Full text of Federal Reserve Bulletin : November 1978
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NOVEMBER 1978
FEDERAL RESERVE
BULLETIN
Domestic Financial Developments in the Third Quarter of 1978
Survey of Time and Savings Deposits, July 1978
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(Stamps and coupons are not accepted.)
N U M B E R 11 •
V O L U M E 64 •
N O V E M B E R 1978
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler
Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman
Michael J. Prell, Staff
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 Mendelle T. Berenson.
Table of Contents
829
DOMESTIC F I N A N C I A L
the midpoints of the indicated ranges, the
objective for the funds rate was to be
raised or lowered in an orderly fashion
within a range of 8x/4 to 8% per cent. It
was also agreed that in assessing the behavior of the aggregates, the Manager
should give approximately equal weight to
the behavior of M - l and M-2.
DEVELOPMENTS
IN THE T H I R D Q U A R T E R OF
1978
The Board's quarterly report to the Congress states that growth in M-l decelerated
somewhat in the third quarter, reflecting
a moderation in the pace of real economic
activity and the accumulating impact of
more restrictive credit market conditions.
837
S U R V E Y OF TIME A N D SAVINGS DEPOSITS
AT COMMERCIAL B A N K S , JULY
859
S T A T E M E N T TO CONGRESS
Chairman G. William Miller reported that
monetary policy is being directed forcefully toward helping to resolve the urgent
problems of continuing domestic inflation
and a sharp decline in the value of the
dollar on foreign exchange markets, before the Committee on Banking, Finance
and Urban Affairs, U.S. Senate, November 16, 1978.
848
DEPARTMENT
Amendment to Regulation F; various rules
and interpretations; bank holding company
and bank merger orders; and pending
cases.
Total time and savings deposits at insured
commercial banks expanded 2l/i per cent
over the most recent survey period.
843
LAW
1978
RECORD OF POLICY ACTIONS OF THE
FEDERAL O P E N M A R K E T COMMITTEE
At the meeting on September 19, 1978,
the Committee decided that ranges of
tolerance for the annual rates of growth in
M-l and M-2 over the September-October
period should be 5 to 9 per cent and 6V2
to IOV2 percent, respectively. With regard
to the Federal funds rate, the Manager was
instructed to seek a rate of around 8V2 per
cent early in the period until the next
regular meeting. Subsequently, if the 2month growth rates of M-l and M-2 appeared to be significantly above or below
914
MEMBERSHIP OF THE B O A R D OF
GOVERNORS OF THE
FEDERAL RESERVE S Y S T E M ,
1913-78
List of appointive and ex officio members.
917
ANNOUNCEMENTS
Measures undertaken by the Treasury
Department and the Federal Reserve to
strengthen the dollar and thereby to
counter continuing domestic inflationary
pressures.
Cancellation of Regulation E (Purchase of
Warrants) under a program to clarify and
simplify all Board regulations.
Resignation of Philip C. Jackson, Jr., as
a member of the Board of Governors.
Death of Vice Chairman Stephen S.
Gardner.
Exemption from the Truth in Lending Act
and its implementing Regulation Z of certain credit transactions in Massachusetts.
Approval of technical changes affecting
registration of bank holding companies or
applications for their expansion.
Changes proposed to broaden the scope of
the regulation on Equal Credit Opportunity.
Adoption of a uniform examination procedure for evaluating and commenting on
"country risk" factors involved in international lending by U.S. banks.
A joint system for rating data processing
centers adopted by Federal bank and thrift
institution regulators.
Revised survey of trust assets at regulated
institutions to be conducted on an annual
basis.
Changes in Board staff.
Six State banks admitted to membership
in the Federal Reserve System.
925
INDUSTRIAL PRODUCTION
Output increased an estimated 0.5 per cent
in October.
A1
FINANCIAL A N D BUSINESS STATISTICS
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A69
G U I D E TO TABULAR
PRESENTATION
A N D STATISTICAL RELEASES
A70
BOARD OF GOVERNORS A N D STAFF
Proposed regulatory revisions establishing
uniform standards for bank recordkeeping,
confirmation, and other procedures in
making securities transactions for trust
department and other bank customers.
A72
O P E N M A R K E T COMMITTEE A N D
Publication of The Bank Holding Company Movement to 1978: A Compendium
and of the pamphlet, "How to File a
Consumer Credit Complaint."
A74
FEDERAL RESERVE BOARD PUBLICATIONS
A76
INDEX TO STATISTICAL TABLES
A78
M A P OF FEDERAL RESERVE SYSTEM
STAFF; ADVISORY COUNCILS
A73
FEDERAL RESERVE B A N K S ,
B R A N C H E S , A N D OFFICES
Domestic Financial Developments in
the Third Quarter of 1978
ters; inflows of the interest-bearing components
of these measures were augmented in part by
the popularity of the 6-month "money market"
certificate introduced by depositary institutions
in June.
In an effort to restrain the excessive rise in
the money stock and to help stabilize conditions
in international exchange markets in the third
quarter, the Federal Reserve moved steadily
toward a less accommodative posture in providing reserves to the banking system through open
market operations. The Federal funds rate
climbed a further 1 per cent to 8% per cent over
the quarter. In addition, the discount rate was
raised 75 basis points in two steps, reaching 8
per cent. Most short-term interest rates increased by similar amounts, and commercial
banks boosted the prime lending rate to 10 per
cent in early October.
With excessive strength in money growth
This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in domestic
financial markets during the summer and early
fall.
Growth in M-l decelerated somewhat in the
third quarter of 1978, reflecting a moderation
in the pace of real economic activity and the
accumulating impact of more restrictive credit
market conditions. Nominal income and expenditure continued to rise rapidly, however,
and growth in the narrowly defined money stock
remained at a rate above that implied by the
longer-run range established by the Federal
Open Market Committee for the year ahead—in
this case, for the four-quarter period ending in
the second quarter of 1979. Meanwhile, the
broader monetary aggregates, M-2 and M-3,
expanded more rapidly than in previous quar-
Interest rates
NOTES:
Per cent per annum
LONG-TERM
Aaa utility ^
New issue * Conventional
State and local
government
1976
1977
1978
1976
1977
1978
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.
830
Federal Reserve Bulletin • November 1978
continuing and conditions in foreign exchange
markets becoming increasingly unsettled in October, the Federal Reserve raised the discount
rate to SV2 per cent in the middle of the month
and by a full point—to 9V2 per cent—on November 1. On the latter date, a 2 percentage
point supplemental reserve requirement on
large-denomination time deposits ($100,000 or
more) also was announced.
In contrast to short-term yields, most longterm interest rates moved lower in late July and
early August, when investors apparently interpreted the evidence of a slowing in economic
growth from the rapid second-quarter pace as
indicating that interest rates might be near their
peaks for the current expansion. The bulk of
this decline in long-term interest rates was reversed in late September and early October,
however, as short-term yields came under significant upward pressure, price indexes rose
appreciably, and advance indicators of eco-
nomic activity displayed continued vigor. These
factors also contributed to a reversal of the rise
in stock prices that had taken place through most
of the third quarter. The sharp downward
movement in stock market quotations in late
September and October more than erased gains
made since June.
Domestic nonfinancial sectors raised about
$345 billion, at a seasonally adjusted annual
rate, in U.S. credit markets in the third quarter,
little changed from the aggregate level of borrowing in the previous quarter. In the household
sector, the volume of mortgage financing continued to increase, although remaining well
below the record amounts advanced in the second half of 1977, while consumer instalment
credit expanded somewhat less rapidly. The
growth in business borrowing moderated in the
third quarter, as slower expansion of bank lending to business was only partially offset by a
larger amount of bond and stock financing. In
Changes in selected monetary aggregates 1
Seasonally adjusted annual rate of change, per cent
1977
Item
Member bank reserves
Total
Nonborrowed
1975
1976
1978
1977
Q3
Q4
Q1
Q2
Q3
2
-.3
3.2
1.0
1.2
5.2
2.7
7.3
1.7
6.1
3.4
8.5
14.5
6.3
.3
8.4
6.2
4.6
8.4
6.6
9.7
5.8
10.9
12.8
7.1
10.3
7.9
9.8
11.7
10.1
11.8
8.0
9.9
11.9
9.5
11.6
7.5
8.1
10.6
10.8
12.2
6.2
6.9
7.7
10.3
9.8
9.9
7.9
7.8
10.1
9.1
7.6
8.9
10.0
8.8
9.9
Time and savings deposits at
commercial banks—Total (excluding large negotiable C D ' s ) .
Savings
Other time
Small time plus total s a v i n g s 4 . . .
11.7
17.5
7.8
16.8
15.0
25.0
7.4
19.2
11.2
11.1
11.4
10.5
11.2
7.3
14.6
7 8
8.5
5.4
11.6
4.4
7.3
2.6
11.4
3.0
6.4
1.6
10.5
3.8
9.9
1.3
17.2
4.3
Deposits at thrift institutions 5
15.6
15.8
14.6
15.0
14.4
8.9
7.6
11.6
MEMO (change in billions of dollars,
seasonally adjusted):
Large negotiable C D ' s at large
banks
AH other large time deposits 6
—
Small time deposits
7
Nondeposit sources of funds
—
-5.6
-3.7
18.6
-2.9
-19.1
-1.0
16.5
16.6
8.0
10.9
14.6
7
5.2
3.3
4.5
7.1
5.6
1.3
4.5
8.8
5.7
1.5
5.0
6.5
3.9
2.8
2.2
1.6
7.7
3.5
3.6
Concepts of m o n e y 3
M-l
M-2
M-3
M-4
M-5
1
11.1
Changes are calculated from the average amounts outstanding in each quarter.
2
Annual rates of change in reserve measures have been
adjusted for changes in reserve requirements.
3
Af-1 is currency plus private demand deposits adjusted.
M - 2 is M - l plus bank time and savings deposits other than
large negotiable C D ' s . M - 3 is M - 2 plus deposits at mutual
savings banks and savings and loan associations and credit
union shares. M - 4 is M - 2 plus large negotiable C D ' s . M-5
is M - 3 plus large negotiable C D ' s .
4
Interest-bearing deposits subject to Regulation Q.
11.0
5
Savings and loan associations, mutual savings banks, and
credit unions.
6
Total large time deposits less negotiable C D ' s at weekly
reporting banks.
7
Nondeposit sources of funds include borrowings by commercial banks from other than commercial banks in the form
of Federal funds purchased, securities sold under agreements
to repurchase, and other liabilities to own foreign branches
(Euro-dollar borrowings), loans sold to affiliates, loan repurchase agreements, borrowings from Federal Reserve Banks,
and other minor items.
Domestic Financial Developments,
Q3 1978
the public sector, bond issuance by State and
local governments continued to be bolstered by
a large volume of advance refunding issues,
while the Treasury required a sizable amount
of credit to finance its deficit and to build up
its cash balances.
MONETARY AGGREGATES
AND BANK CREDIT
Growth in M-1 during the third quarter averaged
7.6 per cent, down somewhat from the exceptionally rapid rise of nearly 10 per cent in the
second quarter. The continuing brisk expansion
of M-1 reflected the strong transactions demand
for cash balances associated with rapidly rising
nominal income and expenditures; this demand
was offset only in part by the incentive offered
by rising interest rates to economize on nonearning balances. The rate of M-l expansion
increased in each successive month of the quarter, a pattern that arose to a certain extent from
a number of special factors affecting holdings
of cash balances. Early in the quarter, increases
in M-l apparently were held down for a short
time by an unusually large build-up of Treasury
cash balances and by some weakness in deposits
Changes in income velocity of M-l and M-2
Seasonally adjusted annual rates. Money stock data are
quarterly averages.
831
of foreign entities at commercial banks. By
August and September these damping influences
had dissipated and other special factors related
to the processing of Federal tax payments and
the early distribution of social security checks
contributed to more rapid growth.
The moderation in the quarterly rate of
growth of M-l occurred contemporaneously
with a sharper slowdown in the expansion of
GNP from its second-quarter surge; as a result,
growth in M-l velocity (V-l) declined markedly
from the preceding quarter. Wide swings in the
growth rate of velocity typically accompany
sharp fluctuations in the growth of GNP, as
money demands tend to adjust with a lag to such
movements. So far in 1978, the annual rate of
growth in V-l has averaged 4 per cent, close
to the y/2 per cent recorded in each of the two
preceding years.
M-2 expanded at an annual rate of 8.9 per
cent during the third quarter, up 1 percentage
point from the previous 3 months. The acceleration of the interest-bearing component of this
broader aggregate was due mainly to a sharp
increase early in the quarter in the rate of growth
of large-denomination ($100,000 or more) time
deposits included in M-2. Moreover, despite a
substantial widening of the adverse differential
between short- and intermediate-term market
yields and Regulation Q ceilings on most deposits, the growth rate of interest-earning deposits at commercial banks subject to these
ceilings, that is, savings and small-denomination time deposits, rose slightly for the second
consecutive quarter.
The faster growth of small-denomination time
deposits at commercial banks was attributable
largely to inflows into the new 6-month money
market certificate, the ceiling rate on which
varies with the discount rate in weekly auctions
of 6-month Treasury bills. Banks first offered
these certificates in June, and by the end of
September they had issued almost $10 billion
of them, an amount equal to 2Vi per cent of
outstanding small time and savings deposits.
Most of this amount probably represents retention of funds from maturing time deposits and
transfers from savings deposits, rather than receipt of new funds; the volume of other small
time deposits with shorter maturities at banks
has dipped sharply since June, and the rate of
832
Federal Reserve Bulletin • November 1978
Treasury yield curves and deposit rate ceilings
Per cent per annum
3
4
5
6
Years to maturity
+ Maximum yield on " m o n e y market" time deposits at
thrift institutions for September 2 7 , 1978.
* Maximum yield on " m o n e y market" time deposits at
commercial banks for September 27, 1978.
Data reflect annual effective yields. Ceiling rates are yields
derived from continuous compounding of the nominal ceiling
rates. Market yield data are on an investment yield basis.
growth in small time deposits with longer maturities also has fallen in recent months. In the
absence of the new 6-month certificate, however, many of the funds shifted to it might have
been invested directly in market securities. The
growth of savings deposits was very slow on
average in the third quarter. There were net
withdrawals from savings accounts of individuals in June and July, but relatively large inflows into these accounts in August and September.
The new money market certificate appears to
have contributed to the ability of thrift institutions, even more than banks, to attract additional funds and to retain deposits that otherwise
might have been diverted into market instruments. By the end of the third quarter, outstanding balances of money market certificates
at savings and loans and mutual savings banks
stood at about $24 billion, or 4% per cent of
total deposits. At least some of the more rapid
growth of such accounts reflected the differential
of 25 basis points between the ceiling rates at
thrift institutions and those at commercial
banks. Primarily because of the attractiveness
of the money market certificate, total deposit
growth at thrift institutions accelerated substantially during the quarter to an annual rate of
11.6 per cent. As a result, growth in M-3
jumped to an annual rate of 10 per cent, well
above the pace of 7.8 per cent in the first half
of 1978.
Even with the continued large increase in
deposits subject to rate ceilings, banks supported asset growth by adding to managed liabilities—a composite of large-denomination
time deposits and nondeposit short-term borrowings, on which there are no rate ceilings—at
about the same rate as in the second quarter.
This increase in managed liabilities, however,
was much smaller than in late 1977 and early
1978. At large banks, the ratio of these liabilities to total net assets edged up slightly, remaining below the 1974 peak but extending the
virtually uninterrupted rise begun in late 1976.
During the first half of 1978, large, nonmoney-market banks were largely responsible
for the greater use of managed liabilities. But
in the third quarter, the money market banks
accounted for most of the increase, as other
large banks reduced somewhat their unusually
extensive reliance on such funds.
Components of
bank credit
Major categories of
bank loans
Change, billions of dollars
TREASURY SECURITIES
u
.
n
EJ
u
i
Q3
Q4
1977
Q1
Q2
1978
Q3
Q3
Q4
1977
Q1
Q2
Q3
1978
Seasonally adjusted. Total loans and business loans adjusted
for transfer between banks and their holding companies, affiliates, subsidiaries, or foreign branches.
Domestic Financial Developments,
Total loans and investments of commercial
banks increased at an annual rate of 11 per cent
in the third quarter, somewhat below the pace
of growth in the preceding 3 months. Holdings
of Treasury securities were reduced, following
some accumulation in the second quarter. Acquisitions of municipal securities were large, as
they have been throughout the year, apparently
reflecting demand for tax-exempt assets due to
a rise in bank profits.
Growth in bank loans slowed somewhat during the third quarter, with most of the deceleration resulting from a slower pace of business
lending and a run-off in security loans. Real
estate lending picked up somewhat from the
exceptionally vigorous rate since the end of
1976. Bank lending to consumers, on the other
hand, moderated slightly in the third quarter.
BUSINESS FINANCE
The external financing needs of nonfinancial
businesses decreased in the third quarter, as
internally generated funds increased while capital expenditures remained about unchanged. The
reduction in credit requirements was reflected
almost entirely in short- and intermediate-term
borrowing; growth of business credit in these
maturity ranges fell to 9Vi per cent from
per cent during the second quarter. Although
business borrowing in the commercial paper
market and from finance companies slowed,
most of the deceleration resulted from a near
halving in the rate of growth in loans from
banks. This decline in business lending was
most pronounced at large banks, whose credit
extensions to firms in the manufacturing, mining, retail trade, and public utilities industries
were especially weak. Some of the reduction
in lending by these banks also may have been
attributable to a tendency toward tightening in
the terms of bank loans at large, non-moneymarket banks, which already had experienced
a marked erosion of their liquidity positions.
Although it remained well below the levels
of recent years, borrowing by nonfinancial corporations in bond markets picked up somewhat
in the third quarter. In the public bond market
expanded issuance by public utilities, especially
833
Q3 1978
Business loans and shortand intermediate-term business credit
Seasonally adjusted annual rate of change, per cent
Business loans
at banks 1
Period
Total
Excluding
bank holdings
of bankers
acceptances
Total short- and
intermediate-term
business credit 2
1975—Ql..
Q2..
Q3
Q4..
—5.2
-8.7
-2.4
-7.4
-9.0
-2.9
-2 3
-4.4
-8.9
-.5
-3.9
1976—Ql..
Q2..
Q3..
Q4..
-6.9
1.6
5.3
10.6
-6.6
2.1
2.8
9.7
-1.2
5.9
2.3
12.8
1977—Ql..
Q2..
Q3..
Q4..
11.2
12.8
11.2
11.7
13.3
12.9
10.4
12.6
14.6
16.1
10.4
16.4
1978—Ql..
Q2..
Q3..
11.0
16 3
19.0
17.8
19.5
15.5
18.6
9.6
11.0
1
Based on data for last Wednesday of month, adjusted for
outstanding amounts of loans sold to affiliates.
2
Short- and intermediate-term business credit is business
loans at commercial banks excluding bank holdings of bankers
acceptances plus nonfinancial company commercial paper and
finance company loans to businesses measured from end of
quarter to end of quarter.
communications concerns, accounted for much
of the increase. In contrast, offerings by industrial corporations during the third quarter remained quite moderate, as industrial firms with
the higher ratings (Aa and above) continued to
avoid issuance of bonds. Such firms probably
were reluctant to incur long-term debt at the
relatively high level of interest rates prevailing
this year and could rely heavily on short-term
borrowing, since they had made substantial improvements to their liquidity positions earlier in
the expansion. Financial corporations also reduced their public bond offerings during the
third quarter, mainly owing to a drop in sales
of securities by finance companies.
Although the volume of public bond offerings
by higher-rated industrial concerns was quite
small in the third quarter, such offerings by
corporations with low bond ratings (less than
Baa) were relatively large. In addition, private
placements of corporate bonds, which tend to
be issues of manufacturing and industrial concerns with ratings below Aa, are estimated to
have remained close to the relatively strong pace
of other recent quarters. This sizable volume
834
Federal Reserve Bulletin • November 1978
Gross offerings of new security issues
Seasonally adjusted annual rates, billions of dollars
1978
1977
Type of security
Q3
Q4
Ql
Corporate, total
Bonds
Publicly offered
Privately placed
Stocks
61
49
33
16
12
59
43
24
19
16
39
32
16
16
7
Foreign
13
5
State and local government
47
46
r
e
5r
43
Q2' Q 3 e
46
36
19
17
10
54
43
27
16
11
12
6
49
51
Revised.
Estimated.
of bond issuance by lower-rated corporations
reflected in part the availability of loanable
funds at major institutional investors such as life
insurance companies and bond funds, which
tend to favor investment in such corporations.
In addition, it may have been encouraged by
the relatively low risk premiums associated with
these securities. The spread between lower-rated
(Baa) and higher-rated (Aaa) corporate bonds
remained relatively narrow through the third
quarter, despite the over-all upward movement
in long-term interest rates this year.
Even with substantial increases in short-term
interest rates during most of the third quarter,
yields on corporate bonds declined slightly, on
balance, over the period. Gains in stock prices,
on the other hand, were quite pronounced for
the quarter, although some of the increases
registered in the first 2 months were erased in
late September. At the end of September major
indexes of stocks listed on the New York Stock
Exchange generally were from 6 to 12 per cent
above their levels at the beginning of the year,
but remained below their highs for the current
expansion reached at the end of 1976. Price
indexes of issues listed on the American Stock
Exchange and traded over the counter ended the
quarter only slightly below their record highs
established in mid-September. In October, stock
prices moved sharply lower and interest rates
on corporate bonds increased, in apparent reaction to heightened uncertainty about the outlook
for inflation and economic activity, to higher
short-term interest rates, and to weakness in the
foreign exchange value of the dollar. The prices
of long-term securities stabilized in November,
however, following the announcement of the
joint Treasury-Federal Reserve program to stem
the decline in the foreign exchange value of the
dollar.
Because of their strong price performance in
the third quarter, stocks traded on the American
Stock Exchange and over the counter had a
substantial increase in their price-earnings
ratios. In part reflecting this improvement, equity issuance by smaller firms, whose share
prices make up a large portion of these indexes,
increased during the quarter, leading to a slight
rise in the total volume of common and preferred stock offerings. Total equity issuance
remained small, however, as the relatively low
level of price-earnings ratios for most larger
corporations apparently continued to discourage
the issuance of new stock.
GOVERNMENT FINANCE
State and local governments offered a near-record amount of bonds in the third quarter, with
advance refundings reaching a record level in
August and accounting for a sizable portion of
the quarter's total issues. The heavy pace of
advance refundings came largely in anticipation
of the September V effective date of new Treasury Department regulations that reduced the
attractiveness of these operations.
Interest rates on State and local obligations
declined appreciably during the third quarter.
The Bond Buyer index of tax-exempt bond
yields, at 6.10 per cent in early October, was
almost lA of a percentage point below its level
at the end of June, somewhat more than the
decrease in yields on taxable Government securities. The relatively strong performance of
tax-exempt yields over the quarter was due in
part to a reported step-up in demand for these
securities by commercial banks and propertycasualty insurance companies, a group that also
experienced strong profits.
Treasury borrowing during the third quarter
amounted to $15 billion (not seasonally adjusted). The bulk of this borrowing occurred
during the first 2 months of the quarter, mainly
because of the issuance of special nonmarketable obligations associated with the advance refunding operations of State and local govern-
Domestic Financial Developments,
835
Q3 1978
Federal Government borrowing and cash balance
Quarterly totals, billions of dollars, not seasonally adjusted
1977
Item
Treasury financing
Budget surplus, or deficit ( - )
Off-budget deficit 1
Net cash borrowings, or repayments ( - )
Other means of financing2
Change in cash balance
Federally sponsored credit agencies,
net cash borrowings 3
Ql
..
.— .
1978
Q3
Ql
Q4
Q2
Q3
-18.7
-4.3
17.6
2.7
2.6
.
8.6
.1
-1.1
-.4
7.2
-12.2
-4.9
4
19.5
.4
4
2.8
-28.8
-1.3
20.7
2.6
-6.8
-25.8
-3.7
20.8
2.8
-5.9
14.0
-2.2
2.5
-3.2
11.1
-8.1
-3.1
15.1
1.0
4.9
.7
3.0
1.8
2.0
4.5
•6.5
6.1
...—
1
Q2
Includes outlays of the 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.
All data have been adjusted to reflect the return of the ExportImport Bank to the unified budget.
2
Checks issued less checks paid, accrued items, and other
transactions.
3
Includes debt of the Federal Home Loan Mortgage Cor-
poration, Federal home loan banks, Federal land banks, Federal
intermediate credit banks, banks for cooperatives, and Federal
National Mortgage Association (including discount notes and
securities guaranteed by the Government National Mortgage
Association).
4
Includes $ 2 . 5 billion of borrowing from the Federal Reserve on September 30, which was repaid October 4 after the
new debt ceiling bill became law.
1
Revised.
ments. A sizable volume of nonmarketable
Government securities also was acquired by
foreign official accounts with the proceeds from
dollar support operations in foreign exchange
markets, in contrast to a net paydown of special
foreign issues during the preceding quarter. In
the third quarter, the Treasury continued to rely
mostly on coupon securities to meet its financing needs in the open market. During the first
three quarters of 1978, the outstanding supply
of Treasury bills remained about unchanged, at
$161 billion, while coupon issues increased
almost $29 billion. However, most of the
coupon issues had maturities of 2 to 4 years;
as a result, the average maturity of the Treasury
debt, which was 3 years and 1 month at the
end of September, had lengthened only 2
months since the end of 1977.
Net borrowing by Federally sponsored credit
agencies remained sizable during the third
quarter as a whole, although the pace of intermediate- and long-term borrowing slowed appreciably as the quarter progressed. As in the
preceding two quarters, most of this borrowing
was related to activity of sponsored credit agencies in the residential mortgage market. The
Federal National Mortgage Association and the
Federal home loan banks both borrowed heavily
during most of the quarter in order to obtain
funds with which to offset tightness in the
mortgage market and to rebuild their own holdings of liquid assets.
MORTGAGE AND
CONSUMER CREDIT
Net mortgage lending edged higher during the
third quarter from its pace in the first half of
1978. Flows of funds into residential mortgages
picked up slightly, although they were still
about $10 billion below the level recorded in
the second half of 1977. In addition, commercial and other nonresidential mortgage lending
posted a small further increase during the quarter. The continued strong pace of commercial
mortgage lending can be attributed principally
to rising commercial construction activity.
Commercial banks increased their mortgage
lending in the third quarter, from an already
strong pace in the previous quarter, and life
insurance companies continued to acquire substantial amounts of mortgages. The rise in net
mortgage acquisitions by these diversified intermediaries can be attributed in part to the increased demand for commercial and other
nonresidential mortgages, for which they are
major lenders, as well as to the relative attractiveness of mortgage yields. In addition, because of the relatively flat volume of private
offerings of corporate bonds, insurance companies could channel increases in cash flows into
mortgage markets.
In contrast with the expanded mortgage lending of commercial banks and life insurance
companies, savings and loan associations ac-
836
Federal Reserve Bulletin • November 1978
quired fewer mortgages during the third quarter,
in lagged response to the sharply reduced deposit inflows during the first half of 1978.
Spurred by sales of the new money market
certificate, deposit growth at savings and loans
increased during the third quarter. However,
these associations apparently used much of the
increased deposit inflows to improve their liquidity and moderate their reliance on borrowed
funds. At insured savings and loans, the liquidity ratio—cash and liquid assets divided by the
sum of short-term borrowings and deposits—
rose substantially over the quarter, reaching 9.2
per cent in September, its highest level since
mid-1977. In addition, savings and loans slowed
the rate at which they were taking down advances from Federal home loan banks. The
pick-up in deposits also encouraged a modest
increase in mortgage commitments outstanding
at these associations during the quarter.
Issuance of mortgage pass-through securities
guaranteed by the Government National Mortgage Association (GNMA) increased substantially in the third quarter, following sharp declines earlier in the year, and purchases by the
Federal National Mortgage Association
(FNMA) of Government-underwritten home
loans fell off sharply. This pattern resulted from
a rise in prices of GNMA-backed, pass-through
securities relative to prices available to originators of Government-guaranteed mortgages under
existing FNMA mortgage commitments.
Deposits at savings and loans
Annual rate of change, per
16
8
0
1977
1978
Seasonally adjusted. Quarterly averages at annual rates.
Net change in mortgage debt outstanding
Seasonally adjusted annual rates, billions of dollars
1977
1978
Change
Q 3 Ji Q 4
Q , | Q2'|
Q3e
Total
141
151 133
137
140
By type of property:
Residential
Other1
114 116 100
27 . 35 33
103
34
104
36
31
52
6
9
13
26
36
48
7
10
8
31
By type of holder:
Commercial banks
Savings and loans
...
Mutual savings banks
Life insurance companies
F N M A and G N M A
Other 2
32
61
8
5
-3
38
31
62
8
9
*
41
25
54
7
6
6
35
1
Includes commercial and other nonresidential as well as
farm properties.
2
Includes mortgage pools backing securities guaranteed by
the Government National Mortgage Association, Federal Home
Loan Mortgage Corporation, or Farmers Home Administration. Some of these mortgage-pooled securities may have been
purchased by the institutions shown separately but are not
included in the above mortgage holdings.
1
Revised.
Estimated.
* Less than $500 million.
e
The average interest rate on new commitments for conventional home mortgages with 80
per cent loan-to-value ratios at savings and loans
was little changed over the quarter, following
an increase of about 3A of a percentage point
in the first half. In the face of continued strong
demand for mortgage funds, the relative stability of mortgage interest rates may be largely
attributable to the strengthening of deposit
flows, as well as to the declines in other longterm market interest rates at midquarter.
Consumer instalment credit outstanding expanded at an annual rate of about 16 per cent
during the third quarter, somewhat slower than
during the first half but still quite strong. The
moderation resulted from a continuing increase
of credit extensions. Sales of autos at higher
prices remained the major stimulus to the
growth of instalment credit. Although interest
rates on automobile credit remain largely unchanged, other credit terms, such as the average
loan maturity at commercial banks and downpayment requirements at finance companies,
appear to have begun tightening during the
quarter.
•
837
Survey of Time and Savings Deposits
at Commercial Banks, July 1978
Total time and savings deposits at insured commercial banks, not adjusted for normal seasonal
variation, expanded 2Vi per cent during the 3
months ending July 26, 1978, compared with
3 per cent over the preceding intersurvey period. 1 As they had in each survey quarter since
April 1977, banks relied heavily on the sales
of large-denomination ($100,000 or more) time
deposits to finance continued brisk expansion in
bank credit. Between April and July, banks
raised $10 billion through the issuance of large
time deposits, only a little less than the quarterly-average growth of $11 billion for the four
preceding survey quarters. Inflows of interestbearing deposits subject to rate ceilings totaled
more than $4XA billion in the most recent survey,
close to the average of $4 billion per quarter
since April 1977.
Unlike other recent quarters, however, introduction of two new deposit categories on June
1 altered substantially the pattern of deposit
NOTE.—David M. Lefever of the Board's Division
of Research and Statistics prepared this article.
1
Surveys of time and savings deposits ( S T S D ) at
all member banks were conducted by the Board of
Governors in late 1965, in early 1966, and quarterly
in 1967. In January and July 1967 the surveys also
included data for all insured nonmember banks collected
by the Federal Deposit Insurance Corporation (FDIC).
Since the beginning of 1968 the Board of Governors
and the FDIC have conducted the joint quarterly surveys
to provide estimates for all insured commercial banks
based on a probability sample of banks. The results of
all earlier surveys have appeared in previous BULLETINS
from 1966 to 1978, the most recent being August 1978.
The current sample—designed to provide estimates
of the composition of deposits—includes about 5 6 0
insured commercial banks. For details of the statistical
methodology, see "Survey of Time and Savings Deposits, July 1 9 7 6 " in the BULLETIN for December 1976.
Detailed data for the current survey (formerly contained in appendix tables) are available on request from
Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D . C . 2 0 5 5 1 .
flows among small-denomination (less than
$100,000) time and savings deposits. The first
new category, the 6-month money market time
deposit (MMTD)—with a ceiling interest rate
that changes weekly with changes in the average
yield on new issues of 6-month Treasury
bills—attracted nearly $5Vi billion. 2 A substantial portion of these funds appear to have been
shifted from other types of small time and
savings deposits at banks; such accounts declined about $1V2 billion since the last survey.
However, MMTD balances probably also included funds that otherwise would have been
diverted to market instruments in view of the
considerable rise in market interest rates over
the period. The second instrument authorized
on June 1, time certificates with original maturities of 8 years and over that are subject to
a 7% per cent rate ceiling, attracted nearly $ll/2
billion, likely including funds that otherwise
would have flowed into other long-maturity accounts.
SAVINGS DEPOSITS
During the May-July period, outstanding savings deposits at commercial banks, not seasonally adjusted, declined for the first time since
the survey of January 1970. The $500 million
net outflow of savings deposits reflected rising
2
The 6-month M M T D , which was introduced on
June 1, 1978, has a legal maximum nominal offering
rate derived weekly from the auction average discount
yield on the most recently issued 6-month Treasury
securities. The minimum required deposit for an M M T D
is $ 1 0 , 0 0 0 . The ceiling rate on M M T D ' s for thrift
institutions is 25 basis points higher than the maximum
allowable rate for commercial banks. The range of
offering rates on M M T D ' s appears in Table 1.16 (p.
A 1 0 ) of the BULLETIN.
838
Federal Reserve Bulletin • November 1978
rates on alternative short-term instruments, including Treasury securities, money market mutual funds, and the new MMTD's. By the end
of July, rates on 90-day Treasury bills and
money market mutual funds exceeded the maximum allowable yield on savings deposits by
more than 2 percentage points, while the maximum effective yield in MMTD's was 2Vi percentage points higher than the savings rate.
The net outflow of savings deposits was concentrated in accounts held by individuals and
domestic governmental units, as deposits in
each of these categories declined more than
$400 million. Meanwhile, businesses increased
their holdings of savings deposits by more than
$300 million, after virtually no net inflow over
the past year. For each of the three major
categories of savings deposits, a slightly larger
proportion of banks paid the ceiling rate of
interest in July than in April. Nevertheless, the
impact of these increases was so small that the
average rate paid on all new issues of savings
deposits, weighted by the amount of deposits
outstanding, remained unchanged from the
April survey at 4.93 per cent.
SMALL-DENOMINATION
TIME DEPOSITS
Interpretation of movements in interest-earning
small-denomination time deposits, consisting of
all maturity categories including MMTD's, individual retirement accounts, and Keogh ac-
1. Types of time and savings deposits held by insured commercial banks on survey dates, January 25,
April 26, and July 26, 1978
Deposits
Number of issuing banks
Type of deposit, denomination,
and original maturity
Millions of dollars
Jan. 25
Apr. 26
July 26
Jan. 25
Apr. 26
Percentage change
July 26
Jan. 25Apr. 26
Total time and savings deposits.
14,245
14,339
14,338
548,142
564,410
578,684
3.0
Savings
Issued to:
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit (other than commercial banks)
Domestic governmental units
All other
14,245
14,339
14,338
218,390
222,065
221,557
1.7
14,245
14,339
14,338
202,513
205,843
205,433
1.6
9,374
8,391
1,251
9,754
8,363
1,081
9,955
8,023
1,268
10,558
5,206
10,679
5,427
116
11,005
4,981
138
4.2
4.0
9,088
9,434
9,364
2,084
2,549
2,782
22.3
IRA and Keogh Plan time deposits, 3 years or
more
Money market certificates, $10,000 or more,
exactly 6 months 1
Other interest-bearing time deposits, less than
$100,000
Issued to:
Domestic governmental units
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
Other than domestic governmental units
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to i y 2 years
2Vz up to 4 years 2
4 up to 6 years 2
6 up to 8 years 2
8 years and over 1 , 2
112
9,102
14,090
14,102
14,095
10,688
11,135
10,845
5,201
7,367
4,882
8,680
5,153
8,657
5,132
8,748
4,770
7,927
5,539
8,867
1.1
5,409
166,717
169,674
168,077
4,118
4,219
4,030
862
1,243
854
1,159
865
1,273
825
1,255
921
1,177
669
1,264
14,090
14,102
14,092
6,629
11,751
8,808
13,508
12,476
12,390
9,198
6,439
11,635
8,605
13,832
12,750
12,610
9,455
6,125
11,700
8,458
13,769
12,902
13,044
10,740
6,135
6,250
31,459
3,587
33,977
18,463
50,848
18,016
5,886
30,634
3,105
33,941
19,154
52,081
20,654
5,429
29,556
3,171
33,041
18,452
51,126
21,852
1,418
162,598
165,455
164,046
1.8
2.5
.3
2.4
-3.3
8.3
1.8
-5.8
-2.6
-13.4
-.1
3.7
2.4
14.6
11,747
11,369
11,531
156,122
164,616
174,341
5.4
Non-interest-bearing time deposits.
Less than $100,000
$100,000 or more
1,625
1,379
623
1,650
1,379
667
1,470
1,177
681
4,019
692
3,327
3,999
623
3,376
4,381
695
3,686
-.5
-9.9
1.5
Club accounts (Christmas savings, vacation,
or similar club accounts)
9,124
9,246
9,550
811
,508
2,138
85.9
Interest-bearing time deposits, $100,000 or more
1
Issuance authorized beginning June 1, 1978.
Excludes all IRA and Keogh Plan accounts with original maturity
of 3 years or more.
2
NOTE.—All banks that had either discontinued offering or never
offered certain types of deposits as of the survey date are not counted
as issuing banks. However, small amounts of deposits held at banks
that had discontinued issuing certain types of deposits are included
in the amounts outstanding.
Details may not add to totals because of rounding.
Survey of Time and Savings
839
Deposits
2. Small-denomination time and savings deposits held by insured commercial banks on July 26, 1978,
compared with April 26, 1978, by type of deposit, by most common rate paid on new deposits in each
category, and by size of bank
Size of bank
(total deposits in millions of dollars)
All banks
Deposit group, original
maturity, and distribution of deposits by
most common rate
Less than 100
July 26
Apr. 26
July 26
Apr. 26
Size of bank
(total deposits in millions of dollars)
All banks
Less than 100
100 and over
July 26
Apr. 26
July 26
July 26
Apr. 26
July 26
Apr. 26
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Savings deposits
Individuals and nonprofit organizations
Issuing banks
14,338
Distribution, t o t a l . . .
100
4.00 or less
4.1
4.01-4.50
8.4
4.51-5.00
87.5
1
Paying ceiling
rate ...
87.5
Apr. 26
100 and over
14,339
100
4.3
9.4
86.3
86.3
13,265
100
4.1
8.7
87.2
87.2
13,255
100
4.3
9.8
86.0
86.0
1,073
100
3.8
5.0
91.2
91.2
1,084 205,433 205,843
100
100
100
3.4
3.2
5.1
7.1
7.5
4.5
90.4
89.1
89.7
90.4
89.1
89.7
78,624
100
3.6
9.2
87.2
87.2
77,865 126,808 127,978
100
100
100
2.9
3.6
3.3
9.9
5.8
6.0
91.3
90.7
86.5
91.3
86.5
90.7
Partnerships and corporations
Issuing banks
Distribution, total. . .
4.00 or less
4.01-4.50
4.51-5.00
Paying ceiling
rate1...
9,955
100
1.6
7.4
91.0
90.7
9,754
100
1.4
8.0
90.7
90.4
8,898
100
1.7
7.9
90.4
90.1
8,683
100
1.4
8.5
90.1
89.8
1,057
100
.8
3.4
95.8
95.8
1,071
100
.8
3.7
95.5
95.5
11,005
100
.7
4.3
95.0
95.0
10,679
100
.5
4.8
94.7
94.7
3,277
100
2.1
5.8
92.1
92.1
3,366
100
1.2
6.4
92.4
92.4
7,729
100
.2
3.7
96.2
96.2
7,313
100
.1
4.0
95.8
95.8
Domestic govt, units
Issuing banks
Distribution, t o t a l . . .
4.00 or less
4.01-4.50
4.51 5.00
Paying ceiling
rate1...
8,023
100
2.4
9.5
88.1
88.1
8,363
100
3.7
10.9
85.3
85.0
7,293
100
2.6
10.1
87.3
87.3
7,627
100
4.0
11.7
84.3
83.9
730
100
.1
3.4
96.4
96.4
736
100
.1
3.3
96.5
96.5
4,981
100
1.1
3.6
95.3
95.3
5,427
100
1.0
3.3
95.6
95.5
3,001
100
1.7
4.6
93.7
93.7
3,063
100
1.7
5.1
93.3
93.0
1,980
100
.1
2.1
97.8
97.8
2,364
100
.2
1.1
98.7
98.7
All other
Issuing banks
Distribution, total. . .
4.00 or less
4.01-4.50
4.51-5.00
Paying ceiling
rate1...
1,268
100
13.6
19.0
67.4
67.4
1,081
100
10.6
19.6
69.8
69.8
1,106
100
15.3
21.8
62.9
62.9
912
100
12.2
22.2
65.6
65.6
162
100
2.0
2
(98.0
)
98.0
169
100
1.9
5.5
92.6
92.6
138
100
21.6
(98.4
)
98.4
116
100
1.1
.4
98.5
98.5
33
100
3.2
.1
96.7
96.7
29
100
1.9
(2)
98.1
98.1
105
100
1.0
(2)
99.0
99.0
87
100
.9
.5
98.6
98.6
Issuing banks
Distribution, total
6.00 or less
6.01-7.00
7.01-7.50
7.51-7.75
Paying ceiling
rate1...
9,338
100
4.1
7.8
36.9
51.1
23.5
9,434
100
5.8
9.9
44.4
39.9
39.9
8,352
100
4.3
8.3
37.8
49.6
22.6
8,456
100
5.9
10.6
45.6
37.8
37.8
986
100
2.7
3.8
29.4
64.2
30.7
978
100
5.1
3.3
34.0
57.6
57.6
2,771
100
2.8
2.4
29.8
65.1
35.0
2,549
100
2.6
2.9
38.0
56.5
56.5
1,098
100
2.0
3.2
38.7
56.2
29.4
1,036
100
1.6
5.4
49.4
43.7
43.7
1,674
100
3.3
1.8
23.9
71.0
38.6
1,513
100
3.3
1.2
30.2
65.3
65.3
Money market certificates,
$10,000 3 or more, 6
months
Issuing banks
T^ictrihiitir»n tnt?il
7 25 or less
7 26-7 48
7 49_7 50
v»r»tf riJi/iti <$i unTftt£>• 1. •
i lining
8,928
100
9.4
3L4
59 3
59.3
Time deposits less than
$100,000
Domestic govt, units:
30 up to 90 days
Issuing banks
Distribution, total.. .
4.50 or less
4.51-5.00
5.01-5.50
5.51-7.75
Paying ceiling
rate1...
4,770
100
.7
50.2
14.8
34.3
.2
5,153
100
2.5
60.5
9.2
27.8
.1
4,094
100
.6
47.6
16.1
35.7
2
4,446
100
2.8
58.4
9.9
28.9
2
()
676
100
1.6
65.5
6.6
26.2
1.1
708
100
.8
73.5
5.1
20.6
.5
921
100
1.4
43.1
5.8
49.7
2
837
100
.1
52.2
8.4
39.3
2
496
100
.1
34.1
7.4
58.3
2
463
100
2
(42.6
)
5.6
51.7
2
425
100
2.9
53.5
4.0
39.6
2
374
100
.1
64.1
11.8
24.0
2
90 up to 180 days
Issuing banks
Distribution, t o t a l . . .
4.50 or less
4.51-5.00
5.01-5.50
5.51-7.75
Paying ceiling
rate1...
7,887
100
.1
17.0
65.4
17.6
.2
8,657
100
.4
8.7
75.5
15.4
.1
7,060
100
(2)
18.0
64.8
17.2
2
7,833
100
.5
9.0
75.0
15.5
2
827
100
.7
8.2
70.0
21.1
1.5
824
100
.3
5.3
79.3
15.1
.8
1,174
100
.1
13.9
62.8
23.2
.9
1,273
100
(27.7
)
72.3
20.1
.1
847
100
2
()
17.1
62.4
20.4
2
939
100
2
()
8.3
71.7
20.0
2
327
100
.2
5.5
63.9
30.4
3.2
333
100
2
( 5.9
)
74.0
20.2
.5
IRA and Keogh Plan time
deposits, 3 years or
For notes see end of table.
7,891
100
10.4
33.9
55.7
55.7
()
()
()
()
3,538
100
1.7
13.1
85.2
85.2
1,830
100
5.6
23.9
70.4
70.4
5,369
100
3.0
16.8
80.2
80.2
1,036
100
1.7
11.7
86.6
86.6
()
()
()
()
()
()
()
840
Federal Reserve Bulletin • November 1978
TABLE 2—Continued
Deposit group, original
maturity, and distribution of deposits by
most common rate
All banks
Size of bank
(total deposits in millions of dollars)
All banks
Less than 100
July 26
Apr. 26
July 26
Apr. 26
100 and over
July 26
Apr. 26
Size of bank
(total deposits in millions of dollars")
Less than 100
July 26
Apr. 26
July 26
Apr. 26
100 and over
July 26
Apr. 26
Amount of deposits (in millions of dollars).
or percentage distribution
Number of banks, or percentage distribution
Time deposits, less than
$100,000 (cont.)
Domestic govt.
units (cont.)
180 days up to 1 year
Issuing banks
Distribution, t o t a l . . .
4.50 or less
4.51-5.00
5.01-5.50
5.51-7.75
Paying ceiling
rate1...
5,488
100
2
5,132
100
2
4,820
100
2
4,521
100
2
668
100
2
611
100
2
667
100
2
818
100
2
466
100
2
562
100
2
201
100
2
257
100
2
9.7
61.7
28.6
3.6
2.1
69.3
28.5
.1
10.1
61.3
28.5
3.3
1.5
68.7
29.9
2
()
6.7
64.0
29.3
6.0
6.7
74.4
18.8
.9
3.8
42.7
53.5
11.4
12.2
35.8
51.9
.1
2.0
38.3
59.7
11.1
.2
31.7
68.0
2
7.8
53.2
39.0
12.0
38.4
44.8
16.8
.4
1 year and over
Issuing banks
Distribution, total. . .
5.00 or less
5.01-5.50
5.51-6.00
6.01-7.75
Paying ceiling
rate1...
8,685
100
1.1
3.3
64.2
31.4
1.3
8,748
100
1.4
3.1
61.8
33.8
.2
7,872
100
.9
3.1
64.3
31.7
1.1
7,911
100
1.1
2.7
61.9
34.3
2
()
813
100
2.7
5.4
63.0
28.8
3.9
837
100
3.4
6.6
60.8
29.1
1.7
1,252
100
.2
1.4
52.8
45.7
6.7
1,246
100
.5
5. 1
59.8
34.5
.6
946
100
.l
'.1
60.0
39.2
5.7
989
100
.2
1.0
61.1
37.7
2
()
306
100
.4
3.3
30.7
65.6
9.5
257
100
2.0
21.1
54.7
22.2
2.9
Other than domestic
govt, units:
30 up to 90 days
Issuing banks
Distribution, total. . .
4.50 or less
4.51-5.00
Paying ceiling
rate1...
6,125
100
2.8
97.2
97.2
6,439
100
2.1
97.9
97.9
5,247
100
3.0
97.0
97.0
5,514
100
2.2
97.8
97.8
878
100
1.7
98.3
98.3
925
100
1.2
98.8
98.8
5,400
100
4.5
95.5
95.5
5,861
100
.9
99.1
99.1
1,128
100
.1
99.9
99.9
1,057
100
.1
99.9
99.9
4,272
100
5.7
94.3
94.3
4,803
100
1.1
98.9
98.9
90 up to 180 days
Issuing banks
Distribution, total. . .
4.50 or less
4.51-5.00
5.01-5.50
Paying ceiling
rate1...
11,700
100
.6
5. 1
94.3
94.3
11,635
100
.6
5.1
94.4
94.3
10,656
100
.7
5.3
94.1
94.1
10,570
100
.6
5.3
94. 1
94.1
1,044
100
2
1,065
100
2
29,544
100
2
30,532
100
2
11,755
100
2
12,044
100
2
17,788
100
2
18,488
100
2
3.3
96.7
96.6
3.1
96.9
96.0
4.9
95. 1
94.6
4.7
95.3
94.7
3.9
96. 1
96.1
3.8
96.2
96.2
5.6
94.4
93.7
5.4
94.6
93.7
180 days up to 1 year
Issuing banks
Distribution, total. . .
4.50 or less
4.51-5.00
5.01-5.50
Paying ceiling
rate1...
8,458
100
.6
4.2
95.2
95.2
8,605
100
.6
7.3
92.1
91.8
7,576
100
.4
4.3
95.3
95.3
7,709
100
.4
7.8
91.7
91.4
882
100
1.9
3.2
94.9
94.9
896
100
1.9
2.9
95.2
95.2
3,155
100
.2
.8
99.1
99.1
3,083
100
.2
3.0
96.9
96.9
1,618
100
2
1,606
100
2
.9
99.1
99.1
1.4
98.6
98.6
1 up to 2 Vi years
Issuing banks
13,769
100
Distribution, total. . .
5.00 or less
(2)
1.9
5.01-5.50
98. 1
5.51-6.00
Paying ceiling
rate1...
98.0
13,832
100
.5
2.5
97.0
96.9
12,708
100
2
1,060
100
2
1.4
98.6
98.3
33,766
100
.5
1.1
98.4
98.1
20,692
100
2
1.1
98.9
97.6
1,060
100
.2
1.3
98.5
97.1
32,971
100
2
2.0
98.0
98.0
12,772
100
.5
2.6
96.9
96.9
2 Vi up to 4 years
Issuing banks
Distribution, total. . .
6.00 or less
6.01-6.50
Paying ceiling
rate1...
12,902
100
1.9
98.1
97.1
12,750
100
4.0
96.0
95.7
11,853
100
1.9
98.1
97.1
11,697
100
4.1
95.9
95.7
1,049
100
1.7
98.3
97.4
1,053
100
2.8
97.2
95.4
18,418
100
1.1
98.9
98.5
4 up to 6 years
13,044
Issuing banks
100
Distribution, total. . .
.6
6.50 or less
12.2
6.51-7.00
87.2
7.01-7.25
1
86.9
Paying ceiling
rate ...
12,610
100
1.3
12.3
86.4
85.9
12,002
100
.5
12.7
86.8
86.6
11,567
100
1.1
12.9
86.0
85.4
1,043
100
1.7
7.3
91.0
90.5
1,044
100
3.5
5.4
91.1
90.7
9,455
100
1.3
4.9
93.8
93.8
9,741
100
.3
5.0
94.6
94.6
8,494
100
.9
5.2
94.0
94.0
998
100
3.3
2.6
94.1
93.2
961
100
4.8
2.6
92.6
92.1
6 up to 8 years
Issuing banks
Distribution, total. . .
7.00 or less
7.01-7.25
7.26-7.75
Paying ceiling
rate1...
()
10,740
100
.6
4.8
94.6
94.5
For notes see end of table.
()<
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
1,537
100
.3
.6
99.0
99.0
1,477
100
.3
4.6
95.0
95.0
12,279
100
2
.7
99.3
99.3
21,126
100
.1
1.3
98.6
98.6
2.5
97.5
96.8
12,641
100
1.0
.8
98.2
97.3
19,154
100
5.1
94.9
94.3
10,886
100
.9
99.1
98.9
11,212
100
6.2
93.8
93.3
7,531
100
1.5
98.5
98.0
7,942
100
3.6
96.4
95.7
51,049
100
.9
9.3
89.9
89.6
51,938
100
1.4
9.8
88.8
88.6
28,111
100
.5
12.8
86.7
86.6
27,979
100
.2
14.9
84.9
84.7
22,938
100
1.3
5.0
93.7
93.3
23,959
100
2.9
3.8
93.4
93.3
21,781
100
.5
1.6
97.9
97.8
20,391
100
1.3
2.1
96.6
94.0
9,804
100
2
8,589
100
2
1.4
98.6
98.6
1.3
98.7
98.7
11,977
100
.9
1.7
97.3
97.1
11,802
100
2.2
2.7
95.1
90.7
()
()
()
()
()
()
()
Survey of Time and Savings
Deposits
841
TABLE 2—Continued
Deposit group, original
maturity, and distribution of deposits by
most common rate
All banks
Size of bank
(total deposits in millions of dollars)
Less than 100
July 26
Apr. 26
July 26
Apr. 26
100 and over
July 26
Apr. 26
Club accounts
Issuing banks
Distribution, total
0.00
0.01-4.00
4.01-4.50
4.51-5.50
5,394
100
1.3
3.3
95.4
95.4
6,135
100
1.5
4.0
94.5
94.5
9,550
100
48.3
14.6
7.6
29.5
9,246
100
44.6
14.7
7.5
33.1
8,735
100
50.2
14.7
7.6
27.5
740
100
3.6
8.4
88.0
88.0
8,417
100
46.2
14.8
7.6
31.4
815
100
28.5
13.6
7.0
50.9
1 See BULLETIN Table 1.16 on page A10 for the ceiling rates that
existed at the time of each survey.
23 Less than .05 per cent.
Issuance authorized June 1, 1978.
NOTE.—All banks that either had discontinued offering or had
never offered particular types of deposits as of the survey date are not
counted as issuing banks. Moreover, the small amounts of deposits
counts, was complicated by the introduction
during the intersurvey period of the new 6month and 8-year accounts. Except for a short
time following the introduction of the 8-year
account, yields on alternative market instruments remained above the fixed regulatory ceiling rates on all comparable maturities of small
time deposits issued to nongovernmental units
during the survey quarter. Nevertheless, in the
May-July period the outstanding level of small
time deposits rose to $176 billion, up from $172
billion in the preceding quarter. The stock of
the new MMTD's grew to $51/2 billion from
June 1 to the end of July, while %V/i billion
flowed into certificates with maturities of 8 years
and over in that period.
Reflecting diversion of deposits to these new
accounts, as well as advances in market rates
of interest on alternative instruments, flows to
all other maturity categories of nongovernmental small-denomination time deposits weakened
from the already slow pace of the February-April period. Indeed, banks experienced net
outflows from all but one of the categories of
small time deposits maturing in less than 6
years, suggesting that a large part of MMTD
Size of bank
(total deposits in millions of dollars)
Less than 100
July 26
Apr. 26
July 26
Apr. 26
100 and over
July 26
Apr. 26
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Time deposits less than
$100,000 (cont.)
Other than domestic
govt, units (cont.)
8 years and over 3
Issuing banks
Distribution, total
7.25 or less
7.26-7.50
7.51-7.75
Paying ceiling
rate1...
All banks
1,418
100
3.5
27.9
68.5
68.5
830
100
28.4
13.9
7.0
50.8
2,132
100
24.9
15.3
12.7
47.1
317
100
.7
2.7
96.6
96.6
1,500
100
22.5
14.6
12.3
50.6
919
100
36.5
19.6
13.3
30.6
1,101
100
4.4
35.2
60.4
60.4
640
100
30.7
18.8
13.3
37.3
1,213
100
16.1
12.0
12.3
59.6
859
100
16.5
11.5
11.6
60.5
held at banks that had discontinued issuing deposits are not included
in the amounts outstanding. Therefore, the deposit amounts shown
in Table 1 may exceed the deposit amounts shown in this table.
The most common interest rate for each instrument refers to the
stated rate per annum (before compounding) that banks paid on the
largest dollar volume of deposit inflows during the 2-week period
immediately preceding the survey date.
Details may not add to totals because of rounding.
balances represent funds that were shifted from
other deposits at banks, particularly deposits
with maturities of 2lh up to 6 years. Inflows
of time deposits with original maturities of 6
up to 8 years increased $1 billion, substantially
less than the $2V2 billion net inflow in the
previous quarter.
Net outflows of governmental small-denomination time deposits, which had begun in April
1977, resumed in the May-July interval after
a slight net inflow during the preceding 3
months. While MMTD's likely attracted some
deposits of governmental units, especially from
the category of 180 days up to 1 year, the
over-all effect of the new certificate on these
governmental deposits seems to have been
small. The impact of the MMTD was lessened
by the fact that banks can now pay up to 8 per
cent on all time deposits issued to these governmental entities without regard to deposit maturity though with the requirement that banks
usually must pledge securities against such accounts. 3
3
Banks are permitted to offer rates on time deposits
to governmental units up to the highest ceiling rate on
any deposit category at any Federally insured institution.
842
Federal Reserve Bulletin • November 1978
3. Average of most common interest rates paid on various categories of time and savings deposits at insured
commercial banks on July 26, 1978
Bank size (total deposits in millions of dollars)
Type of deposit, holder, and
original maturity
All size
groups
Less
than 20
20 up
to 50
50 up
to 100
100 up
to 500
500 up
to 1,000
1,000
and over
Savings and small-denomination time deposits
5.65
5.80
5.80
5.70
5.60
5.55
5.51
Savings, total
Individuals and nonprofit organizations
Partnerships and corporations
Domestic governmental units
All other
4.93
4.93
4.96
4.97
4.97
4.95
4.94
5.00
4.93
5.00
4.91
4.91
4.82
4.97
4.76
4.91
4.91
4.97
4.97
5.00
4.94
4.94
4.99
4.99
4.98
4.90
4.89
4.98
4.99
5.00
4.96
4.96
4.97
4.99
5.00
IRA and Keogh Plan time deposits, 3 years or more
7.62
7.59
7.62
7.43
7.69
7.64
7.66
Money market certificates, exactly 6 months
7.42
7.28
7.45
7.20
7.45
7.48
7.48
Other time deposits in denominations of less than $100,000,
total
Domestic governmental units, total
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
6.35
6.17
6.09
5.79
6.22
6.54
6.34
6.00
6.46
5.55
5.99
6.22
6.48
6.33
6.17
5.98
6.66
6.46
6.42
6.02
6.01
5.72
6.22
6.26
6.32
6.10
6.41
5.84
5.98
6.28
6.25
5.51
4.76
6.14
6.74
6.61
6.22
6.63
5.85
6.32
6.53
7.61
6.35
4.83
5.47
5.49
5.99
6.49
7.22
7.48
7.61
6.36
5.00
5.48
5.49
5.99
6.48
7.23
7.49
7.73
6.48
5.00
5.49
5.50
6.00
6.49
7.19
7.50
7.75
6.42
5.00
5.47
5.49
6.00
6.50
7.24
7.50
7.69
6.32
4.99
5.49
5.47
5.97
6.49
7.22
7.45
7.61
6.27
4.96
5.50
5.49
6.00
6.50
7.22
7.49
7.52
6.22
4.60
5.44
5.50
5.99
6.49
7.23
7.49
7.60
3.45
1.79
2.86
3.30
3.89
3.51
4.21
Other than domestic governmental units, total
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to 2 i/i years
2 i/i up to 4 years
4 up to 6 years
6 up to 8 years
Over 8 years
Club accounts 1
1
.
Club accounts are excluded from all of the above categories.
NOTE.—The average rates were calculated by weighting the most
common rate reported on each type of deposit at each bank by the
The July survey revealed a growing proportion of banks paying the maximum allowable
rate on most categories of time deposits issued
to nongovernmental units, while issuing rates
to governments were little changed. These developments, coupled with the rise in interest
payments associated with conversions of deposits to MMTD's, acted to raise the weightedaverage rate paid on all small-denomination
time and savings deposits 4 basis points to 5.65
per cent.
OTHER TIME DEPOSITS
Continued rapid growth of bank assets, coupled
with comparatively slow growth in deposits
subject to interest rate ceilings, induced banks
to increase the outstanding volume of interestbearing large-denomination time deposits by
amount of that type of deposit outstanding. All banks that had either
discontinued offering or never offered particular types of deposit as
of the survey date were excluded from the calculations for those
specific types of deposits.
almost $10 billion. The growth of nearly 6 per
cent, not seasonally adjusted, during the
May-July period was slightly higher than that
in the previous quarter and was the largest
percentage increase of any May-July period
since 1974. Large negotiable certificates of deposit at weekly reporting banks (not shown in
the table) accounted for 60 per cent of the total
advance.
After a slight decline in the previous survey
period, non-interest-bearing time deposits,
principally escrow accounts and compensating
balances held in conjunction with loans, increased $400 million, or 9Vi per cent, to almost
$4Vi billion. Club accounts increased seasonally
by more than $600 million to just over $2
billion, slightly above the level of a year earlier.
Almost half of the offering banks, holding a
quarter of outstanding deposits, paid no interest
on club accounts.
•
843
Statement to Congress
Statement by G. William Miller,
Chairman,
Board of Governors of the Federal
Reserve
System, before the Committee on Banking,
Housing and Urban Affairs, U.S. Senate, November 16, 1978.
Events in recent months have presented a formidable challenge to our Nation. While sustained economic expansion has led to higher
levels of output and employment, continuing
domestic inflation and a sharp decline in the
value of the dollar on foreign exchange markets
have posed growing threats to the vitality of the
U.S. and world economies. Monetary policy is
being directed forcefully toward helping to resolve these urgent problems.
The objective of the Federal Reserve has, for
some time now, been to foster monetary and
financial conditions that would lead to a reduction of inflationary pressures, while encouraging
continued moderate economic growth. Real
gross national product rose at a 4 per cent annual
rate, on average, during the first three quarters
of this year, as compared with 5Vi per cent over
the course of 1977. This slower pace in the
expansion has been sufficient to achieve substantial further gains in employment, but at the
same time it has avoided a significant overshoot
of general levels of resource utilization that
would have intensified inflationary demand
pressures in labor and product markets.
Even so, there has been a marked pick-up
in the rate of inflation. For example, consumer
prices have climbed at an annual rate of 9V£
per cent so far this year. A number of factors
have contributed to this development. Reduced
supplies of some agricultural c o m m o d i ties—especially meats—have caused sharply
higher food prices. Legislated increases in the
Federal minimum wage and in employer contributions for social security and unemployment
compensation have boosted labor costs. Wage
gains have been somewhat larger this year than
last, on average, while our productivity performance has been lagging. And the depreciation of the dollar in international exchange has
raised the prices of imports and weakened competitive restraints on the prices of domestically
produced goods.
With a heavy calendar of collective bargaining in prospect for 1979 and with wage demands
likely to be intensified by recent price advances,
the threat of a further escalation of labor costs
is very real. Furthermore, scheduled increases
next year in the minimum wage and social
security taxes will again provide a significant
inflationary impulse to costs.
President Carter has announced a major program to break the self-destructive cycle of
wages chasing prices and prices chasing wages.
The program includes quantitative guidelines
that establish standards for constructive behavior on the parts of labor and management. In
addition, the President has indicated that he will
seek to eliminate needlessly costly and anticompetitive regulation. He has also committed
his administration to the containment of Federal
spending and greater fiscal restraint.
On November 1, the administration's antiinflation program was fortified by the joint actions of the Federal Reserve and the Treasury
Department to strengthen the dollar in exchange
markets. The Federal Reserve discount rate was
raised 1 percentage point, and reserve requirements on large-denomination time deposits were
increased. In addition, $30 billion in key foreign
currencies were mobilized for exchange-market
intervention. The speculative assault on the
dollar in international currency markets had
depressed its exchange value well below what
could be justified on the basis of fundamental
economic considerations. The psychological
momentum of the markets, if not broken,
threatened to worsen our inflation problem and
844
Federal Reserve Bulletin • November 1978
to undermine confidence at home and abroad.
The clear willingness of the United States to
intervene actively in exchange markets and the
monetary actions of the Federal Reserve have
led to a rebound in the exchange value of the
dollar and to a more stable market environment.
These should be beneficial for domestic price
performance in the period ahead and bolster
confidence in the Nation's economic policies.
If the cooperation of business and labor that
is so essential to the success of the administration's anti-inflation program is to be obtained
and if we are to gain the fullest benefit of the
recent dollar-support initiatives, it is absolutely
essential that monetary and fiscal policies demonstrate prudent restraint. If inflation is to be
gradually slowed, aggregate demand must not
be permitted to expand to the point at which
it presses excessively on available supplies of
labor and industrial resources. This means that
real GNP at this juncture probably should not
grow at an annualized rate much above 3 per
cent, in line with the prospective growth of
potential output. Nor, of course, do we want
to see a protracted shortfall from that pace that
would bring on recession and underutilization
of labor and productive capacity.
Recent trends in the economy and in financial
markets suggest that expansion likely will be
sustained, but at a more moderate pace over the
next year or so. One noteworthy development
has been the less robust pattern of spending by
households following exceptional strength earlier in the cyclical recovery. Personal consumption expenditures rose at an estimated annual
rate of less than 3 per cent in real terms during
the first three quarters of this year, after having
advanced at an average rate of 5l/i per cent in
the preceding 2% years. Rising costs of foods
and other necessities have put substantial pressure on the budgets of many families, and the
proportion of disposable income spent has been
unusually high. Record levels of borrowing
have played an important role in supporting
consumer outlays, and the heavy repayment
burdens that households face are likely to be
an increasing constraint on spending in the
forthcoming year. As a consequence, personal
consumption expenditures probably will no
more than keep pace with increases in personal
income.
In addition, financial factors should induce
some tapering off in homebuilding in 1979. To
date, housing starts have remained on a high
plateau, but the effects of recent increases in
interest rates will soon begin to show through.
The 6-month certificates, introduced in June,
have enabled thrift institutions to avoid the
disintermediation that has curtailed mortgage
credit availability in the past, but they have not
sheltered the housing market from the effects
of higher interest rates. Builders already are
experiencing steeper rates on construction loans,
for which charges tend to move in step with
the bank rate on loans to prime business borrowers, and the stock of loan commitments for
permanent mortgage financing made earlier at
lower rates is being depleted. The combined
effects of higher mortgage rates and inflated
house prices on the cost of homeownership are
likely to bring about some decline in building—although nothing approaching the disastrous drops seen in the past seems in store.
Business investment meanwhile should remain supportive of economic expansion. Inventories by and large are quite lean in relation to
current sales levels, and even with a continuation of cautious inventory policies, businessmen likely will wish to expand their stocks in
line with rising sales. As for spending on plant
and equipment, a recent private survey of investment intentions suggests only a modest increase next year in real terms. On the other
hand, contracts and orders for new plant and
equipment have been running well ahead of
year-earlier levels—even after adjustment for
inflation. In general, the willingness of businessmen to commit funds for major investment
projects will hinge in large part on the success
of efforts to control inflation, thereby providing
the basis for greater confidence in the future
health of the economy.
The foreign trade sector represents an element
of strength in the economic outlook. The U.S.
trade deficit should continue to shrink as a result
of the stronger growth in prospect for some of
our major trading partners and as a result of
the effects of past exchange-rate changes on our
competitive position.
In all, it is my expectation that real GNP will
increase by roughly 2Vi to 3 per cent in the
year ending with the third quarter of 1979. With
Statement to Congress
growth in the labor force unlikely to be so rapid
as in the past couple of years, this rise in activity
should be enough to keep the unemployment
rate in the area of 53A to 6lA per cent.
In this projection I have assumed that inflation will slow into the range of 63A to IV2 per
cent. There are as always many uncertainties
on the price front: the effects of weather on crop
harvests and the decisions of the Organization
of Petroleum Exporting Countries' cartel, for
example, are factors beyond the sphere of economic analysis. What is clear is that the cost
increases already in train will be placing continued pressure on the price structure so that
it will be difficult to break the momentum of
inflation. However, if there is general compliance with the administration's guidelines, the
advance of prices next year could be held to
around the low end of the range I have projected. This would represent a substantial deceleration from the increase of 8V4 per cent in
the GNP deflator expected for this year, and
would be a good start in the difficult process
of restoring price stability.
The recent credit-restraining actions of the
Federal Reserve have aroused fears in some
quarters that an overly restrictive monetary policy might precipitate an economic downturn.
There is no doubt that domestic credit markets
are tauter than they were 6 months ago. Nonetheless, current financial conditions appear consistent with the moderate economic expansion
that is desirable at this juncture.
The Federal Reserve has been moving its
policies in a progressively less accommodative
direction this year in an effort to prevent excessively rapid, growth in money and credit. In an
environment of inflation and of heightened inflationary expectations, borrowers have become
willing to pay higher rates of interest in order
to obtain credit to finance acquisition of assets
the values of which they anticipate will be rising
more rapidly than the rate of inflation. This
phenomenon is seen most clearly in the real
estate market, but the behavior is common in
other sectors as well. To hold down nominal
rates of interest in such a circumstance is to
invite a credit-financed surge in aggregate demand that would add further to inflationary
pressures. Consequently, the Federal Reserve
has pursued policies that have permitted market
845
rates to rise appreciably this year. Yields on
Federal funds and other short-term instruments
have increased more than 3 percentage points
since the beginning of 1978, while interestTates
on long-term bonds and mortgages have risen
about 1 percentage point.
These are sizable movements, to be sure, but
the fact is that, even at current levels, real rates
of interest—that is, actual rates adjusted for
inflationary expectations—are not very high,
and credit remains in adequate supply to finance
a volume of spending that is appropriate in light
of the availability of real resources in the economy. Usury ceilings, which are unrealistic in
relation to present market interest rates in many
States, are cutting into credit availability in
some local markets, and it would be desirable
if these obstacles to the efficient operation of
our financial system were eliminated. But there
has been nothing like a general "credit crunch,"
and we do not foresee one.
It is the intention of the Federal Reserve to
work toward a gradual deceleration of monetary
and credit expansion to a pace consistent with
price stability. The speed with which we can
move in that direction without severely disrupting economic activity is limited by the degree
to which inflation has become embedded in our
economy. But some progress has been made in
the past year. While M-l growth over the past
four quarters—at 8 per cent—was about the
same as in the previous year, growth in M-2
and M-3 decelerated to rates of %lA and 9 l A per
cent, respectively. Growth in these broader aggregates was 3 to V/2 percentage points slower
than in the previous year. The actual growth
in M-l over the past four quarters was well
above the range of 4 to 6V2 per cent set for
this aggregate, but growth in the broader aggregates was within their ranges. To have achieved
significantly lower growth rates for the monetary
aggregates than actually developed would have
required substantially higher market rates of
interest and a sharper curtailment in credit supply, which in our judgment would have run an
unacceptably high risk of wrenching financial
markets so severely as to lead to an economic
recession.
Growth in the monetary aggregates has to be
evaluated in relation to basic economic and
financial forces affecting the public's prefer-
846
Federal Reserve Bulletin • November 1978
ences for money in its various forms. During
the past four quarters growth in nominal GNP
has remained very rapid as moderate expansion
in real output was accompanied by an accelerated rate of price increase, generating a substantial demand for money—particularly M - l —
to finance transactions. Federal Reserve policy
did not fully accommodate these strong demands, and in fact, the rate of growth in real
money balances actually slowed.
The pattern of growth in the broader aggregates has been strongly influenced by the introduction at banks and thrift institutions in June
of this year of a 6-month money market certificate whose ceiling varies weekly with changes
in the auction yield on 6-month Treasury bills.
Growth in savings and small-denomination time
deposits subject to Federally regulated interestrate ceilings had slowed markedly in the fall
of 1977 and in the first half of this year as higher
yields on market securities increasingly attracted
funds that would otherwise have been held in
accounts at banks or thrift institutions. In order
to enable these institutions to compete more
effectively for lendable funds, the Federal Reserve and other regulatory agencies created two
new deposit categories—an 8 per cent, 8-year
certificate and the 6-month money market certificate.
The money market certificates have proved
especially successful. They have been widely
offered, most frequently at the ceiling rates, and
have resulted in a marked pick-up in consumertype deposit growth. Growth in deposits at savings and loan associations and mutual savings
banks, which averaged 6 3 A per cent at an annual
rate in the first 5 months of 1978, has averaged
13 per cent since the introduction of the new
accounts. This growth has permitted thrift institutions to increase their commitments for mortgage loans while reducing their dependence on
borrowed funds and stemming the decline in
their liquidity positions. At commercial banks,
which have a rate disadvantage relative to the
thrift institutions of V* of a percentage point,
there has been a less marked, but still noticeable
gain in growth of the combined total of savings
and small time deposits—from 3 3A per cent
through May to 6V2 per cent in the past 5
months. Nonetheless, with bank credit demands
remaining strong, banks continued to liquidate
Treasury securities and to increase short-term
borrowings through such instruments as large
certificates of deposit and Federal funds to finance these demands.
At its October meeting, the Federal Open
Market Committee (FOMC) updated its longerterm ranges for the monetary aggregates. Its task
was complicated by new uncertainties associated with the introduction on November 1 of
automatic transfer services (ATS), which permit
consumers to authorize their banks to shift funds
from savings to demand deposit accounts as
needed to cover checks written. The major impact of this innovation should be on M - l , as
consumers take advantage of the opportunity to
reduce their holdings of non-earning demand
deposits, but the size of this effect cannot be
projected with any real precision. M-2 and M-3
will be less affected because shifts of funds from
thrift institutions to banks, and also from market
instruments to deposits, are likely to be comparatively modest.
Against that background, the continuity in the
FOMC's objectives with respect to the monetary
aggregates for the 1-year period from the third
quarter of 1978 to the third quarter of 1979 is
more clearly indicated by the broader aggregates, M-2 and M-3. The Committee re-established the ranges for these two aggregates at
6V2 to 9 per cent and IV2 to 10 per cent,
respectively. It is expected that growth in these
aggregates will be well within these ranges as
monetary policy pursues a course of responsible
restraint to complement the administration's
program to combat inflation through fiscal discipline, wage and price moderation, and regulatory reform. The Committee anticipates
growth in bank credit at a rate of 8V2 to 11V2
per cent to be associated with the ranges adopted
for the monetary aggregates. With regard to
M-1, the FOMC expects growth within a range
of 2 to 6 per cent over the period from the third
quarter of 1978 to the third quarter of 1979.
The existing range of 4 to 6V2 per cent has been
lowered because the public can be expected to
shift funds to take advantage of the ATS service,
and the range has been widened because of
Statement to Congress
uncertainties about the speed and extent to
which the public may undertake such shifts.
Because of uncertainties about the relationship between M-l and the transactions demand
for money during the transition to the new ATS
service, and in view of the widening role in
financing transactions played by savings accounts, the Committee also indicated a growth
range for M-1 + (M-l plus savings accounts at
commercial banks, negotiable orders of withdrawal accounts, demand deposits at mutual
savings banks, and credit union share drafts)
that it expected to be generally consistent with
ranges of growth in the other aggregates. This
range has been set at 5 to 1V2 per cent over
the 1-year period ending in the third quarter of
1979.
The structure of the domestic payments system has been changing considerably over the
past several years as a result of regulatory
changes and financial innovations. Deposits in
thrift institutions have been increasingly used
for third-party payments. At banks, liquidity
reserves of the public, as well as funds held
against expected transactions needs, have come
to be held more and more outside of demand
accounts. On the other hand, banks and particularly thrift institutions have also lengthened the
maturity of consumer-type time deposit liabilities, so that some deposits have become less
money-like. And in general, distinctions among
depositary institutions with respect to their deposits have become increasingly blurred. Existing measures of the monetary aggregates are,
847
as a result, becoming outdated. The Federal
Reserve is studying possible adjustments to
these measures to reflect the changing institutional environment. The measure of M - l 4- represents an interim step in this process, while
a more comprehensive revision is under way.
It should be noted that one consequence of these
ongoing changes is a need for more timely and
broader reporting of deposit data—not only
from nonmember commercial banks but also
from thrift institutions.
While monetary aggregates are useful indicators of financial conditions, the continuing
change in the institutional environment and in
public preferences for different deposits indicates that any single monetary measure, or even
a set of several measures, can by no means be
the sole focus of policy. Thus, a broad range
of financial indicators—including nominal and
real interest rates, credit flows, and liquidity
conditions—necessarily must be considered in
assessing the stance of monetary policy.
Looking beyond these relatively technical
questions about how best to characterize monetary policy, it is clear that in the present environment we cannot rely solely on monetary
management to contain inflationary pressures.
It is essential to obtain public cooperation in
the administration's anti-inflationary program
and to exercise restraint in fiscal policy if the
Nation is to achieve a gradual, orderly reduction
in the rate of inflation. You can be assured that
monetary policy will do its part in achieving
that objective.
•
848
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON SEPTEMBER 19, 1978
1. D o m e s t i c P o l i c y D i r e c t i v e
The information reviewed at this meeting suggested that real output
of goods and services had been growing moderately in the current
quarter, but the rate of expansion appeared to be somewhat below
the average annual rate of about 4 per cent estimated by the
Commerce Department for the first two quarters of the year. The
rise in average prices—as measured by the fixed-weight price index
for gross domestic business product—slowed considerably from the
exceptional pace in the second quarter, but the rise was still
relatively rapid.
Staff projections for the period from the current quarter through
the second quarter of 1979 were little changed from those of a
month earlier. They continued to suggest that output would grow
moderately over the period and that the rate of inflation would
be rapid, although considerably below the average pace in the first
two quarters of 1978. The unemployment rate was expected to
change little from its August level.
In August the index of industrial production increased an estimated 0 . 5 per cent, close to the moderate gains in the preceding
3 months but well below the large increases in March and April.
Nonfarm payroll employment rose further in August, but the gain
was about half the monthly increase in the preceding 3 months.
In manufacturing, employment declined somewhat and the average
workweek continued to change little at a relatively high level. The
unemployment rate fell 0 . 3 of a percentage point to 5 . 9 per cent,
a rate slightly below the average in the first 7 months of the year.
Total private housing starts edged down in July. At an annual
rate of nearly 2.1 million units, however, starts were close to the
pace in the second quarter of 1978 and in the second half of 1977.
The latest Department of Commerce survey of business plans,
taken in late July and August, suggested that spending for plant
Record of Policy Actions of FOMC
and equipment would be 12.3 per cent greater in 1978 than in
1977, a somewhat larger increase than had been indicated 3 months
earlier. Businesses spent more in the second quarter of 1978 than
had been anticipated, and the latest survey still implied less expansion in spending over the second half of the year than over the
first half.
The dollar value of total retail sales rose in August, but the increase
followed a decline now indicated for July; on balance sales had
changed little since April. Unit sales of new automobiles, which had
declined in July, recovered in August almost to the advanced pace
of the second quarter.
The index of average hourly earnings for private nonfarm production workers rose little in August following a substantial increase in July; over the first 8 months of the year the index advanced
at an annual rate of about 8 per cent, somewhat more than it had
during 1977. Declines in prices of food products contributed to
a moderation in the rise of the consumer price index in July and
to a slight reduction in average prices of producer finished goods
in August; both price measures had risen at very rapid rates in
the first half of the year.
The trade-weighted value of the dollar against major foreign
currencies, which had declined sharply in early August, subsequently recovered against a background of uncertain conditions in
exchange markets. The recovery was triggered early in the intermeeting period by expressions of concern by U . S . officials, and
was reinforced by subsequent increases in U.S. short-term interest
rates and the announcement of expanded gold sales by the U . S .
Treasury. However, the dollar weakened in late August, when it
was announced that the U . S . trade deficit had increased sharply
in July, and at the time of this meeting the dollar was somewhat
below its level at the end of July.
After a surge in July, total credit at U.S. commercial banks
expanded at a substantially slower rate in August, mainly because
of large declines in bank holdings of U.S. Treasury securities and
in security loans. Growth in business loans accelerated further but
remained well below the average rate in the first half of 1978.
Outstanding commercial paper of nonfinancial businesses contracted slightly, following a sharp expansion in June and July.
Growth of the narrowly defined money supply ( M - l ) , which had
849
850
Federal Reserve Bulletin • November 1978
been at an average annual rate of about 5% per cent in June and
July, picked up in August to a rate of about 13A per cent, roughly
the same as the average in the first two quarters of the year. 1 Weekly
data suggested a further pick-up in September. Inflows of the
interest-bearing deposits included in M-2 and M-3 also accelerated
somewhat in August, reflecting primarily substantial flows of funds
into large-denomination time deposits at banks and into the 6-month
money market certificates at nonbank thrift institutions. As a result,
growth in the broader monetary aggregates was relatively rapid.
At its meeting on August 15 the Committee had decided on
ranges of tolerance for the annual rates of growth in M - l and M-2
over the August-September period of 4 to 8 per cent and 6 to
10 per cent, respectively. The Committee had agreed that early
in the coming inter-meeting period operations should be directed
toward a Federal funds rate of around 8 per cent. Subsequently,
if the 2-month growth rates of M - l and M-2 appeared to be
significantly above or below the midpoints of the indicated ranges,
the objective for the funds rate was to be raised or lowered in
an orderly fashion within a range of 7% to 8V* per cent.
Immediately following the August 15 meeting the Manager of
the System Open Market Account began to seek bank reserve
conditions consistent with an increase in the weekly-average Federal funds rate to around 8 per cent. Later in August, incoming
data suggested that growth in M - l would be at the upper limit
of the range specified by the Committee and that growth in M-2
would be close to the upper limit of its range. Accordingly, the
Manager sought reserve conditions consistent with a further increase in the Federal funds rate to 8V4 per cent, the upper limit
of the 13A to %lA per cent range specified for the inter-meeting
period.
In early September, available data suggested that both M - l and
M-2 would grow at rates significantly above the upper limits of
their respective ranges. With the Federal funds rate already at its
upper limit, the Committee decided on September 8, at a telephone
1
Revised measures of the monetary aggregates, reflecting new benchmark data
for deposits at nonmember banks and certain technical adjustments, were available
to the Committee at the time of this meeting and were published on September
21, 1978. On the basis of these revised figures, the annual rate of growth in
M - l was about 8 3 A per cent in August and about 8 per cent on the average
in the first two quarters of the year.
Record of Policy Actions of FOMC
conference meeting, to raise the upper limit of the range for the
Federal funds rate to
per cent and to instruct the Manager
to aim promptly for a weekly-average Federal funds rate of about
8% per cent. In the days remaining before this meeting the funds
rate fluctuated around 83/s per cent.
The rise in the Federal funds rate during the inter-meeting period
was accompanied by appreciable increases in rates on other shortterm market instruments. Yields on long-term securities, however,
generally edged down. In mid-September commercial banks raised
the rate on loans to prime business borrowers from 9% to 9Vi
per cent.
On August 18 the Board of Governors announced an increase
in Federal Reserve discount rates from llA to 73A per cent. In
announcing the increase, the Board stated that the action had been
taken in view of recent disorderly conditions in foreign exchange
markets as well as the continuing serious domestic inflationary
problem.
Conditions in residential mortgage markets, which had tightened
significantly during the first half of the year and then stabilized,
apparently had eased somewhat in recent weeks. Interest rates on
new commitments for conventional home mortgage loans at savings
and loan associations edged down during the inter-meeting interval,
and yields in the secondary mortgage market declined moderately.
In the Committee's discussion of the economic situation and
outlook, the members generally concurred with the staff's view
that real output of goods and services would grow at a moderate
pace over the period from the second quarter of 1978 to the second
quarter of 1979. At the same time, a number of members anticipated
a little less growth than the staff projected and one anticipated
a little more. The observation was made that even a slight shortfall
in growth of output from the rate projected by the staff implied
an upward drift in the unemployment rate.
All members of the Committee expected a continuation of a rapid
rate of inflation over the period to the second quarter of 1979—in
the view of several members, even more rapid than the pace
projected by the staff. As at other recent meetings, it was observed
that in 1979 pressures for large increases in wage rates would be
strong. It was also noted that in the near future the administration
was expected to announce a new anti-inflation program and that
851
852
Federal Reserve Bulletin • November 1978
the way in which such a program was perceived by businessmen
and consumers could have a considerable impact on attitudes and
expectations.
Although the members differed little in their assessments of the
most likely rate of growth in output over the next few quarters,
some of them called attention to elements of potential weakness
or strength in the current situation that could contribute to a different
outcome. One member observed, for example, that the business
expansion, having endured for a long time by historical standards,
was exhibiting some signs of potential weaknesses that were to
be expected at this stage. On the other hand, this member also
saw some indications of a pick-up in business activity in other
industrial countries that might be of sufficient magnitude to raise
demands for U . S . exports significantly—thereby enhancing growth
in output in this country, strengthening the dollar in foreign exchange markets, and contributing generally to improvement in
confidence.
A second member saw little, if any, evidence of the major
cyclical imbalances that characteristically developed during business expansions and brought on downturns in activity. Therefore,
the expansion appeared likely to continue. However, the very high
rate of inflation at present was seen as the main threat to a sustained
expansion.
Another member, noting that a recent survey had pointed to some
deterioration in business assessments of prospects for their own
companies as well as for the economy as a whole, suggested that
business investment spending in 1979—especially for fixed capital,
but also for inventories—could prove to be disappointing. And with
respect to fiscal policy, a member observed that the Federal budget
on the high employment basis had recently swung in the direction
of restraint, and that the stimulative impact of the prospective
reduction in Federal taxes would depend heavily on final decisions
concerning both its composition and its timing.
The one member who anticipated slightly faster growth than the
staff projected for the period through the first half of 1979 expressed
concern about certain developments that could have adverse consequences further in the future. Specifically, the current high rate
of construction of commercial buildings and of apartment houses
could lead to an excessive supply of such facilities and to a
Record of Policy Actions of FOMC
consequent drop in construction. At about the same time, in this
member's view, a sharp cyclical downswing in credit-financed
buying of certain consumer durable goods might develop.
At its meeting in July the Committee had agreed that from the
second quarter of 1978 to the second quarter of 1979 average rates
of growth in the monetary aggregates within the following ranges
appeared to be consistent with broad economic aims: M - l , 4 to
6V2 per cent; M-2, 6V2 to 9 per cent; and M-3, IV2 to 10 per
cent. The associated range for the rate of growth in commercial
bank credit was SV2 to 11V2 per cent. It had also been agreed that
the longer-run ranges, as well as the particular aggregates for which
such ranges were specified, would be subject to review and modification at subsequent meetings.
In the discussion of policy for the period immediately ahead,
considerable concern was expressed about recent rates of monetary
growth. It was observed that for an extended period of time M - l
had been growing at rates in excess of the longer-run range adopted
by the Committee and that a slowing of growth was necessary
in pursuit of the Committee's objective of resisting inflationary
pressures while encouraging continued moderate economic expansion. Most members believed that some additional firming in money
market conditions during the next few weeks was needed to help
assure a slowing in growth of money over the months ahead,
although they differed with respect to the degree of firming that
they thought the Committee ought to contemplate.
In this connection, the comment was made that current levels
of interest rates were not exerting as much restraint on credit flows
as might be supposed. Thus, it was observed, interest rates adjusted
for expected rates of inflation were not high and might even be
negative. Moreover, the degree of nonprice rationing of credit,
particularly credit for housing, had been reduced by such structural
changes in the financial system as the introduction of the 6-month
money market certificates.
Two members, stressing the magnitude of the increases in interest
rates that had already occurred, proposed that for the time being
operations be directed toward maintaining the money market conditions currently prevailing. It was argued that, in light of the recent
slowing of the expansion in economic activity and of uncertainties
in the economic outlook, such a "pause" would afford the Com-
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Federal Reserve Bulletin • November 1978
mittee an opportunity to evaluate additional evidence on the current
situation, including the effects of the recent increases in interest
rates. It was observed that, historically, growth in output had never
been held at about its trend rate for very long and that further
increases in interest rates at this time might slow growth to a rate
below trend or might even provoke an actual downturn.
With respect to operating specifications for the period immediately ahead, the most frequently proposed ranges for the annual
rate of growth in M - l over the September-October period were
4 to 8 per cent and 5 to 9 per cent; a narrower range of 6 to
8 per cent was also suggested. A few members proposed somewhat
higher ranges—in at least one case, because the lower ranges in
combination with the strong growth indicated for September implied more of a moderation of growth in October than appeared
likely. One member advocated a lower range. For M-2, the most
common range suggested was 6 to 10 per cent. Some members
advocated somewhat higher ranges, indicating, in a few cases, a
willingness to accept the continuing effects that the introduction
of the 6-month money market certificate was having on expansion
of time deposits at commercial banks.
Most of the members favored directing open market operations
toward an increase in the Federal funds rate to about 8V2 per cent
shortly after this meeting. In general, these members favored an
inter-meeting range of SV4 to 83A per cent, but two of them were
willing to accept, and another advocated, an upper limit of 9 per
cent. One member proposed directing open market operations
toward an increase in the funds rate to 8% per cent early in the
period and setting an inter-meeting range of SV2 to 9 l A per cent.
And the two members who indicated a preference for maintenance
of the prevailing money market conditions suggested an intermeeting range of 8x/4 to 8^2 per cent.
At the conclusion of the discussion the Committee decided that
ranges of tolerance for the annual rates of growth in M-1 and M-2
over the September-October period should be 5 to 9 per cent and
6V2 to 10% per cent, respectively. With regard to the Federal funds
rate, the Manager was instructed to seek a rate of around 8V2 per
cent early in the period until the next regular meeting. Subsequently, if the 2-month growth rates of M - l and M-2 appeared
to be significantly above or below the midpoints of the indicated
Record of Policy Actions of FOMC
ranges, the objective for the funds rate was to be raised or lowered
in an orderly fashion within a range of 8lA to S3A per cent. It
was also agreed that in assessing the behavior of the aggregates,
the Manager should give approximately equal weight to the behavior of M - l and M-2.
As is 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 real output
of goods and services has grown moderately in the current quarter,
although the pace is somewhat below the average for the first two
quarters of the year. In August the dollar value of total retail sales
rose, after having declined in July, but remained close to the level
reached in April. Industrial production continued to expand at about
the moderate pace of the preceding 3 months, and nonfarm payroll
employment rose somewhat further. The unemployment rate declined from 6.2 to 5.9 per cent, slightly below the average rate
in the first 7 months of the year. Since midyear average prices of
goods and services have risen less rapidly than earlier, in large
part because of declines in prices of foods. The advance in the
index of average hourly earnings has been somewhat faster so far
in 1978 than it had been on the average during 1977.
After a sharp decline in early August, the trade-weighted value
of the dollar against major foreign currencies has recovered against
a background of uncertain conditions in exchange markets. In late
August it was announced that the U.S. trade deficit had increased
sharply in July.
Growth in M-l picked up in August to about the average rate
in the first two quarters of the year. Inflows of the interest-bearing
deposits included in M-2 and M-3 also accelerated somewhat, and
expansion in the broader aggregates was relatively rapid. Short-term
market interest rates have risen appreciably since mid-August, but
longer-term rates generally have edged down further. On August
18 an increase in Federal Reserve discount rates from llA to 73A
per cent was announced.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster monetary and financial
855
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Federal Reserve Bulletin • November 1978
conditions that will resist inflationary pressures while encouraging
continued moderate economic expansion and contributing to a sustainable pattern of international transactions. At its meeting on July
18, 1978, the Committee agreed that these objectives would be
furthered by growth of M - l , M-2, and M-3 from the second quarter
of 1978 to the second quarter of 1979 at rates within ranges of
4 to 6V2 per cent, 6V2 to 9 per cent, and IV2 to 10 per cent,
respectively. The associated range for bank credit is 8V2 to IIV2
per cent. These ranges are subject to reconsideration at any time
as conditions warrant.
In the short run, the Committee seeks to achieve bank reserve
and money market conditions that are broadly consistent with the
longer-run ranges for monetary aggregates cited above, while giving
due regard to developing conditions in domestic and international
financial markets more generally. Early in the period until the next
regular meeting, System open market operations shall be directed
at attaining a weekly-average Federal funds rate slightly above the
current level. Subsequently, operations shall be directed at maintaining the weekly-average Federal funds rate within the range of
8V4 to 83A per cent. In deciding on the specific objective for the
Federal funds rate the Manager shall be guided mainly by the
relationship between the latest estimates of annual rates of growth
in the September-October period of M-l and M-2 and the following
ranges of tolerance: 5 to 9 per cent for M-l and 6V2 to IOV2 per
cent for M-2. If, giving approximately equal weight to M-l and
M-2, their rates of growth appear to be significantly above or below
the midpoints of the indicated ranges, the objective for the funds
rate shall be raised or lowered in an orderly fashion within its range.
If the rates of growth in the aggregates appear to be above the
upper limit or below the lower limit of the indicated ranges at a
time when the objective for the funds rate has already been moved
to the corresponding limit of its range, the Manager is promptly
to notify the Chairman who will then decide whether the situation
calls for supplementary instructions from the Committee.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Gardner, Jackson,
Partee, Mrs. Teeters, and Mr. Winn. Votes against
this action: Messrs. Wallich and Willes.
Messrs. Wallich and Willes dissented from this action because
they favored more vigorous measures to curb the rates of growth
in the monetary aggregates. They believed that such measures were
Record of Policy Actions of FOMC
essential to deal with the problem of inflation and that they could
be undertaken without a significant risk of precipitating a recession.
In their view, current levels of interest rates adjusted for expected
rates of inflation were not high.
2. Authorization for Domestic Open Market Operations
At this meeting, Committee members voted to increase from $3
billion to $4 billion the limit on changes between Committee
meetings in System Account holdings of U . S . Government and
Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective immediately,
for the period ending with the close of business on October 17,
1978.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Cold well, Eastburn, Gardner, Jackson,
Partee, Mrs. Teeters, Messrs. Wallich, Willes, and
Winn. Votes against this action: None.
This action was taken on the recommendation of the Management
of the System Account. The Management had advised that largescale purchases of Treasury and Federal agency securities over the
coming inter-meeting interval might be needed to counter the effect
on member bank reserves of a projected increase in Treasury
balances at the Reserve Banks arising from corporate tax receipts
in mid-September.
Subsequent to this meeting, on October 10, 1978, the Committee
voted to approve an additional increase of $1 billion, to $5 billion,
in the limit on changes between Committee meetings in U . S .
Government and Federal agency securities specified in paragraph
1(a) of the authorization for domestic open market operations,
effective immediately, for the period ending with the close of
business on October 17, 1978.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Gardner, Jackson,
Partee, Mrs. Teeters, Messrs. Wallich, Willes, and
Winn. Votes against this action: None.
This action was taken on recommendation of the Management
of the System Account. The Management had advised that, even
857
858
Federal Reserve Bulletin • November 1978
though the Committee had voted at its September 19 meeting to
raise the limit from $3 billion to $4 billion, large-scale purchases
of Treasury and Federal agency securities had reduced the leeway
for further purchases during the inter-meeting period to about $335
million. It now appeared likely that additional purchases would
be required as currency in circulation and other factors were
absorbing reserves while Treasury balances continued at a high
level, in part because of purchases of special Treasury securities
by foreign central banks in association with their recent intervention
in the foreign exchange markets.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual Report, are
released about a month after the meeting and are subsequently published in the
BULLETIN.
Law Department
Statutes, regulations, interpretations, and decisions
SECURITIES OF STATE MEMBER BANKS
The Board of Governors has amended its Regulation F consistent with recent amendments to
comparable regulations of the Securities and Exchange Commission, concerning (a) confidential
treatment for preliminary proxy and information
statements, (b) proposals by security holders, (c)
dissemination of proxy material to beneficial
owners of registered securities, (d) tender offer
statements, (e) consolidation and technical revisions of several items included in current, quarterly, and annual reports, and (f) stock appreciation rights.
Section 206.5(f)(5) is amended to read as follows:
(f) * * *
(5) All copies of material filed pursuant to
paragraph (1) or (2) of this section shall be clearly
marked 4 'Preliminary Copies" and shall be for the
information of the Board only and shall not be
deemed available for public inspection before definitive material has been filed with the Board
except that such material may be disclosed to any
department or agency of the United States Government and to the Congress and the Board may
make such inquiries or investigation in regard to
the material as may be necessary for an adequate
review thereof by the Board. All material filed
pursuant to paragraph (f) (1), (2), or (3) of this
section shall be accompanied by a statement of
the date on which definitive material filed pursuant
to paragraph (f)(3) of this section is intended to
be, or has been, released to security holders. All
material filed pursuant to paragraph (f)(4) of this
section shall be accompanied by a statement of
the date on which copies thereof are intended to
be released to the individuals who will make the
actual solicitation.
Section 206.5(k) is amended to read as follows:
*
*
*
*
*
(k) PROPOSALS OF SECURITY HOLDERS. (1)
If any security holder of an issuer notifies the
management of the issuer of his intention to present a proposal for action at a forthcoming meeting
of the issuer's security holders, the management
shall set forth the proposal in its proxy statement
and identify it in its form of proxy and provide
means by which security holders can make the
specification required by § 206.5(d)(2). If management issues an information statement pursuant
to paragraph (a) of this section, it shall identify
the proposal and indicate the disposition proposed
to be made of the proposal by the management
at the meeting. Management, however, need not
include a proposal in its information statement if
such proposal is submitted less than 60 days in
advance of a day corresponding to the date of
mailing a proxy statement or information statement
in connection with the last annual meeting of
security holders. Notwithstanding the foregoing,
the management shall not be required to include
the proposal in its proxy statement or form of
proxy unless the security holder (hereinafter, the
"proponent") has complied with the requirements
of this paragraph and paragraphs (k) (2) and (3)
of this section:
(i) Eligibility. At the time he submits the proposal, the proponent shall be a record or beneficial
owner of a security entitled to be voted at the
meeting on his proposal, and he shall continue to
own such security through the date on which the
meeting is held. If the management requests documentary support for a proponent's claim that he
is a beneficial owner of a voting security of the
issuer, the proponent shall furnish appropriate
documentation within 10 business days after receiving the request. In the event the management
includes the proponent's proposal in its proxy
soliciting materials for the meeting and the proponent fails to comply with the requirement that he
continuously be a voting security holder through
the meeting date, the management shall not be
required to include any proposal submitted by the
860
Federal Reserve Bulletin • November 1978
proponent in its proxy soliciting materials for any
meeting held in the following two calendar years.
(ii) Notice. The proponent shall notify the
management in writing of his intention to appear
personally at the meeting to present his proposal
for action. The proponent shall furnish the requisite notice at the time he submits the proposal,
except that if he was unaware of the notice requirement at that time he shall comply with it
within 10 business days after being informed of
it by the management. If the proponent, after
furnishing in good faith the notice required by this
provision, subsequently determines that he will be
unable to appear personally at the meeting, he shall
arrange to have another security holder of the
issuer present his proposal on his behalf at the
meeting. In the event the proponent or his proxy
fails, without good cause, to present the proposal
for action at the meeting, the management shall
not be required to include any proposals submitted
by the proponent in its proxy soliciting materials
for any meeting held in the following two calendar
years.
(iii) Timeliness. The proponent shall submit his
proposal sufficiently far in advance of the meeting
so that it is received by the management within
the following time periods:
(A) Annual meetings. A proposal to be presented at an annual meeting shall be received by
the management at the issuer's principal executive
offices not less than 90 days in advance of a date
corresponding to the date set forth on the management's proxy statement released to security holders
in connection with the previous year's annual
meeting of security holders, except that no annual
meeting was held in the previous year or the date
of the annual meeting has been changed by more
than 30 calendar days from the date of the previous
year's annual meeting a proposal shall be received
by the management a reasonable time before the
solicitation is made.
(B) Other meetings. A proposal to be presented
at any meeting other than an annual meeting shall
be received at a reasonable time before the solicitation is made.
NOTE.—In order to curtail controversy as to the date
on which a proposal was received by the management,
it is suggested that proponents submit their proposals
by Certified Mail-Return Receipt Requested.
(iv) Number and length of proposals. The proponent may submit a maximum of two proposals
of not more than 300 words each for inclusions
in the management's proxy materials for a meeting
of security holders. If the proponent fails to
comply with either of these requirements, or if
he fails to comply with the 200-word limit on
supporting statements mentioned in paragraph
(k)(2) of this section, he shall be provided the
opportunity by the management to reduce, within
10 business days, the items submitted by him to
the limits required by this rule.
(2) If the management opposes any proposal
received from a proponent, it shall also, at the
request of the proponent, include in its proxy
statement a statement of the proponent of not more
than 200 words in support of the proposal, which
statement shall not include the name and address
of the proponent. The statement and request of
the proponent shall be furnished to the management at the time that the proposal is furnished,
and neither the management nor the issuer shall
be responsible for such statement. The proxy
statement shall also include either the name and
address of the proponent or a Statement that such
information will be furnished by the issuer or by
the Board to any person, orally or in writing as
requested, promptly upon the receipt of any oral
or written request therefor. If the name and address
of the proponent are omitted from the proxy statement, they shall be furnished to the Board at the
time of filing the management's preliminary proxy
material pursuant to § 206.5(f)(1).
(3) The management may omit a proposal and
any statement in support thereof from its proxy
statement and form of proxy under any of the
following circumstances:
(i) If the proposal is, under the laws of the
issuer's domicile, not a proper subject for action
by security holders;
NOTE.—A proposal that may be improper under the
applicable State law when framed as a mandate or
directive may be proper when framed as a recommendation or request.
(ii) If the proposal would, if implemented, require the issuer to violate any State law or Federal
law of the United States, or any law of any foreign
jurisdiction, to which the issuer is subject, except
that this provision shall not apply with respect to
any foreign law compliance with which would be
violative of any State law or Federal law of the
United States;
(iii) If the proposal or the supporting statement
is contrary to any of the Board's proxy rules and
regulations, including § 206.5(h) which prohibits
false or misleading statements in proxy soliciting
materials;
(iv) If the proposal relates to the enforcement
of a personal claim or the redress of a personal
Law Department
grievance against the issuer, its management, or
any other person;
(v) If the proposal deals with a matter that is
not significantly related to the issuer's business;
(vi) If the proposal deals with a matter that is
beyond the issuer's power to effectuate;
(vii) If the proposal deals with a matter relating
to the conduct of the ordinary business operations
of the issuer;
(viii) If the proposal relates to an election to
office;
(ix) If the proposal is counter to a proposal to
be submitted by the management at the meeting;
(x) If the proposal has been rendered moot;
(xi) If the proposal is substantially duplicative
of a proposal previously submitted to the management by another proponent, which proposal will
be included in the management's proxy materials
for the meeting;
(xii) If substantially the same proposal has previously been submitted to security holders in the
management's proxy statement and form of proxy
relating to any annual or special meeting of security holders held within the preceding five calendar
years, it may be omitted from the management's
proxy materials relating to any meeting of security
holders held within three calendar years after the
latest such previous submission; Provided, That—
(A) If the proposal was submitted at only one
meeting during such preceding period, it received
less than 3 per cent of the total number of votes
cast in regard thereto; or
(B) If the proposal was submitted at only two
meetings during such preceding period, it received
at the time of its second submission less than 6
per cent of the total number of votes cast in regard
thereto; or
(C) If the proposal was submitted at three or
more meetings during such preceding period, it
received at the time of its latest submission less
than 10 per cent of the total number of votes cast
in regard thereto; and
(xiii) If the proposal relates to specific amounts
of cash or stock dividends.
(4) Whenever the management asserts, for any
reason, that a proposal and any statement in support thereof received from a proponent may properly be omitted from its proxy statement and form
of proxy, it shall file with the Board, not later
than 50 days prior to the date the preliminary
copies of the proxy statement and form of proxy
are filed pursuant to § 206.5(f)(1), or such shorter
period prior to such date as the Board or its staff
may permit, five copies of the following items:
861
(i) The proposal; (ii) any statement in support
thereof as received from the proponent; (iii) a
statement of the reasons why the management
deems such omission to be proper in the particular
case; and (iv) where such reasons are based on
matters of law, a supporting opinion of counsel.
The management shall at the same time, if it has
not already done so, notify the proponent of its
intention to omit the proposal from its proxy
statement and form of proxy and shall forward to
him a copy of the statement of reasons why the
management deems the omission of the proposal
to be proper and a copy of such supporting opinion
of counsel.
Section 206.5(c)(3) is amended to read as follows:
(c) * * *
(3) If the bank knows that securities of any class
entitled to vote at a meeting with respect to which
the bank intends to solicit proxies, consents or
authorizations are held of record by a broker,
dealer, bank, or voting trustee, or their nominees,
the bank shall inquire of such record holder at least
10 days prior to the record date for the meeting
of security holders (or at such later time as the
rules of a national securities exchange on which
the class of securities in question is listed may
permit for good cause shown), whether other persons are the beneficial owners of such securities
and, if so, the number of copies of the proxy and
other soliciting material and, in the case of an
annual meeting at which directors are to be
elected, the number of copies of the annual report
to security holders, necessary to supply such material to beneficial owners. The bank shall supply
such record holder in a timely manner with additional copies in such quantities assembled in such
form and at such a place, as the record holder
may reasonably request in order to address and
send one copy of each to each beneficial owner
of securities so held and shall, upon the request
of such record holder, pay its reasonable expenses
for completing the mailing of such material to
security holders to whom the material is sent.
Section 206.5(c)(4) is amended to read as follows:
(c)
^ ^
(4) If the bank's list of security holders indicates that some of its securities are registered in
the name of a clearing agency registered pursuant
to section 17A of the Act, a bank shall make
appropriate inquiry of the agency and thereafter
862
Federal Reserve Bulletin • November 1978
of the participants in such agency who may hold
on behalf of a beneficial owner, and shall comply
with § 206.5(c)(3) with respect to any such participant.
Sections 206.5(1) (1), (3)(iv), (4), and (7) are
amended to read as follows:
(1) INVITATIONS FOR TENDERS. (1) No person, directly or indirectly, by use of the mails or
any means or instrumentality of inter-State commerce or of any facility of a national securities
exchange or otherwise, shall make a tender offer
for, or a request or invitation for tenders of, any
class of any equity security which is registered
pursuant to section 12 of the Act of any member
State bank, if, after consummation thereof, such
person would, directly or indirectly, be the beneficial owner of more than 5 per centum of such
class, unless, at the time copies of the offer or
request or invitation are first published or sent or
given to security holders, such person has filed
with the Board a statement containing the information and exhibits required by Form F-13.
(3) * * *
(iv) The information required by Items 1(c),
2(b), 2(e), 2(f), and 2(g), 3, 4, 5, 6, 7, 8, 9,
and 10 of Form F-13 or a fair and adequate
summary thereof.
Instructions. 1. Negative responses to any such
item or subitem of Form F-13 need not be included
in the information published or sent or given to
security holders.
2. If the information required by Item 9 of Form
F-13 is summarized, appropriate instructions
should be included stating how more complete
financial information can be obtained.
(4) Any additional material soliciting or requesting such tender offer subsequent to the initial
solicitation or request shall contain the name of
the persons making such solicitation or request and
the information required by Items 1(c), 2(b), 2(e),
2(f) and 2(g), 3, 4, 5, 6, 7, 8, 9, and 10 of Form
F-13, or a fair and adequate summary thereof;
Provided, however, That such material may omit
any of such information previously furnished to
the persons solicited or requested for tender offers.
Copies of such additional material soliciting or
requesting such tender offers shall be filed with
the Board not later than the time copies of such
material are first published or sent or given to
security holders.
(7) Ten copies of the statement required by
paragraph (1), every amendment to such statement
and all other material required by this rule and
such statement shall be filed with the Board.
Form F - l l (12 CFR 206.47) is amended by
deleting the words 44or § 206.5(1)" from the title
of that form and deleting all of Item 7 and substituting the words, 4 'Item 7 " for "Item 8 " , and
Form F-13 (12 CFR 206.54) is adopted to read
as follows:
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
FORM F-13
Tender offer statement pursuant to section
14(d)(1) of the Securities Exchange Act of 1934,
(Amendment No.
),
(Name
of Subject Bank),
(Bidder),
(Title of Class of Securities),
(Name, address and telephone number of person authorized to receive
notices and communications on behalf of bidder).
Instructions. 1. Eight copies of this statement,
including all exhibits, and two additional copies
of this statement, including only the exhibits described in Item 11(a) of this statement, should be
filed with the Board.
2. No fee is required to be paid to the Board
in connection with the filing of the initial statement
or amendments thereto.
General Instructions. A. The item numbers and
captions of the items shall be included but the
answers to the items shall be so prepared as to
indicate clearly the coverage of the items without
referring to the text of the items. Answer every
item. If an item is inapplicable or the answer is
in the negative, so state.
B. Information contained in exhibits to the
statement may be incorporated by reference in
answer or partial answer to any item or sub-item
of the statement unless it would render such answer incomplete, unclear or confusing. Matter
incorporated by reference shall be clearly identified in the reference by page, paragraph, caption
or otherwise. An express statement that the specified matter is incorporated by reference shall be
made at the particular place in the statement where
the information is required.
Law Department
C. If the statement is filed by a partnership,
limited partnership, syndicate or other group, the
information called for by Items 2-7, inclusive,
shall be given with respect to: (i) Each partner
of such partnership; (ii) each partner who is denominated as a general partner or who functions as
a general partner of such limited partnership; (iii)
each member of such syndicate or group; and (iv)
each person controlling such partner or member.
If the statement is filed by a corporation, or if
a person referred to in (i), (ii), (iii) or (iv) of this
Instruction is a corporation, the information called
for by the above mentioned items shall be given
with respect to: (a) Each executive officer and
director of such corporation; (b) each person controlling such corporation; and (c) each executive
officer and director of any corporation ultimately
in control of such corporation. Executive officer
shall mean the president, secretary, treasurer and
any vice president in charge of a principal business
function (such as sales, administration or finance)
and any other person who performs similar policymaking functions for the corporation. A response
to an item in the statement is required with respect
to the bidder and to all other persons referred to
in this instruction unless such item specifies to the
contrary.
D. Upon termination of the tender offer, the
bidder shall promptly file a final amendment to
Form F-13 disclosing all material changes in the
items of that Form and stating that the tender offer
has terminated, the date of such termination and
the results of such tender offer.
E. If the bidder, before filing this statement,
has filed a Form F-11 with respect to the acquisition of securities of the same class referred to in
Item 1(a) of this statement, the bidder shall amend
such Form F - l l and may do so by means of this
statement and amendments thereto, including the
final amendment required to be filed by Instruction
D: Provided, That the bidder indicates on the cover
sheet of this statement that it is amending its Form
F - l l by means of this statement.
F. The Final amendment required to be filed
by Instruction D shall be deemed to satisfy the
reporting requirements of section 13(d) of the Act
with respect to all securities acquired by the bidder
pursuant to the tender offer as reported in such
final amendment.
G. For purposes of this statement, the following
definitions shall apply:
(i) The term "bidder" means any person on
whose behalf a tender offer is made; and
(ii) The term "subject bank" means any bank
863
whose securities are sought by a bidder pursuant
to a tender offer.
Item 1. Security and subject bank, (a) State the
name of the subject bank and the address of its
principal executive offices;
(b) State the exact title and the number of shares
outstanding of the class of equity securities being
sought (which may be based upon information
contained in the most recently available filing with
the Board by the subject bank unless the bidder
has reason to believe such information is not
current), the exact amount of such securities being
sought and the consideration being offered therefor; and
(c) Identify the principal market, if any, in
which such securities are traded and state the high
and low sales prices for such securities in such
principal market (or, in the absence thereof, the
range of high and low bid quotations) for each
quarterly period during the past two years.
Item 2. Identity and background. If the person
filing this statement or any person enumerated in
Instruction C of this statement is a corporation,
partnership, limited partnership, syndicate or other
group of persons, state its name, the State or other
place of its organization, its principal business,
the address of its principal office and the information required by (e) and (f) of this Item. If the
person filing this statement or any person enumerated in Instruction C is a natural person, provide the information specified in (a) through (g)
of this Item with respect to such person(s).
(a) Name;
(b) Residence or business address;
(c) Present principal occupation or employment
and the name, principal business and address of
any corporation or other organization in which
such employment or occupation is conducted;
(d) Material occupations, positions, offices or
employments during the last five years, giving the
starting and ending dates of each and the name,
principal business and address of any business
corporation or other organization in which such
occupation, position, office or employment was
carried on. Instruction. If a person has held various
positions with the same organization, or if a person
holds comparable positions with multiple related
organizations, each and every position need not
be specifically disclosed.
(e) Whether or not, during the last five years,
such person has been convicted in a criminal
proceeding (excluding traffic violations or similar
misdemeanors) and, if so, give the dates, nature
of conviction, name and location of court, and
864
Federal Reserve Bulletin • November 1978
penalty imposed or other disposition of the case.
Instruction. While a negative answer to this subitem is required in this schedule, it need not be
furnished to security holders.
(f) Whether or not, during the last five years,
such person was a party to a civil proceeding of
a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was
or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting activities subject to, Federal or State securities or
banking laws or finding any violation of such laws;
and, if so, identify and describe such proceeding
and summarize the terms of such judgment, decree
or final order. Instruction. While a negative answer
to this sub-item is required in this schedule, it need
not be furnished to security holders.
(g) Citizenship(s).
Item 3. Past contacts, transactions or negotiations with the subject bank, (a) Briefly state the
nature and approximate amount (in dollars) of any
transaction, other than those described in Item 3(b)
of this Form and those in the ordinary course of
the bank's business, which has occurred since the
commencement of the subject bank's third full
fiscal year preceding the date of this schedule,
between the person filing this schedule (including
those persons enumerated in Instruction C of this
schedule) and:
(1) The subject bank or any of its affiliates
which are corporations: Provided, however, That
no disclosure need be made with respect to any
transaction if the aggregate amount involved in
such transaction was less than 1 per cent of the
subject bank's consolidated income (which may
be based upon information contained in the most
recently available filing with the Board by the
subject bank, unless the bidder has reason to
believe otherwise) (i) for the fiscal year in which
such transaction occurred or, (ii) for the portion
of the current fiscal year which has occurred, if
the transaction occurred in such year; and
(2) The executive officers, directors or affiliates
of the subject bank which are not corporations if
the aggregate amount involved in such transaction
or in a series of similar transactions, including all
periodic installments in the case of any lease or
other agreement providing for periodic payments
or installments, exceeds $40,000.
(b) Describe any contacts, negotiations or
transactions, other than those in the ordinary
course of the bank's business which have occurred
since the commencement of the subject bank's
third full fiscal year preceding the date of this
schedule between the bidder or its subsidiaries
(including those persons enumerated in Instruction
C of this schedule) and the subject bank or its
affiliates or any shareholder owning more than 10
per cent of the outstanding shares of the subject
bank concerning: a merger, consolidation or acquisition; a tender offer or other acquisition of
securities; an election of directors; or a sale or
other transfer of a material amount of assets.
Item 4. Source and amount of funds or other
consideration, (a) State the source and the total
amount of funds or other consideration for the
purchase of the maximum number of securities for
which the tender offer is being made.
(b) If all or any part of such funds or other
consideration are or are expected to be, directly
or indirectly, borrowed for the purpose of the
tender offer:
(1) Provide a summary of each loan agreement
or arrangement containing the identity of the parties, the term, the collateral^ the stated and effective interest rates, and other material terms or
conditions relative to such loan agreement; and
(2) Briefly describe any plans or arrangements
to finance or repay such borrowings, or if no such
plans or arrangements have been made, make a
statement to that effect.
(c) If the source of all or any part of the funds
to be used in the tender offer is a loan made in
the ordinary course of business by a bank as
defined by section 3(a)(6) of the Act, the name
of such bank shall not be made available to the
public if the person filing the statement so requests
in writing and files such request, naming such
bank, with the Secretary of the Board.
(d) If the source of all or any part of the funds
to be used in the tender offer is a loan made by
a bank as defined by section 3(a)(6) of the Act,
indicate whether there exists any agreement, arrangement, or understanding pursuant to which the
subject bank maintains or would maintain a correspondent deposit account at such lending bank.
Item 5. Purpose of the tender offer and plans
or proposals of the bidder. State the purpose or
purposes of the tender offer for the subject bank's
securities. Describe any plans or proposals which
relate to or would result in:
(a) An extraordinary corporate transaction,
such as a merger, reorganization or liquidation,
involving the subject bank or any of its subsidiaries;
(b) A sale or transfer or a material amount of
assets of the subject bank or any of its subsidiaries;
(c) Any change in the present board of directors
Law Department
or management of the subject bank including, but
not limited to, any plans or proposals to change
the number or the term of directors or to fill any
existing vacancies on the board;
(d) Any material change in the present capitalization or dividend policy of the subject bank;
(e) Any other material change in the subject
bank's corporate structure or business;
(f) Causing a class of securities of the subject
bank to be delisted from a national securities
exchange or to cease to be authorized to be quoted
in an inter-dealer quotation system of a registered
national securities association; or
(g) A class of equity securities of the subject
bank becoming eligible for termination of registration pursuant to section 12(g)(4) of the Act.
Item 6. Interest in securities of the subject bank,
(a) State the aggregate number and percentage of
the class represented by such shares (which may
be based on the number of shares outstanding as
contained in the most recently available filing with
the Board by the subject bank unless the bidder
has reason to believe such information is not
current), beneficially owned (identifying those
shares for which there is a right to acquire) by
each person named in Item 2 of this schedule and
by each associate and majority-owned subsidiary
of such person giving the name and address of
any such associate or subsidiary.
(b) Describe any transaction in the class of
securities reported on that was effected during the
past 60 days by the persons named in response
to paragraph (a) of this Item or by any executive
officer, director or subsidiary of such person.
Instructions. 1. The description of a transaction
required by Item 6(b) shall include, but not necessarily be limited to: (1) The identity of the person
covered by Item 6(b) who effected the transaction;
(2) the date of the transaction; (3) the amount of
securities involved; (4) the price per share; and
(5) where and how the transaction was effected.
2. If the information required by Item 6(b) of
this schedule is available to the bidder at the time
this statement is initially filed with the Board, such
information should be included in such initial
filing. However, if such information is not available to the bidder at the time of such initial filing,
it should be filed with the Board promptly but in
no event later than two business days after the
date of such filing and, if material, should be
disclosed to security holders of the subject bank
in a manner similar to that in which the tender
offer was first published, sent or given to such
security holders. The procedure specified by this
865
instruction is provided for the purpose of maintaining the confidentiality of the tender offer in
order to avoid possible misuse of inside information.
Item 7. Contracts, arrangements, understandings or relationships with respect to the subject
bank's securities. Describe any contract, arrangement, understanding or relationship (whether or
not legally enforceable) between the bidder (including those persons enumerated in Instruction
C to this schedule) and any person with respect
to any securities of the subject bank (including,
but not limited to, any contract, arrangement,
understanding or relationship concerning the
transfer or the voting of any of such securities,
joint ventures, loan or option arrangements, puts
or calls, guarantees of loans, guarantees against
loss, or the giving or withholding of proxies),
naming the persons with whom such contracts,
arrangements, understandings or relationships
have been entered into and giving the material
provisions thereof. Include such information for
any of such securities that are pledged or otherwise
subject to contingency, the occurrence of which
would give another person the power to direct the
voting or disposition of such securities, except that
disclosure of standard default and similar provisions contained in loan agreements need not be
included.
Item 8. Persons retained, employed or to be
compensated. Identify all persons and classes of
persons employed, retained or to be compensated
by the bidder, or by any person on the bidder's
behalf, to make solicitations or recommendations
in connection with the tender offer and describe
briefly the terms of such employment, retainer or
arrangement for compensation.
Item 9. Financial statements of certain bidders.
Where the bidder is other than a natural person
and the bidder's financial condition is material to
a decision by a security holder of the subject
company whether to sell, tender or hold securities
being sought in the tender offer, furnish current,
adequate financial information concerning the bidder Provided, That if the bidder is controlled by
another entity which is not a natural person and
has been formed for the purpose of making the
tender offer, furnish current, adequate financial
information concerning such parent.
Instructions. 1. The facts and circumstances
concerning the tender offer, particularly the terms
of the tender offer, may influence a determination
as to whether disclosure of financial information
is material. However, once the materiality re-
866
Federal Reserve Bulletin • November 1978
quirement is applicable, the adequacy of the financial information will depend primarily on the
nature of the bidder.
In order to provide guidance in making this
determination, the following types of financial
information will be deemed adequate for purposes
of this item for the type of bidder specified: (a)
Financial statements prepared in compliance with
Form 10 of the Securities and Exchange Commission (17 CFR 249.210) for a domestic bidder
which is otherwise eligible to use such form; and
(b) financial statements prepared in compliance
with Form 20 of the Securities and Exchange
Commission (17 CFR 249.220) for a foreign bidder which is otherwise eligible to use such form.
2. The financial statements required by this item
need not be audited if such audited financial statements are not available or obtainable without unreasonable cost or expense and a statement is made
to that effect disclosing the reasons therefor.
Item 10. Additional information. If material to
a decision by a security holder whether to sell,
tender or hold securities being sought in the tender
offer, furnish information as to the following:
(a) Any present or proposed material contracts,
arrangements, understandings or relationships between the bidder or any of its executive officers,
directors, controlling persons or subsidiaries and
the subject bank or any of its executive officers,
directors, controlling persons or subsidiaries (other
than any contract, arrangement or understanding
required to be disclosed pursuant to Items 3 or
7 of this schedule);
(b) To the extent known by the bidder after
reasonable investigation, the applicable regulatory
requirements which must be complied with or
approvals which must be obtained in connection
with the tender offer;
(c) The applicability of antitrust laws;
(d) The applicability of the margin requirements of section 7 of the Act and the regulations
promulgated thereunder;
(e) Any material pending legal proceedings relating to the tender offer including the name and
location of the court or agency in which the
proceedings are pending, the date instituted, the
principal parties thereto and a brief summary of
the proceedings; and
Instruction. In connection with this sub-item,
a copy of any document relating to a major development (such as pleadings, an answer, complaint,
temporary restraining order, injunction, opinion,
judgment or order) in a material pending legal
proceeding should be promptly furnished to the
Board on a supplemental basis.
(f) Such additional material information, if any,
as may be necessary to make the required statements, in light of the circumstances under which
they are made, not materially misleading.
Item 11. Material to be Filed as Exhibits. Furnish a copy of: (a) Tender offer material which
is published, sent or given to security holders by
or on behalf of the bidder in connection with the
tender offer;
(b) Any loan agreement referred to in Item 4
of this schedule. Instruction. The identity of any
bank, other than the subject bank, which is a party
to a loan agreement need not be disclosed if the
person filing the statement has requested that the
identity of such bank not be made available to
the public pursuant to Item 4 of this schedule;
(c) Any document setting forth the terms of any
contracts, arrangements, understandings or relationships referred to in Item 7 or 10(a) of this
schedule;
(d) Any written opinion prepared by legal
counsel at the bidder's request and communicated
to the bidder pertaining to the tax consequences
of the tender offer;
(e) In an exchange offer where securities of the
bidder have been or are to be registered under the
Securities Act of 1933, the prospectus containing
the information required to be included therein by
Rule 434b of the Securities and Exchange Commission (17 CFR 230.434b);
(f) If any oral solicitation of security holders
is to be made by or on behalf of the bidder, any
written instruction, form or other material which
is furnished to the persons making the actual oral
solicitation for their use, directly or indirectly, in
connection with the tender offer.
Signature. After due inquiry and to the best of
my knowledge and belief, I certify that the information set forth in this statement is true, complete
and correct.
Signature
Name and title
Date
The original statement shall be signed by each
person on whose behalf the statement is filed or
his authorized representative. If the statement is
signed on behalf of a person by his authorized
representative (other than an executive officer or
general partner of the bidder), evidence of the
representative's authority to sign on behalf of such
person shall be filed with the statement. The name
Law Department
and any title of each person who signs the statement shall be typed or printed beneath his signature.
Section 206.4(h)(1) of Regulation F is amended
to read as follows:
(h) * * *
(1) Every registrant bank shall file a current
report in conformity with the requirements of Form
F-3 within the period specified in that form unless
substantially the same information as that required
by Form F-3 has been previously reported by the
bank.
Section 206.43 is amended to read as follows:
SECTION 2 0 6 . 4 3 — F O R M FOR C U R R E N T
REPORT OF A B A N K (FORM
F-3).
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
FORM F-3
Current Report
Pursuant to section 13 of the Securities Exchange Act of 1934. For the month of
, 19
(Exact name of bank as specified in charter)
(Address of principal office)
GENERAL INSTRUCTIONS
A. Rule as to Use of Form F-3.—Form F-3 shall
be used for current reports under Section 13 of
the Securities Exchange Act of 1934, filed pursuant to § 206.4(h) of Regulation F (12 CFR
206.4(h)).
B. Events to be Reported and Filing of Reports.—A report on this form is required to be
filed upon the occurrence of any one or more of
the events specified in the items of this form.
Reports are to be filed within 15 days after the
occurrence of the earliest event required to be
reported. However, reports which disclose events
pursuant to Item 5 may be filed within 10 days
after the close of the month during which the event
occurred. If the letter from the independent accountants to be furnished pursuant to Item 4(d)
is unavailable at the time of filing. It shall be filed
within thirty days thereafter. Moreover, if substantially the same information as that required by
this form has been previously reported by the
bank, an additional report of the information on
867
this form need not be made. The term 4 'previously
reported" is defined in § 206.2(v) of Regulation
F (12 CFR 206.2(v)).
C. Application of Regulation F.—(a) Regulation F (12 CFR Part 206) contains certain general
requirements which are applicable to reports on
any form. These general requirements should be
carefully read and observed in the preparation and
filing of reports on this form.
(b) Particular attention is directed to § 206.4 of
Regulation F (12 CFR 206.4) which contains general requirements regarding matters such as the
kind and size of paper to be used, the legibility
of the report, the information to be given whenever
the title of securities is required to be stated, and
the filing of the Report. The definitions contained
in § 206.2 should be especially noted.
D. Preparation of Report. This form is not to
be used as a blank form to be filled in, but only
as a guide in the preparation of the report on paper
meeting the requirements of § 206.4(t) of Regulation F (12 CFR 206.4(t)). The report shall contain
the numbers and captions of all applicable items,
but the text of such items may be omitted, provided the answers thereto are prepared in the
manner specified in § 206.4(u) of Regulation F (12
CFR 206.4(u)). All items which are not required
to be answered in the particular report may be
omitted and no reference thereto need be made
in the report. All instructions should also be omitted.
E. Signature and filing of report.—Three complete copies of the report, including any financial
statements, exhibits of other papers or documents
filed as a part thereof, and five additional copies
which need not include exhibits, shall be filed with
the Board. At least one complete copy of the
report, including any financial statements, exhibits
or other papers or documents filed as a part thereof,
shall be filed with each exchange on which any
class of securities of the bank is registered. At
least one complete copy of the report filed with
the Board and one such copy filed with an exchange shall be manually signed. Copies not manually signed shall bear typed or printed signatures.
INFORMATION TO B E INCLUDED IN THE REPORT
ITEM 1. CHANGES IN CONTROL OF BANK
(a) If, to the knowledge of management, a
change in control of the Bank has occurred, state
the name of the person(s) who acquired such
control; the amount and the source of the consideration used by such person(s); the basis of the
868
Federal Reserve Bulletin • November 1978
control; the date and a description of the transaction^) which resulted in the change in control;
the percentage of voting securities of the bank now
beneficially owned directly or indirectly by the
person(s) who acquired control; and the identity
of the person(s) from whom control was assumed.
If the source of all or any part of the consideration
used is a loan made in the ordinary course of
business by a bank as defined by Section 3(a)(6)
of the Act, the identity of such bank shall be
omitted provided a request for confidentiality has
been made pursuant to Section 13(d)(1)(B) of the
Act by the person(s) who acquired control. In lieu
thereof, the material shall indicate that disclosure
of the identity of the bank has been so omitted
and filed separately with the Board.
Instructions. 1. State the terms of any loans or
pledges obtained by the new control group for the
purpose of acquiring control, and the names of
the lenders or pledgees.
2. Any arrangements or understandings among
members of both the former and new control
groups and their associates with respect to the
election of directors or other matters shall be
described.
(b) Describe any contractual arrangements, including any pledge of securities of the Bank, or
any of its parents, known to management, the
operation of the terms of which may at a subsequent date result in a change in control of the bank.
Instruction. Paragraph (b) does not require a
description of ordinary default provisions contained in the charter, trust indentures or other
governing instruments relating to securities of the
bank.
(c) If the source of all or any part of the funds
used to acquire control of the bank is a loan made
by a bank as defined in section 3(a)(6) of the Act,
indicate whether there exists any agreement, arrangement, or understanding pursuant to which the
registrant bank maintains or would maintain a
correspondent deposit account at such lending
bank.
ITEM 2 . ACQUISITION OR DISPOSITION OF ASSETS
If the bank or any of its majority-owned subsidiaries has acquired or disposed of a significant
amount of assets, otherwise than in the ordinary
course of business, furnish the following information:
(a) The date and manner of the acquisition or
disposition and a brief description of the assets
involved, the nature and amount of consideration
given or received therefor, the principle followed
in determining the amount of such consideration,
the identity of the person(s) from whom the assets
were acquired or to whom they were sold and the
nature of any material relationship between such
person(s) and the registrant or any of its affiliates,
any director or officer of the registrant, or any
associate of any such director or officer.
(b) If any assets so acquired by the registrant
or its subsidiaries constituted plant, equipment or
other physical property, state the nature of the
business in which the assets were used by the
person(s) from whom acquired and whether the
bank intends to continue such use or intends to
devote the assets to other purposes, indicating such
other purposes.
Instructions. 1. No information need be given
as to (i) any transaction between any person and
any wholly-owned subsidiary of such person; (ii)
any transaction between two or more whollyowned subsidiaries of any person; or (iii) the
redemption or other acquisition of securities from
the public, or the sale or other disposition of
securities to the public, by the issuer of such
securities.
2. The term "acquisition" includes every purchase, acquisition by lease, exchange, merger
consolidation, succession or other acquisition;
provided, that such term does not include the
construction or development of property by or for
the bank or its subsidiaries or the acquisition of
materials for such purpose. The term ''disposition' ' includes every sale, disposition by lease,
exchange, merger, consolidation, mortgage, or
hypothecation of assets, assignment, whether for
the benefit of creditors or otherwise, abandonment,
destruction, or other disposition.
3. The information called for by this item is
to be given as to each transaction or series of
related transactions of the size indicated. The
acquisition or disposition of securities shall be
deemed the indirect acquisition or disposition of
the assets represented by such securities if it results
in the acquisition or disposition of control for such
assets.
4. An acquisition or disposition shall be
deemed to involve a significant amount of assets
(i) if the bank's and its other subsidiaries' equity
in the net book value of such assets or the amount
paid or received therefor upon such acquisition or
disposition exceeded 10 per cent of the total equity
capital of the bank and its consolidated subsidiaries, (ii) if it involved the succession to or disposition of a business which would meet the test of
a significant subsidiary, or (iii) if it involved the
Law Department
acquisition or disposition of an interest in a business which would meet the test of a significant
subsidiary and would be required to be accounted
for by the equity method.
5. Where assets are acquired or disposed of
through the acquisition or disposition of control
of a person, the person from whom such control
was acquired or to whom it was disposed of shall
be deemed the person from whom the assets were
acquired or to whom they were disposed of, for
the purposes of this item. Where such control was
acquired from or disposed of to not more than five
persons, their names shall be given; otherwise it
will suffice to identify in an appropriate manner
the class of such persons.
6. Attention is directed to the requirements in
Item 6 of the form with respect to the filing of
financial statements for businesses acquired and to
the filing of copies of the plans of acquisition or
disposition as exhibits to the report.
ITEM 3 . BANKRUPTCY OR RECEIVERSHIP
If a receiver, fiscal agent or similar officer has
been appointed for a bank or its parent, in a
proceeding under the Bankruptcy Act or in any
other proceeding under State or Federal law in
which a court or governmental agency has assumed jurisdiction over substantially all of the
assets or business of the Bank or its parent, or
if such jurisdiction has been assumed by leaving
the existing directors and officers in possession but
subject to the supervision and orders of a court
or governmental body, identify the proceeding, the
court or governmental body, the date jurisdiction
was assumed, the identity of the receiver, fiscal
agent or similar officer and the date of his appointment.
ITEM 4 . CHANGES IN BANK'S ACCOUNTANT
If an independent accountant who was previously engaged as the principal accountant to
audit the bank's financial statements resigns (or
indicates he declines to stand for re-election after
the completion of the current audit) or is dismissed
as the bank's principal accountant, or another
independent accountant is engaged as principal
accountant, or if an independent accountant on
whom the principal accountant expressed reliance
in his report regarding a significant subsidiary
resigns (or formally indicates he declines to stand
for re-election after the completion of the current
audit) or is dismissed or another independent accountant is engaged to audit that subsidiary:
869
(a) State the date of such resignation (or declination to stand for re-election), dismissal or engagement.
(b) State whether in connection with the audits
of the two most recent fiscal years and any subsequent interim period preceding such resignation,
dismissal or engagement there were any disagreements with the former accountant on any
matter of accounting principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements if not resolved to
the satisfaction of the former accountant would
have caused him to make reference in connection
with his report to the subject matter of the disagreements); also, describe each such disagreement. The disagreements required to be reported in response to the preceding sentence include both those resolved to the former accountant's satisfaction and those not resolved to the
former accountant's satisfaction. Disagreements
contemplated by this rule are those which occur
at the decisionmaking level; i.e., between personnel of the bank responsible for presentation of its
financial statements and personnel of the accounting firm responsible for rendering its report.
(c) State whether the principal accountant's report on the financial statements for any of the past
two years contained an adverse opinion or a disclaimer of opinion or was qualified as to uncertainty, audit scope, or accounting principles; also
describe the nature of each such adverse opinion,
disclaimer of opinion or qualification.
(d) The bank shall request the former accountant to furnish the bank with a letter addressed
to the Board stating whether he agrees with the
statements made by the bank in response to this
item and, if not, stating the respects in which he
does not agree. The bank shall file a copy of the
former accountant's letter as an exhibit with all
copies of the Form F-3 required to be filed pursuant
to General Instruction F.
ITEM 5 . OTHER MATERIALLY IMPORTANT EVENTS
The bank may, at its option, report under this
item any events, with respect to which information
is not otherwise called for by this form, which
the bank deems of material importance to security
holders.
ITEM 6 . FINANCIAL STATEMENTS AND EXHIBITS
List below the financial statements and exhibits,
if any, filed as a part of this report.
(a) Financial statements of business acquired.
870
Federal Reserve Bulletin • November 1978
Instructions. 1. Businesses for which Statements
are Required.
The financial statements specified below shall
be filed for any business the succession to which
or the acquisition of an interest in which is required
to be described in answer to Item 2 above.
2. Statements Required.
(a) There shall be filed a balance sheet of the
business as of a date reasonably close to the date
of acquisition. This balance sheet shall be verified
if practical.
(b) Income and source and application of funds
statements of the business shall be filed for each
of the last three full fiscal years and for the period,
if any, between the close of the latest of such fiscal
years and the date of the latest balance sheet filed.
These income and source and application of funds
statements shall be verified up to the date of the
verified balance sheet, if practical.
(c) If the business was in insolvency proceedings immediately prior to its acquisition, the balance sheets required above need not be verified.
In such case, the income and source and application of funds statements required shall be verified
to the close of the latest full fiscal year, if practical.
(d) Except as otherwise provided in this instruction, the principles applicable to a registrant
and its subsidiaries with respect to the filing of
individual, consolidated and group statements in
an original application or annual report shall be
applicable to the statements required by this instruction.
3. Application of § 206.7.
Section 206.7 governs the examination and the
form and content of the statements required by
the preceding instruction, including the basis of
consolidation, and prescribes the statements of
other stockholders' equity to be filed. No supporting schedules need be filed. A manually signed
accountant's report should be provided.
4. Filing of Other Financial Information in
Certain Cases.
The Board, upon the written request of the bank
and where consistent with the protection of investors, may permit the omission of one or more of
the financial statements herein required or the
filing in substitution therefor of appropriate statements of comparable character, if the required
financial statements are not reasonably available
to the bank, because the obtaining thereof would
involve unreasonable effort, expense or practicable
difficulties. A request for such relief shall be filed
as a part of the report. If an extension of time
has been granted pursuant to § 206.4(r) of Regu-
lation F (12 CFR 206.4(r)), a request for relief
shall be filed as a part of an amendment to the
initial report within the additional time provided
under said rule. The request shall set forth the
following information:
(a) The reason(s) for the unavailability of the
audited financial statements;
(b) The estimated costs of their preparation;
(c) An explanation of any other practical auditing problems and;
(d) A tabular presentation of the following
items of information, comparing the acquired
business(es) with the bank on a consolidated basis
(excluding the acquired business(es)): (1) Operating income; (2) net income; (3) total assets; (4)
total stockholder equity; and (5) total purchase
price compared to total equity capital of bank.
The Board may also by informal written notice
require the filing of other financial statements in
addition to, or in substitution for, the statements
herein required in any case where such statements
are necessary or appropriate for an adequate presentation of the financial condition of any person
whose financial statements are required, or whose
statements are otherwise necessary for the protection of investors.
(b) Exhibits. Subject to the rules as to incorporation by reference, copies of any plan of acquisition or disposition described in answer to Item 2,
including any plan of reorganization, readjustment, exchange, merger, consolidation or succession in connnection therewith, shall be filed as
exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date
(Registrant)
(Signature)
(Typed name of signing
officer)
(Title of signing officer)
Law Department
Section 206.44 (Form F-4) is revised by adding
a new Part D to read as follows:
SECTION 2 0 6 . 4 4 — F O R M FOR Q U A R T E R L Y
REPORT OF B A N K (FORM F - 4 )
PART D — O T H E R INFORMATION
Instruction. The Report shall contain the item
numbers and captions of all applicable items of
Part D, but the text of such items may be omitted:
Provided, The responses clearly indicate the coverage of the item. Any item which is inapplicable
or to which the answer is negative may be omitted
and no reference thereto need be made in the
report. If substantially the same information has
been previously reported by the registrant, an
additional report of the information on this form
need not be made. The term "previously reported" is defined in § 206.2(v) of Regulation F.
ITEM 1. LEGAL PROCEEDINGS
(a) Briefly describe any material legal proceedings, other than ordinary routine litigation incidental to the business, to which the bank or any
of its subsidiaries has become a party or of which
any of their property has become the subject.
Include the name of the court or agency in which
the proceedings are pending, the date instituted,
the principal parties thereto, a description of the
factual basis alleged to underlie the proceedings
and the relief sought.
(b) If any such proceedings previously reported
have been terminated, identify the proceeding,
give the date of termination and describe the
disposition thereof with respect to the Bank and
its subsidiaries.
INSTRUCTIONS
1. No information need be given with respect
to any proceeding which involves primarily a
claim for damages if the amount involved, exclusive of interest and costs, does not exceed 10 per
cent of the equity capital accounts of the bank.
However, if any proceeding presents in large degree the same issues as other proceedings pending
or known to be contemplated, the amount involved
in such other proceedings shall be included in
computing such percentage.
2. Notwithstanding the foregoing instructions,
any bankruptcy, receivership or similar proceeding
871
with respect to the bank or any of its significant
subsidiaries shall be described. Any proceeding to
which any director, officer or affiliate of the bank,
any principal holder of equity securities of the
bank or any associate of any such director, officer
or security holder, is a party adverse to the bank
or any of its subsidiaries shall also be described.
3. Notwithstanding the foregoing, administrative or judicial proceedings arising under any Federal, State or local provisions regulating the discharge of, materials into the environment or otherwise relating to the protection of the environment
shall not be deemed "ordinary routine litigation
incidental to the business" and shall be described
if such proceeding is material to the business or
financial condition of the bank or if it involves
primarily a claim for damages and the amount
involved, exclusive of interest and costs, exceeds
10 per cent of the equity capital of the bank and
its subsidiaries on a consolidated basis. Any such
proceedings by governmental authorities shall be
deemed material and shall be described whether
or not the amount of any claim for damages
involved exceeds 10 per cent of equity capital on
a consolidated basis and whether or not such
proceedings are considered "ordinary routine litigation incidental to the business"; Provided,
however, That such proceedings which are similar
in nature may be grouped and described generally
stating: the number of such proceedings in each
group; a generic description of such proceedings;
the issues generally involved; and, if such proceedings in the aggregate are material to the business or financial condition of the bank, the effect
of such proceedings on the business or financial
condition of the bank.
ITEM 2 . CHANGES IN SECURITIES
(a) If the constitutent instruments defining the
rights of the holders of any class of registered
securities have been materially modified, give the
title of the class of securities involved and state
briefly the general effect of such modification upon
the rights of holders of such securities.
(b) If the rights evidenced by any class of
registered securities have been materially limited
or qualified by the issuance or modification of any
other class of securities, state briefly the general
effect to the issuance or modification of such other
class of securities upon the rights of the holders
of the registered securities.
Instruction. Limitations upon the payment of
dividends are to be reported hereunder.
872
Federal Reserve Bulletin • November 1978
ITEM 5 .
CHANGES IN SECURITY FOR REGISTERED
ITEM 5 . INCREASE IN AMOUNT OUTSTANDING OF
SECURITIES
SECURITIES
If there has been a material withdrawal or substitution of assets securing any class of registered
securities of the bank, furnish the following information:
(a) Give the title of the securities.
(b) Identify and describe briefly the assets involved in the withdrawal or substitution.
(c) Indicate the provision in the underlying indenture, if any, authorizing the withdrawal or
substitution.
Instruction. This item need not be answered
where the withdrawal or substitution is made pursuant to the terms of an indenture which has been
qualified under the Trust Indenture Act of 1939.
If the amount outstanding of securities of the
bank has been increased through the issuance of
any new class of securities or through the issuance
or reissuance of any additional securities of a class
outstanding, and the aggregate amount of all such
increases not previously reported exceeds 5 per
cent of the outstanding securities of the class,
furnish the following information:
(a) Title of class, the amount outstanding as last
previously reported, and the amount presently
outstanding (as of a specified date);
(b) A brief description of the transaction(s) resulting in the increase and a statement of the
aggregate net cash proceeds or the nature and
aggregate amount of any other consideration received or to be received by the bank;
(c) The names of the principal underwriters, if
any;
(d) A reasonable itemized statement of the purposes so far as determinable, for which the net
proceeds have been or are to be used and the
approximate amount used or to be used for each
such purpose;
(e) If the securities were capital shares, a statement of the amount of the proceeds credited or
to be credited to any account other than the appropriate capital share account.
ITEM 4 . DEFAULTS UPON SENIOR SECURITIES
(a) If there has been any material default in the
payment of principal, interest, a sinking or purchase fund instalment, or any other material default not cured within 30 days, with respect to
any indebtedness of the bank or any of its significant subsidiaries exceeding 5 per cent of the equity
capital of the bank. Identify the indebtedness and
state the nature of the default. In the case of such
a default in the payment of principle, interest, or
a sinking or purchase fund installment, state the
amount of the default and the total arrearage on
the date of filing this report.
Instruction. This paragraph refers only to events
which have become defaults under the governing
instruments, i.e., after the expiration of any period
of grace and compliance with any notice requirements.
(b) If any material arrearage in the payment of
dividends has occurred or if there has been any
other material delinquency not cured within 30
days, with respect to any class of preferred stock
of the bank which is registered or which ranks
prior to any class of registered securities, or with
respect to any class of preferred stock of any
significant subsidiary of the bank, give the title
of the class and state the nature of the arrearage
or delinquency. In the case of an arrearage in the
payment of dividends, state the amount and the
total arrearage on the date of filing this report.
Instruction. Item 4 need not be answered as to
any default or arrearage with respect to any class
of securities all of which is held by, or for the
account of, the bank or its totally held subsidiaries.
INSTRUCTIONS
1. This item does not apply to notes, drafts,
bills of exchange, bankers' acceptances or other
obligations which mature not later than 1 year from
the date of issuance. No report need be made
where the amount not previously reported, although in excess of 5 per cent of the amount
outstanding, does not exceed 1,000 shares or other
units.
2. This item includes the reissuance of treasury
securities and securities held for the account of
the issuer thereof.
ITEM 6 . DECREASE IN AMOUNT OUTSTANDING OF
SECURITIES
If the amount outstanding of any class of securities of the bank has been decreased through
one or more transactions and the aggregate amount
of all such decreases not previously reported exceeds 5 per cent of the amount of securities of
Law Department
the class previously outstanding, furnish the following information:
(a) Title of the class, the amount outstanding
as last previously reported, and the amount currently outstanding (as of a specified date).
(b) A brief description of the transaction(s) involving the decrease and a statement of the aggregate amount of cash or the nature and aggregate
amount of any other consideration paid or to be
paid by the bank in connection with such transaction or transactions.
Instruction. Instruction 1 to Item 5 shall also
apply to this item. This item need not be answered
as to decreases resulting from ordinary sinking
fund operations, similar periodic decreases made
pursuant to the terms of the constituent instruments, or decreases resulting from the conversion
of securities.
ITEM 7 . SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
If any matter has been submitted to a vote of
security holders, through the solicitation of proxies
or otherwise, furnish the following information:
(a) The date of the meeting and whether it was
an annual or special meeting.
(b) If the meeting involved the election of
directors, state the name of each director elected
at the meeting and the name of each other director
whose term of office as a director continued after
the meeting.
(c) Briefly describe each other matter voted
upon at the meeting and state the number of
affirmative votes and the number of negative votes
cast with respect to each such matter.
INSTRUCTIONS
1. If any matter has been submitted to a vote
of security holders otherwise than at a meeting
of such security holders, corresponding information with respect to such submission shall be
furnished. The solicitation of any authorization or
consent (other than a proxy to vote at a stockholders' meeting) with respect to any matter shall
be deemed a submission of such matter to a vote
of security holders within the meaning of this item.
2. Paragraph (a) need be answered only if
paragraph (b) or (c) is required to be answered.
3. Paragraph (b) need not be answered if (i)
proxies for the meeting were solicited pursuant to
§ 206.5 of Regulation F under the Act, (ii) there
873
was no solicitation in opposition to the management's nominees as listed in the proxy statement,
and (iii) all of such nominees were elected. If the
bank did not solicit proxies and the board of
directors as previously reported to the Board was
reelected in its entirety, a statement to that effect
in answer to paragraph (b) will suffice as an answer
thereto.
4. Paragraph (c) need not be answered as to
procedural matters or as to the selection or approval of auditors.
5. If the registrant has published a report containing all of the information called for by this
item, the item may be answered by a reference
to the information contained in such report, provided copies of such report are filed as an exhibit
to the report on this form.
ITEM 8 . OTHER MATERIALLY IMPORTANT EVENTS
The registrant may, at its option, report under
this item any events not previously reported in
a report on Form F-3, with respect to which
information is not otherwise called for by this form
but which the registrant deems of material importance to security holders.
ITEM 9 . EXHIBITS A N D REPORTS ON FORM F - 3
(12 CFR 206.43)
(a) Exhibits. List below the documents, if any,
filed as a part of this report. Subject to the rules
as to incorporation by reference, the following
documents shall be filed as exhibits:
1. Copies of the amendments to all constituent
instruments and other documents described in answer to Item 2.
2. Copies of all constituent instruments defining the rights of the holders of any new class of
securities referred to in answer to Item 5.
3. Copies of the text of any proposal described
in answer to Item 7.
4. Copies of any published report furnished in
response to Item 7. (See Item 7, Instruction 5.)
5. Copies of any material amendment to the
bank's charter or by-laws not otherwise required
to be filed.
(b) Reports on Form F-3. State whether any
reports on Form F-3 have been filed during the
quarter for which this report is filed, listing the
items reported, any financial statements filed, and
the dates of any such reports.
Section 206.42 (Form F-2) is revised as follows:
874
Federal Reserve Bulletin • November 1978
SECTION 2 0 6 . 4 2 — F O R M FOR
ANNUAL
REPORT OF B A N K (FORM F - 2 )
GENERAL INSTRUCTIONS
A.-F. [No change]
OMISSION OF INFORMATION PREVIOUSLY FILED
(a) Except as provided in paragraph (b) below,
the information called for by Items 1, 2, 3, 4,
8, 9, 10, 11, 12, 15, 16, 17, and 18 of this form
is to be furnished by all registrants required to
file a report, on this form. Items 5, 6, 7, 13, and
14 may be omitted from the report by any registrant which, since the close of the fiscal year, has
filed with the Board a definitive proxy statement
or a definitive information statement pursuant to
§ 206.5 of Regulation F which involved the election of directors, or which files such a proxy or
information statement not later than 120 days after
the close of the fiscal year.
(b) If the information called for by Items 2, 9,
or 12 would be unchanged from that given in a
previous report, a reference to the previous report
which includes the required information will be
sufficient. Copies of such previous report need not
be filed with the report currently being filed on
this form.
PART I
ITEMS 1 , 2 , AND 3 . [NO CHANGE]
ITEM 4 . SUMMARY OF OPERATIONS
INSTRUCTIONS.
1 . - 3 . [NO CHANGE]
4. For any previously reported material charge
or credit to income of an unusual or infrequent
nature in which an amount of cost was estimated
to be incurred in the fiscal year being reported on
or the prior fiscal year, summarize such transaction
and state the amounts of such estimated cost and
the amounts of the actual cost incurred in such
periods, the reasons for differences between estimated and actual amounts, if any, and provide a
detailed reconciliation showing all changes and
credits to any reserve provided.
ITEMS 5 , 6 , 7 , AND 8 . [NO CHANGE]
ITEM 9 . LEGAL PROCEEDINGS
(a) Briefly describe any material pending legal
proceedings, other than ordinary routine litigation
incidental to the business, to which the bank or
any of its subsidiaries is a party or of which any
of their property is the subject. Include the name
of the court or agency in which the proceedings
are pending, the date instituted, the principal parties thereto, a description of the factual basis
alleged to underlie the proceedings and the relief
sought. Include similar information as to any such
proceedings known to be contemplated by governmental authorities.
(b) If any material legal proceeding which was
previously reported or which became reportable
during the fourth quarter of bank's fiscal year was
terminated during such quarter, give the date of
termination and describe the disposition thereof
with respect to the bank and its subsidiaries.
INSTRUCTIONS
1. No collection, action or claim need be described unless it departs from the normal kind of
such actions.
2. No information need be given with respect
to any proceedings which involves primarily a
claim for damages if the amount involved, exclusive of interest and costs, does not exceed 10 per
cent of the equity capital of the bank. However,
if any proceeding presents in large degree the same
issues as other proceedings pending or known to
be contemplated, the amount involved in such
other proceedings shall be included in computing
such percentage.
3. Notwithstanding Instructions 1 and 2, any
material bankruptcy, receivership, or similar proceeding with respect to the bank or any of its
significant subsidiaries shall be described. Any
material proceedings to which any director, officer
or affiliate of the registrant, any security holder
named in answer to Item 5(a), or any associate
of any such director, officer or security holder,
is a party, or has a material interest, adverse to
the bank of any of its subsidiaries shall also be
described.
4. Notwithstanding the foregoing, administrative or judicial proceeding arising under any Federal, State or local provisions regulating the discharge of materials into the environment or otherwise relating to the protection of the environment
shall not be deemed ''ordinary routine litigation
Law Department
incidental to the business" and shall be described
if such proceeding is material to the business of
financial condition of the bank or if it involves
primarily a claim for damages and the amount
involved, exclusive of interest and costs, exceeds
10 per cent of the equity assets of the bank and
its subsidiaries on a consolidated basis. Any such
proceedings by governmental authorities shall be
deemed material and shall be described whether
or not the amount of any claim for damages
involved exceeds 10 per cent of equity capital and
whether or not such proceedings are considered
"ordinary routine litigation incidental to the business"; provided, however, that such proceedings
which are similar in nature may be grouped and
described generally stating: the number of such
proceedings in each group; a generic description
of such proceedings; the issues generally involved;
and, if such proceedings in the aggregate are
material to the business or financial condition of
the bank the effect of such proceedings on the
business or financial condition of the bank.
ITEM 1 0 . INCREASES A N D DECREASES IN
OUTSTANDING
SECURITIES
(a) Give the following information as to all
increases and decreases during the fiscal year in
the amount of equity securities of the registrant
outstanding:
(1) The title of the class of securities involved;
(2) The date of the transaction;
(3) The amount of securities involved and
whether an increase or decrease; and
(4) A brief description of the transaction in
which the increase or decrease occurred. If previously reported, the description may be incorporated by a specific reference to the previous filing.
Instructions. The information shall be prepared
in the form of a reconciliation between the amount
shown to be outstanding on the balance sheet to
be filed with this report and the amounts shown
on the bank's balance sheet for the previous year.
The exercise of outstanding options or warrants
(separately by class or type of option or warrant),
conversions of previously issued convertible securities (separately by class of security) and the
issuance of options may be grouped together
showing the dates between which all such transactions occurred. If the information called for has
been previously reported on Form F-4, it may be
incorporated by a specific reference to the previous
filing.
(b) Increases and decreases in the amount out-
875
standing of debt securities which were previously
reported in reports on Form F-4 should be listed
and briefly discussed with appropriate cross references to the earlier disclosure.
(c) If, during the fourth quarter of the bank's
fiscal year, the amount of debt securities outstanding has been increased or decreased through
one or more transactions, and the aggregate
amount of all such increases or decreases not
previously reported exceeds 5 per cent of the
outstanding securities of the affected class, furnish the following information:
(1) Title of class, the amount outstanding as last
previously reported, and the amount presently
outstanding (as of a specified date);
(2) A brief description of the transaction or
transactions resulting in the change;
(3) If an increase in securities is reported, furnish: (i) A statement of the aggregate net cash
proceeds or the nature and aggregate amount of
any consideration received or to be received by
the bank; (ii) the names of the principal underwriters, if any; and (iii) a reasonably itemized
statement of the purposes, so far as determinable,
for which the net proceeds have been or are to
be used and the approximate amount used or to
be used for each such purpose; and
(4) If a decrease in securities is reported, a
statement of the aggregate amount of cash or the
nature and aggregate amount of any other consideration paid or to be paid by the bank in connection
with such transaction or transactions.
INSTRUCTIONS
1. This paragraph does not apply to notes,
drafts, bills of exchange, bankers' acceptances, or
other obligations which mature not later than 1
year from the date of issuance. No report need
be made where the amount not previously reported, although in excess of 5 per cent of the
amount outstanding, does not exceed 1,000 shares
or other units.
2. This paragraph includes the reissuance of
treasury securities and securities held for the account of the issuer thereof.
3. This paragraph need not be answered as to
decreases resulting from ordinary sinking fund
operations, similar periodic decreases made pursuant to the terms of the constituent instruments,
or decreases resulting from the conversion of securities.
ITEMS 1 1 ,
12,
1 3 AND 1 4 . [NO CHANGE]
876
Federal Reserve Bulletin • November 1978
ITEM 1 5 . FINANCIAL S T A T E M E N T S ,
FILED,
EXHIBITS
A N D REPORTS O N FORM F - 3
(a) List all of the following documents filed as
a part of the report:
1. All financial statements.
2. All exhibits, including those incorporated by
reference.
Instructions. Where any financial statement or
exhibit is incorporated by reference, the incorporation by reference shall be set forth in the list
required by this item. Section 206.4(m) of Regulation F (12 CFR 206.4(m)).
(b) Reports on Form F-3. State whether any
reports on Form F-3 have been filed during the
last quarter of the period covered by this report,
listing the items reported, any financial statements
filed and the dates of any such reports.
ITEM 1 6 . C H A N G E S IN SECURITIES A N D C H A N G E S
IN SECURITY FOR REGISTERED SECURITIES
General Instruction. No response to this item
is required if the information called for herein has
been previously reported in a report on Form F-4.
(a) If the constituent instruments defining the
rights of the holders of any class of registered
securities have been materially modified, give the
title of the class of securities involved and state
briefly the general effect of such modification upon
the rights of holders of such securities.
(b) If the rights evidenced by any class of
registered securities have been materially limited
or qualified by the issuance or modification of any
other class of securities, state briefly the general
effect of the issuance or modification of such other
class of securities upon the rights of the holders
of the registered securities.
Instruction. Restrictions upon payment of dividends are to be reported hereunder.
(c) If there has been a material withdrawal or
substitution of assets securing any class of registered securities of the bank, furnish the following
information:
1. Give the title of the securities.
2. Identify and describe briefly the assets involved in the withdrawal or substitutions.
3. Indicate the provision in the underlying indenture, if any, authorizing the withdrawal or
substitution.
Instruction. This paragraph need not be answered where the withdrawal or substitution is
made pursuant to the terms of an indenture which
has been qualified under the Trust Indenture Act
of 1939.
ITEM 1 7 . D E F A U L T S U P O N SENIOR SECURITIES
General Instruction. No response to this item
is required if the information called for herein has
been previously reported in a report on Form F-4.
(a) If there has been any material default in the
payment of principal interest, a sinking or purchase fund instalment, or any other material default not cured within 30 days, with respect to
any indebtedness of the bank or any of its significant subsidiaries exceeding 5 per cent of the equity
capital of the bank, identify the indebtedness and
state the nature of the default. In the case of such
a default in the payment of principal, interest, or
a sinking or purchase fund instalment, state the
amount of the default and the total arrearage on
the date of filing this report.
Instruction. This paragraph refers only to events
which have become defaults under the governing
instruments, i.e., after the expiration of any period
of grace and compliance with any notice requirements.
(b) If any material arrearage in the payment of
dividends has occurred or if there has been any
other material delinquency not cured within 30
days, with respect to any class of preferred stock
of the bank which is registered or which ranks
prior to any class of registered securities, or with
respect to any class of preferred stock of any
significant subsidiary of the bank, give the title
of the class and state the nature of the arrearage
or delinquency. In the case of an arrearage in the
payment of dividends, state the amount and the
total arrearage on the date of filing this report.
Instruction. Item 17 need not be answered as
to any default or arrearage with respect to any class
of securities all of which is held by, or for the
account of, the bank or its totally held subsidiaries.
ITEM 1 8 . SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
If any matter has been submitted to a vote of
security holders, through the solicitation of proxies
or otherwise, furnish the following information if
not previously disclosed in a report on Form F-4.
(a) The date of the meeting and whether it was
an annual or special meeting.
(b) If the meeting involved the election of
directors, state the name of each director elected
at the meeting and the name of each other director
whose term of office as a director continued after
the meeting.
(c) Briefly describe each other matter voted
upon at the meeting and state the number of
Law Department
affirmative votes and the number of negative votes
cast with respect to each such matter.
Instructions. 1. If any matter has been submitted
to a vote of security holders otherwise than at a
meeting of such security holders, corresponding
information with respect to such submission shall
be furnished. The solicitation of any authorization
or consent (other than a proxy to vote at a stockholders' meeting) with respect to any matter shall
be deemed a submission of such matter to a vote
of security holders within the meaning of this item.
2. Paragraph (a) need be answered only if
paragraph (b) or (c) is required to be answered.
3. Paragraph (b) need not be answered if (i)
proxies for the meeting were solicited pursuant to
§ 206.5 of Regulation F, (ii) there was no solicitation in opposition to the management's nominees
as listed in the proxy statement, and (iii) all of
such nominees were elected. If the registrant did
not solicit proxies and the board of directors as
previously reported to the Board was reelected in
its entirety, a statement to that effect in answer
to paragraph (b) will suffice as an answer thereto.
4. Paragraph (c) need not be answered as to
procedural matters or as to the selection or approval of auditors.
5. If the Bank has published a report containing
all of the information called for by the item, the
item may be answered by a reference to the information contained in such report, provided copies
of such report are filed as an exhibit to the report
on this form.
SIGNATURES
[ N o CHANGE]
INSTRUCTIONS AS TO FINANCIAL STATEMENTS
[ N o CHANGE]
INSTRUCTIONS AS TO EXHIBITS
Subject to provisions regarding the incorporation of exhibits by reference, the following exhibits shall be filed as a part of the report:
A. Copies of all amendments or modifications,
not previously filed, to all exhibits previously filed
(or copies of such exhibits as amended or modified).
B. Copies of all contracts and other documents
of a character required to be filed as an exhibit
to an original registration statement on Form F-l
which were executed or in effect during the fiscal
year and not previously filed.
C. Copies of the exhibits called for by Instruction 3(d) to Item 4.
D. Copies of all constituent instruments defin-
877
ing the rights of the holders of any new class of
securities referred to in answer to Item 10(c).
E. Copies of the amendments to all constituent
instruments and other documents described in answer to Item 16.
F. Copies of the text of any proposal described
and copies of any published report furnished in
response to Item 18.
Item 5(e) of Form F-5 is amended to read as
follows:
(e) If, to the knowledge of the persons on
whose behalf the solicitation is made, a change
in control of the bank has occurred since the
beginning of its last fiscal year, state the name
of the person(s) who acquired such control, the
amount and the source of the consideration used
by such person or persons, the basis of the control,
the date and a description of the transaction(s)
which resulted in the change of control, and the
percentage of voting securities of the bank now
beneficially owned directly or indirectly by the
person(s) who acquired control, and the identity
of the person(s) from whom control was assumed.
If the source of all or any part of the consideration
used is a loan made in the ordinary course of
business by a bank as defined by Section 3(a)(6)
of the Act, the identity of such bank shall be
omitted provided a request for confidentiality has
been made pursuant to Section 13(d)(1)(B) of the
Act by the person(s) who acquired control. In lieu
thereof, the material shall indicate that the identity
of the bank has been so omitted and filed separately
with the Board. If the source of all or any part
of the funds used to acquire control of the bank
was a loan made by a bank as defined by Section
3(a)(6) of the Act, indicate whether there exists
any agreement, arrangement, or understanding
pursuant to which the registrant bank maintains
or would maintain a correspondent deposit account
at such lending bank.
INSTRUCTIONS
1. State the terms of any loans or pledges
obtained by the new control group for the purpose
of acquiring control, and the names of the lenders
or pledgees.
2. Any arrangements or understandings among
members of both the former and new control
groups and their associates with respect to election
of the directors or other matters should be described.
*
*
*
*
*
878
Federal Reserve Bulletin • November 1978
Section 206.6(1) is amended to read as follows:
(1)
EXEMPTION FROM SECTION 16(b) OF ACQUISITIONS
OF SHARES OF STOCK AND STOCK OPTIONS AND STOCK
APPRECIATION RIGHTS UNDER CERTAIN STOCK INCENTIVE,
Any acquisition of
shares of stock (other than stock acquired upon
the exercise of an option, warrant or right) pursuant to a plan as defined in subparagraph (4)(i)
of this paragraph, or any acquisition, expiration,
cancellation or surrender to the bank of a stock
option or stock appreciation right pursuant to such
a plan by a director or officer of the bank shall
be exempt from the operation of section 16(b) of
the Act if the plan meets the following conditions:
(1) Approval by security holders. The plan has
been approved, directly or indirectly, (i) by the
affirmative votes of the holders of a majority of
the securities of the bank present, or represented,
and entitled to vote at a meeting duly held in
accordance with the applicable laws of the state
or other jurisdiction in which the bank was chartered, or (ii) by the written consent of the holders
of a majority of the securities of the bank entitled
to vote: Provided, however, That if such a vote
or written consent was not solicited substantially
in accordance with the rules and regulations, if
any, in effect under section 14(a) of the Act at
the time of such vote or written consent, the bank
shall furnish in writing to the holders of record
of the securities entitled to vote for the plan
substantially the same information concerning the
plan that would be required by the rules and
regulations in effect under section 14(a) of the Act
at the time such information is furnished, if proxies
to be voted with respect to the approval or disapproval of the plan were then being solicited, on
or prior to the date of the first annual meeting of
security holders held subsequent to the later of (a)
the first registration of an equity security under
section 12 of the Act or (b) the acquisition of an
equity security for which exemption is claimed.
Such written information may be furnished by mail
to the last known address of the security holders
of record within 30 days prior to the date of
mailing. Four copies of such written information
shall be filed with, or mailed for filing to, the
Board not later than the date on which it is first
sent or given to security holders of the bank. For
the purposes of this paragraph, the term 44 bank"
includes a predecessor bank if the plan or obligations to participate thereunder were assumed by
the bank in connection with the succession. In
addition, any amendment to the plan shall be
STOCK OPTION OR SIMILAR PLANS.
similarly approved if the amendment would:
(1) Materially increase the benefits accruing to
participants under the plan;
(2) Materially increase the number of securities
which may be issued under the plan; or
(3) Materially modify the requirements as to
eligibility for participation in the plan.
(2) Disinterested administrators. If the selection
of any director or officer of the bank to whom
stock may be allocated or to whom stock options
or stock appreciation rights may be granted pursuant to the plan, or the determination of the
number or maximum number or shares of stock
which may be allocated to any such director or
officer or which may be covered by stock options
or stock appreciation rights granted to any such
director or officer pursuant to the plan is subject
to the discretion of any person, then such discretion shall be exercised only as follows:
(i) With respect to the participation of directors:
(a) By the board of directors of the bank, a
majority of which board and a majority of the
directors acting in the matter are disinterested
persons;
(b) By, or only in accordance with the recommendation of, a committee of three or more persons having full authority to act in the matter, all
of the members of which committee are disinterested persons; or
(c) Otherwise in accordance with the plan, if
the plan: (1) Specifies the number or maximum
number of shares of stock which directors may
acquire or which may be subject to stock options
or stock appreciation rights granted to directors
pursuant to the plan and the terms upon which,
and the times at which, or the periods within
which, such stock may be acquired or such options
or rights may be acquired and exercised; or (2)
sets forth, by formula or otherwise, effective and
determinable limitations with respect to the foregoing based upon earnings of the bank, dividends
paid, compensation received by participants, option prices, market value of shares, outstanding
shares or percentages thereof outstanding from
time-to-time or similar factors.
(i) With respect to the participation of officers
who are not directors:
(a) By the Board of directors of the bank or
a committee of three or more directors;
(b) By, or only in accordance with the recommendations of, a committee of three or more
persons having full authority to act in the matter,
all of the members of which committee are disinterested persons; or
Law Department
(c) Otherwise in accordance with the plan, if
the plan (/) Specifies the number of maximum
number of shares of stock which officers may
acquire or which may be subject to stock options
or stock appreciation rights granted to officers
pursuant to the plan and the terms upon which,
and the times at which, or the period within which,
such stock may be acquired or such options or
rights may be acquired and exercised; or (2) Sets
forth, by formula or otherwise, effective and determinable limitations with respect to the foregoing
based upon earnings of the bank, dividends paid,
compensation received by participants, option
prices, market value of shares, outstanding shares
or percentages thereof outstanding from time-totime or similar factors.
(iii) The provisions of this paragraph shall not
apply with respect to any option or right granted
or other equity security acquired, prior to the date
of the first registration of an equity security under
section 12 of the Act.
(3) Plan limitations. As to each participant or
as to all participants the plan effectively limits the
aggregate dollar amount of stock or the aggregate
number of shares of stock which may be allocated,
or which may be subject to stock options or stock
appreciation rights issued pursuant to the plan. The
limitations may be established on an annual basis,
or for the duration of the plan, whether or not
the plan has a fixed termination date, and may
be determined either by fixed or maximum dollar
amounts or fixed or maximum numbers of shares
or by formulas based upon earnings of the bank,
dividends paid, compensation received by participants, option prices, market value of shares, outstanding shares or percentages thereof outstanding
from time-to-time, or similar factors that will
result in an effective and determinable limitation.
Such limitations may be subject to any provision
for adjustment of the plan or of stock allocable
or options outstanding thereunder to prevent dilution or enlargement of rights.
(4) Definitions. Unless the context otherwise
requires, all terms used in this rule shall have the
same meaning as in the Act or elsewhere in Part
206. In addition, the following definitions apply:
(i) The term " p l a n " shall mean an option,
bonus, appreciation, profit sharing, retirement, incentive, thrift, savings or similar plan that meets
the following conditions:
(a) The plan must be set forth in a written
document describing the means or basis for determining the eligibility of individuals to participate
and either the price at which the securities may
879
be offered or the method by which the price or
the amount of the award is to be determined; and
(b) The plan must provide with respect to any
option or similar right (including a stock appreciation right) offered pursuant to the plan that such
option or right is not transferable other than by
will or the laws of descent and distribution and
that it is exercisable during the employee's lifetime
only by him or his guardian or legal representative.
(ii) The term "exercise of an option, warrant
or right" contained in the parenthetical clause of
the first paragraph of § 206.6(1) shall not include:
(a) The making of an election to receive under
any plan compensation in the form of stock or
credits therefor, provided that such election is
made either prior to the making of the award or
prior to the fulfillment of all conditions to the
receipt of the compensation and, provided, further,
that such election is irrevocable until at least six
months after termination of employment;
(b) The subsequent crediting of such stock;
(c) The making of any election as to the time
for delivery of such stock after termination of
employment, provided that such election is made
at least six months prior to any such delivery;
(d) The fulfillment of any condition to the absolute right to receive such stock; or
(e) The acceptance of certificates for shares of
such stock.
(iii) The term "disinterested person" used in
§§ 206.6(1)(2) and 206.6(1 )(5) hereof shall mean
an administrator of a plan who is not at the time he
exercises discretion in administering the plan eligible and has not at any time within one year prior
thereto been eligible for selection as a person to
whom stock may be allocated or to whom stock options or stock appreciation rights may be granted
pursuant to the plan or any other plan of the bank or
any of its affiliates entitling the participants therein
to acquire stock, stock options or stock appreciation
rights of the bank or any of its affiliates.
(5) Cash Settlements of Stock Appreciation
Rights. Any transaction involving the exercise and
cancellation of a stock appreciation right issued pursuant to a plan (whether or not the transaction also
involves the related surrender and cancellation of a
stock option), and the receipt of cash in complete or
partial settlement of that right, shall be exempt from
the operation of section 16(b) of the Act, as not
comprehended within the purpose of that section, if
all the following conditions are met:
(i) Information about the issue, (a) The bank
that is the issuer of the stock appreciation right
has been subject to the reporting requirements of
880
Federal Reserve Bulletin • November 1978
section 13 of the Act for at least a year prior to
the transaction and has filed all reports and statements required to be filed pursuant to that section
during that year.
(b) The bank that is the issuer of the stock
appreciation right on a regular basis does release
for publication quarterly and annual summary
statements of revenues and earnings. This condition shall be deemed satisfied if the specified
financial data appears (/) on a wire service, (2)
in a financial news service, (3) in a newspaper
of general circulation, or (4) is otherwise made
publicly available.
(ii) Limitation of the right and any related option. Neither the stock appreciation right nor any
related stock option shall have been exercisable
during the first six months of their respective
terms, except that this limitation shall not apply
in the event death or disability of the grantee
occurs prior to the expiration of the six-month
period.
(iii) Administration of the plan, (a) The plan
shall be administered by either the board of directors, a majority of which are disinterested persons
and a majority of the directors acting on plan
matters are disinterested persons, or by a committee of three or more persons, all of whom are
disinterested persons;
(b) The board or committee shall have sole
discretion either (1) To determine the form in
which payment of the right will be made (i.e.,
cash, securities, or any combination thereof), or
(2) To consent to or disapprove the election of
the participant to receive cash in full or partial
settlement of the right. Such consent or disapproval may be given at any time after the election
to which it relates.
(c) Any election by the participant to receive
cash in full or partial settlement of the stock
appreciation right, as well as any exercise by him
of this stock appreciation right for such cash, shall
be made during the period beginning on the third
business day following the date of release of the
financial data specified in § 206.6(l)(5)(i)(b)
hereof and ending on the twelfth business day
following such date. This subparagraph,
(5)(iii)(c), however, shall not apply to any exercise
by the participant of a stock appreciation right for
cash where the date of exercise:
(1) Is automatic or fixed in advance under the
plan;
(2) Is at least six months beyond the date of
the stock appreciation right; and
(3) Is outside the control of the participant.
(iv) Compliance with other conditions of
§ 206.6(1). The plan under which the stock appreciation rights and any related options are
granted shall meet the conditions, specified above
in § 206.6(1) (1), (2), (3), and (4).
(v) Limit of the exemption. Nothing in this
§ 206.6(1)(5) provides an exemption from section
16(b) for the acquisition of stock upon the exercise
of a stock appreciation right or a stock option.
"Section" 206.6(e)(3) is amended to read as
follows:
(3) Notwithstanding the foregoing, a statement
need not be filed pursuant to section 16(a) of the
Act:
(i) By any person with respect to the acquisition, expiration, surrender to the bank, or cancellation of any nontransferable stock option or stock
appreciation right granted by the bank of the
securities to which the option or right relates
pursuant to a plan which meets the conditions
specified in § 206.6(1) (1), (2), (3), (4), and (5)
(a), (b), (c), (d) and (e) of this chapter, or;
(ii) By any bank with respect to any put, call,
option or other right or obligation to buy or sell
securities of which it is the issuer. As used in this
subparagraph (3), the term "plan" shall have the
meaning assigned to it in subparagraph (4) of
§ 206.6(1).
RULES OF
RULES
PROCEDURE
REGARDING
DELEGATION
OF
AUTHORITY
The Board of Governors has amended its Rules
of Procedure to institute a procedure by which
requests for consideration of Board action on certain applications will receive prompt attention, and
has delegated to its General Counsel the authority
to determine whether or not reconsideration should
be granted.
Effective October 19, 1978, Part 262 is
amended by adding a new Section 262.3(i) by
redesignating the subsequent sections accordingly
and by withdrawing Section 262.3(g)(5). The new
Section 262.3(i) reads as follows:
SECTION
262.3—APPLICATIONS
(i) RECONSIDERATION OF CERTAIN
BOARD
ACTIONS. The Board may reconsider any action
taken by it on an application upon receipt by the
Secretary of the Board of a written request for
Law Department
reconsideration from any party to such application,
on or before the fifteenth day after the effective
date of the Board's action. Such request should
specify the reasons why the Board should reconsider its action, and present relevant facts that,
for good cause shown, were not previously presented to the Board. Within ten days of receipt
of such a request, the General Counsel, acting
pursuant to delegated authority (12 C.F.R.
265.2(b)(7)), shall determine whether or not the
request for reconsideration should be granted, and
shall notify all parties to the application orally by
telephone of this determination within ten days.
Such notification will be confirmed promptly in
writing. In the exercise of this authority, the General Counsel shall confer with the Directors of
other interested Divisions of the Board or their
designees. Notwithstanding the foregoing, the
Board may, on its own motion if it deems reconsideration appropriate, elect to reconsider its action
with respect to any application, and the parties
to such application shall be notified by the Secretary of the Board of its election as provided above.
If it is determined that the Board should reconsider
its action with respect to an application, such
action will be stayed and will not be final until
the Board has acted on the application upon reconsideration. If appropriate, notice of reconsideration of an application will be published
promptly in the Federal Register.
Effective October 19, 1978, Part 265 is amended
by adding § 265.2(b)(7) to read as follows:
SECTION 2 6 5 . 2 — S P E C I F I C FUNCTIONS
DELEGATED TO BOARD EMPLOYEES
AND TO FEDERAL RESERVE B A N K S
( b ) THE G E N E R A L C O U N S E L OF THE B O A R D
(or in the General Counsel's absence, the Acting
General Counsel) is authorized:
(7) pursuant to Part 262.3(i) of this chapter
(Rules of Procedure) to determine whether or not
to grant a request for reconsideration of any action
taken by the Board with respect to an application
as provided in that Part.
RULES OF
PROCEDURE
The Board of Governors of the Federal Reserve
System has amended its Rules of Procedure to
revise procedures of the Board for certain applica-
881
tions for membership, applications for branches,
mergers, or relocations, and certain applications
under the Bank Holding Company Act.
Effective November 6, 1978, section 262.3 is
amended by adding the following subsection (b)
and redesignating subsections (b), (c), (d), (e), (f),
(g), and (h) as subsections (c), (d), (e), (f), (g),
(h), and (i), respectively.
( b ) NOTICE OF A P P L I C A T I O N S . ( 1 ) I n t h e c a s e
of applications (i) for membership in the Federal
Reserve System where such membership would
confer Federal deposit insurance on a bank,
(ii) by a State member bank for the establishment of a domestic branch or other facility that
would be authorized to receive deposits.
(iii) by a State member bank for the relocation
of a domestic branch office,
(iv) for merger, consolidation, or acquisition of
assets or assumption of liabilities, if the acquiring,
assuming, or resulting bank is to be a State member bank,
(v) to become a bank holding company, and
(vi) by a bank holding company to acquire
ownership or control of shares or assets of a bank,
or to merge or consolidate with any other bank
holding company,
the applicant shall, prior to filing such application,
cause to be published on the same day of each
of two consecutive weeks a notice containing the
name of the applicant or applicants, the subject
matter of the application, the location at which
the applicant proposes to engage in business, and
an invitation to the public to give written comment
upon the application to the appropriate Federal
Reserve Bank no later than thirty days after the
date of publication of the first notice. Such notice
shall be published in a newspaper of general circulation in (A) the community in which the head
office of the bank is or is to be located in the
case of an application for membership that would
confer deposit insurance, (B) the community or
communities in which the head office of the bank
and the proposed branch or other facility (other
than an electronic funds transfer facility) are located in the case of an application for the establishment of a domestic branch or other facility that
would be authorized to receive deposits, (C) the
community or communities in which the head
office of the bank, the office to be closed, and
the office to be opened are located in the case of
an application for the relocation of a domestic
branch office, (D) the community or communities
in which the head office of each of the banks to
882
Federal Reserve Bulletin • November 1978
be party to the merger, consolidation, or acquisition of assets or assumption of liabilities are located in the case of an application by a bank for
merger, consolidation, or acquisition of assets or
assumption of liabilities, or (E) the community or
communities in which the head offices of the
largest subsidiary bank, if any, of an applicant and
of each bank, shares of which are to be directly
or indirectly acquired, are located in the case of
applications under section 3 of the Bank Holding
Company Act.
(2) In addition to the foregoing notice, an applicant, in the case of an application to relocate
a domestic branch office or other facility that
would be authorized to receive deposits, shall post
in a conspicuous public place in the lobby of the
office to be closed a notice containing the information specified in Section 262.3(b)(1). Such notice should be posted on the date of the first notice
required by Section 262.3(b)(1).
The Board will accept and consider written
comments for six months from the effective date
of this amendment. Such comments should be
submitted to Theodore E. Allison, Secretary of the
Board of Governors of the Federal Reserve System, Washington, D.C. 20551 and should refer
to Docket No. R-0182.
SECTION 2 2 6 . 9 ( g ) ( 6 ) ( i i i )
(CHANGE IN TERMS)
NOTICE TO CUSTOMER
REQUIRED BY FEDERAL L A W :
(Name of Creditor)
intends to change the terms of your open end credit
account which is secured by your home. You have
a right to refuse to accept this change in terms.
If you refuse this change in terms, you have the
right to continue to repay your existing obligation
under the present terms of the account. However,
we would then have the right to refuse to extend
any further credit, except pursuant to these new
terms. You may exercise your right to refuse the
change in terms within three business days of
(date disclosure delivered to customer)
by notifying us at
(Address of creditor's place
of business)
by mail or telegram sent not later
than midnight of
(date) . You may also use
any other form of written notice to refuse the
change in terms if it is delivered to the above
address not later than that time. This notice may
be used for that purpose by dating and signing
below.
I hereby refuse the change in the terms of my
account.
(date)
(customer's signature)
RULES OF
INTERPRETATION OF REGULATION Z
The Board of Governors has amended its
Interpretation of Regulation Z, 12 C.F.R. Part
226.904 by deleting the third sentence of the
disclosure captioned "Section 226.9(g)(6)(iii)
(Change in terms)" which reads, "If you refuse
this change in terms, we have the right to refuse
to extend any further credit on your account and
may require you to repay any existing obligation
on your account under the present terms of the
account" and substituting therefor "If you refuse this change in terms, you have the right
to continue to repay your existing obligation
under the present terms of the account. However, we would then have the right to refuse
to extend any further credit, except pursuant to
these new terms", so that the disclosure reads
as follows:
PROCEDURE
The Board of Governors has instituted procedures to govern its consideration of comments and
requests for hearing on certain applications required by law.
Effective October 19, 1978, Part 262 is
amended by adding a new § 262.3(d) and redesignating the subsequent sections. The new section
262.3(d) is to read as follows:
SECTION
(d)
262.3—APPLICATIONS
SUBMISSION
OF
COMMENTS
AND
RE-
QUESTS FOR HEARING. The Board will consider
a comment or request for hearing with respect to
an application only if it is in writing and is sent
to the Secretary of the Board or the appropriate
Federal Reserve Bank on or before the date prescribed in the Federal Register notice with respect
to applications filed under sections 3 or 4 of the
Law Department
Bank Holding Company Act or, in the case of
other applications, the date specified in the newspaper notice with respect to such applications, or
where no such date is prescribed, on or before
the thirtieth day after the day such notice is first
published. Similarly, the Board will consider
comments on an application from the Attorney
General or a banking supervisory authority to
which notification of receipt of an application has
been given, only if such comment is received by
the Secretary of the Board within thirty days of
the date of the letter giving such notification. Any
comment on an application that requests a hearing
must include a statement of why a written presentation would not suffice in lieu of a hearing,
identifying specifically any questions of fact that
are in dispute and summarizing the evidence that
would be presented at a hearing. In every case
BANK
HOLDING
BANK
MERGER
COMPANY
ORDERS
ORDERS U N D E R SECTION
BY
THE BOARD
3
ACT
Commercial Bankshares, Inc.,
Griffin, Georgia
Order Approving
Formation of Bank Holding Company
Commercial Bankshares, Inc., Griffin, Georgia,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) of formation of a bank
holding company by acquiring all of the voting
shares of the successor by merger to Commercial
Bank and Trust Company, Griffin, Georgia
("Commercial Bank"), and 69.2 per cent of the
voting shares of Concord Banking Company,
Concord, Georgia ("Concord Bank"). 1 The bank
into which Commercial Bank is to be merged has
no significance except as a means to facilitate the
acquisition of the voting shares of Commercial
Bank. Accordingly, the proposed acquisition of
1
Commercial Bank acquired 0 . 4 per cent of the shares of
common stock of The Bank of Griffin, Griffin, Georgia, and
0 . 2 3 4 per cent of the shares of common stock of First National
Bank of Griffin, Griffin, Georgia, in settlement of a debt arising
from a defalcation. Commercial Bank plans to transfer these
shares to Applicant upon consummation of the proposed transaction. Applicant has committed to divest these shares within
one year after the date of their transfer to Applicant.
where a timely comment or request for hearing
is received as provided herein, a copy of such
comment or request shall be forwarded promptly
to the applicant for its response. The Board will
consider the applicant's response only if it is in
writing and sent to the Secretary of the Board on
or before the tenth day after the date of the letter
by which it is forwarded to the applicant. At the
same time it transmits its response to the Board,
the applicant should transmit a copy of its response
to the person or supervisory authority making such
comment or requesting a hearing. Notwithstanding
the foregoing, the Board may, in its sole discretion
and without notifying the parties, take into consideration the substance of comments with respect
to an application, (but not requests for hearing)
that are not received within the time periods provided herein.
AND
ISSUED
OF B A N K H O L D I N G C O M P A N Y
883
OF
GOVERNORS
shares of the successor organization is treated
herein as the proposed acquisition of the shares
of Commercial Bank.
Notice of the application, affording opportunity
for interested persons to submit views and recommendations, has been given in accordance with
section 3(b) of the Act (12 U.S.C. § 1842(b)).
The time for filing views and recommendations
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in section 3(c) of the Act (12
U.S.C. § 1842(c)).
Applicant is a non-operating corporation formed
for the purpose of acquiring Commercial Bank and
Concord Bank, 2 which are the 17th largest and
the 402nd largest banks in Georgia, respectively.
Commercial Bank holds approximately $81.8 mil2
Commercial Bank acquired 6 9 . 2 per cent of the voting
shares of Concord Bank on September 1, 1976, in settlement
of a debt arising from the previously-mentioned defalcation.
Under section 3(a) of the Bank Holding Company Act, Commercial Bank must have divested its shares of Concord Bank
by September 1, 1978, or have been granted an extension of
time in which to divest the shares. Commercial Bank plans
to effectuate the divestiture of the shares of Concord Bank
by the transfer of such shares to Applicant, which, under
section 11(b) of the Act (12 U . S . C . § 1849(b)), may not be
lawfully consummated before the thirtieth calendar day after
the date of Board approval of the instant application. Commercial Bank has received from the Federal Reserve Bank of
Atlanta, pursuant to delegated authority, an extension of time
in which to divest the shares to December 1, 1978.
884
Federal Reserve Bulletin • November 1978
lion in deposits, representing 0.56 per cent of
deposits in commercial banks in the State. Concord Bank holds approximately $1.9 million in
deposits, representing 0.01 per cent of deposits
in commercial banks in the State. 3
Commercial Bank is the largest of three banks
in the Griffin banking market, which is approximated by Spalding County, and holds approximately 61 per cent of deposits in commercial banks
in that market. Concord Bank is the smallest of
three banks in the Pike County banking market,
which is approximated by the southern threefourths of Pike County, and holds approximately
14.8 per cent of deposits in commercial banks in
that market.
Commercial Bank and Concord Bank operate
in adjacent but separate banking markets. State law
prohibits Commercial Bank and Concord Bank
from branching into the banking market of the
other bank. Thus it appears that the acquisition
will have no adverse effect on existing or potential
competition. Therefore, the Board concludes that
competitive considerations of this application are
consistent with approval of the application.
The financial and managerial resources and future prospects of Applicant and Commercial Bank
and Concord Bank are considered to be generally
satisfactory. Applicant would incur no debt in
connection with this proposal and would serve as
a source of financial and managerial strength to
its subsidiary banks. Since the time that Commercial Bank acquired shares of Concord Bank, new
management procedures at Concord Bank have
been instituted and the condition of Concord Bank
has improved substantially. Therefore, the Board
concludes that the banking factors involved in this
proposal are consistent with approval of the application.
Although there would be no immediate increase
in the services offered by Bank as a result of the
proposed transaction, the considerations relating
to the convenience and needs of the communities
to be served are consistent with approval of the
application. In particular, Concord Bank's affiliation with Commercial Bank will provide a source
of management expertise to Concord Bank.
Therefore, considerations relating to convenience
and needs factors are consistent with approval of
the application. On the basis of all the facts of
record, the Board concludes that consummation
3
All banking data are as of December 31, 1977.
of the proposal would be in the public interest and
that the application should be approved. 4
The application is approved for the reasons
summarized above. The transaction 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 Atlanta
pursuant to delegated authority.
By order of the Board of Governors, effective
October 27, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Jackson, Partee, and Teeters. Absent and
not voting: Governors Gardner and Coldwell.
[SEAL]
(Signed) GRIFFITH L . G A R W O O D ,
Deputy Secretary of the Board.
Ellis Banking Corporation,
Bradenton, Florida
Order Denying
Request for Reconsideration
Ellis Banking Corporation, Bradenton, Florida
("Petitioner"), has requested reconsideration of
4
Applicant's board of directors, until recently, included a
director who serves as a director of one of two savings and
loan associations in Griffin, Georgia, and a director who serves
as a director of the other savings and loan association in Griffin,
Georgia. In anticipation of enactment of the Financial Institutions Regulatory Act of 1978 ( " F I R A " ) , these interlocking
director relationships have been terminated. The FIRA bill was
passed by Congress on October 15, 1978, and is currently
awaiting the signature of the President.
Title II of the FIRA bill provides, inter alia, that a "management official" of either a "depository institution", which
term includes a commercial bank and a savings and loan
association, or a "depository holding company", which term
includes a bank holding company, may not serve as a "management official" of any other nonaffiliated depository institution or depository holding company if an office of one of the
institutions is located within the same city as an office of the
other institution. "Management official" is defined in Title II
of the bill to include a director. Title II of the bill will not
apply until a date in 1988 to management official interlocks
that began prior to enactment of FIRA, which would occur
upon the President's signing of the bill, and that were not
immediately prior to the date of enactment of FIRA in violation
of section 8 of the Clayton Act.
The Board construes Title II of the FIRA bill to require
upon its effective date, which is 120 days after enactment of
FIRA, the termination of director interlocks such as those that
existed between Applicant and the two savings and loan associations. Since Applicant cannot be a "depository holding
company" prior to a date thirty days after the date of this
Order, which date would not precede the date of enactment
of FIRA, the interlocking directors would not have been
directors of a "depository holding company" that controlled
Commercial Bank prior to the date of enactment of FIRA and
thus their service as directors of Applicant and the savings
and loan associations could not have continued until a date
in 1988.
Law Department
the Order of the Board of Governors, dated April
24, 1978, whereby the Board denied the application of Petitioner filed pursuant to section 3(a)(3)
of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) (the " A c t " ) , for Board approval to
acquire shares of Madeira Beach Bank, Madeira
Beach, Florida ("Madeira Bank"), and the First
Gulf Beach Bank and Trust Company, St. Petersburg Beach, Florida ("First Gulf Bank").
The Board's Rules of Procedure (12 C.F.R.
§ 262.3(g)(5)) provide that the Board will not
grant any request for reconsideration of its actions
on a bank holding company application unless the
request presents relevant facts that, for good cause
shown, were not previously presented to the
Board, or unless it otherwise appears to the Board
that reconsideration would be appropriate. In its
Order the Board determined that the banks to be
acquired were in the same market as two of Ellis'
subsidiary banks, and that the elimination of existing competition between Ellis' subsidiaries and
the banks to be acquired was an adverse factor
that was not outweighed by the public convenience
and needs. 1 The Board defined the relevant banking market as Southern Pinellas County, Florida,
including St. Petersburg City (236,000 population)
and environs. The Board has reviewed the entire
record on this application and has concluded that
this definition of the relevant banking market is
supported by the extensive commercial intercourse
between St. Petersburg City and other portions of
Southern Pinellas County, and is also reflected by
the substantial amount of commuting in that area.
In addition, it appears that the Board has consistently applied this definition of the market in other
bank acquisition applications, including two previous applications by Ellis to acquire its present
subsidiary banks in the market. 2 Finally, this area
comprises a Ranally Metro Area ( " R M A " ) , a
demographic tool that is often useful to the Board
as a guide in approximating banking markets. 3
In its petition for reconsideration, Ellis contends
that the Board's conclusion that competitive con1
It was also determined that there would be no significant
elimination of competition between Madeira Bank and First
Gulf Bank in light of the long-standing common ownership
of the two banks.
2
See the Board's Order of March 6, 1973 approving Ellis'
application to acquire First Park Bank, Pinellas Park, Florida.
See also the Board's Order and Statement of August 17, 1971
approving Ellis' application to become a bank holding company.
3
An R M A includes a central city area and all adjacent areas
by census tract from which a minimum of 20 per cent of the
labor force or 8 per cent of the general population commutes
daily to work in the central city.
885
siderations were regarded as adverse due to the
elimination of existing competition was based on
an erroneous determination of what constitutes the
4
'relevant banking market." In particular, Ellis
believes that the coast islands off the mainland of
southern Pinellas County, on which Madeira and
First Gulf Banks are located, constitute a banking
market separate from St. Petersburg. In support
of its belief, Ellis makes allegations concerning
the amounts of commercial interaction and commuting between the mainland and the islands
where Madeira Bank and First Gulf Bank are
located. In addition, Ellis presents certain data
concerning the respective service areas for loans
and deposits, of the banks involved. No explanation is given as to why this data was not presented
to the Board before it acted. 4 Indeed, similar data
concerning service areas of the banks involved was
contained in Ellis' original applications. Furthermore, in a response to the United States Department of Justice letter commenting unfavorably on
the proposal, Ellis stated that it believed the market
to be "Southern Pinellas County South of Route
366."
With regard to Ellis' contention that the islands
on which Madeira Bank and First Gulf Bank are
located are isolated from the mainland and St.
Petersburg, the Board notes that these islands are
included in the St. Petersburg RMA. By definition
an RMA includes only census tract areas where
at least 20 per cent of the work force or 8 per
cent of the general population commutes to work
in the center city area. In this case, the record
reflects that 26 per cent and 38 per cent of the
labor force commute to work in St. Petersburg City
from Madeira Beach and St. Petersburg Beach,
respectively. Furthermore, Madeira Bank and First
Gulf Bank are located a maximum of 11 miles
from either of Applicant's banking subsidiaries in
the market, and there are four causeways connecting the islands to the mainland. Inasmuch as
consumers are likely to bank near their work, as
well as near their home, the substantial commuting
4
In the petition for reconsideration, Ellis' attorneys state
that while Ellis may have given the impression that it believed
the market to be Southern Pinellas County, Ellis did so only
because the Federal Reserve Bank of Atlanta asked for data
to be provided for Southern Pinellas County. The Board notes
that while the application was pending, Ellis did not object
to the definition of the relevant banking market of Southern
Pinellas County, and in fact, Ellis acquiesced in that definition
in its response to a comment on the application from the United
States Department of Justice. The Board believes that it was
incumbent upon Ellis to raise its objections to the definition
of the relevant banking market before the Board acted on its
application, and that it should not have included in its application statements it did not believe to be accurate.
886
Federal Reserve Bulletin • November 1978
data indicates that the banks in St. Petersburg and
the banks on Madeira Beach and St. Petersburg
Beach should be viewed as reasonable alternatives
to one another. This conclusion is supported by
the fact that there is some overlap of primary
service areas, particularly for loans, of Ellis subsidiary banks and Madeira Bank and First Gulf
Bank. Furthermore, two other banks in the market
have primary service areas that are coextensive
with most of the relevant banking market, including the coast islands, and numerous other banks
in the market have primary service areas that
substantially overlap those of both Applicant's
subsidiaries on one hand, and Madeira Bank and
First Gulf Bank on the other. In view of the
foregoing and its review and analysis of the entire
record in this application, the Board concludes that
Southern Pinellas County is the relevant banking
market.
Ellis also contends that the Board's determination of the relevant banking market was improper in that under relevant case law the relevant
banking market for small accounts is limited to
the service areas of the banks involved. The Board
has reviewed the cases cited by Ellis, i.e., United
States v. Philadelphia National Bank, 374 U.S.
321 (1963) and United States v. Phillipsburg National Bank & Trust Co., 399 U.S. 350 (1970).
Those cases indicate that the competitive effects
of a proposed merger or acquisition should be
judged in a localized market in which banks offer
their services and to which local customers can
practicably turn for alternatives. The Supreme
Court has stated in this regard that "the proper
question is not where the parties to the merger
do business or even where they compete, but
where, within the area of competitive overlap, the
effect of the merger on competition will be direct
and immediate." United States v. Philadelphia
National Bank, supra. In determining what this
area is, the Supreme Court sought "to delineate
the area in which bank customers that are neither
very large or very small find it practical to do their
banking business, . . . " United States v. Philadelphia National Bank, supra. In the Board's view
the relevant characteristics of the Southern Pinellas
County area of Florida, including the substantial
amount of commuting to work from the islands
to the mainland and the overlapping service areas
of Applicant's subsidiary banks, and Madeira
Bank and First Gulf Bank, as well as numerous
other banks in Southern Pinellas County, demonstrates that the area defined by the Board as ap-
proximating the relevant market constitutes a local
banking market in which banks offer their services
and to which local customers practicably turn for
alternatives.
The Board has reviewed the request for reconsideration and finds that it does not present any
relevant facts that, for good cause shown, were
not previously presented to the Board. Moreover,
the Board finds that it does not otherwise appear
that reconsideration of its December 30, 1977
Order would be appropriate. Accordingly, in light
of the above considerations, Petitioner's request
for reconsideration of the Board's Order of April
24, 1978 denying the application of Petitioner to
acquire Madeira Bank and First Gulf Bank should
be, and is hereby, denied. 5
By order of the Board of Governors, effective
October 27, 1978.
V o t i n g for this action: C h a i r m a n M i l l e r and G o v e r nors W a l l i c h , J a c k s o n , Partee, and T e e t e r s . A b s e n t and
not v o t i n g : G o v e r n o r s Gardner and C o l d w e l l .
[SEAL]
(Signed) GRIFFITH L. G A R W O O D ,
Deputy Secretary of the Board.
Joy Development Corporation,
Davenport, Iowa
Order Approving Acquisition of Bank
Joy Development Corporation, Davenport,
Iowa, 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 14.9 per
cent of the voting shares of Hillsdale Development
Corporation, Hillsdale, Illinois ("Hillsdale"), a
one-bank holding company that owns 91.4 per cent
of the outstanding voting shares of Old Farmers
& Merchants State Bank, Hillsdale, Illinois
("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
5
In its petition, Petitioner asserts that if the Board finds
that Petitioner and Madeira and First Gulf Banks do not
compete in the same banking market and grants reconsideration, the Board should not deny the application on
reconsideration because it eliminates potential competition.
Inasmuch as the Board has reaffirmed that southern Pinellas
County is the relevant banking market in which Petitioner
and Madeira and First Gulf Banks compete, the Board has
not considered and has not made any determination concerning
whether the proposed acquisition would eliminate potential
competition among the institutions involved.
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 is a one-bank holding company that
owns 89.33 per cent of the outstanding voting
shares of Joy State Bank, Joy, Illinois ("Joy
Bank"). Joy Bank ($11.4 million in deposits) is
the 838th largest commercial bank in Illinois and
controls approximately 0.02 per cent of total deposits in commercial banks in the State. 1 It is the
second largest of five banks operating in the
Mercer County banking market, approximated by
Mercer County, holding approximately 14.7 per
cent of total market deposits. Acquisition of the
shares of Hillsdale would give Applicant an indirect interest in Bank ($7.6 million in deposits) and
would increase Applicant's share of deposits in
commercial banks in Illinois by only 0.01 per cent.
Bank ranks 16th among the 17 banks located
in the Rock Island banking market, approximated
by Rock Island County (the relevant market), and
holds approximately 1.1 per cent of total deposits
in commercial banks in the market. Bank is located
approximately 67 miles northeast of Joy Bank, in
a separate banking market. The proposed transaction is primarily a reorganization of existing ownership interests since Applicant is wholly owned
by an individual who also owns 30 per cent of
the outstanding voting shares of Hillsdale, and
Applicant proposes to acquire 14.9 per cent of the
outstanding voting shares of Hillsdale from Applicant's owner. Moreover, in light of the distance
separating Bank from Joy Bank, and their relative
sizes, no meaningful competition exists between
Bank and Joy Bank, and it appears unlikely that
any significant competition would develop between them in the future. Accordingly, it is the
Board's opinion that consummation of the proposed transaction will have no adverse effect on
competition or on the concentration of banking
resources in any relevant area and that competitive
considerations are, therefore, consistent with approval of the application.
The financial and managerial resources of Applicant, Joy Bank, Hillsdale, and Bank are regarded as satisfactory, and the future prospects of
each appear favorable. While Applicant will incur
debt in connection with this proposal, it appears
that Applicant can retire the debt without any
1
Banking data are as of December 31, 1977.
887
adverse effect upon the financial position of Joy
Bank. Banking factors therefore are regarded as
consistent with approval. Applicant does not propose any changes in Bank's operating policies or
services. Considerations relating to the convenience and needs of the community to be served
are consistent with approval. Accordingly, it is the
Board's judgment that the proposed acquisition 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 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 Chicago pursuant to delegated
authority.
By order of the Board of Governors, effective
October 16, 1978.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Cold well, Jackson, Partee, and
Teeters. Absent and not voting: Chairman Miller.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
National Bancshares Corporation of Texas,
San Antonio, Texas
Order Approving Acquisition of Bank
National Bancshares Corporation of Texas, San
Antonio, Texas, a bank holding company within
the meaning of the Bank Holding Company Act,
has applied for the Board's approval under section
3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
acquire 100 per cent (less directors' qualifying
shares) of the voting shares of the successor by
merger to Brooks Field National Bank, San Antonio, Texas ("Bank"). The bank into which Bank
is to be merged has no significance except as a
means to facilitate the acquisition of the voting
shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is
treated herein as the proposed acquisition of the
shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit views and recommendations, has been given in accordance with
section 3(b) of the Act (12 U.S.C. § 1842(b)).
The time for filing views and recommendations
888
Federal Reserve Bulletin • November 1978
has expired, and the Board has considered the
application and all comments received, including
those submitted by the United States Department
of Justice and Kelly Field National Bank of San
Antonio, San Antonio, Texas, in light of the
factors set forth in section 3(c) of the Act (12
U.S.C. § 1842(c)).
Applicant, the eleventh largest banking organization in Texas, controls six banks with total
deposits of $655 million, 1 representing 1.1 per
cent of deposits in commercial banks in the State. 2
Acquisition of Bank (deposits of $55 million)
would increase Applicant's share of deposits in
commercial banks in Texas by 0.1 per cent and
would have no appreciable effect on concentration
of banking resources in Texas.
Bank is the thirteenth largest of 46 banking
organizations in the San Antonio banking market 3
and holds 1.6 per cent of total deposits in commercial banks in that market. Applicant controls
three banking subsidiaries in the market and is the
second largest banking organization in the market,
controlling 17.1 per cent of total market deposits.
Upon consummation of the proposed acquisition,
Applicant's share of total deposits in commercial
1
In addition, the Board on October 6, 1978, approved the
acquisition by Applicant of Guaranty National Bank, Houston,
Texas.
2
All banking data are approximate and as of December 31,
1977, and reflect bank holding company formations and acquisitions approved as of June 30, 1978.
3
The relevant banking market is the San Antonio banking
market which is approximated by the San Antonio Standard
Metropolitan Statistical Area, comprised of Bexar, Comal, and
Guadalupe Counties, Texas. The Department of Justice contends that the San Antonio S M S A overstates the relevant
banking market, which it believes is more appropriately defined
as Bexar County only. The Board has previously determined
that the San Antonio S M S A is the appropriate market for
analyzing the competitive effects of proposed acquisitions in
the San Antonio banking market. See the Board's Order dated
April 29, 1977, denying the application of Texas Commerce
Bancshares, Inc., Houston, Texas, to acquire Bexar County
National Bank of San Antonio, San Antonio, Texas (63 FEDERAL RESERVE BULLETIN 504 n.2 (1977)). The United States
Supreme Court has noted that delineation of a relevant market
with scientific precision is neither possible nor necessary,
United States v. Connecticut National Bank, 418 U . S . 656,
669 (1974), and the Court has noted that some "fuzziness
would seem inherent in any attempt to delineate the relevant
geographical market," United States v. Philadelphia National
Bank, 374 U . S . 321, 360 n.37 (1963). The Department of
Justice advises that Bexar County deposits represent 9 4 . 8 per
cent of total deposits in the San Antonio S M S A . The San
Antonio S M S A is not an inappropriate approximation of the
relevant banking market even if Bexar County were deemed
to be the market. Indeed, if the San Antonio S M S A does
overstate the market area, such overstatement is so slight that
the existing shares of total market deposits of Applicant and
Bank would be understated by an amount less than one per
cent each.
banks in the market would increase to 18.7 per
cent and Applicant's rank in the market would not
change.
The Department of Justice has expressed the
opinion that the proposed acquisition would have
an adverse effect on existing competition. The
Department of Justice bases its opinion upon three
contentions: (1) Applicant's three banking subsidiaries in the San Antonio banking market derive
a large proportion of their demand and savings
deposits and installment loans from the service
area of Bank; 4 (2) Bank derives a large proportion
of its commercial loans from the service areas of
these three banking subsidiaries of Applicant; 5 and
(3) consummation of the proposal would significantly increase concentration of banking resources
in the San Antonio banking market. 6
In response to the first contention of the Department of Justice, Applicant states that of its three
subsidiaries in the San Antonio banking market,
only one, National Bank of Commerce derives
more than a very small proportion of its demand
and savings deposits and installment loans from
the service area of Bank. National Bank of Commerce is located in downtown San Antonio, and,
according to Applicant, derives little non-commercial business from its downtown service area;
rather National Bank of Commerce derives such
business from the four residential areas of San
Antonio. Applicant states that the percentages of
demand and savings deposits and installment loans
derived by National Bank of Commerce from the
service area of Bank are rrluch less than the percentage of the population of San Antonio that lives
in Bank's service area. In response to the second
contention of the Department of Justice, Applicant
states that the service areas of its three banking
subsidiaries in the San Antonio banking market
encompass the major portion of that market and
4
The Department of Justice advises that Applicant's three
subsidiary banks in the San Antonio banking market draw from
Bank's service area 11.5 per cent of the number and 6 . 7 per
cent of the dollar volume of their demand deposits held for
the accounts of individuals, partnerships, and corporations,
14.8 per cent of the number and 11.1 per cent of the dollar
volume of their total installment loans, and ten per cent of
the number and 5 . 3 per cent of the dollar volume of their
total savings accounts.
5
The Department of Justice advises that Bank derives
approximately 53 per cent of its commercial loans of more
than $ 5 0 , 0 0 0 from the service areas of Applicant's three
subsidiary banks in the San Antonio market.
6
The Department of Justice advises that consummation of
the proposal would increase the combined market shares of
the four largest banking organizations in Bexar County from
5 9 . 2 per cent to 6 0 . 9 per cent.
Law Department
include the vast majority of commercial establishments in that market. Applicant states that 43
commercial banks make loans in the service areas
of its three banking subsidiaries and estimates that
Bank's total commercial loans made in those areas
represent less than two per cent of the total commercial loans in those areas. In response to the
third contention of the Department of Justice,
Applicant states that the concentration of banking
resources in the San Antonio banking market is
relatively low, with Bexar County ranking nineteenth among the twenty largest metropolitan
counties in Texas with respect to market shares
held by the four largest banks in each market.
The Board has considered carefully the comments of the Department of Justice and is unable
to conclude that consummation of the proposal
would have significantly adverse competitive effects. Although the proposed acquisiton would
eliminate some existing competition and increase
somewhat the concentration of banking resources
in the San Antonio banking market, the Board does
not view such effects as being of serious significance. Three of the five largest banking organizations in Texas are represented in the market and
are among the eight largest banking organizations
in the market. In spite of a relatively high degree
of bank holding company activity in the market,
the market has one of the smallest four-firm concentration ratios of all SMSAs in Texas and would
have, after the proposed acquisition, the third
smallest such concentration ratio of the four primary banking markets in Texas. There has been
no trend toward increased concentration in the San
Antonio banking market. While consummation of
the proposal would reduce the number of independent banking organizations in the market, this
does not appear to be significant since a number
of independent banks would remain. In light of
the above and other facts of record, the Board
concludes that the proposed acquisition would
have only slightly adverse effects on competition
and, in light of the considerations discussed below,
the Board does not view such effects as being so
serious as to require denial of this proposal. 7
7
Kelly Field National Bank of San Antonio, San Antonio,
Texas ("Kelly Bank"), in objecting to this application, alleges
that Applicant is attempting to monopolize the military banking
market in the San Antonio banking market by acquiring banks
in close proximity to military installations. Bank is located
four miles from the nearest military base and has an office
on that base. Bank reports that only 2.4 per cent of its
customers are military personnel. Thus, it appears that Bank
draws its customers from the general population, and it does
889
The financial and managerial resources and future prospects of Applicant, its subsidiary banks,
and Bank are regarded as generally satisfactory,
particularly in light of Applicant's intention to
retain $240 thousand of interim bank capital in
Bank after the merger of Bank with its successor
by merger. Thus considerations relating to banking
factors weigh toward approval of the application.
Applicant proposes to expand or introduce a
number of services at Bank, including real estate
lending which is expected to increase with the
establishment of a real estate department at Bank.
Applicant also plans to strengthen Bank's commercial lending services. Affiliation with Applicant will enable Bank to expand its various lending
functions. 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 judgment, clearly outweigh
any slightly adverse effects on competition that
might result from consummation of the proposal.
It is the Board's judgment that approval of the
application 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 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 Dallas pursuant to delegated
authority.
By order of the Board of Governors, effective
October 11, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee and Teeters.
Absent and not voting: Governor Gardner.
[SEAL]
(Signed) GRIFFITH L . G A R W O O D ,
Deputy Secretary of the Board.
not appear that Applicant would alter Bank's policies in this
regard. To the contrary, it appears that Bank would continue
to offer predominantly consumer and commercially oriented
banking services rather than services aimed exclusively at
military customers.
Several banks in the San Antonio banking market, including
one of Applicant's subsidiary banks and Kelly Bank, are
located near and/or have an office on military bases in the
San Antonio area. The Board concludes that Applicant is not
currently dominant among the banking organizations serving
military personnel in the San Antonio area and that the acquisition of Bank will not significantly enhance Applicant's position in this regard.
890
Federal Reserve Bulletin • November 1978
Pioneer Bancorporation, Inc.,
Denver, Colorado
Order Approving
Formation of Bank Holding Company
Pioneer Bancorporation, Inc., Denver, Colorado, 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 by acquiring 98.45 per cent of
the voting shares of Colfax National Bank of
Denver, Denver, Colorado ("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 non-operating Colorado corporation with no subsidiaries, was formed for the
purpose of becoming a bank holding company by
acquiring Bank. Bank, with deposits of $16.3
million, ranks 128th in size among 288 banks in
the State of Colorado and holds 0.17 per cent of
total deposits in commercial banks in the State. 1
With only 0.29 per cent of total deposits in commercial banks in the Denver banking market, 2
Bank is one of the smallest of 81 banking organizations operating in the relevant market. 3 Applicant controls no other banks.
One of Applicant's principals is also chairman
of FirstBank Holding Company, Lakewood, Colorado ("FirstBank") and each of its ten subsidiary
banks. Three of FirstBank's subsidiary banks are
located in the Denver market and control, in the
aggregate, 1.63 per cent of deposits therein. In
view of the small combined market share of the
three FirstBank banks and Applicant and the large
number of banking alternatives in the market, it
appears that consummation of the proposed transaction would have no significant adverse effect on
competition or concentration in any relevant area.
Thus, the Board concludes that the effects of the
1
All banking data are as of December 31, 1977.
The Denver banking market is approximated by all of
Denver, Adams, Arapahoe, and Jefferson counties, and the
Broomfield area of Boulder County, all in Colorado.
3
Bank is not among the 20 largest banking organizations
operating in the Denver market.
2
proposal on competition are consistent with approval of this application.
The Board has indicated on previous occasions
that a holding company should constitute a source
of financial and managerial strength to its subsidiary bank(s), and that the Board will examine
closely the condition of the applicant in each case
with this consideration in mind. In this connection
the Board notes that Bank has experienced a number of problems in recent years, partly as a result
of policies attributed to the past and present owners
and management of Bank. Applicant proposes to
place into Bank's management individuals who
have demonstrated a satisfactory record of managerial performance in other banking organizations. 4 In addition, Applicant proposes to revise
Bank's operating policies and, pursuant to a commitment to the Board made in connection with this
proposal, Applicant has taken steps to ensure that
Bank's present owner and members of his family
will not hold any office or position with Applicant
or any of its subsidiaries. In view of the facts and
commitment discussed above, it appears that the
proposed transaction should result in a significant
improvement in the management of Bank. Accordingly, the Board concludes that managerial
factors lend significant weight toward approval of
the application.
Bank would be in generally satisfactory financial condition upon implementation of Applicant's
proposal to change Bank's management and
operating policies. The Board notes that Applicant
will incur a sizable amount of debt to finance its
acquisition of shares of Bank. Applicant proposes
to repay that debt over a 12-year period through
dividends on bank stock and tax benefits derived
from filing a consolidated return. Additional fi-
4
T w o of these individuals are principals of Applicant and
are associated with two other multibank holding companies
in Colorado. One principal serves as secretary of Mountain
Financial Services, Inc., Denver, Colorado ("Mountain Financial"), but will resign this position upon approval of the
subject application. Another principal, as noted at page 2
above, is Chairman of FirstBank Holding Company, Lakewood, Colorado, and each of its subsidiary banks. The Board
has previously indicated that, in considering an application by
a bank holding company whose principals are involved in the
management of other banks, it should look beyond the bank
that is the subject of the application and analyze the financial
and managerial resources of the other banks. (See,
e.g.,
Board's Order of June 14, 1976, denying the application of
Nebraska Banco, Inc., Ord, Nebraska, 62 Federal Reserve
Bulletin 638 (1976)). In this case, the financial and managerial
resources of both Mountain Financial and FirstBank are regarded as satisfactory.
Law Department
nancing for the acquisition will be derived from
Applicant's issuance of redeemable, non-voting
preferred stock to Bank's present owners. 5 In
addition, the present owner will guarantee 75 per
cent of the bank stock loan that Applicant is
obtaining to finance its acquisition of Bank's
shares during the first year of repayment, 50 per
cent during the second year, and 25 per cent during
the third year. However, it appears that Applicant
would be able to service its debt without adversely
affecting Bank's capital, in view of certain commitments that Applicant has made to the Board.
Pursuant to these commitments, Applicant will not
authorize or pay any dividends on its common
stock until the bank stock loan obtained by Applicant for the purpose of financing its acquisition
of shares of Bank is repaid in full and amortized
without the substitution of other debt for the original bank stock loan or any portion thereof. Further,
no dividends will be paid on Applicant's preferred
stock unless Bank's gross capital, which includes
shareholders' equity, valuation reserves and capital notes, is equal to at least 8 per cent of Bank's
total assets. Finally, none of Applicant's preferred
stock shall be redeemed by Applicant until the
bank stock loan obtained by Applicant for the
purpose of financing its acquisition of Bank's
shares is repaid in full and amortized without
substitution of other debt for the original bank
stock loan or any portion thereof. Thereafter, any
redemption of Applicant's preferred stock shall be
made only after 45 days prior notice to the Federal
Reserve Bank of Kansas City. 6 Furthermore, no
redemption of Applicant's preferred shares shall
be made unless Bank's gross capital, after such
redemption, would remain equal to at least 8 per
cent of Bank's total assets, or such lesser capital
to assets ratio as the Federal Reserve Bank of
Kansas City deems appropriate. In view of these
conditions, all of which have been agreed to by
Applicant, the Board concludes that the future
prospects of Applicant and Bank appear favorable.
Therefore, taking into account all the circum5
By its action in this case, the Board does not intend to
encourage others to finance acquisitions by incurring such substantial debt or issuing redeemable, non-voting preferred
stock, which has debt-like characteristics. However, the commitments made by Applicant in this case would reduce the
risks associated with such debt and preferred shares. Moreover,
the Board regards the need for new management in Bank as
a significant countervailing consideration in this case.
6
Such notification is to be made in accordance with the
procedures specified in section 2 2 5 . 6 of the Board's Regulation Y (12 C.F.R. § 225.6) regarding the purchase or redemption by a bank holding company of its own shares.
891
stances of this case, the Board regards considerations relating to banking factors as favoring
approval of the application.
Applicant proposes to concentrate Bank's lending in its primary service area, review Bank's loan
policies, and change the management of Bank.
The Board finds that although other proposals to
transfer control of Bank may be more desirable
than the one presented here, the subject proposal
is the most appropriate means now available to
improve the overall position and operations of
Bank. Accordingly, considerations of the convenience and needs of the community to be served
lend weight toward approval of the application.
On the basis of the record, the application is
approved for the reasons and subject to the conditions 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 Kansas City pursuant to delegated authority.
By order of the Board of Governors, effective
October 20, 1978.
V o t i n g for this a c t i o n : C h a i r m a n M i l l e r and G o v e r nors W a l l i c h , C o l d w e l l , J a c k s o n , P a r t e e , and T e e t e r s .
A b s e n t and not v o t i n g : G o v e r n o r G a r d n e r .
[SEAL]
(Signed) GRIFFITH L . G A R W O O D ,
Deputy Secretary of the Board.
The Retirement Research Foundation
Park Ridge, Illinois
Order Approving
Formation of Bank Holding Company
The Retirement Research Foundation, Park
Ridge, Illinois, ("Applicant") 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 by retaining 99 per cent of the voting shares of Citizens Bank and Trust Company, Park Ridge, 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
892
Federal Reserve Bulletin • November 1978
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 tax-exempt charitable foundation
under § 501(c)(3) of the Internal Revenue Code,
is not engaged in any business activities. Rather,
Applicant is engaged solely in the funding of research regarding the problems of retired workers,
although it has been semi-dormant since its creation in 1950. 1 Applicant acquired legal title to
the shares of Bank on January 14, 1978, as a result of the death of Bank's principal shareholder.
The shares of Bank were placed in a revocable
trust for Applicant by this individual during his
lifetime and upon his death legal title to the shares
became vested in Applicant. Applicant now seeks
the Board's approval to retain these shares.
Bank ($367 million in deposits), is the 11th
largest bank in Illinois, with approximately 0.5
per cent of total deposits in commercial banks in
the State. 2 Bank is also the 11th largest banking
institution in the relevant market, 3 holding approximately 0.8 per cent of total deposits in commercial banks in that market. Since Applicant has
no other banking subsidiaries, and its trustees are
not associated with any other bank, retention of
Bank would not have any adverse effects upon either existing or potential competition nor would
it increase the concentration of banking resources
in any relevant area. Thus, the Board concludes
that the competitive effects of the proposal are
consistent with approval of the application.
The financial resources and future prospects of
Applicant, which are dependent upon those of
Bank, appear satisfactory and are regarded as
being consistent with approval of the application
to become a bank holding company. Based on the
record, the Board also concludes that Applicant's
1
The legislative history of the 1966 Amendments to the
Act indicates that while Congress generally intended to subject
trusts and charitable institutions to the Act's provisions, the
solely charitable functions of such organizations existing at
that time were not to be regarded as "activities" within the
meaning of the prohibitions of section 4 of the Act. S. Rep.
No. 1179, 89th Cong., 2d Sess. 3 (1966). Although the solely
charitable functions of charitable organizations existing at the
time of the 1966 Amendments are not to be regarded as "activities," such organizations are subject to all of the Act's
other provisions. Moreover, it is possible that an application
to become a bank holding company by such an organization
could raise issues not contemplated by Congress if it is not
clearly and exclusively the type of organization described in
the legislative history.
2
All banking data are as of December 31, 1977.
3
The Chicago banking market, the relevant market, is approximated by all of Cook and DuPage Counties, and the
southern portion of Lake County, Illinois.
and Bank's managerial resources are also satisfactory. 4 Therefore, considerations relating to
banking factors are regarded as being consistent
with approval.
While no major changes are contemplated in
Bank's services, considerations relating to convenience and needs of the community to be
served are consistent with approval. Accordingly,
it is the Board's judgment that Applicant's proposal to form a bank holding company would be
consistent with the public interest and the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above.
By order of the Board of Governors, effective
October 27, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Jackson, Partee, and Teeters. Absent and
not voting: Governors Gardner and Cold well.
[SEAL]
(Signed) GRIFFITH L. G A R W O O D ,
Deputy Secretary of the Board.
Security Bancshares, Inc.,
Tulsa, Oklahoma
Order Approving
Formation of Bank Holding Company
Security Bancshares, Inc., Tulsa, Oklahoma,
has applied for approval, under section 3(a)(1) of
the Bank Holding Company Act of 1956 (12
U.S.C. § 1842(a)(1)), to become a bank holding
company through the acquisition of all of the voting shares, less directors' qualifying shares, of
Security Bank ("Bank"), Tulsa, Oklahoma.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act (43 Federal Register 41086
4
In making its analysis of Applicant's managerial resources, the Board notes that this application includes an afterthe-fact request for the Board's approval to retain bank shares
acquired in violation of the Act. Upon examination of all the
facts surrounding the acquisition of Bank's shares without
prior Board approval, it appears that denial of the application
is not warranted. In acting upon the application, the Board
has taken into consideration the fact that Applicant has attempted to conform its operations to the Act by promptly filing this application. In addition, Applicant's management has
taken steps to insure that violations will not occur in the future, including the initiation of a program under the direction
of an individual responsible for ensuring that Applicant's management is aware of its responsibilities under the Bank Holding Company Act. The Board expects that these actions will
enable Applicant to avoid any future violations.
Law Department
(1978)). The time for filing comments and views
has expired and the application 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)).
Applicant is a nonoperating corporation with no
subsidiaries, organized for the purpose of becoming a bank holding company through the acquisition of Bank, which has deposits of $16.5 million. 1 Upon acquisition of Bank, Applicant would
control the 184th largest bank in Oklahoma, controlling 0.13 per cent of the total deposits in commercial banks in the State.
Bank is the 31st largest of 46 banks in the
Tulsa banking market, 2 controlling 0.51 per cent
of market deposits. This proposal involves restructuring of Bank's ownership from individuals to
a corporation controlled by the same individuals.
Principal owners, officers and directors of Applicant and Bank are associated with two other
banks and a one-bank holding company located
in Bank's market. The combined total deposits of
Bank and the affiliated banks amount to $81.7
million, which is 2.54 per cent of total market
deposits. This combined market share does not
represent an adverse concentration of banking resources. Furthermore, Applicant's principal
owners, officers, and directors were among the
principal organizers of all three banks and it appears that such de novo entry had pro-competitive
effects by providing three new banking alternatives within the market. While approval of the
subject proposal would further solidify the existing relationship between Bank and the two affiliated banks and reduce the likelihood that Bank
would become an independent competitor in the
future, based upon the facts of record, including
the size and rank in the market of the banks and
the presence of other banking alternatives in the
Tulsa banking market, it appears that consummation of this proposal would not result in any significant adverse effects upon competition in any
relevant area. Thus, competitive factors are consistent with approval.
Where principals of an applicant are engaged
in operating a chain of one-bank holding companies, the Board applies multi-bank holding com-
893
pany standards in assessing the financial and managerial resources and future prospects both of an
applicant seeking to become a one-bank holding
company and of its proposed subsidiary bank. 3
Based upon such analysis in this case, the financial and managerial resources and future prospects
of Applicant, Bank, and the affiliated banks and
bank holding company appear to be generally
satisfactory, particularly in light of Applicant's
commitment to inject additional capital into Bank.
The future prospects of Applicant are entirely dependent upon the resources of Bank. Applicant
proposes to service the debt to be incurred over
a 12-year period through dividends received from
Bank. In light of past earnings of Bank, the anticipated growth in Bank earnings appears to provide
Applicant with sufficient financial flexibility to
meet its annual debt servicing requirements, while
maintaining an adequate capital position for
Bank. Therefore, considerations relating to banking factors in regard to this proposal are consistent with approval of the application.
Although consummation of the proposal would
effect no changes in the banking services offered
by Bank, considerations relating to the convenience and needs of the community to be served
lend some weight for approval. Bank was organized in 1974 in response to a growing demand
for banking services on the eastern side of Tulsa.
It has been determined that consummation of the
transaction 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 consummated before the
thirtieth 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 of Governors
or by the Federal Reserve Bank of Kansas City
pursuant to delegated authority.
By order of the Secretary of the Board, acting
pursuant to delegated authority from the Board of
Governors, effective October 31, 1978.
[SEAL]
(Signed) J O H N M. W A L L A C E ,
Assistant Secretary of the Board.
All banking data are as of December 31, 1977.
2
The Tulsa banking market is approximated by the Tulsa
RMA.
3
See, e.g.,
BULLETIN 6 3 8
Nebraska Banco, Inc., 62 FEDERAL RESERVE
(1976).
894
Federal Reserve Bulletin • November 1978
Tulbancorp, Inc.,
Tulsa, Oklahoma
Order
Formation
Approving
of Bank
Holding
Company
Tulbancorp, Inc., Tulsa, Oklahoma, has applied
for the Board's approval under section 3(a)(1) of
the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of formation of a bank holding
company by acquiring all the voting shares (less
directors' qualifying shares) of Bank of Tulsa
("Bank"), Tulsa, Oklahoma.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the Board has considered
the application and all comments received in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant is a nonoperating corporation organized for the purpose of acquiring Bank, which
holds deposits of $32 million. 1 Upon acquisition
of Bank, Applicant would control the 83rd largest
banking organization in Oklahoma and approximately 0.2 per cent of the total deposits in commercial banks in the State.
Bank is the 17th largest of 46 banks competing
in the Tulsa banking market, 2 holding approximately 1.0 per cent of the total deposits in commercial banks in that market. This proposal represents a restructuring of the existing ownership of
Bank from individuals to a corporation owned by
the same individuals. Since Applicant has no other
subsidiaries and Applicant is not under common
control with any other bank, 3 it appears that consummation of the proposed transaction would have
no adverse effect on competition or concentration
of banking resources in any relevant area. Thus,
the Board concludes that the effects of this proposal on competition are consistent with approval
of the application.
1
All banking data are as of December 31, 1977.
The Tulsa banking market is approximated by the Tulsa
RMA.
3
Three individuals who will own 2 6 . 4 per cent of Applicant's voting shares are also directors of First Tulsa Bancorporation ("First Tulsa") and its subsidiary, First National Bank
and Trust Company of Tulsa, the largest bank in the Tulsa
banking market. None of these individuals is an officer or
director of Applicant or Bank and their combined ownership
in First Tulsa is less than 5 per cent of the outstanding voting
shares. In view of the limited nature of the relationship between
Applicant and First Tulsa, the Board has concluded that the
relationship between Applicant and First Tulsa has no significant effect on competition.
2
The financial and managerial resources of Applicant, which are largely dependent upon those
of Bank, are considered generally satisfactory, and
their future prospects appear favorable. Although
Applicant will incur some debt in connection with
this proposal, it appears that income to be derived
from Bank would provide Applicant sufficient
revenue to service the debt while maintaining
acceptable capital levels at Bank.
Although consummation of the proposal 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 of the application. It
has been determined that consummation of the
transaction 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 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.
By order of the Board of Governors, effective
October 16, 1978.
V o t i n g for this action: V i c e C h a i r m a n Gardner and
G o v e r n o r s W a l l i c h , C o l d w e l l , J a c k s o n , P a r t e e , and
T e e t e r s . A b s e n t and not v o t i n g : C h a i r m a n M i l l e r .
(Signed)
[SEAL]
Deputy
GRIFFITH
Secretary
L.
GARWOOD,
of the
Board.
United Bank Corporation of New York,
Albany, New York
Order
Denying
Acquisition
of
Bank
United Bank Corporation of New York, Albany,
New York, a bank holding company within the
meaning of the Bank Holding Company Act
( " A c t " ) , has applied for the Board's approval
under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire all the voting shares of
the successor by merger to The Schenectady Trust
Company ("Bank"), Schenectady, New York. 1
1
In conjunction with this application, Applicant has requested prior approval to merge 320 State Street Bank, Schenectady, New York, with The Schenectady Trust Company,
Schenectady, N e w York, under the charter of the former and
with the title of The Schenectady Trust Company, pursuant
to § 18(c) of the Federal Deposit Insurance Act, 12 U . S . C .
§ 1828(c).
Law Department
The bank into which Bank is to be merged has
no significance except as a means to facilitate the
acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the
successor organization is treated herein as the
proposed acquisition of the shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the Board has considered
the application and all comments received in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, the fifteenth largest commercial
banking organization in the State of New York,
controls four banks with aggregate deposits of
approximately $1.3 billion, representing 1.0 per
cent of the total deposits held by commercial banks
in that State. 2 Acquisition of Bank (deposits of
approximately $166.5 million) would increase
Applicant's share of statewide deposits by approximately 0.1 per cent and would not alter
Applicant's ranking among the other banking organizations in the State. Accordingly, consummation of this proposal would not result in a significant increase in the concentration of commercial
banking resources in New York.
Bank, the third largest banking organization in
the Albany banking market, 3 controls approximately 8.2 per cent of market deposits. Applicant,
through its lead bank, State Bank of Albany,
2
All deposit data are as of June 30, 1977.
The Albany banking market consists of Albany, Schenectady and Rensselaer Counties plus the towns of Clifton Park,
Halfmoon, Waterford, Malta, Stillwater, Mechanicville, Ballston, Charlton, Galway and Milton in Saratoga County. Applicant contends that Schenectady County is itself a separate
and distinct banking market and, therefore, acquisition of Bank
would not have an adverse impact on existing competition in
the Albany market. However, commuting data indicate that
a significant portion of the employed residents of Schenectady
County work outside Schenectady County, with 17.6 per cent
commuting to Albany County alone. These data demonstrate
that Schenectady County is not a separate or distinct banking
market but rather part of the Albany banking market. Applicant
further contends that a portion of northwestern Albany County
is actually part of the Schenectady banking market, as defined
by Applicant. However, commuting data indicate that at least
15 per cent of the labor force from such area commutes into
the City of Albany, which is indisputably outside Applicant's
suggested market. Finally, with the exception of one bank,
all commercial banks with offices in Schenectady County also
have offices in Albany County, and rates on selected services
of such banks are similar in both the Schenectady County and
Albany County offices. From these and other facts of record,
the Board concludes that the Albany banking market is the
relevant banking market for purposes of analyzing the competitive effects of this proposal.
3
895
Albany, New York, is the second largest banking
organization in that market, controlling 20.1 per
cent of market deposits. Consummation of the
proposed transaction would increase Applicant's
already significant share of deposits in the market
to 28.3 per cent and would cause Applicant to
become the largest banking organization in the
market. Consummation of the proposal would also
increase the percentage of deposits held by the
three largest banking organizations in the market
from approximately 60.3 per cent to 67.9 per cent.
The Board views this increase in concentration of
banking resources as a significant adverse effect
on competition in the Albany market.
In addition to the adverse effects on concentration of resources, it appears that consummation
of the proposal would have substantially adverse
effects upon competition within the Albany banking market. As noted above, Applicant is already
well represented in the relevant market through
its lead bank. The record indicates that substantial
existing competition would be eliminated by Applicant's acquisition of Bank. Furthermore, the
proposed acquisition would foreclose the possibility of increased competition between Applicant
and Bank in the future. Applicant presently has
no offices in Schenectady County and has the
financial and managerial resources to expand de
novo into this area. In addition, the proposal would
remove Bank as a potential entry vehicle into the
relevant market by New York bank holding companies not currently represented in the market.
Applicant contends that in order to realistically
evaluate competition and concentration of resources in the relevant market, the Board can no
longer distinguish commercial banks from savings
banks and other thrift institutions in New York
with respect to providing banking services. In this
regard, the Board has for some time recognized
that the presence of thrift institutions in a market
is one of the many factors that must be taken into
consideration when evaluating the competitive effects of a particular acquisition. 4 With respect to
the subject proposal, the Board notes that in New
York, thrift institutions have been able to offer
demand deposit accounts to customers in amounts
up to $1,000 since May of 1976. In addition, it
appears that commercial banks and thrift institutions do compete in the marketing of certain other
4
See e.g., the Board's Order approving the merger of
Northeast Bancorp, New Haven, Connecticut, with First Connecticut Bancorp, Hartford, Connecticut, 60 FEDERAL RESERVE
BULLETIN 3 7 5
(1974).
896
Federal Reserve Bulletin • November 1978
types of services. However, commercial banks in
New York continue to have significantly broader
powers than thrift institutions despite their recently
expanded powers. The Board believes that the
overlap of certain services offered by thrift institutions and commercial banks is not so great at this
time as to treat the two types of financial institutions as if they were the same. The Board continues to be of the view that it is the cluster of
products and services that commercial banks offer
that makes commercial banking a distinct line of
commerce for purposes of analyzing the competitive effects of the subject proposal. Thus, having
considered all of the facts of record in this case,
the Board concludes that consummation of the
proposed transaction would have significant adverse effects on competition in the Albany market.
The financial and managerial resources and future prospects of Applicant, its subsidiaries, and
Bank are regarded as satisfactory and consistent
with approval of the application. Accordingly,
banking factors are consistent with approval of the
subject application.
Although there is no evidence in the record that
the banking needs of the Albany banking market
are not being adequately met, Applicant proposes
to expand the range of services presently offered
by Bank. While certain benefits to the convenience
and needs of the communities to be served might
result from Applicant's acquisition of Bank, similar benefits could also result from entry by less
anticompetitive means. Therefore, although considerations relating to the convenience and needs
of the community to be served lend some weight
to approval, they do not clearly outweigh the
significant anticompetitive effects that would result
from approval of the subject proposal.
On the basis of all relevant facts of record, it
is the Board's judgment that consummation of the
proposed transaction would not be in the public
interest, and the application should be and hereby
is denied. 5
By order of the Board of Governors, effective
October 3, 1978.
Voting for this action: Chairman Miller and Governors Gardner, Cold well, Jackson, Partee, and Teeters.
Voting against this action: Governor Wallich.
(Signed)
[SEAL]
s
Deputy
GRIFFITH
Secretary
L.
GARWOOD,
of the
Board.
In view of the Board's action in this case, Applicant's
proposals to merge 320 State Street Bank with The Schenectady
Trust Company and for membership in the Federal Reserve
System of 320 State Street Bank are rendered moot.
Dissenting
Statement
of Governor
Wallich
I would approve the application of United Bank
Corporation of New York, to acquire the Schenectady Trust Company because I do not believe
that such an acquisition would have significant
adverse effects on competition within the Albany
market. Those elements of the case that seem
anticompetitive to the majority are, in my view,
mitigated by the significant participation of thrift
institutions in the market, owing to their expanded
powers. Thrift institutions in New York have established a strong presence in the State market for
nonbusiness demand deposits, as evidenced by the
growth of their share in that market, in terms of
dollars, from 1.4 per cent to 6.8 per cent since
June 1976. In terms of number of accounts in the
State that growth has been from 4.1 per cent to
17.2 per cent. In the Albany market, the growth
of their share, in terms of dollars, has been from
3.8 per cent to 13.2 per cent over the same period.
Thrift institution dominance of nonbusiness time
and savings deposits in the State has continued,
growing from 67.5 per cent in 1970 to 70.4 per
cent in 1977.
Although thrift institutions are not permitted to
provide most services to businesses, certain types
of consumer lending, or trust services, it appears
that other factors diminish the importance of these
activities in the overall delineation of the product
market. For example, studies have shown that
loans to firms beyond a relatively small size tend
to be made in the regional or national market,
rather than the local market. Business can draw
also on trade credit as another source of credit.
This suggests that the impact on competition of
the proposed acquisition would be less severe than
in the absence of such factors. Other evidence that
mortgage lending is fungible and permits the financing of consumer expenditures through the
mortgage of homes implies that certain consumer
credit services are in fact available from thrifts.
This likewise indicates that the competitive impact
of the acquisition would be less severe than in
the absence of such factors. For these reasons, I
would include thrift institutions in the competitive
analysis to a much greater extent than does the
majority in this case. I would conclude that, because thrifts now offer a diversified group of
banking products and services in direct competition with commercial banks, the competitive
strength of commercial banks is diminished, reducing the anticompetitive character of the acqui-
Law Department
sition. Therefore, I am of the view that consummation of this proposal would have only slightly
adverse competitive effects.
I further concur with the point that the presence
of several of the State's large bank holding companies with offices in the market enhances competition, despite the relatively small market share of
each. Competitive powers of such institutions
cannot be measured solely by their market share.
Acquisition of the Schenectady Trust Company
would strengthen Applicant and enable it to compete more effectively with the State's larger banking organizations that are represented in the market.
Applicant plans, amopg other things, to cause
Bank to expand its lending activities, to commit
itself to partial financing of a redevelopment project in the City of Schenectady, and to reduce its
rate for credit-related insurance coverage. Thus,
in my opinion, considerations relating to the convenience and needs of the community to be served
tend to outweigh any slightly adverse competitive
effects that would result from the acquisition of
Bank by Applicant.
In this case, the evidence supporting the traditional analysis of competition within the market
is not strong enough to dispel the questions raised
by the Applicant concerning the validity of that
analysis. Therefore, I cannot support the majority's decision and I would approve the application.
ORDERS U N D E R SECTIONS 3 A N D
O F BANK HOLDING COMPANY
Republic National Bancshares,
4
ACT
Inc.,
Houston, Texas
Order
Formation
Acquisition
Underwriting
Approving
of Bank
Holding
of Company
Company
to Engage
of Credit-Related
and
in
the
Insurance
Republic National Bancshares, Inc., Houston,
Texas, has applied for the Board's approval under
section 3(a)(1) of the Bank Holding Company Act
(12 U.S.C. § 1842(a)(1)) of formation of a bank
holding company by acquiring 80 per cent or more
of the voting shares of Republic National Bank
of Houston ("Republic Bank"), and 100 per cent
of the voting shares (less directors' qualifying
shares) of Colonial National Bank ("Colonial
Bank"), both of Houston, Texas. Applicant has
also applied for the Board's approval under section
897
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
section 225.4(b)(2) of the Board's Regulation Y
(12 C.F.R. § 225.4(b)(2)) for permission to acquire 80 per cent or more of the outstanding voting
shares of Citizens & Southern Life Insurance
Company, Houston, Texas ("Company"). Company will engage in underwriting activities for
credit life and credit accident and health insurance
directly related to extensions of credit by the
Applicant's banking subsidiaries. Such activities
have been determined by the Board to be closely
related to banking (12 C.F.R. § 225.4(a)(10)).
Notice of the applications, affording opportunity
for interested persons to submit views and recommendations, has been given in accordance with
sections 3 and 4 of the Act. The time for filing
views and recommendations has expired, and the
Board has considered the applications and all
comments received in light of the factors set forth
in section 3(c) of the Act (12 U.S.C. § 1842(c))
and the considerations set forth in section 4(c)(8)
of the Act (12 U.S.C. § 1843(c)(8)).
Applicant, a nonoperating company with no
subsidiaries, was organized for the purpose of
becoming a bank holding company through the
acquisition of Republic Bank ($76 million in deposits) and Colonial Bank ($18 million in deposits), and to engage in the underwriting of credit
life and credit accident and health insurance directly related to extensions of credit by the banking
subsidiaries through the acquisition of Company. 1
Upon the acquisition of Banks, Applicant would
become the 61st largest banking organization in
Texas, controlling approximately 0.1 per cent of
total deposits in commercial banks in the State.
Republic Bank and Colonial Bank are both
located in the Houston banking market, 2 and rank,
respectively, as the 25th and the 90th largest of
122 banking organizations in the market, controlling 0.5 and 0.1 per cent, respectively, of market
deposits. The subject proposal involves a restructuring of Banks' ownership from individuals to a
corporation controlled by those same individuals.
Since Colonial Bank was established de novo by
principals of Republic Bank in September 1975,
there was no elimination of competition at that
1
Unless otherwise indicated, all banking data are as of June
30, 1978, and reflect bank holding company formations and
acquisitions approved as of August 31, 1978.
2
The Houston banking market is approximated by the
Houston Ranally Metropolitan Area ( " R M A " ) , which includes
Harris County and portions of Montgomery, Liberty, Brazoria,
Fort Bend, and Galveston Counties in Texas. Market data are
as of December 30, 1977.
898
Federal Reserve Bulletin • November 1978
time. Upon consummation of the proposal, Applicant would become the 19th largest banking organization in the market, controlling 0.6 per cent
of market deposits. Although there is some deposit
overlap between Banks, there are numerous banking alternatives available in the market. While
approval of the subject proposal would further
solidify the existing relationship between the two
affiliated banks and reduce the likelihood that the
banks would become independent competitors in
the future, based upon the facts of record, including the relative size of the two banks to be acquired, their distance from each other, their rank
in the market, and the presence of other banking
alternatives in the Houston banking market, it
appears that consummation of the proposal would
not have any significant adverse effects upon competition.
The financial and managerial resources and future prospects of Applicant are dependent upon
those of its proposed subsidiary banks. Applicant's
projected twelve-year amortization schedule for
the retirement of its acquisition debt appears to
provide Applicant with the necessary financial
flexibility to meet its annual debt servicing requirement and to maintain an adequate capital
position for its subsidiary banks. The managerial
resources of Applicant and its two subsidiary
banks are considered satisfactory and the future
prospects of each appear favorable. Accordingly,
considerations relating to banking factors are consistent with approval of the application. Considerations relating to the convenience and needs of
the community to be served are also consistent
with approval. Thus, it is the Board's judgment
that consummation of the proposal to form a bank
holding company would be in the public interest
and that the proposal to acquire Republic Bank
and Colonial Bank should be approved.
In connection with its application to become a
bank holding company, Applicant also has applied
for the Board's approval to acquire all of the
outstanding shares of Company, and thereby engage in the underwriting of credit life and credit
accident and health insurance directly related to
extensions of credit by Applicant's banking subsidiaries. 3
3
Company presently underwrites insurance covering extensions of credit by parties other than Applicant's proposed
subsidiary banks. Applicant has committed to cease all impermissible insurance underwriting activities upon consummation
of the subject proposal and, pursuant to the provisions of
section 4(a)(2) of the Act, to divest of all of Company's
impermissible assets within two years from the date of consummation.
Credit life insurance and credit accident and
health insurance are generally made available by
banks and other lenders and are designed to assure
repayment of a loan in the event of death or
disability of the borrower. In connection with its
addition of the underwriting of such insurance to
the list of permissible activities for bank holding
companies, the Board stated:
To assure that engaging in the underwriting
of credit life and credit accident and health
insurance can reasonably be expected to be
in the public interest, the Board will only
approve applications in which an applicant
demonstrates that approval will benefit the
consumer or result in other public benefits.
Normally such a showing would be made
by a projected reduction in rates or increase
in policy benefits due to bank holding company performance of this service. (12
C.F.R. § 225.4(a)(10), n. 7).
Applicant proposes that upon consummation of
this proposal it would charge rates that are 3.4
to 3.7 per cent below the Texas maximum rates
that are currently being charged by Company and
has committed itself to maintain reduced rates
following approval of the application, a result the
Board regards as being in the public interest. It
does not appear that Applicant's acquisition of
Company would have any significant adverse effects upon existing or potential competition. Furthermore, there is no evidence in the record indicating that consummation of the proposal would
result in any undue concentration of resources,
unfair competition, conflicts of interests, unsound
banking practices or other adverse effects upon the
public interest.
Based upon the foregoing and other considerations reflected in the record, including the
commitment by Applicant to maintain on a continuing basis the public benefits which the Board
has found to be reasonably expected to result from
this proposal and upon which the approval of this
application is based, the Board has determined,
in accordance with the provisions of § 4(c)(8) of
the Act, that consummation of this proposal can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects and
favor approval of Applicant's proposal.
Accordingly, the applications are approved for
the reasons summarized above. The acquisition of
Banks shall not be made before the thirtieth calendar day following the effective date of this Order;
and the acquisition of Banks and Company shall
be made not later than three months after the
Law Department
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. The determination as to Applicant's proposed insurance activities is subject
to the conditions set forth in section 225.4(c) of
Regulation Y and to the Board's authority to
require reports by, and make examinations of,
holding companies and their subsidiaries and 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 provisions and purposes
of the Act and the Board's regulations issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
October 20, 1978.
Voting for this action: Governors Wallich, Coldwell,
Jackson, Partee, and Teeters. Absent and not voting:
Chairman Miller and Governor Gardner.
(Signed)
[SEAL]
Deputy
GRIFFITH
Secretary
L.
GARWOOD,
of the
Board.
Central National Corporation,
Richmond, Virginia
Fidelity American Bankshares, Inc.,
Lynchburg, Virginia
Order
Approving
Consolidation
Engagement
of Bank
in Certain
Holding
Companies
and
Nonbanking
Activities
Central National Corporation, Richmond, Virginia C'Central"), and Fidelity American Bankshares, Inc., Lynchburg, Virginia ("Fidelity"),
bank holding companies within the meaning of the
Bank Holding Company Act, have applied for the
Board's approval under section 3(a)(5) of the Act
(12 U.S.C. § 1842(a)(5)) to consolidate into a new
corporation, Commonwealth Banks, Inc., Richmond, Virginia ("Commonwealth"). Immediately
subsequent to the consolidation, Commonwealth
would succeed to and assume all of the assets and
liabilities of Central and Fidelity whereupon Central and Fidelity would cease to exist as legal
entities.
In a concurrent application, Central and Fidelity
have also applied for the Board's approval under
section 4(c)(8) of the Act (12 U . S . C .
§ 1843(c)(8)) and section 225.4(b)(2) of the
Board's Regulation Y (12 C.F.R. § 225.4(b)(2))
899
to continue to engage after consolidation in the
activities of five existing nonbank subsidiaries of
Central and Fidelity, namely, The Columbia Advisory Corporation, Lynchburg, Virginia; Columbia Insurance Agency, Inc., Lynchburg, Virginia;
Fidelity American Computer Services, Inc.,
Lynchburg, Virginia; Cencor Insurance Agency
Incorporated, Richmond, Virginia; and Bankers
Mortgage Corporation, Bailey's Crossroads, Virginia. 1 Cencor Insurance Agency Incorporated and
Columbia Insurance Agency, Inc., would continue
to engage in the activities of acting as insurance
agent or broker with respect to the following types
of insurance related to extensions of credit by
credit granting subsidiaries of the consolidated
organization: (1) credit life, disability, accident
and health insurance; (2) physical damage insurance on mobile homes, motor homes or similar
vehicles; (3) "vendor's single interest" physical
damage insurance on motor vehicles, boats, trailers
and other kinds of personal property or attachments used in connection therewith; and (4) mortgage redemption insurance. Bankers Mortgage
Corporation would continue to engage in the activities of originating mortgage loans as agent and
servicing mortgage loans for subsidiaries of the
consolidated organization; this subsidiary would
also continue to engage in the activity of acting
as insurance agent with respect to credit life and
disability insurance and mortgage redemption and
mortgage cancellation insurance related to its extensions of credit. The Columbia Advisory Corporation would continue to act as investment and
financial advisor, providing portfolio investment
advice and management services to individuals,
partnerships, corporations, pension and profit
sharing plans, private foundations, and endowments, and Fidelity American Computer Services,
Inc., would continue to own, operate and maintain
computer hardware and other related electronic
data processing equipment, to perform electronic
data processing and related clerical bookkeeping,
accounting and statistical services for the internal
operations of the consolidated organization and its
subsidiaries, and to perform such services and
engage otherwise in the business of storing and
processing banking, financial and related economic
data for others, including, but not limited to, other
banks and financial institutions. Such activities
1
Central and Fidelity together have nine inactive nonbank
subsidiaries for which approval under section 4(c)(8) of the
Act would be required before these subsidiaries could engage
in any nonbanking activities.
900
Federal Reserve Bulletin • November 1978
have been specified by the Board in § 225.4(a)
of Regulation Y (12 C.F.R. § 225.4(a))as permissible for bank holding companies, subject to
Board approval of individual proposals in accordance with the procedures of section 225.4(b) of
Regulation Y (12 C.F.R. § 225.4(b)).
Notice of the receipt of these applications, affording opportunity for persons to submit views
and recommendations, has been given in accordance with sections 3 and 4 of the Act (43 Federal
Register 37489). The time for filing views and
recommendations has expired, and the Board has
considered the applications and all comments received 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.
Central, the ninth largest banking organization
in the State of Virginia, controls seven banks with
total deposits of $470 million, representing 2.8 per
cent of the total deposits in commercial banks in
Virginia. 2 Fidelity, the seventh largest banking
organization in the State, controls 15 banks with
total deposits of $830 million, representing 5.0 per
cent of the total deposits in commercial banks in
Virginia. Upon consolidation, Commonwealth
would become the sixth largest banking organization in the State controlling 22 banks with aggregate deposits of $1.3 billion, representing 7.8
per cent of the total deposits in commercial banks
in Virginia. While approval of the application to
consolidate would add one per cent to the share
of total deposits held by the six largest banking
organizations in Virginia, the Board finds that the
proposed consolidation would not have significantly adverse effects upon the concentration of
banking resources in Virginia.
Bank subsidiaries of Central operate primarily
in the Richmond and Petersburg, Virginia, areas.
These geographic areas account for approximately
three-quarters of the total deposits of the bank
subsidiaries of Central. Bank subsidiaries of Fidelity operate primarily in the Lynchburg, Virginia, area, the surrounding communities in
south-central Virginia, and the Tidewater-Peninsula area in southeastern Virginia. These geographic areas account for approximately threequarters of the total deposits of the bank subsidiaries of Fidelity. Bank subsidiaries of both Central
and Fidelity operate in the three largest urban areas
2
All banking data, unless otherwise indicated, are as of
December 31, 1977, and reflect bank holding company formations and acquisitions approved through August 31, 1978.
in the State, namely, the Washington, D.C.,
Standard Metropolitan Statistical Area
( " S M S A " ) , the Richmond Ranally Metropolitan
Area ( " R M A " ) , and the Newport News-Hampton
(Peninsula) SMSA. 3
Two bank subsidiaries of Central operate in the
Washington, D.C., banking market. These subsidiaries have 11 offices located in Arlington,
Fairfax, and Prince William Counties, Virginia,
and the city of Manassas, Virginia, and hold $67.5
million in total deposits, representing 0.7 per cent
of market deposits. 4 Two of the offices are located
in western Fairfax County where a bank subsidiary
of Fidelity operates three offices with $23.3 million
in total deposits, representing 0.2 per cent of
market deposits. Competing in the Washington,
D.C., banking market are the nine largest commercial banking organizations in both Virginia and
Maryland as well as 16 District of Columbia
banking organizations. The market shares of the
largest banking organizations in the market have
declined in recent years, with the four-firm concentration ratio declining to 45.8 per cent in 1977
from 50 per cent in 1970. Upon consolidation
Commonwealth would control $90.8 million in
market deposits, representing 0.9 per cent of such
deposits. 5 In view of these facts and other facts
of record, the Board concludes that consummation
of the proposed consolidation would have only
slightly adverse effects on existing competition in
the Washington, D.C., banking market.
The lead bank of Central is the fourth largest
banking organization in the Richmond banking
market, and holds $309.6 million in total deposits,
representing 12.5 per cent of market deposits. A
3
The Washington, D . C . , banking market is approximated
by the Washington, D . C . , S M S A , which is comprised of the
District of Columbia, the Maryland counties of Charles,
Montgomery, and Prince Georges, the Virginia counties of
Arlington, Fairfax, Loudon, and Prince William, and the cities
of Alexandria, Fairfax, Falls Church, Manassas, and Manassas
Park, Virginia. The Richmond banking market is approximated
by the Richmond R M A which is comprised of the city of
Richmond, almost all of Henrico County, much of Chesterfield
and Hanover Counties, and the eastern tip of Goochland
County, Virginia. The Newport News-Hampton banking market is approximated by the Newport News-Hampton (Peninsula) S M S A which is comprised of the cities of Newport N e w s ,
Hampton, Poquoson, and Williamsburg, and the counties of
Gloucester, James City, and York, Virginia.
4
All market data for the Washington, D . C . , Richmond,
and Newport News-Hampton banking markets are as of June
30, 1977.
5
If the Washington, D . C . , banking market were defined
as including only the District of Columbia and Virginia portions
of the Washington, D . C . , S M S A , Commonwealth would control 1.6 per cent of the total deposits in commercial banks
in that market.
Law Department
bank subsidiary of Fidelity operates four offices
in the market, and holds $13.2 million in total
deposits, representing 0.5 per cent of market deposits. Three of the offices are located in eastern
Henrico County where three offices of Central's
lead bank are located. Five other banking organizations operate 11 banking offices in this part of
the market. The remaining office of this bank
subsidiary of Fidelity is located in western Henrico
County near two offices of Central's lead bank.
Eight offices of six other banking organizations
operate in this part of the market. Currently, 18
banking organizations are located in the Richmond
banking market, as compared with 15 in 1970;
moreover, the four-firm concentration ratio in the
market has declined since 1970. Following consolidation, Commonwealth would control $322.8
million in market deposits, representing 13 per
cent of such deposits. In view of the large number
of banking organizations in the market and the
concentration trend in the market, the Board concludes that consummation of the proposed consolidation would have only slightly adverse effects
on existing competition in the Richmond banking
market.
A bank subsidiary of Fidelity is the fifth largest
of 15 banking organizations located in the Newport
News-Hampton banking market, and holds $48.6
million in total deposits, representing 6.6 per cent
of market deposits. A bank subsidiary of Central
operates four offices in the market, and holds $14.7
million in total deposits, representing 2.0 per cent
of market deposits. One of the offices is located
in Hampton where three offices of the bank subsidiary of Fidelity are located. Another of the
offices is located near two Newport News offices
of this bank subsidiary of Fidelity. Fifteen banking
organizations are located in the market and include
the eight largest banking organizations in the State.
Since 1970, the four-firm concentration ratio
within the market has declined. Upon consolidation, Commonwealth would control $63.3 million in market deposits, representing 8.6 per cent
of such deposits. Commonwealth, however, would
be significantly smaller than the larger banking
organizations in the market and, in view of the large
number of banking organizations in the market,
the concentration trend in the market, and the
relative size of the banks involved, the Board
concludes that consummation of the proposed
consolidation would have only slightly adverse
effects on existing competition in the Newport
News-Hampton banking market.
901
With respect to potential competition, there are
numerous banking markets across the State in
which bank subsidiaries of Fidelity or Central, but
not both, presently operate offices. Fidelity has,
in the past, been aggressive in expanding into new
geographic markets by acquiring existing banks
and by entering markets de novo. However, Fidelity, on its own, does not appear to be in a
position to continue to pursue such an expansionary policy, and thus may not be considered to be
a likely entrant into any of the markets currently
served by bank subsidiaries of Central. Central,
on the other hand, appears to have the financial
resources to engage in some geographic expansion
into the markets currently served by bank subsidiaries of Fidelity. The banking structure of each
of these markets has been carefully examined to
determine whether any significantly adverse effects
on potential competition would result from the
proposed consolidation. Based upon that examination, the Board concludes that consummation of
the proposal to consolidate would have only
slightly adverse effects on potential competition
in any market.
On the basis of the foregoing and other facts
of record, the Board concludes that consummation
of the proposed consolidation would have slightly
adverse competitive effects. The Board believes
that these effects, however, when viewed in light
of other considerations reflected in the record, are
not serious enough to warrant denial of the proposal.
The financial and managerial resources and future prospects of Central and Fidelity and their
subsidiary banks are generally satisfactory and
consistent with approval of the application to consolidate. The financial and managerial contributions to the consolidated organization by Central
and Fidelity appear to be complementary. Central
will provide financial strength to the consolidated
organization while Fidelity will provide a substantial asset base and a broader market presence. In
view of these facts and other facts of record, the
Board has determined that financial and managerial
considerations lend weight toward approval of the
proposed consolidation.
Considerations relating to convenience and
needs lend weight toward approval of the application to consolidate. The financial condition of the
consolidated organization will enable the subsidiary banks of Commonwealth to offer new and
improved services to their customers. Commonwealth intends to increase the mortgage and agri-
902
Federal Reserve Bulletin • November 1978
cultural lending of the subsidiary banks as well
as their leasing of personal property. The consolidated organization will have a substantially improved capability to negotiate large business loans
and to provide correspondent services. Based on
these facts and other facts of record, it is the
Board's judgment that considerations relating to
convenience and needs outweigh any anticompetitive effects that might result from the proposed
consolidation. Accordingly, it has been determined that the proposed consolidation would be
in the public interest and that the application to
consolidate should be approved.
Central and Fidelity have also applied for the
Board's approval to continue to engage in the
nonbanking activities of The Columbia Advisory
Corporation, Columbia Insurance Agency, Fidelity American Computer Services, Cencor Insurance Agency Incorporated, and Bankers Mortgage
Corporation. Two of these subsidiaries would
continue to engage in the activities of acting as
insurance agent or broker with respect to certain
credit-related insurance and one would continue
to provide data processing services. The other
subsidiaries would continue to provide investment
advisory services and continue to originate and
service mortgages. The insurance agency and data
processing affiliates of Central and Fidelity service
only the subsidiaries of their respective holding
companies and, therefore, do not compete with
each other. Bankers Mortgage Company, a subsidiary of Fidelity, does compete for second mortgage loans within the Washington, D.C., SMS A
where bank subsidiaries of Central are mortgage
lenders. However, in view of the amount of second
mortgage lending engaged in by these firms, the
direct competition that would be eliminated within
this market upon consummation of this proposal
appears to be negligible. No other nonbank subsidiary of Central or Fidelity competes with any
bank or nonbank subsidiary of the other organization. Accordingly, the Board concludes that no
adverse competitive effects on nonbank competition would result from approval of the application
to continue to engage in certain nonbanking activities. There is no evidence in the record indicating
that approval of the application to continue to
engage in certain nonbanking activities would result in any undue concentration of resources, unfair competition, conflicts of interests, unsound
banking practices or other adverse effects on the
public interest. Based on the foregoing and other
facts of record, the Board has determined that the
balance of the public interest factors the Board
must consider under section 4(c)(8) favor approval
of Applicant's proposal.
Accordingly, the applications are approved for
the reasons summarized above. The consolidation
shall not be made before the thirtieth calendar day
following the effective date of this Order, nor 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 Richmond pursuant to delegated authority. The
determination as to the nonbanking activities of
Central and Fidelity is subject to the conditions
set forth in section 225.4(c) of Regulation Y (12
C.F.R. § 225.4(c)) and to the Board's authority
to require reports by, and make examination of,
holding companies and their subsidiaries and 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 issued
thereunder, or to prevent evasions thereof.
By order of the Board of Governors, effective
October 31, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Jackson, Partee, and Teeters. Absent and
not voting: Governors Gardner and Coldwell.
[SEAL]
( S i g n e d ) JOHN M . WALLACE,
Assistant
Secretary
of the
Board.
ORDERS UNDER SECTION 4
OF B A N K HOLDING COMPANY ACT
Johnson County Bankshares, Inc.,
Prairie Village, Kansas
Order Approving
Retention
of
Republic
Investment
Company,
Inc.
Johnson County Bankshares, Inc., Prairie Village, Kansas, a bank holding company within the
meaning of the Bank Holding Company Act
( " A c t " ) , has applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of the
Board's Regulation Y (12 C.F.R. § 225.4(b)(2))
to retain all of the voting shares of Republic
Investment Company, Inc., Prairie Village,
Kansas ("Company"), a company that engages
in making direct consumer instalment loans, seccured and unsecured, to individuals, purchasing
consumer instalment sales finance contracts, and
acting as agent for the sale of credit life and credit
Law Department
accident and health insurance directly related to
extensions of credit by Company. 1 Such activities
have been determined by the Board to be closely
related to banking (12 C.F.R. §§ 225.4(a)(1) and
(9)(ii)(a)).
Notice of the application, affording opportunity
for interested persons to submit views and recommendations on the application, has been duly published (43 Federal Register 33323 (1978)). The
time for filing views and recommendations has
expired, and the Board has considered the application and all comments received in light of the
public interest factors set forth in section 4(c)(8)
of the Act.
Applicant, a one-bank holding company, became a bank holding company as a result of the
Bank Holding Company Act Amendments of 1970
by virtue of its control of Johnson County National
Bank and Trust Company, Prairie Village, Kansas
("Bank"). Applicant acquired all of the shares of
Company on December 19, 1970. Pursuant to the
provisions of section 4 of the Act, Applicant has
until December 31, 1980, to divest its shares of
Company or in the alternative to apply to the Board
to retain them. 2
Applicant is the eleventh largest banking organization in Kansas. On December 31, 1977, Bank
held deposits of approximately $106 million, representing approximately 0.98 per cent of total
deposits in commercial banks in the State. Applicant is engaged directly in originating development, construction and permanent mortgage loans,
and indirectly through subsidiaries in real estate
development and acting as general insurance
agent. 3
Company conducts its consumer finance business from one office located in Prairie Village,
Kansas, and derives the bulk of its business from
the Kansas City banking market. 4 On December
1
Company is also engaged in leasing personal property for
which it has obtained approval under section 4(c)(8) of the
Act from the Federal Reserve Bank of Kansas City acting
pursuant to delegated authority.
2
Section 4 of the Act provides, inter alia, that nonbanking
companies acquired after June 30, 1968, and before January
1, 1971, by a company that becomes a bank holding company
as a result of the 1970 Amendments to the Act may not be
retained beyond December 31, 1980, without Board approval.
3
Inasmuch as these activities were commenced after June
30, 1968, and before January 1, 1971, under section 4 of the
Act Applicant may not retain these activities beyond December
31, 1980, without the Board's approval.
4
The relevant geographic area for evaluating the competitive effects of this application is the Kansas City banking
market, which is approximated by the northern half of Cass
County in Missouri, all of Clay, Jackson and Platte Counties
in Missouri, and all of Johnson and Wyandotte Counties in
Kansas.
903
31, 1977, Company had total assets of approximately $752,000, loans outstanding of approximately $617,000, and lease receivables of approximately $137,000.
The Board generally regards the standards under
section 4(c)(8) of the Act for retention of shares
to be the same as the standards for a proposed
acquisition. At the time of acquisition of Company
by Applicant in 1970, Company had total instalment loans outstanding of approximately $433,000. The relevant product market to be considered
in evaluating the competitive effects of this proposal is the making of personal cash loans, and
the Board has previously determined that consumer finance companies compete with commercial banks in the area of personal loans. 5 While
Bank operates in the Kansas City banking market
and in 1970 was engaged in making personal cash
loans in that market, it is estimated that at the
time of acquisition the combined market share of
Company and Bank of total personal loans outstanding in the relevant geographic market was
less than one per cent. In light of the foregoing
and the fact that there are hundreds of lenders for
personal loans in the relevant geographic market,
the Board concludes that Applicant's acquisition
of Company did not have any significantly adverse
effects on existing competition in any relevant
area, and that Applicant's retention of Company
likewise would not have any significantly adverse
competitive effects.
Since its acquisition by Applicant in 1970,
Company has had access to financial and managerial resources of Applicant. Approval of this application would ensure the continued availability
of personal loans and related credit life and credit
disability insurance to Company's customers.
While the benefits to the public that have resulted
from Applicant's acquisition of Company are not
substantial, based on these and other facts of
record, the Board concludes that such benefits are
sufficient to outweigh any adverse competitive effects that could have resulted from the affiliation.
Moreover, it is the Board's view that approval of
Applicant's retention of Company can reasonably
be expected to continue to produce benefits to the
public that would outweigh possible adverse effects. Furthermore, there is no evidence in the
record indicating that the affiliation of Applicant
and Company has resulted in any undue concen5
See the Board's Order dated August 3, 1973, denying the
application of Bankers Trust N e w York Corporation, N e w
York, N e w York, to acquire Public Loan Company, Inc.,
Binghamton, N e w York, 5 9 F E D . R E S . B U L L . 6 9 4 ( 1 9 7 3 ) .
904
Federal Reserve Bulletin • November 1978
tration of resources, conflicts of interest, unsound
banking practices, or other effects adverse to 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 that the Board is required to consider under
section 4(c)(8) of the Act is favorable. Accordingly, the application is hereby approved. This
determination is subject to the conditions set forth
in section 225.4(c) of Regulation Y and 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 the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
October 13, 1978.
V o t i n g for this action: V i c e C h a i r m a n Gardner and
Governors W a l l i c h , C o l d w e l l , Jackson, Partee, and
Teeters. A b s e n t and not voting: Chairman Miller.
(Signed) G R I F F I T H L. G A R W O O D ,
Deputy Secretary of the Board.
[SEAL]
NCNB Corporation,
Charlotte, North Carolina
Order
Approving
Retention of TranSouth Financial Corporation
NCNB Corporation, Charlotte, North Carolina,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board's approval, under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12 CFR
§ 225.4(b)(2)), to retain all of the voting shares
of TranSouth Financial Corporation (formerly
Stephenson Finance Company), and its subsidiary
TranSouth Mortgage Corporation (formerly Associated Underwriters, Inc.), both of Florence, South
Carolina (together referred to as "TranSouth").
TranSouth engages primarily in making direct
consumer instalment loans, secured and unsecured, to individuals, purchasing consumer instalment sales finance contracts, purchasing recreational lot notes, extending direct loans to
dealers for the financing of inventory (floor planning) and working capital purposes, and purchasing personal property lease contracts. TranSouth
also acts as agent for the sale of credit life and
credit accident and health insurance and physical
damage insurance, all of which are directly related
to extensions of credit by TranSouth. Each of the
above activities has been determined by the Board
to be closely related to banking (12 CFR
§ 225.4(a)(1), (6) and (9)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (43 Federal Register 43388). The time
for filing comments and views has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant, a one-bank holding company, became a bank holding company as a result of the
1970 Amendments to the Act by virtue of its
control of North Carolina^National Bank, Charlotte, North Carolina ("Bank"). Applicant acquired all of the outstanding shares of TranSouth
in July, 1969. Pursuant to the provisions of section
4 of the Act, Applicant has until December 31,
1980, to divest its interest in TranSouth or, in the
alternative, to apply and secure the Board's approval to retain such interest. 1
Applicant is the second largest banking organization in the State of North Carolina by virtue of
its control of Bank, which holds deposits of $2.5
billion, representing 17.2 per cent of the total
deposits in commercial banks in the State. 2 In
addition to engaging in consumer finance and
related insurance activities through TranSouth,
Applicant engages through subsidiaries in a variety
of nonbanking activities, including mortgage
banking, factoring, providing trust services and
acting as an investment advisor.
TranSouth is the 35th largest finance company
in the United States. 3 It operates 105 offices in
5 States, of which 44 are located in North Caro-
1
Section 4 of the Act provides, inter alia, that nonbanking
activities acquired b e t w e e n June 3 0 , 1968, and D e c e m b e r 3 1 ,
1970, by a c o m p a n y which b e c o m e s a bank holding c o m p a n y
as a result of the 1970 A m e n d m e n t s may not be retained b e y o n d
D e c e m b e r 3 1 , 1 9 8 0 , without Board approval. Applicant has
asserted that the shares of TranSouth may be retained by
Applicant on the basis of section 4 ( c ) ( 5 ) of the A c t , w h i c h
provides an e x e m p t i o n for retention of shares which are eligible
for investment by a national banking association under the
provisions of section 5 1 3 6 of the R e v i s e d Statutes. For the
reasons set forth in its Order of May 11, 1978, the Board
b e l i e v e s Applicant's assertion of the applicability of section
4 ( c ) ( 5 ) of the Act to the shares of TranSouth is without merit.
2
All banking data are as of June 3 0 , 1978.
3
American
Banker, June 19, 1978.
Law Department
lina. 4 On June 30, 1978, TranSouth had assets of
$176 million and total finance receivables of
$164.9 million.
By Order dated May 11, 1978, the Board denied
an application by Applicant to retain the shares
of TranSouth. In that Order, the Board found that
the acquisition of TranSouth by Applicant in 1969
eliminated a significant amount of existing competition in five local markets in North Carolina
where both Bank and TranSouth had offices. 5 The
Board also expressed concern as to the effects of
the acquisition on potential competition, because
of the possibility that either Bank or TranSouth
could establish offices in markets where the other
was represented. Subsequent to Applicant's acquisition of TranSouth, both Bank and TranSouth
expanded operations, resulting in the establishment of overlapping offices in 12 additional markets. The Board found that the adverse competitive
effects of the acquisition were not outweighed by
any showing by Applicant of benefits to the public
resulting from the acquisition. 6
In order to eliminate the adverse competitive
effects found by the Board, Applicant has modified
its proposal to retain TranSouth, but providing for
the divestiture by December 31, 1980, of 25 offices
of TranSouth and one office of Bank in the 17
markets in North Carolina where both Bank and
TranSouth have offices. 7 The proposed divestitures
4
In its amended application, Applicant has also requested
the Board's approval to retain 11 offices of TranSouth opened
de novo during July and August of 1978, in South Carolina
and Tennessee.
5
The relevant product market to be considered in evaluating
the competitive effects of this proposal is making personal cash
loans, and the Board has previously determined that consumer
finance companies compete with commercial banks in the area
of personal loans. See the Board's Order dated August 3, 1973,
denying the application of Bankers Trust Corporation, New
York, New York, to acquire Public Loan Company, Bingham-
ton, N e w
Y o r k , 5 4 FEDERAL RESERVE BULLETIN
694.
6
In order to approve an application under section 4(c)(8)
of the Act, the Board must determine whether the activities
of the company to be acquired or retained are "so closely
related to banking or managing or controlling banks as to be
a proper incident thereto," and whether the bank holding
company's acquisition of that company "can reasonably be
expected to produce benefits to the public, such as greater
convenience, increased competition, or gains in efficiency that
outweigh possible adverse effects, such as undue concentration
of resources, decreased or unfair competition, conflicts of
interest, or unsound banking practices." That statutory test
requires a positive showing by Applicant that the public benefits of its proposal outweigh the possible adverse effects. While
Applicant maintains that the Board should apply a somewhat
different standard, particularly with regard to competitive effects, the Board rejects Applicant's argument for the reasons
stated in its Order of May 11, 1978.
7
Inasmuch as the Board's May 11, 1978 Order addressed
the adverse effects on competition with respect to personal cash
loans, Applicant proposes to retain in some cases the indirect
loan receivables of the offices to be divested.
905
will eliminate all overlapping offices of Bank and
TranSouth in North Carolina. In order to ensure
both that the offices will be completely divested
and that they will be divested as viable going
concerns, the Board expects that such offices will
be sold as going concerns and holding substantially
the same quality and type of assets as those offices
held on May 11, 1978, and in an amount not less
than that amount held by those offices on that date.
Furthermore, while Applicant proposes to retain
19 offices of TranSouth in North Carolina where
Bank could establish banking offices, these markets do not appear to be attractive for de novo
entry by Bank, and Applicant has indicated that
it is unlikely that either TranSouth or Bank will
expand into any of the markets now served by
the other. 8 In view of the foregoing, it appears
that the proposed retention would not have significant adverse effects upon existing competition and
would have only slightly adverse effects upon
potential competition in North Carolina. Finally,
inasmuch as Applicant or its subsidiaries did not
at the time of the acquisition and do not now
engage in making personal cash loans in any
market outside of North Carolina, the proposed
retention would not have any adverse effect upon
either existing or potential competition in any of
those markets.
In its amended application, Applicant has submitted additional evidence demonstrating that the
acquisition of TranSouth by Applicant has resulted
in substantial benefits to the public in the form
of lower interest and rates and other changes,
larger loans and improved services. In particular,
TranSouth charges from one to two percentage
points less than the legal maximum interest rate
in South Carolina, and omits legally permissible
maintenance fees in Tennessee and Virginia. In
addition, TranSouth does not charge late fees for
most loans made in Virginia, North Carolina, and
South Carolina. Furthermore, TranSouth makes
simple interest loans in Virginia, North Carolina,
and South Carolina, a practice that, among other
benefits, eliminates the usual interest penalty assessed on borrowers that prepay their loans. Finally, the average loan made by TranSouth has
increased and exceeded the industry composite in
four of the last five years when compared with
finance companies holding between $50 million
and $150 million in receivables. Affiliation with
Applicant has enabled TranSouth to offer other
8
The Board notes that Applicant has represented that it does
not have any plans to open additional TranSouth offices in
North Carolina.
906
Federal Reserve Bulletin • November 1978
improved services, including monthly statements
to borrowers in lieu of payment books, debt counseling services, and a commitment to rewrite loan
contracts "in plain English."
On the basis of these and other facts of record,
the Board concludes that the benefits to the public
resulting from NCNB's acquisition of TranSouth
outweigh the slightly adverse effects on competition reflected in the instant proposal. Moreover,
it is the Board's view that approval of NCNB's
retention of TranSouth can reasonably be expected
to continue to produce benefits to the public that
would outweigh any possible adverse effects. Furthermore, there is no evidence in the record indicating that the retention would result in any undue
concentration of resources, 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
section 4(c)(8) is favorable and that the application
should be approved. Accordingly, the application
is hereby approved. This determination is subject
to the conditions set forth in section 225.4(c) of
Regulation Y and to the Board's authority to
require such modification or termination of the
activities of a holding company or any of its
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.
Voting for this action: Chairman Miller and Governors Wallich, Jackson, Partee, and Teeters. Absent and
not voting: Governors Gardner and Coldwell.
(Signed)
[SEAL]
Deputy
GRIFFITH L GARWOOD,
Secretary
of the
Board.
Old Stone Corporation,
Providence, Rhode Island
Order
Approving
Guild
Loan
Acquisition
and Investment
of
Company
Old Stone Corporation, Providence, Rhode Island, a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"),
has applied for the Board's approval, under
§ 4 ( c ) ( 8 ) of the B H C Act (12 U . S . C .
§ 1843(c)(8)) and § 225.4(b)(2) of the Board's
Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire Guild Loan and Investment Company, Providence, Rhode Island ("Guild Loan"), a presently inactive industrial loan company that will
engage in the activity of operating as an industrial
loan company. Such activity has been determined
by the Board to be closely related to banking (12
C.F.R. § 225.4(a)(1), (2), 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 (43
Federal Register 22781). The time for filing comments and views has expired, and the Board has
considered the application and all comments received, including those of First Federal Savings
and Loan Association of Providence, Providence,
Rhode Island ("First Federal") and the National
Association of Mutual Savings Banks ("Association"), in the light of the public interest factors
set forth in § 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)). Association has also requested the
Board to hold a hearing on the application.
Applicant is the second largest banking organization in the State of Rhode Island and controls
Old Stone Bank, Providence, Rhode Island, which
holds deposits of approximately $970.5 million. 1
In addition, Applicant controls two Morris Plan
banks that were acquired with Board approval by
Order dated November 19, 1976 (62 Federal Reserve Bulletin 1055) and a real estate subsidiary
that is engaged in nonbanking activities pursuant
to the limited grandfather exemption of section
4(a)(2) of the BHC Act.
Guild Loan, a presently inactive industrial loan
company, is authorized to offer various consumer
and commercial loan and deposit services under
sections 19-20-9 and 19-20-10 of the General
Laws of Rhode Island. However, Applicant states
that Guild Loan will not accept demand deposits
or make commercial loans. Applicant proposes to
engage de novo through Guild Loan only in the
activities of making installment loans and loans
collateralized by deposits; purchasing consumer
loans originated by others; originating first and
second mortgages, and; accepting consumer investment and savings deposits. Such deposits will
be insured by the Rhode Island Share and Deposit
Insurance Corporation and Guild Loan will be
subject to examination, as any bank incorporated
1
All banking data are as of March 31, 1978.
Law Department
in Rhode Island, RI Gen. Laws X 9-20-6. Guild
Loan's sole office will be located in Providence,
Rhode Island.
As Guild Loan currently is an inactive corporation, consummation of this proposal would not
eliminate existing competition between it and Old
Stone's banking or nonbanking subsidiaries.
Moreover, Applicant's nonbanking subsidiaries do
not compete in the Providence banking market.
Applicant's acquisition of Guild Loan would not
preclude entry by other institutions into the activity
of acting as a loan and investment company. There
is at least one other inactive loan and investment
company charter that is available for purchase in
Rhode Island and applications for new charters
may be filed with the appropriate State banking
authority. Accordingly, no potential competition
would be eliminated upon approval of this application. Furthermore, Applicant's de novo entry
into this activity should have a pro-competitive
effect by increasing the number of alternatives for
services offered by an industrial loan company.
By engaging in the subject industrial loan activity de novo, Applicant will provide an additional
source of such services to the community. In
addition, Applicant proposes to employ some bilingual staff to benefit the Portuguese-speaking
population residing within close proximity of
Guild Loan's proposed location. In addition, Applicant would institute a special loan program to
serve the needs of young and first-time borrowers.
Based on all of the facts of record, the Board
concludes that consummation of the subject proposal would result in benefits to the public. Moreover, there is no evidence in the record to indicate
that the proposed transaction would lead to any
undue concentration of resources, conflicts of interests, unsound banking practices, or any other
adverse effects upon the public interest.
In acting on the subject application, the Board
has considered comments in opposition to approval
of Applicant's proposal from First Federal and
Association, which also requests the Board to hold
a hearing on Applicant's proposal.
First Federal's allegations in opposition to the
application may be summarized as follows: (1)
required injections of capital into Guild Loan
would divert Applicant's resources from its own
future needs and would result in a significant
increase in Applicant's debt; (2) operation of Guild
Loan by Applicant is not a 4 'proper incident" to
banking within the meaning of section 4(c)(8) of
907
the Bank Holding Company Act, (12 U.S.C.
§ 1843(c)(8)) ("BHC Act"); (3) Applicant's
operation of Guild Loan would circumvent interest
rate differential regulations (i.e., the Board's Regulation Q) resulting in unfair competition, and; (4)
anti-competitive consequences resulting from Applicant's operation of Guild Loan are so adverse
as to warrant denial of the subject application. In
addition, First Federal requests "the opportunity
to appear at any hearing that the Federal Reserve
Board of Boston [sic] may see fit to schedule with
respect to the proposal of Old Stone Corporation
for the purposes of elaborating on these objections.
Association's protest contains two allegations.
First, Association contends that approval of the
subject proposal would sanction Applicant's plan
to avoid interest rate limitations applicable to Applicant's bank, i.e. Regulation Q, and, thereby,
grant it an unfair competitive advantage. In conjunction with this argument, Association contends
that the subject proposal is part of the ongoing
effort by commercial banks in New England to
abolish the interest rate differential between banks
and thrift institutions. Second, the Association
alleges that approval of the application would
produce no public benefits since Applicant cannot
offer any loan or investment services through
Guild Loan that cannot be provided through its
banking subsidiary or that are not currently available in the banking market.
Association requests the Board to hold an administrative hearing for the purpose of "further
exploring the many important policy issues involved." Association described the issues that
would be explored in such a hearing as: (1)
whether Applicant should be permitted to utilize
the holding company device to circumvent Regulation Q and, (2) whether Guild Loan is properly
characterized as a nonbanking institution, when in
fact under Rhode Island law, it can operate as a
bank by accepting demand deposits and making
commercial loans.
Section 4(c)(8) of the BHC Act and Section
225.4(b)(2) of Regulation Y provide that the Board
may approve a bank holding company's application to acquire a company engaged in certain
nonbanking activities only after notice of the proposal and an opportunity for a hearing on the
matter. In order to be entitled to such a hearing,
a petitioner must establish that it has standing to
challenge the application by demonstrating that it
908
Federal Reserve Bulletin • November 1978
would suffer "injury in fact" as a result of Board
approval of the application. 2
Association does not make any claim of injury.
In fact, Association states that it "is not and will
not become a competitor of the Applicant as contemplated under the relevant section of the BHC
Act." Association is of the view that First Federal,
the other protestant, is entitled to a hearing on
the application. Thus, Association argues that it
should be entitled to present its views at the
hearing as an 'interested party' because "there are
important questions of law, policy and discretion
involved with potential implications of a national
nature."
Since First Federal does not request the Board
to hold a hearing, but only the right to participate
at a hearing if one is held, Association's request
must stand on its own merits by demonstrating
how Association would be injured as a result of
the Board approving Applicant's proposal. In this
regard, the Supreme Court, in elaborating on the
"injury in fact" test for standing, concluded that
" a mere 'interest in a problem' no matter how
long standing the interest and no matter how
qualified the petitioner is in evaluating the problem," is not sufficient by itself to confer standing. 3
The Court viewed the "injury in fact" test as
designed to ensure that only "those who have a
direct stake in the outcome" will be entitled to
participate in proceedings such as the hearing
requested here. 4 Furthermore, to the extent that
an organization seeks standing based upon its
special interest in a problem, it cannot establish
standing; an organization can establish standing
only as a representative of its members who could
establish injury in fact and who could have requested the action in their own right. 5
In summary, Association does not allege that
it would suffer any injury as a result of consummation of Applicant's proposal. Nor does Association claim that any of its members would be
injured as a result of consummation of the pro2
Association of Data Processing Service Organizations v.
Camp, 397 U.S. 150 (1970); Sierra Club v. Morton, 405 U.S.
727 (1972); Warth v. Seldin, 422 U.S. 490 (1975); Simon
v. Eastern Kentucky Welfare Rights Organization, 426 U.S.
26 (1976). Although the foregoing decisions concern the question of standing before federal courts, the principles of standing
are applicable to the question of standing before administrative
agencies.
3
Sierra Club v. Morton, 405 U.S. 727, 739 (1972).
4
Id. at 740.
5
Warth v. Seldin, 422 U.S. at 511; see also Simon v.
Eastern Kentucky Welfare Rights Organization, 426 U . S . 26
(1976).
posal. 6 By its own admission, Association's interest in this case is that of a concerned bystander.
Association seeks a hearing in this matter in order
to press its particular views. The written views
of Association as an "interested party" are welcome, but do not precipitate the right to a formal
hearing in the absence of a showing of injury in
fact. Association has failed to make the necessary
showing of injury in this case and, therefore, does
not have standing to be entitled to a hearing under
section 4(c)(8) of the BHC Act.
Even if a petitioner has standing, the Board is
not required to hold a hearing unless the petitioner
raises questions of material fact that are in dispute,
because an agency is not required to conduct a
hearing when it would serve no purpose to do so. 7
In order for the Board to approve the subject
application, it must determine that the performance
of the proposed activities of Guild Loan can reasonably be expected to produce benefits to the
public, such as greater convenience, increased
competition, or gains in efficiency that outweigh
possible adverse effects such as undue concentration of resources, decreased or unfair competition,
conflicts of interest or unsound banking practices.
This is a balancing test that requires the Board
to consider all facts bearing upon that determination.
Association states that the crucial issue of fact
in this application is whether Applicant will circumvent federal regulations governing the amount
of interest payable on deposits in banks and thrift
institutions. In Association's view, this would
provide Applicant with an unfair competitive advantage over other financial institutions subject to
such regulation. However, Guild loan is an industrial loan company chartered and regulated by
Rhode Island. It is not a member of the Federal
Reserve System, nor are its deposits insured by
the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation.
Consequently, the interest that Guild Loan may
pay on consumer savings deposits is not subject
to Federal Regulation. From Association's submissions, it appears that the thrust of Association's
opposition is a challenge to the Board's 1971
determination, that the operation of an industrial
6
Even if it is assumed that Association's opposition is on
behalf of its members, Association makes no allegation that
approval of the subject application would injure its members
other than a general claim that unfair competition results from
a bank holding company operating an industrial loan company.
7
Independent Bankers, supra, at 1219-1220.
Law Department
bank is a permissible activity for a bank holding
company, subject to Board approval of specific
proposals. Since Applicant may operate an industrial loan company, such as Guild Loan, which
is not subject to Federal interest rate regulation,
and Association's allegations do not relate to how
Applicant could achieve an unfair competitive
advantage by this specific proposal, there is no
issue of material fact relating to the circumvention
of Federal regulations on interest rates.
With respect to Association's question of
whether Guild Loan is a bank, Regulation Y
specifically prohibits an industrial loan company
that is a subsidiary of a bank holding company
from both accepting demand deposits and making
commercial loans. Applicant has committed that
Guild Loan will not engage in either of these
activities and Association does not challenge Applicant's representations. Accordingly, Association has not presented an issue of material fact
that is disputed by Applicant. Therefore, there is
no need for the Board to hold a hearing on this
question.
Finally, Association asserts that no public benefits would result from approval of Applicant's
proposal because no services would be offered that
are not otherwise available in the market. However, the fact that certain services are already
available is not determinative of whether a particular proposal would result in public benefits.
Moreover, Association does not dispute any of
Applicant's claims that its proposal would benefit
the public by providing an additional source of
industrial loan service as well as offer special loans
for young and first-time borrowers. Nor does Association dispute Applicant's claim that Portuguese speaking employees of Guild Loan would
be a convenience and a benefit in an area with
a large Portuguese speaking population. Association's allegation is merely its own evaluation of
Applicant's proposal and does not raise issues of
material fact regarding probable public benefits of
resulting from consummation of Applicant's proposal. Thus, the Board is not required to hold a
hearing on the question of public benefits to be
derived by the public as a result of Applicant's
proposal.
Even though the Board is not required to hold
a hearing, it could do so if the Board deemed such
a proceeding appropriate under the circumstances. Association's primary concern in this
matter appears to be the general question of bank
holding companies operating industrial loan com-
909
panies. Association's submissions concern this
general issue and do not relate to the specific
proposal now before the Board. This general
question was considered by the Board seven years
ago when it promulgated that portion of Regulation
Y, authorizing bank holding companies to engage
in the operation of industrial loan companies. After
various written submissions and an administrative
hearing, the Board determined that it was permissible for a bank holding company to operate an
industrial loan company in a manner authorized
by State law so long as the institution does not
both accept demand deposits and make commercial loans. In view of that determination, it is now
inappropriate to reconsider such questions only
with respect to Applicant.
Like Association, First Federal's primary concern is the general question of bank holding company operation of industrial loan companies and
the circumvention of federal interest rate regulations. First Federal does, however, also make
certain allegations specifically in opposition to
Applicant's proposal. First Federal claims that
capitalization of Guild Loan would increase Applicant's debt, thereby diverting Applicant's resources from its own future needs. There is no
question that Applicant's proposal will result in
an increase in Applicant's debt. Nor is there any
question as to the amount of that debt. Since these
matters are not in dispute there is no need to hold
a hearing on such questions. Furthermore, the
Board takes such questions into consideration in
acting upon any application under the BHC Act,
and, in the subject case, financial considerations
are consistent with approval.
First Federal further claims that the activities
of Guild Loan are not a "proper incident" to
banking, citing the Board's denial of D.H. Baldwin Company, Cincinnati, Ohio, to retain shares
of a savings and loan association, Empire Saving,
Building and Loan Association, Denver, Colorado
(63 Fed: Res. Bull. 280 (1977)). First Federal
apparently bases this allegation on the premise that
Guild Loan would be operated as a saving and
loan association. As noted above, Applicant's
proposal is for the operation of Guild Loan as an
industrial loan company in accordance with the
provisions of section 225.4(a)(2) of Regulation Y,
an activity that the Board has previously determined to be permissible for bank holding companies.
Finally, First Federal contends that Applicant's
tandem operation of its commercial bank and
910
Federal Reserve Bulletin • November 1978
Guild Loan would provide unique advantages to
Applicant over other financial institutions, especially over the formation of other industrial loan
companies. In support of this contention, First
Federal argues that the services Guild Loan would
offer are readily available in the market. Applicant's proposal is to engage in industrial loan
activities de novo. Thus, no competition would
be eliminated as a result of consummation of that
proposal. Furthermore, Applicant's acquisition of
Guild Loan does not appear to preclude entry into
the industrial loan market by other institutions
since at least one other inactive charter is currently
available and new charters could be issued. Nor
does it appear that Applicant would achieve a
position of dominance in the area by engaging in
industrial loan activities de novo. Contrary to
having adverse competitive effects, the Board is
of the view that consummation of this proposal
will have pro-competitive effects by providing an
additional source of services to the area.
Therefore, having considered all of the comments submitted by First Federal and the Association, the Board concludes that a hearing is not
required with respect to the subject application,
nor does it otherwise appear in the public interest
for the Board to hold a hearing in this matter.
The request for a hearing on the proposal by
Association is hereby denied. Furthermore, the
Board finds that the comments in opposition to
this proposal do not merit denial of the application
as requested by First Federal or Association.
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
section 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination
is subject to the conditions set forth in section
225.4(c) of Regulation Y and to the Board's authority to require such modification or termination
of the activities of a holding company or any of
its 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 Board of Governors, effective
October 30, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Jackson, Partee, and Teeters. Absent and
not voting: Governors Gardner and Coldwell.
(Signed)
[SEAL]
Assistant
ORDERS APPROVED UNDER BANK HOLDING COMPANY
JOHN M . WALLACE,
Secretary
of the
Board.
ACT
B Y THE BOARD OF GOVERNORS
During October 1978, the Board of Governors approved the applications listed below. Copies are
available upon request to Publications Services, Division of Administrative Services, Board of Governors
of the Federal Reserve System, Washington, D. C. 20551.
Section 3
Board
action
(effective
Applicant
Barnett Banks of Florida, Inc.
Jacksonville, Florida
Citizens Bancshares, Inc.,
Somerset, Kentucky
First Security Corporation,
Salt Lake City, Utah
Bank(s)
Peoples State Bank of
New Port Richey,
New Port Richey, Florida
Citizens National Bank
of Somerset, Somerset, Kentucky
First Security State
Bank of Twelfth Street,
Ogden, Utah
date)
October 27, 1978
October 10, 1978
October 30, 1978
Law Department
911
Section 3
Applicant
Bank(s)
Florida National Banks of
Florida, Inc., Jacksonville,
Florida
National Bancshares Corporation
of Texas, San Antonio, Texas
Loomis Company, Omaha,
Nebraska
Marshall & Isley Corporation,
Milwaukee, Wisconsin
Northwest Bancorporation,
Minneapolis, Minnesota
Republic of Texas Corporation,
Dallas, Texas
Sibley Bancorporation,
Sibley, Iowa
Texas Panhandle Bancshares, Inc.,
Borger, Texas
The National Bank of
Cape Coral, Cape
Coral, Florida
Guaranty National Bank,
Houston, Texas
First State Bank,
Loomis, Nebraska
Western State Bank,
Oshkosh, Wisconsin
The First National Bank of
Marion, Marion, Iowa
City National Bank,
Fort Worth, Texas
The First National Bank of
Sibley, Sibley, Iowa
Panhandle Bank & Trust
Company, Borger, Texas
Board
action
(effective
date)
October 5, 1978
October 6, 1978
October 26, 1978
October 30, 1978
October 16, 1978
October 10, 1978
October 6, 1978
October 31, 1978
Section 4
Nonbanking
company
(or activity)
Applicant
Old Stone Corporation,
Providence, Rhode Island
Guild Loan Investment
Company
Effective
date
October 30, 1978
Sections 3 and 4
Applicant
Mountain Financial Services,
Inc., Denver
Colorado
Bank(s)
South Aurora
State Bank,
Aurora, Colorado
Nonbanking
company
(or
activity)
to sell credit life
and credit accident and
health insurance directly
related to extensions of
credit by its subsidiary
bank
Effective
date
October 13, 1978
912
Federal Reserve Bulletin • November 1978
B Y FEDERAL RESERVE BANKS
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of
the orders are available upon request to the Reserve Banks.
Section 3
Applicant
Reserve
Effective
Bank
date
Bank(s)
Allied Bancshares, Inc.,
Houston, Texas
Champions Bank,
Houston, Texas
Dallas
October 19, 1978
ORDERS APPROVED UNDER B A N K MERGER ACT
Effective
Reserve
Bank
Bank(s)
Applicant
The First State Bank of
Miami, Miami, Florida
Hialeah-Miami Springs
First State Bank,
Hialeah, Florida, et
Bank of Virginia-Richmond,
Richmond, Virginia
Bank of Virginia,
Richmond, Virginia,
date
Atlanta
October 3, 1978
Richmond
October 6, 1978
al
et al
PENDING CASES INVOLVING THE BOARD OF
GOVERNORS
Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party.
Cradel
v . The
United
States
and
the
Reserve
Bank of Philadelphia, filed July 1978,
U.S.D.C. for the Eastern District of Pennsylvania.
Citicorp
v . Board
of Governors,
filed
March
1978, U.S.C.A. for the Second Circuit.
Ellis
Banking
Corporation
v . Board
of
Gov-
July
ernors, filed May 1978, U.S.C.A. for the
Fifth Circuit.
1978, U.S.D.C. for the Northern District of
Illinois.
United States League
of Savings
Associations
v . Board
of Governors,
filed M a y 1 9 7 8 ,
Beckley
v.
Independent
First
Board
of
Bankers
National
Governors,
filed
Association
Bank
of Texas
in Dallas,
et al.,
v.
filed
July 1978, U.S.C.A. for the Northern District of Texas.
Mid-Nebraska
Bancshares,
Inc.
v . Board
of
Governors, filed July 1978, U.S.C.A. for the
District of Columbia.
NCNB
Corporation
v.
Board
of
Governors,
filed June 1978, U.S.C.A. for the Fourth
Circuit.
NCNB
Corporation
v . Board
of
Governors,
filed June 1978, U.S.C.A. for the Fourth
Circuit.
U.S.D.C. for the District of Columbia.
Hawkeye
Bancorporation
v.
Board
of
Gov-
ernors, filed April 1978, U.S.C.A. for the
Eighth Circuit.
Dakota
Bankshares,
Inc.
v.
Board
of
Gov-
ernors, filed April 1978, U.S.C.A. for the
Eighth Circuit.
Security
Bancorp
and Security
National
Bank
v. Board of Governors, filed March 1978,
U.S.C.A. for the Ninth Circuit.
Michigan
National
Corporation
v . Board
of
Governors, filed January 1978, U.S.C.A. for
the Sixth Circuit.
Law Department
Wisconsin
Bankers
Association
v . Board
of
Governors, filed January 1978, U.S.C.A. for
the District of Columbia.
Vickars-Henry
Corp.
v . Board
of
Governors,
filed December 1977, U.S.C.A. for the Ninth
Circuit.
Emch
v . The United
States
of America,
et
al.,
filed November 1977, U.S.D.C. for the
Eastern District of Wisconsin.
Corbin
v . Federal
Board
Reserve
of Governors,
Bank
of New
York,
et. al., filed October
1977, U.S.D.C. for the Southern District of
New York.
Central
Bank
v.
Board
of Governors,
filed
October 1977, U.S.C.A. for the District of
Columbia.
Investment
Company
Institute
v.
Board
of
Governors, filed September 1977, U.S.C.A.
for the District of Columbia.
BankAmerica
Corporation
v . Board
of
Gov-
ernors, filed May 1977, U.S.C.A. for the
Northern District of California.
BankAmerica
Corporation
v . Board
of
Gov-
ernors, filed May 1977, U.S.C.A. for the
Ninth Circuit.
National
v.
Automobile
Board
Dealers
of Governors,
Association,
filed
Inc.
November
913
1976, U.S.C.A. for the District of Columbia.
Central
Wisconsin
Bankshares,
Inc.
v.
Board
of Governors, filed June 1976, U.S.C.A. for
the Seventh Circuit.
Memphis
Trust
Company
v . Board
of
Gov-
ernors, 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.
Roberts
Farms,
Inc.
v.
Comptroller
of
the
Currency, et. al., filed November 1975,
U.S.D.C. for the Southern District of California.
Florida Association
of Insurance
Agents,
v . Board of Governors,
and National
ciation of Insurance
Agents,
Inc. v .
Inc.
AssoBoard
of Governors, filed August 1975, actions
consolidated in U.S.C.A. for the Fifth Circuit.
David
R. Merrill,
Market
Committee
et.
al. v . Federal
of the Federal
Open
Reserve
System, filed May 1975, U.S.D.C. for the
District of Columbia.
Bankers
Trust New
York Corporation
v.
Board
of Governors, filed May 1973, U.S.C. A. for
the Second Circuit.
914
Membership of the Board of Governors
of the Federal Reserve System, 1913-78
APPOINTIVE MEMBERS1
Name
Federal Reserve Date of initial
oath of office
district
Charles S. Hamlin
Boston
Paul M. Warburg
Frederic A. Delano
W. P. G. Harding
Adolph C. Miller
New York
Chicago
Atlanta
San Francisco
Aug.
10,
do
do
do
do
. . New Y o r k . . . . Oct. 26,
Albert Strauss
.. Nov. 10,
Henry A. Moehlenpah .. .. Chicago
..June
Edmund Piatt
8,
David C. Wills
John R. Mitchell
Milo D. Campbell
Daniel R. Crissinger
George R. James
1914
. . Sept.
.. May
.. Mar.
.. Chicago
.. Cleveland . . . . .. May
.. May
.. St. Louis
. . Cleveland
1918
1919
1920
29,
12,
14,
1,
14,
1920
1921
1923
1923
1923
Edward H. Cunningham .. Chicago
Roy A. Young
Minneapolis . . . .
Eugene Meyer
New York
Wayland W. Magee
Kansas City . . . .
Eugene R. Black
Atlanta
M. S. Szymczak
Chicago
Oct.
Sept.
May
May
June
.do
4,
16,
18,
19,
14,
1927
1930
1931
1933
1933
J. J. Thomas
Marriner S. Eccles
Kansas City ..
San Francisco
Nov.
.do
15,
1934
Joseph A. Broderick
John K. McKee
Ronald Ransom
Ralph W. Morrison
Chester C. Davis
New York
Cleveland
Atlanta
Dallas
Richmond
Ernest G. Draper
New York
Rudolph M. Evans
Richmond
James K. Vardaman, Jr. . . St. Louis
Lawrence Clayton
Boston
Thomas B. McCabe
Philadelphia
Edward L. Norton
Atlanta
Oliver S. Powell
Minneapolis
Wm. McC. Martin, Jr
New York
Feb.
3,
.do
.do
Feb. 10,
June 25,
1936
1936
Mar.
Mar.
Apr.
Feb.
Apr.
Sept.
1938
1942
1946
1947
1948
1950
30,
14,
4,
14,
15,
1,
.do
Apr.
2,
A. L. Mills, Jr
San Francisco .. Feb.
J. L. Robertson
Kansas City
For notes, see opposite page.
18,
.do
1936
1951
1952
Other dates and information relating
to membership2
Reappointed in 1916 and 1926. Served
until Feb. 3, 1936.3
Term expired Aug. 9, 1918.
Resigned July 21, 1918.
Term expired Aug. 9, 1922.
Reappointed in 1924. Reappointed in
1934 from the Richmond District.
Served until Feb. 3, 1936.3
Resigned Mar. 15, 1920.
Term expired Aug. 9, 1920.
Reappointed in 1928. Resigned Sept.
14, 1930.
Term expired Mar. 4, 1921.
Resigned May 12, 1923.
Died Mar. 22, 1923.
Resigned Sept. 15, 1927.
Reappointed in 1931. Served until Feb.
3, 1936.3
Died Nov. 28, 1930.
Resigned Aug. 31, 1930.
Resigned May 10, 1933.
Term expired Jan. 24, 1933.
Resigned Aug. 15, 1934.
Reappointed in 1936 and 1948. Resigned May 31, 1961.
Served until Feb. 10, 1936.3
Reappointed in 1936, 1940, and 1944.
Resigned July 14, 1951.
Resigned Sept. 30, 1937.
Served until Apr. 4, 1946.3
Reappointed in 1942. Died Dec. 2, 1947.
Resigned July 9, 1936.
Reappointed in 1940. Resigned Apr.
15, 1941.
Served until Sept. 1, 1950.3
Served until Aug. 13, 1954.3
Resigned Nov. 30, 1958.
Died Dec. 4, 1949.
Resigned Mar.. 31, 1951.
Resigned Jan. 31, 1952.
Resigned June 30, 1952.
Reappointed in 1956. Term expired Jan.
31, 1970.
Reappointed in 1958. Resigned Feb. 28,
1965.
Reappointed in 1964. Resigned Apr. 30,
1973.
Membership
Name
of the Board of Governors,
Federal Reserve Date of initial
district
oath of office
C. Canby Balderston
Chas. N. Shepardson
G. H. King, Jr
Philadelphia
Dallas
Atlanta . . . .
Aug. 13,
Aug. 12,
Mar. 17,
Mar. 25,
1954
1954
1955
1959
George W. Mitchell
Chicago
Aug
Aug.
31,
1961
J. Dewey Daane
Richmond ..
William W. Sherrill
Dallas
Nov. 29,
Apr. 30,
Mar.
9,
1,
May
1963
1965
1966
1967
Arthur F. Burns
New York
Jan.
1970
John E. Sheehan
St. Louis . . .
Henry C. Wallich
Boston .
Philip C. Jackson, Jr
Atlanta
Jan.
4, 1972
June
5, 1972
June 11, 1973
Mar.
8, 1974
Oct. 29, 1974
July
14, 1975
Jan.
5, 1976
Feb. 13, 1976
1, 1976
June
Mar.
8, 1978
Sept. 18, 1978
Nancy H. Teeters
CHAIRMEN 4
Charles S. Hamlin . .Aug.
W. P. G. Harding .. .Aug.
Daniel R. Crissinger .May
Roy A. Young
Oct.
Eugene Meyer
Sept.
Eugene R. Black . . . .May
MarrinerS. Eccles ..Nov.
Thomas B. McCabe .Apr.
Wm.McC. Martin, Jr.Apr.
Arthur F. Burns . . . . F e b .
G. William Miller .. .Mar.
Chicago.
10, 1914-Aug. 9,
10, 1916-Aug. 9,
1, 1923-Sept. 15,
4, 1927-Aug. 31,
16, 1930-May 10,
19, 1933-Aug. 15,
15, 1934-Jan. 31,
15, 1948-Mar. 31,
2, 1951-Jan. 31,
1,1970-Jan. 31,
8, 1978-
1916
1922
1927
1930
1933
1934
1948
1951
1970
1978
31,
1913-78
915
Other dates and information relating
to membership2
Died Oct. 21, 1954.
Served through Feb. 28, 1966.
Retired Apr. 30, 1967.
Reappointed in 1960. Resigned Sept.
18, 1963.
Reappointed in 1962. Served until Feb.
13, 1976.3
Served until Mar. 8, 1974.3
Served through May 31, 1972.
Resigned Aug. 31, 1974.
Reappointed in 1968. Resigned Nov. 15,
1971.
Term began Feb. 1, 1970. Resigned Mar.
31, 1978.
Resigned June 1, 1975.
Resigned Jan. 2, 1976.
Resigned May 15, 1976.
Resigned Nov. 17, 1978.
Died Nov. 19, 1978.
Resigned Feb. 24, 1978.
VICE CHAIRMEN 4
Frederic A. Delano . .Aug.
Paul M. Warburg .. .Aug.
Albert Strauss
Oct.
Edmund Piatt
July
J.J.Thomas
Aug.
Ronald Ransom
Aug.
C. Canby Balderston Mar.
J. L. Robertson
Mar.
George W. Mitchell .May
Stephen S. Gardner .Feb.
10,
10,
26,
23,
21,
6,
11,
1,
1,
13,
1914-Aug.
1916-Aug.
1918-Mar.
1920-Sept.
1934-Feb.
1936-Dec.
1955-Feb.
1966-Apr.
1973-Feb.
1976-Nov.
9,
9,
15,
14,
10,
2,
28,
30,
13,
19,
1916
1918
1920
1930
1936
1947
1966
1973
1976
1978
COMPTROLLERS OF THE CURRENCY
John Skelton WilliamsFeb. 2, 1914-Mar. 2,
Daniel R. Crissinger .Mar. 17, 1921-Apr. 30,
Henry M.Dawes ...May
1, 1923-Dec. 17,
Joseph W. Mcintosh Dec. 20, 1924-Nov. 20,
J. W. Pole
Nov. 21, 1928-Sept. 20,
J. F. T. O'Connor. . .May 11, 1933-Feb. 1,
1921
1923
1924
1928
1932
1936
EX-OFFICIO MEMBERS 1
SECRETARIES OF THE
W. G. McAdoo
Dec.
Carter Glass
Dec.
David F. Houston . . .Feb.
Andrew W. Mellon . .Mar.
Ogden L. Mills
Feb.
William H. Woodin .Mar.
Henry Morgenthau, Jr .Jan.
TREASURY
23, 1913-Dec. 15, 1918
16, 1918-Feb. 1, 1920
2, 1920-Mar. 3, 1921
4, 1921-Feb. 12, 1932
12, 1932-Mar. 4, 1933
4, 1933-Dec. 31, 1933
1, 1934-Feb. 1, 1936
^nder the provisions of the original Federal Reserve Act the
Federal Reserve Board was composed of seven members, including five appointive members, the Secretary of the Treasury,
who was ex-officio chairman of the Board, and the Comptroller
of the Currency. The original term of office was 10 years, and
the five original appointive members had terms of 2, 4, 6, 8,
and 10 years, respectively. In 1922 the number of appointive
members was increased to six, and in 1933 the term of office
was increased to 12 years. The Banking Act of 1935, approved
Aug. 23, 1935, changed the name of the Federal Reserve Board
to the Board of Governors of the Federal Reserve System and
provided that the Board should be composed of seven appointive
members; that the Secretary of the Treasury and the Comptroller
of the Currency should continue to serve as members until Feb.
1, 1936; that the appointive members in office on the date of
that Act should continue to serve until Feb. 1, 1936, or until
their successors were appointed and had qualified; and that
thereafter the terms of members should be 14 years and that the
designation of Chairman and Vice Chairman of the Board should
be for a term of 4 years.
2
Date after words "Resigned" and "Retired" denotes final
day of service.
Successor took office on this date.
4
Chairman and Vice Chairman were designated Governor and
Vice Governor before Aug. 23, 1935.
917
Announcements
JOINT T R E A S U R Y - F E D E R A L
RESERVE STATEMENT
The Treasury Department and the Federal Reserve
announced on November 1, 1978, measures to
strengthen the dollar and thereby to counter continuing domestic inflationary pressures.
The Federal Reserve announced the following
specific actions:
—Approval of an increase of 1 percentage point
in the discount rate at the Federal Reserve Bank
of New York from 8V2 to 9l/i per cent. The
discount rate is the rate that is charged member
banks when they borrow from their district Federal
Reserve Bank.
—Establishment of a supplementary reserve requirement, in addition to present member bank
reserve requirements, equal to 2 per cent of time
deposits in denominations of $100,000 or more.
—Increases of $7.6 billion, to $15 billion, in
the Federal Reserve's reciprocal currency (swap)
arrangements with the central banks of Germany,
Japan, and Switzerland and activation of the swap
arrangement with the Bank of Japan. Foreign
currencies available under these expanded arrangements will be used along with foreign currencies available to the Treasury in a program of
forceful exchange market intervention in coordination with foreign central banks to correct recent
excessive exchange-rate movements.
The supplementary reserve requirement will
apply to all outstanding large-denomination time
deposits beginning November 2, with reserves
maintained 2 weeks later. Existing reserve requirements on such deposits range from 1 per cent
for longer-term deposits to 6 per cent on deposits
maturing in less than 6 months. The supplementary
requirement of 2 per cent will apply to all largedenomination time deposits regardless of maturity
and will increase required reserves by about $3
billion.
The reserve requirement action will help to
moderate the recent relatively rapid expansion in
bank credit. It will also increase the incentive for
member banks to borrow funds from abroad and
thereby to strengthen the dollar by improving the
demand in Euro-markets for dollar-denominated
assets.
A swap arrangement is a renewable, short-term
facility under which a central bank agrees to exchange its own currency for the currency of the
other party up to a specified amount. In all reciprocal currency arrangements the Federal Reserve
Bank of New York acts on behalf of the Federal
Reserve System under the direction of the Federal
Open Market Committee. The Federal Reserve's
reciprocal currency arrangements with the central
banks of Germany, Japan, and Switzerland are
now as follows:
German Federal Bank
Bank of Japan
Swiss National Bank
The joint T r e a s u r y - F e d e r a l
nouncement is as follows:
$6 billion
$5 billion
$4 billion
Reserve
an-
JOINT STATEMENT OF SECRETARY
OF THE TREASURY, W . MICHAEL
BLUMENTHAL, AND FEDERAL RESERVE
BOARD CHAIRMAN,
G . WILLIAM MILLER
Recent movement in the dollar exchange
rate has exceeded any decline related to
fundamental factors, is hampering progress
toward price stability, and is damaging the
climate for investment and growth. The time
has come to call a halt to this development.
The Treasury and Federal Reserve are today
announcing comprehensive corrective actions.
In addition to domestic measures being
taken by the Federal Reserve, the United
States will, in cooperation with the governments and central banks of Germany and
Japan and the Swiss National Bank, intervene in a forceful and coordinated manner
in the amounts required to correct the situation. The United States has arranged facilities totaling $30 billion in the currencies of
these three countries for its participation in
the coordinated market intervention activities. In addition, the Treasury will increase
its gold sales to at least IV2 million ounces
monthly beginning in December.
The currency mobilization measures in-
918
Federal Reserve Bulletin • November 1978
elude drawings on the U.S. reserve tranche
in the International Monetary Fund for part
of which we contemplate that the General
Arrangements to Borrow will be activated;
sales of special drawing rights; increases in
central bank swap facilities; and issuance of
foreign currency-denominated securities by
the U.S. Treasury.
Fundamental economic conditions and
growth trends in the four nations are moving
toward a better international balance. This
will provide an improved framework for a
restoration of more stable exchange markets
and a correction of recent excessive exchange-rate movements.
Subsequently, the Board approved actions by
the directors of the Federal Reserve Banks of
Boston, Philadelphia, Cleveland, Richmond, Chicago, St. Louis, Minneapolis, Kansas City,
Dallas, and San Francisco, increasing the discount
rate of those banks from 8V2 to 9V2 per cent,
effective November 2, and of the Federal Reserve
Bank of Atlanta, effective November 3, 1978.
REGULATION E: Cancellation
The Board of Governors announced on November
9, 1978, that it is canceling one of its regulations
as its first action under a program to clarify and
simplify all of its regulations.
The Board decided to cancel Regulation E
(Purchase of Warrants), which governed the purchase by Federal Reserve Banks of short-term
State or local securities issued in anticipation of
tax or other assured receipts.
Regulation E has been on the Federal Reserve's
books since 1915. It has not been used since 1933,
when the Federal Reserve Act was amended to
give the System alternative means of purchasing
such securities, called warrants, in the open market.
At the same time the Board decided against
taking any action at present to amend Regulation
C, which implements the Home Mortgage Disclosure Act. The Act will expire in June 1980 unless
extended by the Congress. Pending the decision
of the Congress on the act, and to assist the
Congress in making its decision, the Board, along
with other Federal agencies, is conducting studies
of the costs and benefits resulting from the required
disclosures about amounts of local mortgage lending.
For the review of all of its 26 regulations, the
Board has issued guidelines calling for a new look
at regulations and related rules to determine
whether a regulation—in whole or in part—is
required by law and the costs and benefits of each,
whether underlying statutes need revision, and
whether there are more desirable nonregulatory
alternatives to resolving issues addressed by the
regulations. In addition to canceling obsolete regulations, changes may involve simplification of
language, elimination of parts of regulations found
not to be required by law, and redrafting to improve the format, all in light of the relation of
regulations to current policy goals and benefits to
the public. The Board may also make recommendations to the Congress for statutory changes
needed to permit modernization of regulations.
PHILIP C. JACKSON, JR.:
Resignation as a Member
of the Board of Governors
The resignation of Philip C. Jackson, Jr., as a
member of the Board of Governors of the Federal
Reserve System was announced on October 18,
1978. In a letter to the President, Governor Jackson cited personal reasons for his decision, which
was effective November 17.
Governor Jackson of Birmingham, Alabama,
was sworn into office as a member of the Board
on July 14, 1975, for the term that expires on
January 31, 1982.
While a member of the Board for more than
3 years, Governor Jackson had special oversight
responsibilities for the Board's consumer affairs
operations, including the drafting of regulations
under the Equal Credit Opportunity Act and the
Home Mortgage Disclosure Act. He also had special responsibilities in the areas of bank supervision and regulation, research and statistics, and
Federal Reserve Bank activities. He initiated this
year a project to simplify and clarify all Board
regulations and assumed responsibility for implementing this program.
A copy of Governor Jackson's letter of resignation follows:
October 18, 1978
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
For personal reasons, I hereby resign as
a member of the Board of Governors of the
Federal Reserve System effective November
17, 1978.
Announcements
It has been a privilege to serve our country
with a most distinguished and capable group
of colleagues.
Yours very truly,
Philip C. Jackson, Jr.
The President sent the following letter of acceptance:
THE WHITE HOUSE
WASHINGTON
November 20, 1978
To Philip Jackson
I have your letter and I accept your resignation as a Member of the Board of Governors
of the Federal Reserve System, effective November 17, 1978.
Throughout your public service, you have
carried out your responsibilities with dedication, energy, and purpose and have truly
earned the respect of your colleagues in Government. I know that in the years ahead you
will be able to look back with pride on your
many accomplishments.
You may be sure that you take with you my
best wishes for every future success and happiness.
919
In addition to serving as a director of several
national corporations, Mr. Gardner was active in
Philadelphia civic affairs. He served as chairman
of the Greater Philadelphia Movement and the
Mayor's Advisory Committee and was a trustee
of the United Fund. He was also metro-chairman
of the National Alliance of Businessmen. His other
service included that as trustee of the Children's
Hospital of Philadelphia and a director of the
Philadelphia Orchestra Association and the Philadelphia College of Art. He was a member of the
Old Philadelphia Development Corporation and
Chairman of the Penns Landing Project during its
planning.
Mr. Gardner attended Harvard University and
received an M.B.A. from the Harvard Graduate
School of Business Administration.
He is survived by his wife, Connie, of the home
in Washington; daughters, Susan Reitlinger of
Zurich, Switzerland, and Hilary Keaton, of
Washington; and sons, Seth T. and Pierce S., of
Washington, and S. Symmes of Philadelphia; his
mother, Mildred Edmands Gardner, of Wakefield,
Mass.; and two sisters and eight grandchildren.
A memorial service was held at St. Alban's
Church, Washington, D.C. on November 21,
1978.
Sincerely,
Jimmy Carter
STEPHEN S. GARDNER:
Vice Chairman of the Board of Governors
Stephen S. Gardner, 56, Vice Chairman of the
Board of Governors and former Deputy Secretary
of the Treasury, died November 19 at his home
in Washington, D.C. Mr. Gardner had been ill
for several months prior to his death.
Mr. Gardner received a Presidential appointment to the Federal Reserve Board in 1976 following service of lVi years at the Treasury post.
His Government service was preceded by 25 years'
association with the Girard Bank, Philadelphia.
His service with Girard Bank began as a credit
analyst and included positions as the bank's chief
lending and operations officer. He served as officer
in charge of the bank's branch office and was
appointed vice president in 1958. In 1963 he was
designated senior vice president, and in 1965 was
named executive vice president and director. He
became president of Girard in 1966 and Chairman
of the bank's board in 1971.
REGULATION Z: Exemption
The Board of Governors has announced that it has
approved an application by the State of Massachusetts for an exemption from the Federal Truth
in Lending Act and its implementing Regulation
Z (Truth in Lending) covering credit transactions
that involve Federally chartered credit unions in
Massachusetts, effective November 20, 1978.
Massachusetts applied for such an exemption
based on an agreement between the Massachusetts
Commissioner of Banks and the National Credit
Union Administration that authorized the Commissioner to examine Federal credit unions in the
State for compliance with Massachusetts' Truth in
Lending Law.
The Truth in Lending Act authorizes the Board
to grant exemptions to States with substantially
similar laws and adequate provisions for enforcement. Massachusetts is one of five States that have
been granted an exemption covering State-chartered lenders. The present exemption is the first
to be extended to Federally chartered lenders.
920
Federal Reserve Bulletin • November 1978
REGULATION Y: Revised Rules
The Board of Governors has announced approval
of several technical changes affecting registration
of bank holding companies or applications for their
expansion.
The Board revised its rules of procedures for
handling requests for reconsideration of Board
decisions and for the handling of requests for
hearings and comments on applications.
At the same time, the Board eliminated the
requirement for new bank holding companies to
register with the Board within 180 days by use
of certain forms (F.R. Y-5 and Y-5 (a)). The
Board will collect essential data for registration
purposes by means of six questions about the
company's financial structure and organization that
will be asked in a letter sent to all bank holding
companies whose formation the Board has newly
approved. Bank holding companies must receive
Board approval of their organizational structure
before beginning operations. The registration
process will be completed in the annual report that
must be filed with the Board by all bank holding
companies (form F.R. Y-6).
PROPOSED BOARD ACTION
The Federal Reserve Board has proposed to make
several changes in its Regulation B (Equal Credit
Opportunity) that would (1) bring within the scope
of the regulation persons such as real estate brokers
who select the creditor(s) to which a credit application will be submitted; (2) eliminate the exemption of business credit from the recordkeeping and
notification requirements in certain transactions
under $100,000; and (3) eliminate the exemption
of business credit from the bar against marital
status information.
The Board requested comment by December 26,
1978.
UNIFORM EXAMINATION
PROCEDURE
The three Federal bank regulatory agencies have
announced adoption of a uniform examination
procedure for evaluating and commenting on
"country risk" factors involved in international
lending by U.S. banks.
Under the new system, examiners for the three
agencies 1 will segregate country risk factors from
the evaluation of other lending risks and deal with
this special category of lending risks in a separate
section of their examination reports. The commercial credit risks in the banks' international portfolios will continue to be assessed on an individual
loan basis and according to traditional standards
of credit analysis.
The new procedures will emphasize diversification of exposure to individual countries as the
primary method of moderating country risk in
international portfolios. Country risk in bank lending refers to the possibility that economic, political, or social factors within a country might create
a situation in which borrowers in that country
would be unable to service or to repay their debts
to foreign lenders in a timely manner. This concept
of country risk embraces virtually all external
credits to a country whether they are to public or
private parties.
Diversification is a longstanding, practical, and
prudential principle of sound lending. It is particularly relevant to international lending because the
assessment of country risk involves great uncertainties and is subject to a considerable margin
of error. The agencies believe proper diversification of loan portfolios provides the best protection
for a U.S. bank and the banking system against
a dramatic turn in the economic or political fortunes of a country or group of countries.
Determinations of the adequacy of diversification within a bank's portfolio will be based primarily on comparisons of individual country risk
exposures to a bank's capital funds. Where concentrations are found, examiners will separate a
bank's loans in a country by type of credit, type
of borrower, and loan maturities. The degree of
risk involved will be assessed in the light of these
components as well as of internal and external
factors affecting the debt-service capacity of public
and private borrowers within the country.
The special section of the examination report
dealing with country exposure will consist of four
parts:
1. A list of concentrations of a bank's loans
subject to country risk exposure;
2. Comments on such concentrations;
1
Comptroller of the Currency (supervisor of national
banks); Board of Governors (supervisor of State-chartered
member banks); and the Federal Deposit Insurance Corporation
(supervisor of insured State-chartered banks that are not members of the Federal Reserve System).
Announcements
3. Classification of credits as substandard,
doubtful, or loss;
4. An analysis of a bank's ability to monitor
and control its country risk exposure.
With the primary objective of encouraging appropriate diversification in the international lending portfolios of U.S. banks, the country exposure
examination will attempt to point out special risk
situations and, when necessary, to secure corrective action. Examiners will list all exposures to
country risk that seem large in relation to the
lending bank's capital funds.
In addition, examiners will make special comments on concentrations of loans in countries with
high debt-service requirements or other actual or
potential balance of payments weaknesses. Normally, these comments will refer to relatively large
exposures in such countries and give particular
emphasis to situations that include a high proportion of longer-term loans. Lending in any country
able to meet its current obligations will not be
subject to special comment unless the lending is
considered excessive relative to a bank's capital
funds.
Examiners will classify a bank's aggregate
credits to a country under the categories of substandard, doubtful, or loss due to country risk only
when there has been an interruption in debt servicing or when such an interruption is considered
imminent.
Senior bank management will be expected to
monitor closely all situations listed or commented
on by examiners.
Another key element of the new procedures will
be an assessment of a bank management's ability
to analyze and monitor country risk in its international lending. Examiners will include in their
country risk reports an evaluation of a bank's
procedures for monitoring and controlling exposure to country risk, the bank's system for establishing limits to lending in a country, and the
bank's methods for analyzing country risk.
The examination system for assessing country
risk concentrations will be administered by a
nine-member committee made up chiefly of experienced examiners from the three Federal bank
regulatory agencies, to be known as the Interagency Country Exposure Review Committee. Its
primary functions will be to:
1. Review and make judgments about economic
conditions in countries where loans are made by
U.S. banks;
2. Determine the levels of a bank's capital
921
funds at which concentrations should be commented on;
3. Determine when credits should be classified
as substandard, doubtful, or loss due to an interruption in payment or when an interruption is
imminent; and
4. Prepare commentaries on developments in
foreign countries for use by examiners.
The committee will draw on country studies
especially prepared for its use within the Federal
Reserve System, as well as on supplementary
analyses by staffs of each of the three agencies
and information from other available sources.
SURVEY OF TRUST ASSETS
The Federal bank regulatory agencies have announced a revised survey of trust assets at regulated institutions to be conducted annually.
The new survey will be used to collect data on
trust assets for the year 1978. Similar survey forms
and instructions will be used by the Federal Deposit Insurance Corporation (supervisor of insured
State nonmember banks), the Comptroller of the
Currency (supervisor of national banks), and the
Board of Governors (supervisor of State member
banks and member trust companies).
In announcing the revised requirements for reporting on trust assets, the agencies said their
objective was to 4 'provide more meaningful information regarding the extent of investment authority and control over trust and agency assets administered by banks and trust companies."
To this end reporting will be limited to those
assets over which trust departments and companies
exercise "investment discretion." A trust institution is deemed to exercise investment discretion
over an account if the institution is authorized to
buy and sell securities for the account or makes
recommendations for purchases or sales even
though the final decisions are made elsewhere.
A number of technical changes in the asset
categories on the survey form have also been
made.
In a further change, State member trust companies will be included, as well as trust departments
of member banks, in reporting to the Federal
Reserve. For this reason, the title of the Federal
Reserve's survey form has been changed from
"Trust Department Annual Report" (FR 437) to
"Annual Report of Trust Assets" (FR 2437).
922
Federal Reserve Bulletin • November 1978
The Trust Department Annual Report of the
Comptroller of the Currency also includes a new
Special Report. This Special Report collects data
pertaining to variable-amount notes and financial
data for National Bank Surveillance System
(NBSS) purposes. The data will augment the
computerized data base used to monitor national
banks' performance. Only trust departments administering fiduciary assets in an amount greater
than $10 million as reflected in the Trust Department Annual Report will be required to complete
the NBSS data.
The three agencies have been conducting annual
surveys of trust assets since 1968.
The new survey forms and instructions are being
mailed to all banks supervised by the agencies and
are available on request.
UNIFORM RATING
SYSTEM
The Federal bank and thrift institution regulators
have announced a joint system for rating data
processing centers.
The system, which was effective on October 18,
1978, was adopted by the Office of the Comptroller
of the Currency (supervisor of national banks), the
Board of Governors (supervisor of State-chartered
member banks), the Federal Deposit Insurance
Corporation (supervisor of State-chartered nonmember banks and of insured mutual savings
banks), and the Federal Home Loan Bank Board
(supervisor of Federally chartered savings and loan
associations).
Under the new rating system the four agencies
will apply uniform standards to data centers that
are operated by banks or thrift institutions supervised by one of the four agencies, and to other
data processing centers that serve such banks or
thrift institutions.
The uniform data processing center rating system follows adoption by the Federal regulators
earlier this year of a joint policy for the examination of data processing centers operated by or
serving financial institutions they supervise.
Under the joint rating system:
• A performance rating system is established
based upon the evaluation of four critical functions: audit, management, systems development
and programming, and computer operations.
• Ratings of these functions are combined into
a composite rating.
PROPOSED REGULATORY
ACTION
The Federal bank regulators on November 1,
1978, proposed regulatory revisions establishing
uniform standards for bank recordkeeping, confirmation, and other procedures in making securities
transactions for trust department and other bank
customers.
The agencies (Comptroller of the Currency,
Federal Reserve Board, and Federal Deposit Insurance Corporation) requested comment by December 18, 1978.
NEW BOARD
PUBLICATION
The Bank Holding Company Movement to 1978:
A Compendium is now available for distribution.
This study by the Board's staff reviews the
available published research on those aspects of
bank holding company activity that are relevant
to public policy. It covers the following topics:
background history of the movement and Federal
regulation; internal operations, including efficiency
and performance reviews; implications of growth
for safety and soundness; effects on competition
and on concentration of banking and financial
resources; and public benefits from the expansion
of bank holding companies and implications for
community convenience and needs.
Copies of the Compendium are available from
Publications Services, Division of Administrative
Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. The price
is $2.50 per copy; in quantities of 10 or more
sent to one address, $2.25 per copy.
NEW CONSUMER
PAMPHLET
"How to File a Consumer Credit Complaint," the
latest in a series of consumer education pamphlets,
is now available for distribution.
The pamphlet explains what to do in the event
of a consumer problem with a bank, such as a
possible violation of any of the Federal consumer
credit laws or any alleged unfair or deceptive
practice. A complaint form addressed to the Federal Reserve is attached to the pamphlet.
Copies of "How to File a Consumer Credit
Complaint" may be obtained singly or in bulk free
of charge from the Board of Governors in Washington or from any of the 12 Federal Reserve
Banks.
Announcements
C H A N G E S IN B O A R D STAFF
The Board of Governors has announced the following official staff appointments in the Division
of Federal Reserve Bank Examinations and Budgets, effective October 13, 1978.
Charles W. Bennett as Assistant Director. Mr.
Bennett joined the Board's staff in 1966 after
receiving a B.S. degree from Northwestern University. He has done graduate work in business
administration at American University and graduated from the Stonier School of Banking at Rutgers
University.
Raymond L. Teed as Assistant Director. Mr.
Teed came to the Board in 1971. He received a
B.S. degree in mathematics from Union College
in Schenectady, New York, and has done graduate
work in business administration at the State University of New York.
The Board has also announced an expansion of
the responsibilities of the Office of the Staff
Director for Monetary Policy. To achieve closer
integration of domestic monetary policy analysis
and analysis of international policy issues, Stephen
H. Axilrod has been designated Staff Director for
Monetary and Financial Policy. In addition to his
923
responsibilities in the area of domestic monetary
policy, Mr. Axilrod will assume responsibility for
coordination in the international policy area.
SYSTEM MEMBERSHIP:
A d m i s s i o n of State B a n k s
The following banks were admitted to membership
in the Federal Reserve System during the period
October 16, 1978, through November 15, 1978:
Alabama
Fultondale
Illinois
Glenview
Utah
Salt Lake County .
Virginia
Amelia Courthouse
Bland
Surry
Citibanc of
Alabama/Fultondale
Charter State Bank
of Glenbrook
...Cottonwood Security
Bank
Bank of Amelia
Bank of Bland County
Bank of
Surry County, Inc.
925
Industrial Production
Released for publication November 15
Industrial production increased an estimated 0.5 per
cent in October, the same as in September. Gains
in August and July have been revised up slightly to
0.6 per cent and 0.8 per cent, respectively. Output
increases in October occurred among most products
and materials; sharp increases in both auto assemblies
and coal production included recovery from the reduced levels of September resulting from a rail strike.
At 148.4 per cent of the 1967 average, industrial
production in October was 6.8 per cent higher than
a year earlier. Revised data show that industrial
production in the third quarter rose at an annual rate
of 8.3 per cent from the second quarter.
Output of consumer goods increased 0.9 per cent,
reflecting a sharp rise in automotive products and
further small increases in other durable and nondurable consumer goods. Auto assemblies increased to
an annual rate of 9.5 million units in October from
8.9 million in September. Revised data for the previous 3 months indicate larger gains in the production
of nondurable consumer goods—such as clothing and
food—than had been shown earlier. Output of business equipment increased by 0.4 per cent in October,
the same as in September, and was 9.3 per cent
higher than a year earlier.
Output of durable goods materials rose 0.4 per cent
further in October, following 4 months of large
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Intermediate products
Construction supplies
Materials
"Preliminary.
F.R. indexes, seasonally adjusted. Latest figures: October. Auto sales
and stocks include imports.
1967 -= 100
Percentage change from preceding month to—
1978
1978
Industrial production
Total
increases. Production of nondurable goods materials—such as textiles, paper, and chemicals—was
about unchanged. Output of energy materials rose
sharply, as coal production increased almost 27 per
cent in October.
Percentage
change
10/77
to
10/78
Sept.*
Oct.e
May
June
July
Aug
Sept.
Oct.
147.7
148.4
.5
.7
.8
.6
.5
.5
6.8
146.4
143.7
148.8
160.3
144.3
166.1
156.5
155.3
149.6
147.3
144.8
150.2
163.7
144.7
166.8
156.8
155.4
150.2
.1
.0
-.3
-1.0
-.1
.6
.3
1.3
1.0
.6
.4
.0
.2
-.1
1.0
1.4
1.1
.9
.7
.8
.5
.2
.6
1.2
.6
.9
1.0
.7
.7
.5
.1
.6
1.0
.2
.5
.5
.3
.3
.3
-.5
.8
.4
.4
.7
.6
.6
.8
.9
2.1
.3
.4
.2
.1
.4
6.0
6.1
3.7
4.4
3.3
9.3
6.1
7.2
8.1
e
Estimated.
NOTE.—Indexes are seasonally adjusted.
Al
Financial and Business Statistics
CONTENTS
DOMESTIC FINANCIAL STATISTICS
W E E K L Y REPORTING COMMERCIAL B A N K S
A3
A4
A5
Assets and Liabilities of—
A20
All reporting banks
A21
Banks in New York City
A22
Banks outside New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A6
Monetary aggregates and interest rates
Factors affecting member bank reserves
Reserves and borrowings of member
banks
Federal funds transactions of money
market banks
POLICY INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Member bank reserve requirements
A10 Maximum interest rates payable on
time and savings deposits at Federally
insured institutions
A10 Margin requirements
A l l Federal Reserve open market
transactions
FEDERAL RESERVE B A N K S
A25 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL MARKETS
A25 Commercial paper and bankers
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Terms of lending at commercial banks
A27 Interest rates in money and capital
markets
A28 Stock market—Selected statistics
A12 Condition and F.R. note statements
A13 Maturity distribution of loan and
security holdings
A29 Savings institutions—Selected assets
and liabilities
MONETARY A N D CREDIT AGGREGATES
FEDERAL FINANCE
A13 Bank debits and deposit turnover
A14 Money stock measures and components
A15 Aggregate reserves and deposits of
member banks
A15 Loans and investments of all
commercial banks
A30 Federal fiscal and financing operations
A31 U.S. Budget receipts and outlays
A32 Federal debt subject to statutory
limitation
A32 Gross public debt of U.S. Treasury—
Types and ownership
A33 U.S. Government marketable
securities—Ownership, by maturity
A34 U.S. Government securities dealers—
Transactions, positions, and financing
A3 5 Federal and Federally sponsored credit
agencies—Debt outstanding
COMMERCIAL B A N K ASSETS A N D LIABILITIES
A16 Last-Wednesday-of-month series
A17 Call-date series
A18 Detailed balance sheet, Mar. 31, 1978
2
Federal Reserve Bulletin • November 1978
SECURITIES MARKETS A N D
CORPORATE FINANCE
A36 New security issues—State and local
governments and corporations
A3 7 Open-end investment companies—Net
sales and asset position
A37 Corporate profits and their distribution
A3 8 Nonfinancial corporations—Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A3 9 Domestic finance companies—Assets
and liabilities; business credit
R E A L ESTATE
A40 Mortgage markets
A41 Mortgage debt outstanding
INTERNATIONAL STATISTICS
A54 U.S. international transactions—
Summary
A55 U.S. foreign trade
A55 U.S. reserve assets
A56 Foreign branches of U.S. banks—
Balance sheet data
A58 Selected U.S. liabilities to foreign
official institutions
REPORTED BY B A N K S IN THE U N I T E D STATES:
A59 Liabilities to foreigners
A61 Banks' own claims on foreigners
A62 Banks' own and domestic customers'
claims on foreigners
A63 Banks' own claims on unaffiliated
foreigners
A63 Liabilities to and claims on foreigners
CONSUMER INSTALMENT CREDIT
SECURITIES HOLDINGS A N D TRANSACTIONS
A42 Total outstanding and net change
A43 Extensions and liquidations
FLOW OF F U N D S
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to
credit markets
A64 Marketable U.S. Treasury bonds and
notes—Foreign holdings and
transactions
A64 Foreign official assets held at F.R.
banks
A65 Foreign transactions in securities
REPORTED BY N O N B A N K I N G CONCERNS IN
DOMESTIC NONFINANCIAL STATISTICS
THE U N I T E D STATES:
A46 Nonfinancial business activity—
Selected measures
A46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production—Indexes and
gross value
A50 Housing and construction
A51 Consumer and wholesale prices
A52 Gross national product and income
A53 Personal income and saving
A66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners
INTEREST A N D EXCHANGE RATES
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A69 GUIDE TO TABULAR PRESENTATION
AND STATISTICAL RELEASES
Domestic Financial Statistics
A3
1.10 MONETARY AGGREGATES AND INTEREST RATES
1977
1978
1978
Item
Q4
QL
Q2
Q3
May
June
July
Aug.
Sept.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in per cent) 12
1
4
5
6
7
8
9
Member bank reserves
Total
Concepts of money
6.1
6.3
3.4
8.5
'8.3
14.5
6.3
'6.9
0.3
8.3
8.3
6.2
10.0
7.8
-11.4
15.0
16.4
19.4
14.9
14.3
8.0
-9.0
-8.1
-3.5
8.1
7.4
11.0
7.5
8.1
10.6
6.2
6.9
7.7
9.9
7.9
7.8
7.6
8.9
10.0
7.2
7.1
7.2
7.5
7.8
8.4
4.8
8.0
9.3
8.5
10.4
11.8
14.1
12.5
13.9
13.0
8.5
14.4
12.8
7.3
8.9
10.1
6.4
7.6
9.5
10.0
11.6
13.6
6.7
7.2
6.1
8.2
9.2
10.2
10.3
11.2
7.5
11.5
13.9
13.8
11.8
16.0
9.9
9.6
13.0
11.0
15.6
6.0
16.7
5.2
9.9
1
M-L
M-2
M-3
Time and savings deposits
Commercial banks:
Total
Other than large CD's
Thrift institutions 2
10 Total loans and investments at commercial banks 3
1977
Q4
1978
QL
Q2
1978
Q3
June
July
Aug.
Sept.
Oct.
Interest rates (levels, per cent per annum)
11
12
13
14
Short-term rates 4
Federal funds
Federal Reserve discount 5
Treasury bills (3-month market yield)6
Commercial paper (90- to 119-day)6.7
6.51
5.93
6.11
6.56
6.76
6.46
6.39
6.76
7.28
6.78
6.48
7.16
8.09
7.50
7.31
8.03
7.60
7.00
6.73
7.59
7.81
7.23
7.01
7.85
8.04
7.43
7.08
7.83
8.45
7.83
7.85
8.39
8.96
8.26
7.99
8.98
15
16
17
Long-term rates
Bonds:
U.S. Government8
State and local government
9
Aaa utility (new issue) 1 o
7.78
5.57
8.27
8.19
5.65
8.70
8.43
6.02
8.98
8.53
6.16
8.94
8.53
6.22
9.09
8.69
6.28
9.14
8.45
6.12
8.82
8.47
6.09
8.86
8.69
6.13
9.17
9.05
9.23
9.58
9.80
9.75
9.80
9.80
9.80
9.95
18
Conventional mortgages
11
1 M-l equals currency plus private demand deposits adjusted.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CD's).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan
associations, and credit union shares.
2
Savings and loan associations, mutual savings banks, and credit
unions.
3 Quarterly changes calculated from figures shown in Table 1.23.
4
Seven-day averages of daily effective rates (average of the rates on
a given date weighted by the volume of transactions at those rates).
56 Rate for the Federal Reserve Bank of New York.
Quoted on a bank-discount basis.
7
Beginning Nov. 1977, unweighted average of offering rates quoted by
five dealers. Previously, most representative rate quoted by these dealers.
8 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
9 Bond Buyer series for 20 issues of mixed quality.
I o Weighted averages of new publicly offered bonds rated Aaa, Aa,
and A by Moody's Investors Service and adjusted to an Aaa basis.
Federal
Reserve compilations.
II
Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis
points, from Dept. of Housing and Urban Development.
12
Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
A4
DomesticNonfinancialStatistics • November 1978
1.11 FACTORS AFFECTING MEMBER BANK RESERVES
Millions of dollars
Monthly averages of daily
figures
Weekly averages of daily figures for weeks ending-
1978
1978
Factors
Aug.
Sept.
Oct.P
Sept. 13
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18 p Oct. 25p
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding...
125,955
127,811
133,356
123,902
126,849
132,392
132,783
131,739
134,320
134,149
U.S. Government securities1
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement
109,243
108,380
110,604
109,862
115,008
113,977
106,744
106,614
109,832
109,832
113,750
112,330
115,043
112,987
114,300
113,511
114,207
113,848
115,865
114,737
863
8,220
8,016
742
8,323
7,958
1,031
8,353
7,940
130
7,969
7,963
7,950
7,950
1,420
8,920
7,950
2,056
8,689
7,946
789
8,219
7,941
359
8,354
7,941
8,388
7,938
204
365
413
970
743
278
413
450
145
1,147
4,826
2,374
257
1,068
5,220
2,339
249
1,262
5,824
2,660
3
510
6,382
2,294
923
5,758
2,385
570
1,560
5,293
2.299
603
1,286
4,722
2,440
161
1,239
5,309
2,512
170
1,249
7.670
2.671
282
1,314
5,594
2,707
11,683
11,670
11,660
11,668
11,668
11,668,
11,668
11,668
11,656
11,655
1,279
11,644
1,300
11,681
1,300
11,725
1,300
11,674
1,300
11,683
1.300
11,692
1,300
11,691
1,300
11,703
1,300
11,729
1,300
11,738
107,241
315
108,021
302
108,872
303
108,512
306
108,127
315
107,663
300
107,954
301
108,901
307
109,259
317
108,912
296
10,065
281
609
11,080
279
692
14,948
300
590
7,803
278
673
9,497
299
724
15,429
271
579
15,138
294
640
14,507
347
559
15,131
283
585
15,377
275
619
3,971
4,077
4,244
3,783
4,046
4,285
4,224
3,898
4,208
4,416
28,079
28,010
27,189
28,492
28,525
28,890
27,890
29,223
28,948
2
3
4
5
6
7
8
9
10
11
Acceptances
Loans
Float
Other Federal Reserve assets
12 Gold stock
13 Special Drawing Rights certificate
account
14 Treasury currency outstanding
1,128
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than member bank
reserves with F.R. Banks:
17
Treasury
18
Foreign
19
Other2
20
21
Other F.R. liabilities and capital...
Member bank reserves with F.R.
Banks
28,784
End-of-month figures
Wednesday figures
1978
1978
Aug.
Sept.
Oct p
Sept. 13
Spet. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18^
Oct. 25p
SUPPLYING RESERVE FUNDS
128,374
132,114
126,356
128,955
135,483
130,818
138,120
132,396
136,795
U.S. Government securities1
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement
111,739
109,858
115,279
113,027
115,322
114,659
108,975
108,067
109,824
109,824
116,363
113,259
112,460
112,278
116,838
113,660
112,522
112,522
117,535
114,489
1,881
8,097
7,978
2,252
8,597
7,950
663
8,065
7,938
908
7,996
7,950
7,950
7,950
3,104
9,138
7,950
182
8,020
7,941
3,178
9,169
7,941
7,941
7,941
3,046
9,123
7,938
119
647
127
46
1,188
79
1,228
Acceptances
Loans
Float
Other Federal Reserve assets.. .
296
954
5,225
2,063
715
1,365
3,719
2,439
236
1,206
4,377
2,756
23
566
6,380
2,416
2,032
6,788
2,361
753
1,158
5,742
2,330
216
1,505
6,051
2,566
611
676
8,266
2,560
1,660
7,637
2,636
724
1,796
4,879
2,738
Gold stock
Special Drawing Rights certificate
account
35 Treasury currency outstanding....
11,679
11,668
11,655
11,668
11,668
11,668
11,668
11,667
11,655
11,655
1,300
11,641
1,300
11,683
1,300
11,755
1,300
11,683
1,300
11,683
1,300
11,695
1,300
11,700
1,300
11,708
1,300
11,735
1,300
11,749
107,588
299
107,663
299
109,317
291
108,684
306
108,150
297
107,985
297
108,566
304
109,568
308
109,271
398
109,063
294
12,068
309
691
16,647
325
628
15,467
305
531
7,880
285
592
12,997
337
660
13,543
253
559
12,162
272
545
15,084
300
533
15,348
252
554
11,748
257
624
22
23
24
25
26
27
28
29
30
31
32
Reserve Bank credit outstanding
33
34
1,185
ABSORBING RESERVE FUNDS
36 Currency in circulation
37 Treasury cash holdings
Deposits, other than member bank
reserves with F.R. Banks:
38
Treasury
39
Foreign
40
Other 2
41
42
Other F.R. liabilities and capital..
Member bank reserves with F.R.
Banks
4,329
4,372
4,560
3,819
4,671
4,312
3,904
4,109
4,253
4,653
27,705
26,830
26,200
29,441
26,494
33,197
29,733
32,893
27,010
34,860
1 Includes securities loaned—fully guaranteed by U.S. Govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and scheduled
to be bought back under matched sale-purchase transactions.
2
Includes certain deposits of foreign-owned banking institutions
voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
NOTE.—For amounts of currency and coin held as reserves, see Table
1.12.
Member Banks
1.12
RESERVES A N D BORROWINGS
A5
Member Banks
Millions of dollars
Monthly averages of daily figures
1978
Reserve classification
All member banks
Reserves:
At F.R. Banks
Currency and coin
Total heldi
Required
Excess1
Borrowings at F.R. Banks: 2
6
Total
7
Seasonal
1
2
3
4
5
Dec.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
27,057
9,351
36,471
36,297
174
27,337
9,320
36,738
36,605
133
27,155
8,992
36,231
35,925
306
27,776
9,028
36,880
36,816
64
27,890
9,151
37,119
36,867
252
27,840
9,345
37,262
37,125
137
28,570
9,542
38,189
38,049
140
28,079
9,512
37,666
37,404
262
28,010
9,605
37,689
37,614
75
558
54
405
52
344
47
539
43
1,227
93
1,111
120
1,286
143
1,147
188
1,068
191
6,244
6,279
-35
48
6,563
6,584
6,276
6,193
83
21
6,247
6,320
-73
61
6,315
6,236
79
113
6,341
6,376
-35
54
6,606
6,581
25
129
6,334
6,290
44
58
6,182
6,251
-69
78
1,593
1,613
1,623
1,633
1,629
1,620
9
11
1,670
1,686
1,668
1,670
1,708
1,707
11
1,697
1,669
28
19
20
20
1,648
1,646
2
3
1,655
1,650
5
35
14,564
14,541
23
363
15,288
15,172
116
592
8
9
10
11
Large banks in New York City
Reserves held
Required
Excess
Borrowings2
12
13
14
15
Large banks in Chicago
Reserves held
Required
Excess
Borrowings2
16
17
18
19
Other large banks
Reserves held
Required
Excess
Borrowings2
13,993
13,931
62
243
13,867
13,861
6
150
13,729
13,662
67
92
14,135
14,077
58
249
14,106
14,079
27
500
14,250
14,225
25
536
14,553
14,569
499
14,502
14,423
79
417
20
21
22
23
All other banks
Reserves held
Required
Excess
Borrowings2
14,641
14,474
167
241
14,685
14,527
158
243
14,597
14,450
147
220
14,828
14,733
95
218
15,001
14,883
15,003
14,854
149
501
15,322
15,192
130
638
15,182
15,045
137
669
- 2 0
26
-21
12
-10
-16
- 2
118
595
1
-16
Weekly averages of daily figures for weeks ending—
1978
All member banks
Reserves:
At F.R. Banks
Currency and coin
Total held i
Required
Excess1
Borrowings at F.R. Banks: 2
29
Total
30
Seasonal
24
25
26
27
28
.
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18?
Oct. 25 p
28,455
8,777
37,307
37,316
-9
28,256
9,474
37,804
37,535
269
27,947
9,578
37,600
37,295
305
27,189
9,973
37,236
37,123
113
28,492
8,896
37,462
37,287
175
28,525
9,842
38,441
38,218
223
28,890
9,904
38,869
38,746
123
27,890
10,031
37,997
37,647
350
29,223
9,509
38,804
38,906
-102
28,948
9,099
38,119
37,752
367
1,606
196
1,023
204
1,165
187
510
175
925
189
1,560
204
1,286
208
1,239
205
1,249
220
1,314
236
31
32
33
34
Large banks in New York City
Reserves held
Required
Excess
Borrowings2
6,287
6,207
80
25
6,158
6,198
-40
66
6,378
6,281
97
143
6,106
6,172
-66
6,211
6,119
92
6
6,249
6,307
-58
113
6,586
6,551
35
174
6,225
6,209
16
263
6,391
6,739
-348
226
6,049
6,025
24
75
35
36
37
38
Large banks in Chicago
Reserves held
Required
Excess
Borrowings2
1,610
1,609
1
4
1,662
1,662
1,669
1,669
1,699
1,684
15
1,616
1,621
-5
134
1,693
1,618
75
4
1,681
1,677
4
6
1,613
1,612
3
1,741
1,743
-2
36
1,560
1,568
-8
12
39
40
41
42
Other large banks
Reserves held
Required
Excess
Borrowings2
14,246
14,395
-149
846
14,689
14,526
163
158
14,372
14,336
36
379
14,376
14,356
20
123
14,392
14,407
-15
210
14,892
14,799
93
727
15,045
15,091
-46
424
14,850
14,652
198
435
14,737
15,033
-296
396
14,711
14,728
-17
All
43
44
45
46
All other banks
Reserves held
Required
Excess
Borrowings2
15,164
15,105
59
731
15,295
15,149
146
799
15,181
15,009
172
634
15,055
14,911
144
387
15,243
15,140
103
575
15,607
15,494
113
716
15,557
15,427
130
682
15,309
15,174
135
538
15,352
15,391
-39
591
15,372
15,431
-59
800
9
i 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 weeks for which
figures are preliminary, figures by class of bank do not add to total
because
adjusted data by class are not available,
2
Based on closing figures.
A6
Domestic Financial Statistics • November 1978
1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks
Millions of dollars, except as noted
1978, week ending—
Type
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
-103
Total, 46 banks
1
Basic reserve position
Excess reserves1
93
136
65
182
227
202
261
344
404
18,905
15,867
14,917
15,375
18,536
17,470
-16,328
-18,864
-16,001
-14,983
-15,571
-18,698
-17,977
104.2
120.8
103.3
93.9
94.7
118.6
108.0
22,130
7,796
5,680
23,697
7,522
5,428
25,096
6,191
5,380
23,696
7,828
5,434
23,266
8,350
5,133
23,623
8,248
5,601
25,677
7,141
5,930
24,696
7,226
5,973
16,450
2,116
18,270
2,094
19,717
811
18,262
2,394
18,134
3,218
18,022
2,647
19,747
1,211
18,722
1,253
2,524
2,028
496
2,985
1,297
1,688
5,342
1,421
3,921
3,128
951
2,178
3,005
2,574
431
3,222
2,186
1,037
3,397
1,505
1,892
3,159
1,661
1,498
-45
131
144
129
297
14,334
16,176
-14,333
91.4
41
LESS:
2
3
Borrowings at F.R. Banks
Net interbank Federal funds
transactions
EQUALS : N e t surplus, o r
4
5
deficit ( - ) :
Amount
Per cent of average required
reserves
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks..
Sales of net selling banks
11
12
13
Related transactions with U.S.
Government securities dealers
Loans to dealers 3
Borrowing from dealers4
Net loans
8 banks in New York City
14
Basic reserve position
Excess reserves1
LESS:
15
16
Borrowings at F.R. Banks
Net interbank Federal funds
transactions
27
34
76
99
174
196
226
5,062
5,050
5,032
6,172
4,647
-5,502
-4,971
-5,122
-5,173
-6,292
-4,918
98.8
89.7
89.9
87.0
112.4
80.7
5,686
1,022
1,022
6,067
564
564
5,932
871
871
5,858
808
808
5,953
921
921
7,238
1,067
1,067
5,813
1,166
1,024
3,906
4,664
5,504
5,062
5,050
5,032
6,172
4,789
142
1,657
598
2,129
546
1,583
3,300
848
2,453
2,180
536
1,643
1,848
539
1,309
1,968
491
1,477
2,148
547
1,602
1,717
564
1,152
-59
3
101
66
143
91
3,906
4,664
5,504
-3,969
-4,707
70.9
83.0
5,453
1,547
1,547
EQUALS : N e t surplus, o r
17
18
deficit ( - ) :
Amount
Per cent of average required
reserves
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks..
Sales of net selling banks
24
25
26
Related transactions with U.S.
Government securities dealers
Loans to dealers 3
Borrowing from dealers4
Net loans
1,060
38 banks outside New York City
27
Basic reserve position
Excess reserves1
LESS:
28
29
Borrowings at F.R. Banks
Net interbank Federal funds
transactions
2
109
31
106
227
104
86
148
177
13,402
10,806
9,867
10,343
12,364
12,823
-11,622
-13,362
-11,031
-9,861
-10,398
-12,406
-13,059
116.2
133.0
110.9
96.1
99.1
16,677
6,249
4,133
18,012
6,500
4,406
19,029
5,627
4,816
17,763
6,958
4,563
17,409
7,542
4,325
12,545
2,116
13,606
2,094
14,213
811
13,200
2,394
866
1,431
-564
856
750
105
2,042
574
1,468
949
414
535
128
43
64
154
10,429
11,511
-10,364
102.8
40
EQUALS : N e t s u r p l u s , o r
deficit ( - ) :
Amount
Per cent of average required
reserves
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks..
Sales of net selling banks
37
38
39
Related transactions with U.S.
Government securities dealers
Loans to dealers 3
Borrowing from dealers4
Net loans
For notes see end of table.
121.9
123.9
17,670
7,327
4,680
18,439
6,075
4,864
18,883
6,060
4,950
13,084
3,218
12,990
2,647
13,575
1,211
13,933
1,110
1,157
2,036
-878
1,255
1,695
-440
1,249
958
291
1,442
1,096
346
Oct. 25
Federal Funds
A7
1.13 Continued
1978, week ending—
Type
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Oct. 25
5 banks in City of Chicago
40
Basic reserve position
Excess reserves1
1
8
22
LESS:
42
Net interbank Federal funds
transactions
43
44
EQUALS: Net surplus, or
deficit ( - ) :
Amount
Per cent of average required
reserves
45
46
47
48
49
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks
50
51
52
Related transactions with U.S.
Government securities dealers
Loans to dealers3
Borrowing from dealers4
Net loans
7
74
31
15
132
41
6
13
33
4,356
4,922
5,593
5,206
4,998
4,992
5,163
5,297
3,911
-4,349
-4,921
-5,571
-5,331
-4,924
-4,960
-5,148
-5,323
-3,898
280.0
315.5
353.5
352.4
325.8
316.5
342.2
325.7
266.1
5,749
1,393
1,392
6,240
1,319
1,318
6,918
1,325
1,325
6,436
1,230
1,229
6,175
1,178
1,178
6,147
1,156
1,156
6,395
1,232
1,232
6,749
1,452
1,452
5,242
1,331
1,331
4,356
4,922
5,593
5,207
4,997
4,992
5,163
5,297
3,911
173
336
-163
253
341
-88
247
196
51
103
58
45
166
727
-561
344
325
19
208
189
19
334
241
93
77
396
-319
33 other banks
53
Basic reserve position
Excess reserves *
LESS:
54
55
Borrowings at F R Banks
Net interbank Federal funds
transactions
56
57
EQUALS: Net surplus, or
deficit ( - ) :
Amount
Per cent of average required
reserves
58
59
60
61
62
63
64
65
Interbank Federal funds transactions
Gross transactions:
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks
Related transactions with U.S.
Government securities dealers
Loans to dealers3
Borrowing from dealers4
-6
35
91
-65
63
94
104
86
148
145
182
7,809
5,600
4,870
5,351
7,201
7,527
6,714
-6,701
-7,791
-5,700
-4,938
-5,438
-7,258
-7,736
-6,833
79.4
92.0
67.6
56.4
60.9
83.7
86.8
78.7
10,929
4,856
2,740
11,771
5,182
3,088
12,111
4,302
3,491
11,328
5,728
3,334
11,234
6,364
3,147
11,522
6,171
3,524
12,044
4,843
3,631
12,135
4,608
3,498
11,838
5,124
3,509
8,188
2,116
8,684
2,094
8,620
811
7,99 4
2,394
8,087
3,218
7,998
2,647
8,412
1,211
8,637
1,110
8,329
1,614
694
1,094
-401
603
409
193
1,795
378
1,417
846
356
490
991
1,308
-317
911
1,370
-459
1,041
769
272
1,108
855
253
1,018
1,181
-163
120
42
64
154
6,072
6,589
-6,016
70.6
18
1 Based on reserve balances, including adjustments to include waivers
of penalties for reserve deficiencies in accordance with changes in policy
of 2the Board of Governors effective Nov. 19, 1975.
Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's average purchases
and3 sales are offsetting.
Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases from dealers subject to resale),
or other lending arrangements.
4
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 U.S. Govt, or other securities.
NOTE.—Weekly averages of daily figures. For description of series,
see August 1964 BULLETIN, pp. 944-53. Back data for 46 banks appear
in the Board's Annual Statistical Digest, 1971-1975, Table 3.
A8
DomesticNonfinancialStatistics • November 1978
1.14 FEDERAL RESERVE BANK INTEREST RATES
Per cent per annum
Current and previous levels
Loans to member banks—
Loans to all others
under Sec. 13, last par.4
Under Sec. 10(b)2
Federal Reserve
Bank
Under Sees. 13 and 13a i
Regular rate
Special rate 3
Rate on
10/31/78
Effective
date
Previous
rate
Rate on
10/31/78
Effective
date
Previous
rate
Rate on
10/31/78
Effective
date
Previous
rate
Rate on
10/31/78
Effective
date
81/z
8Vi
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
10/16/78
10/16/78
10/20/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
8
8
8
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
9
9
10/16/78
10/16/78
10/20/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
81/2
8*4
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
10/16/78
10/16/78
10/20/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
9
9
9
9
9
9
9
9
9
9
9
9
11%
H1/2
IH/2
IH/2
ny2
10/16/78
10/16/78
10/20/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
10/16/78
11
11
11
11
11
11
11
11
11
11
11
11
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1976—Jan.
19
23
Nov. 22
26
51/4-6
5%
514-5%
514
51/2
5V4
514
514
7
71/4
7i/4
1977—Aug. 30
31
Sept. 2
Oct. 26
514-534
51/4-53/4
534
514
534
534
6
71/2-8
8
8
8
1978—Jan.
734-8
734
734
734
71/4-734
71/4-734
714
634-714
6*4
61/4-634
614
6-614
6
734
71/4
714
634
6^4
614
614
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco....
11V4
111/2
IN/2
111/2
IN/2
HV4
Previous
rate
Range of rates in recent years 5
Effective date
In effect Dec. 31. 1970
1971—Jan.
Feb.
July
Nov
Dcc.
8
15
19
22
29
13
19
16
23
11
19
13
17
24
1973—Jan. 15
Feb. 26
Mar. 2
Apr. 23
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
51/2
51/4
514-51/2
5i4
5-514
5-514
5
434-5
434
434-5
5
434-5
434
41/2-434
514
51/4
551/4
5
5
434
5
5
5
434
434
41/2
41/4
4*4-4%
4%
5
5-51A
5Vi
5i/i-534
5
5%
51/4
Effective date
1973—May
June
4
11
18
15
July 2
Aug. 14
23
1974—Apr. 25
30
Dec. 9
16
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1975—Jan.
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.
5
Rates under Sees. 13 and 13a (as described above). For description
and earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
534
534-6
6
6-6%
61/2
7
7-7V4
71/4
534
6
6
61/4
61/2
6
6
Effective date
May
July
Aug.
Sept.
Oct.
6
9
20
11
12
3
10
21
22
16
20
6-61/2
6%
6V4-7
7
7-714
71/4
73/4
8
8-81/4
81/2
In effect Oct. 31, 1978....
81/2
Statistics, 1941-1970, Annual Statistical Digest, 1971-75,
Statistical Digest, 1972-76.
61/2
6%
7
7
714
71/4
734
8
8%
81/2
81/2
and Annual
ERRATUM
The current and previous levels of Federal Reserve Bank interest
rates shown in the October 1978 BULLETIN were incorrect. The rates for
all Reserve Banks should have been:
Loans
Sees. 13 and 13a
Sec. 10(b)
Regular rate
Special rate
Sec. 13, last par
Rate on
9/30/78
Effective
date
Previous
rate
8
9/22/78
iy4
8V4
9
11
9/22/78
9/22/78
9/22/78
814
10*4
Policy Instruments
A9
1.15 MEMBER BANK RESERVE REQUIREMENTS1
Per cent of deposits
Type of deposit, and deposit interval
in millions of dollars
Requirements in effect
October 31, 1978
Per cent
Effective date
Per cent
Effective date
7
9%
11%
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
m
10
12
13
161/2
2/13/75
2/13/75
2/13/75
2/13/75
2/13/75
3
3/16/67
3%
3/2/67
3
2V£
41
3/16/67
1/8/76
10/30/75
3%
3
3
3/2/67
3/16/67
3/16/67
6
21/2
41
12/12/74
1/8/76
10/30/75
5
3
3
Net demand: 2
2-10
10-100
100-400
Over 400
Time: 2 -3
Savings
Other time:
0-5, maturing in—
30-179 days
180 days to 4 years
4 years or more
Over 5, maturing in—
30-179 days
180 days to 4 years
4 years or more
Previous requirements
1 ey4
4
4
10/1/70
12/12/74
12/12/74
Legal limits, October 31, 1978
Net demand :
Reserve city banks
Other banks
1
For changes in reserve requirements beginning 1963, see Board's
Annual Statistical Digest, 1971-1975 and for prior changes, see Board's
Annual
Report for 1976, Table 13.
2
(a) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank. 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) The Federal Reserve Act specifies different ranges of requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits of more than $400 million is considered to have the
character of business of a reserve city bank. The presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are 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
Minimum
Maximum
10
7
3
22
14
10
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board's Regulation D.
(c) Effective August 24, 1978, the Regulation M reserve requirements
on net balances due from domestic banks to their foreign branches and
on deposits that foreign branches lend to U.S. residents were reduced to
zero from 4 per cent and 1 per cent, respectively. The Regulation D
reserve requirement on borrowings from unrelated banks abroad was
also
reduced to zero from 4 per cent.
3
Negotiable orders of withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements
as savings deposits.
4
The average of reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law.
NOTE.—Required reserves must be held in the form of deposits with
F.R. Banks or vault cash.
A10
DomesticNonfinancialStatistics • N o v e m b e r 1978
1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Per cent per annum
Commercial banks
In effect Oct. 31, 1978
Type and maturity of deposit
Per cent
orders
of
Money market time deposit of less than
$100,0002
7/1/73
9
( )
Other time (multiple- and single- 3
maturity unless otherwise indicated)
}
30-89 days:
4
Multiple-maturity
5
Single-maturity
6
7
90 days to 1 year:
Multiple-maturity
Single-maturitv
4
8
9
10
1 to 2 vears
2 to 2i/ 2 years 4
21/i to 4 years 4
11
12
13
14
15
Per cent
1/1/74
(10)
(9)
(9)
Previous maximum
Per cent
Effective
date
514
(7)
5
5
1/1/74
(10)
(9)
(9)
(9)
1/21/70
(9)
Per cent
Effective
date
(8)
(9)
'
/
I
7/1/73
}
51/2
}
6
7/1/73
41/4
5
'
(
1/21/70
9/26/66
}
7/20/66
9/26/66
}
(10)
(10)
4 3
54
(7)
(7)
(7)
5%
1/21/70
534
6
6
1 /21 /70
1/21/70
1/21/70
11/1/73
12/23/74
6/1/78
(U)
71/2
11/1/73
f
1
51/2
5V4
53/4
1/21/70
1/21/70 }
1/21/70
61/2
ey4
11/1/73
12/23/74
6/1/78
(U)
71/4
11/1/73
71/2
734
8
8
6/1/78
73/4
12/23/74
8
6/1/78
734
12/23/74
8
6/1/78
73/4
7/6/77
8
6/1/78
734
7/6/77
61/2
7/1/73
7/1/73
4 to 6 years 5
6 to 8 years 5
8 years or more 5
7Va
71/2
73/4
Issued to governmental units (all
maturities)
Individual retirement accounts and
Keogh (H.R. 10) plans6
/
I
(10)
1
For authorized States only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks were first permitted to offer negotiable orders of withdrawal
(NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts
was extended to similar institutions throughout New England on Feb.
27, 1976.
2
Must have a maturity of exactly 26 weeks and a minimum denomination of $10,000, and must be nonnegotiable.
3
For exceptions with respect to certain foreign time deposits see the
Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
4
A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum denominations. This restriction was removed for deposits maturing in less
than 1 year, effective Nov. 1, 1973.
5 $1,000 minimum except for deposits representing funds contributed
to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan established pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and November 1976, respectively,
6
3-year minimum maturity.
7
July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
8
Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan
associations.
9
Commercial banks, savings and loan associations, and mutual savings
banks were authorized to offer money market time deposits effective
June 1, 1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. The ceiling rate for
savings and loan associations and mutual savings banks is x/a per cent
1.161
Effective
date
41/2
withdrawal
5
3
In effect Oct. 31, 1978
Previous maximum
Effective
date
5
1 Savings
2
Negotiable
Savings and loan associations and
mutual savings banks
(10)
higher than the rate for commercial banks. The most recent rates and
effective dates are as follows:
Sept. 28
8.276
8.526
Thrifts
Oct. 5
8.377
8.627
Oct. 12
Oct. 19
8.422
8.672
Oct. 26
8.612
8.862
8.561
8.811
1
o N o separate account category.
i i Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates that an institution
could issue was limited to 5 per cent of its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6Vi per cent ceiling on time deposits maturing in 2l/z
years or more.
Effective Nov. 1, 1973, the present ceilings were 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 can
issue.
NOTE—Maximum rates that can be paid by Federally insured commercial banks, mutual savings banks, and savings and loan associations are
established by the Board of Governors of the Federal Reserve System,
the Board of Directors of the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board under the provisions of 12
CFR 217, 329, and 526, respectively. The maximum rates on time deposits in denominations of $100,000 or more were suspended in mid1973. For information regarding previous interest rate ceilings on all
types of accounts, see earlier issues of the Federal Reserve BULLETIN,
the Federal Home Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.
MARGIN REQUIREMENTS
Per cent of market value; effective dates shown.
Type of security on sale
1 Margin stocks
2 Convertible bonds
3 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
NOTE.—Regulations G, T, and U of the Federal Reserve Board of
Governors, prescribed in accordance with the Securities Exchange Act of
1934, limit the amount of credit to purchase and carry margin stocks
that may be extended on securities as collateral by prescribing a maximum
loan value, which is a specified percentage 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. 11,
1968.
Policy Instruments
All
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1978
1975
Type of transaction
1977
1976
Mar.
Apr.
May
June
Aug.
July
Sept.
U.S. GOVT. SECURITIES
Outright transactions (excl. matched salepurchase transactions)
1
Treasury bills:
Gross purchases
Others within 1 year: 1
6
14
16
17
18
19
748
50
31
1,670
416
737
300
4,395
3,886
472
3,017
288
100
53
135
3,854
Exchange, or maturity shift
Exchange or maturity shift
Over 10 years:
Gross purchases
Exchange or maturity shift
13,738
7,241
2,136
2 3,284
5 to 10 years:
13
14,343
8,462
25,017
-4
3,549
Exchange, or maturity shift
1 to 5 years:
10
11,562
5,599
26,431
..
....
All maturities: 1
Gross purchases
Gross sales .
Redemptions
136
2 3,202
2,833
177
-2,588 -6,649
813
235
290
631
-261
-136
-79
467
370
191
168
-1,544
563
241
424
350
-490
-563
110
101
176
238
1,526
-87
1,434
74
115
758
1,572
584
1,070
642
553
848
225
1,565
221,313
5,599
29,980
219,707
8,639
25,017
20,898
7,241
4,636
2,367
50
31
2,341
935
737
300
5,451
701
466
1,919
689
3,386
196,078 425,214
196,579 423,841
44,976
44,129
42,262
42,799
40,634
40,362
52,544
52,557
44,657
44,712
29,162
29,641
33,346
33,130
13,155
11,468
8,044
8,999
11,517
11,819
14,956
13,100
15,822
17,374
16,286
15,140
10,724
10,353
3,127
1,923
-674
-1,261
2,854
3,540
147
140,311 232,891
139,538 230,355
178,683
180,535
7,434
9,087
5,798
246
1,616
169
891
223
1,433
53
'15,175
'15,567
10,520
10,360
13,811
13,638
2,638
2,374
978
882
1,383
163
-35
-545
410
-196
159
24 Net change in U.S. Government securities
145
113
122
600
895
Repurchase agreements
Gross purchases
Gross sales
Gross sales
171
-241
1,048
22
23
30 Net change in Federal agency obligations
2,635
1,510
151,205
152,132
29
972
689
-4,697
Matched sale-purchase transactions
Gross sales
Gross purchases
Outright transactions:
25
Gross purchases
26
Gross sales
.
27
Redemptions
Repurchase agreements:
-380
261
20
21
FEDERAL A G E N C Y OBLIGATIONS
-2,343
4.499
2.500
792
701
466
7,320
34
28
301
4
173
13
28
1,282
1,410
3,927
4,037
3,421
3,088
5,170
5,457
3,080
3,032
3,877
3,348
211
-128
-144
606
-291
-138
501
770
-480
-17
747
-753
28
419
770
-480
-17
747
-753
28
419
4,107
1,315
8,673
-2,305
2,744
4,460
BANKERS ACCEPTANCES
31 Outright transactions, net
32 Repurchase agreements, net
33 Net change in bankers acceptances
34 Total net change in System Open Market
Account
127
-135
-37
8,539
9,833
7,143
J Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions of dollars): 1975, 3,549; 1976, none; Sept. 1977,
2,500.
2
In 1975, the System obtained $421 million of 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction
-834
amounting to $189 million. Acquisition of these notes is treated as a
purchase; the run-off of bills, as a redemption.
NOTE.—Sales, redemptions, and negative figures reduce holdings of
the System Open Market Account; all other figures increase such holdings.
Details may not add to totals because of rounding.
A12
DomesticNonfinancialStatistics • November 1978
1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements
Millions of dollars
Wednesday
End of month
1978
Account
Sept. 27
Oct. 4
1978
Oct. 11
Oct. 18p
v
Oct. 25
Aug.
Sept.
Oct.?
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special Drawing Rights certificate account
3
Loans:
4
Member bank borrowings
5
Other
Acceptances:
6
7
Federal agency obligations:
8
q
10
11
P
U.S. Government securities
Bought outright:
Bills
Other
N
14
TotaU
16
11,668
1,300
11,668
1,300
11,667
1,300
11,655
1,300
11,655
1,300
11,679
1,300
11,668
1,300
11,655
1,300
279
282
287
291
294
283
292
300
1,158
1,505
676
1,660
1,796
954
1,365
1,206
753
216
611
724
296
715
236
7,950
1,188
7,941
79
7,941
1,228
7,941
7,938
1,185
7,978
119
7,950
647
7,938
127
47,783
46,802
48,184
46,239
48,206
45,133
47,551
48,376
53,859
11,617
113,259
3 104
53,859
11,617
112,278
182
53,859
11,617
113,660
3,178
54,526
11,757
112,522
54,526
11,757
114,489
3,046
53,229
11,496
109,858
1,881
53,859
11,617
113,027
2,252
54,526
11,757
114,659
663
17
116,363
112,460
116,838
112,522
117,535
111,739
115,279
115,322
18
127,412
122,201
127,294
122,123
129,178
121,086
125,956
124,829
12,404
396
12,899
393
16,051
400
15,075
395
10,997
395
10,728
392
9,492
394
13,307
395
20
1,914
19
2,154
19
2,141
19
2,222
62
2,281
18
1,653
20
2,025
27
2,334
155,393
150,916
159,159
153,080
156,162
147,139
151,147
154,147
96,867
97,452
98,455
98,225
97,902
96,534
96,572
98,154
33,197
13,543
29,733
12,162
27,010
15,348
34,860
11,748
272
252
257
559
545
554
624
27,705
12,068
309
691
26,830
16,647
253
32,893
15,084
300
533
628
26,200
15,467
305
531
47,552
42,712
48,810
43,164
47,489
40,773
44,430
42,503
6,662
1,689
6,848
1,670
7,785
1,707
7,438
1,685
6,118
1,916
5,503
1,541
5,773
1,700
8,930
1,686
152,770
148,682
156,757
150,512
153,425
144,351
148,475
151,273
1,062
1,029
532
1,061
1,029
144
1,062
1,029
311
1,064
1,029
475
1,067
1,029
641
1,058
1,029
701
1,061
1,029
582
1,069
1,029
776
155,393
150,916
159,159
153,080
156,162
147,139
151,147
154,147
85,412
85,479
86,697
87,479
88,046
85,731
86,450
83,606
19
20
21
22
Other assets:
Denominated in foreign currencies
23
LIABILITIES
24
25
26
27
28
Deposits:
Member bank reserves
29
30 Deferred availability cash items
31 Other liabilities and accrued dividends
32 Total liabilities
325
CAPITAL ACCOUNTS
33
34
35
Other capital accounts
36 Total liabilities and capital accounts
37
MEMO: Marketable U.S. Govt, securities held in
custody for foreign and intl. account
Federal Reserve note statement
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
Gold certificate account
39
Special Drawing Rights certificate account....
40
Eligible
paper
41
42
109,572
109,919
110,049
110,387
110,610
108,625
109,590
110,741
11,668
1,300
1,067
95,537
11,668
1,300
1,403
95,548
11,667
1,300
577
96,505
11,655
1,300
1,576
95,856
11,655
1,300
1,623
96,032
11,679
1,300
886
94,760
11,668
1,300
1,137
95,485
11,655
1,300
1,094
96,692
43 Total collateral
109,572
109,919
110,049
110,387
110,610
108,625
109,590
110,741
38
i Includes securities loaned—fully guaranteed by U.S. Govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2 includes certain deposits of domestic nonmember banks and foreignowned banking institutions voluntarily held with member banks and
redeposited in full with F.R. Banks.
Reserve Banks
A13
1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity
Sept. 27
2
3
4
Within 15 days
16 days to 90 days
91 days to 1 year
15
Over 10 years.
16 Federal agency obligations
17
Within 15 days i
18
16 days to 90 days
20
21
22
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
End of month
1978
1978
Oct. 11
Oct. 18
1,157
1,115
42
1,506
1,207
269
30
675
466
181
28
753
753
216
216
611
611
116,363
8.008
23,444
30,142
31,309
13,632
9,828
112,460
3,914
23,877
29,952
31,257
13,632
9,828
116,838
8,061
24,452
29,609
31,256
13,632
9,828
9,138
1,242
340
1,467
3,619
1,609
861
8,020
152
350
1,429
3,619
1,609
861
9,169
1,301
350
1,472
3.577
1,609
860
5 Acceptances
6
Within 15 days
7
16 days to 90 days
8
91 days to 1 year
9 U.S. Government securities
10
Within 15 days 1
11
16 days to 90 days
12
91 days to 1 year
Oct. 4
Wednesday
Oct. 25
1,660
1,579
81
Aug. 31
Sept. 30
Oct. 31
1,796
1,745
51
953
892
61
1,363
1,288
75
1,206
1,108
98
724
724
296
296
715
715
236
236
112,522
3,452
22,823
30,796
31,764
13,719
9,968
117,535
6,446
24,328
31,311
31,763
13,719
9,968
111,739
4,086
22,058
31,408
30,959
13,521
9,707
115,279
5,150
25,203
30,157
31,309
13,632
9,828
115,322
7,195
22,072
30,730
31,638
13,719
9,968
7,941
111
312
1,472
3,577
1,609
860
9,123
1,223
369
1,488
3,663
1,520
860
8,097
264
258
1,479
3,594
1,641
861
8,597
701
340
1,467
3,619
1,609
861
8,065
164
369
1,488
3,664
1,520
860
i Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1978
Bank group, or type
of customer
1975
1976
1977
May
Debits to demand deposits
1 All commercial banks
2 Major New York City b a n k s . .
3 Other banks
25,028.5
9,670.7
15,357.8
29,180.4
11,467.2
17,713.2
34,322.8
13,860.6
20,462.2
39,590.0
14,774.6
24,815.4
June
2
Aug.
July
Sept.
(seasonally adjusted)
41,538.5
15,976.0
25,562.5
40,575.1
15,355.3
25,219.7
42.722.1
16,432.9
26.289.2
41,529.9
15,493.6
26,036.3
433.0
57.6
375.4
420.4
60.9
359.5
146.2
577.5
99.7
143.3
549.6
99.5
2.0
5.2
1.8
1.9
5.3
1.7
Debits to savings deposits 3 (not seasonally adjusted)
174.0
21.7
152.3
4 All customers
5 Business 1
6 Others
398.1
51.9
346.1
Demand deposit turnover
7 All commercial banks
8 Major New York City b a n k s . .
9 Other banks
105.3
356.9
72.9
116.8
411.6
79.8
129.2
503.0
85.9
139.4
555.3
96.4
444.0
61.5
382.6
2
432.1
55.6
376.5
(seasonally adjusted)
144.4
596.0
98.0
139.0
553.0
95.5
Savings deposit turnover 3 (not seasonally adjusted)
10 AH customers
11 Business 1
12 Others
1 Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations,
mutual savings banks, credit unions, the Export-Import Bank, and
Federally sponsored lending agencies).
2
Represents accounts of individuals, partnerships, and corporations,
and of States and political subdivisions.
3 Excludes negotiable orders of withdrawal (NOW) accounts and special
club accounts, such as Christmas and vacation clubs.
1.6
4.1
1.5
1.8
4.7
1.6
2.0
5.5
1.8
2.0
5.1
1.8
NOTE.—Historical data—estimated for the period 1970 through June
1977, partly on the basis of the debits series for 233 SMSA"s, which were
available through June 1977—are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551. Debits and turnover data for
savings deposits are not available prior to July 1977.
A14
Domestic Financial Statistics • November 1978
1.21 MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
Item
1974
Dec.
1975
Dec.
1976
Dec.
1978
1977
Dec.
Apr.
May
June
July
Aug.
Sept.
352.8
840.6
1,429.8
927.3
1,516.5
354.2
846.2
1,440.9
933.6
1,528.3
356.7
853.5
1,455.1
939.8
1,541.4
360.9
862.4
1,472.0
950.5
1,560.1
Seasonally adjusted
MEASURES 1
1
2
3
4
5
M-l
M-2
M-3
M-4
M-5
282.9
612.2
981.2
701.2
1,070.3
295.2
664.7
1,092.5
746.1
1,173.8
313.5
740.5
1,236.5
803.2
1,299.2
338.5
809.5
1,376.1
883.5
1,450.1
348.5
830.3
1,411.4
913.7
1,494.9
350.6
835.2
1,419.9
922.2
1,506.9
COMPONENTS
6 Currency
Commercial bank deposits:
7
Demand
8
Time and savings 2
9
Negotiable CD's
10
Other
67.8
73.7
80.7
88.6
91.2
92.1
92.8
93.3
94.0
95.2
215.1
418.3
89.0
329.3
221.5
450.9
81.3
369.6
232.8
489.7
62.7
427.0
249.9
545.0
74.0
471.0
257.3
565.2
83.4
481.8
258.5
571.6
87.1
484.5
259.9
574.5
86.7
487.8
260.9
579.4
87.4
492.0
262.8
583.0
86.3
496.7
265.7
589.7
88.1
501.6
11 Nonbank thrift institutions 3
369.1
427.8
496.0
566.6
581.2
584.7
589.2
594.7
601.6
609.6
351.7
842.0
1,435.2
928.3
1,521.5
356.0
848.7
1,447.9
936.0
1,535.2
354.2
850.8
l,452.9
938.8
r
l,541.0
358.8
858.4
1,466.4
948.7
1,556.7
Not seasonally adjusted
MEASURES i
12
13
14
15
16
M-l
M-2
M-3
M-4
M-5
291.3
617.5
983.8
708.0
1,074.3
303.9
670.0
1,095.0
753.5
1,178.4
322.6
745.8
1,238.4
810.0
1,320.7
348.2
814.9
1,377.5
890.9
1,453.4
350.9
836.6
1,421.2
917.9
1,502.6
345.3
833.6
1,420.3
918.2
1,505.0
r
COMPONENTS
17 Currency
Commercial bank deposits:
18
Demand
19
Member
20
Domestic nonmember
21
Time and savings 2
22
Negotiable CD's
23
Other
24 Nonbank thrift institutions 3
25 U.S. Government deposits (all commercial banks)
1
69.0
75.1
82.1
90.1
91.0
91.9
92.9
94.1
94.3
95.0
222.2
159.7
58.5
416.7
90.5
326.3
228.8
162.8
62.6
449.6
83.5
366.2
240.5
169.4
67.5
487.4
64.3
423.1
258.1
177.5
76.2
542.6
75.9
466.7
259.9
177.3
78.5
567.1
81.4
485.7
253.3
172.6
76.9
572.9
84.6
488.3
258.8
175.7
79.1
576.6
86.3
490.3
262.0
177.7
80.3
579.9
87.3
492.6
259.9
176.1
79.9
584.6
88.0
496.6
263.8
178.2
81.1
589.9
90.3
499.6
366.3
424.9
492.7
562.5
584.6
586.7
593.2
599.2
'602.1
608.0
4.9
4.1
4.4
5.1
5.0
4.0
6.2
4.5
3.6
6.2
Composition of the money stock measures is as follows:
M - l : Averages of daily figures for (1) demand deposits at 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.
M-2: M-l plus savings deposits, time deposits open account, and time
certificates of deposit (CD's) other than negotiable CD's of $100,000 or
more at large weekly reporting banks.
M-3: M-2 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).
M-4: M-2 plus large negotiable CD's.
M-5: M-3 plus large negotiable CD's.
Latest monthly and weekly figures are available from the Board's 508
(H.6) release. Back data are available from the Banking Section, Division
of Research and Statistics.
2 Negotiable time CD's issued in denominations of $100,000 or more
by 3large weekly reporting commercial banks.
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.
NOTES TO TABLE 1.23:
1
2
Adjusted to exclude domestic commercial interbank loans.
Loans sold are those sold outright to a 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. 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
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."
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.
4
Reclassification of loans reduced these loans by about $1.2 billion
as of Mar. 31, 1976.
5 Reclassification of loans at one large bank reduced these loans by
about $200 million as of Dec. 31, 1977.
NOTE.—Data are for last Wednesday 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.
Monetary Aggregates
A15
1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks
Billions of dollars, averages of daily figures
1974
Dec.
Item
1975
Dec.
1977
1976
Dec.
Dec.
1978
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
36.57
Reserves1
35.84
Nonborrowed
36.31
Required
2
Deposits subject to reserve requirements . . 486.1
322.1
Time and savings
Demand:
160.6
6
Private
3.3
7
U.S. Government
1
2
3
4
5
34.68
34.55
34.42
504.6
337.1
34.93
34.89
34.29
528.9
354.3
36.14
35.57
35.95
569.1
387.0
36.93
36.52
36.69
577.9
395.4
36.67
36.34
36.47
582.1
399.2
36.95
36.39
36.80
586.0
400.7
37.26
36.05
37.04
592.0
406.0
37.73
36.63
37.55
595.6
407.1
38.19
36.88
38.00
600.3
410.5
37.91
36.77
37.74
601.0
411.4
38.17
37.11
37.97
606.3
416.0
164.5
2.9
171.4
3.2
178.5
3.6
179.5
3.0
179.6
3.4
182.0
3.3
183.5
2.6
184.6
3.9
186.1
3.7
186.5
3.3
186.3
4.1
Not seasonally adjusted
8 Deposits subject to reserve requirements2.. 491.8
321.7
9
Time and savings
Demand:
166.6
10
Private
3.4
11
U.S. Government
510.9
337.2
534.8
353.6
575.3
386.4
572.5
393.2
579.4
399.3
588.6
401.2
588.3
406.1
596.8
408.6
600.6
411.1
599.2
412.8
605.9
416.5
170.7
3.1
177.9
3.3
185.1
3.8
176.1
3.1
176.6
3.5
183.8
3.6
179.3
2.9
183.7
4.5
186.4
3.2
183.9
2.5
184.7
4.6
i Series reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and M. There
are breaks in series because of changes in reserve requirements effective
Dec. 12, 1974; Feb. 13, May 22, and Oct. 30,1975; Jan. 8, and Dec. 30,1976.
In addition, effective Jan. 1, 1976, statewide branching in New York
was instituted. The subsequent merger of a number of banks raised
required reserves because of higher reserve requirements on aggregate
deposits at these banks.
2
Includes total time and savings deposits and net demand deposits as
defined by Regulation D. Private demand deposits include all demand
deposits except those due to the U.S. Govt., less cash items in process of
collection and demand balances due from domestic commercial banks.
NOTE.—Back data and estimates of the impact on required reserves
and changes in reserve requirements are shown in Table 14 of the Board's
Annual Statistical Digest, 1971-1975.
1.23 LOANS AND INVESTMENTS All Commercial Banks
Billions of dollars; last Wednesday of month except for June 30 and Dec. 31
1974
1975
Dec. 31 Dec. 31
Category
1976
1977
Dec. 31 Dec. 31
3
1978
May 31 June 30
V
p
July 26
p
Aug. 30 Sept. 27
p
p
Oct. 25
p
Seasonally adjusted
1 Loans and investments1
2 Including loans sold outright2
690.4
695.2
721.1m
725.5
784.4
788.2
870.6
875.5
917.9
922.3
922.4
926.9
935.2
939.8
939.2
943.9
947.1
951.7
955.4
959.2
3
4
'5
6
Loans:
Total
Including loans sold outright2
Commercial and industrial
Including loans sold outright 2
500.2
505.0
183.3
186.0
496.9
501.3
176.0
178.5
538.9
542.7
4179.5
4181.9
617.0
621.9
5201.4
5204.2
657.9
662.3
219.2
221.5
661.2
665.7
220.4
222.6
672.0
676.6
222.3
224.6
677.2
681.9
224.4
226.9
684.4
689.0
226.3
228.7
693.7
697.5
228.8
230.7
7
8
Investments:
U.S. Treasury
Other
50.4
139.8
79.4
144.8
97.3
148.2
95.6
158.0
97.1
162.9
98.4
162.8
99.7
163.5
97.0
165.0
96.3
166.4
94.3
167.4
Not seasonally adjusted
1
9 Loans and investments
10 Including loans sold outright2
705.6
710.4
737.0
741.4
801.6
805.4
888.9
893.8
917.0
921.4
928.9
933.3
931.1
935.7
936.6
941.3
946.1
950.8
952.9
956.7
11
12
13
14
Loans:
Total i
Including loans sold outright2
Commercial and industrial
Including loans sold outright 2
510.7
515.5
186.8
189.5
507.4
511.8
179.3
181.8
550.2
554.0
4182.9
4185.3
629.9
634.8
5205.0
5207.8
657.1
661.5
219.2
221.5
669.2
673.7
223.0
225.2
672.6
677.1
222.4
224.7
678.0
682.7
223.3
225.8
685.8
690.5
225.6
228.0
693.5
697.3
228.3
230.2
15
16
Investments:
U.S. Treasury
Other
54.5
140.5
84.1
145.5
102.5
148.9
100.2
158.8
96.6
163.4
96.1
163.6
95.2
163.4
93.9
164.7
94.1
166.2
92.6
166.7
For notes see bottom of opposite page.
A16
DomesticNonfinancialStatistics • November 1978
1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
Account
1976
1977
Dec.
Dec.
19783
Feb."
Mar.p
Apr.p
May.p
June?
July*
Aug.f
Sept.**
Oct.P
All commercial
j Loans and investments
2
Loans, gross
Investments:
3
U.S. Treasury securities
4
Other
Cash assets
Currency and coin
Reserves with F.R. Banks
Balances with banks
Cash items in process of collection..
5
6
7
8
9
10 Total assets/total
capital 1
liabilities
and
11
Demand:
Interbank
U.S. Government
Other
Time:
Interbank
Other
17 Borrowings
18 Total capital accounts2
12
13
14
15
16
19
MEMO: Number of banks
846.4
594.9
939.1
680.1
926.0
668.0
936.0
677.8
947.7
685.0
967.4
707.4
966.8
707.8
972.1
713.5
977.0
718.4
987.7
727.4
994.3
735.0
102.5
148.9
100.2
158.8
99.6
158.5
98.6
159.6
99.6
163.1
96.6
163.4
95.9
163.2
95.2
163.4
93.9
164.7
94.1
166.2
92.6
166.7
136.1
12.1
26.1
49.6
48.4
168.7
13.9
29.3
59.0
66.4
145.2
13.8
31.0
46.9
53.5
131.5
14.3
30.2
44.1
43.0
134.1
14.1
27.6
44.7
47.6
162.7
14.3
30.3
53.3
64.7
142.6
14.6
30.8
45.5
51.6
131.8
14.6
23.6
46.3
47.3
139.9
15.0
29.7
44.9
50.3
143.6
15.0
32.6
46.4
49.6
148.0
14.9
34.6
46.7
51.7
1,030.7 1,166.0 1,136.4 1,136.7 1,151.2 1,199.5 1,177.3 1,170.4 1,184.5 1,200.6 1,210.9
838.2
939.4
899.7
896.2
910.3
946.1
926.2
924.0
929.8
941.1
943.9
45.4
3.0
288.4
51.7
7.3
323.9
42.6
5.8
288.6
37.4
4.8
280.2
38.8
6.1
292.0
50.7
3.2
310.6
40.5
7.1
294.9
40.2
4.2
293.2
40.1
2.7
295.8
41.6
10.7
294.2
42.9
7.4
296.0
9.2
492.2
9.8
546.6
8.7
554.0
9.0
564.8
9.0
564.4
9.4
572.2
9.8
573.9
10.2
576.2
10.6
580.6
11.5
583.1
11.1
586.5
80.2
78.1
96.2
85.8
103.7
82.8
105.7
83.3
104.5
83.7
111.4
84.6
109.0
84.7
102.3
85.4
108.2
85.9
111.9
87.1
117.4
87.1
14,671
14,707
14,682
14,689
14,697
14,702
14,701
14,713
14,721
14,715
14,715
Member
20
21
Loans, gross
Investments:
U.S. Treasury securities
Other
22
23
24
25
26
27
28
Cash assets, total
Currency and coin
Reserves with F.R. Banks
Balances with banks
Cash items in process of collection..
29
Total assets/total
capital1
30
liabilities
Demand:
Interbank
U.S. Government
Other
Time:
Interbank
Other
31
32
33
34
35
36 Borrowings
37 Total capital accounts2
38
MEMO: Number of banks
1
620.5
442.9
675.5
494.9
661.8
483.1
668.6
490.5
676.8
495.3
693.8
514.3
691.5
512.8
695.8
517.7
698.9
520.3
706.9
527.0
713.4
533.9
74.6
103.1
70.4
110.1
69.2
109.5
68.2
109.9
68.8
112.7
66.9
112.7
66.2
112.5
65.7
112.5
65.3
113.3
65.4
114.5
64.1
115.3
108.9
9.1
26.0
27.4
46.5
134.4
10.4
29.3
30.8
63.9
117.2
10.2
31.0
24.6
51.4
104.8
10.6
30.2
22.9
41.2
106.5
10.5
27.6
22.7
45.7
130.7
10.6
30.3
28.1
61.7
114.6
10.8
30.8
23.6
49.4
104.2
10.8
23.6
24.3
45.4
111.6
11.1
29.7
22.9
48.0
115.4
11.1
32.6
24.0
47.7
118.6
11.1
34.6
23.2
49.7
and
772.9
861.8
835.3
833.2
843.3
884.7
864.5
857.3
868.9
882.2
891.2
618.7
683.5
649.2
645.1
655.1
686.7
668.4
666.1
670.5
679.6
682.5
42.4
2.1
215.5
48.0
5.4
239.4
39.5
4.4
211.8
34.7
3.7
205.1
36.0
4.5
213.4
47.5
2.2
229.1
37.7
5.1
216.2
37.3
3.1
214.6
37.2
1.9
217.0
38.6
8.1
215.6
39.9
5.7
217.0
7.2
351.5
7.8
382.9
6.7
386.9
7.0
394.7
6.9
394.3
7.3
400.5
7.7
401.7
8.2
402.9
8.6
405.9
9.4
407.8
9.0
411.0
71.7
58.6
84.9
63.7
90.8
62.1
91.8
62.4
91.1
62.7
96.9
63.3
94.2
63.4
88.0
64.0
93.9
64.3
97.2
65.1
101.4
65.2
5,759
5,669
5,659
5,654
5,645
5,638
5,611
5,613
5,610
5,593
5,593
Includes items not shown separately.
Effective Mar. 31, 1976, some of the item "reserve for loan losses"
and all of the item "unearned income on loans" are no longer reported
as liabilities. As of that date the "valuation" portion of "reserve for
loan losses" and the "unearned income on loans" have been netted
against "other assets," and against "total assets" as well.
Total liabilities continue to include the deferred income tax portion of
"reserve
for loan losses."
2
Effective Mar. 31, 1976, includes "reserves for securities" and the
contingency
portion (which is small) of "reserve for loan losses."
3
Figures partly estimated except on call dates.
NOTE.—Figures include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries.
Commercial banks: All such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches of foreign banks.
Member banks: The following numbers of noninsured trust companies
that are members of the Federal Reserve System are excluded from member banks in Tables 1.24 and 1.25 and are included with noninsured banks
in Table 1.25: 1976—December, 11; 1978—January, 12.
Commercial Banks
A17
1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series
Millions of dollars, except for number of banks
1976
1976
1977
1977
Account
June 30
Dec. 31
June 30
Dec. 31
June 30
1
4
5
6
Dec. 31
773,701
827,696
854,734
914,783
443,959
476,610
488,240
523,000
539,021
520,976
578,734
560,076
601,122
581,143
657,513
636,323
315,628
305,280
340,691
329,971
351,311
339,955
384,722
372,702
90,947
143,731
124,072
101,461
147,500
129,562
100,568
153,053
130,726
99,333
157,937
159,264
49,688
78,642
75,488
55,727
80,191
76,072
53,345
83,583
74,641
52,244
86,033
92,050
Loans:
Net.,
Investments:
U.S. Treasury securities
Other
June 30
National (all insured)
Total insured
2
3
Dec. 31
7
942,519 1,003,969 1,040,945 1,129,711
548,702
583,304
599,743
651,360
8
776,957
825,003
847,372
922,664
444,251
469,377
476,381
520,167
4,622
37,502
265,671
3,022
44,064
285,200
2,817
44,965
284,544
7,310
49,849
319,873
2,858
20,329
152,383
1,676
23,149
163,346
1,632
22,876
161,358
4,172
25,646
181,821
9,406
459,753
8,248
484,467
7,721
507,324
8,731
536,899
5,532
263,147
4,907
276,296
4,599
285,915
5,730
302,795
63,828
68,988
75,291
72,061
81,137
75,503
89,332
79,084
45,187
39,501
54,421
41,319
57,283
43,142
63,218
44,994
14,373
14,397
14,425
14,397
4,747
4,735
4,701
4,654
9
10
11
12
13
Demand:
Interbank
Other
Time:
Interbank
Other
14
15
16
MEMO: Number of banks
Insured nonmember
State member (all insured)
136,915
144,000
144,597
152,518
192,825
207,085
221,896
239,265
98,889
96,037
102,277
99,474
102,117
99,173
110,247
107,210
124,503
119,658
135,766
130,630
147,694
142,015
162,543
156,411
16,323
21,702
30,422
18,849
22,874
32,859
19,296
23,183
35,918
18,179
24,091
42,305
24,934
43,387
18,161
26,884
44,434
20,631
27,926
46,275
20,166
28,909
47,812
24,908
23
179,649
189,578
195,452
210,441
214,167
231,086
245,749
267,910
24
142,061
149,491
152,472
163,443
190,644
206,134
218,519
239,053
869
15,833
49,659
429
19,295
52,204
371
20,568
52,570
1,241
22,353
57,605
894
1,339
63,629
917
1,619
69,648
813
1,520
70,615
1,896
1,849
80,445
28
29
3,074
72,624
2,384
75,178
2,134
76,827
2,026
80,216
799
123,980
956
132,993
988
144,581
973
153,887
30
31
15,300
12,791
17,310
13,199
19,697
13,441
21,729
14,184
3,339
16,696
3,559
17,542
4,155
18,919
4,384
19,905
32
1,029
1,023
1,019
1,014
8,597
8,639
8,705
8,729
17
Loans:
18
19
20
21
22
Net
Investments:
U.S. Treasury securities
Other
Demand:
25
26
27
Time:
Total nonmember
Noninsured nonmember
15,905
18,819
22,940
24,415
208,730
225,904
244,837
263,681
13,209
13,092
16,336
16,209
20,865
20,679
22,686
22,484
137,712
132,751
152,103
146,840
168,559
162,694
185,230
178,896
472
2,223
4,362
1,054
1,428
6,496
993
1,081
8,330
879
849
9,458
25,407
45,610
22,524
27,938
45,863
27,127
28,919
47,357
28,496
29,788
48,662
34,367
39
21,271
26,790
33,390
36,433
235,439
257,877
279,139
304,343
40
11,735
13,325
14,658
16,844
202,380
219,460
233,177
255,898
4
1,006
2,555
4
1,277
3,236
8
1,504
3,588
10
1,868
4,073
899
2,346
66,184
921
2,896
72,884
822
3,025
74,203
1,907
3,718
84,518
1,292
6,876
1,041
7,766
1,164
8,392
1,089
9,802
2,092
130,857
1,997
140,760
2,152
152,974
2,063
163,690
3,372
663
4,842
818
7,056
893
6,908
917
6,711
17,359
8,401
18,360
11,212
19,812
11,293
20,823
270
275
293
310
8,867
8,914
8,998
9,039
33
34
35
36
37
38
Loans:
Net
Investments:
U.S. Treasury securities
Other
Demand:
41
42
43
44
45
46
47
Interbank
Time:
Interbank
Total capital accounts
48
i Includes items not shown separately.
For Note see Table 1.24.
A18
DomesticNonfinancialStatistics • November 1978
1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, March 31, 1978
Millions of dollars, except for number of banks.
Member banks1
Asset account
Insured
commercial
banks
Large banks
Total
New York
City
1 Cash bank balances, items in process
2
Currency and coin
3
Reserves with F.R. Banks
4
Demand balances with banks in United States.
5
Other balances with banks in United States...
6
Balances with banks in foreign countries
7
Cash items in process of collection
8 Total securities held—Book value
9
U.S. Treasury
10 Other U.S. Government agencies
11
States and political subdivisions
12
All other securities
13
Unclassified total
14
15
16
17
18
19
Trading-account securities
U.S. Treasury
Other U.S. Government agencies
States and political subdivisions
All other trading account securities
Unclassified
20
21
22
23
24
Bank investment portfolios
U.S. Treasury
Other U.S. Government agencies
States and political subdivisions
All other portfolio securities
25 F.R. stock and corporate stock
26 Federal funds sold and securities resale agreement
27
Commercial banks
28
Brokers and dealers
29
Others
30 Other loans, gross
31
LESS: Unearned income on loans
32
Reserves for loan loss
33
Other loans, net
34
35
36
37
38
39
40
41
42
43
44
Other loans, gross, by category
Real estate loans
Construction and land development
Secured by farmland
Secured by residential properties
1- to 4-family residences
FHA-insured or VA-guaranteed
Conventional
Multifamily residences
FHA-insured
Conventional
Secured by other properties
City of
Chicago
Other
large
All other
148,275
11,654
29,373
35,658
5,250
4,235
62,105
126,359
8,556
29,373
22,002
2,914
3,713
59,801
40,297
922
5,021
10,601
584
582
22,588
4,853
183
1,338
95
5
327
2,904
44,741
2,734
11,935
2,928
726
1,819
24,599
36,468
4,718
11,079
8,377
1,598
985
9,710
256,200
98,358
37,712
113,825
6,202
103
177,684
68,855
24,043
80,789
3,923
74
20,044
9,874
1,767
8,027
376
8,012
3,223
976
3,616
197
57,309
22,426
6,868
26,803
1,192
20
92,319
33,333
14,432
42,344
2,157
54
5,922
3,358
981
998
482
103
5,745
3,338
974
983
377
74
2,143
1,361
365
285
132
867
659
65
96
47
2,487
1,245
496
529
197
20
248
72
48
73
250,278
94,999
36,731
112,827
5,720
171,939
65,518
23,069
79,807
3,546
17,901
8,513
1,402
7,742
244
54,822
21,180
6,372
26,274
996
92,071
33,261
14,384
42,270
2,156
7,145
2,564
911
3,520
150
1
54
1,624
1,373
307
107
488
471
45,780
38,829
4,315
2,636
35,129
28,401
4,168
2,560
3,622
2,139
1,151
332
1,931
1,587
269
75
17,552
13,391
2,166
1,995
12,024
11,284
581
158
616,444
14,864
6,904
594,676
459,958
9,980
5,471
444,507
72,630
586
1,233
70,811
24,555
96
321
24,137
173,551
3,243
2,070
168,237
189,222
6,054
1,846
181,322
182,790
21,562
7,919
104,315
99,365
7,612
91,754
4,950
387
4,562
48,994
125,708
16,178
3,453
73,123
69,561
6,613
62,948
3,562
325
3,237
32,953
9,472
2,253
21
4,769
4,203
547
3,655
566
129
437
2,430
2,463
505
8
1,344
1,244
45
1,199
25
74
607
46,667
7,951
381
27,459
26,163
3,581
22,582
1,296
84
1,212
10,875
67,105
5,470
3,042
39,552
37,951
2,440
35,511
1,600
86
1,514
19,041
100
45
46
47
48
49
50
51
52
53
54
Loans tofinancialinstitutions
REIT's and mortgage companies
Domestic commercial banks
Banks in foreign countries
Other depositary institutions
Other financial institutions
Loans to security brokers and dealers
Other loans to purchase or carry securities
Loans to farmers—except real estate
Commercial and industrial loans
34,258
8,476
2,806
6,597
1,424
14,955
10,108
4,216
25,440
201,203
32,199
8,092
2,136
6,427
1,302
14,242
9,805
3,494
13,955
163,093
11,202
2,267
743
2,786
211
5,196
5,597
376
165
37,199
4,135
869
138
264
40
2,824
1,420
302
157
12,602
13,951
4,298
1,008
2,681
840
5,124
2,497
1,833
3,321
64,071
2,910
658
247
696
212
1,097
291
983
10,312
49,221
55
56
57
58
59
60
61
62
63
64
65
66
67
Loans to individuals
Instalment loans
Passenger automobiles
Residential repair and modernization
Credit cards and related plans
Charge-account credit cards
Check and revolving credit plans
Other retail consumer goods
Mobile homes
Other
Other instalment loans
Single-payment loans to individuals
All other loans
142,918
115,070
51,361
7,325
18,708
14,819
3,888
17,696
9,097
8,599
19,980
27,848
15,510
98,541
79,424
32,804
4,834
16,487
13,256
3,231
12,036
6,376
5,659
13,262
19,117
13,163
6,336
4,732
889
286
2,085
1,351
734
368
169
199
1,104
1,604
2,284
2,195
1,406
157
69
1,003
964
39
53
20
33
124
789
1,279
35,289
29,071
9,796
1,771
8,846
7,288
1,558
4,480
2,359
2,121
4,178
6,218
5,921
54,721
44,215
21,962
2,708
4,554
3,653
900
7,136
3,828
3,307
7,856
10,505
3,679
898,279
658,693
94,784
34,187
243,587
286,136
5,990
21,948
3,079
13,803
37,661
5,626
16,359
3,038
13,376
33,818
1,041
2,380
1,498
6,540
14,263
140
760
242
939
1,283
3,458
6,227
1,201
5,492
13,472
988
6,992
98
405
4,800
1,129,035
857,269
160,802
42,404
318,177
335,885
68 Total loans and securities, net
69
70
71
72
73
Direct lease financing
Fixed assets—Buildings, furniture, real estate
Investment in unconsolidated subsidiaries
Customer acceptances outstanding
Other assets
74 Total assets
For notes see opposite page.
Commercial Banks
A19
1.26 Continued
Member banks 1
Liability or capital account
Insured
commercial
banks
Nonmember
banks 1
Large banks
All other
Total
New York
City
City of
Chicago
Other
large
Certified and officers' checks, etc
343,578
1,242
264,540
3,550
16,671
1,439
36,160
7,023
12,955
264,614
1,068
196,602
2,370
11,298
1,346
34,900
6,856
10,173
61,165
511
31,756
146
663
1,083
17,748
5,306
3,951
10,354
2
7,025
31
277
15
2,499
213
293
94,367
252
75,203
681
3,340
203
10,586
1,130
2,971
98,728
304
82,618
1,512
7,019
44
4,067
207
2,957
78,977
176
67,937
1,180
5,372
92
1,271
167
2,783
14,894
88,682
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
247,508
77
350
192,741
669
38,502
8,224
5,719
1,226
36,646
87
88
89
90
91
92
340,980
97
367
267,045
858
56,281
8,469
6,473
1,389
171
27,651
45
1,820
4,872
1,380
708
45
10,975
22
1,340
1,442
982
88
113
67,811
354
15,789
1,794
2,599
221
107,286
76
21
86,305
249
19,553
116
758
209
93,472
21
17
74,304
189
17,779
245
754
163
94
95
96
97
98
Individuals and nonprofit organizations
Corporations and other profit organizations
U S Government
States and political subdivisions
All other
224,267
208,729
10,674
60
4,766
38
155,670
145,150
7,433
47
3,006
35
11,086
10,324
509
4
231
18
2,909
2,758
142
56,219
52,523
3,103
18
559
15
85,456
79.545
3,678
26
2,205
2
68,597
63,579
3,241
13
1,760
4
908,825
667,792
108,896
28,157
239,268
291,470
241,046
89,613
45,167
10,272
34,175
6,413
1,686
14,394
21,389
84,592
43,009
9,595
31,988
6,073
1,380
13,966
18,620
21,755
8,459
2,115
11,181
2,583
229
7,119
6,655
9,112
6,188
1,115
1,808
123
29
942
1,158
40,981
22,824
5,029
13,128
2,608
681
5,499
7,006
12,744
5,537
1,336
5,871
759
442
407
3,802
5,026
2,158
682
2,186
340
310
428
2,897
1,042,320
792,424
147,237
39,521
296,042
309,623
250,047
5,734
4,459
1,109
80
1,995
1,275
1,275
80,981
80
17,439
31,468
30,246
1,748
60,387
32
12,623
22,763
23,763
1,206
12,456
2,802
2,645
4,542
5,137
132
570
1,404
776
52
20,141
2
3,926
7,997
7,855
361
24,987
29
5,482
8,821
9,994
660
20,606
49
4,822
8,708
6,485
543
1,129,035
857,269
160,802
42,404
318,177
335,885
271,928
241,764
167,543
20,683
4,920
58,500
83,439
74,223
133,088
113,373
32,111
5,086
42,039
34,136
19,722
46,678
596,705
165,180
887,163
35,671
446,117
135,150
649,600
4,328
71,996
30,866
101,607
1,997
24,061
11,960
26,568
16,675
168,519
56,901
233,300
12,671
181,541
35,422
288,125
11,090
150,589
30,030
237,573
91,131
6,488
86,470
6,176
23,676
2,702
9,751
117
40,486
2,538
12,557
820
4,661
312
16,408
168,974
144,741
24,233
15,465
138,295
117,812
20,483
8,772
31,243
27,027
4,216
1,169
12,496
10,698
1,798
4,378
58,552
49,085
9,467
1,146
36,004
31,002
5,002
944
30,679
26,930
3,750
14,372
5,652
12
9
153
5,478
8,733
77
78
79
80
81
Other individuals, partnerships, and corporations
U.S. Government
States and political subdivisions
Foreign governments, central banks, etc
Commercial banks in United States
83
99 Total deposits
100 Federal funds purchased and securities sold under agreements
to repurchase
102
103
104
105
106
107
Brokers and dealers
Others
Other liabilities for borrowed money
Mortgage indebtedness
Bank acceptances outstanding
Other liabilities
108 Total liabilities
109 Subordinated notes and debentures
110 Equity capital
Ill
Preferred stock
112
Common stock
113
Surplus
114
Undivided profits
115
Other capital reserves
116 Total liabilities and equity capital
MEMO ITEMS:
117 Demand deposits adjusted 2
Average for last 15 or 30 days:
118
Cash and due from bank
119
Federal funds sold and securities purchased under agree120
121
122
123
124
Total loans
Time deposits of $ 100,000 or more
Total deposits
Federal funds purchased and securities sold under agreements to repurchase
Other liabilities for borrowed money
125 Standby letters of credit outstanding
126 Time deposits of $100,000 or more
127
Certificates of deposit
129 Number of banks
,
1
Member banks exclude and nonmember banks include 13 noninsured
trust companies that are members of the Federal Reserve System.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.
*
10
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. Back data in lesser detail were shown in
p r e v i o u s BULLETINS.
A20
DomesticNonfinancialStatistics • November 1978
1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities
Millions of dollars, Wednesday figures
1978
Account
1 Total loans and investments
Loans:
Federal funds sold1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others
2
3
4
5
6
Other, gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign govts., official institutions, etc
All other loans
LESS: Loan loss reserve and unearned income
on loans
Other loans, net
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
32
33
Investments:
U.S. Treasury securities
Bills
Notes and bonds, by maturity:
Within 1 year
1 to 5 years
After 5 years
Other securities
Obligations of States and political
subdivisions:
Tax warrants, short-term notes, and
bills
All other
Other bonds, corporate stocks, and
securities:
Certificates of participation2
All other, including corporate stocks
34
35
36
37
38
39
Cash items in process of collection
Reserves with Federal Reserve Banks
Currency and coin
Balances with domestic banks
Investments in subsidiaries not consolidated....
Other assets
24
25
26
27
28
29
30
31
40 Total assets/total liabilities
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4p
Oct. 11p
Oct. 18^
Oct. 25
469,516
479,086
474,578
477,078
475,523
481,817
481,185
480,249
481,573
23,813
28,575
24,741
24,591
23,119
21,101
25,582
18,346
24,891
19,287
18,857
17,946
23,974
25,119
19,075
20,111
18,100
19,714
2,768
519
2,180
4,601
558
2,315
2,991
513
1,950
3,007
581
2,146
2,347
606
2,220
3,844
582
2,081
2,238
629
1,913
3,214
560
2,100
2,433
512
2,460
345,497
348,286
348,142
350,215
351,173
134,968
5,259
135,402
5,282
135,546
5,314
136,543
5,314
136,710
5,334
933
8,857
1,600
8,915
1,493
8,602
1,321
8,942
107
2,625
106
2,637
109
2,620
7,874
15,702
84,423
8,242
15,638
84,671
2,313
5,929
53,043
1,634
21,830
2,392
6,024
53,242
1,714
22,421
10,682
45
46
47
48
49
50
51
52
53
54
55
56
57 Federal funds purchased, etc.5
Borrowings from:
58
Federal Reserve Banks
59
Others
60 Other liabilities, etc. 6
61 Total equity capital and
subordinated
notes/debentures7
10,732
354,917
355,595
356,015
137,791
5,360
138,434
5,398
138,295
5,421
138,826
5,420
921
9,253
1,436
9,211
715
8,718
1,317
8,664
863
8,464
106
2,599
105
2,586
109
2,577
108
2,574
109
2,571
110
2,575
8,309
15,786
85,158
8,074
15,875
85,555
8,122
15,899
85,882
8,209
15,960
86,243
8,421
16,002
86,617
8,545
15,914
87,063
8,254
15,609
87,302
2,162
5,968
53,372
1,706
21,997
2,329
5,962
53,637
1,645
22,313
2,561
6,063
53,941
1,666
22,130
2,723
6,619
54,207
1,768
22,591
2,647
6,650
54,341
1,800
22,492
2,323
6,611
54,526
1,826
22,410
2,477
6,797
54,696
2,016
22,606
10,793
10,840
10,789
10,746
10,860
10,896
10,956
337,554
337,349
339,375
340,384
344,058
344,057
344,699
345,059
42,777
43,803
43,518
43,918
42,917
43,046
42,369
41,916
41,724
4,590
4,610
4,506
4,838
4,338
4,331
3,543
3,641
3,446
6,741
25,850
5,596
6,915
26,694
5,584
6,920
26,487
5,605
6,937
26,500
5,643
6,979
26,014
5,586
6,936
26,020
5,759
7,047
25,881
5,898
7,129
25,408
5,738
7,212
25,351
5,715
6,625
69,194
69,103
6,069
46,226
6,080
46,028
6,141
45,953
45,673
6,729
45,880
6,704
45,754
6,562
45,797
2,840
13,599
2,855
13,820
2,936
14,150
2,855
14,154
2,920
13,913
2,938
14,321
2,940
14,262
3,012
14,300
43,132
22,408
6,782
14,295
3,256
63,298
52,742
18,229
6,155
15,275
3,325
63,412
46,007
22,708
6,863
13,104
3,306
64,970
47,020
19,210
6,755
14,362
3,315
65,876
43,352
25,261
6,936
14,783
3,319
65,376
48,432
23,644
6,043
15,349
3,278
64,400
47,996
25,097
6,740
15,406
3,346
65,178
45,848
19,998
6,807
15,493
3,445
65,436
45,104
26,853
6,956
14,035
3,509
64,670
622,687
638,224
631,536
633,616
634,550
642,963
644,948
637,276
642,700
200,217
192,868
195,335
191,858
198,648
199,048
195,278
192,444
141,823
5,736
2,985
142,160
5,364
1,482
139,295
5,832
5,700
135,128
5,802
5,970
139,241
5,695
3,760
144,463
5,558
1,309
140,863
5,745
2,327
135,804
5,597
4,857
31,272
945
27,263
804
27,784
801
28,666
754
31,243
1,071
31,242
973
29,982
872
30,108
824
1,656
6,758
9,042
1,074
6,534
8,187
1,238
6,658
8,027
1,346
6,634
7,558
1,723
6,565
9,350
1,143
7,131
7,229
1,255
6,829
7,405
1,342
6,323
7,589
69,154
68,970
6,156
45,750
6,784
45,931
2,835
13,370
68,111
69,131
69,868
69,660
69,671
270,573
272,167
271,820
272,480
272,501
271,331
272,376
274,903
91,805
178,768
137,482
6,487
6,775
91,540
180,627
139,084
26,335
6,730
6,745
91,459
180,361
138,877
26,200
6,950
6,604
91,633
180,847
139,486
26,153
7,041
6,409
92,091
180,410
139,479
26,158
6,736
6,366
91,838
179,493
138,909
26,161
6,354
6,404
91,668
180,708
139,857
26,444
6,340
6,408
91,388
183,515
141,830
26,729
6,714
6,587
79,304
80,175
79,797
78,034
82,370
82,175
86,103
79,643
84,438
608
6,688
32,694
350
6,882
33,043
176
6,746
32,738
1,487
6,616
33,407
509
6,661
33,658
1,090
6,737
34,698
282
6,859
34,133
1,193
7,248
34,436
1,062
7,476
35,086
46,753
46,984
47,044
46,917
47,014
47,114
47,192
47,102
47,291
26,21s
1 Includes securities purchased under agreements to resell.
Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which are
not shown separately.
* For amounts of these deposits by ownership categories, see Table 1.30.
2
354,804
334,815
Deposits:
186,538
Demand deposits
Individuals, partnerships, and corporations. 135,136
5,592
States and political subdivisions
1,030
U.S. Government
Domestic interbank:
27,563
Commercial
784
Mutual savings
Foreign:
1,261
Governments, official institutions, etc....
6,497
Commerial banks
8,675
Certified and officers' checks
270,102
Time and4 savings deposits3
91,592
Savings
178,510
Time:
137,420
Individuals, partnerships, and corps
26,298
States and political subdivisions
6,453
Domestic interbank
6,655
Foreign govts., official institutions, etc...
41
42
43
44
p
Aug. 30
5
Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
7 Includes reserves for securities and contingency portion of reserves
for loans.
Weekly Reporting Banks
A21
1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1978
Account
1 Total loans and investments
2
3
4
5
6
Loans:
Federal funds sold1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others
Other gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign govts, official institutions, etc
All other loans
LESS: Loan loss reserve and unearned income
on loans
Other loans, net
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
32
33
Investments:
U.S. Treasury securities
Bills
Notes and bonds, by maturity:
Within 1 year
1 to 5 years
After 5 years
Other securities
Obligations of States and political
subdivisions:
Tax warrants, short-term notes, and bills,
Allother
Other bonds, corporate stocks, and
securities:
Certificates of participation2
All other, including corporate stocks
34
35
36
37
38
39
Cash items in process of collection
Reserves with Federal Reserve Banks
Currency and coin
Balances with domestic banks
Investments in subsidiaries not consolidated....
Other assets
24
25
26
27
28
29
30
31
40 Total assets/total liabilities
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Deposits:
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. Government
Domestic interbank:
Commercial
Mutual savings
Foreign:
Governments, official institutions, etc
Commercial banks
Certified and officers' checks
Time and savings deposits3
Savings4
Time
Individuals, partnerships and corps
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc...
57 Federal funds purchased, etc. 5
Borrowings from:
58
Federal Reserve Banks
59 Others
60 Other liabilities, etc. 6
61 Total equity capital
and subordinated notes/
debentures7
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4»
Oct. 11»
Oct. 18p
Oct. 25p
94,099
96,907
94,792
96,634
94,795
98,005
96,646
96,714
97,288
4,534
2,900
4,586
2,795
3,442
2,008
4,294
2,604
3,884
2,344
4,439
2,364
3,886
2,404
4,024
2,354
4,839
2,725
929
10
695
1,322
4
465
963
4
467
1,114
4
572
900
4
636
1,542
4
529
965
4
513
1,078
4
588
1,089
4
1,021
71,156
35,745
163
72,979
36,205
163
72,917
36,318
167
73,728
36,667
161
73,148
36,771
157
75,380
37,282
155
74,606
37,503
157
74,859
37,333
164
74,927
37,856
170
786
4,605
1,477
4,772
1,371
4,652
1,204
5,075
809
4,801
1,297
4,846
590
4,516
1,203
4,575
766
4,446
28
364
28
368
29
359
28
354
26
358
26
358
27
356
28
351
28
361
2,626
4,746
9,428
2,802
4,710
9,447
2,879
4,723
9,603
2,790
4,827
9,657
2,759
4,820
9,718
2,857
4,864
9,708
2,993
4,861
9,767
3,103
4,810
9,808
2,919
4,714
9,851
672
2,737
4,841
375
4,040
730
2,744
4,854
409
4,270
612
2,697
4,886
395
4,226
736
2,706
4,907
361
4,255
767
2,737
4,935
389
4,101
1,024
3,168
4,954
441
4,400
882
3,149
4,989
430
4,386
691
3,110
5,005
429
4,249
720
3,148
5,026
592
4,330
1,847
69,309
1,867
71,112
1,889
71,028
1,889
71,839
1,849
71,299
1,843
73,537
1,858
72,748
1,864
72,995
1,880
73,047
9,477
1,893
10,002
1,982
9,274
1,385
9,415
1,630
8,723
1,178
9,146
1,429
8,738
982
8,584
1,141
8,315
848
672
5,629
1,283
10,779
597
6,282
1,141
11,207
561
6,121
1,207
11,048
539
6,010
1,236
11,086
566
5,762
1,217
10,889
534
5,937
1,246
10,883
507
5,915
1,334
11,274
627
5,597
1,219
11,111
636
5,695
1,136
11,087
1,732
7,023
2,150
7,034
1,772
7,174
1,868
6,949
1,850
6,910
1,807
6,887
1,992
7,000
1,963
6,866
1,845
6,933
517
1,507
517
1,506
501
1,601
540
1,729
521
1,608
527
1,662
529
1,753
527
1,755
521
1,788
15,534
4,683
973
7,786
1,722
25,361
15,451
6,650
955
6,840
1,713
24,723
14,706
6,442
1,025
6,427
1,729
26,510
15,327
3,657
1,034
7,409
1,729
27,330
14,243
5,658
1,039
7,145
1,732
26,912
15,158
6,921
921
8,220
1,740
25,015
14,254
8,156
1,010
7,371
1,760
25,962
14,568
3,715
1,014
8,353
1,771
26,412
15,781
6,586
1,050
7,677
1,783
25,486
150,158
153,239
151,631
153,120
151,524
155,980
155,159
152,547
155,651
53,163
28,215
388
114
54,312
27,707
411
563
51,990
28,152
397
133
54,469
28,753
511
1,174
53,142
27,281
509
1,155
55,113
27,652
501
1,127
53,862
28,713
524
128
54,377
28,439
484
368
54,205
27,172
536
699
13,648
377
13,977
482
13,005
407
13,769
402
14,447
371
14,197
599
14,716
524
15,145
458
16,157
444
994
4,924
4,503
45,634
9,526
36,108
27,681
1,790
1,919
3,956
1,354
5,157
4,661
45,908
9,551
36,357
27,900
1,766
1,870
4,028
849
4,844
4,203
46,105
9,540
36,565
28,142
1,797
1,890
3,949
1,007
5,052
3,801
45,800
9,525
36,275
27,821
1,829
1,967
3,847
1,084
4,849
3,446
45,770
9,571
36,199
27,835
1,845
2,015
3,666
1,502
4,754
4,781
46,097
9,585
36,512
27,915
1,909
2,227
3,632
928
5,384
2,945
45,919
9,563
36,356
27,580
1,964
2,275
3,713
1,020
5,127
3,336
46,466
9,566
36,900
27,926
2,000
2,340
3,807
1,030
4,588
3,579
46,808
9,485
37,323
28,101
2,035
2,474
3,887
20,150
22,244
22,937
22,330
21,822
22,433
23,629
19,110
22,072
360
3,905
14,978
13,323
*
*
3,315
14,176
3,398
13,914
3,257
13,979
13,229
13,284
13,287
13,285
1 Includes securities purchased under agreements to resell.
Federal agencies only.
„
. , ,
,.,
3 Includes time deposits of U.S. Govt, and of foreign banks, which
are4 not shown separately.
.
For amounts of these deposits by ownership categories, see Table 1.30.
2
*
460
3,379
14,143
*
•
3,289
14,217
471
3,507
15,059
3,563
14,860
425
3,776
15,097
13,284
13,300
13,326
13,296
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
.
7 Includes reserves for securities and contingency portion of reserves
for loans.
A22
DomesticNonfinancialStatistics • November 1978
1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY
Assets and Liabilities
Millions of dollars, Wednesday figures
1978
Account
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4p
Oct. 11 p Oct. 18 p Oct. 25 p
375,417
382,179
379,786
380,444
380,728
383,812
384,539
383,535
384,285
19,279
15,446
23,989
18,306
21,299
17,279
20,297
16,253
19,235
15,602
21,143
16,711
21,005
17,707
19,950
15,746
20,280
16,989
1,839
509
1,485
3,279
554
1,850
2,028
509
1,483
1,893
577
1,574
1,447
602
1,584
2,302
578
1,552
1,273
625
1,400
2,136
556
1,512
1,344
508
1,439
274,341
99,223
5,096
275,307
99,197
5,119
275,225
99,228
5,147
276,487
99,876
5,153
278,025
99,939
5,177
279,424
100,509
5,205
280,311
100,931
5,241
280,736
100,962
5,257
281,088
100,970
5,250
147
4,252
123
4,143
122
3,950
117
3,867
112
4,452
139
4,365
125
4,202
114
4,089
97
4,018
79
2,261
78
2,269
80
2,261
78
2,245
79
2,228
83
2,219
81
2,218
81
2,220
82
2,214
5,248
10,956
74,995
5,440
10,928
75,224
5,430
11,063
75,555
5,284
11,048
75,898
5,363
11,079
76,164
5,352
11,096
76,535
5,428
11,141
76,850
5,442
11,104
77,255
5,335
10,895
77,451
1,641
3,192
48,202
1,259
17,790
1,662
3,280
48,388
1,305
18,151
1,550
3,271
48,486
1,311
17,771
1,593
3,256
48,730
1,284
18,058
1,794
3,326
49,006
1,277
18,029
1,699
3,451
49,253
1,327
18,191
1,765
3,501
49,352
1,370
18,106
1,632
3,501
49,521
1,397
18,161
1,757
3,649
49,670
1,424
18,276
8,835
265,506
8,865
266,442
8,904
266,321
8,951
267,536
8,940
269,085
8,903
270,521
9,002
271,309
9,032
271,704
9,076
272,012
33,300
2,697
33,801
2,628
34,244
3,121
34,503
3,208
34,194
3,160
33,900
2,902
33,631
2,561
33,332
2,500
33,409
2,598
6,069
20,221
4,313
57,332
6,318
20,412
4,443
57,947
6,359
20,366
4,398
57,922
6,398
20,490
4,407
58,108
6,413
20,252
4,369
58,214
6,402
20,083
4,513
58,248
6,540
19,966
4,564
58,594
6,502
19,811
4,519
58,549
6,576
19,656
4,579
58,584
4,424
38,727
4,634
38,897
A,291
39,052
4,212
39,079
4,291
39,043
4,818
38,786
4,737
38,880
4,741
38,888
A,111
38,864
2,318
11,863
2,323
12,093
2,354
12,219
2,396
12,421
2,334
12,546
2,393
12,251
2,409
12,568
2,413
12,507
2,491
12,512
27,598
17,725
5,809
6,509
1,534
37,937
37,291
11,579
5,200
8,435
1,612
38,689
31,301
16,266
5,838
6,677
1,577
38,460
31,693
15,553
5,721
6,953
1,586
38,546
29,109
19,603
5,897
7,638
1,587
38,464
33,274
16,723
5,122
7,129
1,538
39,385
33,742
16,941
5,730
8,035
1,586
39,216
31,280
16,283
5,793
7,140
1,674
39,024
29,323
20,267
5,906
6,358
1,726
39,184
.
472,529
484,985
479,905
480,496
483,026
486,983
489,789
484,729
487,049
Deposits:
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. Government
Domestic interbank:
Commercial
Mutual savings
Foreign:
Governments, official institutions, etc
Commercial banks
Certified and officers' checks
Time and savings deposits*
Savings4
Time
Individuals, partnerships, and corps
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc..,
133,375
106,921
5,204
916
145,905
114,116
5,325
2,422
140,878
114,008
4,967
1,349
140,866
110,542
5,321
4,526
138,716
107,847
5,293
4,815
143,535
111,589
5,194
2,633
145,186
115,750
5,034
1,181
140,901
112,424
5,261
1,959
138,239
108,632
5,061
4,158
13,915
407
17,295
463
14,258
397
14,015
399
14,219
383
17,046
472
16,526
449
14,837
414
13,951
380
267
1,573
4,172
224,468
82,066
142,402
109,739
24,508
4,534
2,699
302
1,601
4,381
224,665
82,254
142,411
109,582
24,512
4,617
2,747
225
1,690
3,984
226,062
82,000
144,062
110,942
24,538
4,840
2,796
231
1,606
4,226
226,020
81,934
144,086
111,056
24,371
4,983
2,757
262
1,785
4,112
226,710
82,062
144,648
111,651
24,308
5,026
2,743
221
1,811
4,569
226,404
82,506
143,898
111,564
24,249
4,509
2,734
215
1,747
4,284
225,412
82,275
143,137
111,329
24,197
4,079
2,691
235
1,702
4,069
225,910
82,102
143,808
111,931
24,444
4,000
2,601
312
1,735
4,010
228,095
81,903
146,192
113,729
24,694
4,240
2,700
59,154
57,931
56,860
55,704
60,548
59,742
62,474
60,533
62,366
282
3,296
19,273
768
3,472
19,339
702
3,571
20,108
33,866
33,806
33,968
1 Total loans and investments
2
3
4
5
6
Loans :
Federal funds sold1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others
Other, gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign govts., official institutions, etc
All other loans
LESS: Loan reserve and unearned income on
loans
Other loans, net
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
32
33
Investments:
U.S. Treasury securities
Bills
Notes and bonds, by maturity:
Within 1 year
1 to 5 years
After 5 years
Other securities
Obligations of States and political subdivisions :
Tax warrants, short-term notes, and bills.
Allother
Other bonds, corporate stocks, and
securities:
Certificates of participation2
All other, including corporate stocks
34
35
36
37
38
39
Cash items in process of collection
Reserves with Federal Reserve Banks
Currency and coin
Balances with domestic banks
Investments in subsidiaries not consolidated...,
Other assets
24
25
26
27
28
29
30
31
40 Total assets/total liabilities
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57 Federal funds purchased, etc. 5
Borrowings from:
58
Federal Reserve Banks
59
Others
60 Other liabilities, etc.6
61 Total equity capital and subordinated
notes/debentures?
1
2
148
3,309
18,551
350
3,567
18,867
176
3,348
18,824
1,487
3,359
19,428
509
3,372
19,441
619
3,230
19,639
33,524
33,700
33,757
33,632
33,730
33,814
Includes securities purchased under agreements to resell.
Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which
are not shown separately.
4 For amounts of these deposits by ownership categories, see Table 1*30.
5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
7 Includes reserves for securities and contingency portion of reserves
for loans.
Weekly Reporting Banks
A23
1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1978
Account
1
2
3
Total loans (gross) and investments adjusted1
Large Banks
New York City banks
Banks outside New York City
4
5
6
Total loans (gross), adjusted
Large banks
New York City banks
Banks outside New York City
7
8
9
Demand deposits, adjusted2
Large Banks
New York City banks
Banks outside New York City
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Large negotiable time3 CD's included in time and
savings deposits
Total:
Large banks
New York City
Banks outside New York City
Issued to IPC's:
Large banks
New York City Banks
Banks outside New York City
Issued to others:
Large banks
New York City banks
Banks outside New York City
All other large time deposits4
Total:
Large banks
New York City banks
Banks outside New York City
Issued to IPC's:
Large banks
New York City banks
Banks outside New York City
Issued to others:
Large banks
New York City banks
Banks outside New York City
37
38
39
Savings deposits, by ownership category
Individuals and nonprofit organizations:
Large banks
New York City banks
Banks outside New York City
Partnerships and corporations for profit:5
Large banks
New York City banks
Banks outside New York City
Domestic governmental units:
Large banks
New York City banks
Banks outside New York City
All other: 6
Large banks
New York City banks
Banks outside New York City
40
41
42
Gross liabilities oi banks to their foreign branches
Large banks
New York City banks
Banks outside New York City
43
44
45
Loans sold outright
to selected institutions by all
large banks7
Commercial and industrial8
Real estate »
All other »
28
29
30
31
32
33
34
35
36
Oct. 18p
470,765
469,287
470,722
96,460
374,305
95,218
374,069
95,533
375,189
533,785
358,588
357,050
359,146
73,921
279,864
76,431
282,157
75,206
281,844
75,838
283,308
113,870
115,213
118,501
117,121
Sept. 6
Sept. 13
Sept. 20
Sept. 27
459,539
466,325
463,922
466,732
465,805
92,374
367,165
95,249
371,076
94,061
369,861
95,183
371,549
93,533
372,272
348,651
353,368
351,434
353,620
72,118
276,533
74,040
279,328
73,739
277,695
74,682
278,938
114,813
113,218
114,831
23,867
90,946
24,321
88,897
118,116
24,146
93,970
89,248
89,385
24,817
64,431
24,958
64,427
24,199
90,632
23,297
90,573
24,631
90,582
24,764
93,737
24,296
92,825
90,893
90,569
89,329
89,987
24,723
65,846
90,977
24,595
66,382
90,230
25,088
65,805
24,818
65,412
24,738
64,591
25,149
64,838
63,164
63,111
64,363
63,912
64,380
63,916
63,293
17,794
45,370
63,876
17,976
45,135
18,129
46,234
17,725
46,187
17,721
46,659
17,706
46,210
17,491
45,802
17,730
46,146
26,084
26,274
26,530
26,657
26,597
26,314
26,036
7,023
19,061
6,982
19,292
6,959
19,571
6,998
19,659
6,874
19,723
7,112
19,202
7,247
18,789
26,111
7,419
18,692
34,628
34,742
34,855
34,742
34,712
34,786
34,653
35,084
6,328
28,300
6,455
28,287
6,481
28,374
6,512
28,230
6,540
28,172
6,672
28,114
6,597
28,056
6,703
28,381
20,419
20,507
20,629
20,707
20,729
21,057
5,096
15,323
5,186
15,443
5,227
15,480
5,223
15,506
5,350
15,707
21,059
5,266
21,258
5,143
15,364
14,209
14,235
14,226
14,035
13,983
1,232
12,977
1,312
12,923
1,295
12,931
1,285
12,750
12,666
1,317
85,306
85,465
8,903
76,562
85,220
8,881
85,197
8,891
76,415
76,339
8,863
76,334
5,134
5,163
5,137
470
4,664
474
4,689
473
4,664
1,138
158
1,154
160
1,152
980
994
169
983
172
981
176
969
194
1,003
14
23
31
14
9
17
32
20
12
33
20
23
16
5,039
5,544
2,631
2,408
3,245
2,299
4,623
2,016
7
7
2,444
282
2,378
291
1,958
2,033
1 Exclusive of loans and Federal funds transactions with domestic
commercial
banks.
2
All demand deposits except U.S. Govt, and domestic commercial
banks,
less
cash
items in process of collection.
3
Certificates of deposit (CD's) issued in denominations of $100,000 or
more.
4
All other time deposits issued in denominations of $100,000 or more
not included in large negotiable CD's.
Oct. l l f
Aug. 30
14
15,793
5,329
15,929
13,729
13,594
13,826
1,322
12,407
1,331
12,263
1,374
12,452
85,342
85,750
85,470
85,319
8,902
76,440
8,894
76,856
8,863
76,607
8,853
76,466
5,077
5,113
5,121
5,124
5,102
470
4,607
473
4,640
481
4,640
477
4,647
473
4,629
1,153
1,145
1,197
1,225
212
1,223
13
223
1,013
1,000
19
24
11
7
17
7
5,667
5,322
6,437
6,470
2,632
3,035
2,175
3,147
6,323
2,607
3,613
2,824
3,312
3,158
2,997
3,326
2,389
288
2,061
2,331
2,342
1,961
1,972
288
2,086
2,020
5
6
287
287
2,022
287
1,748
1,736
283
1,648
Other than commercial banks.
Domestic and foreign commercial banks, and official international
organizations.
7
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.
8 Data revised beginning July 7, 1977, due to reclassifications at one
large bank.
A24
DomesticNonfinancialStatistics • November 1978
1.31
L A R G E WEEKLY REPORTING COMMERCIAL B A N K S
Commercial and Industrial Loans
Millions of dollars
Outstanding
Industry classification
Net change during—
1978
Sept. 27
Oct. 4
Oct. 11
1978
Oct. 18
Oct. 25*>
Q2
1978
Aug.
Q3
Sept.
Oct.
Total loans classified2
1 Total
2
3
4
5
6
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products...
Other durable goods
7
8
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
11
Other nondurable goods
12 Mining, including crude petroleum
and natural gas
Trade:
13
Commodity dealers
14
Other wholesale
15
Retail
16 Transportation
17 Communication
18 Other public utilities
19 Construction
20 Services
21 All other domestic loans
22 Bankers acceptances
23 Foreign commercial and industrial
loans
111,500
112,534
113,026
112,914
113,363
5,384
1,346
210
1,791
1,863
2,732
5,388
2,747
2,522
4,045
2,755
5,333
2,793
2,516
4,045
2,727
5,384
2,813
2,521
4,034
2,672
5,398
2,795
2,497
4,005
2,664
5,449
2,588
2,444
3,966
43
177
66
181
382
-66
-16
-52
69
136
18
-82
-34
-15
48
11
64
51
129
102
-68
61
-159
-78
-79
4,154
4,383
2,521
3,468
2,480
4,205
4,407
2,504
3,511
2,440
4,232
4,466
2,463
3,336
2,447
4,276
4,347
2,493
3,299
2,446
4,340
4,273
2,474
3,295
2,433
409
565
159
154
61
-101
240
-116
-101
213
83
167
4
-115
76
2
-56
-45
69
81
186
-110
-47
-173
-47
10,577
10,594
10,584
10,563
10,594
883
172
81
124
17
1,744
9,172
8,194
5,494
1,733
5,099
5,221
13,959
1,751
9,250
8,343
5,401
1,828
5,283
5,190
14,047
1,724
9,414
8,485
5,412
1,749
5,282
5,263
14,006
1,668
9,461
8,635
5,464
1,723
5,314
5,259
14,106
1,805
9,451
8,830
5,528
1,713
5,344
5,205
14,178
-187
458
639
-147
249
38
483
1,134
-323
232
-80
53
68
89
110
520
-215
-48
-198
73
-4
-62
7
9
-22
199
132
157
55
-15
17
413
61
279
636
34
-20
245
-16
219
8,036
3,112
8,247
2,991
8,396
3,162
8,346
3,094
8,293
3,322
296
-429
282
-149
115
245
6
233
257
210
4,719
5,100
5,126
5,053
5,174
-230
166
57
84
455
62
-60
-8
-19
18
- 1
138,826
6,601
1,333
329
1,742
MEMO ITEMS:
24 Commercial paper 1included in total
classified loans
25 Total commercial and industrial
loans of all large weekly re-
63
136,710
137,791
138,434
138,295
1978
June 28
July 26
Aug. 30
1978
Sept. 27
Oct. 25p
Q2
2,116
1978
Aug.
Q3
Sept.
Oct.
"Term" loans classified3
51,293
51,905
52,618
53,019
53,762
1,926
1,726
713
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products.
Other durable goods
1,706
2,576
1,420
994
1,678
1,695
2,712
1,439
1,000
1,718
1,710
2,669
1,586
990
1,699
1,672
2,650
1,565
1,007
1,713
1,641
2,768
1,506
1,004
1,717
128
45
-69
87
106
-34
74
145
13
35
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
1,671
1,122
1,947
2,412
1,091
1,691
1,138
1,882
2,418
1,103
1,740
1,133
1,882
2,322
1,156
1,727
1,126
1,846
2,301
1,177
1,862
1,096
1,789
2,109
1,192
150
84
74
296
-78
56
4
-101
-111
86
7,760
7,660
7,757
7,862
7,852
676
26 Total
27
28
29
30
31
37 Mining, including crude petroleum
and natural gas
Trade:
38
Commodity dealers
39
Other wholesale
40
Retail
41 Transportation
42 Communication
43 Other public utilities
44 Construction
45 Services
46 All other domestic loans
47 Foreign commercial and industrial
loans
228
2,175
2,834
3,738
1,009
3,529
2,117
6,490
2,320
233
2,233
2,782
3,678
1,061
3,714
2,177
6,592
2,436
248
2,276
2,827
3,732
1,057
3,860
2,245
6,606
2,616
250
2,360
2,791
3,753
1,076
3,847
2,224
6,797
2,713
268
2,329
3,065
3,718
1,065
3,960
2,264
6,936
2,798
-24
187
275
-133
85
-293
51
609
-145
2,476
2,543
2,507
2,562
2,823
-185
1 Reported for the last Wednesday of each month.
2 Includes "term" loans, shown below.
3 Outstanding loans with an original maturity of more than 1 year and
r
401
743
15
-43
147
-10
-19
-38
-19
-21
17
14
-31
118
-59
-3
4
49
-5
-96
53
-13
-7
-36
-21
21
135
-30
-57
-192
15
102
97
105
-10
22
185
-43
15
67
318
107
307
r
393
15
43
45
54
-4
146
68
14
180
2
84
-36
21
19
-13
-21
191
97
18
-31
274
-35
-11
113
40
139
85
-36
55
261
r
86
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.
Deposits and Commercial Paper
A25
1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations
Billions of dollars, estimated daily-average balances
At commercial banks
Type of holder
1 All
3
4
5
6
holders, individuals,
corporations
partnerships,
and
Nonfinancial business
Consumer
Foreign
Other
1974
Dec.
1975
Dec.
1976
Dec.
225.0
236.9
19.0
118.8
73.3
2.3
11.7
20.1
125.1
78.0
2.4
11.3
1977
1978
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
250.1
242.3
253.8
252.7
274.4
262.5
271.2
278.8
22.3
130.2
82.6
2.7
12.4
21.6
125.1
81.6
2.4
11.6
25.9
129.2
84.1
2.5
12.2
23.7
128.5
86.2
2.5
11.8
25.0
142.9
91.0
2.5
12.9
24.5
131.5
91.8
2.4
12.3
25.7
137.7
92.9
2.4
12.4
25.9
142.5
95.0
2.5
13.1
At weekly reporting banks
7 All
holders,
individuals,
partnerships,
8 Financial business
9 Nonfinancial business
12 Other
and
1975
Dec.
1976
Dec.
1977
Dec.
124.4
128.5
15.6
69.9
29.9
2.3
6.6
17.5
69.7
31.7
2.6
7.1
NOTE.—Figures include cash items in process of collection. Estimates of
gross deposits are based on reports supplied by a sample of commercial
1978
Mar.
Apr.
May
June
July
Aug.
Sept.
139.1
131.9
135.6
134.3
136.9
139.9
137.7
139.7
18.5
76.3
34.6
2.4
7.4
18.2
68.9
35.4
2.3
7.0
17.9
70.9
37.6
2.2
7.0
18.1
70.7
36.0
2.4
7.1
19.0
71.9
36.6
2.3
7.1
19.4
73.7
37.1
2.3
7.3
19.4
72.0
36.8
2.4
7.1
18.9
74.1
37.1
2.4
7.3
banks. Types of depositors in each category are described in the June 1971
BULLETIN, p. 466.
1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Instrument
1975
Dec.
1976
Dec.
1978
1977
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
Commercial paper (seasonally adjusted)
1 All issuers
2
3
4
5
Financial companies: 1 2
Dealer-placed paper:
Total
Bank-related
Directly-placed paper:3
Total
Bank-related
6 Nonfinancial companies 4
48,459
53,025
65,209
67,476
70,289
71,213
74,536
74,900
73,960
76,990
6,202
1,762
7,250
1,900
8,871
2,132
8,889
1,993
9,670
2,078
10,314
2,217
10,327
2,442
10,617
2,633
10,868
2,935
11,279
2,622
31,374
6,892
32,500
5,959
40,496
7,102
42,903
8,153
44,326
7,995
44,664
9,258
47,315
9,585
46,594
10,030
45,510
9,634
47,791
10,383
10,883
13,275
15,842
15,684
16,293
16,235
16,894
17,689
17,582
17,920
Dollar acceptances (not seasonally adjusted)
7 Total.
Held by:
Accepting banks
Own bills
Bills bought
F.R. Banks:
Own account
Foreign correspondents.
13
Others
Based on:
14 Imports into United States.,
15 Exports from United States.
16 All other
18,727
22,523
25,654
7,555
5,899
1,435
10,442
8,769
1,673
10,434
8,915
1,519
1,126
293
991
375
9,975
3,726
4,001
11,000
26,256
26,714
28,289
27,579
28,319
27,952
7,375
6,375
1,000
7,091
6,117
974
7,286
6,365
921
7,502
6,520
983
7,244
6,345
899
7,048
6,131
917
7,647
6,461
1,186
954
362
522
550
679
1
625
568
633
1
556
10,715
13,904
18,283
18,614
18,749
20,160
19,766
20,638
19,748
4,992
4,818
12,713
6,532
5,895
13,227
6,979
6,034
13,168
7,108
6,216
12,932
7,027
6,494
13,193
7,578
6,906
13,805
7,415
6,565
13,599
7,885
6,558
13,876
7,957
6,350
13,644
1
Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
2 Includes all financial company paper sold by dealers in the open
market.
3 As reported by financial companies that place their paper directly
with investors.
4
Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services.
A26
DomesticNonfinancialStatistics • November 1978
1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans
Per cent per annum
Average
rate
Month
Effective date
1977—Aug. 22.
Sept. 16.
Oct.
7.
24.
Rate
7
m
71/2
m
1978—Jan. 10.
May
5
26
m
m
Effective date
1978—June 16,
30
Aug. 31,
Sept. 15,
28,
Oct.
13
27,
Rate
834
9
91/4
91/2
93/4
10
10%
6.25
6.25
6.25
6.25
6.41
6.75
6.75
6.83
7.13
7.52
7.75
7.75
1977—Jan..
Feb.
Mar,
Apr.
May.
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.
Month
Average
rate
1978—Jan
Feb
7.93
8.00
8.00
8.00
8.27
8.63
9.00
9.01
9.41
9.94
July
1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-12, 1978
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
50-99
25-49
100-499
500-999
1,000
and over
Short-term commercial and industrial loans
1
2
3
4
5
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (per cent per annum)
Interquartile range 1
Percentage of amount of loans:
6
With floating rate
7
Made under commitment
7,198,593
1,049,321
559,214
638,138
1,899,754
187,673
147,855
16,858
10,683
10,445
3.0
2.8
3.4
2.4
3.0
9.97
10.45
10.19
10.30
10.19
9 . 3 1 - 1 0 . 4 7 9.25-11.65 9 . 3 4 - 1 0 . 5 0 9.73-10.75 9 . 3 8 - 1 0 . 6 4
532,767
863
3.3
9.93
9.31-10.43
2,519,400
970
3.1
9.47
9.00-9.88
43.2
31.2
57.4
58.5
60.1
54.9
48.3
38.1
32.0
15.2
36.6
21.0
46.5
27.5
Long-term commercial and industrial loans
8
9
10
11
12
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest
rate (per cent per annum)
Interquartile range 1
Percentage of amount of loans:
13
With floating rate
14
Made under commitment
1,417,990
22,251
45.2
10.20
9.38-11.00
293,717
19,735
33.7
10.66
9.89-11.57
65.5
51.3
30.1
25.0
99,274
669,452
355,547
150
148
2,218
57.7
47.4
47.2
9.83
9.96
10.35
9.38-11.02 9.25-10.50 9.00-10.48
62.3
35.7
55.1
50.6
84.3
71.2
Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest
rate (per cent per annum).
Interquartile range 1
Percentage of amount of loans:
With floating rate
Secured by real estate
Made under commitment
Type of construction: 1 - t o 4-family
Multifamily
Nonresidential
228,314
155,635
381,591
1,177,413
144,262
22,364
1,490
2,278
4,546
30,901
7.2
8.4
10.7
9.6
3.8
10.33
11.05
10.27
10.43
10.66
9 . 9 5 - 1 1 . 0 2 9.27-10.87 10.00-11.00 10.00-12.73 10.03-10.70
267,611
223
9.6
10.23
9 . 2 7 - 11.30
80.2
97.1
43.5
20.2
7.8
71.9
74.3
90.3
81.3
14.5
18.8
66.8
49.3
92.9
55.2
42.1
8.5
49.4
All
sizes
12.3
85.4
49.7
77.2
1.2
21.6
1-9
13.0
97.1
32.7
71.3
10.0
18.8
10-24
18.3
94.5
68.2
64.9
1.7
33.4
25-49
50-99
100-249
250
and over
Loans to farmers
26
27
28
29
30
31
32
33
34
35
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (per cent per annum).
Interquartile range 1
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
824,790
63,389
6.6
9.62
9.13-10.21
159,057
45,994
7.5
9.33
8.77-9.73
9.49
9.47
9.66
9.63
9.87
9.13
9.36
9.27
9.52
9.61
1 Interest rate range that covers the middle 50 per cent of the total
dollar amount of loans made.
2
Fewer than three sample loans.
157,111
150,908
4,942
10,109
10.2
6.6
9.46
9.33
8.77-9.73 9.00-10.00
9.11
9.44
9.44
9.53
9.22
9.37
10.03
9.26
9.86
9.67
82,007
92,298
183,409
1,338
689
317
3.9
6.1
5.8
10.15
9.92
9.51
9 . 2 0 - 9 . 8 4 9.25-10.38 9 . 5 4 - 1 0 . 9 7
9.48
8.86
9.81
9.41
9.77
9.60
10.19
9.96
(2)
10.39
9.91
9.76
10.41
(2)
10.28
NOTE.—For more detail, see the Board's 416 (G.14) statistical release,
Securities Markets
All
1.36 INTEREST RATES Money and Capital Markets
Averages, per cent per annum
1978, week ending—
1978
1975
Instrument
1976
1977
July
Aug.
Sept.
Oct.
Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28
Money market rates
1 Federal funds 1 .
5.82
5.05
5.54
7.81
8.04
8.45
8.96
8.62
8.85
8.71
8.78
9.24
Prime commercial paper 2>3
90- to 119-day
4- to 6-month
6.26
6.33
5.24
5.35
5.54
5.60
7.85
7.91
7.83
7.90
8.39
8.44
8.98
9.03
8.56
8.60
8.70
8.75
8.92
8.97
9.02
9.07
9.13
9.19
Finance company paper, directly placed,
3- to 6-month3.4
6.16
5.22
5.49
7.66
7.65
8.18
8.78
8.37
8.54
8.71
8.80
8.92
5 Prime bankers acceptances, 90-day 3.5
6.30
5.19
5.59
8.02
7.98
8.54
9.32
8.82
8.89
9.06
9.33
9.59
Large negotiable certificates of 6 deposit
3-month, secondary market
3-month, primary market 7
6.43
5.26
5.15
5.58
5 52
9.00
8.00
8.05
7.86
8.61
8.42
9.14
9.17
8.83
8.65
8.95
8.75
9.15
9.13
9.26
9.38
9.64
9.40
6.97
5.57
6.05
8.52
8.48
9.12
10.12
9.41
9.58
9.74
9.91
10.31
5.80
6.11
6.30
4.98
5.26
5.52
5.27
5.53
5.71
7.01
7.44
7.79
7.08
7.37
7.73
7.85
7.99
8.01
7.99
8.55
8.45
7.96
8.28
8.16
8.14
8.39
8.23
7.98
8.39
8.28
7.89
8.59
8.46
7.70
8.57
8.53
5.838
6.122
4.989
5.266
5.265
5.510
7.074
7.471
7.036
7.363
7.836
7.948
8.132
8.493
8.106
8.276
8.161
8.377
8.256
8.422
8.209
8.561
7.900
8.612
6
7
8 Euro-dollar deposits, 3-month *
U.S. Government securities
Bills: 3.9
Market yields:
3-month
6-month
1-year
Rates on new issue:io
3-month
6-month
Capital market rates
Government notes and bonds
U.S. Treasury
Constant maturities: 11
1-yea r
2-yea r
3-yea r
5-year
7-year
10-year
20-year
30-year
22
23
24
25
26
Notes and bonds maturing in 3 to 5 years
Over 10 years (long-term)...
State and local: 13
Moody's series:
Aaa
Baa
Bond Buyer series
14
.
Corporate bonds 1 5
Seasoned issues
All industries
By rating groups:
Aaa
Aa
A
Baa
32
33
34
35
Aaa utility bonds: 16
New issue
Recently offered issues.
Dividend/price ratio
Preferred stocks.
Common stocks.
6.76
5.88
7.49
7.77
7.90
7.99
8.19
6.77
7.18
7.42
7.61
7.86
6.09
6.45
6.69
6.99
7.23
7.42
7.67
8.39
8.49
8.54
8.54
8.55
8.64
8.69
8.65
8.31
8.37
8.33
8.33
8.38
8.41
8.45
8.47
8.64
8.57
8.41
8.43
8.42
8.42
8.47
8.47
9.14
8.85
8.62
8.61
8.64
8.64
8.69
8.67
8.81
8.73
8.49
8.52
8.54
8.55
8.61
8.59
8.88
8.69
8.50
8.52
8.56
8.58
8.64
8.63
8.93
8.70
8.47
8.49
8.52
8.54
8.61
8.60
9.17
8.80
8.57
8.59
8.63
8.62
8.67
8.66
9.24
8.96
8.69
8.66
8.69
8.69
8.73
8.70
7.55
6.98
6.94
6.78
6.85
7.06
8.54
8.09
8.31
7.87
8.38
7.82
8.61
8.07
8.48
7.94
8.48
7.99
8.47
8.00
8.56
8.06
8.69
8.12
6.42
7.62
7.05
5.66
7.49
6.64
5.20
6.12
5.68
5.80
6.45
6.28
5.56
6.54
6.12
5.53
6.63
6.09
5.53
6.18
6.13
5.60
6.30
6.09
5.50
6.10
6.07
5.50
6.30
6.10
5.50
6.10
6.14
5.60
6.20
6.21
9.57
9.01
8.43
9.22
9.08
9.08
9.20
9.08
9.10
9.15
9.21
9.29
8.83
9.17
9.65
10.61
8.43
8.75
9.09
9.75
8.02
8.24
8.49
8.97
8.88
9.07
9.33
9.60
8.69
8.96
9.18
9.48
8.78
8.96
9.11
9.47
8.89
9.07
9.26
9.59
8.77
8.97
9.11
9.46
8.81
8.97
9.14
9.48
8.85
9.04
9.19
9.52
8.88
9.08
9.27
9.60
8.94
9.14
9.38
9.69
9.40
9.41
8.48
8.49
8.19
8.19
9.14
9.18
8.82
8.91
8.86
8.86
9.17
9.13
9.06
9.00
9.04
9.04
9.03
9.19
9.15
9.23
9.24
8.38
4.31
7.97
3.77
7.60
4.56
8.42
5.25
8.26
4.93
8.24
4.97
8.29
5.11
8.22
5.08
8.19
5.02
8.24
4.91
8.32
5.16
8.39
5.33
1
Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
2
Beginning Nov. 1977, unweighted average of offering rates quoted
by five dealers. Previously, most representative rate quoted by those
dealers.
3
Yields are quoted on a bank-discount basis.
4
Averages of the most representative daily offering rates published by
finance companies for varying maturities in this range.
5 Average of the midpoint of the range of daily dealer closing rates
offered for domestic issues.
6 Weekly figures (week ending Wednesday) are 7-day averages of the
daily midpoints as determined from the range of offering rates; monthly
figures are averages of total days in the month. Beginning Apr. 5, 1978,
weekly figures are simple averages of offering rates.
? Posted rates, which are the annual interest rates most often quoted
on new offerings of negotiable CD's in denominations of $100,000 or
more by large New York City banks. Rates prior to 1976 not available.
Weekly figures are for Wednesday dates.
s Averages of daily quotations for the week ending Wednesday.
9 Except for new bill issues, yields are computed from daily closing
bid prices.
I
o Rates are recorded in the week in which bills are issued.
I
I Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
12 Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. "Long-term" includes
all bonds neither due nor callable in less than 10 years, including a number of very low yielding "flower" bonds.
1
3 General obligations only, based on figures for Thursday, from
Moody's
Investors Service.
14
Twenty issues of mixed quality.
15
Averages of daily figures from Moody's Investors Service.
16 Compilation of the Board of Governors of the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields are
based on quotations on date of offering; those on recently offered issues
(included only for first 4 weeks after termination of underwriter price
restrictions), on Friday close-of-business quotations.
A28
DomesticNonfinancialStatistics • November 1978
1.37 STOCK MARKET Selected Statistics
1978
1975
Indicator
1976
1977
Apr.
May
June
July
Aug.
Sept.
Oct.
58.53
64.07
49.45
40.20
63.28
58.58
64.23
50.19
39.82
63.22
56.40
61.60
46.70
39.44
60.42
Prices and trading (averages of daily figures)
Common stock prices
53.67
57.84
41.07
40.91
55.23
54.83
59.63
44.19
39.41
58.31
54.61
59.35
44.74
39.28
57.97
54.45
60.44
39.57
36.97
52.94
6 Standard & Poor's Corporation (1941-43 = 10) *..
85.17
102.01
98.18
92.71
97.41
97.66
97.19
103.92
103.86
100.58
7 American Stock Exchange (Aug. 31,1973 = 100).
83.15
101.63
116.18
133.67
142.26
147.64
149.87
162.52
170.95
160.14
18,568
2,150
21,189
2,565
20,936
2,514
34,780
4,151
35,261
4,869
30,514
4,220
27,074
3,496
37,603
5,526
33,612
5,740
31,020
4,544
3
4
8
9
Transportation
Utility
Volume of trading (thousands of shares)2
New York Stock Exchange
American Stock Exchange
51.75
55.48
41.19
39.69
55.04
54.49
59.14
44.21
39.47
57.95
45.73
51.88
30.73
31.45
46.62
1 New York Stock Exchange (Dec. 31,1965 = 50).
Customer financing (end-of-period balances, in millions of dollars)
11
12
13
14
15
16
17
18
10 Regulated margin3 credit at brokers/dealers
and banks
Brokers total.
.
Margin stock 4
Convertible bonds .
. . .
Subscription issues
Banks total..
.
Margin stocks. . .
Convertible bonds ..
Subscription issues
6,500
5,540
5,390
147
3
960
909
36
15
9,011
8,166
7,960
204
2
845
800
30
15
10,866
9,993
9,7 40
250
3
873
827
30
16
11,424
10,510
10,260
248
2
914
882
25
7
19 Unregulated nonmargin stock credit at banks 5 ...
2,281
2,283
2,568
2,560
MEMO: Free credit balances at brokers6
20
Margin-account
21
Cash-account
475
1,525
585
1,855
640
2,060
715
2,170
10,910
10,660
245
1
11,332
11,090
242
ii,i9o
11,740
12,400
755
2,395
700
2,300
710
2,295
795
2,555
825
2,655
Margin-account debt at brokers (percentage distribution, end of period)
22 Total
23
24
25
26
27
28
By equity class (in per cent):7
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
24.0
28.8
22.3
11.6
6.9
5.3
12.0
23.0
35.0
15.0
8.7
6.0
18.0
36.0
23.0
11.0
6.0
5.0
15.0
32.0
27.0
13.0
7.0
6.0
15.0
33.0
26.0
13.0
7.0
6.0
16.0
34.0
26.0
12.0
7.0
5.0
13.0
34.0
25.0
14.0
8.0
6.0
12.0
34.0
23.0
16.0
9.0
6.0
15.0
36.0
23.0
13.0
7.0
6.0
Special miscellaneous-account balances at brokers (end of period)
8
29 Total balances (millions of dollars)
Distribution by equity status (per cent)
30 Net credit status
Debit status, equity of—
31
60 per cent or more
32
Less than 60 per cent
1
7,290
8,776
9,910
10,212
10,516
43.8
41.3
43.4
41.9
42.6
40.8
15.4
47.8
10.9
44.9
11.7
46.2
11.9
46.0
11.4
1
Effective July 1976, includes a new financial group, banks and insurance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility
(formerly 60), and 40 financial.
2
Based on trading for a S^-hour day.
3 Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended by brokers is end-of-month data for member firms of
the New York Stock Exchange; June data for banks are universe totals;
all other data for banks are estimates for all commercial banks based on
data from a sample of reporting banks.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
4 A distribution of this total by equity class is shown on lines 23-28.
5 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System's list of over-thecounter margin stocks. At banks, loans to purchase or carry nonmargin
stocks are unregulated; at brokers, such stocks have no loan value.
6
Free credit balances are in accounts with no unfulfilled commitments
to 7the brokers and are subject to withdrawal by customers on demand.
Each customer's equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
8 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.
NOTE.—For table on "Margin Requirements" see p. A-10, Table 1.161.
Thrift Institutions
A29
1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1975
1976
1978
1977
Jan.
Account
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.P
Savings and loan associations9
1 Assets
338,233 391,907 459,241 464,238 469,685 475,281 480,947 487,052 491,576 498,301 504,298 508,956
2 Mortgages
3 Cash and investment
securities1
4 Other
278,590 323,005 381,163 384,182 387,591 392,428 397,284 402,305 407,965 411,956 416,677 420,947
5 Liabilities and net worth
338,233 391,907 459,241 464,238 469,685 475,281 480,947 487,052 491,576 498,301 504,298 508,956
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other
30,853
28,790
35,724
33,178
39,150
38,928
40,309
39,747
41,599
40,495
41,823
41,030
41,853
41,810
42,444
42,303
41,505
42,106
43,627
42,718
44,188
43,433
44,026
43,983
285,743 335,912 386,800 389,544 391,840 398,992 399,550 401,930 408,586 411,660 An,912 420,378
27,840 27,943
28,714
34,270
35,730
20,634
19,083
29,323
31,904
32,759
37,219
38,624
17,524 15,708 19,945 20,129 20,602 21,030 22,692 23,323 24,875 26,151 27,363 28,668
7,814
8,112
9,395
9,579
7,895
9,212
9,436
9,856
3,375
8,293
9,956
3,110
9,902 10,414 10,937 11,386 11,632 11,540 11,422 11,221
9,911
6,840
9,828
5,128
8,074
6,949
9,506 11,479 13,462 10,518 12,186 14,239 10,046 11,972 13,906 10,664
12 Net worth 2
19,779
21,998
25,184
25,444
25,767
26,034
26,370
26,738
27,042
27,399
27,779
28,069
13 MEMO : Mortgage loan commitments outstanding 3 ..
10,673
14,826
19,875
19,523
20,614
22,308
23,398
23,939
22,927
22,393
22,047
21,669
Mutual savings banks
14 Assets
15
16
17
18
19
20
21
22 Liabilities
23
24
25
26
27
28
29
30
121,056 134,812 147,287 148,511 149,528 150,962 151,383 152,202 153,158 154,290 155,185
Loans:
77,221
Mortgage
4,023
Other
Securities:
4,740
U.S. Government
1,545
State and local government.
27,992
Corporate and other 4
2,330
Cash
3,205
Other assets
Deposits
Regular: 5
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts....
MEMO: Mortgage loan commitments outstanding 6..
81,630
5,183
88,195
6,210
88,905
6,803
89,247
7,398
89,800
7,782
90,346
7,422
90,915
7,907
91,535
7,793
92,217
8,240
92,853
8,411
5,840
2,417
33,793
2,355
3,593
5,895
2,828
37,918
2,401
3,839
5,785
2,886
38,360
1,889
3,882
5,737
2,808
38,605
1,838
3,895
5,677
2,850
38,964
1,990
3,899
5,670
2,915
39,146
1,940
3,945
5,491
2,994
39,225
1,798
3,873
5,268
3,007
39,447
2,188
3,921
5,225
3,024
39,673
2,033
3,879
5,168
3,096
39,624
2,079
3,954
121,056 134,812 147,287 148,511 149,528 150,962 151,383 152,202 153,158 154,290 155,185
109,873 122,877 134,017 134,771 135,200 136,997 136,931 137,307 138,674 139,093 139,274
109,291 121,961 132,744 133,370 133,846 135,558 135,349 135,785 137,062 137,403 137,664
69,653 74,535 78,005 77,754 77,837 78,783 78,170 78,273 77,269 76,053 75,515
39,639 47,426 54,739 55,616 56,009 56,775 57,179 57,512 59,793 61,350 62,148
1,401
1,690
1,611
582
1,272
1,354
1,439
1,582
1,521
916
1,612
3,676
4,658
5,268
2,755
3,292
4,155
3,735
4,152
4,481
2,884
3,996
8,428
9,978 10,064 10,174 10,230 10,301 10,414 10,487 10,538 10,642
9,052
1,803
2,439
4,066
3,998
4,027
4,185
4,342
4,606
4,958
4,872
4,789
Life insurance companies1
31 Assets
32
33
34
35
36
37
38
Securities:
Government
United States 7.
State and local,
Foreign 8
Business
Bonds
Stocks
39
40
41
42
Mortgages
Real estate
Policy loans
Other assets
289,304 321,552 351,722 354,020 356,266 359,110 363,269 366,938 369,879 374,415 378,124
19,714
19,563
19,692
17,942
19,401
19,447
19,489
19,573
19,330
19,553
13,758
5,376
5,155
5,373
5,368
4,984
5,006
5,206
5,229
5,087
5,315
4,736
6,102
5,884
6,071
5,594
5,943
5,925
5,915
6,041
5,923
6,051
4,508
8,236
8,524
8,248
6,980
8,474
8,516
8,368
8,303
8,320
8,187
4,514
194,620
135,317 157,246 175,654 177,864 179,547 181,441 184,917 187,126 188,500 192,112
107,256 122,984 141,891 145,355 147,509 148,849 150,419 152,267 153,812 156,207 157,888
28,061 34,262 33,763 32,509 32,038 32,592 34,498 34,859 34,688 35,905 36,732
89,167
9,621
24,467
16,971
91,552
10,476
25,834
18,502
96,848
11,060
27,556
21,051
97,148
11,138
27,693
20,463
97,475
11,218
27,839
20,495
98,022
11,213
28,024
20,837
98,585
11,269
28,246
20,922
99,190 100,040 100,596 101,602
11,537 11,540 11,562 11,538
28,431 28,649 28,843 29,067
21,165 21,749 21,855 21,734
Credit unions
44
45
43 Total assets/liabilities and
capital
Federal
State
38,037
20,209
17,828
45,225
24,396
20,829
54,084
29,574
24,510
53,982
29,579
24,403
54,989
30,236
24,753
56,703
31,274
25,429
56,827
31,255
25,572
58,018
31,925
26,093
59,381
32,793
26,588
59,152
32,679
26,473
60,141
33,315
26,826
46 Loans outstanding
47
Federal
48
State
28,169
14,869
13,300
34,384
18,311
16,073
42,055
22,717
19,338
41,876
22,590
19,286
42,331
22,865
19,466
43,379
23,555
19,824
44,133
23,919
20,214
45,506
24,732
20,774
47,118
25,762
21,356
47,620
25,970
21,650
49,103
26,840
22,263
49 Savings
50 Federal (shares)
51
State (shares and deposits),
33,013
17,530
15,483
39,173
21,130
18,043
46,832
25,849
20,983
47,317
26,076
21,241
48,093
26,569
21,524
49,706
27,514
22,192
49,931
27,592
22,339
50,789
28,128
22,661
52,076
28,903
23,173
51,551
28,627
22,924
51,772
28,779
22,993
For notes see bottom of page A30.
A30
DomesticNonfinancialStatistics • November 1978
1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. Budget
1
2
3
4
5
6
7
Outlays1
Surplus, or deficit (—)
Trust funds 2
Federal funds
Off-budget entities surplus, or
deficit ( - )
Federal Financing Bank outlays. . .
Other3
U.S. Budget plus off-budget, including Federal Financing Bank
Surplus, or deficit (—)
Financed by:
Borrowing from the public
9
Cash and monetary assets (de10
crease, or increase (—))
Other 4
11
8
Transition
quarter
(JulySept.
1976)
Fiscal
year
1977
Fiscal
year
1978
1977
1978
HI
H2
HI
1978
July
Aug.
Sept.
81,772
94,742
-12,970
-1,952
-11,018
357,762
402,803
-45,041
7,833
-52,874
401,997
450,758
-48,761
12,693
-61,454
190,278
200,350
-10,072
7,332
-17,405
175,820
216,781
-40,961
4,293
— 45,254
210,650
222,518
-11,870
4,334
-16,204
29,194
36,426
-7,232
-2,810
-4,421
35,040
39,572
-4,532
3,890
-8,422
42,591
38,935
3,655
5,922
-2,267
-2,575
793
-8,415
-269
-10,660
354
-2,075
-2,086
-6,663
428
-5,105
-790
-824
72
-1,056
-525
-753
-29
-14,752
-53,725
-59,067
-14,233
-47,196
-17,765
-7,984
-6,113
-2,873
18,027
53,516
59,106
16,480
40,284
23,374
3,195
9,039
2,821
-2,899
-373
-2,238
2,440
-3,023
2,984
-4,666
2,420
4,317
2,597
-5,098
-511
5,824
-7,035
-956
-1,970
-9,731
9,783
17,418
13,299
4,119
19,104
15,740
3,364
22,444
16,647
5,797
16,255
15,183
1.072
12,274
7,114
5,160
17,526
11,614
5,912
13,078
12,068
1,010
13,078
12,068
1,010
22,444
16,647
5,797
MEMO ITEMS :
12 Treasury operating balance (level, end
13
14
F.R. Banks
Tax and loan accounts
1 Effective June 1978, earned income credit payments in excess of
an individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2 Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund, Rural Telephone Bank;
and Housing for the Elderly or Handicapped Fund until October 1977.
4
Includes public debt accrued interest payable to the public; deposit
funds; miscellaneous liability (including checks outstanding) and asset
accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment.
SOURCE.—"Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year
1978.
NOTES TO TABLE 1.38
1 Holdings of stock of the Federal home loan banks are included in
"other
assets."
2
Includes net undistributed income, which is accrued by most, but not
all,3 associations.
Excludes figures for loans in process, which are shown as a liability.
4
Includes securities of foreign governments and international organizations
and nonguaranteed issues of U.S. Govt, agencies.
5
Excludes checking, club, and school accounts.
6 Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Assn. of the State of
New
York.
7
Direct and guaranteed obligations. Excludes Federal agency issues
not& guaranteed, which are shown in this table under "business" securities.
Issues of foreign governments and their subdivisions and bonds of the
International
Bank for Reconstruction and Development.
9
Data reflect benchmark revisions back to 1977.
10
Data for 1977 and 1978 have been revised by the American Council
of Life Insurance.
NOTE.—Savings and loan associations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of Federally insured associations and annual reports of other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States. Data are reported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the American Council of Life
Insurance for all life insurance companies in the United States. Annual
figures are annual-statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total, in
"other assets."
Credit unions: Estimates by the National Credit Union Administration
for a group of Federal and State-chartered credit unions that account for
about 30 per cent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.
Federal Finance
A31
1.40 U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Source or type
Transition
quarter
(JulySept.
1976)
Calendar year
Fiscal
year
1977
Fiscal
year
1978
1977
HI
1978
H2
HI
1978
July
Aug.
Sept.
Receipts
1 All sources1
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign
Fund
5
Nonwithheld
6
Refunds 1
7 Corporation income taxes:
8
Gross receipts
9
Refunds
10 Social insurance taxes and contributions, net
11
Payroll employment
taxes and
contributions 2
12
Self-employment taxes
and
contributions 3
13
Unemployment insurance
14
Other net receipts 4
15 Excise taxes
16 Customs deposits
17 Estate and gift taxes
18 Miscellaneous receipts 5
81,772
357,762
401,997
190,278
175,820
210,650
29,194
35,040
42,591
38,800
32,949
157,626
144,820
180,988
165,215
78,816
73,303
90,336
82,784
14,590
14,182
14,784
14,370
20,883
14,843
1
6,809
958
37
42,062
29,293
39
47,804
32,070
37
32,959
27,482
82,911
75,480
j
9,397
1,967
36
37,584
30,068
2
1,088
682
868
454
6,354
314
9,808
1,348
60,057
5,164
65,380
5,428
37,133
2,324
25,121
2,819
38,496
2,782
2,127
342
1,509
388
10,153
400
25 J60
108,683
58,099
52,347
66,191
9,518
15,587
8,515
21,534
88,196
99,626
45,242
44,384
51,668
7,960
12,191
7,485
269
2,698
1,259
4,014
11,312
5,162
A,261
13,850
5,668
3,687
6,575
2,595
316
4,936
2,711
3,892
7,800
2,831
1,094
464
2,912
484
369
162
499
4,473
1,212
1,455
1,612
17,548
5,150
7,327
6,536
18,376
6,573
5,285
7,413
8,432
2,519
4,332
3,269
9,284
2,848
2,837
3,292
8,835
3,320
2,587
3,667
1,707
596
407
590
1,591
681
515
760
1,637
610
445
747
123,410
Outlays 8
19 All types i
94,742
402,803
450,758
200,350
216,781
222,518
36,426
39,572
38,935
20 National defense
21 International affairs
22 General science, space, and
technology
23 Energy
24 Natural resources and environment,
25 Agriculture
22,307
2,180
97,501
4,831
105,192
6,083
48,721
2,522
50,873
2,896
52,979
2,904
8,495
231
9,742
987
9,006
387
1,161
794
2,532
584
4,677
4,172
10,000
5,526
4,721
6,045
11,022
7,618
2,108
2,318
2,628
5,477
2,395
2,487
4,959
2,353
368
548
854
183
405
620
982
386
403
933
1,391
283
1,391
3,306
-31
14,636
3,340
15,461
-946
7,723
460
1,415
-110
1,288
467
1,572
26 Commerce and housing credit
27 Transportation
28 Community and regional
development
29 Education, training, employment,
and social services
30 Health
31 Income security1
32 Veterans benefits and services
33 Administration of justice
34 General government
35 General-purpose fiscal assistance...,
36 Interest 6
37 Undistributed offsetting receipts 6 , 7
1,340
6,283
11,255
3,149
4,924
5,928
859
1,218
1,439
5,162
8,720
32,795
20,985
38,785
137,905
25,889
44,529
145,640
9,775
18,654
70,785
10,800
19,422
71,081
12,792
21,391
75,201
2,099
3,597
11,641
2,716
4,039
12,266
2,263
3,595
12,756
3,962
859
878
2,092
7,246
-2,567
18,038
3.600
3,357
9,499
38,092
-15,053
18,987
3,786
3,544
9,377
44,040
-15,772
9,382
1,783
1,587
4,333
18,927
-6,803
9,864
1,723
1,749
4,926
19,962
-8,506
9,603
1,946
1,803
4,665
22,280
-7,945
610
303
186
1,964
3,013
-402
1,529
317
340
36
3,539
-729
1,442
324
335
127
3,306
-1,089
1
Effective June 1978, earned income credit payments in excess of an
individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2 Old-age, disability and hospital insurance, and Railroad Retirement
accounts.
3
Old-age, disability, and hospital insurance.
4
Supplementary medical insurance premiums, Federal employee retirement
contributions, and Civil Service retirement and disability fund.
5
Deposits of earnings by F.R. Banks and other miscellaneous receipts.
« Effective September 1976, "Interest" and "Undistributed Offsetting
Receipts" reflect the accounting conversion for the interest on special
issues for U.S. Govt, accounts from an accrual basis to a cash basis.
7
Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. Govt, contributions for employee retirement.
8 For some types of outlays the categories are new or represent regroupings; data for these categories are from the Budget of the United
States Government, Fiscal Year 1979; data are not available for half years
or for months prior to February 1978.
Two categories have been renamed: "Law enforcement and justice"
has become "Administration of justice" and "Revenue sharing and
general purpose fiscal assistance" has become "General purpose fiscal
assistance."
In addition, for some categories the table includes revisions in figures
published earlier.
A32
DomesticNonfinancialStatistics • November 1978
1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1976
1975
1977
1978
Item
Dec. 31
June 30
Sept. 30
Dec. 31
June 30
1 Federal debt outstanding
587.6
631.9
2 646.4
665.5
685.2
709.1
2 Public debt securities
3 Held by public
4
Held by agencies
576.6
437.3
139.3
620.4
470.8
149.6
634.7
488.6
146.1
653.5
506.4
147.1
674.4
523.2
151.2
698.8
543.4
155.5
10.9
8.9
2.0
11.5
9.5
2.0
11.6
29.7
1.9
12.0
10.0
1.9
10.8
9.0
1.8
10.3
8.5
1.8
6
7
Held by public
Held by agencies. . . ,
Sept. 30
Dec. 31
Mar. 31
June 30
729.2
747.8
758.8
718.9
564.1
154.8
738.0
585.2
152.7
749.0
587.9
161.1
10.2
8.4
1.8
9.9
8.1
1.8
9.8
8.0
1.8
577.8
621.6
635.8
654.7
675.6
700.0
720.1
739.1
750.2
9 Public debt securities
10 Other debt i
576.0
1.7
619.8
1.7
634.1
1.7
652.9
1.7
673.8
1.7
698.2
1.7
718.3
1.7
737.3
1.8
748.4
1.8
11 MEMO: Statutory debt limit
595.0
636.0
636.0
682.0
700.0
700.0
752.0
752.0
752.0
8 Debt subject to statutory limit
1 Includes guaranteed debt of Govt, agencies, specified participation
certificates, notes to international lending organizations, and District of
Columbia
stadium bonds.
2
Gross Federal debt and agency debt held by the public increased
$0.5 billion due to a retroactive reclassification of the Export-Import Bank
certificates of beneficial interest from loan asset sales to debt, effective
July 1, 1975.
NOTE.—Data from Treasury Bulletin (U.S. Treasury Dept.).
1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership
Billions of dollars, end of period
Type and holder
1974
1975
1976
1978
1977
June
July
Aug.
Sept.
492.7
576.6
653.5
718.9
749.0
750.5
764.4
771.5
491.6
282.9
119.7
129.8
33.4
208.7
2.3
.6
22.8
63.8
119.1
575.7
363.2
157.5
167.1
38.6
212.5
2.3
21.6
67.9
119.4
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
77.0
139.8
748.0
477.7
159.8
265.3
52.6
270.3
2.2
20.6
21.5
79.4
146.4
749.5
481.0
160.1
266.6
54.4
268.4
2.2
20.8
20.8
79.7
144.7
763.4
485.6
160.6
268.5
56.4
227.8
2.2
24.2
22.2
79.9
149.0
767.0
485.2
160.9
267.9
56.4
281.8
2.2
24.2
21.7
80.2
153.3
1.1
1.0
1.1
3.7
1.0
1.0
4.6
138.2
80.5
'139.1
r
89.8
147.1
r
97.0
154.8
102.5
161.1
110.1
159.3
108.9
163.7
111.7
271.0
55.6
2.5
6.2
409.5
103.8
5.9
r 12.7
29.2
349.4
85.1
4.5
9.5
20.2
34.2
41.6
461.3
101.4
5.9
15.1
22.7
55.2
477.8
98.5
5.5
14.7
19.0
62.7
482.3
97.7
5.6
15.0
20.0
61.7
489.0
95.8
5.5
15.1
22.4
69.2
22
23
Individuals:
Savings bonds
Other securities
63.4
21.5
67.3
24.0
72.0
28.8
76.7
28.6
79.1
29.0
79.4
29.0
79.7
29.2
24
25
Foreign and international6
Other miscellaneous investors7
58.8
22.8
66.5
38.0
78.1
38.9
109.6
46.1
119.3
r
50.0
120.5
53.4
121.2
50.9
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
By type:
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable1
Convertible bonds 2
State and local government series
Foreign issues3
Savings bonds and notes 4
Government account series
13 Non-interest-bearing debt
By holder:5
14 U.S. Government agencies and trust funds
15 Federal Reserve Banks
16
17
18
19
20
21
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other corporations
State and local governments
11.0
1.2
1
Includes (not shown separately): Securities issued to the Rural
Electrification Administration and to State and local governments, depositary
bonds, retirement plan bonds, and individual retirement bonds.
2
These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner's option for 1 Vi
per cent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes
category above.
3
Nonmarketable foreign government dollar-denominated and foreign
currency
denominated series.
4
Held almost entirely by U.S. Govt, agencies and trust funds.
5 Data for F.R. Banks and U.S. Govt, agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.
r
27.7
6
Consists of the investments of foreign balances and international
accounts in the United States. Beginning with July 1974, the figures exclude
non-interest-bearing
notes issued to the International Monetary Fund.
7
Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain Govt, deposit
accounts, and Govt.-sponsored agencies.
NOTE.—Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement of the Public Debt of
the United States (U.S. Treasury Dept.); data by hplder from Treasury
Bulletin.
Federal Finance
A33
1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity
Par value; millions of dollars, end of period
Type of holder
1976
1978
1977
July
1976
July
Aug.
1 All holders
4 Private investors
5 Commercial banks
6
Mutual savings banks
7
Insurance companies
8
Nonfinancial corporations
9
Savings and loan associations
10 State and local governments
11 All others
421,276
459,927
481,041
485,557
141,132
151,264
175,250
171,890
16,485
96,971
14,420
101,191
13,902
108,885
13,898
111,739
6,141
31,249
4,788
27,012
4,856
31,377
3,705
31,722
307,820
78,262
4,072
10,284
14,193
4,576
12,252
184,182
344,315
75,363
4,379
12,378
9,474
4,817
15,495
222,409
358,255
70,901
3,869
11,780
6,839
4,359
14,543
245,964
359,919
70,817
3,789
11,852
9,776
4,369
19,394
239,922
103,742
40,005
2,010
3,885
2,618
2,360
2,543
50,321
119,464
38,691
2,112
A,129
3,183
2,368
3,875
64,505
139,017
42,050
2,179
5,327
3,707
2,421
4,549
78,784
136,462
41,594
2,115
5,119
4,819
2,470
5,150
75,195
5 to 10 years
Total, within 1 year
12 All holders
13 U.S. Government agencies and trust funds
14 Federal Reserve banks
15 Private investors
16 Commercial banks
17 Mutual savings banks
18 Insurance companies
19 Nonfinancial corporations
20
Savings and loan associations
21
State and local governments
22
All others
211,035
230,691
221,343
222,329
43,045
45,328
44,441
49,274
2,012
51,569
1,906
56,702
1,145
56,580
2,293
56,524
2,879
9,148
2,129
10,404
1,987
11,880
1,987
13,684
157,454
31,213
1,214
2,191
11,009
1,984
6,622
103,220
172,084
29 All
1,400
2,398
5,770
2,236
7,917
122,885
163,619
19,993
896
1,557
2,637
1,744
5,662
131,129
163,512
19,334
860
1,624
4,212
1,713
8,392
127,377
31,018
6,278
567
2,546
370
155
1,465
19,637
32,795
6,162
584
3,204
307
143
1,283
21,112
30,573
6,714
526
2,707
222
122
1,230
19,052
33,603
7,630
551
2,869
376
113
1,521
20,543
10 to 20 years
Bills, within 1 year
23 All holders
24 U.S. Government agencies and trust funds
25 Federal Reserve banks
26 Private investors
27
Commercial banks
28
Mutual savings banks
29
Insurance companies
30 Nonfinancial corporations
31
Savings and loan associations
32
State and local governments
33
All others
Aug.
1 to 5 years
All maturities
2 U.S. Government agencies and trust funds,
3 Federal Reserve banks
1978
1977
163,992
161,081
160,092
160,615
11,865
12,906
16,638
16,608
449
41,279
32
42,004
2
44,644
2
45,895
3,102
1,363
3,102
1,510
3,273
1,852
3,273
1,928
122,264
17,303
454
1,463
9,939
1,266
5,556
86,282
119,035
11,996
484
1,187
4,329
806
6,092
94,152
115,446
6,172
193
650
1,218
450
3,600
103,173
114,719
5,906
206
742
2,265
374
6,166
99,060
7,400
339
139
1,114
142
64
718
4,884
8,295
456
137
1,245
133
54
890
5,380
11,513
1,012
139
1,300
138
55
1,078
7,790
11,407
950
135
1,317
159
57
1,133
7,655
Over 20 years
Other, within 1 year
34 All holders
47,043
69,610
61,251
61,714
14,200
19,738
23,370
25,457
35 U.S. Government agencies and trust funds
36 Federal Reserve banks
1,563
10,290
1,874
14,698
1,143
11,936
2,291
10,630
2,350
3,642
2,495
5,564
2,640
7,197
2,640
7,881
37 Private investors
38 Commercial banks
39
Mutual savings banks
40
Insurance companies
41
Nonfinancial corporations
42
Savings and loan associations
43
State and local governments
44
All others
35,190
13,910
760
728
1,070
718
1,066
16,938
53,039
15,482
916
1,211
1,441
1,430
H,825
28,733
48,173
13,821
703
907
1,419
1,294
2,062
27,956
48,793
13,428
654
882
1,947
1,339
2,225
28,318
8,208
427
143
548
55
13
904
6,120
11,679
578
146
802
81
16
1,530
8,526
13,533
1,132
128
889
134
16
2,024
9,209
14,936
1,309
128
923
210
16
3,199
9,152
NOTE.—Direct public issues only. Based on Treasury Survey of Ownership from Treasury Bulletin (U.S. Treasury Dept.).
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting as of Aug. 31, 1978; (1) 5,468 commercial
banks, 464 mutual savings banks, and 728 insurance companies, each
about 90 per cent; (2) 435 nonfinancial corporations and 485 savings
and loan assns., each about 50 per cent; and (3) 493 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.
A34
DomesticNonfinancialStatistics • November 1978
1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages of daily figures, in millions of dollars
1978
Item
1 U.S. Government securities..
2
3
4
5
6
By maturity:
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
1975
1976
1978, week ending Wednesday—
1977
July
Aug.
Sept.
Aug. 16 Aug. 23 Aug. 30
Sept. 6
Sept. 13 Sept. 20
6,027
10,449
10,838
8,829
11,526
9,526
11,638
10,663
9,395
8,456
8,886
9,116
3,889
223
1,414
363
138
6,676
210
2,317
1,019
229
6,746
237
2,318
1,148
388
5,367
428
1,524
668
842
6,074
386
2,251
1,619
1,196
5,552
315
1,863
802
994
6,235
499
2,046
1,807
1,051
6,309
258
1,768
1,270
1,057
5,133
285
2,267
902
808
5,028
193
1,698
780
757
5,263
265
1,745
796
818
5,613
243
1,610
732
917
By type of customer:
U.S. Government securities
dealers
8
U.S. Government securities
brokers
9
Commercial banks
10
All others i
885
1,360
1,267
1,053
942
921
983
859
861
681
912
861
1,750
1,451
1,941
3,407
2,426
3,257
3,709
2,295
3,567
3,299
1,419
3,058
4,988
1,908
3,688
3,868
1,473
3,263
5,026
2,042
3,586
4,653
1,737
3,413
3,866
1,533
3,135
3,381
1,173
3,221
3,741
1,420
2,814
3,529
1,498
3,228
11 Federal agency securities....
1,043
1,548
693
1,918
2,077
2,172
1,896
2,051
1,890
1,545
2,654
1,830
7
1
Includes, among others, all other dealers and brokers in commodities
and securities, foreign banking agencies, and the F.R. System.
NOTE.—Averages for transactions are based on number of trading days
in the period.
Transactions are market purchases and sales of U.S. Govt, securities
dealers reporting to the F.R. Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. Govt, securities, redemptions
of called or matured securities, or purchases or sales of securities under
repurchase, reverse repurchase (resale), or similar contracts.
1.45 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
1978
Item
1975
1976
1978, week ending Wednesday—
1977
July
Aug.
Sept
July 26
Aug. 2
Aug. 9
Aug. 16 Aug. 23 Aug. 30
Positions 2
1 U.S. Government securities..
5,884
7,592
5,172
633
2,753
2,948
1,689
1,656
3,769
2,672
1,906
2,822
2
3
4
5
6
4,297
265
886
300
136
6,290
188
515
402
198
4,772
99
60
92
149
1,260
330
-474
-321
-162
2,330
348
-64
218
-78
2,824
405
-320
28
2,120
384
-229
-366
-221
1,960
407
143
-448
-405
2,387
489
281
618
-5
2,272
364
-223
275
-16
2,211
258
-555
89
-98
2,360
291
60
162
-51
943
729
693
214
656
977
154
423
550
508
562
997
'9,170
10,834
11,596
11,006
11,176
761
2,175
2,427
5,471
600
2,533
2,540
5,923
733
2,593
2,505
5,175
611
2,288
2,590
5,687
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7 Federal agency securities....
3
Sources of financing
8 All sources
9
10
11
12
Commercial banks:
New York City
Outside New York City...
Corporations 1
All others
6,666
1,621
1,466
842
2,738
8,715
1,896
1,660
1,479
3,681
9,877
1,313
1,987
2,358
4,170
8,239
38
1,759
1,981
4,460
* All business corporations except commercial banks and insurance
companies.
2
Net amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commitment, that is, trade-date basis, including any such securities that have been
sold under agreements to repurchase. The maturities of some repurchase
agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. Securities owned, and
hence dealer positions, do not include securities purchased under agreements to resell.
3 Total amounts outstanding of funds borrowed by nonbank dealer
11,041
608
2,370
2,501
5,563
11,558
997
2,344
2,287
5,930
7,861
-208
1,509
1,864
4,696
r
20
1,953
2,353
4,843
firms and dealer departments of commercial banks against U.S. Govt,
and Federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
NOTE.—Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.
Federal Finance
A35
1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding
Millions of dollars, end of period
Agency
1 Federal and Federally sponsored agencies
3
4
5
6
7
8
9
Defense Department1
Export-Import Bank 2 - 3
Federal Housing Administration4
Government National Mortgage
Association
participation certificates5
Postal Service6
Tennessee Valley Authority
United States Railway Association6
10 Federally sponsored agencies
11 Federal home loan banks
12 Federal Home Loan Mortgage Corporation..
13 Federal National Mortgage Association
14 Federal land banks
15 Federal intermediate credit banks
16 Banks for cooperatives
17 Student Loan Marketing Association7
18 Other
1975
25
26
27
Other lending:9
Farmers Home Administration
Rural Electrification Administration
Other
Mar.
Apr.
May
June
July
Aug.
103,325
110,409
114,371
115,903
119,728
121,239
123,497
124,478
19,046
1,220
7,188
564
21,896
1,113
7,801
575
23,245
983
9,156
581
23,695
954
9,416
607
23,766
949
9,416
607
23,864
935
9,416
608
23,983
926
9,455
606
24,145
916
9,455
603
23,686
906
9,455
603
4,200
1,750
3,915
209
4,120
2,998
5,185
104
3,743
2,431
6,015
336
3,743
2,431
6,195
349
3,701
2,431
6,310
352
3,701
2,364
6,485
355
3,701
2,364
6,575
356
3,666
2,364
6,785
356
3,166
2,364
6,835
357
78,634
18,900
1,550
29,963
15,000
9,254
3,655
310
2
81,429
16,811
1,690
30,565
17.127
10,494
4,330
410
2
87,164
18,345
1,686
31,890
19,118
11,174
4,434
515
2
90,676
20,007
1,768
33,350
19,350
10,881
4,728
590
2
92,137
20,163
1,639
34,024
19,686
10,977
5,046
600
2
95,864
22,217
1,637
35,297
19,686
11,081
5,264
680
2
97,256
22,306
1,937
36,404
19,686
11,257
4,974
690
2
99,352
23,430
1,937
36,900
20,198
11,392
4,788
705
2
100,792
24,360
1,937
37,518
20,198
11,482
4,570
725
2
17,154
28,711
38,580
42,169
42,964
43,871
44,504
45,550
46,668
4,595
1,500
310
1,840
209
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,094
2,181
590
4,370
349
6,094
2,181
600
4,485
352
6,094
2,114
680
4,660
355
6,132
2,114
690
4,750
356
6,132
2,114
705
4,960
356
6,132
2,114
725
5,010
357
7,000
566
1,134
10.750
1,415
4,966
16,095
2,647
6,782
18,050
3,124
7,411
19,120
3,323
6,809
20,090
3,498
6,380
20,910
3,602
5,950
21,580
3,684
6,019
22,275
3,919
6,136
1 Consists of mortgages assumed by the Defense Department between
1957
and 1963 under family housing and homeowners assistance programs.
2
Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17,1974, through Sept. 30,1976; on-budget thereafter.
4
Consists of debentures issued in payment of Federal Housing Administration insurance claims. Once issued, these securities may be sold
privately
on the securities market.
5
Certificates of participation issued prior to fiscal 1969 by the Government National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
Department of Housing and Urban Development; Small Business Administration; and the Veterans Administration.
6 Off-budget.
1978
1977
97,680
MEMO ITEMS :
19 Federal Financing Bank debt6-8
Lending to Federal and Federally sponsored
agencies:
20 Export-Import6 Bank 3
21 Postal Service
22
Student Loan Marketing Association7
23 Tennessee Valley Authority
24
United States Railway Association6
1976
7
Unlike other Federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education,
and Welfare.
8
The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other Federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double
counting.
9
Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.
A36
DomesticNonfinancialStatistics • November 1978
1.47 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1978
Type of issue or issuer,
or use
1 All issues, new and refunding
1
By type of issue:
2
3
4
5
Revenue
Housing Assistance Administration
2
By type of issuer:
6
7
8
Special district and statutory authority
Municipalities, counties, townships, school d i s t r i c t s . . . .
By use of proceeds:
10
11
12
13
14
15
Industrial aid
1976
1975
1977
Apr. r
May r
June r
July
Aug. r
Sept.
30,607
35,313
46,769
3,835
5,494
4,345
3,902
6,360
2,265
16,020
14,511
18,040
17,140
18,042
28,655
1,374
2,450
2,222
3,252
1,984
2,355
1,062
2,837
2,157
4,194
697
1,561
76
133
72
11
20
6
3
9
7
7,438
12,441
10,660
7,054
15,304
12,845
6,354
21,717
18,623
237
1,879
1,709
884
2,220
2,370
912
1,452
1,973
650
2,161
1,087
919
3,086
2,348
84
1,551
622
29,495
32,108
36,189
2,624
3,146
3,854
3,479
3,337
2,201
4,689
2,208
7,209
4,392
445
10,552
4,900
2,586
9,594
6,566
483
7,979
5,076
2,951
8,119
8.274
4,676
7,093
342
160
720
861
273
268
664
130
557
960
371
464
406
359
818
698
412
1,161
499
291
940
1,234
236
279
277
632
686
965
332
445
399
297
688
496
80
241
SOURCE.—Public Securities Association.
1 Par amounts of long-term issues based on date of sale.
2
Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
1.48 NEW SECURITY ISSUES of Corporations
Millions of dollars
1978
Type of issue or issuer,
or use
1
1975
1977
1976
Feb.
Mar.
April
May
June
July
53,619
53,488
54,205
2,657
4,442
3,285
4,035
5,215
4,226
2 Bonds
42,756
42,380
42,193
2,131
3,620
2,811
2,996
3,810
3,718
By type of offering:
3
Public
4
Private placement
32,583
10,172
26,453
15,927
24,186
18,007
1,464
667
1,902
1,718
1,958
853
1,719
1,277
1,744
2,066
2,177
1,541
16,980
2,750
3,439
9,658
3,464
6,469
13,264
4,372
4,387
8,297
2,787
9,274
12,510
5,887
2,033
8,261
3,059
10,438
716
87
101
205
9
1,155
428
217
631
291
898
534
421
291
505
35
1,027
837
314
244
885
1,105
562
225
815
344
761
675
417
235
768
326
1,296
10,863
11,108
12,013
822
474
1,039
1,405
508
3,458
7,405
2,803
8,305
3,878
8,135
138
388
148
674
235
239
390
649
586
819
57
451
1,670
1,470
2,237
1,183
24
6,121
776
771
1,265
1,838
418
6,058
1,379
1,054
91
74
94
260
25
150
15
183
28
238
41
90
20
800
"28"
10
88
366
245
38
429
5
320
167
167
40
31
27
76
1 All issues
5
6
7
8
9
10
By industry group:
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
By type:
12
Preferred
13
Common
14
15
16
17
18
19
By industry group:
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
6,235
1,002
488
i Figures, which represent gross proceeds of issues maturing in more
than 1 year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
1,012
526
627
'"lU
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
SOURCE.—Securities and Exchange Commission.
Corporate Finance
A37
1.49 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position
Millions of dollars
1978
Item
1976
1977
Mar.
Apr.
June
May
July
Aug. r
Sept.
INVESTMENT COMPANIES
excluding money market funds
1
2
3
Sales of own shares 1
Redemptions of own shares 2
Net sales
4
5
6
Assets 3
Cash position 4
Other
4,226
6,802
-2,496
6,401
6,027
357
613
459
154
625
580
45
558
831
-273
487
757
-270
474
645
-181
638
882
-244
519
673
-154
47,537
2,747
44,790
45,049
3,274
41,775
44,052
4,331
39,721
46,594
4,592
42,002
46,969
4,642
42,327
46,106
4,493
41,613
47,975
4,285
43,690
49,299
3,948
45,351
48,151
3,703
44,448
1
Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
2
Excludes share redemption resulting from conversions from one fund
to 3another in the same group.
Market value at end of period, less current liabilities.
4
Also includes all U.S. Govt, securities and other short-term debt
securities.
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.
1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Account
1975
1976
1977
1977
1976
1978
Q4
Q1
Q2
Q3
Q4
Q1
Q2
1 Profits before tax
120.4
155.9
173.9
154.6
164.8
175.1
177.5
178.3
172.1
205.5
2 Profits tax liability
3 Profits after tax
49.8
70.6
64.3
91.6
71.8
102.1
62.4
92.2
68.3
96.5
72.3
102.8
72.8
104.7
73.9
104.4
70.0
102.1
85.0
120.5
4 Dividends
5 Undistributed profits
31.9
38.7
37.9
53.7
43.7
58.4
41.4
50.8
41.5
55.0
42.7
60.1
44.1
60.6
46.3
58.1
47.0
55.1
48.1
72.4
89.2
127.9
97.1
150.8
106.0
164.4
100.5
151.3
102.0
157.0
105.0
165.1
107.6
168.2
109.3
167.4
111.3
166.4
113.3
185.7
6 Capital consumption allowances
7 Net cash flow
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).
A38
DomesticNonfinancialStatistics • November 1978
1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities
Billions of dollars, except for ratio
1977
1976
Account
Q3
Q4
Ql
Q2
Q3
Q4
Ql r
Q2
756.3
817.4
823.1
842.0
856.4
880.3
900.1
924.2
953.6
Other
73.0
11.3
265.5
318.9
65.9
80.0
19.6
272.1
314.7
69.9
79.5
24.1
297.9
342.2
73.6
86.8
26.0
292.4
341.4
76.4
80.8
26.8
304.1
352.1
78.3
83.1
22.1
312.8
358.8
79.6
83.4
21.5
326.9
367.5
81.0
94.2
20.9
325.7
375.0
84.3
88.5
20.9
338.3
389.7
86.8
90.9
19.7
356.8
399.1
87.0
451.8
446.9
484.0
487.5
502.6
509.5
528.9
543.2
570.4
590.6
Notes and accounts payable
Other
272.3
179.5
261.2
185.7
271.2
212.8
273.2
214.2
280.2
222.4
286.8
222.7
297.8
231.1
306.8
236.3
317.2
253.2
331.4
259.2
282.8
309.5
333.4
335.6
339.5
346.9
351.4
357.0
353.8
363.0
1.626
1.693
1.689
1.688
1.675
1.681
1.664
1.657
1.620
1.615
Cash
U.S. Government securities
Notes and accounts receivable
7
8
9
1978
1975
734.6
1
2
3
4
5
6
1974
10 Net working capital
11 MEMO: Current ratio
1
I (Total current assets)/(Total current liabilities).
SOURCE.—Federal Trade Commission.
NOTE.—For a description of this series see "Working Capital of Nonfinancial Corporations" in the July 1978 BULLETIN, pp. 533-37.
1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Industry
1 All industries
Manufacturing
2
Durable goods industries
3
Nondurable goods industries
4
5
6
7
8
9
10
11
Nonmanufacturing
Mining
Transportation:
Railroad
Air
Other
Public utilities:
Electric
Gas and other
Communication
Commercial and other *
1977
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Q42
135.72
152.28
130.16
134.24
140.38
138.11
144.25
150.76
155.13
158.98
27.75
32.33
31.53
36.23
26.30
30.13
27.26
32.19
29.23
33.79
28.19
33.22
28.72
32.86
31.40
35.80
32.11
36.54
33.89
39.72
4.49
4.78
4.24
4.49
4.74
4.50
4.45
4.81
4.80
5.07
2.82
1.63
2.55
3.28
2.45
2.27
2.71
1.62
2.96
2.57
1.43
2.96
3.20
1.69
1.96
2.80
1.76
2.32
3.35
2.67
2.44
3.09
2.08
2.23
3.64
2.97
2.37
3.05
2.08
2.05
21.57
4.21
15.43
22.95
24.49
4.48
21.19
4.16
14.19
22.67
21.14
4.16
15.32
22.73
21.90
4.32
16.40
23.14
22.05
4.18
15.82
23.27
23.15
4.78
17.07
24.76
23.83
4.62
18.18
24.71
25.04
4.22
} 43.44
25.94
4.28
42.90
1
Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
NOTE.—Estimates for corporate and noncorporate business, excluding
1978
19782
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
A39
1.521 DOMESTIC FINANCE COMPANIES Assets and Liabilities
Billions of dollars, end of period
1977
1972
Account
1973
1974
1975
1978
1976
Q2
Q3
Q4
Ql
Q2
ASSETS
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses
Accounts receivable, net
Cash and bank deposits
Securities
All other
9 Total assets
31.9
27.4
59.3
7.4
51.9
2.8
.9
10.0
35.4
32.3
67.7
8.4
59.3
2.6
.8
10.6
36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6
40.7
50.4
91.2
11.1
80.1
2.5
1.2
13.7
42.3
50.6
92.9
11.7
81.2
2.5
1.8
14.2
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
44.5
57.6
102.1
12.8
89.3
2.2
1.2
15.0
47.1
59.5
106.6
14.1
92.6
2.9
1.3
16.2
65.6
73.2
79.6
81.6
89.2
97.5
99.6
104.3
107.7
112.9
5.6
17.3
7.2
19.7
9.7
20.7
8.0
22.2
6.3
23.7
5.7
27.5
5.4
25.7
5.9
29.6
5.8
29.9
5.4
31.3
4.3
22.7
4.8
4.6
24.6
5.6
4.9
26.5
5.5
4.5
27.6
6.8
5.4
32.3
8.1
5.5
35.0
9.4
5.4
34.8
13.7
6.2
36.0
11.5
5.3
38.0
12.9
6.6
40.1
13.6
LIABILITIES
10 Bank loans
11 Commercial paper
Debt:
12
Short-term, n.e.c
13
Long-term, n.e.c
14
Other
15 Capital, surplus, and undivided profits
10.9
11.5
12.4
12.5
13.4
14.4
14.6
15.1
15.7
16.0
16 Total liabilities and capital
65.6
73.2
79.6
81.6
89.2
97.5
99.6
104.3
107.7
112.9
NOTE.—Components may not add to totals due to rounding.
1.522 DOMESTIC FINANCE COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding Aug. 31,
19781
Changes in accounts
receivable during—
Extensions
Repayments
1978
1978
1978
June
July
Aug.
June
July
Aug.
June
July
Aug.
1 Total
57,598
560
284
716
14,994
14,688
15,417
14,434
14,404
14,701
2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial, and
farm equipment
5 Loans on commercial accounts receivable...
6 Factored commercial accounts receivable....
7 All other business credit
13,774
9,477
400
-472
111
103
247
-77
1,314
5,705
1,073
6,148
1,222
6,314
914
6,177
962
6,045
975
6,391
15,779
4,182
2,472
11,914
283
182
104
63
210
-140
-11
11
295
-19
55
215
1,194
3,314
1,743
1,724
1,324
2,748
1,716
1,679
1,225
3,269
1,481
1,906
911
3,132
1,639
1,661
1,114
2,888
1,727
1,668
930
3,288
1,426
1,691
i Not seasonally adjusted.
A40
DomesticNonfinancialStatistics • November 1978
1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1978
Item
1975
1976
1977
Apr.
May
June
July
Aug.
Sept.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional
mortgages on new homes
Terms: 1
1
Purchase price (thous. dollars)
2
Amount of loan (thous. dollars)
3
4
Maturity (years)
Fees and charges (per cent of loan amount) 2 .
5
6
Contract rate (per cent per annum)
7
8
Yield (per cent per annum):
FHLBB series 3
H U D series 4
44.6
33.3
74.7
26.8
1.54
8.75
48.4
35.9
74.2
27.2
1.44
8.76
54.3
40.5
76.3
27.9
1.33
8.80
61.6
45.7
76.1
28.4
1.44
9.07
59.8
44.2
75.5
27.7
1.34
9.14
62.6
45.9
75.6
28.3
1.40
9.23
61.9
45.3
75.3
28.2
1.40
9.34
63.6
46.4
75.3
28.0
1.43
9.45
64.7
46.7
74.2
27.8
1.36
9.50
9.01
9.10
8.99
8.99
9.01
8.95
9.30
9.40
9.37
9.60
9.46
9.75
9.57
9.80
9.70
9.80
9.73
9.80
9.19
8.52
8.82
8.17
7.96
8.04
9.37
8.71
9.67
8.71
9.05
9.92
9.16
9.78
8.96
9.78
8.95
9.26
9.37
8.99
9.11
8.73
8.98
9.44
9.72
9.66
9.90
9.91
10.10
10.01
10.19
9.81
10.11
9.78
10.02
SECONDARY MARKETS
9
10
11
12
Yields (per cent per annum):
FHA mortgages (HUD series)^
FNMA auctions: 7
Conventional loans
Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
13
14
15
16
Mortgage holdings (end of period)
Total
FHA-insured
VA-guaranteed
Conventional
17
18
19
20
31,824
19,732
9,573
2,519
32,904
18,916
9,212
4,776
34,370
18,457
9,315
6,597
36,702
18,950
9,905
7,847
37,937
19,382
10,255
8,300
38,753
19,608
10,398
8,747
39,409
19,763
10,457
9,189
40,325
20,034
10,535
9,752
41,189
20,325
10,575
10,289
Mortgage transactions (during period)
Purchases
Sales
4,263
2
3,606
86
497
937
1,551
1,148
945
1,230
1,132
Mortgage commitments: 8
Contracted (during period)
Outstanding (end of period)
6,106
4,126
6,247
3,398
1,333
4,698
2,119
8,486
3,439
10,271
1,517
10,395
927
10,171
527
9,419
882
9,068
7,042.6
3,848.3
4,929.8
2,787.2
1,184.5
794.0
909.3
529.2
2,117.7
1,093.7
1,095.0
636.6
756.7
471.5
499.1
277.2
717.9
335.9
1,401.3
765.0
2,595.7
1,879.2
591.6
359.4
974.2
578.1
1,935.8
968.3
574.5
342.0
316.0
178.9
224.7
128.5
484.7
283.7
Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered 9
Accepted
Conventional loans:
23
Offered 9
24
Accepted
21
22
FEDERAL HOME LOAN
MORTGAGE CORPORATION
25
26
27
Mortgage holdings (end of period) 10
Total.
FHA/VA
Conventional
4,987
1,824
3,163
4,269
1,618
2,651
3,276
1,395
1,881
3,092
1,373
1,719
2,878
1,356
1,522
2,255
1,338
917
2,024
1,321
702
2,448
1,304
1,144
2,486
1,287
1,199
28
29
Mortgage transactions (during period)
Purchases
Sales
1,716
1,020
1,175
1,396
489
477
356
466
479
651
500
1,093
520
725
742
299
670
594
30
31
Mortgage commitments: 11
Contracted (during period)
Outstanding (end of period)
982
111
1,477
333
361
1,063
512
1,346
811
1,640
762
1,870
737
2,055
838
2,142
760
2,130
1
Weighted averages based on sample surveys of mortgages originated
by major institutional lender groups. Compiled by the Federal Home Loan
Bank Board in cooperation with the Federal Deposit Insurance Corporation.
2 Includes all fees, commissions, discounts, and "points" paid (by
the borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepayment
at the end of 10 years.
4
Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Dept. of Housing
and Urban Development.
s Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through
securities, assuming prepayment in 12 years on pools of 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7
Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association's
auctions of 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. No adjustments are made
for FN MA commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8
Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNMA's
free market auction system, and through the F N M A - G N M A Tandem
plans.
9 Mortgage amounts offered by bidders are total bids received.
I
o Includes participations as well as whole loans.
II
Includes conventional and Government-underwritten loans.
Real Estate Debt
1.54
A41
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
Type of holder, and type of property
1973
1974
1975
1976
1977
1978
Q4
Ql
Q2
Q3p
682,321
416,211
93,132
131,725
41,253
742,512
449,371
99,976
146,877
46,288
801,537
490,761
100,601
159,298
50,877
889,327
556,557
104,516
171,223
57,031
1,023,417
r
656,116
r
l11,804
r
189,829
65,668
'1,052,307
'675,514
'114,202
'194,545
68,046
1,090,234
701,392
116,793
201,054
71,004
1,128,398
727,096
119,422
208,017
73,863
6 Major financial institutions
7
Commercial banks1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
505,400
119,068
67,998
6,932
38,696
5,442
542,560
132,105
74,758
7,619
43,679
6,049
581,193
136,186
77,018
5,915
46,882
6,371
647,650
151,326
86,234
8,082
50,289
6,721
'745,011
178,979
105,115
9,215
56,898
7,751
'764,614
184,423
108,699
9,387
5,8,407
7,930
792,762
193,223
113,886
9,816
61,194
8,327
819,264
202,423
119,308
10,283
64,107
8,725
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
73,230
48,811
12,343
12,012
64
74,920
49,213
12,923
12,722
62
77,249
50,025
13,792
13,373
59
81,639
53,089
14,177
14,313
60
88,104
57,637
15,304
15,110
53
89,800
58,747
15,398
15,401
54
91,535
59,882
15,900
15,698
55
93,511
61,175
16,243
16,037
56
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
231,733
187,078
22,779
21,876
249,301
200,987
23,808
24,506
278,590
223,903
25,547
29,140
323,130
260,895
28,436
33,799
r
381,163
'310,686
'32,513
'37,964
392,479
319,910
33,478
39,091
407,964
332,532
34,779
40,633
420,947
343,114
35,907
41,926
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
81,369
20,426
18,451
36,496
5,996
86,234
19,026
19,625
41,256
6,327
89,168
17,590
19,629
45,196
6,753
91,555
16,088
19,178
48,864
7,425
96,765
14,727
18,807
54,388
8,843
97,963
14,476
18,851
55,426
9,210
100,040
14,129
18,745
57,463
9,703
102,383
13,929
18,945
59,309
10,200
26 Federal and related agencies
46,721
27
Government National Mortgage Assn. 4,029
28
1-to 4-family
1,455
29
Multifamily
2,574
58,320
4,846
2,248
2,598
66,891
7,438
4,728
2,710
66,753
4,241
1,970
2,271
70,006
3,660
1,548
2,112
72,014
3,291
948
2,343
73,991
3,283
922
2,361
77,919
3,523
989
2,534
1 All holders
2
1- to 4-family
3
Multifamily
4
Commercial
5
Farm
30
31
32
33
34
Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm
1,366
743
29
218
376
1,432
759
167
156
350
1,109
208
215
190
496
1,064
454
218
72
320
1,353
626
275
149
303
1,179
202
408
218
351
618
124
102
104
288
668
135
110
112
311
35
36
37
Federal Housing and Veterans Admin.
1- to 4-family
Multifamily
3,476
2,013
1,463
4,015
2,009
2,006
4,970
1,990
2,980
5,150
1,676
3,474
5,212
1,627
3,585
5,219
1,585
3,634
5,225
1,543
3,682
5,295
1,565
3,730
38
39
40
Federal National Mortgage Assn... .
1- to 4-family
Multifamily
24,175
20,370
3,805
29,578
23,778
5,800
31,824
25,813
6,011
32,904
26,934
5,970
34,369
28,504
5,865
36,029
30,208
5,821
38,753
32,974
5,779
41,189
35,437
5,752
41
42
43
Federal land banks
1- to 4-family
Farm
11,071
123
10,948
13,863
406
13,457
16,563
549
16,014
19,125
601
18,524
22,136
670
21,466
22,925
691
22,234
23,857
727
23,130
24,758
819
23,939
44
45
46
Federal Home Loan Mortgage Corp..
1- to 4-family
Multifamily
2,604
2,446
158
4,586
4,217
369
4,987
4,588
399
4,269
3,889
380
3,276
2,738
538
3,371
2,785
586
2,255
1,856
399
2,486
1,994
492
18,040
7,890
7,561
329
23,799
11,769
11,249
520
34,138
18,257
17,538
719
49,801
30,572
29,583
989
70,289
44,896
43,555
1,341
74,080
46,357
44,906
1,451
78,602
48,032
46,515
1,517
82,325
50,844
49,276
1,568
766
617
149
757
608
149
1,598
1,349
249
2,671
2,282
389
6,610
5,621
989
7,471
6,286
1,185
9,423
7,797
1,626
9,934
8,358
1,576
9,384
5,458
138
1,124
2,664
11,273
6,782
116
1,473
2,902
14,283
9,194
295
1,948
2,846
16,558
10,219
532
2,440
3,367
18,783
11,379
759
2,945
3,682
20,252
12,235
732
3,528
3,757
21,147
12,742
1,128
3,301
3,976
21,547
12,943
1,154
3,380
4,070
112,160
51 ,112
23,982
21,303
15,763
117,833
53,331
24,276
23,085
17,141
119,315
56,268
22,140
22,569
18,338
125,123
62,643
20,420
21,446
20,614
138,111
71,665
20,501
22,375
23,570
141,599
73,878
20,732
22,479
24,510
144,888
75,763
20,939
22,661
25,525
148,890
78,054
21,128
23,146
26,562
47 Mortgage pools or trusts2
48
Government National Mortgage Assn.
49
1- to 4-family
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corp.
1- to 4-family
Multifamily
54
55
56
57
58
Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm
59 Individuals and others3
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
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.
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.
A42
DomesticNonfinancialStatistics • November 1978
1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change
Millions of dollars
1978
Holder, and type of credit
1975
1976
1977
Mar.
Apr.
May
June
July
Aug.
Sept.
Amounts outstanding (end of period)
164,955
185,489
216,572
219,203
222,131
227,561
233,416
237,197
242,538
246,056
By holder:
Commercial banks
Finance companies
Credit unions
Retailers1
Others2
78,667
35,994
25,666
18,002
6,626
89,511
38,639
30,546
19,052
7,741
105,291
44,015
37,036
21,082
9,149
107,166
44,486
38,185
19,920
9,446
109,336
45,182
38,750
19,941
9,528
111,673
46,136
39,951
20,141
9,660
114,756
47,147
41,388
20,310
9,815
117,110
47,967
41,802
20,432
9,886
119,889
48,982
42,931
20,655
10,081
121,519
49,673
43,747
20,872
10,245
7
8
9
10
11
12
13
By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Others
55,879
31,553
18,353
13,200
11,155
12,741
430
66,116
37,984
21,176
16,808
12,489
15,163
480
79,352
46,119
25,370
20,749
14,263
18,385
585
81,666
47,534
26,327
21,207
14,577
18,955
600
83,490
48,731
27,049
21,682
14,921
19,239
599
85,954
50,119
27,854
22,265
15,382
19,835
618
88,767
51,714
28,773
22,941
15,863
20,549
641
90,671
52,938
29,496
23,442
16,327
20,754
652
92,956
54,224
30,202
24,022
16,753
21,314
665
94,268
54,803
30,566
24,237
17,069
21,719
677
14
15
16
Mobile homes
Commercial banks
Finance companies
14,423
8,649
3,451
14,572
8,734
3,273
15,014
8,862
3,109
15,062
8,845
3,085
15,156
8,876
3,095
15,220
8,912
3,098
15,309
8,967
3,103
15,438
9,061
3,123
15,577
9,117
3,139
15,690
9,169
3,152
17
18
Home improvement
Commercial banks
9,405
4,965
10,990
5,554
12,952
6,473
13,162
6,479
13,375
6,598
13,691
6,782
14,037
6,971
14,260
7,129
14,633
7,331
14,905
7,472
19
20
Revolving credit:
Bank credit cards
Bank check credit
9,501
2,810
11,351
3,041
14,262
3,724
14,142
3,844
14,345
3,856
14,456
3,919
14,929
3,996
15,288
4,043
15,857
4,178
16,371
4,241
21
22
23
24
25
26
27
28
All other
Commercial banks, total,
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others
72,937
21,188
14,629
21,238
17,263
10,754
18,002
1,755
79,418
22,847
15,669
22,749
18,554
12,799
19,052
1,971
91,269
25,850
17,740
26,498
21,302
15,518
21,082
2,321
91,327
26,322
18,002
26,675
21,416
15,999
19,920
2,411
92,515
26,930
18,383
27,012
21,700
16,232
19,941
2,400
94,321
27,485
18,640
27,496
22,110
16,735
20,141
2,464
96,378
28,179
19,049
28,012
22.547
17,337
20,310
2,540
97,497
28,651
19,301
28,336
22,906
17,511
20,432
2,567
99,337
29,182
19,655
28,898
23,344
17,984
20,655
2,618
100,581
29,463
19.871
29,249
23,569
18,326
20.872
2,671
1 Total
2
3
4
5
6
Net change (during period)3
29 Total
7,504
20,533
31,090
4,068
3,719
3,857
3,792
3,301
2,986
3,278
30
31
32
33
34
By holder:
Commercial banks
Finance companies
Credit unions
Retailers
i
Others 2
2,821
-90
3,771
69
933
10,845
2,644
4,880
1,050
1,115
15,779
5,376
6,490
2,032
1,413
2,021
662
836
367
182
2,001
781
699
129
109
1,881
763
911
170
132
1,960
553
836
282
161
1,915
605
369
364
48
1,645
607
508
45
181
1,446
877
728
75
152
35
36
37
38
39
40
41
By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Other
3,007
559
-334
894
532
1,872
44
10,238
6,431
2,823
3,608
1,334
2,422
50
13,235
8,135
4,194
3,941
1,774
3,222
105
1,522
882
564
318
238
406
-4
1,728
989
603
386
375
343
21
1,789
944
575
369
367
465
13
1,543
946
554
392
199
383
15
1,520
937
553
384
371
206
6
1,446
894
464
430
260
261
31
1,439
698
432
266
348
372
21
42
43
44
Mobile homes
Commercial banks
Finance companies
-195
-323
-73
150
85
-111
441
128
-164
108
46
2
95
28
58
33
-3
15
-1
-7
104
19
14
87
26
7
78
32
2
45
46
Home improvement
Commercial banks
881
271
1,585
588
1,967
920
217
74
212
111
222
109
209
95
156
101
229
123
234
110
47
48
Revolving credit:
Bank credit cards
Bank check credit
1,220
14
1,850
231
2,911
683
448
120
311
56
263
129
362
90
398
27
280
44
349
0
49
50
51
52
53
54
55
56
All other
Commercial banks, total.
Personal loans
Finance companies, total,
Personal loans
Credit unions
Retailers
Others
2,577
1,080
858
-348
279
1,580
69
196
6,479
1,659
1,040
1,509
1,290
2,045
1,050
217
11,853
3,003
2,070
3,749
2,748
2,719
2,032
350
1,653
451
263
419
309
358
367
58
1,317
506
333
387
307
301
129
-6
1,396
403
207
395
327
371
170
57
1,573
468
303
358
301
383
282
82
1,096
373
220
210
238
133
364
16
900
278
154
329
236
212
45
36
1,178
257
181
513
372
289
75
44
1 Excludes 30-day charge credit held by retailers, oil and gas companies,
and2 travel and entertainment companies.
Mutual savings banks, savings and loan associations, and auto dealers.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
NOTE.—Total consumer noninstalment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $44.2 billion at the end
of 1977, $38.7 billion at the end of 1976, $35.7 billion at the end of 1975,
and $33.8 billion at the end of 1974. Comparable data for Dec. 31, 1978
will be published in the February 1979 BULLETIN.
Consumer Debt
1.56
CONSUMER INSTALMENT CREDIT
A43
Extensions and Liquidations
Millions of dollars
Holder, and type of credit
1975
1978
1976
1977
Mar.
Apr.
May
June
July
Aug.
Sept.
Extensions 3
164,169
193,328
225,645
21,595
22,117
22,336
22,680
22,332
22,632
22,514
By holder:
Commercial banks
Finance companies
Credit unions
1
Retailers
Others2
77,312
31,173
24,096
27,049
4,539
94,220
36,028
28,587
29,188
5,305
110,777
41,770
33,592
33,202
6,303
10,608
3,914
3,309
3,148
616
11,120
4,226
3,267
2,955
549
11,004
4,241
3,508
2,995
588
11,329
4,113
3,433
3,185
620
11,315
4,078
3,128
3,300
511
11,474
4,214
3,271
2,995
678
11,176
4,281
3,388
3,058
611
7
8
9
10
11
12
13
By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Others
51,413
28,573
15,766
12,807
9,674
12,683
483
62,988
36,585
19,882
16,704
11,209
14,675
518
72,888
42,570
22,904
19,666
12,635
17,041
642
6,822
3,924
2,173
1,751
1,173
1,679
46
7,248
4,212
2,347
1,865
1,314
1,654
68
7,387
4,189
2,327
1,862
1,337
1,798
63
7,241
4,178
2,305
1,873
1,278
1,721
64
7,156
4,267
2,329
1,938
1,208
1,624
57
7,399
4,349
2,370
1,979
1,324
1,644
82
7,129
4,059
2,274
1,785
1,279
1,720
71
14
15
16
Mobile homes
Commercial banks
Finance companies
4,323
2,622
764
4,841
3,071
690
5,244
3,153
651
502
284
74
508
279
85
490
294
74
460
271
69
5/7
334
81
546
310
78
489
285
72
17
18
Home improvement
Commercial banks
5,556
2,722
6,736
3,245
8,066
3,968
770
352
753
382
798
395
801
390
736
390
850
429
817
399
19
20
Revolving credit:
Bank credit cards
Bank check credit
20,428
4,024
25,862
4,783
31,761
5,886
3,231
608
3,255
646
3,245
677
3,482
694
3,466
599
3,499
625
3,603
640
21
22
23
24
25
26
27
28
All other
Commercial banks, total.
Personal loans
Finance companies, total,
Personal loans
Credit unions
Retailers
Others
78,425
18,944
13,386
20,657
16,944
10,134
27,049
1,642
88,117
20,673
14,480
24,087
19,579
12,340
29,188
1,830
101,801
23,439
16,828
28,396
22,348
14,604
33,202
2,160
9,662
2,209
1,537
2,659
2,105
1,429
3,148
217
9,707
2,346
1,669
2,814
2,226
1,431
2,955
161
9,739
2,204
1,511
2,819
2,273
1,500
2,995
221
10,002
2,314
1,614
2,755
2,231
1,501
3,185
247
9,858
2,259
1,574
2,773
2,211
1,335
3,300
191
9,713
2,262
1,587
2,793
2,194
1,444
2,995
219
9,836
2,190
1,555
2,906
2,278
1,462
3,058
220
1 Total
2
3
4
5
6
Liquidations3
29 Total
156,665
172,795
194,555
17,527
18,398
18,479
18,888
19,031
19,646
19,236
30
31
32
33
34
By holder:
Commercial banks
Finance companies
Credit unions
Retailers1
Others2
74,491
31,263
20,325
26,980
3,606
83,376
33,384
23,707
28,138
4,191
94,998
36,394
27,103
31,170
4,890
8,587
3,252
2,473
2,781
434
9,119
3,445
2,568
2,826
440
9,123
3,478
2,597
2,825
456
9,369
3,560
2,597
2,903
459
9,400
3,473
2,759
2,936
463
9,829
3,607
2,763
2,950
497
9,730
3,404
2,660
2,983
459
35
36
37
38
39
40
41
By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Others
48,406
28,014
16,101
11,913
9,142
10,811
439
52,750
30,154
17,059
13,095
9,875
12,253
468
59,652
34,435
18,710
15,726
10,819
13,819
536
5,300
3,042
1,609
1,433
935
1,273
50
5,520
3,223
1,744
1,479
939
1,311
47
5,598
3,245
1,752
1,493
970
1,333
50
5,698
3,232
1,751
1,481
1,079
1,338
49
5,636
3,330
1,776
1,554
837
1,418
51
5,953
3,455
1,906
1,549
1,064
1,383
51
5,690
3,361
1,842
1,519
931
1,348
50
42
43
44
Mobile homes
Commercial banks
Finance companies
4,517
2,944
837
4,691
2,986
867
4,802
3,025
806
394
238
72
413
251
74
432
261
77
445
272
76
413
255
67
459
284
71
411
253
70
45
46
Home improvement
Commercial banks
4,675
2,451
5,151
2,657
6.098
3,048
553
278
541
271
576
286
592
295
580
289
621
306
583
289
47
48
Revolving credit:
Bank credit cards.
Bank check credit
19,208
4,010
24,012
4,552
28,851
5,202
2,783
488
2,944
590
2,982
548
3,120
604
3,068
572
3,219
581
3,254
640
49
50
51
52
53
54
55
56
All other
Commercial banks, total,
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others
75,849
17,864
12,528
21,005
16,665
8,554
26,980
1,446
81,638
19,014
13,439
22,578
18,289
10,295
28,138
1,613
89,948
20,436
14,757
24,647
19,600
11,884
31,170
1,811
8,009
1,758
1,274
2,240
1,796
1,071
2,781
159
8,390
1,840
1,336
2,427
1,919
1,130
2,826
167
8,343
1,801
1,304
2,424
1,946
1,129
2,825
164
8,429
1,846
1,311
2,397
1,930
1,118
2,903
165
8,762
1,886
1,354
2,563
1,973
1,202
2,936
175
8,813
1,984
1,433
2,464
1,958
1,232
2,950
183
8,658
1,933
1,374
2,393
1,906
1,173
2,983
176
i Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2
3
Mutual savings banks, savings and loan associations, and auto dealers.
Monthly figures are seasonally adjusted.
A44
DomesticNonfinancialStatistics • November 1978
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1972
1973
1974
1975
1977
1977
1976
Ql
1978
Q2
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total funds raised
2
Excluding equities
By sector and instrument:
3 U.S. Government
4
Public debt securities
5
Agency issues and mortgages
6
All other nonfinancial sectors
7
Corporate equities
8
Debt instruments
9
Private domestic nonfinancial sectors. .
10
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations....
14
Corporate bonds
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Home
Multifamily residential
Commercial
Farm
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
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. Government loans
176.0
165.5
203.5
196.1
188.0
184.9
208.5
198.0
272.1
261.7
340.5
337.4
303.8
303.6
300.6
298.4
390.6
385.0
367.1
362.5
380.6
380.9
370.5
370.0
15.1
14.3
.8
160.9
10.5
150.4
156.9
10.9
146.0
102.3
14.7
12.2
8.3
7.9
.4
195.2
7.4
187.9
189.3
7.9
181.4
105.0
14.7
9.2
11.8
12.0
-.2
176.2
3.1
173.1
161.6
4.1
157.5
98.0
16.5
19.7
85.4
85.8
-.4
123.1
10.5
112.6
109.5
9.9
99.6
97.8
15.6
27.2
69.0
69.1
—. 1
203.0
10.4
192.6
182.8
10.5
172.3
126.8
19.0
22.8
56.8
57.6
-.9
283.8
3.1
280.6
271.4
2.7
268.7
181.1
29.2
21.0
47.3
48.0
-.7
256.5
1
256.3
250.4
-.6
251.0
144.8
20.5
18.3
37.8
38.2
-.4
262.8
2.2
260.6
253.8
1.7
252.1
181.9
38.2
13.6
80.1
82.2
-2.1
310.5
5.6
304.9
288.5
4.4
284.1
198.4
33.0
27.3
61.9
62.2
-.3
305.2
4.6
300.6
292.9
5.4
287.5
199.3
25.0
24.7
66.1
67.4
-1.4
314.6
-.3
314.9
301.4
1.0
300.4
171.7
22.3
15.0
48.5
49.0
-.5
322.0
.5
321.6
300.0
.7
299.3
188.5
35.8
18.7
42.6
12.7
16.5
3.6
43.7
17.1
18.9
.8
6.9
46.4
10.4
18.9
5.5
76.4
23.8
39.8
2.5
10.3
34.8
6.9
15.1
5.0
59.6
10.2
29.0
6.6
13.7
39.5
11.0
4.6
1.8
9.4
-14.0
-2.6
9.0
63.7
1.8
13.4
6.1
45.5
23.6
3.5
4.0
14.4
96.4
7.4
18.4
8.8
87.6
35.0
30.6
2.9
19.0
79.1
4.4
13.9
8.6
106.2
33.2
48.9
1.7
22.5
97.9
8.5
14.4
9.2
70.2
38.3
19.0
5.3
7.6
103.9
7.0
18.6
8.6
85.7
32.6
33.8
.5
18.8
104.6
9.7
26.6
8.8
88.2
36.2
20.7
4.2
27.1
92.4
10.6
21.9
9.5
128.7
38.0
61.3
5.3
24.1
89.7
10.2
24.4
9.7
110.8
51.6
45.9
5.1
8.2
156.9
14.5
64.3
5.8
14.1
58.3
189.3
13.2
80.9
9.7
12.8
72.7
161.6
15.5
49.2
7.9
7.4
81.8
109.5
13.2
48.6
8.7
2.0
37.0
182.8
18.5
89.9
11.0
5.2
58.2
271.4
25.9
139.6
14.7
12.6
78.7
250.4
19.6
127.7
15.5
11.7
75.9
253.8
25.9
134.7
15.5
14.0
63.7
288.5
34.8
150.0
14.5
9.2
80.1
292.9
23.2
145.9
13.2
15.5
95.2
301.4
20.9
143.0
13.1
17.5
107.0
300.0
24.4
141.1
13.7
19.5
101.3
4.0
-.4
4.4
1.0
2.9
-1.0
1.5
5.9
-.5
6.4
1.0
2.8
.9
1.7
14.6
-1.0
15.6
2.1
4.7
7.3
1.5
13.6
.6
13.0
6.2
3.7
.3
2.8
20.2
—. 1
20.4
8.5
6.6
1.9
3.3
12.3
.4
11.9
5.0
1.6
2.4
3.0
6.1
.8
5.3
2.2
-3.9
3.0
4.0
9.0
.5
8.5
6.6
-2.6
2.3
2.2
22.0
1.2
20.8
7.5
7.2
2.5
3.7
12.3
-.8
13.1
3.7
5.6
1.8
2.0
13.2
-1.3
14.5
5.1
7.4
-.9
2.9
22.0
-.3
22.2
4.0
8.0
8.1
2.1
*
Financial sectors
37 Total funds raised
By instrument :
U.S. Government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. Government
Private financial sectors
Corporate equities
Debt instruments
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper and Rp's
Loans from FHLB's
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
By sector:
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Other insurance companies
Finance companies
REIT's
Open-end investment companies
Money market funds
28.3
57.6
36.4
11.7
29.2
58.8
57.6
65.4
41.3
71.1
111.1
94.3
8.4
3.5
4.9
19.9
16.3
3.6
18.6
3.3
15.7
-.4
10.6
1.0
9.6
5.8
2.1
-3.7
7.3
-2.0
26.3
7.0
20.5
-1.2
32.6
.6
32.0
10.1
3.1
29.7
7.2
22.5
38.8
23.7
15.2
39.8
24.4
15.3
14.4
4.3
27.4
9.4
22.6
-4.7
30.2
-1.4
31.6
7.3
2.7
1.9
17.1
2.6
25.4
1.7
23.7
37.7
1.5
36.2
3.5
-1.2
8.9
17.8
7.2
13.5
2.3
10.3
.9
-1.9
.6
-2.5
2.9
2.3
-3.6
—. 1
-4.0
22.6
9.5
13.1
19.9
2.8
17.1
5.1
1.7
5.9
4.4
23.1
16.6
5.8
.7
13.3
.3
13.0
2.1
-1.3
4.6
.9
6.7
42.8
2.5
40.3
13.0
3.8
-6.5
25.7
4.3
15.9
-1.4
17.3
8.5
3.1
-.1
5.8
41.4
2.8
38.7
11.7
2.8
4.7
9.0
10.4
72.2
1.2
71.1
10.3
2.6
-1.1
46.4
12.8
54.5
1.7
52.8
9.6
1.6
2.9
23.4
15.3
17.3
5.8
13.3
-5.6
3.5
6.3
.9
6.0
.6
-.7
2.4
3.2
10.3
-1.9
-1.4
.3
-2.2
1.0
.6
-1.4
-.1
1.3
2.9
15.7
10.6
7.5
-.8
5.8
20.5
32.6
4.8
1.3
11.9
.9
16.9
-2.4
-1.0
.2
4.7
22.6
30.2
10.0
.4
8.7
.9
15.1
-2.7
-2.6
.3
9.5
13.1
42.8
10.0
2.3
12.5
.9
19.8
-2.4
1.0
-1.3
1.7
23.7
15.9
2.5
1.5
5.6
.9
11.1
-2.6
-3.3
1
7.2
22.5
41.4
-3.4
.9
20.7
1.0
21.6
-1.9
.9
1.7
23.7
15.2
72.2
31.1
3.6
18.1
1.0
14.0
-1.9
24.4
15.3
54.5
3.6
8.0
20.7
1.0
16.9
-1.4
.4
5.3
361.3 366.0
-2.6
1.0
1.3
3.7
362.6
361.3
60.6
79.5
38.2
20.5
33.2
27.7
108.6 133.8
33.2
38.3
46.9 '
9.9
33.3
21.9
14.0
24.4
431.8
-3.3
7.5
427.6
105.5
33tO
43.3
141.0
32.6
40.9
8.8
22.4
438.2
.9
6.5
430.9
91.7
25.0
40.1
152.4
36.2
30.9
15.0
39.6
491.7
*
3.5
4.9
19.9
4.5
.7
2.0
.5
6.5
6.3
-.5
16.3
3.6
37.7
14.1
2.2
6.0
.5
9.4
6.5
-1.2
*
.9
6.4
-2.4
-1.0
*
*
- -
1
*
6.4
All sectors
60 Total funds raised, by instrument
62
Investment company shares
63
Other corporate equities
64
Debt instruments
U.S. Government securities
65
66
State and local obligations
67
Corporate and foreign bonds
68
Mortgages
69
Consumer credit
70
Bank loans n.e.c
71
Open market paper and Rp's
72
Other loans
204.3
-.5
13.8
191.0
23.6
14.7
18.4
77.0
17.1
27.8
4.1
8.4
261.1
-1.2
10.1
252.3
28.3
14.7
13.6
79.9
23.8
51.6
21.2
19.1
224.4
-.7
4.1
221.0
34.3
16.5
23.9
60.5
10.2
38.3
14.8
22.6
220.2
—. 1
11.2
209.1
98.2
15.6
36.4
57.2
9.4
-13.9
-2.4
8.7
301.3
-1.0
12.4
289.8
88.1
19.0
37.2
87.1
23.6
6.4
13.3
15.3
399.4
-1.0
4.8
395.6
84.3
29.2
36.1
134.0
35.0
32.2
19.8
25.1
*
.9
490.9
105.0
22.3
30.3
137.0
38.0
67.6
50.8
39.9
464.8
.4
1.8
462.6
88.4
35.8
32.3
135.5
51.6
56.8
36.6
25.6
Flow of Funds
A45
1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors
2
3
4
5
6
7
8
9
10
11
19
20
21
22
23
1975
1976
1977
1978
1977
Ql
Q2
Q3
Q4
Ql
Q2
184.9
198.0
261.7
337.4
303.6
298.4
385.0
362.5
380.9
370.0
19.8
l.(
IX
5.1
34.1
9.5
8.2
7.2
9.2
52.6
11.9
14.7
6.7
19.4
44.3
22.5
16.2
-4.0
9.5
54.5
26.8
12.8
-2.0
16.9
85.4
40.2
20.4
4.3
20.5
59.2
14.8
23.6
2.6
18.2
79.3
39.7
16.3
4.3
19.1
81.4
40.8
18.8
-.1
21.9
121.8
65.6
23.0
10.4
22.8
116.3
48.7
27.2
1 .8
27.5
83.0
33.9
20.0
15.3
13.8
1.8
9.2
.3
8.4
8.4
2.8
21.4
9.2
.6
19.9
9.7
25.6
6.2
11.2
23.1
15.1
14.5
8.5
6.1
13.5
8.9
20.6
9.8
15.2
18.6
11.8
26.9
7.1
39.5
26.3
10.3
28.4
-5.8
26.2
27.4
1.8
24.9
26.1
26.5
22.6
17.4
25.7
2.1
36.2
25.4
17.8
28.7
6.2
69.2
29.7
28.7
39.9
-4.1
51.8
38.8
8.5
43.6
30.7
.3
39.8
154.1
16.0
14.7
13.1
48.2
62.1
182.0
18.8
14.7
10.0
48.4
97.2
7.2
155.3
22.4
16.5
20.9
26.9
75.4
6.7
167.3
75.7
15.6
32.8
23.2
16.1
-4.0
225.7
61.3
19.0
30.5
52.7
60.4
-2.0
278.2
44.1
29.2
22.3
83.2
103.7
4.3
271.8
64.7
20.5
19.6
59.7
109.9
2.6
241.7
20.9
38.2
14.9
90.0
82.0
4.3
328.9
64.8
33.0
31.1
92.0
107.9
-.1
270.4
26.1
25.0
23.6
91.2
115.0
10.4
303.5
56.3
22.3
19.3
75.6
142.8
12.8
326.8
54.5
35.8
21.5
79.8
150.6
15.3
Private financial intermediation
Credit market funds advanced by private
149.7
financial institutions
70.5
Commercial banking
48.2
Savings institutions
17.2
Insurance and pension funds
13.9
Other finance
165.4
86.5
36.9
23.9
18.0
126.2
64.5
26.9
30.0
4.7
119.9
27.6
52.0
41.5
-1.1
191.2
58.0
71.4
51.7
10.1
249.6
85.8
84.8
62.0
16.9
239.3
85.0
85.5
58.6
10.2
242.9
11.1
85.1
62.0
18.7
280.6
103.1
89.1
66.4
22.0
235.4
77.9
79.6
61.1
16.8
266.6
114.2
79.1
62.7
10.6
307.9
136.8
81.6
66.2
23.3
149.7
100.6
17.1
165.4
86.6
36.2
126.2
69.4
13.0
119.9
90.6
-2.5
191.2
121.5
9.6
249.6
136.0
32.0
239.3
140.3
31.6
242.9
113.7
40.3
280.6
165.4
17.3
235.4
124.5
38.7
266.6
112.3
71.1
307.9
124.0
52.8
32.0
4.6
.7
11.6
15.0
42.5
5.8
-1.0
18.4
19.4
43.8
16.8
-5.1
26.0
6.0
31.9
.9
-1.7
29.6
3.1
60.1
5.1
—. 1
34.8
20.3
81.6
11.6
4.3
48.0
17.8
67.3
-7.6
4.3
40.6
30.0
89.0
9.1
-7.9
50.4
37.4
97.9
20.4
5.5
51.9
20.0
72.3
24.4
15.2
48.9
-16.2
83.2
-2.4
-14.1
47.7
52.0
131.1
16.4
12.3
50.1
52.3
21.5
3.9
3.0
4.4
2.9
7.3
52.8
19.2
5.4
1.3
18.3
8.6
42.2
17.5
9.3
4.7
2.4
8.2
44.9
23.0
8.3
8.0
-.8
6.4
44.1
19.6
6.8
2.1
4.1
11.5
60.6
24.6
9.1
1.1
9.5
16.2
64.1
34.3
2.1
.9
12.7
14.3
39.1
-6.0
14.2
13.3
17.6
65.6
37.8
7.3
3.5
.5
16.5
73.6
32.5
12.9
.2
11.5
16.5
108.0
51.7
4.4
-3.5
37.2
18.3
71.8
20.1
9.6
-2.1
22.6
21.0
105.0
83.8
7.7
30.6
45.4
90.6
76.1
18.1
29.6
28.5
75.7
66.7
18.8
26.1
21.8
96.8
84.8
-14.1
39.4
59.4
128.8
112.2
-14.4
58.1
68.5
144.3
120.1
9.3
41.7
69.1
146.9
119.6
-13.5
62.9
70.2
118.3
101.5
4.8
27.7
69.0
182.2
151.4
13.1
60.0
78.3
129.7
108.0
32.7
16.3
59.0
123.2
110.5
5.4
52.8
52.3
133.9
110.5
19.8
33.6
57.0
21.2
16.8
4.4
14.4
10.5
3.9
8.9
2.6
6.3
12.0
5.8
6.2
16.6
9.3
7.3
24.2
15.9
8.3
27.3
20.8
6.6
16.8
12.2
4.6
30.8
14.0
16.8
21.7
16.5
5.2
12.7
1.8
11.0
23.5
13.5
9.9
126.5
LESS: F H L B a d v a n c e s
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Private domestic nonfinancial investors
32 Direct lending in credit markets
33
U.S. Government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Commercial paper
37
Other
38 Deposits and currency
39
Time and savings accounts
40
Large negotiable CD's
41
Other at commercial banks
42
At savings institutions
43
44
45
1974
196.1
24 Sources offunds
25
Private domestic deposits
26
Credit market borrowing
27
28
29
30
31
1973
165.5
By public agencies and foreign:
Total net advances
U.S. Government securities
Residential mortgages
FHLB advances to S&L's
Other loans and securities
Totals advanced, by sector
U.S. Government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1..
Private domestic funds advanced
12 Total net advances
13
U.S. Government securities
14 State and local obligations
15
Corporate and foreign bonds
16
Residential mortgages
17
Other mortgages and loans
18
1972
Money
7".
Demand deposits
Currency
46 Total of credit market instruments, deposits and currency
*
*
*
143.4
117.8
141.6
172.9
204.9
211.1
157.3
247.8
203.3
231.3
205.7
Public support rate (in per cent)
Private financial intermediation (in per
cent)
Total foreign funds
12.0
17.4
28.5
22.4
20.8
25.3
19.5
26.6
21.1
33.6
30.5
22.4
97.2
13.0
90.9
6.4
81.3
28.0
71.7
7.1
84.7
20.3
89.7
51.1
88.0
18.6
100.5
35.6
85.3
56.6
87.1
93.5
87.8
49.4
94.2
16.6
MEMO: Corporate equities not included
above
50 Total net issues
51
Mutual fund shares
52
Other equities
53 Acquisitions by financial institutions
54 Other net purchases
13.3
-.5
13.8
16.5
-3.3
8.9
-1.2
10.1
13.3
-4.4
3.4
-.7
4.1
5.8
-2.4
11.1
—. 1
11.2
9.7
1.4
11.4
-1.0
12.4
12.5
-1.1
3.8
-1.0
4.8
6.2
-2.4
-1.3
-2.6
1.3
6.0
-7.3
4.7
1.0
3.7
6.2
-1.5
4.2
-3.3
7.5
8.0
-3.8
7.4
.9
6.5
4.6
2.8
.9
2.1
.4
1.8
.4
1.8
47
48
49
NOTES BY LINE NUMBER.
1.
2.
6.
11.
12.
17.
25.
26.
28.
Line 2 of p. A-44.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by Federally sponsored credit agencies,
and net issues of Federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
Includes farm and commercial mortgages.
Sum of lines 39 and 44.
Excludes equity issues and investment company shares. Includes
line 18.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
*
.9
-1.5
2.3
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. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE.—Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow of Funds Section, Division of Research and Statistics, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.
A46
Domestic Nonfinancial Statistics • November 1978
2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1978
1975
Measure
1 Industrial production
2
3
4
5
6
7
Market groupings:
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
8
Industry groupings:
Manufacturing
1976
1977
Mar.
Apr.
May
June
July
Aug. r
Sept. r
117.8
129.8
137.0
140.9
143.2
143.9
144.9
146.1
147.0
147.7
119.3
118.2
124.0
110.2
123.1
115.5
129.3
127.2
136.2
114.6
137.2
130.6
137.1
134.9
143.4
123.2
145.1
136.9
141.6
138.9
145.9
129.1
151.4
139.9
143.0
140.5
147.5
130.8
152.1
143.7
143.1
140.5
147.0
131.6
152.6
145.1
144.0
141.1
147.0
133.0
154.7
146.4
145.0
142.2
147.7
134.7
155.6
147.9
146.0
143.2
148.4
136.0
155.9
148.7
146.4
143.7
148.8
136.7
156.5
149.6
116.3
129.5
137.1
141.4
143.5
144.3
145.5
146.7
147.6
148.3
73.6
73.6
80.2
80.4
82.4
81.9
82.7
81.9
83.7
84.0
83.9
84.5
84.3
85.1
84.7
85.7
85.0
86.0
85.
86.3
1
9
10
Capacity utilization (per cent)
Manufacturing
Industrial materials industries
11 Construction contracts2
162.3
190.2
253.0
254.0
279.0
332.0
249.0
286.0
289.0
300.0
12 Nonagricultural employment, total3
13 Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16 Service-producing
117.0
97.0
94.2
91.2
127.9
120.7
100.4
97.7
95.3
131.9
125.0
104.2
101.0
98.6
136.4
128.8
106.9
104.0
140.8
129.8
108.6
104.3
102.0
141.5
130.1
108.7
104.4
102.1
141.9
130.7
109.3
104.5
102.0
142.5
130.8
109.4
104.4
101.8
142.5
130.9
109.2
104.3
101.6
142.8
131.0
109.2
104.3
101.6
142.9
17 Personal income, total
18 Wages and salary disbursements
19
Manufacturing
200.4
188.5
157.3
220.4
208.2
177.1
244.0
230.1
198.6
262.7
249.5
218.0
266.4
253.5
219.5
268.4
254.6
220.7
270.6
256.9
222.3
274.3
259.2
224.9
275.7
259.7
224.5
277.0
260.7
226.0
20 Disposable personal income
199.6
217.5
239.3
184.6
203.5
224.4
239.5
244.8
246.3
244.9
251.7
253.1
161.2
163.4
170.5
170.3
181.6
180.6
189.8
189.1
191.5
191.5
195.3
194.5
196.7
195.9
197.8
195.3
199.3
196.9
4
21 Retail sales 5
101.8
267.0
265.5
245.4
6
22
23
Prices:
Consumer 7
Producer finished goods 8
1
Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and Department
of Commerce.
2
Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations
Systems Company, F. W. Dodge Division.
3
The establishment survey data in this table have been revised to conform to the industry definitions of the 1972 Standard Industrial Classification (SIC) Manual and to reflect employment benchmark levels for
March 1977. In addition, seasonal factors for these data have been
revised, based on experience through May 1978. Based on data in Employment and Earnings (U.S. Dept. of Labor). Series covers employees
only, excluding personnel in the Armed Forces.
4
Based on data in Survey of Current Business U.S. Dept. of Commerce). Series for disposable income is quarterly.
193.3
193.1
5 Based on Bureau of Census data published in Survey of Current
Business (U.S. Dept. of Commerce)
6
Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Dept. of Labor). Seasonally adjusted data for changes in
the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Dept. of Labor.
7 Beginning Jan. 1978, based on new index for all urban consumers.
8 Beginning with the November 1978 BULLETIN, producer price data
in this table have been changed to the BLS series for producer finished
goods. The previous data were producer prices for all commodities.
NOTE.—Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey of Current Business (U.S. Dept. of Commerce).
Figures for industrial production for the last 2 months are preliminary
and estimated, respectively.
2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1977
1977
1978
1978
1977
1978
Series
Q4
Ql
Q3 r
Q2
Output (1967 = 100)
Q4
Ql
Q2
Q3
Capacity (per cent of 1967 output)
Q4
Ql
Q2
Q3'
Utilization rate (per cent)
1 Manufacturing
139.9
139.8
144.4
147.5
168.7
170.3
172.0
173.7
82.9
82.1
84.0
84.9
2
3
148.2
135.6
148.2
135.4
154.1
139.3
157.7
142.1
175.1
165.3
176.8
166.9
178.5
168.5
180.2
170.2
84.6
82.0
83.8
81.1
86.3
82.7
87.5
83.5
138.9
139.2
145.1
148.7
168.9
170.4
171.7
173.0
82.2
81.7
84.5
86.0
137.7
109.4
155.0
159.5
117.9
132.3
188.9
121.9
137.9
110.5
158.0
163.1
115.3
136.5
194.9
119.1
144.0
117.5
163.2
167.7
117.1
139.7
201.4
125.5
150.2
124.2
163.0
168.0
116.8
135.0
203.8
127.5
172.8
145.5
180.4
188.9
143.0
152.5
223.6
145.7
174.0
145.8
182.3
190.8
143.5
153.6
226.6
147.2
175.2
146.1
184.4
193.1
144.1
154.8
230.1
147.8
176.3
146.5
186.5
195.4
144.7
155.8
233.5
148.4
79.6
75.2
85.9
84.5
82.4
86.7
85.4
83.7
79.3
75.8
86.7
85.5
80.3
88.9
86.0
80.9
82.2
80.4
88.5
86.8
81.2
90.3
87.5
84.9
85.2
84.8
87.4
86.0
80.7
86.7
87.3
85.9
5
6
7
8
9
10
11
12
Primary processing
Advanced processing
Basic metal
Textile, paper, and chemical
Textile
Paper
Energy
Labor Market
A47
2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
Category
1975
1976
1978
1977
Apr.
May
June
July
Aug.
Sept.
Oct.
Household survey data
1 Noninstitutional population
1
153,449
2 Labor force 1(including Armed
Forces)
94,793
3 Civilian labor force
92,613
Employment:
2
4
Nonagricultural industries
81,403
5
Agriculture
3,380
Unemployment:
6
Number
7,830
7
Rate (per cent of civilian labor
8.5
force)
8 Not in labor force
58,655
156,048
158,559
160,504
160,713
160,928
161,148
161,348
161,570
161,829
96,917
94,773
99,534
97,401
101,902
99,784
102,374
100,261
102,671
100,573
102,734
100,618
102,671
100,549
102,993
100,870
103,184
101,062
84,188
3,297
87,302
3,244
90,526
3,275
90,877
3,235
91,346
3,473
91,038
3,387
91,221
3,360
91,457
3,411
91,812
3,380
7,288
6,855
5,983
6,149
5,754
6,193
5,968
6,002
5,870
7.7
7.0
6.0
6.1
5.7
6.2
5.9
6.0
5.8
59,130
59,025
58,602
58,340
58,257
58,414
58,677
58,577
58,645
86,033
20,302
882
4,317
4,827
19,469
4,690
15,989
15,557
r
86,149
r
20,278
r
887
r
4,298
r
r
86,167
r
20,279
r
891
r
4,285
r
P86,597
2*20,419
p
897
p
4,344
p
4,907
p
19,638
p
4,737
p
l6,197
*15,458
Establishment survey data 4
9 Nonagricultural payroll employment3
10
Manufacturing
11
Mining
12 Contract construction
13 Transportation and public utilities.
14 Trade
15 Finance
16 Service
17 Government
76,945
18,323
751
3,529
4,542
17,053
4,165
13,892
14,683
79,382
18,997
779
3,576
4,582
17,754
4,271
14,552
14,869
82,256
19,647
809
3,827
4,695
18,487
4,452
15,247
15,078
1
Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and
Earnings (U.S. Dept. of Labor).
2
Includes self-employed, unpaid family, and domestic service workers.
3
Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,
85,418
20,282
867
4,164
4,847
19,252
4,623
15,866
15,517
85,618
20,297
869
4,175
4,847
19,335
4,637
15,896
15,562
85,996
20,316
879
4,278
4,881
19,412
4,670
15,963
15,597
4,846
'"19,523
r
4,707
r
16,074
••15,536
4,855
'•19,539
r
4,721
r
16,143
r
15,454
unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employment
and Earnings (U.S. Dept. of Labor).
4
The establishment survey data in this table have been revised to
conform to the industry definitions of the 1972 Standard Industrial
Classification (SIC) Manual and to reflect employment benchmark
levels for March 1977. In addition, seasonal factors for these data have
been revised, based on experience through May 1978.
A48
Domestic Nonfinancial Statistics • November 1978
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
proportion
1977
1977
average
Aug.
Sept.
1978
Oct.
Mar.
Apr.
May
June
July
aug.
Sept.? Oct. e
Index (1967 == 100)
MAJOR MARKET
1 Total index
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
8
9
10
11
12
Consumer goods
Durable consumer goods
Automotive products
Autos and utility vehicles
Autos
Auto parts and allied goods
13
14
15
16
17
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
18
19
20
21
Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco
22
23
24
25
26
Nonfood staples
Consumer chemical products
Consumer paper products
Consumer energy products
Residential utilities
27
28
29
30
31
Equipment
Business equipment
Industrial equipment
Building and mining equipment....
Manufacturing equipment
Power equipment
32
33
34
35
Commercial transit, farm equipment..
Commercial equipment
Transit equipment
Farm equipment
36
Defense and space equipment
Intermediate products
37
Construction supplies
38
Business supplies
39
Commercial energy products
40
41
42
43
44
Materials
Durable goods materials
Durable consumer parts
Equipment parts
Durable materials n.e.c
Basic metal materials
45
46
47
48
49
Nondurable goods materials
Textile, paper, and chemical materials
Textile materials
Paper materials
Chemical materials
50
51
52
53
54
Containers, nondurable
Nondurable materials n.e.c
Energy materials
Primary energy
Converted fuel materials
55
56
57
58
Supplementary groups
Home goods and clothing
Energy, total
Products
Materials
For NOTE see opposite page.
100.00 137.1 138.1 138.5 138.9 140.9 143.2 143.9 144.9 146.1 147.0 147.7 148.4
60.71 137.1 138.4 138.8 138.9 141 6 143.0 143.1 144.0 145.0 146.0 146.4 147.3
47.82
134.9
136.3
136.8
136.5
27.68 143.4 144.7 144.9 144.9
20.14 123.2 124.9 125.6 125.0
12.89 145.1 146.1 146.5 147.8
39.29 136.9 137.6 137.9 138.9
138.9
140.5
140.5
141.1
142.2
143.2
143 7
145.9
129.1
151.4
139.9
144.8
147.5
130.8
152.1
143.7
147.0
131.6
152.6
145.1
147.0
133.0
154.7
146.4
147.7
134.7
155.6
147.9
148.4
136.0
155.9
148.7
148.8
136.7
156.5
149.6
150.2
137.5
156.8
150.2
7.89
153.1
154.7
155.6
156.8
157.5
161.8
160.2
160.6
160.9
161.1
177.2
173.1
150.9
187.3
177.0
172.6
151.6
188.1
175.8
171.0
149.7
188.5
163.7
174.2
169.2
148.4
186.8
179.4
176.1
154.3
187.6
160.3
2.83
2.03
1.90
.80
184.3
182.7
159.1
188.2
180.0
175.6
151.6
191.5
179.9
173.4
149.8
193.9
182.2
176.7
152.7
196.1
182.1
175.6
151.1
198.0
178.0
170.2
144.4
197.9
187.0
182.7
155.0
197.5
5.06
1.40
1.33
1.07
2.59
141.3
127.3
130.5
152.2
144.3
142.1
129.6
133.0
154.8
143.6
143.6
129.4
134.1
159.0
144.9
144.2
128.6
131.6
160.5
145.8
147.2
135.4
137.9
159.3
148.7
149.2
142.2
144.7
158.9
149.0
148.9
138.3
140.7
163.4
148.8
149.7
139.0
141.0
166.0
148.8
148.9
133.7
136.8
168.5
149.1
149.5
133.9
135.6
168.2
150.1
150.3 150.8
134.4 134.5
136.9
169.9
150.9 151.4
139.6
140.6
140.7
140.1
141.3
141.8
141.7
141.6
142.4
143.2
144.3
19.79
144.7
4.29 125.2 126.4 128.3 128.0 122.4 124.9 125.4 124.8 125.1 126.6
15.50 143.6 144.6 144.1 143.5 146.4 146.6 146.2 146.3 147.3 147.9 uk'.i 149!i
8.33 135.5 137.9 137.1 135.2 138.7 140.8 139.9 139.0 140.2 140.7 141.4
7.17
2.63
1.92
2.62
1.45
152.9
180.5
117.1
151.4
159.0
152.4
181.8
117.0
148.9
156.1
149.2
151.1
152.4
182.5
116.4
148.6
153.8
153.4
183.7
117.6
149.1
155.8
155.3
182.1
118.9
155.0
166.9
153.3
182.5
117.7
149.9
159.0
153.4
182.0
117.9
150.7
157.2
154.8
185.5
118.0
150.8
159.0
155.5 156.2 157.3 157.7
186.7 188.0 188.4
117.5 117.5 119.9
151.9 152.5 153.7
159.9
152.1
152.6
157.4
159.3
160.2
161.8
163.8
165.4
166.1
141.4
204.5
117.6
141.4
166.8
141.8
205.7
118.5
139.8
146.9
221.7
118.3
148.8
147.8
225.1
119.0
147.3
149.7
226.0
121.3
149.2
150.9
227.3
122.8
149.2
151.9
228.9
122.6
152.8
152.9
228.6
123.9
154.6
153.2
227.6
124.2
155.8
153.6
227.6
124.9
156.2
5.86 161.6 163.4 164.4
3.26 191.6 193.0 193.7
1.93 117.8 121.9 125.1
.67 142.3 139.2 134.9
165.1
195.4
123.3
142.1
169.4
202.0
126.1
137.0
172.6
203.8
133.7
132.9
172.3
204.2
132.2
131.9
174.4
206.9
132.3
137.3
177.5
210.6
134.9
138.5
179.8
212.2
138.5
140.3
181.1 182.0
213.9 214.7
139.7 140.5
141.4
78.9
81.9
82.9
83.6
84.6
85.9
86.5
12.63
6.77 138.5 140.4
1.44 202.5 203.9
3.85 113.9 115.3
1.47 140.2 143.7
7.51
79.6
80.8
80.9
87.5
88.1
6.42 140.8 141.7 143.2 144.9 147.9 148.5 150.4 152.1 153.5 154.2 155.3 155.4
6.47 149.5 150.6 149.7 150.5 155.0 155.6 155.0 157.0 157.6 157.6 157.8
1.14 164.6 165.0 162.7 163.0 164.3 163.5 162.7 163.0 164.1 165.1 166.5
20.35
134.5
135.4
135.7
137.1
138.6
142.7
148.7
150.3
151.7
4.58
5.44
10.34
5.57
132.0
143.1
131.1
110.9
135.2
145.6
130.1
108.7
135.8
146.8
129.8
106.8
135.4
147.6
132.4
110.0
133.1
151.3
134.5
110.4
136.8 137.9 138.7
154.8 155.8 157.4
138.9 140.3 141.8
116.7 117.5 118.2
142.0
161.7
144.7
121.7
142.2
162.9
147.2
124.9
144.3 145.0
164.0 164.8
148.4 149.0
126.0
10.47
143.9
145.4
152.3
153.5
155.1
153.9
154.4
160.5
162.0
163.5
164.1
162.5
162.5
163.9
7.62
1.85
1.62
4.15
158.3
113.0
133.5
188.2
159.6
112.2
135.7
190.1
159.0
114.5
135.2
188.2
160.0
118.5
134.4
188.5
165.7
115.1
137.8
199.2
166.4
116.5
139.2
199.5
167.9
116.7
140.1
201.7
168.8
118.0
139.9
202.9
168.3
117.1
135.1
204.0
166.8
115.9
131.5
203.4
169.0 168.9
117.4
138.5
203.9
1.70
1.14
8.48
4.65
3.82
150.9
125.3
122.4
107.3
140.7
156.2
122.4
121.4
106.8
139.1
151.2
124.1
123.5
110.0
140.0
148.9
125.4
124.0
112.2
138.4
158.1
129.3
117.5
104.5
133.3
160.5
134.6
123.9
115.5
134.1
161.9
135.8
125.2
114.4
138.6
162.8
135.0
127.5
116.1
141.4
155.4
135.7
127.9
116.7
141.6
161.7
134.6
127.7
116.1
141.9
161.3
133.7
127.0 129.0
112.7
144.2
9.35
12.23
3.76
8.48
133.9
132.5
155.4
122.4
134.9
131.4
153.7
121.4
136.5
132.5
153.0
123.5
136.8
133.0
153.3
124.0
135.9
129.8
157.9
117.5
138.0
133.1
154.1
123.9
138.2
134.2
154.3
125.2
138.3
135.9
154.6
127.5
138.0
136.4
155.6
127.9
139.0
136.5
156.2
127.7
140.2 140.8
136.4 137.9
157.5
127.0 i29.0
163.7
Output
A49
2.13 Continued
Grouping
SIC
code
1967
proportion
1977
average
1977
Aug.
Sept.
1978
Oct.
Mar.
Apr.
May
June
July
Aug.
Sept.f Oct.*
142.5
128.0
158.6
180.1
142.6 142.5 142.1 143.8
127.1 126.2 124.6 127.9
159.9 160.6 161.4 161.7
182.1
Index (1967 = 100)
MAJOR INDUSTRY
136.2
117.8
156.5
175.5
135.1
118.0
154.1
173.7
135.8
119.6
154.0
173.6
138.2
119.3
159.5
178.8
140.9
126.7
157.0
177.1
1 Mining and utilities.,
2
Mining
3
Utilities
4
Electric
12.05
6.36
5.69
3.88
5 Manufacturing.,
6
Nondurable..
7
Durable
87.95 137.1 138.6 139.0 139.4 141.4 143.5 144.3 145.5 146.7 147.6 148.3 149.1
35.97 148.1 149.4 149.5 149.6 151.4 153.2 154.0 154.9 155.0 155.6 156.4 156.6
51.98 129.5 131.3 131.7 132.4 134.4 136.9 137.6 139.0 141.1 142.1 142.7 143.9
8
9
10
11
Mining
Metal mining
Coal
Oil and gas extraction
Stone and earth minerals.
12
13
14
15
16
Nondurable manufactures
Foods
Tobacco products
Textile mill products...
Apparel products
Paper and products
17
18
19
20
21
22
23
24
25
10
11, 12
13
14
Printing and publishing
Chemicals and products...
Petroleum products
Rubber & plastic products.
Leather and products
Durable manufactures
Ordnance, private & government.
Lumber and products
Furniture and fixtures
Clay, glass, stone products
134.4
115.4
155.7
175.4
140.9
127.2
156.0
175.0
.51
.69
4.40
.75
105.4 70.0 71.4 80.0 127.6 122.3 120.0 121.1
118.0 113.6 133.0 141.4 78.4 129.5 131.7 136.4
118.0 119.3 119.6 119.4 123.3 127.3 126.3 127.1
124.9 125.0 126.7 128.1 128.2 128.9 130.1 130.7
8.75
.67
2.68
3.31
3.21
137.9
114.3
137.1
124.2
137.4
139.3
117.0
136.6
124.1
140.3
138.3
113.5
140.7
127.7
139.1
137.3
113.8
142.4
129.0
137.9
141.1
115.6
135.1
122.8
144.9
143.1
121.0
138.1
126.1
145.7
142.8
120.2
138.5
125.8
146.6
4.72
7.74
1.79
2
.86
124.9
180.7
141.0
232.2
75.3
125.0
182.6
139.9
237.4
74.5
124.2
181.3
141.9
239.5
74.0
125.7
182.3
141.4
236.3
77.0
129.1
185.2
140.1
243.1
72.1
128.6
185.5
141.7
249.1
76.0
128.2
188.1
143.4
252.7
75.7
117.0
131.7
126.8
131.3
117.9
124.9
126.5
131.6
117.0
114.7 145.5
125.6 125.3
132.8
141.8
122.7
140.4
126.8
148.0
142.9
120.8
141.0
124.5
140.5
143.8 144.0
118.6
139.4 141.2
127.6
141.4 143.9 144.3
128.7
191.1
142.8
255.5
75.1
130.3
192.3
144.3
259.1
74.5
129.8
192.1
145.7
260.6
74.0
130.3 130.3
192.4
146.9 i46.8
261.8
73.3
19,91
24
25
32
3.64 73.9 75.5 75.1 74.4 72.7 73.0 74.3 74.7 75.2 76.4 76.1
1.64 133.4 131.8 137.1 135.7 136.5 136.9 136.5 138.7 138.1 136.9 138.7
1.37 140.9 142.9 145.6 146.6 149.5 148.9 152.8 156.2 158.1 159.5 161.6
2.74 146.1 148.8 145.5 148.0 154.2 156.7 157.9 159.8 158.8 160.2 161.6
76.6
26
27
28
29
30
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery...
Electrical machinery
33
331, 2
34
35
36
6.57
4.21
5.93
9.15
8.05
112.5
110.6
134.0
145.2
143.9
109.0
104.6
133.6
147.4
144.6
113.5
107.7
133.8
148.9
144.2
106.1
96.4
138.1
151.5
149.5
114.3
109.0
139.5
152.2
152.3
115.5
110.5
140.4
152.9
152.9
117.5
114.5
142.3
154.6
154.1
123.0
119.0
144.0
156.1
157.9
124.9
120.2
145.5
157.3
156.8
125.9
121.8
145.8
158.2
157.7
146.1
159.2
157.9
31
32
33
34
35
Transportation equipment
Motor vehicles & parts
Aerospace & misc. trans, eq.
Instruments
Miscellaneous mfrs
37
371
372-9
38
39
9.27 121.1 124.3
4.50 159.7 164.4
4.77 84.7 86.5
2.11 159.1 158.3
1.51 149.1 147.5
125.5
165.6
87.7
160.3
150.7
124.3
168.4
82.8
162.2
151.0
126.5
165.1
90.1
168.7
153.7
130.5
171.7
91.8
170.5
152.9
130.1
168.3
93.9
169.8
152.7
130.4
167.7
95.0
170.9
153.5
132.1
169.7
96.5
172.2
153.2
133.4
171.0
98.3
174.5
153.8
133.6
168.7
100.6
175.0
154.0
137.6
176.1
101.4
175.9
154.3
612.8
472.5
324.7
147.9
614.1
473.0
324.2
148.8
619.5
478.5
328.0
150.4
110.2
103.4
130.9
144.8
141.9
126.5
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
37
Final products
38
Consumer goods.,
39
Equipment
1507.4
i390.9
1277.5
1113.4
40
1116.6 131.9 133.1
Intermediate products.
583.9
452.1
317.5
134.6
590.2
456.9
320.0
137.0
i 1972 dollars.
NOTE.—Published groupings include some series and subtotals not
590.1
456.8
319.1
137.6
591.3
457.8
319.5
138.1
601.1
463.5
321.6
142.0
608.8
470.7
326.3
144.4
606.8
468.2
324.0
144.2
608.9
468.9
323.0
146.0
610.3
469.6
323.4
146.4
133.5 133.8 137.5 138.3 138.6 140.3 140.7
140.6 141.1 141.5
shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), Dec. 1977.
A50
Domestic Nonfinancial Statistics • November 1978
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1978
Item
1975
1976
1977
Mar.
Apr.
May
June
July'
Aug.1
Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
927
669
278
1,296
894
402
18,133
12,265
5,861
1,647
1,037
610
1,740
1,157
583
1,597
1,058
539
1,821
1,123
698
1,632
1,035
597
1,563
1,020
543
1,707
1,098
609
4 Started
5
1-family
6
2-or-more-family
1,160
892
268
1,538
1,163
377
1,986
1,451
535
2,047
1,429
618
2,165
1,492
673
2,054
1,478
576
2,124
1,441
683
2,119
1,453
666
2,044
1,454
590
2,073
1,451
622
7 Under construction, end of period 1
8
1-family
9
2-or-more-family
1,003
531
472
1,147
655
492
1,442
829
613
1,260
778
483
1,274
774
500
1,282
770
513
r
1,296
r
114
522
1,299
780
519
1,306
791
515
1,297
866
430
1,362
1,026
336
1,652
1,254
398
1,821
1,363
458
1,943
1,515
428
1,854
1,426
428
r
1,890
r
l,344
'546
1,942
1,286
656
1,950
1,345
605
213
246
277
285
252
258
263
232
283
290
544
383
639
433
819
407
793
404
827
410
846
412
'831
418
794
418
779
420
775
422
39.3
38.9
44.2
41.6
48.9
48.2
53.2
53.3
55.7
'56.7
54.9
56.6
57.1
42.5
48.1
54.4
60.0
59.3
62.3
'63.2
63.0
63.3
64.7
2,452
3,002
3,572
3,770
3,880
3,770
3,780
3,890
4,080
3,950
35.3
39.0
38.1
42.2
42.9
47.9
46.5
51.1
48.2
53.6
47.8
54.8
48.4
55.1
49.4
56.5
50.3
57.5
50.2
57.7
10 Completed
11
1-family
12 2-or-more-family
13 Mobile homes shipped
Merchant builder activity in
1-family units:
Number sold
Number for sale, end of 2period i . .
Price (thous. of dollars)
Median:
Units sold
Units for sale
Average:
Units sold
14
15
16
17
18
EXISTING UNITS (1-family)
19 Number sold
Price of units sold
(thous. of
dollars):2
20
Median
21
Average
Value of new construction
(millions of dollars)
4
CONSTRUCTION
22 Total put in place
23 Private
24
Residential
25
Nonresidential, t o t a l . . . .
Buildings:
26
Industrial
27
Commercial
Public utilities and other.
30 Public
31
Military
32
Highway
33
Conservation and development..,
34
Other 3
134,293
147,481
170,685
185,381
195,261
201,555
205,843
208,300
206,464
93,624
46,472
47,152
109,499
60,519
48,980
133,652
81,067
52,585
147,709
88,141
59,568
153,728
92,433
61,295
156,456
94,533
61,923
160,594
94,902
65,692
159,912
93,998
65,914
158,087
92,555
65,532
8,017
12,804
5,585
20,746
7,182
12,757
6,155
22,886
7,182
14,604
6,226
24,573
9,199
16,227
6,358
27,784
9,244
17,177
6,806
28,068
8,735
18,546
6,935
27,707
11,335
19,246
6,761
28,350
11,170
19,463
7,036
28,245
12,043
18,835
6,721
27,933
40,669
1,392
10,861
3,256
25,160
37,982
1,508
9,756
3,722
22,996
37,033
1,478
9,170
3,765
22,620
37,672
1,405
8,125
4,237
23,905
41,532
1,500
8,491
4,586
26,955
45,099
1,446
10,556
4,172
28,925
45,249
1,358
10,338
3,508
30,045
48,388
1,493
10,015
4,947
31,972
48,376
1,481
1 Not at annual rates.
Not seasonally adjusted.
Beginning Jan. 1977 Highway imputations are included in Other.
4
Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
2
3
NOTE.—Census Bureau estimates for all series except (a) mobile
homes, which are private, domestic shipments as reported by the Manufactured Housing Institute and seasonally adjusted by the Census Bureau,
and (b) sales and prices of existing units, which are published by the
National Association of Realtors. All back and current figures are available from originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.
Prices
A51
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—
Item
1977
Sept
1978
Sept.
3 months (at annual rate) to—
1977
Dec.
1 month to—
1978
Mar.
June
1978
Sept.
May
June
July
Aug.
Sept.
Index
level
Sept.
1978
(1967
= 100)2
Consumer prices 3
1 All items
6.6
8.3
4.9
9.3
11.4
7.8
.9
.9
.5
.6
.8
199.3
2 Commodities
3 Food
4
Commodities less food
5
Durable
6
Nondurable
5.7
7.1
4.9
4.8
5.0
7.9
10.8
6.7
7.7
5.2
4.9
4.2
5.4
5.2
5.1
9.3
16.4
6.1
8.7
3.1
11.2
20.4
7.2
9.0
5.5
6.3
3.0
7.8
8.3
7.3
.9
1.5
.6
.8
.4
.9
1.3
.6
.8
.4
.4
.0
.6
.7
.5
.4
.3
.5
.5
.5
.7
.5
.9
.9
.8
190.5
215.6
177.8
177.2
177.1
7 Services
8
Rent
9
Services less rent
7.9
6.2
8.2
9.1
7.1
9.4
4.9
6.3
4.8
9.1
6.2
9.6
11.8
8.5
12.2
10.3
7.5
10.8
1.0
.7
1.0
.9
.6
.9
.8
.5
.9
.8
.5
.9
.8
.9
215.6
166.4
224.6
6.4
6.2
7.6
7.8
7.9
12.0
5.0
5.3
7.1
8.1
8.0
12.2
9.3
9.9
14.5
9.1
8.3
14.7
.8
.8
1.1
.7
.9
1.2
.7
.7
1.2
.7
.6
1.0
.8
.7
1.3
195.1
192.4
234.2
10
11
12
Other groupings:
All items less food
All items less food and energy
Homeownership
Producer prices, formerly Wholesale prices
13 Finished goods
6.6
8.2
7.2
9.6
Ml.4
5.0
.7
14
15
16
17
6.5
6.7
6.4
6.7
8.2
10.2
7.1
8.3
5.4
7.4
4.7
10.9
10.9
21.2
5.3
7.1
M2.5
14.6
Ml.2
'8.7
4.2
-1.0
7.6
6.4
.6
.4
.8
.8
5.0
6.8
9.0
6.6
8.3
4.2
13.9
9.2
r
9.0
r
6.6
5.2
6.7
.5
.5
7.1
-3.7
15.0
20.1
20.1
27.6
16.2
40.3
Ml.6
28.1
12.2
-9.4
.4
.0
Consumer
Foods
Excluding foods
Capital Equiptment
18 Materials
19 Intermediate1
Crude:
20
Nonfood
21
Food
1
Excludes intermediate materials for food manufacturing and manufactured animal feeds.
2 Not seasonally adjusted.
.7
.5
-.1
.9
196.9
.8
1.2
>\5
r
.l
.4
- r. 3
.9
r
.6
-.3
-1.5
.4
.4
.9
1.7
.5
.6
195.1
209.4
186.0
201.0
.6
.3
'.3
.1
.7
.9
.6
223.3
219.6
1.6
1.9
r
2.4
-2.5
1.0
1.9
294.9
218.5
r
r
.7
r
-.5
-1.8
3
Beginning Jan. 1978 figures for consumer prices are those for all urban
consumers.
SOURCE.—Bureau of Labor Statistics.
A52
Domestic Nonfinancial Statistics • November 1978
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1975
1976
1977
1977
Q2
1978
Q3
Q4
Ql
Q2
Q3 p
Gross national product
1 Total
By source:
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2
3
4
5
6
7
8
9
10
11
12
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm
1,528.8
1,700.1
1,887.2
1,867.0
1,916.8
1,958.1
1,992.0
2,087.5
2,141.1
979.1
132.6
408.9
437.5
1,090.2
156.6
442.6
491.0
1,206.5
178.4
479.0
549.2
1,188.6
175.6
473.6
539.4
1,214.5
177.4
479.7
557.5
1,255.2
187.2
496.9
571.1
1,276.7
183.5
501.4
591.8
1,322.9
197.8
519.3
605.8
1,354.5
199.3
529.4
625.8
190.9
201.6
150.2
53.8
96.4
51.5
49.5
243.0
232.8
164.6
57.3
107.3
68.2
65.8
297.8
282.3
190.4
63.9
126.5
91.9
88.9
295.6
278.6
187.2
63.4
123.8
91.4
88.4
309.7
287.8
193.5
65.4
128.1
94.3
91.2
313.5
300.5
200.3
67.4
132.8
100.2
97.5
322.7
306.0
205.6
68.5
137.1
100.3
97.3
345.4
325.3
220.1
76.6
143.5
105.3
102.1
351.7
334.1
225.4
79.5
145.9
108.8
105.5
13
14
Change in business inventories
Nonfarm
-10.7
-14.3
10.2
12.2
15.6
15.0
17.0
16.5
21.9
22.0
13.1
10.4
16.7
16.9
20.1
22.1
17.6
18.6
15
16
17
Net exports of goods and services
Exports
Imports
20.4
147.3
126.9
7.4
163.2
155.7
-11.1
175.5
186.6
-5.9
178.1
184.0
— 7.0
180.8
187.8
-23.2
172.1
195.2
-24.1
181.7
205.8
-5.5
205.4
210.9
-6.5
210.9
217.3
18
19
20
Government purchases of goods and services 338.4
Federal
123.1
State and local
215.4
359.5
129.9
229.6
394.0
145.1
248.9
388.8
142.9
245.9
399.5
146.8
252.7
412.5
152.2
260.3
416.7
151.5
265.2
424.7
147.2
277.6
441.3
156.1
285.2
1,539.6
686.6
259.0
427.5
697.6
144.7
1,689.9
760.3
304.6
455.7
778.0
161.9
1,871.6
832.6
341.3
491.3
862.8
191.8
1,850.0
825.8
339.1
486.7
850.0
191.3
1,894.9
844.7
346.5
498.2
875.3
196.8
1,945.0
859.6
347.4
512.2
893.6
204.9
1,975.3
861.8
351.2
510.6
926.4
203.8
2,067.4
912.2
375.8
536.4
952.0
223.4
2,123.4
930.7
381.4
549.3
977.6
232.8
-10.7
-8.9
-1.8
10.2
5.3
4.9
15.6
8.4
7.2
17.0
9.1
7.9
21.9
11.9
10.0
13.1
6.3
6.8
16.7
14.8
1.9
20.1
10.8
9.3
17.6
11.2
6.4
1,202.3
1,271.0
1,332.7
1,325.5
1,343.9
1,354.5
1,354.2
1,382.6
1,394.3
By major type of product:
Final sales, total
Goods
Durable
Nondurable
Services
Structures
21
22
23
24
25
26
27
28
29
Change in business inventories
Durable goods
Nondurable goods
30
MEMO: Total GNP in 1972 dollars
National income
31 Total
1,215.0
1,359,2
1,515.3
1,499.3
1,537.6
1,576.9
1,603.1
1,688.1
931.1
805.9
175.4
630.4
125.2
1,036.8
890.1
187.6
702.5
146.7
1,153.4
983.6
200.8
782.9
169.8
1,140.5
973.4
198.1
775.3
167.1
1,165.8
993.6
201.7
791.9
172.2
1,199.7
1,021.2
208.1
813.1
178.4
1,241.0
1,050.8
211.4
839.3
190.2
1,287.8
1,090.2
213.9
876.3
197.6
1,314.7
1,111.2
216.9
894.3
203.5
60.1
65.1
69.7
77.0
79.4
90.4
78.6
88.5
79.9
92.2
82.4
96.1
90.2
100.0
93.6
104.0
95.6
107.9
39 Proprietors' income
40
Business
and professional1
41
Farm1
87.0
63.5
23.5
88.6
70.2
18.4
99.8
79.5
20.3
98.9
78.9
2tt. 0
97.2
80.8
16.5
107.3
82.3
25.1
105.0
83.1
21.9
110.1
86.1
24.0
113.2
89.7
23.5
42 Rental income of persons2
22.4
22.5
22.5
22.4
22.4
22.7
22.8
22.2
24.4
95.9
120.4
-12.4
-12.0
127.0
155.9
-14.5
-14.4
144.2
173.9
-14.8
-14.9
143.7
175.1
-16.6
-14.8
154.8
177.5
-7.7
-15.0
148.2
178.3
-14.8
-15.3
132.6
172.1
-23.5
-16.1
163.4
205.5
-24.9
-17.2
-20.9
-19.3
78.6
84.3
95.4
93.7
97.3
99.0
101.7
104.6
107.0
32 Compensation of employees
33
Wages and salaries
34
Government and Government enterprises
35
Other
36
Supplement to wages and salaries
37
Employer contributions for social
insurance
38
Other labor income
1
43 Corporate profits1 3
44
Profits before tax
45
Inventory valuation adjustment
46
Capital consumption adjustment
47 Net interest
1 With inventory valuation and capital consumption adjustments.
With capital consumption adjustments.
2
3
For after-tax profits, dividends, etc., see Table 1.50.
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).
National Income Accounts
A53
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1975
1976
1978
1977
1977
Account
Q2
Q3
Q4
Ql
Q2
Q3*
Personal income and saving
1 Total personal income.
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises.,
1,255.5
1,380.9
1,529.0
1,508.6
1,543.7
1,593.0
1,628.9
1,682.4
1,727.2
805.9
275.0
211.0
195.3
160.1
175.4
890.1
307.5
237.5
216.4
178.6
187.6
983.6
343.7
266.3
239.1
200.1
200.8
973.4
342.0
264.1
236.5
196.8
198.1
993.6
348.3
269.3
241.2
202.3
201.7
1,021.2
357.1
277.3
247.5
208.5
208.1
1,050.8
365.9
286.9
257.0
216.5
211.4
1,090.2
387.0
296.1
266.4
222.8
213.9
1,110.9
395.9
301.9
270.4
228.0
216.7
65.1
77.0
90.4
88.5
92.2
96.1
100.0
104.0
107.9
9 Proprietors' income1
10
Business
and professional1.
11
Farm1
87.0
63.5
23.5
88.6
70.2
18.4
99.8
79.5
20.3
98.9
78.9
20.0
97.2
80.8
16.5
107.3
82.3
25.1
105.0
83.1
21.9
110.1
86.1
24.0
113.2
89.7
23.5
12 Rental income of persons 2.
22.4
22.5
22.5
22.4
22.4
22.7
22.8
22.2
24.4
13 Dividends
31.9
37.9
43.7
42.7
44.1
46.3
47.0
48.1
50.1
14 Personal interest income...
115.5
126.3
141.2
139.1
143.6
146.0
151.4
156.3
160.9
15 Transfer payments
16
Old-age survivors, disability, and health
insurance benefits
178.2
193.9
208.8
204.0
211.9
215.9
219.2
220.6
230.2
81.4
92.9;
105.0
101.8
108.5
110.1
112.1
113.7
120.9
50.5
55.5
61.0
60.5
61.4
62.6
67.2
69.2
70.4
1,255.5
1,380.9
1,529.0
1,508.6
1,543.7
1,593.0
1,628.9
1,682.4
1,727.2
168.8
196.5
226.0
223.3
224.6
233.3
237.3
249.1
262.5
1,391.6
1,433.3
1,464.7
8 Other labor income
17
LESS: Personal contributions for social
insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments....
20 EQUALS: Disposable personal i n c o m e . . .
1,086.7
1,184.4
1,303.0
1,285.3
1,319.1
1,359.6
21
1,003.0
1,116.3
1,236.1
1,217.8
1,244.8
1,285.9
1,309.2
1,357.0
1,390.2
76.3
74.4
6,375
4,086
4,418
5.1
LESS: Personal outlays
22 EQUALS: Personal saving
83.6
68.0
66.9
67.5
74.3
73.7
82.4
5,629
3,626
4,025
7.7
5,906
3,808
4,136
5.7
6,144
3,954
4,271
5.1
6,120
3,922
4,241
5.3
6,191
3,953
4,293
5.6
6,226
4,030
4,365
5.4
6,215
4,009
4,370
5.9
6,333
4,060
4,399
5.3
MEMO ITEMS :
Per capita (1972 dollars):
23
Gross national product
24
Personal consumption expenditures....
25
Disposable personal income
26 Saving rate (per cent)
Gross saving
27 Gross private saving.
28
29
30
Personal saving
Undistributed corporate profits1
Corporate inventory valuation adjustment...
31
32
33
Capital consumption allowances:
Corporate
Noncorporate
Wage accruals less disbursements
34 Government surplus, or deficit (—), national
income and product accounts
35
Federal
36
State and local
259.8
270.7
290.8
288.6
310.7
304.3
305.4
319.9
83.6
14.2
-12.4
68.0
24.8
-14.5
66.9
28.7
-14.8
67.5
28.7
-16.6
74.3
38.0
-7.7
73.7
28.0
-14.8
82.4
15.6
-23.5
76.3
30.3
-24.9
101.3
60.7
111.5
66.3
120.9
74.3
119.8
72.6
122.6
75.9
124.6
77.9
127.4
79.9
130.5
82.8
-64.4
-70.6
6.2
-33.2
-53.8
20.7
-18.6
- 4c 8 . 1
29.6
-11.8
-40.3
28.5
-25.2
-56.4
31.2
-29.6
-58.6
29.0
—21.1
-52.6
31.5
6.2
-23.6
29.8
202.8
190.9
11.9
241.7
243.0
-1.2
276.9
297.8
-20.9
280.4
295.6
-15.2
292.6
309.7
-17.1
279.5
313.5
-34.1
286.4
322.7
-36.3
326.6
345.4
-18.9
7.4
4.2
4.7
3.7
7.1
4.8
2.2
.5
74.4
•-26:9'
134.7
86.1
37 Capital grants received by the United States,
net
38 Investment
39
Gross private domestic.
40 Net foreign
41 Statistical discrepancy.
1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustment.
331.5
351.7
-20.3
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).
A54
3.10
International Statistics • November 1978
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1977
Item credits or debits
1976
1975
Q2
1 Merchandise exports
3
Merchandise trade balance
2
107,088
98,041
9,047
114,694 120,555
124,047 r r 151,658
- 9 , 3 5 3 —31,103
4 Military transactions, net
5 Investment income, net 3
6 Other service transactions, net
-876
12,795
2,095
312
15,933
2,469
7 Balance on goods and services3,4
23,060
9,361
-1,721
-2,894
-1,878
-3,145
18,445
4,339
-3,470
-4,213
8 Remittances, pensions, and other transfers
9 U.S. Government grants (excluding military)
10 Balance on current account3
12 Change in U.S. Government assets, other than official
reserve assets, net (increase, —)
14
15
16
Gold
Special Drawing Rights (SDR's)
Reserve position in International Monetary Fund (IMF)..
1978
1977
-607
-2,530
-66
-466
-75
-78
-2,212
-240
r
'30,630
r
37,258
—6,628
1,334
17,507
1,705
r
r
—10,558
r
31,012
r
r
38,265
—7,253
295
4,487
412
r
—1,434
r
r
Ql r
Q4
Q3
r
29,434
r
r
30,664
39,639
41,865
—10,205 - 1 1 , 2 0 1
35,067
42,869
-7,802
5
3,813
482
210
4,877
538
575
4,620
699
467
4,609
583
—1,594
Q2
r
r
—5,905
-5,576
-1,908
-490
-787
-473
-591
-504
-778
-549
-804
—2,871
-5,182
r
—6,969
r
-6,858
-6,382
-3,261
-2,811
-795
-1,098
-838
-896
-1,151
6
151
-1,932
-2,776
-480
-763
—15,265
r
—2,677
r
-3,679
-231
-118
-121
-294
302
-83
-80
169
-2,500
r
r
-5,247
246
329
-9
133
27
-60
-29
42
47
-16
324
-62
-104
437
-4
18 Change in U.S. private assets abroad (increase, — ) 3
-35,368
-43,865
-30,740
-11,214
-5,668
-13,862
-14,386
-4,144
19
Bank-reported claims
-13,532
-21,368
-11,427
-4,582
-1,779
-8,750
-6,270
1,422
Nonbank-reported claims
Long-term
Short-term
U.S. purchase of foreign securities, 3net
U.S. direct investments abroad, net
-1,357
-366
-991
-6,235
-14,244
-2,030
-1,137
66
-1,203
-1,766
-3,729
1,389
205
1,184
-2,165
-3,113
-1,184
-279
-905
-731
-3,197
-2,222
-57
-2,165
-949
-4,945
-284
-268
-16
-1,116
-4,166
7,884
5,123
610
417
752
982
8,246
6,948
627
332
-163
502
15,543
12,900
973
390
909
371
15,760
12,965
117
804
1,456
418
-4,924
-5,095
211
-310
-367
637
20
21
22
23
24
25 Change in foreign official assets in the United States
(increase, -f)
26
U.S. Treasury securities
27
Other U.S. Government obligations
28
Other U.S. Government liabilities 5
29
Other U.S. liabilities reported
by U.S. banks
30
Other foreign official assets6
31 Change in foreign
private assets in the United States
(increase, + ) 3
32
U.S. bank-reported liabilities
33
U.S. nonbank-reported liabilities
36
Foreign private purchases of U.S. Treasury securities,
37
38
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net 3
39 Allocation of SDR's
41
42
Owing to seasonal adjustments
Statistical discrepancy in recorded data before seasonal
-1,700
5
25
-1,725
-2,035
-8,852
-5,398
-11,614 -12,215
6,907
4,408
905
1,647
-2,158
2,104
18,073
9,333
573
4,993
969
2,205
37,124
30,294
2,308
1,644
773
2,105
8,643
18,897
13,746
6,180
6,005
4,522
2,336
5,152
628
10,990
6,719
6,240
2,640
3,143
-314
1,679
319
406
-87
-507
-958
451
257
-620
877
-412
-176
-236
590
18
572
425
-242
667
495
38
457
10
-19
29
2,590
2,503
2,603
2,783
1,284
4,347
563
2,869
3,338
-1,370
725
996
1,251
513
1,012
-299
803
450
881
462
812
803
1,314
1,347
5,449
9,300
r
1,604
2,276
3,798
160
7,998
12
5,449
9,300
r
—612
3,638
7,986
-607
5,259
-2,530
13,080
-231
35,480
6
7,467
151
7,914
15,153
246
14,956
329
-4,614
7,092
9,581
6,733
1,344
1,438
1,024
1,963
-2,737
2,207
373
194
53
31
71
75
57
—954
—954
r
r
616
—178
r
794
r
-4,766
-2,230
r
—2,536
r
r
MEMO ITEMS:
Changes in official assets:
43
U S official reserve assets (increase, —)
44
Foreign official assets in the United States (increase, + ) . .
45 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part
of line 25 above)
46 Transfers under military grant programs (excluded from
lines 1, 4, and 9 above)
1 Seasonal factors are no longer calculated for lines 13 through 46.
2
Data are on an international accounts (IA) basis. Differs from the
Census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
Line 4.
3 Includes reinvested earnings of incorporated affiliates.
4
Differs from the definition of "net exports of goods and services" in
the national income and product (GNP) account. The GNP definition
excludes certain military sales to Israel from exports and excludes U.S.
Govt, interest payments from imoorts.
5 Primarily associated with military sales contracts and other transactions arranged with or through foreign official agencies.
6 Consists of investments in U.S. corporate stocks and in debt securities of private corporations and state and local governments.
NOTE.—Data are from Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce).
Trade and Reserve Assets
A55
3.11 U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1978
1975 r
Item
1976 '
1977
Mar.
Apr.
May
June
July
Aug.
Sept.
10,912
11,635
11,754
12,126
11,793
12,469
13,429
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
107,589
115,156
2 GENERAL IMPORTS including
merchandise for immediate consumption plus entries into bonded
warehouses
96,573
121,009
147,685
13,699
14,496
13,992
13,723
14,779
14,090
15,120
3 Trade balance
11,016
-5,853
-26,534
-2,787
-2,861
-2,238
-1,597
-2,987
-1,621
-1,691
121,151
NOTE.—Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Effective January 1978, major changes were made in
coverage, reporting, and compiling procedures. The internationalaccounts-basis data adjust the Census basis data for reasons of coverage
and timing. On the export side, the largest adjustments are: (a) the addition
of exports to Canada not covered in Census statistics, and (b) the exclusion
of military exports (which are combined with other military transactions
and are reported separately in the "service account"). On the import
side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not
included in Census statistics.
SOURCE.—FT 900 "Summary of U.S. Export and Import Merchandise
Trade" (U.S. Dept. of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1978
Type
1975
1 Total
2 Gold stock, including
Stabilization Fund 1
1976
1977
Apr.
May
June
July
Aug.
Sept.
Oct.
3 18,935
16,226
18,747
19,312
18,842
18,966
18,864
18,832
18,783
18,850
Exchange
11,599
11,598
11,719
11,718
11,718
11,706
11,693
11,679
11,668
11,655
3 Special Drawing Rights 2
2,335
2,395
2,629
2,669
2,760
2,804
2,860
2,885
2,942
3 3,097
4 Reserve position in
Monetary Fund
2,212
4,434
4,946
4,388
4,347
4,270
4,177
4,196
4,214
34,147
80
320
18
67
141
84
102
23
26
36
International
5 Convertible foreign currencies
1 Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock of the United States; see Table
3.24.
2 Includes allocations by the International Monetary Fund (IMF) of
SDR's as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1,
1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's.
3 Beginning July 1974, the I M F adopted a technique for valuing the
S D R based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. S D R holdings and reserve position in
the I M F also are valued on this basis beginning July 1974. At valuation
used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets
at end of Oct. amounted to $18,010; S D R holdings, $2,770; and reserve
position in IMF $3,549.
A56
3.13
International Statistics • November 1978
F O R E I G N B R A N C H E S O F U.S.
Millions of dollars, end of period
Asset account
1975
BANKS
1976
Balance Sheet D a t a
1978
1977
Feb.
Apr.
May
June r
July
All foreign countries
1 Total, all currencies
2
3
4
Claims on United States
Parent bank
Other
5
6
7
8
9
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners
176,493
219,420
258,897
256,779
263,468
260,558
259,452
271,706
269,552
275,065
6,743
3,665
3,078
7,889
4,323
3,566
11,623
7,806
3,817
9,361
5,410
3,951
11,013
6,708
4,305
13,754
9,348
4,406
8,727
4.863
3.864
10,866
6,750
4,116
9,254
5,096
4,158
10,348
6,142
4,206
163,391
34,508
69,206
5,792
53,886
204,486
45,955
83,765
10,613
64,153
238,848
55,772
91,883
14,634
76,560
238,658
54,201
92,341
15,093
77,023
243,316
55,554
95,348
15,284
77,130
237,447
51,817
92,370
15,207
78,053
241,784
52,719
91,912
21,139
76,014
251,818
55,363
96,663
22,495
77,297
250,710
55,243
94,641
23,382
77,444
254,586
58,746
92,854
23,292
79,694
6,359
7,045
8,425
8,761
9,139
9,357
8,941
9,022
9,588
10,131
11 Total payable in U.S. dollars
132,901
167,695
193,764
189,372
194,855
194,168
192,466
202,792
198,205
200,982
12
13
14
Claims on United States
Parent bank
Other
6,408
3,628
2,780
7,595
4,264
3,332
11,049
7,692
3,357
8,629
5,162
3,467
10,320
6,611
3,709
12,952
9,158
3,795
8,035
4,712
3,323
10,082
6,580
3,502
8,473
4,906
3,567
9,364
5,773
3,591
15
16
17
18
19
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners
123,496
28,478
55,319
4,864
34,835
156,896
37,909
66,331
9,022
43,634
178,896
44,256
70,786
12,632
51,222
176,737
42,664
69,721
13,087
51,267
180,341
43,502
71,934
13,276
51,628
176,877
40,628
70,504
13,232
52,513
180,331
41,209
70,124
18,275
50,723
188,615
43,544
74,867
19,515
50,689
185,425
43,447
71,574
20,397
50,007
187,090
46,325
69,601
20,202
50,962
20
Other assets
2,997
3,204
3,820
4,005
4,195
4,339
4,100
4,095
4,307
4,528
10
Other assets
United Kingdom
21 Total, all currencies
22
23
24
Claims on United States
Parent bank
Other
25
26
27
28
29
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners
30
Other assets
31 Total payable in U.S. dollars
32
33
34
Claims on United States
Parent bank
Other
35
36
37
38
39
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners
40
Other assets
74,883
81,466
90,933
89,626
90,162
87,100
89,645
93,538
92,989
93,341
2,392
1,449
943
3,354
2,376
978
4,341
3,518
823
2,547
1,775
111
3,075
2,274
802
2,506
1,548
958
2,333
1,476
857
3,142
2,279
863
2,615
1,515
1,100
2,820
1,791
1,029
70,331
17,557
35,904
881
15,990
75,859
19,753
38,089
1,274
16,743
84.016
22.017
39,899
2,206
19,895
84,423
21,114
40,996
2,100
20,213
84,648
21,092
41,612
2,192
19,753
81,871
19,514
40,436
2,020
19,901
84,700
19,550
40,807
4,150
20,193
87,808
19,944
43,044
4,400
20,420
87,479
20,438
42,462
4,750
19,829
87,575
21,661
40,401
4,532
20,981
2,159
2,253
2,576
2,656
2,439
2,724
2,612
2,588
2,895
2,946
57,361
61,587
66,635
63,870
64,565
62,330
63,565
67,016
65,452
64,456
2,273
1,445
828
3,275
2,374
902
4,100
3,431
669
2,186
1,558
628
2,850
2,236
614
2,312
1,520
793
2,163
1,452
711
2,870
2,178
692
2,321
1,386
935
2,337
1,483
854
54,121
15,645
28,224
648
9,604
57,488
17,249
28,983
846
10,410
61,408
18,947
28,530
1,669
12,263
60,521
17,782
28,641
1,640
12,457
60,610
17,603
28,947
1,710
12,349
58,845
16,531
28,177
1,631
12,507
60,277
16,406
28,324
3,254
12,293
63,043
17,025
30,686
3,366
11,966
61,938
17,438
29,455
3,785
11,260
60,906
18,304
27,310
3,502
11,790
967
824
1,126
1,163
1,104
1,173
1,125
1,103
1,193
1,213
Bahamas and Caymans
41 Total, all currencies
42
43
44
Claims on United States
Parent bank
Other
45
46
47
48
49
Claims on foreigners
Other branches of parent bank,
Banks
Public borrowers1
Nonbank foreigners
50
Other assets
51 Total payable in U.S. dollars
For notes see opposite page.
45,203
66,774
79,052
79,711
82,947
84,409
82,083
84,692
82,145
85,654
3,229
1,477
1,752
3,508
1,141
2,367
5,782
3,051
2,731
5,837
2.918
2.919
6,761
3,585
3,176
9,908
6,710
3,198
5,237
2,502
2,735
6,416
3,449
2,967
5,132
2,381
2,751
5,620
2,751
2,869
41,040
5,411
16,298
3,576
15,756
62,048
8,144
25,354
7,105
21,445
71,671
11,120
27,939
9,109
23,503
72,272
11,025
28,179
9,486
23,583
74,397
11,367
29,602
9,438
23,990
72,720
9,565
28,712
9,362
25,082
74,846
10,580
29,045
11,424
23,797
76,307
10,803
30,332
12,394
22,778
74,988
10,292
29,284
12,580
22,832
77,950
12,134
29,749
12,442
23,625
933
1,217
1,599
1,602
1,789
1,781
2,000
1,969
41,887
62,705
73,987
74,283
77,521
79,324
76,660
79,277
4
2,025
2,084
76,494
79,724
Overseas Branches
3.13
A57
Continued
Liability account
1975
1976
1978
1977
Feb.
Mar.
Apr.
May 2
June'
July
Aug.P
All foreign countries
52 Total, all currencies
176,493
219,420
258,897
256,779
263,468
53
54
55
56
To United States
20,221
12,165
Parent bank
Other banks in United States... } 8,057
Nonbanks
32,719
19,773
12,946
44,154
24,542
19,613
45.810
26,999
18.811
50,860
27,650
23,209
57
58
59
60
61
To foreigners
149,815
Other branches of parent bank.. 34,111
Banks
72,259
Official institutions
22,773
Nonbank foreigners
20,672
179,954
44,370
83,880
25,829
25,877
206,579
53,244
94,140
28,110
31,085
203,041
50,896
90,904
28,850
32,390
204,629
52,090
90,557
28,018
33,963
62
Other liabilities
260,558
259,452
271,706
269,552
275,065
49,088
49,907
26,643
'28,422
(
'9,003
22,445 X '12,482
50,441
25,199
10,381
14,861
51,442
27,714
8,608
15,120
52,258
29,050
7,648
15,560
202,946
48,850
91,699
28,568
33,830
202,241
50,368
87,567
29,776
34,530
213,772
53,547
93,497
31,320
35,408
209,960
53,796
88,481
31,714
35,969
214,284
56,955
89,241
31,452
36,636
6,456
6,747
8,163
7,929
7,980
8,524
7,304
7,493
8,150
8,523
135,907
173,071
198,572
194,537
199,879
197,575
196,746
207,117
202,407
205,074
64
65
66
67
To United States
19,503
11,939
Parent bank
Other banks in United States... } 7,564
Nonbanks
31,932
19,559
12,373
42,881
24,213
18,669
44,472
26,688
17,784
49,248
27,321
21,927
48,278
47,811
'27,787
26,348
/
'8,704
21,463 1'11,787
48,727
24,477
10,088
14,162
49,527
26,943
8,286
14,298
50,150
28,158
7,275
14,717
68
69
70
71
72
To foreigners
112,879
Other branches of parent bank.. 28,217
Banks
51,583
Official institutions
19,982
Nonbank foreigners
13,097
137,612
37,098
60,619
22,878
17,017
151,363
43,268
64,872
23,972
19,251
145,958
40,720
60,815
24,453
19,970
146,406
41,636
60,353
23,593
20,824
145,350
39,214
61,665
23,865
20,606
144,758
40,099
57,871
25,124
21,664
154,606
42,682
62,518
26,493
22,913
148,771
42,860
56,390
26,726
22,795
150,780
45,620
55,292
26,175
23,693
73
Other liabilities
3,527
4,328
4,107
4,224
4,414
3,710
3,784
4,109
4,144
63 Total payable in U.S. dollars
3,526
United Kingdom
74 Total, all currencies
74,883
81,466
90,933
89,626
90,162
87,100
89,645
93,538
92,989
93,341
75
76
77
78
To United States
5,646
Parent bank
2,122
Other banks in United States..
} 3,523
Nonbanks
5,997
1,198
4,798
7,753
1,451
6,302
6,785
1,550
5,236
7,609
1,646
5,962
7,266
1,983
5,283
6,758
1,636
( 2,346
X 2,776
8,174
1,822
3,273
3,079
8,003
1,951
2,987
3,065
6,978
1,905
2,290
2,783
79
80
81
82
83
To foreigners
Other branches of parent bank.
Banks
Official institutions
Nonbank foreigners
73,228
7,092
36,259
17,273
12,605
80,736
9,376
37,893
18,318
15,149
80,331
9,037
36,764
19,580
14,950
80,036
8,674
36,250
19,262
15,850
77,169
8,014
34,940
18,817
15,399
80,108
9,009
35,980
19,087
16,032
82,703
9,700
36,950
19,980
16,073
81,855
10,106
34,779
20,746
16,224
82,991
11,708
35,293
19,863
16,127
84
Other liabilities
67,240
6,494
32,964
16,553
11,229
85 Total payable in U.S. dollars
86
87
88
89
To United States
Parent bank
Other banks in United States.. |
Nonbanks..
90
91
92
93
94
To foreigners
Other branches of parent bank.
Banks
Official institutions
Nonbank foreigners
95
Other liabilities
1,997
2,241
2,445
2,509
2,518
2,665
2,779
2,661
3,131
3,372
57,820
63,174
67,573
65,021
65,477
62,662
64,025
67,936
65,671
64,926
5,415
2,083
3,332
5,849
1,182
4,667
7,480
1,416
6,064
6,479
1,524
4,955
7,250
1,598
5,652
6,938
1,953
4,985
6,446
1,609
f 2,281
X 2,556
7,852
1,794
3,176
2,882
7,644
1,918
2,904
2,822
6,606
1,852
2,209
2,545
51,447
5,442
23,330
14,498
8,176
56,372
5,874
25,527
15,423
9,547
58,977
7,505
25,608
15,482
10,382
57,386
7,211
23,352
16,541
10,282
57,045
6,747
23,075
16,213
11,009
54,498
6,202
22,115
15,672
10,509
56,274
6,696
22,554
15,908
11,116
58,856
7,259
23,566
16,772
11,259
56,644
7,704
20,644
17,280
11,016
57,015
9,163
20,601
16,113
11,138
959
953
1,116
1,156
1,182
1,227
1,305
1,228
1,383
1,305
Bahamas and Caymans
45,203
66,11A
79,052
79,711
82,947
84,409
82,083
84,692
82,145
85,654
97
98
99
100
To United States
Parent bank
Other banks in United States
Nonbanks
11,147
7,628
} 3,520
22,721
16,161
6,560
32,176
20,956
11,220
35,082
23,374
11,708
38,380
23,854
14,526
37,256
22,289
14,967
37,350
'23,255
( '5,625
X '8,470
35,092
19,078
5,524
10,490
36,908
21,755
4,587
10,566
39,225
23,186
4,498
11,541
101
102
103
104
105
To foreigners
Other branches of parent bank.
Banks
Official institutions
Nonbank foreigners
32,949
10,569
16,825
3,308
2,248
42,899
13,801
21,760
3,573
3,765
45,292
12,816
24,717
3,000
4,759
43,272
11,598
22,840
3,207
5,628
43,153
10,839
23,374
3,060
5,880
45,610
10,288
25,847
3,489
5,986
43,394
11,250
21,452
4,419
6,273
48,181
11,657
25,742
4,583
6,199
43,782
11,165
21,951
4,221
6,445
44,903
11,436
21,888
4,598
6,981
106
Other liabilities
96 Total, all currencies
107 Total payable in U.S. dollars
1,106
1,154
1,584
1,358
1,414
1,543
1,339
1,419
1,455
1,526
42,197
63,417
74,463
75,253
78,467
80,243
78,254
80,650
78,131
81,314
i In May 1978 a broader category of claims on foreign public borrowers,
including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official
institutions.
2 j n May 1978 the exemption level for branches required to report
was increased, which reduced the number of reporting branches,
A58
International Statistics • November 1978
3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1978
Item
1975
1976
1977
Mar.
Apr.
A
A.
1 Total i
2 Liabilities reported by banks in the United
States 2
3 U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes:
4
Marketable
5
Nonmarketable 4
6 U.S. securities other than U.S. Treasury
securities 5
8
9
10
11
12
13
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1
2
July
Aug.f
Sept.f
By type
140,625 144,167 146,103 145,175
95,634 131,049
145,998
142,625
140,918
16,262
34,199
17,231
37,725
18,003
47,820
19,459
59,302
19,450
57,613
19,057
56,449
18,821
55,606
19,445
56,842
20,040
56,299
16,689
55,014
6,671
19,976
11,788
20,648
32,116
20,443
34,528
19,513
32,838
19,444
32,272
19,355
32,865
19,284
34,178
19,214
34,888
20,375
35,592
20,304
5,464
8,242
12,667
13,196
13,280
13,785
14,049
14,488
14,501
14,576
82,572
95,634 131,049
45,701
3,132
4,461
24,411
2,983
1,884
45,882
3,406
4,926
37,767
1,893
1,760
Includes the Bank for International Settlements.
Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under repurchase agreements.
3 Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
4
Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
June
82,572
B.
7 Total
May
70,707
2,334
4,649
50,693
1,742
924
By area
145,998
142,625
76,238
1,633
5,773
59,587
1,756
1,011
73,666
2,493
5,554
57,945
1,872
1,095
140,918 140,625 144,167 146,103 145,175
72,735
2,702
5,426
57,203
1,945
907
74,493
2,609
4,665
56,199
1,689
970
75,768
2,490
4,629
58,081
2,220
979
79,751
2,071
4,611
56,847
2,037
786
80,075
1,497
3,895
56,807
2,006
895
5 Debt securities of U.S. Govt, corporations and Federally sponsored
agencies, and U.S. corporate stocks and bonds.
6
Includes countries in Oceania and Eastern Europe.
NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks (including Federal Reserve Banks) and securities
dealers in the United States.
A For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.
Nonbank-reported
Data
A59
3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions of dollars, end of period
1978
1975
Item
1976
1977
Mar.
A.
95,590
All foreigners.
2 Banks' own liabilities..
3
Demand deposits....
4
Time deposits 1
5
Other 2
6
Own foreign offices 3 .
7 Banks' custody liabilities 4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10
Other
11 Nonmonetary
international
organizations 7
and
16 Banks' custody liabilities 4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
20 Official institutions 8
21
22
23
24
Banks' own liabilities.
Demand deposits...
Time deposits 1
Other 2
25
26
27
Banks' custody liabilities 4
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
Other
29 Banks 9
30
31
32
33
34
137,307
140,532
143,849
61,604
17,828
11,810
7,239
24,727
60,547
17,189
11,638
6,495
25,225
61,429
17,953
11,921
6,876
24,679
63,928
16,101
12,627
7,246
27,955
68,403
17,208
12,525
6,904
31,766
76,288
59,104
75,704
58,262
75,196
57,138
75,865
57,629
76,604
57,264
75,446
56,665
14,176
3,008
14,796
2,646
15,358
2,700
15,513
2,722
16,693
2,647
15,627
3,155
3,618
2,998
3,120
2,942
2,678
2,823
3,386
831
272
143
416
499
286
59
154
480
265
119
97
1,017
257
116
644
808
142
97
569
767
144
99
523
2,166
892
2,621
1,153
2,462
922
1,662
228
2,014
368
2,619
1,036
1,274
1,467
1
1,537
3
1,432
1,645
1
1,582
78,761
77,063
75,506
74,427
76,286
76,338
74,702
9,017
3,092
1,982
3,943
8,453
2,611
1,981
3,862
9,422
3,473
2,277
3,673
9,075
2,639
2,588
3,848
9,462
3,312
2,593
3,557
17,163
11,274
37,414
40,744
48,906
61,071
Banks' own liabilities
Unaffiliated foreign banks.
Demand deposits
Time deposits 1
Other 2
3,274
139
148
290
205
231
139
245
109
2,554
2,701
706
1,317
54,956
39
Banks' custody liabilities 4
U.S. Treasury bills and certificates
Other negotiable6 and readily transferable
instruments
Other
40 Other foreigners.
41
42
43
44
Banks' own liabilities.
Demand deposits...
Time deposits 1
Other 2
45
46
47
Banks' custody liabilities 4
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 6
Other
48
65,822
135,743 137,294
2,644
3,423
3,394
2,321
3,528
1,797
2,804
1,777
9,586
3,703
1,884
3,999
34,199
37,725
47,820
59,302
67,477
57,613
66,489
56,449
65,974
55,606
66,864
56,842
67,263
56,299
65,240
55,014
9,375
489
9,457
583
9,870
498
9,498
524
10,326
638
9,281
946
42,115
47,283
43,531
43,132
42,922
45,552
50,327
10,113
1,734
42,841
14,348
10,195
1,643
2,511
39,251
14,524
10,343
1,595
2,585
38,697
13,472
10,164
1,255
2,053
38,358
13,680
10,240
1,321
2,119
41,034
13,079
9,229
1,390
2,461
45,540
13,773
9,711
1,606
2,456
28,493
24,727
25,225
24,679
27,955
31,766
4,442
314
4,280
363
4,435
300
4,564
269
4,518
296
4,787
307
1,991
2,137
2,174
1,744
2,260
1,875
2,417
1,877
2,393
1,829
2,546
1,934
14,919
14,309
15,150
15,242
15,407
15,819
15,434
12,836
4,106
8,173
557
12,917
4,149
8,284
484
12,631
3,983
8,208
441
13,010
4,091
8,552
368
12,634
4,041
8,226
367
29,330
7,534
1,873
37,174
9,104
2,297
335
10,100
119
12,814
42,335
10,933
2,040
141
14,736
161
3,248
4,823
4,015
6,524
4,304
7,546
4,000
7,654
12,106
3,693
7,995
418
325
198
240
291
2,203
286
2,314
297
2,325
310
2,776
290
2,809
301
2,800
308
1,536
381
1,699
319
1,691
323
2,165
320
2,329
179
2,218
274
8,666
9,135
9,260
9,385
10,001
9,844
49 MEMO: Negotiable time certificates of deposit
held in custody for foreigners
1
Excludes negotiable time certificates of deposit, which are included
in "Other negotiable and readily transferable instruments."
2
Includes borrowings under repurchase agreements.
3
U.S. banks: includes amounts due to own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due to head
office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank.
4
Financial claims on residents of the United States, other than longterm securities, held by or through reporting banks.
5
Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
Sept.**
65,364
17,863
11,665
7,343
28,493
18,996
11,521
50,461
Aug.^
141,652
16,803
11,347
5,714
July
126,168 139,414
13,564
10,267
5,699
June
By holder and type of liability
Own foreign offices 3 .
36
37
38
May
regional
12 Banks' own liabilities.
13
Demand deposits...
14
Time deposits 1
15
Other 2
28
110,657
Apr. A
6
Principally bankers acceptances, commercial paper, and negotiable
time certificates of deposit.
7
Principally the International Bank for Reconstruction and Development, and the Inter-American and Asian Development Banks.
8
Foreign central banks and foreign central governments and the
Bank for International Settlements.
9
Excludes central banks, which are included in "Official institutions."
NOTE.—Data for time deposits prior to April 1978 represent shortterm only.
• For a description of the changes in the International Statistics
Tables, see July 1978 BULLETIN, p. 612.
A60
3.15
International Statistics • November 1978
Continued
Item
1975
1976
1978
1977
Mar.
B.
Apr. A
May
June
July
Aug.*>
Sept.**
By area and country
1 Total
95,590 110,657 126,168 139,414 141,652 137,307 135,743 137,294 140,532 142,128
2 Foreign countries.
89,891 104,943 122,893 135,795 138,654 134,187 132,801 134,616 137,710
3 Europe
4
Austria
Belgium-Luxembourg...
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe 1 .
U.S.S.R
Other Eastern Europe2.
44,072
759
2,893
329
391
7,726
4,543
284
1,059
3,407
994
193
423
2,277
8,476
118
6,867
126
2,970
40
197
24 Canada.
47,076
346
2,187
356
416
4.876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236
60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236
63,994
419
2,992
1,044
357
5,033
11,530
571
5,626
3,132
1,211
174
111
2,816
13,549
115
12,274
138
2,030
72
193
63,067
322
3,109
1,063
430
5,499
11,013
588
5,987
3,011
1,465
164
659
3,177
13,090
249
11,021
192
1,757
62
206
62,972
350
2,893
1,110
393
6,278
9,537
563
6,365
2,993
1.643
288
717
3,302
12,534
200
11,609
168
1,721
96
211
64,302
349
2,756
1.335
352
6,562
10,029
597
6,870
3,118
1,869
191
688
3,385
12,415
110
11,471
229
1,655
66
255
64,663
372
2,277
1,542
407
7,353
9,727
646
7,037
3,078
1,737
227
709
3,340
147
11,770
192
1,935
55
222
67,338
424
2,174
1,593
417
7,987
10,766
826
8,055
3,240
1,516
324
752
3,355
12,102
137
10,955
149
2,311
46
210
2,919
4,659
4,607
4,564
5,923
6,600
5,816
5,623
5,890
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34 Ecuador 3
35
Guatemala
36 Jamaica3
37
Mexico
38 Netherlands Antilles4
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean.,
15,028
1,146
1,874
184
1,219
1,311
319
417
6
120
19,132
1,534
2,770
218
1,438
1.877
337
1,021
6
320
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
25,338
1,801
4,199
322
1,327
4,097
415
1,290
8
438
2,870
158
1,167
257
245
3,118
1,797
2,876
196
2,331
287
243
2,929
2,167
2,793
212
2,132
262
226
3,438
2,380
24,995
2,260
3,327
340
1,298
3,949
361
1,300
7
318
552
46
2,965
289
2,559
274
208
3,298
1.644
25,367
1,692
3,981
399
1,220
4,742
376
1,424
7
325
448
66
2,774
320
2.336
282
220
3,147
1,608
24,831
1,550
3,629
383
1,295
4,009
380
1,429
9
378
415
75
2,921
435
2,639
309
218
3,229
1,530
27,259
1,454
4,625
348
1,382
5,474
346
1,486
2,070
129
1,115
243
172
3,309
1,393
28,764
1,861
7,259
364
1,414
4,814
394
1,350
6
360
447
41
2,677
212
2,176
309
221
3,225
1,636
44 Asia
45
China, People's Republic of (Mainland).,
46
China, Republic of (Taiwan).
47
Hong Kong
48
India
49
Indonesia
50 Israel
Japan
51
52
Korea
53
Philippines
54 Thailand
55
Middle East oil-exporting countries5.
56
Other Asia
22,384
123
1,025
605
115
369
387
10,207
390
700
252
7,355
856
29,766
48
990
894
638
340
392
14,363
438
628
277
9,360
1,398
30,488
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250
37,995
56
1,014
1,174
947
492
485
21,725
682
647
317
9,165
1,291
36,625
50
1,208
937
649
486
20,392
753
601
258
8,866
1,307
35,712
47
1,043
1,489
962
451
568
19,998
817
688
304
8,058
1,289
33,665
53
1,053
1,085
899
330
476
19,020
748
595
297
7,894
1,215
35,171
Al
,195
1,,191
798
597
519
20,374
714
640
320
7,267
1,510
33,464
44
1,262
1,211
762
309
440
19,756
736
566
296
6,719
1,364
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries6.
63
Other Africa
3,369
342
68
166
62
2,250
481
2,298
333
87
141
36
1,133
568
2,535
404
66
174
39
1,155
698
2,469
341
51
183
45
623
2,699
455
31
167
46
1,393
607
2,641
461
29
185
49
1,244
673
2,360
402
28
226
44
981
679
3,013
594
28
175
73
1,365
778
2,578
463
67
161
52
1,198
638
64 Other countries.
65
Australia
66
All other
2,119
2,006
113
2,012
1,297
1,140
158
1,434
1,229
205
1,575
1,275
300
1,267
1,129
138
1,288
1,085
203
1,315
1,158
157
1,180
1,051
130
67 Nonmonetary international and regional
organizations
5,699
5,714
3,274
3,618
2,998
3,120
2,942
2,678
2,823
5,415
188
96
5,157
267
290
2,752
278
245
3,094
261
262
2,591
117
290
2,430
430
260
2,311
395
236
2,027
411
241
2,157
437
228
68
69
70
International
Latin American regional.
Other regional?
1,905
107
1
Includes the Bank for International Settlements. Beginning April
1978,
also includes Eastern European countries not listed in line 23.
2
Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic
Republic, Hungary, Poland, and Romania.
3
Included in "Other Latin America and Caribbean" through March
1978.
4
Includes Surinam through December 1975.
5
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
1,226
1,118
10
347
419
59
3,169
288
2,628
311
185
3,208
1,519
6
7
Comprises Algeria, Gabon, Libya, and Nigeria.
Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in
"Other Western Europe."
A For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.
Nonbank-reported
3.16
Data
A61
B A N K S ' O W N C L A I M S O N F O R E I G N E R S R e p o r t e d b y B a n k s in the U n i t e d S t a t e s
P a y a b l e in U . S . D o l l a r s
Millions of dollars, end of period
1978
Area and country
1976
1975
1977
May
June
July
96,449 88,387
87,876
87,349
87,347
91,799
94,237
87,317
87,311
91,761
94,198
16,366
105
731
145
182
1,891
787
204
965
383
217
126
706
219
685
309
7,387
320
153
319
534
15,762
116
634
129
190
1,813
689
190
1,078
436
210
140
669
244
631
313
6,961
300
165
305
548
16,823
107
823
145
216
2,524
625
125
1,027
405
163
105
714
283
1,013
311
6,937
280
125
343
553
18,523
95
947
147
221
2,793
752
127
1,007
381
264
100
757
328
840
313
8,074
306
129
370
572
Apr. A
Mar.
58,308
1
2 Foreign countries
4
5
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
?0
?1
??,
23
Austria
Belgium-Luxembourg
France
Italy
United Kingdom
Yugoslavia
Other Western Europe1
U.S.S.R
Other Eastern Europe2
24
25 Latin America and Caribbean
Argentina
26
27
28
Brazil
29
British West Indies
30
Chile
31
Colombia
32
Cuba
33
34
Guatemala3
35
Jamaica3
36
37
Netherlands Antilles4
38
39
40
Uruguay
41
42
Other Latin America and Caribbean
43
45
46
47
48
49
50
51
52
53
54
55
56
58
59
60
61
62
63
64
65
66
China, People's Republic of (Mainland)
China, Republic of (Taiwan)
Hong Kong
India
Korea
Middle East oil-exporting countries5
Other Asia
South Africa
Oil-exporting countries6
Other
All other
67 Nonmonetary International
and Regional
Organizations7
79,301
58,275
79,261
90,163
96,406 88,339
87,842
11,109
35
286
104
180
1,565
380
290
443
305
131
30
424
198
199
164
5,170
210
76
406
513
14,776
63
482
133
199
1,549
509
279
993
315
136
88
745
206
379
249
7,033
234
85
485
613
18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566
18,690 15,318
76
83
586
596
146
166
180
189
2,265 1,646
698
783
200
211
907
1,155
419
470
192
184
131
155
597
741
206
171
699
696
308
315
9,204 6,823
280
307
268
49
337
370
621
580
15,825
94
793
186
184
1,679
752
279
1,194
468
209
132
700
185
391
306
6,951
285
137
362
536
Sept.f
2,434
2,516
3,116
3,346
3,445
4,909
224
1,410
962
80
2,318
1,394
49,866 48,991
1,642 1,533
22,801 22,015
176
195
4,832 4,412
6,851 7,823
722
710
592
551
1
3
525
544
55
19
4,836 4,379
202
215
1,699 2,196
920
885
51
65
2,367 2,146
1,593 1,302
46,947
1,595
21,043
345
4,443
6,271
717
578
1
530
79
42
4,506
206
2,147
920
58
2,233
r
l,233
45,991
1,554
18,725
145
4,661
7,412
745
615
1
562
90
53
4,864
212
1,902
930
53
2,242
1,225
46,974
1,572
19,643
145
4,599
6,872
745
648
1
546
83
49
5,068
206
2,278
918
52
2,337
1,212
49,461
1,566
22,166
194
4,860
6,885
809
690
1
560
115
44
5,001
198
1,625
929
56
2,515
1,250
49,965
1,695
19,929
140
5,276
8,037
742
727
1
646
78
46
4,982
230
2,280
967
52
2,764
1,375
19,204
3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
862
19,236
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947
20,039 18,064
11
15
1,656 1,422
609
826
97
53
202
165
491
434
10,266 9,532
2,090 1,850
660
615
656
686
2,219 1,488
1,082
978
19,453
22
1,456
755
70
137
494
9,745
1,800
751
730
2,522
r
971
19,313
13
1,343
769
80
146
468
10,023
2,327
679
711
1,572
1,182
18,324
5
1,193
698
46
139
445
9,779
1,936
640
725
1,551
1,167
18,884
31
1,176
664
73
125
504
9,842
1,925
743
693
1,951
1,157
19,041
8
1,242
692
76
151
545
10,251
1,923
733
634
1,674
1,113
1,933
123
8
657
181
382
581
2,311
126
27
957
112
524
565
2,518
119
43
1,066
98
510
682
2,632
107
39
1,169
101
493
723
2,235
79
35
1,052
77
416
575
2,219
72
37
1,055
80
441
r
534
2,137
70
38
1,054
79
383
513
2,133
79
36
1,036
79
340
563
2,267
62
42
1,058
79
459
566
2,164
67
38
1,025
83
408
543
830
700
130
772
597
175
1,090
905
186
1,095
879
216
953
785
168
964
798
166
995
828
167
1,002
836
167
980
835
145
1,060
892
168
33
40
43
43
48
34
31
36
38
39
2,834
3,319
3,355
23,863
1,377
7,583
104
3,385
1,464
494
751
14
252
38,879
1,192
15,464
150
4,901
5,082
597
675
13
375
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
3,745
72
1,138
805
57
1,319
1,302
4,822
140
1,372
933
42
1,828
1,293
17,706
22
1,053
289
57
246
721
10,944
1,791
534
520
744
785
1 Includes the Bank for International Settlements. Beginning April
1978,
also includes Eastern European countries not listed in line 23.
2
Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3 Included in "Other Latin America and Caribbean" through March
1978.
4
Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
90,206
Aug.p
4,084
2,779
6
7
Comprises Algeria, Gabon, Libya, and Nigeria.
Excludes the Bank for International Settlements, which is included
in "Other Western Europe."
A Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners. For a description of the changes in the International Statistics tables, see July 1978 BULLETIN, p. 612.
A62
3.17
International Statistics • November 1978
B A N K S ' O W N A N D DOMESTIC CUSTOMERS' CLAIMS O N FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1978
1975
Type of claim
1976
1977
Apr. A
May
June
2 Banks' own claims on foreigners
88,387
87,876
87,349
3
4
5
6
7
8
4,584
35,513
28,660
4,869
23,791
19,629
5,283
35,714
27,805
4,658
23,147
19,074
5,851
31,707
30,154
5,116
25,039
19,637
Mar.
1 Total
58,308
79,301
90,206
96,449
Foreign public borrowers
Own foreign offices *
Unaffiliated foreign banks
Deposits
Other
All other foreigners
July
Aug.f
Sept.*
87,276
91,820
103,332
87,276
91,820
94,237
6,856
33,810
27,466
4,623
22,843
19,144
7,282
37,341
27,383
4,352
23,032
19,814
7,633
34,547
31,417
4,430
26,986
20,640
9 Claims of banks' domestic customers 2
10
11
Deposits
Negotiable and readily transferable instruments 3
Outstanding collections and other c l a i m s 4 . . . .
12
13 MEMO: Customer liability on
5,467 .
5,756
6,176
6,765
acceptances
1
1
U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or whollyowned subsidiaries of head office or parent foreign bank.
2
Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.
3
Principally negotiable time certificates of deposit and bankers acceptances.
4
Data for March 1978 and for period prior to that are outstanding
collections only.
NOTE.—Beginning April 1978, data for banks' own claims are given
on a monthly basis, but the data for claims of banks' domestic customers
are available on a quarterly basis only.
• For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.
Nonbank-reported
3.18
Data
A63
B A N K S ' O W N CLAIMS O N U N A F F I L I A T E D FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
Maturity; by borrower and area
1978
Junef
1 Total
1979
1978 A
1979
Dec.
Sept.p
55,128
57,668
43,682
2,919
40,763
44,715
3,589
41,126
Mar.
June
Sept.
By borrower:
Foreign public borrowers
All other f o r e i g n e r s . . . .
3
4
5
6
7
Maturity of over 1 year 1
Foreign public borrowers. . .
All other foreigners... .
11,445
3,162
8,283
12,953
3,950
9,003
8
9
10
11
12
13
By area:
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
9,532
1,615
17,036
13,515
1,461
523
9,831
1,920
18,428
12,519
1,492
525
14
15
16
17
18
19
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa 2
All other
2,979
330
5,979
1,282
629
247
3,124
787
6,931
1,312
578
220
1
2
Remaining time to maturity.
Includes nonmonetary international and regional organizations.
3.19
A The first available data are for June 1978. For a description of the
changes in the International Statistics tables, see July 1978 BULLETIN,
p. 612.
LIABILITIES TO A N D CLAIMS O N FOREIGNERS Reported by Banks in the United States
Payable in Foreign CurrenciesA
Millions of dollars, end of period
1978
1977
Item
1974
1975
1976
Nov.
1 Banks' own liabilities
2 Banks' own claims 1
3
Deposits
4
Other claims
5 Claims r»f hanks' dnmestir rn«tnm<>rs2
1
766
1,276
669
607
560
1,459
656
802
Includes claims of banks' domestic customers through March 1978.
Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the accounts of their domestic customers.
2
781
1,834
1,103
731
944
2,086
841
1,245
Dec.
925
2,356
941
1,415
Jan.
831
2,371
940
1,432
Feb.
885
2,317
895
1,422
Mar.
986
2,383
948
1,435
NOTE.—Data on claims exclude foreign currencies held by U.S. monetary authorities.
A For a description of the changes in the International Statistics
Tables, see July 1978 BULLETIN, p. 612.
A64
3.20
International Statistics • November 1978
MARKETABLE U.S. T R E A S U R Y B O N D S A N D NOTES
Foreign Holdings and Transactions
Millions of dollars
Country or area
1976
1978
1977
Jan.Sept.f
1978
Mar.
Apr.
May
June
July
Aug.P
Sept.f
Holdings (end of period) •
1 Estimated total...
15,799
38,620
41,230
39,662
39,367
40,707
41,198
41,623
42,262
2 Foreign countries.
12,765
33,874
36,475
34,813
34,345
35,014
36,356
37,169
37,875
2,330
14
764
288
191
261
485
323
4
13,916
19
3,168
911
100
All
8,888
349
4
15,206
13,607
12,946
19
19
19
3,816
3,820
4,031
1,029
1,079
1,070
155
175
175
400
443
447
9,418
7,737
6,856
r
r
363
333
348
r
4 r
13,156
19
4,361
1,113
185
509
6,597
>-371
14,276
19
5,531
1,113
200
569
6,473
370
14,204
19
5,761
1,278
210
615
5,932
387
14,739
19
6,157
1,306
211
674
5,979
393
9
10
11
Europe
Belgium-Luxembourg..
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Western Europe.
Eastern Europe
12
Canada.
256
288
251
253
261
264
275
276
276
13
14
15
16
Latin America and Caribbean
Venezuela
Other Latin American and Caribbean.
Netherlands Antilles
313
149
47
118
551
199
183
170
551
200
189
162
535
189
184
162
503
174
167
162
494
174
158
162
485
174
149
162
545
244
139
162
445
144
139
162
17
18
Asia
Japan
9,323
2,687
18,745
6,860
20,120
8,313
20,070
8,332
20,137
8,964
20,605
9,616
20,831
9,927
21,647
10,791
21,919
11,096
543
362
341
341
491
491
491
491
491
11
6
6
8
4
-3
7
5
19
Africa
20
*
r
All other.
21 Nonmonetary international and regional
organizations
3,034
4,746
4,755
4,849
5,022
5,694
4,842
4,453
4,387
22
23
2,906
128
4,646
100
4,640
115
4,740
110
4,931
90
5,633
61
4,809
33
4,421
33
4,387
0
International
Latin American regional.
Transactions (net purchases, or sales (—), during period)
24 Total
8,096
22,823
3,641
851 - 1 , 5 6 9
-295
1,341
490
425
639
25 Foreign countries
5,393
21,110
4,000
996
-467
669
1,342
813
706
5,119
r
274
20,328
782
3,476
525
975 - 1 , 6 9 0
22
26
—566
'98
592
77
1,313
29
710
103
704
3
28 Nonmonetary international and regional
organizations
2,704
1,713
-359
-145
95
171
671
-852
-387
-67
MEMO: Oil-exporting countries
29
Middle East *
30 Africa 2
3,887
221
4,451
-181
-1,020
130
72
-20
-72
-563
150
-185
-85
-31
-31
26
27
Official institutions
Other foreign
r
1
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and
United Arab Emirates (Trucial States).
2
Comprises Algeria, Gabon, Libya, and Nigeria.
3.21
-1,664
r
3 Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
F O R E I G N OFFICIAL ASSETS H E L D A T F E D E R A L RESERVE B A N K S
Millions of dollars, end of period
Assets
1975
1976
1978
1977
Apr.
1 Deposits
Assets held in custody: 1
2
U.S. Treasury securities
3 Earmarked gold 2
353
352
60,019
16,745
66,532
16,414
1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and2 in foreign currencies.
The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.
424
481
May
453
91,962 102,044 100,146
15,988 15,686 15,667
June
288
July
347
Aug.
309
Sept.
Oct.P
325
305
99,465 101,696 102,902 102,699
15,620 15,594 15,572 15,553
107,934
15,548
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.
Investment transactions
3.22
A65
F O R E I G N T R A N S A C T I O N S I N SECURITIES
Millions of dollars
1978
Transactions, and area or country
1976
1978
1977
Jan.Sept.p
Mar.
Apr.
May
June
July
Aug.p
Sept.2'
2,444
2,678
2,257
2,115
U.S. corporate securities
Stocks
18,227
15,475
14,155
11,479
15,558
13,721
1,413
921
1,864
1,151
2,391
1,963
2,035
1,925
1,305
1,296
Net purchases, or sales (—)
2,753
2,676
1,836
492
713
427
110
9
-235
141
Foreign countries
2,740
2,661
1,884
510
720
427
131
9
-235
144
336
256
68
-199
-100
340
1,006
40
291
22
152
613
1,063
89
375
-26
-358
1,018
319
68
52
-9
7
187
508
79
125
16
103
173
323
-2
52
9
31
229
31
-39
80
-18
-78
98
-6
-15
17
9
-52
50
-152
9
-54
-22
-184
110
-33
2
25
7
-115
54
324
155
1,803
119
7
-4
65
127
1,390
59
5
8
-91
123
626
175
-11
*
*
-3
17
170
5
1
44
37
97
35
-1
-58
36
90
39
-4
-12
33
59
23
-3
-16
-35
69
-5
1
-18
48
-134
35
-12
17
1
120
35
5
-1
13
15
-48
-19
-7
1
-21
*
5,529
4,322
7,739
3,404
5,916
3,949
600
621
312
343
780
333
678
301
1,207
4,335
1,967
-21
-31
447
1,248
4,239
1,820
*
-29
1
2
Foreign sales
3
4
5
6
7
8
9
10
Europe
11
12
13
14
15
16
Canada
Latin America
and Caribbean
Middle East 1
Other Asia
Africa
17
Germany
Netherlands
Switzerland
United Kingdom
Nonmonetary international and regional
organizations
*
*
*
*
*
-3
1,029
595
872
490
611
542
377
434
383
69
449
306
412
330
72
41
8
21
-3
-36
75
159
-3
14
-7
5
154
388
13
18
11
-74
416
137
6
38
18
-20
89
89
-2
3
19
43
1
9
12
370
15
6
2
91
48
14
-8
135
-116
24
17
99
52
16
11
-73
29
2
18
19
20
21
Bonds
Foreign purchases
Foreign sales
Net purchases, or sales (—)
Foreign countries
22
23
24
25
26
27
Europe
28
29
30
31
32
33
Canada
Latin America
and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34
Switzerland
United Kingdom
Nonmonetary international and regional
organizations
91
39
-49
-29
158
23
2,006
-34
59
72
157
1,705
723
20
131
29
-157
705
-163
5
19
-20
-37
-122
-93
-4
10
3
-33
-54
96
94
1,179
-165
-25
-21
141
64
1,695
338
-6
101
62
859
74
-1
3
5
137
9
13
1
33
16
-41
96
*
147
n
*
*
*
1
*
1
-2
-20
*
*
72
-1
*
*
1
*
22
53
*
*
-3
Foreign securities
-323
1,937
2,259
-410
2,255
2,665
389
2,762
2,373
114
337
223
143
404
261
-13
271
284
-59
244
303
10
333
323
50
381
331
-73
257
330
38 Bonds, net purchases, or sales (—)
39
Foreign purchases
40
Foreign sales
-8,774
4,932
13,706
-5,115
8,052
13,167
-2,921
7,869
10,790
-526
797
1,322
-501
1,169
1,670
-39
1,017
1,056
-648
1,012
1,659
-291
921
1,212
-196
982
1,178
33
759
726
41 Net purchases, or sales (—) of stocks and bonds..
-9,097
-5,524
-2,532
-412
-358
-51
-707
-281
-146
-40
42 Foreign countries
43
Europe
44
Canada
45
Latin America and Caribbean
46
Asia
47
Africa
48
Other countries
-7,199
-850
-5,245
-3
-733
48
-416
-3,967
-1,145
-2,404
-80
-73
2
-267
-2,483
-179
-2,282
198
107
-165
-161
-263
116
-177
69
-277
-67
-194
-80
72
131
6
-428
106
-807
120
143
7
2
4
-752
-236
-420
-70
178
-22
-182
-283
-171
-146
8
44
-25
7
-150
94
-161
-17
54
-123
3
-74
-86
-41
-15
69
-1
1
49 Nonmonetary international and regional
organizations
-1,898
-1,557
-49
-148
70
16
45
2
5
34
35 Stocks, net purchases, or sales (—)
37
Foreign sales
1
Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
*
*
2
Includes State and local government 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.
A66
3.23
International Statistics • November 1978
S H O R T - T E R M LIABILITIES TO A N D CLAIMS O N F O R E I G N E R S
in t h e U n i t e d S t a t e s
Millions of dollars, end of period
1977
1978
Type, and area or country
June
Sept.
Reported by N o n b a n k i n g Concerns
Dec.
Mar.
1977
June*?
June
'6,624
By type:
Payable in dollars
2
'5,909
3
4
5
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
r
6,459
r
Payable in foreign currencies
Deposits with banks abroad in reporter's
8,448
8,817
'16,352
'15,249
'16,293
18,481
18,293
'7,/77
7,564
7,992
'15,192
'14,132
'14,863
16,762
16,711
884
825
'1,160
1,718
1,582
r
801
857
Africa
Egypt
Morocco
South Africa
Zaire
Other Africa
62
63
64
Other countries
Australia
All other
65 Nonmonetary international and regional
organizations
8,301
2,854
26
171
23
12
273
335
108
104
253
9
7
94
37
229
93
954
82
8
15
23
414
'703
8,685 '16,351
'15,248 '16,291
r
3,028
5,799
'5,077
'5,797
26
26
24
24
'212
167
226
211
22
40
44
56
90
9
59
13
413
323
430
513
377
355
393
453
82
86
52
41
156
440
352
387
221
182
161
166
13
42
38
42
30
25
34
69
322
105
307
387
92
38
91
117
282
179
146
220
92
37
32
39
'3,012
976
'2,495
'2,825
84
28
20
20
18
15
15
25
19
76
62
55
18
102
96
135
18,479
5,626
21
187
47
13
545
411
42
382
184
42
27
408
117
238
35
2,706
24
33
44
121
18,291
5,326
28
155
40
53
543
419
40
459
187
47
54
376
78
296
29
2,374
27
29
37
56
451
504
530
524
' 1,186
40
'308
49
17
42
1,352
53
310
62
14
26
1,419
74
307
78
23
27
120
11
21
3
208
141
17
151
103
12
13
4
225
122
9
154
114
22
15
3
222
118
25
209
169
12
22
5
280
107
41
250
185
71
17
9
197
101
30
299
2,017
2
138
27
41
80
45
183
'88
73
11
'1,329
'2,640
1
152
25
44
60
58
604
'75
78
17
'1,526
2,871
8
156
40
37
56
63
695
'103
74
17
'1,623
2,850
1
167
32
26
57
68
761
99
95
11
1,535
3,000
1
170
29
11
59
59
799
107
107
27
1,631
588
45
105
29
48
'361
'597
13
112
20
46
'400
612
19
130
30
55
378
98
78
20
111
93
18
93
75
18
170
154
215
*
'509
33
72
27
39
'438
*
r
NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
'7,756
'2,512
21
'116
14
9
'238
284
85
128
'232
7
11
77
28
263
108
'756
90
10
24
12
*
r
*
1,430
676
907
'1,035
50
'229
76
13
24
r
56
57
58
59
60
61
'7,161
r
2,335
'19
'126
16
11
'170
226
78
107
'180
'12
12
74
41
257
97
'784
92
9
11
14
r
724
995
448
Other Latin America
China, People's Republic of (Mainland)....
China, Republic of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other Asia
l ,117
620
'809
' 1,028
50
'223
37
24
22
Canada
Latin America
Argentina
Bahamas
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
r
448
'713
'6,454
'2,253
'23
'151
14
10
'156
163
73
138
'212
'12
20
68
36
236
21
'780
110
6
16
10
June^
'7,971
r
715
Mar.
Claims on foreigners
Other
By area or country:
6 Foreign countries
Europe
7
Austria
8
Belgium-Luxembourg
9
10
11
Finland
12
France
13
Germany
14
Greece
Italy
15
16
Netherlands
Norway
17
Portugal
18
19
Spain
Sweden
20
21
Switzerland
22
Turkey
23
United Kingdom
24
Yugoslavia
25
Other Western Europe
26
U.S.S.R
27
Other Eastern Europe
28
'7,315
Dec.
Sept.
Liabilities to foreigners
1
1978
*
'2,709
r
5,000
51
'2,309
457
28
72
*
r
'2,682
3,429
3,486
r
r
4,491
53
'2,028
517
45
84
5,895
53
3,108
499
40
80
6,067
61
3,108
494
37
79
2,649
4,619
53
'1,963
414
40
85
*
*
*
*
301
121
28
5
>"237
237
8
1,146
302
222
30
5
'251
257
8
989
314
91
32
5
'269
281
12
'759
312
175
30
6
306
268
24
994
331
97
30
4
311
235
19
1,261
2,323
7
131
93
51
184
70
927
158
90
22
'591
2,403
12
139
73
42
185
46
1,026
153
111
24
590
'2,782
9
157
98
38
375
38
1,068
171
99
23
'708
2,976
22
144
85
85
185
47
1,379
133
94
32
770
2,836
21
173
93
93
153
43
1,157
170
94
30
808
603
25
148
39
57
335
370
24
11
69
17
248
346
22
10
75
19
221
393
38
21
75
15
245
408
33
22
71
11
271
433
38
16
85
16
279
104
89
14
777
97
14
149
no
40
153
113
41
146
111
35
145
111
34
144
109
34
147
132
1
1
1
1
2
r
Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.
Nonbank-reported Data
3.24
SHORT-TERM CLAIMS O N FOREIGNERS
Millions of dollars, end of period
A67
R e p o r t e d b y Large N o n b a n k i n g C o n c e r n s in the U n i t e d States
1978
1974
Type and country
1
By type:
Payable in dollars
2
Deposits
3
Short-term investments
4
Mar.'
Apr.'
May '
June
July
Aug.f
3,799
5,720
7,179
9,234
9,306
9,679
8,912
8,924
10,092
2,660
2,591
69
3,042
2,710
332
4,984
4,505
479
6,158
5,740
418
8,002
7,367
635
8,090
7,367
723
8,534
7,897
637
7,771
7,218
553
7,639
7,156
483
8,804
8,243
561
697
429
268
757
511
246
735
404
331
1,021
553
468
1,233
663
570
1,216
645
571
1,145
544
601
1,142
599
543
1,285
669
616
1,289
669
620
1,350
967
391
398
252
1,306
1,156
546
343
446
1,838
1,698
1,355
133
716
2,144
1,777
1,904
153
1,201
1,978
2,536
2,990
416
1,314
1,817
2,810
3,025
318
1,336
1,660
2,866
3,612
266
1,275
1,683
2,547
2,975
273
1,435
1,861
2,513
3,222
286
1,042
1,839
3,008
3,541
292
8,680
By country:
United Kingdom
Japan
All other
i Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.
3.25
1977 r
3,357
Payable in foreign currencies
Deposits
Short-term investments 1
5
6
7
8
9
10
11
12
1
1976r
1975
NOTE.—Data represent the assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on
foreigners reported by nonbanking concerns in the United States and
are included in the figures shown in Table 3.26.
L O N G - T E R M LIABILITIES T O A N D CLAIMS O N F O R E I G N E R S
in the U n i t e d States
Millions of dollars, end of period
1977
Reported by Nonbanking Concerns
1977
1978
1978
Area and country
June
Dec.
Sept.
Mar.
June?
June
Liabilities to foreigners
Sept.
Dec.
Mar.
June?
Claims on foreigners
1 Total
r
3,358
'3,388
'3,259
'3,234
3,158
'4,914
'4,715
'5,073
'5,140
5,060
2 Europe
3 Germany
4
Netherlands
5
Switzerland
6
United Kingdom
'2,504
370
262
177
1,277
'2,602
407
272
224
'1,295
'2,499
255
'287
241
'1,276
'2,571
295
'292
241
'1,284
2,494
282
266
236
1,270
'901
76
147
43
283
'829
76
81
42
282
'860
70
82
49
310
'935
73
81
48
332
936
65
76
55
363
7 Canada
8 Latin America
9
Bahamas
10 Brazil
11
Chile
12
Mexico
13 Asia
14 Japan
16 All other1
1
79
76
71
67
66
1,486
1,462
1,776
1,792
1,811
r
297
r
160
7
1
26
'289
'151
7
1
30
'284
'148
7
1
30
'250
'142
6
1
30
250
141
7
1
28
'1,452
34
125
208
178
'1,367
36
134
201
187
'1,402
40
144
203
177
1,387
42
154
194
183
1,298
2
143
190
188
408
386
358
319
342
305
284
250
286
251
'851
111
'829
94
'817
66
'810
83
803
78
3
3
2
2
2
158
165
161
156
154
67
59
60
60
60
67
63
59
60
59
Includes nonmonetary international and regional organizations.
A68
3.26
International Statistics • November 1978
D I S C O U N T RATES OF F O R E I G N C E N T R A L B A N K S
Per cent per annum
Country
Country
Per
cent
Month
effective
Per
cent
18.0
Feb. 1972
4.5
June 1978
6.0 July 1978
33.6
July 1978
10.25 Oct. 1978
8.0
July 1977
Argentina
Austria...
Belgium. .
Brazil
Canada..
Denmark.
France
Germany, Fed. Rep. of.
Italy
Japan
Mexico
Netherlands
9.5
3.0
10.5
3.5
4.5
6.5
Per
cent
Month
effective
Aug.
Dec.
Sept.
Mar.
June
Oct.
1977
1977
1978
1978
1942
1978
Month
effective
7.0
6.5
1.0
10.0
5.0
United Kingdom
Feb.
July
Feb.
June
Oct.
1978
1978
1978
1978
1970
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.
NOTE.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with
3.27
Rate on Oct. 31, 1978
Rate on Oct. 31, 1978
Rate on Oct. 31, 1978
Country
F O R E I G N SHORT-TERM INTEREST RATES
Per cent per annum, averages of daily figures
1978
1977
1976
1975
Country, or type
May
1 Euro-dollars
2 United Kingdom
3 Canada
4
5
6
7
8 Italy
Aug.
Sept.
Oct.
5.58
11.35
9.39
6.03
8.07
7.47
7.82
9.17
8.01
8.33
10.02
8.12
8.52
10.13
8.23
8.48
9.42
8.77
9.12
9.29
9.08
10.12
10.44
9.68
4.87
3.01
5.17
7.91
4.19
1.45
7.02
8.65
4.30
2.56
4.73
9.20
3.60
1.18
4.48
8.21
3.61
1.38
4.60
7.94
3.71
1.74
5.61
7.61
3.64
0.67
6.27
7.39
3.67
0.58
6.91
7.40
3.90
0.24
11.23
7.37
10.37
6.63
11.64
16.32
10.25
7.70
14.26
6.95
6.22
11.80
5.71
4.50
11.75
5.61
4.75
11.75
5.84
4.75
11.75
7.09
4.64
10.94
7.24
4.51
10.99
8.55
4.44
over; and Japan, loans and discounts that can be called after being held
over a minimum of two month-ends.
NOTE.—Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits of 20 million francs and
3.28
July
7.02
10.63
8.00
Germany
Switzerland
Netherlands
France
10 Japan
June
F O R E I G N E X C H A N G E RATES
Cents per unit of foreign currency
1978
Country/currency
1
2
3
4
5
Australia/dollar
Austria/shilling
Belgium/franc
Canada/dollar
Denmark/krone
1975
130.77
5.7467
2.7253
98.30
17.437
1976
1977
May
June
July
Aug.
Sept.
Oct.
122.15
5.5744
2.5921
101.41
16.546
110.82
6.0494
2.7911
94.112
16.658
112.76
6.6031
3.0463
89.397
17.535
113.83
6.6718
3.0590
89.143
17.723
114.94
6.7547
3.0864
88.921
17.846
115.41
6.9490
3.1834
87.690
18.171
115.29
7.0102
3.2207
85.739
18.411
116.87
7.4526
3.4503
84.546
19.584
25.938
20.942
39.737
11.148
180.48
24.913
20.344
43.079
11.406
174.49
23.430
21.513
47.497
11.653
181.81
23.390
21.841
47.984
11.900
183.72
23.809
22.531
48.647
12.245
189.49
24.381
22.998
50.084
12.483
194.06
24.586
22.909
50.778
12.445
195.95
25.454
23.767
54.430
12.643
200.75
6
7
8
9
10
27.285
Finland/markka
23.354
France/franc
40.729
Germany/deutsche m a r k . . .
11.926
India/rupee
222.16
Ireland/pound
11
12
13
14
15
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
16
17
18
19
20
New Zealand/dollar
Norway/krone
Portugal/escudo
South Africa/rand
Spain/peseta
121.16
19.180
3.9286
136.47
1.7424
99.115
18.327
3.3159
114.85
1.4958
96.893
18.789
2.6234
114.99
1.3287
100.69
18.360
2.2208
115.01
1.2317
101.90
18.450
2.1857
114.93
1.2587
103.85
18.524
2.1939
115.00
1.2885
105.42
19.018
2.2042
115.00
1.3344
105.58
19.189
2.1948
115.00
1.3605
107.37
20.325
2.2342
115.00
1.4317
21
22
23
24
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United Kingdom/pound...
14.385
24.141
38.743
222.16
11.908
22.957
40.013
180.48
11.964
22.383
41.714
174.49
6.2945
21.491
50.892
181.81
6.2859
21.690
53.046
183.72
6.3245
22.012
55.443
189.49
6.3926
22.523
60.013
194.06
6.3855
22.592
63.765
195.95
6.3757
23.349
65.117
200.75
'96.31
'94.74
92.44
89.99
89.51
.15328
.33705
41.753
8.0000
39.632
.12044
.33741
39.340
6.9161
37.846
.11488
.44215
41.462
4.3973
44.407
.11328
.37342
40.620
4.4239
40.752
.11634
.46744
41.964
4.3840
44.716
.11804
.50101
42.447
4.3756
45.076
.11952
.53002
43.433
4.3758
46.203
.12050
.52656
43.603
4.3907
46.733
.12317
.54478
45.627
4.3904
50.017
MEMO:
25 United States/dollar*
'98.34
'105.57
'103.31
1
Index of weighted average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see "Index of
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on
page 700 of the August 1978 BULLETIN.
86.04
NOTE.—Averages of certified noon buying rates in New York for cable
transfers.
69
Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR
PRESENTATION
SYMBOLS AND ABBREVIATIONS
c
n.e.c.
Rp's
IPC's
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that
column are changed.)
Estimated
Corrected
Not elsewhere classified
Repurchase agreements
Individuals, partnerships, and corporations
SMSA's
REIT's
Standard metropolitan statistical areas
Real estate investment trusts
Amounts insignificant in terms of the particular unit ( e . g . , less than 5 0 0 , 0 0 0 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed or, (4) no change (when
figures are expressed in percentages).
GENERAL INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
" U . S . Government securities" may include guaranteed issues of U . S . Government agencies (the flow of
funds figures also include not fully guaranteed issues)
STATISTICAL
as well as direct obligations of the Treasury. "State
and local government" also includes municipalities,
special districts, and other political subdivisions.
In some of the tables details do not add to totals
because of rounding.
RELEASES
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Issue
Anticipated schedule of release dates for individual releases
June 1978
Page
A-76
70
Federal Reserve Board of Governors
G . WILLIAM MILLER,
STEPHEN S . GARDNER,
Chairman
Vice Chairman
WALLICH
PHILIP E .
COLDWELL
OFFICE OF STAFF
DIRECTOR FOR MONETARY POLICY
OFFICE OF BOARD MEMBERS
THOMAS J. O ' C O N N E L L , Counsel
to the
Chairman
JOSEPH R . C O Y N E , Assistant
to the
Board
K E N N E T H A . G U E N T H E R , Assistant
to the
Board
SIDNEY L . JONES, Assistant
to the
Board
JAY P A U L B R E N N E M A N , Special
Assistant
to the
Board
FRANK O'BRIEN, JR., Special Assistant to the Board
JOSEPH S. SIMS, Special Assistant to the Board
DONALD J. WINN, Special Assistant to the Board
STEPHEN H . AXILROD, Staff
Director
MURRAY A L T M A N N , Assistant
to the
Board
PETER M . KEIR, Assistant
to the
Board
STANLEY J. SIGEL, Assistant
to the
Board
NORM AND R . V . BERNARD, Special
Assistant
to
the
Board
DIVISION OF RESEARCH AND STATISTICS
JAMES L . KICHLINE,
Director
JOSEPH S . ZEISEL, Deputy
Director
EDWARD C . E T T I N , Associate
Director
LEGAL DIVISION
N E A L L . PETERSEN, General
Counsel
Secretary
JOHN H. KALCHBRENNER, Associate
Director
JOHN J. MINGO, Senior Research Division
Officer
ELEANOR J. STOCKWELL, Senior Research
Division
Officer
JAMES R. WETZEL, Senior Research Division
Officer
JAMES M. BRUNDY, Associate Research
Division
Officer
ROBERT A. EISENBEIS, Associate Research
Division
Officer
JARED J. ENZLER, Associate Research
Division
Officer
Secretary
J. CORTLAND G . PERET, Associate
ROBERT E. MANNION, Associate
General
Counsel
ALLEN L. RAIKEN, Associate
General
Counsel
CHARLES R . M C N E I L L , Assistant
to the
General
Counsel
OFFICE OF THE SECRETARY
THEODORE E . ALLISON,
HENRY C .
Secretary
GRIFFITH L. GARWOOD, Deputy
*JOHN M . W A L L A C E , Assistant
RICHARD H. PUCKETT, Manager,
Improvement
Project
Regulatory
DIVISION OF CONSUMER AFFAIRS
JANET O . H A R T ,
Director
NATHANIEL E . B U T L E R , Associate
JERAULD C . KLUCKMAN, Associate
Director
Director
DIVISION OF BANKING
SUPERVISION AND REGULATION
Research
Division
Officer
MICHAEL J. PRELL, Associate Research
Division
Officer
HELMUT F. WENDEL, Associate Research
Division
Officer
ROBERT M. FISHER, Assistant Research
Division
Officer
FREDERICK M. STRUBLE, Assistant Research
Division
Officer
STEPHEN P. TAYLOR, Assistant Research
Division
Officer
LEVON H . GARABEDIAN, Assistant
Director
DIVISION OF INTERNATIONAL FINANCE
JOHN E . R Y A N ,
Director
-{-FREDERICK C. SCHADRACK, Deputy
Director
FREDERICK R. DAHL, Associate
Director
WILLIAM W . W I L E S , Associate
Director
JACK M. EGERTSON, Assistant
Director
DON E. KLINE, Assistant
Director
ROBERT S . PLOTKIN, Assistant
THOMAS A . SIDMAN, Assistant
SAMUEL H . TALLEY, Assistant
WILLIAM TAYLOR, Assistant
Director
Director
Director
Director
EDWIN M . TRUMAN,
Director
JOHN E . REYNOLDS,
Counselor
ROBERT F . GEMMILL, Associate
GEORGE B . H E N R Y , Associate
CHARLES J. SIEGMAN, Associate
Director
Director
Director
SAMUEL PIZER, Senior International
Division
Officer
JEFFREY R. SHAFER, Associate International
Division
Officer
DALE W. HENDERSON, Assistant International
Division
Officer
LARRY J. PROMISEL, Assistant International
Division
Officer
RALPH W . SMITH, JR., Assistant International
Division
Officer
71
and Official Staff
J. C H A R L E S
NANCY
PARTEE
H.
TEETERS
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
JOHN M . D E N K L E R , Staff
Director
ROBERT J. LAWRENCE, Deputy
Staff
Director
D O N A L D E . A N D E R S O N , Assistant
Director
for
WILLIAM H . W A L L A C E , Staff
Construction
Management
JOSEPH W . D A N I E L S , S R . , Assistant
Director
of Equal Employment
Director
and
CHARLES L . HAMPTON,
Director
BRUCE M . BEARDSLEY, Associate
Director
UYLESS D . BLACK, Assistant
Director
G L E N N L . CUMMINS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION OF PERSONNEL
DAVID L. SHANNON,
Director
JOHN R . W E I S , Assistant
Director
CHARLES W . W O O D , Assistant
Director
OFFICE OF THE CONTROLLER
Controller
DIVISION OF ADMINISTRATIVE SERVICES
WALTER W . KREIMANN,
Director
JOHN L . GRIZZARD, Assistant
Director
JOHN D . SMITH, Assistant
Director
*On loan f r o m the Federal Reserve Bank of Atlanta.
t O n loan f r o m the Federal Reserve Bank of N e w York.
DIVISION OF FEDERAL RESERVE
BANK EXAMINATIONS AND BUDGETS
Opportunity
DIVISION OF DATA PROCESSING
JOHN KAKALEC,
Controller
EDWARD T . M U L R E N I N , Assistant
Director
ALBERT R . HAMILTON,
Director
CLYDE H . FARNSWORTH, J R . , Associate
Director
CHARLES W . B E N N E T T , Assistant
Director
JOHN F . HOOVER, Assistant
Director
P. D. RING, Assistant
Director
RAYMOND L . T E E D , Assistant
Director
DIVISION OF
FEDERAL RESERVE BANK OPERATIONS
JAMES R . KUDLINSKI,
Director
WALTER A L T H A U S E N , Assistant
Director
BRIAN M . CAREY, Assistant
Director
HARRY A . G U I N T E R , Assistant
Director
LORIN S . M E E D E R , Assistant
Director
72
Federal Reserve Bulletin • November 1978
FOMC and Advisory Councils
FEDERAL OPEN MARKET
G . WILLIAM MILLER,
ERNEST T . BAUGHMAN
PHILIP E . COLDWELL
DAVID P . EASTBURN
COMMITTEE
Chairman
PAUL A .
STEPHEN S . GARDNER
J. CHARLES PARTEE
N A N C Y H . TEETERS
MURRAY A L T M A N N , Secretary
NORMAND R . V . BERNARD, Assistant Secretary
THOMAS J. O ' C O N N E L L , General Counsel
EDWARD G . G U Y , Deputy General Counsel
ROBERT E . M A N N I O N , Assistant General Counsel
STEPHEN H . AXILROD, Economist
JOSEPH B U R N S , Associate Economist
JOHN M . DAVIS, Associate Economist
VOLCKER,
Vice Chairman
HENRY C . WALLICH
MARK H . WILLES
WILLIS J. W I N N
RICHARD G . DAVIS, Associate Economist
EDWARD C . ETTIN, Associate Economist
IRA KAMINOW, Associate Economist
PETER M . KEIR, Associate Economist
JAMES L . KICHLINE, Associate Economist
JOHN E . REYNOLDS, Associate Economist
EDWIN M . T R U M A N , Associate Economist
JOSEPH S . ZEISEL, Associate Economist
A L A N R . HOLMES, Manager, System Open Market Account
PETER D . STERN LIGHT, Deputy Manager for Domestic Operations
SCOTT E . PARDEE, Deputy Manager for Foreign Operations
FEDERAL ADVISORY
COUNCIL
GILBERT F . BRADLEY, TWELFTH FEDERAL RESERVE DISTRICT, President
J. W . M C L E A N , TENTH FEDERAL RESERVE DISTRICT, Vice President
HENRY S . WOODBRIDGE, FIRST DISTRICT
FRANK A . PLUMMER, SIXTH DISTRICT
WALTER B . WRISTON, SECOND DISTRICT
WILLIAM B . EAGLESON, JR., THIRD DISTRICT
M . BROCK W E I R , FOURTH DISTRICT
JOHN H . LUMPKIN, FIFTH DISTRICT
EDWARD BYRON SMITH, SEVENTH DISTRICT
CLARENCE C . BARKSDALE, EIGHTH DISTRICT
RICHARD H . V A U G H A N , NINTH DISTRICT
JAMES D . BERRY, ELEVENTH DISTRICT
HERBERT V . PROCHNOW, Secretary
WILLIAM J. KORSVIK, Associate
Secretary
CONSUMER
ADVISORY
COUNCIL
St. Louis, Missouri, Chairman
Angeles, California, Vice Chairman
RICHARD F. KERR, Cincinnati, Ohio
ROLAND E. BRANDEL, San Francisco, California
ROBERT J. K L E I N , New York, New York
AGNES H . B R Y A N T , Detroit, Michigan
PERCY W . LOY, Portland, Oregon
JOHN G . B U L L , Fort Lauderdale, Florida
R. C. MORGAN, El Paso, Texas
ROBERT V. BULLOCK, Frankfort, Kentucky
REECE A. OVERCASH, JR., Dallas, Texas
LINDA M. C O H E N , Washington, D.C.
ROBERT R . DOCKSON, Los Angeles, California
RAYMOND J. SAULNIER, New York, New York
A N N E G . DRAPER, Washington, D.C.
E. G. SCHUHART, Dalhart, Texas
CARL FELSENFELD, New York, New York
BLAIR C. SHICK, Cambridge, Massachusetts
JEAN A. Fox, Pittsburgh, Pennsylvania
JAMES E. S U T T O N , Dallas, Texas
MARCIA A. HAKALA, Omaha, Nebraska
THOMAS R . S W A N , Portland, Maine
JOSEPH F. HOLT III, Oxnard, California
A N N E GARY TAYLOR, Alexandria, Virginia
RICHARD H . HOLTON, Berkeley, California
RICHARD D. W A G N E R , Simsbury, Connecticut
E D N A DECOURSEY JOHNSON, Baltimore, Maryland
RICHARD L. WHEATLEY, JR., Stillwater, Oklahoma
LEONOR K. SULLIVAN,
WILLIAM D . W A R R E N , Los
A 73
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Louis W. Cabot
Robert M. Solow
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Robert H. Knight
Boris Yavitz
Donald R. Nesbitt
Paul A. Volcker
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
John W. Eckman
Werner C. Brown
David P. Eastburn
Richard L. Smoot
CLEVELAND*
44101
Willis J. Winn
Walter H. MacDonald
Cincinnati
Pittsburgh
45201
15230
Robert E. Kirby
Otis A. Singletary
Lawrence H. Rogers, II
G. Jackson Tankersley
RICHMOND*
23261
E. Angus Powell
Maceo A. Sloan
I. E. Killian
Robert C. Edwards
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
Clifford M. Kirtland, Jr.
William A. Fickling, Jr.
Harold B. Blach, Jr.
James E. Lyons
Alvaro L. Carta
John C. Bolinger
Edwin J. Caplan
Monroe Kimbrel
Kyle K. Fossum
Robert H. Strotz
John Sagan
Jordan B. Tatter
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James H. Davis
Jeanne L. Holley
Lawrence K. Roos
Donald W. Moriarty
James P. McFarland
Stephen F. Keating
Patricia P. Douglas
Mark H. Willes
Thomas E. Gainor
Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Charles T. Beaird
Josefina Salas-Porras
Alvin I. Thomas
Pete Morales, Jr.
Ernest T. Baughman
Robert H. Boykin
Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney
John J. Balles
John B. Williams
Hiram J. Honea
Charles B. East
F. J. Craven, Jr.
Jeffrey J. Wells
George C. Guynn
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
John D. Johnson
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Fredric W. Reed
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Utica, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210;
Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A 74
Federal Reserve Board Publications
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
request and be made payable to the order of the Board
of Governors of the Federal Reserve System in a form
collectible
at par in U.S. currency.
(Stamps
and
coupons are not
accepted.)
THE
B A N K CREDIT-CARD AND CHECK-CREDIT P L A N S .
FEDERAL
RESERVE
SYSTEM—PURPOSES
AND
FUNCTIONS. 1 9 7 4 . 1 2 5 p p .
A N N U A L REPORT
FEDERAL RESERVE B U L L E T I N . M o n t h l y . $ 2 0 . 0 0 p e r
year or $ 2 . 0 0 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $18.00 per year or $1.75
each. Elsewhere, $ 2 4 . 0 0 per year or $ 2 . 5 0 each.
BANKING
AND
MONETARY
STATISTICS,
1914-1941.
(Reprint of Part 1 only) 1976. 682 pp. $5.00.
1968.
102 pp. $ 1 . 0 0 each; 10 or more to one address,
$.85 each.
SURVEY OF CHANGES IN FAMILY FINANCES.
1968.
321
pp. $ 1 . 0 0 each; 10 or more to one address, $.85
each.
REPORT OF THE JOINT TREASURY-FEDERAL RESERVE
S T U D Y OF THE U . S . GOVERNMENT SECURITIES
MARKET. 1969. 48 pp. $.25 each; 10 or more to
one address, $ . 2 0 each.
1941-1970.
JOINT TREASURY-FEDERAL RESERVE S T U D Y OF THE
GOVERNMENT SECURITIES MARKET: STAFF S T U D -
A N N U A L STATISTICAL DIGEST, 1 9 7 1 - 7 5 . 1 9 7 6 . 3 3 9 p p .
IES—PART 1. 1970. 86 pp. $.50 each; 10 or more
to one address, $ . 4 0 each. PART 1. 1971. 153 pp.
and PART 3. 1973. 131 pp. Each volume $1.00;
10 or more to one address, $.85 each.
BANKING
AND
MONETARY
STATISTICS,
1976. 1,168 pp. $15.00.
$4.00 per copy for each paid subscription to Federal Reserve Bulletin. All others, $5.00 each.
A N N U A L STATISTICAL DIGEST, 1 9 7 2 - 7 6 . 1 9 7 7 . 3 8 8 p p .
$ 1 0 . 0 0 per c o p y .
FEDERAL RESERVE M O N T H L Y CHART B O O K .
Subscrip-
tion includes one issue of Historical Chart Book.
$12.00 per year or $1.25 each in the United States,
its possessions, Canada, and Mexico; 10 or more
of same issue to one address, $ 1 . 0 0 each. Elsewhere, $15.00 per year or $ 1 . 5 0 each.
HISTORICAL CHART BOOK. Issued annually in Sept.
Subscription to Monthly Chart Book includes one
issue. $1.25 each in the United States, its possessions, Canada, and Mexico; 10 or more to one
address, $ 1 . 0 0 each. Elsewhere, $1.50 each.
CAPITAL MARKET DEVELOPMENTS. W e e k l y . $ 1 5 . 0 0 p e r
year or $ . 4 0 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 3 . 5 0 per year or $.35 each.
Elsewhere, $ 2 0 . 0 0 per year or $ . 5 0 each.
O P E N MARKET POLICIES AND OPERATING PROCED U R E S — S T A F F STUDIES.
1971. 2 1 8 pp.
$2.00
each; 10 or more to one address, $1.75 each.
REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT
MECHANISM. Vol. 1. 1 9 7 1 . 2 7 6 p p . Vol. 2 . 1 9 7 1 .
173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00;
10 or more to one address, $ 2 . 5 0 each.
T H E ECONOMETRICS OF PRICE DETERMINATION
CON-
FERENCE, October 30-31, 1970, Washington, D . C .
1972. 397 pp. Cloth ed. $5.00 each; 10 or more
to one address, $ 4 . 5 0 each. Paper ed. $ 4 . 0 0 each;
10 or more to one address, $ 3 . 6 0 each.
FEDERAL RESERVE STAFF S T U D Y : W A Y S TO MODERATE
FLUCTUATIONS
IN
HOUSING
CONSTRUCTION .
1972. 487 pp. $ 4 . 0 0 each; 10 or more to one
address, $ 3 . 6 0 each.
LENDING
FUNCTIONS
OF
THE
FEDERAL
RESERVE
SELECTED INTEREST AND EXCHANGE R A T E S — W E E K L Y
SERIES OF CHARTS. W e e k l y . $ 1 5 . 0 0 p e r y e a r or
BANKS. 1973. 271 pp. $3.50 each; 10 or more
to one address, $ 3 . 0 0 each.
$ . 4 0 each in the United States, its possessions,
Canada, and Mexico; 10 or more of same issue
to one address, $ 1 3 . 5 0 per year or $.35 each.
Elsewhere, $20.00 per year or $ . 5 0 each.
IMPROVING THE MONETARY AGGREGATES ( R e p o r t o f t h e
THE FEDERAL RESERVE ACT, as a m e n d e d through D e -
cember 1976, with an appendix containing provisions of certain other statutes affecting the Federal
Reserve System. 307 pp. $2.50.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
PUBLISHED INTERPRETATIONS OF THE BOARD OF G O V EDITION.
1977.
304
pp. $ 4 . 5 0 each; 10 or more to one address, $ 4 . 0 0
each.
A N N U A L PERCENTAGE R A T E TABLES ( T r u t h in
Lend-
ing—Regulation Z) Vol. I (Regular Transactions).
1969. 100 pp. Vol. II (Irregular Transactions).
1969. 116 pp. Each volume $1.00, 10 or more
of same volume to one address, $.85 each.
FEDERAL RESERVE MEASURES OF CAPACITY AND C A PACITY UTILIZATION. 4 4 p p . $ 1 . 7 5 e a c h , 1 0 o r
more to one address, $ 1 . 5 0 each.
ERNORS, as of June 30, 1977. $7.50.
INDUSTRIAL P R O D U C T I O N — 1 9 7 6
Advisory Committee on Monetary Statistics).
1976. 43 pp. $ 1 . 0 0 each; 10 or more to one
address, $.85 each.
THE B A N K HOLDING COMPANY MOVEMENT TO
1978:
A COMPENDIUM. 289 pp. $ 2 . 5 0 each, 10 or more
to one address, $2.25 each.
Federal Reserve
CONSUMER
EDUCATION
use.
Multiple
T H E E Q U A L CREDIT OPPORTUNITY A C T A N D . . . A G E
T H E E Q U A L CREDIT OPPORTUNITY A C T A N D . . .
CREDIT RIGHTS IN HOUSING
THE E Q U A L CREDIT OPPORTUNITY A C T A N D . . . D O C TORS, L A W Y E R S , SMALL RETAILERS, A N D OTHERS
W H O M A Y PROVIDE INCIDENTAL CREDIT
THE E Q U A L CREDIT OPPORTUNITY A C T A N D .
WOMEN
FAIR CREDIT BILLING
A G U I D E TO FEDERAL RESERVE REGULATIONS
H o w TO FILE A CONSUMER CREDIT COMPLAINT
IF Y o u BORROW T o B U Y STOCK
T R U T H IN LEASING
U . S . CURRENCY
W H A T T R U T H IN L E N D I N G M E A N S TO Y o u
STAFF E C O N O M I C STUDIES
Studies and papers on economic and financial
that are of general interest in the field of
research.
subjects
economic
of full
GREELEY IN PERSPECTIVE, by Paul Schweitzer
Joshua Greene. Sept. 1977. 17 pp.
1960, by John T. Rose. Jan. 1978. 4 4 pp.
PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS IN
CREDIT SCORING M O D E L S , b y R o b e r t A . E i s e n b e i s .
Jan. 1978. 28 pp.
REQUIREMENTS
OF
COMMERCIAL BANKS: 1977-81, by Gerald A. Hanweck and John J. Mingo. Feb. 1978. 34 pp.
MORTGAGE BORROWING A G A I N S T EQUITY IN EXISTING
HOMES: M E A S U R E M E N T , G E N E R A T I O N , A N D IMPLICATIONS FOR ECONOMIC ACTIVITY, b y D a v i d F .
Seiders. May 1978. 4 2 pp.
T H E BEHAVIOR OF MEMBER B A N K REQUIRED RESERVE
RATIOS A N D THE EFFECTS OF BOARD A C T I O N ,
1 9 6 8 - 7 7 , by Thomas D. Simpson. July 1978. 39
pp.
FOOTHOLD ACQUISITIONS A N D B A N K MARKET STRUC-
TURE, by Stephen A. Rhoades and Paul Schweitzer, July 1978. 8 pp.
INTEREST R A T E CEILINGS AND DISINTERMEDIATION, b y
Edward F. McKelvey. Sept. 1978. 105 pp.
RATES ON CONSUMER INSTALMENT L O A N S .
N E W SERIES FOR LARGE M A N U F A C T U R I N G
TIONS. 1 0 / 7 3 .
U . S . ENERGY SUPPLIES A N D U S E S , Staff
9/73.
CORPORAEconomic
Study by Clayton Gehman. 12/73.
T H E STRUCTURE OF M A R G I N 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 .
ECONOMETRIC MODEL, Staff Economic Study by
Douglas Battenberg, Jared J. Enzler, and Arthur
M. Havenner. 11/75.
Rhoades. Dec. 1977. 4 5 pp.
FINANCING
MEASURES OF SECURITY CREDIT. 1 2 / 7 0 .
REVISION OF B A N K CREDIT SERIES. 1 2 / 7 1 .
ASSETS A N D LIABILITIES OF FOREIGN BRANCHES OF
U . S . BANKS. 2 / 7 2 .
B A N K DEBITS, DEPOSITS, A N D 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 .
BANKS. 1 0 / 7 2 .
REVISION OF CONSUMER CREDIT STATISTICS. 1 0 / 7 2 .
O N E - B A N K HOLDING COMPANIES BEFORE THE 1 9 7 0
AMENDMENTS. 1 2 / 7 2 .
YIELDS ON RECENTLY OFFERED CORPORATE B O N D S .
5/73.
and
A N ANALYSIS OF FEDERAL RESERVE ATTRITION SINCE
CAPITAL
Studies, and
reprinted do
text
STRUCTURE A N D PERFORMANCE STUDIES IN B A N K I N G :
A SUMMARY A N D E V A L U A T I O N , b y S t e p h e n A .
EXTERNAL
(Except for Staff Papers, Staff Economic
some leading articles, most of the articles
not exceed 12 pages.)
RECENT TRENDS IN FEDERAL B U D G E T POLICY. 7 / 7 5 .
RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL
MARKETS. 1 0 / 7 5 .
M I N N I E : A SMALL VERSION OF THE M I T - P E N N - S S R C
SUMMARIES O N L Y PRINTED IN THE B U L L E T I N
(Limited supply of mimeographed
copies
available upon request for single
copies.
A 75
REPRINTS
PAMPHLETS
(Short pamphlets suitable for classroom
copies available without
charge.)
Board Publications
A N ASSESSMENT OF B A N K HOLDING COMPANIES,
INDUSTRIAL ELECTRIC POWER U S E . 1 / 7 6 .
REVISION OF M O N E Y STOCK M E A S U R E S . 2 / 7 6 .
SURVEY OF FINANCE COMPANIES, 1 9 7 5 . 3 / 7 6 .
REVISED SERIES FOR MEMBER B A N K DEPOSITS A N D
AGGREGATE RESERVES. 4 / 7 6 .
INDUSTRIAL P R O D U C T I O N — 1 9 7 6 R e v i s i o n . 6 / 7 6 .
FEDERAL RESERVE OPERATIONS IN PAYMENT M E C H A NISMS: A S U M M A R Y . 6 / 7 6 .
RECENT GROWTH IN ACTIVITIES OF U . S . OFFICES OF
BANKS. 1 0 / 7 6 .
N E W ESTIMATES OF CAPACITY UTILIZATION: M A N U FACTURING A N D MATERIALS. 1 1 / 7 6 .
B A N K HOLDING COMPANY FINANCIAL DEVELOPMENTS
IN 1 9 7 6 . 4 / 7 7 .
SURVEY OF TERMS OF B A N K L E N D I N G — N E W SERIES.
5/77.
T H E COMMERCIAL PAPER M A R K E T . 6 / 7 7 .
CONSUMPTION A N D FIXED INVESTMENT IN THE ECONOMIC RECOVERY A B R O A D . 1 0 / 7 7 .
RECENT DEVELOPMENTS
IN U . S .
INTERNATIONAL
TRANSACTIONS. 4 / 7 8 .
T H E FEDERAL B U D G E T IN THE 1 9 7 0 ' S . 9 / 7 8 .
SUMMARY MEASURES OF THE DOLLAR'S FOREIGN
CHANGE V A L U E . 1 0 / 7 8 .
PRINTED IN F U L L IN THE B U L L E T I N
Staff Economic
Studies
shown
under
"Reprints
Staff
Economic Study by Robert J. Lawrence and Samuel H. Talley. 1/76.
EX-
SURVEY OF TIME A N D SAVINGS DEPOSITS AT A L L COMMERCIAL B A N K S , JULY 1 9 7 8 . 1 1 / 7 8 .
A 76
Index to Statistical Tables
References are to pages A-3 through A-68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 2 0 - 2 2 , 26
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 17, 18, 2 0 - 2 3 , 29
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U . S . Govt, securities):
New issues, 36
Yields, 3
Branch banks:
Assets and liabilities of foreign branches of U . S .
banks, 56
Liabilities of U . S . banks to their foreign
branches, 23
Business activity, 46
Business expenditures on new plant and
equipment, 38
Business loans (See Commercial and industrial
loans)
CAPACITY utilization, 46
Capital accounts:
Banks, by classes, 16, 17, 19, 20
Federal Reserve Banks, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans:
Commercial banks, 15, 18, 23, 26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15-19, 2 0 - 2 3
Business loans, 26
Commercial and industrial loans, 24, 26
Consumer loans held, by type, 42, 43
Loans sold outright, 23
Number, by classes, 16, 17, 19
Real estate mortgages held, by type of holder and
property, 41
Commercial paper, 3, 24, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer instalment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations:
Profits, taxes, and dividends, 37
Security issues, 36, 65
Cost of living (See Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 16, 18
Currency in circulation, 4, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or
securities)
Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 17, 19, 2 0 - 2 3
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits):
Banks, by classes, 3, 16, 17, 19, 2 0 - 2 3 , 29
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at F.R. Banks (See Interest rates)
Discounts and advances by F.R. Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Euro-dollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal and Federally sponsored credit agencies, 35
Federal finance:
Debt subject to statutory limitation and
types and ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage Assn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U.S. Govt, securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 2 0 - 2 2
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
Deposits in U . S . banks, 4, 12, 19, 20, 21, 22
Exchange rates, 68
Trade, 55
Foreigners:
Claims on, 60, 61, 66, 67
Liabilities to. 23, 5 6 - 5 9 , 6 4 - 6 7
GOLD:
Certificates, 12
Stock, 4, 55
Government National Mortgage Assn., 35, 40, 41
Gross national product, 52, 53
177 Federal Reserve Bulletin • November 1978
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital markets, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 5 6 - 6 7
International organizations, 5 6 - 6 1 , 64—67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types of investments):
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16, 17, 18
Federal Reserve Banks, 12, 13
Life insurance companies, 29
Savings and loan assns., 29
LABOR force, 47
Life insurance companies (See Insurance
companies)
Loans (See also specific types of loans):
Banks, by classes, 16, 17, 18, 2 0 - 2 3 , 29
Commercial banks, 3, 15-18, 2 0 - 2 3 , 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by U . S . , 40, 41
Savings and loan assns., 29
MANUFACTURING:
Capacity utilization, 46
Production, 46, 49
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 12
Number, by classes, 16, 17, 19
Reserve position, basic, 6
Reserve requirements, 9
Reserves and related items, 3, 4, 5, 15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 15
Money and capital market rates (See Interest
rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 10, 2 0 - 2 2 , 29, 32, 33, 41
NATIONAL banks, 17, 19
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSONAL income, 53
Prices:
Consumer and wholesale, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 37
REAL estate loans:
Banks, by classes, 18, 2 0 - 2 3 , 29, 41
Life insurance companies, 29
Mortgage terms, yields, and activity, 3, 40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves:
Commercial banks, 16, 18, 20, 21, 22
Federal Reserve Banks, 12
Member banks, 3, 4, 5, 15, 16, 18
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING:
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 10, 29, 33, 41, 44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. Govt, securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22
Holdings of U . S . Govt, securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities):
New issues, 36
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21,
22, 23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U . S . Govt, balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. Govt, securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 3, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 2 0 - 2 4
Wholesale prices, 46
YIELDS (See Interest rates)
A 78
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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Federal Reserve Bank Cities
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