Full text of Federal Reserve Bulletin : November 1979
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
NOVEMBER 1979
FEDERAL RESERVE
BULLETIN
Domestic Financial Developments in the Third Quarter of 1979
F E D E R A L R E S E R V E BULLETIN (USPS 351-150). Controlled Circulation Postage
Paid at Washington, D . C . P O S T M A S T E R : Send address changes to Publications
Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D . C . 20551.
A copy of the FEDERAL RESERVE BULLETIN is sent to each member bank without charge; member banks
desiring additional [copies may secure them at a special $10.00 annual rate. The regular subscription price
in the United Stages and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba,
Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama,
Paraguay, Peru, Hlj Salvador. Uruguay, and Venezuela is $20.00 per annum or $2 00 per copy; elsewhere,
$24.00 per annum or $ 2 . 5 0 per copy. Group subscriptions in the United States f 3f 10 or more copies to
one address, $1.75 per copy per month, or $18.(X) for 12 months
The BULLETIN maiy be obtained from the Division of Support Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board
of Governors of the Federal Reserve System in a form collectible at par in U.S currency. (Stamps and
coupons are not accepted.)
VOLUME 65 • NUMBER 11 • NOVEMBER 1979
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 statt 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.
reporting forms for foreign banking organizations to meet the requirements of the
Bank Holding Company and the International Banking Acts; proposed regulations
limiting the interstate banking activities of
foreign banks in the United States.
905
RECORD
FEDERAL
OF POLICY
OPEN
ACTIONS
MARKET
OF
THE
COMMITTEE
At its meeting on September 18, 1979, the
Committee decided to instruct the Manager for Domestic Operations to direct
open market operations initially toward a
slight increase in the weekly average federal funds rate to about IP/2 percent.
Subsequently, the objective for the funds
rate was to be raised or lowered in an
orderly fashion within a range of 11XA to
11% percent if the monetary aggregates
appeared to be growing over the September-October period at annual rates close
to or beyond the upper or lower limits of
the following ranges: M - l , 3 to 8 percent;
and M-2, 6V2 to \0Vi percent. The members also agreed that in assessing the behavior of the aggregates, the Manager
should give approximately equal weight to
M-l and M-2.
915
LAW
DEPARTMENT
Amendments to Regulations D, E, and Y;
various rules and interpretations; bank
holding company and bank merger orders;
and pending cases.
A1
FINANCIAL
A3
A46
A54
A69
Domestic Financial Statistics
Domestic Nonfinancial Statistics
International Statistics
Special Tables
A73
GUIDE
AND
TO TABULAR
BOARD
A76
FEDERAL
All
OPEN
STAFF;
STATISTICS
PRESENTATION
RELEASES
OF GOVERNORS
FEDERAL
AND
BUSINESS
STATISTICAL
A74
AND
AND
AND
MARKET
COMMITTEE
ADVISORY
RESERVE
STAFF
COUNCILS
BANKS,
BRANCHES,
BOARD
PUBLICATIONS
OFFICES
A78
FEDERAL
A80
INDEX
A82
MAP
RESERVE
TO STATISTICAL
OF FEDERAL
TABLES
RESERVE
SYSTEM
Table of Contents
879
DOMESTIC
THE
THIRD
FINANCIAL
QUARTER
DEVELOPMENTS
OF
small businesses, consumers, homebuyers, and farmers, before the Subcommittee on Access to Equity Capital and
Business Opportunities of the House
Committee on Small Business, October
30, 1979.
IN
1979
According to the quarterly report to the
Congress, growth in the major monetary
aggregates increased further during the
period.
895
887
INDUSTRIAL
PRODUCTION
Output rose about 0.1 percent during September.
888
STATEMENTS
TO
CONGRESS
Chairman Paul A. Volcker discusses the
background of the Federal Reserve's actions on October 6, 1979, to maintain
control over money and credit expansion
and says that more emphasis will be placed
on controlling the provision of reserves to
the banking system, before the Joint Economic Committee of the U.S. Congress,
October 17, 1979.
890
893
Governor J. Charles Partee comments on
certain provisions of several bills pertaining to bank holding companies; the Board
generally supports bank entry into the
fields of credit-related insurance and revenue bonds, but believes that debt issued
in connection with bank acquisitions
should be held within prudent limits, in
testimony before the House Committee on
Banking, Finance and Urban Affairs, October 17, 1979.
Vice Chairman Frederick H. Schultz discusses the general impact on small businesses of the Board's actions on October
6; he says that the Board has asked member banks to avoid lending for speculative
purposes and to channel available funds
into loans for productive purposes and
expects that banks will continue to meet
the needs of their best customers including
Governor Partee presents the views of the
Board on S. 1411, a bill to reduce paperwork and to put effective controls on the
process of imposing reporting and recordkeeping requirements on the public and
stresses the importance of preserving the
current exemption of banking reports from
any centralized clearance process, before
the Subcommittee on Federal Spending
Practices and Open Government of the
Senate Committee on Governmental Affairs, November 1, 1979.
898 Governor Henry C. Wallich discusses the
international implications of the Board's
actions on October 6 and expresses the
opinion that a greater volatility of the
federal funds rate, such as may be associated with the new procedures, should not
have major significance in the context of
the dollar's exchange value, before the
Subcommittee on International Economics
of the Joint Economic Committee of the
U.S. Congress, November 5, 1979.
903
ANNOUNCEMENTS
Revision of Regulation Y to authorize
bank holding companies or their nonbank
subsidiaries to act as agent for the sale of
general insurance in certain small communities.
Adoption of policy statement on discrimination in the operations of banks and thrift
institutions.
Proposed revision of Truth in Lending
enforcement guidelines; proposed bank
Domestic Financial Developments
in the Third Quarter of 1979
This report, which was sent to the Joint Economic Committee of the U.S. Congress on November 7, 1979, highlights the important developments in domestic financial markets during
the summer and early fall.
Growth in the major monetary aggregates increased further during the third quarter. The
narrowly defined money stock ( M - l ) expanded
at an annual rate of 9V2 percent, up from IV2
percent in the second quarter, in part reflecting
increased transaction needs associated with a
rebound in economic activity. Along with the
strength in M - l , increased inflows of interestbearing deposits at banks and thrift institutions
contributed to more rapid growth in the broader
aggregates (M-2 and M-3). As the quarter
ended, M-3 was near the low end and M-l and
M-2 at the upper end of the ranges consistent
with the growth objectives set by the Federal
Open Market Committee (FOMC) for the period
Interest rates
from the fourth quarter of 1978 to the fourth
quarter of 1979.
Seeking to moderate the rapid growth of the
monetary aggregates in an environment of intense inflationary pressures, the Federal Reserve
allowed the rate on federal funds to increase
about 114 percentage points over the quarter.
In addition, the System raised the discount rate
1/2 percentage point in each month of the quarter, to a record 11 percent by mid-September.
Most short-term rates rose over the quarter as
much as or more than the federal funds rate.
Long-term rates rose somewhat less, generally
between 1/2 and 1 percentage point. By the end
of the quarter, long-term rates were at or above
the recent cyclical highs registered in the spring
of this year.
Total credit flows to nonfinancial sectors of
the U.S. economy are estimated to have remained strong in the third quarter, at a pace
somewhat above that in the first half. Businesses
NOTES
Monthly averages except for
Federal Reserve discount rate and
conventional mortgages (based on
quotations for one day each
month). Yields: U.S. Treasury
bills, market yields on three-month
issues; prime commercial paper,
dealer offering rates; conventional
mortages, rates on first mortgages
in primary markets, unweighted
and rounded to nearest 5 basis
points, from Department 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. government bonds,
market yields adjusted to 20-year
constant maturity by U.S. Treasury; state and local government
bonds (20 issues, mixed quality),
Bond Buyer.
880
Federal Reserve Bulletin • November 1979
Changes in selected monetary aggregates 1
Seasonally adjusted annual rates of change, in percent
1979
1978
1976
Item
Member bank reserves
Total
Nonborrowed
Monetary base 3
1977
1978
Q3
Q4
Qi
Q2
Q3
2
.6
.8
6.7
5.3
3.0
8.3
6.6
6.7
9.1
8.6
6.6
9.3
2.3
4.6
8.4
-2.9
-3.3
5.7
—4.9
-8.8
4.0
6.0
7.9
9.7
Concepts of money 4
M-l
M-2
M-3
5.8
10.9
12.7
7.9
9.8
11.7
7.2
8.4
9.3
7.9
9.8
10.3
4.1
7.6
9.3
-2.1
1.8
4.7
7.6
8.6
7.9
9.6
12.0
10.5
Time and savings deposits at
commercial banks—Total
(excluding large negotiable
CDs)
Savings
Other time
Small time plus total savings 5
15.0
25.0
7.5
19.2
11.2
11.1
11.4
10.5
9.4
2.2
15.6
5.9
11.0
2.9
17.9
6.9
10.2
.2
18.2
7.0
4.5
-9.6
15.6
2.2
9.3
-3.1
18.5
15.1
13.5
5.5
19.2
15.9
Deposits at thrift institutions 6
15.6
14.5
10.6
11.1
11.6
8.8
6.8
8.6
-19.0
-.8
16.4
10.2
11.5
8.0
10.8
14.5
8.7
12.4
23.1
21.0
17.9
23.1
16.5
2.6
6.3
5.4
5.6
2.7
5.5
5.6
6.9
7.5
3.7
7.0
3.6
7.5
9.1
4.8
-10.3
-3.3
17.2
17.4
5.6
-4.0
1.2
13.8
16.8
5.9
-1.2
-3.8
6.6
2.8
3.9
4.3
11.7
11.0
Memo (change in billions of dollars*
seasonally adjusted)
Large negotiable CDs at large
banks
All other large time deposits 7
Small time deposits
Nondeposit funds
Domestic 8
Net due to foreign related
institutions
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. Includes total reserves (member bank reserve balances in the current week plus vault cash held two weeks earlier), currency
in circulation (currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of commercial banks), and vault
cash of nonmember banks.
4. M-l is currency plus private demand deposits adjusted. M-2 is M-l plus bank time and savings deposits other than large
negotiable CDs. M-3 is M-2 plus deposits at mutual savings banks and savings and loan associations and credit union shares.
5. Interest-bearing deposits subject to Regulation Q.
6. Savings and loan associations, mutual savings banks, and credit unions.
7. Total large time deposits less negotiable CDs at weekly reporting banks.
8. Domestic sources include borrowings by banks from other than commercial banks in the form of federal funds purchased
and securities sold under agreements to repurchase, plus other liabilities for borrowed money, loans sold to affiliates, loan repurchase
agreements and other minor items.
increased their borrowing in short- and intermediate-term markets, issuing a record quarterly
volume of commercial paper and borrowing
sizable amounts from commercial banks. A
slowing in the growth of consumer installment
credit reduced the net flow of loan funds to the
household sector, although home mortgage borrowing continued at a pace close to that in the
first half of the year. On a seasonally adjusted
basis, net borrowing by the federal government
picked up moderately in the third quarter from
the greatly reduced rate in the first half of 1979.
As the third quarter drew to a close, monetary
growth proceeded at a fast pace, and prospects
of continued high inflation led to increased
speculative activities in financial, foreign exchange, and commodity markets. In response
to these developments, the Federal Reserve
Board on October 6 announced additional restrictive actions. The discount rate was increased a full percentage point, and a reserve
requirement was established for larger member
banks against net increases in managed liabilities—defined as certificates of deposit (CDs)
issued in denominations of $ 1 0 0 , 0 0 0 or more
with maturities of less than one year, Eurodollar
borrowings, security repurchase agreements,
and federal funds borrowings from nonmember
institutions—above a base-period level. Similar
requirements were imposed on branches and
agencies of foreign banks. Also, the FOMC
announced its intention to alter its operating
techniques by putting greater emphasis on controlling the supply of bank reserves and less on
Domestic
targeting the federal funds rate in attempting to
achieve its stated objectives for monetary
growth.
Following the announcement, the federal
funds rate fluctuated over a wide range, and on
average remained substantially above the levels
prevailing before these actions. In late October,
short-term interest rates stood between 2 and
2*4 percentage points above their levels of October 5; long-term rates were up about 1 percentage point. This rise in rates was accompanied by increases in yield spreads between
higher- and lower-rated securities. Stock prices
moved sharply lower, and by late October most
major stock price indexes were back down to
levels near those prevailing at the end of the
second quarter, reversing gains of 7 to 12 percent between June and September.
MONETARY
AND
BANK
AGGREGATES
CREDIT
The acceleration in M - l brought its rate of
growth for the third quarter to a record 9V2
percent. The pickup in M - l growth reflected in
part a greater need for transaction balances,
associated with the stronger pace of nominal
expenditures, and occurred despite the increased
incentive to economize on such balances arising
from rapid increases in interest rates. About
one-third of the increase from the second-quarter growth rate is attributable to a diminution
in the rate at which funds were shifted out of
demand deposits and into savings accounts eligible for automatic transfer service (ATS) and
negotiable order of withdrawal (NOW) accounts
in New York State; such shifts are estimated
to have reduced M-1 growth about 1 Vi percentage points in the second quarter and 3/4 of a
percentage point in the third.
Growth in the interest-bearing component of
M-2 quickened considerably in the third quarter
from the already increased pace of the previous
three months. This expansion, along with an
acceleration in M - l , boosted growth in M-2 to
an annual rate of 12 percent in the third quarter,
the fastest pace in almost three years. Savings
deposits grew at a rate of 5!/2 percent, following
net outflows during the two previous quarters.
The growth in savings deposits occurred despite
Financial
Developments,
Q3 1979
881
a further substantial widening in the spread
between market interest rates and the ceiling rate
on savings deposits. The maximum rate payable
on these deposits was increased 1/4 percentage
point effective July 1; however, increases in
short-term interest rates were well in excess of
this adjustment. The composition of small time
deposits, on the other hand, appears to have
been very sensitive to changes in relative yields.
Small time deposits exclusive of six-month
money market certificates (MMCs) declined
$3.2 billion, as market (and MMC) rates rose
relative to fixed ceiling rates.
Net issuance of MMCs, the yield on which
is tied to the six-month Treasury bill rate, totaled $17 billion at commercial banks during
the quarter. Following the mid-March regulatory change that eliminated the ceiling rate advantage of 1/4 percentage point on MMCs issued by thrift institutions (for a six-month bill
rate above 9 percent), commercial banks received more than one-half of new flows into this
market in the second and third quarters, well
above the average one-third share of the preceding three quarters. Other short-term instru-
Treasury yield curves and deposit rate ceilings
Percent per annum
Ceiling^ at S&Ls
Ceilings at
commercial banks
lllll^^
1
2
3
4
5
6
Years to maturity
7
8
* Maximum yield on "money market" time deposits at
commercial banks and thrift institutions, September 28, 1979.
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.
882
Federal Reserve Bulletin • November 1979
ments bearing market yields also expanded rapidly in the third quarter; in particular, net
purchases of shares in money market mutual
funds were slightly in excess of the rapid second-quarter pace, while noncompetitive tenders
at auctions of three- and six-month Treasury
bills rose substantially.
Mainly due to increased issuance of MMCs
and large CDs, deposit inflows to thrift institutions picked up modestly in the third quarter,
after having slowed in the previous period. M-3
increased at a pace of IOV2 percent, substantially
faster than in the first two quarters of the year.
Owing to the success of commercial banks in
increasing their share of net MMC sales since
March, growth of M-2 was more rapid than that
of M-3 in the second and third quarters, reversing the pattern that had prevailed since 1975.
Growth in commercial bank credit in the third
quarter was well above the pace of the first half.
Loans extended to businesses grew at an unusually rapid rate, in excess of 20 percent at an
annual rate. Real estate loans showed greater
strength as well; by contrast, consumer loan
growth slowed to about two-thirds of the some-
Components of
bank credit
Major categories of
bank loans
Change, billions of dollars
TREASURY SECURITIES
U
n n.i 1 n H 0
OTHER SECURITIES
,—, ,—, I—I
a
4
REAL ESTATE
12
8
TOTAL LOANS
4
32
. 0
CONSUMER
12
24
8
a
16
4
. 0
NONBANK FINANCIAL
4
+
0
Q3 Q4
1978
Q1
L
Q2 Q3
1979
0
Q3 Q4
1978
Q1
Q2 Q3
1979
Seasonally adjusted. Total loans and business loans adjusted
for transfer between banks and their holding companies, affiliates, subsidiaries, or foreign branches.
what reduced second-quarter pace. Growth in
investments also rose in the third quarter, exceeding that of any recent quarter, as banks
continued to acquire both Treasury and other
securities.
Despite the rapid growth of total deposits,
banks' use of managed liabilities in the third
quarter increased further, mainly through enlarged net borrowings from foreign branches
and purchases of federal funds. Eurodollar deposits continued to be a less expensive source
of funds to U . S . banks than domestically issued
CDs; banks ran off large time deposits on balance in the third quarter, but less so than in
the second. The rapid growth in borrowed funds
in the third quarter brought the proportion of
total assets financed with these managed liabilities near the peak reached in 1974.
BUSINESS
FINANCE
Total funds raised by businesses in financial
markets remained substantial in the third quarter, declining only moderately from the strong
second-quarter pace. External financing needs
of nonfinancial corporations continued large,
although they decreased somewhat as capital
expenditures edged down while internal fund
flows increased. The moderate decline in capital
expenditures was attributable to a slowing of
inventory accumulation from the rapid pace
evident in the second quarter. The reduction in
credit requirements in the third quarter was
reflected in a decrease in business borrowing in
bond markets, as many nonfinancial corporations avoided issuing long-term debt at nearrecord yields. At the same time, firms continued
to borrow heavily in short- and intermediate-term markets. The increased use of shortterm financing has resulted in a marked rise
since mid-1976 in the ratio of short-term to
long-term debt outstanding for nonfinancial corporations. At the end of the third quarter, this
ratio reached a high of approximately 38 percent, well above the previous peak recorded in
1974.
The rapid growth in short-term credit in the
third quarter reflected an acceleration in the pace
of business borrowing from all major sources
of short-term funds. Commercial paper issuance
Domestic
Nonfinancial corporations
Ratio of short-term to long-term market debt
Percent
Based on seasonally adjusted flow of funds data. 1979 Q3
estimated.
by nonfinancial firms increased further from the
record annual rate of the second quarter. Growth
in finance company loans to businesses also rose
appreciably in the July-September period, and,
as noted earlier, the pace of business borrowing
from banks surged.
The increased demand for business loans at
banks occurred despite a cumulative rise of 2
percentage points in the prime rate during the
July-September period. As banks responded to
sharply increasing market yields, the prime rate
was raised in successive steps to a record \3VI
percent at the end of the quarter. (After the
Federal Reserve's policy actions in early October, the prime rate was increased further, to
15!^ percent.) In addition, data available for
large banks indicate that nonprice loan terms
and standards of creditworthiness tightened
somewhat over the third quarter. Large banks
did, however, continue to report a substantial
volume of below-prime lending in the third
period, which may reflect in part intense competition to supply the short-term financing needs
of the largest corporations. As in the second
quarter, growth of business loans at large banks
exceeded that at small banks, a reversal of the
trend that had prevailed since the beginning of
the economic recovery in 1975.
Public offerings of bonds by nonfinancial
corporations declined in the third quarter,
largely because of a relatively low level of bond
issuance by public utilities in the first two
months of the period. The volume of public
offerings by industrial companies picked up
Financial
Developments,
Q3 1979
883
moderately as the quarter progressed, probably
reflecting firmer expectations that long-term
rates were unlikely to decline substantially in
the near future. Financial concerns markedly
reduced their issuance of intermediate- and
long-term bonds during the quarter, which
helped to reduce total public offerings of corporate issues in the July-September period to
the low level of the first quarter. Bond and note
offerings by financial companies accounted for
about 4 0 percent of total public offerings in the
first half of 1979, but since midyear they have
represented less than 30 percent of the total.
Private bond placements, which typically
serve as a source of funds for smaller and
lower-rated firms, are estimated to have declined
further in the third quarter from the relatively
high levels maintained in recent years. Available data suggest also that bond commitments
outstanding at life insurance companies recently
reached their lowest level in four years. Life
insurance companies, the principal source of
Business loans and short- and
intermediate-term business credit
Seasonally adjusted annual rates of change, in percent
Business loans
at banks 1
Short- and
intermediate-term
business credit 2
1975—Q1
Q2
Q3
Q4
-4.2
-9.7
-3.3
1.9
-2.7
-8.7
-1.5
-1.0
1976—Q1
Q2
Q3
Q4
-3.6
-4.9
3.6
10.0
0.5
-0.2
5.3
10.4
1977—Q1
Q2
Q3
Q4
9.9
6.9
10.3
13.3
12.6
11.3
11.4
14.3
1978—Q1
Q2
Q3
Q4
18.0
16.7
12.7
14.2
16.6
17.2
11.8
16.3
1979—Q1
Q2 e
Q3
20.4
17.1
22.2
20.6
20.0
24.0
Period
1. Based on prorated monthly averages of Wednesday data
for domestically chartered banks and an average of current
and previous month-end data for foreign-related institutions.
Adjusted for outstanding amounts of loans sold to affiliates.
2. Short- and intermediate-term business credit is business
loans at commercial banks plus nonfinancial commercial paper
and finance company loans to businesses, measured from
end-of-quarter to end-of-quarter. Commercial paper reflects
prorated averages of Wednesday data and finance company
loans reflect averages of current and previous month-end data.
e Estimated.
884
Federal Reserve Bulletin • November 1979
private placement money, have allocated a
larger fraction of their investable funds to
higher-yielding mortgage instruments in recent
quarters.
Yields on corporate bonds increased more
than 1/2 of a percentage point over the third
quarter to their highest levels since October
1974. Following the Federal Reserve's policy
actions in early October, bond yields jumped
an additional 75 to 125 basis points by monthend. The recent upward movement in corporate
bond yields has been accompanied by a widening of rate spreads between corporate and
Treasury obligations and between lower- and
higher-rated corporate issues. A similar increase
in risk premiums occurred in the commercial
paper market. These increases likely reflect
concerns about the impact of tighter credit market conditions on borrowers, especially in light
of the deteriorated liquidity positions of many
firms.
All major indexes of stock prices rose substantially between June and September. The
American Stock Exchange composite index and
the National Association of Securities Dealers'
index of over-the-counter stock prices ended the
third quarter at record highs, while most major
price indexes of securities listed on the New
York Stock Exchange were near their highest
levels since early 1973. The American Stock
Exchange index continued to post the largest
percentage rise, again reflecting the greater relative importance of oil and natural gas industry
shares on this exchange. The third-quarter gains
were retraced in October, however, as the
tightening of financial market conditions inGross offerings of new security issues
Seasonally adjusted annual rates, in billions of dollars
1979
1978
Type of security
Corporate
Bonds
Publicly offered.
Privately placed.
Stocks
Foreign
State and local
government
r Revised,
p Preliminary.
Q3
Q4
Ql r
Q2 r
Q3 P
54
42
23
19
12
42
30
18
12
12
47
39
17
22
8
55
48
35
16
7
49
39
27
11
10
6
5
4
5
8
53
48 r
39
41
43
creased concerns about the continuing strength
of economic activity and corporate earnings. In
addition, the sharp rise in interest rates in October encouraged margin account investors to
reduce their borrowings.
Owing to the increases in the major stockprice indexes in the July-September period,
conventional measures of price-earnings ratios
edged up a bit in the third quarter, although
they continued to be historically low. The volume of stock issues remained relatively small,
primarily because of the still high cost of equity
capital. Although public utilities continued to
account for a majority of common and preferred
stock offerings, several larger industrial concerns also marketed new equity issues.
GOVERNMENT
FINANCE
Gross bond issuance by state and local governments edged up slightly in the third quarter on
a seasonally adjusted basis. Offerings continued
to be bolstered by bonds issued to finance housing, almost 80 percent of which were for
single-family mortgages. These bonds were
among those postponed earlier in the year when
federal legislation was introduced to curtail
home mortgage financing by local authorities.
Although the Congress has yet to act, issuers
responded to indications that the final legislation
will exempt from any new restrictions the issues
that had been postponed earlier.
Interest rates on state and local obligations
rose appreciably in the third quarter. The Bond
Buyer index of yields on general obligation
bonds, at 6.6 percent at the end of September,
was more than 40 basis points above its level
at midyear. By the end of October, this index
had increased further, to 7.3 percent. The ratio
of tax-exempt to corporate bond yields edged
up a bit in the third quarter from the record
low level in June and increased further in October.
Net Treasury borrowing amounted to just
under $12!/2 billion in the third quarter, not
seasonally adjusted, following a pay down of
debt in the previous period. With a combined
federal deficit—including off-budget agencies—of about $8!/2 billion, the Treasury was
able to bring its operating cash balance to an
unusually high level at the end of the third
Domestic
Financial
Developments,
Q3 1979
885
Federal government borrowing and cash balance
Not seasonally adjusted, in billions of dollars
1977
1979
1978
Item
Treasury financing
Budget surplus, or deficit ( - )
Off-budget deficit 1
New cash borrowings, or
repayments ( - )
Other means of financing 4
Change in cash balance
Federally sponsored credit agencies,
net cash borrowings 5
Qi
Q2
Q3
Q4
Ql
Q2
Q3
-28.8
-1.3
-25.8
-3.7
14.0
-2.2
-8.1
-3.1
-23.8
-.1
-20.4
-3.0
21.4
-5.2
-4.4
-4.2
19.5 2
.4
2.8
20.7
2.6
-6.8
20.8
2.8
-5.9
2.5
-3.2
11.1
15.1
1.0
4.9
15.2
2.6
-6.1
10.6 3
4.2
-8.6
-4.6
-1.8
9.8
12.4
2.9
6.7
1.8
2.0
4.5
6.5
6.1
5.2
6.3
5.5
4.7
Q3
Q4
-12.2
-4.9
1. Includes outlays of the Pension Guaranty Corporation, Postal Service Fund, Rural Electrification and Telephone Revolving
Fund, Rural Telephone Bank, Housing for the Elderly or Handicapped Fund, and Federal Financing Bank. All data have been
adjusted to reflect the return of the Export-Import Bank to the unified budget.
2. Includes $2.5 billion of borrowing from the Federal Reserve on September 30, which was repaid October 4 following
enactment of a new debt-ceiling bill.
3. Includes $2.6 billion of borrowing from the Federal Reserve on March 31, which was repaid April 4 following enactment
of a new debt-ceiling bill.
4. Checks issued less checks paid, accrued items, and other transactions.
5. Includes debt of the Federal Home Loan Mortgage Corporation, 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).
quarter in anticipation of large financing needs
in the fourth quarter.
Issuance of nonmarketable Treasury obligations in the third quarter was the largest so far
this year. The pickup was attributable largely
to a substantial volume of acquisitions by
foreign official accounts with the proceeds from
dollar-support operations in international exchange markets. In contrast, the foreign central
banks had redeemed an appreciable volume of
such securities in the first half of the year.
In the open market, the Treasury relied primarily on coupon securities to meet its financing
requirements, although the outstanding supply
of Treasury bills was increased somewhat. As
with nonmarketable issues, a substantial volume
of marketable securities were purchased for
foreign accounts in the third quarter, in contrast
to a net paydown in the preceding two periods.
Late in the third quarter, Treasury debt operations were affected by the constraint of the
national debt ceiling, which was scheduled to
fall to its permanent level of $400 billion at the
end of the quarter. The Treasury postponed a
bill auction and two note auctions scheduled for
late September before the debt ceiling was
raised to $879 billion on September 28. The
three postponed auctions were held in early
October.
Federally sponsored credit agencies raised
$4.7 billion in the third quarter, not seasonally
adjusted. While substantial, this volume was
down somewhat from the pace of the preceding
quarter and reflected a large decline in funds
raised by the Federal National Mortgage Association (FNMA). F N M A borrowed only $ 0 . 2
billion, down from $ 2 . 0 billion in the second
quarter. Mortgage purchases by F N M A slowed
significantly in the third quarter, and were financed in part by drawing down liquidity. The
Federal Home Loan Banks borrowed $2.1 billion in the July-September period, while the
Farm Credit System borrowed $ 2 . 4 billion.
Yields on Treasury securities increased over
the third quarter and in October, along with
yields on private debt securities. Interest rate
increases between July and September were less
pronounced for Treasury bills than for private
short-term instruments, however, partly reflecting heavy purchases by foreign official accounts
and the Federal Reserve System.
MORTGAGE
AND
CONSUMER
CREDIT
The growth in mortgage debt moderated only
a little in the third quarter, following the strong
second-quarter rebound. Mortgage credit flows
have been relatively well maintained in recent
months, owing primarily to increased lending
by commercial banks and life insurance companies. Moreover, mortgage revenue bond programs of state and local governments, which
offer below-market interest rates to qualified
886
Federal Reserve Bulletin • November 1979
Net change in mortgage debt outstanding
Seasonally adjusted annual rates, in billions of dollars
1978
1979
Mortgage debt
Q3
Type of debt
Total
Residential
Other1
Type of holder
Commercial banks
Savings and loans
Mutual savings banks
Life insurance
companies
FNMA and GNMA ..
Other 2
r
Q4
r
Ql
r
Q2 r
Q3 e
154
116
38
161
125
36
153
115
38
157
118
39
154
113
41
39
48
7
36
52
6
33
43
6
32
51
5
34
43
3
10
9
41
12
9
46
10
11
50
11
8
50
13
4
57
1. Includes commercial and other nonresidential as well as
farm properties.
2. Includes mortgage pools backing securities guaranteed
by the Government National Mortgage Association, Federal
Home Loan Mortgage Corporation, or Farmers Home Administration, some of which may have been purchased by the
institutions shown separately.
r Revised.
e Partially estimated.
borrowers, have continued to account for considerable origination activity in some localities,
and issuance of mortgage passthrough securities
guaranteed by the Government National Mortgage Association ( G N M A ) increased to record
levels in the third quarter. The decline in mortgage lending was concentrated in the residential
sector and reflected primarily reduced lending
by savings and loan associations and to a lesser
extent mutual savings banks, as well as decreased purchases of government-underwritten
loans by FNMA. Outstanding commitments to
acquire new mortgages by savings and loan
associations edged up a bit over the third quarter, due to a slower rate of mortgage takedowns
at these institutions.
The decline in net mortgage lending at savings and loan associations in the third quarter
may have been in lagged response to the reduced
pace of deposit growth in the preceding quarter.
Moreover, field reports suggest that there was
some slackening in residential loan demand,
owing to the rise in mortgage interest rates this
year and general economic uncertainty. Savings
and loan associations decreased their borrowing
(seasonally adjusted) from Federal Home Loan
Banks and instead relied more heavily on such
alternative sources of funds as security repur-
chase agreements, mortgage-backed bonds, and
commercial paper issuance. Associations increased their holdings of liquid assets, thereby
raising their average liquidity—measured as the
ratio of cash and liquid assets to the sum of
short-term borrowings and deposits—from 8.8
percent, seasonally adjusted, at the end of the
second quarter to just over 9 percent at the end
of the third.
The cost of mortgage financing continued to
increase over the third quarter. The average of
interest rates on new commitments for 80 percent, 30-year conventional home mortgages at
sampled savings and loan associations rose 25.
basis points in the July-September period to a
new high of 11.35 percent at the end of the
quarter. In October, further substantial increases
in mortgage yields as well as continued tightening of nonprice lending terms accompanied the
rise in other interest rates. As market rates
moved to higher levels, several states either
raised or removed usury ceilings on conventional home loans. Even so, usury ceilings in
a number of states appeared to be restricting
the supply of mortgage credit. Moreover, originations of home mortgages insured by the Federal Housing Administration or guaranteed by
the Veterans Administration reportedly were
hindered by the below-market ceiling rate of 10
percent on such government-underwritten loans.
The Department of Housing and Urban Development and the Veterans Administration raised
the maximum rate to 1 0 p e r c e n t in late September, and to 11 Vi percent in late October.
Consumer installment credit outstanding is
estimated to have expanded at a 10 percent
annual rate in the third quarter. This expansion
represents a substantial moderation from the 15
percent rate of advance in the first half of 1979
and the 19 percent rate in 1978. A further
decline in the growth of automobile installment
credit—a major component of the total—and a
marked deceleration in expansion of bank revolving credit contributed to the slowing in the
third quarter. Credit extensions have weakened
relative to household expenditures in recent
months, perhaps reflecting less accommodative
financing by lenders as well as greater hesitancy
on the part of consumers to incur further debt
in an atmosphere of economic uncertainty.
887
Industrial Production
Released
for publication
November
15
Industrial production edged up 0.1 percent in
October, reflecting small increases in the output
of consumer goods and of materials and a
strike-related decline in production of business
equipment. In September, total output increased
0.5 percent. At 152.5 percent of the 1967
average, the October index is near the level
reached early in the year.
In October, output of consumer goods rose
0.3 percent. Auto assemblies were about unchanged at a seasonally adjusted annual rate of
7.9 million units—11 percent below the average
of the first half of the year. Production of
business equipment declined 1.3 percent in October, mainly reflecting strikes in the farm and
construction machinery industries; output increased at most other equipment producers.
Production of intermediate goods, which includes construction and business supplies,
edged up only a little in September and has been
essentially unchanged since March.
Output of materials increased 0.3 percent in
October. Among durable goods materials the
production of basic metals declined slightly further, while output of most other durable goods
materials industries increased somewhat. A
general weakening in the output of consumer
durable parts since the beginning of 1979 has
p Preliminary.
Federal Reserve indexes, seasonally adjusted. Latest figures:
October. Auto sales and stocks include imports.
Sept."
Oct.'
May
June
July
Aug
Sept.
Oct.
Percentage
change
10/78
to
10/79
152.3
149.7
146.9
149.8
152.3
148.8
172.8
160.3
156.5
156.4
152.5
149.7
146.8
150.3
152.8
149.3
170.6
160.5
156.5
156.8
1.1
1.3
1.7
1.9
5.9
.5
1.6
-.1
.3
.8
.1
-.1
-.1
-.1
-1.2
.3
.1
0
-.1
.5
.1
-.3
-.3
-.7
-.9
-.6
-. 1
-. 1
.1
.7
-.8
-.7
-1.1
-1.7
-6.0
.3
-.2
.6
.3
-.8
.5
.7
1.0
1.0
3.1
.1
1.0
0
-.2
.1
.1
0
-.1
.3
.3
.3
-1.3
.1
0
.3
1.9
1.5
1.2
-.6
-6.0
1.8
3.5
2.6
1.3
2.3
1967 == 100
Percentage change from preceding month
1979
1979
Industrial production
Total
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment . . .
Intermediate products
Construction supplies
Materials
been mostly offset by continued strength in
equipment parts. Output of nondurable goods
materials—primarily textiles, paper, and chemicals—increased 0.2 percent further in October,
continuing the strength shown over the past
year. Output of energy materials increased 0.8
percent, reflecting an increase in coal production
after a dip in September.
e Estimated.
NOTE. Indexes are seasonally adjusted.
888
Statements to Congress
Statement by Paul A. Volcker,
Chairman,
Board of Governors of the Federal
Reserve
System, before the Joint Economic
Committee
of the U.S. Congress, October 17, 1979.
I appreciate the opportunity to appear again
before this committee in my still-new capacity.
Some years have passed since I had the privilege
of appearing with some frequency as an official
of the Treasury. I note with pleasure the continuity of membership on the committee. I know
that in some cases membership spans decades,
and the committee has played a prominent role
through the years in enhancing economic understanding and policymaking. The Federal Reserve, like so many others, has benefited from
the dialogue.
I belabor the obvious when I say we face
unpleasant economic circumstances, and that
none of our choices is risk-free or pain-free.
At the same time, the clesir and widespread
public perception that the problems are difficult
but that the time has come to deal with them
provides us with an important opportunity to put
in place and sustain forceful and appropriate
policies.
Monetary policies can only be a part of the
overall framework. But they are an essential
part.
It is not necessary to recite all the details of
the long series of events that have culminated
in the serious inflationary environment that we
are now experiencing. An entire generation of
young adults has grown up since the mid-1960s
knowing only inflation, indeed an inflation that
has seemed to accelerate inexorably. In the
circumstances, it is hardly surprising that many
citizens have begun to wonder whether it is
realistic to anticipate a return to general price
stability and have begun to change their behavior accordingly. Inflation feeds in part on itself,
so part of the job of returning to a more stable
and more productive economy must be to break
the grip of inflationary expectations.
We have recently seen clear evidence of the
pervasive influence of inflation and inflationary
expectations on the orderly functioning of financial and commodity markets and on the
value of the dollar internationally. Over a longer
period of time, the uncertainties and distortions
inherent in inflation have had a debilitating
influence on investment, productivity, and
growth. In the circumstances, the overwhelming
feeling in the nation—that we must come to
grips with the problem—reflects the common
sense of the American people. At the same time,
we have to recognize that, after more than four
years of expansion, there are widespread anticipations of inventory adjustments and a downturn
in economic activity. The challenge is to deal
with this troublesome situation in a manner that
promises, over a period of time, to restore a
solid base for sustained growth and stability.
In approaching that challenge, and in our
preoccupation with what is wrong with the
economy, we should not lose sight of the positive aspects of the current situation.
1. The U.S. economy has enjoyed a long and
relatively strong economic recovery; more people are employed than ever before—over 10
million more than 5 years ago.
2. In the face of unprecedented inflation and
enormous new increases in energy prices, wage
trends overall have not appreciably accelerated
this year, reflecting, despite some disturbing
exceptions, the discipline and good sense of
Americans in general in accepting the need for
restraint.
3. As the rate of increase of energy prices
moderates—and it should, with responsible
pricing behavior by producers in coming
months—there is a reasonable prospect that the
overall inflation rate will soon decline.
4. Investment activity, while restrained by
Statements
uncertainties of inflation and by tax and regulatory constraints, has been relatively well maintained, even though it appears lower than consistent with our long-term needs.
5. Economic activity abroad is being sustained; this should support the recent trend of
substantial growth in U.S. exports and help to
improve the overall U.S. current-account position.
6. More generally, the sizable imbalances
among industrialized countries are being reduced; the substantial reduction—even elimination—of Japanese and German current-account
surpluses is particularly noteworthy.
I do not report these facts with any complacency. The actual and prospective achievements
and much more will be jeopardized by a failure
to come to grips with the home-grown inflationary pressures that have become so pervasive, that have led to speculative distortions, and
that have undermined stability and order in the
American and in the world economy. Dealing
with the sources of inflation and instability is
central to both the domestic and the international
objectives of the United States; as I see it, these
objectives are firmly interconnected, and we will
be successful in neither unless we can begin to
move toward restoring a sense of stability in
our economy.
In this setting, the recent actions by the Federal Reserve were designed to deal with the clear
danger of a renewed outburst of destabilizing
and inflationary speculative pressures—a development that could only complicate and distort
the present process of economic adjustment—
and at the same time to establish a stronger
foundation for orderly and sustained growth. In
one sense, the Federal Reserve actions announced on October 6 were part of a continuing
effort to maintain control over money and credit
expansion. Our basic targets were not changed.
But the new measures, which involved among
other things a change in operating procedures,
should provide added assurance that those objectives will be reached. Above all, the new
measures should make abundantly clear our
unwillingness to finance a continuing inflationary process.
Specifically, in the period ahead, more emphasis will be placed on controlling the provi-
to Congress
889
sion of reserves to the banking system, which
ultimately governs the supply of deposits and
money, to keep monetary growth within our
established targets. We have raised the discount
rate so that restraint on bank reserves will not
be offset by excessive borrowing from the Federal Reserve Banks. And we have placed a
special marginal reserve requirement of 8 percent on increases in "managed liabilities" of
larger banks (including U.S. agencies and
branches of foreign banks) because that source
of funds has financed much of the recent buildup
in bank credit.
In connection with these Federal Reserve
actions, I would like to emphasize several
points.
First, as I suggested earlier, our immediate
objective is to forestall speculative excesses and
anticipations of a new inflationary outburst that
could only complicate, and ultimately make
more severe, the process of economic adjustment that is under way. In doing so, I believe
that our recent actions can hasten, not postpone,
the day when interest rates can decline and more
stable conditions can be restored to credit and
capital markets, thus providing part of the
framework for renewed and stable economic
growth. In the meantime, these actions are not
intended to, and will not, cut off the supply of
money and credit to the economy. Indeed, we
are conscious of the fact that there are important
areas of the economy—homebuilding, smaller
businesses, and others—that are particularly dependent on a continuing flow of credit. In that
connection, we have asked the banks to take
special care to avoid lending to support speculative activity, while giving particular attention
to the continuing needs of their established
customers for funds to maintain normal business
operations.
Second, the doubts about the dollar in exchange markets in recent months have been one
factor increasing uncertainties faced by businessmen and consumers alike. Given the dollar's
central position in the international financial
system, we must recognize that its external
value is particularly sensitive to perceptions and
expectations about economic policy and especially to concern about our ability to deal with
inflation. I see no fundamental conflict, indeed
890
Federal Reserve Bulletin • November 1979
no meaningful "trade-off," between our domestic and international economic objectives in
this respect. We continue, on a day-to-day
basis, to monitor developments in foreign exchange markets, and if and when intervention
is necessary, our actions will be closely coordinated with the actions of monetary authorities
abroad.
Third, the recent Federal Reserve actions
offer the promise that more effective control can
be exercised over the growth of monetary aggregates, but they are not an automatic solution
to all our difficulties. The new technique for
conducting open market operations is not a
panacea. The definition of money itself needs
refinement, and redefinition of the monetary
aggregates is currently a major Federal Reserve
objective. We will be monitoring financial markets and the flow of credit closely. We will adapt
our instruments to shifting needs as time passes,
but we do intend to maintain the kind of restraint
on monetary growth that this committee and so
many others have urged for so long.
Finally, we should not rely on monetary policy alone, critical as disciplined monetary policy
is, to solve our economic problems. We also
need a sustained, disciplined fiscal policy; we
need an effective energy policy, commanding
the support of all segments of our society, that
will put us more surely in control of our destiny ;
we need regulatory and tax policies that will
help stimulate investment, cut costs, and in-
crease productivity; and we need international
cooperation and understanding. At the meetings
of the International Monetary Fund and the
World Bank recently held in Belgrade, I was
impressed again by the general understanding
that rising real energy prices will require significant and painful economic adjustments and by
the consensus on the need, under current circumstances, for virtually every country to attach
high priority to the fight against inflation.
As has been amply reported, the atmosphere
at those meetings was restrained, skeptical, and
uneasy. Therein lies a danger. I am convinced
that forceful and effective policies to deal with
the evident problems can be successful. These
policies will need the support of concerned
citizens who recognize the need for hard decisions, for restraint, and even for sacrifice. Pessimism and cynicism can only erode that
process.
We are passing through a period beset with
exceptional economic problems. Let us recognize that there are risks, but that those risks
will only increase if we fail to act forcibly to deal
with inflation now, and if we fail to sustain the
effort. That is the context in which the Federal
Reserve has acted. I am convinced that those
actions, as part of a determined national effort,
can help establish the essential conditions for
a more prosperous and productive America, a
strong dollar, and a sense of stability and coherence in the world economy.
•
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Financial Institutions Supervision, Regulation and Insurance of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives,
October 17, 1979.
Board wishes to make. Instead, I will submit
for the record an appendix [available on request]
stating the Board's positions on specific sections
in the bills, many of which have been covered
in previous Board testimony.
By way of background, the nation has experienced rapid changes during the past decade
in technology, industry structure, and competition in the provision of financial services. To
a large extent the proposed bills being considered today represent responses to the changes
that are occurring. Some, such as the proposal
to permit the underwriting of revenue bonds,
are responsive to a perceived need to clarify and
update the traditional separation between bank-
I am pleased to appear before the committee
on behalf of the Federal Reserve Board to testify
on several proposed bills pertaining to bank
holding companies. Because of the broad scope
of these bills and the many diverse provisions
they contain, it is not possible in my brief
prepared remarks to cover all the comments the
Statements
ing and the securities business. Others, such as
the property and casualty insurance prohibitions, represent efforts to protect insurance
agents from prospective competition in their
business. Proposals to relax regulatory limits on
the debt structure of bank holding companies
would afford investors greater opportunity to
take advantage, through the bank holding company structure, of tax savings and leverage
possibilities. Finally, provisions limiting bank
mergers and bank holding company acquisitions
are intended by their sponsors to maintain a
competitive banking system. The common
thread of these legislative initiatives is that we
are asked to choose among the changes taking
place in the market place, encouraging those
changes that are clearly in the public interest
and resisting those that appear to have counterproductive or anticompetitive implications.
I would like now to comment on three substantive issues that seem to have generated the
most public interest. These are the proposals
that would permit banks and bank holding companies to underwrite municipal revenue bonds,
that would prohibit the sale of property and
casualty insurance by most such companies, and
that would prohibit the Board from denying
formation of a one-bank holding company solely
because it involved a bank stock loan with a
maturity of up to 25 years.
An aspect of the changing financial landscape, which is the focus of H.R. 1539, has
been the rapid growth of financing of revenue
bonds by state and local governments. Last
year, revenue issues accounted for 60 percent
of all tax-exempt bond offerings—up from 30
percent in 1960 and less than 10 percent in the
early 1930s when the Glass-Steagall Act became
law. That act confined banks to general obligation bonds and prohibited them from underwriting and dealing in municipal revenue bonds. It
did not, however, prohibit banks from investing
in such bonds for their own accounts.
The Board has frequently considered, and
supported, legislation that would permit bank
entry into the revenue bond field. After reviewing the issues once again, the Board continues
to support extension of bank underwriting and
dealer activities to what are essentially investment-grade revenue bonds but wishes to note
to Congress
891
two concerns. The first is the possibility that
some dealers may have a competitive advantage
over others because of differences in tax laws.
The second is the need to strengthen those
provisions of the bill intended to guard against
unsound banking practices.
Arguments in favor of bank underwriting of
revenue bonds hinge primarily on the prospect
that increased competition would lower borrowing costs of state and local governments.
The most noticeable effects of this increased
competition would be for those issues now receiving only one or two bids in competitive
auctions and for negotiated offerings in which
the choice of underwriters is limited. In addition, many banks have extensive knowledge
about the investment needs of their correspondents and customers—derived in part from
their current underwriting of general obligation
bonds. Finally, secondary market activities by
dealer banks would tend to enhance the attractiveness of revenue bonds by increasing their
liquidity.
Thus, it is reasonable to conclude that the
entrance of banks into the market for revenue
bonds would improve and broaden the market
for such issues. Potential savings to issuers,
while impossible to quantify, could come from
a reduction both in re-offering yields and in
average underwriting spreads. Nearly all empirical studies support the contention that there
would be at least modest issuer cost reductions.
Opponents argue that the small potential savings are not sufficient to offset the added risk
of abuses. The Board believes that these contentions are of doubtful merit. The tenents of
sound financial practice and the forces of competition, along with existing regulatory oversight authority, have prevented abuses in the
general obligation markets—in which banks
have long been active—and would be equally
applicable in the revenue bond sector. Several
provisions in H.R. 1539 are intended to safeguard against conflicts of interest or unsound
banking practices, as well as to ensure a monitoring of the competitive effects within the securities industry. The Board believes that these
provisions should be tightened somewhat and
should be extended to bank activities in the
general obligation market as well.
892
Federal Reserve Bulletin • November 1979
As indicated, we are concerned that banks
might have an unwarranted competitive edge
from being able to deduct for tax purposes the
interest expense incurred by carrying municipal
securities in their dealer positions. We understand that the Treasury is exploring possible
methods for reducing this advantage, and we
support the effort in this regard.
The proposed limitations on the property,
casualty, and life insurance agency activities of
bank holding companies and their subsidiaries
reflect another dimension of the changing competitive environment. These proposed limitations represent attempts to protect independent
agencies from prospective competition and as
such threaten an adverse impact on the public
interest. The Board believes that the benefits
of greater competition outweigh the adverse
effects, and thus it feels that banking organizations should be allowed to sell credit-related
insurance, including property and casualty insurance. In addition to bringing an extra competitive dimension to the industry, the sale of
insurance by banks and bank holding companies
provides a useful and convenient service to the
public, including sales at places that may be
poorly served by others.
Part of the rationale for the bill is to prevent
potential abuses that may arise when the supplier of credit also has the capability of providing credit-related insurance. But if there is such
a problem, surely it is a general one that applies
to all types of lenders. To single out bank
holding companies and their bank subsidiaries
addresses only a portion of the problem. For
example, previous congressional testimony
suggests that 4 'tying" and other abuses occur
more frequently in the credit life area among
nonbank lenders, such as finance companies and
auto dealers. Yet these lenders would be permitted to continue to sell all types of insurance.
It is also our view that the various exemptions, such as the size exception of $50 million
and the exemption for sales by affiliated finance
companies on transactions under $3,500, would
increase rather than decrease bank holding
company insurance agency activities by broadening the product lines of smaller companies
beyond those now permitted by Board regulation.
With respect to the "grandfather" provisions,
the Board would urge elimination of the prohibition on any expansion in the volume of business done by affected holding companies. Over
a relatively short time such a provision would
simply eliminate grandfathered companies as
effective competitors in this market.
In recent years, investors have used the onebank holding company form of organization
with increasing frequency as a device to facilitate the purchase and sale of small banks. Accommodating provisions in the federal tax law
encourage the formation of one-bank holding
companies and the issuance of debt as part of
the transaction. Excessive leverage may pose a
threat to the safety and soundness of the bank
being acquired, however, so that the Board has
generally denied one-bank holding company
applications involving debt financing in excess
of 12 years. H.R. 4004 would force a liberalization in that policy by prohibiting the Board
from denying the formation of a one-bank holding company when it involved a loan on bank
stock of up to 25 years.
The Board believes that, if the permissible
maturity of such bank-stock loans is lengthened
substantially, there would be a danger that onebank holding companies would incur excessive
acquisition debt and thus reduce or eliminate
their capacity to provide financial support to
their banks in times of need. Large and extended
debt burdens also might induce holding companies to extract sizable dividends from their
banks in order to service that debt. If so, this
action would tend to depress bank capital ratios,
perhaps to unsafe levels in some instances.
More lenient debt standards also would
broaden the number of potential buyers and tend
to drive up the price of banks. Should the price
for small banks become too steep, buyers—in
an effort to recover their investment—would be
under pressure to maximize bank earnings by
moving the bank into riskier loans and investments.
In sum, the Board recognizes that many
buyers of small banks need to incur debt in order
to make the purchase. Moreover, we support
efforts to facilitate the transfer of ownership of
small banks. But we believe that debt issued
in connection with a bank acquisition must be
Statements
held within prudent limits and must not place
undue strain on either the bank's or the holding
company's capacity to service that debt. I might
note that the Board has ample regulatory authority to alter the financing terms on which
bank ownership is transferred through organization of bank holding companies and will research the price, tax and safety, and soundness
impacts of liberalizing the maturity structure of
acquisition debt.
The Board believes developments in the financial sector, and in banking in particular,
have been such that there is little or no need
for most of the other provisions in the bills under
consideration. For example, as Governor Coldwell testified last year on similar competitive
proposals, the Board sees no need to impose
rigid structural limits on expansion of banks or
bank holding companies. We do, however,
continue to favor the proposed clarification of
existing law permitting denial of acquisitions,
even when the possible anticompetitive effects
do not violate the antitrust laws, if the responsible agency believes that the proposed acquisition would not be in the public interest and the
anticompetitive effects are not clearly outweighed by probable community convenience
and needs factors.
With respect to bank holding company expansion into the nonbanking area, the Board
Statement by Frederick H. Schultz, Vice Chairman, Board of Governors of the Federal Reserve System, before the Subcommittee
on
Access to Equity Capital and Business Opportunities of the Committee on Small Business,
U.S. House of Representatives,
October 30,
1979.
I am pleased to appear before you to discuss
the impact on small business of the Federal
Reserve actions announced on October 6.
These actions, as you know, included an
increase of 1 percentage point in the discount
rate, a marginal reserve requirement of 8 percent
on so-called managed liabilities of larger banks,
and a change in operating procedures to give
more emphasis in implementing our money
to Congress
893
submits that this growth has been strictly controlled and limited to activities closely related
to banking. For example, we have authorized
only two minor activities under the 1970 act
that were not already permissible for national
banks. Moreover, nonbanking assets still account for less than 4 percent of total consolidated bank holding company assets. Further,
despite some sizable acquisitions in certain industries such as mortgage banking, consumer
finance, and leasing, the major thrust of bank
holding company expansion to date has been
in the form of new undertakings. Such de novo
expansion seems to us procompetitive on balance and thus contains sizable potential public
benefits.
I can assure you that the Board intends to
proceed with extreme caution in permitting new
activities and that we will continue to look
closely at proposals involving significant acquisitions of nonbank activities to assure that they
satisfy the net public benefits criteria in the statute. Therefore, we see little need for tightening
legislative requirements or for new regulatory
constraints. In the Board's judgment, the financial sector will continue to face a rapidly
changing competitive environment in the years
to come. The present flexibility of the regulatory
framework seems to provide the best system
for responding to the nation's evolving needs.
supply targets to the supply of bank reserves
and less to the level of interest rates. Together
these actions should enable us to exercise firmer
control over the growth of money and credit
and thus assure that monetary policy plays its
appropriate role in dampening inflationary pressures .
At the time of the October 6 actions, the
monetary aggregates and bank credit had been
growing at rates well in excess of our announced
targets, inflation and inflationary expectations
were showing no signs of abating, and speculative activity had unsettled a number of commodity markets. These developments were not
unrelated, nor self-correcting. Failure to deal
with them carried long-term risks that in our
judgment outweighed the short-run risks of tak-
894
Federal Reserve Bulletin • November 1979
ing forceful steps to contain inflation. Reinforcing our determination to keep the growth of
money and credit within our earlier target ranges
seemed essential under the circumstances.
These ranges had been reaffirmed in the
Board's July oversight hearings before the congressional banking committees and were endorsed by those bodies. The long-run targets
adopted for 1979—that is, for the period from
the fourth quarter of 1978 to the fourth quarter
of 1979—still seem appropriate for orderly
growth of the economy. We have not changed
them; we have simply increased our ability to
achieve them. Not only had growth in money
and bank credit been rapid but also it threatened
to become excessive. If this happened, we
would be unable to meet our objective of supplying sufficient credit to finance orderly economic growth while slowing the pace of inflation. The steps we have taken provide better
assurance that we can meet that objective.
Opinions differ as to how long it will take
for our message to be widely understood. We
think the time will be relatively short. Once the
public recognizes that we are serious and that
we intend to stay the course, inflationary expectations should begin to recede and the base will
be laid for a return to the stable and productive
economy we all want.
It almost goes without saying that a healthy
economy provides the kind of environment in
which small business can prosper, and conversely that the soundness and prosperity of this
very important sector are essential to the stability and productiveness of the overall economy.
Success in our efforts to take the steam out of
inflation and out of self-fulfilling inflationary
expectations will be of particular benefit to small
businesses.
But the process of getting firmer control of
the money supply, as a first step toward unwinding inflation, will not be easy or painless.
The next few months could prove difficult for
some businesses—large and small. Those that
have borrowed to finance speculative transactions may be expected to bear the brunt of the
program we have adopted, and appropriately so.
Risky and overextended businesses also may
find it difficult to roll over or fund maturing
short-term debt. Even some well-managed firms
needing funds for productive purposes may, for
a while, find credit somewhat less readily available and more expensive than it was before.
Since small businesses are of necessity so
dependent on commercial banks for the credit
their suppliers do not provide, and since the
actions the Federal Reserve has taken are designed to restrain the growth of bank credit, I
would like to suggest what seems to me the most
likely response of these lenders to the new
conditions under which they must operate.
I have no doubt that banks will make every
effort, as they always do, to meet the legitimate
needs of their best customers, the bulk of which
for most banks is small businesses. We have
urged our member banks to make special efforts
to do so in these difficult times. In a letter of
October 23 to member banks, Chairman
Volcker said that "lending institutions need to
be alert to the continuing need for credit on
reasonable terms to finance the basic needs of
the economy. In accommodating these needs,
we believe banks should take particular care that
small businesses, consumers, home buyers, and
farmers continue to receive a reasonable share
of available funds."
However, banks themselves are likely to be
under considerable financial pressure over the
near term, as demand for bank credit remains
heavy while growth in lendable funds moderates.
The reserve requirement placed on further
additions to the managed liabilities of larger
banks will make such funds more expensive and
thus less attractive; managed liabilities have
financed a significant share of the recent expansion in bank credit. And the increase in the
discount rate is intended to discourage excessive
borrowing from the Federal Reserve Banks as
an alternative source of financing. In addition,
banks have been attracting considerable funds
from issuance of money market certificates, but
banks in general (including nonmembers) and
small banks in particular may be more cautious
in promoting this source of lendable funds while
it is so expensive.
At the same time, slowing in customer demands for credit may be delayed, in part by
lack of acceptable financing for alternative
sources. For example, recent increases in the
Statements
to Congress
895
Banks are also likely to firm their lending
standards, not only as a result of Federal Reserve actions but also because—as is usually the
case—anticipation of a slowdown in the economy is causing lenders and investors to become
more quality-conscious. In addition, banks may
be expected to encourage even high-quality
borrowers to postpone or scale back their financing demands, if they can and if they have
not done so themselves. But I honestly do not
believe that banks will need to, or will, deny
credit to sound, established customers with financing needs that cannot be postponed.
In fact, the most serious financing problem
for such customers over the near term, as I see
it, will be not lack of credit but its cost, which
in turn will likely reduce some spending plans
and financing demands. In his October 23 letter,
Chairman Volcker said, "In adjusting loan
rates, the Board would also call your attention
to the desirability of considering the special
problems of smaller customers who have limited
financing alternatives." Individual bankers have
told us that they will be making particular efforts
to hold down the rates charged on loans to small
businesses. Banks that have a dual prime arrangement have indicated that they do not intend
to abandon it, and some of them apparently have
decided to widen the spread between the prime
and the lower base rate for small businesses.
What we all most want to see, of course, is
a reduction in inflationary expectations, and this
reduction should bring with it a decline in interest rates. The present unprecedented cost of
borrowed funds appears to be unfortunately unavoidable, given the inflation premium that has
been imbedded in interest rates for some time.
There is no chance that interest rates will come
down significantly until inflationary expectations
are damped. We are convinced that our recent
actions, especially when combined with disciplined fiscal policy, represent the best and fastest way to bring that about.
It is clear, from what one hears and what one
reads in the newspapers, that small businesses
are worried, and if I were a small businessman
I might be worried too. There is reason to be
concerned. The next few months could be very
difficult for some businesses. But one has to
keep in mind that continuation of the inflationary and increasingly speculative environment
that had been developing would ultimately have
had far worse consequences, for the economy
as a whole and for most small businesses. The
long-run dangers of the failure of the Federal
Reserve to make a determined effort to curb
inflation outweigh the short-term risks inherent
in the actions we have taken.
•
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Federal Spending
Practices and Open Government of the Committee on Governmental Affairs, U.S. Senate,
November 1, 1979.
I am pleased to appear before the committee
today to present the views of the Federal Reserve Board on S. 1411. The Board is sympathetic with the general objective of the bill—to
reduce paperwork and to put effective controls
on the process of imposing reporting and rec-
cost of funds in long-term securities markets
have caused the postponement of a number of
new issues. Unless the planned use is also
postponed, these borrowers are likely to seek
temporary financing from their banks. Also,
there is as yet little evidence of the expected
recession-associated slowdown in business loan
demand.
Under these circumstances, it seems likely
that an increased proportion of credit demands
will not be met. We have asked our member
banks to avoid lending for speculative purposes
and to channel their available funds into loans
for productive purposes. While it is sometimes
difficult to distinguish between a nonproductive
use and a productive one, I would expect to
see a sharp cutback in financing of obviously
speculative transactions, even before a turnaround in the outlook for inflation dims the
profit potential of such transactions.
896
Federal Reserve Bulletin • November 1979
ordkeeping requirements on the public. Reporting burdens have grown sharply over the years,
and there can be no question of the need for
stern discipline on agency reporting activities.
As a matter of proper procedure, all statistical
initiatives should be required to demonstrate (1)
that there is a pressing need for every piece of
information requested; (2) that there are no
unnecessary duplicative collection efforts; (3)
that information is asked for in the most efficient
and least burdensome manner; and (4) that existing data sources, from whatever agency, are
utilized to the extent feasible.
The Federal Reserve has always endeavored
to conduct its data collection efforts with this
kind of discipline. Over the years we have
strengthened and intensified our report controls.
Since 1975, we have had in place a comprehensive system of clearance procedures. These
procedures are reviewed periodically, and any
changes in clearance standards promulgated by
Executive Order or by Office of Management
and Budget (OMB) guidelines have been incorporated in our program to the extent appropriate.
Our program applies both to proposals for
new reports and to all existing reports. Under
the program, every Board reporting series is
periodically reexamined on a zero-based approach to see whether it can be eliminated, cut
back with respect to contents or reporting panel,
or otherwise improved with respect to reporting
burden. Every Board report is subjected to critical review at several levels and must be justified in detail before it is adopted or renewed.
We devote a substantial amount of resources to
this program, which is coordinated at the senior
staff level. Moreover, the program involves
active participation by several members of the
Board, and the final decision on all report proposals is made by the Board as a whole. We
believe that our program for the control and
review of reporting is one of the most comprehensive in the federal government, and we are
confident that it would meet and surpass the
program and procedural criteria set forth in
section 3504(c)(2) of the bill.
We have had good success in recent years
with the Board's program of reducing the burden of reporting. From the end of 1975 to
midyear 1979, we managed to reduce by almost
25 percent the total number of items of information reported to us on all our reporting forms
(other than those directly related to the accounting for deposits subject to reserve requirements). This total is measured by taking the
number of items of information on each report
multiplied by the number of respondents and
the frequency of reporting within a year, and
the results are then aggregated for all reports.
I should hasten to add that we do not expect
to be able to continue this rate of net reduction.
Given new legislation, new supervisory and
monetary policy needs, and the fact that we have
completed the first cycle of reviewing existing
reports, I would anticipate that we have already
accomplished most of the net reduction possible
for now. Nevertheless, the Board's clearance
and review program will continue to ensure that
reporting burdens are kept to the minimum
consistent with the effective discharge of our
responsibilities.
While our statistical clearance procedures incorporate appropriate OMB clearance guidelines
and standards, the reports collected from banking institutions that are used for supervisory
purposes by the Board have been exempt since
1942 from submission to OMB for approval
under the Federal Reports Act. The banking
supervisory reports of the Comptroller of the
Currency and the Federal Deposit Insurance
Corporation (FDIC) are also exempt. According
to the legislative history of the Federal Reports
Act, the exemption was intended to ensure that
the Bureau of the Budget (OMB's predecessor)
would not be able to prohibit the banking agencies from independently collecting information
with respect to the banks under their supervision
if they determined that the direct collection of
such data was necessary. Among the reasons
for such treatment are (1) the sensitivity of much
supervisory information and of the examination
process; (2) the necessity at times of obtaining
information quickly in response to urgent policy
needs; (3) the highly technical content of much
of the data that must be obtained; and (4) the
fact that many of the data collection activities
and recordkeeping requirements of the federal
banking agencies are based on specific statutory
mandates.
The Board believes that the rationale under-
Statements
lying the current exemption of banking reports
from submission to OMB remains operative,
particularly in view of our own rigorous report
clearance and review procedures. Retention of
the exemption is necessary to ensure the continued and unhindered capability of the financial
supervisory agencies to collect information they
regard as essential for maintaining the
soundness of the banking system. Involving the
proposed Administrator for statistical management in the clearance of reports collected from
banking institutions would seem to serve no
constructive purpose. At a minimum, such involvement would raise serious problems in view
of the sensitivity of the data and would necessarily occasion delays that could interfere with
the effective discharge of our responsibilities.
I am aware that a section of the proposed
bill (3509(a)(3)) contains an "override" provision that would enable the Board, by a twothirds vote, to void the Administrator's disapproval of a proposed reporting requirement and
that another section (3511(b)) would permit the
Administrator to "delegate his power to approve
proposed information requests" to any agency
under certain conditions. But neither of these
provisions is a workable substitute for the continuation of the current exemption. The exercise
of the override could involve a significant lapse
of time because some of the specified procedures
for submitting a request to the Administrator
may be quite time consuming and, in addition,
the Administrator is given up to 90 days to
render his decision. Similarly, use of the "delegation" provision would be at the discretion
of the Administrator, and there can be no commitments in advance as to whether or on what
conditions the provision would be utilized.
Aside from the substantive merits of preserving the current exemption of banking reports
from any centralized clearance process, the
Board submits that S. 1411 would grant authority to the Administrator in terms so broad as
to raise concern that such authority might constitute an undue and unwarranted invasion of
our statutory responsibilities. For example,
under section 3515, the Board's authority
"under any other law" to prescribe policies,
regulations, or procedures in connection with
information requests would be subject "to the
to Congress
897
authority conferred on the Administrator" and
section 3516 would make all existing policies,
regulations, or procedures in connection with
information requests subject to repeal, amendment, or suppression by the Administrator. It
is difficult to assess the consequences of these
sweeping provisions without detailed analysis of
all statutes related to the Board and the policies
and regulations adopted under those statutes.
But it seems clear that these provisions go
beyond a reasonable grant of authority consistent with the specific purposes of the legislation.
A number of specific provisions with respect
to privacy and availability of data are of some
concern. For example, section 3518(b), which
lists the conditions under which information
obtained by one federal agency may be released
to another federal agency, would seem to prevent or to delay the Board in referring evidence
of criminal violations of law obtained during
the course of a bank examination to the Department of Justice. Such referrals of information
are specifically provided for under the Right to
Financial Privacy Act (see 12 U . S . C . , section
3412(a)).
Similarly, the Right to Financial Privacy Act
(see U.S.C., section 3412(d)), authorizes the
exchange of examination or other information
among financial supervisory agencies, notwithstanding the act's basic prohibitions on the
transfer of such information. S. 1411, in section
3518 (b), does not include a similar provision
and could impede or eliminate the sharing or
exchange of examination material among the
Board, Comptroller of the Currency, and FDIC.
Section 3519(a) removes all sanctions for
failure to provide information to a federal
agency unless collection of the information has
been approved by the Administrator. This provision would appear to deny the possibility of
applying legal penalties for the failure to provide
information in cases when the Administrator's
disapproval of the collection of information is
overridden by a two-thirds vote of the members
of an independent regulatory agency, or when
the Administrator's approval is implied by his
failure to respond to an agency request within
the specified time limit. The possibility of legal
sanctions should be available in such cases.
There are also some administrative provisions
898
Federal Reserve Bulletin • November 1979
of the bill that are troublesome to us in that
they appear to be inconsistent with the Board's
independent status under the Federal Reserve
Act. For example, section 3504 would appear
to give the Administrator responsibility for setting certain aspects of budget and management
policies for all agencies covered by the bill. For
the Board, this responsibility would involve
areas placed within its discretionary authority
by statute. Similarly, section 3513 appears to
us to be too broad, both with respect to the
Administrator's possible use of Board personnel
and resources and with respect to his access to
information and records in the Board's possession. As worded, these sections are likely to
give rise to problems more serious than those
they are intended to solve.
I would like also to comment on some technical operating aspects of the bill that could have
serious effects on the operation of the federal
statistical system. One operational problem
arises in connection with section 3509(b), which
sets an approval time limit of two years on all
new reports. This time limit appears too restrictive and probably an inappropriate detail for
legislation. There will be new reports for which
an approval for more than two years is entirely
appropriate. Moreover, our own experience is
that, given the length of time required to go
through all the steps of a rigorous clearance
process, a universal two-year limit may prove
costly and inefficient.
Another operational problem arises in connection with Title II of the bill. That title would
establish, with detailed specification, a "Federal
Information Locator System," and section
3509(a) would require its use. We have had
Statement by Henry C. Wallich,
Member,
Board of Governors of the Federal
Reserve
System, before the Subcommittee on International Economics of the Joint Economic Committee of the U.S. Congress, November 5, 1979.
I am pleased to be able to testify before this
subcommittee on the international implications
of the Federal Reserve's October 6 measures.
some experience in related types of procedures
for the description and specification of banking
data, though of course not on the scale mandated
here. On the basis of our experience, it appears
that development of a federal information locator system as comprehensive as that called for
by the bill would be an extremely complicated
task and may in the end prove unworkable. For
now, any legislation with respect to such a
system might better mandate a program of experimental and developmental work, including
the question of whether the system is likely to
be a cost-effective service. Such experimental
work should include the investigation of the
alternative of separate systems for different
families of statistics that could be geared to the
characteristics of each family. Even so, it is
likely to require a great deal of time and effort
to obtain a clearer picture of what a practical
operational system would look like and to provide an informed appraisal of its probable costs
and benefits.
The requirements under section 3603(3) and
(4) that each agency insert into the locator
system "a data profile for each public-use report, recordkeeping requirement, interagency
report, and intraagency report" and that "all
data elements" in such reports be registered in
the locator system also are premature. Our experience with similar types of systems on a
smaller scale has impressed us with the enormous costs and difficulties involved in designing
a comprehensive system and in trying to force
different kinds of data into a standard format.
Again, considerable developmental work seems
called for before such a sweeping and costly
system is required as a matter of law.
•
The measures represented an added restraint on
the availability of credit and a more effective
technique of controlling growth of the money
supply and related monetary aggregates. These
actions are designed to assist in curbing the
unacceptable inflation we are experiencing and
should bring improvement on both the domestic
and the international side of our economy. My
assignment here is to discuss the international
side. But I am sure you understand fully that
Statements
the domestic and the international effects are
closely interrelated.
As background, I would like to review briefly
some of the most important developments in the
weeks and months leading up to October 6.
The monetary aggregates, after having grown
at quite low rates in the fourth quarter of 1978
and the first quarter of this year, began to expand
at a very rapid pace in the second and third
quarters. Growth of M-l averaged about 10
percent at an annual rate, and growth of M-2
averaged nearly 12 percent over the course of
the latter two quarters. The rapid expansion of
the aggregates in the third quarter occurred
despite increases in the federal funds rate totaling about 114 percent over that quarter. Continuation of growth at these rates would have
meant that we could not achieve our longer-run
targets for the growth in the aggregates from
the fourth quarter of 1978 to the fourth quarter
of 1979. Under the provisions of the Humphrey-Hawkins Act, the Federal Open Market
Committee had set these targets in February and
reaffirmed them in July.
At the same time as incoming data revealed
a surprising degree of real strength in the economy, consumer prices continued to show
monthly increases at an annual rate of 13 percent
in July and August, while the producer price
index increased at an annual rate of nearly 16
percent over the third quarter, portending possibly a near-term acceleration rather than a slowdown of consumer price increases.
In the foreign exchange market, the dollar had
declined 5!/2 percent on a weighted-average
basis from mid-June to the beginning of October, despite a substantial appreciation against
the Japanese yen. The dollar's real exchange
value, that is, the dollar's exchange value adjusted for relative U.S. and foreign inflation
rates, had declined somewhat less; this occurred
despite very heavy official purchases of dollars—
particularly at times by U. S. authorities.
Exchange market pressures on the dollar intensified in September; the German mark-dollar
rate, for example, had declined to nearly the
October 1978 lows. Because of these developments, exchange market participants were anticipating some sort of policy "package" from
the United States. Talk in the market tended
to Congress
899
to focus on possibilities for macroeconomic
policy action, particularly monetary policy action. This reflected the view that the fundamental cause of the dollar's weakness in exchange
markets was the severe U.S. inflation rate and
that until prospects brightened for bringing inflation under control, even augmented U.S. exchange market intervention could do little to
help the situation. A sign of the importance that
the exchange market attached to action on inflation by the United States was the dollar's
sharp advance on October 2 on the news that
Chairman Volcker had left the Belgrade meetings early to return to Washington.
Speculation in the gold markets reached feverish proportions from late August until early
October, with the price soaring $100 per ounce
to a high of almost $450 in London trading on
October 2. The price was double that prevailing
at the beginning of the year. This infection soon
spread to other metals markets, and from there
to still other commodities. The Bureau of Labor
Statistics (BLS) index of industrial commodity
prices rose at an annual rate in excess of 50
percent over the month of September, with
metals prices rising faster than the average.
These developments in gold and other commodity markets were symptomatic of a general
rise in inflationary expectations that tended to
feed on themselves.
It was against this background that the Federal Reserve announced on October 6 its package of complementary measures: (1) an increase
of 1 percentage point in the basic discount rate
from 11 to 12 percent; (2) the establishment of
a marginal reserve requirement of 8 percent on
further expansion in the managed liabilities of
the larger banks—liabilities that had been actively used to finance the rapid recent expansion
in bank credit; and (3) a change in short-run
operating procedures, placing more emphasis on
the supply of bank reserves and less emphasis
on managing the interest rate on overnight federal funds, in order to achieve better control
over the growth of the monetary aggregates.
This last action was intended, in particular, to
provide greater assurance that the growth of the
aggregates over the remainder of the year would
be consistent with the previously adopted
longer-run target ranges.
900
Federal Reserve Bulletin • November 1979
In making the announcement and later in
letters addressed to the Federal Reserve member
banks and to the branches and agencies of
foreign banks, Chairman Volcker made clear
that these measures were intended to bring about
a slowing but not a halt in the flow of credit.
He particularly stressed the need for bankers to
provide a continuing reasonable flow of credit
for small businesses, consumers, homebuyers,
and farmers and pointed out the inadvisability
of loans to finance essentially speculative
operations in commodities, gold, and foreign
exchange markets as well as the inadvisability
of unproductive financial loans. To guard
against the possibility that lending by foreign
banks to U.S. residents might undermine the
restraint exerted by the marginal reserve requirements, Chairman Volcker requested the
cooperation of U.S. branches and agencies of
these banks as well as their foreign affiliates.
Bank credit and the expansion of the monetary aggregates appear to have slowed significantly since the measures were adopted, although initially the effects were obscured by
errors in the data concerning the money supply.
In the financial markets, the reaction of interest
rates and exchange rates was immediate and
sharp.
By the end of the first full week, interest rates
on short-term dollar assets had jumped as much
as V/2 percentage points. Prices in stock and
bond markets tumbled. In the exchange market,
the dollar advanced more than 1 V2 percentage
points on a weighted-average basis—by 2 percentage points against the German mark—
withoiH any central bank intervention support.
The gold price did not show any further significant decline, though it had dipped below $400
a few days earlier, and remained very volatile.
Other commodity prices dropped back from
their early-October highs.
Commentary on the Federal Reserve's actions
in the domestic and foreign financial press and
by foreign monetary authorities was predominantly favorable, emphasizing that the United
States was doing something fundamental about
its inflation problem. Some skepticism was expressed, however, as to whether the Federal
Reserve would "stick to its guns" in moderating growth of money and credit should a widely
forecast recession actually materialize. Among
exchange market participants, foreign dealers
tended to be more skeptical in their comments
than American dealers.
By the end of October, conditions in financial
markets had become more settled. Short-term
rates were somewhat higher but were generally
less variable, except for the federal funds market
where the effective daily rate ranged from more
than MVi percent to about 12 percent. Somewhat greater variability in the federal funds rate
was, of course, expected in view of our new
operating methods. Stock and bond prices,
which had declined sharply for about two weeks
following the October 6 announcement, regained a moderate portion of their earlier losses
and also tended to stabilize.
In the exchange markets, some of the initial
skepticism about the Federal Reserve's actions
waned, and the dollar advanced even further,
even with substantial sales of dollars by a few
central banks in support of their currencies. The
dollar remained near these higher levels despite
the release of trade figures showing a large U.S.
deficit for September and an increase in the
German Federal Bank's discount rate at the end
of October. The dollar was underpinned by the
Treasury's announcement of its two new issues
of mark-denominated securities in the German
capital market. By month-end the dollar's
weighted-average exchange value was up 3%
percent from its October 1 level. Gold prices
eventually declined to less than $380, partly
reflecting the announced increase in the size of
the Treasury's auction held on November 1. In
other commodity markets, prices declined further—the BLS index was off 3 percent over the
month.
Our actions seem to have prevented any further aggravation of inflationary psychology and,
at least for now, may have broken its gathering
momentum. Over the longer run, the principal
effect of the new monetary policy procedures
of the Federal Reserve will occur through the
impact that these procedures can be expected
to have on growth of the money supply and on
inflation. If the monetary aggregates are firmly
controlled, and if complementary energy, tax,
regulatory, and structural policies are followed,
inflation should come down over a period of
Statements
time, and the dollar should maintain its strength.
If at the same time the current account moves
in the direction of surplus, as now seems likely,
this development should add further strength.
Obviously there are a number of uncertainties
in the present situation, including the risk of
a major further increase in the price of oil,
which underscores the importance of an effective energy policy.
In the context of the dollar's exchange value,
a greater volatility of the federal funds rate such
as may be associated with the new procedures
should not have major significance. For one,
day-to-day fluctuations in the federal funds rate
are unlikely to be interpreted as an indication
of changes in Federal Reserve policy, as has
been the tendency in the past.
Second, other short-term interest rates and
long-term interest rates need not be expected
to follow closely, if at all, the daily fluctuations
of the funds rate. Such behavior would reflect
both the lesser policy significance attached to
the funds rate and the fact that 90-day rates and,
even more, longer-term rates tend to reflect the
average level of the funds rate over the life of
the instrument rather than to follow its daily
level. For instance, fluctuations in rates for daily
money in London and in Frankfurt do not seem
to influence very much the rate for 90-day
money and also do not seem to influence very
much the exchange rates of the pound sterling
and the German mark.
Third, the interest rate is only one of several
factors bearing upon the exchange market and
is probably not the most important. Interest rate
differentials are more fully exploited by inves-
to Congress
901
tors and arbitragers when markets are reasonably stable. Interest-bearing investments in a
currency must be held for some time, after all,
before the expected benefits from a more attractive interest rate accrue.
An example of this may be seen in the behavior of the foreign exchange value of the
dollar during the years 1975-77 as contrasted
with interest rate developments during that period. The dollar went from a position of
weakness early in 1975 to a condition of greater
strength during late 1975, almost all of 1976,
and the first part of 1977, only to weaken
thereafter. U.S. interest rates actually moved
inversely with the exchange value of the dollar,
falling, on balance, from mid-1975 through
mid-1977 and rising once more beginning in the
latter part of 1977. To be sure, U.S. interest
rates must be viewed in relation to interest rates
in foreign countries and in relation, particularly,
to rates of inflation. The data do, however, warn
against the acceptance of any simple correlation
between interest rates and exchange rates.
If our economy should slow down as is
widely predicted, it could be appropriate for
interest rates to decline as growth in money and
credit subsides and inflationary expectations diminish. I do not believe that such a development
would be viewed as a source of weakness of
the dollar. Inflation and current-account developments are more fundamental determinants of
the exchange rate than are nominal interest
rates. The measures announced by the Federal
Reserve on October 6 should assist in the effort
to make progress in effectively dealing with
these fundamental factors.
•
903
Announcements
REGULATION
Y:
REVISION
The Federal Reserve Board on November 2,
1979, announced revision of its Regulation Y
(Bank Holding Companies) to authorize bank
holding companies or their nonbank subsidiaries
to act as agent for the sale of general insurance
in communities with a population of less than
5,000.
The Board acted in conformity with court
action requiring the Board to reconsider a 1971
rule permitting this activity and after consideration of comment received on a proposal to
alter the language of the 1971 rule.
The revised rule, effective December 5, 1979,
permits bank holding companies or their nonbank subsidiaries with a principal place of
banking business in a community with a population of 5 , 0 0 0 or less to sell any type of
insurance in such a community.
A provision of the previous rule permitting
such activity in communities with inadequate
insurance agency facilities was deleted.
STATEMENT
ON
DISCRIMINATION
The Examination Council announced on October 16, 1979, that the five federal bank and
thrift institution regulators represented on the
council have adopted the following policy
statement on discrimination.
The Comptroller of the Currency, the
Federal Deposit Insurance Corporation, the
Federal Reserve Board, the Federal Home
Loan Bank Board, and the National Credit
Union Administration, as federal agencies
responsible for the regulation and supervision of depositary institutions, in cooperation with other responsible authorities, are
committed to identifying and eliminating
illegal discrimination and to encouraging
nondiscriminatory practices in the operations
of these institutions. Over the years, the
attention of the federal financial regulatory
agencies has focused especially on such
matters as discrimination on the basis of
race, religion, national origin, sex, and
marital status in the provision of lending and
other financial services and the discriminatory aspects of mortgage and other lending practices that may have a disparate impact on various neighborhoods and communities. The various efforts of the agencies
have been directed toward the enforcement
of prohibitions against such discrimination,
the development by the institutions they
supervise of appropriate remedial or affirmative actions to help eradicate the effects
of past discrimination, and the sponsorship
or support of numerous special-emphasis
programs that have the objective of assisting
the financial institutions to meet the credit
needs of all segments of the communities
which they serve.
Within the boundaries of their jurisdiction, the five federal financial regulatory
agencies are committed to effective enforcement of the various civil rights laws of the
nation. The agencies believe that illegal discrimination is contrary to the best interests
of not only the people discriminated against
but also the financial institutions themselves.
The provision of employment opportunity
without discrimination on any prohibited
basis is first and foremost the legal responsibility of the employer, and it is the policy
of the agencies that the financial institutions
that they regulate should review periodically
their employment practices to ascertain that
they are, in fact, nondiscriminatory and, to
the extent that any discrimination is found,
adopt appropriate remedial policies and
practices to eliminate it.
Such an examination of employment
practices should include consideration of the
institutions' policies regarding the payment
of dues on behalf of employees to private
clubs that discriminate on the basis of race,
sex, religion, color, or national origin. Because business is commonly conducted at
such clubs, membership prohibition may
have an adverse and discriminatory effect
904
Federal Reserve Bulletin • November 1979
upon the career advancement of employees
who are denied equal opportunity to access
as either members or guests.
For this reason, the agencies discourage
the payment by financial institutions, on
behalf of their employees, officers, or directors, of fees or dues for membership in
private clubs where business is commonly
conducted, which so discriminate. Payment
by financial institutions of the costs of any
business or social function held at any such
club or organization that practices discrimination is also discouraged.
PROPOSED
ACTIONS
The Federal Reserve Board on October 15,
1979, announced proposals for revisions of
Truth in Lending enforcement guidelines intended to overcome administrative problems and
to permit the resumption of reimbursements to
consumers for overcharges. The Board requested comment by December 21, 1979.
The Board on October 29, 1979, proposed
two bank reporting forms to be used by foreign
banking organizations to meet supervisory requirements of the Bank Holding Company Act
and of the International Banking Act of 1978.
The new forms are designed to implement the
Board's national treatment concept of supervision of foreign banking organizations by requiring financial reporting equivalent to that required of domestic banking organizations. The
Board requested comment by January 4, 1980.
The Board on October 30, 1979, proposed
regulations limiting the interstate banking activities of foreign banks in the United States. The
proposed rules, on which the Board asked comment by January 4, 1980, would implement the
provisions of the International Banking Act of
1978 restricting the establishment in the United
States by foreign banks of branches and subsidiary banks in more than one state. The proposed
rules would be incorporated into the Federal
Reserve's Regulation K.
905
Record of Policy Actions of the
Federal Open Market Committee
MEETING HELD ON SEPTEMBER 18, 1979
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 economic
activity in the current quarter was near its level in the second quarter
when, according to revised estimates of the Commerce Department,
real output of goods and services had declined at an annual rate of
2.4 percent. Average prices, as measured by the fixed-weight price
index for gross domestic business product, appeared to be rising at
a pace close to the annual rate of 10 percent estimated for the second
quarter.
Staff projections suggested some further contraction in economic
activity and then an upturn beginning in 1980. Over the year ahead,
the rise in average prices was projected to moderate a little from the
rapid rate of recent quarters, and the rate of unemployment was
expected to increase substantially.
The dollar value of retail sales expanded moderately in July and
August, but in real terms such sales changed little and were estimated
to be about 4 percent below their December 1978 peak. Sales of new
automobiles rebounded in July and August from relatively depressed
levels in the previous month, and by the end of August dealers'
inventories of unsold cars had been reduced from an unusually high
level.
The index of industrial production fell 1.1 percent in August after
changing little on balance from the peak reached in March. Output
of consumer durable goods, especially auto assemblies, declined
sharply further in August, and production of business equipment and
materials, including automotive parts, also fell.
In August nonfarm payroll employment was virtually unchanged
following several months of slowing growth. In manufacturing, employment declined for the fifth consecutive month and the average
workweek fell somewhat from an already reduced level. The unemployment rate rose from 5.7 to 6.0 percent after having fluctuated
in a range of 5.6 to 5.8 percent since the beginning of the year.
906
Federal Reserve Bulletin • November 1979
Private housing starts declined somewhat in July to an annual rate
of 1.8 million units, close to the rate for the second quarter but well
below the average for 1978. Sales of new and existing single-family
homes increased in July but were still about 3 percent below their
record pace in 1978.
The latest survey of business plans taken by the Department of
Commerce in late July and August suggested that spending for plant
and equipment would expand 13.2 percent in 1979 as a whole; the
survey taken three months earlier had suggested an increase of 12.7
percent. The new survey implied substantially less growth in the
second half of the year than in the first half. Manufacturers' new
orders for nondefense capital goods declined considerably in July
to a level about 15 percent below their March peak.
Producer prices of finished goods continued to rise rapidly in
August. The advance was led by a further sharp increase in prices
of energy items and by a substantial rise in prices of consumer foods,
which had declined considerably over the previous four months. Prices
of intermediate goods also continued to move up rapidly in August,
but prices of crude goods changed little after having advanced substantially in most earlier months of the year.
In July consumer prices increased considerably further. As in other
recent months a large portion of the rise was accounted for by sharp
advances in energy prices and homeownership costs. Food prices were
little changed for the second straight month. Over the first seven
months of the year consumer prices rose at an annual rate of about
13 percent.
In August the rise in the index of average hourly earnings of private
nonfarm production workers moderated appreciably, to an annual rate
of about 2 3A percent. Over the first eight months of the year the increase
was at an annual rate of just over 7 percent, compared with a rise
of 8V2 percent during 1978. However, the increase in total hourly
compensation in the nonfarm business sector was about as rapid in
the first half of 1979 as it had been during 1978 and, with productivity
declining, the rise in unit labor costs accelerated substantially.
In foreign exchange markets the dollar came under downward
pressure in the last few days of August and the first few days of
September, but its trade-weighted value against major foreign currencies had changed little on balance since the Committee's meeting in
mid-August. The U.S. trade deficit narrowed sharply in July from
Record of Policy Actions
of FOMC
its average level earlier in the year. Exports, especially of agricultural
products, continued to rise strongly in July, while non-oil imports
fell substantially.
Total credit outstanding at U.S. commercial banks grew more slowly
in August than in most earlier months of the year. Banks' holdings
of Treasury obligations declined and growth in their total loans
moderated. However, business loans continued to expand rapidly in
August and commercial paper issued by nonfinancial firms again
increased sharply.
The monetary aggregates—M-l, M-2, and M-3—continued to expand at relatively rapid rates in August and early September, although
somewhat less rapidly than in June and July. Growth in demand
deposits slowed considerably in August but the slowdown was partly
offset by an acceleration in growth of currency. Expansion in time
and savings deposits included in M-2 moderated slightly in August
and net inflows of funds to nonbank thrift institutions also slowed
somewhat. Growth in money market mutual funds and other short-term
nondeposit investments had remained rapid in recent weeks.
At its meeting on August 14, the Committee had decided on ranges
of tolerance for the annual rates of growth in M-l and M-2 during
the August-September period of 4 to 8 percent and 7 to 11 percent
respectively. The Committee had agreed that in the coming intermeeting period the Manager for Domestic Operations of the System Open
Market Account should direct open market operations initially toward
an increase in the weekly average federal funds rate to a level of
about 11 percent. Subsequently, if the two-month growth rates of M - l
and M-2, given approximately equal weight, appeared to be close
to or beyond the upper or lower limits of the indicated ranges, the
objective for the funds rate was to be raised or lowered in an orderly
fashion within a range of 10% to 1114 percent.
Soon after the meeting, incoming data indicated that M-l and M-2
were growing at rapid rates in August. On August 30, projections
for the August-September period suggested that growth of M-1 would
be well above the upper limit of the range that had been specified
by the Committee and that growth of M-2 would be at about the
upper limit of its range. Over the preceding week, the Manager for
Domestic Operations had been aiming for a weekly average federal
funds rate approaching the 1114 percent upper limit of the intermeeting
range, and in the statement week ending August 29, the rate averaged
907
908
Federal Reserve Bulletin • November 1979
11.16 percent. In these circumstances, the Committee voted on August
30 to amend the domestic policy directive by raising the upper limit
of the range for the funds rate to IV/2 percent, but with the understanding that not all of the additional leeway would be used immediately; use of the leeway would depend on subsequent behavior of
the monetary aggregates and on developments in foreign exchange
markets. In the week preceding today's meeting, the funds rate
averaged about 11% percent.
Short-term interest rates rose substantially during the intermeeting
period, in response to strong business demands for credit as well as
to the System's actions firming money market conditions and to
expectations of further monetary restraint. Bond yields also increased
somewhat. During the period, banks raised their loan rate to prime
business borrowers in steps from 113A percent to a new record of
13 percent. On August 16, the Board of Governors announced an
increase in Federal Reserve Bank discount rates from 10 to IOV2
percent.
In home mortgage markets, yields on new mortgage commitments
rose to new highs in early September and, according to field reports,
nonrate lending terms were tightened further by numerous lenders.
However, the volume of mortgage lending appeared to be well maintained .
In the Committee's discussion of the economic situation and outlook, none of the members expressed disagreement with the staff
appraisal of some further contraction in real gross national product
after the current quarter's interruption of the decline. However, members continued to express uncertainty about the duration and extent
of the contraction in activity.
In one view, recent domestic developments were consistent with
no more than a mild contraction. While several months had elapsed
since the first signs of economic weakness and the automobile industry
in particular was in recession, activity and demand for labor in certain
industries and regions of the country remained strong. The unemployment rate had increased little from a level that, under prevailing market
conditions, some observers associated with full employment; retail
sales in real terms had leveled out in the summer, after a decline
over the first half of the year; and business inventories appeared to
be undergoing a moderate correction. Moreover, a new labor contract
in the automobile industry had been negotiated without a work stop-
Record
of Policy Actions
of FOMC
page, eliminating one potential disturbance. Abroad, growth of industrial activity appeared sufficiently robust to contribute to improvement
in this country's net exports and thereby to lend support to domestic
activity.
In an alternative view, the contraction in activity could become
more severe. Recent indicators of demands suggested mounting
weakness, and business inventories—up sharply in July, according
to the latest available data—were unlikely to be worked down easily.
Industrial activity abroad—as in the United States, adversely affected
by the petroleum situation, by inflation, and by instability in foreign
exchange markets—might not contribute so much to improvement in
U.S. net exports.
A major problem in the current situation, it was observed, was
the tendency of inflation to raise effective income tax rates and thereby
to reduce real disposable income and consumption expenditures. The
sharp increase in oil prices, moreover, had similar effects.
Members continued to express great concern about the rapid rise
in prices. It was observed that inflation was more persistent now than
it had been in earlier periods of some weakening in demands and
that there was still a tendency to underestimate its strength. Furthermore, the current and foreseeable rate of inflation could itself lead
to additional shocks to the economy.
At its meeting on July 11, 1979, the Committee reaffirmed the ranges
for monetary growth in 1979 that it had established in February. Thus,
the Committee agreed that from the fourth quarter of 1978 to the
fourth 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 , lVi to V/2 percent; M-2, 5 to 8 percent;
and M-3, 6 to 9 percent. The associated range for commercial bank
credit was 7V2 to IOV2 percent. Having established the range for M-l
in February on the assumption that expansion of ATS and NOW
accounts would dampen growth by about 3 percentage points over
the year, the Committee also agreed that actual growth of M-l might
vary in relation to its range to the extent of any deviation from that
estimate. It now appeared that expansion of such accounts would
reduce measured growth of M-1 over the year by about 1V2 percentage
points.
In contemplating policy for the period immediately ahead, Committee members took note of a staff analysis suggesting that growth of
909
910
Federal Reserve Bulletin • November 1979
M-l was likely to taper off during the September-October period in
response to the lagged effects of the substantial increase in interest
rates during the summer and the prospective weakening of expansion
in nominal GNP. However, growth over the two months would still
be relatively high. Growth of M-2 was also expected to moderate,
mainly as a result of the behavior of M-l but also because of a
reduction in growth of savings and small time deposits at commercial
banks in response to the increased level of interest rates.
In the Committee's discussion, most members favored a policy of
directing open market operations toward a slight additional firming
in money market conditions early in the period before the next regular
meeting and of having subsequent operations guided by incoming
evidence on the behavior of the monetary aggregates. Because of the
rapid monetary expansion of recent months, these members in general
favored specification of ranges for growth of M-l and M-2 over the
September-October period that were indicative of less tolerance for
relatively high than for relatively low growth. Sentiment was also
expressed for directing open market operations toward maintaining
the money market conditions currently prevailing, unless incoming
evidence suggested that growth of the monetary aggregates over the
September-October period would deviate significantly from the rates
currently expected. No member advocated an easing in money market
conditions in the period immediately ahead.
Members who favored policy measures directed toward some additional firming in money market conditions stressed the importance of
achieving a significant reduction in the pace of monetary expansion
over the months ahead. Such a reduction was necessary if growth
over the year ending in the fourth quarter of 1979 was to be held
well within the longer-run ranges that had been reaffirmed by the
Committee in July. Additional measures to restrain monetary growth,
moreover, would tend to lower expected rates of inflation and, consequently, would have a constructive influence on a range of decisions
affecting prices and wages as well as the value of the dollar in foreign
exchange markets.
It was suggested, in addition, that monetary policy had not been
as restrictive as it might have appeared. Despite the level of interest
rates, credit demands and credit expansion remained strong. Interest
rates after allowance for expected rates of inflation were not high.
Furthermore, monetary growth this year had been greater than indi-
Record
of Policy Actions
of FOMC
cated by M - l alone, owing to rapid expansion in close substitutes
for demand deposits and currency.
In support of a policy directed toward maintenance for the time
being of prevailing money market conditions, members emphasized
the substantial rise in interest rates over the past two months and the
tendency of changes in rates to affect monetary growth and economic
activity only after a considerable lag. In this connection, it was
observed that growth of demand deposits had slowed markedly in July
and August, while expansion of M - l had been supported by an
unexplained pickup in growth of currency in circulation. Growth of
the monetary aggregates was likely to taper off in coming months,
and additional firming in money market conditions might slow growth
to an unwanted degree. In the current circumstances, the Committee
should avoid policy actions that might intensify the developing
weakness in economic activity.
At the conclusion of its discussion of policy, the Committee decided
to instruct the Manager for Domestic Operations to direct open market
operations initially toward a slight increase in the weekly average
federal funds rate to about
percent. Subsequently, the objective
for the funds rate was to be raised or lowered in an orderly fashion
within a range of WA to 11% percent if the monetary aggregates
appeared to be growing over the September-October period at annual
rates close to or beyond the upper or lower limits of the following
ranges: M - l , 3 to 8 percent; and M-2, 6V2 to IOV2 percent. They
also agreed that in assessing the behavior of the aggregates, the
Manager should give approximately equal weight to 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 in the third
quarter real output of goods and services remained near the reduced level
of the preceding quarter and that prices on the average continued to rise
rapidly. In August, as in July, the dollar value of retail sales expanded
moderately, but sales in real terms changed little and were substantially
below those of last December. Industrial production dropped from the
May-July level, largely because of sharp curtailments in output of motor
vehicles and parts. Nonfarm payroll employment was unchanged; the
911
912
Federal Reserve Bulletin • November 1979
unemployment rate rose from 5.7 percent to 6.0 percent, thus moving
above the narrow range in which it had fluctuated since the beginning
of the year. Producer prices of finished goods continued to rise rapidly
in August, led by further large increases in energy items and a substantial
advance in consumer foods following a significant decline over the
preceding four months. The rise in the index of average hourly earnings
over the first eight months of this year was moderately below the pace
during 1978, but the increase in total hourly compensation in the nonfarm
business sector has been about as rapid this year as last.
The dollar came under downward pressure in foreign exchange markets
in the last days of August and the early days of September, but its
trade-weighted value against major foreign currencies has changed little
on balance since mid-August. The U.S. trade deficit in July was sharply
reduced from the average in the first half of the year.
Growth of M - l , M-2, and M-3 was relatively rapid in August and
early September, although not so rapid as in June and July. Market interest
rates have risen appreciably over recent weeks. An increase in Federal
Reserve discount rates from 10 to lOVi percent was announced on August 16.
Taking account of past and prospective developments in employment,
unemployment, production, investment, real income, productivity, international trade and payments, and prices, the Federal Open Market Committee seeks to foster monetary and financial conditions that will resist
inflationary pressures while encouraging moderate economic expansion
and contributing to a sustainable pattern of international transactions. At
its meeting on July 1 1, 1979, the Committee agreed that these objectives
would be furthered by growth of M - l , M-2, and M-3 from the fourth
quarter of 1978 to the fourth quarter of 1979 within ranges of 1V2 to
AVi percent, 5 to 8 percent, and 6 to 9 percent respectively, the same
ranges that had been established in February. Having established the range
for M-1 in February on the assumption that expansion of ATS and NOW
accounts would dampen growth by about 3 percentage points over the
year, the Committee also agreed that actual growth in M-l might vary
in relation to its range to the extent of any deviation from that estimate.
The associated range for bank credit is IV2 to 10V2 percent. The Committee
anticipates that for the period from the fourth quarter of 1979 to the
fourth quarter of 1980, grdwth may be within the same ranges, depending
upon emerging economic conditions and appropriate adjustments that may
be required by legislation or judicial developments affecting interest-bearing transactions accounts. These ranges will be reconsidered 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 foreign exchange and domestic financial markets.
Early in the period before the next regular meeting, System open market
operations are to be directed at attaining a weekly average federal funds
Record
of Policy Actions
of FOMC
rate slightly above the current level. Subsequently, operations shall be
directed at maintaining the weekly average federal funds rate within the
range of WA to 11% percent. In deciding on the specific objective for
the federal funds rate the Manager for Domestic Operations 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: 3 to 8 percent for M-l and 6V2 to IOV2
percent for M-2. If rates of growth of M-l and M-2, given approximately
equal weight, appear to be close to or beyond the upper or lower limits
of the indicated ranges, the objective for the funds rate is to be raised
or lowered in an orderly fashion within its range.
If the rates of growth in the aggregates appear to be beyond the upper
or lower limits 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 shall promptly notify the Chairman, who will then
decide whether the situation calls for supplementary instructions from
the Committee.
Votes for this action: Messrs. Volcker, Kimbrel, Mayo,
Partee, Schultz, Mrs. Teeters, Messrs. Wallich, and Timlen.
Votes against this action: Messrs. Balles, Black, Coldwell,
and Rice. (Mr. Timlen voted as an alternate member.)
Messrs. Balles, Black, and Coldwell agreed with the majority that
open market operations should be directed toward attaining a slight
increase in the federal funds rate initially in the coming intermeeting
period, but they dissented because they believed that, given the
excessive monetary growth in recent months relative to the Committee's longer-run ranges, the directive adopted by the Committee would
allow for too rapid monetary growth before an additional increase
in the objective for the funds rate would be triggered. To enhance
the prospects for achieving the Committee's objective of restraining
monetary growth they preferred, moreover, to provide leeway for a
rise in the funds rate to an upper limit of 12 percent.
Mr. Rice dissented from this action because he believed that an
additional firming in money market conditions would intensify the
developing weakness in economic activity and was unlikely to affect
the rate of inflation favorably within six to nine months. In his
judgment, monetary growth most likely would slow in the months
immediately ahead even if current money market conditions were
maintained, and growth of the monetary aggregates over the year
ending in the fourth quarter of 1979 probably would fall within the
Committee's longer-run ranges.
913
914
Federal Reserve Bulletin • November 1979
2. Authorization for Domestic Open Market Operations
The Committee took note of paragraph 3 of the authorization for
domestic open market operations, which authorizes the Reserve Banks
to engage in the lending of U . S . government securities held in the
System Open Market Account under such instructions as the Committee might specify from time to time. That paragraph had been added
to the authorization on October 7, 1969, on the basis of a judgment
by the Committee that such lending of securities was reasonably
necessary to the effective conduct of open market operations and to
the implementation of open market policies, and on the understanding
that the authorization would be reviewed periodically. At this meeting
the Committee concurred in the judgment of the Manager for Domestic
Operations that the lending activity in question remained reasonably
necessary and that, accordingly, the authorization should remain
in effect subject to review in six months.
Votes for this action: Messrs. Volcker, Balles, Black,
Cold well, Kimbrel, Mayo, Partee, Rice, Schultz, Mrs.
Teeters, Messrs. Wallich, and Timlen. Votes against this
action: None. (Mr. Timlen voted as an alternate member.)
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual Report,
are made available a few days after the next regularly scheduled meeting and
are subsequently published in the B U L L E T I N .
915
Law Department
Statutes, regulations, interpretations, and decisions
AMENDMENTS
TO REGULATION
D
The Board of Governors has amended Regulation D to establish a marginal reserve requirement
of 8 per cent on the amount by which the total
of certain managed liabilities of member banks
(and Edge and Agreement Corporations) and
United States branches and agencies of foreign
banks exceeds the amount of such managed liabilities outstanding during a base period.
Effective October 6, 1979, section 204.5 of
Regulation D is amended as follows:
Section
204.5—Reserve
Requirements
(a) Reserve percentages. Pursuant to the provisions of section 19 of the Federal Reserve Act,
section 7 of the International Banking Act of 1978
and § 204.2(a) and subject to paragraphs (b)
through (f) of this section,***
(b) Currency and coin. The United States currency and coin of a member bank or a United
States branch or agency of a foreign bank shall
be counted as reserves in determining compliance
with the reserve requirements of this section.
(f) Marginal
reserve
requirements.
(1) Member banks. During the seven-day reserve maintenance period beginning October 25,
1979, and during each seven-day reserve maintenance period thereafter, a member bank shall
maintain a daily average reserve balance against
its time deposits equal to 8 per cent of the amount
by which the daily average of its total managed
liabilities during the seven-day computation period
ending eight days prior to the beginning of the
corresponding seven-day reserve maintenance period exceeds the member bank's managed liabilities base. For a member bank that, on a daily
average basis, is a net borrower of total managed
liabilities during the fourteen-day base period
ending September 26, 1979, its managed liabilities
base shall be the daily average of its total managed
liabilities during the base period or $100 million,
whichever is greater. For a member bank that, on
a daily average basis, is a net lender of total
managed liabilities during the fourteen-day base
period ending September 26, 1979, its managed
liabilities base shall be the sum of its negative total
managed liabilities and $100 million. A member
bank's managed liabilities are the total of the
following:
(i)(A) time deposits of $100,000 or more with
original maturities of less than one year;
(B) time deposits of $100,000 or more with
original maturities of less than one year representing borrowings in the form of promissory
notes, acknowledgements of advance, due bills,
or similar obligations as provided in § 204.1(f);
and
(C) time deposits with remaining maturities of
less than one year represented by ineligible bankers' acceptances or obligations issued by a member
bank's affiliate, as provided in § 204.1(f). However, managed liabilities do not include savings
deposits, or time deposits, open account that constitute deposits of individuals, such as Christmas
club accounts and vacation club accounts that are
made under written contracts providing that no
withdrawal shall be made until a certain number
of periodic deposits have been made during a
period of not less than 3 months;
(ii) any obligation with an original maturity of
less than one year that is issued or undertaken as
a means of obtaining funds to be used in its
banking business in the form of a promissory note,
acknowledgment of advance, due bill, ineligible
bankers' acceptance, repurchase agreement (except on a U.S. or agency security), or similar
obligation (written or oral) issued to and held for
the account of a domestic banking office or
agency 1 5 of another commercial bank or trust
company that is not required to maintain reserves
15. Any banking office or agency in any State of the United
States or the District of Columbia of a bank organized under
domestic or foreign law.
916
Federal Reserve Bulletin • November 1979
pursuant to this Part, a savings bank (mutual or
stock), a building or savings and loan association,
or cooperative bank, a credit union, or any agency
of the United States, the Export-Import Bank of
the United States, Minbanc Capital Corporation
and the Government Development Bank for Puerto
Rico;
(iii) any obligation with an original maturity of
less than one year that is issued or undertaken as
a means of obtaining funds to be used in its
banking business in the form of a repurchase
agreement arising from a transfer of direct obligations of, or obligations that are fully guaranteed
as to principal and interest by, the United States
or any agency thereof that the institution is obligated to repurchase (except repurchase agreements
issued to a domestic banking office or agency of
a member bank, or other organization that is
required to maintain reserves under this part pursuant to the Federal Reserve Act, 16 or to a Federal
Reserve Bank 1 7 ) to the extent that the amount of
such repurchase agreements exceeds the total
amount of United States and agency securities held
by the member bank in its trading account;
(iv) any obligation that arises from a borrowing
by a member bank from a dealer in securities that
is not a member bank or other organization that
is required to maintain reserves pursuant to this
Part, 16 for one business day, of proceeds of a
transfer of deposit credit in a Federal Reserve Bank
(or other immediately available funds), received
by such dealer on the date of the loan in connection
with clearance of securities transactions;
(v) borrowings with an original maturity of less
than one year from foreign offices of other banks
and from institutions that are exempt from interest
rate limitations pursuant to § 217.3(g) of Regulation Q;
(vi) net balances due from the member bank's
domestic offices to its foreign branches;
(vii) assets (including participations) held by
the member bank's foreign branches that were
acquired from the member bank's domestic offices; and
(viii) credit outstanding from its foreign
16. Edge Corporations engaged in banking, Agreement
Corporations, operations subsidiaries of member banks, and
U.S. branches and agencies of foreign banks with worldwide
banking assets in excess of $1 billion.
17. Repurchase agreements entered into with nonexempt
entities, such as nonmember banks and nonbank dealers, are
not subject to marginal reserve requirements if such agreements
are intended to provide collateral to such nonexempt entities
in order to engage in repurchase transactions with the Federal
Reserve System Open Market Account.
branches to U.S. residents 1 8 (other than assets
acquired and net balances due from its domestic
offices). Provided, That this paragraph does not
apply to credit extended (1) in the aggregate
amount of $100,000 or less to any United States
resident, (2) by a foreign branch which at no time
during the computation period had credit outstanding to United States residents exceeding $1
million, (3) under binding commitments entered
into before May 17, 1973, or (4) to an institution
that will be maintaining reserves on such credit
under paragraphs (c) or (f) of this section or under
Regulation K.
Provided, however, That in no event shall the
reserves required on a member bank's aggregate
time and savings deposits be more than 10 per
cent.
(2) United States branches and agencies of
foreign banks. During the seven-day reserve
maintenance period beginning November 8, 1979,
a United States branch or agency of a foreign bank
with worldwide banking assets in excess of $1
billion shall maintain a daily average reserve balance against its liabilities equal to 8 per cent of
the amount by which the daily average of its total
managed liabilities during the three seven-day
computation periods beginning October 11,18 and
25, 1979, exceeds the total of the institution's
managed liabilities base. During the seven-day
reserve maintenance period beginning November
15, 1979, and during each seven-day reserve
maintenance period thereafter, a United States
branch or agency of a foreign bank with worldwide
banking assets in excess of $1 billion shall maintain a daily average reserve balance against its
liabilities equal to 8 per cent of the amount by
which the daily average of its total managed liabilities during the seven-day computation period
ending eight days prior to the beginning of the
corresponding seven-day reserve maintenance period exceeds the institution's managed liabilities
base. In determining managed liabilities of United
States branches and agencies, the managed liabilities of all United States branches and agencies of
18. (a) Any individual residing (at the time the credit is
extended) in any State of the United States or the District of
Columbia; (b) any corporation, partnership, association or
other entity organized therein ("domestic corporation"); and
(c) any branch or office located therein of any other entity
wherever organized. Credit extended to a foreign branch,
office, subsidiary, affiliate or other foreign establishment
("foreign affiliate") controlled by one or more such domestic
corporations will not be deemed to be credit extended to a
United States resident if the proceeds will be used in its foreign
business or that of other foreign affiliates of the controlling
domestic corporation(s).
Law Department
the same foreign parent bank and of its majorityowned (greater than 50 per cent) foreign banking
subsidiaries (the ' ' f a m i l y " ) shall be consolidated.
Asset and liability amounts that represent intraf a m i l y t r a n s a c t i o n s b e t w e e n U n i t e d States
branches and agencies of the same family shall
not be included in computing the managed liabilities of the family. United States branches and
agencies of the same family shall designate one
U.S. office to be the reporting office for purposes
of filing consolidated family reports required for
determination of the family's marginal reserve
requirements. The reporting office shall file reports
and maintain marginal reserves required under this
section for the family at the Federal Reserve Bank
of the district in which the reporting office is
located. For a family of United States branches
and agencies that, on a daily average basis, is a
net borrower of total managed liabilities during
the fourteen-day base period ending September 26,
1979, the managed liabilities base for the family
shall be the daily average of the family's total
managed liabilities during the base period or $100
million, whichever is greater. For a family of
United States branches and agencies that, on a
daily average basis, is a net lender of total managed liabilities during the fourteen-day base period
ending September 26, 1979, the managed liabilities base for the family shall be the sum of the
family's negative total managed liabilities and
$100 million. The total managed liabilities of a
family are the total of each branch's and agency's:
(i)(A) time deposits of $100,000 or more with
original maturities of less than one year;
(B) time deposits of $100,000 or more with
original maturities of less than one year representing borrowings in the form of promissory
notes, acknowledgements of advance, due bills,
or similar obligations as provided in § 204.1(f);
(C) obligations with remaining maturities of
less than one year represented by ineligible bankers' acceptances;
(D) credit balances of $100,000 or more with
an original maturity of 30 days or more but less
than one year. However, managed liabilities do
not include savings deposits, or time deposits,
open account that constitute deposits of individuals, such as Christmas club accounts and vacation
club accounts that are made under written contracts
providing that no withdrawal shall be made until
a certain number of periodic deposits have been
made during a period of not less than 3 months;
(ii) any obligation with an original maturity of
less than one year that is issued or undertaken as
a means of obtaining funds to be used in its
917
banking business in the form of a promissory note,
acknowledgement of advance, due bill, ineligible
bankers' acceptance, repurchase agreement (except on a U.S. or agency security), or similar
obligation (written or oral) issued to and held for
the account of a domestic banking office or
agency 1 5 of another commercial bank or trust
company that is not required to maintain reserves
pursuant to this Part, a savings bank (mutual or
stock), a building or savings and loan association,
a cooperative bank, a credit union, or an agency
of the United States, the Export-Import Bank of
the United States, Minbanc Capital Corporation
and the Government Development Bank for Puerto
Rico;
(iii) any obligation with an original maturity of
less than one year that is issued or undertaken as
a means of obtaining funds to be used in its
banking business in the form of a repurchase
agreement arising from a transfer of direct obligations of, or obligations that are fully guaranteed
as to principal and interest by, the United States
or any agency thereof that the institution is obligated to repurchase (except repurchase agreements
issued to a domestic banking office or agency of
a member bank, or other organization that is
required to maintain reserves under this Part pursuant to the Federal Reserve Act, 1 6 or to a Federal
Reserve Bank 1 7 ) to the extent that the amount of
such repurchase agreements exceeds the total
amount of United States and agency securities held
by the institution in its trading account;
(iv) any obligation that arises from a borrowing
from a dealer in securities that is not a member
bank or other organization that is required to
maintain reserves pursuant to this Part, 16 for one
business day, of proceeds of a transfer of deposit
credit in a Federal Reserve Bank (or other immediately available funds), received by such dealer
on the date of the loan in connection with clearance
of securities transactions;
(v) borrowings with an original maturity of less
than one year from foreign offices of other banks
and from institutions that are exempt from interest
rate limitations pursuant to § 217.3(g) of Regulation Q;
(vi) assets (including participations) held by the
foreign parent bank (including branches and agencies located outside the States of the United States
and the District of Columbia) and by the foreign
parent's majority-owned (greater than 50 per cent)
foreign subsidiaries (including branches and agencies located outside the States of the United States
and the District of Columbia) or parent holding
company that were acquired from the U.S. branch
918
Federal Reserve Bulletin • November 1979
or agency (other than assets required to be sold
by the Federal supervisory authority of the branch
or agency); and
(vii) net balances due to the family's foreign
parent bank (including branches and agencies located outside the States of the United States and
the District of Columbia) and to the foreign
parent's majority-owned (greater than 50 per cent)
foreign banking subsidiaries (including branches
and agencies located outside the States of the
United States and the District of Columbia) or
parent holding company, after deducting an
amount equal to 8 per cent of the U.S. branch
and agency family's total assets (not including
cash, cash items in the process of collection, or
balances due from the foreign parent bank (including branches and agencies located outside the
States of the United States and the District of
Columbia), the parent's majority-owned (greater
than 50 per cent) subsidiaries (including branches
and agencies located outside the States of the
United States and the District of Columbia) or
parent holding company, and balances due from
unrelated banks).
Any excess or deficiency in the marginal reserve
balances required under this paragraph shall be
subject to § 204.3 of this Part.
AMENDMENTS
FUND
TO
ELECTRONIC
TRANSFERS
The Board of Governors has adopted in final
form (1) additional sections of Regulation E to
implement certain provisions of the Electronic
Fund Transfer Act that take effect May 10, 1980,
and (2) amendments to existing sections of Regulation E.
Regulation E, is amended as follows:
1. Section 205.2 is amended, effective May 10,
1980, by deleting the last sentence of paragraph
(i), by redesignating paragraph (j) as (k), by adding new paragraph (j), by redesignating paragraph
(k) as (1), and by revising paragraph (3) of new
§ 205.2(1), o read as follows:
Section
205.2—Definitions
*
*
*
*
*
(j) "Preauthorized electronic fund transfer"
means an electronic fund transfer authorized in
advance to recur at substantially regular intervals.
(k) " S t a t e " * * *
(1) "Unauthorized electronic fund transfer"***
(3) that is initiated by the financial institution or
its employee.
2. Section 205.3 is amended, effective November 15, 1979, by revising the introductory
statement and paragraphs (c) and (d), to read as
follows:
Section
205.3—Exemptions
The Act and this regulation do not apply to the
following:
(c) Certain
securities
or
commodities
transfers. Any transfer the primary purpose of
which is the purchase or sale of securities or
commodities regulated by the Securities and Exchange Commission or the Commodity Futures
Trading Commission.
(d) Certain automatic transfers. Any transfer
under an agreement between a consumer and a
financial institution which provides that the institution will initiate individual transfers without a
specific request from the consumer.
(1) Between a consumer's accounts within the
financial institution, such as a transfer from a
checking account to a savings account;
(2) Into a consumer's account by the financial
institution, such as the crediting of interest to a
savings account (except that the financial institution is subject to §§ 913(2), 915, and 916 of the
Act); or
(3) From a consumer's account to an account
of the financial institution, such as a loan payment
(except that the financial institution is subject to
§§ 913(1), 915, and 916 of the Act).
*
*
*
*
*
3. Section 205.4 is redesignated as § 205.5,
and new § 205.4 is added, effective May 10, 1980,
to read as follows:
Section
205.4—Special
Requirements
(a) Services offered by two or more financial
institutions. Two or more financial institutions that
jointly provide electronic fund transfer services
may contract among themselves to comply with
the requirements that this regulation imposes on
any or all of them. When making disclosures under
§§ 205.7 and 205.8, a financial institution that
provides electronic fund transfer services under an
agreement with other financial institutions need
make only those disclosures which are within its
knowledge and the purview of its relationship with
the consumer for whom it holds an account.
Law Department
(b) Services offered by financial institutions
holding a consumer's
account.
not
[See accompanying proposed rules document
for § 205.4(b).]
(c) Multiple accounts and account holders. (1)
If a consumer holds two or more accounts at a
financial institution, the institution may combine
the disclosures required by the regulation into one
statement (for example, the financial institution
may mail or deliver a single periodic statement
or annual error resolution notice to a consumer
for multiple accounts held by that consumer at that
institution).
(2) If two or more consumers hold a joint
account from or to which electronic fund transfers
can be made, the financial institution need provide
only one set of the disclosures required by the
regulation for each account.
(d) Additional
information;
disclosures
required by other laws. At the financial institution's
option, additional information or disclosures required by other laws (for example, Truth in Lending disclosures) may be combined with the disclosures required by this regulation.
4. New § 205.5 is amended, effective May 10,
1980, by revising paragraph (b)(2) and by deleting
paragraph (d), to read as follows:
Section
205.5—Issuance
*
(b) Exception
* *
*
*
of Access
*
Devices
*
***
*
(2) The distribution is accompanied by a complete disclosure, in accordance with § 205.7(a),
of the consumer's rights and liabilities that will
apply if the access device is validated;
5. Old § 205.5 is amended, effective November 15, 1979, by redesignating it as § 205.6
and by revising paragraphs (a)(3)(i) and (b), to
read as follows:
Section 205.6—Liability
Unauthorized
Transfers
of Consumer
for
(a) General rule.***
(3) ***
(i) A summary of the consumer's liability under
this section, or under other applicable law or
agreement, for unauthorized electronic fund
transfers and, at the financial institution's option,
919
notice of the advisability of promptly reporting
loss or theft of the access device or unauthorized
transfers.
*
*
*
*
*
(b) Limitations on amount of liability. The
amount of a consumer's liability for an unauthorized electronic fund transfer or a series of related
unauthorized transfers shall not exceed $50 or the
amount of unauthorized transfers thaf occur before
notice to the financial institution under paragraph
(c) of this section, whichever is less, unless one
or both of the following exceptions apply:
*
*
*
*
*
6. Sections 205.7, 205.8, 205.10(b), (c), and
(d), 205.12, and 205.13 are added, effective May
10, 1980, to read as follows:
Section 205.7—Initial
Disclosure
Terms and
Conditions
of
(а) Content of disclosures. At the time a consumer contracts for an electronic fund transfer
service or before the first electronic fund transfer
is made involving a consumer's account, a financial institution shall disclose to the consumer, in
a readily understandable written statement, the
following terms and conditions of the electronic
fund transfer service, as applicable:
(1) A summary of the consumer's liability
under § 205.6, or other applicable law or agreement, for unauthorized electronic fund transfers
and, at the financial institution's option, the advisability of promptly reporting loss or theft of the
access device or unauthorized transfers.
(2) The telephone number and address of the
person or office to be notified when the consumer
believes that an unauthorized electronic fund
transfer has been or may be made.
(3) The financial institution's business days, as
determined under § 205.2(d).
(4) The type of electronic fund transfers that
the consumer may make and any limitations on
the frequency and dollar amount of transfers. The
details of the limitations need not be disclosed if
their confidentiality is essential to maintain the
security of the electronic fund transfer system.
(5) Any charges for electronic fund transfers or
for the right to make transfers.
(б) A summary of the consumer's right to receive documentation of electronic fund transfers,
as p r o v i d e d in §§ 2 0 5 . 9 , 2 0 5 . 1 0 ( a ) , and
205.10(d).
(7) A summary of the consumer's right to stop
payment of a preauthorized electronic fund transfer
920
Federal Reserve Bulletin • November 1979
and the procedure for initiating a stop-payment
order, as provided in § 205.10(c).
(8) A summary of the financial institution's
liability to the consumer for its failure to make
or to stop certain transfers under § 910 of the Act.
(9) The circumstances under which the financial institution in the ordinary course of business
will disclose information to third parties concerning the consumer's account.
(10) A notice that is substantially similar to the
following notice concerning error resolution procedures and the consumer's rights under them:
In Case of Errors or Questions About Your
Electronic Transfers
Telephone us at [insert telephone number]
or
Write us at [insert address]
as soon as you can, if you think your statement
or receipt is wrong or if you need more information
about a transfer listed on the statement or receipt.
We must hear from you no later than 60 days after
we sent you the first statement on which the
problem or error appeared.
(1) Tell us your name and account number (if
any).
(2) Describe the error or the transfer you are
unsure about, and explain as clearly as you can
why you believe it is an error or why you need
more information.
(3) Tell us the dollar amount of the suspected
error.
If you tell us orally, we may require that you
send us your complaint or question in writing
within 10 business days.
We will tell you the results of our investigation
within 10 business days after we hear from you
and will correct any error promptly. If we need
more time, however, we may take up to 45 days
to investigate your complaint or question. If we
decide to do this, we will recredit your account
within 10 business days for the amount you think
is in error, so that you will have the use of the
money during the time it takes us to complete our
investigation. If we ask you to put your complaint
or question in writing and we do not receive it
within 10 business days, we may not recredit your
account.
If we decide that there was no error, we will
send you a written explanation within 3 business
days after we finish our investigation. You may
ask for copies of the documents that we used in
our investigation.
(b) Timing of disclosures for accounts in existence on May 10, 1980. A financial institution shall
mail or deliver to the consumer the information
required by paragraph (a) of this section on or
before June 9, 1980, or with the first periodic
statement required by § 205.9(b) after May 10,
1980, whichever is earlier, for any account that
is open on May 10, 1980, and
(1) From or to which electronic fund transfers
were made prior to May 10, 1980;
(2) With respect to which a contract for such
transfers was entered into between a consumer and
a financial institution; or
(3) For which an access device was issued to
a consumer.
Section 205.8—Change
in
Error Resolution
Notice
Terms;
(a) Change in terms. A financial institution
shall mail or deliver a written notice to the consumer at least 21 days before the effective date
of any change in a term or condition required to
be disclosed under § 205.7(a) if the change would
result in increased fees or charges, increased liability for the consumer, fewer types of available
electronic fund transfers, or stricter limitations on
the frequency or dollar amounts of transfers. Prior
notice need not be given where an immediate
change in terms or conditions is necessary to
maintain or restore the security of an electronic
fund transfer system or account. However, if a
change required to be disclosed under this paragraph is to be made permanent, the financial institution shall provide written notice of the change
to the consumer on or with the next regularly
scheduled periodic statement or within 30 days,
unless disclosure would jeopardize the security of
the system or account.
(b) Error resolution notice. For each account
from or to which electronic fund transfers can be
made, a financial institution shall mail or deliver
to the consumer, at least once each calendar year,
the notice set forth in § 205.7(a)(10). Alternatively, a financial institution may mail or deliver
a notice that is substantially similar to the following notice on or with each periodic statement
required by § 205.9(b):
In Case of Errors or Questions About Your
Electronic Transfers
Telephone us at [insert telephone number]
or
Write us at [insert address]
Law Department
as soon as you can, if you think your statement
or receipt is wrong or if you need more information
about a transfer on the statement or receipt. We
must hear from you no later than 60 days after
we sent you the first statement on which the error
or problem appeared.
(1) Tell us your name and account number (if
any).
(2) Describe the error or the transfer you are
unsure about, and explain as clearly as you can
why you believe there is an error or why you need
more information.
(3) Tell us the dollar amount of the suspected
error.
We will investigate your complaint and will
correct any error promptly. If we take more than
10 days to do this, we will recredit your account
for the amount you think is in error, so that you
will have use of the money during the time it takes
us to complete our investigation.
Section
205.10—Preauthorized
(a) Preauthorized
Transfers
transfers to a consumer's
ac-
count.
[See accompanying proposed rules document for
§ 205.10(a).]
(b) Preauthorized transfers from a consumer's
account;
writen authorization.
Preauthorized
electronic fund transfers from a consumer's account may be authorized by the consumer only
in writing, and a copy of the authorization shall
be provided to the consumer by the party that
obtains the authorization from the consumer.
(c) Consumer's right to stop payment. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account
by notifying the financial institution orally or in
writing at any time up to 3 business days before
the scheduled date of the transfer. The financial
institution may require written confirmation of the
stop-payment order to be made within 14 days of
an oral notification if, when the oral notification
is made, the requirement is disclosed to the consumer together with the address to which confirmation should be sent. If written confirmation has
been required by the financial institution, the oral
stop-payment order shall cease to be binding 14
days after it has been made.
(d) Notice of transfers varying in amount.
Where a preauthorized electronic fund transfer
from the consumer's account varies in amount
921
from the previous transfer relating to the same
authorization, or the preauthorized amount, the
financial institution or the designated payee shall
mail or deliver, at least 10 days before the scheduled transfer date, a written notice of the amount
and scheduled date of the transfer. If the financial
institution or designated payee informs the consumer of the right to receive notice of all varying
transfers, the consumer may elect to receive notice
only when a transfer does not fall within a specified range of amounts or, alternatively, only when
a transfer differs from the most recent transfer by
more than an agreed-upon amount.
Section
205.12—Relation
to State
Law
(a) Preemption of inconsistent state laws. The
Board shall determine, upon the request of any
state, financial institution, or other interested
party, whether the Act and this regulation preempt
state laws relating to electronic fund transfers.
Only those state laws that are inconsistent with
the Act and this regulation shall be preempted and
then only to the extent of the inconsistency. A
state law is not inconsistent with the Act and this
regulation if it is more protective of a consumer.
(b) Standards for preemption. The following
are examples of the standards the Board will apply
in determining whether a state law, or a provision
of that law, is inconsistent with the Act and this
regulation. Inconsistency may exist when state law
(1) Requires or permits a practice or act prohibited by the Act or this regulation;
(2) Provides for consumer liability for unauthorized electronic fund transfers which exceeds that
imposed by the Act and this regulation;
(3) Provides for longer time periods than the
Act and this regulation for investigation and correction of errors alleged by a consumer, or fails
to provide for the recrediting of the consumer's
account during the institution's investigation of
errors as set forth in § 205.11(c); or
(4) Provides for initial disclosures, periodic
statements, or receipts that are different in content
from that required by the Act and this regulation
except to the extent that the disclosures relate to
rights granted to consumers by the state law and
not by the Act or this regulation.
(c) Procedures for preemption. Any request for
a determination shall include the following:
(1) A copy of the full text of the state law in
question, including any regulatory implementation
or judicial interpretation of that law;
(2) A comparison of the provisions of state law
922
Federal Reserve Bulletin • November 1979
with the corresponding provisions in the Act and
this regulation, together with a discussion of reasons why specific provisions of state law are either
consistent or inconsistent with corresponding sections of the Act and this regulation; and
(3) A comparison of the civil and criminal
liability for violation of state law with the provisions of § § 9 1 5 and 916(a) of the Act.
(d) Exemption for state-regulated
transfers.
(1) Any state may apply to the Board for an
exemption from the requirements of the Act and
the corresponding provisions of this regulation for
any class of electronic fund transfers within the
state. The Board will grant such an exemption if
the Board determines that
(1) Under the law of the state that class of
electronic fund transfers is subject to requirements
substantially similar to those imposed by the Act
and the corresponding provisions of this regulation, and
(ii) There is adequate provision for state enforcement.
(2) To assure that the federal and state courts
will continue to have concurrent jurisdiction, and
to aid in implementing the Act:
(1) No exemption shall extend to the civil liability provisions of § 915 of the Act; and
(ii) After an exemption has been granted, for
the purposes of § 915 of the Act, the requirements
of the applicable state law shall constitute the
requirements of the Act and this regulation, except
to the extent the state law imposes requirements
not imposed by the Act or this regulation.
Section
205.13—Administrative
Enforcement
(a) Enforcement by federal agencies. (1) Administrative enforcement of the Act and this regulation for certain financial institutions is assigned
to the Comptroller of the Currency, Board of
Governors of the Federal Reserve System, Board
of Directors of the Federal Deposit Insurance Corporation, Federal Home Loan Bank Board (acting
directly or through the Federal Savings and Loan
Insurance Corporation), National Credit Union
Administration Board, Civil Aeronautics Board,
and Securities and Exchange Commission.
(2) Except to the extent that administrative enforcement is specifically committed to other authorities, compliance with the requirements imposed under the Act and this regulation is enforced
by the Federal Trade Commission.
(b) Issuance of staff interpretations. (1) Unofficial staff interpretations are issued at the staff's
discretion where the protection of § 915(d) of the
Act is neither requested nor required, or where
a rapid response is necessary.
(2)(i) Official staff interpretations are issued at
the discretion of designated officials. No interpretations will be issued approving financial institutions' forms or statements. Any request for an
official staff interpretation of this regulation shall
be made in writing and addressed to the Director
of the Division of Consumer Affairs, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551. The request shall contain a
complete statement of all relevant facts concerning
the transfer or service, and shall include copies
of all pertinent documents.
(ii) Within 5 business days of receipt of a
request, an acknowledgment will be sent to the
person making the request. If the designated officials deem issuance of an official staff interpretation to be appropriate, the interpretation will be
published in the Federal Register to become effective 30 days after the publication date. If a
request for public comment is received, the effective date will be suspended. The interpretation will
then be republished in the Federal Register and
the public given an opportunity to comment. Any
official staff interpretation issued after opportunity
for public comment shall become effective upon
publication in the Federal
Register.
(3) Any request for public comment on an official staff interpretation of this regulation shall be
made in writing and addressed to the Secretary,
Board of Governors of the Federal Reserve System, Washington, D.C. 20551. It must be postmarked or received by the Secretary's office within
30 days of the interpretation's publication in the
Federal Register. The request shall contain a
statement setting forth the reasons why the person
making the request believes that public comment
would be appropriate.
(4) Pursuant to § 915(d) of the Act, the Board
has designated the Director and other officials of
the Division of Consumer Affairs as officials "duly
authorized" to issue, at their discretion, official
staff interpretations of this regulation.
(c) Record retention. (1) Evidence of compliance with the requirements imposed by the Act
and this regulation shall be preserved by any
person subject to the Act and this regulation for
a period of not less than 2 years. Records may
be stored by use of microfiche, microfilm, magnetic tape, or other methods capable of accurately
retaining and reproducing information.
(2) Any person subject to the Act and this
Law Department
regulation that has actual notice that it is being
investigated or is subject to an enforcement proceeding by an agency charged with monitoring that
person's compliance with the Act and this regulation, or that has been served with notice of an
action filed under § § 9 1 5 or 916(a) of the Act,
shall retain the information required in paragraph
(c)(1) of this section that pertains to the action
or proceeding until final disposition of the matter,
unless an earlier time is allowed by order of the
agency or court.
7. Appendix A is amended, effective May 10,
1980, by revising the introductory statement and
by adding §§ A(8)(a), (c), and (d), (9), and (10),
to read as follows:
Appendix
A—Model
Disclosure
Clauses
This appendix contains model disclosure clauses
for optional use by financial institutions to facilitate compliance with the disclosure requirements
of §§ 205.5(a)(3), (b)(2), and (b)(3), 205.6(a)(3),
and 205.7. Section 915(d)(2) of the .Act provides
that use of these clauses in conjunction with other
requirements of the jgulation will protect financial institutions from liability under § § 9 1 5 and
916 of the Act to the extent that the clauses
accurately reflect the institutions' electronic fund
transfer services.
Financial institutions need not use any of the
clauses, but may use clauses of their own design
in conjunction with the model clauses. The inapplicable words or portions of phrases in parentheses should be deleted. The underscored catchlines are not part of the clauses and should not
be used as such. Financial institutions may make
alterations, substitutions, or additions in the
clauses in order to reflect the services offered, such
as technical changes (e.g., substitution of a trade
name for the word " c a r d , " deletion of inapplicable services, or substitution of lesser liability
limits in § A(2)). Sections A(3) and A(9) include
references to a telephone number and address.
Where two or more of these clauses are used in
a disclosure, the telephone number and address
need not be repeated if referenced.
Section A(8)—Disclosure
of Right to Receive
Documentation of Transfers (§§
205.5(b)(2),
205.7(a)(6))
(a) Terminal transfers. You can get a receipt
at the time you make any transfer to or from your
923
account using one of our (automated teller machines) (or) (point-of-sale terminals).
(b) Preauthorized
credits.
[See accompanying proposed rules document
for § A(8)(b).]
(c) Periodic
statements.
You will get a
(monthly)(quarterly) account statement (unless
there are no transfers in a particular month. In
any case you will get the statement at least quarterly).
(d) Passbook account where the only possible
electronic fund transfers are preauthorized
credits. If you bring your passbook to us, we will
record any electronic deposits that were made to
your account since the last time you brought in
your passbook.
Section A(9)—Disclosure
of Right to Stop Payment of Preauthorized
Transfers, Procedure for
Doing So, Right to Receive Notice of Varying
Amounts, and Financial Institution's
Liability
for Failure to Stop Payment (§§
205.5(b)(2),
205.7(a)(6),
(7), and (8))
(a) Right to stop payment and procedure for
doing so. If you have told us in advance to make
regular payments out of your account, you can
stop any of these payments. Here's how:
Call us at [insert telephone number], or write
us at [insert address], in time for us to receive
your request 3 business days or more before the
payment is scheduled to be made. If you call, we
may also require you to put your request in writing
and get it to us within 14 days after you call. (We
will charge you [insert amount] for each stoppayment order you give.)
(b) Notice of varying amounts. If these regular
payments may vary in amount, (we) (the person
you are going to pay) will tell you, 10 days before
each payment, when it will be made and how much
it will be. (You may choose instead to get this
notice only when the payment would differ by
more than a certain amount from the previous
payment, or when the amount would fall outside
certain limits that you set.)
(c) Liability for failure to stop payment of
preauthorized transfer. If you order us to stop one
of these payments 3 business days or more before
the transfer is scheduled, and we do not do so,
we will be liable for your losses or damages.
924
Federal Reserve Bulletin • November 1979
Section A(10)—Disclosure
of Financial Institution 's Liability for Failure to Make
Transfers
(§§ 205.5(b)(2),
205.7(a)(8))
community having a population not exceeding
5,000.
(a) Liability for failure to make transfers. If we
do not properly complete a transfer to or from your
account according to our agreement with you, we
will be liable for your losses or damages. However, there are some exceptions. We will not be
liable, for instance:
AMENDMENTS
• If, through no fault of ours, your account
does not contain enough money to make the
transfer.
• If the transfer would go over the credit limit
on your overdraft line.
• If the automated teller machine where you
are making the transfer does not have enough cash.
• If the (terminal) (system) was not working
properly and you knew about the breakdown when
you started the transfer.
• If circumstances beyond our control (such as
fire or flood) prevent the transfer.
• There may be other exceptions.
AMENDMENT
TO REGULATION
Y
The Board of Governors has amended its Regulation Y to provide that the sale of general insurance by bank holding companies in communities
with populations not exceeding 5,000 is an activity
"closely related" to banking.
Effective December 5, 1979, section 225.4(a)
is amended by revising subparagraph (9)(iii) to
read as follows:
Section 225.4—Nonbanking
Activities
(a) Activities closely related to banking
managing or controlling banks.
or
(9) acting as insurance agent or broker in offices at which the holding company or its subsidiaries are otherwise engaged in business (or in an
office adjacent thereto) with respect to the following types of insurance:
(iii) any insurance sold by a bank holding
company or a nonbanking subsidiary in a community that has a population not exceeding 5,000 (as
shown by the last preceeding decennial census)
provided the principal place of banking business
of the bank holding company is located in a
TO REGULATION
PROCEDURE,
AND
DELEGATION
OF
RULES
Y,
RULES
OF
REGARDING
AUTHORITY
The Board of Governors has amended its regulations to assign responsibility for receiving applications and reports from a foreign bank that does
not have a subsidiary bank in the United States
to the Federal Reserve Bank of the district in which
banking assets of the foreign bank are the largest.
In addition, the Board has amended its regulations
to transfer primary responsibility for the supervision, examination, and processing of applications
of an Edge Corporation from the Reserve Bank
of the district in which such Corporation is located
to the Reserve Bank responsible for supervising
the Corporation's parent holding company or
bank.
Bank Holding Companies
Change in Bank Control
and
Effective October 24, 1979, Bank Holding
Companies and Change in Bank Control, Regulation Y, is amended by revising §§ 225.1(c) and
225.4(g)(3) to read as follows:
Section
225.1—
Authority, Scope,
and
Definitions
(c) Federal Reserve Bank. The term "Federal
Reserve B a n k " as used in this Part with respect
to action by, on behalf of, or directed to be taken
by a bank holding company or other organization
shall mean either the Federal Reserve Bank of the
Federal Reserve district in which the operations
of the bank holding company or other organization
are principally conducted, as measured by total
deposits held or controlled by it in subsidiary
banks on the date on which it became, or is to
become, a bank holding company, or such Reserve
Bank as the Board may designate. In the case of
a foreign banking organization that is not a bank
holding company but which has one or more
branches, agencies, or commercial lending companies located in any State of the United States
or the District of Columbia, "Federal Reserve
B a n k " shall mean, unless otherwise determined
by the Board, the Reserve Bank of the district in
which its banking assets are the largest as of the
later of January 1, 1980, or the date that it estab-
Law Department
lishes its first branch, agency, or commercial
lending company. With respect to notices filed and
other actions taken under the Control Act, the term
refers to the Federal Reserve Bank for institution
to be acquired, as determined by the preceding
sentence in the case of bank holding companies
and by section 9 of the Federal Reserve Act in
the case of State member banks.
Section
225.4—Nonbanking
(g) Foreign bank holding
Activities
companies.
(3) A foreign bank holding company that is
of the opinion that other activities or investments
may, in particular circumstances, meet the conditions for an exemption under section 4(c)(9) of
the Act may apply to the Board for such determination by submitting to its Reserve Bank a letter
setting forth the basis for that opinion.
Rules of
Procedure
Effective October 24, 1979, Rules of Procedure
is amended by deleting § 262.3(k)(5) and by revising § 262.3(c) to read as follows:
Section
262.3—Applications
(c) Filing of applications.
Any application
should be sent to the Federal Reserve Bank of the
district in which the head office of the parent
banking organization is located, except as otherwise specified on application forms, and that Bank
will forward it to the Board when appropriate;
however, in the case of a foreign bank holding
company, as defined in section 225.4(g) of this
chapter, applications shall be sent to the Federal
Reserve Bank of the district in which the operations of the organization's subsidiary banks are
principally conducted. In the case of a foreign
banking organization that is not a bank holding
company but that has one or more branches,
agencies, or commercial lending companies in any
State of the United States or the District of Columbia, applications shall be sent to the Federal
Reserve Bank of the district in which the organization's banking assets are the largest. Applications of a member bank subsidiary, however,
should be filed with the Reserve Bank of the
district in which the member bank is located.
Rules Regarding
Delegation
of
925
Authority
Effective October 24, 1979, Rules Regarding
Delegation of Authority is amended by revising
§ 265.2(f) to read as follows:
Section 265.2—Specific
Functions Delegated to
Board Employees
and to Federal
Reserve
Banks
(f) Each Federal Reserve Bank is authorized
as to a member bank or other indicated organization for which the Reserve Bank is responsible
for receiving applications or registration statements; as to its officers under subparagraph (23)
of this paragraph; and as to its own facilities under
subparagraph (26) of this paragraph:
Adoption of Rules
Foreign Gifts and
Regarding
Decorations
Effective November 1, 1979, the Board of
Governors has adopted a new regulation, Rules
Regarding Foreign Gifts and Decorations pursuant
to the requirement of section 515(g)(1) of Public
Law 95-105, the Foreign Gifts and Decorations
Act, as amended.
Part 264b—Rules
Foreign Gifts and
Section
Section
Section
Section
Section
264b. 1
264b.2
264b.3
264b.4
264b.5
Section 264b.6
Section 264.b7
Section 264b.8
Section 264b.9
Regarding
Decorations
Purpose and Scope
Definitions
Foreign Gifts
Foreign Decorations
Disposal of Foreign Gifts
and Decorations
Official Use of Foreign Gifts
and Decorations
Reporting Requirements
Implementing Procedures
Miscellaneous
Authority. 5 U.S.C. § 7342, as amended; and
section l l ( i ) of the Federal Reserve Act, 12
U.S.C. § 248(i), 5 U.S.C. § 552.
Section 264b. 1—Purpose
and
Scope
This regulation implements the 1977 Amendments to the Foreign Gifts and Decorations Act,
Pub. L. 95-105, which restricts Board Members'
and employees' acceptance of foreign gifts and
926
Federal Reserve Bulletin • November 1979
decorations. The restrictions apply to gifts whether
they are tangible or intangible. Different rules
apply depending on whether the gift has only
"minimal v a l u e . " There are also rules regarding
acceptance of decorations from foreign governments.
Section
264b.2—Definitions
(a) The term "Board Members and employees"
means:
(1) Members of the Board of Governors of the
Federal Reserve System, officers, and other employees of the Board;
(2) Consultants while employed by the Board
and acting on behalf of the Board; and
(3) Spouses and dependents of Board Members,
officers, employees, and consultants as defined in
this section.
(b) The term "foreign government" means any
unit of a foreign governmental authority (or its
agent or representative), including any foreign,
national, state, local,, or municipal government,
and any international or multinational organization
whose membership is composed of any such units.
(c) The term "decoration" means an order,
device, medal, badge, insignia, emblem, or
award.
Section
264b. 3—Foreign
Gifts
Except as provided below, Board Members and
employees shall not request, or otherwise encourage the tender of, or accept, or retain, a tangible
or intangible gift from a foreign government.
(a) Gifts to Minimal Value. Board members
and employees may accept and retain a tangible
or intangible gift of minimal value—that is, one
having a retail value in the United States at the
time of acceptance of $100 or less—from a foreign
government intended as a sourvenir or mark of
courtesy.
(b) Educational
Scholarships
or
Medical
Treatment. Board Members and employees may
accept and retain a gift of more than minimal value
from a foreign government when such gift is in
the nature of an educational scholarship or medical
treatment.
(c) Tangible Gifts of More Than
Minimal
Value. A tangible gift of more than minimal value
tendered by a foreign government may be accepted
when it appears that to refuse the gift would likely
cause offense or embarrassment or otherwise adversely affect the foreign relations of the United
States. Such a gift accepted under these circum-
stances is deemed to have been accepted on behalf
of the United States, and, upon acceptance, it shall
become the property of the United States. Within
60 days after accepting a gift under these circumstances the member or employee must deposit the
gift with the Secretary of the Board.
(d) Travel or Expenses for Travel. Board
Members and employees may accept gifts of travel
or expenses for travel taking place entirely outside
the United States (such as transportation, food, and
lodging) of more than minimal value if such acceptance is appropriate, consistent with the interests of the United States, and is permitted by the
Board. Requests for Board approval of acceptance
of such expenses shall be submitted to the Vice
Chairman of the Board.
Section
264b. 4—Foreign
Decorations
Board Members and employees may accept,
retain, and wear a decoration tendered in recognition of active field service in time of combat
operations or awarded for other outstanding or
unusually meritorious performance by a foreign
government, subject to the approval of the Board.
Without this approval, the decoration is deemed
to have been accepted on behalf of the United
States, shall become the property of the United
States, and shall be deposited by the Board Member or employee, within 60 days of acceptance,
with the Secretary of the Board for official use
or disposal. Requests for Board approval of acceptance of such decorations shall be submitted
in advance to the Vice Chairman of the Board.
Section 264b.5—Disposal
of
Foreign Gifts and
Decorations
Within 30 days after a tangible gift or decoration
is deposited for disposal with the Secretary of the
Board, the gift or decoration shall be returned to
the donor, or shall be forwarded to the Administrator of General Services for transfer, donation,
or other disposal in accordance with applicable
law, or shall be retained for official use of the
Board.
Section 264b. 6—Official Use of
Foreign Gifts and
Decorations
A foreign gift or decoration deposited with the
Secretary of the Board may, with the approval of
the Board, be retained for official Board use. The
Secretary shall insure that, whenever possible,
"official Board u s e " of such a gift will benefit
the greatest number of Board employees and/or
Law Department
the public. Within 30 days after terminating the
"official u s e " of a foreign gift, the Board shall
report the termination of the official use to the
Administrator of the General Services, in accordance with applicable GSA regulations.
Section
264b. 7—Reporting
Requirements
(a) When a Board Member or employee deposits a tangible gift or decoration of more than
minimal value for disposal or for official use, or
within 30 days after a Board Member or employee
accepts travel or travel expenses as provided in
this section, the Board Member or employee shall
file a statement with the Secretary of the Board
containing the information prescribed in paragraphs (b) and (c) that follow.
(b) For each tangible gift or decoration deposited with the Secretary of the Board, a Board
Member or employee shall file a statement which
shall include the following information:
(1) The name and position of the employee;
(2) A full description of the gift and the circumstances justifying acceptance;
(3) The identity of the foreign government and
the name and position of the individual who presented the gift;
(4) The date of acceptance of the gift;
(5) The estimated value in the United States of
the gift at the time of acceptance;
(6) Disposition or current location of the gift;
and
(7) An indication whether the Board Member
or employee is interested in participating in the
sale of the tangible gift or decoration if it is sold
by the General Services Administration.
(c) For each gift of travel or travel expenses
accepted, a Board Member or employee shall file
a statement which shall include the following
information:
(1) The name and position of the employee;
(2) A brief description of the travel or travel
expenses, including the amount, or estimated
costs, and the circumstances justifying acceptance;
and
(3) The identity of the foreign government and
the name and position of the individual who provided the travel or travel expenses.
(d) Board Members and employees need not
report the following gifts and decorations:
(1) Gifts of minimal value;
(2) Decorations retained by the employee with
the approval of the Board;
(3) Gifts and decorations offered but refused by
the Board Member or employee.
927
(e) Not later than January 31 of each year, the
Secretary of the Board shall compile a listing of
all statements filed during the preceding year by
Board Members and employees pursuant to this
section and shall transmit such listing to the Secretary of State for the purpose of publishing a
listing of all such statements in the Federal Register.
Section
264b. 8—Implementing
Procedures
The Board shall
(a) Report to the Attorney General cases in
which there is reason to believe that a Board
Member or employee has violated this section;
(b) Establish a procedure in the Office of the
Secretary of the Board for obtaining an appraisal,
when necessary, of the value of gifts; and
(c) Take any other actions necessary to carry
out the purpose of this subsection, including appropriate disciplinary action for failure to comply
with provisions of this Part.
Section 264b.
9—Miscellaneous
The provisions of this Part do not apply to grants
and other forms of assistance to which section
108A of the Mutual Educational and Cultural
Exchange Act of 1961 applies.
INTERPRETATION
OF REGULATION
Q
The Board of Governors has modified an existing interpretation of Regulation Q concerning the
Federal funds market to include credit unions
within the category of institutions from whom
member banks may borrow Federal funds.
217.137—Member
''Federal funds9
9
bank participation
market:
in
Since the adoption of section 217.1(f) in 1966,
an exemption from Regulation Q has existed for
member bank obligations in nondeposit form to
another bank. As used in such exemption, " b a n k "
includes a member bank, a nonmember commercial bank, a savings bank (mutual or stock), a
building or savings and loan association or cooperative bank, the Export-Import Bank of the
United States, Minbanc Capital Corp., a foreign
bank, or a credit union. It also includes bank
subsidiaries that engage in business in which their
parents are authorized to engage and subsidiaries
the stock of which is by statute explicitly eligible
for purchase by national banks. These institutions
928
Federal Reserve Bulletin • November 1979
are considered to be " b a n k s " also for the purposes
of Regulation D (12 CFR 204).***
*
BANK
AND
*
*
HOLDING
BANK
ISSUED
*
*
COMPANY
MERGER
BY THE BOARD
ORDERS
OF
Orders Under Section 3
of Bank Holding Company
GOVERNORS
Act
National Detroit Corporation,
Detroit, Michigan
Order Approving
Acquisition
of Bank
National Detroit Corporation, Detroit, Michigan, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval under § 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire 80 percent
or more of the voting shares of Farmers and
Merchants National Bank in Benton Harbor
( " B a n k " ) , Benton Harbor, Michigan.
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 largest banking organization in
Michigan, controls nine banks with total deposits
of approximately $5.9 billion, representing 15.9
percent of total deposits in commercial banks in
the state. 1 Acquisition of Bank, the 55th largest
banking organization in Michigan, with deposits
of $107.8 million, would increase Applicant's
share of commercial bank deposits in Michigan
by 0.3 percent.
Bank is the largest of eleven banking organizations located in the Benton Harbor-St. Joseph
banking market (the relevant banking market) 2 and
controls 25.6 percent of the total deposits in commercial banks therein. Applicant's closest subsidiary banking office is located approximately 43
miles from an office of Bank, in a separate banking
1. Banking data are as of June 30, 1978, and reflect bank
holding company formations and acquisitions approved as of
September 30, 1979.
2. The Benton Harbor-St. Joseph banking market is approximated by the northern two-thirds of Berrien County plus
the western half of Van Buren County, Michigan.
market, and no existing competition between Bank
and any of Applicant's subsidiary banks would be
eliminated by consummation of this proposal.
Notwithstanding the absence of any significantly adverse effects of the proposal upon existing
competition, the Board is concerned, particularly
in light of Bank's market share, with the adverse
effects the proposal will have upon probable future
competition within the Benton Harbor-St. Joseph
banking market. Based upon the facts of record,
including Applicant's ability to expand de novo,
Applicant must be viewed as a likely potential
entrant into the Benton Harbor-St. Joseph market,
which contains five banks that could serve as
foothold entry points. Such factors indicate this
proposal has some adverse impact on probable
future competition.
The above considerations, however, are mitigated by the fact that at least seven out of the
nine largest Michigan bank holding companies
would remain as possible entrants into the market.
Furthermore, the relevant market, which can be
characterized as moderately concentrated, does not
appear from the facts of record to be particularly
attractive for de novo entry. 3 In addition, none
of the possible foothold entries are located within
the community of Benton Harbor, and under
Michigan law entry thereby into Benton Harbor
would be precluded. In light of the above and other
facts of record, the Board is unable to conclude
that consummation of the proposal would have
such adverse competitive effects as to clearly warrant denial of the application.
With respect to concentration of banking resources in Michigan, the Board notes that approval
of this acquisition would increase Applicant's
share of statewide commercial bank deposits to
16.2 percent. The Board continues to monitor
statewide banking structures in general and, more
specifically, the size disparity between the large
banking organizations operating statewide and the
smaller regional banking organizations. The Board
is concerned with the possibility that continued
approval of acquisition or merger proposals involving large statewide bank holding companies
and relatively sizeable banking organizations may
perpetuate this size disparity and increase concentration ratios, but does not regard Bank as having
sufficient absolute size so that consummation
would have a significant adverse effect upon
statewide concentration. Nevertheless, under sec-
3. Data indicate that in 1977 the market's population and
deposits per banking office and per capita deposits are all below
comparable statewide averages.
Law Department
tion 3(c) of the Act, the Board is not required
to tolerate increases in banking concentration inconsistent with the underlying purpose of the
Clayton Act as incorporated in the Bank Holding
Company Act (see Brown Shoe Co. v. United
States, 370 U.S. 294, 317-18). In acting upon the
subject proposal the Board was mindful of these
considerations and concerns.
After considering the overall impact of consummation of this proposal, the Board has concluded that approval of this application would
generally be in the public interest. The Board
recognizes that consummation of the proposal
would have some adverse competitive effects in
the Benton Harbor-St. Joseph banking market, as
well as an adverse effect upon the banking structure in Michigan. However, the Board does not
believe that the adverse effects on competition
within the Benton Harbor-St. Joseph market and
concentration within Michigan are so adverse as
to require denial of the proposal.
The financial and managerial resources of Applicant, its subsidiaries, and Bank are regarded as
satisfactory and the future prospects of Applicant
and its subsidiaries appear favorable. The future
prospects of Bank would be enhanced by this
proposal in light of Applicant's commitment to
inject additional capital into Bank upon consummation.
Following consummation of the proposed transaction, Applicant proposes to expand the services
off ered by Bank by introducing a statement savings
account, offering continuous compounding of interest on savings accounts, Keogh accounts, and
a reduced rate short-term mortgage note. Applicant
also intends to introduce or expand trust and automated financial services for Bank's corporate customers. Thus, the Board concludes that considerations relating to the convenience and needs of
the community to be served lend sufficient weight
toward approval to outweigh any adverse competitive effects associated with this proposal. Based
on the foregoing and other considerations reflected
in the record, it is the Board's judgment that the
proposed acquisition is 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 Chicago pursuant to delegated
authority.
929
By order of the Board of Governors, effective
October 25, 1979.
Voting for this action: Chairman Volcker and Governors Schultz, Coldwell, and Partee. Voting against this
action: Governors Wallich, Teeters, and Rice.
(Signed) THEODORE E. ALLISON,
Secretary of the Board.
[SEAL]
Dissenting
Governors
Statement of
Wallich, Teeters,
and Rice
We would deny the application of National
Detroit Corporation to acquire Farmers and Merchants National Bank in Benton Harbor, the largest
bank in the Benton Harbor-St. Joseph banking
market, for the reasons set forth in Dissenting
Statements to past actions by the Board approving
applications by major bank holding companies
seeking to acquire a banking organization with a
significant presence in one or more markets where
the applicant was not present. 1 We believe that
consummation of this proposal would have an
adverse effect upon potential competition which
is not outweighed by convenience and needs considerations.
In this case the largest banking organization in
Michigan is seeking to acquire the largest banking
organization located in the relevant banking market. This proposal is very similar to a number of
other proposals from major bank holding companies recently considered by the Board. Moreover,
other similar proposals in other states involving
large statewide banking organizations may be
presented to the Board for its consideration in the
near future. We believe that the effects of this
developing trend are not in the public interest. As
the language in the majority opinion indicates, the
Board is concerned by this trend but a majority
of the Board has decided that denial is not warranted in this instance. We hope that the Board's
action in this case as well as its action of September 10 approving, also by a 4-3 vote, the
application of First City Bancorporation of Texas
to acquire First Security National Corporation,
puts the industry on notice that proposals of this
1. Texas Commerce Bancshares,
Corporation),
63
FEDERAL
First City Bancorporation
of
Austin),
63
FEDERAL
Inc. (Bancapital Financial
RESERVE
BULLETIN
500
(1977);
of Texas, Inc. (City National Bank
RESERVE
BULLETIN
674
(1977);
DETROITBANK
Corporation,
6 3 FEDERAL RESERVE BULLETIN 9 2 6 ( 1 9 7 7 ) ; Northwest
Bancorporation,
6 3 FEDERAL RESERVE BULLETIN 1 0 9 6 ( 1 9 7 7 ) ; First City Bancorporation
of
Texas, Inc. (Lufkin National Bank), 64 FEDERAL RESERVE
BULLETIN 969 (1978); First City Bancorporation of Texas,
Inc. (First Security National Corporation), 64 FEDERAL RESERVE BULLETIN (Order of S e p t e m b e r 10,
1979).
930
Federal Reserve Bulletin • November 1979
type should be very carefully considered before
they are presented to the Board.
With respect to the specific proposal before us,
we believe that continuation of this trend would
increase the size disparity between the largest
banking organizations in Michigan and all other
banking organizations in the state. In addition, we
feel the majority's decision may continue to encourage bank holding companies to eschew de
novo or foothold entry into concentrated secondary
markets in Michigan and other holding companies
within other states in the belief that the Board will
approve less procompetitive means of entry. Accordingly, consummation of this proposal would,
in our view, have an adverse effect upon potential
competition without offering any offsetting procompetitive benefits or outweighing convenience
and needs considerations.
In light of the above, we would deny this
application.
October 25, 1979
Security Bancshares Co.,
Glencoe, Minnesota
Order Approving
Formation of a Bank Holding
Company
Security Bancshares Co., Glencoe, Minnesota,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) of formation of a bank
holding company by acquiring 83.5 percent of the
voting shares of Security State Bank of Glencoe
("Glencoe B a n k " ) , Glencoe, Minnesota, and 94.7
percent of the voting shares of The First State Bank
of Brownton ("Brownton B a n k " ) , Brownton,
Minnesota.
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 recently
organized for the purpose of becoming a bank
holding company by acquiring Glencoe Bank (deposits of $24.0 million) and Brownton Bank (deposits of $8.8 million). 1 Glencoe Bank is the 82nd
largest banking organization in Minnesota and
1. Banking data are as of September 30, 1978.
holds 0.13 percent of total commercial bank deposits in the state. Brownton Bank is the 340th
largest banking organization in Minnesota and
holds less than 0.1 percent of total commercial
bank deposits in the state. Upon consummation
of the proposal, Applicant would become the 43rd
largest banking organization in the state holding
0.17 percent of the state's total commercial bank
deposits.
Glencoe Bank and Brownton Bank are 11 miles
apart. Both banks are within the Hutchinson
banking market. 2 Glencoe Bank is the second
largest of 12 banking organizations in that market,
holding 12.7 percent of market deposits, and
Brownton Bank is the market's eighth largest
banking organization, holding 4.6 percent of market deposits. Upon consummation of the proposal,
Applicant would become the second largest banking organization in the market with 17.3 percent
of market deposits. The two banks have been
affiliated since 1974 when Applicant's principal,
whose family had been associated with Glencoe
Bank since 1935, acquired a 50 percent interest
in Brownton Bank. This principal increased his
interest in Brownton Bank to 96 percent in 1978
after the death of the co-owner. The original
affiliation of these banks in 1974 and the consolidation of common control in 1978 eliminated
existing competition, and consummation of this
proposal would tend to solidify that relationship.
However, the largest banking organization in the
market holds 24.3 percent of market deposits, and
in view of the absolute and relative sizes of Glencoe Bank and Brownton Bank, the number of
alternative banking organizations that would remain in the market after consummation of the
proposal, and the fact that the market is relatively
unconcentrated, the Board finds that considerations
relating to the competitive effects of this proposal
are only slightly adverse.
The financial and managerial resources and future prospects of Applicant and of Glencoe Bank
and Brownton Bank are regarded as generally
satisfactory. While Applicant will incur some debt
in connection with the proposed transaction, it
appears that Applicant will have sufficient flexibility to retire the debt without adversely affecting
the capital position of either bank. Thus, the Board
concludes that banking factors are consistent with
approval of the application. Moreover, while acquisition of Glencoe Bank and Brownton Bank by
Applicant would result in no immediate increase
2. The Hutchinson banking market is approximated by
McLeod County, the eastern quarter of Renville County, and
the northern quarter of Sibley County, Minnesota.
Law Department
in either bank's services, there has been an improvement of services in several respects since
Applicant's principal assumed control of Brownton Bank. In view of this record and the anticipated
continuation of these benefits, the Board finds that
convenience and needs considerations lend sufficient weight toward approval to outweigh the
slightly adverse competitive considerations associated with this application. Accordingly, the
Board concludes that the proposed transaction
would be consistent with the public interest and
that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order or later than three months after the effective
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Minneapolis pursuant to delegated authority.
By order of the Board of Governors, effective
October 11, 1979.
Voting for this action: Chairman Volcker and Governors Schultz, Coldwell, Partee, and Teeters. Voting
against this action: Governor Wallich. Absent and not
voting: Governor Rice.
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
[SEAL]
Dissenting
Statement
of Governor
Wallich
I would deny the application of Security Bancshares Co. to become a bank holding company
by acquiring Security State Bank of Glencoe and
The First State Bank of Brownton. In assessing
the competitive effects of a proposal involving
common ownership of more than one bank in the
same market, the Board in its analysis examines
the competitive effect resulting from the affiliation
at the inception of that affiliation. 1 In this case
the Board found that the competitive effect of the
purchase of Brownton Bank's shares by Applicant's principal had only a slightly adverse effect
upon competition. I find that the effect of that
acquisition was to eliminate significant competition that existed at that time between Glencoe
Bank and Brownton Bank in the relevant market
and to increase the concentration of banking resources within the banking market by eliminating
an independent competitor. These adverse effects
I.
SERVE
See Mahaska
BULLETIN
579
Investment
(1977).
Company,
63
FEDERAL
931
continue today. Glencoe Bank now holds 12.7
percent of market deposits, and Brownton Bank
holds 4.6 percent. Upon consummation of this
proposed transaction, Applicant would hold 17.3
percent of market deposits. I note that the Justice
Department will ordinarily challenge mergers between firms if the acquiring firm accounts for 10
percent of an unconcentrated market and the acquired firm accounts for 4 percent or more. The
market shares of Glencoe Bank and Brownton
Bank exceed these guidelines.
Section 3(c) of the Bank Holding Company Act
requires the Board to consider whether any proposed acquisition by a bank holding company (1)
would further the monopolization or attempted
monopolization of a banking market, or (2) may
substantially lessen competition or tend to create
a monopoly in any banking market. In my view,
the subject proposal presents a clear case where
the holding company form is being used to further
an anticompetitive arrangement. While denial of
this proposal would not immediately result in a
complete termination of the present situation since
Applicant's principal would continue to control
both banks, it would preserve the distinct possibility that Brownton Bank could again become an
independent organization in the future. In my
view, consummation of the proposal would serve
to perpetuate the adverse competitive effects of the
original affiliation. I do not believe that these
effects are outweighed by the convenience and
needs considerations associated with the proposal
since no new or improved service to the banks'
communities will result from this transaction.
Further, managerial considerations associated
with this application reflect policies pursued by
Applicant's principal in the past that have not, in
my view, given sufficient regard to the need to
maintain adequate bank liquidity. Rather, the policies appear to have emphasized short-run profitmaking to the detriment of liquidity. The formation of this holding company will enable Applicant's principal to realize a significant tax advantage, and this tax saving seems to be the only
benefit associated with this proposal. Under the
circumstances, where a proposal involves, in my
view, no clear benefit to the public, I question
whether the Board should further reward an investor before he has established a more satisfactory
managerial record.
On the basis of this combination of circumstances reflected in the record I believe this application should be denied.
RE-
October 11, 1979
932
Federal Reserve Bulletin • November 1979
Southeast Banking Corporation,
Miami, Florida
Order Approving
Acquisition
of Banks
Southeast Banking Corporation, Miami,
Florida, a bank holding company within the
meaning of the Bank Holding Company Act, has
filed applications for the Board's approval under
section 3 of the Act (12 U.S.C. § 1842) to acquire
First Bancshares of Florida, Inc., Boca Raton,
Florida ("Bancshares"), by merging Bancshares
with a wholly owned subsidiary of Applicant
created for this purpose. Immediately prior to the
proposed transaction, Bancshares will divest four
of its banks and all of its nonbanking subsidiaries.
Bancshares' six remaining bank subsidiaries will
be indirectly acquired by Applicant as a result of
this proposal.
Notice of the applications, 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 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)).
Applicant, the largest banking organization in
Florida, 1 controls 28 banks with aggregate deposits
of approximately $3.1 billion, representing 10.0
percent of total commercial bank deposits in the
state. Bancshares' six bank subsidiaries to be indirectly acquired by Applicant hold aggregate deposits of approximately $200 million, representing
0.7 percent of total commercial bank deposits in
the state. Upon consummation of the proposal,
Applicant's share of commercial bank deposits in
Florida would increase to 10.7 percent.
The competitive effects associated with the subject proposal, in addition to the general effect upon
the structure of banking in Florida, must be considered within four separate banking markets—Indian River County, Eastern Palm Beach County,
Martin County, and St. Lucie County. Applicant
is the fifth largest of six banking organizations
located in the Indian River County banking market
(approximated by Indian River County, Florida)
controlling one subsidiary bank with deposits representing 9.7 percent of total market deposits.
Bancshares also operates one subsidiary bank in
this market, with deposits of $2.1 million, repre-
1. All banking data are as of June 30, 1978, and reflect
bank holding c o m p a n y formations and acquisitions approved
as of June 30, 1979.
senting 1.2 percent of market deposits. The three
largest banking organizations in the Indian River
County market account for approximately 78 percent of market deposits, and each is substantially
larger than Applicant's bank in the market. In
addition, Applicant's subsidiary bank is located 14
miles from all the other banks in the market. In
view of the above and other facts of record, it
appears that the proposal would have only a
slightly adverse effect upon existing competition
in the Indian River County banking market.
Bancshares has one banking subsidiary in the
Martin County banking market (approximated by
Martin County, Florida), where it is the third
largest bank in the market with $35.8 million in
deposits, representing 12.1 percent of market deposits. In the St. Lucie County banking market,
(approximated by St. Lucie County, Florida),
Bancshares' subsidiary bank is the second largest
with $32.3 million in deposits, representing a 20
percent market share. Applicant is not represented
in either market. In light of the structure of the
relevant markets, the fact Applicant is seeking
initial entry into these markets, and the deposit
size of the banks to be acquired, it appears that
consummation would result in no significant adverse competitive effects in these two markets.
Applicant also is not currently represented in
the Eastern Palm Beach County banking market
(approximated by Eastern Palm Beach County,
Florida). Bancshares controls five banks in this
market, and is the largest banking organization
therein, controlling 17 percent of market deposits.
Three of these banks are to be acquired indirectly
by Applicant. The three banks Applicant will
acquire hold approximately $130 million in deposits and thereby control 6.5 percent of total
market deposits. Bancshares' two other banks in
the market (one of which is Bancshares' lead
banking subsidiary with $188 million in deposits),
will be spun off to a new bank holding company
unrelated to Applicant prior to consummation of
this proposal. Thus, consummation of the proposed transaction will result in an increase in the
total number of competitors in the market. At the
same time, market concentration will decrease and
the share of the market held by the three largest
organizations will decline from 42 to 35 percent.
In view of the above, the Board regards the effects
of the proposal within the Eastern Palm Beach
banking market as procompetitive.
The financial and managerial resources and future prospects of Bancshares and the subsidiaries
of Bancshares to be acquired are also regarded as
generally satisfactory, particularly in view of cer-
Law Department
tain commitments made by Applicant regarding
this proposal. Convenience and needs considerations are viewed as lending weight toward approval of the proposal. Such benefits to the communities to be served will result in part from the
greater expertise and specialization of services that
Bancshares can offer its customers through affiliation with Applicant. On balance, these convenience and needs considerations, when coupled with
the expected procompetitive effects in the Eastern
Palm Beach market, are sufficient to outweigh any
adverse effects on existing competition or upon
the concentration of statewide banking resources
associated with this proposal. On the basis of the
foregoing and other facts in the record, it is the
Board's judgment that approval of the proposal
would be in the public interest.
On the basis of the facts of record, the application is approved for the reasons summarized
above. This transaction shall not be consummated
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 periods are 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 5, 1979.
Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Coldwell, Partee, and Teeters.
Absent and not voting: Governor Rice.
[SEAL]
(Signed) G R I F F I T H L . G A R W O O D ,
Deputy Secretary of the Board.
Southwest Bancshares, Inc.,
Houston, Texas
Order Approving
Acquisition
of Bank
Southwest Bancshares, Inc., Houston, 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 all of the
voting shares (less directors' qualifying shares) of
Dallas Bank and Trust Company ( " B a n k " ) ,
Dallas, Texas.
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 (12 U.S.C. § 1842(b)). The time
for filing comments and views has expired, and
the application and all comments received have
933
been considered in light of the factors set forth
in section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the sixth largest banking organization in Texas, controls 17 banks with aggregate
deposits of approximately $2.35 billion, representing 3.46 percent of total deposits in commercial banks in the state. 1 Acquisition of Bank, the
161st largest banking organization in the state with
deposits of $48.2 million, would increase Applicant's share of commercial bank deposits in Texas
by only 0.07 percent and would not alter Applicant's ranking in the state.
Bank is the 31st largest of 108 banking organizations in the Dallas banking market, 2 controlling
0.40 percent of the total commercial bank deposits
in the market. Applicant is the tenth largest banking organization in the Dallas market, controlling
four banking subsidiaries in that market with aggregate deposits of $150.6 million, representing
1.1 percent of the market's commercial bank deposits. Although consummation of the proposed
transaction will cause Applicant to become the
eighth largest organization in the market, Applicant's share of the market will rise to only 1.5
percent, and Applicant will remain one of six
banking organizations in the market holding between one and five percent of market deposits.
Although consummation of the proposal would
eliminate some existing competition between Bank
and Applicant's subsidiary banks, in view of the
relative size of these organizations, their market
shares, and the number of remaining banking
alternatives in the market, it appears that consummation of this proposal would not have significant
adverse effects upon competition in the relevant
market. Accordingly, in light of the above and
other facts of record, it is concluded that consummation of the proposed acquisition would have
only a slightly adverse effect on competition in
the Dallas banking market.
The financial and managerial resources and future prospects of Applicant, its subsidiaries, and
Bank are regarded as generally satisfactory, particularly in light of Applicant's commitment to
increase Bank's equity capital upon consummation
of the proposal. Thus, considerations relating to
banking factors are consistent with approval of the
1. All banking data are as of December 3 1, 1978, and reflect
bank holding company formations and acquisitions approved
as of July 31, 1979.
2. The relevant banking market is approximated by the
Dallas Ranally Metropolitan Area as defined by Rand McNally
& C o m p a n y ' s Commercial Atlas & Marketing Guide. It includes Dallas County and portions of Tarrant, Collin, Denton,
Ellis, K a u f m a n , and Rockwall Counties.
934
Federal Reserve Bulletin • November 1979
application. Affiliation with Applicant will enable
Bank to draw upon Applicant's expertise and to
introduce new and improved services to its customers, including a flexible loan repayment program and automated teller machines. In addition,
Bank will be able to otter credit life and credit
accident and health insurance to its customers
through Applicant's insurance subsidiary at rates
lower than those currently being charged by Bank.
Thus, considerations relating to the convenience
and needs of the community to be served lend
sufficient weight toward approval of the application to outweigh any slightly adverse competitive
effects that might result from consummation of this
proposal. Accordingly, it has been determined that
the proposed acquisition would be in the public
interest and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made 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 Secretary of the Board, acting
pursuant to delegated authority for the Board of
Governors, effective October 12, 1979.
( S i g n e d ) GRIFFITH L .
[SEAL]
Deputy Secretary
GARWOOD,
of the
Board.
Order Under Sections 3 and 4
of Bank Holding Company Act
NB Corporation,
Charlottesville, Virginia,
Southern Bankshares, Inc.,
Richmond, Virginia
Order Approving Merger of
Bank Holding
Companies
and Acquisition of NB Service Corporation
Charter Insurance Managers,
Inc.
and
NB Corporation, Charlottesville,
Virginia
( " N B " ) and Southern Bankshares, Inc., Richmond, Virginia ( " S B I " ) (together "Applicants"),
both 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)) of the consoli
dation of NB and SBI under the name and charter
of Jefferson Bankshares, Inc., Charlottesville,
Virginia ( " J e f f e r s o n " ) . Applicants also have applied for the Board's approval, pursuant to section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
sections 225.4(a)(8), (9) and (10) of the Board's
Regulation Y (12 C.F.R. §§ 225.4(a)(8), (9) and
(10)) to continue to engage after consolidation in
certain nonbanking activities currently conducted
by their nonbank subsidiaries. In particular, NB
currently engages in financial bookkeeping and
related data processing services through its subsidiary, NB Service Corporation, Charlottesville,
Virginia ( " N B Service") and SBI engages through
Charter Insurance Managers, Inc. in the sale as
agent and in the underwriting of life and accident
and health insurance directly related to extensions
of credit by SBI's subsidiary banks. Applicants
propose to continue to engage in these activities
after consolidation and to expand the insurance
activities to include the sale and underwriting of
life and accident and health insurance in connection with extensions of credit made by NB's subsidiary banks that would become Jefferson's subsidiaries upon consummation of this merger.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with sections
3 and 4 of the Act. The time for filing comments
and views has expired, and the Board has considered the applications and all comments received
in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)), and the considerations specified in section 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
SBI, the ninth largest banking organization in
Virginia, controls three banks with total deposits
of approximately $281.9 million, representing 1.6
percent of total deposits in commercial banks
in the state. 1 NB, the tenth largest banking organization in the state, controls three banks with total
deposits of approximately $281.5 million, representing 1.6 percent of total deposits in commercial
banks in Virginia. SBI primarily competes in an
urban banking market in Virginia while NB
operates for the most part in rural banking markets
in the state. The banking services offered by the
bank subsidiaries of these two organizations reflect
this difference in market orientation. Furthermore,
neither organization has established a significant
presence outside the market in which its lead bank
competes. Upon consummation of the proposed
1. All b a n k i n g data are as of D e c e m b e r 31, 1978.
Law Department
transaction, Jefferson would become the ninth
largest banking organization in the state controlling approximately 3.2 percent of total deposits
in Virginia. On the basis of the facts of record,
including the overall structure of banking in Virginia, the Board does not view the proposed consolidation as having any serious effect on the
concentration of banking resources in Virginia.
SBI's lead bank, Southern Bank, Richmond,
Virginia, the fifth largest of 18 banking organizations in the Richmond banking market, 2 controls
$260.5 million in deposits, representing 8.9 percent of the market's deposits in commercial banks.
One of NB's subsidiary banks, NB Bank of Richmond, Richmond, Virginia ( " N B
Bank"),
operates in the Richmond banking market. NB
Bank with deposits of $17.9 million, representing
0.6 percent of commercial bank deposits in the
market is one of the smaller banks in the market.
In view of the share of market deposits held by
NB's subsidiary bank, the large number of banking
alternatives and other competitive characteristics
of the market, it appears that the effect of the
merger on existing competition in the Richmond
banking market would not be significant.
With the exception of the Richmond banking
market, the banking subsidiaries of SBI and NB
do not directly compete in any banking market.
However, there are other banking markets in Virginia in which bank subsidiaries of SBI or NB,
but not both, presently operate offices. Based upon
an examination of these markets and the divergent
market preferences of Applicants, it does not appear likely that SBI and NB would become competitors in the future. Accordingly, the Board
concludes that consummation of the proposal to
consolidate would not have any adverse effects on
potential competition in any market.
The financial and managerial resources and future prospects of Jeff erson and its subsidiary banks
are considered satisfactory and the Board concludes that banking factors are consistent with
approval. Following consummation of the proposed transaction Applicants intend to introduce
new and expanded services for their customers.
Trust services will be made available to customers
of NB Bank and customers of certain banks will
receive higher interest rates on savings deposits.
In addition, as a result of consummation of the
proposed merger, Jefferson's subsidiary banks will
be able to offer increased lending limits and other
2. The R i c h m o n d banking market is approximated by the
R i c h m o n d S M S A with the exception of New Kent C o u n t y ,
Virginia.
935
expanded services to their customers. The Board
concludes that considerations relating to the convenience and needs of the communities to be
served lend weight toward approval and are sufficient to outweight any slightly adverse competitive
effects that may be associated with this proposal.
Accordingly, it is the Board's judgment that the
proposed consolidation would be in the public
interest and that the application to consolidate
should be approved.
Applicants also propose pursuant to section
2 2 5 . 4 ( a ) ( 8 ) of R e g u l a t i o n Y (12 C . F . R .
§ 225.4(a)(8)), to continue to engage in financial
bookkeeping and related data processing services
through NB Service and to continue to engage in
the underwriting and sale of life and accident and
health insurance directly related to extensions of
credit by SBI's subsidiary banks through Charter
Insurance Managers, Inc., and to expand these
insurance activities to extensions of credit made
by N B ' s subsidiary banks that would become
Jefferson's subsidiaries upon consummation of this
proposal. These insurance activities have been
determined to be permissible for bank holding
companies (12 C.F.R. §§ 225.4(a)(9) and (10)).
No nonbank subsidiary of SBI or NB 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 and to expand
certain nonbank activities. 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 interest, u n s o u n d b a n k i n g practices or other adverse
effects on the public interest. Based on the foregoing and other considerations reflected in the
record, it has been determined that the balance
of the public interest factors that must be considered under section 4(c)(8) favors approval of Applicants' proposal, and the application to engage
in financial bookkeeping, related data processing
services, and in the underwriting and sale of
credit-related insurance should be approved.
Accordingly, the applications to merge NB and
SBI into Jefferson and to engage in certain nonbanking activities are hereby approved for the
reasons summarized above. The consolidation
shall not be made before the thirtieth calendar day
following the effective date of this Order; and
neither the consolidation nor the commencement
of nonbanking activities shall be made later than
three months after the effective date of this Order,
unless such periods are extended for good cause
936
Federal Reserve Bulletin • November 1979
by the Board of Governors, or by the Federal
Reserve Bank of Richmond pursuant to delegated
authority. The determination as to Jefferson's
nonbanking 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, bank 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 purpose 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 22, 1979.
Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Coldwell, Partee, Teeters, and
Rice. Governors Schultz and Wallich abstained from
voting on the section 4(c)(8) application to engage in
insurance activities.
[SEAL]
(Signed) G R I F F I T H L . G A R W O O D ,
Deputy Secretary of the Board.
Orders Under Section 4 of
Bank Holding Company Act
First Banc Group of Ohio, Inc.,
Columbus, Ohio
Order Approving Activity of
Furnishing Management Consulting
Nonaffiliated
Banks
Advice
to
First Banc Group of Ohio, Inc., Columbus,
Ohio, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval, under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12
C.F.R. § 225.4(b)(2)), to engage de novo, through
its subsidiary, First Banc Group Financial Services
Corporation ( " C o m p a n y " ) , Columbus, Ohio, in
the activities of furnishing management consulting
advice to nonaffiliated banks. Company specifically proposes to provide advice concerning bank
operations, systems, and procedures; computer
operations and mechanization; implementation of
electronic funds transfer systems; site planning and
evaluation; bank mergers and the establishment of
new branches; cost analysis; capital adequacy and
planning; product development, including specialized lending provisions; and marketing operations,
including research, market development, and ad
vertising programs. Subject to several limitations,
which Company will observe, this activity has
been determined by the Board to be closely related
to banking (12 C.F.R. § 225.4(a)(12)).
Notice of the application, affording opportunity
for interested persons to submit comments on the
public interest factors, has been duly published (43
Federal Register 47611 (1979)). The time for
filing comments has expired, and the Board has
considered the application and all comments received in the light of the public interest factors
set forth in section 4(c)(8) of the Act.
Applicant, the fourth largest banking organization in Ohio, controls 18 banks with aggregate
deposits of approximately $1.9 billion, 1 representing 4.97 percent of the total deposits in commercial banks in Ohio. Applicant also engages,
through Company, in leasing and mortgage banking activities.
Company proposes to provide its management
consulting to nonaffiliated banks located throughout the United States. Applicant has substantial
experience in providing these services for its subsidiary banks. Applicant's entry into the field de
novo would provide an additional competitor offering this specialized financial and consulting
advice and would have no adverse effects on
existing or potential competition in any relevant
area. Applicant's provision of such services would
benefit those institutions that lack sufficient resources to develop in-house expertise in a broad
range of specialized areas. Moreover, availability
of this advice on an explicit fee basis, rather than
as part of a correspondent banking service, will
enable client banks to more accurately analyze the
cost of such services and such banks may be able
to more efficiently allocate their funds.
There is no evidence in the record indicating
that consummation of the proposed transaction
would result in any undue concentration of resources, unfair competition, conflicts of interest,
unsound banking practices, or other adverse effects on the public interest. Furthermore, Applicant is aware of the prohibitions concerning tie-ins
contained in section 106 of the Act (12 U.S.C.
§ 1972) and the Board's Regulation Y (12 C.F.R.
§ 225.4(c)) and will comply with those prohibitions.
Based upon the foregoing and other considerations reflected in the record, the Board has
1. All b a n k i n g data are as of S e p t e m b e r 30, 1978, and
reflect bank holding c o m p a n y f o r m a t i o n s and acquisitions approved as of April 30, 1979.
Law Department
determined, in accordance with the provisions of
section 4(c)(8), that consummation of this proposal
can reasonably be expected to produce benefits to
the public that outweight possible adverse effects.
Accordingly, the application is 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.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Cleveland.
By order of the Board of Governors, effective
October 1, 1979.
Voting for this action: Chairman Volcker and Governors Schultz, Coldwell, Partee, Teeters, and Rice. Absent and not voting: Governor Wallich.
[SEAL]
(Signed) G R I F F I T H
Deputy Secretary
L.
GARWOOD,
of the
Board.
First Chicago Corporation,
Chicago, Illinois
Order Approving Formation of
First Chicago Cheque
Corporation
First Chicago Corporation, Chicago, Illinois, 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 engage, through its de
novo subsidiary, First Chicago Cheque Corporation ("Cheque Corporation"), Chicago, Illinois,
in the issuance and sale of travelers checks.
The Board has not amended its Regulation Y
(12 C.F.R. § 225) to include the issuance of
travelers checks as a permissible activity, but in
connection with three earlier applications the
Board determined by order that the activity of
issuing travelers checks is closely related to banking and would be in the public interest. (Citicorp
(travelers checks), 65 F E D E R A L R E S E R V E B U L L E TIN 666 (1979); BankAmerica
Corporation (BA
937
Cheque Corporation), 59 F E D E R A L R E S E R V E B U L L E T I N 544 (1973); and Republic
of Texas Corporation, 62 F E D E R A L R E S E R V E B U L L E T I N 630
(1976)) 1 . As noted in these earlier Board decisions, banks have in fact engaged in the issuance
of travelers checks and generally have engaged in
activities that are operationally and functionally
similar to the proposed activity. Accordingly, the
Board has determined that issuing travelers checks
as Applicant proposes is closely related to banking. 2
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (44 Federal Register 47,612). The time
for filing comments and views has expired, and
the Board has considered the application and all
comments received in the light of the public interest factors set forth in § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant, the second largest banking organization in Illinois, has one subsidiary bank with
deposits of $9.7 billion, representing 13.6 percent
of total deposits in commercial banks in the state. 3
In addition, Applicant engages in a variety of
nonbank activities, including leasing, real estate
lending, data processing, and commercial and
consumer financing.
Applicant, through Cheque Corporation, proposes to issue and sell Visa Travelers Cheques.
Cheque Corporation would issue and distribute
these checks worldwide to both financial and nonfinancial agents, who would sell the checks to the
public on behalf of Cheque Corporation. The five
major travelers check issuers currently control an
estimated 86 percent of total worldwide travelers
check sales, with the largest issuer, American
Express Company, accounting for more than 50
percent of the market.
The Board has previously determined that it
would be in the public interest for bank holding
companies, having the capability, to engage in the
activity of issuing travelers checks, in view of the
limited number of competitors currently servicing
this industry. 4 Applicant's entry into this industry
should serve to enhance competition in providing
1. On February 26, 1979, the Board amended Regulation
Y (12 C . F . R . § 2 2 5 . 4 ( a ) ) to include on its list of permissible
activities for bank holding companies the retail sale of travelers
checks. (65 FEDERAL RESERVE BULLETIN 265 ( 1 9 7 9 ) ) .
2. See National Courier Association
v. Board of Governors
of the Federal Reserve System,
516 F . 2 d 1229 ( D . C . Cir.
1975).
3. All deposit data are as of June 30, 1978.
4. See the above cited Board decisions on the issuance of
travelers checks.
A 938
Federal Reserve Bulletin • November 1979
this service. Accordingly, it is the Board's view
that approval of this application would produce
benefits to the public and would be in the public
interest. Furthermore, there is no evidence in the
record to indicate that Applicant's engaging in this
activity would lead to any undue concentration of
resources, unfair competition, conflicts of interests, unsound banking practices, or other adverse
effects.
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.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Chicago.
By order of the Board of Governors, effective
October 29, 1979.
Currency, and the Federal Deposit Insurance Corporation. The Board has considered the application
and all comments and reports received including
those of the Comptroller of the Currency and the
FDIC, in light of the factors set forth in the Act.
This proposal merely represents a corporate
reorganization of two subsidiaries of Jefferson
Bankshares, Inc., Charlottesville, Virginia ("Jefferson"). On the basis of the record in this case,
the application is approved for the reasons summarized in the Board's order of this date relating
to the application of NB Corporation, Charlottesville, Virginia, and Southern Bankshares, Inc.,
Richmond, Virginia, to merge under the name and
charter of Jefferson.
The transaction shall not be consummated before the thirtieth calendar date 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 Richmond acting pursuant to delegated
authority.
By order of the Board of Governors, effective
October 22, 1979.
Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Coldwell, Partee, Teeters, and
Rice.
[SEAL]
(Signed) G R I F F I T H L. G A R W O O D ,
Deputy Secretary of the Board.
Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Coldwell, Partee, Teeters, and
Rice.
[SEAL]
(Signed) G R I F F I T H
Deputy Secretary
L.
GARWOOD,
of the
Board.
Certifications Pursuant to the
Bank Holding Company Tax Act of
1976
Chippewa Valley Agency Ltd., Inc.,
Winter, Wisconsin
Order Approved
Under Bank Merger
Act
Southern Bank,
Richmond, Virginia
Order Approving
Application
[Docket No.
for Merger of Banks
Southern Bank, Richmond, Virginia, has applied for the Board's approval under the Bank
Merger Act (12 U.S.C. § 1828(c)) to merge with
NB Bank of Richmond, Richmond, Virginia. The
resulting bank will operate under the charter and
name of Southern Bank.
As required by the Bank Merger Act, notice
of the proposed merger has been published and
reports on competitive factors have been requested
from the Attorney General, the Comptroller of the
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1976
76-178]
Chippewa Valley Agency Ltd., Inc., ("Chipp e w a " ) , Winter, Wisconsin, has requested a prior
certification pursuant to section 6158(a) of the
Internal Revenue Code ( " C o d e " ) as amended by
section 3(a) of the Bank Holding Company Tax
Act of 1976 ( " T a x A c t " ) , that the proposed sale
of its subsidiary, Winter Insurance Agency
( " W i n t e r " ) , Winter, Wisconsin, a general insurance agency, is necessary or appropriate to effectuate section 4 of the Bank Holding Company Act
(12 U.S.C. § 1843 et. seq.) (BHC Act). Chippewa
Law Department
proposes to sell Winter to Exeland Enterprises
( " E x e l a n d " ) , Winter, Wisconsin, for cash.
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification. 1
1. Chippewa (formerly The Hegeholz Agency,
Inc.) is a corporation organized under the laws
of Wisconsin on December 13, 1968. On January
10, 1969, Chippewa acquired ownership and control of 400 shares, representing 66% percent of
the outstanding voting shares, of Chippewa Valley
Bank ( " B a n k " ) , Winter, Wisconsin.
2. Chippewa became a bank holding company
on December 31, 1970, as a result of the 1970
amendments to the Bank Holding Company Act
by virtue of its ownership and control at that time
of more than 25 percent of the outstanding voting
shares of Bank, and it registered as such with the
Board on June 29, 1971. Chippewa would have
been a bank holding company on July 7, 1970,
if the Bank Holding Company Act Amendments
had been in effect on such date by virtue of its
ownership and control on that date of more than
25 percent of the outstanding voting shares of
Bank. Chippewa now owns and controls 91 percent of the outstanding voting shares of Bank.
3. Winter was formed in 1919, and is engaged
in general insurance agency business. On January
10, 1969, Chippewa acquired all the assets of
Winter from Bank. Chippewa did not file an application with the Board, and did not otherwise
obtain the Board's approval pursuant to section
4(c)(8) of the BHC Act to retain Winter or engage
in the activities carried on by Winter. 2
4. No director, officer or employee with policy
making functions of Chippewa or any of its subsidiaries (including honorary and advisory directors) holds any such position with Exeland. Chippewa does not control in any manner the election
of a majority of the directors or exercise a controlling influence over the management on policies
of Exeland or its subsidiaries.
On the basis of the foregoing information, it
is hereby certified that:
1. This information derives f r o m C h i p p e w a ' s correspondence with the Board concerning its request for this
certification, C h i p p e w a ' s Registration Statement filed with the
Board pursuant to the B H C Act, and other records of the Board.
2. S o m e or all of W i n t e r ' s activities may be a m o n g those
activities that the Board previously has determined to be closely
related to banking under § 4(c)(8) of the B H C Act. H o w e v e r ,
in the absence of approval by the Board of an application by
C h i p p e w a to retain Winter, C h i p p e w a may not retain Winter
beyond D e c e m b e r 31, 1980. (CF. Wachovia
Corp., Docket
N o . T C R 7 6 - 1 3 2 , 6 3 FEDERAL RESERVE B U L L E T I N 6 0 6
9, 1977)).
(May
939
A. Chippewa is a qualified bank holding corporation within the meaning of section 6158(f)(1)
and 1103(b) of the Code;
B. The assets of Winter that Chippewa proposes to sell to Exeland are 4 'prohibited property"
within the meaning of section 6158(f)(2) of the
Code;
C. The sale of Winter is necessary or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the representations made to the Board by Chippewa and
upon the facts set forth above. In the event the
Board should hereafter determine that facts material to this certification are otherwise than as represented by Chippewa, or that Chippewa has
failed to disclose to the Board other material facts,
it may revoke this certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(3)), effective October 2, 1979.
[SEAL]
(Signed) G R I F F I T H L . G A R W O O D ,
Deputy Secretary of the Board.
Kemper Corporation,
Long Grove, Illinois
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1976
[Docket No. TCR
76-1921
Kemper Corporation, Long Grove, Illinois
( " K e m p e r " ) has requested a prior certification
pursuant to section 6 1 58(a) of the Internal Revenue
Code ( " C o d e " ) , as amended by section 3(a) of
the Bank Holding Company Tax Act of 1976
("Tax A c t " ) , that its proposed sale of 47.205
shares of common stock ("Bank Shares") of Bank
of Chicago, Chicago, Illinois, ( " B a n k " ) , to William R. Cottle, Chicago, Illinois, and Gary R.
Edidin, Northbrook, Illinois, for themselves as
principals and as agents for undisclosed principals
(together referred to as 4 'Buyers") for cash, is
necessary or appropriate to effectuate the policies
of the Bank Holding Company Act (12 U.S.C.
§ 1842 et. seq.) ( " B H C A c t " ) .
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification: 1
1. This information derives f r o m K e m p e r ' s correspondence
with the Board concerning its request for this certification,
A 940
Federal Reserve Bulletin • November 1979
1. Kemper is a corporation organized and existing under the laws of the State of Delaware.
2. On May 31, 1968, through an exchange of
its shares, Kemper acquired ownership and control
of 47,228 shares, representing 94.46 percent of
the outstanding voting shares, of Bank.
3. Kemper became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
ownership and control at that time of more than
25 percent of the outstanding voting shares of
Bank. Kemper would have been a bank holding
company on July 7, 1970, if the BHC Act
Amendments of 1970 had been in effect on such
date, by virtue of ownership and control on that
date of more than 25 percent of the outstanding
voting shares of Bank. Kemper currently owns
47,205 shares, representing 94.41 percent of the
outstanding voting shares, of Bank.
4. Kemper holds property acquired by it on or
before July 7, 1970, the disposition of which
would be necessary or appropriate under section
4 of the BHC Act if Kemper were to remain a
bank holding company beyond December 31,
1980, and which property is "prohibited property" within the meaning of section 1103(c) of
the Code.
5. On May 27, 1971, Kemper filed with the
Board an irrevocable declaration pursuant to section 225.4(d) of the Board's Regulation Y that it
would cease to be a bank holding company prior
to January 1, 1981, by divesting itself of all of
its interest in Bank. In accordance with that portion
of the regulation and Kemper's commitment,
Kemper has been permitted to expand its nonbanking activities without seeking the Board's
prior approval.
6. Kemper has committed that after the sale of
Bank Shares, no person who is a director or officer
of Kemper or its parent or subsidiaries will serve
in a similar capacity with Bank. In addition, all
persons affiliated with Kemper currently serving
as directors or officers of Bank will resign their
positions effective as of the closing date of the
sale. Kemper has further committed that none of
Buyers is, or will be, indebted to Kemper, and
that none of Buyers is affiliated in any way with
Kemper.
On the basis of the foregoing information, it
is hereby certified that:
A. Kemper is a qualified bank holding corpora-
K e m p e r ' s Registration S t a t e m e n t filed with the Board pursuant
to the B H C Act, and other records of the Board.
tion within the meaning of section 1 103(b) of the
Code, and satisfies the requirements of that section;
B. Bank Shares covered by the instant request
are the property by reason of which Kemper controls (within the meaning of section 2(a) of the
BHC Act) a bank; and
C. the sale of such shares is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations and commitments made to the Board
by Kemper and upon the facts set forth above.
In the event the Board should determine that facts
material to this certification are otherwise than as
represented by Kemper, or that Kemper has failed
to disclose to the Board other material facts or
to fulfill any commitments made to the Board in
connection herewith, it may revoke the certification.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority, effective October 23, 1979.
[SEAL]
(Signed) G R I F F I T H L . G A R W O O D ,
Deputy Secretary of the Board.
Determination
Bank Holding
Under Section 2 of
Company Act
First Charter Financial Corporation,
Syracuse, Indiana
Order Granting
Determination
Under the Bank Holding Company
Act
First Charter Financial Corporation ( " F i r s t " ) ,
Syracuse, Indiana, a bank holding company within
the meaning of the Bank Holding Company Act,
has requested a determination under section
2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) that
First is not in fact capable of controlling William
K. Nellans, Inc. ( " N e l l a n s " ) or its principals,
William K. Nellans and Christine G. Nellans
("Nellans principals"), notwithstanding the fact
that Nellans and the Nellans principals are indebted to First. This request has been made in
connection with the sale to Nellans by First of
substantially all the assets of First Charter Insurance Agency ( " A g e n c y " ) , Syracuse, Indiana.
Under the provisions of section 2(g)(3) of the
Act, shares transferred after January 1, 1966, by
any bank holding company to a transferee that is
indebted to the transferor, or has one or more
officers, directors, trustees, or beneficiaries in
Law Department
common with or subject to control by the transferor are deemed to be indirectly owned or controlled by the transferor unless the Board, after
opportunity for hearing, determines that the transferor is not in fact capable of controlling the
transferee. In addition, the transfer of substantially
all the assets of a company is deemed by the Board
to involve a transfer of " s h a r e s " of that company
for purposes of section 2(g)(3) of the Act (12
C.F.R. § 225.139).
First has not requested a hearing, but it has
submitted evidence to support its contention that
it is not in fact capable of controlling Nellans or
the Nellans principals. On the basis of the evidence
of record, including the following facts and commitments, it is hereby determined that First is not
in fact capable of controlling Nellans or the Nellans principals. The sale of Agency to Nellans was
negotiated at arm's length, and the Nellans
principals are not officers, directors, or shareholders of First or any of its subsidiaries. First
has no security interest in the Agency assets sold,
and the terms governing the debt relationship between the parties are limited to those reasonably
required for the protection of First's interests as
creditor. First's board of directors has adopted a
resolution that First does not, and will not attempt
to, exercise control over Agency, Nellans, or any
of their officers, directors, or shareholders. Fur-
ORDERS
APPROVED
By the Board
of
UNDER
BANK
HOLDING
941
thermore, although Nellans and the Nellans
principals are indebted to First for a substantial
portion of the purchase price, it appears that the
Nellans principals' personal financial resources are
substantial enough to support the conclusion that
First is not in fact capable of controlling them or
Agency by reason of that indebtedness. Finally,
First has stated that should it reacquire Agency
assets as a result of Nellans' default, it will advise
the Federal Reserve System and promptly dispose
of them. Accordingly, it is ordered that the request
of First for a determination pursuant to section
2(g)(3) is granted. This determination is based on
representations made to the Board by First and
Nellans. In the event that the Board should
hereafter determine that facts material to this determination are otherwise than as represented, or
that First or Nellans has failed to disclose to the
Board other material facts, this determination may
be revoked, and any change in the facts and
circumstances relied upon in making this determination could result in the Board's reconsideration
of this determination.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective
October 3, 1979.
(Signed) G R I F F I T H L . G A R W O O D ,
[SEAIJ
Deputy Secretary of the Board.
COMPANY
ACT
Governors
During October 1979 the Board of Governors approved the applications listed below. Copies are
available upon request to Publications Services, Room MP-510, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
Section 3
Applicant
C.S.B. Financial, Inc.,
Chetek, Wisconsin
Dublin Bancshares, Inc.,
Dublin, Texas
First Security Corporation,
Salt Lake City, Utah
First United Bancorporation, Inc.
Fort Worth, Texas
Bank(s)
Chetek State Bank,
Chetek, Wisconsin
The Dublin National Bank,
Dublin, Texas
First Security Bank of St. George, N.A.
St. George, Utah
University Bank,
Fort Worth, Texas
Board action
(effective
date)
October 12, 1979
October 17, 1979
October 30, 1979
October
1, 1979
A 942
Federal Reserve Bulletin • November 1979
Section 3
Board action
(effective
date)
Applicant
Bank(s)
First Bank Corporation,
Midland, Michigan
Loof Investment Co.,
Grand Junction, Iowa
Onarga Bancorp, Inc.,
Onarga, Illinois
Osceola Bancorporation, Inc.
Osceola, Wisconsin
Shepherd State Bank,
Shepherd, Michigan
Peoples Trust and Savings Bank,
Grand Junction, Iowa
B & B Management Corp.,
Onarga, Illinois
Bank of Osceola,
Osceola, Wisconsin
By Federal
Reserve
October
2, 1979
October 23, 1979
October 15, 1979
October
5, 1979
Banks
Recent applications have been approved by the Federal Reserve Batiks as listed below. Copies of
the orders are available upon request to the Reserve Banks.
Section 3
Applicant
Bank(s)
Trust Company of Georgia,
Atlanta, Georgia
The Citizens Bank,
Douglasville, Georgia
Reserve
Bank
Effective
date
Atlanta
October 23, 1979
Reserve
Bank
Effective
date
Section 4
Nonbanking
company
(or activity)
Applicant
Wells Cargo & Company
ORDERS
APPROVED
UNDER
Applicant
The Exchange Bank of
Temple Terrace,
Temple Terrace, Florida
Underwriting credit life insurance
directly related to extensions of
credit by Applicant and its credit
extending subsidiaries
BANK
MERGER
San Francisco
Sept. 19, 1979
ACT
Bank(s)
The Exchange National Bank
of Tampa,
Tampa, Florida
Reserve
Bank
Effective
date
Atlanta
October 26, 1979
Law Department
PENDING
CASES
INVOLVING
THE BOARD
OF
Does not include suits against the Federal Reserve
Banks in which the Board of Governors is not
named a party.
County National Bancorporation and TGB Co. v.
Board of Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
State of Indiana v. The United States of America,
et al., filed September 1979, U.S.D.C. for the
District of Columbia.
Edwin F. Gordon v. Board of Governors, et al.,
filed August 1979, U . S . D . C . for the Northern
District of Georgia.
Edwin F. Gordon v. Board of Governors, et al.,
filed August 1979, U.S.C.A. for the Fifth Circuit.
American Bankers Association v. Board of Governors, et al., filed August 1979, U.S.D.C. for
the District of Columbia.
Donald W. Riegel, Jr. v. Federal Open Market
Committee, filed July 1979, U.S.D.C. for the
District of Columbia.
Connecticut Bankers Association, etal., v. Board
of Governors, filed May 1979, U.S.C.A. for
the District of Columbia.
Ella Jackson, et al., v. Board of Governors, filed
May 1979, U.S.C.A. for the Fifth Circuit.
Memphis Trust Company v. Board of Governors,
filed May 1979, U . S . C . A . for the Sixth Circuit.
Independent Insurance Agents of America, et al.,
v. Board of Governors,
filed May 1979,
U.S.C.A. for the District of Columbia.
Independent Insurance Agents of America, et al.,
v. Board of Governors,
filed April 1979,
U . S . C . A . for the District of Columbia.
Independent Insurance Agents of America, et al.,
v. Board of Governors, filed March 1979,
U . S . C . A . for the District of Columbia.
943
GOVERNORS
Credit and Commerce American Investment,
et
al., v. Board of Governors, filed March 1979
U.S.C.A. for the District of Columbia.
Consumers
Union of the United States,
v.
G. William Miller, etal., filed December 1978,
U.S.D.C. for the District of Columbia.
Manchester-Tower
Grove Community
Organization/ACORN
v. Board of Governors, filed
September 1978, U.S.C.A. for the District of
Columbia.
Beckley v. Board of Governors, filed July 1978,
U . S . C . A . for the Northern District of Illinois.
Independent Bankers Association of Texas v. First
National Bank in Dallas, et al., 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.
United States League of Savings Associations v.
Board of Governors, filed May 1978, U . S . D . C .
for the District of Columbia.
Security Bancorp and Security National Bank v.
Board
of Governors,
filed March
1978,
U . S . C . A . for the Ninth Circuit.
Vickars-Henry Corp. v. Board of Governors, filed
December 1977, U . S . C . A . for the Ninth Circuit.
Investment Company Institute v. Board of Governors, filed September 1977, U . S . D . C . for the
District of Columbia.
Roberts Farms, Inc. v. Comptroller of the Currency, et al., filed November 1975, U . S . D . C .
for the Southern District of California.
David R. Merrill, et al., v. Federal Open Market
Committee of the Federal Reserve System, filed
May 1975, U . S . D . C . for the District of Columbia.
A1
Financial and Business Statistics
CONTENTS
Domestic
A3
A4
A5
A6
Financial
Statistics
WEEKLY
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
A l l Federal Reserve open market
transactions
FEDERAL
RESERVE
BANKS
A12 Condition and Federal Reserve note
statements
A13 Maturity distribution of loan and
security holdings
REPORTING
COMMERCIAL
BANKS
Assets and liabilities
A20
All reporting banks
A21
Banks with assets of $1 billion or more
A22
Banks in New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A24 Major nondeposit funds of
commercial banks
A25 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A25 Commercial paper and bankers dollar
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Terms of lending at commercial banks
A27 Interest rates in money and capital
markets
A28 Stock market—Selected statistics
A29 Savings institutions—Selected assets
and liabilities
MONETARY
AND
CREDIT
AGGREGATES
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
COMMERCIAL
BANK
ASSETS
AND
LIABILITIES
A16 Last-Wednesday-of-month series
A17 Call-date series
A18 Detailed balance sheet, September 30, 1978
FEDERAL
FINANCE
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
A35 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin • November 1979
SECURITIES
MARKETS
CORPORATE
International
AND
FINANCE
A36 New security issues—State and local
governments and corporations
A37 Open-end investment companies—Net
sales and asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A39 Domestic finance companies—Assets
and liabilities; business credit
REAL
ESTATE
A40 Mortgage markets
A41 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A42 Total outstanding and net change
A43 Extensions and liquidations
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 BANKS
IN THE
UNITED
STATES
A58
A59
A61
A62
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers
claims on foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 > Claims on foreign countries—
Combined domestic offices and
foreign branches
SECURITIES
HOLDINGS
AND
TRANSACTIONS
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 Federal
Reserve Banks
A65 Foreign transactions in securities
Domestic
REPORTED
FLOW
OF
FUNDS
Nonfinancial
Statistics
A46 Nonfinancial business activity—
Selected measures
A46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production—Indexes and
gross value
A50 Housing and construction
A51 Consumer and wholesale prices
A52 Gross national product and income
A53 Personal income and saving
BY NONBANKING
ENTERPRISES
IN
THE
UNITED
BUSINESS
STATES
A66 Liabilities to unaffiliated foreigners
A67 Claims on unaffiliated foreigners
INTEREST
AND
EXCHANGE
RATES
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
Special
Tables
A69 Survey of Time and Savings Deposits
at Commercial Banks, July 25, 1979
A73 Guide to Tabular Presentation and
Statistical Releases
Domestic Financial Statistics
A3
1.10 MONETARY AGGREGATES AND INTEREST RATES
1978
1979
1979
Item
Q4
Q2
Q1
Q3
May
June
July
Aug.
Sept.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)13
1
2
3
4
Member bank reserves
Total
Required
Nonborrowed 1
Monetary base
5
6
7
8
Concepts of money 2
M-l
M-1 +
M-2
M-3
9
Time and savings deposits
Commercial banks
Total
'2.4
'r 2 . 2
4.7
'8.5
r
—3.0
r
—2.9
r
4.1
2.7
7.6
9.3
11
Other time
12 Thrift institutions 3
13 Total loans and investments at commercial banks4
r
r
— 1.5
'-3.9
'9.1
'6.2
'12.7
'13.1
'20.7
'11.2
7.2
7.0
10.0
12.1
11.5
12.5
4.2
13.7
.7
-2.1
5.4
4.9
14.8
12.3
14.2
11.9
'10.4
10.2
12.9
11.4
'6.8
6.5
11.0
'10.0
11.2
7.2
12.2
10.9
9.0
5.5
19.2
8.4
-1.4
-7.2
19.9
4.1
.8
7.8
17.6
8.8
12.2
9.4
18.1
9.3
14.6
6.6
19.4
'8.5
15.1
.0
21.2
8.9
15.8
8.8
'12.6
'13.4
11.6
21.7
—5.0
-4.8
-8.8
4.0
6.3
6.0
8.2
9.8
-2.1
-5.0
1.8
4.7
7.6
3.7
8.6
7.9
9.7
8.2
12.0
10.5
12.3
.2
18.2
11.6
8.4
-9.6
15.6
8.8
1.2
-3.1
18.5
6.8
12.7
r
11.9
— 3.4
'5.6
13.3
1978
Q4
r
—4.7
' — 3.7
' — 30.3
'3.2
1979
Ql
Q2
1979
Q3
June
July
Aug.
Sept.
Oct.
Interest rates (levels, percent per annum)
Short-term rates
14 Federal funds 5
15 Federal Reserve discount 6
16 Treasury bills (3-month market yield) 7
17 Commercial paper (90- to 119-day)7.8
18
19
20
Long-term rates
Bonds
U.S. government 9
State and local government 10
Aaa utility (new issue) 11
21 Conventional mortgages 12
9.58
9.09
8.57
9.83
10.07
9.50
9.38
10.04
10.18
9.50
9.38
9.85
10.94
10.21
9.67
10.64
10.29
9.50
9.06
9.76
10.47
9.69
9.24
9.87
10.94
10.24
9.52
10.43
11.43
10.70
10.26
11.63
13.77
11.77
11.70
13.23
8.78
6.28
9.23
9.03
6.37
9.58
9.08
6.22
9.66
9.03
6.28
9.64
8.91
6.13
9.50
8.92
6.13
9.58
8.97
6.20
9.48
9.21
6.52
9.93
9.99
7.08
10.97
10.12
10.33
10.35
11.13
10.90
10.95
11.10
11.35
1. Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier); currency outside the U.S.
Treasury, Federal Reserve Banks and the vaults of commercial banks;
and vault cash of nonmember banks.
2. M-l equals currency plus private demand deposits adjusted.
M-1 + equals M-l plus savings deposits at commercial banks, NOW
accounts at banks and thrift institutions, credit union share draft accounts, and demand deposits at mutual savings banks.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CDs).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
3. Savings and loan associations, mutual savings banks, and credit
unions.
4. Quarterly changes calculated from figures shown in table 1.23.
5. Seven-day averages of daily effective rates (average of the rates on
a given date weighted by the volume of transactions at those rates).
n.a.
6. Rate for the Federal Reserve Bank of New York.
7. Quoted on a bank-discount basis.
8. Beginning Nov. 1977, unweighted average of offering rates quoted
by at least five dealers. Previously, most representative rate quoted by
these dealers.
9. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
10. Bond Buyer series for 20 issues of mixed quality.
11. 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.
12. Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept. of Housing and Urban Development.
13. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter. Growth rates for
member bank reserves are adjusted for discontinuities in series that result
from changes in Regulations D and M.
A4
DomesticNonfinancialStatistics • November 1979
1.11 FACTORS AFFECTING MEMBER BANK RESERVES
Millions of dollars
Monthly averages of daily
figures
Weekly averages of daily figures for weeks ending—
1979
1979
Factors
Aug.
Sept.*
Oct.*
Sept. 19
Sept. 26
Oct. 3*
Oct. 10*
Oct. 17*
Oct. 24*
Oct. 31*
1 Reserve Bank credit outstanding
113,441
133,598
134,049
133,736
134,113
135,461
113,011
135,391
135,305
135,930
2 U.S. government securities1
111,639
111,044
112,967
112,421
113,775
113,282
112,599
112,388
114,746
113,478
114,448
113,610
112,862
112,797
113,221
113,221
113,931
113,373
115,440
114,171
595
8,519
8,243
546
8,524
8,229
493
8,414
8,222
211
8,373
8,224
1,268
8,626
8,224
838
9,068
8,224
65
8,264
8,223
8,221
8,221
558
8,531
8,221
1,269
8,501
8,221
276
295
192
149
402
844
41
310
280
388
1,097
4,884
4,915
316
1,345
5,906
4,540
173
2,022
6,116
4,423
102
1,762
6,435
4,464
382
1,159
5,090
4,110
846
1,119
5,479
4,502
45
938
6,621
4,280
1,530
7,850
4,569
125
2,960
5,309
4,449
336
3,056
4,129
4,467
11,266
11,239
11,205
11,228
11,228
11,228
11,223
11,196
11,196
11,195
1,800
12,533
1,800
12,627
1,800
12,741
1,800
12,631
1,800
12,645
1,800
12,670
1,800
12,709
1,800
12,731
1,800
12,753
1,800
12,786
118,248
265
119,092
288
119,809
346
119,236
289
118,642
307
118,880
322
119,875
334
120,257
339
119,812
356
119,528
367
3,021
294
634
4,073
319
716
3,090
310
645
3,469
321
876
4,553
262
622
4,925
352
800
2,883
281
610
2,987
321
636
3,505
292
580
3,073
320
648
SUPPLYING RESERVE FUNDS
4
Held under repurchase agree-
5 Federal agency securities
6
Bought outright
7
Held under repurchase agree-
9 Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than member bank
reserves, with Federal Reserve
Banks
17
Treasury
18
Foreign
19
Other
20 Other Federal Reserve liabilities and
capital
21 Member bank reserves with Federal
4,572
4,697
4,870
4,612
4,848
4,860
4,669
4,840
4,908
5,188
30,006
30,079
31,599
30,592
30,553
31,020
30,093
31,737
31,599
32,587
End-of-month figures
Wednesday figures
1979
1979
Aug.
Sept.*
O ct.*
Sept. 19
Sept. 26
Oct. 3P
Oct. 10*
Oct. 17 P Oct. 24P
22 Reserve bank credit outstanding
132,299
135,389
135,005
129,619
136,436
130,409
134,907
139,185
135,139
135,005
23 U.S. government securities1
24
Bought outright
25
Held under repurchase agree-
113,027
112,635
115,458
114,596
114,580
114,455
109,812
109,812
115,005
113,852
109,073
109,073
113,240
113,240
113,744
113,744
113,084
113,084
114,580
114,455
392
8,395
8,242
862
9,323
8,224
125
8,278
8,221
8,224
8,224
1,153
8,532
8,224
8,224
8,224
8,221
8,221
8,221
8,221
8,221
8,221
125
8,278
8,221
Oct. 31 P
SUPPLYING RESERVE FUNDS
26 Federal agency securities
27
Bought outright
28
Held under repurchase agree29
30
31
32
Acceptances
Loans
Float
Other Federal Reserve assets
33 Gold stock
34 Special drawing rights certificate
account
35 Treasury currency outstanding
153
1,099
57
308
57
475
1,572
4,209
4,621
1,053
1,157
4,083
5,349
317
2,672
4,685
4,473
963
6,014
4,606
684
1,820
6,203
4,192
1,089
7,754
4,269
515
8,422
4,509
4,257
8,089
4,874
4,106
5,268
4,460
317
2,672
4,685
4,473
11,259
11,228
11,194
11,228
11,228
11,228
11,212
11,196
11,196
11,194
1,800
12,724
1,800
12,645
1,800
12,793
1,800
12,634
1,800
12,645
1,800
12,704
1,800
12,716
1,800
12,753
1,800
12,753
1,800
12,793
118,914
268
118,550
324
120,004
369
119,164
306
118,954
306
119,563
324
120,615
337
120,388
349
119,873
359
120,004
369
3,542
325
663
6,489
348
780
2,209
352
286
2,786
259
686
5,483
275
571
3,256
298
613
2,625
280
686
3,423
290
466
3,218
301
582
2,209
352
286
ABSORBING RESERVE FUNDS
36 Currency in circulation
37 Treasury cash holdings
Deposits, other than member bank
reserves, with Federal Reserve
Banks
38
Treasury
39
Foreign
40
Other
41 Other Federal Reserve liabilities and
capital
42 Member bank reserves with Federal
Reserve Banks
4,876
5,086
5,011
4,597
4,855
4,254
4,562
4,907
4,917
5,011
29,493
29,485
32,561
27,482
31,665
27,833
31,531
35,111
31,638
32,561
1. Includes securities loaned—fully guaranteed by U.S. government
securities pledged with Federal Reserve Banks—and excludes (if any)
securities sold and scheduled to be bought back under matched salepurchase transactions.
NOTE. For amounts of currency and coin held as reserves, see table
1.12.
Member Banks
1.12 RESERVES AND BORROWINGS
A5
Member Banks
Millions of dollars
Monthly averages of daily figures
Reserve classification
All member banks
Reserves
At Federal Reserve Banks
Currency and coin
Total held i
Required
Excess 1
Borrowings at Reserve Banks 2
6
Total
7
Seasonal
1
2
3
4
5
Large banks in New York City
8 Reserves held
9
Required
10 Excess
Large banks in Chicago
12 Reserves held
Other large banks
16 Reserves held
19 Borrowings2
All other banks
20 Reserves held
21
Required
22
Excess
Edge corporations
24 Reserves held
25
Required
26
Excess
1979
1978
Dec.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.*
Oct.2'
31,158
10,330
41,572
41,447
125
30,485
10,074
40,703
40,494
209
30,399
9,776
40,316
40,059
257
30,675
9,737
40,546
40,548
-2
30,208
10,044
40,382
40,095
287
29,822
10,154
40,105
39,884
221
30,191
10,552
40,900
40,710
190
30,006
10,523
40,687
40,494
193
30,079
10,727
40,958
40,860
98
31,599
10,681
42,423
41,998
425
874
134
973
114
999
121
897
134
1,777
173
1,396
188
1,179
168
1,097
177
1,345
178
2,022
161
7,120
7,243
-123
99
6,995
6,976
19
0
6,892
6,845
47
45
6,804
6,837
-33
61
6,658
6,544
114
150
6,346
6,415
-69
78
6,605
6,586
19
97
6,408
6,427
-19
79
6,359
6,378
-19
87
6,655
6,832
-177
183
1,907
1,900
7
10
1,824
1,823
1
10
1,822
1,809
13
26
1,801
1,824
-23
18
1,730
1,712
18
60
1,726
1,697
29
64
1,709
1,713
-4
45
1,694
1,706
-12
6
1,697
1,760
-63
80
1,790
1,857
-67
136
16,446
16,342
104
276
16,055
16,018
37
275
15,844
15,802
42
215
15,948
16,014
-66
271
15,926
15,893
33
721
15,989
15,877
112
586
16,374
16,339
35
517
16,370
16,321
49
484
15,900
16,487
-587
603
16,519
16,744
-225
856
16,099
15,962
137
489
15,829
15,677
152
688
15,758
15,603
155
713
15,993
15,873
120
547
16,068
15,946
122
846
16,044
15,895
149
668
16,212
16,072
140
520
16,215
16,040
175
528
16,302
16,235
67
575
16,495
16,413
82
847
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
90
72
18
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Oct. 10f
Oct. 17^
Oct. 24»
Oct. 3If
n.a.
n.a.
n.a.
Weekly averages of daily figures for weeks ending
1979
All member banks
Reserves
At Federal Reserve Banks
Currency and coin
Total held 1
Required
Excess 1
Borrowings at Reserve Banks 2
32 Total
27
28
29
30
31
Large banks in New York City
Large banks in Chicago
Other large banks
Aug. 29
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Oct. 3f
30,467
10,484
41,108
40,738
370
30,141
10,596
40,894
40,489
405
28,902
11,134
40,193
40,095
98
30,592
10,169
40,918
40,721
197
30,553
10,836
41,545
41,519
26
31,020
10,959
42,124
41,767
357
30,093
11,078
41,313
40,719
594
31,737
10,692
42,571
42,570
1
31,599
9,942
41,684
41,533
151
32,587
10,891
43,621
43,264
357
1,117
186
1,340
172
1,230
153
1,762
163
1,159
180
1,119
177
938
139
1,530
151
2,960
164
3,056
187
6,472
6,419
53
50
6,603
6,470
133
214
6,236
6,292
-56
139
6,168
6,155
13
0
6,388
6,395
-7
29
6,616
6,774
-158
99
6,628
6,496
132
0
7,035
7,264
-229
348
6,410
6,539
-129
308
6,753
7,055
-302
96
1,693
1,687
6
29
1,734
1,733
1
0
1,678
1,679
—1
0
1,754
1,764
-10
343
1,809
1,803
6
0
1,602
1,855
-253
1
1,522
1,773
-251
64
1,926
1,967
-41
2
1,795
1,830
-35
226
1,860
1,857
3
309
16,537
16,438
99
427
16,280
16,231
49
505
16,160
16,188
-28
512
16,731
16,624
107
859
16,669
16,743
-74
579
16,583
16,682
-99
440
16,117
16,349
-232
375
16,429
17,022
-593
582
16,559
16,583
-24
1,265
16,447
17,047
-600
1,391
16,406
16,194
212
611
16,277
16,055
222
621
16,119
15,936
183
579
16,265
16,178
87
560
16,679
16,578
101
551
16,785
16,456
329
579
16,396
16,101
295
499
16,291
16,317
-26
598
16,574
16,581
-7
1,161
16,508
16,633
-125
1,260
All other banks
Edge corporations
52
Excess
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1. 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
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
396
318
78
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
DomesticNonfinancialStatistics • November 1979
1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks
Millions of dollars, except as noted
1979, week ending Wednesday
Type
Sept. 5
Sept. 12
Sept. 19
Oct. 3
Sept. 26
Oct. 10
Oct. 17
Oct. 24
Oct. 31
Total, 46 banks
Basic reserve position
226
-57
62
4
56
361
67
58
194
LESS:
2 Borrowings at Federal Reserve
3 Net interbank federal funds
EQUALS: Net surplus, or deficit (—)
4 Amount
5 Percent of average required
296
300
692
269
252
221
489
834
869
20,563
25,011
21,822
19,838
19,007
23,129
23,567
21,712
20,332
-20,634
-25,368
-22,453
-20,102
-19,204
-22,988
-23,989
-22,488
-21,008
121.0
150.8
131.8
115.4
108.4
133.5
128.7
129.1
113.8
30,397
9,833
7,573
33,098
8,087
6,813
30,764
8,941
6,280
28,475
8,637
6,338
28,904
9,896
6,767
32,356
9,227
7,198
31,379
7,812
6,190
28,320
6,608
5,478
27,700
7,367
5,737
22,823
2,260
26,286
1,274
24,484
2,661
22,136
2,300
22,136
3,129
25,159
2,030
25,189
1,621
22,841
1,130
21,963
1,630
3,519
1,970
1,549
4,780
2,069
2,712
3,581
2,418
1,163
2,865
1,917
948
2,973
2,103
870
3,551
1,520
2,030
2,992
1,590
1,402
2,575
1,571
1,004
1,800
1,285
514
6
33
202
Interbank federal funds transactions
Gross transactions
7
9
10
Sales
Net transactions
Purchases of net buying banks
Sales of net selling banks
Related transactions with U.S.
government securities dealers
12 Borrowings from dealers 4
8 banks in New York City
Basic reserve position
189
-6
16
6
15
228
LESS:
15 Borrowings at Federal Reserve
16 Net interbank federal funds
EQUALS: Net surplus, or deficit (—)
17 Amount
18 Percent of average required
Interbank federal funds transactions
Gross transactions
20
22
23
Sales
Net transactions
Purchases of net buying banks
Sales of net selling banks
114
125
0
29
56
0
342
168
58
5,831
7,094
5,791
5,602
5,439
7,175
5,880
4,883
5,656
-5,757
-7,225
-5,774
-5,625
-5,480
-6,947
-6,216
-5,019
-5,512
98.4
126.8
104.2
97.1
89.8
119.0
94.7
82.5
86.4
7,512
1,681
1,681
8,316
1,222
1,222
7,745
1,955
1,208
6,700
1,098
1,082
6,930
1,491
976
8,331
1,155
1,155
7,256
1,375
1,375
6,402
1,519
1,519
7,300
1,645
1,459
5,831
0
7,094
0
6,538
747
5,617
16
5,955
516
7,175
0
5,881
0
4,884
0
5,841
186
2,258
855
1,403
3,401
821
2,580
2,408
1,339
1,068
1,842
811
1,031
1,854
748
1,105
2,340
714
1,625
2,139
780
1,359
1,838
745
1,093
1,107
595
512
61
25
-8
Related transactions with U.S.
government securities dealers
38 banks outside New York City
Basic reserve position
37
-51
45
-2
41
134
LESS:
28 Borrowings at Federal Reserve
29 Net interbank federal funds
EQUALS: Net surplus, or deficit (—)
31 Percent of average required
Interbank federal funds transactions
Gross transactions
35
36
Net transactions
Purchases of net buying banks
Sales of net selling banks
Related transactions with U.S.
government securities dealers
38 Borrowings from dealers 4
For notes see end of table.
182
175
692
240
196
221
147
666
811
14,732
17,197
16,032
14,236
13,569
15,954
17,686
16,829
14,677
-14,877
-18,143
-16,678
-14,478
-13,724
-16,041
-17,772
-17,469
15,496
132.8
162.6
145.1
124.6
118.2
140.9
147.1
151.5
128.4
22,885
8,152
5,892
24,782
6,865
5,591
23,018
6,978
5,072
21,775
7,540
5,256
21,973
8,405
5,792
24,026
8,072
6,042
24,123
6,437
4,815
21,917
5,089
3,959
20,399
5,723
4,278
16,993
2,260
19,191
1,274
17,946
1,914
16,519
2,284
16,182
2,613
17,983
2,030
19,308
1,621
17,958
1,130
16,122
1,444
1,261
1,115
146
1,380
1,248
132
1,173
1,078
95
1,023
1,106
-83
1,120
1,355
-235
1,211
806
405
853
809
43
737
827
-90
693
691
2
Federal Funds
A7
1.13 Continued
1979, week ending Wednesday
Type
Sept. 5
Sept. 12
Sept. 19
Oct. 10
Oct. 3
Sept. 26
Oct. 17
Oct. 31
Oct. 24
5 banks in City of Chicago
Basic reserve position
40 Excess reserves 1
3
-1
-14
0
-1
29
3
19
4
LESS:
41 Borrowings at Federal Reserve
Banks
42 Net interbank federal funds
transactions
EQUALS: Net surplus, or deficit (—)
43 Amount
44 Percent of average required
reserves
45
46
47
48
49
Interbank federal funds transactions
Gross transactions
Purchases
Sales
Two-way transactions 2
Net transactions
Purchases of net buying banks...
Sales of net selling banks
Related transactions with U.S.
government securities dealers
50 Loans to dealers 3
51 Borrowings from dealers 4
52 Net loans
0
0
343
0
0
64
0
213
300
8,228
8,120
6,922
7,104
7,302
7,276
8,135
8,072
7,266
-8,225
-8,122
-7,278
-7,105
-7,302
-7,310
-8,132
-8,266
-7,563
509.0
520.2
442.5
421.7
421.3
442.5
441.2
484.0
433.9
9,530
1,302
1,302
9,407
1,287
1,287
8,403
1,481
1,481
8,406
1,302
1,302
8,614
1,313
1,313
8,810
1,534
1,531
9,496
1,361
1,361
8,963
891
891
8,380
1,114
1,114
8,228
0
8,120
0
6,922
0
7,104
0
7,302
0
7,280
4
8,135
0
8,072
0
7,266
0
247
15
232
329
52
277
198
12
187
190
170
20
144
52
92
244
4
240
170
0
170
113
68
45
59
160
-101
104
58
6
-12
33 other banks
Basic reserve position
53 Excess reserves 1
34
59
-50
-1
41
LESS:
54 Borrowings at Federal Reserve
Banks
55 Net interbank federal funds
transactions
EQUALS: Net surplus, or deficit (—)
56 Amount
57 Percent of average required
reserves
Interbank federal funds transactions
Gross transactions
58 Purchases
59
Sales
60 Two-way transactions 2
Net transactions
61
Purchases of net buying banks...
62
Sales of net selling banks
Related transactions with U.S.
government securities dealers
63 Loans to dealers 3
64 Borrowings from dealers 4
65 Net loans
182
175
349
240
196
157
147
453
511
6,504
9,797
9,110
7,132
6,267
8,678
9,552
8,757
7,410
-6,652
-10,022
-9,400
-7,373
-6,422
-8,731
-9,641
-9,204
-7,933
69.4
104.4
95.5
74.2
65.0
89.7
94.2
93.7
76.8
13,354
6,850
4,590
15,376
5,579
4,305
14,615
5,506
3,591
13,370
6,238
3,955
13,359
7,092
4,479
15,215
6,537
4,512
14,627
5,076
3,454
12,955
4,198
3,069
12,019
4,609
3,164
8,765
2,260
11,071
1,274
11,024
1,914
9,415
2,284
8,880
2,613
10,704
2,026
11,173
1,621
9,886
1,130
8,855
1,444
1,014
1,100
-85
1,051
1,196
-145
975
1,067
-92
834
936
-103
976
1,303
-328
967
802
165
683
809
-127
624
759
-135
634
531
103
1. Based on reserve balances, including adjustments to include waivers
of penalities for reserve deficiencies in accordance with changes in policy
of the Board of Governors effective Nov. 19, 1975.
2. Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's average purchases
and sales are offsetting.
3. Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases from dealers subject to resale),
or other lending arrangements.
4. 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. government 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 1979
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Loans to member banks
Federal Reserve
Bank
Loans to all others
under sec. 13. last par. 4
Under sec. 10(b)2
Under sees. 13 and 13a1
Regular rate
Rate on
10/31/79
Effective Previous
date
rate
Rate on
10/31/79
Special rate 3
Effective Previous
date
rate
Rate on
10/31/79
Effective Previous
date
rate
Rate on
10/31/79
Effective
date
Previous
rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
12
12
12
12
12
12
10'10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
11
11
11
11
11
11
12%
12%
12%
12%
12%
12%
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
11%
11%
11%
11%
11%
11%
13
13
13
13
13
13
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
12
12
12
12
12
12
15
15
15
15
15
15
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
14
14
14
14
14
14
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco....
12
12
12
12
12
12
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
11
11
11
11
11
11
12%
12%
12%
12%
12%
12%
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
11%
11%
11%
11%
11%
11%
13
13
13
13
13
13
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
12
12
12
12
12
12
15
15
15
15
15
15
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
14
14
14
14
14
14
Range of rates in recent years5
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
5%
5V4-51A 5%
51/4
5V4
5-5%
5%
5-5%
5
5
5
4^-5
5
434
4 y4
5%
4%-5
434-5
434
5
5
5
4%
434
43/4
4%
4%
5
5
5-5%
53/4
53,4-6
6
6-6%
6%
5%
5%
5%
5 %
6
6
6%
6%
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1973—July 2.
Aug. 14,
23,
7
7
7%
7%
1974—Apr. 25,
30.
Dec. 9,
16.
7%-8
8
8
8
Effective date
1975—Jan.
6,
10,
24,
Feb. 5,
7,
Mar. 10,
14,
May 16,
23,
1976—Jan. 19,
23,
Nov. 22,
26,
1. Discounts of eligible paper and advances secured by such paper or by
U.S. government obligations or any other obligations eligible for Federal
Reserve Bank purchase.
2. Advances secured to the satisfaction of the Federal Reserve Bank.
Advances secured by mortgages on 1- to 4-family residential property
are made at the section 13 rate.
3. Applicable to special advances described in section 201.2(e)(2) of
Regulation A.
7-7%
7%
734-8
734
71/4-73/4
7%-73/4
7%
634-7%
634
61/4-634
614
6-6 %
6
5%-6
5%
514-5%
514
734
734
?8
714
634
634
61/4
614
6
6
5%
5%
514
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1977—Aug. 30
31
Sept. 2
Oct. 26
514-534
514-534
534
6
514
534
534
6
1978—Jan.
6-6%
6%
6 % -7
7
7-714
714
734
8
8-8%
8%
8%-9%
9%
6%
6%
7
7
714
714
734
8
8%
8%
9%
9%
Effective date
9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
In effect Oct. 31, 1979
10
10-10%
10%
10%-n
11
11-12
12
12
10
10%
10%
11
11
12
12
12
4. Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. government or any
agency thereof.
5. Rates under 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 and 1941-1970\ Annual
Statistical Digest, 1971-1975, 1972-1976, and 1973-1977.
Policy Instruments
A9
1.15 MEMBER BANK RESERVE REQUIREMENTS 1
Percent of deposits
Requirements in effect
October 31, 1979
Type of deposit, and deposit interval
in millions of dollars
Previous requirements
Percent
Effective date
Percent
Effective date
7
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
m
11%
12%
16%
10
12
13
16%
2/13/75
2/13/75
2/13/75
2/13/75
2/13/75
3
3/16/67
2y2
1
3
3/16/67
1/8/76
10/30/75
m
3
3
3/2/67
3/16/67
3/16/67
6
21/2
12/12/74
1/8/76
10/30/75
5
3
3
10/1/70
12/12/74
12/12/74
Net demand2
0-2
2-10
10-100
100-400
Over 400
Time and savings2' 3>4
Savings
Times
0-5, by maturity
30-179 days
180 days to 4 years
4 years or more
Over 5, by maturity
30-179 days
180 days to 4 years
4 years or more
1
3/2/67
Legal limits
Net demand
Reserve city banks
Other banks
Time
Borrowings from foreign banks
1. For changes in reserve requirements beginning 1963, see Board's
Annual Statistical Digest, 1971-1975 and for prior changes, see Board's
Annual Report for 1976, table 13.
2. (a) Requirement schedules are graduated, and each deposit interval
applies to that part 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 Federal Reserve Banks or branches are also
reserve cities. Any banks having net demand deposits of $400 million or
less are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board's Regulation D.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements
on net balances due from domestic banks to their foreign branches and
on deposits that foreign branches lend to U.S. residents were reduced to
zero from 4 percent and 1 percent, respectively. The Regulation D reserve
requirement on borrowings from unrelated banks abroad was also reduced
to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16,
1978, domestic deposits of Edge corporations are subject to the same
reserve requirements as deposits of member banks.
3. Negotiable order 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 reserve requirement on savings and other time deposits
must be at least 3 percent, the minimum specified by law.
5. Effective Nov. 2, 1978, a supplementary reserve requirement of 2
percent was imposed on large time deposits of $100,000 or more, obligations of affiliates, and ineligible acceptances.
Effective with the reserve maintenance period beginning Oct. 25, 1979,
a marginal reserve requirement of 8 percent was added to managed
liabilities in excess of a base amount. Managed liabilities are defined as
large time deposits, Eurodollar borrowings, repurchase agreements
against U.S. government and federal agency securities, federal funds
borrowings from nonmember institutions, and certain other obligations.
In general, the base for the marginal reserve requirement is $100 million or
the average amount of the managed liabilities held by a member bank,
Edge corporation, or family of U.S. branches and agencies of a foreign
bank for the two statement weeks ending Sept. 26, 1979.
NOTE. Required reserves must be held in the form of deposits with
Federal Reserve Banks or vault cash.
A10
DomesticNonfinancialStatistics • November 1979
.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Commercial banks
Type and maturity of deposit
In effect Nov. 30,1979
Percent
1 Savings
2 Negotiable 1order of withdrawal
accounts
Time accounts2
Fixed ceiling rates by maturity
3 30-89 days
4 90 days to 1 year
5
1 to 2 years 3
6 2 to 2 ^ years 3
7 2^2 to 4 years
3
8 4 to 6 years4
9 6 to 8 years4 4
10 8 years or more
11 Issued to governmental units (all
maturities)
12 Individual retirement accounts and
Keogh (H.R. 10) plans
(3 years or more) 5
Special variable ceiling rates by maturity
13 6 months (money market time
deposits)®
14 4 years or more
5%
Effective
date
7/1/79
1/1/74
Previous maximum
Percent
5
(®)
Effective
date
7/1/73
In effect Nov. 30,1979
Previous maximum
Percent
Percent
Effective
date
5%
(®)
( )
Effective
date
5%
7/1/79
5
1/1/74
7
(•)
5%
5 y2
9/1/79
7/1/73
5
(n)
(12)
7
m
11/1/73
6/1/78
m
12/23/74
6/1/78
m
7/6/77
6/1/78
5
7/1/73
61/2
IVA
m
1V4
7/1/73
(9)
1/21/70
1/21/70
1/21/70
(7)
(7 )
( )
11/1/73
12/23/74
6/1/78
6/1/78
7/1/73
11/1/73
12/23/74
6/1/78
sy4
(10)
8
( )
n
n
<
)
(12)
1. For authorized states only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks in Massachusetts and New Hampshire were first permitted to offer
negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institutions
throughout New England on Feb. 27, 1976, and in New York State on
Nov. 10, 1978.
2. 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).
3. No minimum denomination. Until July 1, 1979, a minimum of
$1,000 was required for savings and loan associations, except in areas
where mutual savings banks permitted lower minimum denominations.
This restriction was removed for deposits maturing in less than 1 year,
effective Nov. 1, 1973.
4. No minimum denomination. Until July 1, 1979, minimum denomination was $1,000 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.
5. Accounts maturing in less than 3 years subject to regular ceilings.
6. Must have a maturity of exactly 26 weeks and a minimum denomination of $10,000, and must be nonnegotiable.
7. July 1, 1973, for mutual savings bank; July 6, 1973 for savings and
loan associations.
8. No separate account category.
9. Multiple maturity: July 20, 1966; single maturity: September 26,
1966.
10. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates that an institution
could issue was limited to 5 percent of its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6Vi percent ceiling on time deposits maturing in 2l/i
years or more.
Effective Nov. 1, 1973, ceilings were reimposed 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.
Savings and loan associations and
mutual savings banks
( 1 2)
( )
n
( )
(12)
m
m
8
1
O
)
(12)
n)
<(12)
(8)
5%
5%
6
6
(10)
1/21/70
1/21/70
1/21/70
1/21/70
7%
(®)
11/1/73
734
12/23/74
7%
7/6/77
1
O
)
(12)
n
<(12)
)
11. Commercial banks, savings and loan associations, and mutual
savings banks were authorized to offer money market time deposits effective June 1,1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. Until Mar. 15,
1979, the ceiling rate for savings and loan associations and mutual savings
banks was V4 percentage point higher than the rate for commercial banks.
Beginning Mar. 15, 1979, the % percentage point interest differential
is removed when the 6-month Treasury bill rate is 9 percent or more.
The full differential is in effect when the 6-month bill rate is 8% percent
or less. Thrift institutions may pay a maximum 9 percent when the 6-month
bill rate is between 8% and 9 percent. Also effective March 15, 1979,
interest compounding was prohibited on money market time depositat all offering institutions. For both commercial banks and thrift institutions, the maximum allowable rates in October were as follows: Oct. 4,
10.327; Oct. 11, 10.662; Oct. 18, 11.716; Oct. 25, 12.651.
12. Effective July 1, 1979, commercial banks, savings and loan associations, and mutual savings banks are authorized to offer variable ceiling
accounts with no required minimum denomination and with maturities
of
4 years or more. The maximum rate for commercial banks is 1 1/A percentage points below the yield on
4-year
U.S.
Treasury
securities;
the
ceiling
rate for thrift institutions is lA percentage point higher than that for commercial banks. For deposits issued in October, the ceiling was 8.25 percent
at commercial banks and 8.50 percent at thrift institutions. In November,
the ceiling at commercial banks is 10.3 percent, and the ceiling at thrift
institutions is 10.55 percent.
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 with maturities of 30-89
days were suspended in June 1970; such deposits maturing in 90 days or
more were suspended in May 1973. For information regarding previous
interest rate ceilings on all types of accounts, see earlier issues of the
FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal,
and the Annual Report of the Federal Deposit Insurance Corporation.
Policy Instruments
All
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1979
1978
1977
1976
Type of transaction
Mar.
Apr.
May
2,012
22,361
June
July
Aug.
Sept.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
Treasury bills
1 Gross purchases
2 Gross sales
3 Redemptions
4
5
6
7
Others within 1 year1
Gross purchases
Gross sales
Exchange, or maturity shift
Redemptions
1 to 5 years
8 Gross purchases
9 Gross sales
10 Exchange, or maturity shift
14,343
8,462
2 5,017
13,738
7,241
2,136
16,628
13,725
2,033
475
400
472
0
0
3,017
1,184
2,600
792
4.499
2.500
-5,170
724
2 3,202
177
-2,588
2,833
4,188
-6,649
-178
1,048
758
1,526
0
0
0
0
0
0
0
0
0
-724
100
2 1,240
0
0
439
2 3,240
2 640
0
-439
0
518
623
2,252
251
0
0
0
0
0
0
42
218
57
1,152
33
,526
200
4,660
0
0
-5,209
5 to 10 years
11 Gross purchases
12 Gross sales
13 Exchange, or maturity shift
1,572
Over 10 years
14 Gross purchases
15 Gross sales
16 Exchange, or maturity shift
642
553
1,063
225
,565
2,545
219,707
8,639
25,017
20,898
7,241
4,636
24,591
13,725
2,033
,612
475
400
2 3,000
2 4,480
251
200
All maturities1
17 Gross purchases
18 Gross sales
19 Redemptions
0
0
0
584
0
0
0
0
0
0
-1,152
0
100
699
-1,591
0
0
0
142
0
0
0
237
96
0
0
0
0
200
0
-33
0
0
350
2,803
0
0
2,351
380
0
140
0
-240
81
0
305
3,327
380
561
623
2,945
0
0
0
52,640
52,949
40,310
40,300
35,159
35,480
0
20
21
Matched sale-purchase transactions
Gross sales
Gross purchases
196,078 425,214 511,126
196,579 423,841 510,854
61,669
63,707
62,362
61,968
54,343
53,692
22
23
Repurchase agreements
Gross purchases
Gross sales
232,891 178,683 151,618
230,355 180,535 152,436
11,817
10,137
5,784
6,163
2,188
3,488
12,226
15,531
18,464
19,690
12,226
-2,352
-2,403
3,552
1,708
1,582
482
24 Net change in U.S. government securities
9,087
5,798
7,743
7,454
891
,433
169
223
0
301
173
235
23
10,520
10,360
13,811
13,638
40,567
40,885
2,851
2,482
1,383
-426
345
-545
410
-196
159
-366
204
48
-252
-135
-37
-366
204
48
-252
9,833
7,143
6,951
8,003
-2,524
-2,844
10,539
FEDERAL AGENCY OBLIGATIONS
25
26
27
Outright transactions
Gross purchases
Gross sales
Redemptions
28
29
Repurchase agreements
Gross purchases
Gross sales
0
30 Net change in federal agency obligations
0
0
1,173
1,392
0
0
371
40
33
0
0
,149
,298
4,443
3,617
7,247
7,434
0
4,057
4,544
-189
BANKERS ACCEPTANCES
31 Outright transactions, net
32 Repurchase agreements, net
0
0
0
0
33 Net change in bankers acceptances
34 Total
net change in System Open Market
Account
1. Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions of dollars): Sept. 1977, 2,500; Mar. 1979, 2,600.
2. In 1976, the System acquired $189 million of 2-year Treasury notes
in exchange for maturing bills. In April 1979, the System acquired $640
million of 2-day cash management bills in exchange for maturing 2-year
notes. New 2-year notes were later obtained in exchange for the maturing
0
1,400
1,400
6,115
0
0
-241
-684
-241
-684
1,761
412
bills. Each of these transactions is treated in the table as both a purchase
and 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 1979
1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements
Millions of dollars
Account
Oct. 10*
Oct. 3P
Wednesday
End of month
1979
1979
Oct. 17p
Oct. 24P
Oct. 31*
Aug.
Sept P
Oct P
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
5
Other
Acceptances
7
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
U.S. governments securities
Bought outright
Bills
Certificates—Special
Other
Notes
Bonds
Total i
Held under repurchase agreements
Total U.S. government securities
8
9
10
11
12
13
14
15
16
17
18 Total loans and securities
19 Cash items in process of collection
21
22
Other assets
Denominated in foreign currencies2
Allother
11,228
1,800
455
11,212
1,800
450
11,196
1,800
457
11,196
1,800
456
11,194
1,800
449
11,259
1,800
441
11,228
1,800
454
11,194
1,800
449
1,089
0
515
0
4,257
0
4,106
0
2,672
0
1,572
0
1,157
0
2,672
0
0
0
0
0
0
0
0
0
0
317
0
475
0
1,053
0
317
8,224
0
8,221
0
8,221
0
8,221
0
8,221
57
8,242
153
8,224
1,099
8,221
57
39,377
0
0
55,511
14,185
109,073
0
109,073
42,876
0
0
56,179
14,185
113,240
0
113,240
43,380
0
0
56,179
14,185
113,744
0
113,744
42,657
0
0
56,242
14,185
113,084
0
113,084
44,028
0
0
56,242
14,185
114,455
125
114,580
42,905
0
0
55,645
14,085
112,635
392
113,027
44,232
0
0
56,179
14,185
114,596
862
115,458
44,028
0
0
56,242
14,185
114,455
125
114,580
118,386
121,976
126,222
125,411
125,847
123,469
126,991
125,847
14,966
397
16,669
402
15,753
403
11,591
402
11,693
402
9,938
400
9,381
400
11,693
402
1,537
2,335
1,518
2,589
1,498
2,973
1,498
2,560
1,432
2,639
2,213
2,008
1,536
3,413
1,432
2,639
151,104
156,616
160,302
154,914
155,456
151,528
155,203
155,456
107,638
108,685
108,441
107,935
108,029
106,900
106,683
108,029
27,833
0
0
27,833
3,256
298
613
31,531
0
0
31,531
2,625
280
686
35,111
0
0
35,111
3,423
290
466
31,638
0
0
31,638
3,218
301
582
32,192
369
0
32,561
2,209
352
286
29,493
0
0
29,493
3,542
325
663
29,485
0
0
29,485
6,489
348
780
32,192
369
0
32,561
2,209
352
286
32,000
35,122
39,290
35,739
35,408
34,023
37,102
35,408
7,212
1,897
8,247
2,022
7,664
2,180
6,323
1,996
7,008
1,849
5,729
1,813
6,332
2,078
7,008
1,849
148,747
154,076
157,575
151,993
152,294
148,465
152,195
152,294
1,135
1,078
144
1,135
1,078
327
1,135
1,078
514
1,135
1,078
708
1,136
1,078
948
1,131
1,078
854
1,135
1,078
795
1,136
1,078
948
151,104
156,616
160,302
154,914
155,456
151,528
155,203
155,456
83,286
85,297
83,696
83,029
81,928
81,928
82,703
81,928
LIABILITIES
Deposits
25 Reserve accounts
27
28
29
30
Edge Act Corporations
U.S. agencies and branches of foreign banks.
Total
U.S. Treasury—General account
32
Other
34 Deferred availability cash items.
CAPITAL ACCOUNTS
38 Surplus...
40 Total liabilities and capital accounts
41 MEMO: Marketable U.S. government securities
held in custody for foreign and international
Federal Reserve note statement
42 Federal Reserve notes outstanding (issued to
Bank)
Collateral held against notes outstanding
122,514
122,865
123,293
123,921
124,342
121,408
122,457
124,342
46 U.S. government and agency securities
11,228
1,800
688
108,798
11,212
1,800
382
109,471
11,196
1,800
1,293
109,004
11,196
1,800
2,246
108,679
11,194
1,800
1,743
109,605
11,259
1,800
1,090
107,259
11,228
1,800
848
108,581
11,194
1,800
1,743
109,605
47 Total collateral
122,514
122,865
123,293
123,921
124,342
121,408
122,457
124,342
44 Special Drawing Rights certificate account
1. Includes securities loaned—fully guaranteed by U.S. government
securities pledged with Federal Reserve Banks—and excludes (if any)
securities sold and scheduled to be bought back under matched salepurchase transactions.
2. Beginning December 29, 1978, such assets are revalued monthly
at market exchange rates.
3. Includes exchange-translation account reflecting, beginning December
29, 1978, the monthly revaluation at market exchange rates of foreignexchange commitments.
Reserve Banks
1.19 FEDERAL RESERVE BANKS
A13
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity
Oct. 10
Oct. 3
Wednesday
End of month
1979
1979
Oct. 31
Oct. 24
Oct. 17
Aug. 31
Sept. 30
Oct. 31
1 Loans
2 Within 15 days
3 16 days to 90 days
4 91 days to 1 year
1,089
1,020
69
0
515
430
85
0
4,257
4,228
29
0
4,106
4,050
56
0
2,672
2,577
95
0
1,572
1,441
131
0
1,157
1,079
78
0
2,672
2,577
95
0
5 Acceptances
6
Within 15 days
7
16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
317
317
0
0
475
475
0
0
1,053
1,053
0
0
317
317
0
0
109,073
4,588
18,478
35,060
26,270
12,294
12,383
113,240
3,437
23,890
34,298
26,938
12,294
12,383
113,744
3,185
23,717
35,227
26,938
12,294
12,383
113,084
3,095
23,482
34,857
26,973
12,294
12,383
114,580
6,848
20,930
35,036
27,089
12,294
12,383
113,027
2,821
23,419
35,477
26,793
12,221
12,296
115,458
3,481
25,171
34,983
27,146
12,294
12,383
114,580
6,848
20,930
35,036
27,089
12,294
12,383
8,224
33
224
1,412
4,386
1,427
742
8,221
12
362
1,263
4,415
1,427
742
8,221
64
310
1,280
4,398
1,427
742
8,221
52
352
1,350
4,290
1,435
742
8,278
109
352
1,350
4,290
1,435
742
8,395
281
185
1,242
4,452
1,439
796
9,323
1,186
223
1,369
4,376
1,427
742
8,278
109
352
1,350
4,290
1,435
742
9 U.S. Government securities
10 Within 15 days i
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations
17 Within 15 days i
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
1. 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.
Bank group, or type
of customer
1976
1979
1977
1978
June
May
July
Sept.
Aug.
2
Debits to demand deposits (seasonally adjusted)
1 All commercial banks
2 Major New York City banks..
3 Other banks
29,180.4
11,467.2
17,713.2
34,322.8
13,860.6
20,462.2
40,300.3
15,008.7
25,291.6
47,545.4
16,960.3
30,585.2
50.388.3
19.747.4
30,641.0
52,102.7
20,480.5
31,622.2
52,402.5
20.357.2
32.045.3
54,233.1
21,117.6
33,115.5
735.8
78.2
657.6
667.6
74.5
593.1
173.1
709.1
116.9
175.0
711.5
118.2
3.4
7.4
3.2
3.1
7.0
2.9
Debits to savings deposits 3 (not seasonally adjusted)
174.0
21.7
152.3
5 Business1
6 Others
418.1
56.7
361.4
764.4
69.4
695.0
658.8
72.6
586.2
732.8
74.1
658.8
Demand deposit turnover2 (seasonally adjusted)
7 All commercial banks
8 Major New York City banks..
9 Other banks
116.8
411.6
79.8
129.2
503.0
85.9
139.4
541.9
96.7
160.3
619.1
113.6
167.3
685.4
112.5
171.9
717.7
115.2
Savings deposit turnover 3 (not seasonally adjusted)
10 All customers
11 Business1
12 Others
1.6
4.1
1.5
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 order of withdrawal (NOW) accounts and
special club accounts, such as Christmas and vacation clubs.
1.9
5.1
1.7
3.6
6.8
3.4
3.1
7.2
2.9
3.4
7.2
3.2
NOTE. Historical data—estimated for the period 1970 through June
1977, partly on the basis of the debits series for 233 SMSAs, which were
available through June 1977—are available from Publications Services,
Division of Support 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
DomesticNonfinancialStatistics • November 1979
1.21 MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
Item
1975
Dec.
1976
Dec.
1977
Dec.
1978
Dec.
1979
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
MEASURES 1
1
2
3
4
5
6
M-L
M-1 +
M-2
M-3
M-4
M-5
295.4
456.8
664.8
1,092.4
745.8
1,173.5
313.8
517.2
740.6
1,235.6
803.0
1,298.0
338.7
560.6
809.4
1,374.3
883.1
1,448.0
361.2
587.2
875.8
1,500.1
972.4
1,596.7
364.3
585.1
889.8
1,530.8
984.8
1,625.9
364.5
584.1
893.8
1,537.0
984.4
1,627.6
369.0
590.1
904.4
1,552.3
989.3
1,637.2
MI.2
595.1
914.1
1,567.0
R
998.8
1,651.7
374.3
598.3
922.5
N , 580.0
1,008.4
R
L,666.0
377.8
601.9
931.9
1,594.4
1,020.0
1,682.4
73.8
80.8
88.6
97.5
100.2
100.7
101.5
102.4
103.6
104.8
221.7
450.3
160.7
81.0
208.6
233.0
489.2
202.1
62.4
224.7
250.1
544.4
219.7
73.7
251.0
263.7
611.2
223.0
96.6
291.5
264.1
620.6
217.7
95.0
307.9
263.8
619.9
216.4
90.6
313.0
267.5
620.3
217.8
84.9
317.6
269.8
626.6
219.5
84.7
322.4
270.7
634.2
220.7
85.9
327.6
273.0
642.2
220.7
88.1
333.4
427.7
495.0
564.9
624.4
641.0
643.2
647.9
652.9
COMPONENTS
7 Currency
8
9
10
11
12
Commercial bank deposits
Demand
Time and savings
Savings
Negotiable CDs 2
Other time
13 Nonbank thrift institution deposits 3..
R
657.5
662.4
Not seasonally adjusted
MEASURES1
14
15
16
17
18
19
M-L
M-L +
M-2
M-3
M-4
M-5
R
303.9
463.6
670.0
1,095.0
753.5
1,178.4
322.6
524.2
745.8
1,238.3
810.0
1,302.6
348.2
568.0
814.9
1,377.2
890.8
1,453.2
371.3
595.2
881.5
1,502.8
981.0
1,602.4
367.4
590.7
896.8
1,540.8
989.5
1,633.5
359.1
580.6
892.1
1,536.4
981.1
1,625.4
368.2
591.0
906.0
1,556.3
990.4
1,640.7
374.1
598.8
917.0
1,573.0
1,001.0
1,657.0
371.6
595.6
919.3
R
L,577.1
1,005.7
R
L,663.4
375.6
597.8
927.2
1,588.6
1,017.0
1,678.4
75.1
82.1
90.1
99.1
99.9
100.6
101.8
103.2
103.9
104.5
228.8
162.8
62.6
449.6
159.1
83.5
207.1
240.5
169.4
67.5
487.4
200.2
64.3
222.9
258.1
177.5
76.2
542.6
217.7
75.9
249.0
272.2
183.0
85.2
609.7
220.9
99.5
289.2
267.5
178.5
85.1
622.1
220.1
92.6
309.3
258.5
171.8
82.6
622.0
218.2
88.9
314.9
266.4
177.1
84.8
622.2
219.4
84.4
318.3
270.9
180.5
86.1
627.0
221.4
84.0
321.6
267.7
178.5
85.3
634.1
220.7
86.4
327.1
271.1
179.4
87.4
641.4
218.9
89.8
332.7
.7
424.9
1.4
492.5
2.1
562.3
3.0
621.4
3.2
644.0
3.3
644.3
3.3
650.3
3.4
656.0
3.4
'•657.8
3.4
661.4
4.1
4.4
5.1
10.2
5.3
8.4
10.8
13.2
9.8
12.4
COMPONENTS
20 Currency
21
22
23
24
25
26
27
Commercial bank deposits
Demand
Member
Domestic nonmember
Time and savings
Savings
Negotiable CDs 2
Other time
28 Other checkable deposits4
29 Nonbank thrift institution deposits 3..
30 U.S. government demand deposits
1. 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. government, less cash items
in process of collection and Federal Reserve float; (2) foreign demand
balances at Federal Reserve Banks; and (3) currency outside the Treasury,
Federal Reserve Banks, and vaults of commercial banks.
M-l -f-: M-l plus savings deposits at commercial banks, NOW accounts
at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-l plus savings deposits, time deposits open account, and time
certificates of deposit (CDs) other than negotiable CDs 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 CDs.
M-5: M-3 plus large negotiable CDs.
2. Negotiable time CDs issued in denominations of $100,000 or more
by large weekly reporting commercial banks.
3. Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
4. Includes NOW accounts at thrift institutions, credit union share
draft accounts, and demand deposits at mutual savings banks.
5. Includes Treasury note balances beginning Nov. 2, 1978.
NOTE. Latest monthly and weekly figures are available from the Board's
H.6 (508) release. Back data are available from the Banking Section,
Division of Research and Statistics.
NOTES TO TABLE 1.23:
1. Includes domestic chartered banks, U.S. branches, agencies, and
New York investment company subsidiaries of foreign banks; and Edge
Act corporations.
2. Excludes loans to commercial banks in the United States.
3. 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.
4. United States includes the 50 states and the District of Columbia.
5. As of Dec. 31, 1977, as the result of loan reclassifications, business
loans were reduced by $0.2 billion and nonbank financial loans by $0.1
billion; real estate loans were increased by $0.3 billion.
6. As of Dec. 31, 1978, total loans and investments were reduced by
$0.1 billion. "Other securities" were increased by $1.5 billion and total
loans were reduced by $1.6 billion largely as the result of reclassifications
of certain tax-exempt obligations. Most of the loan reduction was in
"all other loans."
7. As of Dec. 31, 1978, commercial and industrial loans were reduced
$0.1 billion as a result of reclassifications.
8. As of Dec. 31, 1978, commercial and industrial loans sold outright
were increased $0.7 billion as the result of reclassifications, but $0.1
billion of this amount was offset by a balance sheet reduction of $0.1
billion as noted above.
9. As of Dec. 31, 1978, nonbank financial loans were reduced $0.1
billion as the result of reclassifications.
10. As of Jan. 3, 1979, as the result of reclassifications, total loans and
investments and total loans were increased by $0.6 billion. Business loans
were increased by $0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were reduced by $0.3 billion.
NOTE. Data are prorated averages of Wednesday data for domestic
chartered banks, and averages of current and previous month-end data for
foreign-related institutions.
Monetary
1.22 AGGREGATE RESERVES AND DEPOSITS
Aggregates
A15
Member Banks
Billions of dollars, averages of daily figures
1976
Dec.
Item
1977
Dec.
1979
1978
Dec.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
1
2
3
4
1
Reserves
Nonborrowed
Required
Monetary base2
5 Deposits subject to reserve requirements3
6 Time and savings
7
8
Demand
Private
U.S. government
34.89
34.84
34.61
118.4
36.10
35.53
35.91
127.8
41.27
40.40
41.04
142.3
40.75
39.78
40.54
143.3
40.81
39.82
40.66
143.9
40.65
39.73
40.47
144.5
40.48
38.72
40.34
144.9
40.42
39.00
40.20
145.6
40.82
39.65
40.61
146.9
41.07
39.98
40.85
148.4
41.46
40.12
41.27
150.1
528.6
354.1
568.6
386.7
616.7
429.4
619.7
436.1
616.4
434.1
618.6
432.0
613.9
428.7
613.1
425.9
618.7
429.4
623.7
434.4
630.5
439.8
171.5
3.0
178.5
3.5
185.1
2.3
181.9
1.8
180.5
1.8
184.7
1.8
183.5
1.7
184.8
2.4
187.5
1.8
187.1
2.2
188.9
1.8
Not seasonally adjusted
9 Monetary base
2
10 Deposits subject to reserve requirements3
11 Time and savings
12
13
Demand
Private
U.S. government
120.3
129.8
144.6
141.9
142.3
144.2
144.4
145.6
147.9
148.4
149.4
534.8
353.6
575.3
386.4
624.0
429.6
614.3
434.2
614.3
434.9
621.1
432.3
610.9
429.8
613.9
427.2
619.2
429.8
620.4
434.1
629.0
439.4
177.9
3.3
185.1
3.8
191.9
2.5
178.2
1.8
177.5
1.9
186.8
2.0
179.2
1.8
183.9
2.8
187.8
1.6
184.5
1.7
187.5
2.1
1. Series reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and M. There
are breaks in series because of changes in reserve requirements effective
Jan. 8 and Dec. 30, 1976; and Nov. 2, 1978. In addition, effective Jan. 1,
1976, statewide branching in New York was instituted. The subsequent
merger of a number of banks raised required reserves because of higher
reserve requirements on aggregate deposits at these banks.
2. Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier); currency outside the U.S.
Treasury, Federal Reserve Banks, and the vaults of commercial banks;
and vault cash of nonmember banks.
1.23 LOANS AND INVESTMENTS
3. Includes total time and savings deposits and net demand deposits as
defined by Reguation D. Private demand deposits include all demand
deposits except those due to the U.S. government, less cash items in
process 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.
All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
Category
1977
Dec.
1979
1978
Dec.
July P
Aug.f
Sept.P
1977
Dec.
Seasonally adjusted
2
Total loans and securities
U.S. Treasury securities
Other securities
Total loans and leases2
Commercial and industrial loans..
Real estate loans
Loans to individuals
Security loans
Loans to nonbank financial
institutions
10 Agricultural loans
11 Lease financing receivables
12 All other loans
1
2
3
4
5
6
7
8
9
891.1 61,014.3 ioi,092.2
99.5
93.4
95.3
159.6
6173.1
183.5
632.1
6747.8 i1 o s n ^
5211.2
7246.5 10275.5
5175.2
210.5
0228.7
138.2
164.9
177.8
20.6
19.4
23.6
525.8
25.8
5.8
29.5
1,122.8
95.2
187.6
840.0
285.9
234.1
180.2
23.5
029.2
29.1
8.3
41.2
29.5
29.2
8.6
43.2
29.8
29.6
8.7
48.0
ioi,095.9
i0817.2
3.7
1,106.5
827.0
3.7
1,126.5
843.7
3.7
0278.3
282.6
288.7
2.8
8.0
2.8
8.6
1
1979
July?
Aug.P
Sept.*
Not seasonally adjusted
1,102.8
94.1
185.4
823.3
279.9
231.3
178.8
23.0
927.1
28.2
7.4
643.6
1978
Dec.
899.1 61,023.8 io 1,093.7
100.7
94.6
93.6
160.2
6173.9
183.3
638.3
6755.4 i0816.8
5212.6
7248.2 110276.9
5175.5
210.9
0228.9
139.0
165.9
178.2
22.0
20.7
22.7
1,102.7
92.2
185.0
825.5
279.6
232.0
180.4
23.0
1,124.7
93.6
187.6
843.5
285.8
235.3
182.4
23.6
°29.5
29.5
8.3
42.8
29.8
29.8
8.6
42.3
30.3
30.1
8.7
47.2
ioi,097.4
1
0820.5
3.7
1,106.4
829.2
3.7
1,128.4
847.2
3.7
8250.1
10279.7
282.4
288.6
2.7
8.6
81.9
7.5
2.8
7.9
2.8
7.5
2.8
8.0
526.3
25.7
5.8
31.5
927.6
28.1
7.4
646.6
1
MEMO:
13 Total loans
and investments plus loans
sold 2 3
14 Total loans plus loans sold 2 -33
15 Total loans sold to affiliates
16 Commercial and
industrial loans plus
loans sold3
17 Commercial
and
industrial loans
sold3
18 Acceptances held
19 Other commercial and industrial
loans
20
To U.S. addressees4
21
To non-U.S. addressees
22 Loans to foreign banks
23 Loans to commercial banks in the
United States
For notes see bottom of opposite page.
895.9 61,018.1
636.9
6751.6
4.8
3.8
5213.9
8248.5
1
903.9 61,027.6
6759.2
643.0
4.8
3.8
5215.3
2.7
7.5
81.9
6.8
2.8
8.2
5203.7
5193.8
59.9
13.5
239.7
226.6
13.1
21.2
267.3
250.0
17.3
20.9
271.8
253.7
18.1
20.9
277.3
258.7
18.6
24.0
5203.9
5193.7
510.3
14.6
240.9
226.5
14.4
23.0
269.1
251.7
17.3
21.9
272.1
254.2
17.9
20.6
277.8
259.2
18.7
23.6
54.1
57.3
68.8
70.9
75.9
56.9
60.3
65.6
66.4
73.5
A16
DomesticNonfinancialStatistics • November 1979
1.24 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
Account
1979p
1978
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 1
1 Loans and investments
2 Loans, gross
3 Interbank
4 Commercial and industrial
5 Other
6 U.S. Treasury securities
1,030.4 1,018.9 1,025.2 1,031.4 1,048.3 1,059.4 1,071.3 1,081.8 1,094.3 1,112.1 1,117.7
838.7
819.4
807.6
833.8
785.3
797.9
773.9
759.8
750.4
755.6
761.6
54.1
45.9
48.1
50.3
53.6
44.4
46.3
42.1
42.3
45.3
41.3
249.7
236.4
242.0
244.1
240.5
249.5
233.0
225.3
227.8
221.6
221.9
517.4
534.8
511.2
503.0
530.8
525.0
488.2
489.6
496.5
487.2
494.7
91.4
93.2
92.1
90.6
91.9
94.2
91.6
93.6
92.1
93.1
93.1
187.7
186.4
180.2
181.0
181.7
182.1
184.3
178.0
176.4
176.5
175.7
148.5
16.7
31.6
40.7
59.5
160.7
16.6
34.1
45.5
64.6
53.8
57.5
57.5
14 Total assets/total liabilities and capital. 1 , 2 6 8 . 6 1 , 2 2 2 . 7 1 , 2 3 4 . 8 1 , 2 2 6 . 1 1 , 2 4 4 . 0 1 , 2 7 0 . 9 1 , 2 7 2 . 7 1 , 2 7 5 . 9
1,293.8
1,318.2
1,335.9
8 Cash assets, total
9 Currency and coin
10 Reserves with Federal Reserve Banks
11 Balances with depositary institutions
12 Cash items in process of collection...
16
18
19
Demand
Savings
Time
20 Borrowings
21 Other liabilities
22 Residual (assets less liabilities)
177.3
15.5
34.4
52.3
75.1
139:8
15.2
29.8
40.2
54.6
147.1
15.0
29.7
42.5
59.9
135.8
15.2
30.0
36.8
53.7
139.9
15.6
33.9
39.0
51.4
158.8
16.0
32.8
44.6
65.4
146.3
16.3
32.6
40.8
56.5
140.2
16.1
29.6
41.2
53.4
145.7
16.8
33.7
41.1
54.1
60.9
64.0
62.4
58.9
55.8
52.7
55.1
53.9
1,011.3
399.2
612.1
219.7
392.4
961.3
347.5
613.8
215.2
398.6
969.2
352.1
617.1
215.2
401.9
954.9
335.0
619.8
216.8
403.0
964.4
348.0
616.4
215.9
400.5
975.5
357.8
617.8
215.5
402.3
971.3
352.4
618.9
216.4
402.5
975.2
352.6
622.6
218.3
404.2
982.9
352.4
630.5
216.6
413.8
996.6 1,023.6
358.7
376.6
637.9
647.0
213.4
207.6
424.5
439.4
114.6
49.1
93.6
110.8
56.6
94.0
111.9
59.0
94.7
115.2
60.9
95.1
123.5
60.8
95.3
132.0
65.4
98.1
137.1
65.5
98.9
137.2
64.9
98.7
140.1
69.7
101.1
147.0
71.2
103.3
137.4
73.9
100.9
12.4
14,602
12.0
14,586
4.0
14,593
4.8
14,597
5.9
14,610
4.9
14,616
12.9
14,620
11.9
14,584
8.6
14,607
17.8
14,616
8.4
14, 605
MEMO:
23 U.S. Treasury note balances included
24 Number of banks
ALL COMMERCIAL BANKING
INSTITUTIONS2
25 Loans and investments
28 Commercial and industrial
29 Other
30 U.S. Treasury securities
32 Cash assets, total
34
35
36
Reserves with Federal Reserve Banks
Balances with depositary institutions
Cash items in process of collection...
1,097.0 1,080.6 1,087.7 1,101.4 1,114.8 1,131.0 1,146.7 1,152.8 1,169.5 1,197.7
915.9
875.9
837.7
854.0
870.5
827.2
891.8
815.6
809.7
825.5
69.2
60.4
61.8
60.7
56.1
57.3
63.8
53.5
52.1
57.6
288.2
269.2
275.2
277.5
264.9
280.9
259.8
255.6
251.2
251.8
558.5
534.9
537.7
515.4
547.0
523.0
511.3
506.5
505.9
516.8
93.5
94.6
93.1
93.5
91.9
95.6
94.9
94.3
93.3
94.5
188.3
182.3
183.1
183.5
185.7
179.4
181.5
177.8
177.6
177.0
196.8
15.5
35.0
69.9
76.4
158.2
15.2
30.2
56.8
56.0
166.8
15.1
30.3
60.3
61.3
157.0
15.2
30.7
56.0
55.1
156.4
15.6
34.5
53.7
52.5
176.4
16.1
33.4
60.1
66.8
168.0
16.3
33.4
60.5
57.7
160.8
16.1
30.4
59.7
54.6
166.4
16.8
34.5
59.9
55.2
172.2
16.7
32.5
62.4
60.6
76.0
78.4
76.9
74.1
70.8
67.7
71.4
69.7
70.9
76.8
38 Total assets/total liabilities and capital. 1 , 3 6 9 . 8 1 , 3 1 6 . 8 1 , 3 3 1 . 0 1 , 3 3 2 . 5 1 , 3 4 2 . 1 1 , 3 7 5 . 5 1 , 3 8 6 . 1 1 , 3 8 3 . 2 1 , 4 0 6 . 7 1 , 4 4 6 . 7
997.0 1,012.5 1,015.6 1,012.1 1,020.6 1,043.7
994.0
994.3 1,002.5
1,049.0
383.2
376.4
361.7
369.6
368.8
375.1
355.7
363.2
368.1
418.9
639.2
660.5
635.3
637.4
642.5
651.8
634.4
638.3
631.2
630.0
214.2
217.2
219.1
217.6
216.9
216.7
215.9
218.0
215.9
220.3
434.2
446.2
423.5
422.0
418.5
420.6
418.4
420.3
415.2
409.7
43
Time
46 Residual (assets less liabilities)
144.0
81.4
95.5
138.0
89.0
95.9
138.0
94.6
96.5
141.7
99.8
97.1
150.4
97.1
97.2
159.4
102.8
100.0
165.4
104.2
100.9
165.8
104.4
100.8
169.6
113.1
103.2
182.1
115.4
105.6
12.4
14,923
12.0
14,913
4.0
14,926
4.8
14,930
5.9
14,946
4.9
14,954
12.9
14,968
11.9
14,933
8.6
14,960
17.8
14,972
MEMO:
47 U.S. Treasury note balances included
1. Domestically chartered commercial banks include all commercial
banks in the United States except branches of foreign banks; included are
member and nonmember banks, stock savings banks, and nondeposit
trust companies.
2. Commercial banking institutions include domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act
and Agreement corporations, and New York state foreign investment
corporations.
NOTE. Figures are partly estimated except on call dates. They include
all bank-premises subsidiaries and other significant majority-owned
domestic subsidiaries.
Commercial Banks
A17
1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series
Millions of dollars, except for number of banks
Account
1977
1976
June 30
Dec. 31
Dec. 31
1978
1976
June 30
Dec. 31
1 Loans and investments, gross
Loans
Investments
4 U.S. Treasury securities
5 Other
6
7 Total assets/total liabilities1
June 30
1978
Dec. 31
June 30
National (all insured)
Total insured
2
3
1977
827,696
854,733
914,779
956,431
476,610
488,240
523,000
542,218
578,734
560,077
601,122
581,143
657,509
636,318
695,443
672,207
340,691
329,971
351,311
339,955
384,722
372,702
403,812
390,630
101,461
147,500
129,562
100,568
153,042
130,726
99,333
157,936
159,264
97,001
163,986
157,393
55,727
80,191
76,072
53,345
83,583
74,641
52,244
86,033
92,050
50,519
87,886
90,728
583,304
599,743
651,360
671,166
825,003
847,372
922,657
945,874
469,377
476,381
520,167
526,932
3,022
44,064
285,200
2,817
44,965
284,544
7,310
49,843
319,873
7,956
47,203
312,707
1,676
23,149
163,346
1,632
22,876
161,358
4,172
25,646
181,821
4,483
22,416
176,025
8,248
484,467
7,721
507,324
8,731
536,899
8,987
569,020
4,907
276,296
4,599
285,915
5,730
302,795
5,791
318,215
14
15 Total capital accounts
75,291
75,061
81,137
75,502
89,339
79,082
98,351
83,074
54,421
41,319
57,283
43,142
63,218
44,994
68,948
47,019
16 MEMO: Number of banks
14,397
14,425
14,397
14,381
4,735
4,701
4,654
4,616
8 Deposits
Demand
9
10 Interbank
11 Other
Time and savings
12 Interbank
13 Other
1,003,970 1,040,945 1,129,712 1,172,772
Insured nonmember
State member (all insured)
17 Loans and investments, gross
Loans
18 Gross
19
Investments
20 U.S. Treasury securities
21 Other
22
144,000
144,597
152,514
157,464
207,085
221,896
239,265
256,749
102,277
99,474
102,117
99,173
110,243
107,205
115,736
112,470
135,766
130,630
147,694
142,015
162,543
156,411
175,894
169,106
18,849
22,874
32,859
19,296
23,183
35,918
18,179
24,091
42,305
16,886
24,841
43,057
26,884
44,434
20,631
27,926
46,275
20,166
28,909
47,812
24,908
29,595
51,259
23,606
23
189,579
195,452
210,442
217,384
231,086
245,748
267,910
284,221
24 Deposits
Demand
25
26
27 Other
Time and savings
28
29
149,491
152,472
163,436
167,403
206,134
218,519
239,053
251,539
429
19,295
52,204
371
20,568
52,570
1,241
22,346
57,605
1,158
23,117
55,550
917
1,619
69,648
813
1,520
70,615
1,896
1,849
80,445
2,315
1,669
81,131
2,384
75,178
2,134
76,827
2,026
80,216
2,275
85,301
956
132,993
988
144,581
973
153,887
920
165,502
30
31
17,310
13,199
19,697
13,441
21,736
14,182
23,167
14,670
3,559
17,542
4,155
18,919
4,384
19,905
6,235
21,384
32
1,023
1,019
1,014
1,005
8,639
8,705
8,729
8,760
Total nonmember
Noninsured nonmember
18,819
22,940
24,415
28,699
225,904
244,837
263,681
285,448
16,336
16,209
20,865
20,679
22,686
22,484
26,747
26,548
152,103
146,840
168,559
162,694
185,230
178,896
202,641
195,655
1,054
1,428
6,496
993
1,081
8,330
879
849
9,458
869
1,082
9,360
27,938
45,863
27,127
28,919
<47,357
28,497
29,788
48,662
34,367
30,465
52,341
32,967
39
26,790
33,390
36,433
42,279
257,877
279,139
304,343
326,501
40
13,325
14,658
16,844
19,924
219,460
233,177
255,898
271,463
4
1,277
3,236
8
1,504
3,588
10
1,868
4,073
8
2,067
4,814
921
2,896
72,884
822
3,025
74,203
1,907
3,718
84,518
2,323
3,736
85,946
1,041
7,766
1,164
8,392
1,089
9,802
1,203
11,831
1,997
140,760
2,152
152,974
2,063
163,690
2,123
177,334
4,842
818
7,056
893
6,908
917
8,413
962
8,401
18,360
11,212
19,812
11,293
20,823
14,649
22,346
275
293
310
317
8,914
8,998
9,039
9,077
33 Loans and investments, gross
Loans
34
35
Investments
36 U.S. Treasury securities
37 Other
38
41
42
43
44
45
Demand
Time and savings
46
47 Total capital accounts
48
1. Includes items not shown separately.
For Note see table 1.24.
1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978
Millions of dollars, except for number of banks
Member banks1
Asset account
Insured
commercial
banks
Large banks
Total
1 Cash bank balances, items in process
2
Currency and coin
3
Reserves with Federal Reserve 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
New York
City
City of
Chicago
43,758
867
3,621
5,298
158,380
12,135
28,043
41,104
4,648
3,295
69,156
134,955
262,199
95,068
40,078
179,877
65,764
25,457
85,125
3,465
66
20,808
9,524
6,681
121,260
5,698
94
6,833
4,125
825
1,395
394
94
255,366
90,943
39,253
119,865
5,305
8,866
28,041
25,982
2,582
2,832
66,652
4,103
816
1,381
316
66
173,196
61,661
24,641
83,745
3,149
Other
large
All other
47,914
2,918
12,200
3,672
648
1,507
26,969
37,986
4,901
11,067
8,945
1,319
705
11,049
7,918
2,690
1,284
3,705
240
58,271
22,051
7,730
27,423
1,048
19
92,881
31,499
14,616
44,831
1,887
47
3,238
2,407
401
363
67
708
408
82
117
2,446
278
794
145
19
290
78
55
107
3
47
17,570
7,117
1,426
8,803
224
7,210
55,825
20,840
7,452
26,629
903
92,591
31,422
14,561
44,724
1,884
12,821
601
331
25,516
1,828
9,166
291
180
1,152
543
15
288
3,119
101
2,282
1,201
3,588
138
1,210
1,656
1,403
311
111
507
475
41,258
34,256
4,259
2,743
31,999
25,272
4,119
2,608
3,290
1,987
482
1,784
1,294
396
94
16,498
12,274
2,361
1,863
10,427
9,717
541
169
30 Other loans, gross
31 LESS: Unearned income on loans
32
Reserves for loan loss
33 Other loans, net
675,915
17,019
7,431
651,465
500,802
11,355
5,894
483,553
79,996
675
1,347
77,974
26,172
107
341
25,724
190,565
3,765
2,256
184,544
204,069
6,809
1,949
195,311
Other loans, gross, by category
34 Real estate loans
35
Construction and land development
36
Secured by farmland
37
Secured by residential properties
38
1- to 4-family residences
39
FHA-insured or VA-guaranteed
40
Conventional
41
Multifamily residences
42
FHA-insured
43
Conventional
44
Secured by other properties
203,386
25,621
8,418
117,176
111,674
7,503
104,171
5,502
399
5,103
52,171
138,730
19,100
3,655
81,370
77,422
6,500
70,922
3,948
340
3,609
34,605
10,241
2,598
23
5,362
4,617
508
4,109
746
132
613
2,258
2,938
685
34
1,559
1,460
44
1,417
99
27
72
660
52,687
9,236
453
31,212
29,774
3,446
26,328
1,438
72,863
6,581
3,146
43,236
41,570
2,502
39,068
1,665
92
1,573
19,901
45
46
47
48
49
50
51
52
53
54
37,072
8,574
3,362
7,359
1,579
16,198
11,042
4,280
28,054
213,123
34,843
8,162
4,342
7,187
1,411
15,465
10,834
3,532
15,296
171,815
12,434
2,066
966
3.464
290
5,649
6.465
410
168
39,633
165
268
76
3,033
1,324
276
150
13,290
15,137
4,616
1,206
2,820
785
5,710
2,846
1,860
3,781
67,833
25 Federal Reserve stock and corporate stock
26 Federal funds sold and securities resale agreement,
27
Commercial banks
28
Brokers and dealers
29
Others
Loans to financial institutions
REITs and mortgage companies
Domestic commercial banks
Banks in foreign countries
Other depositary institutions
Other financial institutions
Loans to security brokers and dealers
Other loans to purchase or carry securities
Loans to farmers except real estate
Commercial and industrial loans
2,618
821
801
88
1,350
11,786
2,930
680
281
635
261
1,073
199
985
11,196
51,059
55 Loans to individuals
56
Installment loans
57
Passenger automobiles
58
Residential repair and modernization
59
Credit cards and related plans
60
Charge-account credit cards
61
Check and revolving credit plans
62
Other retail consumer goods
63
Mobile homes
64
Other
65
Other installment loans
66
Single-payment loans to individuals
67 All other loans
161 ,599
131 ,571
58 908
8 526
21 938
17 900
4 038
19 689
9 642
10 047
22 ;510
30 027
17 360
110,974
90,568
37,494
5,543
19,333
16,037
3,296
13,296
6,667
6,629
14,902
20,406
14,778
7,100
5,405
1,077
331
2,268
1,573
695
427
179
249
1,302
1,694
3,545
2,562
1,711
209
60
1,267
1,219
47
57
19
38
119
851
1,290
40,320
33,640
68 Total loans and securities, net
956,579
696,833
102,383
35,536
259,820
299,094
6,717
22,448
3,255
16,557
34,559
6,212
16,529
3,209
16,036
30,408
1,145
2,332
1,642
8,315
11,323
96
795
188
1,258
1,000
3,931
1,282
6,054
12,810
1,041
7,133
96
409
5,275
1,198,495
904,182
170,899
44,170
338,079
351,034
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.
11,626
2,088
9,736
8,192
1,545
5,242
2,563
2,678
4,948
6,680
6,100
6,268
60,993
49,811
24,582
3,064
6,062
5,053
1,009
7,570
3,905
3,664
8,533
11,182
3,844
Commercial Banks
A19
1.26 Continued
Member banks1
Liability or capital account
Insured
commercial
banks
Large banks
Total
New York
City
City of
Chicago
Other
large
All other
Nonmember
banks1
100,737
256
79,429
1,987
3,446
211
10,803
1,251
3,354
104,988
305
86,876
2,977
7,116
62
4,189
298
3,166
86,591
194
74,061
2,222
5,545
77
1,393
162
2,937
15,954
0
40
12,074
40
1,554
1,145
999
103
98,525
148
76,333
356
16,483
1,401
3,585
219
113,931
65
27
92,824
232
20,020
124
629
9
102,066
13
7
81,680
175
19,077
222
672
220
10,632
9,878
519
2
215
18
2,604
2,448
148
3
4*
54,825
51,161
3,195
24
437
8
84,188
78,316
3,809
35
2,025
2
71,077
65,897
3,544
17
1,616
3
75 Demand deposits
76
Mutual savings banks
77 Other individuals, partnerships, and corporations
78 U.S. government
79 States and political subdivisions
80 Foreign governments, central banks, etc
81 Commercial banks in United States
82 Banks in foreign countries
83 Certified and officers' checks, etc
369,030
1,282
279,651
7,942
17,122
1,805
39,596
7,379
14,253
282,450
1,089
205,591
5,720
11,577
1,728
38,213
7,217
11,315
66,035
527
31,422
569
764
1,436
21,414
5,461
4,443
10,690
84 Time deposits
85 Accumulated for personal loan payments
86 Mutual savings banks
87 Other individuals, partnerships, and corporations
88 U.S. government
89 States and political subdivisions
90 Foreign governments, central banks, etc
91 Commercial banks in United States
92 Banks in foreign countries
368,562
79
399
292,120
864
59,087
6,672
7,961
1,381
266,496
66
392
210,439
689
40,010
6,450
7,289
1,161
38,086
0
177
29,209
61
1,952
3,780
2,077
829
93 Savings deposits
94 Individuals and nonprofit organizations
95 Corporations and other profit organizations
96 U.S. government
97 States and political subdivisions
98 All other
223,326
207,701
11,216
82
4,298
30
152,249
141,803
7,672
65
2,682
27
99 Total deposits
7,864
188
252
19
1,807
207
352
960,918
701,195
114,753
29,248
254,087
303,107
259,733
100 Federal funds purchased and securities sold under agreements
to repurchase
101 Commercial banks
102 Brokers and dealers
103 Others
91,981
42,174
12,787
37,020
85,582
39,607
11,849
34,126
21,149
6,991
2,130
12,028
8,777
5,235
1,616
1,926
41,799
21,609
6,381
13,809
13,857
5,773
1,722
6,362
6,398
2,566
939
2,894
104
105
106
107
8,738
1,767
16,661
27,124
8,352
1,455
16,140
23,883
3,631
234
8,398
8,860
306
27
1,260
1,525
3,191
701
6,070
9,020
1,225
491
412
4,477
386
316
521
3,494
1,107,188
836,607
157,026
41,144
314,868
323,569
270,849
2,033
1,287
1,366
Other liabilities for borrowed money
Mortgage indebtedness
Bank acceptances outstanding
Other liabilities
108 Total liabilities
109 Subordinated notes and debentures
110
111
112
113
114
115
Equity capital
Preferred stock
Common stock
Surplus
Undivided profits
Other capital reserves
116 Total liabilities and equity capital
MEMO:
5,767
4,401
1,001
79
85,540
88
17,875
32,341
33,517
1,719
63,174
36
12,816
23,127
26,013
1,182
12,871
0
2,645
4,541
5,554
132
2,947
0
570
1,404
921
52
21,177
5
4,007
8,148
8,680
337
26,178
31
5,594
9,034
10,858
661
22,380
52
5,064
9,217
7,509
538
1,198,495
904,182
170,899
44,170
338,079
351,034
294,595
252,337
117 Demand deposits adjusted2
Average for last 15 or 30 days
118 Cash and due from bank
119 Federal funds sold and securities purchased under agreements to resell
120 Total loans
121 Time deposits of $100,000 or more
122 Total deposits
123 Federal funds purchased and securities sold under agreements to repurchase
124 Other liabilities for borrowed money
171,864
18,537
5,576
60,978
86,774
80,472
146,283
124,916
36,862
6,030
45,731
36,293
21,379
43,873
651,874
183,614
944,593
33,682
483,316
150,160
687,543
4,272
76,750
32,196
107,028
1,887
25,722
13,216
28,922
16,007
184,790
65,776
250,804
11,517
196,054
38,972
300,789
10,307
168,558
33,454
257,062
92,685
8,716
86,635
8,326
22,896
3,679
9,473
370
40,541
3,211
13,725
1,067
6,053
390
125 Standby letters of credit outstanding
126 Time deposits of $100,000 or more
127 Certificates of deposit
128 Other time deposits
18,820
186,837
160,227
26,610
17,658
152,553
129,667
22,886
10,063
32,654
27,950
4,704
1,477
13,486
11,590
1,896
4,820
66,684
56,383
10,301
1,297
39,728
33,743
5,985
1,162
34,284
30,560
3,724
14,390
5,593
12
9
153
5,419
8,810
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. government, less cash items reported
as in process of collection.
NOTE. Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Securities are reported on a gross basis before deductions of valuation reserves. Back data in lesser detail were shown in
previous issues of the BULLETIN.
A20
DomesticNonfinancialStatistics • November 1979
1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of 5750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1979
Account
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Oct. 3*
Oct. 10*
Oct. 17*
Oct. 24*
56,041
47,021
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
4 Total loans and securities,.
52,354
52,696
49,020
53,576
56,569
54,960
16,658
15,413
16,988
14,540
16,941
17,929
18,026
16,020
31,301
503,707
26,235
501,258
28,857
506,488
31,963
501,788
28,503
507,014
32,976
508,938
36,264
502,765
31,936
498,687
Securities
5 U.S. Treasury securities
6
Trading account
7
Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities
12
Trading account
13
Investment account
14
U.S. government agencies
15
States and political subdivision, by maturity.
16
One year or less
17
Over one year
18
Other bonds, corporate stocks and securities
36,756
5,335
31,421
8,669
18,414
4,338
70,790
5,162
65,629
14,550
48,366
6,373
41,994
2,712
37,014
5,557
31,457
8,671
18,530
4,257
70,542
4,867
65,675
14,567
48,391
6,359
42,032
2,716
35,976
4,928
31,048
8,213
18,571
4,264
70,745
4,572
66,173
14,960
48,521
6,314
42,207
2,691
35,717
4,939
30,778
7,915
18,577
4,285
70,774
4,446
66,328
15,013
48,641
6,327
42,313
2,675
34,196
4,016
30,180
7,839
18,059
4,281
71,161
4,761
66,400
15,067
48,667
6,538
42,129
2,666
35,966
5,169
30,798
35,160
4,468
30,691
18,381
4,296
70,812
4,337
66,475
15,116
48,709
6,514
42,195
2,649
35,644
4,935
30,709
8,033
18,350
4,326
70,867
4,143
66,724
15,344
48,712
6,408
42,304
29,317
18,014
8.520
2,782
376,082
149,893
31,304
21,023
7,574
2,707
380,232
151,476
28,746
20,011
6,263
2,472
378,310
151,717
31,807
19,614
7,959
4,233
381,555
152,493
3,924
145,969
139,448
6.521
92,975
68,382
3,844
147,632
141,099
6,533
93,536
68,641
4,155
147,562
140,978
6,584
93,759
68,916
3,268
7,125
3,050
7,207
10,064
16,600
8,449
9,962
16,587
9,807
16,180
2,499
4,986
11,840
6,673
5,024
364,385
7,185
58,555
661,000
198,104
824
138,917
4,831
1,013
35,583
7,308
1,470
8,157
252,344
77,451
72,349
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
72 Residual (total assets minus total liabilities) 4 ...
2,668
30,962
21,201
6,908
2,852
382,985
152,939
26,074
17,637
5,876
2,561
382,019
151,323
24,196
16,534
5,168
2,494
380,517
151,730
3,954
148,539
141,966
6,573
94,128
69,140
4,027
148,911
142,190
6,721
94,483
69,240
3,410
147,913
141,187
6,726
95,037
69,392
3,105
148,624
141,783
6,841
95,470
69,567
3,027
7,089
3,618
7,308
3,284
7,729
3,183
7,483
3,287
7,250
9,108
9,367
16,588
8,658
9,790
8,036
16,808
9,521
16,477
9,265
9,572
16,524
7,208
2,501
5,032
12,432
6,733
5,036
368,463
7,215
58,343
670,587
2,494
5,053
12,932
6,746
5,012
366,552
7,231
57,905
662,447
2,508
5,032
12,716
6,718
4,988
369,850
7,308
58,272
671,614
2,475
4,941
12,494
6,846
371,198
7,335
57,663
681,410
2,508
4,987
12,843
6,809
5,030
370,180
7,355
57,195
676,565
189,187
722
134,580
4,362
1,638
31,155
7,562
1,272
7,897
254,414
77,248
72,148
191,696
608
130,093
4,342
3,010
35,465
7,356
1,562
9,258
255,559
76,701
71,721
181,665
634
126,297
4,766
1,893
30,927
7,790
1,394
7,964
256,708
76,076
71,122
195,657
809
134,634
4,507
2,824
33,545
138,029
4,610
1,236
35,523
8,268
8,628
1,512
9,556
258,406
76,781
71,844
1,223
9,231
259,100
76,557
71,597
260,126
76,036
71,165
1,338
7,890
260,453
75,295
70,487
4,325
756
22
174,893
143,293
21,522
496
4,348
4,285
792
23
177,167
145,050
21,677
501
4,679
4,178
780
22
178,858
146,607
21,666
498
4,879
4,164
764
26
180,632
148,175
21,789
495
4,991
4,124
789
24
181,624
149,237
21,856
477
5,038
4,142
797
20
182,543
149,915
22,114
476
5,019
4,065
783
23
184,090
151,337
22,232
488
5,004
4,065
724
19
185,158
152,256
22,361
476
5,155
5,235
101,817
5,260
95,763
5,207
94,791
5,182
93,072
5,016
94,380
5,019
100,769
5,028
96,406
4,910
92,249
642
1,146
16,464
2,013
2,421
15,978
434
9,101
16,269
1,071
11,596
16,096
677
4,275
15,757
190
5,354
14,842
3,746
4,065
14,739
3,118
5,985
13,281
57,163
627,681
56,885
616,662
58,504
626,354
58,022
618,132
58,046
627,197
57,208
636,772
59,218
632,040
59,765
613,966
44,200
44,338
44,232
44,216
44,417
44,638
44,525
44,612
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes securities sold under agreements to repurchase.
8,001
18,379
4,312
70,716
3,911
66,806
15,263
48,872
6,462
42,410
2,671
Loans
31,229
Federal funds sold 1
20,692
To commercial banks
7,998
To nonbank brokers and dealers in securities.
2,539
To others
376,552
Other loans, gross
149,479
Commercial and industrial
Bankers' acceptances and commercial
4,014
paper
145,465
All other
138,910
U.S. addresses
6,556
Non-U.S. addressees
92,475
Real estate
68,202
To individuals for personal expenditures
To financial institutions
3,272
Commercial banks in the United States.. . .
6,984
Banks in foreign countries
Sales finance, personal finance companies,
10,252
etc
16,362
Other financial institutions
9,734
To nonbank brokers and dealers in securities.
To others for purchasing and carrying
2,506
securities 2
4,974
To finance agricultural production
12,312
All other
6,614
LESS: Unearned income
5,007
Loan loss reserve
364 931
Other loans, net
7,109
Lease financing receivables
57,065
All other assets
671,881
Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
47
Individuals, partnerships, and corporations..
48
States and political subdivisions
49
U.S. government
50
Commercial banks in the United States
51
Banks in foreign countries
52
Foreign governments and official institutions.
53
Certified and officers'checks
54 Time and savings deposits
55
Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for
profit
58
Domestic governmental units
59
All other
60
Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions,
and banks
66 Federal funds purchased 3
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks
68
Treasury tax-and-loan notes
69
All other liabilities for borrowed money
70 Other liabilities and subordinated note and
debentures
71 Total liabilities
8,121
8,483
2,536
5,021
12,674
6,777
5,011
199,308
828
193,740
733
134,648
4,630
939
34,720
8,067
1,581
8,422
5,055
368,615
7,379
57,533
658,578
179,114
646
126,990
4,332
727
30,524
6,668
4. This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
Weekly Reporting Banks
All
1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £1 Billion or More on
December 31, 1977 Assets and Liabilities
Millions of dollars, Wednesday figures
1979
Account
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivision, by maturity.
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds soldi
20
To commercial banks
21
To nonbank brokers and dealers in securities.
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers' acceptances and commercial
paper
26
Allother
27
U.S. addresses
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies,
34
35
36
37
38
39
40
41
42
43
44
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Oct. 3?
Oct. 10?
Oct. 17?
Oct. 24*
53,018
49,948
50,182
46,585
51,164
53,681
52,567
44,848
15,600
14,787
16,218
13,833
16,085
17,005
17,258
15,367
29,826
471,958
24,752
469,131
27,034
474,653
30,180
469,793
26,810
31,370
476,568
34,546
470,436
30,233
466,508
34,390
5,286
29,104
8,149
16,897
4,058
65,543
5,071
60,472
13,535
44,396
5,793
38,603
2,541
34,650
5,508
29,142
8,137
17,028
3,976
65,296
4,772
60,524
13,555
44,417
5,774
38,643
2,551
33,609
4,887
28,722
7,671
17,070
3,981
65,486
4,492
60,993
13,946
44,522
5,739
38,783
2,525
33,352
4,896
28,456
7,374
17,078
4,005
65,510
4,368
61,142
13,994
44,638
5,759
38,879
2,511
14,043
44,671
5,938
38,733
2,503
33,618
5,128
28,490
7,591
16,906
3,993
65,550
4,257
61,293
14,094
44,712
5,916
38,796
2,486
33,288
4,878
28,410
7,509
16,876
4,024
65,600
4,069
61,531
14,312
44,714
5,831
38,883
2,505
32,855
4,430
28,425
7,499
16,918
4,008
65,425
3,839
61,586
14,231
44,847
5,870
38,977
2,508
29,052
18,872
7,704
2,477
353,769
141,947
26,758
16,041
8,062
2,655
353,294
142,370
29,125
19,226
7,250
2,649
357,365
143,965
26,515
5,926
2,408
355,336
144,162
29,278
17,657
7,479
4,142
358,455
144,888
28,464
19,175
6,505
2,785
359,887
145,360
23,638
15,641
5,504
2,493
358,907
143.736
21,873
14,687
4,760
2,426
357,411
144,182
3,917
138,030
131,529
6,501
86,921
60,418
3,834
138,536
132,068
6,467
87,405
60,585
3,741
140,223
133,736
6,488
87,927
60,796
4,050
140,112
133,573
6,538
88,139
61,050
3,850
141,037
134.508
6,529
88,486
61,219
3,928
141,432
134,762
6,670
88,832
61,315
3,316
140,419
133.737
89,377
61,442
3,015
141,167
134,371
6,796
89,813
61,597
3,184
6,937
3,184
7,064
2,979
7,146
2,954
7,021
3,547
7,249
3.208
7,660
3,115
7,426
3,213
7,170
10,061
9,879
16,127
8,325
9,770
16,117
9,707
8,911
15,698
7,936
9,168
16,101
8,545
9,592
16,317
8,388
9,320
16,013
9,169
9,374
16,065
7,112
2,281
2,297
4,855
12,100
6,153
4,718
347,584
7,115
56,742
632.509
2,322
4,845
12,047
6.209
4,742
348,936
7,143
56,136
641,903
6,235
4,761
347,911
7,161
55,644
637,612
6,269
4,786
346,356
7,184
55,964
620,105
15,901
Other financial institutions
9,591
To nonbank brokers and dealers in securities.
To others 2 for purchasing and carrying
2,306
securities
4,796
To finance agricultural production
11,707
All other
6,061
LESS : Unearned income
4,735
Loan loss reserve
342,973
Other loans, net
6,919
Lease financing receivables
55,498
All other assets
632,819
Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
47
Individuals, partnerships, and corporations..
48
States and political subdivisions
49
U.S. government
50
Commercial banks in the United States
51
Banks in foreign countries
52
Foreign governments and official institutions .
53
Certified and officers' checks
54 Time and savings deposits
55
Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for
profit
58
Domestic governmental units
59
All other
60
Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions,
and banks
66 Federal funds purchased 3
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks
68
Treasury tax-and-loan notes
69
All other liabilities for borrowed money
70 Other liabilities and subordinated note and
debentures
71 Total liabilities
72 Residual (total assets minus total liabilities)4...
61,218
6,682
6,170
4,762
346,432
7,023
56,849
631,959
4,877
12,307
6,180
4,740
344,415
7,039
56,383
623,813
186,259
781
129,760
4,332
902
33,928
7,244
1,469
7,843
234,920
71,894
67,191
177,935
690
125,691
3,829
1,475
29,864
7,497
1,267
7,621
236,973
71,693
67,006
180,454
585
121,357
3,779
2,728
34,171
7,296
1,562
8,976
238,182
71,224
66,626
170,699
609
117,837
4,016
1,680
29,730
7,726
1,380
7,720
239,271
70,638
66,069
184,087
773
125,674
3,991
2,624
32,055
8,217
1,512
9,241
240,750
71,301
66,742
187,487
794
128,862
4,024
1,141
33,943
8,571
1,222
8,930
241,432
71,108
66,524
182,131
705
125,551
4,032
832
33,368
7,972
1,548
8,123
242,444
70,623
66,121
168,224
619
118,459
3,682
671
29,242
6,612
1,337
7,602
242,866
69,932
65,492
4,002
681
163,025
133,643
19,527
489
4,140
3,967
698
21
165,281
135,399
19,670
494
4,466
3,867
710
20
166,958
136,951
19,656
492
4,660
3,848
697
24
168,634
138,428
19,786
488
4,757
3,820
717
22
169,448
139,306
19,858
470
4,806
3,833
732
19
170,323
139,934
20,117
469
4,791
3,760
720
21
171,821
141,288
20,254
481
4,776
3,763
660
17
172,934
142,228
20,407
470
4,924
5,226
96,556
5,251
90,724
5,198
89,708
5,174
88,047
5,008
89,345
5,012
95,502
5,023
91,567
4,905
87,226
631
1,046
16,063
1,908
2,239
15,613
429
8,469
15,901
1,038
10,770
15,682
670
3,963
15,269
182
4,980
14,487
3,638
3,750
14,363
2,932
5,532
12,998
55,911
591,386
55,708
581,101
57,364
590,506
56,828
582,335
56,823
590,906
56,003
600,074
57,993
595,886
58,514
578,293
41,433
41,548
41,453
41,478
41,603
41,829
41,725
41,812
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes securities sold under agreements to repurchases.
31,838
3,968
27,870
7,304
16,580
3,987
65,893
4,676
2,299
4,809
11,246
6,115
4,751
342,428
6,995
57,038
622,649
20
2,294
4,855
18,181
474,594
11,808
2,290
4,811
12,208
Oct. 31?
2,259
4,765
11,862
4. This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
A22
DomesticNonfinancialStatistics • November 1979
1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1979
Account
Sept. 19
Sept. 26
Oct. 3»
Oct. 10?
Oct. 17?
16,952
17,346
19,311
17,624
18,654
20,210
10,129
10,503
11,588
9,335
11,291
11,737
7,471
109,217
5,522
107,588
4,868
112,263
7,060
107,559
5,476
109,678
6,522
1,320
4,644
558
6,644
1,450
4,636
558
6,590
1,384
4,647
558
6,157
1,049
4,550
558
11,359
1,912
8,900
1,361
7,539
548
11,421
1,920
8,958
1,374
7,584
544
11,648
2,145
8,963
1,339
7,623
541
8,015
3,698
3,452
865
85,784
44,221
6,858
3,054
2,959
845
85,149
44,394
1,182
43,039
40,802
2,236
11,649
7,832
Oct. 31?
20,563
16,652
18,045
12,451
10,846
11,846
8,435
108,838
10,533
108,546
6,172
106,930
8,997
108,510
6,004
1,064
4,376
563
6,303
1,309
4,427
567
6,299
1,310
4,411
578
6,311
1,324
4,409
578
6,314
1,343
4,385
586
11,662
2,145
8,981
1,352
7,629
535
11,742
2,146
9,041
1,409
7,632
555
11,753
2,155
9,050
1,405
7,645
548
11,962
2,374
9,041
1,384
7,657
547
11,959
2,371
9,037
1,386
7,650
551
11,939
2,356
9,028
1,400
7,628
555
9,758
6,427
2,662
669
86,758
45,327
7,282
4,463
2,091
727
84,959
45,338
7,977
4,323
2,471
1,183
86,434
45,434
6,777
3,044
2,822
911
86,495
45,608
5,762
2,452
2,486
824
87,014
44,947
5,755
3,156
1,848
751
85,403
44,969
5,749
3,198
1,823
728
87,034
45,383
1,158
43,236
41,118
2,118
11,696
7,876
1,190
44,137
41,981
2,156
11,774
7,932
1,567
43,771
41,602
2,169
11,805
7,970
1,264
44,169
42,068
2,101
11,881
8,005
1,327
44,282
42,067
2,215
11,840
8,029
923
44,024
41,792
2,232
11,926
8,049
820
44,148
41,889
2,259
11,949
8,052
1,228
44,155
42,025
2,130
12,062
8,100
1,031
3,236
1,236
3,326
983
3,317
965
3,157
1,486
3,370
1,191
3,762
1,157
3,518
1,246
3,339
1,684
3,208
ETC
3,940
4,796
Other financial institutions
5,656
To nonbank brokers and dealers in securities.
To others 4 for purchasing and carrying
476
securities
226
To finance agricultural production
2,720
All other
892
LESS: Unearned income
1,571
Loan loss reserve
83,321
Other loans, net
1,381
Lease financing receivables
All other assets 5
27,533
172,683
Total assets
3,821
4,834
4,559
3,762
4,814
5,586
3,154
4,753
4,105
3,356
4,886
4,513
3,583
4,866
4,133
3,418
4,875
5,330
3,449
4,894
3,953
3,574
5,058
4,180
479
236
2,691
903
1,581
82,665
1,385
29,081
171,426
464
253
2,544
912
1,579
84,266
1,400
27,746
177,176
466
250
2,997
938
1,563
82,459
1,397
26,794
169,770
468
251
2,784
921
1,558
83,955
1,420
26,543
173,062
458
243
2,782
929
1,560
84,005
1,422
27,379
178,022
457
237
3,098
921
1,569
84,523
1,420
26,436
179,950
438
246
2,867
928
1,572
82,904
1,424
26,748
168,771
444
249
3,093
938
1,587
84,508
1,424
27,410
176,232
58,509
365
29,494
385
348
17,595
5,721
925
3,676
41,146
9,924
9,364
63,735
306
29,064
375
793
21,405
5,466
1,269
5,057
41,490
9,858
9,299
57,383
327
27,727
406
356
17,635
5,923
1,075
3,934
41,800
9,765
9,201
62,566
409
30,701
443
639
18,583
6,205
1,144
4,441
42,436
9,903
9,324
64,047
471
32,238
429
165
18,932
6,494
914
4,403
42,720
9,889
9,307
63,865
383
30,693
489
172
20,424
6,208
1,244
4,250
42,751
9,802
9,219
56,493
340
28,293
397
140
17,796
4,796
877
3,854
42,254
9,693
9,141
61,880
394
31,879
434
229
18,765
5,626
722
3,830
42,903
9,511
8,993
400
149
11
31,222
25,495
1,564
69
1,244
392
156
10
31,632
25,875
1,554
60
1,315
390
160
14
32,035
26,171
1,599
59
1,384
387
180
13
32,533
26,715
1,564
40
1,434
385
188
32,831
26,971
1,636
48
1,418
373
197
12
32,950
27,050
1,664
51
1,437
365
178
8
32,560
26,678
1,713
50
1,457
358
149
11
33,391
27,391
1,772
48
1,511
2,849
28,555
2,827
27,288
2,822
26,640
2,780
25,426
2,757
28,729
2,748
26,827
2,663
24,456
2,670
27,983
200
1,867
8,134
394
656
7,447
990
7,258
2,390
786
6,960
578
1,177
7,356
941
6,390
Securities
2
5 U.S. Treasury securities
6 Trading account2
7 Investment account, by maturity
One year or less
8
9
Over one through five years
10
Over five years
11 Other securities2
12 Trading account2
13 Investment account
14
U.S. government agencies
15
States and political subdivision, by maturity.
16
One year or less
17
Over one year
18
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold 3
20 To commercial banks
21 To nonbank brokers and dealers in securities.
22 To others
23 Other loans, gross
24 Commercial and industrial
25
Bankers' acceptances and commercial
paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies,
37
38
39
40
41
42
43
44
Sept. 12
Oct. 24?
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
4 Total loans and securities1
34
35
36
Sept. 5
Deposits
60,875
45 Demand deposits
405
46 Mutual savings banks
47 Individuals, partnerships, and corporations... 31,854
658
48 States and political subdivisions
118
49
U.S. government
17,768
50 Commercial banks in the United States
5,391
51
Banks in foreign countries
1,114
52 Foreign governments and official institutions.
3,566
53 Certified and officers' checks
40,552
54 Time and savings deposits
9,930
55 Savings
9,361
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for
407
profit
151
58
Domestic governmental units
11
59
All other
30,622
60 Time
61
Individuals, partnerships, and corporations. 25,048
1,510
62
States and political subdivisions
70
63
U.S. government
1,170
64
Commercial banks in the United States
65
Foreign governments, official institutions,
2,824
and banks
29,369
66 Federal funds purchased 6
Other liabilities for borrowed money
67 Borrowings from Federal Reserve Banks . . . .
138
68 Treasury tax-and-loan notes
7,827
69 All other liabilities for borrowed money
70 Other liabilities and subordinated note and
20,327
debentures
159,088
71 Total liabilities
72 Residual (total assets minus total liabilities)7..
13,595
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Other than financial institutions and brokers and dealers.
930
516
7,694
i
,764
7,993
20,582
157,779
163,551
156,272
20,246
20,499
159,424
164,327
166,349
155,168
162,489
13,647
13,625
13,498
13,638
13,694
13,601
13,603
13,743
20,428
21,279
9
22,769
22,854
22,392
5. Includes trading account securities.
6. Includes securities sold under agreements to repurchase.
7. This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
Weekly Reporting Banks
A23
1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1979
Category
3p Oct. 10*> Oct. 17 p Oct. 24? Oct. 31p
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Oct.
1 Total loans (gross) and investments adjusted*... 491,364
383,817
2 Total loans (gross) adjusted i
105,466
3 Demand deposits adjusted 2
491,673
384,117
104,041
494,184
387,462
100,524
490,509
384,018
99,825
495,487
390,130
105,711
496,240
389,462
105,981
493,783
387,272
103,121
490,768
384,891
100,842
493,447
387,346
105,322
4 Time deposits in accounts of $100,000 or more. 118,028
83,836
5 Negotiable CDs
34,192
6 Other time deposits
120,006
85,708
34,298
121,234
86,747
34,486
122,462
87,853
34,609
123,217
88,336
34,881
123,878
88,799
35,079
125,124
89,692
35,433
125,676
90,102
35,575
126,343
90,664
35,678
3,757
2,770
987
3,747
2,742
1,006
3,704
2,751
953
3,724
2,772
952
3,606
2,685
922
3,600
2,681
919
3,589
2,653
936
3,570
2,623
947
3,633
2,648
985
10 Total loans (gross) and investments adjustedi... 460,698
360,765
11 Total loans (gross) adjusted i
98,412
12 Demand deposits adjusted 2
460,772
360,826
96,648
463,381
364,285
93,373
459,577
360,715
92,703
464,260
366,529
98,244
465,136
365,968
98,721
462,676
363,789
95,364
459,664
361,385
93,463
462,452
363,933
97,776
13 Time deposits in accounts of $100,000 or more. 110,312
78,063
14 Negotiable CDs
32,250
112,284
79,948
32,335
113,558
81,022
32,537
114,706
82,033
32,674
115,332
82,385
32,947
115,986
82,816
33,171
117,200
83,710
33,490
117,839
84,198
33,641
118,486
84,757
33,729
3,705
2,751
954
3,694
2,722
972
3,653
2,730
923
3,672
2,750
923
3,556
2,664
892
3,549
2,659
889
3,536
2,631
906
3,506
2,590
916
3,576
2,621
955
19 Total loans (gross) and investments adjusted i. 4. 106,952
89,070
26,036
21 Demand deposits adjusted 2
105,782
87,717
23,219
107,345
89,106
22,226
104,632
86,813
21,768
106,348
88,602
24,690
107,093
89,037
24,739
107,428
89,167
22,705
105,026
86,756
21,905
106,153
87,900
24,840
25,006
17,467
7,539
25,295
17,741
7,554
25,683
18,108
7,575
26,065
18,447
7,618
26,309
18,566
7,743
26,402
18,609
7,793
26,053
18,227
7,826
26,714
18,810
7,904
BANKS WITH ASSETS OF $ 7 5 0 MILLION OR MORE
7 Loans sold outright to affiliates 3
8 Commercial and industrial
9 Other
BANKS WITH ASSETS OF $1 BILLION OR MORE
16 Loans sold outright to affiliates 3
18
Other
BANKS IN NEW YORK CITY
22 Time deposits in accounts of $100,000 or more.
23 Negotiable CDs
24,481
17,022
7,459
1. Exclusive of loans and federal funds transactions with domestic commercial banks.
2. All demand deposits except U.S. government and domestic banks
less cash items in process of collection.
3. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank) and nonconsolidated nonbank subsidiaries of the
holding company.
4. Excludes trading account securities.
A24
DomesticNonfinancialStatistics • November 1979
1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial
Loans
Millions of dollars
Outstanding
Net change during
1979
Industry classification
1979
June 27
July 25
Aug. 29
Sept. 26
Oct. 31*
1 Durable goods manufacturing
20,905
21,521
21,703
23,594
2 Nondurable goods manufacturing...
3 Food, liquor, and tobacco
4 Textiles, apparel, and leather
5 Petroleum refining
6 Chemicals and rubber
7 Other nondurable goods
17,403
4,371
4,701
1,967
3,448
2,916
17,612
4,348
4,860
1,929
3,437
3,038
18,441
4,598
5,090
1,841
3,641
3,270
18,907
4,906
5,029
1,972
3,627
3,372
8 Mining (including crude petroleum
and natural gas)
1979
Aug.
Q2
Q3
23,453
1,323
2,689
182
1,891
-141
18,969
4,922
4,858
2,140
3,809
3,239
-89
-440
495
-310
-63
230
1,504
535
328
6
179
456
829
250
231
-88
204
232
466
308
-62
131
-14
102
62
17
-170
167
182
-134
Sept.
Oct.
11,008
11,221
11,442
11,681
11,736
858
673
221
240
54
9 Trade
10 Commodity dealers
11 Other wholesale
12 Retail
23,976
1,917
11,741
10,318
25,029
2,100
12,075
10,854
24,396
1,675
12,038
10,683
24,662
1,859
11,940
10,863
25,274
2,212
12,101
10,962
1,493
25
777
692
686
-58
199
544
-633
-424
-37
-171
266
184
-98
180
612
353
160
99
14
15
16
13 Transportation, communication, and
other public utilities
Transportation
Communication
Other public utilities
15,324
6,451
2,050
6,823
15,396
6,495
2,106
6,794
15,788
6,691
2,139
6,959
16,761
6,834
2,325
7,602
16,785
6,998
2,400
7,386
1,256
180
199
877
1,436
382
274
779
393
195
33
164
972
143
186
643
24
164
76
-216
17 Construction
18 Services
19 All other i
5,583
17,250
15,040
5,861
17,822
13,925
5,805
18,082
14,193
5,891
18,359
13,720
5,699
18,786
14,135
210
1,177
1,076
308
1,109
-1,320
-56
260
268
86
277
-473
-192
428
415
126,490
128,387
129,851
133,575
134,838
7,306
7,085
1,463
3,724
1,262
64,240
63,586
65,293
67,391
68,514
3,725
3,152
1,708
2,098
1,122
20 Total domestic loans
21 MEMO: Term loans (original maturity
more than 1 year) included in
domestic loans
1. Includes commercial and industrial loans at a few banks with assets
of $1 billion or more that do not classify their loans.
NOTE. New series. The 134 large weekly reporting commercial banks
with domestic assets of $1 billion or more as of December 31, 1977 are
included in this series. The revised series is on a last-Wednesday-of-themonth basis.
1.311 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
Source
1
2
3
4
5
6
Total nondeposit funds2
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other borrowings from
nonbanks 3
Seasonally adjusted 3
Not seasonally adjusted
Net Eurodollar borrowings, not seasonally adjusted.
Loans sold to affiliates, not seasonally adjusted 4 ....
December outstanding
1976
1977
1978
c
54.6
c
62.7
61.3
84.9
83.9
58.4
57.0
—1.3
4.8
74.8
73.8
6.3
3.8
53.3
47.1
45.8
c
3.7
3.8
c
Outstanding in 1979
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
83.1
82.2
95.8
93.7
100.8
98.5
104.9
102.6
111.2
113.4
115.8
115.6
119.5
122.2
130.3
131.9
73.2
72.3
6.3
3.6
80.2
78.1
12.0
3.6
81.0
78.7
16.3
3.5
82.3
80.1
18.9
3.6
84.3
86.5
23.2
3.7
84.5
84.3
27.5
3.8
86.6
89.3
29.1
3.7
92.9
94.5
33.8
3.7
—10.2
-6.3
c
24.9 23.3
c
14.7 17.0
-4.5
22.5
18.0
-1.9
21.6
19.7
2.6
19.7
22.3
5.8
20.0
25.7
6.3
20.1
26.3
8.9
19.2
28.1
MEMO
7 Domestic chartered banks net positions with own
foreign branches, not seasonally adjusted 5
8 Gross due from balances
9 Gross due to balances
10 Foreign-related institutions net positions with
directly related institutions, not seasonally
adjusted 6
11 Gross due from balances
12 Gross due to balances
13 Security RP borrowings, seasonally adjusted7
14 Not seasonally adjusted
15 U.S. Treasury demand balances, seasonally
adjusted 8
16 Not seasonally adjusted
17 Time deposits, $100,000 or more, seasonally
adjusted 9
18 Not seasonally adjusted
- 6 . 0 -12.5 -10.7
12.8
21.1
25.5
6.8
8.6
14.8
9.7
8.3
18.1
27.9
27.0
11.1
10.3
21.4
36.3
35.1
17.0
14.2
31.2
43.8
42.4
16.4
15.4
31.7
43.8
40.8
18.3
15.0
33.3
42.9
41.4
20.8
15.3
36.0
42.7
42.2
20.8
15.7
36.5
43.0
42.5
20.6
15.9
36.5
42.2
44.8
21.7
17.6
39.3
45.0
44.5
22.8
17.6
40.4
42.8
42.5
24.9
16.2
41.0
40.9
42.5
3.9
4.4
4.4
5.1
8.6
10.2
12.0
11.9
8.0
8.3
6.2
6.5
5.1
5.3
9.3
8.4
9.2
10.8
15.3
13.2
12.4
9.8
136.0
138.4
159.8
162.5
204.4
207.8
209.0 212.1
209.7 209.3
208.4
207.8
202.1
200.4
196.8
196.0
189.6
189.4
190.4
188.9
192.6
192.7
1. Commercial banks are those in the 50 states and the District of
Columbia with national or state charters plus U.S. branches, agencies,
and New York investment company subsidiaries of foreign banks and
Edge Act corporations.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from nonbanks and not seasonally adjusted net Eurodollars and
loans to affiliates. Includes averages of Wednesday data for domestic
chartered banks and averages of current and previous month-end data for
foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a
promissory note or due bill, given for the purpose of borrowing money
for the banking business. This includes borrowings from Federal Reserve
http://fraser.stlouisfed.org/
Banks and from foreign banks, term federal funds, overdrawn due from
Federal Reserve Bank of St. Louis
c
bank balances, loan RPs, and participations in pooled loans. Includes
averages of daily figures for member banks and averages of current and
previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that
are still held by affiliates. Averages of Wednesday data.
5. Includes averages of daily figures for member banks and quarterly
call report figures for nonmember banks.
6. Includes averages of current and previous month-end data.
7. Based on daily average data reported by 46 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax and loan
notes at commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
Deposits and Commercial Paper
A25
1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations 1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1 All holders—Individuals, partnerships, and
corporations
3 Nonfinancial business
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
19792
1978
1977
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
250.1
274.4
271.2
278.8
294.6
270.4
285.6
292.4
22.3
130.2
82.6
2.7
12.4
25.0
142.9
91.0
2.5
12.9
25.7
137.7
92.9
2.4
12.4
25.9
142.5
95.0
2.5
13.1
27.8
152.7
97.4
2.7
14.1
24.4
135.9
93.9
2.7
13.5
25.4
145.1
98.6
2.8
13.7
26.7
148.8
99.2
2.8
14.9
6 Other
Weekly reporting banks
7 All holders—Individuals, partnerships, and
9 Nonfinancial business
12 Other
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
19793
1978
Sept.
Oct.
Nov.
Dec.
Mar.
June
Sept.
139.1
139.7
141.3
142.7
147.0
121.9
128.8
132.7
18.5
76.3
34.6
2.4
7.4
18.9
74.1
37.1
2.4
7.3
19.1
75.0
37.5
2.5
7.2
19.3
75.7
37.7
2.5
7.5
19.8
79.0
38.2
2.5
7.5
16.9
64.6
31.1
2.6
6.7
18.4
68.1
33.0
2.7
6.6
19.7
69.1
33.7
2.8
7.4
3. After the end of 1978 the large weekly reporting bank panel was
changed to 170 large commercial banks, each of which had total assets in
domestic offices exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the May 1978 BULLETIN. Beginning in March
1979, demand deposit ownership estimates for these large banks
are constructed quarterly on the basis of 97 sample banks and are not
comparable with earlier data. The following estimates in billions of dollars
for December 1978 have been constructed for the new large-bank panel:
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8;
foreign, 2.5; other, 6.8.
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks.
Types of depositors in each category are described in the June 1971
BULLETIN, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership
survey sample was reduced to 232 banks from 349 banks, and the estimation procedure was modified slightly. To aid in comparing estimates
based on the old and new reporting sample, the following estimates in
billions of dollars for December 1978 have been constructed using the new
smaller sample: financial business, 27.0; nonfinancial business, 146.9;
consumer, 98.3; foreign, 2.8; and other, 15.1.
1.33 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Instrument
1976
Dec.
1978
Dec.
1977
Dec.
1979
Mar.
Apr.
May
June
July
Aug.
Sept.
Commercial paper (seasonally adjusted)
Financial companies i
Dealer-placed paper 2
2 Total
3 Bank-related
Directly placed paper 3
4
Total
52,971
65,101
83,665
90,796
92,725
96,106 101,516 102,447 103,907 107,621
7,261
1,900
8,884
2,132
12,296
3,521
14,247
3,793
14,961
4,251
15,551
4,141
16,537
3,826
17,042
3,951
17,379
4,062
18,207
4,485
32,511
5,959
40,484
7,102
51,630
12,314
55,653
12,642
55,313
12,788
57,886
13,799
61,256
15,130
60,532
14,722
60,402
15,817
61,369
15,930
13,199
15,733
19,739
20,896
22,451
22,669
23,723
24,873
26,126
28,045
Bankers dollar acceptances (not seasonally adjusted)
7 Total
Holder
8 Accepting banks
9 Own bills
10 Bills bought
Federal Reserve Banks
12 Foreign correspondents
13 Others
Basis
15 Exports from United States
16 All other
22,523
25,450
33,700
34,617
34,391
35,286
36,989
39,040
42,354
42,147
10,442
8,769
1,673
10,434
8,915
1,519
8,579
7,653
927
7,645
6,535
1,110
7,535
6,685
849
7,844
6,895
950
8,180
6,956
1,224
r
7,243
r
'8,288
l,045
7,994
7,138
856
8,419
7,288
831
991
375
10,715
954
362
13,904
1
664
24,456
204
793
25,975
252
861
25,744
0
940
26,501
1,400
1,159
971
952
27,837 '28,641
475
957
32,928
1,053
1,470
31,205
4,992
4,818
12,713
6,378
5,863
13,209
8,574
7,586
17,540
9,281
8,104
17,232
8,679
8,087
17,625
9,007
8,367
17,912
9,202
8,599
19,189
9,847
9,578
22,929
9,724
9,354
23,069
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
Digitized for underwriting;
FRASER and other investment activities.
2. Includes all financial company paper sold by dealers in the open
http://fraser.stlouisfed.org/
market.
Federal Reserve Bank of St. Louis
9,499
8,784
20,756
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 1979
1.34 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
1978—Nov. 1
10%
6
1TA
17,
24,
11%
Dec. 26
1W
1979—June 19
11%
1134
July 27,
Month
Rate
Effective date
Rate
Effective date
12
1979—Aug. 16..
28..
1978—Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
12%
1234
Sept. 7, ,
14
21
28. .
13
13%
13%
14%
Oct. 9,
23, .
Average
rate
8.00
8.27
8.63
9.00
9.01
9.41
9.94
10.94
11.55
15
Month
Average
rate
1979—Jan
11.75
11.75
11.75
11.75
11.75
11.65
11.54
11.91
12.90
14.39
July
Sept
1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-11, 1979
Size of loan (in thousands of dollars)
Item
sizes
1-24
25-49
50-99
100-499
1,000
and over
500-999
SHORT-TERM COMMERCIAL AND
INDUSTRIAL LOANS
1 Amount of loans (thousands of dollars)
3 Weighted average maturity (months)
4 Weighted average interest rate (percent per
5
Interquartile range1
Percentage of amount of loans
7 Made under commitment
8,295,363
148,187
2.7
881,138
115,179
3.2
521,863
15,657
2.9
461,301
7,224
3.1
1,402,779
7,779
3.2
678,498
1,063
2.9
4,349,784
1,286
2.3
12.31
12.23
12.44
12.53
12.42
12.61
12.21
11.75-12.82 11.02-13.65 10.60-13.69 11.75-13.52 11.75-13.25 11.99-13.03 11.75-12.40
49.0
46.0
19.6
26.5
21.4
42.8
32.3
40.2
41.6
45.3
57.8
59.9
61.0
49.0
169,065
847
45.4
120,865
177
51.2
1,240,055
581
44.5
LONG-TERM COMMERCIAL AND
INDUSTRIAL LOANS
8 Amount of loans (thousands of dollars)
10 Weighted average maturity (months)
11 Weighted average interest rate (percent per
annum)
12 Interquartile range1
Percentage of amount of loans
13 With floating rate
1,888,708
29,692
45.1
358,723
28,087
44.9
12.25
11.57-12.97
12.57
11.00-14.09
48.8
49.2
32.8
26.3
12.82
12.91
12.02
12.00-13.75 12.25-13.75 11.57-12.50
58.1
56.1
68.2
67.4
50.3
53.1
CONSTRUCTION AND
LAND DEVELOPMENT LOANS
15 Amount of loans (thousands of dollars)
17 Weighted average maturity (months)
18 Weighted average interest rate (percent per
Percentage of amount of loans
Type of construction
23 1- to 4-family
895,394
21,106
7.4
139,974
16,444
5.4
88,809
2,503
4.0
66,913
968
7.2
186,534
966
8.8
413,165
225
8.7
11.49
12.79
12.52
12.49
12.95
11.30-13.75 10.34-12.40 11.46-12.96 12.00-13.75 12.34-14.00
12.64
11.00-13.75
60.6
91.0
71.5
14.3
82.4
63.2
24.9
96.5
66.8
57.1
95.9
67.9
68.8
85.7
75.0
80.7
94.2
74.3
40.1
9.4
50.5
82.5
1.8
15.6
84.8
5.1
10.1
53.8
13.5
32.7
41.9
13.8
44.3
13.1
10.3
76.6
All
sizes
1-9
10-24
25-49
50-99
100-249
250
and over
LOANS TO FARMERS
27 Number of loans
29 Weighted average interest rate (percent per
By purpose of loan
33 Other current operating expenses
34 Farm machinery and equipment
35 Other
817,603
59,186
6.2
150,832
42,815
6.9
116,791
3,574
8.0
150,651
2,363
5.6
184,649
1,280
4.2
88,578
184
4.5
11.28
10.86
11.08
10.89
11.12
11.57
12.40
10.34-12.00 10.25-11.41 10.34-11.52 10.25-11.50 10.25-11.61 11.00-12.13 11.00-13.54
11.18
11.08
11.37
10.87
11.50
1. Interest rate range that covers the middle 50 percent of the total
dollar amount of loans made.
126,103
8,970
6.6
10.61
10.81
10.89
10.83
10.98
11.12
10.58
11.06
10.98
11.67
10.39
11.49
10.93
11.15
10.87
11.36
10.58
11.23
2
11.50
11.05
12.29
12.51
2
11.82
12.58
2
12.12
2
( )
12.59
2. Fewer than 10 sample loans,
NOTE. For more detail, see the Board's E. 2 (416) statistical release.
Securities Markets
1.36 INTEREST RATES
All
Money and Capital Markets
Averages, percent per annum
1979 , week ending
1979
Instrument
1976
1977
1978
July
Aug.
Sept.
Oct.
Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3
Money market rates
1 Federal funds*
Prime commercial p a p e r * 3
90-to 119-day
4- to 6-month
Finance company 2paper,
directly placed,
3- to 6-month ' 3
Prime bankers acceptances, 90-day3*4
Certificates of deposit, secondary market 5
1-month
3-month
6-month
Eurodollar deposits, 3-month6
5.05
5.54
7.94
10.47
10.94
11.43
13.77
11.91
12.00
13.22
15.14
15.61
5.24
5.35
5.54
5.60
7.94
7.99
9.87
9.82
10.43
10.39
11.63
11.60
13.23
13.23
11.79
11.76
13.13
13.18
13.35
13.32
14.10
14.10
n.a.
n.a.
5.22
5.19
5.49
5.59
7.78
8.11
9.39
9.99
9.82
10.62
10.59
11.70
11.76
13.44
10.76
12.04
11.39
13.49
11.82
13.59
12.50
14.32
n.a.
14.11
5.07
5.27
5.62
5.57
5.48
5.64
5.92
6.05
7.88
8.22
8.61
8.74
10.04
10.11
10.23
10.87
10.58
10.71
10.86
11.53
11.70
11.89
12.01
12.61
13.36
13.66
13.83
14.59
11.94
12.19
12.46
12.79
13.26
13.52
13.69
13.86
13.38
13.71
13.91
14.71
14.36
14.71
14.87
15.14
14.17
14.45
14.49
15.65
4.98
5.26
5.52
5.27
5.53
5.71
7.19
7.58
7.74
9.24
9.24
8.87
9.52
9.49
9.16
10.26
10.20
9.89
11.70
11.66
11.23
10.43
10.43
10.07
11.62
11.53
11.30
11.91
11.82
11.40
12.60
12.54
11.94
12.07
12.14
11.65
4.989
5.266
5.265
5.510
7.221
7.572
9.262
9.190
2
2
3
4
5
6
7
8
9
U.S. Treasury bills3-?
Secondary market
10
3-month
12
1-year
Auction average 8
9.450 10.182 11.472 10.313 10.808 11.836 12.932 12.256
9.450 10.125 11.339 10.327 10.662 11.716 12.651 12.193
Capital market rates
U . S . TREASURY NOTES AND BONDS
15
16
17
18
19
20
21
22
Constant maturities 9
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
23
24
Composite1 O
3 to 5 years
Over 10 years (long-term)
6.77
7.18
7.42
7.61
7.86
6.09
6.45
6.69
6.99
7.23
7.42
7.67
8.34
8.34
8.29
8.32
8.36
8.41
8.48
8.49
9.64
9.14
8.94
8.90
8.92
8.95
8.92
8.93
9.98
9.46
9.14
9.06
9.05
9.03
8.97
8.98
10.84
10.06
9.69
9.41
9.38
9.33
9.21
9.17
12.44
11.49
10.95
10.63
10.47
10.30
9.99
9.85
11.02
10.23
9.85
9.61
9.58
9.53
9.38
9.32
12.50
11.24
10.65
10.42
10.29
10.09
9.85
9.71
12.68
11.62
11.01
10.70
10.56
10.37
10.04
9.88
13.31
12.44
11.83
11.37
11.09
10.89
10.42
10.25
12.91
12.13
11.64
11.25
11.00
10.78
10.44
10.26
6.94
6.78
6.85
7.06
8.30
7.89
8.88
8.35
9.08
8.42
9.56
8.68
10.75
9.44
9.72
8.85
10.48
9.28
10.79
9.51
11.57
9.87
11.43
9.88
5.66
7.49
6.64
5.20
6.12
5.68
5.52
6.27
6.03
5.58
6.11
6.13
5.72
6.36
6.20
5.90
6.75
6.52
6.25
7.34
7.08
5.95
6.75
6.64
6.35
7.90
7.12
6.35
7.00
7.18
6.35
7.70
7.38
6.35
7.90
7.26
9.01
8.43
9.07
9.69
9.74
9.93
10.71
10.17
10.45
10.74
11.11
11.32
8.43
8.75
9.09
9.75
8.02
8.24
8.49
8.97
8.73
8.92
9.12
9.45
9.20
9.49
9.75
10.29
9.23
9.53
9.85
10.35
9.44
9.70
10.03
10.54
10.13
10.46
10.83
11.40
9.66
9.94
10.27
10.81
9.91
10.11
10.63
11.10
10.09
10.44
10.87
11.56
10.50
10.97
11.19
11.80
10.73
11.06
11.50
11.98
8.48
8.49
8.19
8.19
8.96
8.97
9.58
9.53
9.48
9.49
9.83
9.87
10.97
10.91
10.22
10.25
10.88
10.79
11.05
11.00
11.45
11.36
11.49
11.43
7.97
3.77
7.60
4.56
8.25
5.28
8.93
5.50
9.02
5.30
9.16
5.31
7.44
5.56
7.83
5.26
7.53
5.49
7.39
5.59
7.18
5.76
7.28
5.72
5.88
STATE AND LOCAL NOTES AND BONDS
Moody's series11
25 Aaa
26 Baa
27 Bond Buyer series12
CORPORATE BONDS
28 Seasoned issues, all industries13
By rating groups
29 Aaa
30 Aa
31 A
32 Baa
33
34
Aaa utility bonds 14
New issue
Recently offered issues
MEMO : Dividend /price ratio15
35 Preferred stocks
36 Common stocks
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 November 1977, unweighted average of offering rates
quoted by at least five dealers (in the case of commercial paper), or
finance companies (in the case of finance paper). Previously, most representative rate quoted by those dealers and finance companies.
3. Yields are quoted on a bank-discount basis.
4. Average of the midpoint of the range of daily dealer closing rates
offered for domestic issues.
5. Five-day average of rates quoted by five dealers (3-month series was
previously a 7-day average).
6. Averages of daily quotations for the week ending Wednesday.
7. Except for auction averages, yields are computed from daily closing
bid prices.
8.Rates are recorded in the week in which bills are issued.
9. Yield on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
10. Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. "Long-term" includes
all bonds neither due nor callable in less than 10 years, including several
very low yielding "flower" bonds.
11. General obligations only, based on figures for Thursday, from
Moody's Investors Service.
12. Twenty issues of mixed quality.
13. Averages of daily .figures from Moody's Investors Service.
14. 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.
15. Provided by Standard and Poor's Corporation.
A28
DomesticNonfinancialStatistics • November 1979
1.37 STOCK MARKET
Selected Statistics
1979
Indicator
1976
1978
1977
Apr.
May
June
July
Aug.
Sept.
Oct.
61.89
69.17
52.21
38.39
67.21
59.27
66.68
48.07
36.58
61 .64
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
4 Utility
54.45
60.44
39.57
36.97
52.94
53.67
57.84
41.07
40.91
55.23
53.76
58.30
43.25
39.23
56.74
57.50
63.64
45.92
38.63
59.50
56.21
62.21
45.60
37.48
58.80
57.61
63.57
47.53
38.44
61.87
58.38
64.24
48.85
38.88
64.43
61.19
67.71
52.48
39.26
68.40
6 Standard & Poor's Corporation (1941-43 = 10) i.. 102.01
98.18
96.11
102.10
99.73
101.73
102.71
107.36
108.60
104.47
7 American Stock Exchange (Aug. 31,1973 = 100). 101.63
116.18
144.56
181.14
180.81
196.08
197.63
208.29
223.00
212.33
20,936
2,514
28,591
3,922
31,033
4,262
28,352
3,888
34,662
5,236
32,416
3,890
35,870
4,503
37,576
5,405
37,301
5,446
Volume of trading (thousands of shares)
21,189
2,565
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers2
11 Margin stock 3
Free credit balances at brokers4
8,166
7,960
204
2
9,993
9,740
250
3
11,035
10,830
205
1
11,416
11,220
194
2
11,314
11,130
183
1
11,763
11,590
172
1
12,019
11,840
178
1
12,236
12,060
176
12,178
12,000
177
1
585
1,855
640
2,060
835
2,510
835
2,550
840
2,590
895
2,880
885
3,025
910
2,995
960
3,325
*
1
n. a.
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent
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
12.0
23.0
35.0
15.0
8.7
6.0
18.0
36.0
23.0
33.0
28.0
18.0
10.0
6.0
5.0
23.0
29.0
23.0
12.0
7.0
6.0
22.0
30.0
23.0
12.0
7.0
6.0
21.0
28.0
26.0
12.0
7.0
6.0
19.0
28.0
28.0
12.0
7.0
6.0
14.0
26.0
31.0
14.0
8.0
7.0
16.0
26.0
30.0
14.0
8.0
6.0
11.0
6.0
5.0
n.a.
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions oi dollars) 6 . . .
Distribution by equity status (percent)
24 Net credit status
Debit status, equity of
25 60 percent or more
26 Less than 60 percent
8,776
9,910
13,092
13,218
13,099
13,634
41.3
43.4
41.3
42.1
41.3
42.6
n. a.
47.8
10.9
44.9
11.7
45.1
13.6
47.6
10.3
48.6
10.1
47.3
10.1
1
JI
I
1
n.a.
i
1
n. a.
n. a.
n. a.
n. a.
n. a.
n. a.
n. a.
n. a.
Margin requirements (percent of market value and effective date)?
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility (formerly 60), and 40 financial.
2. Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended is end-of-month data for member firms of the New York
Stock Exchange.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
5. Each customer's equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
6. Balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based
on loan values of other collateral in the customer's margin account or
deposits of cash (usually sales proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act or 1934,
limit the amount of credit to purchase and carry margin stocks that may
be extended on securities as collateral by prescribing a maximum loan
value, which is a specified percentage of the market value of the collateral
at the time the credit is extended. Margin requirements are the difference
between the market value (100 percent) and the maximum loan value. The
term "margin stocks" is defined in the corresponding regulation.
Thrift Institutions
A29
1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1979
1978
Account
1976
1977
Dec.
Jan.
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept.?
Savings and loan associations
1 Assets
391,907 459,241 523,649 529,820 534,168 539,715 543,459 549,181 555,571 561,209 566,675 570,485
2 Mortgages
3 Cash and investment
securities1
4 Other
323,005 381,163 432,858 435,460 437,905 441,420 445,705 451,054 456,629 460,710 464,706 468,324
5 Liabilities and net worth
391,907 459,241 523,649 529,820 534,168 539,715 543,459 549,181 555,571 561,209 566,675 570,485
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other
35,724
33,178
39,150
38,928
44,855
45,936
47,653
46,707
49,018
47,245
50,130
48,165
48,674
49,080
48,257
49,870
48,231
50,711
49,477
51,022
49,989
51,980
49,171
52,990
335,912 386,800 431,009 435,752 438,633 446,981 445,831 447,872 454,738 456,756 457,958 462,714
19,083 27,840 42,960 42,468 41,368 41,592 43,765 44,380 47,051 48,495 50,497 52,741
15,708 19,945 31,990 31,758 31,004 31,123 32,389 33,003 34,266 35,286 36,009 37,652
7,895 10,970 10,610 10,364 10,469 11,376 11,377 12,785 13,209
3,375
14,488 15,089
10,737 10,445 10,287 10,346 10,706 11,136 11,278 11,328
9,911
6,840
11,066 10,895
15,283 11,703 13,530 15,743
14,250 10,919 12,971
8,074
9,918
11,971
9,506
12,455
12 Net worth 2
21,998
25,184
29,025
29,284
29,630
29,877
30,186
30,510
30,801
31,100
31,411
31,680
13 MEMO: Mortgage loan commitments outstanding 3.,
14,826
19,875
18,911
18,053
19,038
21,085
22,923
23,569
22,777
22,366
22,288
22,382
Mutual savings banks**
14 Assets
15
16
17
18
19
20
21
134,812
Loans
81,630
Mortgage
5,183
Other
Securities
5,840
U.S. government
2,417
State and local government.
33,793
Corporate and other 4
2,355
Cash
3,593
Other assets
147,287 158,174 158,892 160,078 161,866
88,195
6,210
95,157
7,195
95,552
7,744
95.821
8^455
96,136
9,421
5,895
2,828
37,918
2,401
3,839
4,959
3,333
39,732
3,665
4,131
4,838
3,328
40,007
3,274
4,149
4,801
3,167
40,307
3,306
4,222
4,814
3,126
40,658
3,410
4,300
147,287 158,174 158,892 160,078 161,866
22 Liabilities
134,812
23
24
25
26
27
28
29
30
122,877 134,017 142,701 142,879 143,539 145,650 145,096 145,056 146,057 145,757 145,713
121,961 132,744 141,170 141,388 142,071 144,042 143,210 143,271 144,161 143,843 143,731
74,535 78,005 71,816 69,244 68,817 68,829 67,758 67,577 68,104 67,537 66,733
47,426 54,739 69,354 72,145 73,254 75,213 75,452 75,694 76,057 76,306 76,998
1,531
1,784
1,491
1,468
1,886
916
1,272
1,608
1,896
1,982
1,914
4,565
5,172
5,032
5,485
5,050
2,884
3,292
5,048
4,545
5,578
6,350
9,052
9,978 10,907 10,980 11,054 11,167 11,085 11,153 11,212 11,264 11,324
Deposits
Regular 5
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments outstanding®..
2,439
4,066
4,400
4,366
4,453
4,482
4,449
4,352
4,214
4,071
4,123
409,853
414,120
418,350
Life insurance companies
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
United States 7,
State and local
Foreign 8
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
321,552
351,722
389,924
394,185
396,190
399,579
402,963
405,627
17,942 19,553 20,009 20,244 20,222 20,463 20,510 20,381 20,397 20,468 20,472
5,229
5,063
5,114
5,315
4,822
5,368
5,234
5,149
5,272
5,178
5,228
6,258
6,348
6,255
6,051
6,402
5,594
6,259
6,272
6,268
6,241
6,243
8,985
8,833
8,853
8,187
8,785
6,980
8,970
8,960
8,970
8,978
8,997
157,246 175,654 198,105 201,861 202,843 204,895 206,160 207,775 209,804 212,876 215,252
122,984 141,891 162,587 166,093 167,548 168,622 169,817 171,762 173,130 175,854 176,920
34,262 33,763 35,518 35,768 35,295 36,273 36,343 36,013 36,674 37,022 38,332
91,552 96,848 106,167 106,654 107,385 108,417 109,198 110,023 111,123 112,120 113,102
12,738
10,476 11,060 11,764 11,862 11,943 11,484 12,086 12,101 12,199 12,351
25,834 27,556 30,146 30,469 30,778 31,160 31,512 31,832 32,131 32,390 32,713
18,502 21,051 23,733 23,095 23,019 23,160 23,497 23,515 24,199 23,915 24,073
Credit unions
43 Total assets/liabilities and
capital
45,225
54,084
62,595
61,756
62,319
63,883
63,247
64,372
65,603
66,563
67,271
44
45
46
47
48
49
50
51
24,396
20,829
34,384
18,311
16,073
39,173
21,130
18,043
29,574
24,510
42,055
22,717
19,338
46,832
25,849
20,983
34,681
27,914
51,807
28,583
23,224
53,048
29,326
23,722
34,165
27,591
51,526
28,340
23,186
51,916
28,427
23,489
34,419
27,900
51,716
28,427
23,289
52,484
28,743
23,741
35,289
28,594
52,480
28,918
23,562
54,243
29,741
24,502
34,653
28,594
52,542
28,849
23,693
53,745
29,339
24,406
35,268
29,104
53,100
29,109
23,991
54,638
29,755
24,883
35,986
29,617
53,831
29,525
24,306
r
55,948
30,563
r
25,386
36,733
29,830
54,160
29,674
24,486
56,512
30,857
25,655
37,045
30,226
55,110
30,179
24,931
56,701
30,890
25,811
Federal
State
Loans outstanding
Federal
State
Savings
Federal (shares)
State (shares and deposits)
For notes see bottom of page A30.
A30
DomesticNonfinancialStatistics • November 1979
1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget
1 Receipts1
2 Outlays i
3 Surplus, or deficit ( - )
4 Trust funds
5 Federal funds 2
Off-budget entities surplus, or
deficit ( - )
6 Federal Financing Bank outlays
7 Other 3
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit (—)
Source of financing
9
Borrowing from the public
10 Cash and monetary assets4 (decrease, or increase (—))
11 Others
Fiscal
year
1978
Fiscal
year
1977
Fiscal
year
1979
1978
1979
HI
H2
HI
1979
July
Aug.
Sept.
357,762
402,725
-44,963
9,497
-54,460
401,997
'450,938
—48,940
12,693
r
—61,633
465,940
493,221
-27,281
18,335
-45,616
210,650
222,561
-11,912
4,334
-16,246
206,275
238,186
-31,912
11,754
-43,666
246,574
245,616
958
4,041
-4,999
33,268
40,482
-7,214
3,805
-3,408
39,353
54,279
-14,926
-4,673
-10,254
47,295
29,625
17,670
16,039
1,631
-8,415
-264
-10,661
355
-13,261
832
-5,105
-790
-5,082
1,843
-7,712
-447
-809
-143
-908
-169
-1,383
-730
-39,710
-17,806
-35,151
-7,201
-8,166
-16,003
15,557
33,641
23,378
30,314
6,039
4,831
3,268
4,249
r
-53,642 ' — 59,246
53,516 ' - 5 9 , 1 0 6
-2,247
2,373
'-3,023
'3,163
-408
6,477
-5,098
-474
3,381
1,456
-8,878
10,040
4,711
-1,376
6,535
6,200
-16,562
-3,244
19,104
15,740
3,364
22,444
16,647
5,797
24,176
6,489
17,687
17,526
11,614
5,912
16,291
4,196
12,095
17,485
3,290
14,195
13,530
2,765
10,765
6,950
3,542
3,408
24,176
6,489
17,687
MEMO:
12 Treasury operating balance (level,
end of period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective June 1978, earned income credit payments in excess of
an individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2. Half-year figures calculated as a residual (total surplus/deficit less
trust fund surplus/deficit).
3. Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund; and Rural Telephone
Bank.
4. Includes U.S. Treasury operating cash accounts; special drawing
rights; gold tranche drawing rights; loans to International Monetary
Fund; and other cash and monetary assets.
5. Includes accured interest payable to the public; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts;
seignorage; increment on gold; net gain/loss for U.S. currency valuation
adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government," Treasury Bulletin, and the Budget of the United
States Government, Fiscal Year 1980.
NOTES TO TABLE 1.38
1. Holdings of stock of the Federal Home Loan Banks are included in
"other assets."
2. Includes net undistributed income, which is accrued by most, but not
all, associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. Includes securities of foreign governments and international organizations and nonguaranteed issues of U.S. government 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 Association 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.
8. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
9. The NAMSB reports that, effective April 1979, balance sheet data
are not strictly comparable with previous months. This largely reflects:
(1) changes in FDIC reporting proceedures; and (2) reclassification of
certain items.
NOTE. Savings and loan associations: Estimates by the FHLBB tor
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 percent 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
Calendar year
Source or type
Fiscal
year
1977
Fiscal
year
1978'
Fiscal
year
1979
1979
1979
1978
HI
H2
HI
July
Aug.
Sept.
RECEIPTS
357,762
401,997
465,940
210,650
206,275
246,574
33,268
39,353
47,295
157,626
144,820
180,988
165,215
217,841
195,295
90,336
82,784
98,854
90,148
111,603
98,683
17,086
16,714
17,215
16,952
23,341
16,194
37
42,062
29,293
39
47,804
32,070
36
56,215
33,705
36
37,584
30,068
3
10,777
2,075
32
44,116
31,228
0
1,241
869
3
1,041
781
0
7,349
201
60,057
5,164
65,380
5,428
71,448
5,771
38,496
2,782
28,536
2,757
42,427
2,889
2,518
499
1,661
293
10,096
463
108,683
123,410
141,591
66,191
61,064
75,609
10,566
17,164
10,809
88,196
99,626
115,041
51,668
51,052
59,298
8,857
13,577
9,893
4,014
11,312
5,162
4,267
13,850
5,668
5,034
15,387
6,130
3,892
7,800
2,831
369
6,727
2,917
4,616
8,623
3,072
0
1,204
504
0
2,847
740
417
154
344
17,548
5,150
7,327
6,536
18,376
6,573
5,285
7,413
18,745
7,439
5,411
9,237
8,835
3,320
2,587
3,667
9,879
3,748
2,691
4,260
8,984
3,682
2,657
4,501
1,659
647
463
828
1,498
689
534
886
1,660
559
434
859
402,725
450,938
493,221
222,561
238,186
245,616
40,482
54,279
29,625
97,501
4,813
105,192
6,083
116,491
5,419
52,535
3,347
55,124
2,060
57,643
3,538
10,397
-427
10,657
944
9,200
748
22 Energy
23 Natural resources and environment..
4,677
4,172
10,000
5,532
4,721
5,901
11,167
7,618
5,620
7,855
12,346
6,410
2,395
2,721
4,690
2,435
2,383
4,279
6,020
4,967
2,461
4,417
5,672
3,020
433
713
1,154
-369
503
789
1,394
-215
965
459
1,234
-28
25 Commerce and housing credit
-44
14,636
3,319
15,462
2,592
17,013
-443
7,215
3,292
8,740
60
7,688
173
1,552
59
1,702
-46
1,589
6,286
11,263
9,735
5,500
5,844
4,499
702
933
1,003
20,985
38,785
137,915
25,890
43,676
146,503
28,524
49,614
160,496
13,218
21,147
75,370
14,247
23,830
73,127
14,467
24,860
81,173
2,472
4,108
13,669
2,645
4,632
23,659
2,341
4,109
4,546
18,038
3,600
3,374
9,499
38,009
-15,053
18,987
3,786
3,723
9,377
44,040
-15,772
19,916
4,138
4,671
8,234
52,634
-18,489
9,625
1,945
1,845
4,678
22,280
-7,945
9,532
1,989
2,304
4,610
24,036
-8,199
10,127
2,096
2,291
3,890
26,934
-8,999
667
336
365
1,800
3,491
-753
2,559
397
432
53
4,240
-1,103
599
281
333
131
3,818
-1,655
2 Individual income taxes, net
3 Withheld
4
Presidential Election Campaign
Fund
5 Nonwithheld
6 Refunds i
Corporation income taxes
Refunds
8
9 Social insurance taxes and contributions, net
10 Payroll employment
taxes and
contributions 2
11 Self-employment taxes
and
contributions 3
12 Unemployment insurance
14 Excise taxes
OUTLAYS
18 All types i
20 International affairs
21 General science, space, and
27 Community and regional
development
28 Education, training, employment,
and social services
29 Health
30 Income security1
31
32
33
34
35
36
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Interest 6
Undistributed offsetting receipts 6.7..
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 Federal Reserve Banks and other miscellaneous receipts.
6. Effective September 1976, "Interest" and "Undistributed Offsetting
Receipts" reflect the accounting conversion for the interest on special
issues for U.S. government accounts from an accrual basis to a cash basis.
7. Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. government contributions for
employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the
U.S. Government" and the Budget o the U.S. Government, Fiscal Year
1980.
A32
DomesticNonfinancialStatistics • November 1979
1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977
1976
1978
1979
Item
Dec. 31
June 30
1 Federal debt outstanding
665.5
685.2
709.1
2 Public debt securities
3 Held by public
4 Held by agencies
653.5
506.4
147.1
674.4
523.2
151.2
698.8
543.4
155.5
12.0
10.0
1.9
10.8
9.0
1.8
5 Agency securities
6 Held by public
7 Held by agencies
Sept. 30
Dec. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
729.2
758.8
780.4
797.7
804.6
812.2
718.9
564.1
154.8
749.0
587.9
161.1
771.5
603.6
168.0
789.2
619.2
170.0
796.8
630.5
166.3
804.9
626.4
178.5
10.3
8.5
1.8
10.2
8.4
1.8
9.8
8.0
1.8
8.9
7.4
1.5
8.5
7.0
1.5
7.8
6.3
1.5
7.3
5.9
1.5
654.7
675.6
700.0
720.1
750.2
772.7
790.3
797.9
806.0
9 Public debt securities
10 Other debt i
652.9
1.7
673.8
1.7
698.2
1.7
718.3
1.7
748.4
1.8
770.9
1.8
788.6
1.7
796.2
1.7
804.3
1.7
11 MEMO: Statutory debt limit
682.0
700.0
700.0
752.0
752.0
798.0
798.0
798.0
830.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.42 GROSS PUBLIC DEBT OF U.S. TREASURY
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
Type and holder
1 Total gross public debt
2
3
4
5
By type
Interest-bearing debt
Marketable
Bills
Notes
7 Nonmarketable1
8 Convertible bonds2
9 State and local government series
10 Foreign issues 3
12
13
14
Public
Savings bonds and notes 4
Government account series
15 Non-interest-bearing debt
By holder 5
16 U.S. government agencies and trust funds
21 Insurance companies
23 State and local governments
Individuals
25
Other securities
27 Other miscellaneous investors7
1975
1976
1979
1978
June
July
Aug.
Sept.
Oct.
576.6
653.5
718.9
789.2
804.9
807.5
813.1
826.5
826.8
575.7
363.2
157.5
167.1
38.6
212.5
2.3
1.2
21.6
21.6
0
67.9
119.4
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
22.3
0
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
22.2
0
77.0
139.8
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5
799.9
499.3
159.9
272.1
67.4
300.5
2.2
24.1
26.8
22.7
4.2
80.8
166.3
806.5
507.0
159.9
278.3
68.8
299.5
2.2
24.2
28.0
23.9
4.2
80.9
163.9
812.1
509.2
160.5
277.6
71.1
302.9
2.2
24.6
27.7
23.5
4.2
80.9
167.3
819.0
506.7
161.4
274.2
71.1
312.3
2.2
24.6
28.1
24.0
4.2
80.0
176.4
825.7
515.0
161.7
280.8
72.5
310.7
2.2
24.4
28.0
23.9
4.2
80.5
175.3
1.0
1.1
3.7
6.8
5.1
1.0
1.0
7.5
1.1
139.1
89.8
349.4
85.1
4.5
9.5
20.2
34.2
147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6
154.8
102.5
461.3
101.4
5.9
15.1
22.7
55.2
170.0
109.6
508.6
93.4
5.2
15.0
20.6
68.6
178.6
109.2
516.6
95.0
5.0
14.5
24.0
68.0
176.3
111.4
519.8
93.4
4.7
14.5
21.2
69.9
178.6
113.0
521.5
92.7
4.6
14.6
20.7
70.1
67.3
24.0
66.5
38.0
72.0
28.8
78.1
38.9
76.7
28.6
109.6
46.1
80.7
30.0
137.8
57.4
80.6
31.8
119.5
78.3
80.7
32.0
122.2
81.1
80.7
32.3
124.4
81.5
1. Includes (not shown separately): Securities issued to the Rural
Electrification Administration, depositary bonds, retirement plan bonds,
and individual retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner's option for 1 Vi
percent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
3. Nonmarketable dollar-denominated and foreign currency denominated series held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and
trust funds are actual holdings; data for other groups are Treasury
estimates.
1977
n.a.
n.a.
6. Consists of the investments of foreign balances and international
accounts in the United States. Beginning with July 1974, thefiguresexclude
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 government
deposit accounts, and government 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 Department); data by holder from
Treasury Bulletin.
Federal Finance
1.43 U.S. GOVERNMENT MARKETABLE SECURITIES
A33
Ownership, by maturity
Par value; millions of dollars, end of period
Type of holder
1977
1979
1978
1977
Aug.
July
1979
1978
July
All maturities
Aug.
1 to 5 years
1 All holders
459,927
487,546
506,994
509,187
151,264
162,886
160,356
160,771
2 U.S. government agencies and trust funds
14,420
101,191
12,695
109,616
12,448
111,445
11,388
113,027
4,788
27,012
3,310
31,283
2,464
28,430
3,109
27,055
344,315
75,363
4,379
12,378
9,474
4,817
15,495
222,409
365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288
383,102
67,332
3,275
11,728
7,597
3,587
18,049
271,534
384,771
66,813
3,244
11,743
7,127
3,547
18,151
274,145
119,464
38,691
2,112
4,729
3,183
2,368
3,875
64,505
128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433
129,462
37,099
1,767
4,629
2,663
2,040
4,049
77,215
130,607
37,055
1,752
5,095
2,265
2,070
4,283
78,087
Total, within 1 year
12 All holders
13 U.S. government agencies and trust funds
5 to 10 years
230,691
228,516
244,203
245,699
45,328
50,400
47,556
45,510
1,906
56,702
1,488
52,801
2,318
58,608
1,416
61,392
2,129
10,404
1,989
14,809
1,765
12,435
872
12,246
172,084
29,477
1,400
2,398
5,770
2,236
7,917
122,885
174,227
20,608
817
1,838
4,048
1,414
8,194
137,309
183,277
20,604
800
1,924
4,230
1,395
6,270
148,054
182,891
20,232
799
1,865
4,150
1,334
5,952
148,559
32,795
6,162
584
3,204
307
143
1,283
21,112
33,601
7,490
496
2,899
369
89
1,588
20,671
33,355
7,103
453
2,805
331
75
1,659
20,930
32,392
6,951
444
2,478
324
68
1,719
20,408
Bills, within 1 year
23 All holders
24 U.S. government agencies and trust funds
26 Private investors
10 to 20 years
161,081
161,747
159,938
160,489
12,906
19,800
26,341
26,270
32
42,004
2
42,397
*
*
41,338
42,911
3,102
1,510
3,876
2,088
4,520
3,204
4,520
3,203
119,035
11,996
484
1,187
4,329
806
6,092
94,152
119,348
5,707
150
753
1,792
262
5,524
105,161
118,600
5,030
126
389
1,632
217
3,362
107,763
117,578
4,663
136
506
1,831
201
2,977
107,264
8,295
456
137
1,245
133
54
890
5,380
13,836
956
143
1,460
86
60
1,420
9,711
18,617
1,162
139
1,453
231
60
1,968
13,604
18,548
1,062
133
1,365
225
59
2,070
13,634
Other, within 1 year
Over 20 years
34 All holders
69,610
66,769
84,265
85,210
19,738
25,944
28,538
30,937
35 U.S. government agencies and trust funds
1,874
14,698
1,487
10,404
2,318
17,270
1,416
18,481
2,495
5,564
2,031
8,635
1,380
8,767
1,472
9,131
37 Private investors
53,039
15,482
916
1,211
1,441
1,430
1,825
28,733
54,879
14,901
667
1,084
2,256
1,152
2,670
32,149
64,677
15,575
674
1,535
2,598
1,177
2,908
40,290
65,313
15,569
662
1,359
2,319
1,133
2,975
41,296
11,679
578
146
802
81
16
1,530
8,526
15,278
1,446
126
774
135
17
3,616
9,164
18,391
1,364
117
915
142
16
4,104
11,732
20,334
1,513
116
941
162
16
4,128
13,457
42
Savings and loan associations
NOTE. Direct public issues only. Based on Treasury Survey of Ownership from Treasury Bulletin (U.S. Treasury Department).
Data complete for U.S. government agencies and trust funds and
Federal Reserve 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, 1979:
(1) 5,413 commercial banks, 461 mutual savings banks, and 724 insurance
companies, each about 80 percent; (2) 431 nonfinancial corporations and
484 savings and loan associations, each about 50 percent; and (3) 491
state and local governments, about 40 percent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A34
DomesticNonfinancialStatistics • November 1979
1.44 U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
1979
Item
1976
1 U.S. government securities... 10,449
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
6,676
210
2,317
1,019
229
1977
1979, week ending Wednesday
1978
July
Aug.
Sept.
July 18
July 25
Aug. 1
Aug. 8
Aug. 15 Aug. 22
10,838
10,285
11,113
'12,259
13,489
9,799
12,763
10,841
12,534
12,290
11,946
6,746
237
2,320
1,148
388
6,173
392
1,889
965
866
6,738
398
1,979
907
1,092
6,787
466
'2,328
'1,275
'1,403
8,056
606
2,425
1,033
1,368
5,761
323
1,868
757
1,091
7,843
309
2,291
1,095
1,225
6,241
617
2,242
831
912
5,828
258
2,195
2,051
2,201
7,228
483
1,848
1,429
1,302
7,588
493
1,724
919
1,221
By type of customer
7 U.S. government securities
dealers
8 U.S. government securities
brokers
9 Commercial banks
10 All others i
1,360
1,267
1,135
1,086
1,480
1,720
961
1,041
1,501
1,353
1,300
1,689
3,407
2,426
3,257
3,709
2,295
3,568
3,838
1,804
3,508
4,491
1,797
3,740
'4,690
'1,638
'4,450
5,580
1,836
4,342
3,943
1,459
3,437
5,298
2,259
4,164
3,724
1,686
3,930
4,849
1,790
4,542
4,606
1,565
4,819
4,516
1,548
4,193
11 Federal agency securities....
1,548
1,729
1,894
2,511
'2,348
3,230
2,384
2,663
2,717
2,222
2,411
2,009
Transactions are market purchases and sales of U.S. government
securities dealers reporting to the Federal Reserve Bank of New York.
Thefiguresexclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase, reverse repurchase (resale), or similar
contracts.
1. Includes, among others, all other dealers and brokers in commodities
and securities, foreign banking agencies, and the Federal Reserve System.
NOTE. Averages for transactions are based on number of trading days
in the period.
1.45 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
1979
Item
1976
1977
1979, week ending Wednesday
1978
July
Aug.
Sept.
June 27
Positions
1 U.S. government securities.. .
7,592
5,172
2,656
'2,979
2
3
4
5
6
6,290
188
515
402
198
4,772
99
60
92
149
2,452
260
-92
40
-4
3,634
52
-513
46
-240
729
693
606
'1,983
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7 Federal agency securities....
July 4
July 11
July 18
July 25
Aug. 1
2
866
5,950
6,180
4,832
2,750
1,632
1,355
1,306
2,476
-23
-380
-299 -1,085
312
146
-168
-291
6,035
286
-109
165
-427
5,937
315
-409
150
115
5,051
203
-522
129
-29
3,347
41
-579
95
-154
2,703
-40
-661
-13
-357
2,336
-76
-111
-150
-644
2,164
1,915
2,262
2,054
1,999
1,976
1,686
1,128
1,975
3
Financing
8 All sources
9
10
11
12
Commercial banks
New York City
Outside New York City...
Corporations1
All others
8,715
9,877
10,204
16,217
16,173
18,057
14,821
15,814
16,431
15,679
16,711
16,269
1,896
1,660
1,479
3,681
1,313
1,987
2,423
4,155
599
2,174
2,370
5,052
1,266
2,324
3,434
9,193
773
2,562
3,979
8,859
1,292
3,517
3,918
9,329
1,440
2,152
2,930
8,298
1,576
1,968
2,886
9,384
1,937
2,523
3,273
8,698
789
2,309
3,100
9,481
1,151
2,332
3,814
9,414
714
2,318
3,860
9,376
1. All business corporations except commercial banks and insurance
companies.
2. New amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commitment, that is, trade-date basis, including any such securities that have
been sold under 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
firms and dealer departments of commercial banks against U.S. government and federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance 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
1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A35
Debt Outstanding
Millions of dollars, end of period
Agency
1 Federal and federally sponsored agencies1
1976
1977
1979
1978
Apr.
May
103,848
112,472
137,063
140,999
143,265
145,556
146,429
149,612
2 Federal agencies
3 Defense Department23 4
4
Export-Import Bank '
5
Federal Housing Administrations
6
Government National Mortgage
Association
participation certificates6
7
Postal Service7
8
Tennessee Valley Authority
9
United States Railway Association7
22,419
1,113
8,574
575
22,760
983
8,671
581
23,488
868
8,711
588
23,485
859
8,499
586
23,507
839
8,326
580
23,568
822
8,322
576
23,366
807
8,107
568
24,170
796
8,806
562
4,120
2,998
4,935
104
3,743
2,431
6,015
336
3,141
2,364
7,460
356
3,141
2,364
7,690
346
3,141
2,364
7,900
357
3,099
2,364
7,985
400
3,099
2,202
8,155
428
3,039
2,202
8,335
430
10 Federally sponsored agencies1
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation.
13 Federal National Mortgage Association . . . .
14 Federal Land Banks
15 Federal Intermediate Credit Banks
16
Banks for Cooperatives
17
Farm Credit Banks1
18 Student Loan Marketing Association8
19
Other
81.429
89,712
18,345
410
2
117,514
28,447
2,461
42,405
19,275
8,958
3,852
11,134
980
2
119,758
28,265
2,333
43,625
19,275
7,890
3,351
13,987
1,030
2
121,988
31,890
19,118
11,174
4,434
2,548
515
2
113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2
2,330
44,792
18,389
6,994
2,473
17,838
1,050
123,063
28,577
2,323
44,639
18,389
5,958
1,483
20,597
1,095
2
125,442
28,758
2,522
45,775
18,389
5,122
785
22,949
1,140
2
28,711
38,580
51,298
53,221
55,310
56,610
58,186
60,816
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,898
2,114
915
5,635
356
6,898
2,114
980
5,865
346
7,131
2,114
1,030
6,075
357
7,131
2,114
1,050
6,260
400
7,131
1,952
1,095
6,430
428
7,846
1,952
1,140
6,610
430
10,750
1,415
4,966
16,095
2,647
6,782
23,825
4,604
6,951
25,160
4,735
7,123
25,985
4,962
7,656
26,890
5,122
7,643
28,050
5,253
7,847
29,200
5,497
8,141
11
12
MEMO:
20 Federal Financing Bank debt7-'
21
22
23
24
25
Lending to federal and federally sponsored
agencies
Export-Import7 Bank 4
Postal Service
Student Loan Marketing Association8
Tennessee Valley Authority
United States Railway Association7
Other lending10
26 Farmers Home Administration
27 Rural Electrification Administration.
28 Other
16,811
1,690
30,565
17,127
10,494
4,330
1,686
1. In September 1977 the Farm Credit Banks issued their first consolidated bonds, and in January 1979 they began issuing these bonds on a
regular basis to replace the financing activities of the Federal Land Banks,
the Federal Intermediate Credit Banks, and the Banks for Cooperatives.
Line 17 represents those consolidated bonds outstanding, as well as any
discount notes that have been issued. Lines 1 and 10 reflect the addition
of this item.
2. Consists of mortages assumed by the Defense Department between
1957 and 1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget
thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration insurance claims. Once issued, these securities may be sold
privately on the securities market.
6. 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;
28,121
1
Department of Housing and Urban Development; Small Business Administration; and the Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double counting.
10. Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any 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 1979
1.47 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1979
Type of issue or issuer,
or use
1 All issues, new and refunding
1
Type of issue
2 General obligation
3 Revenue
1977
1976
1978
Mar.
Apr.
May
June
July
Aug.
35,313
46,769
48,607
4,648
3,512
3,032
4,578
3,265
3,134
18,040
17,140
18,042
28,655
17,854
30,658
1,060
3,580
1,258
2,243
1,137
1,893
1,527
3,032
793
2,469
728
3,396
133
72
95
8
11
2
19
3
10
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
7,054
15,304
12,845
6,354
21,717
18,623
6,632
24,156
17,718
436
2,930
1,274
298
1,709
1,495
205
1,464
1,361
642
1,911
2,005
234
1,532
1,497
200
2,473
1,451
9 Issues for new capital, total
32,108
36,189
37,629
4,635
3,482
3,023
4,233
3,087
4,070
4,900
2,586
9,594
6,566
483
7,979
5,076
2,951
8,119
8,274
4,676
7,093
5,003
3,460
9,026
10,494
3,526
6,120
281
204
1,134
2,036
315
665
562
134
508
1,499
182
597
665
125
590
582
399
662
527
278
981
1,332
321
794
392
141
881
1,180
253
240
555
103
813
1,704
406
489
Use of proceeds
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
Type of issue or issuer,
or use
1
1976
1979
1978
1977
Feb.
Mar.
Apr.1
May
Juner
July
53,488
53,792
47,230
3,170
4,401
4,692
4,167
6,247
4,008
2 Bonds
42,380
42,015
36,872
2,257
3,729
4,113
3.575
5,356
3,027
Type of offering
3 Public.
4 Private placement
26,453
15,927
24,072
17,943
19,815
17,057
,336
921
1,904
1,825
2,984
1,129
1,999
1.576
4,171
1,185
2,247
780
13,264
4,372
4,387
8,297
2,787
9,274
12,204
6,234
1,996
278
279
266
517
558
359
739
362
245
721
517
1,145
536
73
307
1,153
1,208
3,063
10,258
9,572
5,246
2,007
7,092
3,373
9,586
1,782
267
205
638
102
1,154
1,146
573
423
1,125
379
1,710
925
229
375
174
26
1,298
11,108
11,777
10,358
913
672
579
592
891
981
2,803
8,305
3,916
7,861
2,832
7,526
201
231
441
155
424
174
418
278
613
392
589
2,237
1,183
24
6,121
776
771
1,189
1,834
456
5,865
1,379
1,049
1,241
1,816
263
5,140
264
1,631
121
24
114
55
335
65
79
36
85
203
49
227
7
47
363
3
248
30
38
173
1 All issues
5
6
7
8
9
10
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
Type
12 Preferred
13 Common
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more
than one year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
8,262
712
93
669
' '29
261
210
257
"78"
21
200
598
68
103
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
SOURCE. Securities and Exchange Commission.
Corporate Finance
1.49 OPEN-END INVESTMENT COMPANIES
A37
Net Sales and Asset Position
Millions of dollars
1979
Item
1977
1978
6,401
6,027
357
6,645
7,231
-586
523
646
-123
594
761
-175
549
715
-166
676
667
9
744
706
38
675
832
-157
580
784
-204
45,049
3,274
41,775
44,980
4,507
40,473
47,051
4,746
42,305
47,142
4,862
42,280
46,431
4,869
41,562
48,064
5,012
43,052
48,771
5,052
43,719
''50,802
4,924
r
45,878
50,147
5,016
45,131
Mar.
Apr.
June
May
July
Aug.
Sept.
INVESTMENT COMPANIES 1
1 Sales of own shares2
2 Redemptions of own shares3
4 Assets4
6
Other
1. Excluding money market funds.
2. 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.
3. Excludes share redemption resulting from conversions from one fund
to another in the same group.
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government 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
1976
1977
1978
1978
1977
1979
Q4
Q1
Q2
Q3
Q4
Q1
Q2
1 Profits before tax
156.0
177.1
206.0
183.0
177.5
207.2
212.0
227.4
233.3
227.9
2
3
4
5
6
7
63.8
92.2
37.5
54.7
97.1
151.8
72.6
104.5
42.1
62.4
109.3
171.7
84.5
121.5
47.2
74.3
119.8
194.1
75.1
107.9
43.4
64.5
113.1
177.6
70.8
106.7
45.1
61.6
116.5
178.1
84.7
122.4
46.0
76.4
119.1
195.5
87.5
124.5
47.8
76.8
120.6
197.3
95.1
132.3
49.7
82.6
123.1
205.7
91.3
142.0
51.5
90.5
125.5
216.0
88.7
139.3
52.3
87.0
130.4
217.3
Profits tax liability
Profits after tax
Dividends
Undistributed profits
Capital consumption allowances
Net cash flow
SOURCE. Survey of Current Business (U.S. Department of Commerce.)
A38
DomesticNonfinancialStatistics • November 1979
1.51 NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
Account
1975
1978
1977
1976
Q3
Q4
Ql
Q2
1979
Q3
Ql
Q4
Q2
1 Current assets
759.0
826.3
881.8
900.9
925.0
954.2
992.6 1,028.1 1,078.6 1,110.2
2
3
4
5
6
82.1
19.0
272.1
315.9
69.9
87.3
23.6
293.3
342.9
79.2
83.5
19.3
326.9
368.3
83.8
94.3
18.7
325.0
375.6
87.3
88.8
18.6
337.4
390.5
89.6
91.3
17.3
356.0
399.3
90.3
91.6
16.1
376.4
415.5
92.9
103.5
17.8
381.9
428.3
96.5
102.4
19.2
405.3
452.6
99. 1
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
100.1
20.8
418.8
468.9
101.4
451.6
492.7
533.2
546.8
574.2
593.5
626.3
662.2
701.9
723.7
264.2
187.4
282.0
210.6
306.1
227.1
313.7
233.1
325.2
249.0
337.9
255.6
356.2
270.0
375.1
287.1
392.6
309.2
410.5
313.1
10 Net working capital
307.4
333.6
348.6
354.1
350.7
360.7
366.3
365.9
376.7
386.5
11 MEMO: Current ratio*
1.681
1.677
1.654
1.648
1.611
1.608
1.585
1.552
1.537
1.534
8 Notes and accounts payable
9 Other
1. Ratio of total current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial Corporations" in the July 1978 BULLETIN, pp. 533-37.
All data in this table have been revised to reflect the most current
benchmarks. Complete data are available upon request from the Flow
of Funds Section, Division of Research and Statistics,
SOURCE. Federal Trade Commission.
1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
1978
Industry
1 All industries
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7
Other
Public utilities
8 Electric
10 Communication
11 Commercial and other1
1977
1978
Q2
Q3
Q4
Ql
Q2
Q3 r
Q42
135.72
153.60
144.25
150.76
155.41
163.96
165.94
173.48
175.29
179.56
27.75
32.33
31.59
35.86
28.72
32.86
31.40
35.80
32.25
35.50
33.99
39.26
34.00
37.56
36.86
39.56
38.03
40.27
40.38
41.58
4.49
4.81
4.45
4.81
4.99
4.98
5.46
5.31
5.30
5.58
2.82
1.63
2.55
3.33
2.34
2.42
3.35
2.67
2.44
3.09
2.08
2.23
3.38
2.20
2.47
3.49
2.39
2.55
4.02
3.35
2.71
3.66
3.26
2.79
4.13
2.92
3.24
3.92
3.15
3.08
21.57
4.21
15.43
22.95
24.71
4.72
18.15
25.67
23.15
4.78
17.07
24.76
23.83
4.62
18.18
24.71
24.92
4.70
18.90
26.09
26.95
4.78
18.46
27.12
27.70
4.66
18.75
27.73
28.52
28.06
5.18
4.74
20.29 \j 48.13
28.51
27.46
5.33
49.08
1. Includes trade, service, construction, finance, and insurance.
2. Anticipated by business.
NOTE. Estimates for corporate and noncorporate business, excluding
Ql
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
1.53 DOMESTIC FINANCE COMPANIES
A39
Assets and Liabilities
Billions of dollars, end of period
1973
Account
1974
1975
1976
1979
1978
1977
Q2
Q3
Q4
Q1
Q2
ASSETS
Accounts receivable, gross
3
Total
4 LESS: Reserves for unearned income and losses.
5 Accounts receivable, net
6 Cash and bank deposits
8 All other
9 Total assets
35.4
32.3
67.7
8.4
59.3
2.6
.8
10.6
36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
47.1
59.5
106.6
14.1
92.6
2.9
1.3
16.2
49.7
58.3
108.0
14.3
93.7
2.7
1.8
17.1
54.9
52.6
66.7
63.3
121.6
116.0
16.5
15.6
105.1
100.4
3.5
1.3 | 123.8
17.3
58.7
70.1
128.8
17.7
111.1
73.2
79.6
81.6
89.2
104.3
112.9
115.3
122.4
128.9
135.8
7.2
19.7
9.7
20.7
8.0
22.2
6.3
23.7
5.9
29.6
5.4
31.3
5.4
29.3
6.5
34.5
6.5
38.1
7.3
41.0
4.6
24.6
5.6
4.9
26.5
5.5
4.5
27.6
6.8
5.4
32.3
8.1
6.2
36.0
11.5
6.6
40.1
13.6
6.8
41.3
15.2
8.1
43.6
12.6
6.7
44.5
15.1
8.8
46.0
14.4
24.6
LIABILITIES
11 Commercial paper
Debt
14
Other
15 Capital, surplus, and undivided profits
11.5
12.4
12.5
13.4
15.1
16.0
17.3
17.2
18.0
18.2
16 Total liabilities and capital
73.2
79.6
81.6
89.2
104.3
112.9
115.3
122.4
128.9
135.8
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.54 DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Aug. 31,
19791
Changes in accounts
receivable
Extensions
Repayments
1979
1979
1979
June
July
Aug.
June
July
Aug.
June
July
Aug.
1 Total
68,588
1,361
1,234
251
16,788
15,453
15,606
15,427
14,219
15,355
2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial and
15,467
14,150
-32
655
-25
526
101
-583
1,116
5,919
1,118
5,804
1,239
5,633
1,148
5,264
1,143
5,278
1,138
6,216
17,168
6,703
15,100
449
-135
424
-31
-91
855
282
97
354
1,075
6,097
2,581
1,171
5,004
2,356
1,194
5,195
2,345
626
6,232
2,157
1,202
5,095
1,501
912
5,098
1,991
5 Loans on commercial accounts receivable 2 . .
6 Factored commercial accounts receivable 2... }
1. Not seasonally adjusted.
2. Beginning January 1979 the categories "Loans on commercial accounts receivable" and "Factored commercial accounts receivable" are
combined.
A40
DomesticNonfinancialStatistics • November 1979
1.55 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1979
Item
1976
1977
1978
Apr.
May
June
July
Aug.
Sept.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional
mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2
Contract rate (percent per annum)
Yield (percent per
annum)
3
7 FHLBB series
8 HUD series4
48.4
35.9
74.2
27.2
1.44
8.76
54.3
40.5
76.3
27.9
1.33
8.80
62.6
45.9
75.3
28.0
1.39
9.30
75.4
54.9
75.1
29.0
1.75
10.06
72.3
51.4
73.2
28.2
1.59
10.20
73.7
52.5
73.5
28.4
1.53
10.39
74.3
52.7
73.0
28.1
1.63
10.49
80.0
56.9
73.1
28.1
1.60
10.73
75.5
53.9
73.4
28.6
1.67
10.72
8.99
8.99
9.01
8.95
9.54
9.68
10.36
10.55
10.47
10.80
10.66
10.90
10.78
10.95
11.01
11.10
11.02
11.35
8.82
8.17
8.68
8.04
9.70
8.98
n.a.
9.79
10.61
9.89
10.49
9.78
10.46
9.77
10.58
9.91
11.37
10.31
8.99
9.11
8.73
8.98
9.77
10.01
10.59
11.03
10.84
11.35
10.77
11.57
10.66
11.52
10.66
11.52
11.08
11.75
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series) 5
10 GNMA securities6
FNMA auctions?
11 Government-underwritten loans
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings {end of period)
13 Total
14 FHA-insured
15 VA-guaranteed
Mortgage transactions (during period)
18 Sales
Mortgage commitments8
21
Auction of 4-month commitments to buy
Government-underwritten
loans
Offered9
Conventional loans
23 Offered®
32,904
18,916
9,212
4,776
34,370
18,457
9,315
6,597
43,311
21,243
10,544
11,524
47,028
22,773
10,591
13,664
47,757
23,008
10,543
14,206
48,206
23,204
10,502
14,500
48,539
23,378
10,450
14,710
48,909
23,526
10,386
14,997
49,173
n.a.
n.a.
15,203
3,606
86
4,780
67
12,303
5
883
0
1,023
0
739
0
602
0
646
0
545
0
6,247
3,398
9,729
4,698
18,960
9,201
1,075
6,656
1,400
6,862
634
6,476
354
5,912
593
5,692
1,407
6,352
4,929.8
2,787.2
7,974.1
4,846.2
12,978
6,747.2
1,322.7
638.5
426.3
185.0
219.9
99.9
133.2
69.6
162.3
82.7
1,421.1
599.9
2,595.7
1,879.2
5,675.2
3,917.8
9,933.0
5,110.9
661.9
363.6
458.6
214.3
357.5
195.3
93.5
69.9
245.9
184.1
527.3
325.6
4,269
1,618
2,651
3,276
1,395
1,881
3,064
1,243
1,822
3,377
1,198
2,180
3,310
1,186
2,124
3,334
1,171
2,163
3,487
1,156
2,331
3,549
1,145
2,404
3,729
1,132
2,597
1,175
1,396
3,900
4,131
6,524
6,211
358
364
560
572
447
382
518
321
636
554
537
347
1,477
333
5,546
1,063
7,451
1,410
540
1,487
652
1,541
528
1,590
528
1,572
655
1,536
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings {end of period)10
25 Total
26 FHA/VA
Mortgage transactions (iduring period)
Mortgage commitments11
31 Outstanding (end of period)
1. Weighted averages based on sample surveys of mortgages originated
by major institutional lender groups. Compiled by the Federal Home
Loan Bank Board in cooperation with the Federal Deposit Insurance
Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the end of 10 years.
4. Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Department of
Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration insured first mortgages for immediate delivery
in the private 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
r
r
n.a.
n.a.
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 FNMA commitment fees or stock related requirements.
Monthly figures are unweighted averages for auctions conducted within
the month.
8. Includes some multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA's
free market auction system, and through the FNMA-GNMA tandem
plans.
9. Mortgage amounts offered by bidders are total bids received.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.
Real Estate Debt
A41
1.56 MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
Type of holder, and type of property
1975
1976
1977
1979
1978
1978
Q3
Q4
Qi'
Q2
1 AH holders
801,537
889,327
1,023,505
1,172,502
1,133,699
1,172,502
1,205,290
1,249,743
2
3
4
5
490,761
100,601
159,298
50,877
556,557
104,516
171,223
57,031
656,566
111,841
189,274
65,824
761,905
122,004
212,597
75,996
734,740
119,442
205,744
73,773
761,905
122,004
212,597
75,996
784,299
124,003
217,563
79,425
814,976
125,984
224,526
84,257
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
847,910
213,963
126,966
10,912
67,056
9,029
822,184
205,445
121,911
10,478
64,386
8,670
847,910
213,963
126,966
10,912
67,056
9,029
866,036
220,063
130,585
11,223
68,968
9,287
894,471
229,564
136,223
11,708
71,945
9,688
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
95,157
62,252
16,529
16,319
57
93,403
61,104
16,224
16,019
56
95,157
62,252
16,529
16,319
57
96,136
62,892
16,699
16,488
57
97,155
63,559
16,876
16,663
58
278,590
223,903
25,547
29,140
323,130
260,895
28,436
33,799
381,163
310,686
32,513
37,964
432,858
356,156
36,057
40,645
420,971
345,617
35,362
39,992
432,858
356,156
36,057
40,645
441,420
363,774
36,682
40,964
456,629
377,587
37,078
41,964
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
105,932
14,449
19,026
62,086
10,371
102,365
14,189
18,803
59,268
10,105
105,932
14,449
19,026
62,086
10,371
108,417
14,507
19,080
63,908
10,922
111,123
14,489
19,102
66,055
11,477
66,891
7,438
4,728
2,710
66,753
4,241
1,970
2,271
70,006
3,660
1,548
2,112
81,853
3,509
877
2,632
78,672
3,560
897
2,663
81,853
3,509
877
2,632
86,689
3,448
821
2,627
90,095
3,425
800
2,625
1- to 4-family
Multifamily
Commercial
Farm
6 Major financial institutions
7 Commercial banks1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
Mutual savings banks
1-to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
26 Federal and related agencies
27
Government National Mortgage Assn.
28
1-to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
1,109
208
215
190
496
1,064
454
218
72
320
1,353
626
275
149
303
926
288
320
101
217
1,384
460
240
251
433
926
288
320
101
217
956
302
180
283
191
1,200
363
75
278
484
35
36
37
Federal Housing and Veterans Admin.
1-to 4-family
Multifamily
4,970
1,990
2,980
5,150
1,676
3,474
5,212
1,627
3,585
5,419
1,641
3,778
5,295
1,565
3,730
5,419
1,641
3,778
5,522
1,693
3,829
5,597
1,744
3,853
38
39
40
Federal National Mortgage Association
1-to 4-family
Multifamily
31,824
25,813
6,011
32,904
26,934
5,970
34,369
28,504
5,865
43,311
37,579
5,732
41,189
35,437
5,752
43,311
37,579
5,732
46,410
40,702
5,708
48,206
42,543
5,663
41
42
43
Federal Land Banks
1-to 4-family
Farm
16,563
549
16,014
19,125
601
18,524
22,136
670
21,466
25,624
927
24,697
24,758
819
23,939
25,624
927
24,697
26,893
1,042
25,851
28,459
1,198
27,261
44
45
46
Federal Home Loan Mortgage Corp...
1-to 4-family
Multifamily
4,987
4,588
399
4,269
3,889
380
3,276
2,738
538
3,064
2,407
657
2,486
1,994
492
3,064
2,407
657
3,460
2,685
775
3,208
2,489
719
47 Mortgage pools or trusts2
48
Government National Mortgage Assn,
49
1- to 4-family
50
Multifamily
34,138
18,257
17,538
719
49,801
30,572
29,583
989
70,289
44,896
43,555
1,341
88,633
24,347
52,732
1,615
82,730
50,844
49,276
1,568
88,633
54,347
52,732
1,615
94,551
57,955
56,269
1,686
100,599
61,340
59,586
1,754
1,598
1,349
249
2,671
2,282
389
6,610
5,621
989
11,892
9,657
2,235
10,511
8,616
1,895
11,892
9,657
2,235
12,467
10,088
2,379
13,708
11,096
2,612
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
22,394
13,400
1,116
3,560
4,318
21,375
12,851
1,116
3,369
4,039
22,394
13,400
1,116
3,560
4,318
24,129
13,883
1,465
3,660
5,121
25,551
14,329
1,764
3,833
5,625
119,315
56,268
22,140
22,569
18,338
125,123
62,643
20,420
21,446
20,614
138,199
72,115
20,538
21,820
23,726
154,106
82,574
21,395
212,830
27,307
150,113
80,004
21,119
22,459
26,531
154,106
82,574
21,395
22,830
27,307
158,014
85,056
21,670
23,292
27,996
164,578
88,970
22,155
23,789
29,664
51
52
53
Federal Home Loan Mortgage Corp...
1- to 4-family
Multifamily
54
55
56
57
58
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
59 Individuals and others 3
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 government
sources, with some quarters estimated in part by the Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the Department of Commerce. Separation of nonfarm mortgage debt by type of
property, if not reported directly, and interpolations and extrapolations
when required, are estimated mainly by the Federal Reserve. Multifamily debt refers to loans on structures of five or more units.
A42
DomesticNonfinancialStatistics • November 1979
1.57 CONSUMER INSTALLMENT CREDIT 1 Total Outstanding, and Net Change
Millions of dollars
Holder, and type of credit
1976
1977
1979
1978
Mar.
Apr.
May
June
July
Aug.
Sept.
Amounts outstanding (end of period)
193,977
230,829
275,629
278,453
282,575
287,315
291,856
295,052
299,813
303,902
By major holder
Commercial banks....
Finance companies
Credit unions.
Retailers2
Savings and loans
Gasoline companies...
Mutual savings banks..
93,728
38,919
31,169
19,260
6,246
2,830
1,825
112,373
44,868
37,605
23,490
7,354
2,963
2,176
136,189
54,298
45,939
24,876
8,394
3,240
2,693
137,445
56,991
46,301
22,929
8,671
3,292
2,824
139,843
58,334
46,322
23,097
8,833
3,383
2,763
142,102
59,635
46,832
23,421
9,066
3,537
2,722
144,035
60,996
47,478
23,672
9,290
3,704
2,681
145,169
62,463
47,772
23,713
9,425
3,872
2,638
147,312
63,362
48,631
24,114
9,760
4,048
2,586
148,657
64,822
49,214
24,446
9,972
4,244
2,547
By major type of credit
9 Automobile
10 Commercial banks..
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies..
67,707
39,621
22,072
17,549
15,238
12,848
82,911
49,577
27,379
22,198
18,099
15,235
102,468
60,564
33,850
26,714
21,967
19,937
105,426
61,742
34,592
27,150
22,140
21,544
107,186
62,866
35,322
27,544
22,150
22,170
109,211
63,891
35,917
27,974
22,394
22,926
110,930
64,480
36,251
28,229
22,703
23,747
111,952
64,826
36,475
28,351
22,844
24,282
113,351
65,389
36,887
28,502
23,255
24,707
114,765
65,813
37,267
28,546
23,534
25,418
15 Revolving
16 Commercial banks..
17 Retailers
18 Gasoline companies.
17,189
14,359
2,830
39,274
18,374
17,937
2,963
47,051
24,434
19,377
3,240
45,240
24,442
17,506
3,292
45,781
24,767
17,631
3,383
46,489
25,054
17,898
3,537
47,458
25,652
18,102
3,704
47,894
25,927
18,095
3,872
49,270
26,782
18,440
4,048
50,422
27,446
18,732
4,244
19 Mobile home
20 Commercial banks.
21
Finance companies.
22 Savings and loans..
23 Credit unions
14,573
8,737
3,263
2,241
332
15,141
9,124
3,077
2,538
402
16,042
9,553
3,152
2,848
489
16,092
9,509
3,148
2,942
493
16,198
9,549
3,159
2,997
493
16,453
9,702
3,177
3,076
498
16,607
9,759
3,191
3,152
505
16,719
9,801
3,212
3,198
508
16,972
9,912
3,231
3,312
517
17,105
9,940
3,258
3,384
523
24 Other
25 Commercial banks...
26 Finance companies...
27 Credit unions
28 Retailers
29 Savings and loans
30 Mutual savings banks.
94,508
31,011
22,808
15,599
19,260
4,005
1,825
93,503
35,298
26,556
19,104
5,553
4,816
2,176
110,068
41,638
31,209
23,483
5,499
5,546
2,693
111,695
41,752
32,299
23,668
5,423
5,729
2,824
113,410
42,661
33,005
23,679
5,466
5,836
2,763
115,162
43,455
33,532
23,940
5,523
5,990
2,722
116,861
44,144
34,058
24,270
5,570
6,138
2,681
118,487
44,615
34,969
24,420
5,618
6,227
2,638
120,220
45,229
35,424
24,859
5,674
6,448
2,586
121,610
45,458
36,146
25,157
5,714
6,588
2,547
1 Total
2
3
4
5
6
7
8
Net change (during period)3
31 Total
By major holder
32 Commercial banks
33 Finance companies
35 Retailers i
36 Savings and loans
37 Gasoline companies
By major type of credit
39 Automobile
40 Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44 Finance companies
47
Retailers
49 Mobile home
50 Commercial banks
51
Finance companies
53
Credit unions
54 Other
55 Commercial banks
56
Finance companies
57 Credit unions
58 Retailers
59 Savings and loans
60 Mutual savings banks
21,647
35,278
44,810
3,625
4,105
3,306
2,558
2,443
2,446
4,446
10,792
2,946
5,503
1,059
1,085
124
138
18,645
5,948
6,436
2,654
1,111
132
352
23,813
9,430
8,334
1,386
1,041
276
530
1,465
1,228
528
143
173
20
68
2,117
1,378
139
306
158
73
-66
1,665
893
124
283
280
96
-35
984
913
144
288
240
39
-50
662
1,185
342
180
120
2
-48
866
549
391
332
253
116
-61
1,521
1,773
411
443
207
127
-36
10,465
6,334
2,742
3,592
2,497
1,634
15,204
9,956
5,307
4,649
2,861
2,387
19,557
10,987
6,471
4,516
3,868
4,702
1,486
617
290
327
245
624
1,387
740
482
258
64
583
1,225
633
389
244
60
532
690
123
87
36
45
522
616
72
51
21
183
361
594
172
188
-16
177
245
1,823
762
542
220
218
843
2,170
2,046
124
6,248
4,015
2,101
132
7,776
6,060
1,440
276
742
588
134
20
918
605
240
73
749
418
235
96
796
494
263
39
429
303
124
2
787
365
306
116
1,057
546
384
127
140
70
-182
192
60
565
387
-189
297
70
897
426
74
310
87
108
31
11
59
7
82
21
6
56
-1
234
125
13
94
2
102
12
14
74
2
72
17
11
41
3
182
59
13
106
4
89
10
17
57
5
8,872
2,342
1,494
2,946
1,059
893
138
13,261
4,287
3,750
3,505
553
814
352
16,580
6,340
4,654
4,379
-54
731
530
1,289
229
593
276
9
114
68
1,718
751
789
76
66
102
-66
1,098
489
348
62
48
186
-35
970
355
377
97
25
166
-50
1,326
270
813
156
56
79
-48
883
270
291
210
26
147
-61
1,477
203
913
188
59
150
-36
1. The Board's series cover most short- and intermediate-term credit
extended to individuals through regular business channels, usually to
finance the purchase of consumer goods and services or to refinance
debts incurred for such purposes, and scheduled to be repaid (or with
the option of repayment) in two or more installments.
2. Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
3. Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
NOTE. Total consumer noninstallment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $64.3 billion at the end
of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976,
and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979,
will be published in the February 1980 BULLETIN.
Consumer Debt
A43
1.58 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars
1979
Holder, and type of credit
1976
1977
1978
Mar.
Apr.
May
June
July
Aug.
Extensions 2
211,028
254,071
298,351
26,533
27,009
27,901
26,139
26,848
27,583
28,634
By major holder
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies
Mutual savings banks..,
97,397
36,129
29,259
29,447
3,898
13,387
1,511
117,896
41,989
34,028
39,133
4,485
14,617
1,923
142,720
50,505
40,023
41,619
5,050
16,125
2,309
12,412
4,958
3,250
3,611
583
1,493
226
13,111
5,239
2,753
3,742
559
1,505
100
13,400
5,186
3,124
3,721
723
1,613
134
12,278
4,641
2,986
3,853
682
1,589
110
12,292
5,353
3,282
3,687
592
1,525
117
12,700
5,133
3,361
3,921
728
1,640
100
13,172
5,489
3,363
4,082
678
1,734
116
By major type of credit
9 Automobile
10 Commercial banks...
11
Indirect paper
12
Direct loans
13 Credit u n i o n s . . . . . . . .
14 Finance companie's...
63,743
37,886
20,576
17,310
14,688
11,169
75,641
46,363
25,149
21,214
16,616
12,662
88,987
53,028
29,336
23,692
19,486
16,473
7,794
4,424
2,449
1,975
1,587
1,783
7,999
4,707
2,635
2,072
1,415
1,877
8,260
4,680
2,684
1,996
1,566
2,014
7,178
3,952
2,146
1,806
1,485
1,741
7,447
3,936
2,151
1,785
1,611
1,900
7,667
4,085
2,276
1,809
1,661
1,921
8,430
4,544
2,569
1,975
1,655
2,231
15 Revolving
16 Commercial banks..
17 Retailers
18 Gasoline companies.
43,934
30,547
13,387
86,756
38,256
33,883
14,617
104,587
51,531
36,931
16,125
9,714
5,024
3,197
1,493
9,722
4,923
3,294
1,505
10,039
5,154
3,272
1,613
10,136
5,166
3,381
1,589
9,856
5,078
3,253
1,525
10,371
5,280
3,451
1,640
10,699
5,398
3,567
1,734
19 Mobile home
20 Commercial banks.
21 Finance companies.
22 Savings and loans..
23 Credit unions
4,859
3,064
702
929
164
5,425
3,466
643
1,120
196
6,067
3,704
886
1,239
238
518
296
63
139
20
510
304
59
134
13
668
411
58
182
17
547
304
59
167
17
519
297
71
133
18
655
362
67
206
20
531
294
69
148
20
98,492
25,900
24,258
14,407
29,447
2,969
1,511
86,249
29,811
28,684
17,216
5,250
3,365
1,923
98,710
34,457
33,146
20,299
4,688
3,811
2,309
8,507
2,668
3,112
1,643
414
444
226
8,778
3,177
3,303
1,325
448
425
100
8,934
3,155
3,114
1,541
449
541
134
8,278
2,856
2,841
1,484
472
515
110
9,026
2,981
3,382
1,653
434
459
117
8,890
2,973
3,145
1,680
470
522
100
8,974
2,936
3,189
1,688
515
530
116
1 Total
2
3
4
5
6
7
8
24 Other
25 Commercial banks
26 Finance companies
27 Credit unions
28 Retailers
29 Savings and loans
30 Mutual savings banks.
Liquidations2
189,381
218,793
253,541
22,908
22,904
24,595
23,581
24,405
25,137
24,188
By major holder
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies
Mutual savings banks..
86,605
33,183
23,756
28,388
2,813
13,263
1,373
99,251
36,041
27,592
36,479
3,374
14,485
1,571
118,907
41,075
31,689
40,233
4,009
15,849
1,779
10,947
3,730
2,722
3,468
410
1,473
158
10,994
3,861
2,614
3,436
401
1,432
166
11,735
4,293
3,000
3,438
443
1,517
169
11,294
3,728
2,842
3,565
442
1,550
160
11,630
4,168
2,940
3,507
472
1,523
165
11,834
4,584
2,970
3,589
475
1,524
161
11,651
3,716
2,952
3,639
471
1,607
152
By major type of credit
39 Automobile
40 Commercial banks...
41
Indirect paper
42
Direct loans
43 Credit unions
44 Finance companies...
53,278
31,552
17,834
13,718
12,191
9,535
60,437
36,407
19,842
16,565
13,755
10,275
69,430
42,041
22,865
19,176
15,618
11,771
6,308
3,807
2,159
1,648
1,342
1,159
6,612
3,967
2,153
1,814
1,351
1,294
7,035
4,047
2,295
1,752
1,506
1,482
6,488
3,829
2,059
1,770
1,440
1,219
6,831
3,864
2,100
1,764
1,428
1,539
7,073
3,913
2,088
1,825
1,484
1,676
6,607
3,782
2,027
1,755
1,437
1,388
45 Revolving
46 Commercial banks..
47 Retailers
48 Gasoline companies.
41,764
28,501
13,263
80,508
34,241
31,782
14,485
96,811
45,471
35,491
15,849
8,972
4,436
3,063
1,473
8,804
4,318
3,054
1,432
9,290
4,736
3,037
1,517
9,340
4,672
3,118
1,550
9,427
4,775
3,129
1,523
9,584
4,915
3,145
1,524
9,642
4,852
3,183
1,607
49 Mobile home
50 Commercial banks.
51
Finance companies.
52 Savings and loans..
53 Credit unions
4,719
2,994
884
737
104
4,860
3,079
832
823
126
5,170
3,278
812
929
151
410
265
52
80
13
428
283
53
78
14
434
286
45
88
15
445
292
45
93
15
447
280
60
92
15
473
303
54
100
16
442
284
52
91
15
89,620
23,558
22,764
11,461
28,388
2,076
1,373
72,988
25,524
24,934
13,711
4,697
2,551
1,571
82,130
28,117
28,492
15,920
4,742
3,080
1,779
7,218
2,439
2,519
1,367
405
330
158
7,060
2,426
2,514
1,249
382
323
166
7,836
2,666
2,766
1,479
401
355
169
7,308
2,501
2,464
1,387
447
349
160
7,700
2,711
2,569
1,497
378
380
165
8,007
2,703
2,854
1,470
444
375
161
7,497
2,733
2,276
1,500
456
380
152
31 Total.
32
33
34
35
36
37
38
54 Other
55 Commercial banks
56 Finance companies
57 Credit unions
58 Retailers
59 Savings and loans
60 Mutual savings banks.
i Includes auto dealers and excludes 30-day charge credit held by
travei and entertainment companies.
2
Monthly figures are seasonally adjusted,
A44
DomesticNonfinancialStatistics • November 1979
1.59 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1973
1974
1975
1976
1977
1976
1978
HI
1977
1978
H2
HI
H2
HI
H2
Nonfinancial sectors
203.1
195.4
191.3
187.4
210.8
200.7
271.9
261.1
338.5
335.4
400.3
398.2
270.6
257.0
273.2
265.2
298.4
297.2
378.7
373.6
383.9
386.5
416.8
410.0
By sector and instrument
8.3
U.S. government
7.9
Treasury securities
.4
Agency issues and mortgages
194.9
All other nonfinancial sectors
7.7
Corporate equities
187.2
Debt instruments
Private domestic nonfinancial sectors. . •. 188.8
7.9
Corporate equities
180.9
Debt instruments
105.1
Debt capital instruments
14.7
State and local obligations
9.2
Corporate bonds
11.8
12.0
-.2
179.5
3.8
175.6
164.1
4.1
160.0
98.0
16.5
19.7
85.4
85.8
-.4
125.4
10.1
115.3
112.1
9.9
102.1
98.4
16.1
27.2
69.0
69.1
-.1
202.9
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8
56.8
57.6
-.9
281.8
3.1
278.6
267.9
2.7
265.1
175.6
23.7
21.0
53.7
55.1
-1.4
346.6
2.1
344.5
314.4
2.6
311.8
196.6
28.3
20.1
79.4
79.3
.1
191.2
13.6
177.6
170.6
13.3
157.2
119.9
20.1
22.3
58.7
59.0
-.3
214.6
8.1
206.5
193.5
7.7
185.8
127.2
11.3
23.4
46.3
46.9
-.6
252.0
1.2
250.9
241.3
.5
240.8
159.3
22.0
16.6
67.2
68.4
-1.2
311.5
5.1
306.4
294.4
4.9
289.5
192.0
25.3
25.4
61.4
62.4
-.9
322.5
-2.6
325.1
301.7
-1.8
303.5
187.8
27.8
20.5
46.0
47.9
-1.9
370.8
6.8
364.0
327.0
7.0
320.0
205.3
28.7
19.8
34.8
39.5
*
6.9
15.1
11.0
5.0
4.6
3.8
62.0
9.9
9.7
31.7 - 1 2 . 3
6.6 - 2 . 6
13.7
9.0
63.7
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4
96.4
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0
104.5
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2
57.7
.6
14.3
5.0
37.3
23.6
-3.7
5.7
11.7
69.7
3.1
12.5
7.3
58.6
27.6
11.6
2.3
17.1
90.5
6.4
14.8
9.0
81.5
36.6
26.2
3.4
15.3
102.3
8.4
21.9
8.7
97.5
44.5
27.8
2.4
22.8
99.8
9.3
21.2
9.3
115.7
50.1
42.5
5.3
17.8
109.2
11.2
25.4
11.1
114.7
51.0
32.0
5.1
26.6
1 Total funds raised
2 Excluding equities
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Multifamily residential
Commercial
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
24
25
26
27
28
29
By borrowing sector
State and local governments
30
31
32
33
34
35
36
Foreign
Corporate equities
Debt instruments
Nonfarm noncorporate
Bank loans n.e.c
Open market paper
U.S. government loans
46.4
10.4
18.9
5.5
75.8
26.0
37.1
2.5
10.3
188.8
13.2
80.1
9.6
13.0
73.0
164.1
15.5
51.2
8.0
7.7
81.7
112.1
13.7
49.5
8.8
2.0
38.1
182.0
15.2
90.7
10.9
5.4
59.8
267.9
20.4
139.9
14.7
12.5
80.3
314.4
23.6
162.6
18.1
15.7
94.5
170.6
18.4
82.9
10.1
3.4
55.8
193.5
12.1
98.5
11.7
7.5
63.7
241.3
15.4
130.0
16.3
12.6
67.0
294.4
25.3
149.9
13.2
12.5
93.5
301.7
21.0
156.2
15.2
16.8
92.4
327.0
26.1
169.0
20.9
14.5
96.6
6.1
-.2
6.3
1.0
2.7
.9
1.7
15.4
-.2
15.7
2.1
4.7
7.3
1.6
13.3
.2
13.2
6.2
3.9
.3
2.8
20.8
.3
20.5
8.6
6.8
1.9
3.3
13.9
.4
13.5
5.1
3.1
2.4
3.0
32.3
-.5
32.8
4.0
18.3
6.6
3.9
20.7
.3
20.4
7.4
8.5
1.5
2.9
21.0
.3
20.7
9.7
5.0
2.4
3.6
10.7
.6
10.1
4.4
-.1
2.7
3.1
17.1
.2
16.9
5.7
6.3
2.2
2.9
20.8
-.8
21.6
5.0
9.4
3.6
3.6
43.8
-.2
44.0
3.0
27.1
9.6
4.2
Financial sectors
37 Total funds raised
38
39
40
41
42
43
44
45
46
47
48
49
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate equities
Debt instruments
Open market paper and RPs
Loans from FHLBs
By sector
50 Sponsored credit agencies
51
53
54
55
56
57
58
59
Savings and loan associations
Other insurance companies
REITs
Open-end investment companies
44.8
39.2
12.7
24.1
54.0
81.4
18.2
29.9
45.9
62.1
80.7
82.1
19.9
16.3
3.6
0
24.9
1.5
23.4
3.5
-1.2
9.0
4.9
7.2
23.1
16.6
5.8
.7
16.2
.3
15.9
2.1
-1.3
4.6
3.8
6.7
13.5
2.3
10.3
.9
-.8
.6
-1.4
2.9
2.3
-3.7
1.1
-4.0
18.6
3.3
15.7
-.4
5.5
1.0
4.4
5.8
2.1
-3.7
2.2
-2.0
26.3
7.0
20.5
-1.2
27.7
.9
26.9
10.1
3.1
-.3
9.6
4.3
41.4
23.1
18.3
0
40.0
1.7
38.3
7.5
.9
2.8
14.6
12.5
16.5
2.4
14.2
1.7
-.2
1.9
6.0
1.4
-2.5
-1.0
-1.9
20.7
4.3
17.2
-.7
9.3
2.3
7.0
5.7
2.8
-4.9
5.4
-2.0
22.6
7.1
17.9
-2.3
23.2
.9
22.3
9.5
3.1
-2.3
9.2
2.9
29.9
6.8
23.1
0
32.2
.8
31.4
10.7
3.0
1.8
10.1
5.8
38.5
21.9
16.6
0
42.2
2.2
40.0
8.5
2.1
2.6
13.5
13.2
44.3
24.3
20.1
0
37.8
1.1
36.7
6.4
-.3
3.1
15.7
11.8
16.3
3.6
24.9
1.2
2.2
6.0
.5
9.5
6.5
-1.2
17.3
5.8
16.2
1.2
3.5
4.8
.9
6.0
.6
-.7
3.2
10.3
-.8
1.2
.3
-2.3
1.0
.5
-1.4
-.1
2.9
15.7
5.5
2.3
-.8
.l
.9
6.4
-2.4
-1.0
5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
-2.2
-.9
23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
-1.0
-1.0
2.3
14.2
1.7
2.4
-1.3
-.3
.9
4.4
-2.1
-2.4
3.5
17.2
9.3
2.1
-.3
.4
.9
8.5
-2.7
.4
4.7
17.9
23.2
.8
1.3
8.2
.9
15.0
-2.4
-.6
6.8
23.1
32.2
1.5
1.2
11.7
1.0
20.2
-2.0
-1.3
21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
-1.0
-.5
24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
-1.0
-1.5
303.2
4
9.9
292.8
80.2
11.3
38.7
95.3
27.6
11.7
10.1
18.0
344.3 440.8
1 3
— 6
2^6
1.2
342.2 434.9
71.4
97.2
22.0
25.3
30.6
41.7
123.7 144.2
36.6
44.5
23.7
35.8
15.3
14.6
31.4
18.9
464.6
5
!i
465.0
100.0
27.8
34.0
141.6
50.1
54.5
22.4
34.6
498.9
—11.cJ
9.4
491.0
90.4
28.7
29.2
156.4
51.0
62.2
30.4
42.6
*
All sectors
60 Total funds raised, by instrument
248.0
62 Other corporate equities
63
64 U.S. government securities
65 State and local obligations
66
67
68 Consumer credit
69 Bank loans n.e.c
70
71
10.4
238.8
28.3
14.7
13.6
79.9
26.0
48.8
8.3
19.1
230.5 223.5
_ 7
_#i
4.8
lo!8
226.4 212.8
34.3
98.2
16.5
16.1
23.9
36.4
60.5
57.2
9.9
9.7
41.0 - 1 2 . 2
17.7 - 1 . 2
22.7
8.7
296.0 392.5
_ 9
—1 0
12^9
4.9
284.1 388.5
88.1
84.3
15.7
23.7
37.2
36.1
87.1 134.0
25.6
40.6
7.0
29.8
8.1
15.0
15.3
25.2
481.7 288.8
— 1.0 —2 4
4.1
15^8
478.0 275.4
95.2
96.0
28.3
20.1
31.6
35.7
149.0
78.8
50.6
23.6
58.4
2.3
26.4
6.2
38.6
12.6
Flow of Funds
A45
1.60 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
1973
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
HI
H2
HI
H2
HI
H2
398.2
257.0
265.2
297.2
373.6
386.5
410.0
31.8
9.5
8.2
7.2
6.9
53.7
11.9
14.7
6.7
20.5
44.6
22.5
16.2
-4.0
9.8
54.3
26.8
12.8
-2.0
16.6
85.1
40.2
20.4
4.3
20.2
109.7
43.9
26.5
12.5
26.9
46.0
21.4
10.7
-1.9
15.8
62.5
32.2
14.9
-2.0
17.5
61.8
23.9
18.4
2.9
16.7
108.4
56.5
22.5
5.8
23.7
102.4
43.6
22.2
13.2
23.4
116.9
44.1
30.7
11.8
30.3
Totals advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1..
2.8
19.1
9.2
.6
19.9
9.8
26.5
6.2
11.2
23.1
15.1
14.8
8.5
6.1
13.5
8.9
20.3
9.8
15.2
18.6
11.8
26.8
7.1
39.4
26.3
20.4
44.6
7.0
37.7
41.4
5.8
18.5
12.0
9.8
16.5
12.0
22.2
7.7
20.6
20.7
5.4
21.6
8.2
26.6
22.6
18.3
32.0
6.1
52.1
29.9
19.4
39.4
13.3
30.4
38.5
21.5
49.8
.6
45.1
44.3
183.6
18.8
14.7
10.0
48.4
98.8
7.2
156.8
22.4
16.5
20.9
26.9
76.8
6.7
169.7
75.7
16.1
32.8
23.2
17.9
-4.0
225.4
61.3
15.7
30.5
52.7
63.3
-2.0
276.5
44.1
23.7
22.5
83.3
107.3
4.3
330.0
51.3
28.3
22.5
88.2
152.2
12.5
227.5
74.6
20.1
28.8
47.5
54.6
-1.9
223.3
48.0
11.3
32.3
57.8
72.0
-2.0
258.0
47.6
22.0
18.0
78.4
94.9
2.9
295.1
40.7
25.3
27.0
88.1
119.7
5.8
322.5
56.4
27.8
23.9
86.8
140.8
13.2
337.4
46.3
28.7
21.1
89.6
163.5
11.8
161.3
84.6
35.1
23.7
17.9
125.5
66.6
24.2
29.8
4.8
122.5
29.4
53.5
40.6
-1.0
190.3
59.6
70.8
49.9
10.0
255.9
87.6
82.0
67.9
18.4
296.9
128.7
75.9
73.5
18.7
176.9
47.8
72.8
51.8
4.6
203.8
71.5
68.8
47.9
15.5
242.4
79.1
82.5
65.2
15.7
269.3
96.1
81.5
70.6
21.1
301.0
131.8
75.8
76.9
16.6
292.8
125.7
75.9
70.2
20.9
161.3
97.3
23.4
40.6
3.0
-1.0
18.4
20.2
125.5
67.5
15.9
42.1
10.3
-5.1
26.2
10.6
122.5
92.0
-1.4
32.0
-8.7
-1.7
29.7
12.7
190.3
124.6
4.4
61.3
-4.6
-.1
34.5
31.4
255.9
141.2
26.9
87.8
1.2
4.3
49.4
32.9
296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3
176.9
118.2
1.9
56.8
-6.3
4.1
35.8
23.2
203.8
131.0
7.0
65.8
-2.8
-4.3
33.2
39.7
242.4
141.4
22.3
78.7
1.6
1.2
45.3
30.7
269.3
141.1
31.4
96.9
.8
7.4
53.4
35.2
301.0
138.6
40.0
122.5
5.7
2.0
66.2
48.6
292.8
146.4
36.7
109.6
6.9
11.6
59.2
32.0
45.7
18.8
5.4
2.0
9.8
9.7
47.2
18.9
9.3
5.1
5.8
8.0
45.8
•24.1
8.4
8.4
-1.3
6.2
39.5
16.1
3.8
5.8
1.9
11.8
47.5
23.0
2.6
-3.3
9.5
15.7
71.4
33.2
4.5
-1.4
16.3
18.7
52.5
26.7
8.7
4.5
1.9
10.7
26.6
5.6
-1.0
7.1
1.9
13.0
37.9
18.3
-.9
-.7
8.0
13.2
57.1
27.8
6.0
-5.9
11.0
18.2
61.5
32.4
7.1
-3.9
8.5
17.5
81.3
34.1
2.0
1.2
24.1
20.0
73.8
98.1 131.9
-2.2
.2
2.3
*
2.4
1.3
65.4
84.0 113.5
18.4 - 1 4 . 3 - 1 3 . 6
38.8
57.9
25.3
59.4
69.1
21.8
16.1
8.2
12.6
6.4
1.9
8.8
6.2
6.3
7.3
149.5
2.2
.2
121.0
9.0
43.0
69.0
26.1
17.8
8.3
151.8 124.3
7.5
1.5
6.9
-.5
115.2 105.3
10.8 - 1 9 . 3
57.3
43.3
67.4
61.1
22.2
18.0
12.9
12.0
9.3
6.1
139.5
3.2
.5
121.6
-7.8
58.6
70.8
14.2
5.7
8.6
147.2
4.3
— .5
117.6
-4.5
51.4
70.8
25.8
20.0
5.8
151.8
.2
.9
124.4
22.6
34.6
67.2
26.4
15.7
10.7
149.0
9.8
6.1
110.8
10.1
42.3
58.5
22.2
11.8
10.5
154.6
5.1
7.7
119.6
11.4
44.4
63.8
22.1
14.0
8.1
LESS : F H L B advances
Private financial intermediation
Credit market funds advanced by private
financial institutions
Commercial banking
Savings institutions
Insurance and pension funds
Other finance
101.2
11.0
...
Public support rate (in percent)
Private financial intermediation (in percent)
Total foreign funds
75.7
17.8
29.5
28.5
14.5
10.6
3.9
146.9
121.0
143.9
171.4
197.0
223.2
176.8
166.1
185.2
208.9
210.5
235.9
16.3
28.7
22.2
20.8
25.4
27.5
17.9
23.6
20.8
29.0
26.5
28.5
87.9
3.6
80.0
21.5
72.2
-2.6
84.4
10.6
92.5
40.5
90.0
44.0
77.8
3.5
91.2
17.8
94.0
28.2
91.3
52.9
93.3
36.1
86.8
52.0
9.2
-1.2
10.4
13.1
-3.9
4.1
-.7
4.8
5.8
-1.7
10.7
—. 1
10.8
9.6
1.1
11.9
-1.0
12.9
12.3
-.4
4.0
-.9
4.9
7.4
-3.4
3.7
-1.0
4.7
7.6
-3.8
13.4
-2.4
15.8
12.7
.7
10.3
.4
9.9
11.8
-1.5
2.1
-.6
2.6
6.8
-4.7
5.9
-1.3
7.2
8.1
-2.2
-.4
-.5
.1
.4
-.8
7.9
-1.5
9.4
14.7
-6.8
NOTES BY LINE NUMBER.
28.
1978
335.4
MEMO: Corporate equities not included
above
52 Total net issues
53 Mutual fund shares
54 Other equities
55 Acquisitions by financial institutions
56 Other net purchases
17.
25.
26.
1977
261.1
48 Total of credit market instruments, deposits and currency
12.
1976
1978
200.7
38 Deposits and currency
39 Security RPs
40 Money market fund shares
41 Time and savings accounts
42
Large negotiable CDs
43
Other at commercial banks
44
At savings institutions
45
Money
46
Demand d eposits
47
Currency
1.
2.
6.
11.
1977
187.4
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
51
1976
195.4
24 Sources of funds
25 Private domestic deposits
26 Credit market borrowing
27
Other sources
28
Foreign funds
29
Treasury balances
30
Insurance and pension reserves
31
Other, net
49
50
1975
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to S&Ls
Other loans and securities
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
1974
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.
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
Domestic Nonfinancial Statistics • November 1979
A46
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
Measure
1976
1977
1979
1978
Mar.
Apr.
May
June
July'
Aug. r
Sept.r
Oct.
1 Industrial production1
130.5
138.2
146.1
153.0
150.8
152.4
152.6
152.8
151.6
152.3
152.5
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
129.7
127.6
137.1
114.6
137.2
131.7
137.9
135.9
145.3
123.0
145.1
138.6
144.8
142.2
149.1
132.8
154.1
148.3
150.8
148.2
152.9
141.7
160.4
156.3
148.4
145.4
149.1
140.4
159.7
154.5
150.3
147.8
152.0
141.9
159.5
155.7
150.2
147.6
151.8
141.9
159.5
156.5
149.7
147.1
150.8
142.1
159.4
157.6
148.7
145.5
148.3
141.6
160.3
156.3
149.7
146.9
149.8
142.9
160.3
156.4
149.7
146.8
150.3
142.0
160.5
156.8
130.3
138.4
146.8
154.5
151.6
153.8
153.9
154.1
152.4
153.4
153.4
79.5
81.1
81.9
82.7
84.4
85.6
87.1
88.3
85.3
86.9
86.3
87.4
86.2
87.5
86.1
87.9
84.9
86.9
85.2
86.7
85.0
86.8
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent)1 •2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts 3
190.2
160.5
174.3
186.0
202.0
178.0
177.0
165.0
164.0
185.0
n.a.
12 Nonagricultural employment, total4
13 Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16 Service-producing
17 Personal income, totals
18 Wages and salary disbursements
19
Manufacturing
20 Disposable personal income
120.7
100.2
97.7
95.3
131.9
220.5
208.2
177.0
176.8
125.3
104.5
101.2
98.8
136.7
244.4
230.2
198.3
194.8
131.4
109.8
105.3
102.8
143.2
274.1
258.1
222.4
217.7
135.3
114.2
108.4
105.9
146.9
298.8
281.2
244.7
135.3
114.0
108.3
105.8
147.0
300.1
282.1
244.1
135.9
114.3
108.3
105.6
147.7
301.9
283.2
244.8
239.1
136.2
114.4
108.3
105.5
148.1
304.0
285.5
245.9
136.3
114.7
108.4
105.5
148.2
308.0
287.5
247.5
136.4
114.1
107.8
104.5
148.6
310.4
289.0
246.2
244.4
136.5
114.1
107.7
104.5
148.9
312.0
291.5
248.2
137.0
114.2
107.8
104.7
149.5
n.a.
n.a.
n.a.
253.8
275.3
272.7
274.8
274.4
276.5
285.8
293.2
288.3
195.4
194.6
209.1
209.1
211.5
211.4
216.6
213.7
218.9
215.8
221.1
217.3
223.4
220.4
n.a.
223.7
c
21 Retail sales 6
Prices7
22 Consumer
23 Producer finished goods
207.4
170.5
170.3
c
229.8
c
181.5
180.6
1. The industrial production and capacity utilization series have been
revised. For a description of the changes see the August 1979 BULLETIN,
r
214.1
212.7
r
6. Based on Bureau of Census data published in Survey of Current
Business (U.S. Department of Commerce).
7. Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Department of Labor). Seasonally adjusted data for changes
in the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Department of Labor.
pp. 6 0 3 - 0 7 .
2. Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and Department of Commerce.
3. Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations Systems Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings {U.S. Department of
Labor). Series covers employees only, excluding personnel in the Armed
Forces.
5. Based on data in Survey of Current Business (U.S. Department of
Commerce). Series for disposable income is quarterly.
NOTE. Basic data (not index numbers) for series mentioned in notes
4, 5, and 6, and indexes for series mentioned in notes 3 and 7 may also be
found in the Survey of Current Business (U.S. Department of Commerce).
Figures for industrial production for the last two months are preliminary
and estimated, respectively.
2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION 1
Seasonally adjusted
Series
1979
1978
Q4
Q1
1978
Q3r
Q2
Output (1967= 100)
Q4
1979
Q1
Q2
1978
Q3
Capacity (percent of 1967 output)
Q4
1979
Q1
Q2
Q3 r
Utilization rate (percent)
1 Manufacturing
151.7
153.4
153.1
153.3
175.6
176.9
178.2
179.5
86.4
86.7
85.9
85.4
2 Primary processing
162.2
146.1
162.1
148.7
161.9
148.5
163.6
147.9
181.2
172.7
182.7
173.8
184.2
175.0
185.7
176.2
89.5
84.6
88.7
85.6
87.9
84.8
88.1
83.9
154.6
155.5
155.6
156.8
175.4
176.8
178.1
179.8
88.2
88.0
87.3
87.2
157.3
132.2
170.3
177.1
119.5
138.1
218.0
128.9
158.4
124.7
172.2
179.1
118.2
136.9
222.7
127.9
157.7
124.3
173.4
181.3
119.6
140.7
224.8
128.1
158.5
127.2
175.7
184.3
121.7
146.9
226.8
129.1
180.1
139.6
190.2
197.9
136.6
147.8
244.6
145.7
181.5
139.8
191.9
199.6
136.9
148.7
247.4
146.7
183.0
140.3
193.7
201.5
137.3
149.9
250.6
147.5
184.6
140.8
195.7
203.8
137.7
151.0
253.8
148.3
87.4
94.7
89.6
89.5
87.5
93.4
89.1
88.5
87.3
89.1
89.7
89.7
86.3
92.0
90.0
87.2
86.2
88.5
89.5
89.9
87.1
93.9
89.7
86.9
85.9
90.4
89.8
90.4
88.4
97.3
89.3
87.0
3 Advanced processing
4 Materials
65 Durable
Metal goods
materials
7 Nondurable goods
9
Textile
10
Paper
11
Chemical
12 Energy
1. The capacity utilization series has been revised. For a description of
the changes, see the August 1979 BULLETIN, pp. 606-07.
Labor Market
A47
2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
Category
1976
1977
1979
1978
Apr.
May
June
July
Aug.
Sept.
Oct.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
2 Labor force (including
Armed
Forces)1
3 Civilian labor force
Employment
4
Nonagricultural industries2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor
force)
8 Not in labor force
156,048
158,559
161,058
163,008
163,260
163,469
163,685
163,891
164,106
164,460
96,917
94,773
99,534
97,401
102,537
100,420
104,193
102,111
104,325
102,247
104,604
102,528
105,141
103,059
105,139
103,049
105,590
103,498
105,567
103,474
84,188
3,297
87,302
3,244
91,031
3,342
92,987
3,186
93,134
3,184
93,494
3,260
93,949
3,262
93,578
3,322
94,113
3,400
94,005
3,288
7,288
6,855
6,047
5,937
5,929
5,774
5,848
6,149
5,985
6,182
7.7
59,130
7.0
59,025
6.0
58,521
5.8
58,815
5.8
58,935
5.6
59,865
5.7
58,545
6.0
58,752
5.8
58,515
6.0
58,901
79,382
82,423
86,446
89,036
89,398
89,626
89,713
89,762
89,845
90,151
18,997
779
3,576
4,582
17,755
4,271
14,551
14,871
19,682
813
3,851
4,713
18,516
4,467
15,303
15,079
20,476
851
4,271
4,927
19,499
4,727
16,220
15,476
21,066
940
4,559
5,024
20,088
4,915
16,880
15,564
21,059
944
4,648
5,130
20,129
4,936
16,954
15,598
21,063
949
4,662
5,190
20,116
4,958
17,051
15,637
21,079
956
4,688
5,169
20,122
4,972
17,092
15,635
20,957
968
4,674
5,194
20,126
5,003
17,141
15,699
20,954
972
4,665
5,181
20,149
4,995
17,220
15,709
20,958
972
4,693
5,229
20,281
5,025
17,290
15,703
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
Manufacturing
Mining
Contract construction
Transportation and public utilities...
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,
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).
A48
Domestic Nonfinancial Statistics • November 1979
2.13 INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data are seasonally adjusted.
1967
Grouping
portion
1978
average
1979
1978
Aug.
Sept.
Oct.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.f Oct.e
Index (1967 = 100)
MAJOR MARKET
1 Total index
100.00 146.1 148.0 148.6 149.7 152.0 153.0 150.8 152.4 152.6 152.8 151.6 152.3 152.5
60.71
47.82
27.68
20.14
12.89
39.29
144.8
142.2
149.1
132.8
154.1
148.3
146.6
144.2
150.6
135.3
155.6
150.2
146.9
144.5
150.8
135.9
155.6
151.2
147.5
145.1
151.2
136.6
156.4
153.2
149.9
146.8
151.5
140.4
161.4
155.2
150.8
148.2
152.9
141.7
160.4
156.3
148.4
145.4
149.1
140.4
159.7
154.5
150.3
147.8
152.0
141.9
159.5
155.7
150.2
147.6
151.8
141.9
159.5
156.5
149.7
147.1
150.8
142.1
159.4
157.6
148.7
145.5
148.3
141.6
160.3
156.3
149.7
146.9
149.8
142.9
160.3
156.4
149.7
146.8
150.3
142.0
160.5
156.8
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
7.89
2.83
2.03
1.90
80
159.2
179.9
172.5
148.6
198.5
161.5
183.5
174.9
150.2
205.5
160.5
179.5
170.0
144.2
203.7
162.6
187.6
181.0
154.7
204.3
161.1
179.3
170.3
144.9
202.2
163.6
186.8
178.8
153.8
207.2
151.6
163.0
147.4
128.6
202.7
160. 5
182.7
176.3
153.1
199.0
158.6
175.9
167.4
148.0
197.5
157.2
170.3
155.6
141.8
207.8
147.7
147.6
125.1
118.5
204.8
152.3
158.3
139.8
128.0
205.2
152.8
159.8
141.9
129.0
205.3
13
14
15
16
17
5.06
1.40
1.33
1.07
2.59
147.7
133.3
135.4
164.2
148.6
149.2
132.4
133.1
167.1
150.9
149.9
136.2
137.5
167.9
149.9
148.6
132.3
132.9
165.3
150.5
150.9
129.8
131.4
171.8
153.7
150.6
128.4
130.3
173.5
153.2
145.2
115.6
116.5
170.7
150.8
148.1
128.4
130.2
170.2
149.6
148.8
129.3
131.2
170.6
150.5
149.8
129.7
131.6
171.9
151.6
147.7
121.2
124.1
171.7
152.2
148.9 148.8
128.7 128.7
131.4
171.0
150.8 151.2
19.79
4.29
15.50
8.33
145.1
131.1
148.9
140.6
146.3
133 3
149.9
141.9
147.0
135.0
150.3
141.4
146.6
132.6
150.5
141.4
147.7
130.7
152.4
142.4
148.6
130.9
153.6
145.1
148.0
127.7
153.7
145.2
148.7
128.6
154.2
145.7
149.1
130.7
154.2
146.2
148.2
126.9
154.1
147.0
148.6 148.8 149.3
128.0
154.3 154.2 154.6
145.5 145.0
7.17
2,63
1.92
2.62
1.45
158.5
192.7
118.4
153.6
162.1
159.2
194.1
118.4
154.0
161.7
160.6
196.1
119.8
155.0
162.2
161.1
198.3
118.0
155.3
163.0
164.0
203.1
122.7
155.2
167.7
163.4
202.8
121.4
154.7
167.9
163.5
201.6
120.9
156.4
169.1
164.1
205.2
121.3
154.3
167.8
163.5
205.9
121.1
152.0
162.3
162.4
206.1
119.9
149.8
158.5
164.6
209.2
121.2
151.6
164.8 165.1
209.2
121.2
152.3
12.63
6.77
1.44
3.85
1.47
160.3
145.8
207.3
121.2
149.4
163.4
148.0
209.0
123.2
153.3
163.8
147.6
208.4
122.8
153.0
164.8
148.1
208.8
123.4
153.0
169.0
152.5
207.9
129.1
159.1
170.8
152.8
205.2
130.3
160.2
168.7
150.4
204.2
128.0
156.0
171.4
151.8
203.7
130.1
157.7
171.5
152.0
205.3
130.1
156.8
171.4
151.3
207.4
130.3
151.0
171.1
151.7
210.6
131.2
147.7
172.8
152.6
211.2
130.3
153.5
5.86
3.26
1.93
67
177.2
212.0
133.8
132.8
181.2
215.3
139.2
136.0
182.5
217.6
139.5
135.7
184.1
218.2
143.3
135.5
188.1
221.2
146.6
146.9
191.6
224.4
150.5
150.0
189.9
223.0
148.8
147.7
193.9
224.9
156.7
150.8
194.0
226.4
155.3
148.1
194.6
227.0
155.2
151.0
193.6
229.5
148.7
148.3
196.1 193.5
231.1 232.1
154.5 154.9
145.9
36 Defense and space
7.51
86.5
87.9
89.0
89.3
92.4
92.9
92.9
92.5
92.3
92.8
92.0
Intermediate products
37 Construction supplies
38 Business supplies
39 Commercial energy products
6.42 151.7 153.8 153.5 154.5 159.3 157.1 156.0 156.4 156.3 156.4 156.8 156.5 156.5
6.47 156.5 157.4 157.7 158.4 163.6 163.8 163.2 162.5 162.6 162.4 163.8 164.0
1.14 168.2 169.5 170.2 170.0 173.7 173.5 174.6 172.6 169.4 167.8 168.2 166.7
2 Products
3 Final products
4
Consumer goods
5
Equipment
6 Intermediate products
7 Materials
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
18 Nondurable consumer goods
19 Clothing
20 Consumer staples
21
Consumer foods and tobacco
22
23
24
25
26
Nonfood staples
Consumer chemical products
Consumer paper products
Consumer energy products
Residential utilities
Equipment
27 Business
28 Industrial
29
Building and mining
30
Manufacturing
31
Power
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
92.8
170.6
150.7
199.9
130.7
154.9
94.0
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
20.35
4.58
5.44
10.34
5.57
149.0
140.8
166.5
143.3
121.2
151.9
142.1
168.8
147.3
126.5
153.4
145.1
170.7
148.0
127.0
155.5
147.0
172.9
150.1
129.3
158.0
146.0
184.4
149.4
124.1
159.2
145.8
186.8
150.6
126.7
155.7
136.9
187.0
147.7
123.2
157.9
142.5
188.0
149.0
122.9
159.5
141.8
191.0
150.8
126.1
160.7
138.5
192.1
154.0
130.5
157.5
129.3
190.1
152.8
128.1
157.4
131.8
190.7
151.1
125.4
45 Nondurable goods materials
46 Textile, paper, and chemical materials
47
Textile materials
48
Paper materials
49
Chemical materials
50 Containers, nondurable
51 Nondurable materials n.e.c
10.47
7.62
1.85
1.62
4.15
1.70
1.14
165.6
171.8
116.9
137.0
210.0
159.8
132.7
165.3
170.7
115.6
130.0
211.2
162.6
133.7
167.8
174.6
116.8
137.7
214.9
160.7
132.5
168.8
175.3
119.7
137.3
214.9
163.9
133.2
172.4
179.6
117.4
137.4
223.9
165.8
134.1
173.1
180.1
119.0
139.9
223.0
167.3
135.6
173.0
180.7
117.0
140.8
224.7
162.0
138.2
173.8
181.5
118.8
140.1
225.7
163.3
138.4
173.4
181.7
122.9
141.1
223.9
159.2
139.0
174.6
182.8
122.2
146.2
224.1
163.1
137.5
175.8
184.4
120.9
146.7
227.5
162.9
137.6
176.6 176.9
185.6 186.1
122.0
147.8
228.7
163.2
137.0
52 Energy materials
53 Primary energy
54 Converted fuel materials
Supplementary groups
55 Home goods and clothing
56 Energy, total
57 Products
58 Materials
For notes see opposite page.
157.7
132.1
191.5
151.3
8.48 125.3 127.5 125.6 128.6 127.1 128.7 128.4 127.7 128.3 129.1 129.3 128.9 129.9
4.65 112.6 115.6 111.5 116.7 110.6 114.6 113.0 111.7 112.4 112.8 114.0 113.5
3.82 140.8 141.9 142.7 143.0 147.2 145.9 147.1 147.2 147.6 148.8 147.8 147.7
9.35
12.23
3.76
8.48
140.0
135.4
158.0
125.3
141.9
137.1
158.7
127.5
143.0
136.0
159.6
125.6
141.2
138.2
159.8
128.6
141.6
137.5
160.8
127.1
141.6
138.4
160.3
128.7
137.2
138.7
161.9
128.4
139.1
137.6
159.9
127.7
140.5
137.2
157.3
128.3
139.3
137.1
155.2
129.1
138.7
137.7
156.6
129.3
139.9 140.2
137.4 138.3
156.7
128.9 129.9
Output
A49
2.13 Continued
Grouping
1967
proportion
SIC
code
1978
average P
1979
1978
Aug.
Sept.
Oct.
Feb.
Mar.
Apr.
May
June
July?
Aug.
Sept.? Oct.®
143.4
122.8
166.5
186.4
143.0
123.9
164.2
182.4
143.7
124.7
164.8
182.2
145.0 145.2 146.3
127.1 126.3 127.6
165.1 166.4 167.2
182.7
Index (1967 = 100)
MAJOR INDUSTRY
1 Mining and utilities .
2
Mining
3
Utilities
4
Electric
12.05 141.7 143.2 142.6
6.36 124.0 126.2 124.4
5.69 161.4 162.2 163.0
3.88 182.2 183.3 184.5
5 Manufacturing.
6
Nondurable. ,
7
Durable
87.95 146.8 148.6 149.6 150.7 153.3 154.5 151.6 153.8 153.9 154.1 152.4 153.4 153.4
35.97 156.9 158.4 159.3 159.5 162.0 163.0 161.7 162.8 163.0 164.1 164.4 164.3 164.8
51.98 139.7 141.8 142.9 144.6 147.2 148.6 144.6 147.6 147.6 147.2 144.2 145.8 145.5
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals.,
12
13
14
15
16
17
18
19
20
21
144.6
127.9
163.2
184.7
143.0
120.9
167.7
189.9
143.5
122.3
167.1
188.8
143.8
122.7
167.4
189.0
10
11, 12
13
14
.51
.69
4.40
.75
121.0
114.7
124.6
131.2
118.0
125.9
126.2
132.1
115.6
114.0
125.4
133.7
122.1
141.9
125.5
133.6
125.3
104.5
120.4
135.7
126.9
124.0
119.3
135.6
128.9
130.1
118.6
135.3
123.1
133.4
118.6
137.8
123.2
137.5
119.6
137.3
128.6
137.1
120.4
136.4
126.5
144.1
122.6
138.3
Nondurable manufacturers
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
8.75
.67
2.68
3 31
3.21
142.7
118.3
137.5
134.2
144.8
143.9
118.5
137.1
137.7
142.2
143.7
120.3
138.6
139.6
144.2
143.2
119.0
139.6
136.8
145.8
145.5
116.2
139.9
133.5
144.6
147.6
123.3
142.3
136.5
149.0
147.0
120.0
141.2
130.8
148.7
149.2
120.2
141.5
128.2
147.9
149.5
118.3
114.6
132.0
148.0
149.4
118.9
143.0
129.7
154.0
148.3 148.2
107.5
143.3 145.1
130.2
153.9 155.1 154.1
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products.
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
131.5
197.4
145.2
253.6
73.8
131.9
199.3
146.0
263.4
73.3
132.6
201.3
147.6
260.9
72.9
132.6
202.7
147.6
262.3
72.4
138.2
208.6
146.0
267.5
73.4
137.3
107.4
143.8
270.4
72.9
135.7
207.7
145.4
265.5
69.6
136.8 136.9 135.6
209.7 207.8 210.5
142.4 143.9 143.9
270.0 270.0 278.0
72.3 70.1 69.7
137.7
213.0
143.1
276.6
69.7
122.9
142.6 146.7
122.1 123.2
137.9
137.7
212.5
142.8
273.1
70.3
138.2
75.9
Durable manufactures
22 Ordnance, private and government
23 Lumber and products
24 Furniture and fixtures
25 Clay, glass, stone products . . . .
19,91
24
25
32
3.64 73.7 74.0 73.8 74.2 75.8 75.1 75.1 75.3 75.1 74.6 74.9 75.2
1.64 136.3 136.0 136.2 138.1 137.2 137.7 137.2 136.1 136.8 135.2 136.9 137.3
1.37 155.8 159.5 160.7 159.9 163.1 163.6 159.4 159.6 159.6 159.5 161.7 161.5
2.74 157.2 157.6 159.8 161.3 166.9 164.9 161.2 163.8 162.7 163.3 162.5 162.7
26
27
28
29
30
33
331,2
34
35
36
6.57 119.9 124.9
4.21 113.2 118.3
5.93 141.6 143.7
9.15 153.6 155.5
8.05 159.4 161.5
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery...
Electrical machinery
37
31 Transportation equipment
371
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment. 372-9
34 Instruments
38
39
35 Miscellaneous manufactures
127.4
121.3
144.2
156.4
163.3
129.4
123.8
144.9
157.5
164.2
120.4
110.8
150.8
162.9
173.2
123.7
116.2
150.2
164.0
174.2
121.7
115.8
148.8
161.8
170.6
122.0
115.0
147.5
165.6
174.0
121.8
9.27 132.5 134.2 134.9 139.7 139.9 143.7 131.6 141.9 139.4 135.5 124.7 131.8
4.50 169.9 171.6 171.0 178.9 173.1 179.7 156.0 176.3 169.6 160.2 138.7 150.8
133.4
152.7
4.77
2.11
1.51
121.0
114.3
150.3
164.3
174.7
124.3
118.1
149.3
164.5
175.1
127.1
119.0
149.3
165.3
174.4
121.1
112.0
147.6
166.1
171.4
143.1
i47.7
161.0
175.3
97.2 98.9 100.9 102.8 108.6 109.7 108.6 109.6 111.0 112.2 111.5 113.9 115.1
167.1 170.3 170.4 170.3 176.0 177.3 176.3 174.7 175.9 174.0 173.9 173.5 174.5
151.0 151.8 151.3 151.8 154.0 154.5 152.3 150.7 152.7 155.7 155.7 155.1 155.0
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
37 Final
38
Consumer goods.
39
Equipment
40 Intermediate
.
507.4 610.2 613.9 617.2 622.1 627.3 636.1 620.8 632.3 628.7 622.7 614.5 619.5 619.2
2390.9
2277.5
2113.4
2116.6
471.0
326.6
144.4
139.2
474.0 476.8 481.0
327.5 329.9 331.8
146.5 146.9 149.2
139.9 140.4 141.1
1. The industrial production series has been revised. For a description
of the changes, see "Revision of Industrial Production Index" in the
August 1979 BULLETIN, pp. 603-05.
2. 1972 dollars.
482.0
329.4
152.6
145.3
491.0
334.7
156.3
145.1
476.4
323.9
152.5
144.4
488.2
331.5
156.7
144.2
485.1
329.8
155.4
143.6
479.6
326.0
153.6
143.2
469.9
320.4
149.5
144.6
475.6
321.7
153.9
143.8
474.9
322.3
152.6
144.3
NOTE. Published groupings include some series and subtotals not
shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), December 1977.
A50
Domestic Nonfinancial Statistics • November 1979
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
Item
1976
1977
1979
1978
Mar.
Apr.
May
June
July
Aug.
Sept.
Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
1,296
894
402
1,677
1,126
551
1,801
1,182
619
1,621
1,056
565
1,517
1,036
481
1,618
1,047
571
1,639
1,012
627
1,528
1,001
527
1,654
1,030
624
1,733
1,032
701
4 Started
5
1-family
6
2-or-more-family
1,538
1,163
377
1,986
1,451
535
2,019
1,433
586
1,786
1,266
520
1,745
1,278
467
1,835
1,226
609
1,923
1,288
635
r
l ,786
'1,220
566
1,806
1,240
566
1,881
1,249
632
7 Under construction, end of period i..
1-family
8
9
2-or-more-family
1,147
655
492
1,442
829
613
1,355
1,378
553
1,304
770
534
1,256
793
519
1,244
r
730
r
514
l,247
'723
r
524
'1,241
'715
'525
1,240
717
523
1,362
1,026
336
1,652
1,254
398
1,866
1,368
498
1,957
1,412
545
2,015
1,438
577
r
2,016
r
l,344
r
r
l,866
r
l,345
r
521
'1,756
'1,196
'560
1,725
1,178
547
246
277
276
270
273
271
279
282
277
639
433
819
407
817
423
784
424
709
425
709
430
692
418
804
417
758
416
44.2
41.6
48.9
48.2
55.9
n.a.
60.4
n.a.
62.6
n.a.
63.0
n.a.
64.1
n.a.
63.2
n.a.
63.6
n.a.
48.1
54.4
62.7
68.5
71.1
71.8
74.3
71.5
74.2
78.2
3,002
3,572
3,905
3,650
3,760
3,860
3,560
3,770
3,850
4,010
38.1
42.2
42.9
47.9
48.7
55.1
53.8
61.8
54.7
62.5
55.9
64.2
56.8
66.1
57.9
66.7
57.7
66.3
10 Completed
11
1 -family
12 2-or-more-family
13 Mobile homes shipped
14
15
16
17
18
Merchant builder activity in 1-family
units
Number sold
Number for sale, end of period
i
Price (thousands of dollars) 2
Median
Units sold
Units for sale
Average
Units sold
r
672
n. a.
757
412
n.a.
n.a.
EXISTING UNITS (1-family)
19 Number sold
Price of units sold (thous. of dollars)2
20 Median
21 Average
n.a.
66.1
Value of new construction *
(millions of dollars)
CONSTRUCTION
22 Total put in place
148,778
172,552
202,219
216,676
216,212
223,205
224,686
232,593
232,407
235,801
23 Private
24
Residential
25
Nonresidential, total
Buildings
26
Industrial
27
Commercial
28
Other
29
Public utilities and other
110,416
60,519
49,897
134,723
80,957
53,766
157,455
93,088
64,367
172,672
96,460
76,212
171,692
95,496
76,196
174,803
94,963
79,840
178,703
97,339
81,364
181,678
98,781
82,897
182,871
100,056
82,815
183,654
101,166
82,488
7,182
12,757
6,155
23,803
7,713
14,789
6,200
25,064
10,762
18,280
6,659
28,666
15,201
20,990
7,071
32,967
14,034
21,463
7,150
33,325
14,504
23,601
7,141
34,101
14,697
24,785
7,306
33,958
15,547
24,785
7,427
35,140
13,751
25,818
7,532
35,714
13,874
25,799
7,478
35,337
38,312
1,521
9,439
3,751
23,601
37,828
1,517
9,280
3,882
23,149
44,762
1,462
8,627
3,697
23,503
44,004
1,983
8,882
4,854
28,285
44,823
1,550
9,875
4,417
30,376
48,402
1,531
11,674
5,383
29,814
45,983
1,787
10,250
3,572
30,374
50,916
1,459
11,166
5,371
32,920
49,536
1,702
10,802
5,273
31,759
52,147
1,717
n.a.
n.a.
n.a.
30 Public
31
Military
32 Highway
33 Conservation and development...
34 Other 3
1. Not at annual rates.
2. Not seasonally adjusted.
3. Beginning January 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.
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 those reported
to the Census Bureau from 14,000 jurisdictions through 1977, and 16,000
jurisdictions beginning with 1978.
Prices
A51
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
Item
1978
Sept.
1979
Sept.
8.3
7.9
10.8
6.7
7.7
5.2
9.1
7.1
9.4
1 month to
3 months (at annual rate) to
1979
1979
1978
Index
level
Sept.
1979
(1967
= 100)3
Sept.
May
June
July
Aug.
Sept.
13.4
13.2
1.1
1.0
1.0
1.1
1.1
223.4
13.3
7.5
15.8
9.1
25.8
13.8
8.7
14.5
12.3
4.2
16.2
8.7
25.7
14.3
10.7
15.1
.9
.7
1.1
.5
1.8
1.3
1.0
1.3
1.0
.2
1.3
.8
2.1
1.0
.5
1.1
.9
.9
1.3
.7
1.9
1.2
.9
1.3
1.1
.9
1.2
.7
1.8
1.1
.8
1.1
214.1
237.1
201.8
194.5
209.6
240.7
179.0
252.1
14.9
11.2
18.0
15.4
11.5
19.3
1.2
.9
1.3
1.1
.8
1.4
1.4
.7
1.3
1.0
1.7
1.2
1.0
1.4
219.6
211.5
271.9
10.5
11.1
15.3
8.8
8.8
13.0
11.2
14.3
'7.5
16.0
'6.7
21.0 ' - 1r 1 . 3
17.9
13.4
'9.8
10.3
r
17.9
12.0
14.0
'15.3
15.0
19.6
13.1
23.2
4.3
18.5
18.8
'.9
'1.0
0.0
'1.6
'.6
1.7
'1.4
1.2
1.6
1.2
1.8
.1
1.0
1.4
1.4
1.8
1.8
1.9
.3
1.6
1.5
220.4
221.3
227.8
215.9
217.7
258.0
252.1
19.8
21.2
29.2
31.0
'22.2
-7.1
21.0
13.9
1.4
.5
-.2
2.9
1.5
362.1
248.7
Dec.
Mar.
12.1
8.5
13.0
12.4
10.0
13.5
9.8
18.4
11.6
7.6
12.2
9.6
10.2
9.6
11.3
6.7
7.2
7.7
7.1
14.5
17.7
12.9
10.0
16.5
10.6
3.6
11.7
7.8
7.9
12.0
12.6
9.9
16.1
8.5
7.7
10.9
12.0
9.3
16.7
8.4
8.4
10.2
7.4
8.4
9.2
6.6
11.8
13.3
8.8
15.8
8.3
15.3
14.8
14.9
20.0
23.0
13.9
June
CONSUMER PRICES 1
2 Commodities
3 Food
4 Commodities less food
5
Durable
6
Nondurable
7 Services
8 Rent
Other groupings
10 All items less food
11 All items less food and energy
.1
1.2
.7
2.1
1.1
.8
1.2
1.2
0
PRODUCER PRICES
20
21
Crude
Nonfood
Food
1. Figures for consumer prices are those for all urban consumers.
2. Excludes intermediate materials for food manufacturing and manufactured animal feeds.
.4
'.5
.4
'.5
- 1 . 5 ' — 1.2
'1.4
1.5
.6
'.6
.8
'1.0
1.0
'1.0
2.4
-.2
'3.2
-1.2
3. Not seasonally adjusted.
SOURCE. Bureau of Labor Statistics.
2.1
A52
Domestic Nonfinancial Statistics • November 1979
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
Account
1976
1977
1978
1978
1979
Q2
Q3
Q4
Ql
Q2
Q3 p
GROSS NATIONAL PRODUCT
1 Total
1,702.2
1,899.5
2,127.6
2,104.2
2,159.6
2,235.2
2,292.1
2,329.8
2,391.5
1,089.9
157.4
443.9
488.5
1,210.0
178.8
481.3
549.8
1.350.8
200.3
530.6
619.8
1,331.2
200.3
521.8
609.1
1,369.3
203.5
536.7
629.1
1,415.4
212.1
558.1
645.1
1,454.2
213.8
571.1
669.3
1,475.9
208.7
581.2
686.0
1,528.6
213.7
602.5
712.4
243.0
233.0
164.9
57.3
107.6
68. 1
65.7
303.3
281.3
189.4
62.6
126.8
91.9
88.8
351.5
329. 1
221.1
76.5
144.6
108.0
104.4
352.3
326.5
218.8
75.2
143.6
107.7
104.3
356.2
336.1
225.9
79.7
146.3
110.2
106.4
370.5
349.8
236.1
84.4
151.8
113.7
110.0
373.8
354.6
243.4
84.9
158.5
111.2
107.8
395.4
361.9
249.1
90.5
158.6
112.9
109.1
392.1
372. 1
257.2
94.6
162.6
114.9
110.8
Change in business inventories
Nonfarm
10.0
12.1
21.9
20.7
22.3
21.3
25.8
25.3
20.0
18.5
20.6
19.3
19.1
18.8
33.4
32.6
20.0
19.2
15 Net exports of goods and services
16 Exports
17 Imports
8.0
163.3
155.4
-9.9
175.9
185.8
-10.3
207.2
217.5
-7.6
205.7
213.3
-6.8
213.8
220.6
-4.5
224.9
229.4
4.0
238.5
234.4
-8.1
243.7
251.9
-5.3
266.4
271.7
18 Government purchases of goods and services...
19 Federal
20 State and local
361.3
129.7
231.6
396.2
144.4
251.8
435.6
152.6
283.0
428.3
148.2
280.1
440.9
152.3
288.6
453.8
159.0
294.8
460.1
163.6
296.5
466.6
161.7
304.9
476.2
162.5
313.7
1,692.1
762.7
305.9
456.8
776.7
162.7
1,877.6
842.2
345.9
496.3
866.4
190.9
2,105.2
930.0
380.4
549.6
969.3
228.2
2,078.4
922.5
378.0
544.5
956.2
225.6
2,139.5
940.9
382.6
558.3
981.7
237.0
2,214.5
983.8
402.3
581.6
1.005.3
246.0
2,272.9
1,011.8
425.5
586.2
1,041.4
238.9
2,296.4
1,018.1
422.4
595.7
1,064.2
247.5
2,371.5
1,035.5
424.3
611.3
1,098.8
257.2
10.0
5.3
4.7
21.9
11.9
10.0
22.3
13.9
8.4
25.8
13.1
12.7
20.0
10.3
9.7
20.6
13.4
7.2
19.1
18.4
.7
33.4
24.3
9.1
20.0
9.8
10.2
1,273.0
1,340.5
1,399.2
1,395.2
1,407.3
1,426.6
1,430.6
1,422.3
1,430.8
31 Total
1,359.8
1,525.8
1,724.3
1,703.9
1,752.5
1,820.0
1,869.0
1,897.9
n.a.
32 Compensation of employees
33 Wages and salaries
34
Government and government enterprises..
35
Other
36 Supplement to waues and salaries
37
Employer contributions for social
insurance
38
Other labor income
1.037.8
890.0
188.0
702.0
147.8
1,156.9
984.0
201.3
782.7
172.9
1.304.5
1,103.5
218.0
885.5
201.0
1,288.2
1,090.0
215.3
874.6
198.3
1,321.1
1,117.4
219.2
898.1
203.7
1,364.8
1,154.7
225.1
929.6
210.1
1,411.2
1,189.4
228.1
961.3
221.8
1,439.7
1,211.5
231.2
980.3
228.2
1,471.8
1,237.0
234.5
1,002.5
234.8
70.4
77.4
81.2
91.8
94.6
106.5
93.6
104.7
95.5
108.2
98.2
111.9
105.8
116.0
107.9
120.3
109.9
124.9
89.3
71.0
18.3
100.2
80.5
19.6
116.8
89.1
27.7
115.0
87.3
27.7
117.4
91.3
26.1
125.7
94.4
31.3
129.0
94.8
34.2
129.3
95.5
33.7
128.6
98.9
29.7
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2
3
4
5
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
Nonfarm
13
14.
By major type of product
21 Final sales, total
22 Goods
23
Durable
24
Nondurable
25 Services
26 Structures
27 Change in business inventories
28 Durable goods
29 Nondurable goods
30 MEMO: Total GNP in 1972 dollars
NATIONAL INCOME
39 Proprietors'income1
40 Business
and professional1
41
Farm1
42 Rental income of persons2
1
43 Corporate profits
44 Profits before tax 3
45 Inventory valuation adjustment
46 Capital consumption adjustment
47 Net interest
24.7
25.9
24.4
26.8
27.1
27.3
26.8
26.5
126.8
156.0
-14.6
-14.5
22. 1
150.0
177. 1
-15.2
-12.0
167.7
206.0
-25.2
-13. 1
169.4
207.2
-25.1
-12.6
175.2
212.0
-23.0
-13.8
184.8
227.4
-28.8
-13.8
178.9
233.3
-39.9
-14.5
176.6
227.9
-36.6
-14.7
n.a.
n.a.
-40.8
-17.6
83.8
94.0
109.5
106.8
111.9
117.6
122.6
125.6
130.8
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.
3. For after-tax profits, dividends, and the like, see table 1.50.
SOURCE. Survey of Current Business (Department of Commerce).
National Income Accounts
A53
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
Account
1976
1977
1979
1978
1978
Q2
Q3
Q4
Ql
Q2
Q3*
PERSONAL INCOME AND SAVING
6
7
Service industries
Government and government enterprises
13 Dividends
16
Old-age survivors, disability, and health
17
LESS: Personal contributions for social
18 EQUALS' Personal income
19
LESS: Personal tax and nontax payments
1,381.6
1 S31.6
1,717.4
1,689.3
1,742.5
1,803.1
1,852.6
1,892.5
1,943.4
890.0
307.2
237.4
216.3
178.5
188.0
984.0
343.1
766.0
739.1
200.5
201.3
1,103.3
387.4
298.3
269.4
228.7
217.8
1,090.0
383.4
294.1
265.9
225.4
215.3
1,116.8
393.7
300.8
272.5
231.9
218.7
1,154.3
408.6
312.7
281.6
239.4
224.7
1,189.3
423.0
324.8
291.1
247.2
228.0
1,212.4
431.7
328.5
295.8
252.8
232.1
1,237.1
437.8
331.6
303.8
260.9
234.6
77.4
89.3
71.0
18.3
37.5
127.0
193.8
22.1
91.8
100.2
80.5
19.6
24.7
42.1
141.7
208.4
106.5
116.8
89.1
27.7
25.9
47.2
163.3
224.1
104.7
115.0
87.3
27.7
24.4
46.0
159.4
218.8
108.2
117.4
91.3
26.1
26.8
47.8
167.2
228.3
111.9
125.7
94.4
31.3
27.1
49.7
174.3
231.8
116.0
129.0
94.8
34.2
27.3
51.5
181.0
237.3
120.3
129.3
95.5
33.7
26.8
52.3
187.6
243.6
124.9
128.6
98.9
29.7
26.5
52.8
193.6
261.0
92.9
105.0
116.3
112.4
119.8
121.5
123.8
127.1
138.9
55.6
61.3
69.6
69.0
70.2
71.8
78.7
79.8
81.1
1,943.4
1,381.6
1,531.6
1,717.4
1,689.3
1,742.5
1,803.1
1,852.6
1,892.5
197.1
226.4
259.0
252.1
266.0
278.2
280.4
290.7
306.4
20 EQUALS: Disposable personal income
1,184.5
1,305.1
1,458.4
1,437.3
1,476.5
1,524.8
1,572.2
1,601.7
1,636.9
21
LESS* Personal outlays
1,115.9
1,240.2
1,386.4
1,366.1
1,405.6
1,453.4
1,493.0
1,515.8
1,570.0
22 EQUALS* Personal saving
68.6
65.0
72.0
71.2
70.9
71.5
79.2
85.9
66.9
5,916
3.813
4,144
5.8
6,181
3,974
4,285
5.0
6,402
4,121
4,449
4.9
6,392
4,099
4,426
5.0
6,433
4,138
4,462
4.8
6,506
4,197
4,522
4.7
6,514
4,197
4,536
5.0
6,459
4,155
4,510
5.4
6,483
4,190
4,487
4.1
271.9
295.6
324.9
324.2
330.4
336.1
345.2
360.5
n.a.
68.6
25.5
-14.6
65.0
35.2
-15.2
72.0
36.0
-25.2
71.2
38.7
-25.1
70.9
40.0
-23.0
71.5
40.1
-28.8
79.2
36.1
-39.9
85.9
35.6
-36.6
66.9
n.a.
-40.8
111.6
66.1
121.3
74.1
132.9
84.0
131.7
82.7
134.3
85.2
136.8
87.7
139.9
89.9
145.1
93.9
150.1
97.5
-35.7
-53.6
17.9
-19.5
-46.3
26.8
-.3
-27.7
27.4
5.0
-24.6
29.6
2.3
-20.4
22.7
10.8
-16.3
27.1
15.8
-11.7
27.6
12.7
-7.0
19.7
n.a.
n.a.
n.a.
1.1
1.1
1.1
242.3
243.0
-.1
283.6
303.3
-19.6
327.9
351.5
-23.5
331.5
352.3
-20.8
336.5
356.2
-19.6
351.0
370.5
-19.4
362.8
373.8
-11.0
373.1
395.4
-22.3
371.9
392.1
-20.2
6.1
7.5
3.3
2.3
3.9
4.1
.6
-1.3
MEMO:
Per capita (1972 dollars)
23 Gross national product
24 Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross private saving
28 Personal saving
29 Undistributed corporate profits1
30 Corporate inventory valuation adjustment
Capital consumption allowances
31 Corporate
32 Noncorporate
33 Wage accruals less disbursements
34 Government surplus, or deficit (—), national
income and product accounts
35 Federal
36 State and local
37 Capital grants received by the United States,
38 Investment...
39 Gross private domestic
41 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
n.a.
SOURCE. Survey of Current Business (Department of Commerce).
A54
International Statistics • November 1979
3.10 U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1979
1978
Item credits or debits
6
7
8
9
10
11
Merchandise trade balance2
Merchandise exports
Merchandise imports
Military transactions, net
Other service transactions, net
MEMO: Balance on goods and s e r v i c e s 3 . 4
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
12 Change in U.S. government assets, other than official
reserve assets, net (increase, —)
13 Change in U.S. official reserve assets (increase, —)
14
15
16
17
Special drawing rights (SDRs)
Reserve position in International Monetary Fund
Foreign currencies
18 Change in U.S. private assets abroad (increase, — )3
Bank-reported claims
Nonbank-reported claims
U.S. purchase of foreign securities, 3net
U.S. direct investments abroad, net
19
20
21
22
23 Change in foreign official assets in the United States
(increase, + )
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities 5
26
27
Other U.S. liabilities reported
by U.S. banks
Other foreign official assets6
28
29 Change in foreign private assets in the United States
(increase, +)3
30
U.S. bank-reported liabilities
31
U.S. nonbank-reported liabilities
32
Foreign private purchases of U.S. Treasury securities,
33
34
35
37
38
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net3
Allocation of SDRs
Owing to seasonal adjustments
Statistical discrepancy in recorded data before seasonal
adjustment
1978
Q4
Q1
Q2
-3,227
-5,955
-313
722
415
1,731
-965
-85
-8,012
36,491
-44,503
247
4,952
819
-1,994
-6,369
39,315
-45,684
-239
6,599
1,010
1,001
-6,115
41,348
-47,463
34
6,864
954
1,737
-7,716
42,792
-50,508
-92
7,398
827
417
Q2
Q3
-3,426
-2,858
-9,306 -30,873 -34,187 -7,907
141,884
35,267
120,816
114,745
-124,051 -151,689 -176,071 -43,174
1,679
237
492
674
4,854
17,989
21,645
15,975
3,241
703
1,783
2,260
-8,809 -2,113
-9,423
9,603
4,605
1
O
3
4
1977
1976
-14,092
-13,895
-1,851
-3,146
-1,895
-2,775
-1,934
-3,152
-486
-827
-463
-770
-524
-790
-517
-805
-485
-897
-4,214
-3,693
-4,656
-1,263
-1,390
-994
-1,094
-1,000
-2,558
0
-78
-2,212
-268
-375
-118
-121
-294
158
732
-65
1,249
4,231
-4,683
248
0
-104
437
-85
115
0
-43
1(95
-37
182
-65
1,412
3,275
-4,440
-3,585
0
-1,142
-86
-2,357
343
0
6
-78
415
-44,498
-21,368
-2,296
-8,885
-11,949
-31,725
-11,427
-1,940
-5,460
-12,898
-57,033
-33,023
-3,853
-3,487
-16,670
-4,451
715
315
-1,095
-4,386
-8,774
-5,488
-29
-475
-2,782
-29,442
-21,980
-1,898
-918
-4,646
-2,958
6,572
-2,719
-1,056
-5,755
-14,811
-7,147
17,573
9,319
573
4,507
969
2,205
36,656
30,230
2,308
1,240
773
2,105
33,758
23,542
656
2,754
5,411
1,395
-5,265
-5,813
211
-136
-164
637
4,641
3,029
443
122
963
84
18.764
13,422
-115
2,045
3,156
256
-9,391
-8,872
-5
-164
-563
213
-9,515
-12,737
94
154
2,829
145
18,826
10,990
-578
14,167
6,719
473
29,956
16,975
1,640
6,207
1,865
315
10,717
7,958
1,004
10,475
7,556
-177
10,868
7,157
-651
13,931
11,299
2,783
1,284
4,347
534
2,713
3,728
2,180
2,867
6,294
803
1,347
1,877
-1,053
528
2,280
1,549
540
1,008
2,583
790
989
-239
893
1,978
0
10,265
0
-937
0
11,139
0
7,950
517
0
-2,082
-2,716
0
1,328
1,301
1,139
4,606
985
0
12,016
748
10,265
-937
11,139
7,433
634
27
3,621
11,268
-2,558
13,066
-375
35,416
732
31,004
248
-5,129
115
4,519
182
16,719
-3,585
-9,227
343
-9,669
9,581
6,351
-727
-2,705
-1,794
1,803
-1,916
676
373
204
259
50
69
63
31
48
n.a.
-639
-7,025
n.a.
MEMO:
39
40
41
Changes in official assets
U.S. official reserve assets (increase, —)
Foreign official assets in the United States (increase, -f )•.
Changes in Organization of Petroleum Exporting Countries official assets in the United States (part of line 25
42 Transfers under military grant programs (excluded from
lines 4, 6, and 11 above)
1. Seasonal factors are no longer calculated for lines 13 through 42.
2. Data are on an international accounts (IA) basis. Differs from the
census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Differs from the definition of "net exports of goods and services" in
the national income and product (GNP) account. The GNP definition
makes various adjustments to merchandise trade and service transactions.
5. Primarily associated with military sales contracts and other transactions 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.
Item
1976
1977
1979
1978
Mar.
Apr.
May
June
July
143,574
14,452
13,883
13,862
15,038
15,669
Aug.
Sept.
15,821
15,832
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
115,156
2 GENERAL IMPORTS including
merchandise for immediate consumption plus entries into bonded
warehouses
121,009
147,685
172,026
15,273
16,036
16,342
16,937
16,777
18,177
18,666
3 Trade balance
-5,853
-26,535
-28,452
-821
-2,153
-2,480
-1,900
-1,108
-2,357
-2,833
121,150
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. Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1979
Type
1976
1977
1978
Apr.
May
June
July
Aug.
Sept.
Oct.*
1 Total i
18,747
19,312
18,650
21,403
22,230
21,246
20,023
20,023
18,534
17,994
2 Gold stock, including
Exchange
Stabilization Fund2
11,598
11,719
11,671
11,418
11,354
11,323
11,290
11,259
11,228
11,194
3 Special drawing rights 1,3
2,395
2,629
1,558
2,602
2,624
2,670
2,690
2,689
2,725
2,659
4 Reserve position 1 in International
Monetary Fund
4,434
4,946
1,047
1,097
1,193
1,204
1,200
1,277
1,280
1,238
320
18
4,374
6,286
7,059
6,049
4,843
4,798
3,301
2,903
5 Foreign currencies4
1. Beginning July 1974, the IMF adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
2. Gold held under earmark at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United
States; see table 3.24.
3. Includes allocations by the International Monetary Fund of SDRs as
follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710
million on Jan. 1, 1972; and $1,139 million on Jan. 1, 1979; plus net
transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
A56
International Statistics • November 1979
3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data
Millions of dollars, end of period
Asset account
1976
1977
1979
19782
Feb.
Mar.
Apr.
May
June
July
Aug .P
All foreign countries
219,420
258,897
306,795
296,983
307,688
303,799
311,051
326,732
326,122
349,983
7,889
4,323
3,566
11,623
7,806
3,817
17,340
12,811
4,529
16,094
11,217
4,877
22,894
17,300
5,594
19,959
14,233
5,726
24,527
17,917
6,610
'29,267
22,633
'6,634
26,575
19,704
6,871
41,917
35,203
6,714
204.486
5 Claims on foreigners
6 Other branches of parent bank.... 45,955
7 Banks
83,765
1
8 Public borrowers
10,613
9 Nonbank foreigners
64,153
238,848
55,772
91,883
14,634
76,560
278,135
70,338
103,111
23,737
80,949
268,649
64,518
99,720
24,586
79,825
271,828
65,257
101,840
24,895
79,836
270,946
64,076
101,772
24,828
80,270
274,207 '284,351
69,349
65,908
103,242 107,564
24,834
24,690
80,367 '82,604
286,209
70,020
107,715
24,579
83,895
294,541
74,528
111,671
24,226
84,116
2 Claims on United States
3 Parent bank
4 Other
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
13 Parent bank
14 Other
15 Claims on foreigners
16 Other branches of parent bank....
17 Banks
18 Public borrowers1
19 Nonbank foreigners
20 Other assets
7,045
8,425
11,320
12,240
12,966
12,894
12,317
13,114
13,338
13,525
167,695
193,764
224,940
214,590
224,453
221,904
228,311
237,903
234,039
258,716
7,595
4,264
3,332
11,049
7,692
3,357
16,382
12,625
3,757
15,159
10,987
4,172
22,029
17,108
4,921
18,989
13,994
4,995
23,579
17,735
5,844
'28,197
22,379
'5,818
25,506
19,448
6,058
40,797
34,937
5,860
156,896
37,909
66,331
9,022
43,634
178,896
44,256
70,786
12,632
51,222
203,498
55,408
78,686
19,567
49,837
193,717
49,864
74,861
20,338
48,654
196,496
50,077
77,236
21,091
48,092
196,404
49,615
77,528
20,851
48,410
198,547 '203,370
52,884
50,738
79,002
81,316
20,552
20,815
47,992 '48,618
202,061
53,421
79,830
20,187
48,623
211,257
58,041
83,950
20,082
49,184
3,204
3,820
5,060
5,714
5,928
6,511
6,185
6,336
6,472
6,662
United Kingdom
21 Total, all currencies
22 Claims on United States
23 Parent bank
24 Other
25 Claims on foreigners
26 Other branches of parent bank....
27 Banks
28 Public borrowers1
29 Nonbank foreigners
30 Other assets
31 Total payable in U.S. dollars
32 Claims on United States
34
Other
35 Claims on foreigners
36 Other branches of parent bank....
37 Banks
38 Public borrowers1
39 Nonbank foreigners
81,466
90,933
106,593
101,179
102,144
102,876
104,915
112,881
115,217
120,703
3,354
2,376
978
4,341
3,518
823
5,370
4,448
922
3,912
2,689
1,223
5,019
3,544
1,475
5,268
3,679
1,589
6,303
4,410
1,893
'7,492
5,495
'1,997
8,408
6,177
2,231
10,559
8,520
2,039
75,859
19,753
38,089
1,274
16,743
84,016
22,017
39,899
2,206
19,895
98,137
27,830
45,013
4,522
20,772
94,032
24,474
44,032
4,548
20,978
93,840
24,911
42,964
4,608
21,357
94,120
24,435
43,308
4,547
21,830
95.266 '101,693
25,248
29,158
43,657
44,800
4,579
4,872
21,782 '22,863
103,033
28,376
46,291
4,489
23,877
106,394
31,800
46,625
4,639
23,330
2,253
2,576
3,086
3,235
3,285
3,488
3,346
3,696
3,776
3,750
61,587
66,635
75,860
70,525
71,499
72,015
73,480
78,155
79,211
85,380
3,275
2,374
902
4,100
3,431
669
5,113
4,386
727
3,618
2,610
1,008
4.710
3,488
1,222
4,946
3,612
1.334
5,981
4,374
1,607
'7,033
5,386
'1,647
7,956
6,060
1,896
10,146
8,443
1,703
57,488
17,249
28,983
846
10,410
61,408
18,947
28,530
1,669
12,263
69,416
22,838
31,482
3,317
11,779
65,416
19,884
30,185
3,414
11,933
65,214
20,370
29,393
3,523
11,928
65,356
19,866
29,924
3,429
12,137
65,968
20,505
30,211
3,331
11,921
'69,451
23,999
29,803
3,396
'12,253
69,496
23,481
30,626
3,166
12,223
73,503
26,983
31,318
3,210
11,992
824
1,126
1,331
1,491
1,575
1,713
1,531
1,671
1,759
1,731
Bahamas and Caymans
42 Claims on United States
44
Other
45 Claims on foreigners
46 Other branches of parent bank....
47 Banks
48 Public borrowers1
49 Nonbank foreigners
50 Other assets
51 Total payable in U.S. dollars
For notes see opposite page.
66,774
79,052
91,735
88,999
97,509
93,832
98,057
103,387
98,839
113,512
3,508
1,141
2,367
5,782
3,051
2,731
9,635
6,429
3,206
10,000
6,786
3,214
15,774
12,158
3,616
12,859
9,332
3,527
16,360
12,244
4,116
19,979
15,952
4,027
16,613
12,566
4,047
29,021
24,929
4,092
62,048
8,144
25,354
7,105
21,445
71,671
11,120
27,939
9,109
23,503
79,774
12,904
33,677
11,514
21,679
76,507
11,841
31,534
12,125
21,007
79,057
12,086
33,821
12,573
20,577
77,992
11,756
33,524
12,360
20,352
78,869
11,886
34,063
12,703
20,217
80,601
11,295
36,560
12,445
20,301
79,476
11,871
34,940
12,301
20,364
81,370
10,745
37,897
11,981
20,747
1,217
1,599
2,326
2,492
2,678
2,981
2,828
2,807
2,750
3,121
62,705
73,987
85,417
82,616
91,184
87,875
91,829
97,028
92,216
106,767
Overseas Branches
A57
3.13 Continued
Liability account
1976
1977
1979
19782
Feb.
Mar.
Apr.
May
June
July
Aug.*
All foreign countries
219,420
258,897
306,795
296,983
307,688
303,799
311,051
326,732
326,122
349,983
53 To United States
54 Parent bank
55 Other banks in United States
56 Nonbanks
32,719
19,773
44,154
24,542
57,948
28,564
12,338
17,046
54,731
24,529
9,196
21,006
56,447
21,484
12,547
22,416
56,039
23,992
9,891
22,156
57,668
23,440
9,904
24,324
61,056
19,362
14,988
26,706
60,129
20,263
12,456
27,410
67,746
20,221
17,887
29,638
57 Foreigners
58 Other branches of parent bank
59 Banks
60 Official institutions
179,954
44,370
83,880
25,829
25,877
206,579
53,244
94,140
28,110
31,085
238,912
67,496
97,711
31,936
41,769
232,286
62,410
94,312
32,028
43,536
240,968
62,431
102,346
34,275
41,916
237,377
61,982
100,148
33,006
42,241
242,186
63,709
101,779
34,107
42,591
253,784
66,537
109,180
34,377
43,690
253,336
67,941
104,995
35,363
45,037
269,778
72,815
117,594
33,426
45,943
9,966
10,273
10,383
11,197
11,892
12,657
12,459
232,240
263,927
52 Total, all currencies
62 Other liabilities
6,747
8,163
9,935
230,810
173,071
198,572
221,051
229,706
226,469
243,093
240,054
64 To United States
65 Parent bank
66 Other banks in United States
67 Nonbanks
31,932
19,559
J 12 373
42,881
24,213
18 669
55,811
27,493
12,084
16,234
52,577
23,523
8,855
20,199
54,357
20,452
12,302
21,603
54,070
23,048
'9,688
'21,334
55,536
22,503
9,671
23,362
58,516
18,340
14,690
25,486
57,487
19,225
12,150
26,112
65,135
19,178
17,424
28,533
68 To foreigners
69 Other branches of parent bank
70 Banks
137,612
37,098
60,619
22,878
17,017
151,363
43,268
64,872
23,972
19,251
169,927
53,396
63,000
26,404
27,127
163,029
48,411
59,226
26,413
28,979
169,665
48,134
65,597
28,524
27,410
166,928
48,371
63,977
27,108
27,472
170,528
49,420
65,250
28,310
27,548
178,217
51,007
70,848
28,117
28,245
176,189
52,039
65,648
29,497
29,005
192,067
56,719
77,936
27,383
30,029
3,527
4,328
5,072
5,445
5,684
5,471
6,176
6,360
6,378
6,725
63 Total payable in U.S. dollars
73 Other liabilities
United Kingdom
74 Total, all currencies
75 To United States
76 Parent bank
77 Other banks in United States
78 Nonbanks
79 To foreigners
80 Other branches of parent bank...
81 Banks
84 Other liabilities
85 Total payable in U.S. dollars
86 To United States
87 Parent bank
88 Other banks in United States
89 Nonbanks
91
92
Other branches of parent bank...
Banks
95 Other liabilities
81,466
90,933
106,593
101,179
102,144
102,876
104,915
112,881
115,217
120,703
5,997
1,198
I| A 7QR
7,753
1,451
6 302
9,730
1,887
4,232
3,611
9,214
1,731
3,216
4,267
10,086
1,461
3,677
4,948
10,781
1,814
3,541
5,426
11,697
2,113
3,380
6,204
12,779
1,505
4,265
7,009
13,626
1,706
4,842
7,078
17,174
2,669
6,175
8,330
73,228
7,092
36,259
17,273
12,605
80,736
9,376
37,893
18,318
15,149
93,202
12,786
39,917
20,963
19,536
88,122
11,303
36,655
20,637
19,527
88,068
10,910
38,318
21,845
16,995
88,174
11,023
39,391
20,115
17,645
88,796
10,931
38,417
21,312
18,136
95,385
11,353
42,297
23,140
18,595
96,258
11,193
41,336
24,017
19,712
98,557
11,467
46,256
21,825
19,009
2,241
2,445
3,661
3,843
3,990
3,921
4,422
4,717
5,333
4,972
63,174
67,573
77,030
72,293
72,639
72,653
74,127
79,256
80,398
86,642
5,849
1,182
)J A4,667
7.480
1,416
9,328
1,836
4,144
3,348
8,855
1,694
3,122
4,039
9,756
1,418
3,626
4,712
10,439
1,780
3,492
5,167
11,200
2,047
3,321
5,832
12,199
1,460
4,194
6,545
13,077
1,637
4,777
6,663
16,572
2,613
6,088
7,871
56,372
5,874
25,527
15,423
9,547
58,977
7,505
25,608
15,482
10,382
66,216
9,635
25,287
17,091
14,203
61,729
8,393
21,911
16,868
14,557
61,215
7,985
23,017
18,030
12,183
60,689
7,706
24,002
16,197
12,784
60,948
7,777
22,684
17,486
13,001
65,081
7,711
25,436
19,093
12,841
65,403
7,377
23,893
20,288
13,845
68,035
7,720
28,698
18,119
13,498
953
1,116
1,486
1,709
1,668
1,525
1,979
1,976
1,918
2,035
Bahamas and Caymans
97 To United States
98 Parent bank
99 Other banks in United States
100 Nonbanks
101 To foreigners
102 Other branches of parent bank...
103 Banks
104 Official institutions
105 Nonbank foreigners
106 Other liabilities
107 Total payable in U.S. dollars
66,774
79,052
91,735
88,999
97,509
93,832
98,057
103,387
98,839
113,512
22,721
16,161
> O,3DU
32,176
20,956
11
OOft
11,zzu
39,431
20,456
6,199
12,776
37,552
16,732
4,863
15,957
38,672
14,877
7,044
16,751
37,698
16,627
5,224
15,847
38,764
16,057
5,404
17,303
40,063
12,286
8,973
18,804
37,974
12,242
6,342
19,390
41,767
11,127
10,266
20,374
42,899
13,801
21,760
3,573
3,765
45,292
12,816
24,717
3,000
4,759
50,447
16,094
23,104
4,208
7,041
49,534
13,697
23,299
4,429
8,109
56,742
13,923
28,749
5,181
8,889
54,124
14,716
25,964
5,328
8,116
57,133
15,997
28,599
4,970
7,567
61,176
17,104
31,662
4,074
8,336
58,689
18,223
28,204
4,375
7,887
69,340
20,246
35,145
4,751
9,198
1,154
1,584
1,857
1,913
2,095
2,010
2,160
2,148
2,176
2,405
63,417
74,463
87,014
84,337
92,673
88,942
92,797
97,993
93,470
107,623
1. 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. In May 1978 the exemption level for branches required to report
was increased, which reduced the number of reporting branches,
A58
International Statistics • November 1979
3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1979
Item
1976
1978'
1977
Mar.
Apr.
June
May
July
Aug.
Sept. P
By type
1 Total1
95,634 131,097 162,567 154,310 148,364 141,084 144,017 147,829 148,463 149,368
by banks in the United
2 Liabilities reported
States2
3 U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
17,231
37,725
18,003 23,274
47,820 67,671
23,029
59,774
24,924
51,614
25,720
43,727
25,349
46,304
25,640
49,425
25,155
50,146
25,281
50,842
11,788
20,648
32,164 35,912
20,443 20,970
36,086
20,471
36,329
20,467
36,179
20,467
36,478
20,697
37,510
19,797
38,025
19,547
38,071
19,547
8,242
12,667 14,740
14,950
15,030
14,991
15,189
15,457
15,590
15,627
5 Nonmarketable4
6 U.S. securities other than U.S. Treasury
By area
95,634 131,097 162,567 154,310 148,364 141,084 144,017 147,829 148,463 149,368
7 Total
8
9
10
11
12
13
Western Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
45,882
3,406
4,926
37,767
1,893
1,760
70,748 92,989
2,334 2,506
4,649 5,045
50,693 58,858
1,742 2,423
931
746
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
90,304
3,088
4,221
53,888
2,135
674
85,198
3,044
4,671
52,086
2,529
836
81,025
1,993
4,822
49,827
2,604
813
83,523
1,979
4,610
50,573
2,614
718
86,630
2,116
5,397
50,380
2,618
688
86,401
2,185
4,497
51,749
3,219
412
87,040
2,412
4,879
52,087
2,513
437
5. Debt securities of U.S. government corporations and federally
sponsored agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to
the Treasury Department by banks (including Federal Reserve Banks)
and securities dealers in the United States.
3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
Item
1976
1977
Sept.r
1 Banks' own liabilities
2 Banks' own claims1
3 Deposits
4 Other claims
5 Claims of banks' domestic customers2
781
1,834
1,103
731
1. Includes claims of banks' domestic customers through March 1978.
2. Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the accounts of their domestic customers.
925
2,356
941
1,415
2,235
3,522
1,650
1,871
367
1979
1978
1978 '
1,771
2,950
1,375
1,575
446
Dec. r
2,235
3,522
1,650
1,871
367
Mar.r
1,781
2,602
1,121
1,481
476
June
1,986
2,530
1,345
1,185
521
NOTE. Data on claims exclude foreign currencies held by U.S. monetary authorities.
Nonbank-Reported
Data
A59
3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions of dollars, end of period
Holder and type of liability
1976
1977
1979
1978
Mar.
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates 5
9 Other negotiable and readily transferable
instruments
10 Other
Nonmonetary international
and regional
organizations7
12 Banks' own liabilities.
13 Demand deposits...
1
14 Time deposits
15 Other2
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable
and readily transferable
instruments6
19 Other
20 Official institutions8..
21 Banks' own liabilities.
22 Demand deposits...
23 Time deposits
i
24 Other2
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable
and readily transferable
instruments6
28 Other
29 Banks9.
30 Banks' own liabilities
31 Unaffiliated foreign banks.
32
Demand deposits
1
33
Time deposits
34
Other2
16,803
11,347
18,996
11,521
40,744
48,906
5,714
June
July
Aug.?
Sept.p
40 Other foreigners
41 Banks' own liabilities.
42 Demand deposits...
1
43 Time deposits
44 Other2
45 Banks'custody liabilities4
46 U.S. Treasury bills and certificates
47 Other negotiable
and readily transferable
instruments 6
48 Other
97,255 117,493 111,398
19,088 18,914 20,226
12,608 12,963 13,247
12,753 12,197 12,166
52,806 73,418 65,761
88,091 '81,365 '74,096 '65,425
68,202 60,709 53,434 '45,103
67,837
47,425
71,702
51,467
73,809
52,347
73,970
52,429
17,396 '18,487 '18,513 '18,118
2,493
2,203
2,169
2,150
18,115
2,296
18,020
2,215
19,180
2,282
19,208
2,333
2,617
2,364
2,300
2,757
2,851
3,437
3,551
2,909
290
205
231
139
916
330
94
492
769
276
99
394
791
270
100
422
1,306
298
85
923
1,500
264
87
1,150
844
216
79
549
603
154
87
362
491
161
92
238
2,701
706
1,701
201
1,595
211
1,509
212
1,451
175
1,350
199
2,593
1,345
2,948
1,531
2,418
912
1,499
1,382
2
1,294
2
1,274
1
1,151
1
1,247
1
1,416
1
1,505
1
54,956
65,822 '90,688 '82,802 '76,537 '69,447
71,653
75,066
75,301
76,122
3,394
2,321
'12,112 '10,740 '12,675 '13,958
3,528
3,390
2,864
3,583
3,170
1,797
2,524
2,491 '2,567
2,546
5,352 '6,601 '8,221
6,176
13,305
3,196
2,506
7,604
14,240
2,850
2,590
8,800
12,796
2,397
2,607
7,791
13,177
3,130
2,514
7,534
55,489
43,727
58,347
46,304
60,826
49,425
62,506
50,146
62,945
50,842
10,992 '12,245 '12,209 '11,692
40
170
70
43
12,003
40
11,350
50
12,307
52
11,999
104
37,174
42,335 '57,758 '65,926 '64,363 '70,178
76,465
73,313
95,290
88,897
9,104
2,297
'52,973 '61,016 '59,386 '65,010
15,419 '13,088 '14,381 '15,640
10,933 11,239
9,349 10,202 '10,278
2,040
1,302 '1,263
1,479 '1,258
2,877 '4,099
2,700 '2,481
71,434
15,917
11,138
1,398
3,382
68,362
15,556
11,361
1,209
2,987
90,271
16,853
11,761
1,521
3,571
83,739
17,979
12,424
1,760
3,794
'37,554 '47,928 '45,005 '49,370
55,517
52,806
73,418
65,761
4,951
347
5,019
384
5,157
406
37,725
47,820
4
36 Banks' custody liabilities
37 U.S. Treasury bills and certificates
38 Other negotiable
and readily transferable
instruments6
39 Other
'78,995 '85,569 '86,152 '93,689 100,018
19,201 16,696 18,367 '18,105 19,326
12,473 '12,385 '12,516 '12,650 12,735
'9,767 '8,560 '10,264 '13,564 12,440
'37,554 '47,928 '45,005 '49,370 55,517
3,274
Own foreign offices 3 .
119
12,814
141
14,736
78,577
67,415
72,062
59,774
63,862
51,614
4,785
300
4,910
425
'4,977
456
5,168
508
5,031
407
2,425
2,060
2,421
2,064
'2,499
2,022
2,593
2,066
2,480
2,145
2,556
2,048
2,508
2,127
2,605
2,146
16,023
15,842 • 17,047 '16,732
16,886
17,140
17,159
17,442
13,299 '13,415
4,312
4,358
8,623 '8,735
364
322
13,778
4,729
8,744
305
13,809
4,661
8,731
417
13,823
4,602
8,748
473
13,991
4,510
8,881
600
4,015
6,524
4,304
7,546
12,995
4,242
8,353
399
13,044
4,207
8,504
333
198
240
3,028
285
'2,798
299
3,748
1,152
'3,317
693
3,108
516
3,332
350
3,335
285
3,451
269
2,481
262
2,439
60
2,511
85
'2,559
66
2,482
111
2,867
115
2,947
103
3,099
83
11,007 '11,254 '11,151 '10,824
10,633
10,709
11,076
11,237
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." Data for time
deposits prior to April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and
foreign 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 wholly
owned 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.
May
110,657 126,168 167,087 '166,934 '160,248 '159,114 167,855 168,957 191,302 185,369
1 All foreigners
2 Banks' own liabilities.
3 Demand deposits...
4 Time deposits^
5 Other2
6 Own foreign offices 3
35
Apr.
r
5. Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable
time 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."
A60
International Statistics • November 1979
3.16 LIABILITIES TO FOREIGNERS Continued
1979
Area and country
1976
1977
1978
Mar.
Apr.
May
June
July
Aug.f
1 Total
110,657 126,168 167,087 '166,934 160,248 159,114 167,855 168,957 191,302
2 Foreign countries.
104,943 122,893 164,470 '164,570 157,948 156,357 165,004 165,520 187,750
3 Europe
4
Austria
5
Belgium-Luxembourg...
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17
Switzerland
18 Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe i.
22
U.S.S.R
23
Other Eastern Europe 2 .,
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 '85,387 '82,011 '77,532 '75,221
513
484
475
524
318
2,552
2,359
2,282
2,443
2,531
1,946
1,596
1,526
2,131
770
346
367
401
361
323
9,208
9,291
9,755
'8,896
5,269
17,286 12,997
9,364
'7,617
7,239
826
'660
'678
671
603
7,674
8,939
9,751
8,142
6,857
2,402
2,816
2,889
2,766
2,869
1,271
1,477
1,456
1,572
944
330
231
244
273
279
870
897
619
763 '1,077
3,121
2,596
2,524
2,712
2,520
12,343 18,612 18,563 '15,567 '13,720
157
110
127
130
132
14,125 14,265 '15,464 '16,150 '16,696
207
184
232
254
176
'3,897
'3,686
1,804
3,346
'3,297
84
58
98
82
59
258
254
236
325
258
4,659
4,607
6,966
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.,
19,132
1,534
2,770
218
1,438
1.877
337
1,021
6
320
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,870
158
1,167
257
245
3,118
1,797
2,876
196
2,331
287
243
2,929
2,167
31,622
1,484
6,743
428
1,125
5.991
399
1,756
13
322
416
52
3,417
308
2.992
363
231
3.821
1,760
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries5.,
Other Asia
29,766
30,488
'36,532
48
990
894
638
340
392
14,363
438
628
277
9,360
1,398
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries6.
63
Other Africa
2,298
333
87
141
36
1,116
585
2,535
404
66
174
39
1,155
698
2,886
64 Other countries.
65
Australia
66
All other
2,012
1,905
107
5,714
5,157
267
290
24 Canada.
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70
Other regional?
86,004
486
2.674
1,412
508
9,985
10,429
695
9,676
2,627
1,320
411
1,060
2,368
15,716
160
22,579
149
3,400
80
270
'7,959
6,674
7,610
8.376
38,067 '36,009 '40,406
1,534
1,483
1,886
13,078 '10,064 '11,682
375
351
345
1,137
1,251
'1,576
6,971
6,916
9,313
343
447
368
1,925
2,079
2,192
6
7
9
330
318
335
339
318
360
75
78
80
3,178
3,215
3,234
318
396
335
2,938
'2,903
3,368
403
321
360
236
223
230
3,211
'3,664
3,426
1,669
1,601
'1,681
44,887
1,891
16,383
402
1,332
8,943
403
2,402
7
391
319
46
3,392
414
3,125
382
248
2,982
1,825
41,398
1,693
13,022
339
1,294
8,085
465
2,292
7
443
319
104
3,632
422
3,070
425
231
3,920
1,636
56,706
1,757
23,912
415
1,040
13,367
459
2.377
6
449
320
67
3,658
361
3,049
391
222
3,180
1.675
'32,778
'8,760
81,510
444
2,493
1,560
466
9,616
10,724
760
8,458
2,355
1,263
303
1,107
2,227
16,744
193
18,760
159
3,553
63
260
'31,511
'28,510
29,513
30,614
32,019
67
280
45
502
600
667
1,256
'1,279
1,459
790
857
929
449
479
567
674
608
673
21,927 '18,127 '14,922
795
748
728
644
642
562
427
277
343
'7,588
'7,632
'9,242
1,414
1,249
'1,375
41
'598
1,496
1,016
394
650
12,262
'986
'605
302
'8,758
'1,402
46
739
1,555
940
409
706
12,572
809
690
413
9,003
1,632
42
769
1,452
873
509
621
13,104
816
640
307
9,651
1,830
41
1,027
1,571
704
317
625
13,094
825
619
330
11,092
1,773
43
1,525
715
2,650
329
43
242
50
1,256
729
2,986
359
34
246
55
1,554
738
3,056
297
36
206
47
1,523
946
3,237
306
45
316
56
1,566
948
3,226
378
35
196
37
1,699
881
3,818
302
40
174
49
2,441
811
1,297
1,140
158
1,076
838
239
1,072
862
21
1,149
957
192
1,206
991
215
1,181
891
290
1,162
806
355
826
621
205
3,274
2,752
278
245
2,617
1,485
808
324
2,364
1,189
872
303
2,300
1,128
872
300
2,757
1,535
892
330
2,851
1,738
829
284
3,437
2,257
917
263
3,551
2,516
793
242
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.
'7,991
79,513
449
2,419
1,165
457
9,594
8,492
684
9,656
2,628
1,348
353
1,21
2,437
15,932
156
18,079
151
3,961
62
277
404
32
168
Sept.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
Data
A61
3.17 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
Area and country
1976
1979
1978
1977
Mar.
Apr.
May
June
July
Aug.*
Sept.p
1
79,301
90,206 115,307 108,210 '105,507 '106,554 115,297 113,417 125,837 127,175
2 Foreign countries
79,261
90,163 115,250 108,164 '105,460 '106,508 115,252 113,369 125,786 127,125
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
3,319
3,355
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe i
22 U.S.S.R
23 Other Eastern Europe2
24 Canada
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
38,879
1,192
15,464
150
4,901
5,082
597
675
13
375
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,822
140
1,372
933
42
1,828
1,293
4,909
224
1,410
962
80
2,318
1,394
44 Asia
China
Mainland
45
46
47 Hong Kong
48 India
49 Indonesia
50
51 Japan
52 Korea
53 Philippines
54 Thailand
55 Middle East oil-exporting countries 5
56 Other Asia
19,204
19,236
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries 6
63 Other
64 Other countries
65 Australia
66 All other
67 Nonmonetary international and regional
organizations 7
3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863
24,235 '21,279 '20,538 '20,267
140
177
150
130
1,200 '1,792
1,377 '1,328
254
'199
168
166
305
184
297
250
3,742
2,921
2,907
2,701
900
792
907
806
164
188
168
'156
1,508
'1,411
1,297
1,440
680
'590
532
531
299
'205
'240
196
171
209
190
208
1,110
'904
'803
'925
537
312
300
231
1,283 '1,071
878
959
283
'142
119
145
10,156 '8,583
'8,361
'8,530
363
448
'472
492
122
124
'422
171
366
319
291
298
652
'627
'631
713
r
5,152
'5,211
'4,801
24,377
169
1,689
140
186
3,517
843
167
1,332
516
200
172
994
247
1,071
135
11,272
535
187
300
704
24,097
188
1,657
137
220
3,205
944
130
1,196
792
181
235
999
401
1,027
118
10,697
541
199
282
950
25,752
223
1,483
141
247
3,240
890
267
1,474
559
227
297
969
482
714
148
12,344
571
216
292
969
28,360
191
1,735
166
227
3,740
1,841
209
1,566
630
239
325
1,126
459
1,178
119
12,384
584
247
326
1,064
'4,712
4,899
5,063
5,093
4,780
57,166 '53,715 '52,585 '53,708
'2,281
'2,749 '3,095
3,406
r
21,515 19,490 19,273 '19,996
184
150
135
198
6,251
'6,281
'6,189
'6,271
'"9,391
'7,429
5,524 '4,896
r
972
964
1,058
970
1,012
1,004
945 '1,005
*
4
4
4
705
839
903
877
94
89
95
101
61
40
64
63
r
5,423 '5,545 '5,753
6,024
273
234
'273
213
'3,094 '2,930 '3,549
'3,702
918
834
'739
'813
52
46
48
61
3,474 '3,515 '3,545
3,601
1,512
1,487
1,468 '1,470
57,328
3,200
19,113
126
6,121
9,221
1,089
1,089
4
908
95
40
6,424
280
3,600
720
58
3,793
1,447
54,015
3,339
16,572
192
6,169
6,525
1,120
1,196
4
916
98
47
7,171
392
4,189
727
56
3,819
1,483
62,928
3,257
19,932
167
6,550
10,564
1,173
1,220
6
921
100
30
7,697
342
4,400
730
66
4,043
1,731
62,494
3,286
19,141
172
7,297
9,100
1,339
1,259
4
944
106
33
8,395
306
4,524
708
60
4,205
1,615
r
r
25,488 '25,037 '24,677
'24,893
25,535
27,138
29,117
28,476
4
10
16
20
1,499 '1,834 '1,818
1,719
1,573 '2,037 '1,730
543
54
52
73
53
143
124
135
232
r
870
'907
'779
584
9,839 12,686 12,762 '12,134
2,336 '2,282 '2,533 '2,708
680
660
710
594
758
'765
760
633
3,135
1,939
1,746
2,437
1,804 1 , 4 0 8
1,374
947
22
1,812
'1,970
'59
138
824
12,342
'2,940
'697
836
1,723
1,531
9
1,882
2,105
82
138
842
12,523
3,366
678
895
1,586
1,429
20
1,891
1,978
43
131
865
13,908
3,465
743
925
1,784
1,386
29
1,970
1,788
75
156
857
15,199
3,612
797
919
1,689
2,026
25
1,936
1,832
74
140
882
14,654
3,713
637
1,032
1,903
1,648
2,311
126
27
957
112
524
565
2,518
119
43
1,066
98
510
682
2,221
107
82
860
164
452
556
'1,966
'71
66
701
155
455
518
1,977
104
64
680
151
462
516
'1,971
'125
46
719
151
460
471
2,128
178
37
745
151
478
539
2,043
115
34
745
189
452
508
1,969
126
31
730
151
398
533
2,099
120
23
704
149
563
539
772
597
175
1,090
905
186
988
877
111
'956
'825
131
882
755
127
956
789
167
984
779
205
1,013
765
248
926
756
170
916
743
172
40
43
56
46
46
46
45
47
51
50
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, Czechoslavkia, 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).
r
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included
in "Other Western Europe."
NOTE. Data for period prior to April 1978 include claims of banks'
domestic customers on foreigners.
A62
International Statistics • November 1979
3.18 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
Type of claim
1976
1979
1978 r
1977
Mar. r
79,301
1 Total
May r
90,206 126,392 120,506
June
July
Aug.
Sept.2'
128,845
115,307 108,210 105,507 106,554 115,297 113,417 125,837 127,175
10,103 10,763 10,982 10,542 11,268 11,737 12,436 13,729
41,465 36,512 36,853 35,889 37,347 36,265 40,230 39,671
40,427 37,277 34,174 35,415 41,512 38,843 45,127 45,944
5,498
5,721
6,990
6,358
5,430
7,956
7,631
7,384
34,706 30,920 28,744 29,917 34,128 31,853 37,170 38,313
23,312 23,657 23,498 24,707 25,169 26,572 28,044 27,831
3 Foreign public borrowers
4 Own foreign offices1
5 Unaffiliated foreign banks
6
Deposits
7
Other
9 Claims of banks' domestic customers2
10 Deposits
11 Negotiable and
readily transferable instruments 3
12 Outstanding collections and other claims 4
Apr. r
5,756
6,176
13 MEMO* Customer liability on acceptances...
Dollar deposits in banks abroad, reported by
nonbanking
business enterprises in the United
States5
1. U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or wholly
owned subsidiaries of head office or parent foreign bank.
2. Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
11,085
972
12,296
1,143
13,548
1,438
4,762
5,351
5,511
5,641
6,230
5,879
14,918
15,098
16,838
11,674
15,766
16,550
17,453
15,275
18,156
18,031
n.a.
4. Data for March 1978 and for period prior to that are outstanding
collections only.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad.
For description of changes in data reported by nonbanks, see July 1979
BULLETIN, p. 550.
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.
3.19 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1978
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year*
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin American and Caribbean
Asia
Africa 2
All other
Maturity of over 1 year1
Europe
Canada
Latin America and Caribbean.,
Asia
Africa 2
Allother
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
June r
Sept. r
Dec.'
Mar. r
June
55,902
60,096
73,633
71,528
77,339
44,558
3,128
41,430
11,343
3,243
58,341
4,579
53,762
15,292
5,336
9,956
55,347
4,627
50,720
8,101
47,230
3,709
43,521
12,866
4,230
8,635
5,935
10,246
59,763
4,551
55,212
17,575
6,372
11,204
9,710
1,598
17,439
13,831
1,457
523
10,513
1,953
18,624
14,014
1,535
591
15,121
2,670
20,912
17,572
1,496
569
12,376
2,512
21,634
16,993
1,290
541
13,998
2,678
22,937
18,166
1,423
563
2,920
344
5,900
1,297
631
252
3,102
794
6,877
1,303
580
211
3,149
1,426
8,469
1,399
636
214
3,108
1,456
9,336
1,471
629
10,214
1,871
613
16,181
180
NOTE. The first available data are for June 1978.
3,484
1,212
182
Nonbank-Reported
Data
A63
3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
Area or Country
1975
1979
1978
1977
1976
June
Sept.
Dec.
Mar.
June?
Sept.
Dec.
Mar.
June
167.0
207.7
217.8
226.7
239.4
247.2
245.7
246.7
265.3
263.4
273.6
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
88.0
5.3
8.5
7.8
5.2
2.8
1.0
2.4
36.3
3.8
14.9
100.1
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.5
5.1
15.9
104.1
6.3
10.6
8.2
6.4
3.1
1.7
3.0
41.4
6.4
17.0
108.8
7.1
10.5
8.6
6.0
3.0
1.9
3.3
44.1
6.6
17.6
115.3
8.4
11.0
9.6
6.5
3.5
1.9
3.3
46.5
5.8
18.8
116.6
8.3
11.4
9.0
6.0
3.4
2.0
4.0
46.5
6.9
19.1
112.8
8.3
11.4
9.1
6.4
3.4
2.1
4.1
45.0
5.1
17.9
113.7
8.4
11.7
9.7
6.0
3.5
2.2
4.3
44.4
4.9
18.6
124.9
9.0
12.2
11.4
6.6
4.4
2.1
5.4
47.2
5.9
20.7
118.8
9.4
11.7
10.5
5.7
3.8
2.0
4.5
46.4
5.8
19.0
124.5
9.2
12.8
10.8
6.1
4.0
2.0
4.8
50.2
5.5
19.1
13 Other developed countries
14 Austria
15
16
17
18
19 Portugal
70
21
22 Other Western Europe
23
24 Australia
10.7
.7
.6
.9
1.4
1.4
.3
1.9
.6
.6
1.2
1.3
15.1
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2
16.9
1.2
1.4
1.1
1.8
1.7
.5
3.2
1.4
.8
2.3
1.5
18.1
1.3
1.5
1.2
2.0
1.8
.6
3.5
1.4
1.2
2.3
1.5
18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4
20.5
1.5
1.6
1.2
2.7
1.9
.7
3.6
1.5
1.4
2.5
1.9
19.3
1.5
1.7
1.1
2.3
2.1
.6
3.6
1.4
1.2
2.4
1.4
18.7
1.5
1.9
1.0
2.2
2.1
.5
3.5
1.5
1.0
2.2
1.3
19.2
1.7
2.0
1.2
2.3
2.1
.6
3.4
1.5
1.0
2.0
1.4
18.3
1.7
2.0
1.1
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3
18.8
2.2
2.0
1.1
2.2
2.1
.5
3.0
1.4
1.2
1.8
1.3
6.9
.4
2.3
1.6
1.6
1.0
12.6
.7
4.1
2.2
4.2
1.4
15.0
.9
4.6
2.2
5.5
1.8
16.5
1.1
5.1
2.2
6.3
1.9
17.6
1.1
5.5
2.2
6.9
1.9
19.2
1.3
5.5
2.1
8.3
2.0
19.1
1.4
5.6
1.9
8.3
1.9
20.4
1.6
6.2
1.9
8.7
2.0
22.8
1.6
7.2
2.0
9.5
2.5
22.9
1.5
7.2
1.9
9.7
2.6
22.6
1.6
7.5
1.9
9.0
2.6
34.2
43.1
45.8
47.6
50.0
49.9
48.9
49.5
52.4
53.1
56.1
1.7
8.0
.5
1.2
9.0
1.4
2.6
1.9
11.1
.8
1.3
11.7
1.8
2.7
2.1
11.8
.7
1.2
12.2
2.0
2.4
2.4
11.8
.8
1.2
12.6
1.9
2.5
2.9
12.7
.9
1.3
11.9
1.9
2.7
3.0
13.0
1.1
1.3
11.2
1.7
3.5
3.0
13.3
1.3
1.3
11.0
1.8
3.3
2.9
14.0
1.3
1.3
10.7
1.8
3.4
3.0
14.9
1.6
1.4
10.8
1.7
3.6
2.9
14.6
1.7
1.5
10.9
1.6
3.5
3.5
15.0
1.8
1.5
11.0
1.4
3.3
1
25 Oil-exporting countries2
26
27
28
29 Middle East countries
30 African countries
31 Non-oil developing countries
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Latin America
Argentina
Chile
Colombia
Peru
Asia
China
Taiwan
Korea (South)
Philippines
Thailand
Other Asia
Africa
Egypt
Morocco
Zaire
Other Africa4
Other
56 Offshore banking centers
57
58
59 Cayman Islands and other British West Indies.. .
60 Netherlands Antilles
61 Panama
62
63 Hong Kong
64
65 Others 5
66 Miscellaneous and unallocated^
*
*
*
*
*
*
*
*
2.3
.2
1.0
3.1
.5
2.2
.7
.4
2.7
.2
.8
3.4
.7
2.3
.8
.3
2.9
.3
.7
3.6
.7
2.4
.9
.4
3.1
.3
.9
3.9
.7
2.5
1.7
.3
2.5
.3
.8
3.7
.6
2.6
1.1
.4
2.4
.2
.7
3.6
.6
2.7
1.1
•3
2.4
.3
.7
3.5
.6
2.8
1.1
.3
2.9
.2
1.0
3.9
.6
2.8
1.2
.2
.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.3
.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4
.4
.1
.3
.5
.4
.2
.2
.6
.4
.3
.3
1.0
.4
.4
.3
1.2
.3
.5
.3
1.2
.3
.4
.3
1.4
.3
.5
.2
1.2
.4
.5
.2
1.3
.4
.6
.2
1.4
.4
.6
.2
1.4
.7
.5
.2
1.5
3.7
1.0
.6
2.1
5.2
1.5
.8
2.8
5.5
1.5
.9
3.1
5.5
1.5
1.0
3.0
6.5
1.6
1.1
3.8
6.3
1.4
1.2
3.7
6.4
1.4
1.3
3.7
6.6
1.4
1.3
3.9
6.9
1.3
1.5
4.1
6.7
1.1
1.6
4.0
6.7
.9
1.7
4.1
19.4
7.3
.5
2.5
.6
2.6
.2
1.6
3.8
.1
26.2
11.8
. .5
3.8
.6
2.7
.1
2.3
4.4
25.4
9.5
.5
4.8
.5
2.9
.2
2.8
4.2
25.3
9.9
.5
4.3
.6
2.8
.1
3.1
3.9
.1
26.1
9.8
.6
3.8
.7
3.1
.2
3.7
3.7
.5
29.0
11.3
.6
4.5
.7
3.2
.2
4.0
4.0
.5
31.1
11.8
.7
6.3
.6
3.2
.1
4.1
3.8
.5
29.2
11.1
.7
6.2
.6
3.1
.1
4.0
2.9
.5
30.0
9.9
.7
6.9
.8
2.9
.1
4.3
3.9
.5
34.1
12.8
.6
7.3
.7
3.3
.1
4.7
4.1
.5
35.0
13.2
.7
7.1
.8
3.4
.1
5.1
4.2
.4
4.1
5.4
5.1
5.0
5.3
5.7
8.1
8.6
9.1
9.5
9.9
*
1. The banking offices covered by these data are the U.S. offices and
foreign branches of U.S.-owned banks and of U.S. subsidiaries of foreignowned banks. Offices not covered include (1) U.S. agencies and branches
of foreign banks, and (2) foreign subsidiaries of U.S. banks. To minimize
duplication, the data are adjusted to exclude the claims on foreign branches
held by a U.S. office or another foreign branch of the same banking
institution. The data in this table combine foreign branch claims in table
3.13 (the sum of lines 7 through 10) with the claims of U.S. offices in table
3.17 (excluding those held by agencies and branches of foreign banks
and those constituting claims on own foreign branches). However, see
also footnote 2.
2. Includes Algeria,Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria,
*
1.7
.2
.9
2.4
.3
1.7
.7
.4
*
Oman, Qatar, Saudi Arabia, and United Arab Emirates in addition to
countries shown individually.
3. Foreign branch claims only through December 1976.
4. Excludes Liberia.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional
organizations.
7. For June 1978 and subsequent dates, the claims of the U.S. offices
in this table include only banks' own claims payable in dollars. For
earlier dates the claims of the U.S. offices also include customer claims
and foreign currency claims (amounting in June 1978 to $10 billion).
A64
3.21
International Statistics • November 1979
MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions
Millions of dollars
Country or area
1977
1979
1979
1978
Jan.Sept.P
Mar.
Apr.
June
May
Holdings (end of period)
July
Aug.f
Sept.f
4
1 Estimated total1
38,640
44,938
47,529
48,131
47,218
47,494
48,991
49,575
50,199
2 Foreign countries1
33,894
39,817
42,932
43,177
43,055
43,454
44,544
44,979
45,002
3 Europe1
Belgium-Luxembourg
4
5 Germany1
6 Netherlands
7 Sweden
8 Switzerland
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13,936
19
3,168
911
100
497
8,888
349
4
288
17,072
19
8,705
1,358
285
977
5,373
354
20,172
19
10,216
1,587
360
1,537
5,991
461
20,593
19
10,812
1,637
415
1,510
5,735
464
20,667
20
10,828
1,672
479
1,458
5,697
513
21,047
24
10,751
1,695
484
1,582
6,016
496
22,213
24
10,781
1,655
481
1,843
6,938
491
22,558
24
10,952
1,577
525
2,048
6,895
538
22,541
65
10,953
1,667
550
2,496
6,193
617
152
166
226
216
227
232
233
233
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin American and Caribbean.
Netherlands Antilles
Asia
Japan
Africa
All other
551
199
183
170
18,745
6,860
362
11
416
144
110
162
21,488
11,528
691
-3
418
183
72
162
21,488
12,729
691
-3
397
183
52
162
21,273
12,982
691
-3
387
183
42
162
21,097
13,014
691
-3
387
183
42
162
21,103
13,040
691
-3
537
183
192
162
20,874
13,090
691
-3
539
183
192
165
20,960
12,818
691
-3
539
183
192
165
21,000
12,789
691
-3
21 Nonmonetary international and regional
organizations
4,746
5,121
4,597
4,954
4,163
4,040
4,447
4,596
5,197
22
23
4,646
100
5,089
33
4,560
38
4,915
38
4,114
48
3,993
48
4,400
48
4,551
46
5,150
46
International
Latin American regional
Transactions (net purchases, or sales (—), during period)
24 Total1
22,843
6,297
5,261
1,862
602
-913
277
1,497
584
623
25 Foreign countries1
26 Official institutions
27 Other foreign i
21,130
20,377
753
5,921
r
3,747
'2,175
5,185
2,159
3,026
1,968
524
1,443
246
242
4
-122
-149
27
399
298
101
1,090
1,033
57
435
515
-81
23
45
-22
28 Nonmonetary international and regional
organizations
1,713
375
77
-106
356
-791
-121
407
149
600
MEMO: Oil-exporting countries
29 Middle3 East 2
30 Africa
.
4,451
-181
-1,785 -1,546
329
-31
-452
-190
8
-193
394
72
1. Beginning December 1978, includes U.S. Treasury notes publicly
issued to private foreign residents.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
Assets
1976
1977
1979
1978
Apr.
352
Assets held in custody
3 Earmarked gold2
66,532
16,414
424
June
July
367
388
407
326
372
91,962 117,126
15,988 15,463
99,674
15,406
91,327
15,381
95,301
15,356
99,004
15,322
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable
U.S. Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.
May
Aug.
325
Sept.
Oct.p
347
351
98,794 100,383
15,296 15,294
97,965
15,253
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
A65
3.23 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1979
1979
Transactions, and area or country
1978
1977
JanSept.f
Apr.
Mar.
June
May
Sept.3'
Aug.f
July
U.S. corporate securities
STOCKS
1 Foreign purchases
3 Net purchases, or sales (—)
14,155
11,479
20,142
17,723
15,969
14,730
'1,944
'1,439
'1,615
1,520
'1,579
'1,389
1,860
1,794
1,766
1,774
2,382
2,224
2,074
2,676
2,420
1,239
'505
'95
191
66
-8
158
51
1,225
'502
94
191
67
-8
156
58
104
33
-2
-19
-12
109
57
36
242
61
1
136
48
11
41
-16
-15
-3
5
33
-28
15
39
-42
18
-19
8
-52
-12
-3
-1
- 4
-48
19
-30
- 3
-87
97
78
45
44
34
—4
7
-107
-20
-37
1
- 2
31
-59
-10
'-16
52
30
22
48
- 3
- 3
2
2,661
8
10
Netherlands
United Kingdom
12 Latin America
and Caribbean
13 Middle East 1
14 Other Asia
16 Other countries
17 Nonmonetary international and regional
BONDS
27
2,466
2,023
1,006
40
291
22
152
613
65
127
1,390
59
5
8
1,283
47
620
-22
-585
1,230
74
151
781
187
-13
3
98
180
-161
-96
-234
447
421
40
433
239
-12
6
15
-46
14
3
1
•
-1
*
2
-7
7,739
3,560
'7,975
'5,517
6,216
5,442
'593
489
589
378
863
922
1,081
793
869
648
729
673
398
288
-1
-7
18
74
47
-18
20
9
-2
30
-17
-7
32
1
*
-64
19
145
-8
41
-12
-2
1
2
United Kingdom
29 Latin America
and Caribbean
30 Middle East1
4,179
'2,458
774
'104
210
-59
288
221
56
110
4,083
'2,049
937
'91
106
87
254
222
71
23
758
-2
86
-160
-14
800
98
79
-115
115
2
'12
13
4
-27
12
27
33
24
25
- 3
139
-2
19
-20
8
134
6
9
-61
14
121
163
8
24
-32
—1
169
159
-34
- 5
- 3
-10
-19
-8
24
9
10
50
7
1,850
-34
-20
72
94
1,690
141
64
1,695
338
-6
*
34 Nonmonetary international and regional
96
'908
30
68
'12
-100
930
102
'98
810
131
—1
1
409
*
*
1
-164
13
*
-1
104
—1
6
-37
-41
151
4
7
-73
28
*
*
-146
— 11
19
—1
-1
-2
4
23
-10
52
48
-9
- 4
232
8
11
40
5
*
•
*
*
34
-1
-14
87
-100
-338
377
476
420
-543
-715
824
*
*
*
*
17
-4
-7
-4
1
Foreign securities
35 Stocks, net purchases, or sales (—)
38 Bonds, net purchases, or sales (—)
39
Foreign purchases
-410
2,255
2,665
527
3,666
3,139
45 Latin America and Caribbean
47 Africa
49 Nonmonetary international and regional
-18
403
421
-67
487
9,078
12,318
'-30
'1,194
'1,224
'-11
'893
'904
'10
'860
'851
-689
1,011
1,700
-345
984
1,330
-3,698
'-28
'2
'77
-707
-3,949 '-3,314 -2,891
-1,100
- 4 0 -1,199
-2,404 '-3,238 -2,003
-82
379
201
-97
350
-77
2
-441
-9
-267
-146
18
'-11
'11
-228
'55
152
-8
7
'-11
'-165
10
55
84
2
2
'76
'-25
85
26
-14
4
-17
13
-5,096 ' - 4 , 0 1 8
8,040 ' 1 1 , 0 4 3
13,136 1 5 , 0 6 1
-1,557
-177
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
67
369
356
41 Net purchases, or sales ( — ) of stocks and bonds.. - 5 , 5 0 6 ' - 3 , 4 9 1
42 Foreign countries
2
331
329
-458
3,278
3,736
-3,240
-807
13
554
329
396
1,575
758
2,118
1,539
-412
-643
-1,053
-425
-144
-221
53
-114
-436
-305
-178
30
16
1
4
-4
2
-559
-290
-128
30
-172
—1
1
-282
24
*
-877
-120
-854
*
92
*
2
5
-83
-176
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt
securities sold abroad by U.S. corporations organized to finance direct
investments abroad.
A66
International Statistics • November 1979
3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States •
Millions of dollars, end of period
Type, and area or country
1 Total
2 Payable in dollars
1976
June
Sept.
Dec.
Mar.r
Junef
Sept.
10,099
11,085
11,870
12,786
13,888
13,683
14,641
9,390
709
10,284
801
11,044
825
11,955
831
11,166
2,723
10,984
2,699
12,126
2,515
5,407
3,465
1,942
5,505
3,433
2,072
5,319
3,453
1,866
8,481
3,930
4,552
8,178
3,445
4,733
9,322
4,213
5,109
7,701
780
7,551
627
8,673
648
3,467
287
157
334
360
207
1,947
3,528
264
138
329
396
190
2,009
3,336
313
142
295
375
181
1,838
By type
By area or country
Financial liabilities
17
1979
1978
1977
Switzerland
19
Canada. .
205
224
195
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
971
422
56
10
122
77
46
997
407
41
13
132
101
52
1,052
438
38
19
118
132
65
27
28
29
Asia .
Japan
Middle East oil-exporting countries2
754
671
48
745
667
36
725
656
36
30
31
Africa
Oil-exporting countries3
5
2
5
1
6
2
All other4
5
5
5
2,927
73
312
519
206
321
760
2,804
70
339
394
194
329
804
3,207
80
339
473
202
439
946
32
33
34
35
36
37
38
39
40
Commercial liabilities
Europe..
Belgium-Luxembourg
France.
Germany
Netherlands
Switzerland..
United Kingdom
Canada
653
612
659
1,138
16
40
61
89
236
356
1,313
65
80
165
121
203
323
41
42
43
44
45
46
47
Latin America
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela .
1,031
25
95
75
53
130
306
48
49
50
Asia
Japan
Middle East oil-exporting countries2
2,942
430
1,543
2,632
412
1,117
3,003
500
1,222
51
52
Africa
Oil-exporting countries3
724
313
754
345
894
412
53
All other4
204
239
246
1. Prior to December 1978, foreign currency data include only liabilities
denominated in foreign currencies with an original maturity of less than
one year.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
Dec.
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A For a description of the changes in the International Statistics
tables, see July 1979 BULLETIN, p. 550.
Nonbank-Reported
Data
A67
3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States •
Millions of dollars, end of period
Type, and area or country
1 Total
1976
June
Sept.
Dec.
Mar.r
June®
19,350
21,298
23,229
23,260
27,138
29,714
29,048
18,300
1,050
19,880
1,418
21,665
1,564
21,292
1,968
24,160
2,978
26,939
2,775
26,181
2,867
15,843
10,735
9,694
1,041
5,108
3,528
1,580
18,995
13,899
12,991
908
5,096
3,567
1,529
18,009
12,835
11,873
961
5,174
3,635
1,540
11,295
10.647
647
10,719
9,963
756
11,039
10,325
714
10,938
357
10,381
338
10,673
366
5,054
48
179
529
107
98
3,850
5,191
63
170
266
86
96
4,283
5.486
54
182
361
80
81
4,491
By type
By area or country
Financial claims
20
21
22
1979
1978
1977
Netherlands
Switzerland
United Kingdom
23
Canada
4,454
5,137
4,964
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
.
.
Bermuda
Brazil
British West Indies
Mexico.
. .
Venezuela . .
5,197
2,836
80
151
1.231
146
149
7,598
4,098
62
137
2,438
166
141
6.487
3,165
57
122
2,264
164
148
31
32
33
Asia
.
Japan
Middle East oil-exporting countries2
918
306
18
826
206
17
797
216
17
34
35
Africa
Oil-exporting countries 3
180
10
204
26
227
23
41
39
48
3,935
145
607
392
256
213
802
3,818
172
490
501
271
248
681
3,820
169
472
420
303
243
712
36
37
38
39
40
41
42
43
All other*
Commercial claims
Europe...
...
Belgium-Luxembourg...
France
Germany
.
Netherlands
Switzerland
United Kingdom... .
44
Canada
1,102
1,113
1,144
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies .
Mexico
.
Venezuela
2,535
109
215
624
9
513
293
2,382
117
241
490
10
488
273
2,403
98
118
500
25
582
295
52
53
54
Asia
.
Japan.
Middle East oil-exporting countries2
3,087
978
711
2,757
895
670
2,985
1,008
691
55
56
Africa ..
..
Oil-exporting countries 3
449
137
446
132
490
140
57
All other*
187
203
198
1. Prior to December 1978, foreign currency data include only liabilities
denominated in foreign currencies with an original maturity of less than
one year.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
Sept.
Dec.
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A For a description of the changes in the International Statistics
tables, see July 1979 BULLETIN, p. 550.
A68
International Statistics • November 1979
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Country
18.0
Argentina
Austria...
Belgium. .
Brazil
Canada..
Denmark.
Percent
Month
effective
Percent
3.75
10.0
33.0
14.0
11.00
Feb.
Jan.
Oct.
Nov.
Oct.
Sept.
1972
1979
1979
1978
1979
1979
Rate on Oct. 31,1979
Rate on Oct. 31,1979
Rate on Oct. 31,1979
Country
France
Germany, Fed. Rep. of.
Italy
Japan
Mexico
Netherlands
9.5
5.0
12.0
5.25
4.5
8.0
Country
Month
effective
Aug.
July
Oct.
July
June
July
1977
1979
1979
1979
1942
1979
Month
effective
Percent
7.0
Norway
Sweden
Switzerland
United Kingdom
Venezuela
8.0
1.0
14.0
7.5
Feb.
Sept.
Feb.
June
July
1978
1979
1978
1979
1978
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 FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1979
1977
1976
Country, or type
1978
May
2 United Kingdom
6 Netherlands
7 France
8 Italy
June
Aug.
July
Sept.
Oct.
5.58
11.35
9.39
4.19
1.45
6.03
8.07
7.47
4.30
2.56
8.74
9.18
8.52
3.67
0.74
10.75
11.76
11.26
5.89
1.54
10.52
13.02
11.17
6.40
1.51
10.87
13.87
11.29
6.77
1.19
11.53
14.06
11.78
7.04
1.67
12.61
14.11
11.89
7.82
1.94
14.59
14.12
13.34
8.84
2.57
7.02
8.65
16.32
10.25
7.70
4.73
9.20
14.26
6.95
6.22
6.53
8.10
11.40
7.14
4.75
7.82
7.63
11.37
8.16
5.25
8.55
8.63
11.27
9.09
5.46
9.53
9.90
11.46
11.18
6.26
9.51
10.85
11.50
11.42
7.00
9.82
11.67
11.51
11.88
7.00
10.09
12.14
12.71
12.99
7.01
NOTE. Rates are for 3-month interbank loans except for the following:
Canada, finance company paper ; Belgium, time deposits of 20 million
francs and over; and Japan, loans and discounts that can be called after
being held over a minimum of two month-ends.
3.28 FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1979
Country/currency
1
2
3
4
5
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
Denmark/krone
1976
122.15
5.5744
2.5921
101.41
16.546
1977
1978
May
June
July
Aug.
Sept.
Oct.
110.82
6.0494
2.7911
94.112
16.658
114.41
6.8958
3.1809
87.729
18.156
110.57
7.1222
3.2732
86.534
18.562
111.11
7.2081
3.3048
85.296
18.401
112.83
7.4628
3.4240
85.920
19.072
112.83
7.4786
3.4140
85.425
18.964
112.63
7.7211
3.4684
85.814
19.279
111.31
7.7570
3.4656
85.084
19.110
24.913
20.344
43.079
11.406
174.49
24.337
22.218
49.867
12.207
191.84
24.974
22.691
52.422
12.066
198.43
25.250
22.914
53.084
12.317
200.01
26.040
23.535
54.817
12.651
206.79
26.075
23.491
54.666
12.484
205.79
26.242
23.826
55.758
12.289
209.18
26.483
23.809
55.884
12.159
208.28
6
7
8
9
10
25.938
Finland/markka
20.942
France/franc
Germany/deutsche mark... 39.737
11.148
India/rupee
180.48
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
99.115
18.327
3.3159
114.85
1.4958
96.893
18.789
2.6234
114.99
1.3287
103.64
19.079
2.2782
115.01
1.3073
104.37
19.270
2.0214
118.22
1.5131
103.29
19.398
2.0192
118.31
1.5131
102.04
19.824
2.0551
118.46
1.5118
101.40
19.877
2.0332
119.38
1.5132
100.28
20.080
2.0297
119.91
1.5135
98.564
20.143
1.9992
120.79
1.5117
21
22
23
24
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United Kingdom/pound...
11.908
22.957
40.013
180.48
11.964
22.383
41.714
174.49
6.3834
22.139
56.283
191.84
6.4239
22.755
57.894
205.87
6.4059
23.028
58.884
211.19
6.3786
23.687
60.650
225.98
6.4174
23.693
60.349
223.68
6.4126
23.860
62.087
219.66
6.4000
23.747
61.350
214.38
105.57
103.31
92.39
90.31
89.56
86.93
87.24
86.73
87.67
MEMO:
25 United States/dollar1
.12044
.33741
39.340
6.9161
37.846
.11328
.37342
40.620
4.4239
40.752
.11744
.45797
44.934
4.3805
48.132
.11782
.47981
43.210
4.3896
46.284
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
.11828
.45750
45.474
4.3767
48.374
.12192
.46189
46.422
4.3767
49.821
.12219
.45890
46.363
4.3804
49.805
.12326
.44963
46.382
4.3858
50.635
.12112
.43405
46.074
4.3825
50.379
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on
page 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable
transfers
Time and Savings Deposits
A69
4.10 TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Recent Survey Dates
Deposits
Number of issuing banks
Millions of dollars
Type of deposits, denomination,
and original maturity
Percentage change
Jan. 31,
1979
Apr. 25,
1979
14,206
613,147
615,427
621,863
.4
14,206
214,791
216,901
222,721
1.0
14,285
14,206
200,193
202,133
207,264
1.0
9,684
8,039
1,474
10,065
8,096
1,605
10,475
3,991
133
10,255
4,386
126
10,968
4,190
299
-2.1
9.9
-5.0
14,179
14,191
14,113
190,314
201,067
205,253
5.7
10,539
4,636
7,716
4,752
8,379
14,179
5,104
11,236
8,321
13,765
13,002
13,416
11,470
7,909
10,015
10,506
5,220
7,750
4,749
8,424
14,110
5,187
11,065
8,447
13,840
12,892
13,467
11,693
8,569
10,209
10,269
5,028
7,168
3,665
7,969
14,032
4,692
10,771
8,357
13,762
12,819
13,482
11,599
8,635
10,433
3,252
662
1,245
367
979
151,579
3,758
25,606
3,350
28,349
16,420
48,273
23,071
2,753
3,533
2,928
595
890
537
906
145,433
3,144
25,156
3,476
25,257
15,626
46,367
23,406
3,002
4,159
2,569
528
812
387
842
135,972
2,742
22,758
2,678
22,743
14,212
44,532
23,217
3,091
4,376
-10.0
-10.0
-28.5
46.4
-7.5
-4.1
-16.4
-1.8
3.8
-10.9
-4.8
-3.9
1.5
9.0
17.7
12,228
12,395
12,868
31,949
48,547
62,336
52.0
11,875
11,973
11,654
202,807
191,664
187,156
-5.5
Non-interest-bearing time deposits
Less than $100,000
$100,000 or more
1,604
1,254
745
1,489
1,163
663
1,263
944
663
4,379
658
3,721
4,248
826
3,422
4,504
921
3,583
-3.0
25.5
-8.0
Club accounts (Christmas savings, vacation, and
the like)
9,193
9,334
9,407
857
,548
2,229
80.7
Jan. 31,
1979
Apr. 25,
1979
July 25,
1979
Total time and savings deposits
14,269
14,285
Savings
Holder
Individuals and nonprofit organizations
Partnerships and corporations operated for profit
(other than commercial banks)
Domestic governmaent units
All other
14,269
14,285
14,269
9,735
8,050
1,244
Interest-bearing time deposits, less than $100,000—
Holder
Domestic governmental units1
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
Other than domestic governmental units1
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to 2% years
21/2 up to 4 years
4 up to 6 years
6 up to 8 years
8 years and over
IRA and Keogh Plan time deposits, 3 years or more,
Money market certificates, $10,000 or more,
exactly 6 months
Interest-bearing time deposits, $100, 000 or more
1. Excludes all money market certificates, IRAs, and Keogh Plan
accounts.
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
July 25,
1979
Jan. 31Apr. 25
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.
A70
4.11
Special Tables • November 1979
SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on July
25, 1979, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New Deposits
in Each Category, and by Size of Bank
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
100 and over
Size of bank
(total deposits in millions of dollars)
Less than 100
100 and over
July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25,
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
Amount of deposits (in millions of dollars).
or percentage distribution
Number of banks, or percentage distribution
Savings deposits
Individuals and nonprofit
organizations
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO : Paying ceiling rate1
14,206
100
5.0
22.6
72.4
72.4
14,285
100
10.1
89.9
Partnerships and corporations
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO : Paying ceiling rate1, ,
10,055
100
1.2
21.1
77.7
77.7
9,684
100
4.4
95.6
8,095
100
4.0
8,038
100
7.9
92.1
Domestic governmental units
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO : Paying ceiling rate1,, ,
20.1
75.9
75.9
(2)
89.9
(2)
95.6
(2)
91.8
13,055
100
4.8
23.2
72.0
72.0
13,130
100
10.2
89.8
8,949
100
1.1
21.7
77.2
77.2
8,559
100
4.6
95.4
7,259
100
4.3
20.4
75.3
75.3
7,215
100
8.6
91.4
1,299
100
10.6
89.4
1,151
100
7.6
15.8
76.6
76.6
1,155 207,264 202,133
100
100
100
8.9
5.8
8.3
91.1
17.5
91.7
76.7
(2)
(2)
91.1
91.7
76.7
78,950
100
4.2
18.7
77.1
77.1
1,106
100
2.4
16.1
81.5
81.5
1,125
100
2.7
97.3
10,255
100
3.9
96.1
3,638
100
1.1
19.3
79.7
79.7
3,150
100
4.3
95.7
97.3
10,934
100
2.8
18.4
78.8
78.8
835
100
1.9
17.4
80.7
80.7
823
100
1.7
98.3
4,189
100
2.1
17.7
4,386
100
3.7
96.3
2,342
100
2.8
14.6
82.6
82.6
2,330
100
6.3
93.7
2)
(89.4
176
100
4.0
14.5
81.5
81.5
168
100
2.1
97.9
51
100
.6
99.4
(2)
89.8
(2)
95.4
(2)
91.0
All other
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO : Paying ceiling rate1
1,602
100
9.4
17.1
73.5
73.5
1,467
100
9.6
90.4
90.4
1,425
100
10.1
17.4
72.5
72.5
Time deposits less than $100,000
Domestic governmental units
30 up to 90 days
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
5.51-8.00
MEMO : Paying ceiling rate1
5,028
100
51.3
22.7
17.6
5,219
100
59.2
14.4
26.4
15.3
4,346
100
49.6
24.2
26.2
17.2
4,530
100
58.1
15.4
26.6
14.6
682
100
61.9
12.7
25.4
20.6
90 up to 180 days
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
5.51-8.00
MEMO : Paying ceiling rate1
7,168
100
8.5
72.5
18.9
14.6
7,621
100
14.5
67.1
18.3
12.2
6,383
100
9.2
72.3
18.5
14.2
6,786
100
14.8
66.9
18.3
12.0
180 days up to 1 year
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
5.51-8.00
MEMO : Paying ceiling rate1
3,665
100
1.3
72.5
26.2
12.7
4,712
100
9.5
61.2
29.3
12.7
3,040
100
1.1
73.7
25.1
10.7
1 year and over
Issuing banks
Distribution, total
5.50 or less
5.51-6.00
6.01-8.00
MEMO: Paying ceiling rate1
7,934
100
3.3
60.0
36.7
7.0
8,423
100
4.4
57.6
38.0
7.8
7,156
100
3.2
59.6
37.2
6.5
For notes see end of table.
26.1
(2)
(2)
2)
(98.3
80.1
80.1
(2)
96.1
(2)
96.2
75,826 128,314 126,307
100
100
100
9.6
6.7
7.6
90.4
92.4
16.8
76.4
(2)
(2)
90.4
92.4
76.4
7,295
100
3.7
18.0
78.3
78.3
7,105
100
3.7
96.3
1,848
100
1.3
21.8
77.0
77.0
2,056
100
.8
99.2
72
100
1.2
98.8
99.4
178
100
1.4
14.0
84.6
84.6
(2)
95.7
(2)
93.6
(2)
96.3
(2)
99.2
290
100
1.2
23.3
75.4
75.4
123
100
.9
99.1
99.1
112
100
.9
38.1
60.9
60.9
690
100
66.7
8.4
24.9
19.7
528
100
37.1
23.0
39.9
28.1
595
100
42.8
12.5
44.7
24.9
352
100
37.2
29.9
32.9
20.0
412
100
40.6
16.4
43.0
17.3
175
100
36.9
9.1
53.9
44.6
183
100
47.7
3.7
48.7
41.7
785
100
3.4
74.2
22.3
17.4
836
100
12.3
69.1
18.6
14.1
812
100
3.3
81.0
15.7
10.8
876
100
5.3
71.9
22.8
18.0
529
100
4.6
80.2
15.1
8.3
581
100
5.1
70.0
24.9
19.4
283
100
.7
82.4
16.8
15.6
295
100
5.7
75.7
18.6
15.1
4,035
100
9.6
61.2
29.2
11.4
624
100
2.4
66.5
31.2
22.3
677
100
8.7
61.3
30.0
20.6
387
100
.9
231
100
31.1
22.3
68.1
536
100
.8
49.2
50.0
38.3
62*. 5
37.4
23.9
371
100
.5
39.4
60.0
44.3
156
100
2.0
76.2
21.8
19.8
165
100
1.4
71.1
27.5
24.7
7,606
100
4.1
57.2
38.7
7.5
778
100
4.7
63.6
31.8
11.8
817
100
6.8
61.7
31.5
11.3
839
100
7.2
53.9
38.9
9.5
906
100
6.1
51.3
42.5
9.9
720
100
7.3
54.1
38.5
7.2
776
100
6.2
50.6
43.2
7.7
119
100
130
100
5.9
55.6
38.5
23.1
2)
(97.9
(2)
1
(2)
6.1
52.4
41.5
23.6
(2)
98.8
Time and Savings Deposits
4.11
A71
SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS 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
All banks
Size of bank
(total deposits in millions of dollars)
Less than 100
100 and over
100 and over
July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25,
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
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 governmental units
30 up to 90 days
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
MEMO: Paying ceiling rate1
4,688
100
1.6
98.4
98.4
5,178
100
3.5
96.5
96.5
3,786
100
1.6
98.4
98.4
4,249
100
3.7
96.3
96.3
903
100
1.4
98.6
98.5
929
100
2.5
97.5
97.5
2,733
100
1.5
98.5
98.4
3,143
100
1.8
98.2
98.2
(2)
100.0
100.0
660
100
.7
99.3
99.3
2,219
100
1.9
98.1
98.0
2,483
100
2.1
97.9
97.9
10,771
100
6.3
93.7
91.9
11,065
100
7.9
92.1
91.4
9,631
100
7.0
93.0
91.1
9,917
100
8.5
91.5
90.7
1,140
100
.8
99.2
98.3
1,148
100
2.2
97.8
97.6
22,758
100
2.8
97.2
95.6
25,156
100
3.9
96.1
95.5
8,697
100
1.4
98.6
98.1
9,922
100
5.4
94.6
94.6
14,061
100
3.6
96.4
94.0
15,234
100
2.9
97.1
96.2
8,291
100
5.0
95.0
95.0
8,420
100
7.7
92.3
92.3
7,394
100
5.3
94.7
94.7
7,503
100
8.2
91.8
91.8
897
100
3.2
96.8
96.8
917
100
3.4
96.6
96.6
2,670
100
1.1
98.9
98.9
3,467
100
15.0
85.0
85.0
1,457
100
1.7
98.3
98.3
1,731
100
29.4
70.6
70.6
1,213
100
.4
99.6
99.6
1,736
100
.6
99.4
99.4
1 up to 2V£ years
Issuing banks
Distribution, total
5.50 or less
5.51-6.00
MEMO: Paying ceiling rate1
13,762
100
1.0
99.0
98.6
13,837
100
3.6
96.4
96.1
12,616
100
1.0
99.0
98.8
12,690
100
3.9
96.1
95.9
1,146
100
1.1
98.9
97.2
1,147
100
.8
99.2
98.0
22,743
100
.9
99.1
98.6
25,255
100
2.1
97.9
97.5
14,507
100
.3
99.7
99.6
16,092
100
3.1
96.9
96.8
8,236
100
1.9
98.1
96.8
9,163
100
.3
99.7
98.6
2 Vi up to 4 years
Issuing banks
Distribution, total
6.00 or less
6.01-6.50
MEMO: Paying ceiling rate 1 ....
12,757
100
2.0
98.0
97.3
12,859
100
3.2
96.8
96.6
11,626
100
2.0
98.0
97.3
11,723
100
3.4
96.6
96.6
1,132
100
1.3
98.7
97.6
1,136
100
1.2
98.8
97.2
14,172
100
3.1
96.9
96.0
15,620
100
2.9
97.1
96.8
8,130
100
5.1
94.9
93.8
9,172
100
4.8
95.2
95.2
6,042
100
.4
99.6
99.0
6,448
100
.3
99.7
99.1
4 up to 6 years
Issuing banks
Distribution, total
7.00 or less
7.01-7.25
7.26-7.60
MEMO: Paying ceiling rate1.
13,482
100
7.5
88.0
4.5
3.4
13,467
100
8.9
91.1
12,359
100
7.7
88.3
4.1
2.9
12,336
100
9.1
90.9
1,123
100
5.9
84.7
9.4
8.4
1,131
100
6.7
93.3
44,532
100
5.2
86.1
8.8
7.3
46,367
100
7.6
92.4
24,542
100
5.5
88.7
5.7
4.0
25,554
100
9.1
90.9
2
( )
90.2
19,990
100
4.7
82.8
12.5
11.4
20,813
100
5.9
94.1
2
( )
94.0
6 up to 8 years
Issuing banks
Distribution, total
7.25 or less
7.25-7.50
7.51-7.60
MEMO: Paying ceiling rate 1 ....
11,521
100
2.8
95.0
2.3
2.3
11,612
100
3.1
96.9
2)
(96.8
10,437
100
2.6
95.2
2.2
2.2
10,529
100
3.2
96.8
2)
(96.8
1,084
100
3.9
92.9
3.2
3.2
1,083
100
2.8
97.2
2)
(96.4
23,178
100
1.7
94.1
4.2
4.2
23,340
100
1.4
98.6
2)
(98.6
9,913
100
.3
98.6
1.1
1.1
10,073
100
.8
99.2
13,267
100
1.9
98.1
99.2
13,264
100
2.8
90.7
6.5
6.5
8 years and over
Issuing banks
Distribution, total
7.50 or less
7.51-7.75
MEMO: Paying ceiling rate 1 ....
8,631
100
2.5
97.5
97.4
8,560
100
3.8
96.2
96.2
7,641
100
1.9
98.1
98.1
7,607
100
2.7
97.3
97.3
991
100
7.7
92.3
91.4
953
100
12.1
87.9
87.6
3,091
100
12.3
87.7
86.7
2,964
100
16.0
84.0
84.0
1,102
100
.3
99.7
99.7
1,142
100
5.7
94.3
94.3
1,989
100
18.9
81.1
79.4
1,822
100
22.5
77.5
77.5
IRA and Keogh Plan time deposits, 3 years or more
Issuing banks
Distribution, total
6.00 or less
6.01-7.00
7.01-7.50
7.51-8.00
MEMO: Paying ceiling rate 1 ....
10,433
100
2.6
5.6
23.4
68.4
53.9
10,205
100
3.8
5.1
26.3
64.8
50.7
9,377
100
2.8
5.9
24.5
66.9
52.2
9,140
100
4.0
5.3
27.4
63.4
49.1
1,056
100
1.6
2.8
13.7
81.9
68.7
1,064
100
1.9
3.5
17.3
77.3
64.4
4,376
100
.6
1.5
12.5
85.4
73.6
4,124
100
.8
2.6
14.5
82.0
69.7
1,636
100
1.0
1.7
17.2
80.2
66.6
1,615
100
1.5
2.8
19.1
76.6
63.7
2,740
100
.4
1.4
9.7
88.5
77.8
2,508
100
.4
2.5
11.6
85.5
73.7
90 up to 180 days
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
MEMO: Paying ceiling rate1
180 days up to 1 year
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
MEMO: Paying ceiling rate 1 ....,
For notes see end of table.
(2)
90.6
2)
(90.5
2)
(92.5
2)
(91.9
514
100
(2)
98.1
All
Special Tables • November 1979
4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Continued
Deposit group, original
maturity, and distribution of deposits by
most common rate
All banks
Size of bank
(total deposits in millions of dollars)
Size of bank
(total deposits in millions of dollars)
All banks
Less than 100
100 and over
Less than 100
100 and over
July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25,
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
1979
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Time deposits less than $100,000
(cont.)
Money market certificates,
$20,000 or more, 6 months
Issuing banks
Distribution, total
8.00 or less
8.01-8.74
8.75-9.00
9.01-9.26
MEMO: Paying ceiling rate1
Club accounts
Issuing banks
Distribution, total
12,868
100
12,395
11,722
11,257
.7
.3
4.3
94.7
75.8
1.9
2.2
15.2
80.7
74.4
.8
2.0
2.4
9,407
41.3
18.1
6.8
33.8
100
0.00
0.01-4.00
4.01-4.50
4.51-5.50
100
100
.3
4.6
94.3
76.1
79.5
72.7
9,334
8,600
8,515
41.1
18.7
7.2
33.1
43.0
18.3
6.8
31.9
42.8
18.9
7.2
31.1
100
100
1,146
100
100
(2)
1,138
100
.3
.4
2
( )
1.7
98.3
72.4
16.2
100
100
22.9
15.5
6.9
54.6
1. See table 1.16, page A10, for the ceiling rates that existed at the
time of each survey. Effective July 1, 1979, commercial banks are authorized to offer variable ceiling accounts with no required minimum
denomination and with maturities of 4 years or more. In July the ceiling on
such accounts was 7.60 percent.
2. Less than .05 percent.
NOTE. All banks that either had discontinued offering or had never
offered particular types of deposits as of the survey date are not counted
62,336
100
(2)
.a
48,547
100
.2
.8
6.1
93.1
91.5
1.0
98.8
72.0
7.6
91.4
88.7
819
2,175
1,521
23.2
16.5
6.7
53.6
19.8
18.3
13.0
48.9
19.7
18.3
13.7
48.3
100
100
100
100
21,188
100
(2)
.3
27,392
.4
1.1
27,359
1.2
34,945
100
( 22 )
( )
1.0
99.0
63.2
654
1,226
100
867
100
12.4
13.4
13.5
60.7
8.7
89.8
85.0
98.5
83.3
948
100
28.1
100
29.3
24.7
14.1
31.9
25.0
13.1
33.8
100
.1
.4
6.8
92.7
91.5
13.4
13.2
12.9
60.5
as issuing banks. Moreover, the small amounts of deposits held at banks
that had discontinued issuing deposits are not included in the amounts
outstanding. Therefore, the deposit amounts shown in table 4.10 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
preceeding the survey date.
Details may not add to totals because of rounding.
4.12 AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings
Deposits at Insured Commercial Banks, July 25, 1979
Type of deposit, holder, and
original maturity
Bank size (total deposits in millions of dollars)
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
6.25
6.31
6.43
6.29
6.22
6.10
6.15
Savings, total
Individuals and nonprofit organizations
Partnerships and corporations
Domestic governmental units
All other
5.15
5.15
5.17
5.17
5.01
5.13
5.12
5.21
5.14
5.08
5.19
5.19
5.20
5.21
5.14
5.14
5.14
5.17
5.19
5.15
5.14
5.14
5.17
5.18
4.81
5.09
5.08
5.16
5.19
5.02
5.16
5.16
5.14
5.11
5.18
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
6.63
6.14
6.17
5.81
6.15
6.42
6.51
5.95
6.09
5.81
5.60
6.07
6.71
6.20
5.59
5.68
6.90
6.70
6.68
6.42
6.20
6.05
6.93
6.60
6.66
5.83
5.91
5.64
5.74
6.46
6.56
6.53
6.45
6.52
6.10
7.22
6.58
6.94
7.19
6.89
6.68
6.77
6.64
4.97
5.48
5.47
5.99
6.46
7.26
7.49
7.69
6.53
5.00
5.47
5.50
6.00
6.42
7.24
7.50
7.75
6.73
5.00
5.50
5.50
6.00
6.48
7.25
7.46
7.75
6.68
5.00
5.50
5.40
6.00
6.38
7.26
7.50
7.74
6.67
4.90
5.49
5.49
5.97
6.50
7.26
7.49
7.72
6.56
4.93
5.47
5.44
5.99
6.48
7.32
7.45
7.70
6.58
5.00
5.46
5.48
6.00
6.50
7.29
7.50
7.63
Other than domestic governmental units, total
30 up to 90 days
90 up to 180 days
180 days lup to 1 year
1 up to 2 A years
2V4 up to 4 years
4 up to 6 years
6 up to 8 years
Over 8 years
IRA and Keogh Plan time deposits, 3 years or more
7.86
7.77
7.87
7.81
7.87
7.86
7.91
Money market certificates, exactly 6 months
9.25
9.23
9.25
9.25
9.25
9.25
9.25
Club accounts i
3.70
2.26
3.31
3.48
3.99
3.91
4.41
1. Club accounts are excluded from all of the other categories.
NOTE. The average rates were calculated by weighting the most common
rate reported on each type of deposit at each bank by the 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,
A 73
Guide to
Tabular Presentation and Statistical Releases
GUIDE
TO TABULAR
PRESENTATION
Symbols
and
c
e
p
r
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when more than half of figures in that
column are changed.)
Amounts insignificant in terms of the last
decimal place shown in the table (for
example, less than 5 0 0 , 0 0 0 when the
smallest unit given is millions)
*
General
Abbreviations
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
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
List Published
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
Semiannually,
with Latest
Bulletin
Anticipated schedule of release dates for individual releases
Reference
Issue
Page
June 1979
A-76
A 74
Federal Reserve Board of Governors
P A U L A . V O L C K E R , Chairman
FREDERICK H . S C H U L T Z ,
OFFICE OF BOARD
Vice Chairman
MEMBERS
HENRY C .
WALLICH
PHILIP E .
COLDWELL
OFFICE OF STAFF
MONETARY
JOSEPH R. COYNE, Assistant to the Board
KENNETH A. GUENTHER, Assistant to the Board
JAY PAUL BRENNEMAN, 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
LEGAL
DIVISION
OFFICE OF THE
SECRETARY
THEODORE E . ALLISON,
Secretary
GRIFFITH L. GARWOOD, Deputy
Secretary
•WILLIAM N . MCDONOUGH, Assistant
Secretary
RICHARD H . PUCKETT, Manager,
Regulatory
Improvement
Project
DIVISION
OF
JANET O . HART.
AFFAIRS
OF
Director
Director
REGULATION
Director
FREDERICK R. DAHL, Associate
Director
WILLIAM TAYLOR, Associate
Director
WILLIAM W . WILES, Associate
Director
JACK M . EGERTSON, Assistant
Director
ROBERT A . JACOBSEN, Assistant
Director
DON E. KLINE, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
THOMAS A. SIDMAN, Assistant
Director
SAMUEL H. TALLEY, Assistant
Director
JAMES L . K I C H L I N E ,
AND
STATISTICS
Director
JOSEPH S. ZEISEL, Deputy
Director
JOHN H. KALCHBRENNER, Associate
Director
JOHN J. MINGO, Senior Deputy Associate
Director
ELEANOR J. STOCKWELL, Senior
Deputy
Associate
Director
JAMES M . BRUNDY, Deputy Associate
Director
ROBERT A . EISENBEIS, Deputy Associate
Director
JARED J. ENZLER, Deputy Associate
Director
J. CORTLAND G . PERET, Deputy Associate
Director
MICHAEL J. PRELL, Deputy Associate
Director
HELMUT F. WENDEL, Deputy Associate
Director
ROBERT M . FISHER, Assistant
Director
FREDERICK M . STRUBLE, Assistant
Director
STEPHEN P. TAYLOR, Assistant
Director
LEVON H. GARABEDIAN, Assistant
Director
(Adm inistration)
DIVISION
BANKING
AND
JOHN E . RYAN,
Director
C . S C H A D R A C K , Deputy
tFREDERicK
OF RESEARCH
to
OF INTERNATIONAL
FINANCE
Director
NATHANIEL E. BUTLER, Associate
JERAULD C . KLUCKMAN, Associate
ANNE GEARY, Assistant
Director
SUPERVISION
POLICY
CONSUMER
AND COMMUNITY
DIVISION
FOR
STEPHEN H. AXILROD, Staff
Director
EDWARD C . ETTIN, Deputy Staff
Director
MURRAY ALTMANN, 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
the Board
DIVISION
NEAL L . PETERSEN, General
Counsel
ROBERT E . MANNION, Deputy General
Counsel
CHARLES R . MCNEILL, Assistant to the General
Counsel
J. VIRGIL MATTINGLY, Assistant General
Counsel
GILBERT T . SCHWARTZ, Assistant General
Counsel
DIRECTOR
AND FINANCIAL
EDWIN M . TRUMAN,
Director
ROBERT F. GEMMILL, Associate
Director
GEORGE B. HENRY, Associate
Director
CHARLES J. SIEGMAN, Associate
Director
SAMUEL PIZER, Staff
Adviser
JEFFREY R . SHAFER, Deputy Associate
Director
DALE W . HENDERSON, Assistant
Director
LARRY J. PROMISEL, Assistant
Director
RALPH W . SMITH, JR., Assistant
Director
A 75
and Official Staff
J.
CHARLES
NANCY
H.
OFFICE
STAFF
PARTEE
EMMETT
OF
OFFICE
DIRECTOR
FOR
MANAGEMENT
J O H N M . D E N K L E R , Staff
Director
E D W A R D T . M U L R E N I N , Assistant
Staff
JOSEPH W . D A N I E L S , S R . , Director
of
Employment
DIVISION
Director
Equal
OF DATA
PROCESSING
OF
OF
THE
JOHN KAKALEC,
DIVISION
DONALD
JOHN L .
WALTER
JOHN D .
FEDERAL
OF STAFF
DIRECTOR
RESERVE
BANK
Contingency
FOR
ACTIVITIES
W I L L I A M H . W A L L A C E , Staff
HARRY A . G U I N T E R , Assistant
Director
Director
for
Planning
Controller
SERVICES
E. ANDERSON,Director
G R I Z Z A R D , Associate
Director
W . K R E I M A N N , Associate
Director
S M I T H , Assistant
Director
•On loan from the Federal Reserve Bank of Boston.
tOn loan from the Federal Reserve Bank of New York.
OF FEDERAL
BANK
OPERATIONS
RESERVE
JAMES R . K U D L I N S K I ,
Director
C L Y D E H . F A R N S W O R T H , J R . , Deputy
Director
Director
W A L T E R A L T H A U S E N , Assistant
C H A R L E S W . B E N N E T T , Assistant
Director
BRIAN M . C A R E Y ,
AssistanrDirector
LORIN S . M E E D E R , Assistant
Director
Director
R A Y M O N D L . T E E D , Assistant
CONTROLLER
OF SUPPORT
DIVISION
P. D . RING, Assistant
PERSONNEL
DAVID L . SHANNON,
Director
J O H N R . W E I S , Assistant
Director
C H A R L E S W . W O O D , Assistant
Director
OFFICE
RICE
Opportunity
CHARLES L . HAMPTON,
Director
B R U C E M . B E A R D S L E Y , Associate
Director
UYLESS D . B L A C K , Assistant
Director
G L E N N L . C U M M I N S , Assistant
Director
R O B E R T J . Z E M E L , Assistant
Director
DIVISION
J.
TEETERS
Director
A 76
Federal Reserve Bulletin • November 1979
FOMC and Advisory Councils
FEDERAL
OPEN
MARKET
COMMITTEE
PAUL A . VOLCKER,
Chairman
J O H N BALLES
ROBERT BLACK
PHILIP E . COLDWELL
M O N R O E KIMBREL
ROBERT M A Y O
J . C H A R L E S PARTEE
EMMETT J . RICE
MURRAY ALTMANN,
Secretary
NORM AND R . V . B E R N A R D , Assistant
Secretary
N E A L L . P E T E R S E N , General Counsel
JAMES H . O L T M A N , Deputy General Counsel
ROBERT E . M A N N I O N , Assistant General Counsel
S T E P H E N H . A X I L R O D , Economist
A L A N R . H O L M E S , Adviser for Market
Operations
HARRY B R A N D T , Associate
Economist
RICHARD G . D A V I S , Associate
Economist
PETER D . S T E R N L I G H T , Manager
SCOTT E . P A R D E E , Manager
FEDERAL
ADVISORY
FREDERICK H . S C H U L T Z
N A N C Y H . TEETERS
HENRY C . WALLICH
E D W A R D C . E T T I N , Associate
Economist
G E O R G E B . H E N R Y , Associate
Economist
PETER M . K E I R , Associate
Economist
M I C H A E L R E R A N , Associate
Economist
JAMES L . K I C H L I N E , Associate
Economist
JAMES PARTHEMOS, Associate
Economist
KARL S C H E L D , Associate
Economist
E D W I N M . T R U M A N , Associate
Economist
JOSEPH S . Z E I S E L , Associate
Economist
for Domestic Operations, System Open Market Account
for Foreign Operations, System Open Market Account
COUNCIL
J . W . M C L E A N , TENTH DISTRICT,
President
H E N R Y S . W O O D B R I D G E , J R . , FIRST DISTRICT
W A L T E R B . W R I S T O N , SECOND DISTRICT
W I L L I A M B . E A G L E S O N , J R . , THIRD DISTRICT
M E R L E E . G I L L I A N D , FOURTH DISTRICT
J . O W E N C O L E , FIFTH DISTRICT
FRANK A . P L U M M E R , SIXTH DISTRICT
ROGER E . A N D E R S O N , SEVENTH DISTRICT
C L A R E N C E C . BARKSDALE, EIGHTH DISTRICT
CLARENCE G . FRAME, NINTH DISTRICT
JAMES D . BERRY, ELEVENTH DISTRICT
C H A U N C E Y E . S C H M I D T , TWELFTH DISTRICT
HERBERT V . PROCHNOW,
Secretary
W I L L I A M J . KORSVIK, Associate
Secretary
CONSUMER
ADVISORY
COUNCIL
W I L L I A M D . W A R R E N , L o s A i igeles, California,
MARCIA A. H A K A L A , Omaha Nebraska, Vice
R O L A N D E . B R A N D E L , San Francisco, California
JAMES L. B R O W N , Milwaukee, Wisconsin
M A R K E . B U D N I T Z , Atlanta, Georgia
J O H N G. B U L L , Fort Lauderdale, Florida
ROBERT V . B U L L O C K , Frankfort, Kentucky
C A R L F E L S E N F E L D , New York, New York
JEAN A. Fox, Pittsburgh, Pennsylvania
RICHARD H . H O L T O N , Berkeley, California
E D N A D E C O U R S E Y J O H N S O N , Baltimore, Mary-
land
RICHARD F. K E R R , Cincinnati, Ohio
ROBERT J . K L E I N , New York, New York
HARVEY M. K U H N L E Y , Minneapolis, Minnesota
Chairman
Chairman
PERCY W. LOY, Portland, Oregon
R. C. MORGAN, El Paso, Texas
FLORENCE M . RICE, N e w Y o r k , N e w Y o r k
RALPH J. ROHNER, W a s h i n g t o n , D .
C.
RAYMOND J . SAULNIER, N e w Y o r k , N e w Y o r k
HENRY B . SCHECHTER, W a s h i n g t o n , D .
C.
E. G. SCHUHART II, Amarillo, Texas
BLAIR C . SHICK, C a m b r i d g e , M a s s a c h u s e t t s
THOMAS R . SWAN, P o r t l a n d , M a i n e
A N N E GARY T A Y L O R , A l e x a n d r i a ,
Virginia
RICHARD A. VAN WINKLE, Salt Lake City, Utah
RICHARD D . WAGNER, S i m s b u r y , C o n n e c t i c u t
MARY W . WALKER, M o n r o e , G e o r g i a
A 77
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert M. Solow
Robert P. Henderson
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Robert H. Knight
Boris Yavitz
Frederick D. Berkeley, III
Vacancy
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
Arnold R. Weber
Lawrence H. Rogers, II
G. J. Tankersley
RICHMOND*
23261
Maceo A. Sloan
Steven Muller
I. E. Killian
Robert E. Elberson
Robert P. Black
George C. Rankin
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center
22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
72203
40232
Memphis
38101
MINNEAPOLIS
Helena
KANSAS CITY
55480
59601
64198
Denver
Oklahoma
City
80217
73125
Omaha
68102
DALLAS
75222
El
Paso
Houston
San Antonio
SAN FRANCISCO.
Los Angeles
Portland
Salt Lake City
Seattle
79999
77001
78295
.94120
90051
97208
84125
98124
Robert E. Showalter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg
30303
35202
32203
33152
37203
70161
Vice President
in charge of branch
William A. Fickling, Jr.
William H. Martin, III
Copeland D. Newbern
Castle W. Jordan
Cecelia Adkins
Levere C. Montgomery
Monroe Kimbrel
Robert P. Forrestal
Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
Pierro M. Viguerie
Robert H. Strotz
John Sagan
Jordan B. Tatter
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James F. Thompson
Frank A. Jones, Jr.
Lawrence K. Roos
Donald W. Moriarty, Jr,
Stephen F. Keating
William G. Phillips
Patricia P. Douglas
Mark H. Willes
Thomas E. Gainor
Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Gerald D. Hines
A. J. Losee
Gene M. Woodfin
Pat Legan
Ernest T. Baughman
Robert H. Boy kin
Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Wendell J. Ashton
Lloyd E. Cooney
John J. Balles
John B. Williams
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
Betty J. Lindstrom
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce Jr.
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
* Additional o f f i c e s of these B a n k s are located at L e w i s t o n , M a i n e 0 4 2 4 0 ; W i n d s o r L o c k s , C o n n e c t i c u t 0 6 0 9 6 ; Cranford,
N e w Jersey 0 7 0 1 6 ; Jericho, N e w York 1 1 7 5 3 ; Utica at O r i s k a n y , N e w York 1 3 4 2 4 ; C o l u m b u s , O h i o 4 3 2 1 6 ; C o l u m b i a , S o u t h
Carolina 2 9 2 1 0 ; C h a r l e s t o n , W e s t Virginia 2 5 3 1 1 ; D e s M o i n e s , I o w a 5 0 3 0 6 ; Indianapolis, Indiana 4 6 2 0 4 ; and M i l w a u k e e ,
Wisconsin 53202.
A 78
Federal Reserve Board Publications
Available from Publications Services, Room
MP-510,
Board of Governors of the Federal Reserve
Systiem,
Washington, D.C. 20551. Where a charge is indicated,
remittance should accompany
request and be made
THE
FEDERAL
RESERVE
SYSTEM—PURPOSES
FUNCTIONS. 1 9 7 4 . 125 pp.
ANNUAL
REPORT.
FEDERAL
RESERVE
AND
AND
SURVEY OF C H A N G E S IN FAMILY F I N A N C E S .
BULLETIN.
Monthly.
$20.00
per
MONETARY
STATISTICS,
1914-1941.
(Reprint of Part 1 only) 1976. 682 pp. $5.00.
B A N K I N G AND M O N E T A R Y STATISTICS,
1976. 1,168 pp. $ 1 5 . 0 0 .
1941-1970.
A N N U A L STATISTICAL D I G E S T
1971-75. 1976. 339 pp. $ 4 . 0 0 per copy for each
paid subscription to Federal Reserve
Bulletin;
all others $ 5 . 0 0 each.
FEDERAL RESERVE CHART BOOK. Issued f o u r t i m e s a
year in February, May, August, and November.
Subscription includes one issue of Historical Chart
Book. $7.00 per year or $ 2 . 0 0 each in the United
States, its possessions, Canada, and Mexico. Elsewhere, $10.00 per year or $ 3 . 0 0 each.
HISTORICAL CHART BOOK. Issued annually in Sept.
Subscription to Federal Reserve 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 . 5 0 each.
CAPITAL MARKET DEVELOPMENTS. W e e k l y . $ 1 5 . 0 0 per
year or $ . 4 0 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 3 . 5 0 per year or $.35 each.
Elsewhere, $ 2 0 . 0 0 per year or $ . 5 0 each.
S E L E C T E D INTEREST AND E X C H A N G E R A T E S — W E E K L Y
SERIES OF C H A R T S . W e e k l y . $ 1 5 . 0 0 p e r y e a r 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 $ . 3 5 each.
Elsewhere, $20.00 per year or $ . 5 0 each.
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 . 5 0 .
R E G U L A T I O N S OF T H E B O A R D OF G O V E R N O R S OF T H E
F E D E R A L R E S E R V E SYSTEM
P U B L I S H E D I N T E R P R E T A T I O N S OF T H E B O A R D OF G O V -
ERNORS, as of Dec. 31, 1978. $7.50.
EDITION.
1977.
1968.
321
pp. $ 1 . 0 0 each; 10 or more to one address, $.85
each.
R E P O R T OF THE J O I N T T R E A S U R Y - F E D E R A L RESERVE
S T U D Y OF T H E U . S . G O V E R N M E N T SECURITIES
MARKET. 1969. 48 pp. $.25 each; 10 or more to
one address, $ . 2 0 each.
J O I N T T R E A S U R Y - F E D E R A L RESERVE S T U D Y OF T H E
G O V E R N M E N T SECURITIES M A R K E T : S T A F F S T U D -
IES—PART 1. 1970. 86 pp. $ . 5 0 each; 10 or more
to one address, $ . 4 0 each. PART 2. 1971. 153 pp.
and PART 3. 1973. 131 pp. Each volume $1.00;
10 or more to one address, $.85 each.
O P E N M A R K E T POLICIES AND O P E R A T I N G
PROCEDURES—STAFF STUDIES.
1971. 2 1 8 pp.
$2.00
REAPPRAISAL OF T H E
M E C H A N I S M . Vol.
1973-77. 1978. 361 pp. $ 1 2 . 0 0 per copy.
INDUSTRIAL P R O D U C T I O N — 1 9 7 6
1968.
each; 10 or more to one address, $1.75 each.
1972-76. 1977. 338 pp. $ 1 0 . 0 0 per copy.
304
pp. $ 4 . 5 0 each; 10 or more to one address, $ 4 . 0 0
each.
B A N K C R E D I T - C A R D AND C H E C K - C R E D I T P L A N S .
102 pp. $ 1 . 0 0 each; 10 or more to one address,
$.85 each.
year or $ 2 . 0 0 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 8 . 0 0 per year or $1.75
each. Elsewhere, $ 2 4 . 0 0 per year or $ 2 . 5 0 each.
BANKING
payable to the order of the Board of Governors of the
Federal Reserve System. Remittance from foreign residents should be drawn on a U.S. bank. (Stamps and
coupons are not
accepted.)
FEDERAL RESERVE D I S C O U N T
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 D E T E R M I N A T I O N
CON-
FERENCE, October 30-31, 1970, Washington, D.C.
1972. 397 pp. Cloth ed. $ 5 . 0 0 each; 10 or more
to one address, $ 4 . 5 0 each. Paper ed. $ 4 . 0 0 each;
10 or more to one address, $ 3 . 6 0 each.
FEDERAL RESERVE S T A F F S T U D Y : W A Y S TO M O D E R A T E
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
BANKS. 1973. 271 pp. $ 3 . 5 0 each; 10 or more
to one address, $ 3 . 0 0 each.
IMPROVING THE M O N E T A R Y A G G R E G A T E S : R E P O R T OF
THE ADVISORY C O M M I T T E E ON M O N E T A R Y S T A -
TISTICS. 1976. 43 pp. $ 1 . 0 0 each; 10 or more to
one address, $.85 each.
A N N U A L P E R C E N T A G E R A T E T A B L E S ( 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 M E A S U R E S OF CAPACITY AND C A PACITY U T I L I Z A T I O N . 1 9 7 8 . 4 0 p p . $ 1 . 7 5 e a c h ,
10 or more to one address, $1.50. each.
T H E B A N K H O L D I N G C O M P A N Y M O V E M E N T TO
1978:
A COMPENDIUM. 1978. 289 pp. $ 2 . 5 0 each, 10
or more to one address, $2.25 each.
IMPROVING
THE
MONETARY
AGGREGATES:
STAFF
PAPERS. 1978. 170 pp. $ 4 . 0 0 each, 10 or more
to one address, $3.75 each.
1 9 7 7 CONSUMER CREDIT SURVEY. 1 9 7 8 . 1 1 9 p p .
each.
$2.00
A 79
CONSUMER EDUCATION
PAMPHLETS
(Short pamphlets suitable for classroom use.
copies available without
charge.)
T H E M A R K E T FOR F E D E R A L F U N D S AND R E P U R C H A S E
T H E B O A R D OF G O V E R N O R S OF THE F E D E R A L RESERVE
SYSTEM
C O N S U M E R H A N D B O O K T O C R E D I T PROTECTION L A W S .
T H E E Q U A L C R E D I T O P P O R T U N I T Y A C T AND . . . A G E .
T H E E Q U A L C R E D I T O P P O R T U N I T Y A C T AND . . .
C R E D I T R I G H T S IN H O U S I N G .
T H E E Q U A L C R E D I T O P P O R T U N I T Y A C T AND . . .
D O C T O R S , L A W Y E R S , SMALL R E T A I L E R S ,
AND
O T H E R S W H O M A Y PROVIDE INCIDENTAL C R E D I T .
T H E E Q U A L C R E D I T O P P O R T U N I T Y A C T AND . . .
WOMEN.
FAIR C R E D I T B I L L I N G .
T H E FEDERAL O P E N MARKET COMMITTEE
F E D E R A L RESERVE B A N K B O A R D OF DIRECTORS
F E D E R A L RESERVE B A N K S
A G U I D E TO F E D E R A L RESERVE R E G U L A T I O N S .
H O W TO F I L E A C O N S U M E R C R E D I T C O M P L A I N T .
IF Y O U BORROW T O B U Y S T O C K .
IF Y O U U S E A C R E D I T C A R D .
T R U T H IN L E A S I N G .
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
STUDIES
(Studies and papers on economic
jects that are of general
interest.)
and financial
Summaries
Bulletin
Only Printed in the
sub-
(Requests to obtain single copies of the full text or
to be added to the mailing list for the series may be
sent to Publications
Services.)
T H E B E H A V I O R OF M E M B E R B A N K R E Q U I R E D RESERVE
RATIOS AND T H E EFFECTS OF B O A R D A C T I O N ,
1 9 6 8 - 7 7 , by Thomas D. Simpson. July 1978. 39
pp.
F O O T H O L D ACQUISITIONS AND B A N K M A R K E T
STRUC-
TURE, by Stephen A. Rhoades and Paul Schweitzer, July 1978. 8 pp.
INTEREST R A T E C E I L I N G S AND D I S I N T E R M E D I A T I O N , b y
Edward F. McKelvey. Sept. 1978. 105 pp.
THE
R E L A T I O N S H I P B E T W E E N RESERVE RATIOS AND
THE M O N E T A R Y A G G R E G A T E S U N D E R RESERVES
AND FEDERAL F U N D S R A T E O P E R A T I N G T A R G E T S ,
by Kenneth J. Kopecky. Dec. 1978. 58 pp.
T I E - I N S B E T W E E N T H E G R A N T I N G OF C R E D I T AND
SALES OF INSURANCE BY B A N K H O L D I N G C O M P A NIES AND O T H E R L E N D E R S , b y R o b e r t A . E i s e n b e i s
and Paul R. Schweitzer. Feb. 1979. 75 pp.
G E O G R A P H I C EXPANSION OF B A N K S AND C H A N G E S IN
BANKING STRUCTURE, by Stephen A.
Mar. 1979. 4 0 pp.
Rhoades.
IMPACT OF THE D O L L A R DEPRECIATION ON THE U . S .
PRICE L E V E L : A N A N A L Y T I C A L S U R V E Y OF E M -
PIRICAL ESTIMATES, by Peter Hooper and Barbara
R. Lowrey. Apr. 1979. 53 pp.
INNOVATIONS IN B A N K L O A N C O N T R A C T I N G :
RECENT
EVIDENCE, by Paul W . Boltz and Tim S. Campbell. May 1979. 4 0 pp.
M E A S U R E M E N T OF CAPACITY U T I L I Z A T I O N :
PROBLEMS
AND TASKS, by Frank de Leeuw, Lawrence R.
Forest, Jr., Richard D . Raddock, and Zoltan E.
Kenesey. July 1979. 264 pp.
AGREEMENTS, by Thomas D . Simpson. July 1979.
106 pp.
Multiple
IMPACT OF B A N K H O L D I N G C O M P A N I E S ON C O M P E T I TION AND PERFORMANCE IN B A N K I N G M A R K E T S ,
by Stephen A. Rhoades and Roger D . Rutz. Aug.
1 9 7 9 . 3 0 pp.
Printed in Full in the
(Included
under
Bulletin
"Reprints.")
REPRINTS
(Except for Staff Papers, Staff Studies,
and some
leading articles, most of the articles reprinted do not
exceed 12 pages.)
M E A S U R E S OF SECURITY C R E D I T . 1 2 / 7 0 .
REVISION OF B A N K C R E D I T S E R I E S . 1 2 / 7 1 .
ASSETS AND LIABILITIES OF FOREIGN B R A N C H E S OF
U . S . BANKS. 2 / 7 2 .
B A N K D E B I T S , D E P O S I T S , AND D E P O S I T T U R N O V E R —
REVISED S E R I E S . 7 / 7 2 .
Y I E L D S ON N E W L Y ISSUED CORPORATE B O N D S . 9 / 7 2 .
R E C E N T ACTIVITIES OF FOREIGN B R A N C H E S OF U . S .
BANKS. 1 0 / 7 2 .
O N E - B A N K HOLDING- C O M P A N I E S B E F O R E T H E 1 9 7 0
AMENDMENTS. 1 2 / 7 2 .
Y I E L D S ON R E C E N T L Y O F F E R E D C O R P O R A T E B O N D S .
5/73.
R A T E S ON C O N S U M E R I N S T A L M E N T L O A N S . 9 / 7 3 .
N E W SERIES FOR L A R G E M A N U F A C T U R I N G C O R P O R A TIONS. 1 0 / 7 3 .
U.S.
ENERGY
SUPPLIES
AND
USES,
Staff
Economic
Study by Clayton Gehman. 12/73.
T H E S T R U C T U R E OF M A R G I N C R E D I T . 4 / 7 5 .
N E W STATISTICAL SERIES ON L O A N C O M M I T M E N T S AT
S E L E C T E D L A R G E COMMERCIAL B A N K S . 4 / 7 5 .
A N ASSESSMENT OF B A N K H O L D I N G C O M P A N I E S , Staff
Economic Study by Robert J. Lawrence and Samuel H. Talley. 1/76.
INDUSTRIAL ELECTRIC P O W E R 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 .
S U R V E Y OF F I N A N C E C O M P A N I E S , 1 9 7 5 . 3 / 7 6 .
R E V I S E D SERIES FOR M E M B E R B A N K DEPOSITS AND
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 .
F E D E R A L RESERVE O P E R A T I O N S IN P A Y M E N T M E C H A NISMS: A S U M M A R Y . 6 / 7 6 .
NEW
ESTIMATES OF CAPACITY U T I L I Z A T I O N : M A N U FACTURING AND M A T E R I A L S . 1 1 / 7 6 .
BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS
IN 1 9 7 6 . 4 / 7 7 .
SURVEY OF T E R M S OF B A N K L E N D I N G — N E W S E R I E S .
5/77.
T H E COMMERCIAL P A P E R M A R K E T .
6/77.
T H E FEDERAL B U D G E T IN T H E 1 9 7 0 ' S .
9/78.
SUMMARY M E A S U R E S OF THE D O L L A R ' S FOREIGN E X CHANGE V A L U E . 1 0 / 7 8 .
SURVEY OF T I M E AND SAVINGS DEPOSITS AT C O M M E R CIAL B A N K S , J a n u a r y 1 9 7 9 . 5 / 7 9 .
R E D E F I N I N G THE M O N E T A R Y A G G R E G A T E S . 1 / 7 9 .
U . S . I N T E R N A T I O N A L TRANSACTIONS IN 1 9 7 8 . 4 / 7 9 .
IMPLEMENTATION
ACT. 10/79.
C H A N G E S IN
10/79.
OF
BANK
THE
INTERNATIONAL
LENDING
PRACTICES,
BANKING
1977-79.
A 80
Index to Statistical Tables
References
are to pages A-3 through A-72 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 installment 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. government 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, 26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks
Assets and liabilities, 3, 15-19, 2 0 - 2 3 , 6 9 - 7 2
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, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer installment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits, taxes, and dividends, 37
Security issues, 36, 65
Cost of living (See Consumer prices)
Credit unions, 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)
Banks, by classes, 3, 16, 17, 1 9 , 2 0 - 2 3 , 2 9 , 6 9 - 7 2
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 1 1, 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 Corporation, 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35, 41
Federal National Mortgage Association, 35, 40, 41
Federal Reserve Banks
Condition statement, 12
Discount rates (See Interest rates)
U.S. government securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies
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, 56, 58, 61, 62, 63, 67
Liabilities to, 23, 5 6 - 6 0 , 6 4 - 6 6
GOLD
Certificates, 12
Stock, 4, 55
Government National Mortgage Association, 35, 40, 41
Gross national product, 52, 53
A 81
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Installment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19, 6 9 - 7 2
Interbank loans and deposits, 16, 17
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, 10, 72
International capital transactions ot the United
States, 5 6 - 6 7
International organizations, 5 6 - 6 1 , 6 4 - 6 7
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types)
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 associations, 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
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 United States, 40, 41
Savings and loan associations, 29
MANUFACTURING
Capacity utilization, 46
Production, 46, 49
Margin requirements, 28
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
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 1 1
PERSONAL income, 53
Prices
Consumer and producer, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 18, 2 0 - 2 2 , 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, 4 0
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. government 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 governments
Deposits, 19, 20, 21, 22
Holdings of U.S. government 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, 6 9 - 7 2
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. government balances
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. government securities
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 1 1
Outstanding, by type and ownership, 32, 33
Rates, 3, 27
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 2 0 - 2 4
Wholesale prices, 46, 51
YIELDS (See Interest rates)
A 82
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
Minneapolis
Detroit
Chicago
Omaha*
Denver
Kansas
Louisvtl
City
t. Louis
HashvilU
Inge/es
SlP^
tarlotte.
®
>
Jttle Rock Birminghai I^Atlanta
Dallas®
UPas'o
Jackson
Houston i
'Orleans
\San Antonio
January 1978
ALASKA
LEGEND
Q
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Board of Governors of the Federal
Reserve System
Federal Reserve Bank Facility
@FedFRASER