NOTE.—Effective Mar. 24, 1976, in the city of Chicago and Mar. 31,
1976, in the San Francisco District reclassification of loans resulted in the
following major revisions: commercial and industrial, —$1,168 million;
other nonbank financial institutions, -[-$185 million; real estate, +$783
million; other loans, +$200 million. These reclassifications are not
reflected for earlier dates.
NOVEMBER 1976 • BUSINESS LOANS OF BANKS
A23
COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change during—
Outstanding
1976
1976
1976
1976
1975
1st
half
2nd
half
Industry
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products...
Other durable goods
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
Mining, including crude petroleum
ana natural gas
Trade: Commodity dealers
Other wholesale
Retail
Transportation
Communication
Other public utilities
Construction
Services
All other domestic loans
Bankers acceptances.. *
Foreign commercial and industrial
loans
Total classified loans
Comm. paper included
in total classified loans1
Oct.
27
Oct.
20
Oct.
13
Oct.
6
Sept.
29
2,003
4,605
2,298
1,663
3,416
1,991
4,631
2,387
1,664
3,421
2,003
4,654
2,397
1,691
3,464
2,052
4,606
2,456
1,695
3,493
2,062
4,617
2,426
3,503
-23
-87
3,399
3,404
2,561
2,641
1,851
3,369
3,441
2,589
2,622
1,858
3,269
3,524
2,536
2,604
1,869
3,274
3,533
2,525
2,551
1,883
3,366
3,499
2,5:0
2,525
Sept.
Aug.
109
-123
33
-14
-69
-132
-177
33
-95
41
116
-30
-154
-38
399
119
135
7,190 7,107 7,082 6,992 6,960
1,810 1,673 1,517 1,506 1,556
6,107 6,025 6,049 6,071 6,033
6,457 6,373 6,252 6,262 6,340
5,125 5,148 5,077 5,103 5,184
1,502 1,500 1,489
1,418 1,465
5,611 5,697 5,687 5,719 5,699
4,207 4,229 4,171 4,233 4,191
10,395 10,371 10,362 10,290 10,405
7,585 7,554 7,488 7,525 7,360
4,256 4,086 3,841 3,763 3,587
230
254
74
117
-59
-71
307
126
77
82
-103
225
669
5,827 5,712 5,730 5,769
5,*
93,810 93,528 92,751 92,762 92,658
39
1,152
1,686
1,881
326
287
Total commercial and industrial loans
113,525 113,302 112.497 112,510 112,313
of large commercial banks
-59
-12
-128
-88
16
-10
-39
1,212
-10
- 2
22
-120
-13
-24
-10
-24
III
-36
-417
-252
-56
-109
73
-429
-315
-144
-48
-296
-52
-87
53
50
25
- 7 2 5 -1,668
-465
-367
-750
-231
159 - 6 8 8
3
178
217
41
-34
92
'243
79
-167
- 5r 0 9
387
-138
- r4 0
99
-417
630
-59
-207
107
468
-532
1,065
106
-116
-431
-415
-88
-212
- 2
33
163
788
50
-73
-50
-379
38
-29
-48
147
189
19
-496
-263
-526
-51
-174
385
629
330
778
448
121
186
65
r
'47
405
358
r
392
529
137
-157
-388
-231
57
-232
-289
113 - 8 8 5
-772
-177
-883
- 7r0 6
-305
-240
65
-840
-3,428
-337 -1,650 -1,987
-517
3
-158
-198
-436
-15
643
2,685
9
1,386
317
-367
95
-641
304
-906
386
-6,731
757
-422
50
—97
24
31
197
-892
-7,881
-942
19
r
- 8 0
-110
-82
1,640
r
—291
229
— 142
-460
82
-5,825
All
-181
For notes see table below.
' T E R M " COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change during-
Outstanding
Oct.
27
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment,
Other fabricated metal
products
Other durable goods
Nondurable goods manufacturing:
Food, liquor, and tobacco,
Textiles, apparel, and
leather
Petroleum refining
Chemicals and rubber
Other nondurable goods..
Mining, including crude petroleum and natural gas,
Trade: Commodity dealers.,
Other wholesale
Retail
Transportation
Communication
Other public utilities
Construction
Services.
All other domestic loans
Foreign commercial and industrial loans
Total loans
Sept.
29
Aug.
25
July
28
June
30
1976
May
26
Apr.
28
Mar.
31
IV
1st
half
-169
76
34
-424
-78
-131
-284
-110
22
-115
-30
-244
-189
-225
Feb.
25
-50
-115
1,191
2,592
1,315
1,214
2,675
1,381
1,146
2,748
'1,354
1,191
2,901
1,399
1,241
3,029
1,505
1,293
3,088
1,488
1,283
3,055
1,632
1,291
3,144
1,691
1,335
3,072
1,643
-27
-354
-124
747
1,668
756
1,736
765
1,758
767
1,763
799
1,815
879
1,843
919
1,871
909
1,793
1,035
1,838
-43
-79
1,425
1,435
1,463
1,444
1,403
1,334
1,366
1,391
1,536
32
12
-187
107
-175
1,125
1,931
1,486
930
1,144
1,908
1,464
935
1,159
1,606
1,460
948
1,123
1,659
1,444
982
1,116
1,707
1,466
986
1,075
1,781
1,462
961
1,044
1,785
1,495
979
993
1,685
1,540
962
1,055
1,886
1,603
942
28
- 2
-108
-51
123
22
-74
24
121
-124
-156
98
4,904
190
1,344
2,008
4,250
998
3,898
1,915
5,368
2,700
4,731
'122
1,279
1,987
4,329
1,095
3,940
2,141
5,147
3,093
2,984
3,001
365
44,462 44,772 '44,179 44,409 '45,317 45,443 45,763 45,958 46,870
-545
'5,118 '5,220
207
191
1,340 1,308 1,308
2,080 2,061 2,032
3,941 4,032 4,237
990
937
948
'3,685 3,895 3,908
'1,711 1,690 1,744
'4,926 4,948 5,097
2,356 2,415 2,350
5,117
206
1,355
2,031
4,246
3,811
1,755
5,240
2,349
1,312
2,036
4,252
984
3,770
1,876
5,317
2,507
3,157
3,121
3,085
'5,137
1,400
2,173
3,883
910
3,523
1,708
4,886
2,447
5,342
209
1,394
2,134
3,934
903
3,604
1,696
4,967
2,419
3,388
3,522
3,462
5,514
220
186
3,141
r
1 Reported the last Wednesday of each month.
NOTE.—For description of series see article "Revised Series on Commercial and Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209.
1975
1976
1976
Industry
1,008
5,015
180
182
201
- 2
2
86
102
-303
-87
-304
-48
-130
69
-186
'316
17
-36
24
-13
- 8
10
- 8 1
-146
-82
74
420
18
68
12
-140
-83
- 8 1
-136
-43
-168
637
22
-43
-157
-51
13
-178
13
55
-110
'736
35
32
36
-153
-91
-71
-437
-38
-949
-171
-271
-350
233
-599
173
63
158
236
-641 -1,017
-781
-1,658
-266
Commercial and industrial "term" loans are all outstanding loans with
an original maturity of more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity of the commitment was in excess of 1 year.
A24
DEMAND DEPOSIT OWNERSHIP • NOVEMBER 1976
GROSS DEMAND DEPOSITS OF INDIVIDUALS y PARTNERSHIPS, AND CORPORATIONS 1
(In billions of dollars)
Type of holdei
Class of bank, and quarter or month
Total
deposits,
IPC
Financial
business
Nonfinancial
business
Consumer
Foreign
All
other
1970—Dec
17.3
92.7
53.6
1.3
10.3
1971—Dec
18.5
98.4
58.6
1.3
10.7
187.5
1972 Dec
18.9
109.9
65.4
1.5
12.3
208.0
1973—Sept
Dec
18.8
19.1
108.3
116.2
69.1
70.1
2.1
2.4
11.9
12.4
210.3
220.1
1974—Mar
Sept
Dec
18.9
18.2
17.9
19.0
108.4
112.1
113.9
118.8
70.6
71.4
72.0
73.3
2.3
2.2
2.1
2.3
11.0
11.1
10.9
11 .7
211.2
215.0
216.8
225.0
1975—Mar
June
Sept
Dec
18.6
19.4
19.0
20.1
111.3
115.1
118.7
125.1
73.2
74.8
76.5
78.0
2.3
2.3
2.2
2.4
10.9
10.6
10.6
11.3
216.3
222.2
227.0
236.9
1976—Mar
19.9
20.3
19.6
116.9
121.2
121.3
77.2
78.8
80.2
2.4
2.5
3.3
11.4
11.4
11.4
227.9
234.2
235.8
1971 Dec
1972 Dec
1973 Dec
1974—Dec
14.4
14.7
14.9
14.8
58.6
64.4
66.2
66.9
24.6
27.1
28.0
29.0
1.2
1.4
2.2
2.2
5.9
6.6
6.8
6.8
104.8
114.3
118.1
119.7
1975—Sept
Oct
Nov
Dec
14.7
15.1
15.4
15.6
65.5
66.7
68.1
69.9
29.6
29.0
29.4
29.9
2.1
2.2
2.2
2.3
6.2
6.3
6.4
6.6
118.1
119.3
121.6
124.4
1976 Jan
Feb
Mar
Apr
May
June
July
Aug
Sept.*
15.2
15.3
15.4
15.1
15.7
16.1
16.3
15.0
15.3
68.0
65.6
65.2
65.5
67.8
67.3
64.8
61.4
65.7
30.3
29.2
30.8
33.6
26.4
31.2
33.3
29.2
31.4
2.2
2.2
1.8
1.8
2.2
2.0
2.3
1.8
2.5
6.7
6.4
6.2
6.0
6.1
6.1
5.8
5.6
6.6
122.4
118.7
119.5
122.0
118.2
122.6
122.5
112.9
121.5
All insured commercial banks:
Sept.*
175.1
Weekly reporting banks:
1
Including cash items in process of collection.
NOTE.—Daily-average balances maintained during month as estimated
from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971
BULLETIN, p. 466.
DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions of dollars)
Class of
bank
All commercial....
Insured
National member
State member....
All member
Dec. 31,
1974
389
387
236
39
275
June 30,
1975
338
335
223
36
260
Dec. 31,
1975
280
280
188
35
223
Mar. 31,
1976
197
117
35
152
i Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the BULLETIN for
July 1972, p. 626. Categories shown here as "Other large" and "All other
member" parallel the previous "Reserve City" (other than in New York
City and the City of Chicago) and "Country" categories, respectively
(hence the series are continuous over time).
Class of
bank
All member—Cont.
Other large banks
All other member
All nonmember....
Insured
Noninsured
Dec. 31,
1974
69
206
115
112
3
June 30,
1975
74
186
79
76
3
Dec. 31,
1975
76
146
58
58
NOTE.—Hypothecated deposits, as shown in this table, are treated one
way in monthly and weekly series for commercial banks and in another
way in call-date series. That is, they are excluded from "Time deposits"
and "Loans" in the monthly (and year-end) series as shown on p. A-14;
from the figures for weekly reporting banks as shown on pp. A-l 8-A-22
(consumer instalment loans); and from the figures in the table at the
bottom of p. A-l 3. But they are included in the figures for "Time deposits" and "Loans" for call dates as shown on pp. A-l 4-A-l 7.
A25
NOVEMBER 1976 • LOAN SALES BY BANKS; OPEN MARKET PAPER
LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
To selected related institutions *
By type of loan
Date
1976—July
Total
7.
14.
21.
28.
Aug.
4.
11.
18.
25.
Sept.
i To bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of
the holding company.
1.
8.
15.
22.
29.
Oct.
NOTE.—Series changed on Aug. 28,1974. For a comparison
of the old and new data for that date, see p. 741 of the Oct.
1974 BULLETIN. Revised figures received since Oct. 1974
that affect that comparison are shown in note 2 to this table
6,
13,
20,
27,
Commercial
and
industrial
All
other
Real
estate
4,530
4,518
4,549
4,529
2,862
2,826
2,825
2,823
219
212
207
209
1,449
1,480
1,517
1,497
4,598
4,298
4,103
3,990
2,886
2,613
2,538
2,508
209
209
211
213
1,503
1,476
1,354
1,269
3,952
3,935
3,818
3,826
3,920
2,491
2,426
2,354
2,386
2,463
210
213
213
211
222
1,251
1,296
1,251
1,229
1,235
3,833
3,890
3,844
3,782
2,372
2,463
2,455
2,406
221
221
221
222
1,240
1,206
1,168
1,154
in t h e D e c . 1974 BULLETIN, p. A - 2 7 .
COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances
Commercial paper
End
of
period
1966
All
issuers
Nonfinancial
com- Dealer- DiDealer- Diplaced2 rectly-3 panies 4 placed rectlyplaced
placed
F.R. Banks
Accepting banks
Total
Others
Total
Own
bills
Bills
bought
Own
acct.
1,198
1,906
1,544
1,567
2,694
983
1,447
1,344
1,318
1,960
215
459
200
249
735
193
164
58
64
57
Foreign
ExImports
ports
from
into
United United
States States
All
other
2,022
2,090
2,717
3,674
4,057
997
1,086
1,423
1,889
2,601
829
989
952
1,153
1,561
254 3,894
179 3,907
581 5,406
,109 12,150
2,834
2,531
2,273
4,023
1,546 3,509
1,909 2,458
3,499 3,120
4,067 10,394
191
156
109
146
250
1,778
2,241
2,053
2,408
2,895
1,160
352
3,134
1,997
3,603
4,317
4,428
5,451
7,058
524
7,889
6,898
8,892
18,484
3,480
2,706
2,837
4,226
2,689
2,006
2,318
3,685
791
700
519
542
261
1,938
1,814
1,449
1,411
2,943
6,518
7,392
7,316
7,114
6,974
6,892
16,456
16,790
17,304
17,875
18,727
4,546
5,002
5,213
6,497
7,333
3,988
4,190
4,288
5,684
5,899
558
10,175
1,511
1,482
1,634
1,715
1,762
924
813
1,435
840
948
1,047
727
1,126
304
302
284
279
293
10,766
10,538
10,760
10,372
9,975
3,305
3,313
3,467
3,545
3,726
3,806 9,344
3,783 9,693
3,947 9,890
3,888 10,443
4,001 11,000
11,481
11,992
11,633
12,183
12,228
12,738
12,438
12,320
1.657
1,567
1.654
1.658
1,724
1,710
1.655
1,650
6,918
6,753
6,773
6,304
5,974
6,297
5,936
5,938
18,677
19,060
18,901
19,559
19,681
19,783
19,544
19,383
6,294
5,950
6,340
5,367
5,255
5,651
5,305
5,397
5,378
5,255
5,449
1,230
1,051
883
995
875
1,027
656
808
248
231
245
344
440
427
447
442
10,904
11,827
11,433
12,094
12,147
12,157
12,968
12,026
3,891
3,977
4,027
4,258
4,267
4,384
4,611
4,530
3,906
4,039
4,193
4,258
4,304
4,308
4,327
4,355
757
2,111
2,774
5,356
7,133
196 7
196 8
196 9
197 0
13,645
17,085
21,173
32,600
33,071
2,332
2,790
4.427
6,503
5,514
10,556
12,184
13,972
20,741
20,424
197 1
197 2
197 3
1974
32,126
34,721
41,073
49,144
5,297
5,655
5,487
4,611
20,582 6,247
22,098 6,968
27,204 8,382
31,839 12,694
1975-Aug.
Sept.
Oct..
Nov.
Dec.
49,810
48,257
50,394
49,512
47,690
5,645
5,574
6,360
6,389
6,239
32,172
30,496
32,308
32,003
31,276
11,993
12,187
11,726
1976-Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug.
48,858
49,927
49,300
49,572
50,537
50,011
51,138
50,063
6,072
6,401
6.428
6,246
6,443
6,075
6,187
6,243
31,305
31,534
31,239
31,143
31,866
31,198
32,513
31,500
11,120
1,226
1 Financial companies are institutions engaged primarily in activities
such as, but not limited to, commercial, savings, and mortgage banking;
sales, personal, and mortgage financing; factoring, finance leasing, and
other business lending; insurance underwriting; and other investment
activities.
.
2
As reported by dealers; includes all financial company paper sold in
the open market.
3 As reported by financial companies that place their paper directly
with investors.
Based on—
Held b y -
Bank-related 5
Financial
companies1
6,126
6,175
6,171
r
5,905
6,107
812
927
695
689
821
778
793
r
650
658
106
68
999
10,880
11,044
10,681
11,043
11,110
11,091
10,606
10,498
4
Nonfinancial companies include public utilities and firms engaged
primarily in activities such as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and services.
5 Included in dealer- and directly-placed financial company columns.
Coverage of bank-related companies was expanded in Aug. 1974. Most
of the increase resulting from this expanded coverage occurred in directlyplaced paper.
.
6 Beginning November 1974, the Board of Governors terminated the
System guarantee on acceptances purchased for foreign official accounts.
A26
INTEREST RATES • NOVEMBER 1976
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
Effective date
Rate
Effective date
Rate
Effective date
1974—Apr. 11
19..
25
10
1014
10%
1975—Jan.
9
15
20
28
1975—July 18
2
6..
10
17..
1014
10
934
9%
11*
Feb.
3
10
18
24
914
9
8 34
8%
Sept. 15
8
Oct.
Mar. 5
10
18
24
81/4
8
734
m
7%
May 20
714
May
11K
11%
June 26
11%
July
12
5..
Oct. 7
21
28
Nov. 4
14
25
3
11 A
11%
li
1034
10%
June
7%
7%
m
Nov.
Dec.
m
7
21
634
1
7
June
7
9
714
Aug. 12
1976—Jan.
Monthly average rate
Rate
7
1975—July
Aug.
Sept.
Oct.
Nov.
Dec.
7.15
7.66
7.88
7.96
7.53
7.26
1976—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
7.00
6.75
6.75
6.75
6.75
7.20
7.25
7.01
7.00
6.78
m
7
Aug. 2
RATES ON BUSINESS LOANS OF BANKS
Size of loan (in thousands of dollars)
All sizes
1--9
100-499
10-99
500-999
1,000 and over
Center
Aug.
1976
May
1976
Aug.
1976
May
1976
Aug.
1976
May
1976
Aug.
1976
May
1976
Aug.
1976
May
1976
Aug.
1976
May
1976
7.78
7.65
7.99
7.62
7.84
7.71
8.00
7.84
7.77
8.16
7.71
7.85
7.61
8.06
7.52
7.29
7.95
7.46
7.20
7.48
7.71
7.61
7.36
7.98
7.55
7.54
7.55
8.05
7.18
6.83
7.45
7.29
7.25
7.11
7.61
7.59
7.49
7.44
7.99
8.35
7.67
7.39
7.80
7.56
8.36
7.74
7.47
7.91
7.35
7.29
7.58
7.74
8.15
7.23
7.14
7.88
8.19
7.47
7.90
7.13
7.80
7.68
7.32
7.43
7.83
7.34
7.69
7.48
7.12
8.16
8.45
8.52
7.94
7.70
8.40
7.73
8.60
8.44
7.50
8.36
8.18
8.69
10.00
8.33
8.51
8.10
9.08
7.75
7.64
8.29
8.40
8.56
8.70
7.92
8.06
8.30
8.46
7.92
7.76
6.64
8.65
8.01
7.74
8.26
Short-term
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
7.80
7.48
8.18
7.70
7.95
7.75
8.15
7.44
6.99
7.79
7.44
7.66
7.51
7.75
9.06
8.85
9.41
8.65
9.33
8.83
9.26
8.91
8.84
9.24
8.39
9.20
8.75
9.14
8.58
8.40
8.84
8.50
8.76
8.24
8.79
8.38
8.29
8.58
8.21
8.65
8.13
8.51
7.99
7.91
8.25
7.85
8.00
7.80
8.28
Revolving credit
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
7.87
8.14
7.59
7.96
7.48
7.81
7.73
7.36
7.42
7.78
7.48
8.01
7.50
7.15
8.70
7.25
8.00
8.94
8.75
8.74
9.10
9.23
"8.92"
9.19
9.85
8.93
8.61
8.33
8.26
8.22
9.03
8.40
8.09
8.08
8.12
7.73
7.84
8.69
8.95
8.23
7.84
8.02
7.70
7.67
8.50
8.16
8.20
7.95
Long-term
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
8.45
8.52
8.62
8.05
8.88
8.42
8.67
8.02
7.85
7.35
8.59
8.03
7.89
8.23
9.61
"9.40"
8.83
9.60
10.85
9.28
9.21
7.68
9.10
8.38
9.49
10.53
9.43
9.02
8.27
9.43
9.07
9.08
9.04
8.58
8.80
8.45
9.19
8.28
8.90
8.92
8.97
8.55
8.05
8.93
8.26
9.88
8.23
8.81
NOVEMBER 1976 • INTEREST RATES
A27
MONEY MARKET RATES
(Per cent per annum)
Prime
commercial
paper1
Period
90-119
days
4 to 6
months
U.S. Government securities 5
Finance
CO.
paper
placed
directly,
3 to 6
months 2
Prime
bankers'
acceptances,
90 days 3
Federal
funds
rate 4
3-month bills6
Rate
on new
issue
Market
yield
6-month bills®
Rate
on new
issue
Market
yield
9- to 12-month issues
1-year
bill (market yield)6
Other7
3- to 5year
issues7
1967
1968
1969
5.10
5.90
7.83
4.89
5.69
7.16
4.75
5.75
7.61
4.22
5.66
8.21
4.321
5.339
6.677
4.29
5.34
6.67
4.630
5.470
6.853
4.61
5.47
6.86
4.71
5.46
6.79
4.84
5.62
7.06
5.07
5.59
6.85
1970
4.66
8.20
10.05
6.26
7.72
5.11
4.69
8.15
9.87
6.33
7.23
4.91
4.52
7.40
8.62
6.16
7.31
4.85
4.47
8.08
9.92
6.30
7.17
4.66
4.44
8.74
10.51
5.82
6.458
4.348
4.071
7.041
7.886
5.838
6.39
4.33
4.07
7.03
7.84
5.80
6.562
4.511
4.466
7.178
7.926
6.122
6.51
4.52
4.49
7.20
7.95
6.11
6.49
4.67
4.77
7.01
7.71
6.30
6.90
4.75
4.86
7.30
8.25
6.70
7.37
5.77
5.85
6.92
7.81
7.55
1975—Oct..
Nov.
Dec..
6.35
5.78
5.88
6.48
5.91
5.97
6.43
5.79
5.86
6.28
5.79
5.72
5.82
5.22
5.20
6.081
5.468
5.504
5.96
5.48
5.44
6.385
5.751
5.933
6.25
5.80
5.85
6.48
6.07
6.16
6.89
6.40
6.51
7.80
7.51
7.50
1976—Jan..
Feb ,
Mar.
Apr..
May,
June.
July.
Aug..
Sept.,
Oct..
5.15
5.13
5.25
5.08
5.44
5.83
5.54
5.35
5.33
5.10
5.27
5.23
5.37
5.23
5.54
5.94
5.67
5.47
5.45
5.22
5.16
5.09
5.27
5.14
5.38
5.78
5.53
5.46
5.31
5.08
5.08
4.99
5.18
5.03
5.53
5.77
5.50
5.32
5.28
5.06
4.87
4.77
4.84
4.82
5.29
5.48
5.31
5.29
5.25
5.03
4.961
4.852
5.047
4.878
5.185
5.443
5.278
5.153
5.075
4.930
4.87
4.88
5.00
4.86
5.20
5.41
5.23
5.14
5.08
4.92
5.238
5.144
5.488
5.201
5.600
5.784
5.597
5.416
5.311
5.073
5.14
5.20
5.44
5.18
5.62
5.77
5.53
5.40
5.30
5.06
5.44
5.53
5.82
5.54
5.98
6.12
5.82
5.64
5.50
5.19
5.71
5.78
6.12
5.85
6.36
6.52
6.21
5.99
5.79
5.49
7.18
7.18
7.25
6.99
7.35
7.40
7.24
7.04
6.84
6.50
5.70
5.72
5.53
5.48
5.38
5.80
5.81
5.65
5.65
5.50
5.50
5.63
5.53
5.50
5.50
5.69
5.66
5.48
5.47
5.34
5.58
5.37
5.27
5.30
5.28
5.368
5.412
5.190
5.226
5.194
5.36
5.34
5.15
5.23
5.17
5.754
5.768
5.430
5.536
5.497
5.75
5.61
5.44
5.54
5.45
6.08
5.90
5.72
5.84
5.74
6.46
6.35
6.13
6.17
6.12
7.36
7.30
7.18
7.26
7.21
1Q71
1972
1973
1974
1975
Week ending—
1976—July
10
17
Aug.
7,.
14 .
21 ,
28
.
.
.
5.38
5.38
5.38
5.30
5.50
5.50
5.50
5.43
5.50
5.50
5.50
5.40
5.34
5.34
5.33
5.30
5.36
5.25
5.29
5.28
5.151
5.181
5.143
5.138
5.16
5.17
5.15
5.11
5.473
5.422
5.390
5.380
5.46
5.42
5.40
5.35
5.72
5.65
5.64
5.59
6.11
6.04
5.95
5.92
7.12
7.06
7.04
6.98
Sept.
4 ... ,
11 , ,
18 ..
25
5.35
5.38
5.38
5.28
5.45
5.50
5.50
5.38
5.35
5.34
5.35
5.25
5.28
5.31
5.30
5.26
5.28
5.25
5.22
5.21
5.091
5.087
5.099
5 .<028
5.09
5.11
5.10
5.05
5.351
5.333
5.309
5.236
5.35
5.31
5.31
5.27
5.56
5.53
5.52
5.43
5.88
5.83
5.79
5.72
6.91
6.88
6.84
6.80
Oct.
2
9 . .
16 . .
23,. ,
30...
5.25
5.25
5.13
5.00
5.00
5.38
5.38
5.22
5.13
5.13
5.25
5.25
5.09
4.95
4.98
5.25
5.22
5.05
4.93
5.01
5.32
5.17
5.02
4.97
4.99
5.072
5.087
4.905
4.799
4.929
5.06
5.04
4.86
4.84
4.90
5.325
5.265
5.024
4.911
5.093
5.30
5.17
4.98
4.97
5.07
5.48
5.31
5.09
5.11
5.19
5.74
•5.62
5.44
5.39
5.45
6.80
6.61
6.35
6.39
6.56
1
Averages of the most representative daily offering rate quoted by
dealers.
2 Averages of the most representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of
the range of daily dealer closing rates offered for domestic issues; prior
data are averages of the most representative daily offering rate quoted by
dealers.
4 Seven-day averages of daily effective rates for week ending Wednesday.
Since July 19, 1973, the daily effective Federal funds rate is an average of
the rates on a given day weighted by the volume of transactions at these
rates. Prior to this date, the daily effective rate was the rate considered
most representative of the day's transactions, usually the one at which
most
transactions occurred.
5
Except for new bill issues, yields are averages computed from daily
closing
bid prices.
6
Bills quoted on bank-discount-rate basis.
7
Selected note and bond issues.
NOTE.—Figures for Treasury bills are the revised series described on p.
A - 3 5 o f t h e O c t . 1 9 7 2 BULLETIN.
A28
INTEREST RATES • NOVEMBER 1976
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds
Corporate bonds
State and local
Period
States
(longterm)
Aaa utility
Stocks
By selected
ratine
By
group
Dividend/
price ratio
Earnings/
price ratio
Total i
Total i
Aaa
Baa
New
issue
Recently
offered
Aaa
Baa
Industrial
Railroad
Public
utility
Preferred
Common
Common
6.46
5.41
5.50
7.12
Seasoned issues
1970
1971
1972
1973
1974
1975
6.59
5.74
5.63
6.30
6.99
6.98
6.42
5.62
5.30
5.22
6.19
7.05
6.12
5.22
5.04
4.99
5.89
6.42
6.75
5.89
5.60
5.49
6.53
7.62
8.68
7.62
7.31
7.74
9.33
9.40
8.71
7.66
7.34
7.75
9.34
9.41
8.51
7.94
7.63
7.80
8.98
9.46
8.04
7.39
7.21
7.44
8.57
8.83
9.11
8.56
8.16
8.24
9.50
10.39
8.26
7.57
7.35
7.60
8.78
9.25
8.77
8.38
7.99
8.12
8.98
9.39
8.68
8.13
7.74
7.83
9.27
9.88
7.22
6.75
7.27
7.23
8.23
8.38
3.83
3.14
2.84
3.06
4.47
4.31
1975—Oct
Nov
Dec
7.29
7.21
7.17
7.40
7.41
7.29
6.67
6.64
6.50
8.01
8.08
7.96
9.45
9.20
9.36
9.43
9.26
9.21
9.51
9.44
9.45
8.86
8.78
8.79
10.37
10.33
10.35
9.32
9.27
9.26
9.40
9.36
9.37
9.94
9.83
9.87
8.58
8.50
8.57
4.22
4.07
4.14
1976—Jan
Feb
Mar
Apr
May
June
July,...
Aug
Sept.. , .
Oct
6.94
6.92
6.87
6.73
6.99
6.92
6.85
6.79
6.70
6.65
7.08
6.94
6.90
6.61
6.85
6.83
6.71
6.53
6.42
6.29
6.22
6.04
5.99
5.68
5.88
5.85
5.71
5.51
5.40
5.29
7.81
7.76
7.72
7.50
7.75
7.75
7.64
7.48
7.36
7.20
8.70
8.63
8.62
8.48
8.82
8.72
8.63
8.52
8.29
8.25
8.79
8.63
8.61
8.52
8.77
8.73
8.63
8.50
8.33
8.24
9.33
9.23
9.18
9.04
9.06
9.05
8.97
8.85
8.72
8.63
8.60
8.55
8.52
8.40
8.58
8.62
8.56
8.45
8.38
8.32
10.24
10.10
9.99
9.83
9.76
9.72
9.63
9.49
9.30
9.18
9.16
9.12
9.10
8.98
9.00
8.96
8.90
8.79
8.66
8.58
9.32
9.25
9.16
9.05
8.96
8.88
8.81
8.75
8.66
8.54
9.68
9.50
9.43
9.27
9.31
9.36
9.26
9.07
8.91
8.83
8.16
8.00
8.07
8.04
8.06
8.08
7.99
7.90
7.80
3.80
3.67
3.65
3.66
3.76
3.75
3.64
3.74
3.71
3.85
4..
11..
18..
25..
6.77
6.73
6.70
6.66
6.43
6.43
6.41
6.42
5.42
5.40
5.40
5.40
7.38
7.38
7.35
7.35
8.38
8.28
8.28
8.23
8.38
8.35
8.30
8.29
8.78
8.75
8.73
8.68
8.41
8.38
8.39
8.36
9.41
9.35
9.31
9.24
8.72
8.67
8.66
8.63
8.69
8.71
8.67
8.63
8.98
8.95
8.92
8.85
7.93
7.97
7.90
7.85
3.74
3.71
3.74
3.64
2..
9..
16..
23..
30..
6.69
6.64
6.61
6.65
6.70
6.40
6.32
6.25
6.28
6.30
5.40
5.31
5.24
5.28
5.31
7.34
7.24
7.16
7.19
7.21
8.29
8.26
8.15
8.28
8.29
8.29
8.23
8.20
8.25
8.27
8.68
8.65
8.62
8.62
8.63
8.37
8.33
8.30
8.31
8.33
9.22
9.20
9.18
9.18
9.16
8.63
8.59
8.57
8.58
8.59
8.60
8.58
8.54
8.53
8.52
8.86
8.52
8.49
8.49
8.48
7.84
7.89
7.77
7.78
7.77
3.72
3.81
3.84
3.86
3.87
16
20
5
5
121
20
30
41
30
40
14
500
8.10
11.60
9.03
8.61
8.26
Week ending—
1976—Sept.
Oct.
Number2 of
issues
1 Includes bonds rated Aa and A, data for which are not shown separately. Because of a limited number of suitable issues, the number
of corporate bonds in some groups has varied somewhat. As of Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2 Number of issues varies over time; figures shown reflect most recent
count.
NOTE.—Annual yields are averages of weekly, monthly, or quarterly
data.
Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
Govt., averages of daily figures for bonds maturing or callable in 10 years
or more; from Federal Reserve Bank of New York. (2) State and local
500
govt., general obligations only, based on Thurs. figures, from Moody's
Investors Service. (3) Corporate, rates for "New issue" and "Recently
offered" Aaa utility bonds, weekly averages compiled by the Board of
Governors of the Federal Reserve System; and rates for seasoned issues,
averages of daily figures from Moody's Investors Service.
Stocks: Standard and Poor's corporate series. Dividend/price ratios
are based on Wed. figures. Earnings/price ratios as of end of period.
Preferred stock ratio based on 8 median yields for a sample of noncallable issues—12 industrial and 2 public utility. Common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates.
NOTES TO TABLES ON OPPOSITE PAGE:
Security Prices:
Stock Market Customer Financing:
1 Standard and Poor's corporate series. Effective July 1976, Standard
and Poor added a new financial group, including banks and insurance
companies, to the index. Stocks in this revised group are 400 industrials
(formerly 425), 40 public utility (formerly 60), 20 transportation (formerly
15 rail), and 40 financial.
2 The base period used for the "Total," "Industrial," and "Public
utility" series is 1941-43= 10, and for the other series is 1970= 10.
1 Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (Dec.
1970 BULLETIN, p. 920). Credit extended by brokers is end-of-month data
for member firms of the New York Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30.
1971.
2 In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise of subscription rights.
3 Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System's list of over the counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated;
at brokers, such stocks have no loan value.
4
Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
NOTE.—Annual data are averages of daily or weekly figures. Monthly
and weekly data are averages of daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year
bond. Municipal and corporate bonds, derived from average yields as
computed by Standard and Poor's Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks, derived from component common stock prices. Average daily volume of trading, presently
conducted 5 days per week for 6 hours per day.
NOVEMBER 1976 • SECURITY MARKETS
29
SECURITY PRICES
Common stock prices
New York Stock Exchange
Bond prices
fner cent of oarl
Standard and Poor's index2
TransIndus- Public porta- Fiutility tion nance
trial
Total
Industrial
Transpor- Utility
tation
10.02
13.90
15.83
12.66
11.51
11.42
10.00
11.86
13.98
13.37
10.17
9.92
45.72
54.22
60.29
57.42
43.84
45.73
48.03
57.92
65.73
63.08
48.08
51.88
32.14
44.35
50.17
37.74
31.89
30.73
37.24
39.53
38.48
37.69
29.82
31.45
54.64 96.63 10,532
70.38 113.40 15,381
78.35 129.10 16,487
70.12 103.80 16.374
49.67 79.97 13,883
46.62 83.15 18,568
42.59 11.46
43.77 11.82
43.25 11.69
9.31
9.64
9.50
46.87
47.64
46.78
52.26 30.79
52.91 32.09
51.89 31.61
31 .87
32.99
32.75
44.36
45.10
43.86
13.11
13.82
13.97
14.02
14.26
14.53
14.94
14.47
14.32
13.58
10.35
11.06
11.24
11.38
10.97
11.26
11.83
11.97
11.96
11.53
51.31
53.73
54.01
54.28
53.87
54.23
55.70
55.06
56.16
54.49
57.00
59.79
60.30
60.62
60.22
60.70
62.10
61.09
62.2
60.13
35.78
38.53
39.17
38.66
39.71
40.41
42.12
40.63
40.33
38.42
35.23
36.12
35.43
35.69
35.40
35.16
36.49
37.56
38.47
38.37
48.83
52.06
52.61
52.71
50.99
51.82
54.06
54.22
54.37
52.79
14.18
13.71
13.34
13.60
13.73
11.76
11.51
11.41
11.56
11.79
56.42
55.21
54.04
53.99
54.36
62.56
61.04
59.56
59.51
59.95
40.06
38.98
37.77
38.21
38.35
38.89
38.66
38.40
38.11
38.21
53.93 102.44 18,860
52.85 100.48 17,100
52.21 98.00 17,288
52.82 98.46 18,222
53.14 98.46 17,688
U.S.
Govt.
(longterm)
State
and
local
Corporate
AAA
60.52
67.73
68.71
62.80
57.45
57.44
72.3
80.0
84.4
85.4
76.3
68.9
61.6 83.22 91.29
65.0 98.29 108.35
65.9 109.20 121.79
63.7 107.43 120.44
58.8 82.85 92.91
56.2 85.17 96.15
55.23
55.77
56.03
66.1
66.2
67.4
56.0
56.3
56.1
57.75
57.86
58.23
59.33
57.38
57.86
58.38
58.88
59.54
59.93
69.7
68.8
69.2
71.3
69.1
69.3
71.1
74.1
74.8
76.3
57.0
57.1
57.3
58.2
56.5
56.8
57.1
57.9
58.8
59.1
96.86
100.64
101.08
101.93
101.16
101.78
104.20
103.29
105.45
101.99
108.45
113.43
113.73
114.67
113.76
114.50
117.01
115.63
117.87
114.15
46.99
47.22
45.67
46.07
45.70
45.61
47.48
48.81
50.50
50.63
59.65
60.03
60.28
59.92
59.58
74.8
76.1
76.8
76.2
76.1
58.5
59.1
59.4
59.0
59.0
105.59
103.27
101.17
101.08
101.83
118.46
115.71
113.30
113.01
113.94
50.86
50.77
50.40
49.78
50.71
Total
New York Stock Exchange index
(Dec. 31, 1965=50)
Volume of
trading in
stocks
Amer(thousands
ican
of shares)
Stock
Exchange
total
index
(Aug.
NYSE
31,
1973 =
100)
88.57 99.29
90.07 100.86
88.74 94.89
54.48
59.33
56.90
53.47
38.91
41.21
Finance
83.46 15,893
85.60 16.795
82.50 15,859
91 .47
100.58
104.04
103.00
103.65
103.57
105.24
102.79
102.82
99.06
32,794
31.375
23,069
18,770
17.796
18,965
18,977
15,758
18,406
17,539
For notes see opposite page.
STOCK MARKET CUSTOMER FINANCING
(In millions of dollars)
Margin credit at brokers and banks 1
Regulated
Unregulated 3
Margin stock
Total Brokers Banks
Convertible
bonds
Subscription
issues
Nonmargin
stock
credit at
banks
Brokers Banks Brokers Banks Brokers Banks
1975—Sept.
Oct.,
Nov.
Dec.
6,251
6,455
6,527
6,500
5,399
5,448
5,519
5,540
852
1.007
1976—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
6,568
7,152
7,617
7,932
8,110
8,276
8,417
8,683
8,566
5,568
6,115
6,575
6,856
7,103
7,248
7,519
7,622
7,707
1,000
For notes see opposite page.
Free credit balances
at brokers 4
By type
By source
End of period
2
1.008
960
1,037
1,042
1,076
1,007
1,028
898
1,061
859
Margin
accts.
Cash
accts.
5,250
5,300
5,370
5,390
811
956
958
909
145
144
146
147
30
36
37
36
10
15
13
15
2,520
2,311
2,270
2,281
470
545
490
475
1,455
1,495
1,470
1,525
5,420
5,950
6,410
6,690
6,940
7,080
7,340
7,450
7,530
946
984
988
1,023
957
976
854
1,008
813
146
34
34
34
32
31
33
28
34
32
20
20
20
21
19
19
16
19
14
2,321
2,333
2,355
2,325
2,357
2,368
2,317
2,368
2,830
655
685
595
570
540
540
530
555
555
1,975
2,065
1,935
1,740
1,655
1,680
1,635
1,605
1,710
162
162
163
161
166
176
167
174
A30
STOCK MARKET CREDIT; SAVINGS INSTITUTIONS • NOVEMBER 1976
EQUITY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS
SPECIAL MISCELLANEOUS ACCOUNT BALANCES
AT BROKERS, BY EQUITY STATUS OF ACCOUNTS
(Per cent of total debt, except as noted)
(Per cent of total, except as noted)
End of
period
Equity class (per cent)
Total
debt
(millions
of
dollars)1
End of period
80 or
more
70-79
60-69
50-59
40-49
Under
40
1975—Sept.. 5,250
Oct... 5,300
Nov.. 5,370
Dec.. 5,390
5.1
5.5
5.2
5.3
7.3
6.7
6.7
6.9
10.6
11.2
12.2
11.6
19.6
21.8
23.2
22.3
31.0
29.7
28.6
28.8
26.5
25.2
24.0
25.0
5,420
5,950
6,410
6,690
6,940
7,080
7,340
7,450
7,530
7.0
6.8
6.0
6.1
5.8
6.3
6.1
6.0
6.3
9.4
8.9
8.7
7.7
7.2
7.7
8.0
7.0
8.0
18.3
17.4
16.0
12.9
12.4
14.4
13.0
13.0
14.1
21.3
29.0
29.0
27.7
23.8
32.2
27.7
28.0
29.6
28.8
22.6
25.0
30.2
34.2
25.4
31.1
32.1
29.9
15.5
15.3
16.0
15.4
16.6
14.1
14.0
18.0
12.1
1976—Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept.
Net
credit
status
i Note 1 appears at the bottom of p. A-28.
NOTE.—Each customer's equity in his collateral (market value of collateral less net debit balance) is expressed as a percentage of current collateral values.
Equity class of accounts
in debit status
Total
balance
(millions
60 per cent Less than of dollars)
or more 60 per cent
1975—Sept.
Oct..
Nov.
Dec.
45.3
44.4
45.3
43.8
38.9
40.1
40.2
40.8
15.8
15.5
14.5
15.4
7,515
7,362
7,425
7,290
1976—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
45.8
44.4
44.0
43.0
41.4
40.6
40.5
42.1
42.4
44.0
44.7
46.0
45.0
46.2
49.0
48.7
46.5
47.4
10.3
10.9
10.4
7,770
8,040
8,050
7,990
8,030
8,150
8,300
8,320
8,550
12.0
12.4
10.4
10.8
11.4
10.2
NOTE.—Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually
sales proceeds) occur.
MUTUAL SAVINGS BANKS
(In millions of dollars)
Securities
Loans
End of period
Mortgage
Other
U.S.
Govt.
State
and
local
govt.
Corporate
and
other1
Cash
Total
assets—
Total
Other liabilities
assets
and
general
reserve
accts.
Deposits
3 or
less
Over
9
Total
2,770
1,047
1,593
1,250
664
896
627
713
598
418
301
463 1,310 3,447
609 1,624 4,539
405 1,008 3,261
726 2,040
232
403 1,803
203
3,255
2,778
2,950
3,215
2,755
8,254
8,304
8,328
8,378
8,428
981
1,011
950
972
896
431
372
368
323
301
237
256
275
222
203
573
499
394
379
403
2,222
2,138
1,987
1,896
1,803
110,979 2,892
112,019 3,275
* 14,090 2,859
114,752 3,106
115,521 3,296
116,876 2,841
117,883 3,161
118,225 3,490
8,455
8,527
8,577
923
930
1,092
1,175
1,237
1,174
315
352
360
398
419
438
423
195
184
251
426
401
427
436
480
575
624
1,859
1,867
2,130
2,290
2,426
2,402
2,433
62,069
67,563
73,231
74,891
77,127
2,808
2,979
3,871
3,812
4,028
3,334
3,510
2,957
2,555
4,777
385
873
926
930
1,541
17,674
21,906
21,383
22,550
27,964
1,389
1,644
1,968
2,167
2,367
1,711
2,117
2,314
2,645
3,195
89,369 81,440
100,593 91,613
106,651 96,496
109,550 98,701
120,999 109,796
2,024
2,566
1975—Aug...
Sept..
Oct...
Nov..,
Dec...
76,310
76,429
76,655
76,855
77,221
4,405
4,487
4,481
4,550
4,023
4,187
4,279
4,368
4,601
4,740
1,451
1,495
1,523
1,551
1,545
27,104
27,033
27,106
27,421
27,992
1,730
1,783
1,805
1,872
2,330
3,067
3,136
3,152
3,223
3,205
118,254
118,643
119,089
120,073
121,056
106,745
107,560
107,812
108,480
109,873
1976—Jan...
Feb..
Mar..,
Apr..,
May..
June r .,
July'..
Aug. P.
77,308
77,413
77,738
78,046
78,286
78,803
79,398
79,781
4,839
5,243
5,366
5,027
5,103
5,137
5,341
5,210
4,918
5,211
5,452
5,533
5,660
5,635
5,640
5,733
1,581
1,765
1,867
2,149
2,318
2,337
2,376
2,399
28,473
29,035
30,043
30,707
31,179
31,493
32,028
32,319
1,961
1,853
1,740
1,647
1,539
1,558
1,538
1,552
3,245
3,301
3,321
3,361
3,385
3,470
3,505
3,576
122,325
123,821
125,526
126,470
127,470
128,436
129,826
130,571
6-9
6,118
6,956
7,589
7,961
8,433
1,810
1971
19723
197 3
197 4
197 5
1 Also includes securities of foreign governments and international
organizations
and nonguaranteed issues of U.S. Govt, agencies.
2
Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans.
3
Balance sheet data beginning 1972 are reported on a gross-of-valua-
Mortgage loan2
commitments
classified by maturity
(in months)
Other General
liabili- reserve
acties
counts
2,888
8,612
8,654
8,719
8,781
8,555
1,201
281
290
215
185
tion-reserves basis. The data differ somewhat from balance sheet data
previously reported by National Assn. of Mutual Savings Banks, which
were net of valuation reserves. For most items, however, the differences
are relatively small.
NOTE.—NAMSB estimates for all savings banks in the United States.
NOVEMBER 1976 • SAVINGS INSTITUTIONS
A31
LIFE INSURANCE COMPANIES
(In millions of dollars)
Business securities
Government securities
Total
assets
End of period
United State and Foreign2
local
States 1
Bonds
Stocks
Mortgages
Real
estate
Policy
loans
Other
assets
197 1
197 2
197 3
197 4
197 5
222,102
239,730
252,436
263,349
289,304
10,373
10,637
10,519
10,900
13,758
3,828
3,827
3,444
3,372
4,736
3,363
3,367
3,412
3,667
4,508
3,182
3,443
3,663
3,861
4,514
100,432
113,720
118,599
119,637
135,317
79,825
86,875
92,680
97,717
107,256
20,607
26,845
25.919
21.920
28,061
75,496
76,948
81,369
86,234
89,167
6,904
7,295
7,693
8,331
9,621
17,065
18,003
20,199
22,862
24,467
11,832
13,127
14,057
15,385
16,974
1975—Aug.
Sept.
Oct..
Nov.
Dec.
280,700
282,065
285,015
287,122
289,304
12,140
12,253
12,858
13,243
13,758
3,819
3,821
4,342
4,613
4,736
4,106
4,165
4,193
4,260
4,508
4,215
4,267
4,323
4,370
4,514
131,473
132,037
133,865
134,961
135,317
104,434
105,440
106,250
107,040
107,256
27,039
26,597
27,615
27.921
28,061
88,208
88,331
88,481
88,657
89,167
,104
,197
,342
,450
,621
23,963
24,099
24,242
24,343
24,467
15,812
16,148
16,227
16,468
16,974
1976—Jan..
Feb.,
Mar.
Apr.
May
June
July.
Aug.
293,870
296,479
298,625
299,983
301,754
304,728
307,005
309,295
14,036
14,816
15,701
15,917
15,975
15,947
16,672
16,902
5,102
5,132
5,093
5,198
5,141
4,863
5,150
5,292
4,652
4,790
5,016
5,100
5,146
5,196
5,263
5,324
4,282
4,894
5,592
5,619
5,688
5,888
6,259
6,286
140.309
141,658
142.310
143,197
144,496
147,193
148,617
150,303
109,474
110,647
30,835
31,011
31,494
31,440
31,409
32,610
32,516
32,497
89,395
89,543
89,474
89,489
89,529
89,691
89,753
89,891
9,661
9,726
9,798
9,852
9,909
10,004
10,050
10,146
24,498
24,633
24,754
24,873
24,978
25,142
25,257
25,383
15,971
16,103
16,588
16.655
16,867
16,751
16.656
16,670
1 Direct and guaranteed obligations. Excludes Federal agency securities,
which
are included here with business securities.
2
Issues of foreign governments and their subdivisions and bonds of
the International Bank for Reconstruction and Development.
110,816
111,757
113,087
114,583
116,101
117,806
NOTE.—Estimates of the American Council of Life Insurance for all
life insurance companies in the United States. Figures are annual statement
values, with bonds carried on an amortized basis and stocks at market
value.
SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)
Assets
End of period
Mortgages
Investment
securities 1
Cash
Mortgage
loan commitments
outstanding
at end of
period 4
Other
Total
assets—
Total
liabilities
Savings
capital
Net
worth 2
Borrowed
money 3
10,731
12,590
19,117
22,991
28,802
206,023
243,127
271,905
295,524
338,395
174,197
206,764
226,968
242,959
286,042
13,592
15,240
17,056
18,436
19,776
8,992
9,782
17,172
24,780
20,730
5,029
6,209
4,667
3,244
5,187
4,213
5,132
6,042
6,105
6,659
7,328
11,515
9,526
7,454
10,675
Loans
Other
197 1
1972
19735
197 4
197 5
174,250
206,182
231,733
249,293
278,693
1975—Sept..
Oct...
Nov..
Dec...
270,600
273,596
275,919
278,693
30,786
31,652
32,498
30,900
27,745
28,145
28,610
28,802
329,131
333,393
337,027
338,395
277,201
279,465
281,711
286,042
19,414
19,663
19,919
19,776
20,031
20,306
20,413
20,709
5,128
5,207
5,164
5,187
7,357
8,752
9,820
6,680
12,585
11,748
11,365
10,675
1976—Jan...
Feb...
Mar..
Apr...
May..
June.,
July..
Aug..
Sept.*
280,071
282,487
286,556
290,727
294,759
299,574
303,815
308,049
312,152
34,271
36,128
36,722
36,437
37,005
35,316
36,029
35,873
35.241
29,716
30,251
30,462
30,663
31,268
31,708
32,112
32,442
32,531
344,058
348,866
353,740
357,827
363,032
366,598
371,956
376,364
379,924
291,418
295,364
302,436
305,234
308,284
313,326
316,510
318,675
324,277
19,948
19,630
18,746
18,220
17,759
17,670
18,251
18,439
18,935
19,154
5,051
5,134
5,379
5,787
6,156
6,464
6,640
6,697
6,753
8,011
20,211
20,475
20,688
20,761
20,997
9,460
7,494
8,572
10,234
7,796
9,370
10,791
8,353
11,111
12,878
14,445
15,512
16,620
16,639
16,328
15,796
15,486
1
18,185
2,857
21,574
2,781
21,055
23.240
30,900
Excludes stock of the Federal Home Loan Bank Board. Compensating
changes
have been made in "Other" assets.
2
Includes net undistributed income, which is accrued by most, but not
all,3 associations.
Advances from FHLBB and other borrowing.
4
Data comparable with those shown for mutual savings banks (on
opposite page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
Home Loan Mortgage Corporation, loans and notes insured by the
Farmers Home Administration, and certain other Govt.-insured mortgagetype investments, previously included in mortgage loans, are included
20,162
21,266
21,387
in other assets. The effect of this change was to reduce the mortgage
total by about $0.6 billion.
Also, GNMA-guaranteed, mortgage-backed securities of the passthrough type, previously included in "Cash" and "Investment securities"
are included in "Other" assets. These amounted to about $2.4 billion at
the end of 1972.
NOTE.—FHLBB data; figures are estimates for all savings and loan
assns. in the United States. Data are based on monthly reports of insured
assns. and annual reports of noninsured assns. Data for current and
preceding year are preliminary even when revised.
FEDERAL FINANCE • NOVEMBER 1976
A32
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions of dollars)
U.S. budget
Means of financing
Borrowings from the public
Period
Receipts Outlays
Surplus
or
deficit
(-)
Less: Cash and
monetary assets
Less: InvestPublic
ments by Govt,
debt Agency
accounts
Less: Equals:
securi- securiSpecial Total
ties
ties
notes i
Special Other
issues
Treasury
operating
balance
Other
means
of
financing,
net 2
Other
Fiscal year:
197 4
197 5
197 6
264,932 268,392 - 3 , 4 6 0 16,918
280,997 324,601 -43,604 58,953
300,005 365,610 -65,605 87,244
903 13,673 1,140
1,069 8,112 -1,081
- 9 0 6,581 -2,239
3,009
50,853
82,813
-3,417
-1,570
7,246
889 -2,077
1,890 -6,920
550 -9,412
Half year:
1974—July-Dec.
1975—Jan.-June
July-Dec.
1976—Jan.-June
139,607
141,189
139,453
160,552
150
- 6 8 9 2,840
- 4 2 3 5,272 -1,231
- 3 9 - 4 , 7 3 9 -1,186
- 5 1 11,320 -1,053
14,751
36,059
49,347
33,466
-3,228
1,657
866
6,380
557
1,643
-980
1,530
153,147 -13,540 18,429
171,202 -30,013 40,524
184,545 -45,092 43,460
181,066 -20,513 43,784
Month:
1975—Sep t
Oct
Nov
Dec
28,615
19,316
21,745
25,995
29,044
-429
32,425 -13,109
29,401 - 7 , 6 5 6
31,792 - 5 , 7 9 7
5,935
8,352
4,800
9,850
1976—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
25,634
20,845
20,431
33,348
22,679
37,615
22,660
27,360
31,753
30,725 - 5 , 0 9 1
29,833 - 8 , 9 8 7
29,054 - 8 , 6 2 3
32,476
872
28,410 - 5 , 7 3 1
30,567
7,048
33,906 -11,247
29,571 -2,211
30,996
757
7,757
9,465
6,620
1,483
8,699
9,760
4,114
8,782
1,373
-3,881
-2,746
-4,368
-5,044
9 -2,151
- 5 -3,656
-3
-749
-24
1,860
-367
260
-390
-249
8,463
11,743
5,936
8,215
6,961
-203
-3,844
1,971
r
441 r—633
-348
815
392 -1,732
-281
166
-393
1,062
-623
50
5,130
6,094
-1,645
1,711
-1,913
328
-564
-83
4
-549
-189
-345
1,310
-12
7,820
8,972
7,320
1,398
4,109
3,847
5,964
8,733
3,279
3,532
64
-4,032
3,517
-3,383
6,682
-4,784
1,658
5,705
114
-125
-288
545
502
782
-229
299
249
- 2
5
- 6
-32
-9
- 8
-139
353
-19
918
-46
-3,018
1,792
-1,259
-3,431
270
-4,565
1,917
Selected balances
Treasury operating balance
End
of
period
F.R.
Banks
Fiscal year:
1974
197 5
197 6
Tax
and
loan
accounts
Other
depositaries 3
Borrowing from the public
Total
Public
debt
securities
Agency
securities
Less:
Investments of
Govt, accounts
Less:
Special
notes i
Equals:
Total
Special
issues
12,012
Memo:
Debt of
Govt.sponsored
corps.—
Now
private4
2,919
5,773
11,972
6,152
1,475
2,856
343
7
9,159
7,591
14,835
475,060
533,188
620,432
10,943
10,853
114,921
123,033
129,614
25,273
24,192
21,952
825
(5)
346,053
396,906
479,719
65,411
76,092
Calendar year:
197 3
1974
197 5
2,543
3,113
7,286
7,760
2,745
1,159
70
70
7
10,374
5,928
8,452
469,898
492,664
576,649
11,586
11,323
10,904
106,624
117,761
118,294
24,978
25,423
23,006
825
(5)
349,058
360,804
446,253
59,857
76,459
78,842
Month:
1975—Sept.. ..
Oct
Nov... .
Dec
8,074
8,517
4,919
7,286
2,162
1 ,251
1,558
1,159
529
559
9
7
10,765
10,327
6,485
8,452
553,647
561,999
566,799
576,649
10,935
10,931
10,928
10,904
120,839
117,183
116,434
118,294
23,385
23,645
23,255
23,006
420,358
432,102
438,037
446,253
77,026
78,016
78,451
78,842
1976—Jan
Feb
Mar.. ..
Apr
May
June
July....
Aug.. . ,
Sept
10,077
10,350
7,145
9,808
6,746
11,972
8,739
10,795
13,296
1,899
1,682
864
1,723
1,407
2,856
1,312
914
4,118
7
7
7
7
7
7
11,982
12,039
584,405
584,405
600,490
601,973
610,672
620,432
624,546
633,328
634,701
10,902
10,902
10,901
10,870
117,901
117,901
118,340
118,390
123,520
129,614
127,969
129,680
127,767
23,333
23,333
22,686
22,690
22,140
21,952
21,607
20,297
20,285
454,072
463,045
470,365
471,763
475,872
479,719
485,683
494,417
497,696
79,355
78,359
78,712
80,039
77,665
79,325
80,123
80,784
1
8,016
11,537
8,159
14,835
10,051
11,709
17,414
Represents non-interest-bearing public debt securities issued to the
International Monetary Fund and international lending organizations.
New obligations to these agencies are handled by letters of credit.
2 Includes accrued interest payable on public debt securities until June
1973 and total accrued interest payable to the public thereafter; deposit
funds; miscellaneous liability (includes checks outstanding) and asset
accounts; seigniorage; increment on gold; fiscal 1974 conversion of interest receipts of Govt, accounts to an accrual basis; gold holdings, gold
certificates and other liabilities, and gold balance beginning Jan. 1974;
and net gain/loss for U.S. currency valuation adjustment beginning June
1975.
3 As of Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded "Other deposi-
10,861
10,853
10,714
11,066
11,047
taries" (deposits in certain commercial depositaries that have been converted from a time to a demand basis to permit greater flexibility in
Treasury cash management). "Other depositaries" have been excluded
from
the Treasury operating balance beginning July 1, 1976.
4
Includes debt of Federal home loan banks, Federal land banks, R.F.K.
Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate
credit banks and banks for cooperatives (both beginning Dec. 1968).
5 Beginning July 1974, public debt securities excludes $825 million of
notes issued to International Monetary Fund to conform with Office of
Management and Budget's presentation of the budget.
NOTE.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.
A33
NOVEMBER 1976 • FEDERAL FINANCE
FEDERAL FISCAL OPERATIONS: DETAIL
(In millions of dollars)
Budget receipts
Period
Total
Withheld
Pres.
elec- Nontion withcam- held
paign
fund
Fiscal year:
197 3
197 4
197 5
197 6
232,225
264,932
280,997
300,005
98,093
112,092
122,071
123,408
27,017
30,812
34,296
35,528
Half year:
1974—July-Dec..
1975—Jan.-June.
July-Dec..
1976—Jan.-June.
139,607
141,190
139,453
160,552
61,378
60,694
59,549
63,859
7,098
27,198
7,649
33 27,879
28,615 9,182
19,316 9,983
21,745 10,195
25,995 10,738
4,809
589
283
571
9,518
10,938
11,377
10,029
10,749
11,249
10,731
11,813
10,406
5,843
933
2,532
12,723
573
5,275
Month:
1975—Sep t
Oct
Nov
Dec
1976—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
25,634
20,845
20,431
33,348
22,679
37,615
22,660
27,360
31,753
Refunds
Social insurance taxes
and contributions
Corporation
income taxes
Individual income taxes
Employment
Excise
taxes and
taxes
contribution1 Un- Other
Gross
Net
empl. net
Rereinsur. re- 2 total
ceipts funds
ceipts
Pay- Selfroll empl.
taxes
Net
total
Cus- Estate Misc.
retoms and
gift ceipts 3
3,614 64,542 16,260
23,952 118,952 41,744 3,125 62,878 3,008 6,837 4,051 76,780 16,844
34,013 122,386 45,747 5,125 71,789 3,417 6,770 4,466 86,441 16,551
27,367 131,603 46,783 5,374 76,391 3,518 8,054 4,752 92,714 16,963
3,188
1,016 67,461 18,247 2,016
32,997 54,926 27,500 3,109
1,362 65,835 18,810 2,735
26,004 65,767 27,973 2,639
21,866 103,246 39,045 2,893 52,505 2,371 6,051
382 13,609
10,653
124 10,354
109 11,200
6,277
1,694
1,072
6.884
86 15,276
4,100 7,778
8,646 5,272
7,512 15,248
5,171 6,157
490 16,037
549 11,201
1,018
267 12,088
542
142 15,513
5,249
1,771
1,203
6,485
6,727
1,396
10,391
1.885
-81
1,1
6,812
34,418
254 2,914 2,187
37,371 3,163 3,856 2,279
268 2,861 2,314
35,443
40,947 3,250 5,193 2,438
39,774
46,667
40,886
51,828
8,761
7,790
8,759
8,204
1,958
1,718
1,927
2,147
2,284
2,327
2,573
2,643
3,140
3,370
3,397
4,630
75
259
716
110
400
395
377
395
6,280
5,206
7,994
5,565
1,430
1,462
1,476
1,482
312
343
310
347
431
396
428
386
539
382
511
485
223
225
237
693
275
129
1,832
952
359 2,940
322
254
723
442
370
435
386
380
425
408
464
386
430
,631
,635
,349
,811
,971
,068
,614
077
1,335
1,354
1,344
1,353
1,329
1,489
1,510
1,476
1,486
348
288
384
357
349
421
389
394
429
292
401
538
475
482
450
535
387
528
489
442 2,255
524
454
552
547
537
453
264 5,555
821 4,551
251
399 6,900
354 5,043
218 5,540
422
621
607
380
391
372
422
554
4,917 3,921
3,334 5,035 5,369
3,676 4,611 6,711
4,074 5,216 8,026
8,330
5 796
6 179
9 ,132
5 ,969
5 ,937
9 ,328
6 ,268
17
1,822
269
152
Budget outlays
Period
Fiscal year:
1974
197 5
197 6
Total
National
defense
Intl.
affairs
General
science,
space,
and
tech.
268,392
324,601
365,610
94,473
400,000
78,569
86,585
90,216
22,389
101,600
3,593
4,358
4,462
1,450
Month:
1975—Sept.r.
Oct....
Nov...
Dec...
29,044
32,425
29,401
31,792
6,923
8,192
7,533
7,981
419
290
376
398
405
409
1976—Jan....
Feb...
Mar...
Apr.. .
May..
June..
July...
Aug...
Sept...
30,725
29,833
29,054
32,476
28,410
30,567
33,906
29,571
30,996
6,915
6,120
7,752
7,994
7,136
8,134
7,462
7,268
7,659
351
320
320
249
292
1,077
902
395
152
336
413
379
360
348
371
403
417
309
T Q 7R
19776
7,100
- 8
362
3,977
3,989
4,197
1,129
4,500
NatComural
Com- mun.
reAgriand
cul- sources, merce
region,
and
envir.,
ture
transp. develand
opment
energy
Veterans
13,096
16,010
17,239
4,685
481
312
196
175
931
740
786
814
1,907
1,965
1,203
1,994
442
462
315
433
1,513
896
1,653
1,515
12,817
13,575
12,612
13,721
1,324
1,518
1,624
1,704
228
315
44
-51
270
718
1,833
935
984
924
929
1,313
1,106
1,173
1,819
421
421
270
464
448
528
450
531
525
1,478
1,530
1,809
1,606
1,258
1,738
1,348
1,473
1,862
13,714
13,360
14,382
13,679
13,229
13,501
14,066
13,885
13,799
1,696
1,659
1,652
1,555
1,248
1,367
1,385
1,223
-181
99
130
531
16,400
900
-672
1,610
466
1,238
2,056
651
1,977
1,626
General
Govt.,
law
enforce.,
and
justice
Interest 4
4,911 11,598 106,505 13,386
4,431 15,248 136,252 16,597
5,023 17,678 160,497 18,444
1,505 4,683 41,830 3,975
6,000 18,400 172,700 17,800
2,230 6,571
1,660 9,537
1,994 11,674
760 3,592
1,800 15,100
1 Old-age, disability, and hospital insurance, and Railroad Retirement
accounts.
2
Supplementary medical insurance premiums and Federal employee
retirement contributions.
3
Deposits of earnings by F. R. Banks and other miscellaneous receipts.
4
Effective September 1976. The "Interest" and "Undistributed offsetting
receipts" columns reflect the accounting conversion for interest on special
issues
for Govt, accounts from an accrual basis to a cash basis.
5
Consists of interest received by trust funds, rents and royalties on the
Outer
Continental Shelf, and Govt, contributions for employee retirement.
6
Estimates presented in Mid-session Review of the 1977 Budget, July
Education,
training, Health
employ- and
ment,
weland
fare
social
serv.
'
5,789
6,031
6,277
1,714
6,900
509
492
531
> 1,154
2,813
3,143
3,
3,
3,
2,831
121
570
567
420
617
668
502
601
612
RevUndisenue
trib.
shar.
offand
setting
fiscal
reassistance ceipts 4 , 5
6,746
7,005
7,114
2,024
7,400
-16,651
-14,075
-14,704
-2,567
-16,800
645
37
1,592 - 1 , 0 3 5
-887
15
1 -1,221
1,627
53
16
1,605
96
32
1,776
111
137
-1,441
-841
-1,814
-1,452
-1,449
-1,368
-1,136
-1,213
-217
16, 1976. Figures for outlay categories exclude special allowances for
civilian agency pay raises totaling $800 million for fiscal year 1977, and
therefore do not add to totals.
7 Effective in calendar year 1976, the fiscal year for the U.S. Govt, is
being changed from July 1-June 30 to Oct. 1-Sept. 30. The period July 1 Sept. 30 of 1976, data for which are shown separately from fiscal year
1976 and fiscal year 1977 totals, will be a transition quarter.
NOTE.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.
U.S. GOVERNMENT SECURITIES • NOVEMBER 1976
A34
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions of dollars)
Public issues (interest-bearing)
Total
gross
public
debt i
End of period
Marketable
Total
Total
Certificates
Bills
Notes
Bonds 2
Nonmarketable
Convertible
bonds
Total 3
1968—Dec.
1969—Dec.
1970—Dec.
358.0
368.2
389.2
296.0
295.2
309.1
236.8
235.9
247.7
75.0
80.6
87.9
76.5
85.4
101.2
85.3
69.9
58.6
2.5
2.4
2.4
56.7
56.9
59.1
1971—Dec..
1972—Dec.
1973—Dec.
1974—Dec.
424.1
449.3
469.9
492.7
336.7
351.4
360.7
373.4
262.0
269.5
270.2
282.9
97.5
103.9
107.8
119.7
114.0
121.5
124.6
129.8
50.6
44.1
37.8
33.4
2.3
2.3
2.3
2.3
72.3
79.5
88.2
1975—Oct.,
Nov.
Dec.
562.0
566.8
576.6
443.6
447.5
457.1
350.9
355.9
363.2
147.1
151.1
157.5
166.3
167.1
37.6
38.7
38.6
2.3
2.3
2.3
90.5
89.3
91.7
1976—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
584.4
593.9
600.5
602.0
610.7
620.4
624.5
633.3
634.7
637.6
463.8
473.7
480.7
482.4
484.4
489.5
495.5
502.5
505.7
508.7
369.3
378.8
385.3
386.4
388.0
392.6
397.7
404.3
407.7
408.6
159.6
171 .1
177.6
183.1
185.8
186.5
191 .8
197.2
203.0
206.3
207.3
38.6
39.1
39.0
38.9
39.7
39.6
39.1
39.9
39.8
39.8
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
92.2
92.7
93.1
93.6
94.1
94.6
95.5
95.9
95.8
97.8
166.1
162.1
163.1
161.8
161 .8
161 .2
161 .4
161.4
161 .5
161.5
1
Includes non-interest-bearing debt (of which $613 million on October
31, 1976, was not subject to statutory debt limitation).
2 Includes Treasury bonds and minor amounts of Panama Canal and
postal savings bonds.
3 Includes (not shown separately): depositary bonds, retirement plan
bonds, Rural Electrification Administration bonds, State and local government bonds, and Treasury deposit funds.
88.2
Foreign
Savings
bonds
and
notes
4.3
3.8
5.7
52.3
52.2
52.5
16.8
54.9
58.1
60.8
63.8
20.6
26.0
22.8
21.2
21.3
67.2
67.6
67.9
21 .6
68.2
68.6
21.6
21.7
21.7
21.6
21.5
21.5
21.4
21 .0
20.8
22.3
69.0
69.4
69.8
70.1
70.8
71.5
71.2
71.5
4
Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency-series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
NOTE.—Based on Monthly Statement of the Public Debt of the United
States, published by U.S. Treasury. See also second paragraph in NOTE to
table below.
OWNERSHIP OF PUBLIC DEBT
(Par value, in billions of dollars)
Held b y -
Held by private investors
Total
gross
public
debt
U.S.
Govt,
agencies
and
trust
funds
F.R.
Banks
Total
1968—Dec
1969—Dec
1970—Dec
358.0
368.2
389.2
76.6
89.0
97.1
52.9
57.2
62.1
1971—Dec
1972—Dec
1973—Dec
424.1
449.3
469.9
106.0
116.9
129.6
End of
period
Indiv iduals
Commercial
banks
Mutual
savings
banks
Insurance
companies
Other
corporations
State
and
local
govts.
228.5
222.0
229.9
66.0
56.8
62.7
3.8
3.1
3.1
8.4
7.6
7.4
14.2
10.4
7.3
24.9
27.2
27.8
51.9
51.8
52.1
70.2
69.9
78.5
247.9
262.5
261.7
65.3
67.7
60.3
3.1
3.4
2.9
7.0
6.6
6.4
11.4
9.8
10.9
25.4
28.9
29.2
54.4
57.7
60.3
Foreign
and
international 1
Other
misc.
investors 2
23.3
29.0
29.1
14.3
11.2
20.6
21.9
25.0
19.9
18.8
16.2
16.9
46.9
55.3
55.6
15.6
17.0
19.3
Other
Savings
bonds securities
1974—Dec
492.7
141.2
80.5
271.0
55.6
2.5
6.1
11.0
29.2
63.4
21.5
58.4
23.2
1975—Aug
Sept
Oct
Nov
Dec
547.2
553.6
562.0
566.8
576.6
144.8
142.3
138.8
137.7
139.3
82.5
87.0
87.2
85.1
87.9
320.4
324.4
336.0
343.9
349.4
74.8
78.3
79.3
82.2
85.1
3.9
4.0
4.2
4.4
4.5
7.5
7.7
7.9
8.8
9.3
16.0
15.0
17.5
20.0
20.2
31.2
32.2
33.8
33.9
33.8
66.2
66.5
66.8
67.1
67.3
22.6
23.0
23.8
23.9
24.0
67.3
65.5
66.9
66.1
66.5
29.1
31.1
32.2
35.5
38.6
1976—Jan
Feb
Mar
Apr
May
June
July
Aug.**
584.4
593.9
600.5
602.0
610.7
620.4
624.5
633.3
139.3
139.7
139.1
139.1
143.7
149.6
147.6
148.0
89.8
89.0
89.8
91.8
90.5
94.4
90.7
94.0
355.3
365.1
371.7
371.0
376.4
376.4
386.2
391.3
86.0
87.2
91.9
91.7
91.6
91.8
94.0
92.5
4.7
4.9
5.1
5.1
5.3
5.1
5.3
5.4
10.0
10.1
10.4
10.3
10.4
10.5
11.1
11.6
21.2
23.2
23.0
23.8
26.0
25.0
27.0
27.8
34.6
36.4
37.8
37.7
37.6
39.5
37.2
38.7
67.7
68.0
68.4
68.8
69.2
69.6
70.3
70.9
24.0
25.8
26.0
25.8
26.6
26.8
26.8
28.8
68.3
69.6
68.1
70.2
71.0
69.8
72.8
74.6
38.9
39.9
40.8
37.4
38.7
38.2
41.9
40.9
1
Consists of investments of foreign and international accounts in
the United States.
2 Consists of savings and loan assns., nonprofit institutions, corporate pensions trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and
trust funds; Treasury estimates for other groups.
The debt and ownership concepts were altered beginning with the
Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed securities and (2) remove from U.S. Govt, agencies and trust funds
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts. Beginning in July 1974, total gross public debt includes Federal
Financing Bank bills and excludes notes issued to the IMF ($825 million).
NOVEMBER 1976 • U.S. GOVERNMENT SECURITIES
A35
OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
Within 1 year
Type of holder and date
All holders:
1973—Dec.
1974—Dec.
1975—Dec.
1976—Aug.
Sept.
Total
Bills
Other
1-5
years
5-10
years
10-20
years
Over
20 years
270,224
282,891
363,191
404,314
407,663
141,571
148,086
199,692
204,787
206,062
107,786
119,747
157,483
161,433
161,505
33,785
28,339
42,209
43,354
44,557
81,715
85,311
112,270
128,994
131,102
25,134
27,897
26,436
44,010
44,029
15,659
14,833
14,264
13,260
13,221
6,145
6,764
10,530
13,263
13,249
U.S. Govt, agencies and trust funds:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
20,962
21,391
19,347
16,657
16,640
2,220
2,400
2,769
2,291
2,298
631
588
207
512
544
1,589
1,812
2,562
1,779
1,754
7,714
7,823
7,058
5,784
5,726
4,389
4,721
3,283
2,556
2,540
5,019
4,670
4,233
3,676
3,676
1,620
1,777
2,053
2,350
2,401
Federal Reserve Banks:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
78,516
80,501
87,934
94,030
96,427
46,189
45,388
46,845
49,192
50,462
36,928
36,990
38,018
40,161
41,364
9,261
8,399
8,827
9,031
9,098
23,062
23,282
30,518
29,814
30,531
7,504
9,664
6,463
9,932
10,242
1,577
1,453
1,507
1,598
1,606
184
713
2,601
3,495
3,587
170,746
180,999
255,860
293,627
294,596
93,162
100,298
150,078
153,304
153,302
70,227
82,168
119,258
121,306
119,597
22,935
18,130
30,820
31,998
33,705
50,939
54,206
74,694
93,396
94,845
13,241
13,512
16,690
31,522
31,247
9,063
8,710
8,524
7,986
7,939
4,341
4,274
5,876
7,418
7,261
45,737
42,755
64,398
70,015
70,201
17,499
14,873
29,875
26,926
26,524
7,901
6,952
17,481
14,791
14,413
9,598
7,921
12,394
12,135
12,111
22,878
22,717
29,629
36,165
36,740
4,022
4,151
4,071
6,002
6,151
1,065
733
552
487
451
272
280
271
435
334
Mutual savings banks:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
1,955
1,477
3,300
4,032
3,975
562
399
983
1,059
1,026
222
207
554
391
368
340
192
429
668
658
750
614
1,524
2,102
2,097
211
174
448
602
600
300
202
232
188
184
131
88
112
80
68
Insurance companies:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
4,956
4,741
7,565
9,749
9,654
779
722
2,024
2,003
1,899
312
414
1,513
1,349
1,263
467
308
511
654
636
1,073
1,061
2,359
3,748
3,744
1,278
1,310
1,592
2,300
2,333
1,301
1,297
1,154
1,134
1,117
523
351
436
564
561
4,905
4,246
9,365
15,182
14,102
3,295
2,623
7,105
11,244
10,115
1,695
1,859
5,829
9,766
8,731
1,600
764
1,276
1,478
1,384
1,281
1,423
1,967
3,595
3,578
260
115
175
241
316
54
26
61
63
60
15
59
57
39
32
Savings and loan assbciations:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
2,103
1,663
2,793
4,393
4,439
576
350
914
1,963
1,895
87
518
1,348
1,280
455
263
396
615
615
1,011
835
1,558
2,169
2,283
320
282
216
171
174
151
173
82
72
69
45
23
22
19
18
State and local governments:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
9,829
7,864
9,285
11,298
11,467
5,845
4,121
5,288
6,472
6,604
4,483
3,319
4,566
5,239
5,452
1,362
802
722
1,233
1,152
1,870
1,796
1,761
2,252
2,252
778
815
782
1,103
1,162
1,003
800
896
766
760
332
332
558
706
689
101,261
64,606
77,210
103,889
103,637
105,239
55,493
69,330
88,797
87,876
88,090
9,113
7,880
15,092
15,761
17,149
22,076
25,760
35,894
43,366
44,151
6,372
6,664
9,405
21,103
20,511
5,189
5,479
5,546
5,277
5,299
3,023
3,141
4,420
5,576
5,559
31
31
31
31
30
Held by private investors:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
Commercial banks:
1973—Dec. 31
1974—Dec. 31
1975—Dec. 3 1 . . . . .
1976—Aug. 31
Sept. 30
Nonfinancial corporations:
1973—Dec 31
1974—Dec. 31
1975—Dec. 31
1976—Aug. 31
Sept. 30
All others:
1973—Dec.
1974—Dec.
1975—Dec.
1976—Aug.
Sept.
31
31
31
31
30
118,253
159,154
178,957
180,759
NOTE.—Direct public issues only. Based on Treasury Survey of
Ownership.
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting: (1) 5,509 commercial banks, 471 mutual savings
121
banks, and 727 insurance companies combined, each about 80 per cent;
(2) 451 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 500 State and local govts., about 40 per cent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A36
U.S. GOVERNMENT SECURITIES • NOVEMBER 1976
DAILY-AVERAGE DEALER TRANSACTIONS
(Par value, in millions of dollars)
U.S. Government securities
By maturity
By type of customer
Period
Total
Within
1 year
1-5
years
1975—Sep t
Oct
Nov
Dec
5,566
8,714
7,594
7,586
4,032
5,929
5,519
5,919
1,315
2,332
1,353
1,270
1976—Ja n
Feb
Mar
Apr.
May
June
July
Aug
Sept
9,509
8,329
9,044
10,293
8,557
8,582
9,663
10,579
9,541
7,049
5,863
6,763
7,667
6,002
6,415
6,846
6,170
5,828
1,765
1,553
1,807
10,417
7,776
7,259
11,839
10,118
12,689
16,153
14,978
10,636
5-10
years
128
309
534
278
1,593
1,616
1,771
2,548
2,488
569
755
358
306
700
426
946
1,498
956
4,495
4,204
7,519
6,417
2,979
2,295
2,098
2,852
r
2,393
980
774
743
1,103
1,024
7,484
8,796
8,923
6,279
2,704
3,848
3,065
2,815
2,231
3,136
2,619
1,317
2,186
Over
10 years
U.S. Govt, U.S. Govt,
securities securities
dealers
brokers
Commercial
banks
All
otheri
91
144
189
931
1,271
1,070
1,190
1,405
2,675
2,176
2,217
1,198
1,839
1,875
1,977
2,033
2,929
2,474
2,202
126
158
116
134
263
1,265
951
1,308
1,341
952
1,312
1,356
1,401
1,273
3,118
2,389
2,777
3,154
2,907
2,543
3,230
3,284
2,889
2,192
2,196
2,276
2,426
2,128
1,983
2,078
2,355
2,239
2,935
2,793
2,683
3,372
2,571
2,743
2,999
3,539
3,139
215
365
283
1,479
1,066
852
1,498
1,387
3,267
2,248
2,048
3,922
3,237
2,393
1,892
1,817
2,674
'2,229
3,278
2,570
2,541
3,745
3,265
270
373
372
226
2,004
1,876
1,603
1,227
3,926
6,215
5,595
3,813
3,015
3,708
3,268
2,205
3,744
4,354
4,513
3,391
120
126
99
363
270
Week ending—
1976—Sept.
1,
8,
15,
22,
29,
Oct.
6,
13.
20.
27.
6,081
i Since Jan. 1972 has included transactions of dealers and brokers in
securities other than U.S. Govt.
NOTE.—The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank of New York.
377
211
They do not include allotments of, and exchanges for, new U.S. Govt,
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the number of
trading days in the period.
DAILY-AVERAGE DEALER FINANCING
DAILY-AVERAGE DEALER POSITIONS
(In millions of dollars)
(Par value, in millions of dollars)
U.S. Government securities, by maturity
Period
Within
All
maturiyear
ties
1-5
years
5-10
years
Over
10
years
U.S.
Govt,
agency
securities
Commercial banks
All
sources
Period
New
York
City
Elsewhere
1,160
1,640
1,792
1,393
1,304
Corporations 1
1975—Sept
Oct
Nov
Dec
5,718
7,322
6,752
6,061
5,214
6,019
5,011
5,274
410
1,091
640
322
56
111
594
218
39
102
506
247
529
••498
953
982
1975—Sep t
Oct
Nov
Dec
6,576
6,940
7,215
7,107
2,001
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
6,305
6,263
6,884
6,733
5,272
5,895
7,118
8,511
9,496
5,287
5,477
6,360
6,328
4,852
5,489
6,370
6,948
8,152
449
381
286
190
232
251
254
493
530
398
224
122
131
126
144
466
624
510
170
183
116
84
62
11
29
446
304
694
602
537
508
183
335
568
806
867
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
6,766
6,700
7,175
7,587
6,089
7,326
7,772
9,264
10,827
1,757
1,705
1,865
1,966
1,346
1,819
1,496
1,671
2,073
1,337
850
1,138
1,734
4
11
18
25
7,800
8,783
8,199
8,211
6,951
6,885
6,370
6,696
568
607
399
488
284
853
781
514
-2
437
649
514
519
753
771
894
1976—Aug.
8,781
8,951
8,919
9,150
1,225
1,751
1,661
1,555
1,950
1,637
1,344
1,974
1,897
1
8
15
22,
29
9,517
9,963
9,244
10,097
8,751
8,043
8,351
7,825
8,810
7,813
509
637
597
593
248
515
571
478
457
443
449
403
344
237
246
1,052
910
774
957
767
Sept.
10,541
10,996
10,905
10,715
10,886
1,950
2,182
2,502
2,005
1,733
1,497
1,984
1,963
2,027
1,435
1,461
Sept.
1,026
1,494
1,522
1,600
1,949
972
817
991
1,086
1,147
1,017
1,225
1,126
975
1,258
1,569
1,879
1,715
Week ending—
Week ending—
1976—Aug.
1,658
1,958
NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract, unless the
contract is matched by a reverse repurchase (resale) agreement or delayed
delivery sale with the same maturity and involving the same amount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders of the securities rather than
dealer trading positions.
Average of daily figures based on number of trading days in the period.
4...
11...
18...
25...
1...
8...
15...
22...
29...
1,618
2,202
2,474
1,814
1,449
1,810
1,793
1
All business corporations, except commercial banks and insurance
companies.
NOTE.—Averages of daily figures based on the number of calendar days
in the period. Both bank and nonbank dealers are included. See also
NOTE to the table on the left.
NOVEMBER 1976 • FEDERALLY SPONSORED CREDIT AGENCIES
A37
MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal National
Mortgage Assn.
(secondary market
operations)
Federal home loan banks
Liabilities and capital
10,100
9,933
8,784
9,947
9,657
9,505
9,319
9,211
16,044
16,247
16,380
16,564
4,356
4,546
4,656
4,590
4,470
4,413
4,420
4,360
4,467
3,793
3,878
3,918
3,921
3,761
3,733
3,757
3,908
3,970
9,944
10,013
10,272
10,762
10,823
9,201
9,254
9,812
9,877
10,034
9,998
10,531
10,643
10,729
16,746
16,930
17,264
17,514
17,731
17,979
18,202
18,390
18,570
2,679
2,685
2,690
2,705
31,157
31,466
31,647
31,916
28,933
29,373
29,319
29,963
2,971
3,085
3,182
2,990
2,891
2,949
2,907
3,073
3,177
2,802
2,829
2,827
2,829
2,836
2,839
2,848
2,854
2,864
31,866
31,704
31,564
31,468
32,113
32,090
32,075
32,131
32,112
29,809
29,758
30,021
30,148
29,805
29,863
29,845
30,429
30,685
18,720
18,766
18,874
18,863
5,549
5,286
6,063
6,394
5,585
3,739
5,626
5,292
5,130
97
69
18,850
17,738
17,714
17,713
17,114
17,136
17,101
17,112
17,077
113
97
118
103
95
146
3,109
3,453
3,664
3,643
2,275
2,291
2,527
2,701
114
70
87
109
110
3,847
4,087
4,041
3,979
28,201
2,030
2,076
2,298
2,577
3,575
4,247
4,368
4,439
4,376
17,106
16,380
15,757
15,336
15,215
15,274
15,403
15,751
16,062
7,186
7,917
9,107
11,071
13,643
15,206
17,701
19,238
23,001
2,332
1,789
1,548
1,745
2,484
17,482
17,578
17,606
17,845
1,944
2,670
3,561
4,799
5,503
5,804
6,861
8,400
15,502
17,791
19,791
24,175
29,709
10,183
7,139
6,971
15,362
21,878
3,864
2,520
2,225
3,537
3,094
4,974
5,669
6,094
7,198
8,848
1,607
1,618
1,756
2,122
2,624
105
142
129
157
144
10,614
7,936
7,979
15,147
21,804
(L)
Mortgage
loans
(A)
Loans
to
cooperatives
(A)
Capital
Stock
Cash
and
deposits
Bonds
Debentures
,and
notes
(L)
Member
deposits
Investments
NOTE.—Data from Federal Home Loan Bank Board, Federal National
Mortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts of all agencies, except for stock of FHLB's.
Bonds, debentures, and notes are valued at par. They include only publicly
Federal
land
banks
Federal
intermediate
credit banks
Loans
and
discounts
(A)
Mortgage
loans
(A)
Bonds
and
notes
Advances
to
members
Banks
for
cooperatives
Bonds
(L)
1,755
1,801
11,188
11,417
11,555
11,580
offered securities (excluding, for FHLB's, bonds held within the FHLB
System) are not guaranteed by the U.S. Govt. Loans are gross of valuation
reserves and represent cost for FNMA and unpaid principal for other
agencies.
NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions of dollars)
Issues for new capital
All issues (new capital and refunding)
Type of issuer
Type of issue
Total
General
obligations
Revenue
24,963 15,220 8,681
23,653 13,305 9,332
23,969 12,257 10,632
24,315 13,563 10,212
30,607 16,020 14,511
2,171
2,337
2,385
2,062
358
722
346
440
490
028
2; 691
2,765
2,694
907
1,252
1,120
1,203
1,341
1,057
1,136
1,332
2,173
1,211
1,866
1,689
1,211
1,375
1,166
1,040
995
1,186
1,269
1,224
1,218
1,611
1,324
1,496
1,488
1,465
HAAl
1,000
959
1,022
461
U.S.
Govt,
loans
State
Special
district
Other2
and
stat.
auth.
5,999 8,714
4,991 9,496
4,212 9,505
4,784 8,638
7,438 12,441
Use of proceeds
Total
Edu- Roads
and
cation bridges
Utilities 4
Hous- Veterans'
ing^
aid
10,246
9,165
10,249
10,817
10,660
24,495
22,079
22,397
23,508
29,495
5,278
4,981
4,311
4,730
4,689
2,642
1,689
1,458
768
1,277
5,214
4,714
5,654
5,634
7,209
2,068
1,910
2,639
1,064
647
447
487
618
48
44
28
130
692
367
70
113
160
102
487
357
482
470
434
1,185
979
1,244
1,043
614
855
667
576
2,123
2,241
2.318
1,990
279
212
219
287
134
60
29
495
639
446
1,254
457
824
590
308
669
470
1,073
1,449
824
1,227
1,400
1,097
1,261
1,162
1,164
638
810
1,262
746
1,256
1,331
1,118
930
1,056
2,274
2,622
3,180
2.319
3,303
2,807
2,470
2,504
2,504
432
360
439
356
710
414
309
373
347
95
135
215
26
384
75
21
95
90
601
574
710
679
956
745
1,000
784
731
1
Only bonds sold pursuant to 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual
contributions to the local authority.
2
Municipalities, counties, townships, school districts.
3
Excludes U.S. Govt, loans. Based on date of delivery to purchaser
and payment to issuer, which occurs after date of sale.
Total
amount
deliv-3
ered
88
20
4
Water, sewer, and other utilities.
5 Includes urban redevelopment loans.
NOTE.—Security Industries Assn. data; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.
A38
SECURITY ISSUES • NOVEMBER 1976
TOTAL NEW ISSUES
(In millions of dollars)
Gross proceeds, all issues1
Noncorporate
Corporate
Period
Total
U.S.
Govt. 2
Bonds
U.S.
Govt.
agency3
State
and local
(U.S.) 4
Other 5
12,825
23,883
23,070
22,700
1,589
1,385
Stock
Total
Total
Publicly
offered
Privately
placed
Preferred
Common
40,228
32,025
38,311
53,644
26,132
21,049
32,066
42,781
17,425
13,244
25,903
32,603
8,706
7,802
6,160
10,177
3,370
3,337
2,253
3,458
10,725
7,642
3,994
7,405
1975—June
July
Aug
Sept
Oct
Nov
Dec
5,596
4,327
2,405
2,836
4,705
4,068
4,325
4,594
3,673
1,842
1,999
3,158
3,296
3,528
3,943
2,658
1,356
1,414
2,389
1,666
1,761
651
1,014
486
585
769
1,630
1,767
230
198
129
308
332
444
462
772
456
434
529
1,215
324
335
1976—Jan.rr
Feb.
Mar. r
Apr.rr
May
June
3,381
3,842
6,632
3,523
4,188
6,269
2,802
2,915
4,585
2.995
2.996
4,875
2,189
2,142
3,238
2,350
1,937
3,135
613
773
1,347
645
1,059
1,740
148
173
443
61
291
359
431
754
1,604
467
901
1,035
197 2
197 3
197 4
1975
84,792
99,050
17,080
19,057
Gross proceeds, major groups of corporate issuers
Period
Manufacturing
Commercial and
miscellaneous
Transportation
Public utility
Communication
Real estate
and financial
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
4,560
4,199
9,867
17,006
1,833
638
544
1,670
2,526
1,318
1,845
2,757
2,786
1,532
940
1,470
1,258
1,084
1,550
3,439
148
26
22
6,349
5,578
8,873
9,658
4,966
4,691
3,964
6,235
3.709
3,523
3.710
3,464
,126
,348
217
,002
7,728
5,344
6,218
6,459
1975—June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
2,195
1,056
580
512
123
64
640
324
305
541
676
424
363
362
254
93
249
373
45
205
19
48
555
1,081
473
838
715
719
723
571
851
539
16
874
1,295
194
227
70
37
152
53
193
211
107
142
229
130
384
229
147
57
335
1976—Jan.'
Feb.
Mar.
Apr.
May
June
1,025
748
1,840
524
1,225
1,269
48
435
405
60
484
125
330
319
221
638
185
411
87
132
84
115
136
58
662
487
747
329
643
867
435
302
1,411
315
505
478
16
151
577
450
20
696
771
Bonds
197 2
197 3
197 4
197 5
810
101
81
1
Gross proceeds are derived by multiplying principal amounts or
number
of units by offering price.
2
Includes
guaranteed issues.
3
Issues
not guaranteed.
4
See NOTE to table at bottom of preceding page.
338
17
154
626
1,000
339
299
650
323
329
118
263
1
10
27
1
20
603
286
304
443
444
679
472
559
876
721
806
1,369
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organizations.
NOTE.—Securities and Exchange Commission estimates of new issues
maturing in more than 1 year sold for cash in the United States.
NOVEMBER 1976 • SECURITY ISSUES
A39
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions of dollars)
Derivation of change, all issuers
Bonds and notes
All securities
Period
1
Common and preferred stocks
New issues
Retirements
Net change
New issues
Retirements
Net change
New issues
Retirements
Net change
197 2
197 3
197 4
197 5
42,306
33,559
39,334
53,255
10,224
11,804
9,935
10,991
32,082
21,754
29,399
42,263
27,065
21,501
31,554
40,468
8,003
8,810
6,255
8,583
19,062
12,691
25,098
31,886
15,242
12,057
7,980
12,787
2,222
2,993
3,678
2,408
13,018
9,064
4,302
10,377
1975—1 1
II I
IV
15,602
9,079
13,363
3,211
2,576
3,116
12,390
6,503
10,247
11,460
6,654
9,595
2,336
2,111
2,549
9,124
4,543
7,047
4,142
2,425
3,768
875
465
567
3,266
1,960
3,200
1976—1
II
13,671
14,229
2,315
3,668
11,356
10,561
9,404
10,244
1,403
3,159
8,001
7,084
4,267
3,985
912
509
3,355
3,477
Type of issues
Commercial
and other 2
Manufacturing
Transportation 3
Public
utility
Stocks
Bonds
and
notes
Stocks
Bonds
and
notes
7,404
13,219
2,094
658
17
1,607
1,409
-109
1,116
1,605
2,471
1,411
-135
1,137
711
1,044
341
2,165
254
-93
4,574
1,442
2,069
500
412
433
483
221
528
490
108
462
2,966
1,529
838
1,120
203
726
149
318
Bonds
and
notes
1,995
801
Communication
Real estate
and financial 1
Bonds
and
notes
Stocks
Bonds
and
notes
Stocks
Bonds
and
notes
4,844
4,509
3,834
6,015
3,343
3,165
3,499
2,980
1,260
1,399
398
1,084
7,045
3,523
5,428
4,682
2,096
65
5,137
4,265
7,308
7,236
429
147
1,588
7
53
4
1,977
1,395
1,211
1,866
1,043
1,537
810
472
429
359
97
604
852
866
1,222
43
247
985
488
5
25
1,820
2,174
1,300
498
953
47
735
1,530
2,128
203
1
Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
NOTE.—Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on preceding page, new issues
Stocks
-20
1,260
Stocks
1,181
207
468
160
- 2 1
exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions of bonds into stocks. Retirements
are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose.
OPEN-END INVESTMENT COMPANIES
(In millions of dollars)
Sales and redemption
of own shares
Assets (market value
at end of period)
Month
Other
Net
sales
Total 2
Cash
position
1,504
1,875
1,962
952
1,528
2,395
25,214
29,116
35,220
1,341
1,329
1,803
4,671
4,670
6,820
2,005
2,745
3,841
2,665
1,927
2,979
34,829
44,701
52,677
2,971
2,566
3,187
6,717
4,624
5,145
3,66i
2,987
4,751
3,056
1,637
394
48,291
47,618
55,045
3,846
3,649
3,038
4,892
4,358
5,346
6,563
5,651
3,937
-1,671
-1,261
1,409
59,831
46,518
35,777
3,035
4,002
5,637
23,873 1975—Sept..
27,787
Oct...
33,417
Nov..
Dec..
31,858
42,135 1976—Jan...
49,490
Feb..
Mar..
44,445
Apr..
43,969
May.
52,007
June.
July..
56,796
Aug..
Sept..
42,516
30,140
10,057
9,571
486
42,179
3,748
38,431
Sales 1
Redemptions
2,460
3,404
4,359
1
3
Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment of investment income
dividends; excludes reinvestment of realized capital gains dividends.
2
Market value at end of period less current liabilities.
3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term
debt securities, less current liabilities.
4
Beginning Jan. 1976, sales and redemption figures exclude money
market funds.
Sales and redemption
of own shares 4
Redemptions
Assets (market value
at end of period)
Net
Total 2
Cash
position
40,234
41,860
42,460
42,179
3,664
3,601
3,733
3,748
760
914
786
1,040
874
995
911
1,093
-114
411
262
326
305
241
321
281
256
338
538
577
677
620
589
599
596
536
573
-47
-315
-351
-315
-348
-278
-315
-81
-125
-53
-280
-235
46,529
46,540
46,866
45,956
45,122
46,801
45,986
45,457
46,138
3
3,287
3,084
2,881
2,683
2,769
2,679
2,547
2,561
2,507
NOTE.—Investment Company Institute data based on reports of members, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.
A40
BUSINESS FINANCE • NOVEMBER 1976
SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS
(In millions of dollars)
Industry
1973
1974
1974
1975
I
II
1975
III
IV
I
II
1976
III
IV
QI
Total (170 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.i...
Dividends
442,351 564,724 586,813 126,812 143,077 145,054 149,781 138,322 145,872 147,986 154,633 159,291
448,919 573,136 595,205 128,711 145,227 147,251 151,947 140,411 147,785 149,820 157,189 161,734
53,845 67,737 60,286 16,596 18,218 17,860 15,063 12,895 14,859 15,493 17,039
16,710
28,767 32,531 27,004
9,292
7,739
5,551
7,094
8,428
6,707
7,072
7,652
8,537
28,798 32,720 27,775
9,222
5,667
7,627
7,046
6,596
8,497
8,466
7,374
8,558
12,421
11,516
2,928
12,442
3,128
3,072
2,912
3,032
3,073
3,210
3,508
3,183
Nondurable goods industries
(86 corps.):2
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.1.
Dividends
210,216 309,033 323,136
214,028 314,584 328,502
30,211 46,446 40,905
15,537 20,568 16,303
16,719
15,415 20,465
6,873
7,228
6,104
68,782
70,066
11,887
5,055
4,958
1,626
77,193
78,654
11,998
5,740
5,689
1,645
80,543
82,021
12,618
5,473
5,398
1,720
82,515
83,843
9,943
4,300
4,420
1,882
77,297
78,616
9,378
3,586
3,572
1,815
78,656
79,940
9,989
3,919
3,900
1,784
82,361
83,595
10,924
4,441
4,439
1,803
84,822
86,351
10,614
4,357
4,808
1,826
86,987
88,231
10,638
4,775
4,794
1,879
Durable goods industries (84
corps.): 3
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.i
Dividends
232,135 255,691 263,677
234,891 258,552 266,703
23,634 21,291 19,381
13,230 11,963 10,701
13,383
12,255 11,056
5,412
5,548
5,214
58,030
58,645
4,709
2,684
2,669
1,286
65,884
66,573
6,220
3,552
3,533
1,283
64,511
65,230
5,242
2,955
3,099
1,353
67,266
68,104
5,120
2,772
2,954
1,626
61,025
61,795
3,517
1,965
2,095
1,313
67,216
67,845
4,870
2,788
2,696
1,248
65,625
66,225
4,569
2,653
2,607
1,269
69,811
70,838
6,425
3,295
3,658
1,384
72,304
73,503
6,072
3,762
3,764
1,304
42,629
43,198
3,957
2,062
2,073
936
52,753
53,728
4,602
2,298
2,329
1,011
57,149
58,156
5,025
2,496
2,601
1,100
11,885
12,110
1,046
529
533
243
12,729
12,996
1,190
607
610
248
13,663
13,939
1,289
645
646
253
14,476
14,683
1,077
517
540
267
13,490
13,708
1,066
502
526
268
14,117
14,356
1,190
607
615
271
14,600
14,844
1,385
919
745
274
14,942
15,248
1,384
668
715
287
14,762
14,986
1,448
643
644
307
Chemical and allied products
(22 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. i
Dividends
43,208
43,785
6,264
3,505
3,469
1,496
55,083
55,676
8,263
4,876
4,745
1,647
57,735
58,376
7,082
3,889
4,015
1,723
12,507
12,667
1,856
1,044
1,031
383
13,892
14,066
2,293
1,247
1,245
405
14,606
14,778
2,194
1,223
1,180
422
14,078
14,165
1,920
1,362
1,289
437
13,618
13,756
1,647
932
927
430
14,329
14,503
1,622
929
937
425
14,660
14,791
1,858
1,035
1,028
429
15,128
15,326
1,955
993
1,123
439
15,816
15,958
2,166
1,232
1,213
444
Petroleum refining (15 corps):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.i
Dividends
93,504 165,150 172,645
95,722 168,680 175,915
17,493 30,657 26,305
11,775
8,551
8,551
8,712
8,505 11,746
3,635
3,801
3,146
36,103
36,913
8,296
3,098
3,011
864
41,362
42,261
7,564
3,349
3,304
853
42,747
43,659
8,339
3,181
3,132
899
44,938
45,847
6,458
2,147
2,299
1,019
41,988
42,851
6,227
1,905
1,871
966
41,342
42,100
6,612
2,078
2,040
937
43,873
44,633
6,961
2,300
2,268
949
45,442
46,331
6,505
2,268
2,533
949
46,656
47,407
6,254
2,481
2,512
971
Primary metals and products
(23 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.i
Dividends
42,400
43,103
3,221
1,966
2,039
789
54,044
55,048
5,579
3,199
3,485
965
48,578
49,534
2,921
1,822
2,003
945
11,888
12,045
973
589
607
221
13,976
14,171
1,586
927
942
209
14,285
14,504
1,791
1,028
1,137
238
13,895
14,328
1,229
655
799
297
12,482
12,782
1,015
633
639
273
12,393
12,604
711
478
485
227
12,274
12,479
487
396
381
216
11,429
11,669
708
315
498
229
12,733
12,904
633
409
416
218
Machinery (27 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.i
Dividends
65,040
65,925
7,670
4,236
4,209
1,607
73,894
74,725
7,661
4,210
4,149
1,957
78,914
79,868
8,665
4,801
4,864
2,015
16,830
17,012
1,829
1,006
996
441
18,836
19,023
2,074
1,149
1,137
441
18,853
19,075
1,943
1,074
1,096
476
19,375
19,615
1,815
981
920
599
18,245
18,464
1,727
971
975
483
19,881
20,104
2,089
1,178
1,173
485
19,764
19,956
2,219
1,224
1,231
519
21,024
21,344
2,630
1,428
1,485
528
20,375
20,928
2,445
1,344
1,343
529
Motor vehicles and equipment
(9 corps.):
Sales
Total revenue
Profits before t a x e s . . . .
Profits after taxes
Memo: PAT unadj.i
Dividends
83,017
83,671
7,429
3,991
4,078
2,063
80,386
80,881
2,920
1,686
1,742
1,537
85,863
86,475
3,077
1,471
1,604
1,121
18,467
18,597
636
369
361
384
20,979
21,146
1,115
657
648
382
19,443
19,593
231
133
147
386
21,497
21,545
938
527
586
385
18,866
19,011
-98
-127
-12
294
22,275
22,341
854
451
455
276
21,005
21,083
590
328
280
274
23,717
24,040
1,731
819
881
277
26,395
26,702
1,794
1,331
1,337
285
Selected industries:
Food and kindred products
(28 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj.i
Dividends
1 Profits after taxes unadjusted are as reported by the individual companies. These data are not adjusted to eliminate differences in accounting
treatments
of special charges, credits, and other nonoperating items.
2
Includes 21 corporations in groups not shown separately.
3 Includes 25 corporations in groups not shown separately.
NOTE—Data are obtained from published reports of companies and
reports made to the Securities and Exchange Commission. Sales are net
of returns, allowances, and discounts, and exclude excise taxes paid directly by the company. Total revenue data include, in addition to sales,
income from nonmanufacturing operations and nonoperating income.
Profits are before dividend payments and have been adjusted to exclude
special charges and credits to surplus reserves and extraordinary items not
related primarily to the current reporting period. Income taxes (not
shown) include Federal, State and local government, and foreign.
Previous series last published in June 1972 BULLETIN, p. A-50.
NOVEMBER 1976 • BUSINESS FINANCE
A41
CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)
Profits
before
taxes
Income
taxes
Profits
after
taxes
Cash
dividends
Undistributed
profits
85.6
83.5
71.5
39.3
39.7
34.5
46.2
43.8
37.0
21.9
22.6
22.9
24.2
21.2
14.1
82.0
96.2
115.8
127.6
114.5
37.7
41.4
48.7
52.4
49.2
44.3
54.6
67.1
75.2
65.3
23.0
24.6
27.8
30.8
32.1
21.3
30.0
39.3
44.4
33.2
Profits
before
taxes
Income
taxes
Profits
after
taxes
Cash
dividends
Undistributed
profits
1974-1
II
Ill
IV
126.3
126.4
138.6
119.2
50.5
53.0
57.6
48.6
75.8
73.3
81.0
70.6
29.9
30.7
31.3
31.1
45.9
42.6
49.7
39.5
1975-1
94.2
105.8
126.9
131.3
40.2
44.8
54.8
57.2
54.0
61.0
72.1
74.2
31.7
31.9
32.6
32.2
22.3
29.1
39.5
'42.0
141.1
146.2
61.4
63.5
79.7
82.7
33.1
34.4
46.6
48.3
Quarter
Ill
NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally
adjusted annual rates.
CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions of dollars)
Current assets
Net
working
capital
End of period
Total
Cash
U.S.
Govt,
securities
Current liabilities
Notes and accts.
receivable
U.S.
Govt, i
Other
Inventories
Other
Total
Notes and accts.
payable
Accrued
Federal
income
U.S. 1
taxes
Other
Govt.
Other
1970
1971
1972
1973
187.4
203.6
221.3
242.3
492.3
529.6
574.4
643.2
50.2
53.3
57.5
61.6
7.7
11.0
10.2
11.0
4.2
3.5
3.4
3.5
201.9
217.6
240.0
266.1
193.3
200.4
215.2
246.7
35.0
43.8
48.1
54.4
304.9
326.0
352.2
401.0
6.6
4.9
4.0
4.3
204.7
215.6
230.4
261.6
10.0
13.1
15.1
18.1
83.6
92.4
102.6
117.0
1974—11
Ill
IV
253.9
259.5
261.5
685.4
708.6
712.2
58.8
60.3
62.7
10.7
11.0
11.7
3.4
3.5
3.5
289.8
295.5
289.7
269.2'
282.1
288.0
53.5
56.1
56.6
431.5
449.1
450.6
4.7
5.1
5.2
278.5
287.0
287.5
19.0
22.7
23.2
129.1
134.3
134.8
1975—1
II
Ill
IV
260.4
269.0
271.8
274.1
698.4
703.2
716.5
731.6
60.6
63.7
65.6
68.1
12.1
12.7
14.3
19.4
3.2
3.3
3.3
3.6
281.9
284.8
294.7
294.6
285.2
281.4
279.6
285.8
55.4
57.3
59.0
60.0
438.0
434.2
444.7
457.5
5.3
5.8
6.2
6.4
271.2
270.1
273.4
281.6
21.8
17.7
19.4
20.7
139.8
140.6
145.6
148.8
1976—1
II
287.6
299.5
753.5
775.4
68.4
70.8
21.7
23.3
3.6
3.7
307.3
318.1
288.8
295.6
63.6
63.9
465.9
475.9
6.4
6.8
280.5
287.0
23.9
22.0
155.0
160.1
1
Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations' books.
NOTE.—Securities and Exchange Commission estimates,
BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions of dollars)
Manufacturing
Period
Total
Public utilities
Transportation
Mining
Communications
Electric andGas
other
Other i
Total
(S. A.
A.R.)
Durable
Nondurable
88.44
99.74
112.40
112.78
15.64
19.25
22.62
21.84
15.72
18.76
23.39
26.11
2.45
2.74
3.18
3.79
1.80
1.96
2.54
2.55
2.46
2.41
2.00
1.84
1.46
1.66
2.12
3.18
14.48
15.94
17.63
17.00
2.52
2.76
2.92
3.14
11.89
12.85
13.96
12.74
20.07
21.40
22.05
20.60
1974—11
II I
IV
28.16
28.23
31.92
5.59
5.65
6.64
5.69
5.96
6.99
.78
.80
.91
.64
.64
.78
.61
.43
.48
.49
.58
.71
4.56
4.42
4.80
.75
.78
.87
3.60
3.39
3.78
5.46
5.57
5.97
111.40
113.99
116.22
1975—1
II
II I
IV
25.82
28.43
27.79
30.74
5.10
5.59
5.16
5.99
5.74
6.55
6.51
7.30
.91
.97
.94
.97
.59
.71
.62
.62
.44
.47
.50
.43
.62
.77
.85
.93
3.84
4.15
4.16
4.85
.58
.79
.91
.85
3.11
3.22
3.14
3.26
4.88
5.19
5.00
5.52
114.57
112.46
112.16
111.80
1976—1
II
Ill2
25.87
29.70
30.54
4.78
5.61
5.90
6.18
7.05
7.35
.92
.99
.95
.49
.68
.54
.26
.42
.34
.72
1.02
.96
4.18
4.74
4.90
.62
.76
.98
2.92
3.21
4.82
5.21
114.72
118.12
122.96
1972
1973
1974
1975
1 Includes trade, service, construction, finance, and insurance.
Anticipated by business.
2
Railroad
Air
Other
8.'62
NOTE.—Dept. of Commerce estimates for corporate and noncorporate
business; excludes agriculture, real estate operators, medical, legal,
educational, and cultural service, and nonprofit organizations.
A42
REAL ESTATE CREDIT • NOVEMBER 1976
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions of dollars)
End of year
Type of holder, and type of property
1972
1973
End of quarter
1975
1974
1976
III'
ALL HOLDERS
1 - to 4-family
Multifamily
Commercial
Farm
603,417
372,793
82,572
112,294
35,758
682,321
416,883
92,877
131,308
41,253
742,522
449,937
99,851
146,428
46,306
768,889
467,365
100,475
151,587
49,462
785,795
479,992
100,517
154,779
50,507
802,103
491,690
100,427
158,736
51,250
817,112
502,711
100,699
160,954
52,748
839,537
519,553
100,954
164,428
54,602
MAJOR FINANCIAL
INSTITUTIONS...
Commercial banks 1
1- to 4-family
Multifamily
Commercial
Farm
450,000
99.314
57,004
5,778
31,751
4,781
505,400
119,068
67,998
6,932
38,696
5,442
542.552
132,105
74,758
7,619
43,679
6,049
558,179
133,012
75,356
581,486
136,186
77,018
5,915
46,882
6,371
592,061
137,986
78,218
5,515
47,812
6,441
609,086
141,086
44,598
6,242
570,049
134,514
76,149
6,363
45,694
6,308
67,556
46,229
10,910
10,355
62
73,230
48,811
12,343
12,012
64
74,920
49,213
12,923
12,722
62
75,796
49,458
13,262
13,024
52
76,490
49,719
13,523
13,194
54
77,249
50,025
13,792
13,373
59
77,738
50,344
13,876
13,456
62
78,735
50,989
14,030
13,653
63
206,182
167,049
20,783
18,350
231,733
187,750
22,524
21,459
249,293
201.553
23,683
24,057
261,336
24,409
25,637
270,600
218,483
24,976
27,141
278,693
224,710
25,417
28,566
286,556
231,337
25,847
29,372
299,574
241,996
26,722
30,856
76,948
22.315
17,347
31,608
5,678
81,369
20,426
18,451
36,496
5,996
86,234
19,026
19,625
41,256
6,327
88,035
18,377
19,795
43,287
6,576
88,445
17,964
19,756
44,085
6,640
89,358
17,602
19,708
45,288
6,760
89,781
17,321
19,726
45,907
6,827
89,691
19,374
46,456
7,100
40,157
5,113
2,513
2,600
46,721
4,029
1,455
2,574
58,320
4,846
2,248
2,598
61,470
5,610
2,787
2,823
64,464
6,534
3,692
2,842
66,891
7,438
4,728
2,710
66,650
7,619
4,886
2,733
66,192
5,557
3,165
2,392
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
1,019
279
29
320
391
1,366
743
29
1,169
367
268
176
358
1,118
376
1,432
759
167
156
350
343
134
181
460
1,109
208
215
190
496
650
97
23
96
434
830
228
46
151
405
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
3,338
2,199
1,139
3,476
2,013
1,463
4,015
2,009
2,006
4,297
1,915
2,382
4,681
1,951
2,730
4,970
1,990
2,980
5,033
1,908
3,125
5,270
19,791
17,697
2,094
24,175
20,370
3,805
29,578
23,778
5,800
30,015
23,988
6,027
31,055
25,049
6,006
31,824
25,813
6,011
31,482
25,562
5,920
32,028
26,112
5,916
Federal land banks
1- to 4-family
Farm
9,107
13
9,094
11,071
123
10,948
13,863
406
13,457
15,435
497
14,938
16,043
525
15,518
16,563
549
16,014
17,264
563
16,701
17,978
575
17,403
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1,789
1,754
35
2,604
2,446
158
4,586
4,217
369
4,944
4,543
401
5,033
4,632
401
4,987
4,588
399
4,602
4,247
355
4,529
4,166
363
MORTGAGE POOLS OR TRUSTS 2 . . .
Government National Mortgage Association
1- to 4-family
Multifamily
14,404
5,504
5,353
151
18,040
7,890
7,561
329
23,799
11,769
11,249
520
29,550
15,437
14,863
574
31,483
16,595
15,946
649
34,138
18,257
17,538
719
37,684
20,479
19,693
786
41,225
23,634
22,821
813
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
441
331
110
766
617
149
757
608
149
1,193
1,008
185
1,323
1,105
218
1,598
1,349
249
1,999
1,698
301
2,153
1,831
322
8,459
5,017
131
867
2,444
9,384
5,458
138
1,124
2,664
11,273
6,782
116
1,473
2,902
12,920
8,112
1,687
3,005
13,565
8,563
296
1,765
2,941
14,283
9,194
295
1,948
2,846
15,206
9,516
542
2,122
3,026
15,438
9,670
541
2,104
3,123
98,856
45,040
21,465
19,043
13,308
112,160
51,112
23,982
21,303
15,763
117,851
53,331
24,276
23,085
17,159
119,690
54,804
23,417
23,178
18,291
119,799
55,871
22,623
22,719
18,586
119,588
56,378
22,017
22,489
18,704
120,717
57,321
21,950
22,189
19,257
123,034
59,113
21,858
22,096
19,967
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
Savings and loan associations
1 - to 4-family
Multifamily
Commercial
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
FEDERAL AND RELATED AGENCIES..
Government National Mortgage Association
1- to 4-family
Multifamily
Federal National Mortgage
1- to 4-family
Multifamily
Association...
Farmers Home Administration
1 - to 4-family
Multifamily
Commercial
Farm
INDIVIDUALS AND OTHERS 3
1- to 4-family
Multifamily
Commercial
Farm
218
1 Includes loans held by nondeposit trust companies but not bank trust
departments.
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.
6,816
211,290
116
80,218
5,115
49,112
6,641
16,861
1,808
3,462
NOTE.—Based on data from various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal Home Loan Bank Board and the Dept. of Commerce.
Separation of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations where required, are
estimated mainly by Federal Reserve. Multifamily debt refers to loans on
structures of 5 or more units.
NOVEMBER 1976 • REAL ESTATE CREDIT
A43
FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION—
SECONDARY MORTGAGE MARKET ACTIVITY
(In millions of dollars)
FHLMC
Mortgage
holdings
Mortgage
transactions
(during period)
FHAinsured
VAguaranteed
Purchases
17,791
19,791
24,175
29,578
31,824
12,681
14,624
16,852
19,189
19,732
5,110
5,112
6,352
8,310
9,573
3,574
3,699
6,127
6,953
4,263
31,055
31,373
31,552
31,824
19,560
19,641
19,648
19,732
9,122
9,309
9.430
9,573
488
508
372
451
31,772
31,618
31,482
31,389
32,052
32,028
32,011
32,069
32,062
19,674
19,541
19,431
19,368
19,296
19,238
19,184
19,180
19,133
9,554
9,521
9,473
9.431
9.390
9.391
9,388
9,394
9,366
76
56
85
103
877
240
Total i
210
277
199
Sales
336
211
71
5
2
55
22
184
597
689
Mortgage
commitments
Mortgage
holdings
Made
during
period
Outstanding
Total
FHAVA
9,828
8,797
8,914
10,765
6,106
6,497
8,124
7,889
7,960
4,126
968
1,789
2,604
4,586
4,987
1,503
1,743
1,904
1,824
575
282
332
517
5,399
4,685
4,385
4,126
5,033
5,119
4,971
4,987
189
355
405
213
1,305
857
584
492
463
3,170
3,201
3,120
2,788
3,732
4,153
4,245
4,335
3,983
4,958
4,686
4,602
4,520
4,486
4,529
4,551
4,310
i Includes conventional loans not shown separately.
NOTE.—Data from FNMA and FHLMC, respectively.
For FNMA: Holdings include loans used to back bond issues guaranteed
by GNMA. Commitments include some multifamily and nonprofit
hospital loan commitments in addition to 1- to 4-family loan commitments
accepted in FNMA's free market auction system, and through the FNMAGNMA Tandem Plans.
Mortgage
transactions
(during period)
Mortgage
commitments
Conventional
Purchases
147
286
2,682
3,163
778
1,297
1,334
2,191
1,716
1,020
1,606
1,629
4,553
982
1,852
1,843
1,834
1,824
3,181
3,276
3,137
3,163
148
176
104
69
31
59
225
30
79
45
50
71
1,816
1,802
1,787
1,768
1,752
1,729
1,713
1,695
3,142
2,884
2,815
2,752
2,735
47
51
95
43
73
163
152
77
57
296
98
86
64
75
84
278
42
43
93
209
178
72
39
117
821
861
2,801
2,838
2,614
Sales
64
409
409
52
Made
during
period
For FHLMC: Holdings and transactions cover participations as well as
whole loans. Holdings include loans used to back bond issues guaranteed
by GNMA. Commitments cover the conventional and Govt.-underwritten loan programs.
FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES
Date of auction
Item
Amounts (millions of dollars):
Govt.-underwritten loans
Offered i
Accepted
Conventional loans
Offered i
Accepted
Average yield (per cent) 2on shortterm commitments
Govt.-underwritten loans
Conventional loans
1976
June 14 June 28
July 12
July 26
Aug. 9
Aug. 23
Sept. 7
146.6
98.8
261.2
157.5
148.3
88.4
311.8
212.0
190.1
107.4
171.3
107.0
121.9
68.8
131.4
90.5
77.3
70.3
93.6
59.2
90.7
82.0
130.5
105.2
136.7
93.4
162.1
115.3
9.20
9.31
9.14
9.30
9.12
9.31
9.05
9.27
9.04
9.23
9.01
9.17
8.97
9.14
May 17
June 1
634.3
321.4
349.5
224.7
128.8
68.9
9.13
9.24
1 Mortgage amounts offered by bidders are total bids received.
2
Average accepted bid yield (before deduction of 38 basis-point fee
paid for mortgage servicing) for home mortgages assuming a prepayment
Sept. 20
Oct. 4
Oct. 18
99.1
49.1
124.3
61.8
111.2
45.3
170.6
117.8
151.1
107.6
153.8
94.4
143.7
121.4
8.92
9.13
8.84
9.09
8.80
9.07
8.70
9.02
period of 12 years for 30-year loans, without special adjustment for
FNMA commitment fees and FNMA stock purchase and holding requirements. Commitments mature in 4 months.
A44
REAL ESTATE CREDIT • NOVEMBER 1976
MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT
(End of period, in billions of dollars)
Holder
All holders
FHA
VA
Commercial banks
FHA
VA
Mutual savings banks
FHA
VA
Savings and loan assns
FHA
VA
Life insurance cos
FHA
VA
Others
FHA
VA
Sept. 30,
1974
Dec. 31,
1974
Mar. 31,
1975
June 30,
1975
Sept. 30,
1975
Dec. 31,
1975
Mar. 31,
1976
138.6
84.1
54.5
10.7
7.4
3.3
27.8
15.0
12.8
140.3
84.1
56.2
10.4
7.2
3.2
27.5
14.8
12.7
142.0
84.3
57.7
10.5
7.2
3.3
27.3
14.7
12.6
143.0
85.0
58.0
9.6
6.4
3.2
27.2
14.7
12.5
144.9
85.1
59.8
9.7
6.4
3.3
27.0
14.5
12.5
147.0
85.4
61.6
9.4
6.3
3.1
27.4
14.7
12.7
148.3
85.4
62.9
9.5
6.3
3.2
27.7
14.7
13.0
}
29.9
12.9
8.7
4.2
57.4
1
1
29.9
12.7
8.6
4.2
59.9
}
'
NOTE.—VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.
29.9
12.5
8.4
4.1
61.6
J
30.2
12.2
8.2
4.0
62.2
}
30.4
12.1
8.1
4.0
65.7
\
'
30.6
11.8
7.9
3.9
67.8
}
'
11.6
7.8
3.8
Detail by type of holder partly estimated by Federal Reserve for first
and third quarters, and for most recent quarter.
COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Period
Number
of loans
Total
amount
committed
(millions of
(dollars)
Averages
Loan
amount
(thousands
of dollars)
Contract
interest
rate
(per cent)
Maturity
(yrs./mos.)
Loanto-value
ratio
(per cent)
Capitalization rate
(per cent)
Debt
coverage
ratio
Per cent
constant
2,132
2,140
1,166
599
4,986.5
4,833.3
2,603.0
1,717.0
2,339
2,259
2,232
2,866
8.57
8.76
9.47
10.22
23/3
23/3
21/3
21/9
75.2
74.3
74.3
73.8
9.6
9.5
10.1
10.8
1.29
1.29
1.29
1.33
9.8
10.0
10.6
11.2
1975--Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
32
73
61
53
44
57
57
47
52
108.4
227.5
167.5
178.6
106.5
123.8
144.7
252.8
159.4
3,386
3,116
2,745
3,370
2,420
2,172
2,538
5,378
3,065
10.02
10.23
10.11
10.19
10.26
10.24
10.29
10.24
10.15
23/0
20/9
21/9
20/7
21/2
22/8
20/10
22/7
23/4
75.6
74.7
73.0
74.6
72.7
73.6
74.3
72.7
73.7
10.8
10.8
10.5
10.9
10.8
10.7
10.7
10.9
11.0
1.36
1.30
1.29
1.31
1.32
1.37
1.28
1.35
1.34
10.8
11.1
11.2
11.3
11.4
11.1
11.3
11.2
11 .0
1976--Jan
Feb
Mar
Apr
May
June
32
40
71
78
104
104
99.2
140.2
294.6
292.1
294.8
297.2
3,099
3,506
4,150
3,745
2,834
2,858
10.25
10.08
10.04
9.88
9.80
9.90
20/11
20/6
21/11
23/1
21/2
20/9
74.3
74.2
73.8
73.0
74.4
73.9
10.7
10.5
10.6
10.4
10.4
10.1
1.29
1.26
1.30
1.31
1.30
1.31
11.2
11.0
11.0
10.8
11.1
10.6
1972.
1973.
1974.
1975
NOTE.—American Council of Life Insurance data for new commitments
of $100,000 and over each on mortgages for multifamily and nonresidential
nonfarm properties located largely in the United States. The 15 companies
account for a little more than one-half of both the total assets and the
nonfarm mortgages held by all U.S. life insurance companies. Averages,
which are based on number of loans, vary in part with loan composition
by type and location of property, type and purpose of loan, and loan
amortization and prepayment terms. Data for the following are limited
to cases where information was available or estimates could be made:
capitalization rate (net stabilized property earnings divided by property
value); debt coverage ratio (net stabilized earnings divided by debt service);
and per cent constant (annual level payment, including principal and
interest, per $100 of debt). All statistics exclude construction loans,
increases in existing loans in a company's portfolio, reapprovals, and loans
secured by land only.
NOVEMBER 1976 • REAL ESTATE CREDIT AND CONSUMER CREDIT
45
T E R M S AND YIELDS ON NEW HOME MORTGAGES
Conventional mortgages
Terms1
Yields (per cent) in
Drimarv market
FHAinsured
loans—Yield
in private
secondary
market5
Contract
rate (per
cent)
Fees and
charges
(per cent) 2
Maturity
(years)
Loan/price
ratio
(per cent)
Purchase
price (thous.
of dollars)
Loan
amount
(thous. of
dollars)
FHLBB
series 3
HUD
series4
7.60
7.45
7.78
8.71
8.75
.87
.88
1.11
1.30
1.54
26.2
27.2
26.3
26.3
26.8
74.3
76.8
77.3
75.8
76.1
36.3
37.3
37.1
40.1
44.6
26.5
28.1
28.1
29.8
33.3
7.74
7.60
7.95
8.92
9.01
7.75
7.64
8.30
9.22
9.10
7.70
7.53
8.19
9.55
9.19
8.70
8.75
8.74
8.74
1.46
1.59
1.65
1.65
26.7
27.3
27.6
27.8
75.9
77.5
76.5
76.9
45.6
43.9
46.4
45.9
34.1
33.2
34.8
34.7
8.94
9.01
9.01
9.01
9.25
9.25
9.20
9.15
9.74
9.53
9.41
9.32
8.71
8.67
8.67
8.67
8.75
8.69
8.76
8.79
8.85
1.74
1.56
1.60
1.52
1.35
1.27
1.29
1.38
1.42
27.4
26.0
27.1
27.3
26.5
26.5
27.1
27.8
27.7
76.9
75.1
76.4
75.3
77.5
75.1
75.8
75.8
75.6
47.2
45.2
46.8
48.5
46.3
48.9
49.4
49.6
50.5
35.4
33.4
35.0
35.8
35.3
36.2
36.7
36.8
37.4
8.99
8.93
8.93
8.92
8.97
8.89
8.97
9.02
9.08
9.05
9.00
8.95
8.90
9.00
9.05
9.05
9.05
9.00
9.06
9.04
1 Weighted averages based on probability sample survey of characteristics of mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single-family homes, as
compiled by Federal Home Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. Data are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer of property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates
8.82
9.03
9.05
8.99
8.93
8.82
(as shown in first column of this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices of prevailing
local conditions as of the first of the succeeding month. Yields are derived
from weighted averages of private secondary market prices for Sec. 203,
30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates.
FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT
(Per cent per annum)
Finance companies
Commercial banks
Other
consumer
goods
(24 mos.)
Personal
loans
(12 mos.)
11.72
11.94
11.87
11.71
13.20
13.28
13.16
13.27
13.41
13.60
13.47
13.60
11.66
13.28
13,20
13.07
13.22
13.11
13.10
13.13
13.05
13.06
13.00
12.96
13.11
13.14
13.02
13.02
12.95
New
automobiles
(36 mos.)
Mobile
homes
(84 mos.)
11.31
11.53
11.57
11.62
11.61
11.51
11.46
11.44
11.39
11.26
11.30
11.31
11.33
11.24
11.24
11.25
12.14
11.66
11.78
11.57
12.02
11.94
11.21
11.76
11.77
11.18
11.13
11.08
11.00
11.02
11.06
11.07
11.07
11.80
11.99
12.05
11.76
11.83
11.82
11.66
11.61
11.82
11.80
11.84
11.88
12.96
12.99
13.02
13.02
13.08
Automobiles
Mobile
homes
New
Used
17.15
17.17
17.16
17.21
12.84
12.97
13.06
13.10
17.61
17.78
17.88
17.89
13.60
13.44
13.40
13.55
13.41
13.40
13.49
13.37
13.41
13.38
13.40
13.46
17.12
17.24
17.15
17.17
17.21
17.10
17.15
17.14
17.14
17.11
17.06
17.13
13.08
13.07
13.07
13.07
13.09
13.12
13.09
13.10
13.18
13.15
13.17
13.19
17.27
17.39
17.52
17.58
17.65
17.67
17.69
17.70
17.73
17.79
17.82
17.86
13.40
13.24
13.13
13.16
13.27
13.32
13.38
13.31
13.40
17.08
17.14
16.99
17.04
17.02
17.04
16.91
17.10
17.02
13.18
13.14
13.13
13.13
13.15
13.17
13.16
13.18
17.25
17.37
17.48
17.58
17.64
17.68
17.71
17.71
NOTE.—Rates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) of the Board of Governors.
Commercial bank rates are "most common" rates for direct loans with
Creditcard
plans
13.43
" 1360'
Other
consumer
goods
19.31
'i 9!49 *
13.60
19.80
13.59
'ioioo'
13.57
19.63
13.78
19! 87
13.78
19.69
i 3! 43
19.66
13.18
19.58
13.35
19.37
ii.59
"i9.5i *
specified maturities; finance company rates are weighted averages for
purchased contracts (except personal loans). For back figures and description of the data, see BULLETIN for Sept. 1973.
A46
CONSUMER CREDIT • NOVEMBER 1976
INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE
(In millions of dollars)
Holder, and type of credit
1973
1974
1976
1975
Mar.
Apr.
May
June
July
Aug.
Sept.
Amounts outstanding (end of period)
146,434
155,384
162,237
160,729
162,334
164,101
166,664
168,674
171,160
172,918
71,871
35,404
19,609
16,395
3,155
75,846
36,208
22,116
17,933
3,281
78,703
36,695
25,354
18,002
3,483
78,039
36,450
26,025
16,375
3,840
78,982
36,745
26,403
16,448
3,756
79,785
37,022
26,975
16,465
3,854
80,850
37,490
27,842
16,633
3,849
81,930
38,026
28,234
16,660
3,824
82,961
38,398
28,956
16,911
3,934
83,714
38,575
29,600
17,012
4,017
50,065
31,502
18,997
12,505
10,718
7,456
389
50,392
30,994
18,687
12,306
10,618
8,414
366
53,028
31,534
18,353
13,181
11,439
9,653
402
53,650
31,580
18,200
13,381
11,695
9,908
467
54,572
32,162
18,472
13,690
11,903
10,051
456
55,484
32,664
18,671
13,993
12,080
10,269
471
56,667
33,269
18,912
14,358
12,333
10,601
464
57,659
33,877
19,151
14,726
12,573
10,749
460
58,665
34,414
19,404
15,010
12,748
11,024
479
59,270
34,701
19,495
15,206
12,808
11,270
491
Finance companies
8,340
3,358
8,972
3,524
8,704
3,451
8,485
3,363
8,439
3,351
8,408
3,336
8,390
3,343
8,384
3,333
8,379
3,323
8,340
3,319
Commercial banks
6,950
4,083
7,754
4,694
8,004
4,965
8,026
4,924
8,089
4,978
8,209
5,048
8,367
5,129
8,452
5,192
8,562
5,263
8,665
5,318
6,838
2,254
8,281
2,797
9,501
2,810
9,221
2,769
9,343
2,775
9,402
2,777
9,531
2,805
9,725
2,835
9,924
2,870
10,153
2,922
68,629
18,854
12,873
20,914
16,483
11,564
16,395
902
73,664
20,108
13,771
21,717
16,961
13,037
17,933
869
76,738
21,188
14,629
21,655
17,681
14,937
18,002
956
75,215
21,060
14,578
21,247
17,434
15,333
16,375
1,200
75,765
21,285
14,743
21,350
17,528
15,557
16,448
1,125
76,485
21,486
14,871
21,466
17,631
15,894
16,465
1,174
77,561
21,726
15,034
21,675
17,811
16,402
16,633
1,125
78,286
21,917
15,148
21,983
18,079
16,635
16,660
1,091
79,438
22,112
15,308
22,192
18,275
17,060
16,911
1,163
80,249
22,280
15,450
22,316
18,371
17,438
17,012
1,203
TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
Others2
By type of credit:
Automobile, total
Commercial banks
Purchased
Direct
Finance companies
Credit unions
Others
Mobile homes:
Revolving credit:
Bank credit cards
Bank check credit
All other, total
Commercial banks, total
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others
Net change (during period)3
19,676
8,952
6,843
1,473
1,427
1,474
1,330
1,303
1,403
1,481
11,001
4,006
2,696
1,632
341
3,975
806
2,507
1,538
126
2,851
483
3,238
69
202
552
282
514
108
16
575
326
392
177
-42
713
157
521
5
78
409
230
482
214
-5
619
264
365
116
-61
518
169
386
183
148
697
233
483
24
45
Automobile, total
Commercial banks
Purchased
Direct
Finance companies
Credit unions
Other
5,968
4,197
2,675
1,523
740
1,024
7
327
-508
-310
-198
-100
958
-23
2,631
535
-340
875
821
1,239
36
663
237
99
138
240
192
-6
732
356
162
194
224
151
2
652
340
110
230
122
181
9
526
229
32
197
116
186
-4
556
327
60
267
108
135
-13
621
377
159
218
62
136
46
605
376
125
251
28
172
28
Mobile homes:
Commercial banks
Finance companies
1,933
444
632
168
-268
-73
-18
-52
-11
-37
-17
-42
«
-28
—9
-35
-16
-53
— 16
Home improvement, total
Commercial banks
1,033
482
804
611
248
271
69
41
39
26
70
36
79
29
19
22
39
25
65
43
Revolving credit:
Bank credit cards
Bank check credit
1,430
478
1,443
543
1,220
14
192
16
139
35
193
44
98
14
171
27
86
-6
166
17
All other, total
Commercial banks, total
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others
8,389
2,480
1,492
2,564
1,746
1,591
1,632
122
5,036
1,255
898
803
479
1,473
1,538
-33
3,072
1,080
858
-64
717
1,900
69
87
550
84
51
43
62
307
108
7
546
70
69
119
116
228
177
-49
570
138
112
53
21
326
5
48
655
81
86
115
95
282
214
-38
567
101
70
170
143
220
116
-39
714
71
46
126
106
240
183
96
698
148
108
223
198
297
24
5
TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
Retailers
Others
By type of credit:
1
Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers.
3 Figures for all months are seasonally adjusted and equal extensions
minus liquidations (repayments, charge-offs, and other credits).
NOVEMBER 1976 • CONSUMER CREDIT
A47
INSTALMENT CREDIT EXTENSIONS AND LIQUIDATIONS
(In millions of dollars)
Holder, and type of credit
1973
1974
1976
1975
Mar.
Apr.
May
June
July
Aug.
Sept.
Extensions1
160,228
160,008
163,483
15,521
15,003
15,041
15,592
15,240
15,685
15,775
72,216
38,922
21,143
25,440
2,507
72,605
35,644
22,403
27,034
2,322
77,131
32,582
24,151
27,049
2,570
7,352
2,945
2,389
2,596
238
6,989
2,913
2,386
2,544
171
7,223
2,776
2,448
2,313
280
7,289
2,986
2,456
2,650
211
7,358
2,861
2,329
2,533
159
7,487
2,965
2,313
2,548
372
7,546
3,072
2,424
2,463
271
Automobile, total
Commercial banks
Purchased
Direct
Finance companies
Credit unions
Others
46,105
29,369
17,497
11,872
9,303
7,009
424
43,209
26,406
15,576
10,830
8,630
7,788
385
48,103
28,333
15,761
12,572
9,598
9,702
470
4,689
2,699
1,514
1,185
990
964
35
4,583
2,677
1,475
1,202
975
891
40
4,471
2,616
1,413
1,204
914
892
49
4,600
2,660
1,386
1,274
935
968
36
4,477
2,680
1,417
1,263
891
879
27
4,712
2,762
1,480
1,282
937
928
84
4,769
2,846
1,511
1,335
891
963
69
Mobile homes:
Commercial banks
Finance companies
4,438
1,573
3,486
1,413
2,681
771
233
63
186
61
182
49
204
68
223
59
186
54
200
53
Home improvement, total
Commercial banks
4,414
2,487
4,571
2,789
4,398
2,722
414
253
413
259
385
233
410
235
381
240
400
242
434
266
13,863
3,373
17,098
4,227
20,428
4,024
2,118
380
1,985
394
2,103
422
2,088
435
2,152
401
2,183
413
2,165
375
7,737
1,702
1,197
1,970
1,607
1,338
2,548
180
7,779
1,693
1,193
2,125
1,745
1,410
2,463
87
TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
2
Retailers
Others3
By type of credit:
Revolving credit:
Bank credit cards
Bank check credit
All other, total
Finance companies, total
Personal loans
Credit unions
Others
86,462
18,686
12,928
27,627
17,885
13,768
25,440
941
86,004
18,599
13,176
25,316
16,691
14,228
27,034
827
83,079
18,944
13,386
22,135
17,333
13,992
27,049
959
7,624
1,669
1,182
1,890
1,551
1,376
2,596
93
7,382
1,489
1,081
1,874
1,545
1,446
2,544
29
7,429
1,667
1,203
1,810
1,465
1,511
2,313
127
7,786
1,666
1,221
1,981
1,641
1,440
2,650
50
7,546
1,661
1,174
1,907
1,535
1,403
2,533
43
c
Liquidations1
140,552
151,056
156,640
14,048
13,576
13,566
14,261
13,937
14,282
14,294
61,215
34,916
18,447
23,808
2,166
68,630
34,838
19,896
25,496
2,196
74,280
32,099
20,913
26,980
2,368
6,800
2,663
1,875
2,488
222
6,414
2,587
1,994
2,367
214
6,510
2,619
1,927
2,308
202
6,879
2,756
1,974
2,436
216
6,739
2,597
1,964
2,417
220
6,970
2,796
1,927
2,365
224
6,849
2,839
1,941
2,439
226
40,137
25,172
14,823
10,349
8,563
5,985
417
42,883
26,915
15,886
11,029
8,730
6,830
408
45,472
27,798
16,101
11,697
8,777
8,463
434
4,026
2,463
1,416
1,047
750
772
42
3,851
2,321
1,313
1,008
751
740
39
3,819
2,276
1,303
973
792
711
39
4,074
2,432
1,354
1,077
819
783
40
3,922
2,354
1,357
996
784
745
39
4,090
2,385
1,321
1,064
874
792
39
4,165
2,470
1,386
1,084
862
791
42
Mobile homes:.
Commercial banks
Finance companies
2,505
1,129
2,854
1,245
2,949
844
251
63
237
72
219
67
247
68
251
68
222
70
253
69
Home improvement, total
Commercial banks
3,381
2,005
3,767
2,178
4,150
2,451
344
212
374
232
314
197
330
206
362
218
361
216
369
223
Revolving credit:
Bank credit cards
Bank check credit
12,433
2,894
15,655
3,684
19,208
4,010
1,926
364
1,846
359
1,911
378
1,990
421
1,981
374
2,097
419
2,000
358
All other, total
Commercial banks, total
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others
78,072
16,205
11,435
25,063
16,139
12,177
23,808
819
80,969
17,345
12,278
24,513
16,212
12,755
25,496
860
80,007
17,864
12,528
22,199
16,616
12,092
26,980
872
7,074
1,584
1,131
1,846
1,489
1,069
2,488
86
6,836
1,418
1,012
1,756
1,429
1,218
2,367
77
6,859
1,529
1,091
1,758
1,445
1,185
2,308
79
7,132
1,585
1,135
1,866
1,546
1,158
2,436
87
6,979
1,560
1,104
1,737
1,392
1,183
2,417
82
7,023
1,631
1,151
1,844
1,501
1,098
2,365
85
7,081
1,545
1,085
1,902
1,547
1,113
2,439
82
TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
2
Retailers
Others3
By type of credit:
Automobile, total
Commercial banks
Purchased
Direct
Finance companies
Others
1
2
Monthly figures are seasonally adjusted.
Excludes 30-day charge credit held by retailers, oil and gas companies
and travel and entertainment companies.
3
Mutual savings banks, savings and loan associations, and auto dealers.
A48
INDUSTRIAL PRODUCTION • NOVEMBER 1976
INDUSTRIAL PRODUCTION—1976 REVISION
(Seasonally adjusted, 1967 = 100)
Grouping
1967
proportion
1975
average
1975
Oct.
Nov.
1976
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.e
Major market groupings
100.00 117.8 122.2 123.5 124.4 125.7 127.3 128.1 128.4 129.6 130.1
Total index
130.7 131.3 131.0 130.4
60.71
47.82
27.68
20.14
12.89
39.29
119.3
118.2
124.0
110.2
123.1
115.5
122.4
120.9
128.7
110.0
128.0
122.0
123.8
122.3
131.1
110.0
129.3
123.1
124.9
123.5
132.3
111.5
129.9
123.3
126.0
123.9
133.1
111.2
133.6
125.3
127.4
125.3
134.9
112.1
135.3
127.3
128.1
126.4
136.1
112.9
134.9
128.2
128.0
126.3
136.1
112.9
134.7
129.2
128.9
127.3
137.4
113.5
135.0
130.6
129.5
127.6
137.8
113.8
135.9
131.1
129.8
127.6
136.8
114.9
137.6
132.2
130.4
128.3
137.5
115.8
138.1
132.9
129.7
127.2
136.1
115.3
139.0
132.9
129.2
126.5
135.2
114.7
139.0
132.3
7.89
2.83
2.03
1.90
.80
121.4
125.9
113.7
101.1
156.6
131.9
140.8
133.6
119.1
159.0
132.5
143.2
134.7
120.9
164.9
134.0
147.7
140.0
122.8
167.0
134.7
142.8
133.4
118.9
167.4
137.9
148.9
142.0
125.8
166.5
140.3
155.2
149.5
133.6
169.5
141.1
155.2
152.1
134.3
163.1
143.2
154.0
153.4
134.3
155.6
144.2
156.6
156.6
137.5
156.9
141.8
155.9
155.9
135.0
156.0
144.1
158.4
158.2
137.7
158.4
138.7
147.1
139.0
120.9
167.8
136.3
144.2
135.7
121.5
166.1
5.06
1.40
1.33
1.07
2.59
118.8
98.0
100.2
126.8
126.9
127.0
105.3
109.3
141.9
132.6
126.5
100.9
103.7
144.7
132.9
126.4
101.1
104.4
142.0
133.6
130.3
107.8
110.6
144.8
136.6
131.7
112.6
115.2
145.6
136.3
132.0
114.6
117.1
141.4
137.9
133.1
117.2
119.6
143.0
137.8
137.2
123.5
126.4
142.6
142.5
137.4
123.8
126.7
142.5
142.6
133.8
110.3
114.1
142.0
143.0
136.1
119.1
121.9
145.0
141.7
133.9
113.1
116.9
144.2
141.0
131.8
108.7
112.0
Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco.,
19.79
4.29
15.50
8.33
125.1
111.6
128.8
122.8
127.4
120.4
129.3
125.3
130.6
123.2
132.5
127.6
131.5
123.9
133.6
127.2
132.5
127.4
133.9
128.5
133.9
127.6
135.7
129.9
134.4
130.1
135.6
129.0
134.0
129 6
135'.2
128.4
135.1
132.1
135.8
129.8
135.1
127.9
137.1
130.8
134.8
126.3
137.2
131.4
135.0 135.0 134.7
124.2
137.9 138.2 138.2
131.7 132.3
Nonfood staples
Consumer chemical products,
Consumer paper products...,
Consumer energy products..,
Residential utilities
7.17
2.63
1.92
2.62
1.45
135.8
151.3
107.0
141.6
152.3
133.8
149.8
104.4
139.2
148.6
138.2
157.8
107.5
140.9
152.0
141.0
159.7
113.4
142.8
152.0
140.2
157.3
113.3
142.4
154.5
142.3
161.1
113.9
144.3
153.7
143.3
163.6
113.4
145.0
153.7
143.3
162.1
114.2
145.9
154.5
142.7
161.4
113.8
145.1
154.7
144.5
165.4
112.3
147.2
153.2
143.9
166.2
112.8
144.1
150.4
145.1
168.8
113.9
143.9
145.2 145.4
169.7
112.5
144.5
12.63
6.77
1.44
3.85
1.47
128.2
128.8 129.6
121.2 122.1 123.0
168.3 172.9 174.9
99.9 100.5 99.9
130.8 128.9 132.3
131.6
124.5
172.9
101.3
137.6
131.0
123.5
171.4
101.2
134.6
132.6
124.0
171.5
102.7
133.1
134.0
125.6
172.1
104.4
135.6
134.1
125.3
170.7
105.4
132.7
134.6
126.9
174.6
106.4
134.0
135.0
121A
174.9
106.5
135.4
136.9
127.5
176.9
107.2
132.6
137.5
128.0
179.2
107.2
132.0
137.4
129.2
180.3
108.3
133.2
5.86
3.26
1.93
.67
136.3
157.8
101.9
130.6
136.4
158.5
102.4
126.6
137.2
159.5
102.8
127.7
139.7
164.4
102.9
125.6
139.7
165.0
100.2
131.5
142.4
166.6
103.7
135.3
143.7
168.5
104.7
134.7
144.6
170.0
105.6
132.7
-143.7
169.5
104.2
133.1
143.8
171.4
102.9
128.0
147.7
174.1
107.6
135.3
148.8
176.2
106.6
136.8
146.9 144.7
176.6 177.4
103.0 101.4
127.9
7.51
80.0
78.5
77.3
77.7
78.0
77.6
77.4
77.3
78.2
78.3
78.0
79.1
Products, total
Final products
Consumer goods
Equipment
Intermediate products
Materials
Consumer goods
Durable consumer goods
Automotive products
Autos and utility vehicles
Autos
Auto parts and allied goods...
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Misc. home goods
i4o'.i
Equipment
Business equipment
Industrial equipment
Building and mining equip.
Manufacturing equipment
Power equipment
Commercial transit, farm equip..,
Commercial equipment
Transit equipment
Farm equipment
Defense and space equipment
78.1
135.9
128.4
175.0
109.0
133.3
78.8
Intermediate products
Construction supplies
Business supplies
Commercial energy products
Materials
Durable goods materials
Durable consumer parts
Equipment parts
Durable materials n.e.c
Basic metal materials
Nondurable goods materials
Textile, paper, and chem. m a t . . . ,
Textile materials
Paper materials
Chemical materials
Containers, nondurable
Nondurable materials n.e.c
Energy materials
Primary energy
Converted fuel materials
6.42 116.3 122.7 123.1 124.1 126.8 129.6 128.7 128.0 130.9 131.8 133.1 134.0 134.8 135.0
6.47 129.8 133.3 135.4 135.9 140.3 140.9 141.2 141.3 139.0 140.1 142.1 142.2 143.2
1.14 150.6 147.5 149.8 147.9 158.1 154.0 157.6 156.8 157.1 156.1 159.1 160.0 160.0
129.2
121.0
139.1
127.6
20.35 109.1
4.58 97.7
5.44 118.9
10.34 109.0
5.57 99.1
114.6
107.2
120.6
114.8
99.5
115.2
109.3
122.3
114.0
99.5
115.5
111.6
123.9
112.9
96.1
118.3
111.7
125.7
117.4
101.9
121.6
116.7
127.5
120.7
105.1
122.4
118.5
128.5
121.0
104.0
124.5
119.2
130.5
123.5
107.8
126.8
123.0
133.0
125.2
113.2
127.0
123.1
134.0
125.0
111 .3
130.6
126.1
136.3
129.8
117.5
131.2
125.1
138.0
130.3
119.6
10.47
7.62
1.85
1.62
4.15
126.6
129.0
100.6
113.2
147.9
140.3
144.9
117.3
121.6
166.3
141.3
146.2
118.4
124.4
167.2
142.6
147.9
118.9
125.9
169.5
142.9
147.5
117.8
126.5
168.9
145.5
150.5
116.2
130.0
173.9
146.7
152.7
115.5
130.1
178.0
146.9
152.2
114.1
132.1
177.2
146.2
150.9
116.4
131.2
173.9
147.5
151.8
116.1
134.2
174.7
146.0
150.5
114.7
132.1
173.8
146.1 148.7 147.1
150.5 153.2 151.7
113.7 115.2
132.7 132.2
173.7 178.3
1.70
1.14
8.48
4.65
3.82
127.9
108.3
117.2
108.3
128.0
137.3
114.3
117.0
109.6
125.9
134.8
118.4
119.7
110.5
130.8
136.1
116.7
118.7
107.3
132.3
139.0
118.3
120.6
107.7
136.3
142.2
117.3
118.8
105.4
135.2
141.3
115.1
119.6
106.2
136.0
141.9
120.4
118.8
105.0
135.7
140.7
123.2
120.6
106.2
138.1
146.6
119.6
120.6
107.5
136.7
142.8
120.4
119.5
106.9
134.6
142.9
121.3
120.6
108.4
135.7
146.1
121.5
121.2 121.2
108.9
136.4
9.35
12.23
3.76
8.48
115.5
125.5
144.3
117.2
124.0
124.5
141.8
117.0
125.0
127.1
143.7
119.7
125.2
126.6
144.5
118.7
129.9
128.8
147.2
120.6
129.8
127.5
147.1
118.8
131.1
128.6
148.8
119.6
131.5
128.2
149.3
118.8
134.9
129.3
148.8
120.6
133.0
129.7
149.9
120.6
130.3
128.4
148.7
119.5
130.7
129.3
148.8
120.6
128.9
129.9
149.3
121.2
129.7
121.9
138.6
128.7
115.0
Supplementary groups
Home goods and clothing
Energy, total
Products
Materials
For NOTES see opposite page.
127.3
129.7
148.9
121.2
NOVEMBER 1976 • INDUSTRIAL PRODUCTION
49
INDUSTRIAL PRODUCTION—1976 REVISION
(Seasonally adjusted, 1967 = 100)
Grouping
SIC
code
1967
proportion
1975
average
1976
1975
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. Sept.f Oct.e
552.4
428.3
305.5
123.1
552.7
427.8
302.2
125.8
556.1
430.9
304.6
126.4
Gross value of products in market structure
(Annual rates, in billions of 1972 dollars)
1286.3
1221.4
1156.3
165.3
Products, total
Final products
Consumer goods
Equipment
505.9
393.3
214.4
119.0
521.1
404.0
285.0
119.1
527.1
409.7
290.5
119.3
528.4
410.6
292.0
118.9
531.9
410.9
292.3
119.1
544.3
421.7
300.6
121.1
546.0
423.0
299.7
123.6
545.0
421.8
299.9
122.1
551.5
427.5
303.7
123.7
551.9
425.1
301.0
124.1
547.8
421.2
299.8
121.6
164.9 112.6 116.6 117.6 117.9 120.8 122.8 122.6 123.0 123.7 124.1 124.7 125.5 127.0 126.6
Intermediate products
Major industry groupings
131.8
113.6
152.0
167.4
131.5
112.7
152.5
168.7
131.6
113.9
151.4
167.3
131.2
113.5
150.8
165.7
132.0
113.0
153.0
169.8
131.9
114.4
151 .2
167.2
130.6
112.5
150.8
167.2
131.8 132.3 132.4
114.6 115.1 115.4
151.2 151.5 151.5
166.4
Mining and utilities.
Mining
Utilities...
Electric
12.05 128.5 127.9 130.5 129.2
6.36 112.8 113.8 114.2 112.9
5.69 146.0 143.8 148.8 147.2
3.
160.8 157.3 165.5 162.3
Manufacturing.
Nondurable.
Durable
87.95 116.3 121.2 122.7 123.6 125.2 127.0 127.9 128.5 129.6 130.2 131.0 131.7 131.0 130.0
35.97 126.4 133.6 136.2 136.9 138.4 140.2 140.7 140.7 140.9 141.3 141. 141.3 141.8 141.3
51.98 109.3 112.7 113.4 114.4 115.8 117.9 119.0 120.1 121.7 122.3 124.2 125.0 123.6 122.2
Mining
10
115.8
113.4
113.3
107.0
Foods
Tobacco products
Textile mill products.
Apparel products
Paper and products..
8.75
.67
2.68
3.31
3.21
123.4 126.4
111.8 113.9
122.3 137.5
107.6 115.9
116.3 126.5
128.8
118.5
141.6
118.3
127.7
Printing and publishing
Chemicals and products
Petroleum products
Rubber & plastic products...
Leather and products
4.72
7.74
1.79
2.24
113.2
157.5
125.1
185.1
85.8
115.4
161.9
124.9
185.2
87.7
11,12
13
14
127.3
104.8 112.6
112.0 112.7
116.5 119.1
123.1
121.4 120.0
118.3
122.7
112.3
116.5
121.6
128.5
116.0
139.0
121.2
129.5
129.2 130.8 128.3 129.2 131.2 130.5
117.3 118.8 122.4 115.4 114.5 115.4
137.6 138.7 136.4 135.7 138.0 138.1
123.8 128.0 126.3 126.1 130.3 126.8
130.3 133.0 132.2 133.9 130.4 139.1
131.8
114.5
136.8
125.6
132.0
118.4
163.3
126.3
185.3
83.2
120.0 121.0
122.0 120.6 120.4 119
167.6 170.6 171.2
134.1 130.7 130.2 i26
191.2 186.1 211.2
77.3 77.4
81.
112.5 118. 117.9 122.2 124.2 122.3 124.3 118.3
122.2 125.6 109.9 111.2 109.6 114.4 114.4 119.2
113.1 112.3 113.1 112.5 110.1 111.9 111.3 110.8
110.9 112.1 111.5 117.1 120.0 119.3 117.5 116.7
.51
.69
4.40
.75
Metal mining
Coal
Oil and gas extraction
Stone and earth minerals.
112.2
121.4
112.1
Nondurable manufactures
113.4
147.3
124
166.7
.86
76.5
121.0 122.0 120.5 11-9.7
162.9 167.6 170.6 168.7 166.6 170.0
125.7 129.1 131.8 131.6 132.7 135.1
188.4 196.7 203.5 198.2 185.6 189.1
86.0 86.1 86.0 87.7 91.4 84.0
132.6 133.3
114.8
134.6 135.9
123.7
134.6 i32.7 131
Durable manufactures
Ordnance, pvt. & govt...
Lumber and products..
Furniture and fixtures. .
Clay, glass, stone prod.
Primary metals
Iron and steel
Fabricated metal prod . . .
Nonelectrical machinery.
Electrical machinery
Transportation equip
Motor vehicles & pts
Aerospace & misc. tr. eq..
Instruments
Miscellaneous mfrs
19,91
24
25
32
33
3.64 76.6 72.0 70.0 70.1 69.9 69.5 69.5 69.1 71.4 73.1 74.0 75.0 73.6
128.6
1.64 107.6 116.8 114.1 116.4 123.5 123.9 121.1 122.8 123.0 120.3 124.6 128
1.37 118.2 127.9 128.7 130.3 132.7 134.1 130.6 131.7 131.0 130.1 131.6 134.4 130.9
2.74 117.9 127.8 127.5 129.4 128.6 128.5 133.7 132.7 133.9 136.1 137.2 137.4 138.0
103.9
6.57 96.4 95.4 98.1 92.6 98
4.21 95.8 92.0 96.5 89.1 92.9 100.9
5.93 109.9 114.4 116.3 117.3 116.6 120.9
125.4 126.6 128.6 129.0 131.5
9.15 125
8.05 116.5 120.1 120.1 122.7 124.7 126.5
9.27 97.4
4.50 111.
4.77 84.5
2.11 132.3
1.51 128.3
104.4
126.5
83.6
136.0
134.6
104.7
127.
83.6
136.4
137.6
106.7
130.1
84.7
140.9
137.3
1 1972 dollars.
N.B. Published groupings include some series and subtotals not shown
separately. For summary description and historical data, see BULLETIN for
June 1976, pp. 470-79. Availability of detailed descriptive and historical
data will be announced in a forthcoming BULLETIN.
101.4 105.4 113.2
97.7 103.5 110.7
121.5 121.4
132.9 133.5 134.0
127.8 130.0 131.8
120.2
111.5 116.9 118.3 114.9
110.0 115.3 116.2 111.8
124.0 124.6 125.8 125.4
133.5 135.0 136.1 136.7
132.0 131.0 131.9 128.7
105.8 109.0 111 .2 110.6 112.9 112.6
126.7 135.2 140.8 141.3 144.3 146.5
84.3 83.3 81.7 83.3 80.7
86.1
142.0 141.8 144.4 145.4 149.0 149.5
139.5 140.7 142.5 140.7 145.5 145.9
113.3
148.5
80.3
151.3
148.5
115.0
150.6
81.5
149.6
142.1
112.0
108.9
122.0
136.7
129.0
105.4 105.9
131.3 131.1
82.2
81.0
148.6 149.0
142.7 142.4
A50
BUSINESS ACTIVITY; CONSTRUCTION • NOVEMBER 1976
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Industrial production
Total
Final
Total
Capacity
Nonagutiliza- Conricultion
structural
in mfg. tion
em(1967
conploytracts ment—
Manu- output
factur- = 100)
Total i
ing
Industry
Market
Period
Prices4
Manufacturing2
InterCon- Equip- mediate
Total sumer ment
goods
Materials
Employment
Payrolls
Total
retail
sales 3
Consumer
Wholesale
commodity
76.9
79.6
80.3
78.0
81.0
92.9
93.9
92.2
83.9
88.1
61.1
64.6
65.4
60.3
67.8
59
61
64
64
69
80.2
81.4
84.3
86.6
87.3
87.8
90.7
93.3
94.6
94.8
1955
1956
1957
1958
1Q5Q
58.5
61.1
61.9
57.9
64.8
56.7
59.9
61.2
58.7
64.5
55.4
58.6
60.4
57.6
63.2
59.0
61.2
62.7
62.1
68.1
50.4
55.3
57.5
51.5
56.5
61.6
64.4
64.4
62.9
69.5
61.3
62.9
62.8
56.6
65.3
58.2
60.5
61.2
56.9
64.1
87.0
86.1
83.6
75.0
81.6
1960
1961
1962
1963
1964
66.2
66.7
72.2
76.5
81.7
66.3
67.0
72.3
76.4
80.9
65.3
65.8
71.4
75.5
79.8
70.7
72.2
77.1
81.3
85.8
58.0
57.3
63.7
67.5
71.4
69.9
71.3
75.7
79.9
85.2
66.1
66.2
72.1
76.7
82.9
65.4
65.6
71.5
75.8
81.0
80.1
77.3
81.4
83.5
85.7
68.6
70.2
78.1
86.1
89.4
82.4
82.1
84.4
86.1
88.6
88.0
84.5
87.3
87.8
89.3
68.8
68.0
73.3
76.0
80.1
70
70
75
79
83
88.7
89.6
90.6
91.7
92.9
94.9
94.5
94.8
94.5
94.7
1965
1966
1967
1968.
1969.
89.8 88.2 87.6 92.6 80.7 90.6
97.7 95.9 95.9 97.3 94.0 96.2
100.0 100.0 100.0 100.0 100.0 100.0
106.3 106.2 106.2 105.9 106.5 106.3
111.1 110.3 109.6 109.8 109.3 112.9
92.4
100.7
100.0
106.5
112.5
89.7
97.9
100.0
106.4
111.0
89.5
91.1
86.9
87.0
86.2
93.2
94.8
100.0
113.2
123.7
92.3
97.1
100.0
103.2
106.9
93.9
99.9
100.0
101.4
103.2
88.1
97.8
100.0
108.3
116.6
90
97
100
109
114
94.5
97.2
100.0
104.2
109.8
96.6
99.8
100.0
102.5
106.5
1970
1971
1972
1973
1974.
1975
107.8
109.6
119.7
129.8
129.3
117.8
112.9
116.7
126.5
137.2
135.3
123.1
109.2
111.3
122.3
133.9
132.4
115.5
106.4
108.2
118.9
129.8
129.4
116.3
79.2
78.0
83.1
87.5
84.2
73.6
123.1
145.4
165.3
179.5
169.7
166.0
107.7
108.1
111.9
116.8
119.1
116.9
98.1
94.2
97.6
103.2
102.1
91.4
114.1
116.7
131.5
149.2
157.1
151.0
119
130
142
160
171
186
116.3
121.2
125.3
133.1
147.7
161.2
110.4
113.9
119.8
134.7
160.1
174.9
1975--Oct
Nov
Dec
122.2 122.4 120.9 128.7 110.0 128.0
123.5 123.8 122.3 131.1 110.0 129.3
124.4 124.9 123.5 132.3 111.5 129.9
122.0
123.1
123.3
121.2
122.7
123.6
1
76.8
166.0
148.0
137.0
117.8
117.8
118.1
92.5
92.4
93.0
158.4
158.9
162.3
192
192
198
164.6
165.6
166.3
178.9
178.2
178.7
1976--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
125.7
127.3
128.1
128.4
129.6
130.1
130.7
131.3
131.0
130.4
133.6
135.3
134.9
134.7
135.0
135.9
137.6
138.1
139.0
139.0
125.3
127.3
128.2
129.2
130.6
131.1
132.2
132.9
132.9
132.3
125.2
127.0
127.9
128.5
129.6
130.2
131.0
131.7
131.0
130.0
183.0
170.0
185.0
189.0
205.0
187.0
184.0
162.0
164.0
118.7
119.0
119.4
119.9
119.8
119.9
120.2
120.5
120.8
120.7
94.0
94.3
94.9
95.5
95.4
95.3
95.1
95.3
96.2
95.2
165.9
165.4
167.4
166.1
170.7
171.6
173.2
175.9
177.6
176.0
197
201
204
205
202
206
205
209
206
207
166.7
167.1
167.5
168.2
169.2
170.1
171.1
171.9
172.6
179.3
179.3
179.6
181.3
181.8
183.1
184.3
183.7
184.7
185.2
106.9
108.5
118.0
127.1
127.3
119.3
126.0
127.4
128.1
128.0
128.9
129.5
129.8
130.4
129.7
129.2
105.3
106.3
115.7
124.4
125.1
118.2
123.9
125.3
126.4
126.3
127.3
127.6
127.6
128.3
127.2
126.5
109.0
114.7
124.4
131.5
128.9
124.0
133.1
134.9
136.1
136.1
137.4
137.8
136.8
137.5
136.1
135.2
100.1
94.7
103.8
114.5
120.0
110.2
111.2
112.1
112.9
112.9
113.5
113.8
114.9
115.8
115.3
114.7
A Revised data for 1955-62, comparable to the revised data beginning
1963 shown below, will be published later.
1 Employees only: excludes personnel in the Armed Forces.
23 Production workers only. Revised back to 1973.
F.R. index based on Census Bureau figures.
4
Prices are not seasonally adjusted. Latest figure is final.
NOTE.—All series: Data are seasonally adjusted unless otherwise noted.
J
179.0
|
80.2
I
]
[80.9
J
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept. of Commerce.
Construction contracts; McGraw-Hill Informations Systems Company,
F.W. Dodge Division, monthly index of dollar value of total construction
contracts, including residential, nonresidential, and heavy engineering.
Employment and payrolls: Based on Bureau of Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau of Labor Statistics data.
CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions of dollars, except as noted)
Type of ownership and
type of construction
1974
1975
Sept.
Total construction contracts
1
1976
1975
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
93,685 90,237 7,692 7,767 5,573 5,431 6,390 6,149 8,908 9,408 9,836 10,533 9,774 8,505 8,112
By type of ownership:
Public
Private i
32,062 31,415 2,725 2,544 1,597 1,724 1,655 1,719 2,192 2,383 3,915 3,136 3,246 2,505 2,344
61,623 58,822 4,967 5,223 3,976 3,708 4,734 4,430 6,716 7,025 5,921 7,397 6,528 5,999 5,768
By type of construction:
Residential building 1
Nonresidential building
Nonbuilding
33,567 31,347 2,966 3,189 2,404 2,233 2,157 2,546 3,618 4,003 3,955 4,166 4,149 4,099 3,758
33,131 30,577 2,526 2,629 1,859 1,865 1,939 1,996 2,561 2,741 2,819 2,805 3,031 2,536 2,875
26,988 28,313 2,200 1,949 1,309 1,334 2,294 1,608 2,729 2,664 3,062 3,562 2,594 1,869 1,478
Private housing units authorized...
(In thousands, S.A., A.R.)
1,074
926 1,092 1,111 1,127 1,091 1,147 1,165 1,188 1,082 1,158 1,150 1,215 r l,296 1,433
i Because of improved procedures for collecting data for 1 -family homes,
some totals are not strictly comparable with those prior to 1968. To improve comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.
NOTE.—Dollar value of constructioii contracts as reported by the
McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data may differ from annual totals because adjustments
are made in accumulated monthly data after original figures have been
published.
Private housing units authorized are Census Bureau series for 14,000
reporting areas with local building permit systems.
NOVEMBER 1976 • CONSTRUCTION
A51
VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions of dollars)
Private
Public J
Nonresidential
Total i
Buildings
Residential
Total
Total
Industrial
Commercial
Other
build-2
ings
Public
utilities
and
other
6,021
Highway
Conservation
and
development
695
808
879
8,591
9,321
9,250
2,124
1,973
1,783
718
1,908
2,095
2,172
2.313
2,741
3,227
Military
78,082
87,093
93,917
52,546
59,488
65,953
25.564
30.565
33,200
26,982
28,923
32,753
6,783
7,761
9,401
4,382
4,971
10,759
11,598
25,536
27,605
27,964
94,855
109,950
124,085
137,917
138,526
132,043
66,759
80,079
93,901
105,412
100,179
93,034
31,864
43,267
54,288
59,727
50,378
46,476
34,895
36,812
39,613
45,685
49,801
46,558
6,518
5,423
4,676
6,243
7,902
8,017
9,754
11,619
13,464
15,453
15,945
12,804
5,125
5,437
5,898
5,888
5,797
5,585
13,498
14,333
15,575
18,101
20,157
20,152
28,096
29,871
30,184
32,505
38,347
39,009
1,391
9,981
10,658
10,429
10,505
12,069
10,345
136,310
136,204
138,040
137,833
95,365
95,561
97,346
98,063
48,375
49,396
50,409
52,061
46,990
46,165
46,937
46,002
7,895
7,591
7,720
7,582
12,369
12,418
12,420
12,209
5,820
5,604
5,754
5,608
20,906
20,552
21,043
20,603
40,945
40,643
40,694
39,770
1.597
1,500
1,617
1,583
10,738
10,425
10,389
10,423
3,429
3.314
3,575
3,670
136,713
139,030
145,085
143,901
142,840
146,444
145,144
148,055
149,371
99,345
102,635
107,068
106,004
52,755
55,227
58,119
58,398
58,346
59,555
60,558
60,054
62,005
46,590
47,408
48,949
47,606
48,280
47,973
47,819
50,221
49,731
7,522
7,842
7,605
7,227
6,967
6,738
6,097
6,902
6,607
11,479
12,762
13,346
12,604
12,331
12,006
12,574
12,984
12,432
5,843
6,024
5,957
5,567
5,967
6,229
6,178
6,689
6,645
21,746
20,780
22,041
22,208
23,015
23,000
22,970
23,646
24,047
37,368
36,395
38,017
37,897
36,214
38,916
36,767
37,780
37,635
1,505
1.598
1,454
1,522
1,423
1,368
1,446
1,439
1,437
9,808
9,018
9,632
10,575
9,901
10,292
8,297
9,249
3,295
3,751
3,385
3,774
3,546
3,674
3,573
4,065
106,626
107,528
108,377
110,275
111,736
901
1,087
1,166
1,188
2
Includes religious, educational, hospital, institutional, and other buildings.
1
Data beginning Jan. 1976 are not strictly comparable with prior data
because of change by Census Bureau in its procedure for estimating construction outlays of State and local governments. Such governments
accounted for 86 per cent of all public construction expenditures in 1974.
NOTE.—Census Bureau data; monthly series at seasonally adjusted
annual rates.
PRIVATE HOUSING ACTIVITY
(In thousands of units)
Completions
Starts
Period
Total
1-
family
2-ormore
family
Total
family
Under construction
(end of period)
2-ormore
family
Total
1-
family
New 1-family homes1 sold
and for sale
Mobile
home
2-orshipmore ments
family
Units
Sold
196 7
196 8
196 9
1,292
1,508
1,467
844
899
811
448
608
656
1,320
1,399
859
807
461
591
197 0
197 1
197 2
197 3
1974
197 5
1,434
2,052
2,357
2,045
1,338
621
901
1,047
913
450
268
1,418
1,706
1,971
2,014
1,692
1,297
802
1,014
1,143
1,174
931
866
617
692
1,160
813
1,151
1,309
1,132
888
892
1975—Sept..
Oct.. .
Nov..
Dec...
1,304
1,431
1.381
1,283
966
1,093
1,048
962
338
338
333
321
1,315
1,115
1,386
1,329
1976—Jan.. .
Feb...
Mar..
Apr..r -.
May .
June r .
July.
Aug...
Sept.*
1,236
1,547
1,417
1,367
1,422
1,510
1.382
1,542
1,814
957
1,295
1,110
1,055
1,065
1,139
1,123
279
252
307
312
357
371
259
356
519
1,213
1,299
1,399
1,266
1,360
1,373
1,294
1,386
1
1,186
1,295
487
490
448
228
673
472
401
497
576
567
329
216
485
656
718
620
501
544
227
294
416
456
407
383
528
556
560
558
505
501
496
482
228
235
230
224
571
610
660
641
384
389
381
378
564
584
594
599
603
609
615
624
478
469
463
462
452
455
448
451
263
287
244
237
260
233
224
252
252
573
679
573
628
540
594
612
656
379
384
389
394
400
406
411
405
350
535
840
760
430
922
1,254
1,586
1,599
1,189
1,003
381
505
640
583
516
531
541
749
947
1,016
969
738
992
993
346
377
394
336
1,033
1,057
1.056
1.041
926
953
1,032
986
934
1,052
1,029
287
346
367
280
426
321
265
305
1.042
1,053
1.057
1,081
Merchant builders only.
NOTE.—All series except prices, seasonally adjusted. Annual rates for
starts, completions, mobile home shipments, and sales. Census data except
240
318
413
885
828
1,061
1,055
1,064
1,063
1,075
For
sale
(end of
period)
190
218
for mobile homes, which are private, domestic shipments as reported by
the Mobile Home Manufactured Housing Institute and seasonally adjusted by Census Bureau. Data for units under construction seasonally
adjusted by Federal Reserve.
A52
EMPLOYMENT • NOVEMBER 1976
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands of persons, except as noted)
Civilitin labor force i(S.A.)
Total noninstitutional
population
(N.S.A.)
Period
Not in
labor force
(N.S.A.)
Total
labor
force
(S.A.)
Employed1
Total
Total
In nonagricultural
industries
In
agriculture
Unemployed
Unemployment2
rate
(per cent;
S.A.)
1970
1971
1972
1973
1974
1975
140,182
142,596
145,775
148,263
150,827
153,449
54,280
55,666
56,785
57,222
57,587
58,655
85,903
86,929
88,991
91,040
93,240
94,793
82,715
84,113
86,542
88,714
91,011
92,613
78,627
79,120
81,702
84,409
85,935
84,783
75,165
75,732
78,230
80,957
82,443
81,403
3,462
3,387
3,472
3,452
3,492
3,380
4,088
4,993
4,840
4,304
5,076
7,830
4.9
5.9
5.6
4.9
5.6
8.5
1975—Oct
Nov
Dec
154,256
154,476
154,700
58,825
59,533
59,812
95,377
95,272
95,286
93,213
93,117
93,129
85,151
85,178
85,394
81,743
81,877
82,158
3,408
3,301
3,236
8,062
7,939
7,735
8.6
8.5
8.3
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept..
Oct
154,915
155,106
155,325
155,516
155,711
155,925
156,142
156,367
156,595
156,788
60,110
60,163
60,065
59,898
59,988
57,674
56,817
57,530
59,476
59,112
95,624
95,601
95,866
96,583
96,699
96,780
97,473
97,634
97,348
97,489
93,484
93,455
93,719
94,439
94,557
94,643
95,333
95,487
95,203
95,342
86,194
86,319
86,692
87,399
87,697
87,500
87,907
87,981
87,819
87,773
82,851
83,149
83,513
83,982
84,368
84,206
84,566
84,557
84,533
84,444
3,343
3,170
3,179
3,417
3,329
3,294
3,341
3,424
3,286
3,329
7,290
7,136
7,027
7,040
6,860
7,143
7,426
7,506
7,384
7,569
7.8
7.6
7.5
7.5
7.3
7.5
7.8
7.9
7.8
7.9
1
Includes self-employed, unpaid family, and domestic service workers.
2 Per cent of civilian labor force.
NOTE.—Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. Monthly data relate
to the calendar week that contains the 12th day; annual data are averages
of monthly figures. Description of changes in series beginning 1967 is
available from Bureau of Labor Statistics.
EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands of persons)
Contract
construction
Total
Manufacturing
70,920
71,216
73,711
76,896
78,413
76,987
19,349
18,572
19,090
20,068
20,046
18,342
623
603
622
644
694
745
3,536
3,639
3,831
4,015
3,957
3,462
1975—Oc t
Nov
Dec
77,555
77,574
77,796
18,493
18,482
18,568
774
766
769
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.*
78,179
78,368
78,630
78,963
78,923
78,943
79,176
79,333
79,567
79,513
18,722
18,763
18,877
18,973
18,964
18,950
18,933
18,979
19,122
18,976
1975—Oc t
Nov
Dec
78,193
78,339
78,527
1976—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.*
77,091
77,339
77,906
78,688
79,115
79,900
78,891
79,187
79,855
80,158
Period
197 0
197 1
197 2
197 3
1974
197 5
Transportation and
public
utilities
Trade
Finance
Service
Government
4,504
4,457
4,517
4,644
4,696
4,499
15,040
15,352
15,975
16,674
17,017
16,949
3,687
3,802
3,943
4,091
4,208
4,473
11,621
11,903
12,392
13,021
13,617
13,996
12,561
12,887
13,340
13,739
14,177
14,771
3,402
3,409
3,406
4.476
4,496
4.477
17,043
17,010
17,080
4,246
4,248
4,264
14,157
14,188
14,229
14.964
14,975
15,003
764
763
770
772
773
779
788
752
795
804
3,428
3,375
3,366
3,399
3,386
3,362
3,373
3,352
3,337
3,357
4,494
4,517
4,498
4,510
4,498
4,477
4.500
4.501
4,507
4,492
17,233
17,326
17,386
17,444
17,439
17,460
17,567
17,603
17,612
17,625
4,266
4,266
4,276
4,293
4,278
4,297
4,303
4,312
4,343
4,372
14,307
14,360
14,422
14,498
14,514
14,557
14,623
14,709
14,768
14,788
14.965
14,998
15,035
15,074
15,071
15,061
15,089
15,125
15,083
15,099
18,687
18,635
18,584
763
763
763
3,620
3.522
3,338
4,503
4,509
4,477
17,136
17,313
17,737
4,238
4,235
4,243
14,185
14,174
14,158
15,061
15,188
15,227
18,495
18,545
18,679
18,813
18,872
19,117
756
752
759
766
775
795
804
766
3,061
3,014
3,103
3,270
3,386
3.523
3,582
3,620
3,557
3,572
4,440
4,445
4,462
4,474
4,494
4,531
4,540
4,528
4,543
4,519
17,026
16,926
17,028
17,295
17,405
17,552
17,517
17,544
17,652
17,722
4,223
4,228
4,246
4,276
4,278
4,344
4,368
4,368
4,347
4,363
14,049
14,188
14,307
14,498
14,616
14,775
14,784
14,827
14,768
14,818
15,041
15,241
15,322
15,296
15,289
15,168
14,475
14,363
14,792
15,198
Mining
SEASONALLY ADJUSTED
NOT SEASONALLY ADJUSTED
18,821
19,171
19,395
19,173
801
793
NOTE.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period
that includes the 12th of the month. Proprietors, self-employed persons,
domestic servants, unpaid family workers, and members of Armed
Forces are excluded.
Beginning with 1973, series has been adjusted to Mar. 1974 benchmark.
NOVEMBER 1976 • PRICES
A53
CONSUMER PRICES
(1967 = 100)
Health and recreation
Housing
All
items
Food
51.3
38.8
44.1
53.9
88.7
94.5
48.3
30.6
38.4
50.7
88.0
94.4
53.7
59.1
90.2
94.9
97.2
100.0
104.2
109.8
99.1
100.0
103.6
108.9
197 0
197 1
197 2
197 3
1974
197 5
116.3
121.3
125.3
133.1
147.7
161.2
1975—Sept.
Oct..
Nov.
Dec.
1976—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Period
1929
1933
1941
1945
1960
196 5
196 6
196 7
196 8
196 9
..
Homeownership
Fuel
oil
and
coal
Gas
and
electricity
86.3
92.7
40.5
48.0
89.2
94.6
81.4
79.6
98.6
99.4
97.2
100.0
104.2
110.8
98.2 96.3
100.0 100.0
102.4 105.7
105.7 116.0
97.0
100.0
103.1
105.6
114.9
118.4
123.5
141.4
161.7
175.4
118.9
124.3
129.2
135.0
150.6
166.8
110.1
115.2
119.2
124.3
130.6
137.3
128.5
133.7
140.1
146.7
163.2
181.7
163.6
164.6
165.6
166.3
177.8
179.0
179.8
180.7
168.9
169.8
171.3
172.2
138.4
139.3
139.9
140.6
166.7
167.1
167.5
168.2
169.2
170.1
171.1
171.9
172.6
180.8
180.0
178.7
179.2
180.0
180.9
182.1
182.4
181.6
173.2
173.8
174.5
174.9
175.6
176.5
177.5
178.4
179.5
141.2
142.1
142.7
143.2
143.8
144.4
145.0
145.6
146.2
Total
Rent
76.0
54.1
57.2
58.8
91.7
96.9
Fur- Apparel Transportanishand
ings upkeep tion
and
operation
Total
Medical
care
Personal
care
Read- Other
ing
goods
and
and
recrea- servtion
ices
93.8
95.3
48.5
36.9
44.8
61.5
89.6
93.7
44.2
47.8
89.6
95.9
85.1
93.4
37.0
42.1
79.1
89.5
41.2
55.1
90.1
95.2
47.7
62.4
87.3
95.9
49.2
56.9
87.8
94.2
99.6
100.0
100.9
102.8
97.0
100.0
104.4
109.0
96.1
100.0
105.4
111.5
97.2
100.0
103.2
107.2
96.1
100.0
105.0
110.3
93.4
100.0
106.1
113.4
97.1
100.0
104.2
109.3
97.5
100.0
104.7
108.7
97.2
100.0
104.6
109.1
110.1
117.5
118.5
136.0
214.6
235.3
107.3
114.7
120.5
126.4
145.8
169.6
113.4
118.1
121.0
124.9
140.5
158.1
116.1 112.7
119.8 118.6
122.3 119.9
123.8
126.8
136.2 . 137.7
142.3 150.6
116.2
122.2
126.1
130.2
140.3
153.5
120.6
128.4
132.5
137.7
150.5
168.6
113.2
116.8
119.8
125.2
137.3
150.7
113.4
119.3
122.8
125.9
133.8
144.4
116.0
120.9
125.5
129.0
137.2
147.4
183.9
184.8
186.8
187.8
238.7
243.3
246.5
248.7
174.0
174.2
176.8
179.0
160.1
160.9
161.6
162.0
143.5
144.6
145.5
145.2
155.4
156.1
157.4
157.6
155.4
156.3
156.5
157.5
172.2
173.5
173.3
174.7
152.1
152.9
153.6
154.6
146.0
146.6
147.0
147.5
148.0
148.5
148.9
149.8
188.8
188.6
188.7
188.9
189.6
190.7
192.2
193.4
194.4
248.9
249.4
247.6
246.6
246.2
247.3
248.1
249.3
250.8
179.5
181.9
183.7
184.4
186.1
187.9
189.6
190.3
192.2
163.7
165.2
166.6
167.4
167.9
168.5
168.9
169.1
170.2
143.3
144.0
145.0
145.7
146.8
146.9
146.5
148.1
150.2
158.1
158.5
159.8
161.3
163.5
165.9
167.6
168.5
169.5
158.6
159.7
160.6
161.4
162.1
162.8
163.9
164.4
165.3
176.6
178.8
180.6
181.6
182.6
183.7
185.5
186.8
187.9
155.7
157.0
157.4
158.3
158.9
159.8
160.5
161 .6
162.8
148.2
148.5
149.0
149.5
150.3
150.9
151.2
151 .4
152.8
150.5
151.3
151.8
152.5
152.9
153.2
153.6
153.8
153.9
NOTE.—Bureau of Labor Statistics index for city wage earners and clerical workers.
WHOLESALE PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities
Period
All
commodities
ProFarm cessed
prod- foods
and
ucts
feeds
Total
Textiles,
etc.
RubHides, Fuel, Chemicals, ber,
etc.
etc.
etc.
etc.
Lum- Paper, Metals,
ber,
etc.
etc.
etc.
90.8
94.3
95.3
95.9
92.4
96.4
92.0
93.9
99.0
96.9
93.0
95.9
97.2
97.5
1960
196 5
94.9
96.6
97.2
98.7
89.5
95.5
95.3
96.4
99.5
99.8
196 6
196 7
196 8
196 9
99.8
100.0
102.5
106.5
105.9
100.0
102.5
109.1
101.2
100.0
102.2
107.3
98.5
100.0
102.5
106.0
100.1
100.0
103.7
106.0
103.4 97.8 99.4 97.8 100.2 98.8
100.0 100.0 100.0 100.0 100.0 100.0
103.2 98.9 99.8 103.4 113.3 101.1
108.9 100.9 99.9 105.3 125.3 104.0
197 0
197 1
197 2
197 3
197 4
197 5
110.4
113.9
119.1
134.7
160.1
174.9
111.0
112.9
125.0
176.3
187.7
186.7
112.0
114.3
120.8
148.1
170.9
182.6
110.0
114.0
117.9
125.9
153.8
171.5
107.2
108.6
113.6
123.8
139.1
137.9
110.1
114.0
131.3
143.1
145.1
148.5
1975—Oct..
Nov.
Dec.
178.9 197.3 186.2
178.2 191 .7 182.6
178.7 193.8 181.0
174.7 141.3 152.4 256.5 182.3 151.5 179.1 170.9
175.4 143.2 154.4 257.0 182.9 151.8 178.3 171.3
176.1 144.0 154.6 258.0 183.4 151.9 183.1 173.1
187.2 164.1 141.1 177.1 146.6 147.6
187.0 165.3 141 .5 177.7 147.2 148.6
187.1 165.8 142.0 178.0 147.5 151.1
1976—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
179.3
179.3
179.6
181.3
181.8
183.1
184.3
183.7
184.7
185.2
177.3
178.0
178.9
180.0
180.4
181.3
182.6
183.6
184.7
186.3
187.7
189.2
190.6
192.9
194.0
196.4
198.7
199.0
200.0
199.9
i Dec. 1968 = 100.
192.8
191.0
187.2
192.9
192.6
196.5
196.9
189.3
191.8
186.6
179.4
176.4
175.8
178.0
179.9
181.8
182.6
176.8
177.1
174.9
145.1
146.3
146.7
147.4
147.0
148.1
149.0
149.2
149.0
149.3
157.5
159.9
162.0
165.4
169.6
167.4
169.8
171.3
173.6
170.8
96.1 101.8 103.1
95.5 99.0 95.9
MaTranschin- Furni- Nonme- porta- Misery
tion cellatallic
ture,
and
min- equip-1 neous
equip- etc.
ment
erals
ment
105.9
114.2
118.6
134.3
208.3
245.1
257.3
255.7
255.7
256.9
257.2
260.3
265.0
269.1
270.9
277.0
102.2
104.2
104.2
110.0
146.8
181.3
184.2
184.9
185.6
187.1
186.9
187.1
187.0
187.7
188.5
188.4
108.6
109.2
109.3
112.4
136.2
150.2
152.4
154.2
155.5
156.7
157.1
157.2
158.2
161.0
163.6
164.5
113.7
127.0
144.3
177.2
183.6
176.9
190.5
196.0
202.3
203.3
202.3
199.8
203.7
207.5
212.7
213.6
98.1
96.2
108.2
110.1
113.4
122.1
151.7
170.4
174.8
175.8
176.9
178.5
179.2
179.5
180.5
181.0
181.6
181.4
97.7
98.8 96.8 98.0 98.4
100.0
100.0 100.0 100.0 100.0
102.2
102.6 103.2 102.8 103.7
108.5 106.5 104.9 107.7 100.8 105.2
116.7
119.0
123.5
132.8
171 .9
185.9
111.4
115.5
117.9
121.7
139.4
161.4
167.0
167.7
168.2
168.9
169.4
170.2
170.9
171.4
172.9
174.2
107.5
109.9
111.4
115.2
127.9
139.7
143.1
143.4
143.9
144.4
144.8
145.3
145.7
146.1
146.5
147.0
113.3
122.4
126.1
130.2
153.2
174.0
181.1
181.3
182.5
185.2
185.6
186.0
186.9
187.7
188.2
189.1
104.5
110.3
113.8
115.1
125.5
141.5
148.7
148.8
149.1
149.2
149.0
149.1
149.2
150.2
151.0
156.0
109.9
112.8
114.6
119.7
133.1
147.7
151.8
152.1
152.6
152.4
152.7
154.4
153.8
153.5
153.9
154.1
A54
NATIONAL PRODUCT AND INCOME • NOVEMBER 1976
GROSS NATIONAL PRODUCT
(In billions of dollars)
Item
1950
1970
1972
1973
1974
1975
1975
III
1976
IV
I
II
IIP
Gross national product
Final purchases
286.2
279.4
982.4 1,171.1 1,306.6 1,413.2 1,516.3 1,548.7 1,588.2 1,636.2 1,675.2 1,709.7
978.6 1,161.7 1,288.6 1,402.5 1,531.0 1,550.6 1,592.5 1,621.4 1,659.2 1,695.4
Personal consumption expenditures
Durable goods
Nondurable goods
Services
192.0
30.8
98.2
63.0
618.8
84.9
264.7
269.1
733.0
111.2
299.3
322.4
809.9
123.7
333.8
352.3
887.5
121.6
376.2
389.6
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm
Change in business inventories
Nonfarm
53.8
47.0
27.1
9.3
17.8
19.9
18.7
6.8
6.0
140.8
137.0
100.5
37.7
62.8
36.6
35.1
3.8
3.7
188.3
178.8
116.8
42.5
74.3
62.0
60.3
9.4
8.8
220.0
202.1
136.0
49.0
87.0
66.1
64.3
17.9
14.7
215.0 183.7
204.3
198.3
149.2
147.1
54.1
52.0
95.1
95.1
55.1
51.2
52.7
49.0
10.7 - 1 4 . 6
12.2 - 1 7 . 6
196.7
198.6
146.1
51.8
94.3
52.6
50.2
-2.0
-4.2
201.4
205.7
148.7
52.1
96.6
57.0
54.2
-4.3
-9.5
229.6
214.7
153.4
53.2
100.2
61.3
58.6
14.8
12.7
239.2
223.2
157.9
54.9
103.0
65.3
62.9
16.0
17.3
245.5
231.1
162.5
55.6
106.8
68.7
66.1
14.4
15.4
Net exports of goods and services
Exports
Imports
1.9
13.9
12.0
3.9
62.5
58.5
-3.3
72.7
75.9
7.1
101.6
94.4
7.5
144.4
136.9
20.5
148.1
127.6
21.4
148.2
126.8
21.0
153.7
132.7
8.4
154.1
145.7
9.3
160.3
151.0
5.9
166.2
160.3
Government purchases of goods and services
Federal
National defense
Other
State and local
38.5
18.7
14.0
4.7
19.8
218.9
95.6
73.5
22.1
123.2
253.1
102.1
73.5
28.6
151.0
269.5
102.2
73.5
28.7
167.3
303.3
111.6
77.3
34.3
191.6
339.0
124.4
84.3
40.1
214.5
343.2
124.6
84.6
40.0
218.6
353.8
130.4
87.1
43.2
223.4
354.7
129.2
86.2
42.9
225.5
362.0
131.2
c
86.9
44.2
230.9
369.5
134.4
88.6
45.7
235.1
Gross national product in 1972 dollars
973.2
131.7
409.1
432.4
987.3 1,012.0 1,043.6 1,064.7 1,088.9
136.0 141.8 151.4 155.0 158.1
414.6 421.6 429.1 434.8 442.7
436.7 448.6 463.2 474.9 488.1
533.5 1,075.3 1,171.1 1,235.0 1,214.0 1,191.7 1,209.3 1,219.2 1,246.3 1,260.0 1,272.2
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
see the Survey of Current Business, Jan. 1976.
NATIONAL INCOME
(In billions of dollars)
Item
1950
1970
1972
1973
1974
1975
1975
III
1976
IV
I
II
National income
236.2
798.4
Compensation of employees
154.8
609.2
715.1
799.2
875.8
928.8
935.2
963.1
994.4 1,017.2 1,037.3
147.0
124.4
22.6
546.5
430.5
116.0
633.8
496.2
137.6
701.2
552.6
148.6
764.5
604.1
160.4
806.7
630.8
175.8
811.7
634.4
177.3
836.4
654.1
182.2
861.5
676.1
185.4
881.1
692.4
188.7
897.7
706.0
191.7
Supplements to wages and salaries
Employer contributions for social insurance
Other labor income
7.8
4.2
3.7
62.7
30.7
32.0
81.4
39.4
42.0
98.0
49.3
48.7
111.3
55.8
55.5
122.1
59.7
62.5
123.5
60.2
63.3
126.7
61.6
65.2
132.9
65.9
67.1
136.2
67.1
69.0
139.6
68.6
71.1
Proprietors' income with inventory valuation and
capital consumption adjustments
Business and professional
Farm
38.4
24.9
13.5
65.1
51.2
13.9
76.1
58.1
18.0
92.4
60.4
32.0
86.9
61.1
25.8
90.2
65.3
24.9
95.5
66.3
29.2
97.2
69.0
28.3
93.2
71.4
21.9
100.3
72.8
27.5
96.1
74.4
21.7
7.1
18.6
21.5
21.6
21.0
22.4
22.4
22.9
23.3
23.1
23.2
Wages and salaries
Private
Government and govt, enterprises
Rental income of persons with capital consumption
adjustment
Corporate profits and inventory valuation adjustment
and without capital consumption adjustment
951.9 1,064.6 1,135.7 1,207.6 1,233.4 1,264.6 1,304.7 1,337.4
37.6
66.4
89.6
97.2
87.8
103.1
117.9
119.1
129.6
131.8
42.6
17.9
24.7
8.8
15.9
71.5
34.5
37.0
22.9
14.1
96.2
41.5
54.6
24.6
30.0
115.8
48.7
67.1
27.8
39.3
127.6
52.4
75.2
30.8
44.4
114.5
49.2
65.3
32.1
33.2
126.9
54.8
72.1
32.6
39.5
131.3
57.2
74.1
32.2
41.9
141.1
61.4
79.7
33.1
46.6
146.2
63.5
82.7
34.4
48.3
Inventory valuation adjustment
-5.0
-5.1
-6.6
-18.6
-39.8
-11.4
-9.0
-12.3
-11.5
-14.4
-12.7
Capital consumption adjustment
-4.0
1.5
2.5
1.9
-3.0
-11.6
-12.6
-13.5
-14.5
-15.4
-15.7
2.3
37.5
47.0
52.3
67.1
74.6
74.9
75.8
78.6
80.3
83.1
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
Net interest
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also NOTE to table above.
35.9
A55
NOVEMBER 1976 • NATIONAL PRODUCT AND INCOME
RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions of dollars)
1975
Item
1970
1950
1972
1973
1974
IV
III
23.9
23.4
.8
2.0
Plus: Subsidies less current surplus of government
enterprises
II
I
Illf
982.4 1,171.1 1,306.6 1,413.2 1,516.3 1,548.7 1,588.2 1 ,636.2 1 ,675.2 1,707.9
286.2
Gross national product
Less: Capital consumption allowances with capital
consumption adjustment
Indirect business tax and nontax liability
Business transfer payments
Statistical discrepancy
1976
1975
90.8
94.0
4.0
-2.1
4.7
1.7
117.7
120.2
5.4
2.6
137.7
128.4
5.6
6.6
161.4
138.7
6.3
4.4
164.4
141.5
6.4
5.1
169.5
144.1
6.6
6.1
173.6
144.9
6.8
7.2
177.7
148.2
7.0
5.8
182.0
151.0
7.2
3.6
3.9
.8
2.0
2.1
2.7
.9
.7
1.1
105.4
111.0
.1
2.7
236.2
798.4
Less: Corporate profits with inventory valuation and
capital consumption adjustments
Net interest
Contributions for social insurance
Wage accruals less disbursements.
33.7
2.3
7.1
67.9
37.5
58.7
92.1
47.0
73.6
99.1
52.3
91.5
84.8
67.1
103.4
91.6
74.6
109.7
105.3
74.9
110.3
105.6
75.8
112.6
115.1
78.6
119.3
116.4
80.3
121.4
83.1
123.7
Plus: Government transfer payments to persons.
Personal interest income
Dividends
Business transfer payments
14.4
8.9
8.8
.8
75.9
64.3
22.9
4.0
99.4
74.6
24.6
4.7
113.5
84.1
27.8
5.4
134.6
101.4
30.8
5.6
168.9
110.7
32.1
6.3
172.7
176.0
114.4
32.2
6.6
181.8
118.0
33.1
6.8
180.6
120.7
34.4
7.0
185.4
124.7
35.9
7.2
226.1
801.3
20.6
115.3
141.2
150.8
170.4
Equals: Disposable personal income
205.5
685.9
801.3
901.7
982.9 1,080.9 1,091.5 1,119.9 1 ,147.6 1 ,172.5 1,190.4
Less: Personal outlays
Personal consumption expenditures
Interest paid by consumer to business
Personal transfer payments to foreigners (Net)
194.7
192.0
2.3
.4
635.4
618.8
15.5
1.1
751.9
733.0
17.9
1.0
831.3
809.9
20.2
1.3
910.7
887.5
22.2
1.0
Equals: National income
Equals: Personal income
Less: Personal tax and nontax payments.
Equals: Personal saving
Disposable personal income in (1972) dollars.
951.9 1,064.6 1,135.7 1,207.6 1,233.4 1,264.6 1 ,304.7 1 ,337.4
111.0
32.6
6.4
942.5 1,052.4 1,153.3 1,249.7 1,265.5 1,299.7 1,,331.3 1 ,362.0 1,386.2
168.8
174.0
179.8
183.8
189.5
195.8
996.9 1,011.1 1,036.2 1,068.0 1,089.6 1,114.8
973.2 987.3 1,012.0 1:,043.6 1,064.7 1,088.9
23.3
23.4
22.8
23.9
24.8
22.8
.9
.9
1.0
1.0
1.1
.9
10.8
50.6
49.4
70.3
72.2
84.0
80.5
83.7
79.5
82.9
75.6
361.9
741.6
801.3
854.7
840.8
855.5
857.1
867.5
880.4
890.5
892.5
NOTE.—Dept. of Commerce estimates. Quarterly data seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page.
PERSONAL INCOME
(In billions of dollars)
1976
1975
Item
1974
1975
Sept.
Total personal income
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
1153.3 1249.7 1277.1 1290.8 1300.2 1308.2 1320.8 1331.4 1341.9 1352.5 1362.9 1370.4 1380.8 1385.5
Wage and salary disbursements
765.0 806.7 819.1
Commodity-producing industries... 273.9 275.3 279.
Manufacturing only
211.7 215.5
211
Distributive industries
184.4 195.6 198.2
Service industries
145.9 159.9 162.4
Government
160.9 175.8 178.8
876.9
301.7
234.
212.3
175.3
186.6 187.6
883.3
303.5
235.8
213.9
177.2
188.7
883.1
303.4
236.2
212.4
177.7
189.6
892.7
306.5
238.0
214.9
180.5
190.7
69.0
828.5 836.6 844.0 854.2 861.4
282.9 285.7 288.6 292. 294.9
220.1 222.8 227.2 229.4
218.1
200.9 202.5 203.5 206.5 208.8
170.8 172.4
163.6 166.0 168.
182.4 183.2 184.2 185.4
181.
868.8
298.4
232.2
209.8
174.1
Other labor income
55.5
62.5
63.9
64.5
65.2
65.8
66.4
67.1
67.7
68.4
69.7
70.4
Proprietors' income with inventory
valuation and capital consumption
adjustments
Business and professional
Farm
86.9
61.1
90.2
65.3
24.9
96.4
67.0
29.4
97.5
68.3
29.2
97.1
68.7
28.4
97.2
69.9
27.3
95.2
70.6
24.6
92.4
71.3
21.1
92.2
72.2
25.8
20.0
96.0 100.0 105.0
72.7 72.5 73.4
23.3 27.5 31.6
98.8
73.8
26.0
Rental income of persons with capital
consumption adjustment
21.0
22.4
22.4
22.9
22.9
22.9
23.2
23.4
23.3
23.3
23.4
22.7
23.4
Dividends
30.8
32.1
32.9
32.9
32.9
30.8
32.9
33.3
33.0
33.4
33.9
35.9
35.2
Personal interest income
101.4 110.7 112.1 113.2 114.4 115.5 116.7 117.9 119.3 120.0 120.7 121.5 123.0
Transfer payments
140.3 175.2 180.7 182.1 182.1 183.4 185.3 189.2 191.3 188.7 187.1
186.8
191.3
51.4
54.3
54.9
Less: Personal contributions for social
insurance
Nonagricultural income
Agricultural income
Aug.
47.6
50.0
50.4
50.7
51.0
53.]
53.4
53.7
54.]
54.4
1117.3 1213.4 1236.1 1249.9 1260.0 1269.1 1284.4 1298.6 1310.1 1317.3 1323.3 1326.6 1342.5 1351.8
36.0 36.3 41.0 40.9 40.2 39.1 36.4 32.8 31.8 35.2 39.6 43.8 38.4 33.6
NOTE.—Dept. of Commerce estimates. Monthly data seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page.
Sept.?
A56
FLOW OF FUNDS • NOVEMBER 1976
SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1975
Transaction category, or sector
1967
1968
1970
1969
1971
1972
1973
1974
1975
HI
1976
H2
HI
Credit market funds raised by nonfinancial sectors
1 Total funds raised by nonfinancial sectors
2 Excluding equities
83.9
81.5
98.3
98.3
U.S. Government
Public debt securities
Agency issues and mortgages
All other nonfinancial sectors
Corporate equities
Debt instruments
Private domestic nonfinancial
sectors...
Corporate equities
Debt instruments
Debt capital instruments
State and local obligations
Corporate bonds
Home mortgages
Multifamily residential mortgages
Commercial mortgages
Farm mortgages
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
13.0
8.9
4.1
70.9
2.4
68.5
66.9
2.4
64.5
46.1
7.8
14.7
13.4
3.6
4.7
2.0
18.4
4.5
9.6
1.7
2.6
66.9
7.9
22.4
3.3
4.4
28.9
13.6 - 3 . 7
10.5 - 1 . 3
3.1 - 2 . 4
84.8 97.1
*
3.9
84.8
93.3
81.9 93.5
-.2
3.4
82.1
90.1
51.8 52.5
9.5
9.9
12.9 12.0
17.3
18.1
3.4
4.9
6.6
5.7
2.2
1.8
30.2 37.6
10.0 10.4
13.8 15.5
1.5
1.8
5.0
9.9
81.9 93.5
9.8 10.7
32.1 33.8
2.8
3.1
5.3
7.5
31.9 38.4
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. Government loans
Memo: U.S. Govt, cash balance
Totals net of changes in U.S. Govt, cash balances
38 Total funds raised
39
By U.S. Government
4.0
.1
4.0
1.2
-.3
.5
2.6
1.2
2.8
.2
2.7
1.1
-.5
-.2
2.2
-1.2
3.7
.5
3.2
1.0
-.2
.3
2.1
.5
82.7
11.8
99.5
14.8
93.0
-4.1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
93.5 100.7 151.0 176.9 197.6 188.8 210.4 184.2 236.5 242.0
89.6 94.9 139.6 166.4 190.0 185.0 200.3 173.8 226.9 228.3
11.9
12.9
-1.0
88.8
5.8
83.0
86.1
5.7
80.4
60.2
11.2
19.8
14.4
6.9
7.1
.8
20.1
5.9
6.7
2.6
5.0
86.1
11.3
25.3
2.3
5.7
41.5
24.7
26.0
-1.3
126.3
11.5
114.8
121.1
11.4
109.7
86.8
17.5
18.8
28.6
9.7
9.8
2.4
22.8
11.6
6.5
-.4
5.1
121.1
17.8
42.1
4.5
10.3
46.4
2.7
.1
2.7
.9
-.3
.8
1.3
2.8
5.2
.9
2.1
.3
1.8
3.2
15.2
14.3
1.0
161.7
10.5
151.2
157.7
10.9
146.8
102.8
15.4
12.2
42.6
12.7
16.4
3.6
44.0
18.6
18.1
.8
6.5
157.7
15.2
64.8
5.8
13.1
58.8
8.3
7.9
.4
189.4
7.7
181.7
183.1
7.9
175.3
106.7
16.3
9.2
46.4
10.4
18.9
5.5
68.6
21.7
34.8
2.5
9.6
183.1
14.8
73.5
9.7
12.3
72.9
12.0
12.0
176.8
3.8
173.0
161.6
4.1
157.5
101.2
19.6
19.7
34.6
7.0
15.1
5.1
56.3
9.8
26.2
6.8
13.5
161.6
18.6
45.2
7.9
6.7
83.1
85.2
85.8
-.6
125.2
10.0
115.1
112.2
9.9
102.3
101.3
17.3
27.2
40.8
-.1
10.9
5.2
1.0
8.5
-14.5
-2.2
9.1
112.2
14.9
49.7
9.4
1.2
37.1
6.2 15.3
4.0
-.4
-.2
-.2
4.4
6.4
15.5
1.0
1.0
2.1
3.0
2.8
4.7
.9
-1.0
7.1
1.7
1.5
1.6
- . 3 -1.7 -4.6
13.0
.1
12.8
6.2
4.0
—1
2.8
2.9
80.8
82.0
-1.2
103.4
10.5
93.0
94.9
10.3
84.6
97.5
16.2
33.4
33.5
1
2
8.7
5.6
-12.8
1.1
-23.5
-.2
9.7
94.9
13.9
39.0
9.4
-.8
33.5
89.6
89.7
-.1
146.9
9.6
137.3
129.4
9.5
119.9
105.1
18.4
21.0
48.1
-.2
13.1
4.8
14.8
16.0
-5.5
-4.2
8.5
129.4
15.9
60.4
9.4
3.2
40.6
73.8
73.9
-.1
168.2
13.7
154.5
152.5
13.3
139.2
111.8
18.4
20.7
54.4
.9
11.5
5.9
21A
19.4
-12.7
8.1
12.6
152.5
16.7
72.8
5.2
46.8
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
8.5
17.4
8.4
5.7
.6
-1.2
3.3
.5
17.3
6.7
7.4
1.0
2.2
5.2
15.7
.3
15.3
7.6
3.7
.8
3.2
10.8
30
31
32
33
34
35
36
37
97.9 147.8 177.2 199.3 193.4 207.5 183.7 231.3 231.2
9.1 21.6 15.5
9.9
16.6 82.3 80.3 84.4 63.0
38
39
5.2
*
*
*
11.0
Credit market funds raised by financial sectors
1 Total funds raised by financial sectors
2
U.S. Govt, related
3
Sponsored credit agencies
4
Mortgage pool securities
5
Loans from U.S. Government
Private financial sectors
6
Corporate equities
7
8
Corporate bonds
9
Mortgages
10
11
Bank loans n.e.c
Open market paper and RP's
12
13
Loans from FHLB's
14
Sponsored credit agencies
15
Mortgage pools
16
Private financial sectors
17
Commercial banks
18
19
Bank affiliates
Foreign banking agencies
20
Savings and loans associations
21
Other insurance companies
22
Finance companies
23
24
REIT's
Open end investment companies
25
Money market funds
26
,
2
3
4
5
6
7
8
9
10
11
12
2.0
.1
-.6
.7
-.1
2.0
3.1
-1.1
.1
1.0
-2.0
1.8
-2.5
2.0
-.6
.7
2.0
*
*
-1.7
.1
.6
*
3.0
17.2
4.0
3.2
.5
.2
13.2
6.5
6.7
.4
.4
1.5
3.4
.9
17.2
3.5
.5
13.2
.8
.1
1.1
.2
3.9
1.2
5.9
35.2
9.5
9.1
.7
-.3
25.8
6.3
19.5
.8
.2
1.5
12.9
4.0
35.2
8.8
.7
25.8
2.4
4.3
.2
4.1
.5
7.8
1.5
4.9
15.8
9.8
8.2
1.6
17.0
5.9
1.1
4.8
29.1
8.4
3.5
4.9
56.7
19.9
16.3
3.6
6.0
4.8
1.2
2.1
.1
11 1
3.5
7.6
3.8
2.1
3.5
.9
-2.7
17.0
1.1
4.8
11.1
2.4
-.4
1.6
—. 1
.6
2.7
2.9
1.3
20.7
2.8
18.0
5.1
1.7
6.8
4.4
36.8
1.5
35.3
3.5
-1.2
14.0
11.8
7.2
56.7
16.3
3.6
36.8
8.1
2.2
5.1
6.0
.5
9.4
6.5
-1.2
*
-3.5
1.3
15.8
8.2
1.6
6.0
-2.0
-1.9
.1
1.8
.4
2.6
2.2
2.8
*
29.1
3.5
4.9
20.7
4.8
.7
.8
2.0
.5
6.2
6.3
-.5
43.0
23.1
16.6
5.8
.7
19.9
1.0
18.9
2.1
-1.3
7.5
3.9
6.7
43.0
17.3
5.8
19.9
-1.1
3 5
2^9
6.3
.9
4.5
1.1
-.5
2.4
14.8 15.1 14.6
13.5 14.0 13.1
1.4
2.3
3.3
10.3 11.5
9.2
.9
6
1.1
1.3
1.1
1.4
1.2
1.2
1.2
*
.1
.3
2.9
3.2
2.6
2.3
1.2
3.4
-3.9 -4.7 -3.2
2.8
7.6 - 1 . 9
-4.0 -7.3
-.6
14.8 15.1 14.6
3.2
2.5
4.0
10.3 11.5
9.2
1.3
1.1
1.4
6.4 - 3 . 0
1.7
3
9 _ 3
'.2
-2.1 -7.8
3.6
.9
.9
1.0
-.8
.7
2.1
-1.9 -1.6 -2.2
.8
1.5
' #
1.3
2.6
1
2
3
4
*
5
11.7
6
.7
7
11.0
8
6.1
9
1.2 10
- 2 . 8 11
8.7 12
- 2 . 3 13
29.7 14
3.9 15
14.2 16
11.7 17
11.3 18
— 1 3 19
-1.5
20
-.1
21
1.0 22
6.7 23
- 1 . 9 24
- 1 . 1 25
- . 7 26
29.7
18.0
3/9
14.2
Total credit market funds raised, all sectors, by type
Other corporate equities
Debt instruments
U.S. Government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper and RP's
Other loans
85.9 115.5 128.7 116.4 168.1 206.0 254.3 231.8 225.2 199.4 251.1 271.7
5.9
3.0
4.9
2.8
1.3
-.5 -1.2
-.5
.8
.1 - 1 . 1
1.5
.6
5.2
2.5
7.7 13.7 13.8 10.4
5.4 10.4 10.2 10.7 15.4
80.4 109.0 118.6 105.9 153.1 192.8 245.2 227.0 214.0 187.7 240.3 257.4
13.2 17.4
6.2 21.7 30.7 23.7 28.3 34.5 98.0 93.6 102.4 91.8
9.5
9.9 11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 18.4
7.8
16.6 14.4 13.8 23.3 23.5 18.4 13.6 23.9 36.3 42.3 30.3 34.4
24.6 29.8 30.7 29.9 52.5 76.8 79.9 60.5 59.0 49.1 69.0 74.1
4.5 10.0 10.4
5.9 11.6 18.6 21.7
9.8
1.1 16.0 19.4
8.5
7.3 14.8 16.8
6.3 12.1 27.8 51.6 38.4 - 1 4 . 4 - 2 7 . 6 - 1 . 2 - 1 1 . 8
3.9
4.8 15.1
-.1
.8
4.1
15.2 17.8
6.2 - 5 . 1
.5
17.7
8.3 15.8
4.2
2.5
7.7
8.0 18.5 22.5
8.7
6.8 10.7 13.5
NOTE.—Full statements for sectors and transaction types quarterly, and
annually for flows and for amounts outstanding, may be obtained from
1
2
3
4
5
6
7
8
9
10
11
12
Flow of Funds Section, Division of Research and Statistics, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.
NOVEMBER 1976 • FLOW OF FUNDS
A57
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1975
Transaction category, or sector
1 Total funds advanced in credit markets to nonfinancial sectors
By public agencies and foreign
?. Total net advances
3
U.S. Government securities
Residential mortgages
4
FHLB advances to S&L's
5
6
Totals advanced, by sector
7
Sponsored credit agencies
8
9
10
11 Agency borrowing not included in line 1
1967
1968
1969
1970
1971
1972
1973
1974
1975
HI
1976
H2
HI
81.5
98.3
89.6
94.9 139.6 166.4 190.0 185.0 200.3 173.8 226.9 228.3
12.0
6.9
2.6
-2.5
5.2
13.0
3.3
3.3
.9
5.5
16.5
.5
5.1
4.0
6.9
29.2 43.4
15.1 34.4
6.5
7.0
1.3 - 2 . 7
6.2
4.6
4.7
.6
4.8
2.0
5.2
3.8
3.7
.3
4.0
3.1
9.4
4.2
-.3
9.5
2.8
11.1
5.0
10.3
9.8
5.9
20.0
13.7
13.0
18.0
7
8
9
10
11
69.5
6.3
7.8
16.0
14.4
22.4
-2.5
89.3
14.1
9.5
13.8
17.3
35.5
.9
82.5
5.6
9.9
12.5
17.9
40.7
4.0
75.5 102.1 155.0 175.7 155.3 169.6 135.9 203.4 193.8
6.6 - 3 . 7
16.1 18.7 22.6 75.5 61.0 90.0 64.9
11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 18.4
20.0 19.5 13.1 10.0 20.9 32.8 38.9 26.7 27.3
14.7 31.2 48.1 48.5 26.9 24.4 17.7 31.1 44.3
24.3 35.0 62.3 89.3 71.9 15.7 - 5 . 2 36.5 36.6
*
7.2
- . 6 -2.3
1.3 - 2 . 7
6.7 - 4 . 0 - 7 . 3
12
13
14
15
16
17
18
Private financial intermediation
19 Credit market funds advanced by private financial
institutions
Commercial banks
20
21
Savings institutions
Insurance and pension funds
22
23
63.4
35.8
15.0
12.9
-.3
75.5
38.7
15.4
13.8
7.6
57.4
18.6
14.6
13.3
10.8
77.0 109.7 149.4 163.8 126.2 116.0 97.7 134.3 139.2
35.0 50.6 70.5 86.5 64.6 27.6 13.5 41.7 22.1
17.4 39.1 47.2 36.0 27.0 51.0 49.8 52.2 68.0
17.1 14.2 17.8 23.8 30.1 39.3 36.4 42.3 43.9
5.9 13.8 17.4
7.5
4.5 - 1 . 8 - 1 . 9 - 1 . 8
5.1
19
20
21
22
23
24 Sources offunds
Private domestic deposits
25
Credit market borrowing
26
63.4
49.8
-1.1
75.5
45.9
6.7
57.4
2.3
19.5
77.0 109.7 149.4 163.8 126.2 116.0
60.7 89.4 100.9 86.4 69.4 90.5
1.2
7.6 18.0 35.3 18.9
-
14.7
2.3
.2
11.4
.8
22.9
2.6
-.2
11.4
9.1
35.6 15.1 12.6
9.6 - 8 . 1 - 3 . 9
*
2.9
2.2
10.8 13:3
8.6
7.1
5.7
15.1
7.4
30.5 42.1 37.8 25.4
6.9 14.5 - . 4 - 5 . 7
5.3
.7 - 1 . 0 - 5 . 1 - 1 . 7 - 3 . 5
11.6 18.4 26.0 29.9 27.4
2.4 - 2 . 4 - 1 0 . 8
12.8 17.8
4.9
-1.1
-2.6
4.0
1.8
2.8
20.5
8.6
—. 1
4.2
4.2
3.6
*
44.6 - . 3
17.5 - 7 . 1 - 1 0 . 8
8.2 - 1 . 3
.5
5.4
9.5
8.3
10.0 - 5 . 1 - 1 . 1
3.2
3.6
3.7
23.6
4.2
3.1
4.2
3.0
9.1
47.2
19.4
7.5
.9
12.5
6.9
48.0
17.9
12.2
5.3
4.6
8.1
92.8 105.3
79.1 83.7
7.7
8.7
31.8 29.7
39.6 45.4
90.3
76.2
18.4
29.4
28.4
75.7 96.7 95.7
67.4 84.8 75.0
23.6 - 9 . 7 - 2 2 . 3
21.4 35.4 34.4
22.4 59.2 63.0
13.7
10.4
3.4
14.1
10.2
3.9
12
13
14
15
16
17
18
27
28
29
30
31
Private domestic funds advanced
U.S. Government securities *
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
Less: FHLB advances
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Private domestic nonfinancial
32 Direct lending in credit markets
33
U.S. Government securities
State and local obligations
34
Corporate and foreign bonds
35
Commercial paper
36
Other
37
investors
-
1
2.8
5.2
8.9
26.4
5.9
48.5
5.1
33.7 - 2 . 2
3.5 - 1 3 . 7
17.2
3.1
8.4
13.0
64.2
55.3
15.0
23.6
16.6
13.0
11.0
2.0
14.8
12.3
2.5
7.3
4.5
2.8
8.9
5.4
3.5
46 Total of credit market instr., deposits, and currency.
56.8
69.0
49.8
63.9
Private support rate (in per cent)
Private financial intermediation (in per cent)....
Total foreign funds
14.8
91.2
4.3
13.2
84.6
2.9
18.4 30.7 31.1
69.5 102.0 107.4
9.4
2.2 22.5
43
44
45
47
48
49
Money
Demand deposits
Currency
52.7 44.2 51.9
11.9 22.5 32.6
14.7 16.2 15.9
6.7 - 4 . 0 - 7 . 3
19.5
9.5 10.6
1.8
9.2
.3
8.4
8.4
2.8
21.4
9.2
.7
19.9
9.8
25.6
6.2
11.2
23.1
•
15.1
14.5
8.5
6.1
13.5
1
51.8
38.8
4.3
17.9
16.6
38 Deposits and currency
39
Time and saving accounts
Large negotiable CD's
40
41
Other at commercial banks
42
At savings institutions
5.1
34.2
9.6
8.2
7.2
9.2
19.8
7.6
7.0
21.6
17.2
4.4
8.3
2.0
6.3
53.7
23.0
9.9
10.4
3.1
7.3
11.9
5.7
6.2
36.6 52.6
12.4 26.9
16.5 11.1
- . 6 -2.3
8.3 16.9
14.9 15.2
15.9 13.2
7.0 10.1
14.2 - 2 . 0
14.0 13.1
97.7 134.3 139.2 24
90.3 90.6 90.9 25
*
.3 11.0 26
38.1
5.0
10.3
13.6
3.5
5.6
43.4
5.0
.1
32.5
5.9
37.3
—. 1
3.5
32.7
1.2
69.4
41.0
9.6
7.2
2.7
8.9
65.6 32
29.5 33
7.7 34
6.0 35
10.2 36
12.2 37
18.0
93.2
7.6
28.5
81.2
25.7
22.1
68.4
5.7
27
28
29
30
31
97.7 95.1 38
94.7 82.3 39
2.9 - 2 3 . 5 40
36.4 39.9 41
55.4 66.0 42
3.0
20.7
15.3 - 4 . 0
5.4
7.1
12.7 43
8.5 44
4.2 45
92.9 129.0 137.5 123.7 150.4 133.8 167.1 160.7
11.9
96.4
13.7
1
2
3
4
5
6
46
23.0 47
71.8 48
13.0 49
29.9
71.9
8.5
16.1
66.0
3.0
11.7
1.5
10.2
9.2
2.4
10.8 14.3
. 1 -1.1
10.7 15.4
7.4 11.7
3.4
2.6
Corporate equities not included above
1 Total net issues
2
Mutual fund shares
3
Other equities
4 Acquisitions by financial institutions
5 Other net purchases
5.6
6.5 10.1
4.9
3.0
5.9
5.2
2.5
.6
9.1 10.9 13.0
-3.5 -4.4 -2.9
Notes
Line
1. Line 2 of p. A-56.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by Federally sponsored credit agencies.
Included below in lines 13 and 33. Includes all GNMA-guaranteed
security issues backed by mortgage pools.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Lines 39 plus 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
10.5
2.8
7.7
10.6
" -
1
15.0 13.3
9.2
1.3 - . 5 - 1 . 2
13.7 13.8 10.4
17.8 15.3 13.3
-2.9 -2.1 -4.1
4.9
-.5
5.4
5.5
-.7
11.2
.8
10.4
8.3
2.9
1
2
3
4
5
29. 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 line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Lines 1 and 3. Includes issues by financial institutions.
A58
U.S. INTERNATIONAL TRANSACTIONS • NOVEMBER 1976
1. U.S. INTERNATIONAL TRANSACTIONS—SUMMARY
(In millions of dollars. Quarterly figures are seasonally adjusted except as noted.1)
1976
1975
1973
Credits ( + ) , debits ( - )
Line
1974
1975
Merchandise exports
Merchandise imports
Merchandise trade balance 2.
Military transactions, net
Investment income, net
Other service transactions, net.
8
9
10
Unilateral transfers
Remittances, pensions, and other transfers . .
U.S. Government grants (excluding military).
11
Balance on current account.
Not seasonally adjusted. .
13
U.S. Govt, capital transactions, other than official reserve assets,
net (outflow,—)
12
71,410 98,310 107,088
70,499 103,679 98,058
9,030
911 - 5 , 3 6 9
25,851
22,568
3,283
26,562
24,483
2,079
27,657
25,437
2,220
26,836
28,510
-1,674
28,450
29,735
-1,285
-883
6,007
2,163
-378
1,531
648
-115
1,682
619
12
1,670
455
-5
2,279
458
-13
2,157
715
-2,287 -2,083
5,178 10,227
812
102
3,586
16,316
5,084
4,265
4,357
1,058
1,574
-7,185
-1,710
-5,475
-4,620
-1,727
-2,893
-1,146
-434
-712
-1,044
-429
-615
-1,251
-433
-818
-1,118
-483
-635
-872
-441
-431
22 - 3 , 5 9 8
11,697
3,938
3,934
3,221
513
3,106
4,305
1,479
-60
702
625
1,089
-1,731
-422
-401
-453
798
-234
-342
89
-773
-1,578
-57
167
-45
-237
-491
14
-798
-794
-3,297 -10,375
-617 -5,348
-943
-608
- 9 -4,405
-972
-972
-379
-139
-593
-833
-938 -2,361
-770 -1,694
-8,615
-3,582
-250
-3,332
-751
-187
-564
-2,525
-1,757
-6,228
-4,665
-338
-4,327
-579
233
3,905
Balance on goods and services •
IIP
IV
III
-3,883
-1,945
-1,938
-1,492
-1,434
-607
-29
-172
9
- 3 3 -1,265
3
233
-66
-16
209
18
Change in U.S. official reserve assets (increase,—).
Gold.
SDR's
Reserve position in IMF.
Foreign currencies
19
20
21
22
23
24
25
26
27
Change in U.S. private assets abroad (increase,—)...
Bank-reported claims
Long-term
Short-term
Nonbank-reported claims
Long-term
Short-term
U.S. purchase of foreign securities, net
U.S. direct investments abroad, net
28
29
30
31
32
Change in foreign official assets in the United States (increase,+).
U.S. Treasury securities
Other U.S. Govt, obligations
Other U.S. liabilities reported by U.S. banks
Other foreign official assets
5,145
114
582
4,126
323
33
34
35
36
37
38
39
40
41
42
Change in foreign private assets in the United States (increase,+).
U.S. bank-reported liabilities
Long-term
Short-term
U.S. nonbank-reported liabilities
Long-term
Short-term
Foreign private purchases of U.S. Treasury securities, n e t . . . .
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net
12,220
4,702
227
4,475
1,035
298
737
-214
4,041
2,656
21,452
16,017
9
16,008
1,615
1,827
697
378
2,745
8,427
647
-300
947
171
345
-174
2,667
2,505
2,437
43
44
45
46
Allocations of SDR's
Discrepancy
Owing to seasonal adjustments
Statistical discrepancy in recorded data before seasonal
adjustment
-2,107
4,557
4,570
98
-39
-1,517
-2,561
2,258
1,275
4,736
1,348
-108
-2,107
4,557
4,570
137
1,044
983
3,388
1,087
209
5,145
-1,434
10,257
-607
5,166
-29
1,913
-342
-1,977
89
2,272
-773
2,460
-1,578
3,162
2,809
1,817
2,232
1,202
56
177
50
95
14
15
16
17
-466
-75
-7
-25
-95
- 6
-222
-13,998 -32,323 -27,523
- 5 , 9 8 0 -19,494 -13,487
-933 -1,183 -2,373
- 5 , 0 4 7 -18,311 -11,114
-2,378 -3,221 -1,521
-441
-474
-396
-1,982 -2,747 -1,081
-671 -1,854 -6,206
-4.968 -7,753 -6,307
-7,074
-3,820
-381
-3,439
59
55
4
-979
-2,334
10,257
5,166
3,282
4,338
902
891
5,818 - 2 , 1 5 8
254
2,095
1,913
818
65
591
439
-1,977
-2,847
25
320
525
2,272
1,069
307
134
762
2,460
1,998
68
-275
669
3,162
2,151
316
4
691
1,576
776
-287
1,063
58
77
-19
-423
385
780
4,313
1,639
-114
1,753
-141
-99
-42
2,125
738
-48
3,103
691
146
545
10
-78
213
1,038
1,229
1,454
675
-91
766
24
-332
356
453
1,030
-728
3,197
3,586
23
3,563
-479
-308
-171
-586
130
547
Memoranda:
Changes in official assets:
U.S. official reserve assets (increase,—)
Foreign official assets in the U.S. (increase,-}-)
Transfers under military grant programs (excluded from lines
1, 4, and 10 above)
1 Seasonal factors are no longer calculated for capital transactions—
lines 14 through 49.
2 Adjusted to a balance of payments basis; among other adjustments,
excludes military transactions and includes imports into the Virgin
Islands.
3 Differs from the definition of "net exports of goods and services" in
the national income and product (GNP) account. The GNP definition
-212
-21
-68
-812
-1,448
463
979
excludes special military sales from exports and U.S. Govt, interest payments from imports.
NOTE.—Data are from U.S. Dept. of Commerce, Bureau of Economic
Analysis, Survey of Current Business. A detailed description of items in
this revised format of U.S. International Transactions will appear in a
future issue of the BULLETIN.
NOVEMBER 1976 • FOREIGN TRADE; U.S. RESERVE ASSETS
A59
2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions of dollars)
Exports
]
1976
6,498
7,318
7,742
8,025
8,265
8,577
8,922
9,267
8,696
8,773
8,973
9,257
9,633
7,927
7,467
7,959
7,263
7,103
7,832
7,877
8,196
8,169
9,176
8,941
9,607
9,596
9,182
10,094
10,849
10,446
10,651
16,140
16,839
17,483
18,972
21,558
24,867
26,885
27,003
25,026
22,325
23,904
24,892
69,476
100,251
96,116
1974
1975
1976
1973
4,955
5,070
5,311
5,494
5,561
5,728
5,865
6,042
6,420
6,585
6,879
6,949
7,150
7,549
7,625
7,652
8,317
8,307
8,379
8,399
8,673
8,973
8,862
9,374
8,756
8,681
8,649
8,222
8,716
8,871
8,980
9,104
9,226
9,409
9,250
9,103
8,800
8,956
9,394
9,578
9,716
10,022
9,688
9,872
5,244
5,483
5,414
5,360
5,703
5,775
5,829
6,011
5,644
5,996
6,684
6,291
15,336
16,783
18,327
20,413
22,325
24,077
25,085
26,508
26,811
26,859
II....
III...
IV...
25,586
26,955
27,885
29,582
Year 4..
70,823
97,908
107,130
Quarter
I.. ..
8,108
28,688
19743
1975
1973
Month:
Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct..
Nov..
Dec..
Trade balance
Imports 2
1 Exports of domestic and foreign merchandise (f.a.s. value basis);
excludes Department of Defense shipments under military grant-aid
programs.
2 General imports, which includes imports for immediate consumption
plus entries into bonded warehouses. See also note 3.
3 Beginning with 1974 data, imports are reported on an f.a.s. transactions value basis; prior data are reported on a Customs import value
8,201
8,522
27,723
28,872
31,946
1973
19743
-289
-413
-103
+ 133
-142
-47
+37
+32
+776
+589
+ 195
+658
+652
+231
-117
+83
1975
1976
-73
-141
-651
+396
-377
-827
-758
-779
-395
-259
+829
+1,215
+690
+958
+1,613
+1,039
+ 1,103
+908
+ 1,056
+1,208
+728
-804
-56
+844
+ 1,441
+767
-790
-1,800
-495
+1,785
+3,261
+3,051
+2,993
-864
-184
-2,364
+1,347
-2,343
11,014
-612
-260
-615
-888
-297
-100
-202
basis. For calendar year 1974, the f.a.s. import transactions value was
$100.3 billion, about 0.7 per cent less than the corresponding Customs
import
value of $101.0 billion.
4
Sum of unadjusted figures.
NOTE.—Bureau of the Census data. Details may not add to totals because of rounding.
3. U.S. RESERVE ASSETS
(In millions of dollars)
Gold stock 1
Gold stock
Total 2
Treasury
Convertible
foreign
currencies
18,753
17,220
16,843
16,672
16,947
16,057
15,596
15,471
16,889
15,978
15,513
15,388
116
99
212
432
1,690
1,064
1,035
769
1975—
Oct
Nov
Dec..
15,450
1965...
14,882
1966...
14,830
1967...
15,710
1968...
1 9 6 9 . . . 416,964
13,806
13,235
12,065
10,892
11,859
13,733
13,159
11,982
10,367
10,367
781
1,321
2,345
3,528
42,781
863
326
420
1,290
2,324
14,487
1970...
1 9 7 1 . . . 512,167
13,151
1972«. .
14,378
19737. .
1974. . . 15,883
11,072
10,206
10,487
11,652
11,652
10,732
10,132
10,410
11,567
11,652
629
5 276
241
8
5
1,935
585
465
552
1,852
End of
year
Total
1961...
1962...
1963...
1964...
Reserve
position
in
IMF
SDR's 3
851
1,100
1,958
2,166
2,374
1
Includes (a) gold sold to the United States by the IMF with the right
of repurchase, and (b) gold deposited by the IMF to mitigate the impact
on the U.S. gold stock of foreign purchases for the purpose of making
gold subscriptions to the IMF under quota increases. For corresponding
liabilities, see Table 5.
2 Includes gold in Exchange Stabilization Fund.
3 Includes allocations by the IMF of Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SDR's.
4 Includes gain of $67 million resulting from revaluation of the German
mark in Oct. 1969, of which $13 million represents gain on mark holdings
at time of revaluation.
5 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect market exchange rates as of Dec. 31, 1971.
6 Total reserve assets include an increase of $1,016 million resulting
from change in par value of the U.S. dollar on May 8, 1972; of which,
End of
month
Total
Convertible
foreign
currencies
Reserve
position
in
IMF
SDR's 3
Total 2
Treasury
16,569
16,592
16,226
11,599
11,599
11,599
11,599
11,599
11,599
413
423
80
2,192
2,234
2,212
2,365
2,336
2,335
1976—
16,622
Jan
16,661
Feb
16,941
Mar
17,437
Apr
May. . . . 17,958
18,477
June
18,246
July....
18,586
Aug
18,945
Sept
819,013
Oct
11,599
11,599
11,599
11,598
11,598
11,598
11,598
11,598
11,598
11,598
11,599
11,599
11,599
11,598
11,598
11,598
11,598
11,598
11,598
11,598
333
296
571
936
938
1,365
864
845
1,038
1,066
2,314
2,390
2,420
2,578
3,113
3,198
3,466
3,818
3,952
8 3,997
2,376
2,376
2,351
2,325
2,309
2,316
2,318
2,325
2,357
82,352
total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IMF $33 million, and SDR's $155 million.
7 Total reserve assets include an increase of $1,436 million resulting
from change in par value of the U.S. dollar on Oct. 18, 1973; of which,
total gold stock is $1,165 million (Treas. gold stock $1,157 million),
reserve position in IMF $54 million, and SDR's $217 million.
8 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 are also valued on this basis beginning July 1974. At valuation used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end
of October amounted to $2,453 million, reserve position in IMF, $4,087
million, and total U.S. reserves assets, $19,204.
NOTE.—See Table 20 for gold held under earmark at F.R. Banks for
foreign and international accounts. Gold under earmark is not included
in the gold stock of the United States.
A60
GOLD RESERVES • NOVEMBER 1976
4. GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
End of
period
1970.
1971.
1972.
1973.
1974.
1975—Oct..
Nov.,
Dec..
1976—Jan....
Feb....
Mar.. .
Apr.. .
May. .
June..
July...
Aug.. .
Sept.?.
End of
period
Estimated
total 1
world
Intl.
Monetary
Fund
United
States
41,275
41,160
44,890
49,850
49,800
4,339
4,732
5,830
6,478
6,478
11,072
49,740
6,478
6,478
6,478
11,599
11,599
11,599
6,478
6,478
6,478
6,478
6,478
6,448
6,412
6,412
6,379
11,599
11,599
11,599
11,598
11,598
11,598
11,598
11 ,598
11,598
Germany
Greece
49,490
49,565
France
10,206
10,487
11,652
11,652
Estimated
rest of
world
Algeria
Argentina
25,865
26,220
28,575
31,720
31,670
191
192
208
231
231
140
90
152
169
169
239
259
31,665
231
231
231
169
169
169
312
312
312
231
231
231
231
231
231
231
231
231
169
169
169
169
169
169
169
312
312
312
312
312
312
312
312
312
31,415
3i'520
India
Iran
Iraq
Australia
281
312
312
Italy
Austria
707
729
791
881
China,
Rep. of
(Taiwan)
Denmark
Egypt
791
792
834
927
927
87
97
97
65
64
69
77
76
85
85
92
103
103
1,781
1,781
1,781
927
927
927
97
97
97
76
76
76
103
103
103
927
927
916
916
916
916
916
916
913
97
97
94
94
94
98
98
98
76
76
76
76
76
76
76
76
76
103
103
103
103
103
103
882
1,781
1,781
1,781
1,781
1,781
1,781
1,781
1,781
1,781
Japan
Kuwait
Mexi-
Netherlands
86
87
94
882
882
882
882
882
882
882
882
882
882
882
882
3,532
3,523
3,826
4.261
4.262
3,980
4,077
4,459
4,966
4,966
117
98
133
148
152
243
243
264
293
293
131
131
142
159
158
144
144
156
173
173
2,887
2,884
3,130
3,483
3,483
532
679
80:
89
89
1975—Oct...
Nov..
Dec...
4,262
4,262
4,262
4,966
4,966
4,966
153
153
153
293
293
293
158
158
158
173
173
173
3,483
3,483
3,483
89
89
89
1976—Jan...
Feb..,
Mar..
Apr..
May. ,
June.,
July..
Aug..2
Sept. '
4,262
4,262
4,262
4,262
4.262
4.263
4,266
4,266
4,266
4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966
153
153
153
153
153
153
154
154
154
293
293
293
293
293
293
293
158
158
158
158
158
158
158
158
158
173
173
173
173
173
173
173
173
3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483
Portugal
Saudi
Arabia
South
Africa
Spain
Sweden Switzerland
Pakistan
Canada
1,470
1,544
1,638
1,781
1,781
197 0
197 1
197 2
197 3
197 4
End of
period
Belgium
Lebanon
82
80
Libya
288
322
350
388
389
85
85
93
103
103
176
184
188
196
154
1,787
1,909
2,059
2,294
2,294
160
160
389
389
389
103
103
103
154
154
154
2,294
2,294
2,294
89
89
89
89
89
89
89
89
89
169
176
176
183
214
192
192
192
192
389
103
103
103
103
103
103
103
103
103
152
152
152
2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294
Thailand
Turkey
United
Kingdom
120
148
169
Uruguay
Venezuela
Bank
for Intl.
Settlements 2
1970
1971
1972
1973
1974
54
55
60
67
67
902
921
1,021
1,163
1,175
119
108
117
129
129
666
410
681
802
771
498
498
541
602
602
200
200
217
244
244
2,732
2,909
3,158
3,513
3,513
82
82
89
99
99
126
130
136
151
151
1,348
777
801
887
888
162
148
133
148
148
384
391
425
472
472
-282
310
218
235
250
1975—Oct
Nov
Dec
67
67
67
1,175
1,175
1,170
129
129
129
754
752
749
602
602
602
244
244
244
3,513
3,513
3,513
99
99
99
151
151
151
888
888
888
135
135
135
472
472
472
256
259
246
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept.®
67
67
67
69
69
69
69
69
69
1,170
1,170
1,170
1,170
1,170
1,170
129
129
129
129
129
129
129
129
129
753
749
3543
539
538
540
540
544
541
602
602
602
602
602
602
602
602
244
244
244
244
244
244
244
244
244
3,513
3,513
3,513
3,513
3,513
3,514
3,514
3,516
3,516
99
99
99
99
99
99
99
99
99
151
151
151
151
151
151
151
151
151
888
888
888
888
888
888
135
135
135
135
135
135
135
472
472
472
472
472
472
472
472
472
213
205
206
231
245
290
298
308
280
1 Includes reported or estimated gold holdings of international and
regional organizations, central banks and govts, of countries listed in
this table, and also of a number not shown separately here, and gold to be
distributed by the Tripartite Commission for the Restitution of Monetary
Gold; excludes holdings of the U.S.S.R., other Eastern European countries, and People's Republic of China.
The figures included for the Bank for International Settlements are
the Bank's gold assets net of gold deposit liabilities. This procedure
avoids the overstatement of total world gold reserves since most of the
gold deposited with the BIS is included in the gold reserves of individual
countries.
23 Net gold assets of BIS, i.e., gold assets minus gold deposit liabilities.
Reflects South African Reserve Bank sale of gold spot and repurchase
forward.
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A61
5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
Liquid
liabilities to
IMF
arising
from
gold
transactions 1
29,364
800
Official institutions2
Total
Shortterm
liabilities reported
by
banks
in
U.S.
Marketable
U.S.
Treas.
bonds
and
notes 3
Liquid liabilities to other
foreigners
Nonmarketable U.S.
Treas.
bonds
and
notes 4
Other
readily
marketable
liabilities5
Liquid
liabilities
to commercial
banks
abroad6
Total
Shortterm
liabilities reported
by
banks
in
U.S.
Marketable
U.S.
Treas.
bonds
and
notes 3,7
Liquid
liabilities to
nonmonetary
intl.
and regional
organizations 8
15,786
13,220
1,125
1,283
158
7,303
3,753
3,377
376
1,722
1,105
1,534
120
7,419
4,059
3,587
472
1,431
29,568
834
15,825
13,066
(31,144
[31,019
1,011
1,011
14,840
14,895
12,484
12,539
860
860
583
583
913
913
10,116
9,936
4.271
4.272
3.743
3.744
528
528
906
905
J35,819
\35,667
1,033
1,033
18,201
18,194
14,034
14,027
908
908
1,452
1,452
1,807
1,807
11,209
11,085
4,685
4,678
4,127
4,120
558
558
691
677
J38,687
\38,473
1,030
1,030
17,407
17,340
11,318
11,318
529
462
3,219
3,219
2,341
2,341
14,472
14,472
5,053
4,909
4,444
4,444
609
465
725
722
•0/45,755
145,914
1,109
1,019
1015,975
15,998
11,054
11,077
346
346
10 3,070
3,070
1,505
1,505
23,638
23,645
4,464
4,589
3,939
4,064
525
525
659
663
J47,009
146,960
566
566
23,786
23,775
19,333
19,333
306
295
3,452
3,452
695
695
17,137
17,169
4,676
4,604
4,029
4,039
647
565
844
846
J67,681
167,808
544
544
51,209
50,651
39,679
39,018
1,955
1,955
9,431
9,534
144
144
10,262
10,949
4,138
4,141
3,691
3,694
447
447
1,528
1,523
61,526
40,000
5,236
15,747
543
14,666
5,043
4,618
425
1,627
5,932
5,502
430
2,003
82,862
2
92,490
66,861
1243,923
5,701
i 15,564
1,673
17,694
fll9,240
119,204
76,801
76,823
53,057
53,079
5,059
5,059
16,339
16,339
2,346
2,346
30,314
30,146
8,803
8,913
8,305
8,415
498
498
3,322
3,322
123,944
127,204
127,204
126,589
78,762
80,676
80,198
80,650
48,594
50,111
49,634
49,513
6,472
6,644
6,485
6,640
19,666
19,666
19,726
19,976
4,030
4,255
4,353
4,521
30,360
28,527
32,266
29,556
9,854
9,971
10,200
10,759
9,153
9,232
9,490
10,028
701
739
710
731
4,968
4,921
4,540
5,624
128,192
131,837
129,720
136,709
139,121
135,229
139,163
138,754
141,096
81,198
82,326
82,561
84,205
85,630
85,129
85,866
86,678
86,016
49,487
50,429
49,634
50,538
51,606
50,023
50,474
51,242
49,651
6,851
7,027
7,757
8,187
8,450
9,167
9,461
9,781
10,746
20,051
20,051
20,051
20,151
20,151
20,251
20,151
19,801
19,803
4,809
4,819
5,119
5,329
5,423
5,688
5,780
5,854
5,816
30,964
33,149
30,512
35,256
36,476
32,654
34,743
32,828
34,941
10,504
10,808
10,922
11,579
11,361
11,504
11,821
12,203
12,398
9,766
10,060
10,118
10,758
10,557
10,646
10,932
11,238
11,473
738
748
804
821
804
858
889
965
925
5,526
5,554
5,725
5,669
5,654
5,942
6,733
7,045
7,741
1 Includes (a) liability on gold deposited by the IMF to mitigate the
impact on the U.S. gold stock of foreign purchases for gold subscriptions
to the IMF under quota increases, and (b) U.S. Treasury obligations at
cost value and funds awaiting investment obtained from proceeds of sales
of 2gold by the IMF to the United States to acquire income-earning assets.
Includes Bank for International Settlements; also includes European
Fund through Dec. 1972.
3 Derived by applying reported transactions to benchmark data.
4
Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally sponsored agencies and U.S. corporations.
6 Includes short-term liabilities payable in dollars to commercial banks
abroad and short-term liabilities payable in foreign currencies to commercial banks abroad and to other foreigners.
1 Includes marketable U.S. Treasury bonds and notes held by commercial banks abroad.
8 Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks.
9 Data on the 2 lines shown for this date differ because of changes
in reporting coverage. Figures on first line are comparable with those
shown for the preceding date; figures on second line are comparable with
those shown for the following date.
10 includes $101 million increase in dollar value of foreign currency
liabilities
resulting from revaluation of the German mark in Oct. 1969.
1
1 Data on the second line differ from those on first line because certain accounts previously classified as official institutions are included
with banks; a number of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions of foreign countries have been increased in
value
to reflect market exchange rates as of Dec. 31, 1971.
12
Includes $162 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates, as follows: shortterm liabilities, $15 million; and nonmarketable U.S. Treasury notes,
$147 million.
NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks and brokers in the United States. Table excludes
IMF holdings of dollars, and U.S. Treasury letters of credit and nonnegotiable, non-interest-bearing special U.S. notes held by other international and regional organizations.
A62
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions of dollars)
Total
foreign
countries
Western1
Europe
61,526
66,861
34,197
45,764
4,279
3,853
1,733
2,544
17,577
10,887
777
788
2,963
3,025
1974—Dec. 3
J76,801
\76,823
44,328
44,328
3,662
3.662
4,419
4,419
18,604
18,626
3,161
3,161
2,627
2,627
1975—Sept...
Oct...
Nov...
Dec...
78,762
80,676
80,198
80,650
43,858
45,354
45,095
45,676
3,003
3,044
3,218
3,132
4,840
4,254
4,056
4,448
21,153
22,406
22,263
22,514
3,145
3,018
2,951
2,983
2,763
2,600
2,615
1.897
1976—Jan.. .
Feb...
Mar...
Apr...
May..
June..
July..
Aug.P.
Sept.*.
81,198
82,326
82,561
84,205
85,630
85,130
85,866
86,678
45,741
45,091
45,583
43,581
43,247
42,425
42,308
41,494
41,545
3.416
3,645
3.663
3,600
3,590
3,578
3,410
3,230
3.417
3,552
3.377
3,779
3,850
3,827
4,104
4,000
4.378
4,289
23,780
25,462
26,911
28,596
30,047
29,879
30,949
32,582
32,382
2,724
2,731
2,718
2,805
3,141
3,245
3,134
3,098
2,759
1,985
2,020
1,907
1,773
1,777
1.898
2,065
1,896
1,624
End of period
1972
197 3
86,016
1
Includes Bank for International Settlements; also includes European
Fund
through 1972.
2
Includes countries in Oceania and Eastern Europe, and Western European dependencies in Latin America.
3 See note 9 to Table 5.
Canada
Latin
American
republics
Asia
Africa
Other
countries2
institutions of foreign countries, as reported by banks in the United States;
foreign official holdings of marketable and nonmarketable U.S. Treasury
securities with an original maturity of more than 1 year, except for nonmarketable notes issued to foreign official nonreserve agencies; and investments by foreign official reserve agencies in debt securities of U.S.
Federally sponsored agencies and U.S. corporations.
NOTE.—Data represent short- and long-term liabilities to the official
7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonmonetary international
and regional organizations 5
To all foreigners
Payable in dollars
End of period
Deposits
Total i
Total
Time 2
Other
shortterm
liab.4
IMF
gold
investment
Deposits
Total
Demand
Time 2
U.S.
Treasury
bills and
certificates
60,696
69,074
94,811
60,200
68,477
94,044
8,290
11,310
14,051
5,603
6,882
9,932
31,850
31,886
35,662
14,457
18,399
34,399
496
597
766
1,412
1,955
3,171
101
139
202
83
111
326
296
497
93,008
92,453
95,861
94,390
92,454
91,818
95,221
93,833
13,402
10,170
10,259
10,076
10,348
36,653
37,728
37,268
37,414
32,230
31,702
35,068
32,506
554
635
637
549
4,901
4,583
4,471
5,293
107
132
145
139
127
150
156
148
3,008
2,397
1,605
2,554
95,151 94,542
98,159 97,505
95,033 94,462
102,070 101,303
104,151 103,419
98,688 97,997
101,820 101,147
100,957 100,288
102,031 101,329
12,271
13,350
13,091
14,244
13,846
14,135
14,714
14,198
15,219
10,483
10,222
10,488
10,235
10,104
9,973
10,259
38,789
39,763
37,977
39,430
40,258
38,257
39,632
40,964
40,119
32,998
34,169
32,907
37,394
39,211
35,632
36,541
34,914
35,365
600
4,933
4,520
4,768
5,519
5,512
5,360
5,671
5,641
5,962
114
118
130
140
91
258
483
379
331
217
162
192
193
185
160
192
148
151
2,498
2,435
2,495
2,739
2,876
2,236
3,129
3,475
4,031
For notes see opposite page.
Demand
U.S.
Treasury
bills and
certificates 3
Payable
in
foreign
currencies
12,128
12,810
13,564
10,212
10,626
642
565
763
727
687
667
661
697
86
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A63
SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE—Continued
(Amounts outstanding; in millions of dollars)
To official institutions 8
Total to official, banks and other foreigners
Payable in dollars
Payable in dollars
Total
Deposits
Demand
Time 2
U.S.
Treasury
bills and
certifi-3
cates
Other
shortterm
liab.4
Payable
in
foreign
currencies
Total
Deposits
Demand
Time 2
U.S.
Treasury
bills and
certificates 3
Other
shortterm
liab.«
67,119
11,209
6,799
31,590
16,925
597
43,923
2,125
3,911
31,511
6,248
J91,676
\91,640
13,928
13,912
9,995
9,821
35,165
35,165
31,822
31,975
766
766
53,057
53,079
2,951
2,951
4,257
4,167
34,656
34,656
11,066
48,594
50,111
49,634
49,513
2.444
2,448
2,242
2,644
3,886
3,877
3,579
3,423
33,339
35,004
35,242
34,182
8,925
8,782
8,571
9,264
49,487
50,429
49,634
50,538
51,606
50,023
50,474
51,242
49,651
2.445
2,695
2,671
2,782
2,799
2,632
2,932
2,380
2,548
3,291
2,908
2,767
2,319
2,400
2,392
2,251
2,226
2,144
35,645
36,761
34,989
36,196
36,859
35,532
36,016
36,974
35,653
8,066
9,207
9,241
9,547
9,468
9,275
9,663
9,307
88,107
87,870
91,390
89,097
13,295
11,996
12,665
13,426
10,043
10,109
9,920
10,200
33,645
35,330
35,663
34,860
30,571
29,800
32,506
30,063
554
635
637
549
90,217
93,638
90,264
96,551
98,638
93,323
96,149
95,308
96,065
12,158
13,233
12,962
14,104
13,755
13,877
14,231
13,819
14,888
10,266
10,060
10,296
10,042
9,919
9,813
10,067
10,064
10,476
36,291
37,328
35,482
36,691
37,382
30,903
32,376
30,959
34,951
36,855
32,925
34,680
33,275
33,916
600
642
565
763
727
687
667
661
697
36,021
36,504
37,489
36,088
11,178
8,106
To other foreigners
To banks9
Payable in dollars
Total
Deposits
Total
23,196
17,224
Demand
Time 2
U.S.
Treasury
bills and
certificates
Other
shortterm
liab.4
Deposits
Total
Demand
Time 2
U.S.
Treasury
bills and
certificates
Other
shortterm
liab.6
6,941
529
9,743
5,502
2,143
2,359
68
933
232
232
19,254
19,134
8,304
8,414
2,729
2,729
3.796
3,744
277
277
1,502
1,664
/38,619
\38,560
29,676
29,507
8,248
8,231
1,942
1,910
39,513
37,759
41,756
39,584
29,806
27,891
31,630
29,006
7,962
6,780
7,584
7,534
1,656
1,565
1,544
1,942
89
100
135
335
20,099
19,446
22,367
19,195
9,153
9,232
9,490
10,029
2,889
2,769
2,839
3,248
4,501
4,666
4.797
4,835
217
226
287
342
1,547
1,572
1,568
1,604
40,730
43,209
40,630
46,014
47,033
43,300
45,675
44,066
46,413
30,364
32,507
29,947
34,493
35,749
31,967
34,076
32,167
34,244
6,809
7,418
7,248
7,883
7,737
1,979
2,036
2,268
2,317
2,092
21,208
9,766
10,060
7,992
7,934
8,667
2,275
2,206
2,551
369
275
217
134
151
154
155
162
176
2,904
3,120
3,044
3,439
3,219
3,146
3,307
3,505
3,674
4,996
5,116
5,261
5,406
5,427
5,539
5,541
5,632
5,780
277
293
276
361
372
335
333
353
259
1,588
1,532
1,538
1,551
1,538
1,626
1,751
1,747
1,759
8,100
1,882
1 Data exclude IMF holdings of dollars.
2
Excludes negotiable time certificates of deposit, which are included
in 3"Other short-term liabilities."
Includes nonmarketable certificates of indebtedness and Treasury
bills issued to official institutions of foreign countries.
4 Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches, bankers' acceptances, commercial paper, and negotiable
time certificates of deposit.
5 Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks.
6 Principally bankers' acceptances, commercial paper, and negotiable
time certificates of deposit.
7 Data on the 2 lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
22,777
20,215
24,160
25,769
21,831
23,654
21,865
22,850
10,118
10,757
10,557
10,647
10,932
11,238
11,472
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
8 Foreign central banks and foreign central govts, and their agencies,
Bank for International Settlements, and European Fund through Dec.
1972.
9 Excludes central banks, which are included in "Official institutions."
NOTE.—"Short term" obligations are those payable on demand or having
an original maturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 9. Data exclude International Monetary Fund
holdings of dollars; these obligations to the IMF constitute contingent
liabilities, since they represent essentially the amount of dollars available
for drawings from the IMF by other member countries. Data exclude also
U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing
special U.S. notes held by the Inter-American Development Bank and
the International Development Association.
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
A64
SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1974
1975
1976
Dec. 1
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
577
2,213
649
403
4,529
5,206
299
1,418
3,111
797
189
392
2,437
9,129
101
7,096
174
2,250
45
153
549
2,336
452
405
4,776
4,932
346
1,560
2,256
807
196
446
2,435
10,125
95
6,430
Area and country
Europe:
Austria
Belgium-Luxembourg
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe2
U.S.S.R
Other Eastern Europe
Total
Canada
Latin America:
Argentina
Bahamas
Brazil
Chile
Colombia
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
Netherlands Antilles and
Surinam
Other Latin America
Total
Asia:
China, People's Rep. of
(China Mainland)
China, Republic of (Taiwan).,
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East
oil-exporting
countries 3
Other
Total
Africa:
Egypt
South Africa
Oil-exporting countries
Other
4
....,
Total
Other countries:
Australia
All other
Total
Total foreign countries
International and regional:
International 5
Latin American regional
Other regional 6
Total
Grand total
For notes see opposite page.
607
2,506
369
266
4,287
9,420
248
2,617
3,234
1,040
310
382
1,138
9,986
152
7,559
183
4,073
82
206
607
2,506
369
266
4,287
9,429
248
2,617
3,234
1,040
310
382
1,138
10,139
152
7,584
183
4,073
82
206
754
2,898
332
391
7,733
4,357
284
1,112
3,411
996
195
426
2,286
8,514
118
6,886
126
2,970
40
200
749
2,678
375
309
7,499
3,823
263
1,052
3,409
888
243
445
2,266
8,611
88
7,606
83
2,313
45
160
715
2,440
434
313
6,480
4,468
340
1,044
3,828
925
221
400
2,312
8,648
104
8,231
178
2,116
43
201
581
2,395
678
334
6,210
4,195
261
1,338
3,397
798
209
386
2,287
8,854
6,726
222
2,144
38
159
585
2,332
681
350
4,856
5,830
289
1,504
3,281
915
213
462
2,352
8,965
113
6,589
179
2,002
34
161
48,667
48,853
44,028
42,906
43,441
41,320
41,692
3,517
3,520
3,076
3,885
4,721
4,126
4,173
886
1,448
1,034
276
305
1,770
488
272
147
3,413
886
1,054
1,034
276
305
1,770
510
272
165
3,413
1,147
1,827
1,227
317
417
2,078
1,099
244
172
3,289
1,208
3.190
1.191
248
484
1,899
1,145
219
185
2,711
1.134
2,940
1.135
248
536
2,048
953
223
204
2,571
1,169
1,715
1,320
273
516
2,004
779
235
242
2,574
1,316
1,316
1,500
1,437
1,456
158
526
158
596
129
1,507
129
1,620
142
2,448
12,038
11,754
14,954
15,665
50
818
530
261
1,221
386
10,897
384
747
333
50
818
530
261
1,221
389
10,931
384
747
333
123
1,025
623
4,633
813
July
Aug.?
412
1,976
440
435
4,214
4,738
350
2,641
2,189
684
257
419
2,227
9,250
2,079
40
188
589
1,977
322
446
4,408
4,961
361
2,263
2,182
900
250
416
2,384
9,551
80
6,289
128
2,150
35
209
41,168
40,587
39,899
38,990
4,997
3,789
3,995
3,8<
1,238
4,600
1,475
310
582
2,133
961
219
216
2,742
1,368
5,162
1,176
367
629
2,218
1,098
230
215
2,757
1,398
2,905
1,271
369
686
2,158
1,207
221
229
2,643
1,407
4,838
1,308
301
762
2,110
1,050
235
219
2,747
1,510
3,006
303
772
2,301
1,387
239
226
3,092
1,640
1,713
1,671
1,836
1,796
1,710
119
1,735
121
2,530
125
1,881
129
1,533
135
2,057
149
1,723
16,037
14,322
18,839
18,897
16,593
18,964
17,619
369
386
10,218
390
698
252
263
1,015
667
203
762
325
10,556
395
601
279
224
1,072
682
324
583
312
11,764
382
616
224
101
1,100
741
338
498
346
12,265
361
605
225
120
1,134
709
423
920
323
12,789
360
525
244
139
1,130
803
632
1,121
324
13,246
327
593
218
63
1,182
747
845
706
316
12,847
343
742
261
42
1,070
788
938
1,122
298
13,631
346
636
244
45
1,131
842
1,047
1,002
324
14,194
369
653
249
4,623
845
6,461
867
6,444
969
6,993
933
7,723
967
8,008
1,017
8,543
984
7,290
1,250
7,286
1,122
8,102
1,376
21,073
21,130
21,539
22,480
24,109
25,271
26,570
28,061
26,591
27,522
29,335
103
130
2,814
504
103
130
2,814
504
343
169
2,239
623
177
218
2,135
562
314
133
2,208
609
1,919
680
231
177
2,256
598
197
202
2,423
651
161
2,567
652
236
123
2,443
672
200
164
2,368
736
3,551
3,551
3,373
3,091
3,131
3,099
3,262
3,472
3,591
3,473
3,469
2,742
89
2,742
89
2,014
114
2,046
143
2,070
131
2,001
125
1,931
1,950
93
2,066
107
2,185
111
1,964
122
126
180
106
186
182
211
100
6,139
142
2,130
34
215
1,200
2,831
2,831
2,128
2,190
2,201
2,126
2,015
2,043
2,173
2,296
2,087
91,676
91,640
89,097
90,217
93,638
90,264
96,551
98,638
93,323
96,149
95,308
2,900
2,900
202
69
5,064
187
42
4,629
219
86
4,188
262
70
4,459
5,269
141
108
5,247
156
109
5,063
176
5,383
176
112
5,285
168
196
5,519
5,512
5,365
5,671
102,070 104,151
98,688
101,820
202
69
182
128
3,171
3,171
5,293
4,933
4,520
4,769
94,847
94,811
94,390
95,151
98,159
95,033
126
5,649
100,957
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A65
SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY-Continued
(End of period. Amounts outstanding; in millions of dollars)
Supplementary data ?
Apr.
Other Western Europe:
Cyprus
Iceland.
Ireland, Rep. of
Dec.
Other Latin America:
Bermuda
British West Indies
88
96
118
128
122
129
219
35
93
120
69
127
46
107
354
116
449
627
11
42
18
65
19
49
21
201
Other Asia:
Afghanistan
Burma
88
100
110
125
169
104
69
149
171
260
38
99
41
133
43
131
i 28
120
177
36
69
49
89
43
170
1,311
54
1 Data in the 2 columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in
coverage with those for the preceding date; figures in the second column
are comparable with those shown for the following date.
2 Includes Bank for International Settlements.
3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
1975
1974
Area and country
Apr.f
29
214
157
144
255
34
92
62
125
38
31
137
90
129
245
28
71
52
119
40
Dec,
20
53
102
Apr.
17
10
Other Latin American republics:
Bolivia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Jamaica
Nicaragua
Paraguay
Trinidad and Tobago
1976
1975
1974
Area and country
Other Asia—Cont.:
Cambodia
Jordan
Laos
Lebanon
Malaysia
Pakistan
Singapore
Sri Lanka (Ceylon)
Vietnam
Apr.
Dec.
Apr.
4
6
3
68
40
4
22
3
4
30
5
92
118
215
13
70
95
2
12
17
11
66
31
39
2
4
11
19
13
22
76
13
32
33
3
14
21
23
38
18
33
47
36
165
13
98
Other Africa:
Ethiopia (incl. Eritrea)
Ghana
Kenya
Liberia
Southern Rhodesia. . .
Sudan
Tanzania
Tunisia
Uganda
Zambia
118
22
20
29
All other:
New Zealand
180
126
63
91
245
14
108
Dec.
126
18
4
Comprises Algeria, Gabon, Libya, and Nigeria.
5 Data exclude holdings of dollars of the International Monetary Fund.
Asian, African, and European regional organizations, except BIS,
which is included in "Europe."
7 Represent a partial breakdown of the amounts shown in the other
categories (except "Other Eastern Europe").
6
9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
Total
1,018
1,462
1,285
1,608
1,525
1,561
1,812
1,935
1,919
2,132
2,137
2,134
2,255
2,308
2,277
2,218
To
intl.
and
regional
Total
Other
Official
institu- Banks * foreigners
tions
Total
Latin
Total
Europe America
Middle
East 2
Other3
Asia
260
470
227
136
132
115
94
118
118
100
115
214
61
61
66
66
221
226
231
331
121
126
147
140
841
832
857
894
7
6
12
123
107
115
131
137
141
143
149
159
314
312
306
309
306
308
307
311
312
70
69
78
87
87
88
89
92
91
448
444
443
457
453
459
463
469
470
142
141
147
990
1,009
1,305
1,335
1,399
1,458
1,448
1,394
1,340
16
12
16
14
16
16
17
17
41
93
310
124
259
291
261
395
311
297
415
1,213
1,212
1,263
1,395
873
868
894
931
261
261
286
364
79
83
83
306
286
1,627
1,631
1,949
1,938
1.997
2,065
2,072
2,026
1.998
1,027
1,050
1,342
1,372
1,429
1,490
1,479
1,425
1,386
477
473
492
435
431
434
450
452
453
197
135
189
235
246
214
United
Kingdom
63
66
43
439
700
464
182
Germany
165
159
146
87
580
761
822
Excludes central banks, which are included with "Official institutions."
2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Country or area
To foreign countries
100
79
108
104
107
117
122
125
8
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
3 Until Dec. 1974 includes Middle East oil-exporting countries.
A66
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES
(End of period; in millions of dollars)
1975
1974
1976
Area and country
Dec.
Europe:
Belgium-Luxembourg
Germany
Sweden
Switzerland
United Kingdom
Other Western Europe
Eastern Europe
Sept.
Oct.
9
251
30
493
14
217
275
44
501
114
5
216
216
275
54
441
152
5
275
58
414
165
4
13
215
276
55
363
159
4
885
,170
1,157
,145
713
404
400
402
13
149
5
13
158
6
33
160
6
161
10
Total.
Canada
Latin America:
Latin American republics..
Netherlands Antilles 1 . . . .
Other Latin America
Total.
14
Feb,
Mar.
Apr.
May
13
212
276
68
374
209
4
13
238
276
72
370
213
4
13
247
276
75
386
381
4
14
228
276
89
389
465
4
13
225
281
99
349
472
4
,085
1,156
,186
1,382
1,465
395
395
418
419
425
33
33
159
7
33
131
7
33
121
13
6
Jan.
July
Aug.f
Sept.f
221
11
380
551
4
291
132
368
577
4
9
324
275
171
383
567
4
9
518
240
268
396
589
4
,443
1,566
1,604
1,733
2,024
340
340
341
337
386
7
34
125
7
34
141
7
39
157
7
39
222
10
30
138
10
161
160
166
182
203
271
178
33
120
7
June
12
227
291
101
3,502
1,668
3,520
212
1,818
3,269
1,869
3,271
2,099
3,268
2,229
3,212
2,436
3,217
2,987
3,217
3,330
3,074
3,800
3,075
4,391
3,077
4,624
2,952
4,931
3,052
5,499
3,709
5,170
5,339
5,138
5,370
5,497
5,648
6,204
6,547
6,874
7,466
7,700
7,883
,551
151
261
311
311
321
340
350
396
411
431
471
501
521
531
5,557
7,173
7,383
7,195
7,372
7,589
7,775
,561
9,009
9,254 10,026 10,350 10,746
1,671
52
15
324
15
60
9
322
9
593
1,034
957
153
-3
3,498
Total
Dec.
199
168
Asia:
Japan
Other Asia.
Nov.
Africa
All other
Total foreign countries
International and regional:
International
Latin American regional...
150
67
339
69
331
592
,033
956
150
5,708
7,240
7,722
7,263
7,702
8,181
,808
9,517
9,158
Total
Grand total.
-1
l Includes Surinam until Jan. 1976.
NOTE.—Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1
149
583
- 6
- 6
143
576
,059
3
1,382
13
,762
13
1,062
1,395
1,775
9,396 10,602 11,412 12,141 13,446
year, and are based on a benchmark survey of holdings as of Jan. 31,1971,
and monthly transactions reports (see Table 14).
11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
Payable in dollars
Loans to—
End of period
Total
Total
1972
197 3
15,676
20,723
Total
14,830
20,061
5,671
7,660
Payable in foreign currencies
AcceptCollecances
tions
made
out- for acct.
standof foring
eigners
Official
institutions
Banksi
Others2
163
284
2,970
4,538
2,538
2,838
3,276
4,307
3,226
4,160
Other
Total
Foreign
govt, seDeposits curities,
with for- coml.
eigners and finance
paper
2,657
3,935
846
662
441
428
Other
223
119
182
115
197 4
39,056
37,859
11,296
381
7,337
3,579
5,637
11,237
9,689
1,196
669
289
238
1975—Sept..
Oct...
Nov..
Dec.. ,
45,843
48,169
48,752
50,248
44,706
46,848
47,432
48,938
12,822
12,811
13,562
13,287
574
649
697
614
7,638
7,642
8,392
7,733
4,610
4,519
4,472
4,939
5,314
5,465
5,363
5,467
10,071
10.134
10,610
11.135
16,499
18,438
17,898
19,049
1,138
1,321
1,319
1,309
581
749
652
633
236
231
340
301
320
341
327
376
1976—Jan...
Feb...
Mar..
Apr...
May..
June.
July..
Aug.P
Sept.P
51,583
54,173
53,580
55,668
57,658
57,924
59,332
57,998
59,522
50,338
52,773
52,259
54,219
56,240
56,363
57,875
56,455
57,868
13,495
14,303
13,640
14,549
15,819
15,182
15,597
15,248
15,013
697
754
765
769
1,014
815
737
1,017
778
8,147
8,762
8,059
8,824
9,532
9,124
9,670
9,041
9,141
4,652
4,788
4,817
4,956
5,272
5,243
5,189
5,191
5,094
5,311
5,191
5,367
5,325
5,379
5,517
5,542
5,495
5,608
11,047
10,994
11,148
11,297
11,310
11,541
11,451
11,144
11,347
20,485
22,285
22,105
23,048
23,733
24,124
25,285
24,568
25,899
1,246
1,401
1,321
1,449
1,419
1,560
1,457
1,542
1,654
696
728
794
920
878
916
850
903
1,027
263
241
145
156
141
158
132
143
120
286
431
382
373
399
487
475
496
507
1
2
Excludes central banks which are included with "Official institutions."
Includes international and regional organizations.
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A67
12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1976
1974
1975
Dec.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,580
22
22
46
131
15
352
49
128
1,471
441
49
370
300
71
16
249
167
237
86
4,718
38
27
103
114
20
401
55
132
1,397
486
55
369
316
66
20
274
124
250
59
4,588
37
26
101
125
23
417
55
120
1,513
426
52
402
267
63
20
262
111
278
82
4,778
49
29
84
159
22
430
55
128
1,256
474
53
360
269
66
21
231
121
340
73
4,550
64
29
85
109
39
398
59
105
1,233
452
63
406
290
71
18
241
105
400
68
5,295
50
27
63
107
25
427
57
109
1,109
448
62
492
267
76
32
321
116
355
90
4,987
47
41
70
102
35
537
62
125
1,145
384
53
554
318
71
40
285
106
401
99
5,077
45
57
70
110
24
562
68
133
1,100
432
70
644
251
74
53
302
97
374
81
5,435
45
42
69
147
24
472
50
176
929
414
68
617
266
78
57
239
143
442
77
5,167
40
50
53
125
47
445
57
129
1,167
501
117
705
254
68
55
244
106
420
91
4,570
28
56
52
107
Area and country
Europe:
Austria
Belgium-Luxembourg
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe
U.S.S.R
Other Eastern Europe
Total
Canada
Latin America:
Bahamas
Brazil
Chile
Colombia
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
Netherlands Antilles and Surinam
Other Latin America
Aug. p
Sept. p
6,255
9,000
8,899
9,190
8,737
9,491
9,232
9,572
10,003
9,487
9,216
2,776
2,817
3,020
2,983
2,917
3,253
3,364
3,166
3,027
3,031
3,209
720
3,405
1,418
290
713
1,972
505
518
63
704
866
62
1,142
1,203
7,577
2,225
360
692
2,813
1,052
588
51
1,086
980
49
1,885
1,246
8,048
2,157
312
654
2,783
1,281
624
68
1,001
1,055
53
3,085
1,338
10,048
2,204
343
586
3,079
1,193
634
62
925
1,061
43
3,264
1,290
10,324
2,318
324
545
3,034
1,110
597
46
1,040
986
- 33
2,729
1,374
10,267
2,351
349
539
3,236
787
638
39
1,077
1,052
32
3,718
1,342
11,104
2,414
352
518
3,444
991
621
33
1,280
1,153
32
3,996
1,145
11,460
2,692
340
533
3,494
840
623
34
1,153
999
33
3,667
1,149
12,381
2,633
364
537
3,562
697
665
31
1,237
1,072
28
4,121
1,149
11,532
2,773
352
501
3,559
778
666
31
1,503
991
29
3,751
961
13,600
2,891
343
459
3,456
809
691
28
1,302
1,114
42
3,743
12,377
20,561
22,368
24,781
24,375
25,458
27,280
27,015
28,477
27,614
29,439
Asia:
4
China, People's Rep. of (China Mainland)
500
China, Republic of (Taiwan)
223
Hong Kong
14
India
157
Indonesia
255
Israel
12,518
Japan
955
Korea
372
Philippines
458
Thailand
1
330
Middle East oil-exporting countries . . .
441
Other
22
737
258
21
105
491
10,753
1,556
384
495
524
684
10
725
234
19
129
419
10,121
1,605
434
535
525
734
17
729
225
26
131
365
9,870
1,715
507
516
600
705
22
775
229
25
162
309
10,208
1,600
510
537
646
731
18
793
200
26
162
314
10,118
1,713
520
533
605
632
9
860
228
34
171
285
10,004
1,675
559
491
742
785
10
863
273
38
160
315
10,358
1,713
524
490
746
719
12
908
296
36
125
269
10,340
1,614
389
465
780
665
4
939
251
36
108
257
10,116
1,551
459
437
836
838
4
981
252
33
119
313
10,230
1,594
474
434
695
569
16,226
16,029
15,489
15,405
15,756
15,635
15,841
16,209
15,898
15,832
15,696
111
329
115
300
104
545
231
351
106
547
213
349
101
546
230
330
103
575
226
270
110
631
210
301
106
672
211
336
117
689
181
327
117
698
185
311
115
695
268
317
114
679
176
363
855
1,231
1,215
1,207
1,174
1,252
1,325
1,314
1,310
1,395
1,332
466
99
535
73
503
87
492
113
521
98
498
79
547
67
548
100
542
74
553
85
519
110
Total
Total
Africa:
Egypt
Other
Total
Other countries:
All other
Total
Total foreign countries
565
609
589
605
619
577
615
647
617
638
629
39,055
50,246
51,581
54,172
53,578
55,666
57,657
57,923
59,331
59,522
1
3
2
3
2
1
1
1
57,997
1
50,248
51,583
54,173
53,580
55,668
57,658
57,924
59,332
57,998
59,522
International and regional
39,056
1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Comprises Algeria, Gabon, Libya, and Nigeria.
NOTE.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.
A68
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
Country or area
Type
Payable in dollars
End of
period
Total
Total
Official
institutions
Banks1
Other
foreigners2
Other
longterm
claims
Payable
Total
in
foreign Europe
currencies
197 2
197 3
197 4
5,063
5,996
7,179
4,588
5,446
6,490
844
1,160
1,328
430
591
931
3,314
3,694
4,231
435
478
609
40
72
1975—Sept..
Oct...
Nov..
Dec...
8,607
8,948
9,158
9,550
7,705
7,994
8,137
8,499
1,343
1,371
1,536
1,567
1,712
4,991
5,177
5,253
5,412
809
840
903
934
93
114
1,318
1,375
1976—Jan.. .
Feb...
Mar..
Apr...
May..
June..
July. .
Aug p.
Sept.?.
9,432
9,531
9,800
9,980
10,252
10,216
10,386
10,956
11,232
8,369
8,372
8,641
8,783
9,004
8,957
9,098
9,603
9,846
1,293
1,268
1,316
1,337
1,381
1,370
1,346
1,349
1,359
1,653
1,652
1,740
1,842
1,933
1,961
2,085
2,223
2,298
423
452
584
603
689
945
1,012
118
1,281
626
667
6,010
6,188
80
118
116
148
149
1,011
116
1,081
1,133
1,138
1,155
1,224
1,249
115
121
133
129
137
1
2
Excludes central banks, which are included with "Official institutions."
Includes international and regional organizations.
3 Comprises Middle East oil-exporting countries as follows: Bahrain,
Canada
Total
Latin
America
Japan
Middle
East 3
Other4
Asia
853
1,272
1,907
406
490
501
2,020
2,116
2,614
353
251
258
384
918
1,331
977
514
536
537
2,459
2,567
2,562
2,695
508
595
569
555
3,139
3,175
3,287
3,497
265
292
293
296
237
222
249
220
1,214
1,233
1,237
1.276
785
865
961
1,011
2,697
2,622
2,702
2,736
2,831
2,742
2,871
3,093
3,149
552
576
570
558
607
590
575
592
623
3,382
3,471
3,605
3,785
3,973
4,081
4,103
4,379
4,516
289
289
292
307
307
324
337
355
370
205
1.277
1,270
1,195
1,279
1,263
1,261
1,290
1,293
1,325
1,030
1,093
1,140
210
296
196
196
182
183
187
171
All
other
coun-2
tries
1,118
1,075
1,037
1,027
1,057
1,079
Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
(Trucial
States).
4
Until Dec. 1974 includes Middle East oil-exporting countries.
14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)
Marketable U.S. Treas. bonds and notes 1
Foreign bonds 3
U.S. corporate
securities2,3
Foreign stocks 3
Net purchases or sales ( —)
Period
Total
Intl.
and
regional
Purchases
Foreign
Total 4
Official
Sales
Net pur- Purchases or chases
sales ( —)
Sales
Net purchases
sales (—)
PurSales
Sales
Net purchases oi
sales (—;
Other
1973
1974
1975
305
-472
1,994
-165
101
180
470
-573
1,814
465
-642
1,596
6 18,574 13,810
69 16,207 14,679
233 20,741 15,321
4,764
1,529
5,421
1,474
1,036
2,383
2,467
3,254
8,683
-993
-2,218
-6,301
1,729
1,907
1,541
1,554
1,723
1,730
176
184
-189
153 18,387 14,820
1976—Jan.-Sept.P
4,882
1,444
3,438
3,285
3,567
3,350
9,814
-6,464
1,421
1,744
-323
1975—Sept
Oct
Nov
Dec
192
482
-459
439
-14
272
-270
262
206
210
-189
177
175
173
-159
156
31
38
-29
21
1,288
2,133
1,674
1,894
1,131
1,382
1,249
964
157
751
426
930
194
195
248
281
285
678
991
1,471
-91
-483
-743
-1,190
91
138
108
148
81
162
79
97
10
-24
28
51
1976—Jan
Feb
Mar
Apr
May
June
July
Aug.?
Sept.?
478
627
709
-358
238
1,205
810
729
1,305
261
441
-77
-805
-7
434
486
333
380
217
186
786
447
245
772
324
396
925
210
176
731
430
263
717
294
320
964
7
10
55
18
-18
55
31
76
-40
2,834
2,503
2,524
2,260
1,636
1,820
1,902
1,461
1,485
2,078
2,086
1,972
1,689
1,501
1,331
1,517
1,194
1,465
756
417
552
571
135
489
385
268
20
462
402
360
341
373
281
440
333
359
800
-339
1,547 - 1 , 1 4 5
-933
1,293
763
-422
822
-450
813
-531
2,173 - 1 , 7 3 4
811
-478
790
-432
145
162
193
182
198
162
128
123
126
142
222
246
143
240
206
257
134
153
3
-60
-53
40
-42
-44
-129
-11
-27
1
Excludes nonmarketable U.S. Treasury bonds and notes issued to
official
institutions of foreign countries.
2
Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.
3 Includes transactions of international and regional organizations.
4
Includes transactions (in millions of dollars) of oil-exporting countries
in Middle East and Africa as shown in the tabulation in the opposite
column:
Middle East
Africa
1975
1,797
170
1976—Jan.-Sept.3'
3,019
210
1975—Sept.
Oct.
Nov.
Dec.
150
150
51
179
50
50
1976—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.f
Sept.2'
116
191
532
320
460
611
246
228
315
20
10
45
15
20
40
30
20
10
10
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A69
15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)
Germany
Net purchases or France
sales (—)
Nether- Switzerland
lands
Purchases
Sales
1973
1974
1975
12,767
7,636
15,347
9,978
7,096
10,678
2,790
540
4,669
439
203
262
2
39
251
339
330
359
Period
United
Kingdom
Total
Europe
686
36
889
366
-377
594
2,104
281
2,491
Total
Canada America
Latin
99
—6
361
Middle
East1
Other
Asia 2 Other3
4
-33
-7
1,640
577
288
142
5
17
33
1976—Jan
14,416
11,818
2,598
255
76
-98
36
332
582
236
146
1,498
103
32
1975—Sept
Oct
Nov
Dec
898
1,475
1,155
1,380
646
1,047
817
691
252
428
338
689
10
16
22
28
6
-6
42
38
22
17
-5
64
64
36
42
122
7
48
44
32
122
143
134
295
20
60
36
103
-15
7
-1
-9
83
190
157
289
34
22
8
13
7
6
2
-3
1976—Jan
Feb
Mar
Apr
May
June
July. .
Aug.**
Sept.?
2.087
2,095
2,137
1,690
1,209
1,429
1,595
1,050
1,124
1,546
1,724
1,555
1,279
1,096
1,176
1,363
962
1,116
541
371
582
411
113
252
232
88
9
1
15
79
10
3
24
72
28
23
136
12
26
10
-44
-27
-20
-11
-6
-48
-14
-6
31
4
2
-22
-21
-26
-2
63
147
-21
21
-47
-58
-11
-55
88
41
69
49
20
20
5
12
29
208
133
327
84
-11
-47
-32
-19
-60
40
48
16
23
30
5
44
35
5
76
11
28
25
7
11
3
-24
10
222
175
153
254
67
266
209
92
60
-6
5
42
22
16
20
10
-2
-4
1
2
13
4
4
3
-1
8
-2
1
Comprises Middle East oil-exporting countries as follows: Bahrain,
Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
(Trucial States).
2 Until 1975 includes Middle East oil-exporting countries.
3 Includes international and regional organizations.
16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Period
Germany
Total
197 3
197 4
197 5
201
1,948
988
752
994
34
1975—Sep t
Oct
Nov
Dec
-94
323
-14
1976—Ja n
Feb
Mar
Apr
May
June
July
Aug.P
Sept.33
215
47
-31
1976—Jan.-Sept.P
-33
33
96
82
-11
1
88
Nether- Switzer- United
Total
Kingdom Europe
lands
land
307
96
117
-19
183
15
-60
157
6
-50
-7
12
9
39
2
242
5
2
3
3
3
6
160
22
236
153
179
10
4
11
-1
-1
-1
275
395
87
- 2
78
-41
56
36
-30
5
4
23
-11
- 2
-26
19
18
8
35
-3
-3
106
-21
20
-56
9
1,204
741
3
23
17
16
1 See note 1 to Table 15.
2 See note 2 to Table 15.
Canada
Total
Latin
America
49
45
128
74
-19
40
-25
74
-5
38
7
23
-70
-25
29
4
9
7
-3
- 2
29
49
29
Middle
East1
Other
Asia 2
44
43
31
1,553
632
-42
5
31
970
-114
-7
94
247
93
150
- 6
-1
6
221
30
35
179
37
224
104
121
1
2
9
18
18
Total
Other Intl. and
Africa countries regional
52
-483
1,030
10
- 2 0
-162
-11
-4
4
11
16
-20
-34
-20
-10
*
-14
-10
20
18
-13
6
-19
4
-13
- 2
5
-15
6
-4
-19
NOTE.—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new
debt securities sold abroad by U.S. corporations organized to finance direct investments abroad.
17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA
18. FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS
(In millions of dollars)
(Amounts outstanding; in millions of dollars)
Period
1973
1974
1975
1976—
Jan-Sept.?.
1975—Sept....
Oct, ,
Nov
Dec
Intl.
and
regional
Total
foreign
countries
Europe
-818
139
-2,034
-60
- 6 , 4 9 0 -2,192
-957
-1,974
-4,299
-141
-546
-53
-569
-1,508
-3,178
-120
-93
-306
-168
142
-622
3
37
7
22
15 - 1 5 5
6,786 -1,154 - 5 , 6 3 2
-649
-4,143
-14
-640
45
-230
-99
-513
-653
-300
-20
48
-27
79
-129
-460
-584
-310
25
-48
6
9
24
-55
2
-79
-3
-2
-1
-1
1
6
-48
1
94
-429
-139 -1,067
9
-995
-94
-288
-158
-333
6
-582
-819 -1,044
-66
-423
12
-471
-109
33
-168
-304
-973
-738
-286
-233
-328
-853
-98
-331
-7
-9
5 -113
-72
-14
6 -15
-39
-77
10
12
19 - 9 3
47 - 3 1 7
20 - 1 6
Total
-81
-508
-715
-1,139
1976—Jan
-335
Feb
-1,205
Mar....
-986
Apr.. . .
-382
May. ..
-491
June. ..
-576
July.... - 1 , 8 6 2
Aug.P..
-489
Sept .p. .
-459
18
5
-62
-839
*
-19
-52
-130
-60
-145
Latin
Canada Amer- Asia
ica
Africa
Other
countries
-3
2
-4
-14
-5
2
4
2
32
3
11 - 2 3 4
9
3
1
3
*
2
Credit
balances
(due to
foreigners)
Debit
balances
(due from
foreigners)
1973—Sept.
Dec.
290
333
255
231
1974—Mar.
June,
Sept.
Dec.,
383
354
298
293
225
241
178
194
1975—Mar.
June.
Sept.
Dec.
349
380
343
365
209
233
258
319
1976—Mar.
411
333
End of
period
NOTE.—Data represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.
A70
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
Claims on U.S.
Location and currency form
IN ALL FOREIGN COUNTRIES
Total, all currencies
Payable in U.S. dollars.
IN UNITED KINGDOM
Total, all currencies
Payable in U.S. dollars.
IN BAHAMAS AND CAYMANS*
Total, all currencies
For notes see p. A-74.
Month-end
Total
121,866
Total
Parent
bank
1,886
Claims on foreigners
Other
Total
1973—De c
1974—De c
151,905
5,091
6,900
4,464
3,205 111,974
2,435 138,712
1975—Au g
Sept
Oct
Nov
Dec
167,672
167,886
171,465
173,736
176,493
9,151
6,575
7,924
8,705
6,743
6,098
3,268
4,896
5,777
3,665
3,054
3,307
3,027
2,928
3,078
1976—Ja n
Feb
Mar
Apr
May
June r
July
Aug.f
179,761 8,033
81,651 8,959
186,870 6,742
189.437 9,054
194,592 10,019
194,481 6,701
196,757 8,640
196,117 7,241
5,045
5,926
3,525
6,049
6,924
3,272
5,569
4,008
1973—De c
1974—De c
79,445
105,969
4,599
6,603
1975—Au g
Sept
Oct
Nov
Dec
122,781
124,373
127,355
130,233
132,901
1976—Jan
Feb
Mar
Apr
May
June r
July
Aug.P
Other
branches
of parent
bank
Other
banks
NonOffibank
cial
forinstitutions eigners
19,177 56,368
27,559 60,283
2,693
4,077
33,736
46,793
151,897
154,905
156,989
158,179
163,391
32,062
32,140
33,496
34,385
34,508
62,974
65,876
65,348
65,296
69,206
4,901
4,863
5,237
5,516
5,879
51,960
52,026
52,908
52,982
53,798
2,988
3,033
3,217
3,005
3,095
3,429
3,071
3,234
165,548
166,250
173,577
173,827
177,806
181,151
181,284
182,161
37,064
35,200
38,867
39,563
39,982
40,971
41,675
40,890
67,787
69,244
72,404
70,652
73,619
74,404
71,756
71,537
54,576
55,473
55,645
7,213 56,399
7,820 56,385
7,909 57,867
8,444 59,409
8,835 60,898
1,848
4,428
2,751
2,175
73,018
96,209
8,827
6,238
7,506
8,350
6,408
6,044
3,211
4,822
5,725
3,628
2,783
3,027
2,684
2,625
2,780
110,654
115,178
116,673
118,603
123,496
134,713
136,307
138,201
140,971
146.438
145,994
149,054
147,200
7,697
8,644
6,464
8,759
9,704
6,384
8,371
6,927
5,005
5,881
3,478
5,980
6,848
3,203
5,524
3,969
2,692
2,763
2,986
2,778
2,855
3,181
2,847
2,959
123,925
124,433
128,629
129,141
133,491
136,541
137,291
137,067
1973—De c
1974—De c
61,732
69,804
1,789
3,248
738
2,472
,051
776
57,761
64,111
8,773 34,442
12,724 32,701
735
788
13,811
17,8""
1975—Au g
Sept
Oct
Nov
Dec
72.455
72,120
72,742
73,924
74,883
3,795
2,042
,097
967
982
975
943
66,428
67,923
67,631
68,494
70,331
15,213
15,249
16,555
17,549
17,557
33,486
35,569
33,882
34,077
35,904
948
825
830
852
881
16,780
3,112
2,392
2.698
1,076
1.699
2,137
1,449
1976—Ja n
Feb
Mar
Apr
May
June r
July
Aug.f
73,437
72,963
74,668
74,055
75,926
74,460
73,494
73,229
2,253
2,947
2,112
2,275
2,443
1,702
1,862
1,758
1,469
2,270
1,237
1,447
1,534
802
1,002
938
784
677
875
827
909
900
860
18,026
16,050
17,363
18,394
18,619
18,139
18,838
18,044
34,152
34,887
36,723
34,879
36,270
35,804
33,593
34,135
1,034
964
927
934
851
15,850
821
69,062
67,843
70,300
69,555
71,189
70,526
69,359
69,298
1973—De c
1974—Dec
40,323
49,211
1,642
3,146
730
2,468
912
678
37,816
44,693
6,509 23,389
10,265 23,716
510
610
10,102
1975—Au g
Sept
Oct
Nov
Dec
53.456
54,256
54,192
56,221
57,361
3,661
1,910
2,552
2,988
2,273
2,681
980
856
865
865
828
48,763
51,369
50,494
52,145
54,120
13,315
13,488
14,654
15,555
15,645
24,719
27,514
25,450
26,233
28,224
740
596
592
638
648
9,989
9,772
9,799
9,720
9,604
1976—Jan
Feb
Mar
Apr
May r
June
July
Aug.f
55,046
55,041
55,115
54,516
56,667
55,360
54,871
54,522
2,141
2,856
1,459
2,261
2,155
2,322
1,614
1,780
1,658
1,234
1,434
1,519
795
997
934
683
595
775
721
803
819
783
724
52,024
51,266
52,147
51,469
53,466
52,899
52,249
52,006
15,574
14,278
14,450
15,424
15,860
15,454
16,202
15,401
26,008
26,741
27,526
25,820
27,218
27,068
25,371
25,826
837
715
691
633
635
631
659
799
9,606
9,532
9,482
9,593
9,754
9,747
1973—De c
1974—De c
23,771
31,733
2,210
2,464
1,081
317
1,893
1,383
21,041
28,453
1,928 9,895
3,478 11,354
1,151
2,022
8,068
11,599
1975—Au g
Sept
Oct
Nov
Dec
41,624
41,601
44,166
44,471
45,203
4,117
3,189
3,989
4,544
3,229
2,580
1,289
2,295
2,929
1,477
1,536
1,900
1,694
1,615
1,752
36,555
37,479
39,225
38,973
41,040
5,222
5,220
5,604
5,321
5,411
14,117
14,604
15,414
15,134
16,298
2,891
3,020
3,308
3,434
3,576
14,324
14,635
14,899
15,084
15,756
1976—Ja n
Feb
Mar
Apr
May
June
July
Aug.f
48,694
50,276
51,075
54,398
57,247
57,118
59,913
257,677
4,488
4,765
3,482
5,695
6,294
3,804
5,772
3,822
2,614
2,750
1,485
3,835
4,424
1,636
3,864
1,721
1,874
2,014
1,996
43,104
44,396
46,636
47,536
49,631
52,275
52,960
52,665
6,296
6,257
6,745
6,437
6,435
7,254
7,149
6,791
17,195
17,556
18,205
18,503
3,677
3,908
4,251
4,680
5,101
5,160
5,699
5,929
15,935
16,675
17,434
17,917
17,915
18,657
19,444
19,991
2,681
2,010
1,054
1,687
2,123
1,445
1,860
1,870
2,169
1,908
2,101
6,121
6,332
6,661
12,799 39,527
19,688 45,067
1,777
3,289
18,915
28,164
25,758
26,043
27,357
28,317
28,478
48,250
51,998
50,820
51,624
55,319
4,148
4,042
4.363
4,646
4,951
32,498
33,095
34,133
34,016
34,748
30,113
28,730
30,496
31,510
32,121
32,856
33,786
32,933
53,370
54,497
56,039
54,496
57,540
58,857
56,590
56,159
5,229 35,214
5.364 35,842
5,719 36,374
6,158 36,978
6,656 37,175
6,706 38,122
7,148 39,766
7,643 40,333
20,181
21,204
20,668
19,954
888
909
1,007
16,280
16,364
16.017
15,990
15,941
15,287
15,348
15,449
15,695
16.018
16,112
7,409
10,018
9,980
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A71
19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
To foreigners
To U.S.
Total
Parent
bank
Other
Total
Other
branches
of parent
bank
Other
banks
NonOffibank
cial
forinstitutions eigners
5,610
11,982
1,642
5,809
3,968
6,173
111,615
132,990
18,213 65,389 10,330 17,683
26,941 65,675 20,185 20,189
17,335
18.502
19,154
19,858
20,221
10,173
11,026
11,282
12,165
7,162
7,476
7,872
8,657
8,057
143,926
143,182
146,066
147,011
149,815
31,926
31,567
33.216
33,892
34,11
70,198
70,853
70,560
70,567
72,259
21,114
19,780
20,642
21,200
22,773
22.571
24,500
24,645
26,755
28,272
27,968
28,610
27,116
12,691
14,091
15,295
14,543
15,918
16,502
15,941
16,486
9,880 151.212
10,409 151,104
9,350 156,329
12,212 156,870
12,354 160,261
11,467 160,364
12,669 161,536
10,631 162,635
35,908
35,257
37,846
38,81
38,994
39,969
41,061
40,064
72,481
70,957
72,769
72,720
75,919
75,527
74,181
74,368
21,710
23,189
22,493
21,857
22,467
21,605
22,233
23,373
5,027
11,437
1,477
5,641
16,689
17,871
18,477
19,159
19.503
9,992
10,823
11,078
11,201
11,008
11,939
21,931 12,519
23,759 13,846
23,855 15,023
26,011 14,286
27.572 15,657
27,167 16,229
27,844 15,687
26,348 16,246
3,550
5,795
73,189
92,503
Other
Month-end
4,641
6,933
. 1973—Dec.
. 1974—Dec.
20,688
20,981
21,648
21,352
20,672
6,411
6,202
6,246
6,867
6,456
. 1975—Aug.
Sept.
Oct.
Nov.
Dec.
21,114
21,700
23,221
23,482
23,262
24,060
24,829
5,978
6,047
5,896
5,812
6,059
6,148
6,61
6,366
.1976—Jan.
Feb.
Mar.
Apr.
May
June r
July 3
Aug. '
12,554 43,641 7,491 9,502
19,330 43,656 17,444 12,072
2,158
3,951
. 1973—Dec.
. 1974—Dec.
18,080
22,881
6,698 105,200
7,048 105,765
7,399 107,682
8,151 110.213
7,564 112,879
25,646
25,607
27,118
28,030
28.217
49,410
50,726
49,911
50,450
51,583
16,777
17,476
18,407
19,982
12,064
12,654
13,177
13,326
13,097
3,439
3,213
3,409
3,919
3,526
. 1975—Aug.
Sept.
Oct.
Nov.
Dec.
9,412
9,913
8,831
11,725
11,914
10,938
12,157
10,102
113,546
112,981
115,497
116,743
120,445
120,145
121,937
122,148
29,682
28,659
30,011
31,428
31,661
32,758
33,850
32,687
51,994
50,549
51,654
51,679
54.559
54,085
53.560
53,317
18,906
20,317
19,518
19,080
19,791
19,036
19,580
20,565
12,965
13,457
14,315
14,557
14,434
14,266
14,947
15,579
3,351
3,385
2,995
3,063
3,107
3,190
3,377
3,252
.1976—Jan.
Feb.
Mar.
Apr.
May
June r
July 25
Aug.
1,990
2,41 ~
.1973—Dec.
.1974—Dec.
2,210
2,431
3,978
136
510
2,295
3,468
57,311
63,409
3,944 34,979 8,140 10,248
4,762 32,040 15,258 11,349
5,251
5,112
4,905
5,497
5,646
1,904
1,833
1,766
2,028
2,122
3,348
3,279
3,139
3,468
3,523
64,994
64,962
65,681
66,210
67,240
6,260
6,396
6,746
6.470
6,494
32,079
33,130
32,315
33,284
32,964
15,617
14,486
14,909
15,180
16,553
11,038
10,950
11,711
11,275
11,229
2,046
2,157
1,997
. 1975—Aug.
Sept.
Oct.
Nov.
Dec.
5,645
5,491
5,382
6,105
6,483
5,874
5,628
5,266
1,749
1,914
1,549
1,764
1,796
1,562
1,727
1,520
3,896
3,577
3,833
4,340
4,687
4,312
3,901
3,746
65,899
65,544
67,217
65,977
67,212
66,536
65,594
65,883
6,444
6,648
7,099
6,898
7,030
7,288
6,927
6,668
33,522
31,444
32,485
31,805
33,189
33,313
31,487
30,834
15,053
16,463
15,905
15,521
15,782
14,825
15,462
16,147
10,879
10,989
11,729
11,752
11,212
11,110
11,718
12,234
1,893
1,928
2,069
1,974
2,231
2,050
2,272
2,080
, 1976—Jan.
Feb.
Mar.
Apr.
May
June r
July 25
Aug.
2,173
3,744
113
484
2,060
3,261
36,646
44,594
2,519 22,051 5,923
3,256 20,526 13,225
6,152
7,587
870
1,328
.1973—Dec.
, 1974—Dec.
4,975
4,889
4,696
5,288
5,415
1,873
3,103
3,081
2,961
3,279
3,332
47,896
48,814
48,641
50,159
51,447
5,288
5,456
5,708
5,478
5,442
22,071
23,645
22,433
23,615
23,330
13,249
1,735
2,009
2,083
12,500
12,999
14,498
7,287
7,531
7,999
8,066
8,176
1,146
980
1,142
1,249
959
. 1975—Aug.
Sept.
Oct.
Nov.
Dec.
5,446
5,311
5,179
5,880
6,271
5,682
5,443
5,093
1,732
1,901
1,509
1,723
1,759
1,546
1,703
1,498
3,714
3,410
3,670
4,156
4,513
4,136
3,740
3,595
49,609
49,606
50,126
48,992
50,727
50,044
49,691
49,746
5,422
5.471
5,969
5,771
5,863
6,218
5,878
5,604
23,357
21,911
21,973
21,230
22,544
22,690
21,765
20,910
13,070
14,326
13,710
13,450
13,914
13,074
13,604
14,296
7,761
7,899
8,474
8,541
8,406
8,062
8,444
8,936
932
931
961
877
925
848
844
862
. 1976—Jan.
Feb.
Mar.
Apr.
May
June r
July
1,573
4,815
307
2,636
1,266
2,180
21,747
26,140
5,508 14,071
7,702 14,050
492
2,377
1,676
2,011
451
778
1973—Dec.
1974—Dec.
8,800
9,928
10,833
11,082
11,147
5,715
6,490
7,056
6,710
7,628
3,085
3,439
3,778
4,372
3,520
31,913
30,861
32,372
32,239
32,949
9,128
8,918
9,725
10,553
10,569
17,317
16,834
17,296
15,972
16,825
2,860
2,570
2,775
3,230
3,308
2,607
2,540
2,577
2,483
2,248
911
961
1,150
1,106
1975—Aug.
Sept.
Oct.
Nov.
Dec.
13,111
15,042 9,197
15,494 10,915
16,872 9,904
18,286 11,529
18,286 12,203
19,370 11,611
18,237 12,303
5,023
5,845
4,579
6,968
6,757
6,083
7,759
5,935
34,475
34,133
34,905
36,553
38,112
37,817
39,411
38,380
11,169
10,231
10,850
11,903
11,918
12,117
13,317
12,416
17,724
18,130
18,360
18,907
20,303
19,724
20,350
20,125
3,416
3,407
2,998
2,970
2,950
2,917
1,109
1,100
676
972
849
1,016
1,131
1,059
.1976—Jan.
Feb.
Mar.
Apr.
May
June
July 23
Aug. j
1,808
For notes see p. A-74.
12,182
2,811
2,857
2,166
2,366
2,697
2,774
2,941
3,059
2,933
2,982
2,218
812
Location and currency form
IN ALL FOREIGN COUNTRIES
. . .Total, all currencies
.Payable in U.S. dollars
IN UNITED KINGDOM
. . .Total, all currencies
• Payable in U.S. dollars
Aug.P
IN BAHAMAS AND CAYMANS 1
. . .Total, all currencies
A72
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
20. DEPOSITS, U.S. TREAS. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT
21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
(In millions of dollars)
Payable in
Payable in dollars foreign currencies
Assets in custody
End of
period
Deposits
U.S. Treas.
securities1
Earmarked
gold
197 2
197 3
197 4
325
251
418
50,934
52,070
55,600
215,530
217,068
16,838
1975—Oct...
Nov..
Dec..
297
346
352
60,307
60,512
60,019
16,751
16,745
16,745
1976—Jan...
Feb...
Mar..
Apr...
May.
June .
July..
Aug..
Sept..
Oct...
294
412
305
305
303
349
295
254
392
362
61,796
62,640
61,271
62,527
63,225
63,212
62,955
63,457
64,215
64,942
16,669
End of
period
Deposits
16,666
16,660
16,657
16,647
16,633
16,607
16,565
16,590
16,505
1 Marketable U.S. Treasury bills, certificates of indebtedness, 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 Oct. 1973.
Shortterm
invest-1
ments
Shortterm
Deposits investments 1
2,374
3,164
3,357
1,910
2,588
2,591
55
37
68
340
435
429
68
105
268
911
1,118
1,350
536
765
967
1975—July.r
Aug. r
Sept.
Oct. r
Nov.rr
Dec.
3,336
3,563
3,696
3,527
3,922
3,791
2,209
2,292
2,456
2,498
2,709
2,703
246
239
266
351
468
332
479
512
478
429
461
510
402
520
496
249
284
246
926
1,052
1,139
1,199
1,308
1,304
1,122
1,322
1,261
1,167
1,382
1,153
1976—Jan....
Feb. r
Mar. ....
Apr. rr
May
June r
July?
Aug.?
4,224
4,426
4,437
4,968
5,201
4,939
5,190
5,111
3,086
3,267
3,356
3,855
4,088
3,963
4,172
4,088
375
377
393
412
426
345
380
419
474
447
435
432
451
433
431
377
289
335
253
267
237
199
207
227
1,506
1,507
1,690
2,061
1,912
1,908
2,060
2,064
1,325
1,348
1,325
1,381
1,521
1,274
1,415
1,393
NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in
the United States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the United States and are included in the figures shown in
Table 22.
(Amount outstanding; in millions of dollars)
Liabilities
Total
Payable
in
dollars
Claims
Payable
in
foreign
currencies
Total
Payable
in
dollars
Payable in foreign
currencies
Deposits with
banks abroad
in reporter's
name
Other
/ 3,119
1 3,417
2,635
2,948
484
469
5,721
6,302
5,074
5,643
410
393
237
267
1973—Mar.'
June rr
Sept.
Dec. r
3,320
3,295
3,579
4,006
2,848
2,772
2,931
3,290
472
523
648
716
7,024
7,298
7,635
8,498
6,154
6,456
6,708
7,584
456
493
528
493
414
349
399
421
1974—Mar.'
June rr
Sept.
Dec. r
4,414
5,139
5,605
5,933
3,590
4,184
4,656
5,017
823
955
949
916
10,497
11,079
10,764
11,296
9,564
10,154
9,796
10,239
407
429
430
473
526
496
537
584
1975—Mar.'
June rr
Sept.
Dec.'
5,953
5,961
6,040
6,006
5,082
5,116
5,178
5,388
871
845
862
618
10,949
10,899
11,730
12,271
9,818
9,618
10,383
11,091
453
479
529
565
678
801
819
616
1976—Mar*
Junef
6,330
6,296
5,655
5,624
675
672
12,850
13,958
11,773
12,947
483
481
595
531
1972
Dec
1
Data on the 2 lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the
Canada
1972
1973
1974
LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
End of period
United
Kingdom
1
Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity of not more than 1 year from the date on which the
obligation was incurred by the foreigner.
NOTE.—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.
22. SHORT-TERM
Total
preceding date; figures on the second line are comparable with those shown for the following date.
NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A73
23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(End of period. Amounts outstanding; in millions of dollars)
Claims on foreigners
Liabilities to foreigners
June
Europe:
Austria
Belgium-Luxembourg
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe
Eastern Europe
Total
Canada
Latin America:
Argentina
Bahamas
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other L.A. republics
Neth. Antilles and Surinam
Other Latin America
Total
Asia:
China, People's Republic of (China
Mainland)
China, Rep. of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other Asia
Total
Africa:
Egypt
South Africa
Zaire
Other Africa
Total
Other countries:
Australia
All other
Total
International and regional
Grand total
1976
1975
Area and country
Dec.
Sept.
Mar.?
June?
June
Sept.
Mar.?
Dec.
18
341
8
14
150
276
21
156
154
13
13
75
53
167
22
963
60
5
38
14
299
9
14
148
151
19
173
115
20
4
82
29
130
25
992
76
8
31
6
296
12
10
204
153
25
126
164
23
3
70
25
159
14
926
91
6
33
13
233
12
7
157
229
29
117
171
22
3
52
24
213
20
836
115
7
26
13
132
22
87
287
346
69
300
135
41
32
324
74
113
28
1,555
32
16
154
2,570
2,548
2,338
2,346
2,286
3,761
4,238
4,522
4,975
5,339
283
299
295
316
370
1,954
2,102
2,127
2,264
2,222
35
361
127
15
12
33
297
116
13
14
36
277
96
14
17
41
376
91
11
16
42
330
90
15
19
71
27
16
3
45
67
60
145
81
19
19
2
56
69
76
142
82
24
23
3
100
71
35
138
92
17
24 .
2
163
72
58
214
71
13
25
3
183
93
55
131
63
631
350
55
51
1
328
128
50
5
171
182
13
159
54
686
389
40
48
1
323
103
50
5
158
166
12
192
58
667
409
36
49
1
359
92
41
4
175
160
12
301
48
883
475
27
47
1
331
86
37
4
154
172
7
292
43
1,150
462
46
57
1
334
103
39
4
183
186
10
437
983
936
914
1,178
1,070
2,187
2,225
2,362
2,563
3,054
6
100
30
21
87
62
273
43
17
6
844
2
101
29
22
104
45
279
63
15
8
908
6
97
18
7
137
29
296
69
14
18
1,031
5
111
24
9
137
23
308
54
18
18
995
8
124
28
10
134
27
292
62
18
12
1,030
32
125
85
39
147
60
1,250
178
91
24
462
45
152
85
48
137
63
1,269
207
93
21
532
65
164
111
39
169
54
1,141
265
99
22
550
35
100
67
60
193
42
1,168
107
106
20
643
23
215
105
51
191
52
1,175
129
117
19
688
1,490
1,575
1,720
1,702
1,745
2,494
2,651
2,678
2,539
2,766
34
65
9
215
34
79
9
219
37
100
6
248
30
112
7
354
22
88
12
406
15
104
17
228
15
78
22
273
22
93
28
297
22
78
28
249
28
86
30
278
323
341
391
503
528
364
388
440
377
422
37
18
52
21
55
17
47
18
32
20
99
39
79
48
101
39
96
36
99
56
127
140
132
155
1
1
1
12,271
12,850
13,958
*
*
*
*
*
15
131
24
114
311
319
56
380
139
48
39
315
100
220
31
1,781
24
19
170
55
73
73
65
51
138
257
267
276
219
246
1
*
5,961
6,040
6,006
6,330
6,296
10,899
11,731
16
133
39
91
300
357
33
382
172
41
44
408
62
242
27
1,908
36
14
219
17
116
35
36
372
307
41
408
181
58
45
517
80
207
26
2,294
30
18
186
June?
22
345
14
12
137
293
27
110
143
8
13
60
35
168
14
1,068
45
4
49
NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
1976
1975
17
173
30
138
378
361
47
337
151
52
22
430
84
270
31
2,603
28
14
171
Data exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.
INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976
A74
24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
Claims
Country or area
Total
liabilities
End of period
Total
United
Kingdom
Other
Europe
Canada
Brazil
Mexico
Other
Latin
America
Japan
Other
Asia
Africa
All
other
1971—Dec..
3,138
3,068
128
704
717
174
60
653
136
325
86
84
1972—Dec. i
3,540
3,603
3,312
3,666
163
191
715
745
775
1,141
184
187
60
64
658
703
156
133
406
378
87
86
109
38
1973—Mar..
June.
Sept..
Dec..
3,781
3,785
4,000
3,886
3,798
3,853
3,999
4,057
156
216
290
802
805
822
761
1,151
1,163
1,166
1,172
165
146
147
145
63
65
73
79
796
825
832
829
123
124
134
125
393
390
449
488
105
108
45
48
51
53
1974—Mar..
June.
Sept..
Dec. r
3,836
3,536
3,371
3,889
4,194
4,191
4,324
4,544
369
363
370
364
737
699
704
644
1,210
1,226
1,256
1,290
194
184
81
488
515
571
569
126
187
138
145
153
123
123
119
112
122
181
809
756
796
1,045
122
127
61
61
59
54
1975—Mar.rr
June r
Sept.r
Dec.
4,168
4,273
4,224
4,277
4,523
4,454
4,589
4,981
340
299
366
396
655
634
620
600
1,334
1,328
1,347
1,426
182
182
177
171
169
161
228
216
1,008
982
927
1,250
102
98
95
90
540
556
139
146
154
604
168
54
68
67
1976—Mar..5
June*
4,091
3,930
5,174
5,029
349
365
594
588
1,473
1,516
182
209
187
1,383
1,255
91
85
619
649
214
163
61
59
180
1
Data on the 2 lines shown for this data differ because of changes
in reporting coverage. Figures on the first line are comparable with those
164
108
115
608
61
shown for the preceding date; figures on the second line are comparable
with those shown for the following date.
25. OPEN MARKET RATES
(Per cent per annum)
Month
France
United Kingdom
Canada
Treasury Day-tobills,
day
3 months1 money 2
Treasury
Prime
bills,
bank
3 months
bills,
3 months
Germany,
Fed. Rep. of
Netherlands
Switzerland
Day-today
money
Clearing
banks'
deposit
rates
Day-today
money 3
Treasury
bills,
60-904
days
Day-today
moneys
Treasury
bills,
3 months
Day-today
money
Private
discount
rate
1973
1974....
1975
5.43
7.63
7.36
5.27
7.69
7.34
10.45
12.99
10.57
9.40
11.36
10.16
8.27
9.85
10.13
7.96
9.48
7.23
8.92
12.87
7.89
6.40
6.06
3.51
10.18
8.76
4.23
4.07
6.90
4.41
4.94
8.21
3.65
5.09
6.67
6.25
1975—Oct
Nov
Dec
8.28
8.44
8.59
7.92
8.29
8.66
11.38
11.21
10.88
11.42
11.10
10.82
9.88
11.34
9.61
6.93
7.00
7.00
6.53
6.74
6.42
3.13
3.13
3.13
3.27
3.36
3.84
4.22
4.67
4.88
4.35
4.19
4.34
5.50
5.50
5.50
1976—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
8.59
8.70
9.04
8.97
8.93
8.99
9.02
9.12
9.11
9.07
8.75
8.74
9.05
8.65
8.96
9.04
8.98
9.22
9.20
9.13
9.83
8.86
8.66
9.10
10.31
11.05
9.87
8.81
8.46
8.97
10.45
10.94
10.89
10.88
12.05
14.40
9.08
8.42
6.25
7.69
10.16
10.69
10.88
10.53
11.88
14.34
5.75
6.50
6.50
6.50
6.50
6.50
6.50
6.50
8.50
6.38
7.27
7.63
7.56
7.53
7.63
8.33
9.50
9.25
11.08
3.13
3.13
3.13
3.13
3.13
3.13
3.13
3.13
3.13
3.13
3.58
3.08
3.62
2.76
3.68
4.23
4.38
4.08
4.20
2.48
4.52
2.86
2.50
2.96
3.60
5.68
6.94
9.27
3.76
3.05
2.12
2.50
3.98
4.82
5.22
7.60
13.89
5.00
5.00
4.78
4.50
4.50
4.50
4.50
4.50
4.50
4.50
11.00
10.94
12.63
14.75
1 Based on average yield of weekly tenders during month.
2 Based on weekly averages of daily closing rates.
3 Rate shown is on private securities.
11.00
4
5
Rate in effect at end of month.
Monthly averages based on daily quotations.
NOTES
TO TABLES 19a AND 19b ON PAGES A-70 AND A-71, RESPECTIVELY:
1
Cayman Islands included beginning Aug. 1973.
For a given month, total assets may not equal total liabilities because
2 Total assets and total liabilities payable in U.S. dollars amounted to
some branches do not adjust the parent's equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
$53,520 million and $54,154 million, respectively, on August 31, 1976.
rates, which are used to convert foreign currency values into equivalent
NOTE.—Components may not add to totals due to rounding.
dollar values.
NOVEMBER 1976 • CENTRAL BANK AND EXCHANGE RATES
75
26. CENTRAL BANK RATES FOR DISCOUNTS A N D ADVANCES TO C O M M E R C I A L B A N K S
(Per cent per annum)
Rate as of Oct. 31, 1976
Rate as of Oct. 31, 1976
Country
Country
Per
cent
Month
effective
Month
effective
Per
cent
Argentina
Austria
Belgium
Brazil
18.0
4.0
9.0
28.0
Feb.
June
Aug.
May
1972
1976
1976
1976
Italy
Japan
Mexico
Netherlands....
15.0
6.5
4.5
7.0
Oct.
Oct.
June
Aug.
1976
1975
1942
1976
Canada
Denmark
France
Germany, Fed. Rep. of,
9.5
11 .0
10.5
3.5
Mar.
Oct.
Sept.
Sept.
1976
1976
1976
1975
Norway
Sweden
Switzerland
United Kingdom
Venezuela
6.0
6.0
2.0
15.0
5.0
Sept.
June
June
Oct.
Oct.
1976
1976
1976
1976
1970
NOTE.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
govt, securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts
the largest proportion of its credit operations. Other rates for some of
these countries follow:
Argentina—3 and 5 per cent for certain rural and industrial paper, depending on type of transaction;
Brazil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;
Japan—Penalty rates (exceeding the basic rate shown) for borrowings
from the central bank in excess of an individual bank's quota;
United Kingdom—The bank's minimum lending rate, which is the
average rate of discount for Treasury bills established at the most recent
tender plus one-half per cent rounded to the nearest one-quarter per cent
above;
Venezuela—2 per cent for rediscounts of certain agricultural paper, 4Vi
per cent for advances against government bonds, and 5 Vi per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.
27. FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
France
(franc)
Germany
(deutsche
mark)
India
(rupee)
Ireland
(pound)
Italy
(lira)
Australia
(dollar)
Austria
(schilling)
Belgium
(franc)
Canada
(dollar)
Denmark
(krone)
119.23
141.94
143.89
130.77
4.3228
5.1649
5.3564
5.7467
2.2716
2.5761
2.5713
2.7253
100.937
99.977
102.257
98.297
14.384
16.603
16.442
17.437
19.825
22.536
20.805
23.354
31.364
37.758
38.723
40.729
13.246
12.071
12.460
11.926
250.08
245.10
234.03
222.16
.17132
.17192
.15372
.15328
126.26
5.4586
5.4535
5.3986
2.5662
2.5618
2.5311
97.557
98.631
98.627
16.601
126.26
125.38
16.564
16.253
22.694
22.684
22.428
38.737
38.619
38.144
11.244
11.238
11.134
205.68
204.84
202.21
.14745
.14721
.14645
125.65
125.85
124.79
123.72
123.37
122.75
123.59
124.18
124.25
123.40
5.4300
5.4628
5.4383
5.4964
5.4535
5.4136
5.4500
5.5645
5.6567
5.7960
2.5443
2.5554
2.5480
2.5667
2.5517
2.5220
2.5182
2.5632
2.6046
2.6822
99.359
100.652
101.431
16.231
16.278
16.273
16.553
16.487
16.314
16.225
16.448
16.694
16.968
22.339
22.351
21.657
21.411
21.272
21.109
20.651
20.131
20.334
20.072
38.425
39.034
39.064
39.402
39.035
38.797
38.842
39.538
40.169
41.165
11.178
11.186
11.157
11.123
11.080
10.980
11.205
11.143
11.036
11.243
202.86
202.62
194.28
184.63
180.79
176.40
178.50
178.28
172.72
163.77
.14245
.13021
.12113
.11371
.11676
.11780
.11943
.11936
.11837
.11684
Malaysia
(ringgit)
Mexico
(peso)
101.668
102.02
102.71
102.86
101.49
102.56
102.81
Netherlands
(guilder)
New
Zealand
(dollar)
Norway
(krone)
Portugal
(escudo)
South
Africa
(rand)
Spain
(peseta)
Sweden
(krona)
Switzerland
(franc)
35.610
40.988
41.682
41.753
8.0000
8.0000
8.0000
8.0000
31.153
35.977
37.267
39.632
119.35
136.04
140.02
15.180
17.406
18.119
19.180
3.7023
4.1080
3.9506
3.9286
129.43
143.88
146.98
136.47
1.5559
1.7178
1.7337
1.7424
21.022
22.970
22.563
24.141
26.193
31.700
33.688
38.743
38.931
38.929
38.670
8.0000
8.0000
8.0000
37.658
37.638
37.234
104.74
104.75
103.77
18.089
3.7359
3.7318
3.6836
114.84
114.69
114.75
1.6883
1.6869
1.6765
22.769
22.788
22.685
37.555
37.683
37.970
38.696
38.998
39.047
39.032
39.079
39.148
39.589
40.077
39.753
39.575
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
5.0286
4.8535
37.429
37.529
37.149
37.215
36.811
36.524
36.643
37.393
38.390
39.265
104.06
104.25
102.42
100.19
99.33
98.09
99.05
99.66
98.87
96.484
17.992
18.098
18.022
3.6562
3.6394
3.4987
3.3759
3.3195
3.2145
3.1810
3.1982
3.2062
3.1920
114.80
114.79
114.83
114.84
114.85
114.94
114.83
114.84
114.77
114.85
1.6751
1.5523
1.4947
1.4864
1.4788
1.4724
1.4685
1.4651
1.4721
1.4675
22.831
22.861
22.702
22.709
22.653
22.475
22.379
22.660
22.998
23.511
38.418
38.912
38.980
39.531
40.205
40.484
40.242
40.302
40.431
40.876
121.16
18.116
17.988
18.201
18.184
18.020
17.899
18.150
18.427
18.812
NOTE.—Averages of certified noon buying rates in New York for cable
transfers. For description of rates and back data, see "International
Finance," Section 15 of the Board's Banking and Monetary Statistics,
1941-1970.
>
OS
Board of Governors of the Federal Reserve System
STEPHEN S. GARDNER, Vice Chairman
ARTHUR F. BURNS, Chairman
PHILIP E. COLDWELL
HENRY C. WALLICH
OFFICE
OFFICE OF B O A R D
OF
STAFF DIRECTOR
FOR
DENKLER,
DIRECTOR
KENNETH
GRIMWOOD,
and Program
Contingency
Assistant
for
Director
Director
Planning
W I L L I A M W . L A Y T O N , Director
of Equal
Employment
Opportunity
B R E N T O N C . L E A V I T T , Program Director
for
Banking
Structure
JAY P A U L
Board
FRANK O ' B R I E N , JR.,
Special Assistant
to the
Board
D O N A L D J. W I N N ,
MONETARY
Special Assistant
to the
AXILROD,
ARTHUR L . BROIDA,
Board
DIVISION OF RESEARCH A N D
LEGAL
DIVISION
JOHN D . H A W K E , JR.,
BALDWIN B .
DIVISION
OF FEDERAL
EXAMINATIONS
RESERVE
A N D
BUDGETS
TUTTLE,
General Counsel
Deputy General
Counsel
ROBERT E . M A N N I O N ,
Assistant
General
Counsel
Director
Associate
Director
C L Y D E H . F A R N S W O R T H , J R . , Assistant
Director
P . D . R I N G , Assistant
Director
WILLIAM H .
ALBERT R .
WALLACE,
HAMILTON,
Assistant General Counsel
Assistant General Counsel
C H A R L E S R . M C N E I L L , Assistant
to the
General Counsel
ALLEN L. RAIKEN,
GARY M .
WELSH,
STATISTICS
Director
Associate
Director
JAMES L . K I C H L I N E , Associate
Director
JOSEPH S . Z E I S E L , Associate
Director
EDWARD C. ETTIN,
Adviser
ELEANOR J. STOCKWELL,
Adviser
J A M E S B . E C K E R T , Associate
Adviser
F J O H N J . M I N G O , Associate
Adviser
J . C O R T L A N D G . P E R E T , Associate
Adviser
H E L M U T F . W E N D E L , Associate
Adviser
J A M E S R . W E T Z E L , Associate
Adviser
J A M E S M . B R U N D Y , Assistant
Adviser
J A R E D J . E N Z L E R , Assistant
Adviser
R O B E R T M . F I S H E R , Assistant
Adviser
S T E P H E N P . T A Y L O R , Assistant
Adviser
L E V O N H . G A R A B E D I A N , Assistant
Director
LYLE E . GRAMLEY,
JOHN H .
BANK
POLICY
Staff Director
Deputy Staff Director
M U R R A Y A L T M A N N , Assistant
to the Board
P E T E R M . K E I R , Assistant
to the Board
S T A N L E Y J . S I G E L , Assistant
to the Board
N O R M A N D R . V . B E R N A R D , Special Assistant
to
the Board
STEPHEN H .
Assistant to the Board
A . G U E N T H E R , Assistant to the Board
B R E N N E M A N , Special Assistant
to the
JOSEPH R . C O Y N E ,
Director
STAFF
FOR
Counsel to the
Chairman
Staff Director
Deputy Staff
ROBERT J. L A W R E N C E ,
GORDON B .
OFFICE OF
MEMBERS
MANAGEMENT
THOMAS J. O ' C O N N E L L ,
JOHN M .
DAVID M . LILLY
J. CHARLES PARTEE
PHILIP C. JACKSON, JR.
KALCHBRENNER,
DIVISION
DIVISION
OF
FEDERAL
RESERVE
BANK
JANET O .
Director
W A L T E R A . A L T H A U S E N , Assistant
Director
B R I A N M . C A R E Y , Assistant
Director
H A R R Y A . G U I N T E R , Assistant
Director
JAMES R .
OF CONSUMER
OPERATIONS
KUDLINSKI,
KLUCKMAN,
OFFICE OF THE
OF DATA
*RICHARD D .
Director
B E A R D S L E Y , Associate
Director
B L A C K , Assistant
Director
C U M M I N S , Assistant
Director
Z E M E L , Assistant
Director
CHARLES L .
BRUCE M .
UYLESS D .
GLENN L.
ROBERT J.
SECRETARY
ALLISON,
GRIFFITH L . G A R W O O D ,
PROCESSING
DIVISION OF INTERNATIONAL
FINANCE
Acting
Director
Adviser
R E E D J. IRVINE,
Adviser
IHELEN B. JUNZ,
Adviser
SAMUEL PIZER,
Adviser
G E O R G E B . H E N R Y , Associate
Adviser
C H A R L E S J . S I E G M A N , Associate
Adviser
E D W I N M . T R U M A N , Associate
Adviser
JOHN E . REYNOLDS,
Director
Secretary
Deputy
Secretary
A B R A H A M S O N , Assistant
Secretary
THEODORE E .
DIVISION
Director
Assistant
HART,
JERAULD C .
AFFAIRS
ROBERT F . GEMMILL,
HAMPTON,
DIVISION
OF
SUPERVISION
BANKING
AND
REGULATION
tOn leave of absence.
Director
Associate
Director
J O H N E . R Y A N , Associate
Director
W I L L I A M W . W I L E S , Associate
Director
P E T E R E . B A R N A , Assistant
Director
FREDERICK R . D A H L , Assistant
Director
JACK M . E G E R T S O N , Assistant
Director
J O H N N . L Y O N , Assistant
Director
J O H N T . M C C L I N T O C K , Assistant
Director
T H O M A S E . M E A D , Assistant
Director
R O B E R T S . P L O T K I N , Assistant
Director
T H O M A S A . S I D M A N , Assistant
Director
BRENTON C . LEAVITT,
DIVISION
DAVID L.
OF
PERSONNEL
SHANNON,
CHARLES W .
RALPH H .
WOOD,
OFFICE OF THE
JOHN KAKALEC,
Director
Assistant
Director
CONTROLLER
Controller
Assistant
TYLER E . WILLIAMS, JR.,
DIVISION OF ADMINISTRATIVE
WALTER W .
DONALD E.
JOHN D .
Controller
SERVICES
Director
Assistant
Director
Assistant
Director
GELDER,
KREIMANN,
ANDERSON,
SMITH,
* On loan from the Federal Reserve Bank of Chicago.
>
78
Federal Open Market Committee
PAUL A . VOLCKER, Vice Chairman
ARTHUR F . BURNS, Chairman
STEPHEN S. GARDNER
PHILIP C . JACKSON, JR.
MONROE KIMBREL
DAVID M . LILLY
JOHN J. BALLES
ROBERT P . BLACK
PHILIP E . COLDWELL
Economist
Business)
H A R R Y B R A N D T , Associate
Economist
R I C H A R D G . D A V I S , Associate
Economist
W I L L I A M J . H O C T E R , Associate
Economist
M I C H A E L W . K E R A N , Associate
Economist
JAMES L . K I C H L I N E , Associate
Economist
JAMES P A R T H E M O S , Associate
Economist
J O H N E . R E Y N O L D S , Associate
Economist
JOSEPH S . Z E I S E L , Associate
Economist
Secretary
Deputy
Secretary
BERNARD,
Assistant
LYLE E . GRAMLEY,
ARTHUR L . BROIDA,
(Domestic
MURRAY ALTMANN,
NORMAND R . V .
Secretary
General Counsel
Deputy General Counsel
T U T T L E , Assistant
General
THOMAS J. O ' C O N N E L L ,
EDWARD G . G U Y ,
BALDWIN B .
Counsel
STEPHEN H .
AXILROD,
(Domestic
Economist
Finance)
A L A N R . HOLMES,
PETER D .
J. CHARLES PARTEE
HENRY C . WALLICH
WILLIS J. WINN
Manager, System Open Market
Account
Deputy Manager for Domestic
Operations
Deputy Manager for Foreign
Operations
STERNLIGHT,
SCOTT E . PARDEE,
Federal Advisory Council
E L L M O R E C . P A T T E R S O N , S E C O N D FEDERAL RESERVE DISTRICT,
W I L L I A M F . M U R R A Y , S E V E N T H FEDERAL RESERVE DISTRICT,
RICHARD D .
RESERVE DISTRICT
DONALD R . GRANGAARD,
JAMES F . B O D I N E , T H I R D F E D E R A L
RESERVE DISTRICT
BROCK W E I R , FOURTH FEDERAL
EUGENE H .
B E N F . LOVE, ELEVENTH
RESERVE DISTRICT
FEDERAL
RESERVE DISTRICT
SIXTH
GILBERT F . B R A D L E Y ,
FEDERAL RESERVE DISTRICT
A D A M S , T E N T H FEDERAL
RESERVE DISTRICT
J O H N H . L U M P K I N , FIFTH F E D E R A L
MERRIGAN,
NINTH
FEDERAL RESERVE DISTRICT
RESERVE DISTRICT
LAWRENCE A .
President
President
E D W I N S . J O N E S , E I G H T H FEDERAL
H I L L , FIRST F E D E R A L
RESERVE DISTRICT
M.
Vice
TWELFTH
FEDERAL RESERVE DISTRICT
HERBERT V .
PROCHNOW,
WILLIAM J. KORSVIK,
Associate
Secretary
Secretary
79
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Louis W. Cabot
Robert M. Solow
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Frank R. Milliken
Robert H. Knight
Rupert Warren
Paul A. Volcker
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
John R. Coleman
John W. Eckman
David P. Eastburn
Mark H. Willes
CLEVELAND*
44101
Willis J. Winn
Walter H. MacDonald
Cincinnati
Pittsburgh
45201
15230
Horace A. Shepard
Robert E. Kirby
Lawrence H. Rogers, II
G. Jackson Tankersley
RICHMOND*
23261
E. Angus Powell
E. Craig Wall, Sr.
James G. Harlow
Charles W. DeBell
Robert P. Black
George C. Rankin
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center.. 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35202
32203
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40201
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77001
78295
SAN FRANCISCO ... .94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84110
98124
Vice President
in charge of branch
Robert E. Showalter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg
H. G. Pattillo
Clifford M. Kirtland, Jr.
Harold B. Blach, Jr.
Egbert R. Beall
Castle W. Jordan
James W. Long
Edwin J. Caplan
Monroe Kimbrel
Kyle K. Fossum
Peter B. Clark
Robert H. Strotz
Jordan B. Tatter
Robert P. Mayo
Daniel M. Doyle
Edward J. Schnuck
William B. Walton
Ronald W. Bailey
William H. Stroube
Robert E. Healy
Lawrence K. Roos
Eugene A. Leonard
James P. McFarland
Stephen F. Keating
James C. Garlington
Bruce K. MacLaury
Clement A. Van Nice
Robert T. Person
Harold W. Andersen
Maurice B. Mitchell
James G. Harlow, Jr.
Durward B. Varner
Roger Guffey
John T. Boy sen
John Lawrence
Charles T. Beaird
J. Luther Davis
Thomas J. Barlow
Margaret Scarbrough Wilson
Ernest T. Baughman
T. W. Plant
O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney
John J. Balles
John B. Williams
Hiram J. Honea
Edward C. Rainey
W. M. Davis
Jeffrey J. Wells
George C. Guynn
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
John D. Johnson
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Fredric W. Reed
James L. Cauthen
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
James J. Curran
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A 80
Federal Reserve Board Publications
Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where
a charge is indicated, remittance should accompany
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INDUSTRIAL P R O D U C T I O N — 1 9 7 1
FEDERAL
RESERVE
SYSTEM—PURPOSES
AND
FUNCTIONS. 1974. 125pp. $1.00each; lOormore
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T H E PERFORMANCE OF B A N K
A N N U A L REPORT
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AND
(Reprint of
BANKING
AND
MONETARY STATISTICS,
1914-1941.
Part 1 only) 1 9 7 6 . 6 8 2 pp. $ 5 . 0 0 .
MONETARY STATISTICS,
1941-1970.
EDITION.
1972.
383
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1967. 29 pp. $.25 each; 10 or more to one address,
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B A N K CREDIT-CARD AND CHECK-CREDIT PLANS.
1968.
102 pp. $1.00 each; 10 or more to one address,
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SURVEY OF FINANCIAL
SUMERS. 1966. 166
CHARACTERISTICS
OF
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SURVEY OF CHANGES IN FAMILY FINANCES. 1 9 6 8 .
1976. 1,168 pp. $15.00.
1970-75. 1976. 339 pp.
$4.00 per copy for each paid subscription to Federal Reserve Bulletin. All others, $5.00 each.
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A N N U A L STATISTICAL DIGEST,
321
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REPORT OF THE JOINT TREASURY-FEDERAL RESERVE
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U . S . GOVERNMENT SECURITIES
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JOINT TREASURY-FEDERAL RESERVE STUDY OF THE
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OPEN MARKET POLICIES AND OPERATING PROCED U R E S — S T A F F STUDIES. 1971. 218 pp. $2.00
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REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT
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FEDERAL RESERVE SYSTEM
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T H E FEDERAL F U N D S MARKET. 1 9 5 9 . ILL p p . $ 1 . 0 0
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TRADING IN FEDERAL F U N D S .
1965.
116 pp.
$1.00
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FEDERAL RESERVE STAFF S T U D Y : W A Y S TO MODERATE
FLUCTUATIONS IN HOUSING CONSTRUCTION. 1 9 7 2 .
487 pp. $4.00 each; 10 or more to one address,
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LENDING FUNCTIONS OF THE FEDERAL
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B A N K S . 1973. 271 pp. $3.50 each; 10 or more
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INTRODUCTION TO FLOW OF F U N D S . 1 9 7 5 . 6 4 p p .
$.50
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IMPROVED F U N D AVAILABILITY AT RURAL B A N K S ( R e -
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Banking Problems). 1975. 133 pp. $1.00 each; 10
or more to one address, $.85 each.
Federal Reserve Board Publications
(Report of the
Advisory Committee on Monetary Statistics).
1976. 43 pp. $1.00 each; 10 or more to one
address, $.85 each.
IMPROVING THE MONETARY AGGREGATES
STAFF ECONOMIC STUDIES
Studies and papers on economic and financial subjects
that are of general interest in the field of economic
research.
SUMMARIES O N L Y PRINTED IN THE BULLETIN
(Limited supply of mimeographed copies of full text
available upon request for single copies.)
HOUSEHOLD-SECTOR ECONOMIC ACCOUNTS,
by David
F. Seiders. Jan. 1975. 84 pp.
THE
PERFORMANCE OF INDIVIDUAL B A N K HOLDING
COMPANIES, by Arthur G. Fraas. Aug. 1975.
27 pp.
T H E GROWTH OF MULTIBANK HOLDING
COMPANIES:
1956-73, by Gregory E. Boczar. Apr. 1976. 27
pp.
EXTENDING MERGER ANALYSIS B E Y O N D THE SINGLEMARKET FRAMEWORK, by Stephen A . Rhoades.
May 1 9 7 6 . 2 5 pp.
SEASONAL ADJUSTMENT OF M X — C U R R E N T L Y P U B LISHED AND ALTERNATIVE M E T H O D S , by Edward
R. Fry. May 1 9 7 6 . 2 2 pp.
EFFECTS OF N O W ACCOUNTS ON COSTS AND EARNINGS
OF COMMERCIAL B A N K S IN 1 9 7 4 - 7 5 , by John D .
Paulus. Sept. 1976. 49 pp.
B A N K DEBITS, DEPOSITS, AND DEPOSIT T U R N O V E R —
REVISED SERIES. 7 / 7 2 .
YIELDS ON N E W L Y ISSUED CORPORATE B O N D S . 9 / 7 2 .
RECENT ACTIVITIES OF FOREIGN BRANCHES OF U . S .
B A N K S . 10/72.
REVISION OF CONSUMER CREDIT STATISTICS. 10/72.
O N E - B A N K HOLDING COMPANIES BEFORE THE 1 9 7 0
AMENDMENTS. 12/72.
YIELDS ON RECENTLY OFFERED CORPORATE B O N D S .
5/73.
CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMERCIAL B A N K S . 9 / 7 3 .
RATES ON CONSUMER INSTALMENT LOANS. 9 / 7 3 .
N E W SERIES FOR LARGE MANUFACTURING CORPORATIONS. 10/73.
U . S . ENERGY SUPPLIES AND U S E S , Staff Economic
Study by Clayton Gehman. 12/73.
NUMERICAL SPECIFICATIONS OF FINANCIAL VARIABLES
AND THEIR ROLE IN MONETARY POLICY. 5 / 7 4 .
INFLATION AND STAGNATION IN MAJOR FOREIGN I N DUSTRIAL COUNTRIES. 10/74.
T H E STRUCTURE OF MARGIN CREDIT. 4 / 7 5 .
N E W STATISTICAL SERIES ON L O A N COMMITMENTS AT
SELECTED LARGE COMMERCIAL B A N K S . 4 / 7 5 .
RECENT TRENDS IN FEDERAL B U D G E T POLICY. 7 / 7 5 .
B A N K I N G AND MONETARY STATISTICS, 1974. Selected
series of banking and monetary statistics for 1974
only. 2/75, 3/75, 4/75, and 7/75.
RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL
MARKETS. 10/75.
M I N N I E :
A
SMALL
VERSION
OF
THE
M I T - P E N N - S S R C ECONOMETRIC M O D E L , Staff
PRINTED IN F U L L IN THE BULLETIN
Staff Economic Studies shown in list below.
REPRINTS
(Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)
SEASONAL FACTORS AFFECTING B A N K RESERVES. 2 / 5 8 .
MEASURES OF MEMBER B A N K RESERVES. 7 / 6 3 .
RESEARCH ON B A N K I N G STRUCTURE AND PERFORMANCE, Staff Economic Study by Tynan Smith.
4/66.
A
REVISED
INDEX
OF MANUFACTURING
CAPACITY,
Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 11/66.
U.S.
INTERNATIONAL
TRANSACTIONS:
TRENDS
IN
1960-67. 4/68.
MEASURES OF SECURITY CREDIT. 1 2 / 7 0 .
REVISED MEASURES OF MANUFACTURING CAPACITY
UTILIZATION. 1 0 / 7 1 .
REVISION OF B A N K CREDIT SERIES. 1 2 / 7 1 .
ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF
U . S . BANKS. 2 / 7 2 .
A 81
AN
Economic Study by Douglas Battenberg, Jared J.
Enzler, and Arthur M. Havenner. 11/75.
ASSESSMENT OF B A N K HOLDING COMPANIES, Staff
Economic Study by Robert J. Lawrence and
Samuel H. Talley. 1/76.
INDUSTRIAL ELECTRIC POWER U S E . 1 / 7 6 .
REVISION OF M O N E Y STOCK MEASURES. 2 / 7 6 .
SURVEY OF FINANCE COMPANIES, 1 9 7 5 . 3 / 7 6 .
CHANGING PATTERNS IN U . S . INTERNATIONAL TRANSACTIONS. 4 / 7 6 .
REVISED SERIES FOR MEMBER B A N K DEPOSITS A N D
AGGREGATE RESERVES. 4 / 7 6 .
B A N K HOLDING COMPANY FINANCIAL DEVELOPMENTS
IN 1975. 4/76.
CHANGES IN B A N K LENDING PRACTICES, 1 9 7 5 . 4 / 7 6 .
INDUSTRIAL PRODUCTION—1976 Revision. 6/76.
FEDERAL RESERVE OPERATIONS IN PAYMENT M E C H A NISMS: A SUMMARY. 6 / 7 6 .
CHANGES IN TIME A N D SAVINGS DEPOSITS AT COMMERCIAL B A N K S , January-April 1976. 10/76.
RECENT GROWTH IN ACTIVITIES OF U . S . OFFICES OF
FOREIGN B A N K S . 10/76.
N E W ESTIMATES OF CAPACITY UTILIZATION: M A N U FACTURING AND MATERIALS. 11/76.
82
Federal Reserve Bulletin • November 1976
Index to Statistical Tables
References are to pages A-2 through A-75 although the prefix " A " is omitted in this index
ACCEPTANCES, bankers, 9, 25, 27
Agricultural loans of commercial banks, 16, 18
Assets and liabilities (See also Foreigners):
Banks, by classes, 14, 16, 17, 18, 30
Federal Reserve Banks, 10
Nonfinancial corporations, current, 41
Automobiles:
Consumer instalment credit, 45, 46, 47
Production index, 48, 49
BANK credit proxy, 13
Bankers balances, 16, 17, 20
(See also Foreigners)
Banks for cooperatives, 37
Bonds (See also U.S. Govt, securities):
New issues, 37, 38, 39
Yields and prices, 28, 29
Branch banks:
Assets, foreign branches of U.S. banks, 70
Liabilities of U.S. banks to their foreign branches
and foreign branches of U.S. banks, 22, 71
Brokerage balances, 69
Business expenditures on new plant and equipment, 41
Business indexes, 50
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 50
Capital accounts:
Banks, by classes, 14, 17, 22
Federal Reserve Banks, 10
Central banks, 60, 75
Certificates of deposit, 22
Commercial and industrial loans:
Commercial banks, 13, 16
Weekly reporting banks, 18, 23
Commercial banks:
Assets and liabilities, 13, 14, 16, 17, 18
Consumer loans held, by type, 45, 46, 47
Deposits at, for payment of personal loans, 24
Loans sold outright, 25
Number, by classes, 14
Real estate mortgages held, by type of holder and
property, 42^44
Commercial paper, 23, 25, 27
Condition statements (See Assets and liabilities)
Construction, 50, 51
Consumer instalment credit, 45, 46, 47
Consumer price indexes, 50, 53
Consumption expenditures, 54, 55
Corporations:
Profits, taxes, and dividends, 41
Sales, revenue, profits, and dividends of large
manufacturing corporations, 40
Security issues, 38, 39
Security yields and prices, 28, 29
Cost of living (See Consumer price indexes)
Currency and coin, 3, 16
Currency in circulation, 3, 12
Customer credit, stock market, 29, 30
DEBITS to deposit accounts, 11
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 11, 13, 17
Banks, by classes, 14, 17, 20, 21
Ownership by individuals, partnerships, and corporations, 24
Subject to reserve requirements, 13
Turnover, 11
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 24
Banks, by classes, 14, 17, 20, 21, 30
Federal Reserve Banks, 10, 72
Subject to reserve requirements, 13
Discount rates at Federal Reserve Banks (See Interest
rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 40, 41
EMPLOYMENT, 50, 52
FARM mortgage loans, 42
Federal agency obligations, 9, 10, 11
Federal finance:
Receipts and outlays, 32, 33
Treasury operating balance, 32
Federal funds, 5, 16, 18, 21, 27
Federal home loan banks, 37
Federal Home Loan Mortgage Corporation, 42, 43
Federal Housing Administration, 42, 43, 44, 45
Federal intermediate credit banks, 37
Federal land banks, 37
Federal National Mortgage Assn., 37, 42, 43
Federal Reserve Banks:
Condition statement, 10
U.S. Govt, securities held, 2, 10, 11, 34, 35
Federal Reserve credit, 2, 4, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 37
Finance companies:
Loans, 18, 45, 46, 47
Paper, 25, 27
Financial institutions, loans to, 16, 18
Float, 2
Flow of funds, 56, 57
Foreign:
Currency operations, 10
Deposits in U.S. banks, 3, 10, 17, 21, 72
Exchange rates, 75
Trade, 59
Foreigners:
Claims on, 66, 67, 68, 72, 73, 74
Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74
GOLD:
Certificates, 10
Reserves of central banks and govts., 60
Stock, 2, 59
Government National Mortgage Assn., 42
Gross national product, 54, 55
HOUSING permits, 50
Housing starts, 51
83
References are to pages A-2 through A-75 although the prefix " A " is omitted in this index
INCOME, national and personal, 54, 55
Industrial production index, 48, 49, 50
Instalment loans, 45, 46, 47
Insurance companies, 31, 34, 35, 42, 44
Insured commercial banks, 14, 16, 17, 24
Interbank deposits, 14, 20
Interest rates:
Bond and stock yields, 28
Business loans of banks, 26
Federal Reserve Banks, 6
Foreign countries, 74, 75
Money market rates, 27
Mortgage yields, 43, 45
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 8
International capital transactions of U.S., 61-74
International institutions, 60-64, 66, 67-69, 73
Inventories, 54
Investment companies, issues and assets, 39
Investments (See also specific types of investments):
Banks, by classes, 14, 16, 19, 30
Commercial banks, 13
Federal Reserve Banks, 10, 11
Life insurance companies, 31
Savings and loan assns., 31
LABOR force, 52
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 14, 16, 18, 30
Commercial banks, 13, 14, 16, 18, 23, 25, 26
Federal Reserve Banks, 2, 4, 6, 10, 11
Insurance companies, 31, 44
Insured or guaranteed by U.S., 42, 43, 44, 45
Savings and loan assns., 31
MANUFACTURERS:
Capacity utilization, 50
Production index, 49, 50
Margin requirements, 8
Member banks:
Assets and liabilities, by classes, 14, 16, 17
Borrowings at Federal Reserve Banks, 4, 10
Number, by classes, 14
Reserve position, basic, 5
Reserve requirements, 7
Reserves and related items, 2, 4, 13
Mining, production index, 49
Mobile home shipments, 51
Money market rates (See Interest rates)
Money stock and related data, 12
Mortgages (See Real estate loans and Residential
mortgage loans)
Mutual funds (See Investment companies)
Mutual savings banks, 20, 30, 34, 42, 44
NATIONAL banks, 14, 24
National defense expenditures, 33
National income, 54, 55
Nonmember banks, 15, 16, 17, 24
OPEN market transactions, 9
PAYROLLS, manufacturing index, 50
Personal income, 55
Prices:
Consumer and wholesale commodity, 50, 53
Security, 29
Prime rate, commercial banks, 26
Production, 48, 49, 50
Profits, corporate, 40, 41
REAL estate loans:
Banks, by classes, 16, 18, 30, 42
Mortgage yields, 43, 45
Type of holder and property mortgaged, 42-44
Reserve position, basic, member banks, 5
Reserve requirements, member banks, 7
Reserves:
Central banks and govts., 60
Commercial banks, 17, 20, 22
Federal Reserve Banks, 10
Member banks, 3, 4, 13, 17
U.S. reserve assets, 59
Residential mortgage loans, 43, 44, 45
Retail credit, 46, 47
Retail sales, 50
SALES, revenue, profits, and dividends of large manufacturing corporations, 40
Saving:
Flow of funds series, 56, 57
National income series, 54, 55
Savings and loan assns., 31, 35, 42, 44
Savings deposits (See Time deposits)
Savings institutions, principal assets, 30, 31
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 37
International transactions, 68, 69
New issues, 37, 38, 39
Yields and prices, 28, 29
Special Drawing Rights, 2, 10, 58, 59
State and local govts.:
Deposits, 17, 20
Holdings of U.S. Govt, securities, 34, 35
New security issues, 37, 38
Ownership of securities of, 16, 19, 30
Yields and prices of securities, 28, 29
State member banks, 15, 24
Stock market credit, 29, 30
Stocks (See also Securities):
New issues, 38, 39
Yields and prices, 28, 29
TAX receipts, Federal, 33
Time deposits, 8, 13, 14, 17, 21, 22
Treasury currency, Treasury cash, 2, 3
Treasury deposits, 3, 10, 32
Treasury operating balance, 32
UNEMPLOYMENT, 52
U.S. balance of payments, 58
U.S. Govt, balances:
Commercial bank holdings, 17, 20
Member bank holdings, 13
Treasury deposits at Reserve Banks, 3, 10, 32
U.S. Govt, securities:
Bank holdings, 14, 16, 19, 30, 34, 35
Dealer transactions, positions, and financing, 36
Federal Reserve Bank holdings, 2, 10, 11, 34, 35
Foreign and international holdings, 10, 66, 68, 72
International transactions, 66, 68
New issues, gross proceeds, 38
Open market transactions, 9
Outstanding, by type of security, 34, 35
Ownership, 34, 35
Yields and prices, 28, 29
Utilities, production index, 49
VETERANS Administration, 43, 44
WEEKLY reporting banks, 18-22
YIELDS (See Interest rates)
84
Federal Reserve Bulletin • November 1976
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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LEGEND
Q
Boundaries of Federal Reserve Districts
©
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Board of Governors of the Federal
Reserve System
Federal Reserve Bank Facility
Guide to
Tabular Presentation and Statistical Releases
SYMBOLS AND
ABBREVIATIONS
Estimated
e
Corrected
c
Preliminary
P
Revised
r
Revised preliminary
rp
I, II,
III, IV Quarters
Not elsewhere classified
n.e.c.
Annual rate
A.R.
Monthly (or quarterly) figures adjusted for
S.A.
seasonal variation
GENERAL
N.S.A.
IPC
SMSA
A
L
S
U
*
Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Sources of funds
Uses of funds
Amounts insignificant in terms of the particular unit (e.g., less than 500,000 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed
INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
A heavy vertical rule is used in the following instances: (1) to the right (to the left) of a total when
the components shown to the right (left) of it add to
that total (totals separated by ordinary rules include
more components than those shown), (2) to the right
(to the left) of items that are not part of a balance sheet,
(3) to the left of memorandum items.
44
U.S. Govt, securities" may include guaranteed
issues of U.S. Govt, agencies (the flow of funds figures
LIST PUBLISHED SEMIANNUALLY,
also include not fully guaranteed issues) as well as direct
obligations of the Treasury. "State and local govt."
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.
The footnotes labeled N O T E (which always appear
last) provide (1) the source or sources of data that do
not originate in the System; (2) notice when figures
are estimates; and (3) information on other characteristics of the data.
WITH LATEST BULLETIN
Anticipated schedule of release dates for individual releases
REFERENCE
Issue
Page
June 1976
A-82
@FedFRASER