Full text of Federal Reserve Bulletin : October 1973
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FEDERAL RESERVE BULLETIN CONTENTS NUMBER 10 • VOLUME 59 • OCTOBER 1973 713 Balance of Payments Adjustment Since 1971 724 Changes in Time and Savings Deposits at Commercial Banks, April-July 1973 731 New Series for Large Manufacturing Corporations 734 Statement to Congress 739 Record of Policy Actions of the Federal Open Market Committee 746 Law Department 777 Announcements 778 Industrial Production Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 72 International Statistics A 96 Board of Governors and Staff A 98 Open Market Committee and Staff; Federal Advisory Council A 99 Federal Reserve Banks and Branches A 100 Federal Reserve Board Publications A 103 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee Ralph C. Bryant Lyle E. Gramley Joseph R. Coyne Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve B U L L E T I N is issued monthly under the direction of the staff editorial c o m m i t t e e . This committee is responsible for opinions expressed e x c e p t in official statements and signed articles. Direction for the art work is provided by Mack R o w e . Balance of Payments Adjustment Since 1971 UNITED STATES: BASIC • BALANCE ANNUAL RATES, BILLIONS OF DOLLARS 0 1 M B | 5mmi I 53n • • • 1970 • Seasonally adjusted data. SOURCE: U . S . Dept. of Commerce. It has become increasingly evident in recent months that the basic accounts of the U.S. balance of payments have been improving markedly since the bad years of 1971 and 1972. The basic balance—the balance on current account and long-term capital—had deteriorated sharply in the first half of 1971. After the changes in exchange rates that year, which culminated in the Smithsonian realignment in December 1971, inflows of long-term capital recovered strongly in 1972. However, the current account continued to worsen until about the middle of 1972; the trade deficit reached a peak in the fourth quarter. Since early this year, both the long-term capital account and the current account have shown favorable changes. The inflow of foreign capital for direct investment purposes and particularly for purchases of U.S. securities has continued to grow. And a very sharp rise in the value of exports began early this year. Much of the improvement in exports—and in the balance of exports and imports—must be attributed to the sharp, worldwide rise since late last year in prices of agricultural commodities, of which the United States is a major supplier. Some further part of the improvement is due to the marked cyclical strengthening of demand in other industrial countries that occurred during 1972, an upturn which—except in Canada—lagged considerably behind that in the United States. Finally, some of the improvement in the U.S. trade balance reflects the reactions of producers and consumers here and abroad to the Smithsonian realignment and to subsequent further changes in exchange rates. FEDERAL RESERVE BULLETIN • OCTOBER 1973 714 The 10 per cent devaluation of the U.S. dollar in February 1973, coupled with the further market appreciation of important European currencies against the dollar at that time and again in the late spring and early summer, has contributed appreciably to the rise in U.S. dollar prices of internationally traded foodstuffs and materials. This rise in prices currently is helping to raise the dollar value of U.S. exports more than that of imports. Longer-run effects of this year's exchange-rate changes upon the relative competitive positions of producers of finished manufactures here and abroad will undoubtedly take some further time to work themselves out fully. This article examines some of the recent changes in the balance of payments positions of other countries—to find the counterpart of the economic adjustments that have improved the U.S. position. Attention is directed mainly to elements of the basic accounts. OVER-ALL PAYMENTS POSITIONS Analysis of balance of payments positions in the period under review is unusually difficult because the exchange rates for many currencies are floating. If all rates were floating perfectly freely, payments positions would be fully reflected in changes in exchange rates. Since, in fact, there has been considerable official intervention in the exchange markets, the over-all payments positions—comprising the basic position plus flows of short-term capital—are reflected in changes in both reserves and exchange rates. What the change in reserves would have been in a particular country TABLE 1 CHANGES IN TOTAL OFFICIAL RESERVES AND IN AVERAGE EXCHANGE RATES Reserve changes in billions of S D R ' s ; exchange rate changes in per cent 1973 1972 Cumulative Country J a n . - June Reserves Germany Belgium France Netherlands Japan United Kingdom Italy Canada United States July-Dec. Exchange rates Reserves Exchange rates Reserves Exchange rates Reserves Exchange rates 3.8 .3 .9 .5 .4 .7 5.1 -.3 .8 0 .6 .4 .6 1.2 0 .4 7.8 .7 .6 .2 22.0 7.7 8.5 9.9 12.4 1.0 2.1 1.1 23.2 9.7 14.0 10.0 .3 .8 3.2 -1.3 2.3 -2.0 2.0 -8.2 -2.8 .6 2.4 -5.7 -.2 -.6 7.8 -14.6 -.4 .4 -3.6 0 -.9 -3.6 -.3 -.2 -6.5 1.5 -.3 1.9 0 — .4 -7.8 -9.1 -10.9 -13.0 -.7 -.2 -17.9 -7.7 -12.8 -14.5 NOTE.—The official reserves data for all countries except the United States are for changes in SDR (Special Drawing Rights) equivalent value of total gross official reserves as published by the International Monetary Fund, including gold, S D R ' s , reserve positions in the IMF, and official foreign e x c h a n g e holdings, but excluding the S D R allocation of January 1972; published reserve changes in January-August 1973 are increased by 9 . 2 1 per cent of the end-February dollar value of foreign e x c h a n g e reserves to offset changes in S D R valuation Jan. - A u g . arising from the devaluation of the U . S . dollar in February. For the United States, the S D R equivalent value of official reserve transactions, excluding S D R allocations, is used. The average exchange-rate changes are based on offer rates in N e w York, weighted by the shares of each country in the total 1972 trade of the Group of Ten countries plus Switzerland; changes are expressed as a percentage of the daily exchange rates in the last month of the previous period. BALANCE OF PAYMENTS ADJUSTMENT 715 if its exchange rate had been held constant—or, conversely, what the exchange rate would have been if there had been no intervention—cannot be ascertained. For example, as shown in Table 1, the fact that Germany's official reserves have increased by almost SDR 8 billion during the first 8 months of this year, while the exchange rate for the German mark has appreciated 22 per cent relative to other major currencies, implies that Germany has a stronger balance of payments position than either of those two indicators would have suggested by itself. Moreover, these indicators do not tell us what part, if any, short-term capital flows are playing. Similarly, the combination of changes in reserves and in exchange rates suggests that the over-all payments positions of Belgium, France, and the Netherlands have all remained very strong this year, though not so strong as that of Germany. In contrast, in Italy, Canada, and the United States the exchange rate has depreciated and official reserves have declined since the beginning of the year, indicating weak over-all payments positions. However, for the United States, the position has improved recently with the exchange rate stabilizing and net reserves increasing. Reserves and exchange rates give ambiguous evidence on the payments positions of Japan and the United Kingdom. The yen has appreciated further, but Japan's reserves have fallen sharply. In the United Kingdom, reserves have increased, but there has been a significant further depreciation of the sterling exchange rate. To get a better view of underlying trends and adjustments, individual elements of the basic balances should be examined. Short-term capital flows, which are generally excluded from the basic balance, reflect primarily exchange-rate expectations and changes in relative monetary conditions; in contrast, underlying movements in most elements of the basic balance—though certainly not all elements—are influenced primarily by changes in relative costs. BASIC BALANCE DEVELOPMENTS Trends in the basic balances of some major industrial countries are shown in Table 2. France, Italy, the United Kingdom, and Japan have experienced pronounced changes from surplus toward deficit in their basic balances since the first half of 1971, while the basic balance surpluses of Germany, Belgium, and the Netherlands have persisted or increased. The basic surplus of Canada remained large last year, but has turned to deficit this year. These developments are the net resultant of a variety of factors. In part they reflect the first stages of the economic adjustments promoted by the exchange-rate realignments that have occurred since May 1971. But the developments have also reflected essentially short-run factors, some global in scale and in impact, but others peculiar to individual countries. FEDERAL RESERVE BULLETIN • OCTOBER 1973 716 Perhaps the most important of the short-run factors for the United States and other industrial countries has been the upswing in aggregate domestic demand in Europe and Japan. The cyclical upswing had begun earlier in the United States and Canada than it had in the rest of the industrial world. Whereas by the spring of 1973 the boom in the United States and Canada was beginning to slow, the upswing gathered strength in Europe and Japan only in the second half of 1972. Thus, through most of 1972 relative TABLE 2 BASIC BALANCES OF MAJOR INDUSTRIAL COUNTRIES In billions of S D R ' s ; at annual rates 1972 1971 1973 Country Jan.-June France 1 Italy 2 United K i n g d o m 3 Japan Germany Belgium Netherlands Canada United States 5 July-Dec. Jan.-June July-Dec. Jan.-June 0 1.1 6.5 3.4 1.0 .4 7.4 6.1 -.4 -1.1 -3.3 1.2 -.3 -1.5 0 2.7 -1.0 -2.8 .5 -7.4 2.0 .5 -.1 2.5 .4 .7 5.7 .2 .3 2.4 .5 .5 2.5 4 .7 .4 1.1 -8.8 .5 -10.4 .6 -10.4 1.4 -7.8 -.3 -3.0 1 Basic balance of metropolitan France with the rest of the world including franc-zone countries. 2 B a l a n c e on nonmonetary transactions, that is, including identified short-term capital flows other than Italian banks' and also errors and o m i s s i o n s . 3 Balance on current account and identified investment and other capital transactions (including "capital transfers"), that is, including identified short-term capital flows and changes in foreign countries' e x c h a n g e reserves held in sterling. 4 First quarter only. 5 U . S . data are seasonally adjusted. NOTE.—Data are converted from local currencies into S D R ' s on a quarterly basis, using average dollar exchange rates provided by the IMF. For this purpose: $1 = S D R 1.0 in 1971; $1 = S D R 0 . 9 2 1 0 5 3 in 1972; $1 = S D R 0 . 8 7 5 in the first quarter of 1973; and $1 = S D R 0 . 8 2 8 9 4 8 in the second quarter of 1973. Data are from I M F , Organization for E c o n o m i c Cooperation and D e v e l o p m e n t , and national sources. cyclical conditions tended to increase the U.S. deficit and West European surpluses and to delay the shrinkage in Japan's surplus; in contrast, cyclical conditions in 1973 are tending to have the opposite effects. Generally strong demand in the industrial countries also increased their combined trade deficit with the nonindustrial countries in 1972; demand for products of the latter group of countries was strong, while the nonindustrial countries' own demand for imports was relatively low because of low earnings in 1971. This year exports from the industrial countries have been increasing sharply, as demand in the nonindustrial countries has responded to previous rises in export earnings; but imports from the nonindustrial countries increased even more. BALANCE OF PAYMENTS ADJUSTMENT EXPORT PRICES RATIO SCALE, 1970=100 Data are expressed in U . S . dollars. Price indexes for basic commodities; unit value index for manufactured goods. SOURCE: United Nations. J A P A N : BASIC BALANCE AND SOME MAJOR COMPONENTS ANNUAL RATES, BILLIONS OF DOLLARS TRADE BALANCE BASIC B A L A N C E LONG-TERM CAPITAL TT '71 '72 73 '71 '72 '73 '71 '72 '73 DATA ARE FOR FIRST HALF OF YEAR ONLY. SOURCE: Bank of Japan. 717 As a result of the worldwide strength of demand coupled with supply problems for certain commodities and some stockpiling in anticipation of future price rises, there has been a striking upsurge in the prices of internationally traded goods. This upsurge, which is apparent especially in the prices of food and raw materials, has played an important part in improving the payments balances not only of some of the less developed countries but also of the United States. These price rises have caused the terms of trade—that is, the ratio of export unit values to import unit values—to move differently for different countries. The terms of trade of countries that export foodstuffs and raw materials have tended to improve. On the other hand, the terms of trade of countries that import a large volume of food or raw materials have tended to deteriorate; the United Kingdom is a prime example. Two other general factors should be mentioned. One, affecting mainly the industrial countries, is the terms-of-trade effect that tends to follow a change in exchange rates. That is, the local-currency prices of a devaluing country's imports tend to rise with the currency depreciation. This occurs before the volume of imports falls and causes a transitory increase in the value of imports. Meanwhile the local-currency prices of exports of finished manufactures may be slower to rise. Correspondingly, the local-currency prices of a revaluing country's imports tend to fall more quickly than the volume of its imports rises. The other factor is the expectation of future changes in exchange rates. The speculative flows that are induced by such expectations show up not only in the form of short-term capital flows, but also in virtually every component of the balance of payments, as buyers and sellers of goods and services and of financial assets adjust the timing of their transactions. It is not possible to quantify the effects of this time-shifting on the basic accounts, but the effects in 1971, 1972, and 1973 have surely been substantial. Much of the recent variation in payments experience may be of limited long-run significance, in view of the sharp rises in agricultural prices, the transitory influences of exchange-rate changes, and the effects of expectations of rate changes. Nevertheless, evidence of the far-reaching economic adjustments that exchange-rate changes were intended to promote is beginning to emerge. This is apparent particularly in Japan and in the United Kingdom. Japan. Japan's basic balance decreased from a surplus of $0.7 billion in the first half of 1972 to a deficit of $4.2 billion in the first half of this year. This reflected a large and increasing net outflow of long-term capital, and even more significantly, a sharp drop in the trade surplus. From mid-1971 to early this year, the Japanese trade surplus 718 jaran IMPORTS A N D INDUSTRIAL PRODUCTION RATIO SCALE, 1965= FEDERAL RESERVE BULLETIN • OCTOBER 1973 fluctuated around an annual rate of about $9 billion, but the surplus fell to an annual rate of only $3% billion (seasonally adjusted) in the period March through August. This decline has resulted primarily from changes in the volume of trade measured in constant prices. Compared with an average annual rate of increase of 18 per cent from 1963 to 1971, the volume of exports rose only 7 per cent in 1972, and in the first 6 months of 1973 was about 9 per cent higher than a year earlier. A substantial part of the slowdown may be attributable to a loss of competitiveness in some markets following the revaluations of the yen. For example, Japanese exports to the United States have risen only slowly in dollar value terms this year, and in yen terms and in volume terms they may have actually fallen. On the other hand, Japanese exports to Western Europe—against whose currencies the Japanese yen appreciated relatively little—have expanded very fast. This shift in the geographic pattern of trade represents, to some extent, a response to the changes in relative profit opportunities implied by the exchange-rate realignment; but it may also reflect a conscious effort by Japanese exporters to limit market penetration in the United States, as they complied with the expressed desire of the 10 Japanese Government to reduce exports to this country. A further 6 and temporary element in the leveling of U.S. imports from Japan 140 may be a rundown of inventories of Japanese goods in this country i2o that had been built up at the end of 1972. The volume of imports has risen rapidly in recent months, but the total increase has been no greater than in previous upswings, apparently suggesting that Japan's recent import performance re100 fleets mainly cyclical forces. However, because about three-quarters of Japan's imports consist of foodstuffs and industrial materials, the sharp increase in imports of manufactured goods has been 120 obscured. The rise in the volume of imports of manufactured goods—which were about one-third higher in the first 4 months 100 of this year than in the same period last year—suggests that the _ appreciation of the yen, coupled with trade liberalization, is beginH I N G to have some effect. Japan's deficit on services and transfers remained unchanged at about $1.5 billion in the first half of both 1972 and 1973, as increases in income on investments—associated with rising interest rates—offset higher payments for travel and shipping. With the sharp drop in the trade surplus, the current-account surplus was reduced from $2.2 billion in the first half of 1972 to only $200 million in the first half of 1973. Net long-term capital outflows increased rapidly in the first half of this year, to $4.4 billion from $1.5 billion and $3.0 billion, respectively, in the first and second halves of 1972; some of the outflows were in response to official encouragement, and some 140 SOURCE: Bank of Japan. 719 BALANCE OF PAYMENTS ADJUSTMENT U N I T E D K I N G D O M : T E R M S OF reflected the unwinding of speculative positions, but the appreciation of the yen had an impact of a more enduring nature as well. United Kingdom. The other country whose statistics give some evidence of important economic adjustments is the United Kingdom, where exchange-rate policy has been directed toward improving the current-account balance. On the surface, the United Kingdom's current-account position has deteriorated since 1971. A large part of this deterioration has been associated, however, TRADE with the strong growth of the British economy and the sensitivity IJo of imports to growth in that country. The deterioration also reflects a sharp worsening of the terms 130 unit values are expressed SOURCE: U . K . Central of trade. In the period June-August 1973 import unit values 10 averaged 23 per cent higher than in the second half of 1972, 2 whereas export unit values averaged only 10 per cent higher. In 10 1 volume terms, imports were up 11 per cent in that period, but 100 exports were up 16 per cent. The fact that the volume of exports has recently been growing 90 so rapidly, in spite of the economic boom in the United Kingdom, — and the fact that export orders are high, suggests that there has in sterling. b e e n some impact from the downward float of sterling since r Statistical ° mid-1972. The British surplus on services and transfers has remained fairly steady at an annual rate of about 700 million pounds, although net British contributions to the budget of the European Communities (EC) have reduced the surplus slightly. With the sharp deterioration in the trade account, the current account has moved from a small surplus in 1972 to a deficit of more than 700 million pounds, or about $1.7 billion, in the first three quarters of this year. The current-account deficit was more than offset in the first half of 1973 by net inflows on investment and other capital accounts totaling nearly 700 million pounds, most of it in the second quarter. Overseas investment in the United Kingdom, including investment connected with North Sea oil and gas, was particularly strong. Foreign borrowing by the U.K. public sector, amounting to $847 AND MAJOR C O M P O N E N T S million in the first half of this year (and an additional $919 million feliLiflHS gp mm M R S AK from July to September), has constituted another major part of the total capital inflow. Germany. In contrast to Japan and the United Kingdom, there is relatively little evidence that over-all adjustment has taken place in Germany. The major development in the German balance of payments picture this year has been the unexpectedly huge surplus 2 SERVICES & TRANSFERS on the merchandise trade account—more than offsetting the in4 creasing deficit on services and transfers. The current-account V 6 surplus for the first 8 months of 1973 was 2.8 billion marks (or f • •HI '73 1971 1972 1970 over $1 billion) compared with a deficit of 1.9 billion marks in Seasonally adjusted data. SOURCE: German Federal Bank. the same period last year. Office. 720 GERMANY: SERVICES AND T R A N S F E R S ^ i M H S L T ! m T o f I L FEDERAL RESERVE BULLETIN • OCTOBER 1973 With exports rising 20 per cent in German mark value and with imports rising only 14 per cent, the German trade surplus in the first 8 months of this year was 19.0 billion marks, compared with 11.4 billion marks in the same period last year. The absence of severe capacity constraints in Germany may be one reason why the exchange-rate realignments have thus far failed to have the desired impact on German trade. Despite very rapid growth in real output in the latter part of 1972 and early this year, capacity utilization rates are below the peak levels reached in the previous cycle, suggesting that German exporters can continue to exploit such nonprice advantages as speedy deliveries and, by the same token, that German consumers and producers have not had to rely on foreign sources of supply. Speculative buying of German goods, in expectation of further mark revaluations, seems to have boosted German export sales and orders late last year and early this year. Moreover, the sharp increase in Germany's trade surplus with the Sino-Soviet countries accounted for almost one-fifth of the total increase in Germany's trade surplus—a development essentially unrelated to market forces. And it must also be recognized that the effective revaluation of the mark in some of Germany's European export markets has been quite small; although the incentive is still provided for consumers and producers in these markets to switch to lower-priced goods from devaluing countries, the absence of significant price changes for German goods may have increased the time-lag before the switch actually occurs. The deficit on services and transfers has been expanding very rapidly since the revaluation of the mark in 1969, and the trend appears to be continuing this year—though the increment to the deficit may be somewhat smaller than it was last year. The enormous rise in the deficit on services and transfers is in large part 2 attributable to rapid increases in German travel expenditures abroad 0 and in remittances of foreign workers. From 1968 to 1972 the deficit on services and transfers combined climbed 11.5 billion ™ d a i l a d T u s t m e n t e f o ; marks to 1 9 . 0 billion marks; of that increase, the net travel account in 1973 was made by d e f i c i t rose 5 . 5 billion marks, while foreign workers' remittances remittances F.R. staff. SOURCE: German Federal Bank. increased 4 . 5 billion marks. There have been net inflows of long-term capital to Germany this year, except for a largely seasonal outflow in January. In the first 6 months of this year, despite the existence of capital controls, the net inflow was 1.9 billion marks, of which more than 700 million marks came in June. This year's inflow, which is probably overstated in the sense that some part of those flows classified as long-term capital were surely speculative, is considerably smaller than the extraordinary inflow of almost 11 billion marks in the first half of 1972. In March of that year, German authorities introduced a deposit requirement on borrowing by residents from nonresidents, diverting capital inflows into heavy purchases of BALANCE OF PAYMENTS ADJUSTMENT 721 German long-term fixed-interest securities. Such purchases were greatly reduced after controls on such transactions were imposed at the end of June 1972. Canada. Canada's basic balance has turned from surplus in recent years to a small deficit in the first half of 1973, as net long-term capital inflows this year are running at only half last year's rate. However, the reduction in the long-term capital inflow reflects primarily transactions in securities, which have tended to fluctuate considerably. In contrast to the long-term capital account, the current account has improved this year. The deficit for the first half of 1973 was Canadian $500 million at a seasonally adjusted annual rate, down from Canadian $680 million in 1972. A higher deficit on services and transfers was more than offset by an increase in the surplus on merchandise trade. The increasing trade surplus in 1973 reflects steeply rising prices for primary commodities exported by Canada, as well as increasingly favorable cyclical factors. The rapid expansion of Canadian demand that began early in 1971, before foreign demand for Canadian exports had gained strength, caused the trade surplus to decline following the record surplus in 1970; but the strong demand this year in foreign countries has tended to improve the Canadian trade position. However, rapid increases in private investment expenditures in Canada have continued to push up imports. The appreciation of the Canadian dollar in 1970 seems to have had the effect of reducing the Canadian trade balance; however, subsequent appreciations of major foreign currencies other than the U.S. dollar are working to offset this effect. Other industrial countries. In the EC countries, other than in the United Kingdom, only in Italy and France has the basic balance moved from a surplus in 1971 to a sizable deficit. The Italian deficit would have been still larger in the absence of large-scale "compensatory" borrowing by the state-controlled institutions, undertaken to offset official reserve losses. For Italy the deterioration reflects primarily an increased trade deficit. Exports and imports have both been seriously affected throughout this period by strikes. In 1973, imports have soared because of the revival of economic activity and speculative purchases in anticipation of a depreciation of the lira. Recorded foreign exchange receipts from tourism and workers' remittances through domestic banking channels have been depressed, because the inconvertibility of illegally exported Italian banknotes since June 1972 has led to a discount market for banknotes outside the country. Accordingly, statistics for the current account do not pick up the improvement that has probably taken place in these categories. In France, the trade surplus has remained very strong, even though some industries—notably the aerospace industry—may be 722 FEDERAL RESERVE BULLETIN • OCTOBER 1973 suffering from the devaluation of the dollar, but the deficit on services and transfers has increased markedly since 1971. The surplus on tourism, which had been increasing up to 1971, has since leveled off and may have fallen this year. Net receipts from dividends and interest have been falling since 1970. The deficit on net transfers has increased sharply since 1970, reflecting in large part higher workers' remittances. A small surplus on long-term capital account in 1971 has been replaced by sizable and increasing net outflows beginning in 1972. The basic balances of Belgium and the Netherlands have changed relatively little since 1971 and have remained strong, in part because the United States—against whose currency these countries revalued theirs the most—is not a major trading partner. The strength of the basic balance—and especially of the current account—of the Netherlands enabled the Dutch Government to revalue the guilder by a further 5 per cent in September. This revaluation was an attempt to mitigate some of the upward price pressures in that country, which have been exacerbated by the successive revaluations of the German mark. Nonindustrial countries. The upsurge of commodity prices and of demand in industrial countries for the products of nonindustrial countries has greatly improved the trade position of the latter from the cyclical low of 1971. In 1972 the trade balance of the OECD countries with the less developed countries deteriorated by $2.75 billion and in 1973 so far by a further $2 billion (annual rate). It is virtually impossible to disentangle the effects of the exchangerate changes on the export proceeds of the less developed countries from those of the worldwide cyclical upswing. There is no doubt, however, that some of the increase in commodity prices is related to the exchange-rate realignment. A rough estimate might attribute about one-fourth of the rise since 1971 in commodity prices—expressed in dollars—to changes in exchange rates and three-fourths to the cyclical upswing and unusual supply conditions. Because of the very large increase in commodity prices, the terms of trade for a majority of the primary producing countries have swung in their favor despite the high inflation rates in industrial countries and the effective devaluation of the currencies of most of the nonindustrial countries. But the growing upswing in demand in the less developed countries has begun to cut into the improvement of their trade balances. Indeed, a significant part of the improvement in the U.S. trade balance since 1972 is with these countries. On the other hand, the trade balance of the European countries as a group with the less developed areas has continued to deteriorate, suggesting that cyclical factors combined with the exchange-rate changes have given the United States some competitive advantage in the nonindustrial world. BALANCE OF PAYMENTS ADJUSTMENT SUMMARY AND CONCLUSIONS 723 i n summary, what can be said about the extent to which exchangerate changes have been promoting fundamental shifts in the pattern of international payments in other countries as a counterpart to such shifts in the U.S. balance of payments? On trade account, significant shifts have occurred in the United Kingdom and in Japan. The United Kingdom has wanted to improve its current account and has allowed the pound to float downward relative to most major currencies. The volume of U.K. exports has been rising quite rapidly, while the volume of imports seems to be rising less than the pressure of demand in the United Kingdom would have otherwise implied. Japan, on the other hand, revalued its currency upward in order to promote a reduction in its export surplus. There has evidently been both a slowdown in the rate of increase of total Japanese exports in volume terms and a switch in the geographic pattern of Japanese exports from the United States to Western Europe. Imports of manufactured goods into Japan also seem to be responding recently to the change in relative costs. In Germany, where the currency appreciation has been greatest, there is relatively little evidence of basic adjustment. Statistics on services and transfers are less complete, but there are some indications of a response to the exchange-rate changes at least on the part of tourists. The number of foreign visitors to the United States has increased markedly this year, but shifts in the travel accounts of other countries are difficult to ascertain. On long-term capital account a very large increase in outflows from Japan has been recorded. Equally significant for the long-run future are the reports from several countries that considerable amounts of direct investment are being planned in the now relatively low-cost devaluing countries. If allowance is made for adjustment lags, the emerging evidence supports the view that adjustment is indeed taking place. This should become increasingly clear over time, so long as future economic developments do not undo the changes in relative costs resulting from the changes in exchange rates that have taken place over the past 2V2 years. • Changes in Time and Savings Deposits at Commercial Banks April-July 1973 According to the July 31, 1973, survey of time and savings deposits (STSD), 1 a large number of commercial banks increased the interest rates paid on time and savings deposits soon after the Board of Governors and the Federal Deposit Insurance Corporation (FDIC) raised ceiling rates on these deposits effective July 1. Prior to the change in regulatory ceilings, a substantial majority of banks had been paying the old ceiling rates on all categories of savings and consumer-type time deposits. By the end of July, 65 to 85 per cent of all insured banks—the percentage varied with the particular deposit category—had adjusted their rates upward to the new ceilings (Table 1). In addition, a significant number of banks indicated that they expected to raise rates on consumer-type deposits subsequent to the survey date—mainly to the new ceilings (Table 2). Average offering rates on large-denomination time deposits increased more than 2 percentage points between April and July, as banks bid competitively for additional funds in markets where short-term interest rates were rising sharply. Until mid-May, offering rates on CD's with maturities of 90 days and over had been constrained by Regulation Q ceilings; but following suspension of these ceilings in May, rates on these longer-term CD's quickly adjusted upward in line with other market rates. The structure of deposit flows at banks during the 3 months ending July 31 reflected continued N O T E . — M a r t h a Strayhorn S c a n l o n of the B o a r d ' s D i v i s i o n of R e s e a r c h and Statistics prepared this article. 1 P r e v i o u s s u r v e y s o f t i m e and s a v i n g s d e p o s i t s at all m e m b e r b a n k s w e r e c o n d u c t e d b y the B o a r d of G o v e r nors in late 1 9 6 5 , in early 1 9 6 6 , and quarterly b e g i n n i n g in 1 9 6 7 . B e g i n n i n g in 1 9 6 8 the s u r v e y s e x p a n d e d to p r o v i d e figures for all insured c o m m e r c i a l b a n k s and w e r e c o n d u c t e d jointly b y the B o a r d of G o v e r n o r s and the Federal D e p o s i t Insurance Corporation. T h e results of earlier s u r v e y s h a v e appeared in BULLETINS f o r 1 9 6 6 - 7 3 , the m o s t recent b e i n g July 1 9 7 3 , pp. 4 9 3 - 5 0 0 . TABLE 1 REGULATION Q CEILING CHANGES AND PERCENTAGE OF ISSUING BANKS PAYING NEW CEILING RATES ON SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS By bank size as of July 31, 1973 Regulation Q ceilings Percentage of issuing banks at new Q ceilings Old Total With total deposits of: Maturity Savings Time deposits in denominations of less than $100,000 maturing in: Less than 1 year 1l to 2 Yi years 2 /i to 4 years 1 New Less than $100 million $100-$500 million $500 million or more 4.5 5.0 64.1 64.2 64.5 54.7 5.0 5.5 6.0 6.5 66.2 66.0 85.8 65.9 65.6 86.0 72.3 74.5 85.9 69.3 73.5 80.1 (2) (2) 1 See Table 3 for number of issuing banks. 2 5.5 per cent for deposits of 1 to 2 years and 5.75 per cent for deposits of 2 years or more. MEMO.—A significant number of banks in the STSD sample expected to make rate changes to the new Q ceilings effective after the survey date. Their responses are summarized in Table 2 and are not included here. 724 TABLE 2 SAMPLE BANKS REPORTING CHANGES IN INTEREST RATES OFFERED ON VARIOUS CLASSES OF TIME AND SAVINGS DEPOSITS, IPC, TO BE EFFECTIVE AFTER THE SURVEY DATE, JULY 31, 1973 Number of banks in sample that reported changes Rates to be increased to Q ceiling 4 years or over denominations of $1,000 to $100,000 Federal Reserve district No. of banks responding Denomination less than $100,000 Savings Less than 1 year 1 to 2Vt years 2 Vi to 4 years New offering Increased rates Decreased rates 6 1 Member banks: Boston New York Philadelphia Cleveland 12 47 24 27 5 23 6 12 7 25 10 7 7 22 13 11 3 16 6 7 3 5 8 7 Richmond Atlanta Chicago St. Louis 17 32 53 12 14 2 20 6 7 18 23 5 8 16 27 5 6 14 17 3 3 6 8 3 3 1 1 Minneapolis Kansas City Dallas San Francisco... 21 7 11 21 12 5 2 4 14 4 5 11 14 3 7 11 6 2 2 9 3 1 1 5 1 1 Member total Nonmember total.. 284 124 111 81 136 92 144 99 91 78 53 15 6 11 1 Total reporting 408 192 228 243 169 68 6 12 pressure from high yields on competing money market instruments as well as the impact of the adjustments in the regulatory rate ceilings. On balance, total time and savings deposits of individuals, partnerships, and corporations (IPC) expanded at a slightly slower pace than in the January-April period, although faster than in the same period a year earlier. More than 80 per cent of the most recent growth was in negotiable and nonnegotiable certificates of deposit (CD's) in denominations of $100,000 or more, as investors found the high rates the banks were offering on these instruments relatively attractive. In contrast, passbook savings accounts expanded at the slowest rate since the fourth quarter of 1970—a period of restrictive monetary policy in which banks and other financial institutions experienced substantial outflows of these deposits. Small-denomination time deposits also grew at a slow pace between April and July. Deposits subject to the lowest ceiling rates (that is, with maturities of less than a year) actually experienced large outflows, but these outflows were offset by somewhat larger inflows into accounts with maturities of greater than a 3 year on which banks were allowed to pay higher rates. Even after ceilings were raised on savings and small-denomination time deposits, these rates remained below those that savers could earn on Treasury bills and other market securities. However, a new consumer deposit category was created when the Board of Governors and the FDIC suspended ceiling rates on deposits of $1,000 or more with a maturity of 4 years or more. Banks quickly began to issue these new 4-year deposits at advertised rates that varied from 6.5 to 9 per cent, with most banks offering between 7 and 7.5 per cent. As a result, a sizable volume of deposits was attracted into the new 4-year accounts; some of these inflows no doubt reflected shifts out of savings deposits and other short-term time deposits. More detailed information on the 4-year deposits will be given later. CHANGES IN RATE CEILINGS Subsequent to the April 30 survey, the Federal Reserve and the FDIC made two major changes in rate ceilings that affected not only the rate structure but also the deposit flows at insured 725 726 FEDERAL RESERVE BULLETIN • OCTOBER 1973 banks. The first change occurred on May 16 when the agencies suspended all ceiling limitations on rates that banks may pay on time deposits in denominations of $100,000 or more.2 Ceiling rates that had been in effect prior to the change had placed constraints on rates that banks could pay on large-denomination time deposits; ceilings on negotiable CD's with maturities of 30 to 89 days had been suspended in June 1970. The second change, effective July 1, increased the ceiling rates that insured commercial banks may pay on passbook savings deposits and on small-denomination time deposits; ceilings were suspended entirely on deposits in denominations of more than $1,000 but less than $100,000 with maturities of 4 years or more. In subsequent rulings, banks were required to limit issuance of such long-maturity instruments to an amount not exceeding 5 per cent of their total time and savings deposits. In coordinated actions, the FDIC and the Federal Home Loan Bank Board—which have regulatory authority over rates paid by mutual savings banks and savings and loan associations, respectively—announced similar changes in ceiling rates payable by these institutions. The new maximum permissible rates for insured commercial banks, together with the earlier ceilings, are shown on page A-10 of this B U L L E T I N ; Table 1 contains a summary of these rate changes. As a result of these regulatory changes, the STSD was modified to conform to the new 2 A t the s a m e t i m e f o r m e m b e r b a n k s a s u p p l e m e n t a r y r e s e r v e requirement o f 3 per c e n t w a s p l a c e d o n the a m o u n t b y w h i c h the s u m o f t i m e d e p o s i t s in d e n o m i nations of $ 1 0 0 , 0 0 0 or m o r e , f i n a n c e b i l l s , and f u n d s c h a n n e l e d f r o m bank affiliates e x c e e d e d the s u m o f t h e s e liabilities in the w e e k e n d e d M a y 16 (or $ 1 0 m i l l i o n , w h i c h e v e r is greater). [ O n S e p t e m b e r 2 0 , the s u p p l e m e n t a r y r e q u i r e m e n t w a s raised t o 6 per c e n t . ] maturity ranges for small-denomination deposits and to obtain information on the 4-year deposits not subject to ceiling restriction. Consequently, the maturity categories reported in the July STSD do not conform strictly to those of previous surveys. CONSUMER-TYPE TIME AND SAVINGS ACCOUNTS Following the July increase in the ceiling rate to 5 per cent, approximately 60 per cent of all insured commercial banks raised their passbook savings rate to this level as of July 31 (Table 3). However, a sizable number of banks— including many of the large ones—continued to pay a lower rate, apparently hoping to keep down interest costs on savings deposits, which often account for a large proportion of a bank's total deposits and which generally are held by less interest-sensitive depositors than other time deposits. Less than 50 per cent of the savings deposits at large banks (those with total deposits of $100 million and over) were yielding depositors the maximum rate on July 31, in comparison with almost 70 per cent at smaller banks (total deposits of less than $100 million). During the April-July period, large banks experienced a small net outflow of savings deposits, while small banks showed a slight increase. Accompanying the moderation in savings deposit growth, there was a large decline in small-denomination time deposits with maturities of less than 1 year. Although close to 70 per cent of the issuing banks were paying the new ceiling rate of 5.5 per cent on these deposits, savers still found this rate low relative to those on longer-maturity time deposits and market securities. The sharper decline in 1-year deposits was at large banks, whose depositors generally are relatively sensitive to competitive rates on other market securities. NOTE TO TABLE 3: NOTE.—The most common interest rate for each instrument refers to the basic stated rate per annum (before compounding) in effect on the survey date that was generating the largest dollar volume of deposit inflows. If the posted rates were unchanged during the 30-day period just preceding the survey date, the rate reported as the most common rate was the rate in effect on the largest dollar volume of deposit inflows during the 30-day period. If the rate changed during that period, the rate reported was the rate prevailing on the largest dollar volume of inflows from the time of the last rate change to the survey date. While rate ranges of Va or Vi of a percentage point are shown in this and other tables, the most common rate reported by most banks was the top rate in the range; for example, 4.00, 4.50, etc. Some deposit categories exclude a small amount of deposits outstanding in a relatively few banks that no longer issue these types of deposits and are not included in the number of issuing banks. Figures may not add to totals because of rounding. 727 CHANGES IN TIME AND SAVINGS DEPOSITS TABLE 3 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON APRIL 30 AND JULY 31,1973, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in millions of dollars) Less than 100 Group July 31 Apr. 30 100 and over July 31 July 31 Apr. 30 Apr. 30 Number of banks, or percentage distribution Savings deposits: Issuing banks Percentage distribution by most common rate paid on new deposits: Total 3.50 or less 3.51-4.00 4.01-4.50 4 51-5.00 Time deposits in denominations of less than $100,000: Maturities less than 1 year: Percentage distribution by most common rate paid on new deposits : Total 4.50 or less 4.51 5.00 5 01-5.50 Maturities of 1 up to 2Vi years: Issuing banks 13,554 13,508 12,833 12,788 722 720 123,034 122,936 48,443 47,789 74,592 75,147 100 100 100 100 100 100 100 100 1.8 11.9 23.8 62.5 2.4 14.3 83.3 1.3 9.8 32.6 56.3 1.5 12.9 85.6 1.5 7.5 22.9 68.1 1.6 12.4 86.0 1.2 11.2 39.0 48.6 1.4 13.2 85.4 13,044 12,446 12,316 723 13,170 728 43,154 46,633 21,067 21,984 22,088 24,649 100 100 100 100 100 100 100 100 100 100 100 100 .7 32.2 67.1 3.1 96.9 .8 32.5 66.7 3.1 96.9 .4 26.7 73.0 2.1 97.9 .2 27.4 72.4 2.0 98.0 .1 27.9 72.0 1.1 98.9 .2 26.9 72.9 2.9 97.1 13,152 n.a. 100 O). 0 2 49,068 n.a. 100 n.a. 100 n.a. > .8 o 11.1 88.1 n.a. n.a. n.a. 0) 1.1 12.8 86.1 n.a. n.a. n.a. 0) n.a. n.a. n.a. n.a. 9,425 n.a. 4,912 n.a. 4,512 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. 1.3 .6 13.4 84.6 n.a. n.a. n.a. .2 .5 29.9 69.4 n.a. H.8L n.a. 0) n.a. n.a. n.a. .4 .3 24.5 74.7 n.a. n.a. n.a. n.a. 559 n.a. 3,259 n.a. 1,340 n.a. 1,919 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. .5 1.8 3.2 56.8 32.1 5.3 .2 n.a. n.a. 1.1 3.6 6.3 50.4 34.0 3.6 1.1 n.a. n.a. .6 4.0 4.1 38.7 43.1 6.4 2.8 .2 n.a. n.a. 1.0 •i 7.5 39.4 39.9 10.9 .3 .4 n.a. n.a. .3 6.5 1.7 38.3 45.3 3.3 4.6 n.a. n.a. 715 n.a. 100 n.a. n.a. 7,552 n.a. 628 100 n.a. 100 n.a. .4 .6 13.2 85.8 n.a. n.a. n.a. .3 .6 13.1 85.9 n.a. A4L n.a. Maturities of 4 years and over (minimum denomination of $1,000): Issuing banks 5,299 n.a. 4,740 Percentage distribution by most common rate paid on new deposits: Total 100 n.a. .6 2.0 3.5 56.1 32.3 5.1 .3 0) n.a. n.a. Amount of deposits (in millions of dollars), or percentage distribution 100 n.a. n.a. n.a. F o r NOTE, s e e p. 7 2 6 . Apr. 31 4.0 16.9 79.1 n.a. i Less than .05 per cent, n.a. Not available. July 30 100 100 5.50 or less 5.51-6.00 6.01-6.75 6.76-7.00 7.01-7.50 7.51-8.00 8.01-8.50 8.51 or more Apr. 30 3.6 11.1 21.0 64.3 O) 2.0 18.0 80.0 5.00 or less 5.01-5.50 5.51-6.00 6.01-6.50 July 31 100 n.a. n.a. n.a. Percentage distribution by most common rate paid on new deposits : Total Apr. 30 3.9 16.8 79.3 n.a. Maturities of 2Vi years to 4 years: Issuing banks July 31 100 and over 100 n.a. 4.50 or less 4.51-5.00 5.01-5.50 5.51-6.00 Less than 100 3.5 11.1 21.1 64.2 12,437 Percentage distribution by most common rate paid on new deposits : Total Size of bank (total deposits in millions of dollars) All banks All banks 17.7 80.4 8,180 « 0) .7 12.5 86.7 n.a. n.a. n.a. (1 32,493 .7 34.8 64.5 n.a. 16,574 100 .3 7.6 92.1 n.a. n.a. FEDERAL RESERVE BULLETIN • OCTOBER 1973 728 TABLE 4 SMALL-DENOMINATION TIME DEPOSITS WITH ORIGINAL MATURITY OF 4 YEARS OR MORE WITH MINIMUM DEPOSITS OF $1,000: FREQUENCY DISTRIBUTION OF INTEREST RATES BEING PAID, AND AMOUNT OUTSTANDING All insured commercial banks by size as of July 31, 1973 Amounts in millions of dollars, not seasonally adjusted Total deposits (in millions of dollars) of banks Total Less than 100 100-500 500 or more Rate class (per cent) No. of banks Total banks Banks not issuing* 5.51 6.01 6.51 7.01 to to to to 6.00 6.50 7.00 7.25 7.26 7.51 8.01 8.51 8 76 to to to to to 7.50 8.00 8.50 8.75 9 00 Amount No. of banks Amount No. of banks Amount No. of banks Amount 13,889 8,590 5,299 3,272 13 3,259 13,165 8,425 4,740 1,340 546 126 420 754 1,340 754 178 39 139 1,177 13 1,164 31 105 106 3,053 536 20 132 122 1,273 366 25 85 77 2,766 461 13 8 9,263 536 117 4 14 21 214 55 3 68 26 265 83 2 6 8 73 21 3 56 4 472 166 1,176 272 17 1,039 208 3,592 1,062 251 11 418 145 4 89 18 5 185 55 69 25 2 436 8 19 6 2 MEMO: Average issuing rate (per cent) 2 7.208 1 5 7.233 7.211 7.179 * Includes those banks that are no longer issuing. In contrast, consumer-type time deposits with maturities of greater than a year increased by more than $5.1 billion during the 3-month survey period. Apparently a large proportion of this increase stemmed from growth in the new 4year deposits and may have reflected shifts out of lower-yielding passbook and time deposits. As of July 31, 38 per cent of all insured banks were offering the new 4-year certificates and had outstanding deposits in an amount slightly less than $3.3 billion (Table 4). On the basis of data from a sample of large banks, it has been estimated that approximately $600 million in 4-year time deposits were outstanding at all insured banks prior to the July 1 change in Regulation Q ceiling rates. This suggests that during the month of July banks issued about $2.6 billion of the new 4-year certificates, which accounted for more than 50 per cent of the total increase in consumer-type time deposits with maturities greater than a year during the AprilJuly survey period. The average of the most common rates offered on these deposits was 7.2 per cent, with small banks offering a slightly higher rate on average than the large banks. LARGE-DENOMINATION TIME DEPOSITS Outstanding large negotiable CD's continued to expand rapidly—by 19 per cent—between April and July, following a record increase in the previous 3-month period. In the 6 months after January 31, the volume of outstanding CD's (IPC) increased by $15.5 billion, which accounted for over half of the increase in total IPC time and savings deposits during that period. Almost all the increase in outstanding CD's occurred at the large banks, which—in an environment of unusually strong loan demand—were aggressive bidders for these funds. Accompanying rapidly rising rates on Treasury securities and other money market instruments during the survey period, these larger institutions increased offering rates on the majority of their certificates to levels above 9 per cent, considerably higher than the 6 per cent rate prevalent at the end of April. Smaller banks have been much less aggressive in the CD market—paying rates considerably less than those of the larger institutions. CHANGES IN TIME AND SAVINGS DEPOSITS 729 Rates offered on large CD's by banks with total deposits under $100 million in July averaged 7.5 per cent compared with 9.3 per cent for larger banks. Large-denomination time deposits other than negotiable CD's also expanded at a rapid pace in the most recent survey period as the average offering rate on these instruments increased from 6.4 per cent to 8.4 per cent. As with negotiable CD's, large banks paid higher rates on, and experienced a much larger increase in, these deposits than did the smaller institutions. TABLE 5 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JULY 31, 1973 Time deposits in denominations of— Less than $100,000 All time and Bank location and size of bank (total deposits in millions of dollars) savings deposits Savings and small denom- Savings ination time deposits $100,000 or more Maturing in— Total Less than 1 year 4 years or more 1 up to 2Vt years | (in de2Vi years up to nomina4 years tions of less than $1,000) 4 years Negoor more tiable (in deCD's nominations of $1,000 or | more) Nonnegotiable CD's and open accounts All banks: All size groups Less than 10 10-50 50-100 100-500 500 and over 6.1 5.4 5.5 5.5 5.7 6.8 5.2 5.3 5.3 5.2 5.1 5.1 4.7 4.6 4.8 4.8 4.7 4.7 5.8 5.7 5.8 5.8 5.7 5.8 5.4 5.3 5.4 5.4 5.4 5.4 5.9 5.8 5.9 5.9 5.9 5.9 6.3 6.2 6.2 6.4 6.2 6.4 6.2 6.5 6.1 6.2 5.8 6.2 7.2 7.3 7.2 7.2 7.2 7.2 9.1 6.9 7.5 7.6 8.4 9.4 8.4 7.4 7.4 7.3 8.1 8.8 Banks in— Selected large SMSA's 1 All size groups Less than 10 10-50 50-100 100-500 500 and over 6.4 5.3 5.4 5.4 5.8 6.8 5.1 5.2 5.2 5.2 5.1 5.1 4.7 4.7 4.8 4.8 4.7 4.7 5.8 5.7 5.8 5.8 5.7 5.8 5.4 5.3 5.4 5.4 5.3 5.4 5.9 5.8 5.9 5.9 5.9 5.9 6.3 6.0 6.4 6.4 6.2 6.4 6.2 5.4 5.8 6.2 5.9 6.2 7.2 7.9 7.2 7.3 7.2 7.2 9.3 6.9 7.7 7.4 8.5 9.4 8.6 8.0 7.3 7.1 8.1 All other SMSA's: All size groups Less than 10 10-50 50-100 100-500 500 and over 5.6 5.0 5.4 5.5 5.6 6.0 5.1 4.9 5.3 5.2 5.1 4.9 4.6 5.7 5.7 5.8 5.8 5.7 5.7 5.4 5.2 5.3 5.4 5.3 5.9 5.8 5.9 5.9 5.9 5.8 6.2 5.9 6.3 6.4 6.3 6.2 6.5 6.5 5.1 6.5 6.4 6.5 7.3 7.2 7.3 7.4 7.2 7.2 8.5 6.8 7.7 8.1 8.1 9.1 8.0 7.5 7.5 8.0 8.0 8.5 Banks outside SMSA's: All size groups Less than 10 10-50 50-100 100-500 500 and over 5.5 5.4 5.5 5.4 5.5 6.0 5.4 5.4 5.4 5.2 5.2 5.4 4.8 4.7 4.8 4.8 4.7 5.0 5.8 5.7 5.8 5.7 5.7 5.8 5.4 5.3 5.4 5.3 5.3 5.5 5.9 5.8 5.9 5.9 5.9 6.0 6.2 5.8 6.5 6.3 5.7 5.1 6.0 7.2 7.2 7.3 6.9 7.4 7.0 7.4 7.0 7.1 7.9 8.0 7.5 7.6 7.0 7.5 6.8 7.8 9.8 6.3 6.2 6.4 6.2 6.5 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of population in the 1970 Census, are as follows: New York City Los Angeles-Long Beach Chicago Philadelphia Detroit San Francisco-Oakland Washington, D . C. Boston Pittsburgh St. Louis Baltimore Cleveland Houston Newark Minneapolis-St. Paul Seattle-Everett Milwaukee Atlanta Cincinnati Paterson-Clifton-Passaic Dallas Buffalo San Diego Miami Kansas City Denver San Beraadino-Riverside Indianapolis San Jose New Orleans Tampa-St. Petersburg Portland Phoenix Columbus Rochester San Antonio Dayton Louisville Sacramento Memphis Ft. Worth Birmingham Albany-Schenectady-Troy Akron Hartford Norfolk-Portsmouth Syracuse Gary-Hammond-E. Chicago Oklahoma City Honolulu Ft. Lauderdale-Hollywood Jersey City Salt Lake City Omaha Nashville-Davidson Youngstown-Warren Richmond Jacksonville Flint Tulsa Orlando Charlotte Wichita West Palm Beach Des Moines Ft. Wayne Baton Rouge Rockford Jackson, Miss. 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. Christmas savings and other special funds, for which no rate information was collected, were excluded. For Table 6 see page 730. 730 FEDERAL RESERVE BULLETIN • OCTOBER 1973 TABLE 6 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, OCT. 1972—JULY 1973 Number of issuing banks 1973 1972 Type of deposit Amount (in millions of dollars) 1972 Percentage change in deposits (quarterly rate) 1973 Oct. 31 Time deposits in doniminations of less than $100,000—total Accounts with original maturity nf OI Less than 1 year 1 1 up to 2Vi years 2% up to 4 years 11 4 years and over: In denominations of less than $1,000 In denominations of $1,000 or more All maturities: Open accounts— Passbook 2 or form statement Time deposits in denominations of $100,000 or more Negotiable CD's Nonnegotiable CD's and open account Christmas savings special funds and other July 31 13,589 13,813 13,847 268,734 275,611 291,216 305,031 5.7 4.7 13,175 Savings Apr. 30 13,567 Total time and savings deposits Jan. 31 13,252 13,508 13,554 119,686 121,453 122,936 123,034 1.2 .1 13,392 13,396 13,571 13,626 96,636 105,611 3.7 1.6 12,643 n.a. n.a. 12,798 n.a. p.a. 13,044 n.a. n.a. 13,170 13,152 8,180 46,091 n.a. n.a. 46,693 n.a. n.a. 46,633 n.a, n.a. 43,154 49,068 9,425 -.1 -7.5 n.a. n.a. n.a. 339 n.a. n.a. n.a. 692 6.9 9.0 n.a. n.a. n.a. 5,300 n.a. n.a. n.a. 3,272 3,384 3,518 3,626 3,821 27,410 28,637 29,065 30,290 1.5 4.2 6,255 3,195 6,131 3,098 6,275 3,226 6,708 3,336 46,009 33,330 48,206 35,065 58,212 42,511 69,809 50,618 20.8 21.2 19.9 19.1 3,725 3,690 3,738 3,869 12,679 13,141 15,701 19,191 19.5 22.2 7,969 8,257 8,606 8,771 6,403 5,672 6,124 6,584 8.0 7.5 n.a. Not available. 1 Maturity categories were changed to conform with the change in Regulation Q that went into effect July 1, 1973. 2 Includes time deposits, open account, issued in passbook, statement, or other forms that are direct alternatives for regular savings accounts. Most of these are believed to be in accounts totaling less than $100,000. The figures shown on this line are included above in the appropriate maturity category. NOTE.—Data were compiled jointly by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Oct. 31 Jan. 31 Apr. 30 100,280 103,944 July 31 Jan 31Apr. 30Apr. 30, 1973 July 31, 1973 Corporation. For Jan. 31, Apr. 30, and July 31, 1973, the information was reported by a probability sample of all insured commercial banks; for Oct. 31, 1972, the data for member banks were reported by virtually all such banks and for insured nonmember banks by the same sample of these banks reporting in earlier surveys. Some deposit categories include a small amount of deposits outstanding in a relatively few banks that no longer issue these types of deposits and are not included in the number of issuing banks. Dollar amounts may not add to totals because of rounding. New Series for Large Manufacturing Corporations The Board of Governors is resuming its quarterly reporting on sales, profits, and dividends of large manufacturing corporations, a series that was discontinued in 1970. The new series, which differs from its predecessor both conceptually and in the income items presented, will be published quarterly in the Board's statistical release "Sales, Revenue, Profits, and Dividends of Large Manufacturing Corporations" and in the statistical section of the B U L L E T I N . The new series includes three-fourths of the 200 largest manufacturers in the United States. Included are all public manufacturing corporations with sales of $700 million or more for which a consistent set of data could be constructed. A few companies with sales from $500 million to $700 million are included in order to obtain increased representation in a particular industry. The 170 companies in the new series account for about 45 per cent of the sales, 60 per cent of the profits, and 50 per cent of the assets of the more than 200,000 manufacturing corporations in this country. However, since sales volume was one of the criteria used in selecting the companies, and sales volume is so much more concentrated in some industries than in others, the series provides greater coverage for those industries. For example, companies in the motor vehicle and petroleum groups account for more than 90 per cent of total sales and profits in these industries. In contrast, some other industries, particularly textiles, paper, and building materials, have rather limited representation. In order to avoid discontinuities, companies are classified for the entire period N O T E . — T h i s series w a s d e v e l o p e d b y E u g e n i e M a l l i n s o n and Margaret H . P i c k e r i n g . Quarterly data for 1 9 6 9 and 1 9 7 0 , technical n o t e s , and a listing of the c o m p a n i e s i n c l u d e d in the series are a v a i l a b l e u p o n request f r o m Capital M a r k e t s S e c t i o n , D i v i s i o n of R e s e a r c h and Statistics, B o a r d o f G o v e r n o r s of the Federal R e s e r v e S y s t e m , W a s h i n g t o n , D.C. 20551. according to their current industrial grouping, as determined by the Securities and Exchange Commission. Data are compiled from reports made by companies to their stockholders and to the Securities and Exchange Commission. Because of wide variations in the information found in these public reports, definitions of items in the series are fairly broad. Data for the individual companies reflect the basis of consolidation used by each company, and they include foreign as well as domestic operations. The new series is similar in many respects to the earlier series for 177 corporations, which was suspended when consistent data for an appreciable number of the companies could no longer be compiled because of changes in corporate structures and accounting procedures.1 Two-thirds of the companies in the earlier series are also included in the new series, and industry coverage—while somewhat higher now—is substantially comparable. Earnings data have similarly been adjusted to obtain inter-company comparability by eliminating the effect of (1) all charges and credits that affect surplus and reserves rather than income, (2) tax credits, and (3) other items not primarily related to the current reporting period. Unlike the previous series—which attempted to cover only manufacturing operations—the new series covers revenues and income from all sources including manufacturing and nonmanufacturing operations, equity in earnings of nonconsolidated subsidiaries, and investment and other nonoperating income. The new item on total revenue provides a means for measuring the growing diversification of these large companies. Income taxes also differ in that now they include State and local government and foreign taxes in addition to Federal income taxes. The other new item added to the series is x T h e p r e v i o u s series w a s last p u b l i s h e d in the June 1972 BULLETIN, p. A-50. 731 732 FEDERAL RESERVE BULLETIN • OCTOBER 1973 after-tax profits as reported by the individual companies. Inasmuch as tabulations of such data are widely available in the financial press and are thus available for prompt analysis, it has been decided to include a similar series here for comparison with the adjusted after-tax profits series. It should be noted, however, that the unadjusted data are likely to give a misleading impression of short-term trends in earnings. For example, the significant drop in unadjusted profits for machinery companies in the third quarter of 1971 and the absolute decline in unadjusted profits for metal manufacturers in the fourth quarter of 1971 (shown in the accompanying table) are in each case attributable to a write-off of discontinued operations by a single company. Although, because of definitional differences, it is difficult to make a direct comparison of these new data with such universe estimates of sales and profits as those in the national-income accounts or the Federal Trade Commission's Quarterly Financial Report, some broad conclusions can be drawn: According to the new data, the performance of large manufacturing companies has been slightly but consistently better than that of the manufacturing sector as a whole. Sales of the large companies increased at an average annual rate of 7.5 per cent over the period 1969-72; comparable figures for all domestic nonfinancial corporations (national-income basis) and for the manufacturing component thereof were 7 and 6.5 per cent, respectively. Before-tax profits of these large manufacturers also grew at a 7.5 per cent rate as compared with 4.3 and 5.2 per cent for all nonfinancial and manufacturing, respectively. Profit margins too were higher for these large companies—10.7 per cent, or more than twice the margins for all companies. Part of these differences reflect the treatment of foreign earnings. For example, the data for large companies include such earnings, whereas the national-income aggregate excludes them. Since the repatriated earnings from the rest of the world have become substantial in recent years, this definitional difference can explain a portion of both the lower margin and the differential rates of the growth in earnings for the national-income series. On the other hand, the FTC data include foreign earnings; but even so, this series exhibits slower growth rates and smaller profit margins than the new Federal Reserve series. This would suggest that company size and type of industry are also influential factors whose interaction can be studied with these new data; such studies are not possible with the FTC series, however, because those data are not cross-classified by size and industry group. NEW SERIES FOR LARGE MANUFACTURING CORPORATIONS 733 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1971 Industry 1969 1970 1971 1972 1972 III IV 1973 III IV Total (170 corps.): Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj. 1 Dividends 299,533 305,370 334,957 371,946 303,257 309,532 339,134 376,604 41,164 34,311 29,266 35,771 18,830 16,556 19,146 21,753 18,335 16,436 18,020 21,233 10,538 9,962 10,024 10,104 85,857 86,979 9,443 5,081 4,987 2,504 80,916 82,017 7,893 4,293 3,950 2,509 87,214 88,317 9,709 5,031 4,373 2,581 88,349 89,452 9,715 5,212 5,162 2,538 93,853 95,271 10,467 5,674 5,687 2,598 89,550 100,194 102,457 90,803 101,078 103,912 12,003 8,978 12,643 5,931 4,936 6,763 5,894 4,490 6,739 2,877 2,525 2,670 Nondurable goods industries (86 corps.): 2 Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj. 1 Dividends 138,621 140,837 17,404 10,223 9,529 5,386 147,808 150,312 16,935 9,649 9,591 5,560 160,973 176,329 163,448 178,915 19,900 21,799 10,490 11,154 10,085 10,859 5,664 5,780 40,120 40,828 4,836 2,574 2,513 1,399 40,188 40,928 4,940 2,672 2,625 1,417 41,887 42,382 5,438 2,672 2,409 1,442 42,254 42,930 5,043 2,673 2,625 1,447 43,395 44,273 4,998 2,682 2,625 1,430 43,865 44,689 5,278 2,852 2,574 1,427 46,815 47,023 6,479 2,946 3,035 1,476 47,252 48,245 6,471 3,398 3,348 1,513 Durable goods industries (84 corps.): 3 Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj. 1 Dividends 160,912 162,420 16,907 8,607 8,806 4,577 157,562 159,220 12,332 6,908 6,845 4,464 173,985 175,686 15,871 8,656 7,935 4,440 195,618 197,690 19,365 10,599 10,374 4,758 45,737 46,151 4,607 2,506 2,475 1,105 40,727 41,090 2,953 1,621 1,325 1,092 45,327 45,935 4,271 2,359 1,964 1,139 46,095 46,522 4,673 2,539 2,537 1,091 50,458 50,999 5,469 2,992 3,062 1,168 45,685 46,115 3,697 2,083 1,916 1,097 53,379 54,055 5,524 2,984 2,859 1,401 55,205 55,667 6,172 3,365 3,392 1,157 28,962 29,341 2,845 1,364 1,266 764 31,966 32,393 3,122 1,571 1,540 812 34,584 35,090 3,372 1,714 1,644 862 37,624 38,091 3,573 1,845 1,805 893 8,617 8,758 846 426 423 215 8,717 8,831 898 453 448 216 9,073 9,206 863 446 386 218 8,824 8,941 794 414 408 221 9,229 9,371 880 454 452 222 9,531 9,665 940 486 492 223 10,039 10,115 960 490 452 227 9,847 9,996 890 470 453 237 Chemical and allied prod. (22 corps.) : Sales Total Profits before taxes Profits after taxes Memo: PAT unadj. 1 Dividends 29,961 30,308 4,123 2,180 2,206 1,262 31,086 31,490 3,863 2,111 2,137 1,298 33,005 33,388 4,123 2,290 2,167 1,332 36,638 37,053 4,853 2,672 2,671 1,395 8,345 8,424 1,027 574 560 331 8,344 8,423 1,060 580 573 336 8,432 8,574 1,031 586 494 342 8,779 8,868 1,172 652 649 337 9,167 9,265 1,184 667 626 341 9,099 9,196 1,216 683 684 340 9,593 9,723 1,280 669 712 378 10,153 10,519 1,487 838 834 371 Petroleum refining (15 corps.): Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj. 1 Dividends 56,411 57,770 8,490 5,630 4,987 2,836 61,360 62,826 8,509 5,158 5,131 2,917 68,534 69,903 10,835 5,624 5,519 2,952 74,662 76,133 11,461 5,562 5,325 2,992 16,907 17,351 2,556 1,351 1,325 723 16,805 17,291 2,590 1,421 1,396 734 18,007 18,154 3,138 1,418 1,390 755 18,269 18,695 2,684 1,384 1,356 763 18,169 18,756 2,433 1,270 1,273 742 18,298 18,837 2,628 1,398 1,119 741 19,925 19,845 3,717 1,509 1,578 746 19,924 20,339 3,514 1,760 1,737 777 Primary metals and prod. (23 corps.): Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj. i Dividends 30,460 30,928 2,721 1,544 1,731 890 30,769 31,288 2,072 1,316 1,371 913 31,441 31,808 1,517 969 561 739 34,359 34,797 1,969 1,195 1,109 653 9,275 9,365 749 441 441 197 144 232 52 50 41 180 7,335 7,445 254 189 -213 162 7,848 7,931 386 247 260 162 8,886 8,984 581 372 465 161 8,525 8,629 413 274 128 162 9,099 9,253 589 302 256 168 9,646 9,746 618 383 397 198 Machinery (27 corps.): Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj. i Dividends 44,858 45,314 5,281 2,593 2,596 1,165 46,486 47,028 4,885 2,566 2,477 1,327 49,206 49,846 5,277 2,884 2,560 1,450 55,615 56,348 6,358 3,522 3,388 1,497 12,200 12,368 1,296 715 691 364 12,170 12,317 1,290 702 435 364 13,368 13,561 1,453 806 786 366 12,939 13,102 1,416 781 774 373 13,796 13,993 1,550 854 848 374 13,862 14,050 1,583 870 865 375 15,018 15,203 1,810 1,017 902 375 14,828 14,997 1,705 933 931 402 Motor vehicles and equipment (9 corps.): Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj.i Dividends 53,996 54,248 5,315 2,644 2,638 1,750 48,905 49,108 2,153 1,306 1,301 1,434 61,481 61,804 5,648 2,948 2,952 1,433 70,653 71,139 6,955 3,626 3,640 1,762 16,096 16,156 1,688 875 870 356 13,621 13,670 <j96 385 381 359 16,109 16,308 1,598 831 849 359 17,273 17,353 2,017 1,037 1,034 359 18,953 19,105 2,290 1,186 1,178 439 14,703 14,735 628 343 337 365 19,725 19,946 2,019 1,060 1,091 599 21,616 21,710 2,716 1,405 1,429 365 Selected industries: Food and kindred prod. (28 corps.): Sales Total revenue Profits before taxes Profits after taxes Memo: PAT unadj.* Dividends 1 Profits after taxes (PAT) as reported by the individual companies. In contrast to other profits data in the series, these figures reflect company variations in accounting treatment of special charges and credits. 2 Includes 21 corporations in groups not shown separately. 3 Includes 25 corporations in groups not shown separately. NOTE—Data are obtained from published reports of companies and reports made to the Securities and Exchange Commission. Sales are net of returns, allowances, and discounts, and exclude excise taxes paid directly by the company. Total revenue data include, in addition to sales, income from nonmanufacturing operations and nonoperating income. Profits are before dividend payments and have been adjusted to exclude special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes (not shown) include Federal, State and local government, and foreign. Previous series last published in June 1972 BULLETIN, p. A-50. Statement to Congress Statement by George W. Mitchell, Vice Chairman, Board of Governors of the Federal Reserve System, before the Committee on Banking and Currency, House of Representatives, October 3, 1973. Mr. Chairman and members of the committee, 1 welcome the opportunity you have afforded me to discuss H.R. 10265, a bill that would amend the Federal Reserve Act in various respects. Section 1 of the bill would authorize the General Accounting Office (GAO) to conduct an annual audit of the Board of Governors, the Federal Reserve Banks, and their branches. In so doing the Comptroller General would be accorded access to such records, including reports of examinations of member banks, as he finds necessary for the conduct of the audits. The Comptroller General would be required to submit a report of each audit to Congress. Section 2 of the bill would extend the authority of the Reserve Banks to purchase obligations of the United States directly from the Treasury. The Banks are currently permitted to purchase up to $5 billion of U.S. Government obligations in this manner, but this authority expires on October 31. Section 3 of the bill would raise by $60 million the ceiling on expenditures that the Federal Reserve System may undertake for the construction and renovation of branch bank buildings. The Board supports the objectives of Sections 2 and 3; I shall comment on these provisions briefly at the end of my statement. As we understand Section 1, the Comptroller General would be granted broad authority to look into the financial and operational aspects of the Federal Reserve System. The GAO would be unrestricted in the conduct of the audit, and would thus have the authority to review and evaluate all aspects of Federal Reserve activities. 734 The Board of Governors over the years has consistently opposed such proposals. It is understandable that some members of Congress and the public have wondered at this since the GAO enjoys a well-deserved reputation for competence and integrity. I submit to you today, however, that we perceive serious problems with this proposal. Our objections stem from a basic concern about the optimal functioning of the Nation's money and banking system. With your permission I would like to briefly sketch in the background on this subject. Congress created the GAO in 1921—8 years after passing the Federal Reserve Act—to provide the legislative branch with audit authority over the receipt, disbursement, and application of public funds. For the next 12 years, the Board of Governors, but not the Federal Reserve Banks and branches, came under the GAO's scrutiny. During this time the accounts of the Board were carefully checked by GAO. In 1933, however, Congress deliberately voted to remove the Board from the jurisdiction of the GAO. The purpose, as described in the report of the Senate Banking and Currency Committee, was to "leave to the Board the determination of its own internal management policies." This action, we believe, resulted from a judgment that noninterference with the internal management of the Federal Reserve would in the long run provide better monetary and credit policies. Naturally, the audit function did not cease with the termination of the GAO's annual audits of the Board. For some years audit teams from nearby Federal Reserve Banks performed the audit of the Board's books, but in 1952 the Board, using the discretion Congress provided, voted to hire nationally recognized public accounting firms to perform this function in order to assure an independent oversight of the Board's administrative activities. This arrangement has continued to this day. Meanwhile, year in and year out the Board's own examiners scrutinized the Federal Reserve Banks. In recent years their techniques have been reviewed by outside accountants. Before describing our present audit procedures in detail, I should like to refer to the types of audit work that we understand GAO conducts. I should add that, although the distinctions may seem to be clear from a conceptual standpoint, they tend to overlap in practice. The audit of narrowest scope is termed by the GAO as an audit of financial operations and legal compliance. This is an audit of financial transactions, accounts, and reports, and of compliance with applicable laws and regulations. A second category of audit relates to efficiency of operation. Policies, procedures, and transactions are examined to evaluate how well the agency carries out its programs and activities and how well it uses its financial, property, and personnel resources. The third category of audit deals broadly with program results—the extent to which desired results or benefits are being achieved and whether the objectives established by Congress are being met. For its part, the Federal Reserve System has developed formal audit and examination procedures that are extremely thorough. The accounts of the Board of Governors are audited each year by a competent outside accounting firm of certified public accountants. Each accounting firm performs audits for five successive years and is then replaced by another topflight firm. Last year the audit was conducted by Touche Ross & Co.; the preceding year it had been conducted by Lybrand, Ross Bros. & Montgomery, thus ending a 5-year cycle. The audit report is reproduced in the Board's Annual Report, and copies of the report are furnished to this committee and to the Senate Committee on Banking, Housing and Urban Affairs. Each Federal Reserve Bank and branch is examined at least once each year by the Board's staff of field examiners. The examination includes a comprehensive review of each Bank's expenditures to determine if they are properly controlled and of a nature appropriate for a Reserve Bank. The outside accounting firm retained to audit the Board is engaged to accom- pany the Board's examiners in their examination of one of the Reserve Banks each year. This provides an external evaluation of the adequacy and effectiveness of the examination procedures. In addition to the annual examination by the Board's examiners, the operations of each Reserve Bank are audited by the Bank's internal auditing staff on a year-round basis under the direction of a resident general auditor. He is responsible to the Bank's board of directors, through its chairman and its audit committee, and his selection is approved by the Board of Governors. He is thus independent of the Bank's operating management. Each year the Board's examiners review thoroughly the resident audit programs at all the Reserve Banks to see that the coverage is adequate and the procedures effective. Thus the auditing controls set up by the Federal Reserve begin with on-site auditors— independent of management—who review daily operations, security procedures, and conformance with System standards. Their constant presence provides continuous auditing and timely action. The follow-up of the on-site activity is made by the Board's examiners in their examinations of the Reserve Banks. These examinations are backed up by an "over-the-shoulder" inspection by the outside auditors of the work of the Board's examiners in examining a typical Reserve Bank. This is to add current expertise over a broad range of accounting problems and auditing developments to that of the Board's examiners. The system taken all together is thoroughly adequate and may even seem redundant. If one were to review audit findings and recommendations over the years, I doubt if he could come to any other conclusion. Over the years most of the potential problems have been dealt with by resident auditors, and at no time in history has the internal auditing program of the Reserve Banks been stronger than it is today. But thoroughness is necessary because the Federal Reserve Banks deal in the most fungible of all commodities—money—and in astronomical quantities. The Reserve Banks handle an annual flow of coin and currency of 27.8 735 736 billion pieces, having a value of $53.2 billion. The checks passing through the System each year on their way to becoming someone else's money total 9.8 billion items and $3.7 trillion. The wire transfers are limited in number—only 11 million were handled last year—but they moved $17 trillion. To perform these functions with a minimum loss or defalcation requires a comprehensive control and audit system. No system is perfect, but ours has worked well, as the record shows. In recent years, the term "audit" has been broadened, as the GAO concepts indicate, to include a variety of objectives and techniques. I think it is clear from the description of Federal Reserve audit activities that I have given thus far that I have focused on what is generally called an audit of financial transactions. Such an audit of the Federal Reserve Banks covers: (a) the system of recordkeeping and accounting control over money, checks, and securities coming into and going out of the Reserve Banks, as well as their expenses, earnings, assets, and liabilities; (b) the compliance with basic standards—in this case Federal law, and regulations and directives of the Board of Governors; and (c) the availability of periodic reports summarizing the financial data in a manner that reveals the volume of work, relevant costs, and the net earnings (or losses) from operations. I have spoken in detail about items (a) and (b) but have given little attention to (c). The reason is that our release of data about Federal Reserve operations on a daily, weekly, monthly, quarterly, annual, and ad hoc basis is enormous. Frequently, as you know, members of the Board testify fully at congressional hearings on the policies and activities of the Federal Reserve System. The Board reports promptly and fully to special congressional inquiries—particularly inquiries by congressional committees involving the System's operations, policies, and expenditures. Over the years, however, the System's audits have evolved considerably beyond the basic audit of financial transactions that I have described. The System now has in place the capacity to conduct reviews of management and of operational efficiency. In some Banks the FEDERAL RESERVE BULLETIN • OCTOBER 1973 independent auditor performs this function; in other cases it is handled by a separate division under the Reserve Bank President. In either event, Reserve Bank operations are exposed to a continuous review and evaluation- by an extradepartmental unit. Again paralleling the external arrangements for audits of financial transactions, the Board has a Division of Federal Reserve Bank Operations that reviews the management and operational efficiency of the various facets of Reserve Bank operations. Many of these audits are a vehicle for sharing valuable experience among Federal Reserve Banks on such matters as check or money handling equipment and procedures. System committees of technicians provide still another arrangement for reaching the results sought by an audit of operations. These committees have provided much of the leadership and know-how for developing many innovations in various operations pertaining to securities handling (book entry), currency sorting, and check and wire transfers. Finally, some of the Reserve Banks have used the services of private consulting firms to review the adequacy and efficiency of their operations. Such external reviews have been productive in evaluating the kinds of operations to which the consultant brings a special expertise. However, we have not found them to be very helpful when addressed to operations that are essentially unique to the Federal Reserve. Stating our position at the cost-benefit level, the results from internal audits of operations have been much more productive than external audits. This seems to be due to the fact that a large sector of Federal Reserve Bank operations has a limited counterpart in public or private institutions, either in character or scale. As a result, "outside" experts do not get much beyond the learning stage in their audits of these operations. If the audit proposed in Section 1 were to be confined to an audit of financial operations and legal compliance, some—but not all—of the Board's traditional objections would be removed. However, the Board is convinced that its present audit arrangements are more than adequate. A GAO audit limited to financial transactions and legal compliance would be a STATEMENT TO CONGRESS duplication of the audit now performed by an outside public accounting firm for the Board and by the Board itself for the Reserve Banks. In a sense Congress has designated the Board of Governors as its " G A O " for purposes of reviewing the operations of the Reserve Banks. The Board reports directly to Congress and always stands ready to provide any information Congress seeks about expenditures by the System. If still another arm of Congress were directed to audit the Reserve Banks, this would, at a minimum, diffuse audit responsibility, and would have a low benefit yield in relationship to the cost. In any event, there are some critical informational constraints that should be imposed. They include exemption of examination reports of member banks, certain transactions conducted with and on behalf of foreign central banks, and sensitive information about open market and discount operations. (Much of the information in the latter two categories becomes available with a lag.) A high degree of confidentiality in these areas is essential for the conduct of Federal Reserve functions; granting GAO access to these records could pose problems in assuring this confidentiality. If the audit were to go beyond a basic financial audit, and GAO typically does so in the course of its ordinary audit activities, the objections of management and policy critiques by GAO would be inconsistent with the long-established congressional policy that has insulated the Federal Reserve from such pressure. In the sensitive area of monetary policy, Congress has vested decision-making responsibility exclusively in the Federal Reserve, and has established safeguards to ensure that the System will exercise professional—and entirely independent—judgment. We believe this arrangement should continue as long as it serves the long-run interest of the public. Also, as in the case of the audit of financial transactions, the broader GAO audits would be duplicative of the kind of audit functions that I have just described. Reviews of management and operational efficiency are now an integral part of the System's audit activities, both at the Reserve Banks and at the Board. There is moreover the clear possibility, even 737 probability, that an audit by GAO would in time generate pressures for the Federal Reserve System to dilute or compromise its best monetary or credit judgment to short-run rather than long-run interests. The structure created by the framers of the Federal Reserve Act more than 60 years ago, however unique and unconventional, has turned out to be remarkably adaptable to the U.S. economy and remarkably responsive to its long-run interests. This structure combines the advantages of regional units—the 12 Federal Reserve Banks—with the central oversight and coordination of the Board. Furthermore, it is obvious that the opponents of a monetary authority with the independence the Congress has long given the Federal Reserve would view this action as the opening wedge in a series of legislative measures by which they would hope to make monetary and credit policy responsive to short-run political and economic pressures. They would ask Congress to take further steps to place the Board either directly under an executive branch agency or perhaps under day-to-day congressional control, however that might be accomplished. But Congress has, in our view, wisely avoided this possible line of development by continuing to place responsibility for internal management on the Board itself. The unique character of the System, as conceived by the Congress, lies in the engagement of both the public and private sector, in all its regional variety, in the effort to serve the diverse economic interests of production, trade, agriculture, finance, and consumption. The Federal Reserve uses its regional links with the various sectors of the economy as channels for activation and response to monetary and credit measures. The arrangement has evolved into a sensing device of considerable value. The System's blending of public and private elements, and its balance between central oversight and regional initiative, could be endangered if audits were to be conducted by GAO. This is not said in a spirit of criticism of the staff of GAO, but rather as a reflection of our concern for the institutional diversity of the Federal Reserve. Where differences were encountered between the way the Reserve Banks function and the prevailing Federal Government FEDERAL RESERVE BULLETIN • OCTOBER 1973 738 practice, the Government auditors might well support the latter, whether or not the end result would prove superior. For our part, it would be difficult for the System to resist over the years a constant pressure to conform. A gradual process of erosion could begin that might well spell the end of the Reserve Banks as we know them today. We have serious doubts, moreover, whether the final outcome of such a process would yield public benefits that could match those flowing from the present structure. * * * * * With regard to Section 2, we support the amendment to Section 14(b) of the Federal Reserve Act extending the authority of the Federal Reserve Banks to purchase U.S. obligations directly from the Treasury. Timely use of this authority—for example, during periods immediately preceding tax-payment dates—can avoid the creation of unnecessary financial strains that might occur if the Treasury were required to draw heavily on its accounts at such times. There is no doubt the existence of the authority permits more economical cash management, and it also assures the immediate availability of funds in the event of a national emergency. Section 3 of H.R. 10265 would raise by $60 million the ceiling on expenditures that the Federal Reserve System may undertake for the construction and renovation of Reserve Bank branch buildings. This is the dollar figure contained in a bill that the Senate passed in February 1972. In February of this year Chairman Burns wrote to the distinguished chairman of this committee outlining a program of branch building expenditures totaling $71.45 million as the Board's best estimate of its most pressing needs through 1977. This would include funds for construction of new branch buildings in Baltimore, Charlotte, Omaha, and Los Angeles. Construction of these buildings is urgently needed. As our population grows and moves, it is necessary to increase the quantity of our services. While technological improvements in the method of handling many Federal Reserve operations have helped to stem the need for additional space, increases in the volume of operations have more than offset the savings. In the decade 1963-72 checks collected by the Federal Reserve increased 117 per cent, coin operations increased 93 per cent, and currency operations, 56 per cent. Construction of the branch buildings we are planning will help the System to continue to cope with the needs of the public in our expanding economy. As of today, due to cost increases, the construction program we outlined to Chairman Patman in February will cost $76.2 million. We recommend that the dollar limitation in Section 10 be increased by that amount. • Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 17, 1973 Domestic policy directive The information reviewed at this meeting suggested that growth in real output of goods and services, which had expanded at an annual rate of 8 per cent in both the last quarter of 1972 and the first quarter of 1973, had grown at a much less rapid pace in the second quarter. Staff projections continued to suggest that growth would moderate further in the second half of the year. Retail sales declined in June, according to the advance report, and in the second quarter as a whole they were about the same as in the first quarter. Industrial production continued to rise in June—reflecting further gains in output of business equipment and industrial materials—but the advance was somewhat less rapid in the second quarter than in the first. Nonfarm employment again rose substantially in June, but as in April and May, the pace of expansion was much less rapid than it had been earlier in the year. The unemployment rate declined to 4.8 per cent after having been 5.0 or 5.1 per cent for 6 months. The advance in average hourly earnings of production workers on nonfarm payrolls, which had been moderate in the first quarter of the year, was more rapid in the second quarter. Wholesale prices of both industrial commodities and farm and food products rose sharply further from mid-May to mid-June, prior to the imposition of the price freeze announced by the President on June 13. The increase in the total wholesale price index during the first half of the year was extraordinarily large. In May the consumer price index continued to rise at about the high average rate prevailing in the first 4 months of the year; increases in retail prices were widespread and were particularly large among foods. The latest staff projections for the second half of 1973 were similar to those of 4 weeks earlier. The anticipated expansion in business fixed investment, although substantial, was much less rapid than in the first half of the year. Moreover, it was expected that residential construction outlays would decline appreciably; that 739 740 FEDERAL RESERVE BULLETIN • OCTOBER 1973 business inventory investment would increase less rapidly than in the second quarter; and that growth in personal consumption expenditures would be well below the pace in the first half. U.S. merchandise exports continued to expand in May, but imports rose sharply—in large part because of increases in import prices—and the trade balance slipped back into deficit after having been in small surplus in April. However, the average deficit for the 2 months was substantially below that in the first quarter of 1973, which in turn was much lower than the deficit in the fourth quarter of 1972. Since the June 18-19 meeting of the Committee, the exchange rate for the dollar had declined sharply further against those continental currencies that were floating jointly against the dollar; the decline had been most severe in the 2 weeks after June 26—when the U.S. trade deficit for May was announced—and in the week ending July 6 trading was characterized by large and erratic movements in rates. Subsequently, the dollar recovered somewhat on the basis of market expectations of official intervention to support the dollar. On July 10 the System announced that its swap arrangements with other central banks had been increased by substantial amounts. Throughout the period, the dollar had been firm against the currencies of Canada, the United Kingdom, and Japan—countries that account for the bulk of U.S. foreign trade. At U.S. commercial banks, both total loans and holdings of securities changed little in June after having expanded sharply in May, as indicated by data for the last Wednesday of each month; over the 2 months the average rate of growth was relatively high. The rate of expansion in business loans in June, although substantial, was well below that earlier in the year. Banks raised the prime rate applicable to large corporations from IV2 per cent in early June to 8V4 per cent by early July. Growth in the narrowly defined money stock (M^, 1 which had accelerated in April and May, stepped up somewhat further in June. Although inflows of time and savings deposits other than large-denomination CD's slackened, growth in the broadly defined money 1 Private demand deposits plus currency in circulation. RECORD OF POLICY ACTIONS stock (M 2 ) 2 remained at the relatively high rate recorded in May. Expansion in the outstanding volume of large-denomination CD's slowed sharply, but growth in the bank credit proxy 3 remained relatively fast. Over the first half of the year, Ml9 M 2 , and the proxy grew at annual rates of around 6, 7.5, and 14 per cent, respectively. 4 Inflows of savings to nonbank thrift institutions, which had picked up in May, remained relatively strong in June, despite continuing advances in market interest rates. In early July, ceilings were removed from interest rates on consumer-type time deposits of at least $1,000 having maturities of 4 years or more—at commercial banks as well as at nonbank thrift institutions. At the same time maximum rates that could be paid on time and savings deposits with shorter maturities were raised. Mortgage interest rates generally continued to rise. System open market operations since the meeting on June 18-19 had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with somewhat slower growth in monetary aggregates over the months immediately ahead than appeared to be indicated for the first half of the year. Operations had been directed toward fostering growth in reserves available to support private nonbank deposits (RPD's) at an annual rate in a range of 8 to 11.5 per cent in the June-July period, while avoiding unduly sharp changes in money market conditions. Soon after the June meeting, available data suggested that in the June-July period RPD's would grow at an annual rate above the range that the Committee had specified and that Mx would grow at a rate in excess of an acceptable range. Data that became available after the July 4 holiday continued to suggest excessive strength in RPD's and the monetary aggregates in the June-July period, even though money market conditions had continued to tighten, and on Friday, July 6, a majority of Committee members concurred in a recommendation by the Chairman that money market 2 M i plus c o m m e r c i a l bank time and savings deposits other than large-denomination C D ' s . 3 D a i l y - a v e r a g e m e m b e r bank deposits, adjusted to include funds f r o m nondeposit sources. 4 Growth rates cited are calculated o n the basis of the daily-average level in the last m o n t h of the period relative to that in the last month preceding the period. 741 742 FEDERAL RESERVE BULLETIN • OCTOBER 1973 conditions should be permitted to tighten to a greater extent than had been contemplated at the June meeting. The Federal funds rate, which had been about 8% per cent in the days before the June meeting, was close to 9% per cent during most of the week preceding this meeting, and in the last few days it had risen further. In the 4 weeks ending July 11, member bank borrowings averaged about $1,965 million, up from about $1,855 million in the preceding 5 weeks. As money market conditions continued to firm in the inter-meeting period and private credit demands remained strong, short-term interest rates rose sharply further—in general to levels close to or above the peaks of late 1969 and early 1970. Other policy actions also affected market attitudes and developments. On June 29 reserve requirements on all but the first $2 million of net demand deposits at member banks were increased by Vi percentage point, applicable to average deposits in the week beginning July 5, and Federal Reserve discount rates were raised % percentage point, to 7 per cent, effective July 2. The market rate on 3-month Treasury bills rose from 7.20 per cent on the day before the June meeting to a peak of 7.98 per cent in early July, and on the day before this meeting it was 7.85 per cent. Over the whole period, increases in rates on bank CD's and other private instruments were larger than those for Treasury bills. In long-term markets, interest rates in general advanced considerably, despite continuation of moderate demands for funds in the capital markets. Although the over-all volume of new public offerings of corporate and of State and local government bonds rose somewhat in June, the volume for the second quarter as a whole was low for that season of the year, and a moderate decline was in prospect for July. The Treasury was expected to announce on July 25 the terms of its mid-August refunding. Of the maturing issues, $4.5 billion were held by the public. The Committee agreed that the economic situation and prospects called for slower growth in monetary aggregates over the months immediately ahead than had occurred on average in the first half of the year. A staff analysis suggested that expansion in the demand for money was likely to slow considerably from the high rate recorded in the second quarter—in response to the anticipated RECORD OF POLICY ACTIONS moderation in GNP growth and to the sharp rise in short-term interest rates that had occurred in recent months. Because of the rise in short-term market rates, moreover, net expansion in consumer-type time and savings deposits at commercial banks was expected to slow appreciably despite the increase in rate ceilings announced in early July. As a consequence, it was anticipated that banks would attempt to expand the outstanding volume of largedenomination CD's; the increase in these issues in the July-August period was expected to remain relatively large. The staff analysis suggested that a relatively rapid rate of growth in RPD's in the July-August period—at an annual rate in a range of 1 W2 to \3V2 per cent—would be consistent with slower growth in the monetary aggregates over the months immediately ahead than had occurred in the first half of the year. The analysis also suggested that such a rate of growth in RPD's might be associated with little change in money market conditions but that short- and long-term market interest rates in general might be subject to additional upward pressures in further adjustment to the firming in money market conditions that had occurred in recent weeks. The Committee decided that operations should be directed at fostering RPD growth during the July-August period at an annual rate within a range of 1W2 to 13V2 per cent, while avoiding unduly sharp changes in money market conditions. The members also agreed that, in the conduct of operations, account should be taken of international and domestic financial market developments, of the forthcoming Treasury financing, and of deviations in monetary growth from an acceptable range. 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 and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting, including recent developments in industrial production, employment, and retail sales, suggests that growth in economic activity moderated in the second quarter from the exceptionally rapid pace of the two preceding quarters. Increases in employment were relatively substantial, how- 743 744 FEDERAL RESERVE BULLETIN • OCTOBER 1973 ever, and in June the unemployment rate dropped below 5 per cent. Wage rates advanced at a faster pace during the second quarter than earlier in the year. In the months immediately preceding the price freeze imposed in mid-June, the rise in prices of both industrial commodities and farm and food products remained extraordinarily rapid. The U.S. merchandise trade balance worsened in May as import prices rose sharply further, but the trade deficit remained well below the first-quarter average. In foreign exchange markets, the jointly floating continental European currencies rose sharply further against the dollar in early July. After the first week in July, the dollar recovered somewhat on the basis of market expectations of official intervention. On July 10 the Federal Reserve announced substantial increases in its swap arrangements with other central banks. Both the narrowly and more broadly defined money stock rose sharply in May and June, although inflows of consumer-type time and savings deposits slackened somewhat in the latter month. Expansion in bank credit continued at a substantial pace. Since mid-June both short- and long-term market interest rates have advanced considerably further, with the sharpest increases in the short-term sector. On June 29 increases were announced in Federal Reserve discount rates, from 6Vi to 7 per cent, and in member bank reserve requirements; on July 5 ceiling interest rates were increased on time and savings deposits at commercial banks and other thrift institutions. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to abatement of inflationary pressures, a more sustainable rate of advance in economic activity, and progress toward equilibrium in the country's balance of payments. To implement this policy, while taking account of international and domestic financial market developments and the forthcoming Treasury financing, the Committee seeks to achieve bank reserve and money market conditions consistent with slower growth in monetary aggregates over the months immediately ahead than occurred on average in the first half of the year. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Holland, Mayo, Morris, and Sheehan. Vote against this action: Mr. Francis. Absent and not voting: Mr. Mitchell. Mr. Francis dissented from this action not because he disagreed with the objectives of the policy adopted by the Committee but RECORD OF POLICY ACTIONS because he believed that—as had proved to be the case following other recent meetings—the objectives would not be achieved because of the constraint on money market conditions. Subsequent to the meeting it appeared that in the July-August period the annual rate of growth in RPD's and in the monetary aggregates might exceed acceptable ranges, even though money market conditions had continued to tighten. On August 3, 1973, the available members—with the exception of Messrs. Bucher and Sheehan—concurred in a recommendation by the Chairman that money market conditions should be permitted to tighten still further if necessary to limit growth in RPD's. Records of p o l i c y actions taken by the Federal Open Market C o m m i t t e e at each m e e t i n g , in the form in w h i c h they will appear in the Board's Annual Report, are released about 9 0 days after the meeting and are subsequently published in the BULLETIN. 745 Law Department Statutes, regulations, interpretations, and decisions SECURITIES CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS The Board of Governors has amended Regulation G to delete the ''single credit rule" in § 207.4(a)(2)(i) and substitute the provision that each extension of credit pursuant to that section may be treated separately. AMENDMENT TO REGULATION G Effective October 29, 1973 § 207.4(a)(2)(i) is amended to read as follows: and operation of security devices to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts. AMENDMENT TO REGULATION P Effective November 1, 1973, the Board has amended Appendix A of its Regulation P (12 CFR 216) to read as follows: APPENDIX A SECTION 207.4—MISCELLANEOUS PROVISIONS (a) Stock option and employee stock purchase plans. * * * * * (2) * * * (i) Each such credit extended to any officer or employee pursuant to this subparagraph (2) in connection with the exercise of rights under one or more plans or with the periodic exercise of rights under a single plan, when such credits shall be outstanding at the same time, may be treated separately from any other credit extended pursuant to this subparagraph (2) and shall be treated separately from any other credit extended pursuant to sections 207.1(c), (d) and (g) of this part: Provided, That the collateral with respect to each individual credit extended pursuant to such plan or plans shall be identified with, and shall have loan value only with respect to, such individual credit. MINIMUM SECURITY DEVICES AND PROCEDURES FOR FEDERAL RESERVE BANKS AND STATE MEMBER BANKS The Board of Governors has amended Regulation P to clarify standards with which each Federal Reserve Bank and each State member bank must comply regarding the installation, maintenance, 746 MINIMUM STANDARDS FOR SECURITY DEVICES In order to assure realization of maximum performance capabilities, all security devices utilized by a bank should be regularly inspected, tested, and serviced by competent persons. Actuating devices for surveillance systems and robbery alarms should be operable with the least risk of detection by unauthorized persons that can be practicably achieved. (1) Surveillance systems, (i) General. Surveillance systems should be: (A) equipped with one or more photographic, recording, monitoring, or like devices capable of reproducing images of persons in the banking office with sufficient clarity to facilitate (through photographs capable of being enlarged to produce a one-inch vertical head-size of persons whose images have been reproduced) the identification and apprehension of robbers or other suspicious persons; (B) reasonably silent in operation; and (C) so designed and constructed that necessary services, repairs or inspections can readily be made. Any camera used in such a system should be capable of taking at least one picture every 2 seconds and, if it uses film, should contain enough unexposed film at all times to be capable of operating for not less than 3 minutes, and the film should be at least 16mm. (ii) Installation and operation of surveillance systems providing surveillance of other than walk-up or drive-in teller's stations or windows. Surveillance devices for other than walk-up or drive-in teller's stations or windows should be: (A) located so as to reproduce identifiable images of persons either leaving the banking office or in a position to transact business at each such station or window; and (B) capable of actuation by initiating devices located at each teller's station or window. (iii) Installation and operation of surveillance systems providing surveillance of walk-up or drive-in teller's stations or windows. Surveillance devices for walk-up or drive-in teller's stations or windows should be located in such a manner as to reproduce identifiable images of persons in a position to transact business at each such station or window and areas of such station or window that are vulnerable to robbery or larceny. Such devices should be capable of actuation by one or more initiating devices located within or in close proximity to such station or window. Such devices may be omitted in the case of a walk-up or drive-in teller's station or window in which the teller is effectively protected by a bullet-resistant barrier from persons outside the station or window. However, if the teller is vulnerable to larceny or robbery by members of the public who enter the banking office, the teller should have access to a device to actuate a surveillance system that covers the area of vulnerability or the exits to the banking office. (2) Robbery and burglary alarm systems. (i) Robbery alarm systems. A robbery alarm system should be provided for each banking office at which the police ordinarily can arrive within 5 minutes after an alarm is actuated; all other banking offices should be provided with appropriate devices for promptly notifying the police that a robbery has occurred or is in progress. Robbery alarm systems should be: (A) designed to transmit to the police, either directly or through an intermediary, a signal (not detectable by unauthorized persons) indicating that a crime against the banking office has occurred or is in progress; (B) capable of actuation by initiating devices located at each teller's station or window (except walk-up or drive-in teller's stations or windows in which the teller is effectively protected by a bullet-resistant barrier and effectively isolated from persons, other than fellow employees, inside a banking office of which such station or window may be a part); (C) safeguarded against accidental transmission of an alarm; (D) equipped with a visual and audible signal capable of indicating improper functioning of or tampering with the system; and (E) equipped with an independent source of power (such as a battery) sufficient to assure continuously reliable operation of the system for at least 24 hours in the event of failure of the usual source of power. (ii) Burglary alarm systems. A burglary alarm system should be provided for each banking office. Burglary alarm systems should be: (A) capable of detecting promptly an attack on the outer door, walls, floor, or ceiling of each vault, and each safe not stored in a vault, in which currency, negotiable securities, or similar valuables are stored when the office is closed, and any attempt to move any such safe; (B) designed to transmit to the police, either directly or through an intermediary, a signal indicating that any such attempt is in progress; and for banking offices at which the police ordinarily cannot arrive within 5 minutes after an alarm is actuated, designed to actuate a loud sounding bell or other device that is audible inside the banking office and for a distance of approximately 500 feet outside the banking office; (C) safeguarded against accidental transmission of an alarm; (D) equipped with a visual and audible signal capable of indicating improper functioning of or tampering with the system; and (E) equipped with an independent source of power (such as a battery) sufficient to assure continuously reliable operation of the system for at least 80 hours in the event of failure of the usual source of power. (3) Walk-up and drive-in teller's stations or windows. Walk-up and drive-in teller's stations or windows contracted for after February 15, 1969, should be constructed in such a manner that tellers are effectively protected by bullet-resistant barriers from robbery or larceny by persons outside such stations or windows. Such barriers should be of glass at least 1 3 / 16 inches in thickness, 1 or of material of at least equivalent bullet-resistance. Pass-through devices should be so designed and constructed as not to afford a person outside the station or window a direct line of fire at a person inside the station. ^Footnotes appear at end of Appendix A . ) 747 748 FEDERAL RESERVE BULLETIN • OCTOBER 1973 (4) Vaults, safes, safe deposit boxes, night depositories, and automated paying or receiving machines. Vaults, safes (if not to be stored in a vault), safe deposit boxes, night depositories, and automated paying or receiving machines, in any of which currency, negotiable securities, or similar valuables are to be stored when banking offices are closed, should meet or exceed the standards expressed in this section. (i) Vaults. A vault is defined as a room or comqrtment that is designed for the storage and safekeeping of valuables and which has a size and shape which permits entrance and movement within by one or more persons. Other asset storage units which do not meet this definition of a vault will be considered as safes. Vaults contracted for after November 1, 1973, 2 should have walls, floor, and ceiling of reinforced concrete at least 12 inches in thickness. 3 The vault door should be made of steel at least 3V£ inches in thickness, or other drill and torch resistant material, and be equipped with a dial combination lock, a time lock, and a substantial lockable day-gate. Electrical conduits into the vault should not exceed 1V2 inches in diameter and should be offset within the walls, floor, or ceiling at least once so as not to form a direct path of entry. A vault ventilator, if provided, should be designed with consideration of safety to life without significant reduction of the strength of the vault wall to burglary attack. Alternatively, vaults should be so designed and constructed as to afford at least equivalent burglary resistance. 4 (ii) Safes. Safes contracted for after February 15, 1969, should weigh at least 750 pounds empty, or be securely anchored to the premises where located. The body should consist of steel, at least 1 inch in thickness, either cast or fabricated, with an ultimate tensile strength of 50,000 pounds per square inch and be fastened in a manner equal to a continuous X inch penetration weld having A an ultimate tensile strength of 50,000 pounds per square inch. The door should be made of steel that is at least IV2 inch in thickness, and at least equivalent in strength to that specified for the body; and the door should be equipped with a combination lock, or time lock, and with a relocking device that will effectively lock the door if the combination lock or time lock is punched. One hole not exceeding Vi inch diameter may be provided in the body to permit insertion of electrical conductors, but should be located so as not to permit a direct view of the door or locking mechanism. Alternatively, safes should be constructed of materials that will afford at least equivalent burglary resistance. (iii) Safe deposit boxes. Safe deposit boxes used to safeguard customer valuables should be enclosed in a vault or safe meeting at least the above-specified minimum protection standards. (iv) Night depositories. Night depositories (excluding envelope drops not used to receive substantial amounts of currency) contracted for after February 15, 1969, should consist of a receptacle chest having cast or welded steel walls, top, and bottom, at least 1 inch in thickness; a steel door at least W2 inches in thickness, with a combination lock; and a chute, made of steel that is at least 1 inch in thickness, securely bolted or welded to the receptacle and to a depository entrance of strength similar to the chute. Alternatively, night depositories should be so designed and constructed as to afford at least equivalent burglary resistance. 5 Each depository entrance (other than an envelope drop slot) should be equipped with a lock. Night depositories should be equipped with a burglar alarm and be designed to protect against the 4 'fishing" of a deposit from the deposit receptacle, and to protect against the " t r a p p i n g " of a deposit for extraction. (v) Automated paying or receiving machines. Except as hereinafter provided, cash dispensing machines (automated paying machines), including those machines which also accept deposits (automated receiving machines) contracted for after November 1, 1973, should weigh at least 750 pounds empty, or be securely anchored to the premises where located. Cash dispensing machines should contain, among other features, a storage chest having cast or welded steel walls, top, and bottom, at least one inch in thickness, with a tensile strength of at least 50,000 pounds per square inch. Any doors should be constructed of steel at least equivalent in strength to the storage chest and be equipped with a combination lock and with a relocking device that will effectively lock the door if the combination lock is punched. The housing covering the cash dispensing opening in the storage chest and the housing covering the mechanism for removing the cash from the storage chest, should be so designed as to provide burglary resistance at least equivalent to the storage chest and should also be designed to protect against the " f i s h i n g " of cash from the storage chest. The cash dispensing control and delivering mechanism (and, when applicable, cash deposit receip mechanism) should be protected by steel, at least V inch in 2 thickness, securely attached to the storage chest. A cash dispensing machine which also receives deposits should have a receptacle chest having the same burglary resistant characteristics as that of LAW DEPARTMENT 749 a cash dispensing storage chest and should be designed to protect against the fishing and trapping of deposits. Necessary ventilation for the automated machines should be designed so as to avoid significantly reducing the burglary resistance of the machines. The cash dispensing machine should also be designed so as to be protected against actuation by unauthorized persons, should be protected by a burglar alarm, and should be located in a well-lighted area. Alternatively, cash dispensing machines should be so designed and constructed as to afford at least equivalent burglary resistance. 6 A cash dispensing machine which is used inside a bank's premises only during bank business hours, and which is empty of currency and coin at all other times, should at least provide safeguards against " j i m m y i n g , " unauthorized opening of the storage chest door, and against actuation by unauthorized persons. clear and conspicuous notice that Federal law and regulation prohibit the bank from paying a time deposit before maturity unless certain interest is forfeited, and (2) the bank customer shall be given, at the time that a time deposit is made, a disclosure statement which makes it clear that the customer has contracted to leave his funds on deposit for the stated maturity and which describes how the early withdrawal penalty applies to time deposits in the bank, in the event the bank, notwithstanding the contract provisions, permits payment before maturity. AMENDMENT TO REGULATION Q Effective September 18, 1973, Regulation Q is amended in the following respects: 1. Section 217.4 is amended by redesignating paragraph (e) as paragraph (f) and by adding a new paragraph (e) to read as follows: FOOTNOTES *It should be emphasized that this thickness is bullet-resistant and not bulletproof. merely 2 Vaults contracted for previous to this date should be constructed in conformance with all applicable specifications then in effect. 3 T h e reinforced concrete should have: two grids of # 5 (%" diameter) deformed steel bars located in horizontal and vertical rows in each direction to form grids not more than 4 inches on center; or two grids of expanded steel bank vault mesh placed parallel to the face of the walls, weighing at least 6 pounds per square foot to each grid, having a diamond pattern not more than 3" x 8"; or two grids of any other fabricated steel placed parallel to the face of the walls, weighing at least 6 pounds per square foot to each grid and having an open area not exceeding 4 inches on center. Grids are to be located not less than 6 inches apart and staggered in each direction. The concrete should develop an ultimate compression strength of at least 3 , 0 0 0 pounds per square inch. 4 Equivalent burglary-resistant materials for vaults do not include the use of a steel lining, either inside or outside a vault wall, in lieu of the specified reinforcement and thickness of concrete. Nonetheless, there may be instances, particularly where the construction of a vault of the specified reinforcement and thickness of concrete would require substantial structural modification of an exisiting building, where compliance with the specified standards would be unreasonable in cost. In those instances, the bank should comply with the procedure set forth in section 216.3(c) of Regulation P. 5 Equivalent burglary-resistant materials for night depositories include the use of one-fourth inch steel plate encased in 6 inches or more of concrete or masonry building wall. 6 Equivalent burglary-resistant materials for cash dispensing machines include the use of 3/s inch thick nickel stainless steel meeting American Society of Testing Materials (ASTM) Designation A 167-70, Type 304, in place of 1 inch thick steel, if other criteria are satisfied. INTEREST ON DEPOSITS The Board of Governors has amended its Regulation Q to provide that (1) any advertisement, announcement, or solicitation relating to interest paid on time deposits by member banks include SECTION 217.4—PAYMENT OF TIME DEPOSITS BEFORE MATURITY (e) Disclosure of early withdrawal penalty. At the time a depositor enters into a time deposit contract with a member bank, the bank shall provide a written statement of the effect of the penalty prescribed in paragraph (d) of this section, which shall (1) state clearly that the customer has contracted to keep his funds on deposit for the stated maturity, and (2) describe fully and clearly how such penalty provisions apply to time deposits in such bank, in the event the bank, notwithstanding the contract provisions, permits payment before maturity. Such statements shall be expressly called to the attention of the customer. 2. Section 217.6 is amended by redesignating paragraphs (e), (f), and (g) as (f), (g), and (h) and by adding a new paragraph (e) to read as follows: SECTION 217.6—ADVERTISING OF INTEREST ON DEPOSITS (e) Penalty for early withdrawals. Any advertisement, announcement, or solicitation relating to interest paid by a member bank on time deposits shall include clear and conspicuous notice that Federal law and regulation prohibit the bank from allowing payment of a time deposit before maturity unless substantial interest is forfeited. Such notice may state that, FEDERAL RESERVE BULLETIN • OCTOBER 1973 750 Federal law and regulation prohibit the payment of a time deposit prior to maturity unless three months of the interest thereon is forfeited and interest on the amount withdrawn is reduced to the passbook rate. With respect to any advertisement, announcement, or solicitation made by television or radio, the required notice of penalty may be stated in a form such as "Substantial interest penalty is required for early withdrawal." BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT D. H. BALDWIN COMPANY, CINCINNATI, OHIO O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K D. H. Baldwin Company, Cincinnati, Ohio, 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 indirectly 89 per cent or more of the voting shares of North Denver Bank of Denver, Denver, Colorado ("Bank"), through the direct acquisition of all of the voting shares of Nordenco, Inc., Denver, Colorado ("Nordenco"). Nordenco is a one bank holding company owning approximately 89 per cent of the voting shares of Bank and no other assets except a general insurance agency whose business will be discontinued prior to consummation of the proposed acquisition. The proposed acquisition of Nordenco is treated herein as the proposed acquisition of the shares of Bank. Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant controls the Central Bank and Trust Company, Denver, Colorado ("Central Bank"), whose deposits of $331 million represent 5.6 per cent of the total commercial bank deposits held by Colorado banks and rank it as the fifth largest banking organization in the State. (All banking data are as of December 31, 1972, and reflect acquisitions and formations approved through August 31, 1973.) The acquisition of Bank (deposits of $26 million) would increase Applicant's share of State deposits to 6.0 per cent and would not alter its rank among banking organizations in Colorado. Applicant is a diversified corporation engaged in three principal areas of activity: the manufacture and sale of musical instruments; the manufacture and sale of electronic components, and the provi sion of financial services. The Board has previously reviewed each of Applicant's nonbanking activities and, under a Board determination of June 14, 1973, 1 found that all of Applicant's activities relating to the musical instruments business were commenced prior to June 30, 1968, have been engaged in continuously since that date, and appear to be eligible for retention on the basis of grandfather privileges. Applicant has committed itself to divestiture of its electronic interests (not related to the music business) with reasonable speed and in any event by December 31, 1980. Certain of Applicant's interests in the financial services field are located within the Denver Standard Metropolitan Statistical Area (SMSA) and require, in connection with the instant proposal, a further analysis to that recently undertaken in the Board's § 4(a)(2) review. These interests are, specifically, Applicant's ownership of Empire Savings and Loan Association, Denver, Colorado ("Empire"), and National Farmers Union Service Corporation ( " N F U " ) , also located in Denver. Both Empire and NFU were acquired after June 30, 1968, and under the provisions of § 4 of the Act, Applicant's interests in each must be reduced to less than 5 per cent of the outstanding voting shares by December 31, 1980, unless the Board approves retention of such interests prior to that date. In its consideration of the instant application, the Board reviewed each of Applicant's nonbanking activities in the Denver SMSA to determine whether acquisition of Bank would have an anticompetitive or other adverse effect on the operations of those companies, or vice versa. Empire, with total assets of $252 million, ranks as the fourth largest savings and loan association in the Denver banking market and in Colorado. Empire's headquarters and 8 of its 12 branches are located within the Denver SMSA. In terms of time and savings deposits, Empire accounts for approximately $170 million, or 5.3 per cent of the total time and savings deposits held by all 63 commercial banks and 17 thrift institutions in the market. Combined with Central Bank's time and savings deposits of approximately $150 million, M973 Federal Reserve BULLETIN 536. LAW DEPARTMENT Applicant controls 10 per cent of all such deposits in the market. Acquisition of Bank would add $14.9 million, or 0.5 per cent to the total time and savings deposits held by Applicant. In the area of mortgage lending, Central Bank and Empire combined originated approximately $76 million in mortgages secured by real estate in 1972, of which $60.6 million 2 were loans secured by 1-4 family residences. This represented approximately 8 per cent of all mortgage loan originations on 1-4 family homes in the Denver SMS A in 1972. Acquisition of Bank, whose mortgage originations on 1-4 family homes totalled $30,000 in 1972, or less than 0.1 per cent of all such loans in the Denver market, would not add appreciably to Applicant's present market share, nor have an adverse interface with the present activities of Applicant. NFU is an insurance holding company which owns National Farmers Union Life Insurance Company ($29.4 million in assets), National Farmers Union Property and Casualty Company ($26.2 million in assets), and National Farmers Union Standard Insurance ($2.2 million in assets). NFU's life insurance company is one of 462 life insurance companies operating in the State of Colorado. It had $24.6 million of ordinary life insurance (including group life) in force as of December 31, 1971, representing but 0.2 per cent of all such insurance in force in Colorado. The other two insurance companies owned by NFU are both relatively small multiple line insurance companies in the State. 3 Acquisition of Bank would not, in the Board's judgment, have an adverse interface with, nor increase to any measurable extent, Applicant's present insurance underwriting business in the Denver banking market 4 or in the State of Colorado. Bank (deposits of $26 million) is the third largest of four competing banks in or near its primary service area in the northwest section of Denver and is approximately three miles from Central Bank, located in downtown Denver. It appears that direct competition between Central Bank and Bank is mitigated by industrial congestion between the two institutions, although each competes to a limited degree for demand and time deposits and for certain loans. Central Bank derives approximately 12 per cent of its demand 2 Total originations of $ 6 0 . 6 million were divided between Central Bank's originations of $ 2 1 . 2 million and those of Empire, which amounted to $ 3 9 . 4 million. 3 The companies' policies, as those of the National Farmers Union Life Insurance Company, are concentrated in the States of Montana, Minnesota, North Dakota, and South Dakota. 4 Consisting of Adams, Arapahoe, Denver and Jefferson Counties. 751 deposits and 14.5 per cent of its savings deposits from Bank's service area. Approximately 3 per cent of Central Bank's installment loans and 1.6 per cent of its residential mortgage loans are also derived from Bank's service area. However, Bank has not been competing actively for loans or deposits from its primary service area due to its limited capital position. Thus, it appears that whatever significance may be accorded the overlap between Bank's primary service area and that of Central Bank is attenuated by Bank's inability to compete aggressively for loans and deposits as well as the activity of major downtown competitors in the northwest section of Denver. Accordingly, it does not appear that Applicant's acquisition of Bank would result in any significant adverse effects on competition. A total of 63 banks compete in the Denver banking market, with the top three banking organizations controlling 52.5 per cent of total I.P.C. market deposits. Six of the ten largest banking organizations in the market are multibank holding companies and control over one-third of the area banks and 71 per cent of the area total I.P.C. deposits. Applicant's one bank, Central Bank, is the fourth largest banking organization in this market with 8.5 per cent of area total I.P.C. deposits. However, the deposits of the top three banking organizations are 2.4, 2.1, and 1.5 times the deposit size of Central Bank. It does not appear that consummation of the proposed acquisition would improve Applicant's market position materially nor lead to an undue concentration of banking resources. Rather, approval of the proposed transaction, and expansion of Applicant from a one-bank to a multibank holding company, should provide a base from which Applicant can grow into a more effective competitor in the Denver banking market and with the major holding companies having statewide operations. There is no evidence indicating that the major banking needs of the Denver SMSA are not being met by the existing institutions. However, Bank's inadequate capital structure has not permitted it to seek new business. It has not been active in mortgage lending since 1970; virtually all of its investments consist of U.S. Treasury or Federal agency obligations. Bank received temporary assistance through the formation of Nordenco in 1970, when its parent purchased Bank's $1.5 million capital debenture. Despite these efforts, Bank's capital position remains inadequate and its financial condition is unsatisfactory. Applicant has committed itself to inject $2 million in equity capital in Bank which should permit Bank to compete more actively in its service area for de- 752 FEDERAL RESERVE BULLETIN • OCTOBER 1973 posits and loans. Thus, banking factors, as well as considerations relating to the convenience and needs of the communities to be served, lend strong weight for approval of the application. In addition, the financial and managerial resources of Applicant and its subsidiaries, including those of Central Bank, appear generally satisfactory. Applicant proposes to inject an additional $3 million in equity capital in Central Bank. The Board concludes that the future prospects of all appear favorable. In its consideraion of this matter, the Board has taken into account certain undertakings made by Applicant to assure the Board that its operations as a multi-bank holding company, should this application be approved, will not be misused to the detriment of its competitors, or to customers or suppliers of its nonbanking subsidiaries. These undertakings are: 1. Neither Baldwin nor any of its nonbank affiliates will borrow money from or sell loans to a Baldwin bank. 2. No Baldwin bank will lend money to, purchase loans from or accept deposits from any person known by the bank to be a customer or supplier of Baldwin or of a Baldwin nonbank subsidiary. 3. No Baldwin bank will deny credit to a creditworthy piano or organ manufacturer or dealer. 4. Baldwin and its nonbank subsidiaries will not borrow from unaffiliated banks under terms which require maintenance by Baldwin banks of unusual balances with the lending institution. 5. Baldwin banks will not, in connection with lending transactions, sell credit life, health or accident policies, homeowners insurance, automobile insurance, or any other kind of insurance policy issued by an insurance company which is a Baldwin affiliate. All such policies will be those of unaffiliated insurance companies. 6. Baldwin banks will not sell loans (including but not limited to real estate loans) to Baldwin or any of its nonbank subsidiaries, except for loans which have been criticized by an examining agency. 7. Baldwin and its subsidiaries will not make any charges to the banks of fees of management. 8. Fees charged the banks for data processing, audit, rent and other payments from the banks to Baldwin and its subsidiaries will be at rates customary in arms length transactions. 9. No transaction which would constitute a violation of section 106 of the Bank Holding Company Amendments of 1970 shall be permitted to occur. Given the strictures on intercorporate transactions between Applicant's banking and nonbanking subsidiaries which the above-stated undertakings impose, and the volume, scope, and nature of Applicant's activities, it appears that acquisition of Bank would not lead to conflicts of interest, unfair competition, unsound banking practices, or an undue concentration of resources. Nor would consummation of the proposal cause an adverse interface between the grandfathered activities of Applicant and the Bank to be acquired. The proposal does not, in the Board's judgment, add significantly to Applicant's share of demand deposits, time and savings deposits, mortgage lending or insurance business in the Denver banking market or in the State of Colorado. It is the Board's judgment that the proposed transaction would be in the public interest and that the application should be approved. On the basis of all relevant facts contained in the record and in light of the factors set forth in § 3(c) of the Act, the application is approved for the reasons summarized above. The transaction shall not be consummated (a) before the thirtieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. By order of the Board of Governors, effective September 28, 1973. Voting for this action: Vice Chairman Mitchell and Governors Daane, Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Chairman Burns. (Signed) [SEAL] CHESTER B . Secretary FELDBERG, of the Board. D. H. BALDWIN COMPANY, CINCINNATI, OHIO ORDER A P P R O V I N G ACQUISITION OF B A N K S AND MERGER WITH BANK HOLDING COMPANIES D. H. Baldwin Company, Cincinnati, Ohio, 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 direct or indirect ownership of a majority of the voting shares of (1) First National Bank of Grand Junction, Grand Junction, Colorado, (2) First National Bank of Glen wood Springs, Glenwood Springs, Colorado, (3) First National Bank in Aspen, Aspen, Colorado, and (4) First National Bank North, Grand Junction, Colorado. At the same time, Applicant has applied for the Board's approval under § 753 LAW DEPARTMENT 3(a)(5) of the Act (12 U.S.C. 1842(a)(5)) to merge with First Western Slope Corporation, Grand Junction, Colorado ( " F W S " ) , a registered bank holding company owning approximately 56 per cent of the outstanding shares of First National Bank of Grand Junction, and 20 per cent of the outstanding shares of First National Bank in Aspen; and to acquire a majority of the voting shares of First McKinley Corporation, Glenwood Springs, Colorado ( " F M C " ) , a registered bank holding company owning 50.8 per cent of the outstanding shares of First National Bank of Glenwood Springs and 20 per cent of the outstanding shares of First National Bank in Aspen. The proposed merger with FWS and the proposed acquisition of FMC are treated herein as the proposed acquisition of shares of First National Bank of Grand Junction, First National Bank of Glenwood Springs, and First National Bank in Aspen. Notice of receipt of the applications, affording an opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired. The Board has considered the applications and all comments received in the light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)), and finds that: Applicant controls the Central Bank and Trust Company, Denver, Colorado ("Central B a n k " ) , and North Denver Bank of Denver, Denver, Colorado ("North Denver B a n k " ) , 1 whose combined deposits of $357 million represent 6.0 per cent of the total commercial bank deposits held by Colorado banks, and rank it as the fifth largest banking organization in the State. (All banking data are as of December 31, 1972, and reflect acquisitions and formations approved through August 31, 1973.) The acquisition of First National Bank in Grand Junction (deposits of $41 million), First National Bank of Glenwood Springs (deposits of $33 million), First National Bank in Aspen (deposits of $11 million), and First National Bank North (deposits of $1 million) would increase Applicant's share of State deposits to 7.47 per cent and its rank among banking organizations in Colorado would remain unchanged. First National Bank of Grand Junction ("Grand Junction B a n k " ) is the largest of six banks in the Grand Junction banking market (approximated by Mesa County), and the eighteenth largest banking organization in Colorado. The second largest bank 1 Board approval of D. H. Baldwin Company's acquisition of North Denver Bank was granted in a companion Order issued this same date. in this market ranks as the twentieth largest banking organization in the State and is presently under contract agreement for purchase by a Colorado bank holding company. The third largest bank in the market is controlled by the second largest banking organization in Colorado, while two of the area banks are rural banks located 10 and 12 miles, respectively, from Grand Junction. Grand Junction Bank is located approximately 250 miles west of Denver in the Western Slope area of Colorado, and little competition exists between it and Applicant's two Denver-based banks. As of early 1973, Central Bank derived only 2.5 per cent of its demand deposits and less than 1 per cent of its savings deposits from the Grand Junction area, while North Denver Bank derived less than $300 in both demand and savings deposits from the Grand Junction area. Applicant's two nonbanking institutions based in Colorado, Empire Savings and Loan Association ( " E m p i r e " ) and National Farmers Union Service Corporation ( " N F U " ) , both located in Denver, offer but minimal competition to either Grand Junction Bank or to the commercial banks in Mesa County. As of February 28, 1973, Empire held only $18,000 in mortgage loans from Mesa County and derived only $47,000 in time deposits from the Grand Junction area. N F U ' s insurance companies held but two loans in Mesa County, totaling $120,000. The Board concludes that consummation of the proposed acquisition would not result in the elimination of substantial existing competition between Applicant's banking and nonbanking financial subsidiaries and Grand Junction Bank. It does not appear that Applicant would gain a dominant market position through the proposed acquisition, as total deposits of the second largest bank in the market are only $2 million less than those of Grand Junction Bank. In addition, the annual average growth rate of Grand Junction Bank's IPC deposits between 1967 and 1972 was less than that of either the second or third largest area banks. Given the slow growth of the Grand Junction economy, it appears unlikely that Applicant might enter the Grand Junction market de novo or through acquisition of a smaller bank. The population per banking office for Grand Junction (5,042) is well below the State average (9,046). Although Empire can branch anywhere in Colorado, 2 it does not appear that consummation of 2 Under the provisions of § 4 of the Act, Applicant's interests in Empire, as well as N F U , must be reduced to less than 5 per cent of the outstanding voting shares by December 31, 1980. (See Board determination of June 14, 1973; 1973 Federal R e s e r v e BULLETIN 536). 754 FEDERAL RESERVE BULLETIN • OCTOBER 1973 the proposal would result in the elimination of substantial future competition between any of Applicant's banking or nonbanking subsidiaries and Grand Junction Bank. First National Bank of Glenwood Springs ("Glenwood Springs B a n k " ) is the larger of two banks in Glenwood Springs and the largest of four banks in its service area. 3 The competing bank in Glenwood Springs is a subsidiary of another bank holding company and not available for acquisition. Acquisition of a bank in Rifle or Carbondale, while within the service area of Glenwood Springs Bank, would not allow Applicant to be an effective competitor in the Glenwood Springs market. Applicant's present banking subsidiaries, located approximately 170 miles distant in Denver, offer but minimal competition to Glenwood Springs Bank. Central Bank derives approximately $80,000 in demand and savings deposits from the service area of Glenwood Springs Bank, while Empire derives approximately $59,000 of savings deposits from this area. It is estimated that Glenwood Springs Bank derives approximately 1.2 per cent of its demand and savings deposits from the Denver SMSA. The Board concludes that consummation of the proposed acquisition of Glenwood Springs Bank would not eliminate any significant direct competition between Applicant's banking or nonbanking subsidiaries and Glenwood Springs Bank. Moreover, consummation of the proposal would not eliminate any significant direct competition with Grand Junction Bank, located 90 miles distant, or with First National Bank in Aspen, located approximately 40 miles southeast of Glenwood Springs. These distances effectively preclude the banks in Grand Junction and Aspen as convenient alternatives to residents in Glenwood Springs. Inasmuch as the Western Slope is not a single banking market and each of the banks proposed to be acquired are located in separate banking markets, the Board concludes that consummation of the proposed acquisition of Glenwood Springs Bank would not eliminate significant future competition between Applicant's banking or nonbanking subsidiaries and Glenwood Springs Bank. First National Bank in Aspen ("Aspen B a n k " ) is the smaller of two banks in the Aspen banking market (approximated by Pitkin County). The larger bank is an affiliate of a banking chain and unavailable for acquisition. Aspen Bank derives A p p r o x i m a t e d by the City of Glenwood Springs and its environs, and including the communities of Newcastle, Silt, Rifle, Carbondale and Basalt. approximately 1.7 per cent of its demand deposits and 1.8 per cent of its commercial loans from the Denver SMSA. Central Bank has a moderate amount of commercial loans from Aspen Bank's service area attributable both to its correspondent business and the heavy demand from Denver parties for loanable funds to develop the Aspen area. The Board concludes that approval of the proposed acquisition would not eliminate any significant competition between Aspen Bank and Applicant's banking or nonbanking subsidiaries. Similarly, consummation of the proposed acquisition would eliminate little significant competition with Glenwood Springs Bank inasmuch as Aspen Bank derives only 1 per cent of its demand deposits and 0.8 per cent of its savings deposits from the service area of Glenwood Springs Bank, while Glenwood Springs Bank derives approximately 3.6 per cent of its demand deposits and 5.6 per cent of its savings deposits from Aspen Bank's primary service area. First National Bank North ("North B a n k " ) is the smallest of six banks in the Grand Junction banking market, and derives no deposits or loans from the Denver SMSA. A close affiliation exists between North Bank and Grand Junction Bank by reason of the two institution's common shareholders , and it is unlikely that this affiliation would be severed in the near future. Moreover, absent its affiliation, the prospects for profitable operations of an independent North Bank appear to be poor. North Bank obtained its charter in May 1972, and did not open for business until December of that year. It appears that North Bank's profitability and competitive impact in the market area is dependent upon a significant amount of support from a larger banking organization. The Board is satisfied in the instant application that the charter of N o r h Bank was not sought by its organizers for speculative purposes, and that no profit will be derived from the owners' investment in North Bank's stock. The Board concludes that consummation of the proposed acquisition of North Bank will eliminate no significant existing competition nor foreclose substantial future competition between any of Applicant's banking or nonbanking subsidiaries and North Bank. The Board further concludes that competitive considerations are consistent with approval for each of the foregoing applications. There is no evidence indicating that the major banking needs of the areas served by Grand Junction Bank, Glenwood Springs Bank, Aspen Bank, or North Bank are not being met by existing institutions serving these markets. However, upon consummation of these proposed acquisitions, LAW DEPARTMENT 755 Applicant should be able to provide more effective competition to the major bank holding companies in the State as it broadens and improves its banking services throughout Colorado. Each of the four banks to be acquired are likely to benefit from their ability to draw upon a pool of qualified manpower for their management. In addition, each may be expected to benefit from the provision of internal audits and computerized customer information programs. Additions to the capital of Grand Junction Bank should insure the continuation of this Bank's competitive posture in the community. In both the Glenwood Springs and Aspen area, Applicant may be expected to meet credit demands through participation loans. Applicant proposes to assist both Glenwood Springs Bank and Aspen Bank in the provision of trust services which are presently unavailable. Considerations relating to banking factors, as well as to the convenience and needs of the communities to be served, are regarded as being consistent with and lend some weight toward approval of the applications. It is the Board's judgment that the proposed transactions would be in the public interest and that the applications should be approved. On the basis of the record, the applications are approved for the reasons summarized above. The transactions shall not be consummated (a) before the thirtieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. By order of the Board of Governors, effective September 28, 1973. Voting for this action: Vice Chairman Mitchell and Governors Daane, Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Chairman Burns. (Signed) CHESTER Secretary [SEAL] B. F E L D B E R G , of the Board. D I S S E N T I N G S T A T E M E N T OF G O V E R N O R BRIMMER I would deny each of the proposals through which D. H. Baldwin Company seeks to acquire five additional banks in Colorado. As a manufacturing conglomerate, Applicant is now a one-bank holding company possessing substantial financial resources in the Denver SMS A. Approval of each of these proposed acquisitions will add unduly to those resources in the Denver banking market. As a multibank holding company, its influence would be extended throughout Colorado as well. My views with respect to the continuation of D. H. Baldwin Company's nonbanking activities have been previously set forth in my dissenting statement to the Board's determination of June 14, 1973, wherein all of Applicant's activities relating to the musical instrument business were accorded indefinite grandfather privileges (1973 Federal Reserve B U L L E T I N 536). I have held all along that the opportunities for holding companies to engage in nonbanking activities authorized by Congress through the 1970 Amendments to the Act do not give Applicant the privilege to expand as a multibank holding company and retain, in the process, its sizable nonbanking interests. I would require Applicant to decide now whether it wants to be a bank holding company—and thus limit itself to activities that the Board has determined to be closely related to banking—or whether it wants to be in the manufacturing business—and thus cease to be a bank holding company. The anticompetitive nature of these proposals can be seen most clearly when one notes the presence of Empire Savings and Loan Association ( " E m p i r e " ) as an affiliate of Applicant. Ownership of Empire confers upon D. H. Baldwin Company a significant advantage not enjoyed by any other Colorado bank holding company. It is relatively easy under Colorado law for a savings and loan association to establish branches wherever it chooses. However, commercial banks are not allowed to establish even a single branch in Colorado. Thus, Applicant's continued operation of Empire creates and maintains unfair competition for commercial banks in the Denver SMSA as well as for other multibank holding companies competing on a Statewide basis. Applicant's savings and loan affiliate can offer higher rates on savings accounts than commercial banks can and thus attract many savers away from its commercial bank competitors. Moreover, as a Colorado savings and loan association, Empire is permitted to own and acquire raw land and engage in the ownership and development of real estate. In fact, Applicant reported in its 1972 Annual Report that Empire established ESL Corp., a wholly-owned service corporation involved in both real estate development and equity ownership. This activity is specifically prohibited under the Board's Regulation Y for bank holding companies. In my judgment (and the Board majority shares this view), real estate development is not an appropriate activity for banks or bank holding companies. Consequently, it should be denied to any subsidiary of a bank holding company, irrespective of the fact that such subsidiary is a savings and loan association. 756 FEDERAL RESERVE BULLETIN • OCTOBER 1973 With respect to Applicant's acquisition of North Denver Bank, there are additional anticompetitive factors upon which the application should be denied. As the majority correctly notes, Central Bank derives 12 per cent of its demand deposits and 14.5 per cent of its savings deposits from Bank's service area. The balances involved are significant when compared to those of Bank in that area. In Bank's primary service area, Central Bank derives $7.21 million of savings deposits, $4.63 million of certificates of deposit, and $6.74 million of demand deposits. Bank, on the other hand, originates $8.99 million of savings deposits, $0.99 million of certificates of deposit, and $3.9 million of demand deposits over the same area. Thus, the competition existing between the two institutions is substantial, and I believe the Board should deny the application on this adverse factor alone. Moreover, Central Bank has the potential to increase this competition in the future. Its size and resource strength give it the capability to increase the scope of its operations, while its proximity and interest in the area serviced by Bank indicate that—in the absence of this affiliation—it is a reasonable likelihood that such expansion will occur within Bank's service area. The Denver banking market is already highly concentrated. I would not enhance this concentration through approval of the proposed acquisition. Nor do I find North Denver Bank to be a failing bank. While it may be floundering at the present time, its financial difficulties (which are not serious) can best be remedied through the bank supervisory process. In my view, it is not proper to use the Bank Holding Company Act as a means to acquire banks simply because they are in financial distress. Thus, for reasons more fully stated in my dissent to the application of State Street Boston Financial Corporation to acquire Union National Bank (1973 Federal Reserve B U L L E T I N 526), I would look to other bank supervisory agencies to remedy North Denver's problems. If it were ultimately necessary to permit its acquisition, it should be done by a means which would not have such anticompetitive results. Since I believe D. H. Baldwin Company should not be allowed to expand from a one-bank to a multibank holding company until it has determined the route its further expansion should take—as a manufacturer or as a bank holding company—I would not permit any additional bank acquisitions for this Applicant. Therefore, my dissent herein applies equally to the acquisition of the additional banks in Colorado for which Board approval was granted today. FIRST ALABAMA BANCSHARES, INC., BIRMINGHAM, ALABAMA O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K First Alabama Bancshares, Inc., Birmingham, Alabama, 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 the successor by merger to First National Bank of Athens, Athens, Alabama ( " B a n k " ) . The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the shares of Bank. Notice of the application affording opportunity for interested persons to submit comments and views has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U . S . C . 1842(c)). Applicant controls six banks with aggregate deposits of $702.3 million, representing about 10.5 per cent of total deposits of commercial banks in Alabama. 1 Acquisition of Bank (deposits of $25.6 million) would not significantly increase the concentration of banking resources in the State. Bank is the largest of two banking organizations located in Limestone County, which is the relevant banking market, with approximately 60 per cent of the market deposits. However, the smaller banking organization in the market is a branch of a bank which is a subsidiary of one of the largest holding companies in Alabama. It is unlikely that Applicant's acquisition of Bank would enable it to obtain a dominant position in the market in view of this affiliation. Applicant's closest banking subsidiary is located to the east in Huntsville, about twenty miles distant. Though some residents of Limestone County commute to work in Huntsville and the surrounding area, there seems to be little overlap between the two areas for deposits and loans. Consummation of this transaction would not appear to have a substantially adverse effect on existing competition. Nor does the Board find that there would be a substantially adverse effect on future competition caused by Applicant's acquisi1 A11 banking data are as of December 31, 1972, and reflect holding company formations and acquisitions by the Board through July 31, 1973. 757 LAW DEPARTMENT tion of Bank, particularly in light of Alabama's laws relating to branching. Applicant also has a mortgage banking subsidiary in Huntsville. However, this subsidiary has not been active in Limestone County, making only one loan there during the entire year of 1972. Consummation of the transaction would not eliminate substantial existing or future competition in mortgage banking. The Board concludes that competitive considerations of the application are consistent with approval. The financial condition, managerial resources, and future prospects of Applicant, its subsidiary banks, and Bank are satisfactory. Affiliation with Applicant should provide Bank with greater management depth and continuity, and this factor lends some support for approval of the application. Considerations relating to the convenience and needs of the community to be served also lend support for approval of the application since Applicant will enable Bank to provide an increased range of services. In its consideration of Applicant's proposal, the Board has noted covenants not to compete given Applicant by Bank's Directors. The covenants bind the Directors not to enter the banking business in the city of Athens for a period of five years. The Board finds that these provisions are reasonable and do not constitute a bar to approval of the application. The Board finds that consummation of the transaction is in the public interest. On the basis of the record the Application is approved for the reasons summarized above. The transaction shall not be consummated (a) before the thirtieth calendar date following the effective date of this Order or (b) later than three months after the effective date of this Order unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta pursuant to delegated authority. By order of the Board of Governors, effective September 21, 1973. Voting for this action: Chairman Burns and Governors Daane, Bucher, and Holland. Voting against this action: Governor Mitchell. Absent and not voting: Governors Brimmer and Sheehan. (Signed) CHESTER Secretary [SEAL] B. F E L D B E R G , of the Board. D I S S E N T I N G S T A T E M E N T OF GOVERNOR MITCHELL I would disapprove the application by First Alabama Bancshares, Inc., to acquire First National Bank of Athens. A Plan of Reorganization, incident to the subject proposal, contains a covenant not to compete which, by its terms, prohibits Bank's present directors from entering the banking business in Athens for a period of five years from the effective date of the proposed acquisition. In my view such covenants necessarily inhibit competition and should not be sanctioned by the Board. The reasons underlying this conclusion are set forth in detail in a Dissenting Statement, in which I was joined by Governor Brimmer, in the matter of Applicant's proposed acquisition of Citizens Bank of Guntersville which was approved by Board action of this date. FIRST ALABAMA BANCSHARES, INC., BIRMINGHAM, ALABAMA O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K First Alabama Bancshares, Inc., Birmingham, Alabama, 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 per cent or more of the voting shares of the successor by merger to Citizens Bank of Guntersville, Guntersville, Alabama. The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the shares of Bank. Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and none has been timely received. The Board has considered the application in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant, the second largest banking organization in Alabama, controls six banks with aggregate deposits of $702.3 million, which represent 10.3 per cent of total deposits in commercial banks in the State. 1 Consummation of the proposed transaction would add .20 percentage points to Applicant's share of total commercial bank deposits in Alabama and would not change Applicant's ranking among banking organizations in the State. Bank, the fifth largest of nine banks in the Marshall County banking market (approximated by Marshall County, Alabama), controls 11.3 per U n l e s s otherwise indicated, banking data are as of December 31, 1972, adjusted to reflect holding company acquisitions and formations approved through July 19, 1973. FEDERAL RESERVE BULLETIN • OCTOBER 1973 758 cent of total deposits in commercial banks in that market. 2 Applicant's nearest banking subsidiary is located at Huntsville, Alabama, approximately 40 miles from Bank. No meaningful competition exists between Bank and any of Applicant's present subsidiaries; nor does it appear likely that such competition will develop in the future, in view of the distances involved, the number of intervening banks, and Alabama's restrictive branching laws. In addition, Marshall County's relatively low population per bank office ratio indicates that de novo entry into the Marshall County banking market is not a likely prospect. In its consideration of Applicant's proposal the Board has considered the question of whether a covenant not to compete contained in a proposed Plan of Reorganization between Applicant and the present directors of Bank is contrary to the standards respecting competition and the public interest which the Board is required to consider under the Bank Holding Company Act. Having reviewed subject covenant and all facts of record, the Board finds that the covenant is consistent with such standards; and its presence in the record does not require denial of the application. The financial and managerial resources and future prospects of Applicant, its subsidiaries, and Bank are generally satisfactory. Considerations relating to the convenience and needs of the community are consistent with approval. It is the Board's judgment that consummation of the proposed transaction would be in the public interest, and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated (a) before the thirtieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Atlanta pursuant to delegated authority. By order of the Board of Governors, effective September 21, 1973. Voting for this action: Governors Daane, Sheehan, Bucher, and Holland. Voting against this action: Vice Chairman Mitchell and Governor Brimmer. Absent and not voting: Chairman Burns. (Signed) [SEAL] CHESTER B. FELDBERG Secretary of the Board. D I S S E N T I N G S T A T E M E N T OF GOVERNORS M I T C H E L L AND BRIMMER We would disapprove the application by First Alabama Bancshares, Inc., to acquire Citizens Bank of Guntersville. A Plan of Reorganization incident to subject proposal contains a covenant not to compete which, by its terms, prohibits Bank's present directors from entering the banking business in Guntersville for a period of five years from the effective date of the proposed acquisition. In our view, such covenants necessarily inhibit competition and should not be sanctioned by the Board. The purpose and effect of the covenant in this case is to preclude the possibility that the restricted individuals would provide support for an alternative source of commercial banking services in Guntersville in the near future. Such consequence is inherently anticompetitive. Our conclusion in this respect is premised upon the limitations on entry into commercial banking imposed by laws and regulations administered by Federal and State banking authorities. Commercial banking is a regulated industry in which statutory limitations on entry are imposed to achieve certain public interest objectives. These limitations, which are implemented principally through State and Federal chartering requirements, themselves inhibit competition. They influence fundamentally the structure and operation of commercial banking markets and temper significantly the force of those arguments traditionally advanced in the courts to justify covenants in cases involving business relationships where there are no regulatory barriers to entry. A bank holding company offeror, whose bank purchase proposal contains such a covenant would have difficulty in any case in establishing to our satisfaction that the anticompetitive effects of such a covenant " a r e clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served." It is our view that the record in the instant case fails to support the Board's conclusion that the subject covenant " i s consistent with such standards." We would deny the application. FIRST NATIONAL BOSTON CORPORATION, BOSTON, MASSACHUSETTS O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K 2 Data as of June 30, 1972. First National Boston Corporation, Boston, Massachusetts, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board's approval under § 3(a)(3) 759 LAW DEPARTMENT of the Act (12 U.S.C. 1842(a)(3)) to acquire all of the voting shares (exclusive of directors' qualifying shares) of the successor by merger to the Holyoke National Bank, Holyoke, Massachusetts ( " B a n k " ) . The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the shares of Bank. Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant, the largest banking organization and bank holding company in Massachusetts, controls one bank with aggregate deposits of $2.7 billion representing about 23 per cent of total deposits in commercial banks in the State. 1 Applicant's acquisition of Bank (deposits of $26.9 million) would increase its share of Statewide deposits by .2 percentage points and would not result in any significant increase in the concentration of banking resources in Massachusetts. 2 Bank is the fourth largest of fifteen commercial banking organizations competing in the Springfield-Chicopee-Holyoke banking market (which is approximated by the Springfield SMS A), controlling 4 per cent of market deposits. Applicant's closest existing subsidiary banking office is located more than 90 miles from Bank, and it appears that there is no significant existing competition between Bank and any of Applicant's subsidiary banking offices. Due to the distance separating bank and Applicant's existing subsidiary banking offices and Massachusetts' restrictive branching laws, it appears unlikely that any significant competition would develop between the institutions in the future. Additionally, the three largest banks in the market control more than 76 per cent of such deposits and consummation of the proposal would have a procompetitive effect by enhancing Bank's ability to compete with the larger institutions. b a n k i n g data are as of June 30, 1972, adjusted to reflect holding company formations and acquisitions approved through July 31, 1973. 2 By Order of this date, the Board approved Applicant's acquisition of both First Bank and Trust Company of Wellesley and Burlington Bank and Trust Company, which together control 0.2 percentage points of Statewide deposits. The financial and managerial resources and future prospects of Applicant and its subsidiary bank are satisfactory and consistent with approval. Bank faces a management succession problem. It is expected that Applicant will take steps to resolve Bank's management succession problem and this factor lends some weight toward approval of the application. Other considerations with respect to the financial and managerial resources and future prospects of Bank are consistent with approval. Applicant proposes to offer through Bank new and improved services, including increased interest rates on savings deposits, additional types of consumer installment loans, and automated payroll services. Since some of the proposed new services are not currently available in Holyoke, consummation of this proposal will increase the convenience of Holyoke residents. Accordingly, considerations relating to the convenience and needs of the communities to be served are consistent with and lend some weight toward approval of the application. It is the Board's judgment that the transaction is in the public interest and should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated (a) before the thirtieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Boston pursuant to delegated authority. By order of the Board of Governors, effective September 4, 1973. Voting for this action: Chairman Burns and Governors Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Governors Mitchell and Daane. [SEAL] (Signed) T H E O D O R E E . A L L I S O N Assistant Secretary of the Board. FIRST NATIONAL BOSTON CORPORATION, BOSTON, MASSACHUSETTS O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K S First National Boston Corporation, Boston, Massachusetts, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board's approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire all of the voting shares of the following banks located in Massachusetts: (1) First Bank and Trust Company of Wellesley, Wellesley (' 'Wellesley B a n k " ) ; and (2) Burlington Bank and Trust Company, Burlington ("Burlington B a n k " ) . 760 FEDERAL RESERVE BULLETIN • OCTOBER 1973 Notice of the applications, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and none has been timely received. The Board has considered the applications in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant, the largest banking organization and bank holding company in Massachusetts, controls one bank with aggregate deposits of $2.7 billion, representing about 23 per cent of total deposits in commercial banks in the State. 1 Consummation of the two proposals would increase Applicant's share of commercial bank deposits by .2 percentage points, 2 and this would not result in a significant increase in the concentration of banking resources in the State. Wellesley Bank (deposits of $8.6 million) and Burlington Bank (deposits of $12.8 million) are the 58th and 46th largest of 69 commercial banks in the Boston banking market, which is approximated by the Boston SMS A, and control, respectively, 0.1 and 0.2 per cent of market deposits. Applicant's present subsidiary bank, the First National Bank of Boston ("First National"), is located in the Boston banking market, where it controls 32.7 per cent of deposits in commercial banks. First National is located 10 miles from Wellesley Bank and 13 miles from Burlington Bank. Although Wellesley Bank and Burlington Bank are located in the same market as First National, it does not appear that a significant amount of existing competition would be eliminated upon consummation of these proposals. This conclusion is based, in part, upon the fact that First National's banking business is largely wholesale in nature while the business of Wellesley Bank and Burlington Bank, both single-office banks, is a retail business. First National derives 74 per cent of its total deposits and 64 per cent of its IPC demand deposits from accounts in excess of $100,000. First National derives less than 3.0 per cent, or approximately $48 million, of its total demand and savings deposits from Wellesley Bank's primary service area. Similarly, First National derives 1.3 per cent, or about $24 million, of its total demand and savings deposits from Burlington Bank's primary service area. Neither b a n k i n g data are as of June 30, 1972, adjusted to reflect holding company formations and acquisitions approved through July 31, 1973. 2 By Order of this date, the Board approved Applicant's acquisition of the successor by merger to the Holyoke National Bank, Holyoke, Massachusetts, which controls 0 . 2 percentage points of Statewide deposits. Wellesley Bank nor Burlington Bank derives a significant amount of their loans or deposits from First National's primary service area. Although First National is located in the same market as Wellesley Bank and Burlington Bank, First National is restricted by State law from branching into the County in which each Bank is located. Several other independent banks are located in both Wellesley Bank's and Burlington Bank's service area and County, and it does not appear that Applicant's acquisition of either Bank would result in barriers to entry into those areas by other banking organizations. Further, it does not appear that Applicant's entry into either Bank's market by an alternative acquisition of a small independent bank would present significantly different competitive considerations. Although Applicant has the financial and managerial resources to enter either Wellesley Bank's or Burlington Bank's service area de novo, the Board views the proposed acquisitions as " f o o t h o l d " entries that are tantamount to de novo entry in view of the small size of each Bank, both absolutely and relatively. In addition, since Wellesley Bank is the smallest bank in a service area where three banks that are holding company subsidiaries control in excess of 56 per cent of deposits, Applicant's acquisition of Wellesley Bank would likely increase that Bank's competitive effectiveness. Similarly, Burlington Bank controls less than 7 per cent of deposits in an area where two banks that are holding company subsidiaries control more than 60 per cent of area deposits. Accordingly, Applicant's acquisition of Burlington Bank would likely increase that Bank's ability to compete with the larger banks located in its area, particularly in view of considerations relating to its financial and managerial resources, discussed hereinafter. On balance, therefore, the Board finds that no significant potential competition would be eliminated upon consummation of these proposals. The financial and managerial resources and future prospects of Applicant and First National are satisfactory and consistent with approval of the application. Wellesley Bank has experienced a significant growth in deposits in the past four years, yet its capital has declined. Accordingly, Applicant's assurance to provide Wellesley Bank with additional capital will enhance that Bank's financial resources and future prospects, and this consideration lends some weight toward approval. The financial and managerial resources and future prospects of Burlington Bank are considered to be poor. Bank has experienced substantial loan losses since 1970, its capital-to-assets ratio has declined and it is presently in need of capital. Further, in LAW DEPARTMENT view of Bank's difficulties, management is in need of strengthening. Applicant proposes to increase Burlington Bank's capital by a minimum of $300,000 within six months of consummation and to provide managerial strength to Burlington Bank. The future prospects of Burlington Bank with Applicant's assistance appear to be favorable, and these considerations provide strong weight toward approval of the application. There is no evidence that any major banking needs of the areas served by Wellesley Bank or Burlington Bank are currently going unserved. However, Applicant proposes to offer, through Wellesley Bank, investment management services for the small investor and revolving 48-month car loans which are new services not currently provided in the area. Convenience and needs factors with respect to Wellesley Bank are consistent with and lend some weight toward approval. Applicant proposes to increase and improve the services currently offered by Burlington Bank in providing overdraft checking, revolving 48-month car loans, credit card and trust services. Updating Burlington Bank's services should make it more competitive and more responsive to the needs of its customers. These considerations provide weight toward approval of the acquisition of Burlington Bank. It is the Board's judgment that the proposed transactions are in the public interest and should be approved. On the basis of the record, the applications are approved for the reasons summarized above. The transactions shall not be consummated (a) before the thirtieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Boston pursuant to delegated authority. By order of the Board of Governors, effective September 4, 1973. Voting for this action: Chairman Burns and Governors Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Governors Mitchell and Daane. [SEAL] (Signed) T H E O D O R E E . A L L I S O N Assistant Secretary of the Board. D I S S E N T I N G S T A T E M E N T OF G O V E R N O R BRIMMER I would deny both applications. The Board has today approved the acquisition by the dominant banking organization in the Boston market and the State of two additional banks located in the same banking market. In so doing, the Board has chosen 761 to ignore the adverse effects such acquisitions will have on both existing and potential competition and the resulting increase in deposit concentration in an already highly concentrated market. The majority states that First National does not compete with either Wellesley Bank or Burlington Bank due to the wholesale nature of the former versus the retail nature of the latter. However, it is clear from the record that (with respect to several categories of deposits under $20,000) First National derives three to four times the volume of deposits from Wellesley Bank's primary service area as does Wellesley Bank. Further, First National had approximately $3.8 million in consumer installment loans under $20,000 from Wellesley Bank's primary service area whereas Wellesley Bank had only $0.9 million in loans of that category from the same area. In Burlington Bank's primary service area, First National derived $3.1 million in deposits from business and individual demand deposit accounts under $20,000, whereas Burlington Bank had $2.0 million from the same category of accounts in the same area. These data amply demonstrate that Applicant's acquisition of either Wellesley Bank or Burlington Bank would eliminate a significant amount of existing competition. It is clear that Applicant seeks to expand its retail banking activity in both Norfolk and Middlesex Counties. Until recently, Applicant consciously chose to emphasize large loans to major corporations. Now it wants to compete more for consumer and small business loans. So the only real question concerns the way in which it can enter these markets. Applicant is undoubtedly preeminently capable of expanding by entering such areas de novo. To permit the largest banking organization in the State of Massachusetts to expand by acquisition of either Wellesley Bank or Burlington Bank not only eliminates Applicant as a potential de novo entrant into these areas, but it also eliminates these two banks as possible vehicles for deconcentrating the already highly concentrated Boston market. Further, if the largest banking organization in the market and the State is not required to expand de novo, it seems unlikely any other banking organization will be so limited. Accordingly, I believe that significant future competition will be eliminated by the Board's approval. The Bank Holding Company Act requires the Board to deny any acquisition whose effect in any section of the country may be substantially to lessen competition . . . unless it finds that the anticompetitive effects of the proposed transaction are clearly outweighted in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served. (Emphasis added.) FEDERAL RESERVE BULLETIN • OCTOBER 1973 762 I find that the asserted benefits to the public to be derived from consummation of the proposal are mainly fictional, and they do not outweigh the anticompetitive effects of the acquisition of Wellesley Bank. Consequently, I interpret the Act as requiring disapproval of such acquisition. The majority stresses Burlington Bank's need for financial and managerial support, but it does not consider whether such support can be obtained in a less anticompetitive manner such as reliance on the powers of the responsible bank supervisory authorities. As I stated in an earlier case involving a proposal to acquire a Massachusetts bank, 1 before the Board can approve such an anticompetitive acquisition, it must be demonstrated that the benefit to the public cannot be accomplished by a less anticompetitive alternative. 2 In my view, no such showing has been made in this case. The Board is required by the Bank Holding Company Act to consider in each application to acquire a bank " t h e financial and managerial resources and future prospects of . . . the banks concerned. . . . " However, the Act was intended as a "safeguard against undue concentration of control of banking activities" 3 not as a substitute for the bank supervisory process. The bank supervisory process is the appropriate method for resolving Burlington Bank's financial and managerial difficulties. Use of the supervisory process instead of the Bank Holding Company Act could eliminate the need for these anticompetitive acquisitions and thereby result in greater net benefits to the public. In conclusion, the acquisition of either Wellesley Bank or Burlington Bank would have significant anticompetitive effects that are not outweighed by public interest considerations. Therefore, I would deny both applications. NORTHWEST BANCORPORATION, MINNEAPOLIS, MINNESOTA O R D E R D E N Y I N G A C Q U I S I T I O N OF B A N K Northwest Bancorporation, Minneapolis, Minnesota, 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 90 per *In the matter of the application of State Street Boston Financial Corporation, 1973 Federal Reserve BULLETIN 528 (Dissenting Opinion). 2 S e e U.S. v. Philadelphia National Bank, 399 U . S . 350 (1970). 3 S. Rep. No. 91-1084, 91st Cong., 1st Sess. 2 (1970). cent or more of the voting shares of The First National Bank of Dubuque, Dubuque, Iowa ("Bank"). Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and all those received have been considered in light of the factors set forth in § 3(c) of the Act (12 U . S . C . 1842(c)). Among the comments and objections was a request for a hearing. The Board decided to proceed on the basis of written submissions and denied the request for a hearing. 1 Applicant controls 79 banks located variously in Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Wisconsin. Within Iowa, Northwest Bancorporation controls four banks with aggregate deposits of $485 million, representing 5.8 per cent of the total commercial bank deposits in that State. 2 Upon consummation of the acquisition of Bettendorf Bank and Trust Company ($28.7 million in deposits) and Security State Bank ($14.3 million in deposits), Northwest Bancorporation would control nearly $528 million in deposits and 6.3 per cent of the total commercial bank deposits in Iowa. Applicant is the largest banking organization and bank holding company in Iowa and acquisition of Bank ($74.6 million in deposits), the tenth largest banking organization in Iowa, would increase Applicant's share of Statewide deposits by nearly one percentage point. There is no significant existing competition between Bank and Applicant's existing and prospective banking subsidiaries. Applicant's closest banking subsidiary to Bank will be located about 78 miles south, in Bettendorf. Accordingly, the Board concludes that no significant existing competition would be eliminated between Bank and Applicant's banking subsidiaries upon consummation of this proposal. In the Board's opinion, however, approval of this application would have significantly adverse effects on potential competition with respect to the Dubuque SMS A, the relevant banking market. Bank is the second largest banking organization ^ h e principal arguments raised in the request for a hearing and in the subsequent written submissions have been previously considered by the Board in its Order effective August 2, 1973 (38 Federal Register 21530), approving the applications of Northwest Bancorporation to acquire two Iowa banks, Bettendorf Bank and Trust Company, and Security State Bank. 2 All banking data, unless otherwise indicated, are as of December 31, 1972, and reflect bank holding company formations and acquisitions approved by the Board through July 31, 1973. LAW DEPARTMENT in the relevant market, controlling over 26 per cent of market deposits. Bank has the largest market share of IPC deposits of under $100,000, over 28 per cent (as of June 30, 1972). In the Dubuque banking market the three largest banks together control about 80 per cent of market deposits. Acquisition of Bank by Applicant would seem to solidify this market structure and lessen the likelihood of the emergence of new competitive forces in that market. De novo entry into the Dubuque market is a reasonable alternative in view of the fact that Dubuque is a regional center for the tri-State area (eastern Iowa, northwestern Illinois, and southwestern Wisconsin), and its future prospects appear to be favorable in view of the facts of record, including the following: Population growth in the market; renovation of the central business district; completion of an expansive new shopping center; and establishment of two industrial parks, a 215acre park near the Mississippi River and a second park of about 400 acres eight miles west of the city. In light of Applicant's market extension interests and capabilities for entry, and the prospects of the Dubuque SMS A, the Board is of the view that Applicant can be viewed as one of the more likely de novo entrants. Furthermore, there are, in fact, foothold means of entry into the market which are less anticompetitive than is this proposal. Given the character of the Dubuque banking market, the probability of Applicant as a potential entrant into such market and the opportunities for de novo or " f o o t h o l d " entry, the Board is of the view that approval of this proposal would have a significantly adverse effect on potential competition. Another factor arguing against approval of this application is the fact that acquisition of Bank by Applicant would eliminate the possibility that Bank would develop into the lead bank of a regional bank holding company. It certainly would appear to have the managerial and financial resources to so develop since it is the tenth largest banking organization in the State. At present, there is no multibank holding company representation in the entire northeast section of Iowa. The Department of Justice has commented on this application and recommended that it be denied due to the elimination of existing competition as between Applicant's mortgage banking subsidiary, Iowa Securities Company, with an office in Dubuque, and Bank. In response, Applicant contends that the residential real estate mortgage business of Bank and Iowa Securities Company in the Dubuque area does not constitute a substantial volume of business; and, furthermore, Bank and 763 Iowa Securities Company " a r e not in the same residential mortgage loan m a r k e t . " However, it is the Board's view that approval could, given the structural changes taking place in mortgage lending, eliminate significant competition in the 1-4 family mortgage origination market in the Dubuque SMS A. Accordingly, the Board concludes that the competitive factors of this application weigh against approval. The financial condition and managerial resources and future prospects of Applicant, its existing subsidiary banks, and Bank are satisfactory and consistent with approval of the application. However, these factors do not outweigh the anticompetitive effects flowing from this proposal. There is no indication in the record that the banking needs of the relevant market are not being met. Accordingly, although considerations relating to the convenience and needs of the communities to be served are consistent with approval they do not outweigh the adverse competitive effects of the proposal. It is the Board's judgment that consummation of the proposed acquisition would not be in the public interest and that the application should be denied. On the basis of the record, the application is denied for the reasons summarized above. By order of the Board of Governors, effective September 19, 1973. Voting for this action: Vice Chairman Mitchell and Governors Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns and Governors Daane and Brimmer. (Signed) [SEAL] CHESTER Secretary B. F E L D B E R G , of the Board. C O N C U R R I N G S T A T E M E N T OF G O V E R N O R S M I T C H E L L AND S H E E H A N We concur in the Board's action denying Applicant's proposal to acquire the First National Bank of Dubuque on the grounds that consummation of the proposal would have significantly adverse effects on potential competition in the Dubuque area. However, we disagree with the conclusion that the transaction would result in the elimination of significant existing competition in the 1 -4 family Dubuque mortgage banking market as between Bank and Applicant's mortgage banking subsidiary, Iowa Securities Company. The facts of record indicate that Bank's 1-4 family mortgage loans are almost entirely conventional loans which are not government insured. On the other hand, virtually all of Iowa Securities Company's mortgages are FHA or VA insured. In our view, it is clear that Bank and Iowa Securities Company each serves a distinct type of cus- 764 FEDERAL RESERVE BULLETIN • OCTOBER 1973 tomer and provides mortgage loans of different varieties and, accordingly, no meaningful present competition would be eliminated between the two institutions in the 1-4 family mortgage market. However, we find that the other anticompetitive effects of the proposal, which are described in the majority's statement, are not outweighed in the public interest by any considerations reflected in the record. ORDERS UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT SOUTHERN BANCORPORATION, INC., GREENVILLE, SOUTH CAROLINA O R D E R A P P R O V I N G F O R M A T I O N OF B A N K HOLD- I N G C O M P A N Y A N D A C Q U I S I T I O N OF W O R L D CEPTANCE CORPORATION, SERVICE, I N C . , AND PIEDMONT AC- PREMIUM S B T REAL ESTATE, INC. Southern Bancorporation, Greenville, South Carolina, 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)), for the formation of a bank holding company through acquisition of 100 per cent of the voting shares of Crescent Bank and Trust Company, Greenville, South Carolina, the successor by merger to Southern Bank and Trust Company, Greenville, South Carolina ( " B a n k " ) . The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the shares of Bank. At the same time, Applicant has applied in separate applications for the Board's approval, under section 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the Board's Regulation Y, to acquire all of the voting shares of: (1) Taylor Acceptance Corporation, the successor by merger to World Acceptance Corporation ("World Acceptance"); (2) Paramount Premium Service, Inc., the successor by merger to Piedmont Premium Service, Inc. ("Piedmont Premium"); and (3) Sobanco Properties, Inc., the successor by merger to SBT Real Estate, Inc. ( " S B T " ) ; all located in Greenville, South Carolina. World Acceptance engages in the activities of making consumer finance loans and, in the States of Georgia and South Carolina, also acting as agent for the sale of credit related life, accident and disability insurance, and credit related property and casualty insurance issued in connection with extensions of credit by World Acceptance's consumer finance offices. Piedmont Premium provides loan financing for the payment of casualty insurance premiums under premium service agreements. SBT, through its ownership of all the outstanding stock of Sunland Life Insurance Company, Phoenix, Arizona ("Sunland L i f e " ) , acts as reinsurer for credit life, accident and health insurance directly related to extensions of credit. Such activities have been determined by the Board to be closely related to banking (12 CFR 225.4(a)(1),(9), and (10)). Notice of receipt of the applications has been given in accordance with sections 3 and 4 of the Act, and the time for filing comments and views has expired. The Board has considered the applications and all comments received in the light of the factors set forth in section 3(c) of the Act (12 U.S.C. 1842(c)), and the considerations specified in s e c t i o n 4 ( c ) ( 8 ) of the Act (12 U . S . C . 1843(c)(8)). Applicant is a nonoperating corporation formed for the purpose of becoming a bank holding company. Bank is the sixth largest banking organization in South Carolina, with deposits of approximately $118 million, and upon Board approval would become the fourth largest bank holding company in the State, controlling 3.7 per cent of total commercial bank deposits in South Carolina. 1 Consummation of the proposal herein would neither alter existing banking competition nor significantly affect potential competition and would not result in an increase in the concentration of banking resources in any relevant area. Considerations relating to the financial and managerial resources and future prospects of Applicant and Bank appear to be satisfactory and consistent with approval. Considerations relating to the convenience and needs of the communities involved, with respect to the acquisition of Bank, are consistent with approval. It is the Board's judgment that consummation of the transaction would be in the public interest and that the acquisition of Bank should be approved. World Acceptance has total assets of $6 million, and net loan receivables of $5.6 million, as of December 31, 1972. It operates 49 consumer finance offices, 19 of which are in South Carolina, 17 in Georgia, 2 and 13 in Texas. Applicant's banking subsidiary has eight offices located in the *A11 banking data are as of December 31, 1972, and reflect bank holding company formations and acquisitions approved by the Board through July 31, 1973. 2 World Finance Corporation of Dawson, Dawson, Georgia, is a shell corporation. All of its assets were sold on August 1, 1972, to Kentucky Finance Corporation, Inc. 765 LAW DEPARTMENT relevant market area, which is the GreenvillePickens SMSA. In that market, World Acceptance operates five consumer finance offices. However, World Acceptance is not a large factor in the small personal loan market as its market share is less than 1 per cent, represented by outstandings of $800,000, as of December 31, 1972. Competing in the same market are 58 consumer finance companies with 76 offices and 11 other commercial banks with 63 offices. Neither Bank nor World Acceptance is dominant in the relevant market. Considering the large number of lending alternatives, the Board is of the opinion that Applicant's acquisition of World Acceptance would not have a significant effect on existing or potential competition in the small consumer instalment loan market. World Acceptance also acts as an agent for the sale of credit insurance related to loans it originates. Due to the limited nature of this activity, Applicant's acquisition of World Acceptance would not appear to have a significantly adverse effect on competition in this product line. Similarly, with respect to the acquisition of Piedmont Premium, it appears that in view of the limited nature of its activity, the acquisition of Piedmont by Applicant would not have any significant adverse competitive consequences. SBT was organized in 1966 for the principal purpose of purchasing banking facilities utilized by Bank and leasing such facilities to Bank. In 1967, SBT acquired all the shares of Sunland Life, an Arizona chartered company which engages solely in acting as reinsurer for certain credit life, accident and health insurance directly related to extensions of credit by Bank. The ownership of shares of a company engaged in holding or operating properties used wholly or substantially by any banking subsidiary of a bank holding company is permissible under section 4(c)(1)(A) of the Act without the need for prior Board approval. Accordingly, this Order considers only the proposed insurance underwriting activities of SBT. As of December 31, 1972, SBT had total assets of $845,000, of which $145,000 represented investment in the underlying equity of its insurance subsidiary and for the year ending that same date, SBT received gross premiums of $530,000. Approval of Applicant's proposed acquisition does not appear to eliminate any competition in the underwriting of credit life and disability insurance. In adding credit life underwriting to the list of permissible activities for bank holding companies, the Board stated that, " T o assure that engaging in the underwriting of credit life and credit accident and health insurance can reasonably be expected to be in the public interest, the Board will only approve applications in which an Applicant demonstrates that approval will benefit the consumer or result in other public benefits. Normally such a showing would be made by a projected reduction in rates or increase in policy benefits due to bank holding company performance of this service." Applicant has committed itself, within 30 days following consummation of the proposed acquisition, to reduce the rates charged by Sunland Life to its policy holders by 15 per cent on all credit life insurance policies, and by 5 per cent on all credit accident and health insurance policies written by it in all States in which it would offer such policies (Georgia and South Carolina). It is the Board's judgment that these benefits to the public outweigh any possible adverse effects. In its consideration of this application, the Board has examined covenants not to compete contained in employment agreements with the principal executives of World Acceptance and Piedmont. The Board finds that the provisions of these covenants (limited to three years and to localities where Southern Bancorporation would be engaged in the licensed finance business and the licensed insurance premium service business) are reasonable in scope, duration, and geographic area and are consistent with the public interest. As the United States District Court for the Southern District of New York has stated in Syntex Laboratories, Inc. v. Norwich Pharmacol Company3: While agreements not to compete have at times been used for the unlawful purpose of monopolizing a part of trade or commerce . . . it is hornbook law that a covenant not to compete ancillary to the sale of a business (or a part of a business), when reasonably limited as to time and territory, does not fall within the prohibitions of the Sherman Act. The question in every case is whether the restraint is reasonably calculated to protect the legitimate interest of the purchaser in what he has purchased, or whether it goes so far beyond what is necessary as to provide a basis for the inference that its real purpose is the fostering of monopoly. 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, or unsound banking practices. Approval of the applications would give World Acceptance access to Applicant's financial resources and enhance World Acceptance's competitive effectiveness. Based upon the foregoing and other considerations reflected in the record, the Board has determined that the considerations affecting the competitive factors under section 3(c) of the Act and the balance of the public interest 3 3 1 5 F. Supp. 45, at 56 (1970). FEDERAL RESERVE BULLETIN • OCTOBER 1973 766 factors the Board must consider under section 4(c)(8) are favorable and that consummation of these proposals would be in the public interest. Accordingly, the applications are approved for the reasons summarized above. The acquisition of Bank shall not be consummated (a) before the thirtieth calendar day following the effective date of this Order, or (b) later than three months after the effective date of this Order; and the acquisitions of World Acceptance, Piedmont Premium, and SBT shall be consummated not later than three months after the effective date of this Order, unless such three month periods are extended for good cause by the Board or by the Federal Reserve Bank of Richmond pursuant to delegated authority. The determinations as to the activities of World Acceptance, Piedmont Premium, and SBT is subject to the conditions set forth in § 225.4(c) of Regulation Y and to the Board's authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the B o a r d ' s r e g u l a t i o n s and o r d e r s issued thereunder, or to prevent evasion thereof. By order of the Board of Governors, effective September 19, 1973. Approval of acquisition of Southern Bank and Trust Company and SBT Real Estate. Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns and Governor Daane. Approval of acquisition of World Acceptance Corporation and Piedmont Premium Service. Voting for this action: Governors Sheehan, Bucher, and Holland. Voting against this action: Vice Chairman Mitchell and Governor Brimmer. Absent and not voting: Chairman Burns and Governor Daane. (Signed) T H E O D O R E E . A L L I S O N , Assistant Secretary of the Board. [SEAL] D I S S E N T I N G S T A T E M E N T OF GOVERNOR BRIMMER I would deny the applications by Southern Bancorporation to acquire World Acceptance and Piedmont. My decision is based on the existence of covenants not to compete contained in the proposed employment contracts between World Acceptance and Piedmont and their principal executives. These two individuals have agreed, for a three year period following termination of their employment, not to be associated with a competitor of World Acceptance or Piedmont. In effect, such action would preclude the possibility of these individuals undertaking to provide an alternative source of consumer finance or insurance premium services in those markets in which Southern Bancorporation would offer such services. The major ity has presented no evidence to show that these covenants are in the public interest. For reasons stated more fully in my dissents to the application of Orbanco, Inc., to acquire Far West Security Company (59 Federal Reserve B U L L E T I N 368-369 (1973)), and the application of CBT Corporation to acquire General Discount Corporation (59 Federal Reserve B U L L E T I N 471 (1973)), it is my view such covenants do not serve to promote competition and should not receive the sanction of the Board. I would deny these applications. PIEDMONT CAROLINA FINANCIAL SERVICES, INC., DAVIDSON, NORTH CAROLINA ORDER A P P R O V I N G FORMATION OF B A N K ING C O M P A N Y AND ACQUISITION OF HOLD- CONSUMER FINANCE COMPANIES Piedmont Carolina Financial Services, Inc., Davidson, North Carolina, has applied for the Board's approval under § 3(a)(1) of the Bank Holding Company Act (12 U . S . C . 1842(a)(1)) of formation of a bank holding company through acquisition of 100 per cent (less directors' qualifying shares) of the voting shares of the successor by merger to Piedmont Bank and Trust Company, Davidson, North Carolina ( " B a n k " ) . The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the shares of Bank. At the same time, Applicant has applied for the Board's approval under § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the Board's Regulation Y to acquire (1) Carolina Finance Company of Charlotte, Inc., Charlotte, North Carolina (''Charlotte"), (2) B & M Finance C o m p a n y , Winston-Salem, North Carolina ("Winston-Salem"), and (3) Credit Loan and Finance Company, Inc., Greensboro, North Carolina ( " G r e e n s b o r o " ) . These three companies are consumer finance companies making personal loans up to a maximum of $900 and also engage in the selling as agent of credit life and credit health and accident insurance directly related to extensions of credit by them. Such activities have been determined by the Board to be closely related to banking (12 CFR 225.4(a)(1) and (9). Notice of receipt of the applications has been given in accordance with § § 3 and 4 of the Act and the time for filing comments and views has expired. The Board has considered the applications and all comments received in light of the factors LAW DEPARTMENT set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and considerations specified in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). Applicant, a newly formed corporation with no operating history, was organized by the officers and directors of Bank. Bank (deposits of $29 million) is one of the smaller banks in its market area. 1 Since this formation involves the acquisition by Applicant of one bank, consummation of the transaction would have no adverse effect on competition in commercial banking. Considerations relating to the financial and managerial resources and prospects of Applicant depend primarily on those of Bank, which appear to be generally satisfactory and consistent with approval of the application. Considerations relating to the convenience and needs of the communities to be served are also consistent with approval of the transaction. It is the Board's judgment that consummation of the transaction, insofar as regards the acquisition of Bank, would be in the public interest. Both Winston-Salem and Greensboro compete in the same geographic market which is approximated by the Greensboro-Winston-Salem-High Point Standard Metropolitan Statistical Area ( " S M S A " ) . However, the effect on competition in this market of consummation of this transaction is minimal in view of the large number of consumer finance companies in the area along with numerous commercial banks which make small personal loans and the fact that neither WinstonSalem nor Greensboro occupies a significant position in the market. They had total receivables of $366 thousand and $313 thousand respectively as of March 31, 1973. Moreover, both consumer finance companies are owned by the same shareholders so that substantial competition between the two probably could not be expected. Bank does not compete in this market for small personal loans and consummation of the proposal would not eliminate significant existing or potential competition between Greensboro and Winston-Salem on the one hand and Bank on the other. Charlotte competes for small personal loans in the Charlotte SMSA where Bank also has offices. However, there are 20 other commercial banks and 41 other consumer finance companies in the area which either do or could make small personal loans. Moreover, neither Bank nor Charlotte has a significant market share in the relevant market with the latter having total receivables of $385 thousand as of March 31, 1973. Consummation 1 All banking data are as of December 31, 1972. 767 of the transaction would not eliminate significant existing or potential competition in this market. 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, unsound banking practices, or other adverse effects on the public interest. It does appear that consummation of the transaction could result in the three consumer finance companies having greater access to capital, thereby enabling them to become stronger competitive forces in their respective market areas. Additionally, it appears that the three finance companies are managed by an individual in his mid-seventies. Affiliation of the three companies with Applicant should provide continuity and depth of management for the finance companies. The three finance companies act as agents for the sale of credit insurance related to the loans they originate. Due to the limited nature of this activity, Applicant's acquisition of the three companies would not appear to have a significantly adverse effect on competition in this product line. At the present time, the three finance companies sell level term credit life and credit health and accident insurance in connection with personal loans they make. However, the Applicant has committed itself to have the three companies cease selling level term credit life and credit accident and health insurance upon consummation of this transaction and sales of credit life and credit accident and health insurance will be on a declining term basis. Based upon the foregoing and other considerations reflected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under § 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination is subject to the conditions set forth in § 225.4(c) of Regulation Y and to the Board's authority to require such modification or termination of the activities of the 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 B o a r d ' s r e g u l a t i o n s and o r d e r s issued thereunder or to prevent evasion thereof. In its consideration of this matter, the Board noted that Bank engages through a wholly-owned subsidiary in general insurance agency activities at off-premise locations including one office in a community where Bank does not operate any branches. It appears that Bank itself could directly perform these activities at those locations. The agency would be considered an operations subsidiary of Bank if Bank were a State member bank FEDERAL RESERVE BULLETIN • OCTOBER 1973 768 (Interpretations, p a r a g r a p h 4 2 1 5 , 12 C F R 250.141). 2 Accordingly, pursuant to § 4(c)(5) of the Bank Holding Company Act and § 225.4(e) of Regulation Y, such activities do not require the approval of the Board. On the basis of the record, the applications to acquire Bank and the three insurance agencies are approved for the reasons summarized above. The acquisition of Bank shall not be consummated before the thirtieth calendar date following the effective date of this Order nor shall acquisition of Bank or the three consumer finance companies be made later than three months after the effective date of this Order unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Richmond. By order of the Board of Governors, effective September 4, 1973. Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns. (Signed) CHESTER Secretary [SEAL] B. F E L D B E R G , of the Board. BOARD REVIEW UNDER THE GRANDFATHER PROVISO IN SECTION 4(a)(2) OF BANK HOLDING COMPANY ACT THE REPUBLIC NATIONAL BANK OF DALLAS, DALLAS, TEXAS DETERMINATION REGARDING "GRANDFATHER" PRIVILEGES U N D E R BANK COMPANY HOLDING ACT Section 4 of the Bank Holding Company Act (12 U.S.C. 1843) provides certain privileges ("grandfather" privileges) with respect to nonbanking activities of a company that, by virtue of the 1970 Amendments to the Bank Holding Company Act, became subject to the Bank Holding Company Act. Pursuant to § 4(a)(2) of the Act, a "company covered in 1970" may continue to engage, either directly or through a subsidiary, in nonbanking activities that such a company was lawfully engaged in on June 30, 1968 (or on a date subsequent to June 30, 1968, in the case of activities carried on as a result of the acquisition by such company or subsidiary, pursuant to a binding written contract entered into on or before June 30, 1968, of another company engaged in 2 If, however, State law did not authorize Bank to perform the activities directly, but rather only authorized the investment in shares of the insurance agency, such agency would not be permissible on the basis of § 4(c)(5) and § 225.4(e). such activities at the time of the acquisition), and has been continuously engaged in since June 30, 1968 (or such subsequent date). Section 4(a)(2) of the Act provides, inter alia, that the Board of Governors of the Federal Reserve System may terminate such grandfather privileges if, having due regard to the purposes of the Act, the Board determines that such action is necessary to prevent an undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices. With respect to a company that controls a bank with assets in excess of $60 million on or after December 31, 1970, the Board is required to make such a determination within a two year period. Notice of the Board's proposed review of grandfather privileges of The Republic National Bank of Dallas, Dallas, Texas, and an opportunity for interested persons to submit comments and views or request a hearing, has been given (37 F.R. 22414 and 25204). The time for filing comments, views, and requests has expired, and all those received have been considered by the Board in light of the factors set forth in § 4(a)(2) of the Act. The Republic National Bank of Dallas ("Registrant"), Dallas, Texas, became a bank holding company on December 31, 1970, as a result of the 1970 Amendments to the Act by virtue of Registrant's indirect control of approximately 30 per cent of the voting shares of Oak Cliff Bank and Trust Company, Dallas, Texas (assets of about $96 million, as of December 31, 1970). On July 13, 1973, the Board announced its finding that Registrant, a national bank, had authority to continue the activities of its six direct subsidiaries. The Board noted in its announcement that it was considering the question of Registrant's entitlement to grandfather privileges with respect to activities conducted by the Howard Corporation, et al., a group of corporations all the shares of which are held for the benefit of the shareholders of Registrant and, by virture of § 2(g)(2) of the Act, are deemed to be controlled by Registrant. On the evidence before it, the Board makes the following findings. Since 1928 the shareholders of Registrant have been the beneficiaries of an affiliated group of corporations under a trusteeship. These organizations, now known as " T h e Howard Corporation", a Texas trust which will terminate in 1978, was established in 1928. The trusteeship was the outgrowth of a consolidation in which assets ineligible for retention by a national bank were set aside in a separate trust for the benefit of the shareholders of Registrant. The trusteed corporations also have stock interests in 21 other LAW DEPARTMENT Texas banks. 1 The net income for the Howard Corporation in 1971 amounted to over $3 million, which includes $1.4 million received as the result of equity interests in the earnings of Registrant and other companies. The consolidated assets for all the companies in the group amounted to $153 million as of December 31, 1971. Registrant claims grandfather privileges for various activities. Republic Commerce Company , 2 Dallas (assets of $24 million as of December 31, 1971), holds 100 per cent of the voting shares of Republic Money Orders, Inc., Dallas, the shares of which were received from the Savings and Profit sharing Retirement Fund for the employees of Registrant, which fund had held the stock from 1959 to 1971. Republic Money Orders owns 100 per cent of the stock of Republic Money Orders of California, Inc., Dallas, and each of these firms is engaged in the business of selling and servicing money orders and travelers checks. The combined assets of the two companies as of December 31, 1971 amounted to about $33 million. It appears that Registrant may continue its interests in these companies on the basis of grandfather privileges. Republic National Bank Building Corporation 3 (assets of $706,000 as of December 31, 1971), which was acquired in 1951, operates and manages two buildings occupied by Registrant. Registrant need not rely on grandfather privileges for the continuation of its interest in this company inasmuch as it appears that the activities of the company are permissible on the basis of § 4(c)(1)(A). 4 x The Board's action herein is based on Registrant's claim that it controlled only one bank on June 30, 1968, and therefore became a bank holding company covered by the Bank Holding Company Act as a result of the enactment of the 1970 Amendments to the Act. The record shows that Registrant has interests in each of 21 other banks ("minority" banks), interests ranging from 6 to 24.98 per cent. The action herein does not constitute a determination by the Board that any of the minority banks is or is not, or may become a subsidiary of Registrant. Nor does the action herein indicate that the Board would in the future permit Registrant to acquire, directly or indirectly, any additional shares of any of said minority banks. Moreover the action herein does not preclude the Board from determining that Applicant exercises control o f , or a controlling influence over the management or policies of, any of said banks within the meaning of § 2(a) of the Act. 2 All the shares of Republic Commerce Company are held for the benefit of the shareholders of Registrant. 3 All the shares of Republic National Bank Building Corporation are held for the benefit of the shareholders of Registrant. 4 Section 4(c)(1)(A) of the Act permits a bank holding company (without the approval of the Board) to hold shares of any company engaged in " . . . holding or operating properties used wholly or substantially by any banking subsidiary of such bank holding company in the operations of such banking subsidiary or acquired for such future use;". 769 Exchange Security & Investment Co. 5 (assets of $160,000 as of December 31, 1971) was formed in June, 1970 for the purpose of acquiring Exchange National Life Insurance Company (admitted assets of $638,000 as of December 31, 1971), which was acquired subsequently in November, 1970, and reinsures credit life and disability insurance policies. Since these interests were acquired after June 30, 1968, Registrant is not entitled to indefinite grandfather privileges and must reduce its interest to 5 per cent or less of the voting shares by December 31, 1980, unless Registrant obtains Board approval under § 4(c)(8) to retain the interest. Except for the activities engaged in by the above corporations, the principal activities of the Howard Corporation 6 and its subsidiaries are in the areas of oil, gas, minerals; real estate; lending and/or guaranteeing money and acting as a financial advisor; and owning and holding stocks and bonds in various companies. The Howard Corporation itself engages directly in managing all the affiliated corporations and, in connection with the management of the affiliated corporations, engages in borrowing and lending money, acting as investment counselor, and furnishing management and financial advisory services. It appears that these activities are eligible for, and may be continued on the basis of, grandfather privileges. The Howard Corporation also holds investments in (1) securities, (2) oil, gas, mineral properties, and (3) real estate activities. The securities investments of the Howard Corporation appear to be generally permissible for a bank holding company so long as the share holdings in each company do not exceed 5 per cent of the outstanding voting shares of the company. 7 Shareholdings of more than 5 per cent of the shares of any company (but less than 25 per cent of the outstanding shares) which have been held continuously since June 30, 1968, are eligible for grandfather benefits as an investment. However, this determination is not authority to increase that investment interest; nor to make investments in other companies, unless the investment interest in each additional company amounts to not more than 5 per cent of the outstanding voting shares of such company. 5 All the shares of Exchange Security & Investment Co. are held for the benefit of the shareholders of Registrant. 6 All the shares of the Howard Corporation are held for the benefit of the shareholders of Registrant. 7 Section 4(c)(6) of the Act permits a bank holding company (without the approval of the Board) to hold "shares of any company which do not include more than 5 per centum of the outstanding voting shares of such company;". 770 FEDERAL RESERVE BULLETIN • OCTOBER 1973 With respect to oil, gas, and mineral interests, the Howard Corporation and its subsidiaries have investments in approximately 600 interests principally in Texas and Louisiana. Neither the Howard Corporation nor its subsidiaries engage in the developing, mining, drilling, etc., of oil, gas, or other minerals, nor in acting as an operator, servicer, or producer in connection with oil, gas, or mineral activities. On a grandfather basis, Registrant may continue, through the Howard Corporation, the investments in the oil, gas, and mineral properties held on June 30, 1968, and, to the extent necessary to preserve and develop those interests, may continue activities related to the wells, refineries, pipe lines, joint ventures, and land exploration with respect to which the Howard Corporation had investments on June 30, 1968. United Petroleum Corporation, Dallas (assets of $173,000 as of December 31, 1971), and Walker Properties, Dallas, each of which is 50 per cent owned by the Howard Corporation, hold title to and participate as investors in oil, gas, and mineral interests, and participate as investors in drilling and operating oil and gas wells. Pine Island Oil Company (assets of $44,000 as of December 31, 1971), Lake Charles, Louisiana, which is 50 per cent owned by the Howard Corporation, owns, certain oil, gas, and mineral interests. Walker Louisana Properties, Louisiana, a joint venture 50 per cent owned by the Howard Corporation, owns certain oil, gas and mineral interests, as well as farm and timber land, and participates as an investor in drilling and operating oil and gas wells. Prairie Canal Company (assets of $718,000 as of December 31, 1971), Lake Charles, Louisiana, 32.9 per cent of which is owned by the Howard Corporation, owns and holds title to oil, gas and mineral interests. In varying degrees as described below, each of the five entities named above, owns real estate properties as an adjunct to the oil, gas, and mineral interests. To the extent that the oil, gas, and mineral interests described above were held on June 30, 1968, Registrant is entitled to grandfather benefits to retain such investments. In addition to the above activities of the Howard Corporation and its subsidiaries, Registrant is deemed to control, by virtue of § 2(g)(2) of the Act, MacMor Oil Company, Boyce Oil Company, and MacBean Oil Company, all located in Dallas and owned 100 per cent by the Savings and Profit Sharing Retirement Fund for the employees of Registrant. These companies were formed, all prior to June 30, 1968, for the sole purpose of holding title to oil and gas production payments. When all the production payments are paid out, the three organizations will be nothing more than corporate shells. At the present time, only MacMor Oil and MacBean Oil are active, and Registrant may continue its interests in these companies on the basis of grandfather privileges. In connection with oil, gas, and mineral interests, Registrant, through the Howard Corporation, has made acquisitions of additional mineral interests after June 30, 1968. To the extent that those additional acquisitions were related to and necessary to protect oil, gas, and mineral investments held on June 30, 1968, they may be retained on the basis of grandfather privileges. Investments made during the period from June 30, 1968, to December 31, 1970, that were not so related may be retained until December 31, 1980. Any other investments made after December 31, 1970, and in excess of a 5 per cent interest are required by the Act to be reduced to 5 per cent or less and this should be effected at the earliest practicable date. The Howard Corporation acts as a financing partner or investor in real estate. As noted above, Pine Island Oil, Walker Louisiana Properties, Prairie Canal, United Petroleum Company and Walker Properties are each engaged in holding real estate principally as an adjunct to oil, gas, and mineral interests but used also for commercial, residential, and agricultural purposes. The property is not a contiguous tract but scattered acreage throughout southern Louisiana, Texas, and other states. Three wholly-owned subsidiaries of The Howard Corporation were organized to acquire, hold, manage, operate, and sell real and personal property acquired by Registrant through loan foreclosures. The three subsidiaries, namely, Rheims Corporation (assets of $408,000 as of December 31, 1971), which was acquired in 1958; Fairfax Investment Corporation (assets of $3,300 as of December 31, 1971), which was acquired in 1959; and Westside Investment Corporation (assets of about $100 as of December 31, 1971), which was acquired in 1959); appear to be eligible for retention without reference to grandfather benefits by virtue of § 4(c)(1)(D) of the Act. 8 The Howard Corporation owns six shopping centers, two in California, three in Texas, and one in Louisiana, all of which were acquired prior to June 30, 1968. Registrant is entitled to retain these properties on the basis of grandfather privileges. Three other subsidiaries of the Howard Corporation are engaged in real estate ventures. The 8 Section 4(c)(1)(D) of the Act permits a bank holding company (without the approval of the Board) to hold shares of any company engaged in ". . . liquidating assets acquired from such bank holding or its banking subsidiaries. . . . " LAW DEPARTMENT Oxford Corporation (assets of $1 million as of December 31, 1971), which was acquired in 1969, acts as an investing partner in acquisition, development, operation and sale of realty. The Oxford Corporation has a 50 per cent interest in each of two other companies, namely, Westgate Company and Polk Wheatland Company, which engage in activities similar to Oxford's. Inasmuch as Registrant's interest in these corporations was made after June 30, 1968, but before December 31, 1970, the companies do not appear to be entitled to grandfather privileges, and Registrant must reduce its interest to 5 per cent or less of the voting shares by December 31, 1980, unless it obtains Board approval to retain its interests. The Westminister Corporation (assets of $21,000 as of December 31, 1971), a wholly-owned subsidiary of the Howard Corporation, was acquired in 1969 and has as its only assets an option on an oil refinery. Registrant may continue to hold this interest until December 31, 1980. Since June 30, 1968, Registrant, through the Howard Corporation and its subsidiaries, has purchased real estate or has become a partner and invested in several joint ventures engaged in buying real estate for further development and/or appreciation in value. In many instances, the acquisition was made after December 31, 1970, the date of the 1970 Amendments to the Act, and, on the basis of the prohibitions in § 4 of the Act, impermissible unless Registrant had grandfather privileges for such investments. Registrant should reduce its interest in each joint venture or real estate (acquired after December 31, 1970) to 5 per cent or less at the earliest practiable date. With respect to investments in joint ventures or real estate made between June 30, 1968, and December 31, 1970, Registrant has until December 31, 1980, to reduce its interest to 5 per cent or less. Any interest in a joint venture for real estate or real estate acquired prior to June 30, 1968, may be retained indefinitely together with investments related to or necessary to protect real estate investments held on June 30, 1968. On the basis of the foregoing and all the facts before the Board, it appears that the volume, scope, and nature of the activities of Registrant described herein and of the Howard Corporation, do not demonstrate an undue concentration of resources, decreased or unfair competition, conflicts of interest nor unsound banking practices. There appears to be no reason to require Registrant to terminate its grandfathered interests. It is the Board's judgment that, at this time, termination of the grandfather privileges of Registrant described herein is not necessary in order to pre 771 vent an undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices. Except as indicated herein, this determination is not authority to enter into any new activity, or product extension that was not engaged in on June 30, 1968 and continuously thereafter, or any activity that is not the subject of this determination. A significant alteration in the nature or extension of Registrant's activities or a change in location thereof (significantly different from any described in this determination) will be cause for a re-evaluation by the Board of Registrant's activities under the provisions of § 4(a)(2) of the Act, that is, whenever the alteration or change is such that the Board finds that a termination of the grandfather privileges is necessary to prevent an undue concentration of resources or any of the other evils at which the Act is directed. No merger, consolidation, acquisition of assets other than in the ordinary course of business, nor acquisition of any interest in a going concern, to which the Registrant or any nonbank subsidiary thereof is a party, may be consummated without prior approval of the Board. Further, the provision of any credit, property, or service by the Registrant or any subsidiary thereof shall not be subject to any condition which, if imposed by a bank, would constitute an unlawful tie-in arrangement under § 106 of the Bank Holding Company Act Amendments of 1970. The determination herein does not preclude a later review, by the Board, of Registrant's nonbank activities and a future determination by the Board in favor of termination of grandfather benefits of Registrant. The determination herein is subject to the Board's authority to require modification or termination of the activities of Registrant or any of its nonbanking subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board's regulations and orders issued thereunder, or to prevent evasion thereof. By determination of the Board of Governors, effective September 10, 1973. Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns. (Signed) [SEAL] CHESTER B . FELDBERG, Secretary of the Board. SWISS-ISRAEL TRADE BANK, GENEVA, SWITZERLAND BEAVER SECURITIES CO. INC., NEW YORK, NEW YORK EXCHANGE PLACE CORP., NEW YORK, NEW YORK A 772 FEDERAL RESERVE BULLETIN • OCTOBER 1973 DETERMINATION REGARDING "GRANDFATHER" PRIVILEGES UNDER BANK COMPANY HOLDING ACT Section 4 of the Bank Holding Company Act (12 U.S.C. 1843) provides certain privileges ( " g r a n d f a t h e r " privileges) with respect to nonbanking activities of a company that, by virtue of the 1970 Amendments to the Bank Holding Company Act, became subject to the Bank Holding Company Act. Pursuant to § 4(a)(2) of the Act, a "company covered in 1970" may continue to engage, either directly or through a subsidiary, in nonbanking activities that such a company was lawfully engaged in on June 30, 1968 (or on a date subsequent to June 30, 1968, in the case of activities carried on as a result of the acquisition by such company or subsidiary, pursuant to a binding written contract entered into on or before June 30, 1968, of another company engaged in such activities at the time of the acquisition), and has been continuously engaged in since June 30, 1968 (or such subsequent date). Section 4(a)(2) of the Act provides, inter alia, that the Board of Governors of the Federal Reserve System may terminate such grandfather privileges if, having due regard to the purposes of the Act, the Board determines that such action is necessary to prevent undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices. With respect to a company that controls a bank with assets in excess of $60 million on or after December 31, 1970, the Board is required to make such a determination within a two year period. Notice of the Board's proposed review of the grandfather privileges of the Swiss-Israel Trade Bank, Geneva, Switzerland; Beaver Securities Co. Inc., New York, New York; and Exchange Place Corp., New York, New York, and an opportunity for interested persons to submit comments and views or request a hearing, has been given (37 F.R. 22414). The time for filing comments, views, and requests has expired, and all those received have been considered by the Board in light of the factors set forth in § 4(a)(2) of the Act. On the evidence before it, the Board makes the following findings. Swiss Israel Trade Bank, Geneva, Switzerland ("Registrant"), became a bank holding company, as a result of the 1970 Amendments to the Act, by virtue of Registrant's control of close to 75 per cent of the voting shares of American Bank and Trust Company, New York, New York ( " B a n k " ) (assets of $253 million, as of December 31, 1970). Swiss-Israel owns close to 75 per cent of the voting shares of American B & T Corporation, New York, New York, which company owns 100 per cent of the voting shares of Bank. 1 Bank, control of which was acquired by Registrant in October, 1963, had total deposits of approximately $250 million as of June 30, 1972, representing .3 per cent of the total deposits in commercial banks in the New York City area and is the 23rd largest of the 79 banking organizations in the New York City area. It appears that Bank has enjoyed satisfactory earnings and that Registrant's financial strength does not derive from, nor is dependent upon, the resources of Bank. On the other hand, the Board has noted that Bank's capital appears low in relation to its deposits and Bank's management and financial condition lack the strength the Board expects of subsidiary banks of a holding company. While the record shows that these aspects preceded Registrant's acquisition of control of Bank, the Board is concerned about these aspects since they are present today. In view of the Board's concern in this area, Registrant had adopted a program to reduce the Bank's footings and the amount of loans outstanding, to strengthen management, and to provide for stock dividends in lieu of cash payments by Bank. On the basis of the actions already taken and the commitments made by Registrant, the Board considers that the prospects of Bank should be improved and its financial condition strengthened. Registrant, 2 a foreign bank, owns 100 per cent ^ n December 31, 1970, Swiss-Israel was an indirect parent of Bank with three Swiss-Israel subsidiaries (Exchange Place Corporation, Beaver Securities, and American B & T Corp.) being the intermediate companies. Each of these three intermediate companies became a bank holding company under the 1970 Amendments. Since then, the corporate structure has changed so that only Swiss-Israel and American B & T Corp. (which was formed on April 30, 1970) are parents of Bank. On March 30, 1972, the shares of American B & T Corp. were transferred from Beaver Securities Co. to direct ownership by Swiss-Israel to be held in custody by Pan Am & Co., New York, New York. Pan Am & Co. functions solely as the registered nominee for Swiss-Israel and has no discretionary power to vote any shares of American B & T Corp. Exchange Place Corporation and Beaver Securities are no longer bank holding companies, and the question of a review of grandfather privileges is moot as to each of these companies. 2 Registrant's annual report to shareholders shows consolidated assets of Registrant and its interest in five other banking affiliates of 2.2 billion Swiss francs (approximately $525 million), as of December 31, 1971. The bank affiliates, other than Bank, are located in Paris, Brussels, Tel-Aviv, and Montevideo. As to these foreign banks, the activities are permissible under the Board's Regulation Y and accordingly grandfather benefits need not be considered. Registrant also has two inactive subsidiaries, Solon Properties Inc., and South Beach Realty Corporation (both located in New York City), that have no grandfather benefits. LAW DEPARTMENT of Exchange Place Corp., which in turn owns 100 per cent of Beaver Securities Co., Inc., and of Exchange Place Management Corp., New York, New York. The latter company owns 100 per cent of the shares of Bevex Realty Corp. ( " B e v e x " ) , Merex Realty Corp. ( " M e r e x " ) , Staunton Development Corporation ( " S t a u n t o n " ) , Suissex Realty Corp. ( " S u i s s e x " ) and Tradex Realty Corp. ( " T r a d e x " ) , all of which are located in New York City. Registrant also owns 100 per cent of Isramerica Corp., New York, New York, which company owns 100 per cent of Sitra Corp., New York, New York ( " S i t r a " ) and of Vantar Properties Inc., New York, New York ( " V a n t a r " ) . All of these direct or indirect subsidiaries of Registrant have been engaged in their current activities since before June 30, 1968, and continuously thereafter. 3 Exchange Place Corp. (assets of $6.3 million as of April 30, 1971) and Isramerica Corporation (assets of about $5 million as of April 30, 1971), both acquired in 1960, engage directly in making loans to business enterprises and in investing in stocks and bonds for their own account but do not own over 5 per cent of the shares of any company 4 except for two subsidiaries of Exchange Place Corp., namely, Beaver Securities Co., Inc. (acquired in 1960) and Exchange Place Management Corporation (acquired in 1962). The making of loans to business enterprises is entitled to grandfather privileges. 5 The only current activity of Beaver appears to be the holding of $50,000 of stock and bond investments, none of which represents more than 5 per cent of the voting shares of the issusing company. No grandfather benefits 3 In 1970, American B & T Corp. made loans for its own account and acquired shares in GIT Realty & Mortgage Investors (15 per cent), a real estate investment trust and in GIT Management Services Inc. With respect to the activities of these two companies, Registrant has no grandfather benefits within the meaning of the proviso in § 4(A)(2) of the Act. Registrant's direct or indirect interest in these two companies will be required to be reduced to 5 per cent or less by January 1, 1981, unless the Board were to grant Registrant approval under § 4(c)(8) to continue such activities. Shares of a REIT are not on the Board's list of activities closely related to banking. However, under § 224(a)(5) of Regulation Y advisory services to a REIT are regarded as permissible. 4 Section 4(c)(6) of the Act provides an exemption to the general prohibitions of § 4 and permits a holding company to own not more than 5 per cent of the outstanding shares of any company. Such holdings are permissible without recourse to the benefits of the grandfather proviso. 5 The activity of making loans is a "closely related" activity under § 225.4(a)(1) of Regulation Y. The activity of servicing loans is a closely related activity under § 225.4(a)(3) of Regulation Y. However, the Board's approval is required to authorize a company to engage in such permissible activities under said sections of the regulation and § 4(c)(8) of the Act. 773 are involved for the present activities of Beaver 6 nor does there appear to be any reason to require a termination of its activities. Exchange Place Management Corp. engages in no direct activities but acts as a holding company for five whollyowned subsidiaries named earlier herein. Of the five subsidiaries, Merex and Tradex (both acquired in 1962) each hold a mortgage which is being liquidated by periodic payments but the companies are otherwise inactive. Registrant is entitled to grandfather benefits with respect to the mortgages now held and liquidation thereof. 7 Bevex, Staunton, and Suissex were acquired in 1961 and 1962. Each of these three companies holds an interest in a real estate joint venture whose sole investment is a parcel of land located in Staten Island in New York City. As of April 30, 1971, the combined assets of these three subsidiaries amounted to about $621,000. These joint ventures may be retained under the grandfather privilege proviso. Vantar (acquired in 1964) owns and services a mortgage acquired as a result of the sale of real property. 8 This activity may be retained under the grandfather privilege proviso. Sitra (acquired in 1964) holds a 3 per cent interest in a shopping center. Sitra's total investment in this participation is $32,000. There appears to be no reason to require a modification of this activity. On the basis of the foregoing and all the facts before the Board, it appears that the volume, scope, and nature of the activities of Registrant and its subsidiaries do not demonstrate an undue concentration of resources, decreased or unfair competition, conflicts of interest nor unsound banking practices. There appears to be no reason to require Registrant to terminate its grandfathered interests. It is the Board's judgment that, at this time, termination of the grandfather privileges of Registrant is not necessary in order to prevent an undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices. However, this determination is not authority to enter into any activity that was not engaged in on June 30, 1968 and continuously thereafter, or any activity that is not the subject 6 T h e holdings of 5 per cent or less of the shares of any company is permissible under § 4(c)(6) of the Act. Also § 4(c)(7) of the Act permits a holding company to own shares of an investment company that is not a bank holding company and is not engaged in any business other than investing in securities which do not include more than 5 per cent of the outstanding voting shares of any company. 7 S e e footnote 5 supra. 8 S e e footnote 5 supra. A 774 FEDERAL RESERVE BULLETIN • OCTOBER 1973 of this determination. Nor is this determination authority for Registrant to enter into any new real estate joint venture or to acquire additional shares of any company if the Registrant's holdings in said company will exceed 5 per cent of the outstanding voting shares of such company. A significant alteration in the nature or extension of Registrant's activities or a change in location thereof (significantly different from any described in this determination) will be cause for a re-evaluation by the Board of Registrant's activities under the provisions of § 4(a)(2) of the Act, that is, whenever the alteration or change is such that the Board finds that a termination of the grandfather privileges is necessary to prevent an undue concentration of resources or any of the other evils designated in the Act. No merger, consolidation, acquisition of assets other than in the ordinary course of business, nor acquisition of any interest in a going concern, to which the Registrant or any nonbank subsidiary thereof is a party, may be consummated without prior approval of the Board. Further, the provisions of any credit, property, or service by the Registrant or any subsidiary thereof shall not be subject to any condition which, if imposed by a bank, would constitute an unlawful tie-in arrangement under § 106 of the Bank Holding Company Act Amendments of 1970. The determination herein does not preclude a later review by the Board of Registrant's nonbank activities and a future determination by the Board in favor of termination of grandfather benefits of Registrant. The determination herein is subject to the Board's authority to require modification or termination of the activities of Registrant or any of its nonbanking 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 evasions thereof. By determination of the Board of Governors, effective September 4, 1973. Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns. (Signed) CHESTER Secretary [SEAL] B. F E L D B E R G , of the Board. ORDERS NOT PRINTED IN THIS ISSUE During September 1973, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACTAPPLICATION FOR FORMATION OF BANK HOLDING COMPANY Applicant Financial Data Systems, Inc., Detroit, Michigan Bank(s) Bank of the Commonwealth, Detroit, Michigan Board action (effective date) 9/11/73 Federal Register citation 38 F.R. 26153 9/18/73 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACTAPPLICATIONS FOR ACQUISITION OF BANK Applicant Bank(s) American National Holding Company, Kalamazoo, Michigan The American National Bank in Western Michigan, Allegan, Michigan Fidelity National Bank, Halifax County, Virginia The Citizens Bank of Gerald, Gerald, Missouri Fidelity American Bankshares, Inc., Lynchburg, Virginia First Banc Group, Inc., Creve Coeur, Missouri Board action (effective date) Federal Register citation 9/27/73 38 F.R. 27550 10/4/73 9/24/73 38 F.R. 27332 10/2/73 38 F.R. 27334 10/2/73 9/24/73 775 LAW DEPARTMENT ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACTAPPLICATIONS FOR ACQUISITION OF BANK—Cont. First International Bancshares, Inc., Dallas, Texas First Tennessee National Corporation, Memphis, Tennessee Fort Worth National Corporation, Fort Worth, Texas Fort Worth National Corporation, Fort Worth, Texas Southeast Banking Corporation, Miami, Florida United Missouri Bancshares, Inc. Kansas City, Missouri Wyoming Bancorporation, Cheyenne, Wyoming Citizens National Bank in Abilene, Abilene, Texas Jackson State Bank, Jackson, Tennessee Bank of Fort Worth, Fort Worth, Texas and Riverside State Bank, Fort Worth, Texas Levelland State Bank, Levelland, Texas Southeast National Bank of Manatee, Manatee County, Florida Hickman Mills Bank & Trust Co., Kansas City, Missouri Security Bank and Trust Company, Casper, Wyoming 9/17/73 9/18/73 9/25/73 9/6/73 9/24/73 9/13/73 9/11/73 38 F.R. 26883 9/26/73 38 F.R. 26975 9/27/73 38 F.R. 27551 10/4/73 38 F.R. 26027 9/17/73 38 F.R. 27336 10/2/73 38 F.R. 26508 9/21/73 38 F.R. 26160 9/18/73 ORDERS UNDER SECTION 4(c)(8) OR BANK HOLDING COMPANY ACTAPPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Nonbanking Company (or activity) Applicant The Alabama Financial Group, Inc., Birmingham, Alabama First National City Corporation, New York, New York First National Holding Corp., Atlanta, Georgia First Tennessee National Corporation, Memphis, Tennessee Landmark Banking Corporation of Florida, Fort Lauderdale, Florida Manufacturers Hanover Corporation, Dover, Delaware Mellon National Corporation, Pittsburgh, Pennsylvania Philadelphia National Corporation, Philadelphia, Pennsylvania Standard and Chartered Banking Group, Limited, London, England Southern States Life Insurance Co., Birmingham, Alabama Gateway Life Insurance Company, Phoenix, Arizona Tharpe & Brooks Incorporated, Atlanta, Georgia Pence Mortgage Company, Louisville, Kentucky North American Mortgage Corporation, St. Petersburg, Florida Citizens Mortgage Corporation, Southfield, Michigan Carruth Mortgage Company New Orleans, Louisiana Congress Factors Corporation, Philadelphia, Pennsylvania Mocatta Metals, Inc., New York, New York Board action ( effective date) 9/13/73 9/11/73 9/24/73 9/5/73 9/18/73 9/27/73 9/27/73 9/11/73 9/27/73 Federal Register citation 38 F.R. 26407 9/20/73 38 F.R. 26507 9/21/73 38 F.R. 27335 10/2/73 38 F.R. 25721 9/14/73 38 F.R. 26834 9/26/73 38 F.R. 27659 10/5/73 38 F.R. 27660 10/5/73 38 F.R. 26156 9/18/73 38 F.R. 27552 10/4/73 ORDERS ISSUED BY FEDERAL RESERVE BANKS During September 1973, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. A 67 FEDERAL RESERVE BULLETIN • OCTOBER 1973 ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACTAPPLICATION FOR FORMATION OF BANK HOLDING COMPANY Applicant Bank(s) Peoples National Corporation, Bay City, Michigan Reserve Bank Peoples National Bank & Trust Chicago Company of Bay City, Bay City, Michigan, and State Savings Bank of West Branch, West Branch, Michigan Board action (effective date) Federal Register citation 9/26/73 38 F.R. 28327 10/12/73 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACTAPPLICATIONS FOR ACQUISITION OF BANK Bank Applicant Multibank Financial Corp., Boston, Massachusetts First Commercial Banks, Inc., Albany, New York Central National Corporation, Richmond, Virginia Atlantic Bancorporation, Jacksonville, Florida Old Kent Financial Corporation, Grand Rapids, Michigan Mercantile Bancorporation Inc., St. Louis, Missouri Mercantile Bancorporation Inc., St. Louis, Missouri Reserve Northampton National Bank, Northampton, Massachusetts The Homer National Bank, Homer, New York City Savings Bank and Trust Company, Petersburg, Virginia Peninsula State Bank, Tampa, Florida Fremont Bank and Trust Company, Fremont, Michigan United Bank of Farmington, Farmington, Missouri Cape State Bank and Trust Company, Cape Girardeau, Missouri Bank Effective date Federal Register citation Boston 9/18/73 38 F.R. 26977 9/27/73 New York 9/17/73 38 F.R. 26975 9/27/73 Richmond 9/20/73 38 F.R. 27242 10/1/73 Chicago Chicago St. Louis St. Louis 9/5/73 38 F.R. 26152 9/18/73 9/12/73 38 F.R. 26772 9/25/73 9/11/73 38 F.R. 26508 9/21/73 9/10/73 38 F.R. 26508 9/21/73 ORDERS UNDER BANK MERGER ACTAPPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Applicant FBT Bank, Fremont, Michigan West Branch Bank, West Branch, Michigan Bank(s) Fremont Bank and Trust Company, Fremont, Michigan The State Savings Bank of West Branch, West Branch, Michigan Reserve Board action ( effective Bank date) Federal Register citation Chicago 9/12/73 38 F.R. 26772 9/25/73 Chicago 9/26/73 38 F.R. 28327 10/12/73 Announcements REVISION OF REGULATION P The Board of Governors of the Federal Reserve System has announced revisions of its Regulation P to strengthen implementation of the Bank Protection Act. The revisions, effective November 1, 1973, are largely technical and clarify minimum standards to be met by State member banks regarding the installation, maintenance, and operation of security devices, with the double aim of discouraging crimes against financial institutions and assisting the apprehension of perpetrators of such crimes. They include a definition of requirements for vaults as distinguished from safes, protection standards for cash dispensing machines, and a clarification of the rules that safe deposit boxes be stored in an approved vault or safe. Under Regulation P, if a bank decides not to install, maintain, or operate devices to meet the minimum standards for bank security, as defined in Appendix A of the Regulation, it is required to forward to the Reserve Bank in its district a statement of reasons for its decision. ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The following banks were admitted to membership in the Federal Reserve System during the period September 16, 1973, through October 15, 1973: Florida Lakeland Orange County Punta Gorda American Bank of Lakeland American Bank of Orange County Marine Bank of Punta Gorda Texas Houston Houston State Bank Virginia Henrico County Powhatan Peoples Bank and Trust Company of Henrico Central Virginia Bank 777 Industrial Production Released for publication October 16 Industrial production increased 0.7 per cent in September following a slight decline in August. The total index, at 127.4 per cent of the 1967 average, was 8.3 per cent above a year earlier. The gain in output in September reflected a partial recovery in autos from the reduced August level and further gains in production of business equipment and industrial materials. Output in the third quarter rose at an annual rate of 6.7 per cent from the previous quarter compared with an increase of 5.5 per cent in the second quarter. Auto assemblies rose 14 per cent and were at a seasonally adjusted annual rate of 9.0 million units compared with an 8.0-million-unit rate in August. Production schedules for October indicate a further rise in auto output. Output of most other durable consumer goods—appliances, television sets, and furniture—was maintained at record levels. Production of business equipment was up about 1 per cent further with increases occurring in most equipment-producing industries. Among materials, output of steel and most other durable industrial materials continued to expand. Production of nondurable industrial materials, however, rose only marginally as output of the Seasonally adjusted 1967 = 100 INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 M T RA S" ' ' A E I L / "^— p 1P O U T , T T L -R D C S O A j F.R. indexes, seasonally adjusted. Latest figures: September. textile, paper, and chemical grouping showed only a slight gain. The rate of capacity utilization in major materials industries rose in the third quarter to 96.3 per cent from 94.5 per cent in the second quarter. This high rate reflects near-capacity operations in industries such as steel, wood pulp, paper, paperboard, and manmade fibers. Percentage change from— Per cent changes, annual rates Industrial production Total index Market groupings: Final products Consumer goods Business equipment Materials Industry groupings: Manufacturing Durables Nondurables Mining & utilities p Preliminary. 778 e Estimated. 1973 1973 Year ago Year ending 1973-III Ql QII QIII" .7 8.3 9.1 9.7 5.5 6.7 121.9 131.7 124.7 132.2 .9 1.0 .8 .7 7.3 5.2 13.8 9.3 8.1 5.9 15.4 10.1 10.7 9.1 17.0 9.4 5.0 3.7 10.9 7.0 3.3 .3 9.2 9.0 126.9 123.7 131.6 132.9 .8 1.0 .6 1.3 8.5 10.8 5.4 5.1 9.4 12.0 6.1 5.1 10.0 12.5 7.3 3.2 7.5 10.4 3.1 - .8 5.4 4.6 6.5 13.2 1972 Sept. Aug." Sept. e 117.6 126.5 127.4 113.6 125.2 109.6 120.9 120.8 130.4 123.7 131.3 117.0 111.6 124.8 126.5 125.9 122.5 130.8 131.2 Month ago A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 A A A A A A A A 7 8 9 10 11 12 14 15 Member bank reserves, Federal Reserve Bank credit, and related items Federal funds—Major reserve city banks Reserve Bank interest rates Reserve requirements Maximum interest rates; margin requirements Open market account Federal Reserve Banks Bank debits U.S. currency A A A A A A A A A A A A 16 17 18 24 29 30 31 31 32 35 36 37 Money stock Bank reserves; bank credit Commercial banks, by classes Weekly reporting banks Business loans of banks Demand deposit ownership Loan sales by banks Open market paper Interest rates Security markets Stock market credit Savings institutions A A A A A A A 39 40 42 45 48 49 54 Federally sponsored credit agencies Federal finance U.S. Government securities Security issues Business finance Real estate credit Consumer credit Continued on next page A71FEDERAL RESERVE BULLETIN • OCTOBER 1973 U.S. STATISTICS—Continued A A A A A A A A 58 62 62 64 66 66 68 70 Industrial production Business activity Construction Labor force, employment, and earnings Consumer prices Wholesale prices National product and income Flow of funds INTERNATIONAL STATISTICS: A A A A A A A A A A 72 73 74 75 76 91 92 93 94 95 A 103 U.S. balance of payments Foreign trade U.S. gold transactions U.S. reserve assets; position in the IMF International capital transactions of the United States Foreign exchange rates Central bank rates Open market rates; arbitrage on Treasury bills Gold reserves of central banks and governments Gold production INDEX TO STATISTICAL TABLES A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated c Corrected p Preliminary r Revised rp Revised preliminary I, II, III, IV Quarters n.e.c. Not elsewhere classified A.R. Annual rate S.A. Monthly (or quarterly) figures adjusted for seasonal variation N.S.A. IPC SMSA A L S U * Monthly (or quarterly) figures not adjusted for seasonal variation Individuals, partnerships, and corporations Standard metropolitan statistical area Assets Liabilities Sources of funds Uses of funds Amounts insignificant in terms of the particular unit (e.g., less than 500,000 when the unit is millions) (1) Zero, (2) no figure to be expected, or (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used in the following instances: (1) to the right (to the left) of a total when the components shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. "U.S. Govt, securities" may include guaranteed issues of U.S. Govt, agencies (the flow of funds figures also include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local govt." also includes municipalities, special districts, and other political subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled NOTE (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Semiannually Banking offices: Analysis of changes in number On, and not on, Federal Reserve Par List, number Issue Page Annually—Continued Aug. 1973 A-96 Aug. 1973 Banking and monetary statistics: 1972 Banks and branches, number, by class and State Issue Page A-97 Flows: 1961-72 Annually Bank holding companies: List, Dec. 31, 1971 Banking offices and deposits of group banks, Dec. 31, 1972 Flow of funds: Assets and liabilities: 1961-72 June 1972 A-102—A-104 Mar. 1973 July 1973 A-100—A-114 A-96—A-99 Apr. 1973 A-96—A-97 Sept. 1973 A-71.14—A-71.28 A-70—A-71.13 A-98 June 1973 Sept. 1973 Income and expenses: Federal Reserve Banks Insured commercial banks Member banks: Calendar year Income ratios Operating ratios Feb. 1973 May 1973 A-98—A-99 A-96—A-97 May 1973 May 1973 June 1973 A-96—A-105 A-106—A-lll A-96—A-101 Stock market credit Jan. 1973 A-98—A-99 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Anticipated schedule of release dates for individual releases June 1973 Page A-113 A 4 BANK RESERVES AND RELATED ITEMS • OCTOBER 1973 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities Total Bought outright 1 Held under repurchase agreement Float 2 Loans Other F.R. assets 3 Total 4 Gold stock Special Drawing Rights certificate Treasury currency outstanding Averages of daily figures 1939—Dec 1941—Dec 1945—Dec 1950—Dec 1960—Dec 2,510 2,219 23,708 20,345 27,248 2,510 2,219 23,708 20,336 27,170 1968—De c 1969—De c 1970—De c 1971—De c 52,529 57,500 61,688 69,158 1972—Sep t Oct Nov Dec 1973—Ja n Feb Mar Apr May June July Aug Sept.f 2,612 2,404 24,744 21,606 29,060 17,518 22,759 20,047 22,879 17,954 2,204 1,032 982 56,610 64,100 66,708 74,255 10,367 10,367 11,105 10,132 400 400 6,810 6.841 7,145 7,611 3,723 4.112 2,966 3,479 894 1,202 1,170 1,138 75,451 77,331 75,959 76,851 10,410 10,410 10,410 10,410 400 400 400 400 8,183 8,230 8,278 8,293 1,786 1,789 2,051 2,143 1,862 3,267 2,556 2,387 2,319 2,247 2,369 3.113 2,566 2,904 1,329 1,004 839 1,043 960 942 1,180 1,018 889 78,063 77,600 79,219 80,542 81,889 80,546 83,880 82,445 81,790 10,410 10,410 10,410 10,410 10,410 10,410 10,410 10,410 10,410 400 400 400 400 400 400 400 400 400 8,321 8,353 8,406 8,444 8,478 8,518 8,538 8,549 8,584 9 78 8 5 381 142 94 83 170 652 1,117 1,665 52,454 57,295 61,310 68,868 75 205 378 290 765 1,086 321 107 3,251 3,235 3,570 3,905 70,252 71,359 71,112 71,094 70,135 71,194 70,815 70,790 117 165 297 304 514 574 606 1,049 72,194 72,307 74,019 75,353 76,758 75,355 77,448 76,653 76,073 71.711 72,082 73,624 74,914 76,205 75,047 76,875 76,475 75.712 483 225 395 439 553 308 573 178 361 1,165 1,593 1,858 1,721 2,956 3,239 4,322 4,629 5,396 Week ending— 1973—July 4 11 18 25 77,758 77,002 77,264 77,243 76,564 76,650 76,821 76,853 ,194 352 443 390 2,402 1,680 1,720 2,081 2,196 3,718 3,874 3,317 1,098 1,090 1,183 1,244 83,575 83,573 84,113 83,955 10,410 10,410 10,410 10,410 400 400 400 400 8,537 8,537 8,537 8,540 Aug. 1 8 15 22 29 77,889 76,916 75,989 76,368 76,839 77,405 76,916 75,989 76,129 76,539 484 2,095 2,006 1,914 2,133 2,561 2,288 2,700 2,886 2,691 2,044 1,278 1,299 1,282 772 748 83,649 82,974 82,120 82,027 82,273 10,410 10,410 10,410 10,410 10,410 400 400 400 400 400 8,539 8,543 8,546 8,549 8,554 5 12 77,382 74,723 75,085 76,499 76,828 74,600 75,085 76,287 554 123 212 2,363 1,488 1,707 2,191 1,756 3,402 3,828 2,566 781 834 901 942 82,349 80,490 81,558 82,259 10,410 10,410 10,410 10,410 400 400 400 400 8,568 8,574 8,586 8,592 78,821 77,953 77,900 7 77,750 8 76,984 8 76,469 1,071 969 1,431 2,225 2,842 1,559 2,171 1,605 2,462 ,307 750 974 84,656 83,234 83,040 10,410 10,410 10,410 400 400 400 8,546 8,585 8,599 4 11 18 25 79,148 74,173 77,361 76,877 7 76,787 2,361 2,999 2,304 1,673 2,032 2,523 4,395 4,646 3,604 1,065 1,165 1,210 1,272 85,909 82,094 84,957 83,870 10,410 10,410 10,410 10,410 400 400 400 400 8,537 8,537 8,537 8.543 1 78,546 74,287 74,066 76,594 75,966 8 9 9 9 9 77,747 74,287 74,066 76,016 75,966 1,377 1,429 2,531 3,035 3,467 3,450 3,198 4,022 3,249 2,449 1,351 1,363 770 752 797 84,876 80,325 81,435 83,729 82,725 10,410 10,410 10,410 10,410 10,410 400 400 400 400 400 8,540 8.544 8,548 8,552 8,557 75,896 75,007 74,820 76,969 9 9 9 9 75,896 75,007 74,820 76,346 1,342 1,279 2,286 4,520 2,308 3,839 4,318 2,945 819 865 950 996 80,406 81,028 82,410 85,487 10,410 10,410 10,410 10,410 400 400 400 400 8,573 8,577 8,590 8,595 Sept. 19* p 26 239 300 End of month 1973—July Aug Sept.* Wednesday 1973—July Aug. 8 12 22 29 Sept. 5p 12* 19 p 26 p 8 74,173 7 76,777 8 76,591 584 286 578 623 1 Includes Federal agency issues held under repurchase agreements as of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, 1971. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 BULLETIN, p . 164. « Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R. liabilities and capital" are shown separately; formerly, they were netted together and reported as "Other F.R. accounts." 4 Includes industrial loans and acceptances until Aug. 21, 1959, when industrial loan program was discontinued. For holdings of acceptances on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. 5 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in full with Federal Reserve Banks in connection with voluntary participation by nonmember institutions in the Federal Reserve System's program of credit restraint. Notes continued on opposite page. OCTOBER 1973 • BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank reserves, with F.R. Banks Currency in circulation Treasury cash holdings 7,609 10,985 28,452 27,806 33,019 2,402 2,189 2,269 1,290 408 616 592 625 615 522 50,609 53,591 57,013 61,060 756 656 427 453 62,913 63,385 64,543 66,060 Treasury Foreign Other F.R. accounts 3 Other 2,5 Other F.R. liabilities and capital 3 Member bank reserves With F.R. Banks Currency and coin 6 Period or date Total 7 Averages of daily figures 248 292 493 739 1,029 11,473 12,812 16,027 17,391 16,688 -1,105 2,192 2,265 2,287 22,484 23,071 23,925 25,653 619 631 604 631 2,240 2,336 2,378 2,362 294 302 338 275 330 266 341 300 332 644 645 666 666 652 698 782 838 781 3,614 3,978 3,224 3,168 308 284 281 405 324 334 347 353 345 2,928 2,773 1,413 919 1,649 343 340 343 355 1,095 2 354 1,326 7319 1,531 1,247 920 250 353 495 360 1,194 849 1.926 225 146 145 290 458 458 735 728 320 362 375 350 938 1,369 1,321 1,449 190 200 195 272 65,274 64,564 65,072 66,068 66,726 67,609 68,382 68,394 68,592 364 382 384 414 413 386 346 344 349 2,033 2,956 3,598 3,471 4,121 2,408 3,375 1,674 792 68,048 68,662 68,613 68,267 373 366 344 331 68,051 68,311 68,619 68,463 68,208 68,499 68,955 68,716 68,343 2,595 11,473 12,812 16.027 17,391 19,283 1939—Dec. 1941—Dec. 1945—Dec. 1950—Dec. 1960—Dec. 4,737 4,960 5,340 5,676 27,221 28,031 29,265 31,329 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 27,224 28,088 25,631 24,830 5,779 5,715 5,813 6,095 33,003 33,803 7 31,774 31,353 1972—Sept. Oct. Nov.7 Dec. 2,365 2,482 2,530 2,622 2,721 2,732 2,846 2,877 2,848 26,220 25,432 25,848 26,281 26,214 25,776 27.156 27,490 6,463 6,031 5,856 5,824 6,007 6,086 6,274 6,296 6,401 32,962 31,742 31,973 32,277 32,393 32.028 33,542 33,785 33,999 1973—Jan. Feb. Mar. Apr. May June July Aug. Sept.? 740 729 817 5 780 2,850 2,972 2,730 2,780 26,989 25,930 27,452 27,576 6,227 6,465 6,159 6,139 33,328 32,507 33,723 33,827 1973—July 407 275 314 348 286 5 818 5 816 5 878 884 782 2,903 2,957 2,704 2,826 2,944 27,567 26,859 27,201 27,593 27,425 6,372 6,484 6,514 895 259 34,051 33,455 33,827 33,600 33,796 Aug. 1 8 15 22 29 271 336 364 373 787 758 859 746 3,069 2,661 2,759 2,875 27,663 26,822 27,559 27,643 346 591 208 381 34,121 33,525 33,879 34,136 Sept. 5 12 19 p 27,377 Week ending— 4 11 18 25 26 p End of month 68,323 68,376 68,193 223 346 373 2,865 848 1,624 280 259 250 5 821 5 760 5 798 3,005 3,086 3,021 28,495 28,955 28,190 6,372 6,346 6,512 34,979 35,413 34,786 68,509 68,882 68,637 68,262 375 365 343 330 3,161 4,241 3,005 3,032 252 269 257 277 743 689 782 5 766 2,920 2,620 2,737 2,803 29,297 24,375 28,543 27,753 6,227 6,465 6,159 6,139 35,636 30,952 34,814 34,004 68,259 68,672 68,773 68,450 68,444 331 352 354 356 346 2,281 2,302 5 5 5 5 5 778 827 808 772 740 2,994 2,644 2,747 2,846 3,082 29,333 24,597 27,703 28,422 27,792 ,372 ,484 ,514 ,895 6,259 35,817 31,193 34,329 34,429 34,163 Aug. 1,968 1,431 250 285 409 277 257 68,965 69,071 68,658 68,453 346 347 358 372 1,102 2 1,105 1,125 284 277 411 459 5 741 5 776 5 1,010 5 670 3,011 2,687 2,786 2,945 25,340 27,255 27,482 30,869 6,346 6,591 6,208 6,381 31,798 33,958 33,802 37,362 Sept. July Aug. Sept.? Wednesday * 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, I960; all allowed thereafter. Beginning with Jan. 1963, figures are estimated except for weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date. 7 Beginning with week ending Nov. 15, 1972, includes $450 million of reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies 1973—July 4 11 18 25 1 8 15 22 29 5p 12 * 19 P 26 p included are (beginning with first statement week of quarter): Q l , $279 million; Q2, $172 million; Q3, $112 million; Q4, $84 million. 8 Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. 9 Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. Also reflects securities sold, and scheduled to be bought back, under matched sale/purchase transactions. For other notes see opposite page. A 6 BANK RESERVES AND RELATED ITEMS • OCTOBER 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Large banks 2 All member banks All other banks New York City Borrowings Reserves Period Total held 1 Required Excess 1 1939—Dec 1941—Dec 1945—Dec 1950—Dec 11,473 12,812 16.027 17,391 6,462 9,422 14.536 16,364 5,011 3,390 1,491 1,027 3 5 334 142 2,611 989 48 125 1960—Dec 1965—Dec 1967—Dec j 968—Dec 1969—De c 1970—De c 1971—De c 19,283 22,719 25,260 27,221 28,031 29,265 31,329 18,527 22,267 24,915 26,766 27,774 28,993 31,164 756 452 345 455 257 272 165 87 454 238 765 1,086 321 107 29 41 1972—Sep t Oct Nov Dec 33,003 33,803 31,774 31,353 32,841 33,556 31,460 31,134 162 247 314 219 514 574 606 1,049 1973—Ja n Feb Mar Apr May June July Aug Sept.*' 32,962 31,742 31,973 32,277 32,393 32.028 33,542 33,785 33,999 32,620 31.537 31,678 32,125 32,275 31,969 33,199 33,539 33,781 342 205 295 152 59 343 246 218 1,165 1,593 1,858 1,721 1,786 1,789 2,051 2,143 1,862 6.. 13.. 20.. 27.. 33,362 32,520 33,017 33,053 32,566 36,635 32,811 33,016 796 -115 206 37 837 149 717 550 328 -83 51 -49 260 7.. 14.. 21.. 28.. 32,058 31,555 31.962 31,671 31.717 31,532 31,713 31,578 341 23 249 93 1,688 1,491 2,139 2,013 92 -48 56 -46 4.. 11.. 18.. 25.. 32,619 31,759 32,624 32,398 32,082 31,845 32,390 32,062 537 1,754 1,502 1,845 1,646 2.. 9.. 16.. 23.. 30.. 32,504 32,246 32.963 32,302 32,226 32,271 32,327 32,600 32,178 32,060 6.. 13.. 20.. 27.. 32,218 31,597 32,302 32,224 31,817 31,595 32,121 32,000 4.. 11.. 18.. 25., 33,328 32,507 33,723 33,827 32,697 32,527 33,262 33,793 1. 8. 15. 22. 29. 34,051 33,455 33,827 33,600 33,796 5. 34,121 33,525 33,879 34,136 118 Total Seasonal Excess City of Chicago Borrowings Borrowings Other Borrowings Excess 1,188 1,303 418 232 1 96 50 671 804 1,011 663 3 4 46 29 23 13 85 27 4 100 67 50 90 6 42 -35 20 228 105 270 479 264 22 623 330 267 250 177 189 174 40 92 80 180 321 28 42 22 -14 13 12 45 19 55 -2 24 -1 -42 195 240 248 429 136 140 -5 -160 171 230 275 264 -33 -33 7 -111 578 693 857 828 6 -4 22 -7 16 108 105 102 9 12 28 67 53 62 -65 -78 -23 6 5 80 -33 29 -32 4 4 28 17 194 -130 -9 18 242 178 225 28 43 -25 3 99 113 104 130 -112 169 -184 146 80 144 24 306 45 18 -14 2 20 18 100 56 34 25 192 58 19 111 40 230 259 25 35 29 61 4 136 59 64 301 95 -13 72 38 -35 193 324 176 146 110 145 135 109 114 -20 5 30 77 124 163 147 -62 144 37 25 540 295 14 Excess -1 Borrowings 904 855 754 712 -47 45 40 37 88 98 64 286 471 723 738 783 712 994 1,227 974 329 13 241 260 194 131 135 100 244 132 103 214 695 623 1,077 951 -15 -71 -75 652 577 733 904 99 -90 -104 11 865 775 841 795 79 30 18 53 737 690 696 788 -63 -137 6 -49 -89 868 580 993 815 1,283 49 9 94 -5 49 779 689 689 844 963 88 689 953 965 1,028 45 54 41 728 698 694 713 917 759 851 842 169 102 109 42 836 778 856 1,165 881 -28 Week ending— 1972—Sept. 1973—Mar. Apr. May June July Aug. Sept. 12. 19 p 26^ -86 234 336 -66 -86 166 1,875 1,484 1,814 1,689 2.401 23 32 46 56 -75 49 33 7 222 182 123 30 144 19 -50 42 -27 27 401 2 181 224 1,664 1,700 1,930 1,848 64 67 71 93 62 -78 92 -42 200 31 262 107 34 -1 -24 -7 47 18 9 631 111 117 117 128 190 -131 232 -150 454 115 461 34 2.402 1,680 1,720 2,081 50 57 -51 -2 56 195 28 13 24 33,552 33,381 33,511 33,558 33,673 499 74 316 42 123 2,095 2,006 1,914 2,133 2,561 141 158 148 163 185 266 -40 24 -24 -47 90 50 172 137 12 24 -3 2 -21 41 54 36 68 -68 21 -84 2 785 741 656 712 948 114 46 162 36 77 1,222 1,134 1,154 1,213 1,408 33,644 33,401 33.718 34,068 477 124 161 68 2,363 1,488 1,707 2,191 168 201 -46 -6 -30 143 32 91 217 117 20 15 127 29 -38 -8 -44 799 590 759 857 106 101 64 19 1,304 846 842 990 - 2 0 18 145 139 150 1 Beginning with week ending Nov. 15, 1972, includes $450 million of reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week of quarter): Q l , $279 million; Q2, $172 million; Q3, $112 million; Q4, $84 million. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the Bulletin for July 1972, p. 626. Categories shown here as "Large" and "All other" -3 363 124 233 -81 16 345 59 29 -5 -102 -113 60 103 -52 10 -26 -5 11 parallel the previous "Reserve city" and "Country" categories, respectively (hence the series are continuous over time). NOTE.—Monthly and weekly data are averages of daily figures within the month or week, respectively. Beginning with Jan. 1964 reserves are estimated except for weekly averages. Borrowings at F.R. Banks: Based on closing figures. Effective Apr. 19, 1973, the Board's Regulation A, which governs lending by Federal Reserve Banks, was revised to assist smaller member banks to meet the seasonal borrowing needs of their communities. OCTOBER 1973 • MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Reporting banks and week ending— Less— Excess reserves 1 Borrowings at F.R. Banks Net interbank Federal funds trans. Related transactions with U.S. Govt, securities dealers Interbank Federal funds transactions Basic reserve position Gross transactions NetPer cent of Surplus avg. or deficit required reserves Net transactions Purchases Sales Total two-way trans- 2 actions Purchases of net buying banks Sales of net selling banks Loans to dealers 3 Borrowings from dealers4 Net loans Total—46 banks 8.. 15.. 22.. 29.. 269 152 85 -29 -45 253 361 299 250 365 7,003 7,477 8,401 8,015 6,319 -6,987 -7,687 -8,614 -8,294 -6,730 47.5 52.3 58.0 55.8 42.2 14,106 14,166 14,242 14,068 13,394 7,013 6,689 5,841 6,052 7,075 4,747 4,715 4,659 4,431 4,649 9,269 9,451 9,583 9,637 8,745 2,266 1,974 1,183 1,622 2,426 1,379 1,867 2,240 1,829 1,560 564 460 503 475 391 815 1,407 1,737 1,354 1,169 5. 12. 19. 225 100 95 461 164 270 531 6,079 9,639 9,184 8,006 -6,315 -9,704 -9,359 -8,545 42.3 65.3 62.0 56.8 13,536 15,918 15,746 15,028 7,457 6,278 6,562 7,023 5,098 5,003 4,787 4,619 8,437 10,915 10,958 10,409 2,359 1,275 1,774 2,403 1,713 3,258 2,963 1,877 401 540 404 372 1,313 2,718 2,559 1,505 90 36 109 64 2,377 2,276 2,664 3,450 2,555 -2,262 -2,315 -2,673 -3,559 -2,681 38.1 39.1 44.9 59.1 44.4 4,376 4,104 4,051 4,550 3,928 2,000 1,829 1,386 1,100 1,376 1,264 1,437 1,223 1,033 1,208 3,112 2,667 2,828 3,517 2,720 736 392 164 67 165 638 860 854 935 811 274 268 352 283 258 364 592 502 652 553 -2,075 -3,471 -3,687 -3,050 34.7 58.7 60.5 50.6 3,713 4,841 4,990 4,081 1,622 1,335 1,373 1,227 1,538 1,236 1,072 1,226 2,175 3,605 3,919 2,855 84 99 302 981 1,399 1,485 1,038 299 279 219 205 Aug. Sept. 26. 8 in New York City 15. 115 51 27 29. -63 5. 159 35 22 15 143 Osoo Aug. 1 2,092 3,506 3,617 2,855 155 58 -29 17 253 271 263 141 301 4,627 5,202 5,736 4,565 3,765 -4,725 -5,372 -5,941 -4,736 -4,048 53.9 61.3 66.8 53.6 45.8 9,640 10,062 10,191 9,517 9,467 5,013 4,860 4,455 4,952 5,702 3,483 3,278 3,436 3,398 3,441 6,157 6,784 6,755 6,120 6,026 1,530 1,582 1,019 1,555 2,261 741 1,007 1,386 895 748 291 192 151 192 133 451 815 1,235 702 615 65 65 73 6 318 164 178 350 3,987 6,134 5,567 5,151 -4,240 -6,233 -5,672 -5,494 47.4 69.8 63.0 60.9 9,823 11,077 10,755 10,947 5,835 4,943 5,188 5,796 3,561 3,767 3,716 3,393 6,262 7,310 7,040 7,554 2,275 1,176 1,472 2,403 733 1,859 1,478 839 261 186 166 101 631 1,598 1,292 672 14 42 3 43 43 1,312 1,975 1,947 1,735 1,618 -1,341 -1,933 -1,987 -1,700 -1,670 85.7 122.6 121.0 109.7 103.8 2,391 2,767 2,686 2,411 2,348 1,079 793 739 676 729 915 672 653 572 644 1,476 2,095 2,033 1,839 1,704 164 121 86 104 86 489 493 504 492 512 489 493 504 492 512 -1,999 -2,552 -2,383 -3,013 121.3 153.2 142.8 730 672 722 743 670 663 663 694 2,573 2,462 2,976 60 186.1 2,677 3,236 3,124 3,670 2,006 85 1,946 2,564 2,402 2,928 9 59 48 520 529 555 545 520 529 555 545 140 60 55 -4 26 210 271 220 141 258 3,314 3,227 3,789 2,831 2,146 -3,384 -3,439 -3,954 -2,976 -2,379 47.0 47.9 54.5 41.1 32.9 7,249 7,295 7,506 7,107 7,119 3,934 4,067 3,717 4,276 4,973 2,568 2,606 2,783 2,826 2,797 4,681 4,689 4,722 4,281 4,322 1,366 1,462 933 1,451 2,176 253 514 882 403 236 291 192 151 192 133 -38 322 731 47 53 54 7 246 164 178 265 2,041 3,570 3,165 2,223 -2,241 -3,681 -3,289 -2,481 30.7 50.6 44.8 33.5 7,146 7,841 7,631 7,277 5,105 4,271 4,466 5,053 2,890 3,104 3,053 2,698 4,256 4,738 4,578 4,578 2,215 1,167 1,413 2,355 213 1,331 923 294 101 261 186 111 1,070 737 22. Sept. 12. 19. 26. 681 1,120 1,267 833 38 outside New York City Aug. 1. 8. 15. 22. 29. Sept. 5. 12. 19. 26. 102 5 in City of Chicago Aug. 1. 8. 15. 22. 29. Sept. 5. 12. 19. 26. - 2 6 -9 19 12 19 43 71 33 others Aug. 8. 15. 22. 29. Sept. 5 12. 19. 26. 1 Based upon reserve balances, including all adjustments applicable to the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, if any, were deducted. Excess reserves for later periods are net of all carryover reserves. 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank's weekly average purchases and sales are offsetting. 3 Federal funds loaned, net funds supplied to each dealer by clearing 166 211 103 128 banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. 4 Federal funds borrowed, net funds acquired from each dealer by clearing banks, reverse repurchase agreements (sales of securities to dealers subject to repurchase), resale agreements, and borrowings secured by Govt, or other issues. NOTE.—Weekly averages of daily figures. For description of series and back data, see Aug. 1964 BULLETIN, pp. 944-74. A 8 F.R. BANK INTEREST RATES • OCTOBER 1973 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sees. 13 and 13a i Federal Reserve Bank Rate on Sept. 30, 1973 Boston New York Philadelphia.. Cleveland Richmond Atlanta 7*4 m 7*4 Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco Effective date Previous rate Rate on Sept. 30, 1973 Effective date m m 7*4 Aug. Aug. Aug. Aug. Aug. Aug. 23, 14, 14, 14, 14, 16, 1973 1973 1973 1973 1973 1973 Aug. Aug. Aug. Aug. Aug. Aug. 23, 14, 14, 14, 14, 16, 1973 1973 1973 1973 1973 1973 m Wi 7*4 m m 7*4 Aug. Aug. Aug. Aug. Aug. Aug. 14, 14, 14, 14, 14, 14, 1973 1973 1973 1973 1973 1973 Aug. Aug. Aug. Aug. Aug. Aug. 14, 14, 14, 14, 14, 14, 1973 1973 1973 1973 1973 1973 1 Discounts of eligible paper and advances secured by such paper or by U.S. Govt, obligations or any other obligations eligible for F.R. Bank purchase. Maximum maturity: 90 days except that discounts of certain bankers' acceptances and of agricultural paper may have maturities not over 6 months and 9 months, respectively. 2 Advances secured to the satisfaction of the F.R. Bank. Maximum maturity: 4 months. 3 Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of, or obligations fully Loans to all others under last par. Sec. 13 3 Under Sec. 10(b) 2 Previous rate Rate on Sept. 30, 1973 4 9*4 7*4 m m 7*4 91/2 m 9*4 4 9*4 4 7*4 9*4 m 7*4 4 9*4 4 9*4 4 9*4 4 9*4 4 m m 7*4 m m 9*4 9*4 Effective date Aug. Aug. Aug. Aug. Aug. Aug. 23, 14, 14, 14, 14, 16, 1973 1973 1973 1973 1973 1973 Aug. Aug. Aug. Aug. Aug. Aug. 14, 14, 14, 14, 14, 14, Previous rate 1973 1973 1973 1973 1973 1973 guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum maturity: 90 days. 4 Also effective on the same dates as the other rates shown above for the eight Reserve Banks so designated, a rate of 7 *4 percent was approved on advances to nonmember banks, to be applicable in special circumstances resulting from implementation of changes in Regulation J, which became effective on Nov. 9, 1972. See "Announcements" on p. 942 of the Oct. 1972 BULLETIN a n d p. 9 9 4 o f t h e N o v . 1 9 7 2 BULLETIN. SUMMARY OF EARLIER CHANGES (Per cent per annum) Effective date Range (or level)— All F.R. Banks F.R. Bank of N.Y. li/z 1*4 1*4-134 1*4-13/4 1*4 134 134 134 2 1955—Apr. 14 15 May 2 Aug. 4 5 12 Sept. 9 13 Nov. 18 23 134-2*4 134-2*4 2 -2*4 2 -2*4 21/4 21/4-21/2 21/2 1956—Apr. 13 20 Aug. 24 31 21/2-3 234-3 23,4-3 3 234 234 3 3 1957—Aug. 9 23 Nov. 15 Dec. 2 3 -3*4 31/2 3 -3*4 3 3 3*4 3 3 1958—Jan. 22 24 Mar. 7 13 21 Apr. May 9 Aug. 15 Sept. 12 2%-3 234-3 2*4-3 2*4-234 21/4 1^-2*4 134 134-2 134-2 Oct. 24 Nov. 7 2 -21/2 21/2 3 234 2*4 2*4 21/4 134 134 134 2 2 2 2*4 134 2 2 2*4 2*4 2*4 2*4 Effective date 1959—Mar. 6 16 May 29 June 12 Sept. 11 18 1960—j u n e 3 10 14 Aug. 12 Sept. 9 1963—July 17, 26, 1964—Nov. 24, 30, 1965—Dec. 6, 13, 1967—Apr. 7, 14, Nov. 20 27, 1968—Mar. 15 22 Apr. 19 26 Aug. 16 30 Dec. 18 20 1969—Apr. 4 NOTE.—Rates under Sees. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Range (or level)— All F.R. Banks 2*4-3 3 F.R. Bank of N.Y. 3 3 3 -3*4 31/2 4 3*4-4 4 4 4 3*4 3V2 31/2-4 31/2-4 3% 3 -3% 3 -3i/ 2 314 3*4-4 4 4 -41/2 41/2 4 -41/2 4 4 -41/2 41/2 41/2-5 5 5 -51/2 51/2 514-51,4 5*4 51/4-514 51/2 51/2-6 6 3 *4 Effective date 1970—Nov. 11 13 16 Dec. 1971—Jan. 3i4 3 3 3*4 31/4 4 4 41/4 41/2 4 4 41/2 41/2 4*4 5 51/4 5% 5Vi 51/4 5*4 5*4 6 6 Feb. July Nov. Dec. 1973—Jan. Feb. Mar. Apr. May 1 ^4 8 15 19 22 29 13 19 16 23 11 19 13 17 24 15 26 2 23 4 11 18 June 11 15 July 2 Aug. 14 23 In effect Sept. 30, 1973... Range (or level)— All F.R. Banks F.R. Bank of N.Y. 534-6 534-6 534 5*4-534 5*4-534 5*4 5*4-5*4 5*4 5 -51/4 5 -5*4 5 434-5 434 434-5 5 434-5 434 4*4-434 41/2-434 6 534 53/4 534 5*4 5*4 514 51/4 51/4 5 5 5 434 5 5 5 434 434 4*4 4*4 5 5*4 5*4 5*4 534 6 6 6*4 5 5 -5*4 5*4 51/2-53/4 53* 534-6 6 6 -6*4 6*4 7 7 -7*4 7*4 7 7*4 7*4 7*4 7*4 6*4 OCTOBER 1973 • RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand Effective date i Reserve city Over 5 0-5 Over 5 Savings 0-5 Over 5 16% 17 17 17% 12 12% 12% 13 3% 3 3% 3 2 - 1 0 10-100 100-400 Savings Over 400 5 Over 0-5 10 10% 12% In effect Sept. 30, 1973 10% 12% 12 7 16% Present legal requirement: Net demand deposits, reserve city banks. Net demand deposits, other banks Time deposits 1 When two dates are shown, the first applies to the change at reserve city banks and the second to the change at country banks. For changes prior to 1963 see Board's Annual Reports. 2 (a) Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand balances due from domestic banks. (b) Requirement schedules are graduated, and each deposit interval applies to that part of the deposits of each bank. (c) Since Oct. 16, 1969, member banks have been required under Regulation M to maintain reserves against foreign branch deposits computed on the basis of net balances due from domestic offices to their foreign branches above a specified base and against foreign branch loans to U.S. residents, which until June 21,1973, were also maintained above a specified base. The reserve-free base relating to net balances due from domestic banks to foreign branches is being reduced gradually beginning July 5, 1973, and will be eliminated by April 1974. The applicable reserve percentage, originally 10 per cent, was increased to 20 per cent on Jan. 7,1971, and effective June 21, 1973, was reduced to 8 per cent. Regulation D imposes a similar reserve requirement on borrowings above a specified base from foreign banks by domestic offices of a member bank. The reserve-free base related to this type of borrowings is being reduced gradually and will be eliminated by April 1974. For details, see Regulations D and M and appropriate supplements and amendments thereto. 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation club accounts became subject to same requirements as savings deposits. For other notes see 2(b) and 2(c) above. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate reserve cities, and on the same date requirements for reserves against net demand deposits of member banks were restructured to provide that each member bank will maintain reserves related to the size of its net demand deposits. The new reserve city designations are as follows: A bank having net demand deposits of more than $400 million is considered to have the 3 Other time 0-2 1972—Nov. 9 . . Nov. 16. 12 16% Time Effective date Other time Other 0-5 Net demand 2 4 1973—July 19.. In effect Jan. 1,1963. 1966—July 14, 21. Sept. 8, 15. 1967—Mar. 2 . . . . Mar. 1 6 . . . . 1968—Jan. 11, 18. 1969—Apr. 1 7 . . . . 1970— Oct. 1 Time 3 (all classes of banks) 2 13 13% 13% 83 17% 56 »5 18 18 Minimum Maximum 10 7 3 22 14 10 character of business of a reserve city bank, and the presence of the head office of such a bank constitutes designation of that place as a reserve city. Cities in which there are F.R. Banks or branches are also reserve cities. Any banks having net demand deposits of $400 million or less are considered to have the character of business of banks outside of reserve cities and are permitted to maintain reserves at ratios set for banks not in reserve cities. For details, see Regulation D and appropriate supplements and amendments. 5 Reserve city banks. 6 Except as noted below, effective Sept. 20, 1973, member banks are subject to an 11 per cent marginal reserve requirement against increases in the aggregate of (a) outstanding time deposits of $100,000 and over, (b) outstanding funds obtained by the bank through issuance by a bank's affiliate of obligations subject to the existing reserve requirements on time deposits, and (c) funds from sales of finance bills. The 11 per cent requirement applies to balances above a specified base, but is not applicable to banks that have obligations of these types aggregating less than $10 million. For the period June 21 to Aug. 30, 1973, (a) included only single-maturity time deposits. A requirement of 8 per cent was in effect for (a) and (b) from June 21 to Sept. 19, 1973, and for (c) from July 12 to Sept. 19, 1973. For details, see Regulation D and appropriate supplements and amendments. 7 The 16% per cent requirement applied for one week, only to former reserve city banks. For other banks, the 13 per cent requirement was continued in this deposit interval. 8 See preceding columns for earliest effective date of this rate. NOTE.—All required reserves were held on deposit with F.R. Banks June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member banks were allowed to count part of their currency and coin as reserves; effective Nov. 24, 1960, they were allowed to count all as reserves. For further details, see Board's Annual Reports. A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • OCTOBER 1973 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) July 20, 1966 Type of deposit Sept. 26, 1966 Apr. 19, 1968 June 24, 1970 May 16, 1973 4*4 4% 4% 4% Savings deposits Other time deposits: 1 Multiple maturity:2 30-89 days 90 days-1 year 1 year to— 2 years l l / i years 2 years and over IVi years and over 4 years and over (minimum denomination of $1,000).. 4% 4% 5 5 5 5% '53/4' Single maturity: Less than $100 000: 30-89 days 90 days-1 year 1 year to— 2 years 2 lA years 2 years and over 2Yi years and over 4 years and over (minimum denomination of $1,000). $100,000 and over: 30-59 days 60-89 days 90-179 days 180 days-1 year 1 year or more 1 Jan. 21, 1970 5 5 5% 5 FC 5% 5% '5 w 5% 51/2 5VI 51/2 5% 5 V4 5% For exceptions with respect to certain foreign time deposits, see 2 Multiple-maturity time deposits include deposits that are automatically renewable at maturity without action by the depositor and deposits that are payable after written notice of withdrawal. 3 N o ceiling for certificates with minimum denomination of $1,000. Amount of such c e r t i f i c a t e s that a bank may issue is limited to 5 per cent of its total time and savings deposits. Any sales in excess of that amount are subject to the 6% per cent ceiling that applies to time deposits maturing in 2l /i years or more. 4 Suspended as of this date. 5 5 5% 5V4 "s'Va 5% BULLETIN f o r F e b . 1 9 6 8 , p . 1 6 7 . 5 5 5% 5% 6 6% 6% 6% 6V4 6ft 7 7% (4) (4) 6*4 7 7% NOTE.—Maximum rates that may be paid by member banks are established by the Board of Governors under provisions of Regulation Q; however, a member bank may not pay a rate in excess of the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Feb. 1, 1936, maximum rates that may be paid by nonmember insured commercial banks, as established by the FDIC, have been the same as those in effect for member banks. For previous changes, see earlier issues of the BULLETIN. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks 1937—Nov. 1945—Feb. July 1946—Jan. 1947—Feb. 1949—Mar, 1951—Jan. 1953—Feb. 1955—Jan. Apr. 1958—Jan. Aug. Oct. 1960—July 1962—July 1963—Nov. 1 5 5 21 1 30 17 20 4 23 16 5 16 28 10 6 On convertible bonds Ending date Beginning date 1945—Feb. July 1946—Jan. 1947—Jan. 1949—Mar. 1951—Jan. 1953—Feb. 1955—Jan. Apr. 1958—Jan. Aug. Oct. 1960—July 1962—July 1963—Nov. 1968—Mar. June 1968—Mar. 11 1970—May June 8 1971-TrDec. 1970—May 6 1971—Dec. 1972—Nov. 6 Effective Nov. 24, 1972. 20. 31 29. 16, 19. 3 22 15 4, 15. 27 5. 10 7. 5 22 On short sales (T) 50 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 40 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 70 50 80 60 65 55 65 50 50 50 70 80 65 55 65 NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. 4 (4 ) (4) ( ) OCTOBER 1973 • OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Month Gross purchases Gross sales 1972—Aug.. Sept.. Oct.. Nov.. Dec.. 1,390 9,369 2,795 2,638 5,083 1,752 8,673 2,425 2,880 4,640 1973—Jan.., Feb.. Mar.. Apr.. May. June. July. Aug.. 3,060 6,275 3,510 3,685 1,822 5,904 5,071 10,287 1,735 5,216 2,201 2,101 1,728 4,848 3,900 10,577 Gross purchases Gross sales 432 850 150 351 135 1,274 9,369 2,678 2,638 5,083 1,752 8,673 2,425 2,880 4,640 200 200 51 600 163 60 456 3,060 6,079 3,510 3,478 1,822 5,677 5,045 10,287 1,735 5,216 2,201 2,101 1,728 4,848 3,900 10,577 Gross purchases 432 850 150 300 200 200 51 600 163 60 456 Redemptions Redemptions Over 10 years 5 - 1 0 years 1972—Aug.. Sept.. Oct.. Nov.. Dec.. 1973—Jan.. Feb.. Mar. Apr.. May. June. July . Aug.. Gross sales Exch. or maturity shifts 166 23 Gross purchases 15 -1,408 25 -2,068 79 78 '37* 'si' 123 Federal agency obligations (net) Net change in U.S. Govt, securities 8,928 3,034 5,478 5,978 8,240 5,621 6,686 2,492 -82 -866 Repurchase agreements Outright, net -3 -35 2,116 599 1,656 1,218 -1,367 893 2,076 -1,005 i Net change in U.S. Govt, securities, Federal agency obligations, and bankers' acceptances. Bankers' acceptances Outright 220 -593 405 100 468 -568 2,459 1,844 3,594 3,547 4,765 -78 -1,316 1,316 3,171 1,132 3,594 3,547 4,863 11 19 3,476 61 17 27 Gross sales 9,719 2,774 6,024 5,664 7,379 5,621 7,651 2,234 -411 127 50 Gross purchases 32 Exch. or maturity shifts 673 79 360 -135 Exch. or maturity shifts 32 Gross sales 35 250 Gross sales Gross purchases -1,089 Month Gross purchases Exch., maturity shifts, or redemptions Gross sales 42 Repurchase agreements (U.S. Govt, securities) Outright transactions in U.S. Govt, securities—Continued 1-5 years Others within 1 year Treasury bills 74 -74 4 -4 7 -22 157 134 48 -18 -28 61 -65 -29 210 168 22 -1,009 206 -442 596 23 95 2,197 644 1,636 1,106 -1,470 1,085 2,416 -915 7 11 -3 106 157 -20 -1 7 -1 -66 -36 -52 -17 -12 -7 Net change 1 30 -30 - 6 13 -14 -19 -21 Under repurchase agreements, net 78 -41 NOTE.—Sales, redemptions, and negative figures reduce System holdings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period 1969—Dec. 1970—Dec. 1971—Dec. Total Pounds sterling 1,967 257 18 1,575 154 3 1972—June July. Aug. Sept. Oct.. Nov, Dec. 18 7 34 122 211 200 192 1973—Jan.. Feb. Mar. Apr. May June 92 4 4 4 4 4 2 1 * * * * * * * * * * * Austrian schillings Belgian francs Canadian dollars Danish kroner French francs 199 German marks 60 98 2 Italian lire Japanese yen Netherlands guilders Swiss francs 4 4 125 8 9 1 24 85 164 164 164 16 20 20 67 20 5 7 3 35 21 7 6 3 3 3 3 3 3 A 12 FEDERAL RESERVE BANKS • OCTOBER 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday Item End of month 1973 1973 Sept. 26 Sept. 19 Sept. 12 10,303 400 10,303 400 10,303 400 Sept. 5 Aug. 29 Sept. 30 1972 Aug. 31 Sept. 30 Assets Gold certificate account Special Drawing Rights certificate account 10,303 400 10,303 400 10,303 400 10,303 400 10,303 400 305 Total bought outright 309 344 1,559 2,842 239 36 38 41 46 39 106 47 37 62 1,567 1,567 1,592 1,597 1,567 168 1,597 263 1,041 32,451 32,469 169 33,502 33,567 34,100 34,585 29,660 37,374 3,428 37,374 3,428 37,374 3,428 37,374 3,428 37,374 3,428 37,374 3,428 36,703 3,511 174,799 515 Notes 314 3,467 37,374 3,428 Other 307 1,342 33,977 U.S. Govt, securities: Bought outright: Bills 299 1,279 1,567 108 Federal agency obligations: 299 2,286 38 19 Other Acceptances: 303 4,520 Loans: 1,2 73,253 1,2 73,440 1,2 74,304 1,2 74,369 1 74,902 1,263 i 75,387 706 168,874 Total U.S. Govt, securities 75,294 73,253 73,440 74,304 74,369 76,165 76,093 69,874 Cash items in process of collection 81,546 "8,788 212 77,142 "10,788 210 76,324 "9,836 210 77,279 "8,451 210 79,479 7.893 210 79,604 "7,435 213 80,879 6,236 210 71,216 10,553 168 4 780 4 736 4 651 5 604 4 583 4 757 5 535 122 760 "102,338 "99,886 "98,027 "97,551 99,179 "99,030 98,877 93,866 Other assets: Denominated in foreign currencies Liabilities 60,427 61,033 60,930 60,433 60,174 60,338 54,993 p27,482 1,105 411 P27,255 2 "25,340 1,102 284 27,792 1,431 257 "28,190 1,624 250 28,955 848 259 27,515 1,394 193 3 670 31,010 "33,123 Other: 60,622 "30,869 1,125 459 Deposits: 277 3 805 3 760 614 30,220 "30,869 30,822 29,716 6,470 887 5,997 875 6,143 890 5,444 1,058 4,966 968 4,631 1,035 6,910 538 "100,342 p97,987 "96,215 "95,430 97,155 "96,977 96,826 92,157 829 793 374 828 793 278 828 793 191 828 793 500 827 793 404 829 793 431 827 793 431 779 742 188 "102,338 Total liabilities 3 740 "27,467 5,843 949 Deferred availability cash items Other liabilities and accrued dividends 3 741 "30,008 3 776 "28,310 "99,886 "98,027 "97,551 99,179 "99,030 98,877 93,866 546 551 534 522 518 548 522 261 27,504 27,262 27,260 27,927 28,215 27,355 28,043 29,625 Capital accounts Total liabilities and capital accounts Contingent liability on acceptances purchased for foreign correspondents Marketable U.S. Govt, securities held in custody for Federal Reserve Notes—Federal Reserve Agents* Accounts 64,898 i See note 8 on p. A-5. 65,014 64,943 64,700 64,512 64,939 64,616 63,653 2,415 64,025 2,415 64,025 2,415 63,690 2,415 63,690 2,415 63,690 2,415 64,025 2,415 63,690 2,155 62,645 66,440 Collateral held against notes outstanding: 66,440 66,105 66,105 66,105 66,440 66,105 64,800 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. OCTOBER 1973 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON SEPTEMBER 30y 1973 (In millions of dollars) Item Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Assets Gold certificate account Special Drawing Rights certificate account F.R. notes of other banks 10,303 534 1,628 716 816 1,100 457 2,002 492 236 42 610 1,670 400 1,454 314 23 191 17 93 324 27 23 50 4 33 65 33 36 118 36 22 236 42 70 64 36 15 36 20 7 31 7 15 46 37 14 87 14 49 206 41 72 12 116 88 28 29 104 131 99 91 62 253 75 42 12 23 4 85 88 34 40 49 21 Loans: Secured by U.S. Govt, and agency 1,028 obligations 531 Other Acceptances: 39 Bought outright 106 Held under repurchase agreements.. Federal agency obligations: 1,567 Bought outright 168 Held under repurchase agreements.. U.S. Govt, securities: 174,902 Bought outright 1,263 Held under repurchase agreements.. 419 168 85 119 112 84 249 57 29 66 66 210 3,404 20,008 1,263 4,085 5,687 5,347 4,028 11,888 2,714 1,409 3,163 3,145 10,024 79,604 3,559 22,207 39 106 71 4,227 5,911 5,689 4,265 12,465 2,825 1,465 3,402 3,285 10,304 Cash items in process of collection... 8,845 213 357 39 1,544 7 443 9 372 27 888 14 845 15 1,022 17 411 14 469 34 648 17 592 12 Other assets: Denominated in foreign currencies.. All other 1,254 8 757 4 34 209 2 1 40 54 57 50 111 25 16 30 30 101 1 4,754 26,040 5,512 7,312 7,938 5,932 15,788 3,838 2,265 4,237 4,644 13,634 101,894 Total assets Liabilities F.R. notes 61,628 3,115 15,349 3,818 4,908 5,474 3,147 10,346 2,422 1,104 2,414 2,351 7,180 Deposits: 28,190 1,624 250 1,040 146 10 7,663 409 3 73 1,157 90 12 1,687 113 22 1,437 166 12 1,800 137 17 3,946 91 38 864 99 8 696 44 5 1,126 61 10 1,630 96 13 5,144 172 30 U.S. Treasurer—General account.. Deferred availability cash items 805 2 666 16 2 25 17 41 2 3 2 5 24 30,869 Other:other 5 All 1,198 8,811 1,275 1,824 1,640 1,971 4,116 973 748 1,199 1,744 5,370 6,376 968 313 43 1,061 289 264 50 334 69 638 67 621 53 858 143 342 32 349 19 502 38 399 43 695 122 99,841 4,669 25,510 5,407 7,135 7,819 5,792 15,463 3,769 2,220 4,153 4,537 13,367 829 793 431 33 34 18 210 207 113 41 39 25 74 72 31 46 42 31 61 55 24 130 124 71 28 27 14 20 18 7 35 33 16 45 43 19 106 99 62 4,754 26,040 5,512 7,312 7,938 5,932 15,788 3,838 2,265 4,237 4,644 13,634 27 50 28 38 86 19 13 23 29 68 7,694 Other liabilities and accrued dividends Total liabilities Capital accounts Other capital accounts Total liabilities and capital accounts.. 101,894 Contingent liability on acceptances purchased for foreign correspond- 548 23 4 144 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) Collateral held against notes outstanding: Gold certificate account U.S. Govt, securities 64,939 3,317 16,383 3,880 5,122 5,719 3,423 10,626 2,542 1,150 2,562 2,521 2,415 64,025 175 3,185 16,650 350 3,700 350 4,850 680 5,080 3,600 700 10,100 155 2,480 1,200 2,700 5 2,580 7,900 Total collateral 66,440 3,360 16,650 4,050 5,200 5,760 3,600 10,800 2,635 1,200 2,700 2,585 7,900 1 See note 8 on p. A-5. 2 After deducting $3 million participations of other Federal Reserve Banks. 3 After deducting $177 million participations of other Federal Reserve Banks. 4 After deducting $404 million participations of other Federal Reserve Banks. 5 See note 5 on p. A-4. NOTE.—Some figures for cash items in process of collection and for member bank reserves are preliminary. A 14 FEDERAL RESERVE BANKS; BANK DEBITS • OCTOBER 1973 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1973 Item Sept. 26 Sept. 19 Loans—Total Within 15 days 16 days to 90 days 91 days to 1 year 4,520 4,451 69 2,286 2,204 82 Acceptances—Total Within 15 days 16 days to 90 days 91 days to 1 year 57 25 32 1972 Aug. 29 Sept. 30 Aug. 31 Sept. 30 1,279 1,190 89 1,342 1,254 88 3,465 3,351 114 1,559 1,478 81 2,847 2,749 98 239 232 7 36 29 7 38 5 33 41 6 35 46 13 33 145 9 136 84 47 37 62 17 45 73,253 3,871 18,368 17,783 22,171 9,358 1,702 73,440 5,214 16,494 18,501 22,171 9,358 1,702 74,304 4,193 18,301 18,579 22,171 9,358 1,702 74,369 3,959 18,285 18,894 22,171 9,358 1,702 76,165 4,524 19,845 18,565 22,171 9,358 1,702 76,093 3,982 19,995 18,886 22,170 9,358 1,702 69,874 3,705 15,805 17,889 24,859 6,102 1,514 1,675 108 92 302 615 347 211 Federal agency obligations—Total Within 15 days 1 16 days to 90 days 91 days to 1 year Over 1 year to 5 years Over 5 years to 10 years Over 10 years Sept. 5 75,294 5,228 18,326 18,509 22,171 9,358 1,702 U.S. Government securities—Total Within 15 days* 16 days to 90 days 91 days to 1 year Over 1 year to 5 years Over 5 years to 10 years Over 10 years Sept. 12 1973 1,567 1,567 92 301 615 347 . 211 92 302 615 347 211 1,592 25 7 379 622 307 252 1,597 30 7 379 622 307 252 1,735 168 92 302 615 347 211 1,860 293 7 379 622 307 252 1,041 20 24 127 525 197 148 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts i (billions of dollars) Turnover of demand deposits Period Total 233 SMSA's N.Y. 6 others 2 Total 232 SMSA's (excl. N.Y.) Leading SMSA's 226 other SMSA's Total 233 SMSA's Leading SMSA's N.Y. 6 others 2 Total 232 SMSA's (excl. N.Y.) 226 other SMSA's 1972—Aug Sept Oct Nov Dec 13,969.4 14,022.7 13,896.7 15,154.7 14,783.7 6,151.8 6,285.1 6,148.6 6,979.3 6,604.8 3,233.0 3,191.0 3,225.8 3,411.9 3,495.4 7,817.6 7,737.6 7,748.1 '8,175.3 '8,178.9 4,584.6 4,546.5 4,522.3 4,763.5 '4,683.5 87.6 88.7 86.7 93.5 90.7 206.9 214.9 208.3 229.2 215.7 90.2 89.8 89.2 93.9 95.6 60.2 60.1 59.2 62.1 61.8 48.8 48.8 47.8 50.0 48.9 1973—Jan Feb Mar Apr May June July Aug. r r 6,855.4 7,227.0 6,844.8 6,297.5 7,177.0 7,244.6 7,381.4 7,744.6 3,652.6 3,787.3 3,855.9 3,873.0 3,906.1 4,034.9 '4,278.8 4,315.1 '8,615.8 '8,821.9 '9,087.2 '9,071.5 '9,254.6 '9,395.4 '9,833.6 10,151.7 '4,963.2 '5,034.6 '5,231.3 '5,198.6 '5,348.0 '5,360,5 '5,555.7 5,836.5 94.0 97.8 96.9 95.9 97.7 99.8 102.5 106.2 224.0 238.0 228.3 228.9 235.1 245.0 247.5 252.5 98.4 102.7 104.0 102.3 103.4 107.2 '111.5 113.5 64.3 65.9 67.6 66.4 67.2 68.6 71.2 73.7 51.2 52.0 53.8 52.7 53.5 54.0 55.7 58.5 15,471.2 '16,048.9 15,932.0 '15,999.5 '16,431.6 '16,620.0 '17,215.0 17,896.3 t Excludes interbank and U.S. Govt, demand deposit accounts. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach. NOTE.—Total SMSA's includes some cities and counties not designated as SMSA's. For back data see pp. 634-35 of July 1972 BULLETIN. OCTOBER 1973 • U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Large denomination currency Coin and small denomination currency Total in circulation 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 1939 1941 1945 1947 7,598 11,160 28.515 28,868 5,553 8,120 20,683 20,020 590 751 1,274 1.404 559 695 1,039 1.048 36 44 73 65 1,019 1,355 2,313 2,110 1,772 2,731 6,782 6,275 1,576 2,545 9,201 9,119 2,048 3,044 7,834 8,850 460 724 2,327 2,548 919 1,433 4,220 5,070 191 261 454 428 425 556 801 782 20 24 7 5 32 46 24 17 1950 1955 195 9 27,741 31,158 32,591 19,305 22,021 23,264 1,554 1,927 2,304 1,113 1,312 1,511 64 75 85 2,049 2.151 2,216 5,998 6,617 6,672 8,529 9,940 10.476 8,438 9,136 §,326 2,422 2,736 2,803 5,043 '5,641 5,913 368 307 261 588 438 341 4 3 3 12 12 5 1960 196 1 196 2 196 3 196 4 32,869 33,918 35,338 37,692 39,619 23,521 24,388 25,356 26,807 28,100 2,427 2,582 2,782 3,030 3.405 1,533 1,588 1,636 1,722 1,806 88 92 97 103 111 2,246 2,313 2,375 2,469 2,517 6,691 6,878 7,071 7,373 7,543 10,536 10,935 11,395 12,109 12,717 9,348 9,531 9,983 10,885 11,519 2,815 2,869 2,990 3,221 3,381 5,954 6,448 7,110 7,590 249 242 240 249 248 316 300 293 298 293 3 3 3 3 2 10 10 10 196 5 196 6 196 7 196 8 1969 42,056 44,663 47,226 50,961 53,950 29,842 31,695 33,468 36,163 37,917 4,027 4,480 4,918 5,691 6,021 1,908 2,051 2,035 2.049 2,213 127 137 136 136 136 2,618 2,756 2,850 2,993 3,092 7,794 8,070 8,366 8,786 8,989 13,369 14,201 15,162 16,508 17,466 12,214 12,969 13,758 14,798 16,033 3,540 3,700 3,915 4,186 4,499 8,135 8,735 9,311 10,068 11,016 245 241 240 244 234 288 286 285 292 276 3 3 3 3 3 197 0 197 1 57.093 61,068 39,639 41,831 6,281 6,775 2,310 2,408 136 135 3,161 3,273 9,170 9,348 18,581 19,893 17,454 19,237 4,896 5,377 12,084 13,414 215 203 252 237 3 2 1972—Au g Sept Oct Nov Dec 62,744 62,599 63,586 65,137 66.516 42,520 42,341 43,085 44,208 45,105 7,095 7,116 7,172 7,237 7,287 2,333 2,329 2,378 2,437 2,523 135 135 135 135 135 3.152 3,139 3,209 3,305 3,449 9,211 9,146 9,334 9,602 9,827 20,594 20.477 20,857 21,491 21,883 20,224 20,258 20,500 20,928 21,411 5,565 5,492 5,570 5,714 5,868 14^228 14,336 14,503 14,789 15,118 196 195 194 194 193 229 228 226 225 225 2 2 2 2 2 1973—Jan Feb Mar Apr May June July Aug 64,312 64,696 65,180 66.094 67,161 67,771 68,223 68,376 43,133 43,431 43,699 44,313 45,074 45,428 45,564 45,553 7,274 7,290 7,320 7,382 7,446 7,498 7,542 7,577 2,380 2,370 2,368 2,406 2.439 2,433 2.440 2,430 135 135 135 135 135 135 135 135 3,218 3,213 3,209 3,234 3,302 3,309 3,301 3,288 9,243 9,330 9,352 9,447 9,613 9,648 9,602 9,566 20,883 21,091 21,314 21,707 22,138 22,405 22,544 22,557 21,179 21,266 21,482 21,781 22,088 22,343 22,659 22,822 5,742 5,755 5,787 5,887 5,974 6,024 6,116 6,149 15,013 15,089 15,274 15,476 15,697 15,903 16,130 16,261 192 192 191 224 224 223 189 189 188 221 220 219 219 2 2 2 End of period 2 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational breakdown is not available. 6,106 190 188 $1,000 $5,000 $10,000 222 2 2 2 2 2 Paper currency only; $1 silver coins reported under coin. NOTE.—Condensed from Statement of United States Currency and Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Currency in circulation Held in the Treasury Kind of currency Gold pBrlpral P pcprvp nofps TfAacnrv piiTrpnrv Tntal T>» 1 r " r 1 nc Frartinnal pnin TTnitf»H Stnti»« notpt It, nn A C A rptifAm^nt 3 rp C f Xrt+al A c 11 1Q71 n» Tnlv 11 1971 Aiicr It 1972 Total, outstanding, As security Treasury against Aug. 31, cash 1973 gold certificates 10,410 (10,303) 64,617 8,585 (10,303) 483,612 483,214 1 Outside Treasury and F.R. Banks. Includes any paper currency held outside the United States and currency and coin held by banks. Estimated totals for Wed. dates shown in table on p. A-5. 2 Consists of credits payable in gold certificates, the Gold Certificate Fund—Board of Governors, FRS. 3 Redeemable from the general fund of the Treasury. 2 10,302 16 72 2 (10,303) (10,303) (10,303) 346 323 304 1 1972 1973 1 10,302 10,302 10.302 Aug. 31 July 31 Aug. 31 60,189 8,186 60,072 8,151 55,037 7,707 37 270 107 148 91 767 7,206 323 289 . . . . 477,650 For F.R. Banks and Agents Held by F.R. Banks and Agents 714 6,863 320 289 710 6,832 320 289 644 6,451 320 292 4,589 4,366 4,300 68,376 1 4,279 307 68,223 62,744 4 Does not include all items shown, as gold certificates are secured by gold. Duplications are shown in parentheses. NOTE.—Prepared from Statement of United States Currency and Coin and other data furnished by the Treasury. For explanation of currency reserves and security features, see the Circulation Statement or the Aug. 1961 BULLETIN, p. 9 3 6 . MONEY STOCK • OCTOBER 1973 A 16 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mi Mi Mi Mi Mi Composition of measures is described in the NOTE below. 1969—Dec 1970—Dec 1971—Dec 208.8 221.3 236.0 392.3 425.2 473.8 594.0 641.3 727.7 214.9 227.7 242.8 397.0 430.0 478.7 598.4 645.6 731.9 1972—Sept Oct Nov Dec 250.1 251.6 252.7 255.5 512.1 516.4 519.8 525.1 799.0 807.0 813.6 822.0 248.7 251.2 254.3 262.9 510.4 515.2 518.7 530.3 796.9 805.2 811.2 826.5 255.4 256.7 256.6 258.2 260.5 263.2 264.3 r 263.9 263.6 527.9 530.5 532.6 536.2 540.6 545.3 547.6 r 550.5 552.2 828.7 834.9 839.7 845.6 852.0 859.4 863.4 r 866.4 868.5 262.6 254.0 254.1 259.5 256.0 261.2 263.2 r 260.7 262.1 534.1 527.8 531.4 539.5 538.2 544.7 546.6 r 547.0 550.2 834.6 831.6 838.8 849.8 850.2 859.9 863.6 '862.8 866.1 1973—Jan Feb Mar Apr May June July Aug Sept." Week ending— Sept. 5 12" 19" 26" 263.8 264.0 263.6 261.8 552.2 551.9 551.6 550.9 261.4 263.5 263.5 259.0 549.4 551.2 551.0 547.2 Oct. 3" 264.6 554.6 262.7 552.3 NOTE.—Composition of the money stock measures is as follows: Mi: Averages of daily figures for (1) demand deposits of commercial banks other than domestic interbank and U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of commercial banks. Mr. Averages of daily figures for My plus savings deposits, time de- posits open account, and time certificates other than negotiable CD's of $100,000 of large weekly reporting banks. Mi: Mi plus the average of the beginning- and end-of-month figures for deposits of mutual savings banks and for savings capital of savings and loan associations. For description and back data, see "Revision of the Money Stock Measures and Member Bank Reserves and Deposits" on pp. 61-79 of the Feb. 1 9 7 3 BULLETIN. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Month or week Currency Demand deposits Time and savings deposits CD's i Other Nonbank thrift institutions 2 Commercial banks Currency Total Demand deposits Time and savings deposits CD's i Other Nonbank thrift institutions 2 U.S. Govt, deposits 3 Total 1969—Dec 1970—Dec 1971—Dec 46.1 49.1 52.6 162.7 172.2 183.4 10.9 25.3 33.0 183.5 203.9 237.9 194.4 229.2 270.9 201.7 216.1 253.8 46.9 50.0 53.5 167.9 177.8 189.2 11.1 25.8 33.8 182.1 202.3 236.0 193.2 228.1 269.8 201.4 215.6 253.2 5.6 7.3 6.9 1972—Sept Oct Nov Dec 55.3 55.7 56.2 56.8 194.8 195.9 196.5 198.7 39.8 40.0 41.2 43.2 262.0 264.8 267.1 269.6 301.9 304.8 308.4 312.8 286.9 290.6 293.8 296.9 55.2 55.7 56.7 57.8 193.5 195.5 197.7 205.0 41.0 41.9 43.3 44.3 261.7 264.0 264.4 267.5 302.7 305.9 307.7 311.7 286.5 290.0 292.5 296.1 5.9 6.6 6.2 7.3 1973—Jan Feb Mar Apr May June July Aug Sept." 57.0 57.5 57.9 58.7 59.0 59.4 59.5 59.7 60.1 198.4 199.3 198.7 199.5 201.6 203.9 204.9 r 204.2 203.5 44.4 48.8 54.9 58.7 61.7 62.0 64.5 67.0 67.1 272.5 273.8 276.0 278.0 280.1 282.0 283.3 286.6 288.6 316.9 322.6 330.9 336.7 341.8 344.1 347.7 353.6 355.6 300.8 304.4 307.0 309.4 311.4 314.1 315.8 r 315.9 316.3 56.7 56.7 57.3 58.2 58.7 59.4 59.9 60.0 60.0 205.9 197.3 196.7 201.3 197.3 201.8 203.2 200.8 202.1 45.1 48.6 54.0 56.1 58.8 59.3 62.3 68.4 69.2 271.5 273.8 277.3 280.0 282.2 283.4 283.5 r 286.3 288.1 316.6 322.5 331.4 336.1 340.9 342.7 345.8 r 354.7 357.2 300.5 303.8 307.4 310.3 312.0 315.2 316.9 r 315.8 315.9 8.0 9.6 10.1 8.2 8.4 6.9 6.3 4.0 5.1 Week ending— Sept. 5 12" 19" 26" 60.1 60.0 60.0 60.0 203.7 204.0 203.5 201.8 67.1 67.4 68.1 66.9 288.4 287.9 288.1 289.1 355.5 355.3 356.2 356.0 60.2 60.4 60.0 59.5 201.1 203.1 203.5 199.4 69.4 69.3 69.5 69.2 288.0 287.7 287.5 288.2 357.4 357.0 357.0 357.4 3.1 3.5 4.9 6.7 Oct. 3" 60.0 204.6 65.3 290.0 355.3 59.8 202.9 67.9 289.6 357.5 7.8 1 Negotiable time certificates of deposit issued in denominations of $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of mutual savings banks and savings capital at savings and loan associations. 3 At all commercial banks. See also NOTE above, OCTOBER 1973 • BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Deposits subject to reserve requirements 3 Member bank reserves, S.A.1 S.A. Period Nonborrowed Total Required Available 2 Total Total member bank deposits plus nondeposit items 4 N.S.A. Demand Time and savings Private U.S. Govt. Total Demand Time and savings Private U.S. Govt. S.A. N.S.A. 1969—Dec.... 1970—Dec.... 1971—Dec.... 27.96 29.12 31.21 26.70 28.73 31.06 27.73 28.91 31.06 25.34 26.98 28.91 287.7 321.3 360.3 150.4 178.8 210.4 131.9 136.0 143.8 5.3 6.5 6.1 291.2 325.2 364.6 149.7 178.1 209.7 136.9 141.1 149.2 4.6 6.0 5.7 307.7 332.9 364.3 311.1 336.8 368.7 1972—Sept.... Oct Nov.... Dec.... 33.33 33.83 31.88 31.31 32.87 33.30 31.30 30.06 33.14 33.60 31.54 31.07 30.89 30.97 29.50 28.86 390.4 394.1 397.6 402.0 233.0 235.1 237.9 241.2 152.4 152.7 152.8 154.3 5.1 6.3 6.9 6.5 389.6 394.1 396.4 406.8 233.8 236.2 237.6 240.7 150.9 152.5 153.7 160.1 4.9 5.4 5.1 6.1 394.5 398.4 401.9 406.4 393.8 398.4 400.7 411.2 1973—Jan Feb Mar Apr May June.... July.... Aug.. .. Sept.f.. 32.24 31.65 32.00 32.33 32.45 32.46 33.57 r 33.90 34.14 30.85 29.79 29.53 30.17 30.20 30.80 32.33 32.00 32.60 31.98 31.44 31.77 32.08 32.28 32.21 33.30 33.74 33.96 29.41 29.30 29.62 29.86 30.10 30.51 31.32 r 31.96 32.31 404.7 410.2 416.7 421.1 425.1 428.9 431.2 436.7 438.7 243.7 248.5 256.0 261.8 265.8 267.4 270.4 r 275.6 277.3 153.9 154.5 153.2 153.4 154.7 156.4 157.3 '156.9 156.4 7.1 7.2 7.5 5.8 4.6 5.1 3.4 4.2 5.1 410.4 409.0 416.3 422.3 423.0 426.3 429.9 433.7 437.9 243.8 248.5 256.2 260.5 264.5 265.9 268.5 r 276.6 278.9 160.0 152.4 151.6 154.9 151.4 154.8 156.2 154.0 154.8 6.6 8.1 8.5 6.8 7.0 5.7 5.1 3.1 4.1 409.2 414.8 421.6 426.2 430.5 434.5 437.7 443.9 446.0 414.9 413.5 421.2 427.5 428.4 431.9 436.4 440.8 445.1 1 Averages of daily figures. Member bank reserve series reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and M. Required reserves were increased by $660 million effective Apr. 16, 1969, and $400 million effective Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. Required reserves were reduced by approximately $2.5 billion, effective Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. 2 Reserves available to support private nonbank deposits are defined as (1) required reserves for (a) private demand deposits, (b) total time and savings deposits, and (c) nondeposit sources subject to reserve requirements, and (2) excess reserves. This series excludes required reserves for net interbank and U.S. Govt, demand deposits. 3 Averages of daily figures. Deposits subject to reserve requirements include total time and savings deposits and net demand deposits as defined by Regulation D. Private demand deposits include all demand deposits except those due to the U.S. Govt., less cash items in process of collection and demand balances due from domestic commercial banks. 4 Total member bank deposits subject to reserve requirements, plus Euro-dollar borrowings, bank-related commercial paper, and certain other nondeposit items. This series for deposits is referred to as "the adjusted bank credit proxy." NOTE.—For description of revised series and for back data, see article "Revision of the Money Stock Measures and Member Bank Reserves and Deposits" on pp. 61-79 of the Feb. 1973 BULLETIN. Due to changes in Regulations M and D, member bank reserves include reserves held against nondeposit funds beginning Oct. 16, 1969. Back data may be obtained from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Loans Total loans and investments 1 Date Not seasonally adjusted Securities Commercial and industrial Total 1 Plus loans sold 2 Total Plus loans sold 2 U.S. Treasury Other 3 Total loans and investments 1 Loans Securities Commercial and industrial Total 1 Plus loans sold 2 Total Plus loans sold 2 U.S. Treasury Other 3 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31 4 31 . . . 31 31 390.6 402.1 435.9 485.7 258.2 279.4 292.0 320.6 '283.'3* 294.9 323.4 95.9 105.7 109.6 115.5 108.3 111.7 117.1 61.0 51.5 58.0 60.7 71.4 71.2 85.9 104.5 400.4 412.1 446.8 497.9 264.4 286.1 299.0 328.3 29O!6 301.9 331.1 98.4 108.4 112.5 118.5 111.0 114.6 120.1 64.5 54.7 61.7 64.9 71.5 71.3 86.1 104.7 1972—Sept. Oct. Nov. Dec. 27 25 29 , , 31 535.6 540.5 549.8 557.5 360.1 366.9 373.6 378.2 362.4 369.2 376.1 380.8 124.6 126.7 128.2 129.3 126.1 128.1 129.8 131.0 62.0 59.9 60.6 62.4 113.5 113.6 115.6 116.9 535.0 540.3 549.9 571.4 360.7 365.2 371.8 387.3 363.0 367.5 374.3 389.9 124.2 125.8 127.6 132.7 125.7 127.2 129.2 134.4 60.3 60.9 63.2 67.0 114.0 114.2 114.9 117.1 1973—Jan. Feb. Mar. Apr. May June July Aug. Sept. 31*. . . 28*. . . 28*.... 25*... 30*.... 30*... 25*.... 29*. . . 26*. . . 564.6 573.7 582.6 585 i 3 594.6 596.6 601.4 610.9 613.5 385.5 396.2 404.9 408.0 416.1 417.8 423.3 433.7 436.4 388.2 399.3 408.0 411.6 419.8 421.3 427.3 438.5 441.0 133.2 138.1 141.8 144.1 147.2 148.9 151.0 154.9 155.2 134.9 140.2 143.8 146.4 149.4 151.1 153.6 157.8 158.1 61.9 60.2 60.6 60.6 59.7 60.8 58.7 56.6 55.5 117.1 117.2 117.2 116.6 118.7 118.0 119.5 120.6 121.7 564.9 569.7 578.3 584.1 590.8 601.3 601.7 606.8 612.7 383.3 392.0 400.6 406.8 414.7 425.3 426.5 431.9 436.5 385.9 395.1 403.8 410.5 418.4 428.9 430.5 436.7 441.1 132.0 136.6 141.7 144.5 146.7 151.9 152.2 152.7 154.6 133.7 138.7 143.7 146.8 148.9 154.1 154.8 155.6 157.5 65.4 61.3 60.7 59.8 57.6 57.1 55.5 53.9 54.0 116.2 116.4 117.0 117.5 118.5 118.9 119.7 121.0 122.2 1 Adjusted to exclude domestic commercial interbank loans. See also note 3. 2 Loans sold are those sold outright by commercial banks to own subsidiaries, foreign branches, holding companies, and other affiliates. 3 Beginning June 30, 1971, Farmers Home Administration insured notes totaling approximately $700 million are included in "Other securities" rather than in "Loans." 4 Beginning June 30, 1969, data revised to include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries; earlier data include commercial banks only. Also, loans and investments are now reported gross, without valuation reserves deducted, rather than net of valuation reserves as was done previously. For a description of the revision, see Aug. 1969 BULLETIN, pp. 642-46. Data shown in above table have been revised to include valuation reserves. 5 Beginning June 30, 1972, commercial and industrial loans were reduced by about $400 million as a result of loan reclassifications at one large bank. NOTE.—Total loans and investments: For monthly data, 1959-70, see Dec. 1971 Bulletin, pp. 974-75, and for 1948-58, Aug. 1968 BULLETIN, pp. A-94-A-97. For a description of the current seasonally adjusted series see the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial loans: For monthly data, 1959-71, see July 1972 BULLETIN, p. A-109; for description see July 1972 BULLETIN, p. 683. Data are for last Wednesday of month except for June 30 and Dec. 31; data are partly or wholly estimated except when June 30 and Dec. 31 are call dates. Data on this table have not yet been adjusted to conform with the June 30, 1973, Call Report benchmark. Therefore, data for the months of 1973, do not agree with data on pp. A-18 and A-22, which are on the new basis. A 18 COMMERCIAL BANKS • OCTOBER 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Securities Cash assets 3 Class of bank and date Total U.S. Treasury All commercial banks: 1941—Dec. 3 1 . . . 50,746 1945—Dec. 3 1 . . . 124,019 1947—Dec. 31 6. 116,284 21,714 21,808 26,083 90,606 38,057 69,221 Other Total assets— Total liabilities and capital accounts 4 Deposits Interbank 3 Other Total 3 Borrowings Demand Demand Time Time 5 U.S. Govt. 7,225 26,551 79,104 71,283 10,982 7,331 34,806 160,312 150,227 14,065 9,006 37,502 155,377 144,103 12,7921 240 Other 44,349 105,921 1,343 94,367 15,952 30,241 35,360 23 219 65 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31... 30... 31... 31 7. 31... 31... 322,661 359,903 401,262 421,597 461,194 516,564 217,726 235,954 265,259 295,547 313,334 346,930 56,163 62,473 64,466 54,709 61,742 64,930 48,772 61,477 71,537 71,341 86,118 104,704 69,119 77,928 83,752 89,984 93,643 99,832 403,368 451,012 500,657 530,665 576,242 640,255 352,287 395,008 434,023 435,577 480,940 537,946 19,770 21,883 24,747 27,174 30,608 32,205 967 4 , 9 9 2 1,314 5,234 1,211 5,010 735 5,054 1,975 7,938 2,908 10,169 167,751 184,066 199,901 208,870 209,335 220,375 158,806 4,859 182,511 5,777 203,154 8,899 193,744 18,360 231,084 19,375 272,289 25,912 1972—Sept. Oct. Nov. Dec. 27... 25... 29... 31... 556,380 561,280 574,230 598,808 382,100 386,190 396,160 414,696 60,290 60,930 63,210 67,028 113,990 114,160 114,860 117,084 91,660 102,830 91,460 113,128 674,780 691,880 694,050 739,033 556,490 567,620 572,160 616,037 26,880 29,040 27,060 33,854 3,890 9,470 3,760 7,520 3,920 7,760 4 , 1 9 4 10,875 213,070 221,440 224,990 252,223 303,180 305,860 308,430 314,891 33,530 39,680 38,350 38,083 1973- -Jan. Feb. Mar. Apr. May June July Aug. Sept. 31... 28... 28... 25... 30... 30... 25*.. 29*.. 26*.. 591,270 599,970 608,320 616,480 622,340 635,756 634,220 640,100 645,170 409,220 421,500 429,400 437,520 444,120 456,780 456,480 462,630 466,440 65,560 61,620 ,490 ,850 740 560 890 099 380 750 930 96,490 99,590 90,980 91,580 95,410 103,608 95,880 92,010 100,020 716,680 729,670 729,250 738,740 749,470 769,908 761,870 765,200 778,090 589,850 598,520 596,690 604,570 611,920 629,215 618,670 618,440 628,670 29,260 29,530 25,960 26,220 27,770 31,047 28,710 26,500 27,700 3,890 4,170 4,530 4,880 5,250 5,590 5,830 6,620 7,190 10,400 11,370 11,390 10,910 5,810 10,434 6,750 3,460 8,210 228,040 227,190 220,290 225,170 229,050 236,953 228,310 224,450 227,870 318,260 326,260 334,520 337,390 344,040 345,191 349,070 357,410 357,700 42,700 45,480 45,420 45,830 47,360 49,299 52,580 53,150 56,180 140 1,709 64 22,179 50 1,176 37,136 69,640 80,609 12,347 24,210 28,340 4 208 54 Members of F.R. System: 1941—Dec. 3 1 . . . 43,521 1945—Dec. 3 1 . . . 107,183 1947—Dec. 3 1 . . . 97,846 61,180 60,400 58,330 57,877 56,360 54,720 54,800 18,021 19,539 22,775 78,338 32,628 57,914 5,961 23,113 68,121 61,717 10,385 6,070 29,845 138,304 129,670 13,576 7,304 32,845 132,060 122,528 12,353 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31... 30... 31... 31 7. 31... 31... 263,687 293,120 325.086 336.738 365,940 405.087 182,802 196,849 220,285 242,119 253,936 277,717 41,924 46,956 47,881 39,833 45,399 47,633 38,960 49,315 56,920 54,785 66,604 79,738 60,738 68,946 73,756 79,034 81,500 86,189 334,559 373,584 412,541 432,270 465,644 511,353 291,063 326,033 355,414 349,883 384,596 425,380 18,788 20,811 23,519 25,841 29,142 30,612 794 1,169 1,061 609 1,733 2,549 4,432 4,631 4,309 4,114 6,460 8,427 138,218 151,980 163,920 169,750 168,032 174,385 128,831 4,618 147,442 5,370 162,605 8,458 149,569 17,395 179,229 18,578 209,406 25,046 1972—Sept. Oct. Nov. Dec. 27... 25... 29... 31... 432,150 435,460 446,621 465,788 303,049 305,996 314,463 329,548 43,506 43,691 45,799 48,715 85,595 85,773 86,359 87,524 78,504 88,220 78,554 96,566 532,741 546,642 548,333 585,125 434,554 442,792 446,441 482,124 25,502 27,528 25,759 31,958 3,495 3,360 3,520 3,561 8,033 6,172 6,463 9,024 166,353 172,615 175,739 197,817 231,171 233,117 234,960 239,763 31,962 37,857 36,480 36,357 1973—Jan. Feb. Mar. Apr. May June July Aug. Sept. 31... 28'.. 28'.. 25... 30. . . 30... 25... 29... 26*.. 458,760 465,024 470,997 476.739 480,394 490,533 489,240 494,200 498,334 324,637 334,601 340,665 346,865 351,223 360,908 360,813 365,951 368,854 47,333 43,698 43,259 42,517 41,030 41,080 39,331 38,233 38,372 86,790 86,725 87,073 87,357 88,141 88,545 89,096 90,016 91,108 82,499 85,364 77,719 78,219 81,169 88,227 82,091 78,475 85,795 565,071 575,322 573,564 580,412 587,722 604,414 597,607 600,202 611,366 458,943 465,495 462,997 468,385 473,623 486,770 478,417 478,273 486,957 27,757 28,037 24,505 24,744 26,139 29,311 27,121 24,972 26,163 3,260 3,537 3,895 4,242 4,621 4,879 5,121 5,911 6,480 8,461 9,364 9,407 9,167 4,511 8,167 5,423 2,701 6,740 177,677 176,525 170,540 173,671 176,766 182,439 175,351 172,082 175,018 241,788 248,032 254,650 256,561 261,586 261,975 265,401 272,607 272,556 40,256 42,912 42,642 43,076 44,214 46,529 48,761 49,283 52,486 Large member banks: New York C i t y : * * 1941—Dec. 3 1 . . . 1945—Dec. 3 1 . . . 1947—Dec. 3 1 . . . 12,896 26,143 20,393 4 , 0 7 2 7,265 7,334 17,574 7,179 11,972 1,559 1,235 1,242 6,637 6,439 7,261 19,862 32,887 27,982 17,932 30,121 25,216 4,202 4,640 4,453 6 17 12 866 6,940 267 12,051 17,287 19,040 807 1,236 1,445 195 30 14,869 18,797 19,948 22,349 21,715 22,663 64,424 74,609 81,364 87,753 89,384 91,461 51,837 6,370 60,407 7,238 63,900 8,964 62,381 10,349 67,186 12,508 71,723 13,825 467 741 622 268 956 26,535 31,282 33,351 36,126 32,235 30,943 17,449 20,062 20,076 14,944 20,448 24,256 1,874 1,880 2,733 4,405 4,500 5,195 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31... 30... 31... 31 7. 31... 31... 46,536 52,141 57,047 60,333 62,347 63,342 35,941 39,059 42,968 48,305 47,161 48,714 4,920 6,027 5,984 5,048 6,009 5,597 5,674 7,055 8,094 6,980 9,177 9,031 1,186 1,016 1,084 888 694 1,039 1,513 1972—Sept. Oct. Nov. Dec. 27... 25... 29... 31... 68,924 69,136 71,707 75,034 53,166 53,835 55,533 58,713 5,368 5,045 5,712 5,696 10,390 10,256 10,462 10,625 17,864 92,484 21,261 96,657 21,556 98,990 26,416 107,603 70,323 72,568 74,550 82,446 11,414 12,386 12,639 15,094 1,591 1,530 1,752 1,833 1,454 1,097 1,032 1,418 27,718 29,046 30,710 35,373 28,146 28,509 28,417 28,728 6,861 9,170 9,335 9,502 1973—Jan. Feb. Mar. Apr. May June July Aug. Sept. 31... 28... 28... 25... 30. . . 30... 25... 29... 26... 73,744 75,727 76,368 76,834 78,078 79,212 79,869 80,338 81,900 58,304 61,629 62,584 63,395 64,505 65,428 66,117 66,610 67,694 5,439 10,001 23,203 102,923 4,463 9,635 23,059 105,571 4,498 9,286 20,133 103,402 4 , 2 5 4 9,185 19,710 103,622 4,424 9,149 19,587 104,550 4,661 9,124 24,518 111,028 4 , 0 4 7 9,705 23,544 110,392 4,095 9,633 20,095 108,141 4,075 10,131 22,531 111,675 77,213 79,567 77,435 77,295 77,980 82,718 81,473 78,925 82,016 13,919 14,040 11,744 11,935 11,780 15,340 13,787 12,092 13,069 1,574 1,708 1,951 2,229 2,491 2,773 2,969 3,558 4,019 1,257 1,506 1,789 1,732 521 1,115 769 310 1,073 31,292 30,533 29,032 29,068 30,035 30,607 30,164 28,185 29,656 29,171 31,780 32,919 32,331 33,153 32,883 33,784 34,780 34,199 10,142 10,321 9,938 9,891 10,496 11,597 12,857 12,368 13,729 For notes see p. A-21. OCTOBER 1973 • COMMERCIAL BANKS PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Deposits Loans and investments Securities Class of bank and date Total Cash assets 3 Loans l U.S. Treasury Other 2 Total assets— Total liabilities and capital accounts 4 Interbank 3 Borrowings Demand Total 3 Demand Time 5 Time U.S. Govt. Other Large member banks (cont.) 1941-- D e c . 31 1945-- D e c . 31 1947-- D e c . 31 2,760 5,931 5,088 954 1,333 1,801 1,430 4,213 2,890 376 385 397 1,566 1,489 1,739 4,363 7,459 6,866 4,057 7,046 6,402 127 1,552 72 1,035 1,312 1,217 2,419 3,462 4,201 476 719 913 1966-- D e c . 1967-- D e c . 1968-- D e c . 1969-- D e c . 1970-- D e c . 1971-- D e c . 31 30 31 31 7 31 31 11,802 12.744 14,274 14,365 15.745 17,133 8,756 9,223 10,286 10,771 11,214 12,285 1,545 1,574 1,863 1,564 2,105 1,782 1,502 1,947 2,125 2,030 2,427 3,067 2,638 2,947 3,008 2,802 3,074 3,01 14,935 16,296 18,099 17,927 19,892 21,214 12,673 13,985 14,526 13,264 15,041 16,651 1.433 1.434 1 ,535 1,677 1,930 1,693 25 21 21 15 49 168 310 267 257 175 282 364 6,008 6,250 6,542 6,770 6,663 6,896 4,898 6,013 6,171 4,626 6,117 7,530 484 383 682 1,290 1,851 1,935 1972—Sept. Oct. Nov. Dec. 27 25 29 31 19,270 19,530 20,370 21,362 14,582 15,021 15,379 16,294 1,545 1,435 1,597 1,873 3,143 3,074 3,394 3,195 3,135 3,119 2,659 3,580 23,479 23,714 24,042 26,009 17,812 17,738 18,021 19,851 1,406 1,455 1,262 1,615 224 196 217 160 374 192 213 509 6,435 9,373 6,264 9,631 6,565 9 , 7 6 4 7,387 10,179 2,768 2,945 3,137 3,008 1973- Jan. Feb. Mar. Apr. May June July Aug. Sept. 31 28 28 25 30 30 25 29 26 21,026 21,983 22,660 22,800 23,777 24,566 25,221 25,400 25,948 16,371 17,544 17,980 18,253 18,956 19,645 20,580 20,676 20,717 1,562 1,384 1,470 1,414 1,564 1,715 1,364 1,322 1,683 3,093 3,055 3,210 3,133 3,257 3,205 3,277 3,402 3,548 2,939 3,513 3,092 3,277 3,209 3,501 3,759 3,569 3,853 25,035 26,575 26,821 27,170 28,134 29,307 30,199 30,358 31,299 18,709 19,429 19,854 20,020 21,088 21,896 21,627 22,272 22,138 1,364 1,433 1,326 1,304 1,501 1,323 1,638 1,355 1,525 247 224 266 333 411 392 389 499 504 358 442 461 426 154 299 226 86 303 6,605 6,778 6,439 6,639 6,882 7,372 6,488 6,725 6,480 10,135 10,552 11,362 11,318 12,140 12,511 12,886 13,607 13,326 3,276 4,075 3,910 3,971 3,954 4,146 4,922 4,647 5,814 15,347 40,108 36,040 7,105 6,467 8,514 29,552 13,449 20,196 1,776 8,518 2,042 11,286 2,396 13,066 24,430 51,898 49,659 22,313 49,085 46,467 4,356 6,418 5,627 491 12,557 4,806 104 30 8,221 24,655 9 , 7 6 0 405 28,990 11,423 22 2 8,593 9,374 10,181 10,663 11,317 11,241 Other large member: 8 , 9 1941—Dec. 31 1945—Dec. 31 1947—Dec. 31 1 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31... 30... 31... 31 31... 31... 95,831 69,464 105,724 73,571 119,006 83,634 121,324 90,896 133,718 96,158 149,401 106,361 13,040 14,667 15,036 11,944 14,700 15,912 13,326 17,487 20,337 18,484 22,860 27,129 24,228 26,867 28,136 29,954 31,263 33,732 123,863 136,626 151,957 157,512 171,733 190,880 108,804 120,485 132,305 126,232 140,518 155,226 1,633 1,715 1,884 1,575 2,547 3,557 49,004 53,288 57,449 58,923 59,328 62,474 1,952 49,341 55,798 2,555 62,484 4,239 54,829 9,881 66,734 10.391 77,020 14,799 1972—Sept. Oct. Nov. Dec. 27.. 25.. 29.. 31.. 156,822 157,630 163,011 171,549 115,352 115,642 119,961 126,661 13,692 13,699 14,734 16,316 27,778 28,289 28,316 28,572 31,640 35,635 29,350 36,729 196,672 201,551 200,829 217,170 156,023 9,509 1,285 3,512 158,214 10,202 1,239 2,374 159,305 8,844 1,156 2,828 173,913 11,133 1,173 3,860 58,956 61,147 62,229 71,376 82,761 83,252 84,248 86,372 17,816 20,500 18,629 19.392 1973—Jan. Feb. Mar. Apr. May June July Aug. Sept. 31.. 28r. 28 25.. 30... 30.. 25.. 29 r . 26^. 168,522 169,711 172,604 175,754 175,455 180,663 178,493 181,404 182,083 123,907 126,893 129,983 133,253 133,519 138,452 137,056 140,151 140,637 15,844 13,957 13,615 13,414 12,547 13,066 11,982 11,572 11,443 28,771 28,861 29,006 29,087 29,389 29,144 29,455 29,681 30,003 30,426 32,497 29,626 30,1 31,779 31,899 28,878 29,551 33,047 207,904 211,396 211,390 215,262 217,001 222,344 217,220 221,043 225,138 163,418 165,150 165,247 168,360 170,123 173,183 169,837 171,725 174,901 9,239 9,365 8,372 8,470 9,540 9,177 8,518 8,467 8,494 63,011 62,627 60,660 61,487 62,744 64,875 61,418 60,607 61,459 86,654 88,006 91,171 93,049 94,862 94,771 96,310 100,141 100,456 21,086 22,434 22,175 22,606 22,183 24,032 22,492 23,670 24,730 2,250 6,402 2,408 10,632 3,268 10,778 19,466 46,059 47,553 17,415 43,418 44,443 792 1,207 1,056 225 10,109 6,258 30 17 5,465 24,235 12,494 432 28,378 14,560 17 4 11 23 All other member: * , 9 , 1 0 1941—Dec. 31 1945—Dec. 31 1947—Dec. 31 12,518 35,002 36,324 5,890 4,377 5,596 26,999 10,199 22,857 233 310 307 242 592 933 1,044 1,210 1,283 1,285 1,324 1,371 1,368 1,459 1,562 3,470 3,942 3,761 4,069 1,653 2,988 2,223 1,051 2,930 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 31.. 30.. 31.. 31?. 31.. 31.. 109,518 68,641 122,511 74,995 134,759 83,397 140,715 92,147 154,130 99,404 175,211 110,357 22,419 24,689 24,998 21,278 22,586 24,343 18,458 22,826 26,364 27,291 32,140 40,511 19,004 20,334 22,664 23,928 25,448 26,783 131,338 146,052 161,122 169,078 184,635 207,798 117,749 131,156 144,682 148,007 161,850 181,780 2,392 2,766 2,839 3,152 3,387 3,853 69 96 111 84 135 263 1,474 1,564 1,281 1,671 2,592 2,993 56,672 57,144 61,161 65,569 66,578 73,873 67,930 75,170 69,806 85,930 74,072 100,600 308 552 804 1,820 1,836 3,118 1972—Sept. Oct. Nov. Dec. 27. 25. 29. 31. 187,134 189,164 191,533 197,843 119,949 121,498 123,590 127,881 22,901 23,512 23,756 24,830 44,284 44,154 44,187 45,132 25,865 28,205 24,989 29,841 220,106 224,720 224,472 234,342 190,396 194,272 194,565 205,914 3,173 3,485 3,014 4,116 395 395 395 395 2,693 2,509 2,390 3,238 73,244 76,158 76,235 83,681 110,891 111,725 112,531 114,483 4,517 5,242 5,379 4,455 1973—Jan. Feb. Mar. Apr. May June July Aug. Sept. 31.. 28.. 28 25.. 30... 30.. 25 . 29.. 26p. 195,468 197,603 199,365 201,351 203,0841 206,092 205,657 207,058 208,403 126,055 128,535 130,118 131,964 134,243 137,383 137,060 138,514 139,806 24,488 23,894 23,676 23,435 22,495 21,638 21,938 21,244 21,171 44,925 45,174 45,571 45,952 46,346 47,072 46,659 47,300 47,426 25,931 26,295 24,868 25,121 26,594 28,309 25,910 25,260 26,364 229,209 231,780 231,951 234,358 238,037 241,736 239,796 240,660 243,254 199,603 201,349 200,461 202,710 204,432 208,974 205,480 205,351 207,9021 3,235 3,199 3,063 3,035 3,318 3,471 3,178 3,058 3,075 395 395 395 395 395 342 395 395 395 3,376 3,474 3,396 2,940 2,183 3,766 2,205 1,254 2,434 76,769 76,587 74,409 76,477 77,105 79,585 77,281 76,565 77,423 115,828 117,694 119,198 119,863 121,431 121,810 122,421 124,079 124,575 5.752 6,082 6,619 6,608 7,581 6.753 8,490 8,598 8,213 For notes see p. A-21. A 19 A 20 COMMERCIAL BANKS • OCTOBER 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Classification by FRS membershiD and FDIC insurance Insured banks: Total: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. Securities Cash assets 3 Total 49,290 121,809 114,274 Loans U.S. Treasury 21,259 21,046 25,765 88,912 37,583 67,941 Other 2 Total assets— Total liabilities and capital accounts * Deposits Interbank3 Other Total 3 Demand Demand Time 5 Time U.S. Govt. 6,984 25,788 76,820 69,411 10,i654 7,131 34,292 157,544 147,775 13,1883 8,750 36,926 152,733 141,851 12,615 54 41,298 80,276 92,975 Total capital accounts Number of banks Other 1,762 23,740 1,325 Borrowings 15,699 29,876 34,882 10 215 61 6,844 13,426 8,671 13,297 9,734 13,398 1963—Dec. 2 0 . . 252,579 155,261 62,723 34,594 50,337 310.730 273,657 15,077 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 1965—Dec. 3 1 . . 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 443 733 923 6,712 140,702 110,723 6,487 154,043 126,185 5,508 159,659 146,084 3,571 25.277 13,284 2,580 27,377 13,486 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 881 1,258 1,155 4,975 166,689 159,396 5,219 182,984 183,060 5,000 198,535 203,602 4,717 31,609 13,533 5,531 33,916 13,510 8,675 36,530 13,481 1969—Dec. 317- 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 13,464 1971—Dec. 31.. 514,097 345,386 64,691 104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—Dec. 31.. 594,502 411,525 66,679 116,298 111,333 732,519 612,822 33,366 89,402 724,105 594,805 25,721 178 ,617 1973—Mar. 28.. 606,852 428,235 June 30.. 630,379 452,587 57,532 120,261 101,716 762,250 625,316 30,559 4,113 10,820 250,693 313,830 37,556 52,166 13,721 4,339 11,322 219,601 333,821 43,921 53,529 13,766 5,446 10,408 235,174 343,729 48,413 55,240 13,842 National member: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 11,725 12,039 13,925 51,250 21,428 38,674 3,806 14,977 4,137 20,144 5,178 22,024 35 1,088 14,013 795 23,262 45,473 53,541 8,322 16,224 19,278 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 146 211 458 3,691 3,604 3,284 76,836 84,534 92,533 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 1968—Dec. 3 1 . . 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 437 652 657 1963—Dec. 2 0 . . 1964—Dec. 31.. 1965—Dec. 31.. 27,571 69,312 65,280 43,433 90,220 88,182 39,458 84,939 82,023 6, 786 9,:229 8,375 4 78 45 3,640 4,644 5,409 5,117 5,017 5,005 61,288 70,746 85,522 1,704 13,548 1,109 15,048 2,627 17,434 4,615 4,773 4,815 3,035 96,755 93,642 3,142 106,019 107,684 3,090 116,422 122,597 3,120 18,459 3,478 19,730 5,923 21,524 4,799 4,758 4,716 1969—Dec. 317. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,885 12,279 23,248 4,668 1971—Dec. 31.. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1 ,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—Dec. 31.. 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 53,789! 426,035 345,341 14,134 100 ,552 1973—Mar. 28.. 354,999 254,447 June 30.. 369,856 270,188 31,651 68,018 61,336 449,772 364,129 16,640 2 ,155 2 ,285 2 ,874 6,646 146,800 184,622 26,706 30,342 6,866 127,001 195,056 30,336 30,924 6,181 137,116 201,318 33,804 31,867 4,612 4,607 4,629 State member: 1941—Dec. 31.. 1945—Dec. 3 1 . . 1947—Dec. 31.. 15,950 37,871 32,566 6,295 7,500 8,850 27,089 11,200 19,240 2,155 8,145 1,933 9,731 2,125 10,822 24,688 48,084 43,879 22,259 44,730 40,505 3,'739 4,'• 11 3,978 1963—Dec. 2 0 . . 1964—Dec. 3 1 . . 1965—Dec. 31.. 72,680 77,091 74,972 46,866 15,958 9,855 15,760 51,002 15,312 10,777 18,673 51,262 12,645 11,065 15,934 91,235 98,852 93,640 78,553 86,108 81,657 1966—Dec. 31.. 1967—Dec. 30.. 1968—Dec. 31.. 77,377 85,128 89,894 54,560 11,569 11,247 19,049 99,504 58,513 12,649 13,966 22,312 111,188 61,965 12,581 15,348 22,803 116,885 1969—Dec. 317. 90,088 65,560 10,257 14,271 24,313 119,219 1971—Dec. 31.. 102,813 1972—Dec. 31.. 115,426 1973—Mar. 28.. 117,547 June 30.. 121,052 82,889 11,530 21,008 29,176 150,697 123,186 12,862 24,248 148,345 117,906 10,511 87,421 30 ,126 91,095 9,429 20,527 26,891 155,017 123,016 12,671 15 621 8,166 381 13,874 24,168 27,068 4,025 7,986 9,062 130 9 2,246 2,945 3,055 1,502 1,867 1,918 5,655 6,486 5,390 236 453 382 2,295 2,234 1,606 40,725 44,005 39,598 29,642 32,931 34,680 1,795 1,372 1,607 7,506 7,853 7,492 1,497 1,452 1,406 85,547 95,637 98,467 6,200 6,934 8,402 357 516 404 1,397 1,489 1,219 41,464 45,961 47,498 36,129 40,736 40,945 1,498 1,892 2,535 7,819 8,368 8,536 1,351 1,313 1,262 94,445 9,541 248 1,065 48,030 35,560 5,116 8,800 1,201 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1,406 1,495 2,005 2,378 2,457 1,986 51,017 43,377 45,322 55,523 9,651 10,886 60,065 12,044 10,973 61,032 12,725 11,231 1,092 1,074 1,076 Nonmember: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 5,776 14,639 16,444 3,241 1,509 2,992 10,584 4,958 10,039 1,025 1,063 1,448 2,668 4,448 4,083 8,708 19,256 20,691 7,702 18,119 19,340 262 4 53 1,560 149 4,162 10,635 12,366 3,360 5,680 6,558 6 7 7 959 1,083 1,271 6,810 6,416 6,478 1963—Dec. 2 0 . . 1964—Dec. 31.. 1965—Dec. 3 1 . . 42,464 46,567 52,028 23,550 13,391 26,544 13,790 30,310 14,137 5,523 6,233 7,581 5,942 7,174 7,513 49,275 54,747 60,679 44,280 49,389 54,806 559 658 695 61 70 83 726 649 618 23,140 25,504 27,528 19,793 22,509 25,882 72 99 91 4,234 4,488 4,912 7,173 7,262 7,320 1966—Dec. 31.. 1967—Dec. 30.. 1968—Dec. 3 1 . . 56,857 64,449 73,553 33,636 13,873 9,349 37,675 15,146 11,629 43,378 16,155 14,020 7,777 8,403 9,305 65,921 74,328 84,605 59,434 67,107 76,368 709 786 908 87 89 94 543 588 691 28,471 31,004 34,615 29,625 34,640 40,060 99 162 217 5,342 5,830 6,482 7,384 7,440 7,504 51,643 14,565 15,925 10,056 94,453 129 244 1969—Dec. 317. 82,133 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1971—Dec. 31.. 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—Dec. 31.. 128,333 1973—Mar. 28.. 134,306 June 30.. 139,471 81,594 17,964 28,774 14,767 147,013 130,316 47 ,939 86,368 11,365 149,725 131,558 91,304 16,452 | 31,716 13,490 157,461 138,171 1,408 1,076 1,248 552 559 567 1,796 1,999 2,241 52,876 49,223 52,735 73,685 78,701 81,379 1,199 10,938 1,541 11,631 1,884 12,143 8,017 8,085 8,137 For notes see p. A-21. OCTOBER 1973 • COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Deposits Loans and investments Classification by FRS membership and FDIC insurance Noninsured nonmember: 1941 Dec. 31 1945—Dec. 31 1947 Dec. 316 Securities Cash assets 3 Total Loans l U.S. Treasury Other 2 Total assets— Total liabilities and capital Total 3 accounts 4 Interbank 3 Other Den land Demand Time U.S. Govt. 1,457 2,211 2,009 455 318 474 761 1,693 1,280 241 200 255 763 514 576 2,283 2,768 2,643 1,872 2,452 2,251 329 181 177 Dec. 20 Dec. 31 Dec. 31 1,571 2,312 2,455 745 1,355 1,549 463 483 418 362 474 489 374 578 572 2,029 3,033 3,200 1,463 2,057 2,113 190 273 277 83 86 85 1967—Dec. 30 1968—Dec. 31 2,638 2,901 1,735 1,875 370 429 533 597 579 691 3,404 3,789 2,172 2,519 285 319 1969 2,809 2,982 1,800 2,041 321 310 688 632 898 895 3,942 4,198 2,556 2,570 1971—Dec. 31 3,147 2,224 239 684 1,551 5,130 1972—Dec. 31 4,865 3,731 349 785 1,794 7,073 1973—June 30 8,196 1963 1964 1965 June 30 7 Dcc. 31 Borrowings Total capital accounts Time 5 Number of banks Other 1,291 1,905 1,392 18 253 365 478 13 4 4 329 279 325 852 714 783 17 23 17 832 1,141 1,121 341 534 612 93 99 147 389 406 434 285 274 263 58 56 15 10 1,081 1,366 733 767 246 224 457 464 211 197 298 316 81 41 15 16 1,430 1,559 731 638 290 336 502 528 209 197 2,923 380 116 19 1,273 1,134 283 480 181 3,775 488 81 55 1,530 1,620 527 491 206 4,438 488 145 26 1,779 2,000 885 500 204 185 5,915 4,732 345 838 1,892 Total nonmember: 1941 Dec. 31 1945 Dec. 31 1947 Dec. 31 7,233 16,849 18,454 3,696 3,310 5,432 2,270 12,277 11,318 1,266 1,262 1,703 3,431 4,962 4,659 10,992 9,573 22,024 20,571 23,334 21,591 457 425 439 190 5,504 14,101 167 13,758 3,613 6,045 7,036 18 11 12 1,288 1,362 1,596 7,662 7,130 7,261 1963 Dec. 20 1964—Dec. 31 1965—Dec. 31 44,035 48,879 54,483 24,295 27,899 31,858 13,854 14,273 14,555 5,885 6,707 8,070 6,316 7,752 8,085 51,304 45,743 57,780 51,447 63,879 56,919 749 931 972 144 156 168 743 23,972 20,134 672 26,645 23,043 635 28,649 26,495 165 198 238 4,623 4,894 5,345 7,458 7,536 7,583 1967—Dec. 30 1968—Dec. 31 67,087 39,409 76,454 45,253 15,516 16,585 12,162 14,617 8,983 9,997 77,732 69,279 88,394 78,887 1,071 1,227 147 150 603 32,085 701 35,981 35,372 40,827 408 441 6,286 6,945 7,651 7,701 1969—June 30? Dec. 31 80,841 85,115 14,662 14,875 16,021 16,556 81,166 85,949 1,090 1,333 160 126 765 35,500 43,652 940 39,120 44,430 741 965 7,506 7,931 7,737 7,792 50,159 53,683 9,594 92,743 10,950 98,651 1971—Dec. 31 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31 133,198 18,313 29,559 16,562 154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—June 30 145,386 96,036 16,797 15,381 165,657 142,608 1,736 712 2,267 54,514 83,379 2,770 12,643 8,341 85,325 32,554 1 Beginning June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as securities, and Export-Import Bank portfolio fund participations were reclassified from loans to securities. This reduced "Total loans" and increased "Other securities" by about $1 billion. "Total loans" include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are included in "Federal funds sold, etc.," on p. A-22. Beginning June 30, 1971, Farmers Home Administration notes are classified as "Other securities" rather than "Loans." As a result of this change, approximately $300 million was transferred to "Other securities" for the period ending June 30, 1971, for all commercial banks. See also table (and notes) at the bottom of p. A-30. 2 See first two paragraphs of note 1. 3 Reciprocal balances excluded beginning with 1942. 4 Includes items not shown separately. See also note 1. 5 See third paragraph of note 1 above. « Beginning with Dec. 31,1947, the series was revised; for description, see note 4, p. 587, May 1964 BULLETIN. 7 Figure takes into account the following changes beginning June 30, 1969: (1) inclusion of consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves—rather than net as previously reported. 8 Beginning N o v . 9 , 1 9 7 2 , designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the BULLETIN for July 1972, p. 626. Categories shown here as "Large" and "All other" parallel the previous "Reserve city" and "Country" categories, respectively (hence the series are continuous over time). 9 Regarding reclassification as a reserve city, see Aug. 1962 BULLETIN, p. 993. For various changes between reserve city and country status in 1960-63, see note 6, p. 587, May 1964 BULLETIN. (See also note 8.) 10 Beginning May 6, 1972, two New York City country banks, with deposits of $1,412 million, merged and were reclassified as a reserve city bank. (See also note 8.) NOTE.—Data are for all commercial banks in the United States (including Alaska and Hawaii, beginning with 1959). Commercial banks represent all commercial banks, both member and nonmember; stock savings banks; and nondeposit trust companies. For the period June 1941-June 1962 member banks include mutual savings banks as follows: three before Jan. 1960, two through Dec. 1960, and one through June 1962. Those banks are not included in insured commercial banks. Beginning June 30, 1969, commercial banks and member banks exclude a small national bank in the Virgin Islands; also, member banks exclude, and noninsured commercial banks include, through June 30,1970, a small member bank engaged exclusively in trust business; beginning 1973, excludes one national bank in Puerto Rico. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. Data for national banks for Dec. 31, 1965, have been adjusted to make them comparable with State bank data. Figures are partly estimated except on call dates. For revisions in series before June 30, 1947, see July 1947 BULLETIN, pp. 870-71. A 22 COMMERCIAL BANKS • OCTOBER 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans Class of bank and call date Total loans 1 and investments Federal funds sold, etc. 2 Total Commercial and industrial 116,284 Investments For To U.S. Treasury purchasing financial securities 6 or carrying institutions Other, securities AgriReal to culin- Other 5 turTo dial 5 brovidBills kers T o uals3 and Notes Total Bonds and others Banks Others certifidealcates ers Total: 2 1947—Dec. 31. 1 38,057 18,167 1,660 830 1,220 115 9,393 5,723 947 69,221 9,982 6,034 53,205 21,259 9,214 ,450 614 662 25,765 9,461 1,314 3,164 3,606 37,583 18,012 ,610 823 1,190 21,046 4,773 4,505 988 3 , 1 5 9 16,899 3,651 3,333 ,912 21,526 1 6 , 0 4 5 51,342 3,873 3,258 4,677 2,361 1,132 914 67,941 9,676 5 , 9 1 8 52,347 5,129 3,621 9,266 5,654 40 49 114 1972—Dec. 31 io 594,502 25,584 385,941 131,422 14,287 11,165 4,460 6 , 1 1 5 23,277 98,204 86,912 1973—Mar. 2 8 . 606,852 25,931 402,305 7 j 2954',727 9,060 27,574 108,008 94,060 —June 30.. 630,379 26,162 426,425 148,825 Member—Total: 1941—Dec. 3 1 . . 43,521 1945—Dec. 3 1 . . 107,183 1947—Dec. 3 1 . . 97,846 18,021 8,671 22,775 8,949 32,628 16,962 972 594 598 855 3 , 1 3 3 3,378 ,046 811 1,065 39 47 113 3,494 3,455 7,130 66,679 89,173 27,125 57,532 90,967 29,293 19,539 3,653 971 3,007 15,561 3,090 2,871 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1972—Dec. 31 io 466,169 19,961 309,969 112,110 8,495 10,863 3,870 5 , 7 8 3 22,026 7 3 , 1 3 1 64,490 9 , 2 0 1 48,715 1973—Mar. 28. 472,546 19,090 322,778 7 , i 03 4,i22 8,634 26,258 79,840 69'006 9,953 41,080 —June 30.. 490,908 19,705 341,577 127,194 New York City: 11 1941—Dec. 3 1 . . 12,896 1945—Dec. 3 1 . . 26,143 1947—Dec. 3 1 . . 20,393 4,072 2,807 7,334 3,044 7,179 5,361 1972—Dec. 31 io 75,034 1973—Mar. 28. 76,790 —June 30.. 79,212 812 57,901 27,864 1,674 61,021 1,394 64,033 31,880 City of Chicago:11 1941—Dec. 3 1 . . 1945—Dec. 3 1 . . 1947—Dec. 3 1 . . 412 169 2,453 1,172 545 267 50 7,057 'Hi 2,760 5,931 5,088 954 1,333 1,801 732 760 1,418 6 2 3 211 48 718 15,576 1,367 16,750 1,097 18,549 7,851 140 ,330 282 10,034 Other large banks:11 1941—Dec. 3 1 . . 15,347 1945—Dec. 3 1 . . 40,108 1947—Dec. 3 1 . . 36,040 7,105 3,456 8,514 3,661 13,449 7,088 300 205 225 659 648 818 20 42 23 1972—Dec. 31 io 198,156 8,504 19,690 31,911 6,327 1973—Mar. 28. 200,101 8,089 122,531 —June 30.. 206,404 7,882 129,813 34,824 7,015 '282 Nonmember: 1947—Dec. 3 1 . . 18,454 1972—Dec. 31 io 133,198 1973—June 30.. 145,386 5,890 5,596 10,199 5,432 1,676 1,484 3,096 ,205 5,696 9,107 4,661 7,224 1,900 3,558 51 149 1,066 1,138 1,146 1,207 1,527 1,459 3,147 1,430 4,213 2,890 256 ,600 367 153 1,022 749 1,864 248 2,274 182 193 204 185 1,873 2,820 375 1,715 648 213 2*796 409 956 1,126 1,342 820 916 ,053 6,467 1,508 295 751 5,421 855 " 387 29,552 8,016 5,653 15,883 1,969 351 20,196 2,731 1,901 15,563 181 24,049 4,523 3,603 11,440 29,705 24,357 4,181 13,066 24,435 4 , 7 1 0 2 4 5 110 481 3,787 1,222 1,028 5,732 4,544 16,722 1,342 I,067 3,063 2,108 17,687 2,006 1,262 452 1,040 455 2,565 39,262 3 5 , 4 5 8 2,220 24,830 33,664 II,468 253 657 2^484 42,638 38,284 2,376 21,638 34,919 12,153 183 471 227 156 453 263 622 803 630 1,219 1 Beginning with June 30, 1948, figures for various loan items are shown gross (i.e., before deduction of valuation reserves); they do not add to the total and are not entirely comparable with prior figures. Total loans continue to be shown net. See also note 10. 2 Includes securities purchased under resale agreements. Prior to June 30, 1967, such securities were included in loans—for the most part in loans to "Banks." Prior to Dec. 1965, Federal funds sold were included with "Total" loans and loans to "Banks." 3 See table (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30. ,518 5 , 2 2 5 2,390 5,158 2,676 1,528 4,377 707 359 26,999 ,979 224 22,857 614 6,701 78,624 20,591 5,819 7,947 88,089 23,196 6,518 830 629 604 2,716 10,268 27,014 22,669 3,943 16,316 1972—Dec. 31 io 171,618 9,927 116,802 44,483 ,977 2,024 1973—Mar. 28. 173,016 7,960 122,475 —June 30.. 180,726 9,333 129,182 50,457 2,241 1,415 All other member 1941—Dec. 3 1 . . 12,518 1945—Dec. 3 1 . . 35,002 1947—Dec. 3 1 . . 36,324 4 17 15 729 606 638 5,789 341 2,780 194 114 427 1,503 170 484 69,374 19,172 522 7,265 311 1,623 5,331 287 272 17,574 3,910 3,325 10,339 564 238 11,972 1,642 558 9,772 22 36 46 843 * 313 598 69,640 17,884 ,776 6,352 6,413 87 1972—Dec. 31 io 21,362 1973—Mar. 28. 22,639 —June 30.. 24,566 3,776 52 233 73 123 80 111 32 26 93 841 2 , 2 7 1 4*563 5,276 3,729 89,504 27,579 91,312 29,787 1972—Dec. 3110 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 67,028 1973—June 30.. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 9,853 27,685 108,199 94,416 11,020 57,877 All insured: 1941—Dec. 3 1 . . 49,290 1945—Dec. 3 1 . . 121,809 1947—Dec. 3 1 . . 14,274 State and local Other govt, secusecu- rities 5 rities 1,823 1,881 3,827 2,266 1,061 109 11,318 1,377 25,250 22,741 969 18,313 1,427 28,359 25,410 1,067 16,797 2,179 ,219 7,920 1,078 625 19,864 9 , 6 9 5 21,939 10,615 4 Breakdowns of loan, investment, and deposit classifications are not available before 1947; summary figures for 1941 and 1945 appear in the table on pp. A-18—A-21. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as "Other securities," and Export-Import Bank portfolio fund participations were reclassified from loans to "Other securities." This increased "Other securities" by about $1 billion. 6 Beginning with Dec. 31, 1965, components shown at par rather than at book value; they do not add to the total (shown at book value) and are not entirely comparable with prior figures. See also note 10. Notes continued on opposite page. OCTOBER 1973 • COMMERCIAL BANKS A 23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Time deposits Demand deposits Class of bank and call date Reserves with F.R. Banks DeBalCur- ances mand derency with posits doand mestic ad- 8 banks7 justed U.S. Govt. DoFormestic7 eign 9 Total: 3 1947—Dec. 3 1 . . . . 17,796 2,216 10,216 87,123 11,362 1,430 ,343 State and local govt. 6,799 Certified and officers' checks, etc. 2,581 IPC 84,987 U.S. Govt, State and Inter- and bank Postal local Sav- govt. ings 240 1972—Dec. 31 io. 26,070 8,666 32,185 212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 1973—June 3 0 . . . 25,143 7,669 29,842 202,109 26,978 4,069 10,434 18,166 11,162 207,625 5,590 All insured: ,762 673 1941—Dec. 3 1 . . . . 12,396 1,358 8,570 37,845 9,823 1945—Dec. 3 1 . . . . 15,810 1.829 11,075 74,722 12,566 1,248 23,740 1,379 1,325 1947—Dec. 3 1 . . . . 17,796 2,145 9,736 85,751 11,236 3,677 5,098 6,692 1,077 2,585 2,559 36,544 72,593 83,723 158 70 54 1972—Dec. 31 i o . 26,070 8,637 30,734 210,287 29,731 3,635 10,820 18,459 11,177 221,057 4,113 1973—Mar. 2 8 . . . 27,160 8.830 23,131 194,096 22,443 3,279 11,322 16,IT 8,593 194,898 4,339 —June 3 0 . . . 25,143 7,658 28,238 200,083 26,713 3,846 10,408 18,016 10,473 206,685 5,446 Member—Total: 1941—Dec. 3 1 . . . . 12,396 1,087 1945—Dec. 3 1 . . . . 15,811 1,438 1947—Dec. 3 1 . . . . 17,797 1,672 671 ,709 6,246 33,754 9,714 7,117 64,184 12,333 1,243 22,179 6,270 73,528 10,978 1,375 1,176 3,066 4,240 5,504 1972—Dec. 31 io. 26,070 6,582 19,396 158,464 28,521 3,437 9,024 13,544 1973—Mar. 28 . . . 27,160 6,710 14,719 145,411 21,537 3,108 9,323 11,732 —June 30. . . 25,143 5,754 18,004 148,306 25,684 3,627 8,167 13,251 New York City:11 1941—Dec 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 31 5,105 4,015 4,639 93 111 151 1972—Dec. 31 io. 1973—Mar. 28 . . . —June 30. . . 5,695 5,292 4,981 508 562 467 City of Chicago:11 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 3 1 . . . . 1,021 942 1,070 43 36 30 298 200 175 2,215 3,153 3,737 1972—Dec. 31 io. 1973—Mar. 28 . . . —June 30. . . 1,496 1,435 1,512 152 116 126 173 112 138 Other large banks:11 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 31 4,060 6,326 7,095 425 494 562 1972—Dec. 31 io. 10,085 2,114 1973—Mar. 28 . . . 10,958 2,124 —June 30. . . 9,345 1,788 All other member:11 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 3 1 . . . . 9,503 174,770 3,562 7,347 151,299 3,780 8,781 160,407 4,879 59 103 111 492 15,146 496 29,277 826 33,946 10 6,844 215 8,671 61 9,734 606 37,086 276,138 37,556 52,166 666 41,495 291,662 43,921 53,529 730 40,655 302,344 48,413 55,240 50 99 105 418 11,878 399 23,712 693 27,542 4 5,886 208 7,589 54 8,464 468 28,553 211,124 36,357 41,228 516 31,705 222,900 42,380 41,897 569 30,812 230,969 46,529 43,098 450 1,338 1,105 11,282 15,712 17,646 4,854 23,271 12,532 2,562 1,418 4,020 21,687 9,527 2,292 1,688 5,557 20,478 12,679 2,661 1,115 741 686 646 3,592 3,017 3,403 31,040 1,833 25,248 1,984 26,558 2,773 1,027 1,292 1,196 127 1,552 72 233 237 285 34 66 63 2,152 3,160 3,853 5,783 5,148 5,827 1,516 1,232 1,206 509 459 299 223 143 225 264 162 229 6,899 6,134 6,918 160 207 392 95 150 224 2,590 11,117 2,174 22,372 2,125 25,714 4,302 6,307 5,497 54 491 110 8,221 131 405 1,144 1,763 2,282 286 11,127 22,281 26,003 104 30 22 20 38 45 4,688 52,813 10,426 3,694 48,856 7,762 4,099 49,344 8,446 707 3,860 639 3,767 731 2,988 3,854 3,421 3,954 3,075 2,336 2,728 2 225 8 5,465 7 432 1,370 2,004 2,647 239 435 528 8,500 21,797 25,203 30 17 17 70 3,238 83 3,409 3,766 8,726 7,482 8,426 2,571 1,832 2,421 72,384 65,035 68,737 395 393 342 181 13,373 101,243 4,455 16,608 176 15,122 104,170 6,439 17,012 167 14,661 107,293 6,753 17,604 55 167 1,295 180 446 1,851 442 2,267 5,044 4,915 633 712 138 8,608 66,559 1,726 11,429 162 9,922 73,295 2,770 12,643 790 1,199 1,049 1972—Dec. 31 1973—Mar. 2 8 . . . —June 30. . . 8,794 3,807 9,474 3,908 9,305 3,373 9,681 76,597 6,893 69,720 8,211 72,658 4,047 3,016 3,353 Nonmember:3 1947—Dec. 3 1 . . . . 544 3,947 13,595 385 2,084 12,789 53,658 1,915 11,838 53,803 1,449 1,294 118 7 Beginning with 1942, excludes reciprocal bank balances. 8 Through 1960 demand deposits other than interbank and U.S. Govt., less cash items in process of collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. Govt., less cash items in process of collection. 9 For reclassification of certain deposits in 1961, see note 6, p. 589, M a y 1 9 6 4 BULLETIN. 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves. See also notes 1 and 6. 11 Beginning Nov. 9,1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the BULLETIN for July 1972, p. 626. Categories shown here as "Large" and "All other" 140 64 50 65 10,059 319 237 290 3,216 9,661 4,665 23,595 3,900 27,424 1972—Dec. 31 io, 1973—June 3 0 . . . 33,061 62,950 72,704 866 34,383 606 37,161 277,683 38,083 52,658 730 40,734 304,265 49,299 55,740 607 866 3,595 3,535 1,105 6,940 267 3,236 1,217 141 10,761 78 15,065 70 16,653 526 796 929 2,210 4,527 4,993 1,009 2,450 2,401 IPC 3 Bor- Capital row- acings counts 611 705 6 17 12 20 14 778 1,206 1,418 12,284 1,648 195 2,120 30 2,259 2,522 26,196 9,502 8,042 2,766 30,121 9,951 8,112 2,075 30,788 11,597 8,287 476 719 902 64,447 1,173 54,882 1,196 58,194 1,371 47,180 47,219 29 288 377 426 847 9,237 3,008 1,891 ,006 10,230 3,861 1,905 930 11,357 4,146 1,947 243 4,542 160 9,563 332 11,045 1,967 2 2,566 1 2,844 181 11,811 74,449 19,392 14,687 175 12,810 78,380 22,129 14,869 158 13,145 81,531 24, 15,260 31 52 45 146 6,082 219 12,224 337 14,177 172 6,858 4 1,982 11 2,525 23 2,934 12 1,596 parallel the previous "Reserve city" and "Country" categories, respectively (hence the series are continuous over time). NOTE.—Data are for all commercial banks in the United States; member banks in U.S. possessions were included through 1968 and then excluded. For the period June 1941—June 1962 member banks include mutual savings banks as follows: three before Jan. 1960, two through Dec. 1960, and one through June 1962. Those banks are not included in all insured or total banks. A small noninsured member bank engaged exclusively in trust business is treated as a noninsured bank and not as a member bank for the period June 30, 1969-June 30, 1970. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. A 24 WEEKLY REPORTING BANKS • OCTOBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. 1 Wednesday Total loans and investments Other To brokers and dealers involving— Total To commercial banks U.S. Treasury securities For purchasing or carrying securities To others Other securities Total Commercial and industrial Agricultural To brokers and dealers U.S. Treasury sees. Other sees. To nonbank financial institutions To others U.S. Treasury sees. Other sees. Large banks— Total 1972 Sept. 6 13 20 27 2,802 2,796 2,800 2,826 302,765 304,308 302,728 303,182 13,018 10,647 13,376 11,557 11,551 10,085 11,433 9,703 1,909 1,220 865 1,255 292 352 291 291 170 247 310 184 209,019 209,323 210,400 210,736 85,340 85,682 86,366 86,631 2.575 2.576 2,584 2,602 1,415 1,734 1,166 932 7,370 7,273 7,582 7,336 349,072 352,538 355,591 350,383 350,644 12,773 15,352 15,375 13,354 13,404 11,532 12,035 12,019 11,556 11,781 872 2,587 2,839 1,369 1,215 130 225 233 131 239 505 284 269 277 258,028 259,037 260,473 258,332 258,774 107,557 108,084 108,137 107.896 106.897 3,256 3,295 3,312 3,304 3,286 659 1,164 1,482 830 1,311 5,305 5,299 5,255 5,002 5,197 355,008 358,252 355,196 353,794 15,714 16,825 14,333 12,873 13,603 14,334 11,758 11,597 1,487 2,014 2,036 238 245 238 189 386 232 301 269 259,830 260,904 261,428 261,522 107,121 107,627 108,246 108,309 3,303 3,294 3,289 3,275 1,379 1,087 875 849 5,074 5,205 5,217 5,476 63,414 63,705 63,506 63,638 897 1,059 1,097 1,157 856 976 1,005 1,135 47,987 48,068 48,065 47,915 24,233 24,274 24,359 24,419 38 41 41 42 1,276 1,508 974 817 4,607 4,622 4,876 4,684 651 645 645 657 75,088 75,245 76,451 74,051 74,329 2,656 2,289 1,878 1,359 1,447 2,617 2,191 1,777 1,246 1,359 4 2 32 47 37 60,170 60,771 61,317 59,703 60,125 30,800 31,081 30,958 30,879 30,336 75 78 79 76 75 567 1,085 1,367 727 1,200 3,025 3,011 3,067 2,901 3,103 688 693 686 682 75,557 77,204 76,299 75,905 1,992 1,812 1,569 1,742 1,815 1,768 1,515 1,697 131 29 29 29 60,588 61,146 60,991 60,959 30,494 30,787 30,866 30,958 75 73 73 78 1,266 975 762 728 2,987 3,065 3,195 3,405 677 670 679 193 182 183 185 1973 Aug. 1 8 15 22 29 Sept. 5 " 12" 19" 26" 818 160 189 189 188 181 181 180 177 176 166 2,977 2,997 2,999 2,960 2,940 2.935 2.936 2,928 2,932 New York City 1972 Sept. 6 13 20 27 1973 Aug. 1 8 15 22 29 Sept. 5" 12" 19" 26" 681 681 Outside New York City 1972 Sept. 6 13 20 27 239,351 240,603 239,222 239,544 12,121 9,791 12,317 10,581 10,454 9,080 10,276 8,568 1,905 1,216 851 1,246 292 352 291 291 133 168 232 171 161,032 161,255 162,335 162,821 61,107 61,408 62,007 62,212 2,537 2,535 2,543 2,560 139 226 192 115 2,763 2.651 2,706 2.652 153 142 143 146 2,151 2,151 2,155 2,169 273,984 277,293 279,140 276,332 276,315 10,117 8,915 13,063 9,844 13,497 10.242 11,995 10,310 11,957 10,422 837 2,491 2,785 1,303 1,164 218 130 225 160 131 235 503 252 222 240 197,858 198,266 199,156 198,629 198,649 76,757 77,003 77,179 77,017 76,561 3,181 3,217 3,233 3,228 3,211 92 79 115 103 111 2,280 2,288 2,188 2,101 2,094 151 146 144 138 140 2,289 2,304 2,313 2,278 2,259 279,451 281,048 278,897 277,889 13,722 11,788 15,013 12,566 12,764 10.243 11,131 9,900 1,441 1,999 2,011 802 238 245 238 189 255 203 272 240 199,242 199,758 200,437 200,563 76,627 76,840 77,380 77,351 3,228 3,221 3,216 3,197 113 112 113 121 2,022 2,087 2,140 139 139 138 129 2,254 2,259 2,258 2,253 1973 Aug. 1 8 15 22 29 Sept. 5" 12" 19" 26" For notes see p. A-28. 2,071 OCTOBER 1973 • WEEKLY REPORTING BANKS A 25 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Notes and bonds maturing— To commercial banks Wednesday Real estate Domestic Foreign Consumer instalment Foreign govts. 2 All other Total Bills Certificates Within 1 yr. 1 to 5 yrs. After 5 yrs. Large banks— Total 1972 43,603 43,810 43,920 44,112 1,445 1,400 1,440 1,450 2,912 2,833 2,840 2,888 26,529 26,601 26,680 26,777 1,093 1,079 1,102 1,093 16,752 16,510 16,781 16,874 26,404 26,861 26,617 26,307 4,396 4,925 5,027 4,772 4,522 4,555 4,454 4,439 14,390 14,340 14,159 14,112 3,096 3,041 2,977 2,984 51,006 51,151 51,511 51,736 51,933 3,130 3,170 3,165 3,316 3,548 4,851 5,057 5,020 4,857 4,969 31,006 31,084 31,198 31,326 31,463 1,230 1,236 1,233 1,214 1,232 20,366 20,025 20,350 19,869 20,055 22,301 22,151 23,018 22,464 22,100 2,954 2,902 4,116 3,753 3,506 4,055 4,094 3,858 3,854 3,835 12,615 12,550 12,354 12,213 12,136 52,095 52,375 52,715 52,914 3,513 3,601 3,306 3,269 4,771 4,809 4,729 4,695 31,549 31,637 31,669 31,796 1,292 1,324 1,310 1,260 20,363 20,592 20,682 20,370 22,920 23,327 22,505 22,250 3,705 3,981 3,107 3,045 3,966 3,962 4,070 4,094 12,637 12,734 12,682 12,457 Sept. 6 13 20 27 2,677 2,605 2,690 2,644 2,623 Aug. 1 8 15 22 29 2,612 2,650 2,646 2,654 Sept. 1973 5* 12* 19* 26* New York City 1972 4,725 4,732 4,771 4,801 453 428 435 425 1,268 1,226 1,222 1,307 2,016 2,020 2,030 2,029 683 670 685 677 3,474 3,299 3,349 3,385 5,446 5,372 5,229 5,086 1,780 1,755 1,870 1,689 878 880 841 841 2,366 2,361 2,209 2,215 422 376 309 341 5,631 5,682 5,767 5,790 5,832 1,184 1,163 1,169 1,237 1,279 2,065 2,267 2,203 2,035 2,141 2,352 2,381 2,393 2,401 2,398 628 613 598 599 621 4,330 4,109 4,266 4,004 4,109 3,516 3,460 3,995 4,017 3,856 859 805 1,175 1,274 1,100 61 649 728 632 618 1,519 1,523 1,569 1,587 1,633 5,851 5,921 5,998 6,061 1,335 1,395 1,242 1,232 1,981 2,016 1,964 1,919 2,397 2,399 2,378 2,399 668 654 673 628 4,246 4,507 4,475 4,239 3,988 4,639 4,166 3,824 1,184 1,571 1,144 943 612 600 636 630 1,719 1,920 1,849 1,721 Sept. 6 13 20 27 527 483 523 524 505 Aug. 1 8 15 22 29 473 548 537 530 Sept. 1973 5* 12* 19* 26* Outside New York City 1972 38,878 39,078 39,149 39,311 992 972 1,005 1,025 1,644 1,607 1,618 1,581 24,513 24,581 24,650 24,748 410 409 417 416 13,278 13,211 13,432 13,489 20,958 21,489 21,388 21,221 2,616 3,170 3,157 3,083 3,644 3,675 3,613 3,598 12,024 11,979 11,950 11,897 2,674 2,665 2,668 2,643 45,375 45,469 45,744 45,946 46,101 1,946 2,007 1,996 2,079 2,269 2,786 2,790 2,817 2,822 2,828 28,654 28,703 28,805 28,925 29,065 602 623 635 615 611 16,036 15,916 16.084 15,865 15,946 18,785 18,691 19,023 18,447 18,244 2,095 2,097 2,941 2,479 2,406 3.444 3.445 3,130 3,222 3,217 11,096 11,027 10,785 10,626 10,503 46,244 46,454 46,717 46,853 2,178 2,206 2,064 2,037 2,790 2,793 2,765 2,776 29,152 29,238 29,291 29,397 624 670 637 632 16,117 16.085 16,207 16,131 18,932 18,688 18,339 18,426 2,521 2,410 1,963 2,102 3,354 3,362 3,434 3,464 10,918 10,814 10,833 10,736 Sept. 6 13 20 27 2,150 2,122 2,167 2,120 2,118 Aug. 1 8 15 22 29 2,139 2,102 2,109 2,124 Sept. 1973 For notes see p. A-28. 5* 12* 19* 26* WEEKLY REPORTING BANKS • OCTOBER 1973 A 26 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Wednesday Total Obligations of State and political subdivisions Tax warrants3 All other Other bonds, corp. stock, and securities Certif. of participation4 Cash items in process of collection Reserves with F.R. Banks Currency and coin Balances with domestic banks Investments in subsidiaries not consolidated Other assets Total assets/ total liabilities All other^ Large banks— Total 1972 54,324 54,748 54,160 54,706 Aug. 9,089 9,175 9,059 9,479 37,151 37,456 36,971 37,052 1,496 1,495 1,515 1,553 6,588 6,622 6,615 6,622 30,900 29,215 30,052 27,680 18,419 18,701 21,819 19,415 3,664 3,952 3,898 4,003 9,820 8,824 8,865 9,271 1,007 1,007 1,010 1,010 16,787 16,577 16,688 16,752 383,362 382,584 385,060 381,313 55,970 55,998 56,725 56,233 56,366 7,973 7,944 8,103 7,781 7,718 37,998 38,033 38,467 38,340 38,174 1,847 1,958 1,924 1,948 2,015 8,152 8,063 8,231 8,164 8,459 31,657 27,495 30,329 26,710 26,178 22,549 18,452 20,707 21,592 21,277 4,043 3,954 4,085 4,184 4,395 11,457 10,423 9,980 10,220 8,842 1,303 1,308 1.307 1,310 1.308 20,907 20,787 21,175 20,202 20,946 440,988 434,957 443,174 434,601 433,590 56,544 57,196 56,930 57,149 7,770 7,691 7,532 7,382 38,296 38,790 38,605 38,617 2,015 1,989 2,019 2,112 8,463 8,726 8,774 9,038 32,731 31,598 29,878 29,076 19,256 22,045 21,373 24,319 3,976 4,355 4,294 4,361 10,362 9,915 9,925 10,171 1.299 1.300 1,300 1,303 20,993 20,718 20,598 20,570 443,625 448,183 442,564 443,594 9,084 9,206 9,115 9,480 2,842 2,823 2,821 3,120 5,068 5,206 5,135 5,203 272 263 265 281 902 914 894 876 9,130 8,534 9,943 8,835 5,877 5,006 5,046 4,252 442 471 452 463 2,899 3,155 3,249 3,571 478 478 478 479 5,060 4,985 5,255 5,099 87,300 86,334 87,929 86,337 8,746 8,725 9,261 8,972 8,901 Sept. 6 13 20 27 2,232 2,173 2,359 2,243 2,202 4,588 4,574 4,876 4,793 4,619 508 605 570 575 624 1,418 1,373 1,456 1,361 1,456 10,879 9,568 8,999 8,317 8,698 5,653 5,185 5,428 6,585 5,867 483 486 498 488 511 5,273 4,972 4,609 5,076 4,011 622 624 625 627 625 6,821 6,819 7,389 6,770 7,039 104,819 102,899 103,999 101,914 101,080 8,989 9,607 9,573 9,380 2,198 2,210 2,143 2,069 4,685 5,166 5,160 5,045 618 589 587 594 1,488 1,642 1,683 1,672 9,076 9,583 9,217 9,825 4,910 8,085 4,718 6,372 490 500 488 494 4,271 4,264 4,530 4,800 615 614 613 614 6,762 6,520 6,661 6,553 101,681 106,770 102,526 104,563 45,240 45,542 45,045 45,226 6,247 6,352 6,238 6,359 32,083 32,250 31,836 31,849 1,224 1,232 1,250 1,272 5,686 5,708 5,721 5,746 21,770 20,681 20,109 18,845 12,542 13,695 16,773 15,163 3,222 3,481 3,446 3,540 6,921 5,669 5,616 5,700 529 529 532 531 11,727 11,592 11,433 11,653 296,062 296,250 297,131 294,976 47,224 47,273 47.464 47,261 47.465 5,741 5,771 5,744 5,538 5,516 33,410 33,459 33,591 33,547 33,555 1,339 1.353 1.354 1,373 1,391 6,734 6,690 6,775 6,803 7,003 20,778 17,927 21,330 18,393 17,480 16,896 13,267 15,279 15,007 15,410 3,560 3,468 3,587 3,696 3,884 6,184 5,451 5,371 5,144 4,831 681 684 682 683 683 14,086 13,968 13,786 13,432 13,907 336,169 332,058 339,175 332,687 332,510 47,555 47,589 47,357 47,769 5,572 5,481 5,389 5,313 33,611 33,624 33,445 33,572 1,397 1,400 1,432 1,518 6,975 7,084 7,091 7,366 23,655 22,015 20,661 19,251 14,346 13,960 16,655 17,947 3,486 3,855 3,806 3,867 6,091 5,651 5,395 5,371 684 686 687 689 14,231 14,198 13,937 14,017 341,944 341,413 340,038 339,031 1973 1 8 15 22 29 Sept. 5 * 12* 19* 26* New York City 1972 Sept. 6 13 20 27 1973 Aug. 1 8 15 22 29 Sept. 5* 12* 19* 26* Outside New York City 1972 Sept. 6 13 20 27 1973 Aug. 1 8 15 22 29 Sept. 5* 12* 19* 26* For notes see p. A-28. OCTOBER 1973 • WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Time and savings Demand Domestic interbank Total IPC States and political subdivisions U.S. Govt. Commercial IPC Foreign ComMutual Govts., mersavetc. 2 cial ings banks Certified and officers' checks Total 6 Savings Other States and political subdivisions Domestic interbank Wednesday Foreign govts. 2 Large banks— Total 1972 148,159 144,824 148,000 146,133 106,879 106,646 105,517 103,334 6,542 5,990 6,176 6,491 2,119 1,739 5,687 6,479 22,449 20,933 20,249 20,010 757 698 650 692 800 791 790 744 2,950 2,760 3,035 3,077 5,663 5,267 5,896 5,306 155,340 155,706 155,173 156,270 57,899 57,873 57,895 58,069 70,768 70,860 70,215 70,841 18,289 18,388 18,281 18,483 2,532 2,624 2,847 2,913 5,347 5,462 5,433 5,449 157,605 147,750 154,094 144,371 143,547 111,528 105,985 112,535 106,341 105,789 6,901 6,060 6,717 5,676 5,697 3,010 1,404 2,222 1,820 1,816 22,749 22,495 21,482 19,724 19,072 857 874 824 792 728 1,017 857 844 819 892 3,657 3,761 3,534 3,556 3,422 7,886 6,314 5,936 5,643 6,131 185,434 187,307 188,819 190,039 190,776 57,345 57,135 56,809 56,612 56,289 92,791 94,402 96,017 96,909 97,901 21,978 22,193 22,207 22,544 22,679 4,715 4,954 5,256 5,434 5,466 8,050 8,118 8,060 8,102 8,034 Aug. 153,018 152,898 150,787 151,127 12,082 12,481 109,544 107,307 6,053 5,827 5,798 6,473 1,146 1,639 3,596 5,224 22,131 21,331 20,741 20,175 796 718 671 684 953 910 944 897 3,419 3,531 3,371 3,678 6,438 6,461 6,122 6,689 190,485 190,45S 190,684 190,883 56,203 56,090 56,001 56,033 97,589 97,070 97,454 97,614 22,635 23,000 22,720 22,805 5,505 5,758 5,914 5,980 8,133 8,148 8,181 8,019 Sept. Sept. 6 13 20 27 1973 1 8 15 22 29 5* 12* 19* 26* New York City 1972 38,208 36,545 38,952 38,377 22,903 22,171 22,856 22,175 455 359 457 561 44,216 40,932 41,860 38,418 38,341 24,608 22,139 24,665 22,545 22,452 432 441 570 401 327 40,351 40,631 40,130 41,475 24,070 23,476 23,357 22,986 318 399 348 583 8,930 8,608 8,319 8,714 387 353 319 355 641 635 653 604 2,109 1,967 2,143 2,195 2,386 2,190 2,802 2,365 27,210 27,282 26,587 27,154 5,675 5,662 5,664 5,685 15,352 15,281 14,613 14,896 2,029 2,074 1,991 2,171 1,296 1,350 1,452 1,512 2,769 2,829 2,783 2,795 528 10,878 128 11,588 466 10,350 230 9,418 295 8,933 449 479 429 448 383 858 675 678 657 728 2,621 2,758 2,553 2,543 2,409 3,842 2,724 2,149 2,176 2,814 34,262 34,725 35,043 34,817 35,150 5,14? 5,119 5,075 5,036 4,991 19,943 20,239 20,335 19,945 20,405 2,093 2,027 2,128 2,222 2,148 3,072 3,280 3,466 3,511 3,517 3,939 3,991 3,978 4,044 4,037 Aug. 1 8 15 22 29 9,508 9,994 9,691 9,765 411 379 346 364 755 691 749 710 2,378 2,437 2,323 2,643 2,830 3,054 2,786 3,396 35,323 35,080 35,331 35,182 4,976 4,946 4,934 4,942 20,689 20,140 20,395 20,279 2,153 2,326 2,151 2,117 3,488 3,708 3,890 3,968 3,965 3,905 3,883 3,790 Sept. 5* 12* 19* 397 262 1,403 1,408 Sept. 6 13 20 27 1973 81 201 530 1,028 26* Outside New York City 1972 109,951 108,279 109,048 107,756 83,976 84,475 82,661 81,159 6,087 5,631 5,719 5,930 1,722 1,477 4,284 5,071 13,519 12,325 11,930 11,296 370 345 331 337 159 156 137 140 841 793 892 882 3,277 3,077 3,094 2,941 128,130 128,424 128,586 129,116 52,224 52,211 52,231 52,384 55,416 55,579 55,602 55,945 16,260 16,314 16,290 16,312 1,236 1,274 1,395 1,401 2,578 2,633 2,650 2,654 113,389 106,818 112,234 105,953 105,206 86,920 83,846 87,870 83,796 83,337 6,469 5,619 6,147 5,275 5,370 2,482 1,276 1,756 1,590 1,521 11,871 10,907 11,132 10,306 10,139 408 395 395 344 345 159 182 166 162 164 1,036 1,003 981 1,013 1,013 4,044 3,590 3,787 3,467 3,317 151,172 152,582 153,776 155,222 155,626 52,198 52,016 51,734 51,576 51,298 72,848 74,163 75,682 76,964 77,496 19,885 20,166 20,079 20,322 20,531 1,643 1,674 1,790 1,923 1,949 4,111 4,127 4,082 4,058 3,997 Aug. 1 8 15 22 29 112,667 112,267 110,657 109,652 88,012 89,005 86,187 84,321 5,735 5,428 5,450 5,890 1.065 1,438 3.066 4,196 12,623 11,337 11,050 10,410 385 339 325 320 198 219 195 187 1,041 1,094 1,048 1,035 3,608 3,407 3,336 3,293 155,162 155,379 155,353 155,701 51,227 51,144 51,067 51,091 76,900 76,930 77,059 77,335 20,482 20,674 20,569 20,688 2,017 2,050 2,024 2,012 4,168 4,243 4,298 4,229 Sept. 5* 12* 19* 26* Sept. 6 ..13 20 27 1973 For notes see p. A-28. WEEKLY REPORTING BANKS • OCTOBER 1973 A 28 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings from— Wednesday Federal funds purF.R. chased, Banks etc. 7 Reserves for— Other liabilities, Others etc. 8 Memoranda Total capital Securacities counts Total loans (gross) adjusted 9 Large negotiable Total time CD's loans included in time and Deand savings deposits i 1 invest- mand ments deposits (gross) adIssued adjusted i o Total to justed 9 IPC's Large banks— Total 1972 Sept. Aug. 39,475 31,991 30,297 27,735 1,544 1,513 1,513 1,410 15,810 15,479 15,519 16,142 4,196 4,184 4,180 4,189 28,723 28,736 28,659 28,676 209,945 209,742 210,426 211,016 290,673 291,351 291,203 292,029 92,691 92,937 92,012 91,964 40,927 41,164 40,527 41,219 26,599 26,597 25,853 26,314 698 826 1,959 2,282 2,546 4,356 4,556 4,715 5,286 5,745 18,775 18,624 18,426 18,858 18,840 4,524 4,533 4,533 4,536 4,554 30,854 30,878 30,816 30,790 30,782 256,139 259,184 260,664 256,814 256,849 334,410 337,333 340,407 335,511 335,315 100,189 96,356 100,061 96,117 96,481 64,901 66,570 68,179 69,103 69,951 43,950 45,199 46,483 47,166 48,137 39,876 44,144 39,597 38,617 708 739 1,674 3,708 5,814 5,937 6,046 5,998 18,093 18,393 18,218 17,720 4,572 4,574 4,627 4,635 30,994 30,974 30,866 30,841 258,428 259,794 260,697 259,529 337,892 340,317 340,132 338,928 97,010 98,330 96,572 96,652 69,365 69,309 69,486 69,273 47,362 46,789 46,980 46,747 7,431 8,510 7,146 5,804 15 1,018 242 306 287 307 242 5,626 5,180 5,428 6,032 1,237 1.236 1.237 1,245 7,282 7,279 7,254 7,241 47,575 47,723 47,722 47,512 62,105 62,301 62,066 62,078 19,751 19,141 19,287 19,420 14,526 10,216 14,609 10,170 13,934 9,491 14,406 9,734 7,963 8,954 8,925 9,303 8,396 15 265 837 527 2,080 2,057 2,041 2,456 2,606 7,212 7,114 6,771 7,008 7,024 1,288 1,294 1,293 1,296 1,302 7,798 7,808 7,801 7,779 7,734 59,025 59,706 60,249 58,579 58,934 71,287 71,891 73,505 71,568 71,691 21,931 19,648 22,045 20,453 20,415 20,676 21,064 21,406 21,196 21,589 13,634 13,881 13,933 13,610 14,084 7,838 12,608 8,116 8,894 15 20 645 ,049 2,635 2,795 2,857 2,801 6,372 6,483 6,309 6,073 1,304 1,304 1,339 1,346 7,843 7,849 7,799 7,743 59,430 59,795 59,803 59,772 72,407 74,041 73,542 72,976 21,686 20,853 20,692 20,857 21,665 21,414 21,663 21,436 14,090 13,623 13,826 13,627 22,044 23,481 23,151 21,931 1 44 80 ,647 687 38,677 40,418 39,747 38,374 36,735 6 13 20 27 44 65 629 445 1,238 1,226 1,206 1,168 10,184 10,299 10,091 10,110 2,959 2,948 2.943 2.944 21,441 21,457 21,405 21,435 162,370 162,019 162,704 163,504 228,568 229,050 229,137 229,951 72,940 73,796 72,725 72,544 26,401 26,555 26,593 26,813 16,383 16,427 16,362 16,580 698 1973 8 15 22 29 Sept. 5* 12* 19* 26* New York City 1972 Sept. 6 13 20 27 Aug. 1 1973 8 15 22 29 Sept. 5* 12* 19* 26* Outside New York City 1972 Sept. 6 13 20 27 Aug. 1 8 15 22 29 30,714 31,464 30,822 29,071 28,339 1,694 1,445 2,019 2,276 2,499 2,674 2,830 3,139 11,563 11,510 11,655 11,850 11,816 3,236 3.239 3.240 3,240 3,252 23,056 23,070 23,015 23,011 23,048 197,114 199,478 200,415 198,235 197,915 263,123 265,442 266,902 263,943 263,624 78,258 76,708 78,016 75,664 76,066 44,225 45,506 46,773 47,907 48,362 30,316 31,318 32,550 33,556 34,053 5* 12* 19* 26* 32,038 31,536 31,481 29,723 693 719 1,029 2,659 3,179 3,142 3,189 3,197 11,721 11,910 11,909 11,647 3,268 3,270 3.288 3.289 23,151 23,125 23,067 23,098 198.998 199.999 200,894 199,757 265,485 266,276 266,590 265,952 75,324 77,477 75,880 75,795 47,700 47,895 47,823 47,837 33,272 33,166 33,154 33,120 1973 Sept. 811 t Includes securities purchased under agreements to resell. Includes official institutions and so forth. 3 Includes short-term notes and bills. 4 Federal agencies only. 5 Includes corporate stock. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 7 Includes securities sold under agreements to repurchase. 2 8 9 Includes minority interest in consolidated subsidiaries. Exclusive of loans and Federal funds transactions with domestic commercial banks. 10 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process of collection. 11 Certificates of deposit issued in denominations of $100,000 or more. OCTOBER 1973 • BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1973 Industry Sept. 26 Durable goods manufacturing: Primary metals Machinery Transportation equipment Other fabricated metal products... Other durable goods Nondurable goods manufacturing: Food, liquor, and tobacco Textiles, apparel, and leather Petroleum refining Chemicals and rubber Other nondurable goods Mining, including crude petroleum and natural gas Trade: Commodity dealers Other wholesale Retail Transportation Communication Other public utilities Construction Services All other domestic loans Bankers' acceptances Foreign commercial and industrial loans Total classified loans Total commercial and industrial loans of large commercial banks Sept. 19 1973 Sept. 12 Sept. 5 Aug. 29 Sept. 1973 Aug. July III II 1973 1st half I 1972 2nd half 2,052 6,570 2,437 2,318 4,060 2,052 6,671 2,455 2,319 4,061 2,027 6,466 2,417 2,309 4,028 2,008 6,361 2,410 2,259 3,983 1,983 6,356 2,507 2,263 3,904 69 214 -70 55 156 -16 60 247 -47 119 -39 240 102 48 9 14 514 279 56 284 -102 645 32 267 323 122 808 32 236 549 20 1,453 64 503 872 -79 395 -258 57 69 3,804 3,663 1,208 2,703 2,207 3,761 3,704 1,222 2,705 2,204 3,712 3,712 1,219 2,696 2,165 3,738 3,642 1,255 2,657 2,138 3,696 3,644 1,245 2,645 2,134 108 19 -37 58 73 -60 95 -5 43 31 332 125 62 -64 49 380 239 20 37 153 -194 275 -7 63 157 171 455 218 746 203 -23 730 211 809 360 827 -166 -14 -262 30 4,036 4,022 4,032 4,050 4,004 1,212 1,239 1,264 1,300 1,304 5,274 5,221 5,193 5,223 5,183 6,239 6,165 6,105 6,151 6,096 5,951 5,962 5,950 5,927 5,928 2,106 2,119 2,110 2,047 2,049 5,286 5,168 4,985 4,862 4,683 5,803 5,815 5,813 5,773 5,814 10,489 10,473 10,398 10,419 10,388 7,939 7,967 8,021 8,039 7,993 1,113 1,126 1,166 1,128 1,143 32 -92 91 143 23 57 603 -11 101 -54 -30 -125 32 -140 -47 -34 -85 -44 118 171 151 -189 169 18 102 51 78 17 180 104 88 253 -65 76 -42 53 147 67 -11 739 211 360 350 -284 -603 183 457 283 79 670 624 455 782 76 331 63 384 635 11 179 291 304 542 972 -230 331 -540 567 1,092 294 258 961 928 997 1,754 -154 25 622 216 473 -42 424 939 364 494 239 100 4,050 4,025 4,168 4,080 4,189 90,520 90,456 89,956 89,450 89,151 -139 1,369 -252 23 7 1,866 -384 3,258 -18 4,447 572 554 7,594 12,041 491 4,944 108,309 108,246 107,627 107,121 106,897 1,412 5 1,900 3,317 5,127 8,762 13,889 6,149 See NOTE to table below. "TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1973 Sept. 26 Durable goods manufacturing: Primary metals Machinery Transportation equipment. Other fabricated metal products Other durable goods Nondurable goods manufacturing: Food, liquor, and tobacco. Textiles, apparel, and leather Petroleum refining Chemicals and rubber Other nondurable goods.. Mining, including crude petroleum and natural gas. Trade: Commodity dealers.. Other wholesale Retail Transportation Communication Other public utilities Construction Services All other domestic loans Foreign commercial and industrial loans Total loans 1,222 Aug. July June May Apr. 29 25 27 30 25 1,226 1,293 2,664 1,193 823 1,594 846 1,730 1,396 1,010 1,489 925 1,494 1,069 2,509 1,156 862 1,028 2,818 1,294 2,638 Mar. 28 Feb. 28 Jan. 31 IV III 1,328 2,641 1,189 1,314 2,560 1,315 2,555 1,180 1,335 2,313 1,174 1,307 2,305 1,217 1,336 2,271 1,246 -106 -132 -33 - 7 328 15 67 159 -31 -35 249 -102 869 1,690 833 1,592 842 1,614 785 1,520 765 1,464 751 1,348 -46 -96 84 170 65 1,720 281 41 51 1,405 1,410 1,393 1,372 1,355 1,350 1,325 1,304 43 116 155 1,021 1,003 947 1,486 1,050 969 876 1,481 1,063 942 885 1,441 1,063 978 858 1,459 892 842 1,479 843 778 1,439 77 34 1,108 1,100 1,062 781 781 1,359 1,005 169 144 326 - 6 3,022 178 2,846 123 2,908 139 1,051 1,979 4,161 760 2,328 1,852 4,402 2,895 136 2,823 131 2,061 2,872 150 1,055 1,823 4,234 746 2,234 1,709 4,339 1,871 1,763 4,285 770 2,245 1,665 4,184 1,785 95 1,017 1,998 3,896 813 2,761 2,921 115 1,149 2,136 4,287 835 2,671 4,220 2,344 2,010 861 1,118 2,066 1,066 2,006 1,168 1,068 1,947 4,202 738 2,343 1,008 41 -14 8 2 12 19 -35 -37 206 -28 -28 -49 -26 -27 187 29 11 161 - 8 231 54 64 259 151 313 274 287 4,120 1,71 352 -90 -342 143 183 71 39 175 187 223 330 2,896 132 982 1,698 4,257 755 -24 6 14 30 148 94 4,646 2,458 4,255 814 2,548 2,009 4,568 2,389 4,305 785 2,409 1,896 4,562 2,201 2,180 2,292 2,497 2,585 2,647 2,410 2,567 2,327 2,355 -575 18 201 223 "36,867 "39,158 "39,091 "38,283 "37,577 37,281 36,390 35,491 34,809 ,416 ,893 3,426 ,498 1,806 2,000 NOTE.—About 160 weekly reporting banks are included in this series; these banks classify, by industry, commercial and industrial loans amounting to about 90 per cent of such loans held by all weekly reporting banks and about 70 per cent of those held by all commercial banks. For description of series see article "Revised Series on Commercial and Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209. 1972 1973 Industry 1,800 4,417 2,060 1,661 -409 28 121 8 164 43 Commercial and industrial "term" loans are all outstanding loans with an original maturity of more than 1 year and all outstanding loans granted under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess of 1 year. A 30 DEMAND DEPOSIT OWNERSHIP • OCTOBER 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holdeir Class of bank, and quarter or month Total deposits, IPC Financial business Nonfinancial business Consumer Foreign All other 1970—June Sept Dec 17.1 17.0 17.3 85.3 88.0 92.7 49.0 51.4 53.6 1.6 1.4 1.3 9.6 10.0 10.3 162.5 167.9 175.1 1971—Mar June Sept Dec 18.3 18.1 17.9 18.5 86.3 89.6 91.5 98.4 54.4 56.2 57.5 58.6 1.4 1.3 1.2 1.3 10.5 10.5 9.7 10.7 170.9 175.8 177.9 187.5 1972—June Sept Dec 17.9 18.0 18.9 97.6 101.5 109.9 60.5 63.1 65.4 1.4 1.4 1.5 11.0 11.4 12.3 188.4 195.4 208.0 1973—Mar June 18.6 18.5 102.8 106.0 65.1 66.8 1.7 2.0 11.8 11.7 200.0 205.1 1971—Dec 14.4 58.6 24.6 1.2 5.9 104.8 1972—Aug Sept Oct Nov Dec 13.6 13.7 14.1 14.5 14.7 57.4 59.0 60.0 60.5 64.4 26.0 26.2 26.2 26.7 27.1 1.3 1.3 1.3 1.3 1.4 5.7 6.2 6.1 6.2 6.6 104.0 106.4 107.8 109.2 114.3 1973—Jan Feb Mar Apr May June July Aug 15.0 14.3 14.4 14.3 13.8 14.2 14.8 14.3 63.1 60.3 59.0 59.4 59.1 60.8 61.1 59.5 27.8 26.3 26.5 28.6 26.9 27.1 27.3 27.3 1.4 1.6 1.6 1.8 1.9 1.9 1.9 1.9 6.8 6.5 6.4 6.4 6.4 6.3 6.6 6.1 114.1 109.0 107.9 110.4 108.0 110.2 111.7 109.1 All commercial banks: Weekly reporting banks: 1 Including cash items in process of collection. NOTE.—Daily-average balances maintained during month as estimated from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank All commercial Insured National member State member All member Dec. 31, 1971 680 677 387 95 482 Dec. 31, 1972 559 554 311 71 381 Mar. 28, 1973 556 314 72 385 June 30, 1973 538 533 304 71 375 i Beginning Nov. 9,1972, designation of banks as reserve city banks for reserve-requirement purposes has been based on size of bank (net demand deposits of more than $400 million), as described in the BULLETIN for July 1972, p. 626. Categories shown here as "Other large" and "All other member" parallel the previous "Reserve City" (other than in New York City and the City of Chicago) and "Country" categories, respectively (hence the series are continuous over time). Class of bank All member—Cont. 1 Other large banks All other member 1 All nonmember Insured Noninsured Dec. 31, 1971 112 371 197 195 2 Dec. 31, 1972 69 313 177 172 5 Mar. 28, 1973 67 318 171 June 30, 1973 63 312 163 158 5 NOTE.—These hypothecated deposits are excluded from "Time deposits" and "Loans" at commercial banks, as shown in the tables on pp. A-18, A-l 9, and A-24-A-28 (consumer instalment loans), and in the table at the bottom of p. A-l 7. These changes resulted from a change in Federal Reserve regulations. See June 1966 BULLETIN, p. 808. These deposits have not been deducted from "Time deposits" and "Loans" for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). OCTOBER 1973 • LOAN SALES BY BANKS; OPEN MARKET PAPER A 31 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks By type of loan Total By type of loan Total Commercial and industrial All other Commercial and industrial All other 1973—June 6 13 20 27 3,701 3,611 3,474 3,520 2,348 2,248 2,169 2,174 1,353 1,363 1,305 1,346 1,798 1,757 1,731 1,707 323 309 280 279 1,475 1,448 1,451 1,428 July 4 11 2,308 2,267 2,515 2,557 1,313 1,266 1,448 1,474 1,693 1,683 1,686 1,707 267 281 274 291 1,426 1,402 1,412 1,416 25 3,621 3,533 3,963 4,031 Aug. 1 8 15 22 r 29 4,119 4,142 4,526 4,602 4,741 2,542 2,506 2,786 2,708 2,895 1,577 1,636 1,740 1,894 1,846 1,694 1,795 1,792 1,738 1,750 294 380 381 327 323 1,400 1,415 1,411 1,411 1,427 Sept. 5 12 19 26 4,672 4,453 4,748 4,637 2,816 2,713 2,841 2,877 1,856 1,740 1,907 1,760 1,743 1,783 1,777 1,766 326 355 356 353 1,417 1,428 1,421 1,413 18 NOTE.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance company paper Placed through dealers End of period Dollar acceptances Held b y - Placed directly Total Total Bank Bank related Other 1 related Other 2 196 5 196 6 196 7 196 8 1969 197 0 197 1 9,300 13,645 17,085 21,173 32,600 33,071 32,126 1972—Aug. Sept. Oct.. Nov. Dec. 34,233 34,012 35,651 35,775 34,721 1973—Jan.. Feb. Mar. Apr. May June July. Aug. 35,727 35,196 34,052 34,404 35,672 35,786 35,463 37,149 1,903 3,089 4,901 7,201 1,216 10,601 409 12,262 495 10,923 Total F.R. Banks Own bills Bills bought Own acct. Foreign corr. Others ImExports ports from into United United States States All other 7,397 10,556 12,184 13,972 3,078 17,705 1,940 18,460 1,478 19,230 3,392 3,603 4,317 4,428 5,451 7,058 7,889 1,223 1,198 1,906 1,544 1,567 2,694 3,480 1,094 983 1,447 1,344 1,318 1,960 2,689 129 215 459 200 249 735 791 187 193 164 58 64 57 261 144 191 156 109 146 250 254 1,837 2,022 2,090 2,717 3,674 4,057 3,894 792 997 1,086 1,423 1,889 2,601 2,834 974 829 989 952 1,153 1,561 1,546 1,626 1,778 2,241 2,053 2,408 2,895 3,509 12,239 12,313 12,737 12,345 11,242 1,716 1,593 1.708 1.709 1,707 19,573 19,331 20,385 20,845 20,842 6,639 6,602 6,748 6,864 6,898 2,298 2,403 2,394 2,529 2,706 1,829 1,833 1,881 1,995 2,006 469 569 514 535 700 96 62 70 63 106 287 261 219 199 179 3,958 3,876 4,065 4,073 3,907 2,532 2,538 2,585 2,621 2,531 1,631 1,646 1,786 1,844 1,909 2,476 2,418 2,377 2,400 2,458 911 11,641 956 9,968 993 8,366 1,044 8,290 1,148 8,288 1,173 8,316 1,207 7,954 1,350 7,676 1,795 2,160 2,463 2,767 2,922 3,110 3,307 3,758 21,380 22,112 22,230 22,303 23,314 23,187 22,995 24,365 6,564 6,734 6,859 6,713 6,888 7,237 7,693 7,734 2,384 2,328 2,269 2,068 2,197 2,185 2,254 1,968 1,825 1,765 1,777 1,641 1,763 1,746 1,803 1,598 560 563 492 427 433 439 452 370 141 233 165 136 83 66 '132 84 198 239 282 344 384 395 496 522 3,841 3,934 4,143 4,165 4,225 4,591 r 4,810 5,159 2,337 2,311 2,091 1,996 2,009 2,053 2,222 2,268 1,948 2,113 2,399 2,359 2,509 2,755 2,954 2,945 2,279 2,310 2,368 2,359 2,371 2,428 2,517 2,520 705 775 821 876 930 1 As reported by dealers; includes finance company paper as well as other commercial paper sold in the open market. 2 As reported by finance companies that place their paper directly with investors. Accepting banks Based on— NOTE.—Back data available from Financial Statistics Division, Federal Reserve Bank of New York. A 32 INTEREST RATES • OCTOBER 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date 1969—Jan. 7, Mar. 17, June 9. 1970—Mar. 25. Sept. 21. Nov. 12. 23. Dec. 22. 1971—Jan. 6. 15. 18. Feb. 16. Mar. 11. 19. Apr. 23. May 11. July 6. 7. Oct. 20. Nov. Dec. 1. 4. 8. 22. 29. Rate 7 m Effective date 1972—Jan. Effective date 5-5i/8-5i4434-5-5144i/i-434-_5 3 17, 24, 31, 1972—Sept. 4 5 / 8 -4 3 4-5- Feb. 28. 7% 7% 4 Mar. 13. 23. 27. 6 434«-5 3. 5. 17. 5m-5V4 5V4-5% 5% May 5%-5% 5% 1. 30. July 5--5i/ 8 5-514- Feb. 3. 10. 5y4m-5ys514--53/8- 21. 25. 5%-5V4» 29. 1973—June July 18. 23. 30. Aug. 534 .-6 534-6. 6. 7. 13. 834-999-914- 21. 22. 28. 6. 2.. 14.. 26.. 27.. 71/27% --734 734734 .-8 734-8. 8-814. 814 --81/£ 814-Siyi81/2 2 3. 9. 17. 534534--57/ 8 4. Rate 8 19 25, 5i/i-534534- 914--91/2 91/i9^-93/4. 934- 29. 6.-614 6. 6.-6 V 4 614- Mar. 19. 26. 5% 5V4--53/8 51/4--53/8 51/4.-53/85% 514-53/8- Aug. 11. 14. 6., 20.. Effective date 534--57/ 8 1973—Jan. 17. 31. 5V4'-5% 514-51/i51/2" 5Vi--55/8 "ft8*- 4. 5. 11. 25. Dec. 26., 27. 5.-51/8-51/4 5- June 12. 26. 6 Nov. 5- Rate 2. 4. 11. 16. Oct. 434- Apr. 7 6% % 6. 27. 31. Rate Sept. 14. 9 34 . - 1 0 10. 18. 614--634 614. 61/2-634 . 634- Apr. 18. 19., May 634--7 7- 7--714 7-714- NOTE.—Beginning Nov. 1971, several banks adopted a floating prime rate keyed to money market variables. - denotes the predominate prime rate quoted by commercial banks to large businesses. Effective Apr. 16, 1973, with the adoption of a two tier or "dual prime rate," this table shows only the "large-business prime rate," which is the range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 100-499 10-99 500-999 1,000 and over Center May 1973 Feb. 1973 May 1973 Feb. 1973 May 1973 Feb. 1973 May 1973 Feb. 1973 May 1973 Feb. 1973 May 1973 Feb. 1973 6.83 6.59 7.04 6.83 6.89 6.72 6.82 7.34 7.14 7.77 7.32 7.11 7.28 7.27 6.52 6.33 6.93 6.35 6.65 6.53 6.41 7.19 6.97 7.52 7.41 7.16 7.08 7.06 6.30 6.13 6.65 6.27 6.41 6.38 6.34 6.55 6.56 6.69 6.54 6.41 6.74 6.51 7.25 7.18 7.33 7.22 7.13 7.54 7.23 6.38 6.40 6.47 6.29 7.17 7.06 7.45 7.37 6.86 6.30 "7.79" 7.12 6.39 6.53 6.32 6.18 7.67 6.82 6.28 7.31 7.09 7.49 7.24 8.67 7.37 6.91 7.72 7.70 7.95 7.51 9.39 7.68 7.57 7.13 6.47 6.89 7.02 7.76 6.62 8.24 7.60 7.25 8.28 7.65 8.58 7.82 7.71 7.06 6.91 6.94 6.98 8.71 8.45 7.06 Short-term 35 centers New York City 7 Other Northeast 8 North Central 7 Southeast 8 Southwest 4 West Coast 7.35 7.04 7.71 7.45 7.37 7.33 7.25 6.52 6.22 6.89 6.45 6.76 6.63 6.50 8.05 8.05 8.36 7.72 8.03 7.98 8.31 7.63 7.39 8.00 7.26 7.73 7.48 7.87 7.85 7.76 8.08 7.70 7.80 7.74 7.98 7.29 7.08 7.53 7.16 7.33 7.16 7.37 7.61 7.38 7.89 7.57 7.53 7.48 7.71 Revolving credit 35 centers New York City 7 Other Northeast 8 North Central 7 Southeast 8 Southwest 4 West Coast 7.14 7.07 7.45 7.40 7.19 7.79 7.17 6.39 6.53 6.38 6.25 7.24 6.83 6.32 7.96 7.82 8.43 8.61 7.53 7.75 7.97 7.27 7.07 7.51 8.50 6.00 7.65 7.37 7.85 7.36 7.63 7.99 7.73 7.83 7.95 7.06 6.87 7.09 7.14 5.95 7.17 7.20 7.46 7.28 7.55 7.66 7.03 8.11 7.36 Long-term 35 centers New York City 7 Other Northeast 8 North Central 7 Southeast 8 Southwest 4 West Coast 7.66 7.30 8.17 7.72 8.44 1.19 7.69 7.11 6.90 7.08 7.04 8.29 7.88 7.18 8.17 7.20 8.60 8.08 7.18 8.39 8.72 7.47 6.64 7.28 7.34 7.38 8.20 7.49 NOTE.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 46877 of the June 1971 BULLETIN. 7.79 7.45 7.68 8.02 7.24 8.20 7.95 7.48 7.00 7.66 7.60 7.05 7.97 7.17 7.93 7.55 8.12 8.21 8.50 7.66 7.66 OCTOBER 1973 • INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities 4 Prime commercial paper 1 Finance CO. Prime bankers' acceptances, 90 days * Federal funds rate 3 3-month bills 5 6-month bills 5 4- to 6months paper placed directly, 3- to 6months 2 5.55 5.10 5.90 7.83 5.42 4.89 5.69 7.16 5.36 4.75 5.75 7.61 5.11 4.22 5.66 8.22 4.881 4.321 5.339 6.677 4.86 4.29 5.34 6.67 5.082 4.630 5.470 6.853 5.06 4.61 5.47 6.86 5.07 4.71 5.46 6.79 5.17 4.84 5.62 7.06 5.16 5.07 5.59 6.85 Period 90-119 days 1966. 1967. 1968. 1969. Rate on new issue Market yield Rate on new issue Market yield 9-to 12-month issues 1-year bill (market yield) 5 3- to 5year issues 7 Other 6 1970. 1971. 1972. 4.67 7.72 5.11 4.69 7.23 4.91 4.52 7.31 4.85 4.47 7.17 4.66 4.44 6.458 4.348 4.071 6.39 4.33 4.07 6.562 4.511 4.466 6.51 4.52 4.49 6.49 4.67 4.77 6.90 4.75 4.86 7.37 5.77 5.85 1972—Sept.. Oct.. Nov.. Dec.. 5.07 5.21 5.18 5.40 5.14 5.30 5.25 5.45 4.91 5.13 5.13 5.24 4.84 5.05 5.01 5.16 4.87 5.04 5.06 5.33 4.651 4.719 4.774 5.061 4.66 4.74 4.78 5.07 5.086 5.118 5.079 5.287 5.13 5.13 5.09 5.30 5.44 5.39 5.20 5.28 5.49 5.41 5.22 5.46 6.16 6.11 6.03 6.07 1973—Jan Feb Mar Apr May June July Aug Sept 5.76 6.17 6.76 7.13 7.26 8.00 9.26 10.26 10.31 5.78 6.22 6.85 7.14 7.27 7.99 9.18 10.21 10.23 5.56 5.97 6.45 6.76 6.85 7.45 8.09 8.90 8.90 5.60 6.14 6.82 6.97 7.15 7.98 9.19 10.18 10.19 5.94 6.58 7.09 7.12 7.84 8.49 10.40 10.50 10.78 5.307 5.558 6.054 6.289 6.348 7.188 8.015 8.672 8.478 5.41 5.60 6.09 6.26 6.36 7.19 8.01 8.67 8.29 5.527 5.749 6.430 6.525 6.615 7.234 8.081 8.700 8.537 5.62 5.83 6.51 6.52 6.62 7.23 8.12 8.65 8.45 5.58 5.93 6.53 6.51 6.63 7.05 7.97 8.32 8.07 5.78 6.07 6.81 6.79 6.83 7.27 8.37 8.82 8.44 6.29 6.61 6.85 6.74 6.78 6.76 7.49 7.75 7.16 7.53 7.80 7.90 8.10 8.28 7.53 7.83 7.90 8.03 8.28 7.13 7.25 7.50 7.50 7.60 7.41 7.75 7.88 8.05 8.35 7.95 8.43 8.17 8.55 8.59 6.694 7.133 7.129 7.263 7.228 6.91 7.07 7.15 7.25 7.32 6.864 7.210 7.172 7.255 7.299 6.99 7.09 7.16 7.27 7.43 6.93 6.94 6.94 7.02 7.31 7.13 7.20 7.19 7.25 7.46 6.79 6.72 6.70 6.74 6.89 21. 28., 8.75 8.98 9.28 9.70 8.75 8.90 9.15 9.60 7.84 8.08 8.13 8.13 8.94 9.00 9.05 9.50 10.21 9.52 10.22 10.58 7.987 7.991 7.967 8.114 7.94 7.78 8.03 8.17 8.011 8.019 8.023 8.272 7.95 7.86 8.17 8.35 7.71 7.65 7.97 8.34 7.96 8.09 8.40 8.73 7.15 7.29 7.48 7.76 Aug. 4., 11., 18., 25., 9.95 10.15 10.28 10.30 9.88 10.05 10.25 10.25 8.33 8.65 8.80 8.98 9.85 10.15 10.25 10.25 10.57 10.39 10.39 10.52 8.320 8.486 8.976 8.910 8.30 8.70 8.88 8.71 8.476 8.650 8.943 8.856 8.43 8.79 8.78 8.57 8.40 8.44 8.34 8.25 8.94 9.13 8.91 8.61 8.02 8.16 7.80 7.50 Sept. 1., 8., 15., 22., 29., 10.48 10.50 10.50 10.43 9.85 10.45 10.38 10.48 10.45 9.65 9.00 9.09 9.00 9.00 8.60 10.25 10.25 10.35 10.43 9.75 10.79 10.79 10.74 10.80 10.84 8.668 8.778 9.016 8.786 7.331 8.62 8.80 8.94 8.38 7.13 8.577 8.735 8.921 8.832 7.661 8.58 8.75 8.97 8.52 7.63 8.22 8.19 8.45 8.10 7.57 8.53 8.51 8.78 8.59 7.90 7.35 7.27 7.45 7.10 6.85 Week ending— 1973—June 2. 9. 16., 23., 30., July 7., 14. 1 Averages of the most representative daily offering rate quoted by dealers. 2 Averages of the most representative daily offering rate published by finance companies, for varying maturities in the 90-179 day range. 3 Seven-day averages for week ending Wednesday. Beginning with statement week ending July 25, 1973, weekly averages are based on the daily average of the range of rates on a given day weighted by the volume of transactions at these rates. For earlier statement weeks, the averages were based on the daily effective rate—the rate considered most repre- sentative of the day's transactions, usually the one at which most transactions occurred. 4 Except for new bill issues, yields are averages computed from daily closing bid prices. 5 Bills quoted on bank-discount-rate basis. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. NOTE.—Figures for Treasury bills are the revised series described on P. A - 3 5 o f t h e O c t . 1 9 7 2 BULLETIN. A 34 INTEREST RATES • OCTOBER 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds State and local Period United States (longterm) Aaa utility Stocks By selected ratine By group Dividend/ price ratio Earnings/ price ratio Total l Total i Aaa New issue Recently offered Aaa Baa Industrial Railroad Public utility Preferred Common Common Seasoned issues 1963. 1964. 4.00 4.15 3.28 3.28 3.06 3.09 3.58 3.54 4.21 4.34 1965. 1966. 1967. 1968. 1969. 4.21 4.66 4.85 5.25 6.10 3.34 3.90 3.99 4.48 5.73 3.16 3.67 3.74 4.20 5.45 3.57 4.21 4.30 4.88 6.07 4.50 5.43 5.82 6.50 7.71 1970. 1971. 1972. 6.59 5.74 5.63 6.42 5.62 5.30 6.12 5.22 5.04 6.75 5.89 5.60 1972—Sept.. Oct... Nov.. Dec.. 5.70 5.69 5.50 5.63 5.38 5.24 5.11 5.13 5.12 5.03 4.91 4.91 1973—Jan... Feb... Mar.. Apr.. May., June. July . Aug. Sept.. 5.94 6.14 6.20 6.11 6.22 6.32 6.53 6.81 6.42 5.13 5.17 5.30 5.17 5.13 5.25 5.44 5.51 5.13 6.90 6.97 6.83 6.74 6.62 6.45 6.52 6.43 6.28 4.50 4.57 4.26 4.40 4.86 4.83 4.42 4.52 4.65 4.67 4.41 4.53 4.30 4.32 3.17 3.01 5.68 5.54 4.51 5.38 5.79 6.47 7.64 4.64 5.34 5.82 6.51 7.36 4.49 5.13 5.51 6.18 7.03 4.87 5.67 6.23 6.94 7.81 4.61 5.30 5.74 6.41 7.22 4.72 5.37 5.89 6.77 7.46 4.60 5.36 5.81 6.49 7.49 4.33 4.97 5.34 5.78 6.41 3.00 3.40 3.20 3.07 3.24 5.87 6.72 5.71 5.64 6.08 8.68 7.62 7.31 8.71 7.66 7.34 8.51 7.94 7.63 8.04 7.39 7.21 9.11 8.56 8.16 8.26 7.57 7.35 8.77 8.38 7.99 8.68 8.13 7.74 7.22 6.75 7.27 3.83 3.14 2.84 6.51 5.40 5.69 5.45 5.37 5.39 7.40 7.38 7.09 7.15 7.42 7.41 7.21 7.21 7.59 7.59 7.52 7.47 7.22 7.21 7.12 7.08 8.09 8.06 7.99 7.93 7.36 7.36 7.28 7.22 7.97 7.97 7.95 7.91 7.63 7.63 7.55 7.48 7.00 7.03 6.93 6.92 2.83 2.82 2.73 2.70 5.56 4.90 4.95 5.07 4.95 4.90 5.05 5.21 5.26 4.90 5.39 5.44 5.58 5.42 5.41 5.51 5.71 5.80 5.41 7.38 7.40 7.49 7.46 7.51 7.64 8.01 8.36 7.88 7.37 7.42 7.54 7.47 7.50 7.64 7.97 8.22 7.99 7.49 7.57 7.62 7.62 7.62 7.69 7.80 8.04 8.06 7.15 7.22 7.29 7.26 7.29 7.37 7.45 7.68 7.63 7.90 7.97 8.03 8.09 8.06 8.13 8.24 8.53 8.63 7.27 7.34 7.43 7.43 7.41 7.49 7.59 7.91 7.89 7.87 7.92 7.94 7.98 8.01 8.07 8.17 8.32 8.37 7.51 7.61 7.64 7.64 7.63 7.69 7.81 8.06 8.09 6.85 6.91 7.03 7.11 7.13 7.25 7.35 7.43 7.38 2.69 2.80 2.83 2.90 3.01 3.06 3.04 3.16 3.13 5.63 5.63 5.64 5.42 5.40 5.40 5.20 5.20 5.90 5.90 5.85 5.75 8.31 8.52 8.30 8.29 8.28 8.32 8.16 8.21 7.88 7.97 8.06 8.12 7.53 7.61 7.71 7.77 8.33 8.43 8.54 8.61 7.72 7.83 7.94 7.99 8.19 8.28 8.34 8.36 7.89 7.96 8.06 8.14 7.43 7.39 7.35 7.48 3.06 3.11 3.19 3.27 5.35 5.20 5.19 5.11 5.01 5.10 5.00 5.00 4.90 4.70 5.60 5.50 5.45 5.40 5.32 7.94 7.74 8.03 7.81 8.24 8.02 8.06 8.03 7.84 8.12 8.09 8.06 8.07 8.02 7.73 7.64 7.63 7.65 7.60 8.67 8.66 8.64 8.64 8.56 7.97 7.92 7.90 7.90 7.84 8.40 8.42 8.38 8.38 8.32 8.17 8.13 8.08 8.10 8.08 7.50 7.51 7.39 7.34 7.29 3.17 3.15 3.20 3.12 3.04 121 20 30 41 30 40 14 500 5.46 6.11 Week ending— 1973—Aug. 4. 11. 18. 25. Sept. 1. 8. 15. 22. 29. Number 2of issues .. . 1 Includes bonds rated Aa and A, data for which are not shown separately. Because of a limited number of suitable issues, the number of corporate bonds in some groups has varied somewhat. As of Dec. 23,2 1967, there is no longer an Aaa-rated railroad bond series. Number of issues varies over time; figures shown reflect most recent count. NOTE.—Annual yields are averages of monthly or quarterly data. Bonds: Monthly and weekly yields are computed as follows: (1) U.S. Govt.: Averages of daily figures for bonds maturing or callable in 10 years or more; from Treasury Dept. (2) State and local govt.: General obligations 500 only, based on Thurs. figures; from Moody's Investor Service. (3) Corporate: Rates for "New issue" and "Recently offered" Aaa utility bonds are weekly averages compiled by the Board of Governors of the Federal Reserve System. Rates for seasoned issues are averages of daily figures from Moody's Investors Service. Stocks: Standard and Poor's corporate series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and 2 public utility; common stock ratios on the 500 stocks in the price index. Quarterly earnings are seasonally adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share of stock listed on the American Stock Exchange was $10.90. 1 Fees and charges—related to principal mortgage amount—include loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. 2 Series revised beginning Jan. 1973; hence data are not strictly comparable with earlier figures. NOTE.—Annual data are averages of monthly figures. Monthly and weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market yields in table on p. A-34 on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, derived from average yields as computed by Standard and Poor's Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks, derived from component common stock prices. Average daily volume of trading, normally conducted 5 days per week for 5 % hours per day, or 27*4 hours per week. In recent years shorter days and/or weeks have cut total weekly trading to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 3122Vi; 1970—Jan. 2-May 1, 25. NOTE.—Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single-family homes. Data exclude loans for refinancing, reconditioning, or modernization; construction loans to homebuilders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning 1965, not strictly comparable with earlier data. See also the table on Home-Mortgage Yields, p. A-53. OCTOBER 1973 • SECURITY MARKETS A 35 SECURITY PRICES Common stock prices New York Stock Exchange Bond prices (per cent of par) Standard and Poor's index (1941-43=10) Period New York Stock Exchange index (Dec. 31, 1965 = 50) U.S. Govt, (longterm) State and local Corporate AAA Total Industrial Railroad Public utility 196 3 196 4 86.31 84.46 111.3 111.5 96.8 95.1 69.87 81.37 73.39 86.19 37.58 45.46 64.99 69.91 196 5 196 6 196 7 196 8 196 9 83.76 78.63 76.55 72.33 64.49 110.6 102.6 100.5 93.5 79.0 93.9 86.1 76.4 68.5 88.17 85.26 91.93 98.70 97.84 93.48 91.09 99.18 107.49 107.13 46.78 46.34 46.72 48.84 45.95 76.08 68.21 68.10 66.42 62.64 44.16 50.77 55.37 54.67 43.79 51.97 58.00 57.45 48.23 53.51 50.58 46.96 44.77 45.43 44.19 42.80 197 0 197 1 1972 60.52 67.73 68.71 72.3 80.0 84.4 61.6 65.0 65.9 83.22 98.29 109.20 91.29 108.35 121.79 32.13 41.94 44.11 54.48 59.33 56.90 45.72 54.22 60.29 48.03 57.92 65.73 32.14 44.35 50.17 1972—Sep t Oct Nov Dec 68.06 68.09 69.87 68.68 83.4 85.3 87.1 87.1 65.6 65.5 65.9 66.0 109.39 122.33 109.56 122.39 115.05 128.29 117.50 131.08 42.37 41.20 42.41 45.23 55.36 56.66 61.16 61.73 60.05 59.99 62.99 64.26 65.72 65.35 68.29 69.96 1973—Jan Feb Mar Apr May June.... July Aug Sept 65.89 64.09 63.59 64.39 63.43 62.61 60.87 58.71 61.81 86.9 86.1 84.1 85.7 86.1 85.8 83.2 82.2 86.2 66.0 65.5 65.2 64.9 64.7 64.4 63.8 118.42 114.16 12.42 110.27 107.22 104.75 105.83 103.80 105.61 132.55 128.50 126.05 123.56 119.95 117.20 118.65 116.75 118.52 42.87 40.80 39.29 35.88 36.14 34.35 35.22 33.76 35.49 60.01 57.52 55.94 55.34 55.43 54.37 53.31 50.14 52.31 64.38 61.52 60.15 58.67 56.74 55.14 56.12 55.33 56.71 60.17 61.52 61.00 61.70 62.97 83.7 85.1 85.5 86.7 87.4 103.52 116.44 104.77 117.62 103.59 116.19 105.55 118.51 108.35 121.59 33.44 34.70 34.81 35.55 36.74 50.03 51.77 51.25 51.97 53.67 55.17 56.05 55.48 56.75 58.43 American Stock Exchange total index 1 81.8 61.0 61.3 Total Industrial Transportation Utility Finance Volume of trading in stocks (thousands of shares) NYSE A M E X 8.52 9.81 4,573 4,888 1,269 1,570 44.43 49.82 65.85 70.49 12.05 14.67 19.67 27.72 28.73 6,174 7,538 10,143 12,971 11,403 2,120 2,752 4,508 6,353 5,001 37.24 39.53 38.48 54.64 70.38 78.35 22.59 25.22 27.00 10,532 17,429 16,487 3,376 4,234 4,447 46.49 44.95 47.50 48.44 37.82 38.93 41.81 42.28 78.41 79.64 84.57 83.45 25.23 12,314 25.87 14,427 26.18 20,282 26.50 18,146 2.774 3,014 4,286 4.775 70.55 67.67 66.20 64.41 62.22 60.52 61.53 61.09 62.25 45.14 42.34 40.92 40.57 36.66 33.72 34.22 33.48 35.82 41.72 39.95 39.13 38.97 39.01 37.95 37.68 35.40 36.79 81.62 25.35 74.47 25.34 72.32 24.59 69.42 2 4 . 0 2 65.33 23.12 63.52 22.44 68.95 22.89 68.26 23.03 72.23 101.88 18.752 16.753 15,564 13,900 15,329 12,796 14,655 14,761 17,320 4,046 3,690 2,966 2,981 3,043 2,316 2,522 1,796 2,055 60.90 61.56 60.90 62.32 64.07 33.35 34.57 34.45 36.10 37.89 35.22 36.36 36.24 36.60 37.86 68.61 71.32 70.20 72.46 74.76 11,978 14,851 12,356 21,157 20,422 1,650 2,059 2,055 3,379 3,264 Week ending— 1973—Sept. 1 8. 15, 22, 29, 61.1 60.6 61.1 61.4 61.8 22.89 100.83 100.35 101.18 104.95 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Period Contract rate (per cent) Fees & charges (per cent) 1 Maturity (years) Loan / price ratio (per cent) Existing homes PurLoan chase amount price (thous. of (thous. of dollars) dollars) Contract rate (per cent) Fees & charges (per cent) i Maturity (years) Loan/ price ratio (per cent) PurLoan chase amount price (thous. of (thous. of dollars) dollars) 196 5 196 6 196 7 196 8 196 9 5.74 6.14 6.33 6.83 7.66 .49 .71 .81 .89 .91 25.0 24.7 25.2 25.5 25.5 73.9 73.0 73.6 73.9 72.8 25.1 26.6 28.0 30.7 34.1 18.3 19.2 20.4 22.4 24.5 5.87 6.30 6.40 6.90 7.68 .55 .72 .76 .83 .88 21.8 21.7 22.5 22.7 22.7 72.7 72.0 72.7 73.0 71.5 21.6 22.2 24.1 25.6 28.3 15.6 15.9 17.4 18.5 19.9 197 0 197 1 1972 8.27 7.60 7.45 1.03 .87 .88 25.1 26.2 27.2 71.7 74.3 76.8 35.5 36.3 37.3 25.2 26.5 28.1 8.20 7.54 7.38 .92 .77 .81 22.8 24.2 25.7 71.1 73.9 76.0 30.0 31.7 33.4 21.0 23.1 25.0 1972—Aug. Sept. Oct.. Nov. Dec., 7.45 7.43 7.48 7.50 7.51 .86 .86 .88 .90 .92 27.5 27.3 27.2 27.5 27.5 77.5 77.5 77.3 77.4 78.0 36.8 36.6 36.0 37.1 37.9 27.9 27.9 27.4 28.1 29.0 7.39 7.42 7.43 7.44 7.45 .81 .83 .84 .83 .86 26.3 26.2 26.1 26.2 26.4 76.5 76.5 76.3 76.7 76.8 33.7 32.9 33.3 33.7 34.0 25.4 24.8 25.0 25.3 25.7 1973—Jan.. Feb., Mar. Apr. May June July' Aug. 7.52 7.52 7.51 7.53 7.55 7.62 7.69 7.77 1.03 1.15 1.09 1.11 1.05 1.08 1.11 1.08 25.7 26.8 26.6 26.6 25.9 26.3 26.3 26.9 76.6 78.6 78.4 78.2 78.7 78.0 78.1 76.9 35.8 35.9 36.7 36.9 36.6 35.8 37.0 38.6 27.0 27.6 28.3 28.2 27.2 27.5 28.3 29.1 7.53 7.55 7.54 7.55 7.62 7.64 7.70 7.86 .94 1.03 .95 .96 .93 .92 .91 .93 23.2 23.6 23.3 23.9 23.5 23.4 24.1 23.8 75.2 77.5 76.9 77.3 77.5 75.9 75.5 75.8 30.5 29.2 29.3 30.1 30.0 31.7 33.3 32.3 22.6 22.0 22.0 22.8 22.3 23.5 24.6 24.0 For notes see opposite page. A 36 STOCK MARKET CREDIT • OCTOBER 1973 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks Regulated 2 Unregulated 3 By type By source End of period Margin stock Total 1 Convertible bonds Subscription issues Brokers Banks Other security credit at banks 4 Free credit balances at brokers 5 Nonmargin stock credit at banks Brokers Banks Brokers Banks Brokers Banks Margin accts. 9,092 9,091 9,024 9,068 9,045 8,060 8,083 8,081 8,166 1,032 1,008 943 902 865 7,780 7,800 7,800 7,890 7,900 961 937 872 831 798 246 248 250 249 254 54 54 53 52 50 34 35 31 27 26 1,800 1,871 1,875 1,871 1,896 1,298 1,255 1,351 1,396 1,528 384 380 389 390 414 8,840 8,620 8,344 8,165 7,650 7,287 7,975 7,753 7,465 7,293 6,784 6,416 6,243 6,056 865 867 879 872 866 871 7,700 7,480 7,197 7,040 6,540 6,180 6,010 5,830 796 800 813 804 802 800 249 248 244 232 224 215 216 210 48 50 48 49 47 53 26 25 24 21 20 21 17 16 1,940 1,954 1,917 1,969 2,010 1,964 1,484 1,508 1,566 1,482 1,502 413 431 442 389 413 396 379 348 8,180 1 Margin credit includes all credit extended to purchase or carry stocks or related equity instruments and secured at least in part by stock (see Dec. 1970 BULLETIN). Credit extended by brokers is end-of-month data for member firms of the New York Stock Exchange. June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30, 1971. 2 In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System's list of Over the Counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral (see Dec. 1970 BULLETIN). 5 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) End of period Total debt (millions of dollars)! 1972—Aug.. Sept.. Oct... Nov.. Dec.. 1973—Jan. . Feb.. Mar.. Apr.. May. June. July.. Aug.. Equity class (per cent) End of period 80 or more 70-79 60-69 50-59 40-49 Under 40 7,780 7,800 7,800 7,890 7,900 5.9 5.5 5.5 6.0 6.5 8.6 8.0 8.1 9.4 8.6 15.0 13.8 13.6 16.6 17.6 33.6 31.4 30.8 35.1 31.9 22.4 24.9 25.0 20.5 20.3 14.6 16.4 17.0 12.4 15.0 7,700 7,500 7,200 7,040 6,540 6,180 6,010 5,830 5.8 5.3 5.7 4.8 4.9 4.9 5.8 5.0 8.2 7.8 7.5 7.3 7.2 7.1 8.8 8.4 16.8 14.7 15.9 13.4 12.7 13.2 17.7 16.4 27.8 23.9 23.1 19.8 18.7 17.5 22.7 19.6 21.2 22.5 22.7 22.4 21.9 22.1 25.3 24.2 20.0 25.6 25.1 32.4 34.9 35.3 19.7 26.4 i See note 1 to table above. NOTE.—Each customer's equity in his collateral (market value of collateral less net debit balance) is expressed as a percentage of current collateral values. Net credit status Equity class of accounts in debiit status Total balance (millions 60 per cent Less than or more 60 per cent of dollars) 33.4 33.7 33.3 33.6 34.4 1973—Jan Feb July 55.2 53.8 53.4 54.5 52.9 11.4 12.5 13.3 11.8 12.7 5,990 6,000 5,950 6,140 6,100 35.1 35.8 36.3 35.3 35.8 35.8 35.9 35.9 51.7 49.8 47.9 46.9 45.0 43.5 46.7 45.6 13.1 14.4 15.7 18.0 19.1 20.7 17.4 18.5 5,850 5,770 5,790 5,660 5,670 5,750 5,740 5,650 NOTE.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other collateral in the customer's margin account or deposits of cash (usually sales proceeds) occur. OCTOBER 1973 • SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Securities End of period U.S. Govt. Mortgage Corporate and other 1 State and local govt. Cash Other assets Total assets— Total liabilities and genera] reserve accts. Deposits 2 Mortgage loan commitments 3 classified by maturity (in months) Other General liabili- reserve ties 3 or less 196 5 196 6 44,433 47,193 862 1,078 5,485 4,764 320 251 5,170 5,719 1,017 953 944 1,024 58,232 60,982 52,443 55,006 1,124 1,114 50,311 53,286 55,781 57,775 62,069 67,563 1,203 1,407 1,824 2,255 2,808 2,979 4,319 3,834 3,296 3,151 3.334 3,510 219 194 200 197 385 873 8,183 10,180 10,824 12,876 17,674 21,906 993 996 912 1,270 1,389 1,644 1,138 1,256 1,307 1,471 1,711 2,117 66,365 71,152 74,144 78,995 89,369 100,593 60,121 64,507 67,026 71,580 81,440 91,613 1,260 1,372 1.588 1,690 1,810 2,024 4,984 5,273 5,530 5,726 6,118 6,956 1972—July. . . Aug.. . Sept.. . Oct Nov.. . Dec.... 64,853 65,408 65,901 66,373 66,891 67,563 3,642 3,512 3,604 3,482 3,507 2,979 3,392 3,369 3,408 3,462 3,434 3,510 675 786 822 844 871 873 21,209 21,405 21,569 21,513 21,664 21,906 1,300 1,329 1,362 1,304 1,323 1,644 1,963 1,958 1,834 2,011 2,014 2,117 97,034 97,766 98,500 98,990 99,704 100,593 87,838 88,254 89,289 89,677 90,228 91,613 2,533 2,778 2,428 2,510 2,607 2,024 1973—Jan.... Feb.... Mar.. . Apr May... June r .. July r . . 68,021 68,352 68,920 69,426 69,988 70,637 71,219 3,624 4,030 3,970 3,831 4,099 3,959 3,819 3,489 3,419 3,458 3,388 3,376 3,346 3,190 935 986 1,028 1,080 1,076 1,125 1,093 22,190 22,389 22,509 22,598 22,615 22,562 22,683 1,319 1,331 1,576 1,582 1,629 1,775 1,555 2,055 101,632 2,070 102,577 2,058 103,518 2,089 103,994 2,116 104,899 2,273 105,677 2,202 105,761 92,398 92,949 94,095 94,217 94,744 95,706 95.355 2,221 2.540 2,285 2.589 2,904 2,650 3,044 Total 4,665 4,863 196 7 196 8 196 9 197 0 197 1 19724 Over 9 1 Also includes securities of foreign governments and international organizations and nonguaranteed issues of U.S. Govt, agencies. 2 Beginning with data for June 30, 1966, about $1.1 billion in "Deposits accumulated for payment of personal loans" were excluded from "Time deposits" and deducted from "Loans" at all commercial banks. These changes resulted from a change in Federal Reserve regulations. See table (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30. 3 Commitments outstanding of banks in New York State as reported to the Savings Banks Assn. of the State of New York. Data include building loans beginning with Aug. 1967. 2,697 2,010 742 584 619 1,047 1,593 982 1,034 485 322 627 713 6,663 6,734 6,784 6,803 6,870 6,956 1,579 1,572 1,740 1,667 1,624 1,593 956 824 716 718 753 713 7,014 7,088 7,139 7,189 7,251 7,321 7,362 1,569 1,729 1,816 1,904 1,792 1,711 1,626 915 862 886 888 913 1,020 906 811 452 302 463 609 799 1,166 946 688 1,310 1,624 2,523 3,011 2,467 1,931 3,447 4,539 557 549 583 617 631 609 1,629 1,647 1,637 1,660 1,658 1,624 4,721 4,593 4,675 4,662 4,666 4,539 1,541 732 1,480 826 1,355 725 1,395 712 1,406 573 1,378 636 1,367 4,712 4,803 4,882 4,912 4,824 4,683 4,535 4 Balance sheet data beginning Jan. 1972 are reported on a gross-ofvaluation-reserves basis. The data differ somewhat from balance sheet data previously reported by National Assn. of Mutual Savings Banks which were net of valuation reserves. For most items, however, the differences are relatively small. NOTE.—NAMSB data; figures are estimates for all savings banks in the United States and differ somewhat from those shown elsewhere in the BULLETIN; the latter are for call dates and are based on reports filed with U.S. Govt, and State bank supervisory agencies. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Total assets End of period Total United States Business securities State and Foreign 1 local Mortgages Total Bonds Real estate Policy loans Other assets Stocks Statement value: 196 5 196 6 196 7 196 8 158,884 167,022 177,832 188,636 11,679 10,837 10,573 10,509 5,119 4,823 4,683 4,456 3,530 3,114 3,145 3,194 3,030 2,900 2,754 2,859 67,599 69,816 76,070 82,127 58,473 61,061 65,193 68,897 9,126 8,755 10,877 13,230 60,013 64,609 67,516 69,973 4,681 4,883 5,187 5,571 7,678 9,117 10,059 11,306 7,234 7,760 8,427 9,150 Book value: 196 6 196 7 196 8 196 9 197 0 197 1 1972? 167,022 177,361 188,636 197,208 207,254 222,102 239,407 10,864 10,530 10,760 10,914 11,068 11,000 11,080 4,824 4,587 4,456 4,514 4,574 4,455 4,333 3,131 2,993 3,206 3,221 3,306 3,363 3,522 2,909 2,950 3,098 3,179 3,188 3,182 3,406 68,677 73,997 79,653 84,566 88,518 99,805 112,980 61,141 65,015 68,731 70,859 73,098 79,198 86,605 7,536 8,982 10,922 13,707 15,420 20,607 26,375 64,661 67,575 70,044 72,027 74,375 75,496 77,319 4,888 5,188 5,575 5,912 6,320 6,904 7,310 9,911 10,060 11,305 13,825 16.064 17.065 17,998 8,801 11,011 11,299 9,964 10,909 11,832 12,720 229,947 231,586 233,337 234,455 235,972 237,971 239,407 11,134 11,075 11,086 11,125 11,132 11,193 11,080 4,421 4,372 4,389 4,385 4,396 4,459 4,333 3,351 3,356 3,351 3,350 3,347 3,356 3,522 3,362 3,347 3,346 3,390 3,389 3,378 3,406 107,076 108,236 109,728 110,300 111,616 113,066 112,980 83,099 84,539 85,187 85,912 86,874 87,425 86,605 23,977 23,697 24,541 24,388 24,742 25,641 26,375 75,404 75,626 75,723 75,813 75,952 76,207 77,319 7,144 7,185 7,235 7,245 7,229 7,272 7,310 17,522 17.605 17,689 17,773 17,854 17,922 17,998 11,667 11,859 11,876 12,199 12,189 12,311 12,720 241,022 242,069 243,078 242,562 243,589 244,531 11,191 11,138 11,154 11,455 11,434 11,359 4,389 4,371 4,417 4,566 4,538 4,468 3,358 3,319 3,300 3,388 3,384 3,373 3,444 3,448 3,437 3,501 3,512 3,518 114,526 115,386 115,972 115,181 115,897 116,153 88,371 89,247 89,881 89,710 90,314 90,484 26,155 26,139 26,091 25,471 25,583 25,669 77,481 77,510 77,587 77,258 77,400 77,914 7,366 7,434 7,449 7,522 7,545 7,548 18,080 18,166 18,288 18,420 18,533 18,673 12,378 12,435 12,628 12,726 12,780 12,884 1972—June. July Aug Sept Oct Nov Dec 1973—Ja n Feb Mar Apr. May June , , , . . 1 Issues of foreign governments and their subdivisions and bonds of the International Bank for Reconstruction and Development. NOTE.—Institute of Life Insurance estimates for all life insurance companies in the United States. 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." A 38 SAVINGS INSTITUTIONS • OCTOBER 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Liabilities Investment securities 1 Cash 121,805 130,802 140,232 150,331 174,385 9,180 11,116 10,873 13,020 21,076 3,442 2,962 2,438 3,506 194,955 197,881 200,554 203,266 206,387 6 208,132 210,260 213,259 216,250 219,500 222,801 225,490 227,995 End of period Mortgages Other 2 Total assets— Total liabilities Savings capital Net worth 3 Borrowed money 4 Loans Other 7,788 8,010 8,606 9,326 10,842 143,534 152,890 162,149 176,183 206,303 124,493 131,618 135,538 146,404 174,472 9,916 10,691 11,620 12,401 13,657 4,775 5,705 9,728 10,911 9,048 2,257 2,449 2,455 3,078 5,072 2,093 2,427 2,808 3,389 4,054 24,321 24,102 24,648 24,750 24,491 12,125 12,277 12,457 12,689 12,693 231,401 234,260 237,659 240,705 243,571 196,571 199,966 202,012 203,889 207,305 15,432 14.991 15,485 15.992 15,326 7,512 8,080 8,327 8,503 9,847 6,100 6,119 6,086 6,067 6,225 5,786 5,104 5,749 6,254 4,868 6 23,460 24,220 24,019 23,943 24,072 23,362 22,769 21,151 615,660 16,214 17,104 17,605 17,990 18,038 18,416 247,252 250,694 254,382 257,798 261,562 264,201 266,675 267,957 210,589 212,493 216,195 217,026 218,906 222,183 221,958 220,772 15,557 15,925 15,825 16,133 16,505 16,315 16,640 17,014 9,171 9,415 9,958 11,336 11,756 12,766 14,295 15,706 6,076 6,095 6,326 6,548 6,727 6,770 6,702 6,455 5,859 6,766 6,078 6,755 7,668 6,167 7,080 8,010 18,811 1 Investment securities included U.S. Govt, securities only through 1967. Beginning 1968 the total reflects liquid assets and other investment securities. Included are U.S. Govt, obligations, Federal agency securities, State and local govt, securities, time deposits at banks, and miscellaneous securities, except stock of the Federal Home Loan Bank Board. Compensating changes have been made in "Other assets." 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings and fixtures. See also notes 1, 5, and 6. 3 Includes net undistributed income, which is accrued by most, but not all, associations. 4 Consists of advances from FHLBB and other borrowing. 5 Data comparable with those shown for mutual savings banks (on preceding page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. 6 Beginning Jan. 1973, participation certificates guaranteed by the Federal Home Loan Mortgage Corporation, loans and notes insured by the Farmers Home Administration and certain other Governmentinsured mortgage-type investments, previously included in mortgage loans, are included in other assets. The effect of this change was to reduce the mortgage total by about $0.6 billion. Also, GNMA-guaranteed, mortgage-backed securities of the passthrough type, previously included in cash and investment securities are included in other assets. These amounted to about $2.4 billion at the end of 1972. NOTE.—FHLBB data; figures are estimates for all savings and loan assns. in the United States. Data are based on monthly reports of insured assns. and annual reports of noninsured assns. Data for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Liabilities and capital Assets Federal National Mortgage Assn. (secondary market operations) Banks for cooperatives End of period Cash and deposits Advances to members Investments 4,386 5,259 9,289 10,614 7,936 2,598 2,375 1,862 3,864 2,520 127 126 124 105 142 4,060 4,701 8,422 10,183 7,139 1,432 1,383 1,041 2,332 1,789 1,395 1,402 1,478 1,607 1,618 1972—Aug... Sept... Oct... Nov.. Dec... 6,294 6,736 7,045 7,245 7,979 3,319 2,184 2,591 2,850 2,225 118 106 83 107 129 6,531 6,531 6,531 6,971 6,971 1,442 1,444 1,334 1,380 1,548 1973—Jan... Feb... Mar.. Apr... May.. June.. July. . Aug... 7,831 7,944 8,420 9,429 10,155 11,145 12,365 13,511 2,264 2,421 1,938 2,087 2,702 2,516 2,126 2,016 91 106 108 111 95 108 103 111 6,971 7,220 7,220 8,415 9,615 10,215 11,213 12,562 1,306 1,323 1,291 1,143 1,261 1,453 1,183 1,091 1967 1968 1969 1970 1971 Bonds and notes Member deposits Debentures and notes (L) Loans to cooperatives (A) Debentures 5,348 6,872 10,541 15,502 17,791 4,919 6,376 10,511 15,206 17,701 1,724 1,729 1,735 1,741 1,756 19,021 19,295 19,438 19,619 19,791 1,821 1,891 1,943 1,981 1,991 2,008 2,035 2,064 19,980 20,181 20,571 20,791 21,087 21,413 21,772 22,319 Capital stock NOTE.—Data from Federal Home Loan Bank Board, Federal National Mortgage Assn., and Farm Credit Admin. Among omitted balance sheet items are capital accounts of all agencies, except for stock of FHLB's. Bonds, debentures, and notes are valued at par. They include only publicly A/T T-t gage Federal intermediate credit banks Debentures (L) Loans and discounts (A) 1,506 1,577 1,732 2,030 2,076 1,253 1,334 1,473 1,755 1,801 18,194 18,939 18,724 19,041 19,238 2,156 2,233 2,355 2,313 2,298 19,252 19,402 19,985 20,056 20,225 20,364 20,843 21,186 2,876 2,936 2,896 2,859 2,765 2,725 2,811 2,865 Federal land banks Bonds (L) Mortgage loans (A) 3,411 3,654 4,275 4,974 5,669 3,214 3,570 4,116 4,799 5,503 5,609 6,126 6,714 7,186 7,917 4,904 5,399 5,949 6,395 7,063 1,710 1,710 1,837 1,905 1,944 6,255 6,201 6,110 6,048 6,094 6,148 6,063 5,952 5,872 5,804 8,631 8,749 8,857 8,972 9,107 7,659 7,798 8,012 8,012 8,012 1,950 2,188 2,188 2,465 2,370 2,316 2,365 2,310 6,087 6,179 6,414 6,555 6,777 6,958 6,981 7,899 5,891 5,969 6,076 6,314 6,460 6,645 6,745 6,727 9,251 9,387 9,591 9,767 9,953 10,117 10,256 10,441 8,280 8,280 8,280 8,836 8,836 8,836 9,377 9,390 (L) offered securities (excluding, for FHLB's, bonds held within the FHLB System) and are not guaranteed by the U.S. Govt.; for a listing of these securities, see table on opposite page. Loans are gross of valuation reserves and represent cost for F N M A and unpaid principal for other agencies. OCTOBER 1973 • FEDERALLY SPONSORED CREDIT AGENCIES OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, AUGUST 31y 1973 Agency, and date of issue and maturity Coupon rate Amount (millions of dollars) 5.55 8.40 8.40 7.10 6.35 6.45 7.65 600 Federal home loan banks Bonds: 11/27/72-11/27/73 1/26/70 - 1/25/74 6/26/70 - 2/25/74 8/27/71 - 2/25/74 6/25/71 - 5/25/74 2/26/73 - 5/28/74 8/25/69 - 8/25/74 8/25/72 - 8/26/74 8/27/73 - 8/26/74 11/25/69 - 1 1 / 2 5 / 7 4 . . . . 5/25/73 - 11/25/74 1/26/71 - 2 / 2 5 / 7 5 11/27/72-2/25/75 8/25/70 - 5/26/75 7/27/70 - 8/25/75 4/12/73 - 5/25/75 7/25/73 - 8 / 2 5 / 7 5 1 2 / 1 8 / 7 0 - 11/25/75 5/25/73 - 11/25/75 8/27/71 - 2/25/76 8/27/73 - 2/25/76 7/25/73 - 8/25/76 6/25/71 - 5 / 2 5 / 7 7 6/22/73 - 5/22/77 4/12/73 - 8/25/77 2/26/73 - 11/25/77 3/25/70 - 2/25/80 1 0 / 1 5 / 7 0 - 10/15/80 10/27/71 - 11/27/81 4/12/73 - 5/25/83 8/27/73 - 5/25/83 53/g 9% 8.00 7.05 6.10 5% 8.05 7.95 7.15 77/8 6.50 7.05 7K 8% 7.80 6.95 7.20 7.15 6% 7.75 7.80 300 250 300 300 700 176 400 800 221 ,000 250 400 265 300 700 500 350 600 300 300 500 200 600 300 300 350 7.30 200 200 200 9V4 700 6.60 Federal Home Loan Mortgage Corporation Bonds: 8/2/71 - 11/26/73 2/10/72 - 8/26/74 5/11/72 - 2 / 2 5 / 7 7 1 1 / 1 9 / 7 0 - 11/27/95 7/15/71 - 8 / 2 6 / 9 6 5 / 1 1 / 7 2 - 5/26/97 Federal National Mortgage Association— Secondary market operations Discount notes Capital debentures: 9/30/68 - 10/1/73 4/1/70 - 4/1/75 9/30/71 - 10/1/96 1 0 / 2 / 7 2 - 10/1/97 6.70 5.30 6.15 8.60 7.75 7.15 150 200 350 140 150 150 1,638 6.00 8.00 250 4.38 7.40 248 250 8.38 3.58 5.48 5.85 5.92 5.50 5.49 5.74 8.63 250 53 200 Mortgage-backed bonds: 6/1/70 - 6/2/75 3/14/73-1/15/81 3/14/73-1/15/81 6 / 2 1 / 7 3 - 7/1/82 6/21/73 - 7/1/82 3/1/73-8/31/84 3/1/73-10/31/84 3/1/73 - 3/1/86 9/29/70 - 10/1/90 6 72 35 10 21 81 200 Agency, and date of issue and maturity Federal National Mortgage Association—Cont. Debentures: 3/10/70-9/10/73 6/10/71 - 9 / 1 0 / 7 3 12/10/70 - 12/10/73. . . . 8/10/71 - 12/10/73 12/1/71 - 3/11/74 4/10/70 - 3/11/74 8/5/70 - 6/10/74 11/10/71 - 6 / 1 0 / 7 4 . . 9/10/69 - 9 / 1 0 / 7 4 . . 2/10/71 - 9 / 1 0 / 7 4 . . . 5/10/71 - 1 2 / 1 0 / 7 4 . . 9/10/71 - 12/10/74.. 11/10/70 - 3/10/75. 10/12/71 - 3 / 1 0 / 7 5 . 4/12/71 - 6 / 1 0 / 7 5 . . . 10/13/70 - 9/10/75. 3/12/73 - 9 / 1 0 / 7 5 . . . 3/10/72 - 12/10/75. 3/11/71 - 3 / 1 0 / 7 6 . . . 6/12/73 - 3 / 1 0 / 7 6 . . . 6/10/71 - 6 / 1 0 / 7 6 . . . 2/10/72 - 6 / 1 0 / 7 6 . . . 11/10/71 - 9 / 1 0 / 7 6 . . 6/12/72-9/10/76. 7/12/71 - 12/10/76 1 2 / 1 1 / 7 2 - 12/10/76 2/13/62 - 2/10/77 9/11/72-3/10/77 12/10/70 - 6/10/77 5/10/71 - 6 / 1 0 / 7 7 9/10/71 - 9 / 1 2 / 7 7 7/10/73 - 12/12/77 6/12/73 - 6 / 1 2 / 7 8 10/12/71 - 1 2 / 1 1 / 7 8 . . . . 6/12/72-9/10/79 12/10/71 - 1 2 / 1 0 / 7 9 . . . . 2/10/72 - 3/10/80 2/16/73 - 7/31/80 2/16/73 - 7/31/80 1/16/73 - 10/30/80 1 2 / 1 1 / 7 2 - 12/10/80 6/29/72 - 1/29/81 3/12/73 - 3/10/81 4/18/73-4/10/81 3/21/73 - 5/1/81 3/12/73 - 5/1/81 1/21/71 - 6/10/81 9/10/71-9/10/81 6/28/72-5/1/82 2/10/71 - 6/10/82 9 / 1 1 / 7 2 - 9/10/82 3/11/71 - 6/10/83 6/12/73 - 6 / 1 0 / 8 3 11/10/71 - 9 / 1 2 / 8 3 4/12/71-6/11/84 12/10/71 - 12/10/84 3/10/72 - 3/10/92 6/12/72-6/10/92 1 2 / 1 1 / 9 7 - 12/10/97 Coupon rate Amount (millions of dollars) Agency, and date of issue and maturity Banks for cooperatives Debentures: 8.10 6.13 5.75 7.15 5.45 7.75 7.90 5.70 7.85 5.65 6.10 6.45 7.55 6.35 5.25 7.50 6.80 5.70 5.65 7.13 6.70 5.85 6.13 5.85 7.45 6.25 4% 6.30 6.38 6.50 6.88 7.25 7.15 6.75 6.40 6.55 6.88 5.19 3.18 4.96 6.60 6.15 7.05 6.59 4.50 5.77 7.25 7.25 5.84 6.65 6.80 6.75 7.30 6.75 6.25 6.90 7.00 7.05 7.10 300 350 500 500 400 350 400 350 250 300 250 450 300 600 500 350 650 500 500 400 250 450 300 500 300 500 198 500 250 150 300 500 600 300 300 350 250 1 9 5 300 156 350 26 18 2 250 250 58 250 200 200 300 250 200 250 200 200 200 10/1/70 4/2/73 5/1/73 6/4/73 7/2/73 8/1/73 - - 10/1/73. 10/1/73.. . 11/1/73... 12/3/73... 1/2/74... . 2/4/74 7.30 6.95 6.75 6.85 7.55 , 8.70 Federal intermediate credit banks Debentures: 12/4/72 - 9/4/73 1/2/73 - 10/1/73 2/1/73 - 11/1/73 3/1/73 - 12/3/73 4/2/73 - 1/2/74 7/1/71 - 1/2/74 5/1/73 - 2 / 4 / 7 4 6/4/73 - 3/4/74 7/2/73 - 4 / 1 / 7 4 8/1/73 - 5/1/74 1/4/71 - 7/1/74 5/1/72 - 1/2/75 1/3/72-7/1/75 3/1/73 - 1/5/76 7/2/73 - 1/3/77 Federal land banks Bonds: 2/20/63 - 2 / 2 0 / 7 3 - 7 8 . . . 4/20/70 - 10/22/73 10/23/72 - 10/23/73 7/20/72 - 1/21/74 2/20/72 - 2/20/74 10/20/70 - 4/22/74 9/15/72-4/22/74 10/21/71 - 7/27/74 4/20/71 - 10/21/74 2/20/70 - 1/20/75 4/23/73 - 1/20/75 4/20/65 - 4/21/75 7/20/73 - 4 / 2 1 / 7 5 2/15/72 - 7 / 2 1 / 7 5 7/20/71 - 10/20/75 4/20/72 - 1/20/76 2/21/66 - 2/24/76 1/22/73 - 4/20/76 7/20/66 - 7/20/76 4/23/73 - 10/20/76 7/20/73 - 7/20/77 10/27/71 - 1 0 / 2 0 / 7 7 . . . . 5/2/66 - 4/20/78 7/20/72 - 7/20/78 2/20/67 - 1/22/79. 9/15/72-4/23/79 10/23/72 - 10/23/79 1/22/73 - 1/21/80 7/20/73 - 7/21/80 2/23/71 - 4 / 2 0 / 8 1 4/20/72 - 4/20/82 4/23/73 - 4 / 2 0 / 8 2 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page. Coupon rate 5.45 5.70 6.00 6.15 7.00 6.85 6.90 7.00 7% 8.65 5.95 6.05 5.70 6.65 7.10 4H 7.80 5.80 5.55 4i/i 7.30 5.85 5.85 5.30 8M 7.15 4M 7.65 5.70 7.20 614 5.00 6*4 5^ 7.15 7Vi 6.35 5H 6.40 5.00 6.85 6.80 6.70 7}i 6.70 6.90 7.30 A 39 A 40 FEDERAL FINANCE • OCTOBER 1973 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expenditure account Period Budget receipts Net expenditures Fiscal year: 197 0 197 1 1972 197 3 193,743 194,456 188,392 210,318 208,649 232,192 Half year: 1971—July-Dec. 1972—Jan.-June July-Dec. 1973—Jan.-Dec. 93,180 110,608 115,549 106,061 126,131 Month: 1972—Au g Sept Oct Nov Dec 1973—Ja n Feb Mar Apr May June July Aug Borrowings from the public Net lending Budget outlays 1 Budget surplus or deficit (-) 2,131 196,588 - 2 , 8 4 5 1,107 211,425 -23,033 231,876 -23,227 246,603 -14,412 '"18,102 Less: Cash and monetary assets Less: InvestPublic Plus: ments by Govt, Equals: Treadebt Agency accounts Less: Total sury securi- securiSpecial borrow- operatties ties notes 3 ing ing Special Other balance issues 17,198 -1,739 9,386 27,211 - 3 4 7 6,616 29,131 -1,269 6,813 30,881 216 12,029 948 111,554 -18,374 26,001 -1,117 120,319 - 4 , 8 5 0 3,130 -150 118,586 -12,525 22,037 876 128,017 - 1 , 8 8 7 8,844 -660 r 2 r Other means of Other 676 800 1,607 -207 5,397 19,448 19,442 19,275 2,151 710 1,362 2,459 -982 -581 3,586 -979 1,108 6,255 -1,287 -3,691 2,803 4,010 6,239 5,790 523 1,089 654 21,561 -2,114 17,386 1,889 973 389 956 1,503 1,028 8,377 1,525 -5,430 238 1,739 -861 -2,122 r 22,183 14,738 16,748 18,972 20,689 18,471 20,055 21,165 19,721 -2,587 3,056 3,712 -1,493 -5,317 6,000 -4,418 4,301 - 7 5 0 5,051 534 2,639 22 -1,339 24 3,085 380 - 6 5 9 -93 1,104 16 -508 88 42 -343 934 376 2,851 5,298 4,197 21,130 18,067 15,987 25,860 16,584 28,504 18,121 21,291 23,631 20,227 20,806 22,306 20,157 20,892 22,627 22,139 -2,501 18 -9 27 -721 -43 68 9 301 168 119 206 -49 234 -174 325 568 1,519 3,863 3,005 -2,159 -1,970 -2,369 -713 -563 302 408 1,152 1,220 -5,924 4,344 -5,398 -4,105 r 211 -4,012 4,783 -1,786 305 2,795 770 4,770 -4,820 3,768 3,554 -1,543 -3,573 275 7,612 803 -4,486 862 - 8 4 7 2,842 -2,160 financing, net 4 -900 780 584 -56 1,968 3,414 1,258 3,137 -92 37 7 57 -2,148 604 717 -569 -595 99 1,383 -1,507 -83 2,883 1,164 988 -1,141 -1,522 414 -485 -544 -743 151 -2,544 -212 Selected balances Treasury operating balance F.R. Banks Tax and loan accounts Other depositaries 5 Federal securities Total Public debt securities Agency securities Less: Investments of Govt, accounts Special issues Less: Special notes 3 Other Equals: Total held by public 1,005 1,274 2,344 4,038 6,929 7,372 7,934 8,433 111 109 5 139 106 8,045 8,755 10,117 12,576 370,919 398,130 427,260 458,142 12,510 12,163 10,894 11,109 76,124 82,740 89,539 101,738 21,599 22,400 24,023 24,093 825 825 825 825 284,880 304,328 323,770 343,045 2,020 1,856 9,173 8,907 113 310 ,306 ,073 424,131 449,298 11,044 11,770 85,544 95,924 22,922 23,164 825 825 325,884 341,155 1,730 1,395 1,613 1,182 1,856 3,025 8,105 6,051 6,786 8,907 222 259 309 310 310 4,976 9,759 7,973 8,278 11,073 435,439 433.946 439.947 444,247 449,298 11,437 11,459 11,483 11,863 11,770 93,616 92,281 95,365 94,821 95,924 24,002 23,490 23,579 23,506 23,164 825 825 825 825 825 328,433 328,809 331,660 336,958 341,155 2,749 2,073 2,882 4,162 3,242 4,038 2,867 847 8,317 9,401 9,744 9,683 4,679 8,433 4,203 2,217 310 310 309 311 311 106 108 8 11,376 11,784 12,935 14,156 8,232 12,576 7,178 3,072 450,068 454,838 458,606 457,063 457,338 458,142 459,003 461,845 11,787 11,779 11,806 11,084 11,041 11,109 11,118 11,419 95.024 95,804 96,413 96,356 98,324 101,738 102,996 106,133 23,332 23,451 23,632 23,583 23,817 24,093 23,968 24,516 825 825 825 825 825 825 825 825 342,674 346,537 349,542 347,383 345,414 343,045 342,332 341,769 1 Equals net expenditures plus net lending. 2 The decrease in Federal securities resulting from conversion to private ownership of Govt.-sponsored corporations (totaling $9,853 million) is not included here. In the bottom panel, however, these conversions decrease the outstanding amounts of Federal securities held by the public mainly by reductions in agency securities. The Federal National Mortgage Association (FNMA) was converted to private owership in Sept. 1968 and the Federal intermediate credit banks (FICB) and banks for cooperatives in Dec. 1968. 3 Represents non-interest-bearing public debt securities issued to the International Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of credit. 4 Includes accrued interest payable on public debt securities, deposit funds, miscellaneous liability and asset accounts, and seigniorage. 5 As of Jan. 3, 1972, the Treasury operating balance was redefined to exclude the gold balance and to include previously excluded "Other depositaries" (deposits in certain commercial depositaries that have been converted from a time to a demand basis to permit greater flexibility in Treasury cash management). 6 Includes debt of Federal home loan banks, Federal land banks, R.F.K. Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks for cooperatives (both beginning Dec. 1968). NOTE.—Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. OCTOBER 1973 • FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Period Total Nonwithheld Withheld Refunds 13,240 14,522 14,143 21,867 Social insurance taxes and contributions Corporation income taxes Individual income taxes Gross Rerefunds ceipts Net total Employment taxes and contributions i Payroll taxes Selfempl. Estate Misc. and regift ceipts' Excise Custaxes toms Un- Other empl. net reinsur. ceipts 2 Net total Fiscal year: 197 0 197 1 197 2 1973* 193,743 188,392 208,649 232,192 77,416 76,490 83,200 98,097 26,236 24,262 25,679 27,031 Half year: 1971—July-Dec.. 1972—Jan.-June. July-Dec.. 1973—Jan.-June* 93,180 115,469 106,061 126,131 38,449 44,751 46,058 52,038 155 1,518 1,673 22,989 8,961 1,838 2,395 1,718 574 43,465 13,262 1,448 19,643 5,589 20,090 13,569 51,272 21,664 1,312 24,445 1,877 4,736 1,764 30,925 6,516 1,449 3,041 1,915 165 2,437 1,773 26,867 8,244 1,551 2,333 2,056 5,784 688 51,154 15,315 1,459 22,493 21,247 21,179 52,106 23,674 1,434 30,006 2,206 3,627 1,839 37,679 8,028 1,625 2,566 1,888 Month: 1972—Au g Sept Oct Nov Dec '18,102 '8,168 21,130 18,067 15,987 25,860 16,584 28,504 18,121 21,291 1973—Jan Feb Mar Apr May June* July Aug 7,305 7,187 8,425 7,915 8,254 4,671 768 8,404 8,748 1,494 8,648 9,124 8,813 1,444 9,171 3,747 681 8,487 451 9,085 35,037 30,320 34,926 38,989 2,208 3,535 2,760 2,893 37,190 1,942 3,465 2,700 39,751 1,948 3,673 3,206 44,088 2,032 4,357 3,437 52,499 2,371 6,064 3,612 855 157 '8,373 95 11,005 5,289 61 7,595 1,287 853 69 8,613 61 8,206 5,772 362 3,794 469 257 353 22,183 14,738 16,748 18,972 90,412 86,230 94,737 103,261 190 324 323 294 140 5,367 3,529 3,225 4,044 2,601 12,897 1,539 865 8,067 3,409 5,208 11,587 5,915 3,825 1,219 12,321 8,927 8,814 1,552 904 9,279 158 193 342 258 296 188 202 209 3,833 5,900 4,771 4,297 6,662 4,542 4,608 7,087 27 1,104 6,833 6,185 6,433 597 354 257 1,175 63 210 637 92 307 302 31 287 277 174 139 167 684 186 63 ,316 444 253 2,156 145 106 382 1,357 45,298 48,578 53,914 64,546 r 340 278 320 302 308 291 346 333 145 15 15,705 16,614 15,477 16,272 2,430 3,644 2,591 3,735 3,287 5,436 3,175 4,898 6,850 1,351 4,038 1,327 3,759 1,387 4,969 1,452 2,975 1,286 278 237 4,486 7,029 5,340 6,359 9,380 5,085 5,336 8,778 3,424 3,858 3,633 3,944 284 234 423 316 409 487 364 '163 295 343 383 276 289 255 278 262 280 261 276 303 396 568 489 330 466 317 398 494 244 289 360 348 264 384 409 308 281 1,437 1 ,186 1,244 1,318 1,446 1,397 1,538 1,434 Budget outlays Period Total National defense Intl. affairs Space research Agriculture Natural resources Commerce and transp. Com. mun. develop. and housing EducaHealth tion and and manwelfare power Veterans Interest Fiscal year: 197 1 197 2 197 3 19745 211,425 77,661 231,876 78,336 246,603 76,055 268,665 81,074 3,095 '3,786 3,185 3,811 3,381 3,422 3,316 3,135 5,096 '7,061 6,181 5,572 Half year: 1971—July-Dec... 1972—Jan.-June.. July-Dec... 1973—Jan.-June*. 111,557 120,319 118,586 128,017 35,755 42,583 35,350 40,705 1,752 '2,034 1,640 1,545 1,777 1,645 1,676 1,640 5,999 1,062 4,616 1,565 1,952 1,807 329 282 6,030 '5,167 6,200 6,193 2,181 2,035 2,637 1,530 20,679 18,471 20,055 21,165 19,721 '6,016 5,397 6,305 6,501 6,135 300 198 259 350 221 289 273 271 272 284 1,127 102 806 329 -146 '534 321 -16 353 -40 '1,323 1,173 1,056 982 829 658 408 244 384 414 '906 852 800 851 960 6,779 6,970 7,688 7,851 7,710 858 832 896 1,279 989 '1,726 1,899 1,559 1,919 1,809 23,630 20,227 20,806 22,306 20,157 20,891 22,607 22,139 6,633 6,265 6,963 6,417 6,401 8,043 4,878 6,772 82 280 323 237 136 489 308 327 271 241 301 265 255 306 278 262 994 - 1 , 0 5 3 230 431 310 -77 324 368 298 -155 173 3 942 2,011 573 440 1,546 567 1,072 793 907 1,307 2,104 1,090 483 368 270 243 -148 314 911 779 808 904 786 788 1,066 1,336 777 954 8,130 7,907 7,565 8,058 8,124 8,199 7,792 7,935 1,157 1,046 1,064 1,114 1,017 866 1,099 1,054 1,777 2,002 2,097 2,120 2,165 2,016 2,184 2,159 Month: 1972—Au g Sept Oct Nov Dec 1973—Ja n Feb Mar Apr May June July Aug r 2,716 11,310 '3,759 '11,197 611 12,393 3,663 11,580 1 Old-age, disability, and hospital insurance (including premiums for uninsured effective July 1, 1973, as provided for in Public Law 92-603), and Railroad Retirement accounts. 2 Supplementary medical insurance premiums (including premiums for disabled effective July 1, 1973, as provided for in Public Law 92-603), and Federal employee retirement contributions. 3 Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. 4 Consists of Government contributions for employee retirement and of interest received by trust funds. 9,776 19,608 3,357 8,226 70,607 '4,216 '10,198 '81,536 '10,747 '20,584 4,167 10,821 91,194 12,004 22,796 4,931 10,110 103,709 11,732 24,672 4,355 38,131 '5,843 '43,405 5,133 43,212 5,688 47,982 5,003 10,050 5 , 7 4 4 '10,534 5,740 10,604 6,264 12,192 General govt. 3,970 '4,889 5,618 6,025 General revenue sharing Intragovt. transactions 4 -7,376 -7,858 6,636 - 8 , 3 7 3 6,035 - 9 , 1 3 1 -3,822 2,392 -4,036 '2,497 2,870 62,617 - 4 , 0 3 9 4,019 2,748 -409 573 322 -276 463 -276 -353 448 415 6 2 , 6 1 7 - 2 , 4 7 4 586 374 462 409 466 451 563 466 2,514 9 1,493 3 1,495 -3 -297 -397 -329 -324 -377 -2,611 -850 -670 5 Estimates presented in the Jan. 1974 Budget Document. Breakdowns do not add to totals because special allowances for contingencies, and Federal pay increase (excluding Department of Defense), totaling $1,750 million for fiscal 1974, are not included. 6 Outlays of $6,786 million in fiscal 1973 contain retroactive payments of $2,600 million for fiscal 1972. NOTE.—Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. A 42 U.S. GOVERNMENT SECURITIES • OCTOBER 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period Total gross public debt 1 Marketable Total Total Convertible bonds Nonmarketable Foreign issues 4 Certificates Notes 30.0 Bills 6.0 10.1 33.6 119.5 50.2 48.3 61.4 76.5 85.4 104.2 99.2 95.2 85.3 69.9 2.8 2.7 2.6 2.5 2.4 52.9 52.3 54.9 56.7 56.9 Savings bonds & notes 2.4 1.5 3.1 4.3 3.8 Bonds 2 Total 3 1941—Dec. 1946—Dec. 57.9 259.1 50.5 233.1 41.6 176.6 2.0 17.0 1965—Dec. 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 320.9 329.3 344.7 358.0 368.2 270.3 273.0 284.0 296.0 295.2 214.6 218.0 226.5 236.8 235.9 60.2 64.7 69.9 75.0 80.6 1970—Dec. 1971—Dec. 389.2 424.1 309.1 336.7 247.7 262.0 87.9 97.5 101.2 114.0 58.6 50.6 2.4 2.3 59.1 72.3 5.7 16.8 1972—Sept. Oct.. Nov. Dec. 433.9 439.9 444.2 449.3 339.8 342.7 347.6 351.4 257.7 260.9 265.6 269.5 96.4 97.5 100.7 103.9 115.7 117.7 119.4 121.5 45.7 45.6 45.5 44.1 2.3 2.3 2.3 2.3 79.8 79.6 79.6 79.5 21.7 21.2 21.0 20.6 1973—Jan.. Feb. Mar. Apr. May June July. Aug. Sept. 450.1 454.8 458.6 457.1 457.3 458.1 459.0 461.8 461.4 353.2 357.1 360.4 358.9 357.1 354.6 354.2 353.8 354.1 271.1 269.9 269.8 267.8 265.9 263.0 262.7 262.4 262.4 104.9 105.0 105.0 103.2 103.0 100.1 99.9 101.8 99.8 121.5 120.2 120.2 44.7 44.6 44.6 44.5 45.1 45.1 45.0 42.0 41.9 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 79.7 84.9 88.3 88.7 88.9 89.4 89.2 89.1 89.5 20.5 25.4 28.3 28.5 28.3 28.5 28.2 27.9 28.2 5.9 120.2 117.8 117.8 117.8 118.7 120.7 1 Includes non-interest-bearing debt (of which $619 million on Sept. 30,2 1973, was not subject to statutory debt limitation). Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, and Rural Electrification Administration bonds; before 1954, Armed Forces leave bonds; before 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. 8.9 56.5 4 Nonmarketable certificates of indebtedness, notes, and bonds in the Treasury foreign series and foreign currency series issues. 5 Held only by U.S. Govt, agencies and trust funds and the Federal home loan banks. NOTE.—Based on Daily Statement of U.S. Treasury. See also second paragraph in NOTE to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by private investors Held by— Total gross public debt U.S. Govt, agencies and trust funds F.R. Banks 41.9 259.1 6.1 27.4 2.5 23.4 320.9 329.3 344.7 358.0 59.7 65.9 73.1 76.6 368.2 389.2 424.1 Individuals Commercial banks Mutual savings banks Insurance companies Other corporations State and local govts. 33.4 208.3 12.7 74.5 2.7 11.8 5.7 24.9 2.0 15.3 .4 6.3 1.9 44.2 7.5 20.0 .2 2.1 .3 9.3 40.8 44.3 49.1 52.9 220.5 219.2 222.4 228.5 60.7 57.4 63.8 66.0 5.3 4.6 4.1 3.6 10.3 9.5 8.6 8.0 15.8 14.9 12.2 14.2 22.9 24.3 24.1 24.4 49.7 50.3 51.2 51.9 22.4 24.3 22.8 23.9 16.7 14.5 15.8 14.3 16.7 19.4 19.9 22.4 89.0 97.1 106.0 57.2 62.1 70.2 222.0 229.9 247.9 56.8 62.7 65.3 2.9 2.8 2.7 7.1 7.0 6.6 11.7 9.4 12.4 25.9 25.2 25.0 51.8 52.1 54.4 29.6 29.8 19.6 11.2 20.6 46.9 25.0 20.4 15.0 433.9 439.9 444.2 449.3 113.5 116.7 116.1 116.9 69.7 70.1 69.5 69.9 250.7 253.1 258.6 262.5 60.8 61.0 63.5 67.0 2.8 2.7 2.7 2.6 6.1 5.9 6.1 6.0 8.9 10.4 12.0 11.7 27.2 28.0 27.9 28.3 56.8 57.1 57.4 57.7 17.2 17.0 17.1 17.0 55.3 55.8 56.0 55.3 15.7 15.2 16.1 17.0 450.1 454.8 458.6 457.1 457.3 458.1 459.0 461.8 116.2 117.1 117.9 117.9 120.1 123.4 125.0 128.7 72.0 72.6 74.3 75.5 74.1 75.0 77.1 76.1 261.8 265.1 266.4 263.7 263.1 259.7 256.9 257.1 66.0 62.4 61.6 60.1 57.9 57.9 55.5 54.1 2.6 2.6 2.5 2.5 2.4 2.4 2.2 2.1 6.1 5.8 5.9 5.7 5.7 5.7 '5.8 5.7 12.3 12.7 13.0 12.5 13.3 12.0 r 12.8 14.0 29.5 29.0 28.9 28.7 28.1 28.3 27.9 27.2 58.0 58.3 58.6 58.9 59.2 59.5 59.7 59.8 16.8 16.6 16.6 16.5 16.4 16.4 16.5 16.8 54.2 61.1 63.1 61.7 '61.1 60.2 59.7 59.2 16.5 16.7 16.3 17.2 '18.9 17.4 '16.7 18.2 Total 1 Consists of investments of foreign and international accounts in the United States. 2 Consists of savings and loan assns., nonprofit institutions, corporate pension trust funds, and dealers and brokers. Also included are certain Govt, deposit accounts and Govt.-sponsored agencies. NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and trust funds; Treasury estimates for other groups. Savings Other bonds securities Foreign and international 1 Other misc. investors 2 The debt and ownership concepts were altered beginning with the Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed securities and (2) remove from U.S. Govt, agencies and trust funds and add to other miscellaneous investors the holdings of certain Govt.-sponsored but privately owned agencies and certain Govt, deposit accounts. OCTOBER 1973 • U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 years 5-10 years 10-20 years Over 20 years 35,500 21,636 26,552 22,742 27,292 82,318 93,648 88,564 88,223 80,594 22,554 29,321 29,143 31,108 31,105 8,556 9,530 15,301 14,456 15,346 10,863 10,397 6,079 6,318 6,288 708 605 674 415 483 2,297 775 935 1,288 1,387 6,075 7,614 6,418 7,278 7,101 3,877 4,676 5,487 5,468 5,513 1,748 2,319 4,317 4,343 4,900 2,387 2,456 1,530 1,630 1,655 36,338 36,032 37,750 38,501 42,504 25,965 31,033 29,745 35,483 34,829 10,373 4,999 8,005 3,018 7,675 19,089 25,299 24,497 27,595 22,449 6,046 7,702 6,109 9,374 9,384 229 584 1,414 1,419 1,564 440 601 136 208 192 168,479 173,376 180,243 165,188 165,273 84,080 81,729 91,063 82,398 84,698 61,250 65,867 73,451 63,962 66,468 22,830 15,862 17,612 18,436 18,230 57,154 60,735 57,649 53,350 51,044 12,631 16,943 17,547 16,266 16,208 6,579 6,627 9,570 8,694 8,882 8,036 7,340 4,413 4,480 4,441 50,917 51,363 52,440 43,101 42,045 19,208 14,920 18,077 12,470 12,875 10,314 8,287 10,289 4,953 5,142 8,894 6,633 7,788 7,517 7,733 26,609 28,823 27,765 24,840 23,410 4,474 6,847 5,654 4,716 4,672 367 555 864 817 833 260 217 80 259 254 Mutual savings banks: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 2,745 2,742 2,609 2,236 2,105 525 416 590 418 454 171 235 309 174 148 354 181 281 244 306 1,168 1,221 1,152 1,028 861 339 499 469 371 363 329 281 274 270 284 385 326 124 150 145 Insurance companies: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 6,066 5,679 5,220 5,034 4,907 893 720 799 836 731 456 325 448 324 272 437 395 351 512 459 1,723 1,499 1,190 1,030 1,005 849 993 976 1.267 1.268 1,369 1,366 1,593 1,326 1,340 1,231 Nonfinancial corporations: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 3,057 6,021 4,948 5,212 5,745 1,547 4,191 3,604 3,536 4,078 1,194 3,280 1,198 1,388 1,822 353 911 2,406 2,148 2,256 1,260 1,492 1,198 1,509 1,500 242 301 121 103 92 2 16 25 52 62 6 20 Savings and loan 1970—Dec. 1971—Dec. 1972—Dec. 1973—July Aug. 3,263 3,002 2,373 2,\567 2,457 583 629 820 608 607 220 343 498 223 185 363 286 322 385 422 1,899 1,449 1,140 1,138 1,025 281 587 605 529 538 243 162 226 214 211 258 175 81 78 77 11,204 9,823 10,904 10,114 9,309 5,184 4,592 6,159 5,748 5,328 3,803 3,832 5,203 4,601 4,456 1,381 760 956 1,147 872 2,458 2,268 2,033 2,003 1,862 774 783 816 922 849 1,191 918 1,298 1,065 987 1,598 1,263 598 376 283 91,227 94,746 101,249 96,924 98,705 56,140 56,261 61,014 58,782 60,625 45,092 49,565 55,506 52,299 54,443 11,048 6,696 5,508 6,483 6,182 22,037 23,983 23,171 21,802 21,381 5,672 6,933 8,906 8,358 8,426 3,078 3,329 5,290 4,950 5,165 4,298 4,237 2,868 3,029 3,107 Type of holder and date Total Total Bills 247,713 262,038 269,509 262,708 262,405 123,423 119,141 130,422 122,602 129,072 87,923 97,505 103,870 99,860 101,780 U.S. Govt, agencies and trust funds: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 17,092 18,444 19,360 20,422 21,039 3,005 1,380 1,609 1,703 1,870 Federal Reserve Banks: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 62,142 70,218 69,906 77,098 76,093 All holders: 1970—Dec. 1971—Dec. 1972—Dec. 1973—July Aug. 31 31 31 31 31 Held by private investors: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 Commercial banks: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 associations: 31 31 31 31 31 State and local governments: 1970—Dec. 31 1971—Dec. 31 1972—Dec. 31 1973—July 31 Aug. 31 All others: 1970—Dec. 1971—Dec. 1972—Dec. 1973—July Aug. 31 31 31 31 31 NOTE.—Direct public issues only. Based on Treasury Survey of Ownership. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, but data for other groups include only holdings of those institutions that report. The following figures show, for each category, the number and proportion reporting: (1) 5,614 commercial banks, 479 mutual savings Other 1,102 661 575 564 13 11 banks, and 739 insurance companies combined, each about 90 per cent; (2) 464 nonfinancial corporations and 486 savings and loan assns., each about 50 per cent; and (3) 504 State and local govts., about 40 per cent. "All others," a residual, includes holdings of all those not reporting in the Treasury Survey, including investor groups not listed separately. A 44 U.S. GOVERNMENT SECURITIES • OCTOBER 1973 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer Period Total Within 1 year 1-5 years 5-10 years U.S. Govt. U.S. Govt. securities securities dealers brokers Over 10 years Commercial banks All other 1 U.S. Govt. agency securities 1972—Aug Sept Oct Nov Dec 2,658 2,695 3,047 3,397 3,184 1,953 2,225 2,473 2,397 2,640 377 231 350 709 361 191 143 126 168 118 137 97 99 123 65 587 635 837 835 757 411 504 420 498 352 911 845 988 1,228 1,215 749 710 802 837 860 443 482 561 731 472 1973—Jan Feb Mar Apr May June July Aug 3,158 4,155 3,077 3,185 3.187 2; 969 2,993 3,366 2,445 2,975 2,311 2,535 2,390 2,335 2,330 2,403 443 721 508 440 322 289 367 706 148 370 201 165 323 228 226 172 122 89 57 46 153 118 72 85 793 888 713 709 661 593 581 566 470 808 585 636 543 622 632 874 1,113 1,360 987 1,075 1,057 975 982 1,044 781 1,099 792 766 927 778 798 881 463 645 664 714 687 732 700 771 Week ending— 1973—Aug. 1 8 15 22 29 3,388 3,073 3,671 3,298 3,566 2,318 1,978 2,829 2,453 2,557 661 729 634 601 810 277 208 148 178 149 132 158 61 67 50 587 521 695 452 587 768 826 760 964 1,031 1,085 950 1,128 925 1,150 948 777 1,088 957 797 570 476 951 862 610 Sept. 5 12 19 26 3,128 3,188 3,389 5,105 2.459 2,407 2.665 3,977 556 625 541 786 89 106 118 260 25 51 66 82 492 532 563 730 721 779 898 1.976 955 982 1,097 1,307 962 895 831 1,092 1,072 877 986 1,333 NOTE.—The transactions data combine market purchases and sales of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. They do not include allotments of, and exchanges for, new U.S. Govt, securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), or similar contracts. Averages of daily figures based on the number of trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) 1 Since Jan. 1972 has included transactions of dealers and brokers in securities other than U.S. Govt. U.S. Government securities, by maturity All Within 1 maturiyear ties 1-5 years 5-10 years Commercial bai<ks Period years U.S. Govt, agency securities Over 10 All sources New York City Elsewhere Corporations 1 3,905 4,386 3,333 4,522 4,973 3,370 4,374 3,452 4,113 4,903 41 -83 -29 335 73 130 -58 -132 8 -41 363 153 41 66 37 404 408 543 834 556 1972—Aug.. Sept.. Oct... Nov.. Dec.. 4,021 4,379 3,055 4,198 4,848 1,356 1,633 1,227 1,538 1,695 580 599 406 617 808 927 705 490 709 944 4,744 3,394 2,702 2,795 2,626 2,976 1,901 1,788 4,959 3,365 3,130 3,105 2,596 -259 97 39 2,062 1,977 -53 -9 -274 -159 -324 -165 -250 -94 -143 -143 179 91 -43 -107 -9 175 232 131 12 281 202 180 274 356 744 511 273 1973—Jan.., Feb.. Mar.. Apr.. May. June. July. . Aug.. 4,520 3,415 2,799 3,032 2,667 3,769 2,826 2,318 1,346 1,063 903 935 674 1,242 725 829 794 455 292 513 452 690 544 327 932 490 281 311 252 431 510 386 2,595 2,034 2,017 1,772 2,636 2,120 2,129 1,937 -234 -244 -215 -237 23 28 -56 -87 171 131 158 158 620 686 676 364 3,423 3,177 2,937 2,547 875 803 749 704 743 705 722 428 481 545 556 509 1,408 1,065 2,055 1,600 2,346 1,716 1,333 2,402 2,020 2,272 -261 -200 -102 41 34 204 135 2,130 1,858 2,337 2,600 2,395 646 634 951 853 858 217 226 235 387 400 388 339 424 429 362 2,818 -255 -331 180 -1 -92 -102 -117 -1 13 10 180 249 408 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract, unless the contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more clearly represent investments by the holders of the securities rather than dealer trading positions. Average of daily figures based on number of trading days in the period. Week ending— 1973—July 4. 11 . 18. 25. Aug. 1 . 8. 15. 22. 29. i All business corporations, except commercial banks and insurance companies. NOTE.—Averages of daily figures based on the number of calendar days in the period. Both bank and nonbank dealers are included. See also NOTE to the table on the left. OCTOBER 1973 • U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, SEPTEMBER 30, 1973 (In millions of dollars) Amount Issue and coupon rate Treasury bills—Cont. Mar. 7, 1 9 7 4 . . . . 4,301 Mar. 12, 1974 4,301 Mar. 14, 1 9 7 4 . . . . 4,301 Mar. 21, 1 9 7 4 . . . . 1,802 Mar. 28, 1 9 7 4 . . . . 4,301 Apr. 9, 1 9 7 4 . . . . 4,301 May 7, 1 9 7 4 . . . . 4,303 June 4,1974 4,193 July 2,1974 1,802 Aug. 27, 1 9 7 4 . . . . 4.202 Sept. 24, 1 9 7 4 . . . . 4,205 4,210 4,192 1,800 4.203 4,203 1.701 1.702 1,804 Treasury notes Oct. 1, 1973.., . . . 1 lA 1.701 Feb. 15, 1.702 ...734 Apr. 1, 1,701 May 15, 1,802 ...714 Aug. 15, 1974... ...55/ 8 1,801 Sept. 30, 1974.., . . . 6 1,807 Oct. 1, 1,802 ...534 1,800 Nov. 15, Dec. 31, 1974.. • ••57/8 Treasury bills Oct. 4, 1 9 7 3 . . . . Oct. 11, 1 9 7 3 . . . . Oct. 18, 1 9 7 3 . . . . Oct. 23, 1 9 7 3 . . . . Oct. 25, 1 9 7 3 . . . . Nov. 1, 1 9 7 3 . . . . Nov. 8, 1 9 7 3 . . . . Nov. 15, 1 9 7 3 . . . . Nov. 20, 1 9 7 3 . . . . Nov. 23, 1 9 7 3 . . . . Nov. 29, 1 9 7 3 . . . . Dec. 6, 1 9 7 3 . . . . Dec. 13, 1 9 7 3 . . . . Dec. 18, 1 9 7 3 . . . . Dec. 20, 1 9 7 3 . . . . Dec. 27, 1 9 7 3 . . . . Jan. 3,1974 Jan. 10,1974 Jan. 15, 1 9 7 4 . . . . Jan. 1 7 , 1 9 7 4 . . . . Jan. 24, 1974 Jan. 31, 1 9 7 4 . . . . Feb. 7, 1 9 7 4 . . . . Feb. 12, 1 9 7 4 . . . . Feb. 14, 1 9 7 4 . . . . Feb. 21, 1 9 7 4 . . . . Feb. 28, 1974 Issue and coupon rate Amount Issue and coupon rate 1,809 1,790 1,802 1,803 1,802 1,802 1,800 1,801 1,802 1,805 1,802 30 2,960 34 4,334 10,284 2,060 42 5,442 2,102 Treasury notes—Cont. Feb. 15, 1975 5y4 Feb. 15, 1975 5% Apr. 1, 1975 1 Vi May 15, 1975 5% May 15, 1975 6 Aug. 15, 1975 57/g Sept. 30, 1975 83/g Oct. 1, 1975 UA Nov. 15, 1975 7 Feb. 15, 1976 6*4 Feb. 15, 1976 5% Apr. 1, 1976 \Vi May 15, 1976 5V4 May 15, 1976 6% Aug. 15, 1976 7Vi Aug. 15, 1976 6l/i Oct. 1, 1976 VA Nov. 15, 1976 6V4 Feb. 15, 1977 8 Apr. 1, 1977 Aug. 15, 1977 7V4 Oct. 1, 1977 iy 2 Feb. 15, 1978 6V4 Apr. 1, 1978 1 y2 Nov. 15, 1978 6 Aug. 15, 1979 6V4 Nov. 15, 1979 65/ 8 May 15, 1980 6% Amount 4,015 1,222 8 1,776 6,760 7,679 2,043 30 3,115 3,739 4,945 27 2,802 2,697 4,194 3,883 Issue and coupon rate Treasury bonds Nov. 15, 1973 4y 8 Feb. 15, 1974 4i/g May 15, 1974 4y 4 Nov. 15, 1974 37/g May 15, 1975-85. .4*4 June 15, 1978-83.. 31/4 Feb. 15, 1980 4 Nov. 15, 1980 3i/£ Aug. 15, 1981 7 Feb. 15, 1982 6% Aug. 15, 1984 63/g May 15, 1985 3% Nov. 15, 1986 6i/g Aug. 15, 1987-92..414 Feb. 15, 1988-93.. 4 May 15, 1989-94. .4 i/s Feb. 15, 1990 3V£ Feb. 15, 1993 6y 4 Aug. 15, 1993 7Vi Feb. 15, 1995 3 May 15, 1993-98.. 7 Nov. 15, 1998 3% 4,325 5,163 5 4,919 17 8,389 15 8,207 Convertible bonds 4,559 Investment Series B 1,604 Apr. 1, 1975-80.. 234 7,265 Amount 4,336 2,466 2,849 1,214 1,203 1,486 2,576 1,897 807 2,702 2,353 965 1,216 3,712 234 1,479 4,081 627 926 883 692 3,191 2,275 NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) Issues for new capital All issues (new capital and refunding) Total 1964 196 5 196 6 196 7 196 8 1969 197 0 197 1 Type of issuer Type of issue Period General obligations Revenue 10,847 6,417 11,329 7,177 11,405 6,804 14,766 8,985 16,596 9,269 11,881 7,725 18,164 11,850 24,962 15,220 3,585 3,517 3,955 5,013 6,517 3,556 6,082 8,681 1972—July. . Aug.. Sept.. Oct... Nov.. Dec... 1,805 1,966 1,726 2,200 1,862 1,797 1,322 820 663 1,662 1,147 872 481 1,138 803 533 711 653 1973—Jan... Feb... Mar.. Apr.. May. June . July.. 1,974 1,499 2,451 1,149 768 1,227 866 820 984 1,448 822 731 916 944 1,093 823 503 1,818 1,921 2,072 1,958 HAAl 637 464 325 477 528 402 131 1,000 257 '268 303 261 U.S. Govt, loans 208 170 312 334 282 197 103 62 State 1,628 2,401 2,590 2,842 2,774 3,359 4,174 5,999 Special district Other2 and stat. auth. Total Edu- Roads and cation bridges Utilities 4 Hous- Veter- Other ans* puring 5 aid poses 3,812 5,407 10,069 10,201 3,784 5,144 11,538 10,471 4,110 4,695 11,303 4,810 7,115 14,643 5,946 7,884 16,489 3,596 4,926 11,838 5,595 8,399 18,110 8,714 10,246 24,495 3,392 3,619 3,738 4,473 4,820 3,252 5,062 5,278 688 900 1,476 1,254 1,526 1,432 1,532 2,642 2,437 1,965 1,880 2,404 2,833 1,734 3,525 5,214 727 626 533 645 787 543 466 2,068 120 2,838 50 3,311 3,667 5,867 6,523 4,884 7,526 9,293 647 468 298 487 425 147 467 897 1,016 689 572 754 690 600 414 1,025 866 895 1,796 1,931 1,609 2,147 1,762 1,507 327 444 238 444 312 351 121 111 107 162 215 21 223 429 590 409 365 204 154 162 270 52 56 332 971 784 404 1,082 814 599 602 47 613 159 291 189 516 454 561 914 732 926 1,054 319 919 891 924 925 703 828 1,121 1,845 1,398 2,194 1,752 1,906 2,064 1,937 369 365 373 305 299 533 390 215 63 153 12 232 101 230 418 406 497 448 428 603 353 117 10 347 88 222 334 3 727 553 823 900 723 494 961 1 Only bonds sold pursuant to 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser and payment to issuer, which occurs after date of sale. 4 Water, sewer, and other utilities. Use of proceeds Total amount delivered 3 5 Includes urban redevelopment loans. NOTE.—The figures in the first column differ from those shown on the following page, which are based on Bond Buyer data. The principal difference is in the treatment of U.S. Govt, loans. Investment Bankers Assn. data; par amounts of long-term issues based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. A 46 SECURITY ISSUES • OCTOBER 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues i Noncorporate Corporate Period Total U.S. Govt. 2 U.S. Govt, agency3 State and local (U.S.)4 Bonds Other 5 Stock Total Total Publicly offered Privately placed Preferred Common 196 4 196 5 196 6 37,122 40,108 45,015 10,656 9,348 8,231 1,205 2,731 6,806 10,544 11,148 11,089 760 889 815 13,957 15,992 18,074 10,865 13,720 15,561 3,623 5,570 8,018 7,243 8,150 7,542 412 725 574 2,679 1,547 1,939 196 7 196 8 1969 1970 197 1 68,514 65,562 52,496 88,666 105,233 19,431 18,025 4,765 14,831 17,325 8,180 7,666 8,617 16,181 16,283 14,288 16,374 11,460 17,762 24,370 1,817 1,531 961 949 2,165 24,798 21,966 26,744 38,945 45,090 21,954 17,383 18,347 30,315 32,123 14,990 10,732 12,734 25,384 24,775 6,964 6,651 5,613 4,931 7,354 885 637 682 1,390 3,670 1,959 3,946 7,714 7,240 9,291 1972—July. Aug. Sept. Oct.. Nov. Dec. 6,921 7,136 5,635 9,505 10,987 8,210 496 606 474 2,530 3,590 2,553 1,000 1,685 650 1,141 2,134 200 1,784 1,898 1,701 1,970 1,816 1,760 59 54 90 74 70 302 3,583 2,893 2,720 3,791 3,377 3,396 2,465 1,945 1,651 2,336 2,343 2,625 1,807 1,523 862 1,772 1,361 1,024 657 421 789 565 982 1,601 206 206 305 421 154 272 913 743 765 1,033 880 498 1973—Jan.. Feb.. Mar. Apr. May June July. 6,523 7,325 9,029 6,567 11,225 7,923 7,418 1,199 1,603 606 564 3,353 559 490 993 2,261 1,826 1,640 3,442 1,706 2,471 1,889 1,445 2,304 116 53 359 178 17 53 48 2,327 1,962 3,933 2,497 2,543 3,558 2,470 1,276 957 2,116 1,739 1,721 2,737 1,724 989 641 1,315 938 1,049 1,358 855 287 316 802 801 672 1,378 869 137 172 833 200 187 216 220 913 832 2,729 558 635 606 526 1,688 1,870 2,046 1,939 Gross proceeds, major groups of corporate issuers Period Manufacturing Commercial and miscellaneous Transportation Public utility Bonds Stocks Bonds Stocks Bonds 1964 196 5 196 6 2,819 4,712 5,861 228 704 1,208 902 1,153 1,166 220 251 257 944 953 1,856 38 60 116 2,139 2,332 3,117 196 7 196 8 1969 1970 197 1 9,894 5,668 4,448 9,192 9,426 1,164 1,311 1,904 1,320 2,152 1,950 1,759 1,888 1,963 2,272 117 116 3,022 2,540 2,390 1,859 1,665 1,899 2,213 1,998 466 1,579 247 47 420 1972—July. Aug. Sept. Oct.. Nov. Dec. 464 192 441 269 346 486 110 261 162 114 79 103 77 308 302 192 429 343 239 -342 242 326 271 149 130 94 61 152 61 214 30 2 1973—Jan.. Feb.. Mar. Apr. May June July. 113 178 772 772 387 705 354 63 35 125 22 12 25 169 89 118 177 237 30 133 124 105 111 327 139 143 89 112 120 96 317 91 236 183 208 1 Gross proceeds are derived by multiplying principal amounts or number of units by offering price. 2 Includes guaranteed issues. 3 Issues not guaranteed. 4 See NOTE to table at bottom of preceding page. Stocks 12 8 25 1 4 6 1 8 Bonds Stocks Communication Real estate and financial Bonds Stocks Bonds Stocks 620 604 549 669 808 1,814 1,520 139 189 3,391 3,762 1,747 466 514 193 4,217 4,407 5,409 8,016 7,605 718 873 1,326 3,001 4,195 1,786 1,724 1,963 5,053 4,227 193 43 225 83 1,592 2,247 2,159 2,739 3,878 186 662 1,671 1,638 2,212 455 452 649 522 322 491 343 184 598 758 472 370 390 237 32 313 657 34 196 949 662 166 887 528 1,057 200 161 66 187 202 107 529 319 1,076 150 361 1,099 599 371 277 1,351 369 410 497 264 30 58 548 258 355 303 236 3 117 668 395 290 1,462 743 351 316 203 509 461 1,397 228 231 181 142 1 58 1 17 19 29 60 6,601 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organizations. NOTE.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. OCTOBER 1973 • SECURITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers 1 Bonds and notes All securities Period Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 196 7 196 8 1969 1970 197 1 25,964 25,439 28,841 38,707 46,687 7,735 12,377 10,813 9,079 9,507 18,229 13,062 18,027 29,628 37,180 21,299 19,381 19,523 29,495 31,917 5,340 5,418 5,767 6,667 8,190 15,960 13,962 13,755 22,825 23,728 4,664 6,057 9,318 9,213 14,769 2,397 6,959 5,045 2,411 1,318 2,267 -900 4,272 6,801 13,452 1972—1.. II. Ill IV. 10,072 11,514 9,776 10,944 2,691 2,389 2,212 2,932 7,381 9,123 7.564 8,012 6,699 7,250 6,118 6,998 2,002 2,191 1,603 2,207 4,698 5,050 4,515 4,790 3,373 4,264 3,659 3,946 690 198 609 725 2,683 4.066 3,049 3,220 1973—1.. II. 8,219 9,418 2,806 2,470 5,412 6,947 4.198 5; 769 1,781 1,664 2,417 4,106 4,020 3,648 1,025 806 2,995 2,842 Type of issues Commercial and other 2 Manufacturing Period Transportation 3 Real estate and financial 1 Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks 987 946 ,104 900 -149 186 36 800 3,669 4,464 6,861 6,486 892 1,353 2,917 4,206 1,579 1,834 4,806 3,925 120 241 94 1,600 1,069 1,687 2,564 5,005 -741 866 1,107 2,017 545 774 673 479 267 127 138 179 15 .164 28 47 827 1,844 1,410 1,056 872 1,176 1,061 1,735 1,020 806 573 944 402 464 305 89 1,856 1,233 1,456 1,920 425 638 453 580 377 327 127 327 -43 7 844 1,136 1,170 1,276 520 842 185 562 965 1,049 1,244 673 Bonds & notes Stocks Bonds & notes 4,418 3,747 6,641 6,585 -1,842 69 870 2,534 2,242 1,075 853 827 821 1,558 1,778 2,290 1972—1.. II. Ill IV. 696 704 479 116 423 851 530 290 31 344 459 575 1973—1. . II. 135 632 63 - 2 -174 119 Bonds & notes Stocks 196 8 196 9 1970 197 1 Communication Public utility 1 2 Excludes investment companies. Extractive and commercial and miscellaneous companies. 3 Railroad and other transportation companies. NOTE.—Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on opposite page, new issues exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose, OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption of own shares Assets (market value at end of period) Year Sales and redemption of own shares Assets (market value at end of period) Month Sales 1 Redemptions Net sales Total 2 Cash position 3 Other 1960 2,097 842 1,255 17,026 973 16,053 1961 1962 1963 2,951 2,699 2,460 1,160 1,123 1,504 1,791 1,576 952 22,789 21,271 25,214 980 1,315 1,341 21,809 19,956 23,873 1964 1965 1966 3,404 4,359 4,671 1,875 1,962 2,005 1,528 2,395 2,665 29,116 35,220 34,829 1,329 1.803 2,971 27,787 33,417 31,858 1967 1968 1969 4,670 6,820 6,717 2,745 3,841 3,661 1,927 2,979 3,056 44,701 52,677 48,291 2,566 3,187 3,846 42,135 49,490 44,445 1970 1971 4,624 5,145 2,987 4,751 1,637 774 47,618 56,694 3,649 3,163 43,969 53,531 1 Includes contractual and regular single-purchase sales, voluntary and contractual accumulation plan sales, and reinvestment of investment income dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. Cash position 3 Net sales Total 2 582 442 411 645 619 -191 -132 -27 -258 -170 58,186 57,193 57,525 59,854 59,831 3,375 3,395 3,719 3,549 3,035 54,811 53,798 53,806 56,305 56,796 666 530 531 452 446 349 357 432 -131 -203 -12 -120 -161 -46 -7 -193 56,946 54,083 53,377 50,837 48,588 48,127 50,933 49,553 3,015 3,375 3,774 3,837 4,154 4,164 4,594 4,567 53,931 50,708 49,603 46,464 44,434 43,963 46,339 44,986 Sales 1 Redemptions 1972—Aug... Sept... Oct... Nov... Dec... 391 310 384 387 449 1973—Jan. . . Feb... Mar... Apr... May.. June.. July. . Aug. . 535 327 519 300 285 303 364 239 Other 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. 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. A 48 BUSINESS FINANCE • OCTOBER 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Profits before taxes Income taxes Profits after taxes Cash dividends Undistributed profits Corporate capital consumption allowances 1 Quarter Profits before taxes Income taxes Profits after taxes Cash dividends Undistributed profits Corporate capital consumption allowances 1 1966 1967 84.2 79.8 34.3 33.2 49.9 46.6 20.8 21.4 29.1 25.3 39.5 43.0 1971—11. III.... IV.... 1968 1969 1970 1971 1972 87.6 84.9 74.0 85.1 98.0 85.5 87.0 86.9 38.4 38.0 36.4 39.9 40.1 34.8 37.4 42.7 47.8 44.8 39.3 47.6 55.4 23.6 24.3 24.7 25.1 26.0 24.2 20.5 14.6 22.5 29.3 47.1 49.0 50.6 25.1 25.2 24.9 46.8 51.9 56.0 60.4 65.9 22.0 23.7 25.7 59.8 61.0 62.1 1972—1 II . , III.... IV.... 92.8 94.8 98.4 106.1 40.6 41.4 42.9 45.9 52.2 53.4 55.6 60.3 25.7 25.9 26.2 26.4 26.5 27.5 29.4 33.9 63.4 66.2 66.0 68.0 1973—1 II 119.6 128.9 52.7 57.4 66.9 71.6 26.9 27.3 40.0 44.2 69.3 70.5 Year 1 Includes depreciation, capital outlays charged to current accounts, and accidental damages. NOTE.—Dept. of Commerce estimates. adjusted annual rates. Quarterly data are at seasonally CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets End of period Net working capital Total Cash U.S. Govt, securities Current liabilities Notes and accts. receivable U.S. Govt. 1 Notes and accts. payable U.S. Govt. 1 Inventories Other Other Accrued Federal income taxes Total Other Other 1968 1969 182.3 185.7 426.5 473.6 48.2 47.9 11.5 10.6 5.1 4.8 168.8 192.2 166.0 186.4 26.9 31.6 244.2 287.9 6.4 7.3 162.4 196.9 14.3 12.6 61.0 76.0 1970—III IV 185.3 187.8 484.6 490.4 46.5 49.7 7.1 7.6 4.2 4.2 201.0 200.6 193.5 196.0 32.3 32.4 299.3 302.6 6.8 6.6 196.7 200.5 11.5 11.8 84.3 83.7 1971—1 II Ill IV 192.0 196.5 200.9 204.9 494.1 498.2 507.2 516.7 48.5 51.1 52.4 55.3 7.8 7.7 7.8 10.4 4.2 3.9 3.9 3.5 201.3 203.3 206.5 207.5 198.5 199.2 201.6 203.1 33.8 33.1 34.9 36.8 302.1 301.7 306.3 311.8 6.1 5.3 5.0 4.9 195.7 195.8 197.4 202.8 13.7 12.4 13.8 14.5 86.6 88.3 90.1 89.7 1972—1 II Ill IV 209.6 215.2 219.3 224.3 526.0 534.3 545.5 561.1 55.3 55.7 57.3 60.3 9.9 8.7 7.6 9.7 3.4 2.8 2.9 3.4 211.4 216.3 222.5 228.9 207.2 210.7 215.2 218.2 38.9 40.1 39.8 40.7 316.4 319.1 326.2 336.8 4.9 4.9 4.7 4.0 202.5 204.0 207.6 216.9 15.7 13.4 15.0 16.7 93.3 96.8 98.9 99.2 1973—1 II 231.4 237.8 577.1 594.7 61.0 62.2 10.4 9.4 3.2 2.9 234.0 243.7 225.9 233.5 42.5 43.0 345.7 356.9 4.1 4.5 218.1 227.6 18.6 16.5 104.9 108.3 1 Receivables from, and payables to, the U.S. Govt, exclude amounts offset against each other on corporations' books. NOTE : Based on Securities and Exchange Commission estimates. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Period Transportation Durable Nondurable 75.56 79.71 81.21 88.44 100.20 15.96 15.80 14.15 15.64 19.07 15.72 16.15 15.84 15.72 18.38 1971—II.. III.. IV.. 20.60 20.14 22.79 3.52 3.40 4.12 1972—I.., II . III., IV.. 19.38 22.01 21.86 25.20 1973—I.. . II.. III 2 IV 2 21.50 24.73 25.35 28.62 196 9 197 0 197 1 1972 19732 1 2 Communications Gas and other Other 1 Total (S.A. A.R.) Railroad Air Other Electric 1.86 1.89 2.16 2.45 2.83 1.86 1.78 1.67 1.80 2.01 2.51 3.03 1.88 2.46 2.34 1.68 1.23 1.38 1.46 1.54 8.94 10.65 12.86 14.48 16.28 2.67 2.49 2.44 2.52 3.08 8.30 10.10 10.77 11.89 13.24 16.05 16.59 18.05 20.07 21.44 4.03 3.91 4.32 .54 .55 .59 .47 .42 .45 .60 .39 .56 .36 .37 .37 3.20 3.35 3.60 .63 .71 .69 2.81 2.62 2.84 4.44 4.42 5.26 81.61 80.75 83.18 3.29 3.71 3.86 4.77 3.32 3.92 3.87 4.61 .58 .61 .59 .63 .48 .48 .38 .47 .50 .73 .61 .63 .32 .39 .35 .40 3.19 3.61 3.67 4.01 .44 .62 .72 .73 2.72 2.95 2.84 3.39 4.55 4.98 4.97 5.57 86.79 87.12 87.67 91.94 3.92 4.65 4.79 5.70 3.88 4.51 4.68 5.30 .63 .71 .74 .76 .46 .46 .50 .59 .52 .72 .54 .56 .32 .43 .43 .35 3.45 3.91 4.24 4.69 .50 .68 .92 .98 2.87 3.27 4.94 5.40 96.19 97.76 101.88 104.36 Includes trade, service, construction, finance, and insurance. Anticipated by business. Public utilities Mining Total 8. 50 9. 70 NOTE.—Dept. of Commerce and Securities and Exchange Commission estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. OCTOBER 1973 • REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions of dollars) Farm All properties Nonfarm Other holders 2 End of period All holders Financial institutions 1 U.S. agencies 1- to 4-family houses 4 All holders Individuals and others Financial institutions 1 Other holders 3 All holders Multifamily and commercial properties 5 Mortgage type 6 Total Finan. institutions 1 Other holders Total Finan. institutions 1 Other holders FHAVAunderwritten Conventional 300.1 325.8 347.4 370.2 397.5 425.3 451.7 241.0 264.6 280.8 298.8 319.9 339.1 355.9 11.4 12.4 15.8 18.4 21.7 26.8 33.0 47.7 48.7 50.9 53.0 55.8 59.4 62.8 18.9 21.2 23.3 25.5 27.5 29.5 31.2 7.0 7.8 8.4 9.1 9.7 9.9 10.1 11.9 13.4 14.9 16.3 17.8 19.6 21.1 281.2 304.6 324.1 344.8 370.0 395.9 420.5 197.6 212.9 223.6 236.1 251.2 266.8 280.2 170.3 184.3 192.1 201.8 213.1 223.7 231.3 27.3 28.7 31.5 34.2 38.1 43.2 48.9 83.6 91.6 100.5 108.7 118.7 129.0 140.3 63.7 72.5 80.2 87.9 97.1 105.5 114.5 19.9 19.1 20.3 20.9 21.6 23.5 25.8 77.2 81.2 84.1 88.2 93.4 100.2 109.2 204.0 223.4 240.0 256.6 276.6 295.7 311.3 1971—11. . . 471.1 III. . 485.6 IV. . 499.9 372.0 383.6 394.5 35.2 37.4 39.4 63.9 64.6 66.1 31.9 32.4 32.9 9.7 9.8 9.9 22.2 22.6 23.0 439.3 453.2 467.0 290.9 299.7 307.8 240.7 248.0 254.2 50.2 51.8 53.7 148.3 153.5 159.2 121.6 125.8 130.5 26.7 27.7 28.7 114.4 117.5 120.7 324.9 335.7 346.3 1972—1.... II. . . III. . IV. . 511.7 529.1 547.3 565.4 404.2 418.9 434.6 450.6 41.2 42.7 44.3 45.8 66.4 67.5 68.3 69.0 33.5 34.4 35.0 35.4 9.9 10.2 10.3 10.5 23.6 24.2 24.7 24.9 478.2 494.8 512.3 530.0 314.1 324.6 335.8 346.1 259.6 268.8 279.2 288.7 54.5 55.8 56.6 57.4 164.1 170.2 176.5 183.9 134.6 140.0 145.1 151.3 29.4 30.3 31.3 32.6 123.7 126.6 129.0 131.1 '354.5 '368.2 '383.3 '398.9 . 579.8 600.5 463.0 480.5 47.3 49.0 69.6 71.0 36.4 37.7 10.7 25.7 26.7 543.4 562.8 353.7 365.8 296.1 306.9 57.6 58.9 189.7 197.0 156.2 162.5 33.5 34.5 132.5 410.9 1964 1965 1966 1967 1968 1969 1970 1973—I.... HP. 11.0 4 1 Commercial banks (including nondeposit trust companies but not trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. 2 U.S. agencies include former Federal National Mortgage Assoc. and, beginning fourth quarter 1968, new Government National Mortgage Assoc. as well as Federal Housing Admin., Veterans Admin., Public Housing Admin., Farmers Home Admin. They also include U.S. sponsored agencies—new F N M A , Federal land banks, G N M A (Pools), and the Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts small or separate data not readily available) included with "individuals and others." 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. For multifamily and total residential properties, see tables below. 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. 6 Data by type of mortgage on nonfarm 1 - to 4-family properties alone are shown in table below. MORTGAGE DEBT OUTSTANDING ON RESIDENTIAL PROPERTIES MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMILY PROPERTIES NOTE.—Based on data from Federal Deposit Insurance Corp., Federal Home Loan Bank Board, Institute of Life Insurance, Depts. of Agriculture and Commerce, F N M A , FHA, PHA, VA, G N M A , FHLMC, and Comptroller of the Currency. Figures for first three quarters of each year are F.R. estimates. (In billions of dollars) (In billions of dollars) Governmentunderwritten All residential Financial institutions End of period 231.1 1964 Multifamily 1 Other holders Total Financial institutions Other holders 195.4 35.7 33.6 25.1 8.5 End of period 196 5 196 6 196 7 196 8 1969 1970 250.1 264.0 280.0 298.6 319.0 338.2 213.2 223.7 236.6 250.8 265.0 277.1 36.9 40.3 43.4 47.8 54.0 61.1 37.2 40.3 43.9 47.3 52.2 58.0 29.0 31.5 34.7 37.7 41.3 45.8 8.2 8.8 9.2 9.7 10.8 12.2 1971—1 1 II I IV 353.1 364.0 374.7 289.9 298.4 306.1 63.2 65.6 68.6 62.1 64.3 66.8 49.2 50.4 52.0 382.9 395.8 409.3 ,422.5 312.9 324.1 336.1 347.9 70.0 71.7 73.2 74.6 68.8 71.3 73.5 76.4 53.3 55.3 56.9 59.1 15.4 16.0 16.6 17.3 432.7 448.0 357.2 370.4 75.5 77.6 79.0 82.2 61.1 63.5 17.9 18.7 Total 1973—1 IIP l Structures of five or more units. NOTE.—Based on data from same source as for "Mortgage Debt Outstanding" table above. FHAinsured VAguaranteed 1 Conventional 197.6 1968 1972—1 Ill 1973—1 II p 38.3 30.9 128.3 73.1 76.1 79.9 84.4 90.2 97.2 42.0 44.8 47.4 50.6 54.5 59.9 31.1 31.3 32.5 33.8 35.7 37.3 139.8 147.6 156.1 166.8 176.6 182.9 290.9 299.7 307.8 1966 69.2 212.9 223.6 236.1 251.2 266.8 280.2 12.9 13.9 14.9 1972—1 II II I IV Total 100.4 102.9 105.2 62.8 64.4 65.7 37.6 38.5 39.5 190.5 196.8 202.6 314.1 324.6 335.8 346.1 107.5 109.6 111.5 112.9 66.8 67.6 68.4 68.2 40.7 42.0 43.1 44.7 206.6 215.0 224.3 233.1 353.7 365.8 113.7 67.9 45.8 240.2 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. NOTE.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. A 50 REAL ESTATE CREDIT • OCTOBER 1973 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings * Mutual savings bank holdings Residential End of period Other nonfarm Total Total FHAinsured VAguaranteed Conventional Residential Farm Other nonfarm Total Total FHAinsured VAguaranteed Conventional 11,121 11,408 11,471 11,795 12,033 12,166 12,008 Farm 196 4 196 5 196 6 196 7 196 8 196 9 197 0 43,976 49,675 54,380 59,019 65,696 70,705 73,275 28,933 32,387 34,876 37,642 41,433 44,573 45,640 7,315 7,702 7,544 7,709 7,926 7,960 7,919 2,742 2,688 2,599 2,696 2,708 2,663 2,589 18,876 21,997 24,733 27,237 30,800 33,950 35,131 12,405 14,377 16,366 17,931 20,505 22,113 23,284 2,638 2,911 3,138 3,446 3,758 4,019 4,351 40,556 44,617 47,337 50,490 53,456 56,138 57,948 36,487 12,287 40,096 13,791 42,242 14,500 44,641 15,074 46,748 15,569 48,682 15,862 49,937 16,087 13,079 14,897 16,272 17,772 19,146 20,654 21,842 4,016 4,469 5,041 5,732 6,592 7,342 7,893 53 52 53 117 117 114 119 1971—1.. II. Ill IV. 74,424 76,639 79,936 82,515 46,343 48,163 50,280 52,004 7,971 8,146 8,246 8,310 2,595 2,636 2,806 2,980 35,777 37,381 39,228 40,714 23,595 24,477 25,500 26,306 4,486 3,999 4,156 4,205 58,680 59,643 60,625 61,978 50,553 16,157 12,010 22,386 51,362 16,281 12,011 23,069 51,989 16,216 12,033 23,740 53,027 16,141 12,074 24,812 8,014 8,174 8,561 8,901 113 107 75 50 1972—1,. II. III IV 85,614 90,114 95,048 99,314 53,937 56,782 59,976 62,782 8,360 8,477 8,515 8,495 2,999 3,141 3,118 3,203 42,578 45,163 48,343 51,084 27,353 28,785 30,415 31,751 4,324 4,547 4,657 4,781 62,978 64,404 65,901 67,556 53,733 16,184 12,144 54,758 16,256 12,325 55,889 16,130 12,463 57,140 16,013 12,622 25,405 9,195 26,178 9,586 27,296 9,951 28,505 10,354 50 60 61 62 1973—1.. 103,314 65,192 33,060 5,062 68,920 10,683 68 i Includes loans held by nondeposit trust companies but not bank trust depts. 58,169 NOTE.—Second and fourth quarters, FDIC series for all commercial and mutual savings banks in the United States and possessions. First and third quarters, estimates based on special F.R. interpolations. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Period Total Nonfarm Farm Total FHAinsured VAguaranteed Total Other i Total FHAinsured Farm VAguaranteed Other 1945 976 6,637 5,860 1,394 4,466 766 1964 196 5 196 6 196 7 1968 196 9 10,433 11,137 10,217 8,470 7,925 7,531 9,386 9,988 9,223 7,633 7,153 6,991 1,812 1,738 1,300 757 733 594 674 553 467 444 346 220 6,900 7,697 7,456 6,432 6,074 6,177 1,047 1,149 994 837 772 540 55,152 60,013 64,609 67,516 69,973 72,027 50,848 55,190 59,369 61,947 64,172 66,254 11,484 12,068 12,351 12,161 11,961 11,715 6,403 6,286 6,201 6,122 5,954 5,701 32,961 36,836 40,817 43,664 46,257 48,838 4,304 4,823 5,240 5,569 5,801 5,773 1970 197 1 197 2 7,181 7,573 8,802 6,867 7,070 8,101 386 322 277 88 101 202 6,393 6,647 7,622 314 503 701 74,375 75,496 77,319 68,726 69,895 71,640 11,419 10,767 9,944 5,394 5,004 4,646 51,913 54,124 57,050 5,649 5,601 5,679 1972—July r Aug. Sept. Oct.. Nov. Dec. 646 743 708 718 803 1,830 596 682 663 673 746 1,723 25 19 22 10 28 16 19 21 14 16 13 18 552 642 627 647 705 1,689 50 61 45 45 57 107 75,456 75,723 75,813 75,952 76,207 77,319 69,859 70,105 70,195 70,323 70,567 71,640 10,332 10,224 10,139 10,053 10,000 9,944 4,820 4,776 4,734 4,700 4,668 4,646 54,707 55,105 55,322 55,570 55,899 57,050 5,597 5,618 5,618 5,629 5,640 5,679 1973—Jan.. Feb. Mar. Apr. May June July. 711 603 670 702 774 1,101 933 649 542 573 624 694 1,009 849 16 27 37 20 22 24 26 20 24 24 22 21 27 19 613 491 512 582 651 758 804 62 61 97 78 80 r 92 84 77,481 77,510 77,587 77,258 77,400 77,914 78,243 71,856 71,892 71,953 71,611 71,721 72,187 72,474 9,901 9,806 9,735 9,708 9,627 9,544 9,464 4,630 4,613 4,594 4,572 4,549 4,524 4,496 57,325 57,473 57,624 57,331 57,545 58,119 58,515 5,625 5,618 5,634 5,647 5,679 5,727 5,769 i Includes mortgage loans secured by land on which oil drilling or extracting operations are in process. OCTOBER 1973 • REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Number of loans Total amount committed (millions of (dollars) 2,569 1,788 912 1,664 1971—July. Aug. Sept. Oct.. Nov. Dec. 1972—Jan.. Feb.. Mar. Apr. May June July. Aug. Sept. Contract interest rate (per cent) 3,244.3 2,920.7 2,341.1 3,982.5 1,263 1,633 2,567 2,393 7.66 8.69 9.93 9.07 386.5 434.4 366.1 198.4 288.2 290.0 2,112 2,839 2,057 1,771 2,119 2,181 107 122 220 200 246 268 170 178 152 196 8 1969 197 0 197 1 Loan amount (thousands of dollars) 183 153 178 112 136 133 Period 198.6 423.5 530.4 381.1 399.6 683.2 421.2 515.7 354.1 1,856 3,471 2,411 1,906 1,624 2,549 2,478 2,897 2,329 Loanto-value ratio (per cent) Capitalization rate (per cent) Debt coverage ratio 22/8 22/10 73.6 73.3 74.7 74.9 9.0 9.6 10.8 10.0 1.30 1.29 1.32 1.29 8.94 9.08 9.15 9.20 9.01 8.96 21/10 23/1 22/6 22/7 23/5 23 74.4 74.9 74.8 75.8 75.6 74.4 9.8 9.9 9.8 10.0 9.9 9.9 1.26 1.27 1.28 8.78 8.62 8.50 8.44 8.48 8.55 8.56 8.54 8.58 22/1 22/6 24/2 24/6 23/4 23/0 23/0 23/0 23/4 73.3 73.3 76.3 76.3 76.0 75.4 74.5 74.9 75.7 10.0 9.7 9.5 9.5 9.5 9.5 9.5 9.5 9.5 1.31 1.31 1.29 1.29 1.26 1.29 1.31 1.27 Maturity (yrs./mos.) 22/11 21/8 Per cent constant 9.5 10.2 11.1 10.4 10.4 10.4 10.4 10.4 10.2 1.28 1.27 1.30 10.2 10.2 10.0 9.7 9.6 9.8 9.8 9.8 9.9 9.8 1.28 NOTE.—American Life Insurance Association data for new commitments of $100,000 and over each on mortgages for multifamily and nonresidential nonfarm properties located largely in the United States. The 15 companies account for a little more than one-half of both the total assets and the nonfarm mortgages held by all U.S. life insurance companies. Averages, which are based on number of loans, vary in part with loan composition by type and location of property, type and purpose of loan, and loan amortization and prepayment terms. Data for the following are limited to cases where information was available or estimates could be made: capitalization rate (net stabilized property earnings divided by property value); debt coverage ratio (net stabilized earnings divided by debt service); and per cent constant (annual level payment, including principal and interest, per $100 of debt). All statistics exclude construction loans, increases in existing loans in a company's portfolio, reapprovals, and loans secured by land only. MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Advances outstanding (end of period) Total Loans outstanding (end of period) Period Period Total i New home construction Home purchase Total 2 FHAVAConinguarvensured 3 anteed 3 tional 24,192 16,924 20,122 21,983 21,847 6,013 3,653 4,243 4,916 4,757 10,830 7,828 9,604 11,215 11,254 110,306 114,427 121,805 130,802 140,347 197 0 197 1 21,383 4 , 1 5 0 39,472 6,835 10,237 18,811 5,145 5,269 5,791 6,658 7,917 6,398 6,157 6,351 7,012 7,658 1970. 1971 150,331 10,178 174,385 13,798 8,494 131,659 10,848 149,739 1972- 166,800 169,441 171,842 174,232 176,964 1972—Aug.. Sept.. Oct... Nov.. Dec.. 5,379 4,689 4,522 4,393 4,591 803 739 761 714 667 3,087 194,955 15,263 2,587 197,881 15,342 2,423 200,554 15,378 2,307 203,266 15,490 2,167 206,387 15,639 1973—Jan... Feb.. Mar.. Apr.. May. June. July. Aug.. 3,702 3,710 4,990 4,989 5,477 5,738 5,059 4,955 590 614 887 886 931 903 851 799 1,970 2,019 2,685 2,762 3,141 3,469 3,079 3,051 208,132 210,260 213,259 216,250 219,500 222,801 225,490 227,995 12,892 13,098 13,334 13,544 13,764 29,581 29,751 30,045 30,182 30,296 30,381 30,270 30,264 178,551 180,509 183,214 186,068 189,204 192,420 195,220 197,731 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. 2 Includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaranteed by the FHLMC and certain other related items. 3 Beginning 1973, data for these groups available only on a combined basis. Oct 1973Feb July 4,335 2,866 4,076 1,861 1,500 5,997 6,935 4,386 5,259 9,289 3,074 5,006 3,985 4,867 8,434 2,923 1,929 401 392 855 1,043 1,036 1,432 1,382 1,041 3,256 2,714 4,790 1968. 1969. 98,763 103,001 109,663 117,132 124,772 Shortterm 1 Members' deposits (end of Longperiod) term 2 Repayments 5,007 3,804 1,527 2,734 5,531 1966. 196 5 196 6 196 7 196 8 196 9 Advances 1,929 5,392 4,749 10,615 7,936 7,979 3,081 3,002 2,961 7,534 4,934 5,018 2,331 1,789 2,104 406 631 542 445 984 249 189 233 246 251 6,295 6,736 7,045 7,245 7,979 2,083 2,307 2,440 2,520 2,961 4,212 4,429 4,605 4,725 5,018 1,442 1,443 1,334 1,371 2,104 480 7,831 302 7,944 8,421 288 178 9,429 189 10,156 104 11,145 153 12,365 239 13,510 2,805 2,774 2,975 3,450 3,428 4,016 4,583 4,737 5,025 5,170 5,446 5,979 6,728 7,129 7,782 8,773 1,306 1,321 1,290 1,142 1,261 '1,453 '1,183 1,091 332 415 764 1,187 916 1,093 1,373 1,384 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 year but not more than 10 years. NOTE.—FHLBB data. REAL ESTATE CREDIT • OCTOBER 1973 A 52 FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS (In millions of dollars) Mortgage holdings End of period Total FHAinsured 7,167 10,950 15,502 17,791 19,791 196 8 196 9 197 0 197 1 197 2 1972-Aug.. Sept.. Oct. . Nov.. Dec.. 14,624 19,023 19,295 19,438 19,619 19,791 14,188 14,380 14,462 14,558 14,624 VAguaranteed "5* Date of auction Purchases Sales 1,944 4,121 5,079 3,574 r i i 2' 3,699 20 r r 366 5,121 2,046 7 , 6 8 0 3,270 11,071 4,431 4,816 4,888 4,939 5,016 5,112 r Government-underwritten Conventional home loans home loans Mortgage commitments Mortgage transactions (during period) 211 Made during period Out standing 2,696 6,630 8,047 '9,828 8,797 1,287 3,539 5,203 '6,497 8,124 r 427 408 265 r 322 r 306 r 555 814 r r 9 79 r r 447 l,237 r 7,083 '7,327 '7,602 '7,452 8,124 Mortgage amounts Offered Accepted In millions of dollars Average Mortgage Average yield amounts yield (short(shortterm term commitcommitAcments) Offered cepted ments) In per cent 1972—Dec. 26 108.7 66.3 170.8 107.7 7.75 297.3 168.7 In per cent 7.69 1973—Mar. In millions of dollars 7.81 60.3 44.3 7.95 86.8 56.4 14,743 14,872 15,201 15,389 15,581 15,768 15,877 16,085 5,170 5,223 5,259 5,269 5,335 5,411 5,574 5,761 29 933 1,211 355 '472 r 516 r 516 699 1,180 1,191 1,102 1,019 8.02 111.9 81.6 8.11 88 4 88^2 8.17 8.23 (In millions of dollars) End of period Total FHAinsured Mortgage commitments Mortgage transactions (during period) VAguaranteed Purchases 216.6 190.7 7.89 261.2 185.9 7.92 111.0 128.9 258.3 212.4 187.7 140.0 7.96 8.00 117.6 113.3 84.4 73.9 8.31 8.39 11... 25... 184.5 199.3 142.2 118.7 8.04 8.09 110.1 95.0 74.1 69.4 8.44 8.51 9.... 23.... 539.3 351.4 244.8 181.4 8.38 8.54 108.4 119.0 72.5 61.7 8.67 8.79 Aug. 6 20.. . 458.5 525.0 201.9 223.8 8.71 8.95 154.3 171.3 77.4 77.2 8.98 9.27 4... 17. . . 551.0 138.1 288.9 107.9 9.27 9.37 118.6 48.6 61.5 46.8 9.53 9.68 NOTE.—Average secondary market yields are gross—before deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for F N M A commitment fees and F N M A stock purchase and holding requirements. Since Oct. 18, 1971, the maturity on new short-term commitments has been 4 months. Mortgage amounts offered by bidders are total bids received. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ACTIVITY Mortgage holdings 7,86 July NOTE.—FNMA data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market portfolio of former F N M A . Mortgage holdings include loans used to back bond issues guaranteed by G N M A . Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA's free market auction system, and through the F N M A - G N M A Tandem Plan (Program 18). 145.9 May 14 28.... '8,034 '7,972 '8,139 8,742 9,312 9,778 9,859 9,809 234.6 Sept. 19,982 20,181 20,571 20,791 21,086 21,413 21,772 22,318 r 458 r 478 r 2.... 3 16.... 17 30.... June 1973-Jan... Feb.. Mar.. Apr.. May. June. July.. Aug.. r 348 r 334 r 522 r Apr. 5.... 6 19.... 21 GNMA MORTGAGE-BACKED SECURITY PROGRAM (In millions of dollars) Sales Made during period Out standing Pass-through securities Bonds sold Period Applications received Securities issued 1,126.2 4,373.6 3,854.5 452.4 2,701.9 2,661.7 1967 1968 1969 1970 1971 1972 3,348 4,220 4,820 5,184 5,294 5,113 1972-Aug... Sept... Oct.... Nov... Dec... 5,405 5,278 5,203 5,152 5,113 1972—Aug. Sept. Oct.. Nov. Dec. 548.3 192.0 237.8 226.4 440.9 140.3 130.9 164.1 138.2 299.8 1 9 7 3 - J a n . . . 5,117 Feb.. . 4 , 9 8 4 Mar... 4,663 A p r . . . 4,439 M a y . . 3,980 J u n e . . 3,908 July... 4,156 Aug.. . 4,455 1973—Jan.. Feb.. Mar. Apr. May June July. Aug. 515.7 167.2 339.4 467.8 563.3 243.1 215.7 174.0 323.3 216.8 139.9 182.1 338.8 315.3 384.7 191.3 NOTE.—GNMA data. Total holdings include a small amount of conventional loans. Data prior to Sept. 1968 relate to Special Assistance and Management and Liquidating portfolios of former F N M A and include mortgages subject to participation pool of Government Mortgage Liquidation Trust, but exclude conventional mortgage loans acquired by former FNMA. NOTE.—GNMA data. Under the Mortgage-Backed Security Program, G N M A guarantees the timely payment of principal and interest on both pass-through and bond-type securities, which are backed by a pool of mortgages insured by F H A or Farmers Home Admin, or guaranteed by VA and issued by an approved mortgagee. To date, bond-type securities have been issued only by F N M A and FHLMC. 2,756 3,569 4,220 4,634 592 651 600 550 860 1,089 827 621 393 1 1,045 867 615 897 1,171 1,266 1,131 738 197 0 197 1 197 2 1,315.0 300.0 OCTOBER 1973 • REAL ESTATE CREDIT HOME-MORTGAGE YIELDS GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE (In per cent) (In millions of dollars) Secondary market Primary market (conventional loans) FHA-insured FHLBB series (effective rate) Period A 53 Yield on FHAinsured newhome loans HUD series New homes Existing homes New homes 1968 1969. 1970. 1971. 1972 6.97 7.81 8.44 7.74 7.60 7.03 7.82 8.35 7.67 7.52 7.12 7.99 8.52 7.75 7.64 7.21 8.29 9.03 7.70 7.52 1972-- A u g Sept Oct Nov Dec 7.59 7.57 7.62 7.64 7.66 7.52 7.55 7.57 7.57 7.59 7.65 7.70 7.70 7.70 7.70 7.55 7.56 7.57 7.57 7.56 1973-—Jan Feb Mar Apr May June July Aug 7.68 7.70 7.68 7.71 7.71 7.79 7.87 7.94 7.68 7.72 7.69 7.70 7.77 7.79 7.84 8.01 7.70 7.75 7.80 7.90 7.95 8.05 8.40 8.85 7.55 7.56 7.63 7.73 7.79 7.89 8.19 VA-guaranteed Mortgages Mortgages Period Total 1965. 1966. 1967. 1968. 1969 1970. 1971. 1972. ExNew isting homes homes Projects * Property improvements 2 Total 3 New homes Existing homes 1,705 1,729 1,369 1,572 1,551 2,667 3,900 3,459 5,760 4,366 4,516 4,924 5,570 5,447 6,475 4,608 591 583 642 1,123 1,316 3,251 3,641 3,448 634 641 623 656 693 617 674 805 2,652 2,600 3,405 3,774 4,072 3,440 5,961 8,293 876 980 1,143 1,430 1,493 1,311 1,694 2,539 1,776 1,618 2,259 2,343 2,579 2,129 4,267 5,754 1972-- A u g . . Sept.. Oct... Nov.. Dec.. 1,018 949 862 1,001 964 310 245 255 261 190 440 340 343 331 245 201 287 170 312 444 67 77 94 97 85 776 758 720 790 715 224 212 204 246 220 552 546 516 544 495 1973-—Jan... Feb.. Mar.. Apr.. May. June. July.. NOTE.—Annual data are averages of monthly figures. The Housing and Urban Development (FHA) data are based on opinion reports submitted by field offices on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Any gaps in data are due to periods of adjustment to changes in maximum permissible contract interest rates. The H U D (FHA) interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. The FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional first-mortgage terms, p. A-35) and an assumed prepayment at end of 10 years. 8,689 7,320 7,150 8,275 9,129 11,982 14,689 12,320 834 710 969 r 621 r 562 r 650 r 559 254 162 195 151 158 153 143 100 324 235 268 223 228 229 250 195 197 59 52 65 74 81 61 66 681 592 596 621 634 646 666 218 187 185 187 198 182 204 463 405 411 434 436 464 462 r 262 r 440 172 122 r 207 100 154 1 1 Monthly figures do not reflect mortgage amendments included in annual totals. 2 Not ordinarily secured by mortgages. 3 Includes refinancing loans, mobile home loans and also a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. NOTE.—FHA and VA data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY DELINQUENCY RATES ON HOME MORTGAGES (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— Loans in foreclosure End of period Total 30 days 60 days 90 days or more 1965 1966 1967 1968 1969 1970 1971 1972 3.29 3.40 3.47 3.17 3.22 3.64 3.93 4.65 2.40 2.54 2.66 2.43 2.43 2.67 2.82 3.42 .55 .54 .54 .51 .52 .61 .65 .78 .34 .32 .27 .23 .27 .36 .46 .45 .40 .36 .32 .26 .27 .33 .46 .48 1971—1 II Ill IV 3.21 3.27 3.59 3.93 2.26 2.36 2.54 2.82 .56 .53 .62 .65 .39 .38 .43 .46 .40 .38 .41 .46 3.16 3.27 3.82 J4.66 \4.65 2.21 2.38 2.74 3.41 3.42 .58 .53 .65 .79 .78 .37 .36 .43 .46 .45 .50 .48 .52 .50 .48 3.63 3.84 2.52 2.81 .68 .64 .43 .39 1972—1 II Ill .. T\/ 1 . . . IV 1 1973_I II 1 Mortgage commitments End of period First line is old series; second line is new series. NOTE.—Mortgage Bankers Association of America data from reports on 1- to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Mortgage transactions (during period) Mortgage holdings Conventional Purchases Sales 1,503 147 287 325 778 ,298 64 408 1,475 1,498 1,545 1,631 1,744 1,790 1,374 1,394 1,408 1,439 1,491 1,503 100 104 137 192 253 287 1,761 1,677 1,718 1,784 1,906 2,029 2,158 1,517 1,535 1,589 1,646 1,695 1,716 1,714 244 142 Total FHAVA 197 0 197 1 1972 325 968 1,790 1972—July. Aug. Sept. Oct., Nov. Dec. 1973—Jan.. Feb. Mar. Apr., May, June July. 325 821 128 138 211 313 444 74 107 66 102 128 143 76 76 119 126 147 154 140 11 75 13 9 10 87 99 150 68 51 17 21 Made during period Outstanding 182 198 75 109 136 189 89 93 298 263 318 371 293 198 142 166 141 193 187 159 139 226 300 295 343 344 316 278 NOTE.—FHLMC data. Data for 1970 include only the period beginning Nov. 26 when the F H L M C first became operational. Holdings, purchases, and sales include participations as well as whole loans. Mortgage holdings include loans used to back bond issues guaranteed by G N M A . Commitment data cover the conventional and Govt.-underwritten loan programs. A 54 CONSUMER CREDIT • OCTOBER 1973 TOTAL CREDIT On millions of dollars) Instalment Total End of period Automobile paper Other consumer goods paper Total Noninstalment Home improvement loans 1 Personal loans Total Singlepayment loans Charge accounts Service credit 1940 1945 1950 1955 1960 8,338 5,665 21,471 38,830 56,141 5,514 2,462 14,703 28,906 42,968 2,071 455 6,074 13,460 17,658 1,827 816 4,799 7,641 11,545 371 182 1,016 1,693 3,148 1,245 1.009 2,814 6,112 10,617 2,824 3,203 6,768 9,924 13,173 800 746 1,821 3,002 4,507 1,471 1,612 3,367 4,795 5,329 553 845 1,580 2,127 3,337 196 5 196 6 196 7 196 8 1969 89,883 96,239 100,783 110,770 121,146 70,893 76,245 79,428 87,745 97,105 28,437 30,010 29,796 32,948 35,527 18,483 20,732 22,389 24,626 28,313 3,736 3,841 4.008 4,239 4,613 20,237 21,662 23,235 25,932 28,652 18,990 19,994 21,355 23,025 24,041 7,671 7,972 8,558 9,532 9,747 6,430 6,686 7,070 7,193 7,373 4,889 5,336 5,727 6,300 6,921 197 0 197 1 1972 127,163 138,394 157,564 102,064 111,295 127,332 35,184 38,664 44,129 31,465 34,353 40,080 5,070 5,413 6,201 30,345 32,865 36,922 25,099 27,099 30,232 9,675 10,585 12,256 7,968 8,350 9,002 7,456 8,164 8,974 1972—Aug. Sept. Oct.. Nov. Dec. 147,631 148,976 150,576 152,968 157,564 119,911 121,193 122,505 124,325 127,332 42,323 42,644 43,162 43,674 44,129 36,188 36,745 37,216 38,064 40,080 5,950 6,049 6,124 6,174 6,201 35,450 35,755 36,003 36,413 36,922 27,720 27,783 28,071 28,643 30,232 11,411 11,541 11,717 11,917 12,256 7,717 7,693 7,780 8,010 9,002 8,592 8,549 8,574 8,716 8,974 1973—Jan.. Feb. Mar. Apr. May June July. Aug. 157,227 157,582 159,320 161,491 164,277 167,083 169,148 171,978 127,368 127,959 129,375 131,022 133,531 136,018 138,212 140,810 44,353 44,817 45,610 46,478 47,518 48,549 49,352 50,232 39,952 39,795 39,951 40,441 41,096 41,853 42,575 43,505 6,193 6,239 6,328 6,408 6,541 6,688 6,845 7.009 36,870 37,108 37,486 37,695 38,376 38,928 39,440 40,064 29,859 29,623 29,945 30,469 30,746 31,065 30,936 31,168 12,204 12,409 12,540 12,686 12,817 12,990 12,968 13,111 8,357 7,646 7,702 8,036 8,319 8,555 8,479 8,605 9,298 9,568 9,703 9,747 9,610 9,520 9,489 9,452 1 Holdings of financial institutions; holdings of retail outlets are included in "Other consumer goods paper." hold, family, and other personal expenditures, except real estate mortgage loans. For back figures and description of the data, see "Consumer Credit," Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 NOTE.—Consumer credit estimates cover loans to individuals for house- a n d BULLETINS f o r D e c . 1 9 6 8 a n d O c t . 1 9 7 2 . INSTALMENT CREDIT (In millions of dollars) Financial institutions End of period Total Total Commercial banks Finance companies 1 Credit unions Retail outlets Miscellaneous lenders i Total Automobile dealers 2 Other retail outlets 1940. 1945. 1950. 1955. 1960. 5,514 2,462 14,703 28,906 42,968 3,918 1,776 11,805 24,398 36,673 1,452 745 5,798 10,601 16,672 2,278 910 5,315 11,838 15,435 171 102 590 1,678 3,923 17 19 102 281 643 1,596 686 2,898 4,508 6,295 167 28 287 487 359 1,429 658 2,611 4,021 5,936 1965. 1966. 1967. 1968. t 1969. 70,893 76,245 79,428 87,745 97,105 61,102 65,430 67,944 75,727 83,989 28,962 31,319 33,152 37,936 42,421 23,851 24,796 24,576 26,074 27,846 7,324 8,255 9,003 10,300 12,028 965 1,060 1,213 1,417 1,694 9,791 10,815 11,484 12,018 13,116 315 277 287 281 250 9,476 10,538 11,197 11,737 12,866 > 1970. 1971. i 1972. 102,064 111,295 127,332 88,164 97,144 111,382 45,398 51,240 59,783 27,678 28,883 32,088 12,986 14,770 16,913 2,102 2,251 2,598 13,900 14,151 15,950 218 226 261 13,682 13,925 15,689 :—Aug Sept Oct Nov Dec 119,911 121,193 122,505 124,325 127,332 106,146 107,278 108,405 109,673 111,382 56,846 57,566 58,266 58,878 59,783 30,464 30,650 30,970 31,427 32,088 16,278 16,439 16,556 16,742 16,913 2,558 2,623 2,613 2,626 2,598 13,765 13,915 14,100 14,652 15,950 251 253 257 259 261 13,514 13,662 13,843 14,393 15,689 1—Jan Feb Mar Apr May June July Aug 127,368 127,959 129,375 131,022 133,531 136,018 138,212 140,810 111,690 112,630 114,190 115,727 118,165 120,450 122,479 124,823 60,148 60,582 61,388 62,459 63,707 64,999 66,065 67,381 32,177 32,431 32,750 33,078 33,859 34,367 35,020 35,634 16,847 16,973 17,239 17,455 17,832 18,269 18,517 18,961 2,518 2,644 2,813 2,735 2,767 2,815 2,877 2,847 15,678 15,329 15,185 15,295 15,366 15,568 15,733 15,987 263 266 272 278 284 289 293 296 15,415 15,063 14,913 15,017 15,082 15,279 15,440 15,691 i Finance companies consist of those institutions formerly classified as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and mutual savings banks. 2 Automobile paper only; other instalment credit held by automobile dealers is included with "Other retail outlets." See also NOTE to table above. OCTOBER 1973 • CONSUMER CREDIT A 55 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions of dollars) Finance companies i Commercial banks Other consumer goods paper Automobile paper End of period Total Purchased Direct Mobile homes Credit cards Other Home improvement loans Personal loans Total Automobile paper Other consumer goods paper Mobile homes Other Home improvement loans Personal loans 1940 1945 1950 1955 1960 1,452 745 5,798 10,601 16,672 339 66 1,177 3,243 5,316 276 143 1,294 2,062 2,820 232 114 1,456 2,042 2,759 165 110 834 1,338 2,200 440 312 1,037 1,916 3,577 2,278 910 5,315 11,838 15,435 1,253 202 3,157 7,108 7,703 159 40 692 1,448 2,553 193 62 80 42 173 673 606 1,386 3,240 5,006 196 5 196 6 196 7 196 8 1969 28,962 31,319 33,152 37,936 42,421 10,209 11,024 10,972 12,324 13,133 5,659 5,956 6,232 7,102 7,791 4,166 4,681 5,469 1,307 2,639 5,387 6,082 2,571 2,647 2,731 2,858 2,996 6,357 7,011 7,748 8,958 9,780 23,851 24,796 24,576 26,074 27,846 9,218 9,342 8,627 9,003 9,412 4,343 4,925 5,069 5,424 5,775 232 214 192 166 174 10,058 10,315 10,688 11,481 12,485 197 0 197 1 1972 45,398 51,240 59,783 12,918 13,837 16,320 7,888 9,277 10,776 4,423 5,786 3,792 4,419 5,288 7,113 4,501 5,122 3,071 3,236 3,544 10,616 11,547 12,947 27,678 28,883 32,088 9,044 9,577 10,174 2,464 2,561 2,916 3,237 3,052 3,589 199 247 497 12,734 13,446 14,912 1972—Aug.. Sept. Oct.. Nov. Dec.. 56,846 57,566 58,266 58,878 59,783 15,566 15,754 15,996 16,180 16,320 10,331 10,381 10,534 10,674 10,776 5,321 5,471 5,590 5,690 5,786 4,631 4,750 4,782 4,868 5,288 5,003 5,030 5,053 5,063 5,122 3,479 3,522 3,555 3,557 3,544 12,515 12,658 12,756 12,846 12,947 30,464 30,650 30,970 31,427 32,088 9,822 9,835 9,914 10,026 10,174 2,773 2,820 2,862 2,899 2,916 3,318 3,367 3,430 3,476 3,589 358 383 412 452 497 14,193 14,245 14,352 14,574 14,912 1973—Jan.. Feb.. Mar.. Apr.. May. June. July., Aug.., 60,148 60,582 61,388 62,459 63,707 64,999 66,065 67,381 16,464 16,680 16,951 17,327 17,716 18,138 18,439 18,771 10,889 10,977 11,216 11,436 11,680 11,866 12,023 12,190 5,839 5,932 6,035 6,163 6,321 6,473 6,629 6,825 5,311 5,283 5,243 5,290 5,360 5,502 5,603 5,792 5,135 5,158 5,289 5,401 5,538 5,688 5,815 5,923 3,527 3,515 3,538 3,581 3,635 3,700 3,774 3,863 12,983 13,037 13,116 13,261 13,457 13,632 13,782 14,017 32,177 32,431 32,750 33,078 33,859 34,367 35,020 35,634 10,177 10,267 10,419 10,617 10,872 11,121 11,365 11,583 2,928 2,909 2,943 2,991 3,025 3,081 3,132 3,187 3,644 3,752 3,796 3,831 3,985 4,002 4,103 4,194 528 562 581 611 656 694 733 771 14,900 14,941 15,011 15,028 15,321 15,469 15,687 15,899 i Finance companies consist of those institutions formerly classified as sales finance, consumer finance, and other finance companies. See also NOTE to table at top of preceding page. NONINSTALMENT CREDIT INSTALMENT CREDIT HELD BY OTHER FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) End of period 1940 1945 1950 1955 1960 Total 188 121 692 1,959 4,566 Automobile paper 36 16 159 560 1.460 Other conHome sumer improvegoods ment paper loans 7 4 40 130 297 13 10 102 313 775 Personal loans 132 91 391 956 2,034 11,717 13,722 3,036 3,411 3,678 4,238 4,941 498 588 654 771 951 933 980 1,085 1.215 1,443 3,822 4,336 4,799 5,493 6,387 197 0 197 1 1972 15,088 17,021 19,511 5,116 5,747 6,598 1,177 1,472 1,690 1,930 2,160 1,800 6,995 7,872 9,063 1972—Aug.. Sept.. Oct.., Nov.. Dec.. 18,836 19,062 19,169 19,368 19,511 6,353 6,421 6.461 6,535 6,598 1,628 1,645 1,656 1,675 1,690 2,113 2,144 2,157 2,165 8,742 8,852 8,895 8,993 9,063 8,289 9,315 1965 1966 1967 196 8 1969 10,216 1973—Jan.. Feb.* Mar.. Apr.. May. June. July. Aug.. 19,365 19,617 20,052 20,190 20,599 21,084 21,394 21,808 6,560 6,627 6,752 6,820 6,966 7,135 7,232 7,392 1,680 1,698 1,732 1,748 1,785 1,828 1,853 1,893 2,160 2,138 2,162 2,209 2.216 2,250 2,294 2,338 2,375 8,987 9,130 9,359 9,406 9,598 9,827 9,971 10,148 NOTE.—Other financial lenders consist of credit unions and miscellaneous lenders. Miscellaneous lenders include savings and loan associations and mutual savings banks. Singlepayment loans Total End of period Charge accounts Commercial banks Other financial institutions Retail outlets Credit cards 1 Service credit 1940 1945 1950 1955 1960 2,824 3,203 6,768 9,924 13,173 636 674 1,576 2,635 3,884 164 72 245 367 623 1,471 1,612 3,291 4,579 4,893 76 216 436 553 845 1,580 2,127 3,337 196 5 196 6 1967 1968. 1969 18,990 19,994 21,355 23,025 24,041 6,690 6,946 7,478 8,374 8,553 1,026 1,080 981 5,724 5,812 6,041 5,966 5,936 706 874 1,029 1,227 1,437 4,889 5,336 5,727 6,300 6,921 197 0 197 1 197 2 25,099 27,099 30,232 8,469 9,316 10,857 1,206 6,163 6,397 7,055 1,805 1,953 1,947 7,456 8,164 8,974 1972—Aug.... Sept... Oct.... Nov.... Dec.... 27,720 27,783 28,071 28,643 30,232 10,053 10,165 10,339 10,527 10,857 1,358 1,376 1.378 1,390 1,399 5,676 5,613 5,794 2,041 7,055 6,081 1,986 1,929 1,947 8,592 8,549 8,574 8,716 8,974 1973—Jan.... Feb.... Mar.... Apr.... May... June... July... Aug.... 29,859 29,623 29,945 30,469 30,746 31,065 30,936 31,168 10,825 10,989 11,074 11,237 11,359 11,520 11,491 11,655 1.379 1,420 1,466 1,449 1,458 1,470 1,477 1,456 6,402 5,735 5,825 6,129 6,387 6,544 6,424 6,475 1,955 1,911 1,877 1,907 1,932 2,011 2,055 2,130 9,298 9,568 9,703 9,747 9,610 9,520 9,489 9,452 1,158 1,194 1,269 1,399 2,080 i Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank-credit-card accounts outstanding are included in estimates of instalment credit outstanding. See also NOTE to table at top of preceding page. A 56 CONSUMER CREDIT • OCTOBER 1973 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Other consumer goods paper Home improvement loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Personal loans S.A.i N.S.A. Extensions 78,661 82,832 87,171 99,984 109,146 112,158 124,281 142,951 1965. 1966. 1967. 1968. 1969. 1970. 1971. 1972. 27,208 27,192 26,320 31,083 32,553 29,794 34,873 40,194 22,857 26,329 29,504 33,507 38,332 43,873 47,821 55,599 2,270 2,223 2,369 2,534 2,831 2,963 3,244 4,006 26,326 27,088 28,978 32,860 35,430 35,528 38,343 43,152 1972—Aug.. Sept.. Oct.. Nov.. Dec.. 12,484 11,953 12,404 12,846 12,627 13,166 11,535 12,337 12,806 13,643 3,491 3,368 3,504 3,620 3,763 3,696 3,110 3,663 3,505 3,195 4,990 4,772 4,971 5,118 4,876 5,094 4,695 4,831 5,202 6,171 371 340 335 327 351 431 360 347 321 280 3,632 3,473 3,594 3,781 3,637 3,945 3,370 3,496 3,778 3,997 1973—Jan... Feb.. Mar.. Apr.. May. June. July.. Aug.. 13,304 13,434 13,852 13,465 13,932 13,646 14,542 14,294 11,923 11,214 13,681 13,661 14,792 14,608 14,812 15,099 4,006 3,972 4,001 3,822 3,989 3,762 3,930 3,968 3,393 3,407 4,164 4,101 4,409 4,313 4,177 4,252 5,282 5,245 5,349 5,563 5.504 5.505 r 5,943 5,961 4,949 4,252 5,169 5,378 5,698 5,678 5,753 6,065 329 364 406 365 374 400 433 408 259 300 377 372 431 450 472 471 3,687 3,853 4,096 3,715 4,065 3,979 '4,236 3,957 3,322 3,255 3,971 3,810 4,254 4,167 4,410 4,311 Repayments 1972—Aug.. Sept.. Oct... Nov.. Dec.. 1973—Jan... Feb.. Mar.. Apr.. May. June. July.. Aug.. 23,706 25,619 26,534 27,931 29,974 30,137 31,393 34,729 70,463 77,480 83,988 91,667 99,786 107,199 115,050 126,914 1965. 1966. 1967. 1968. 1969. 1970. 1971. 1972. 10,841 10,667 10,908 2,112 2,118 2,202 2,303 2,457 2,506 2,901 3,218 20,707 24,080 27,847 31,270 34,645 40,721 44,933 49,872 10,964 10,957 10,253 11,025 10,986 10,636 2,896 2,873 3,041 3,023 2,977 2,976 2,789 3,145 2,993 2,740 4,395 4,303 4,354 4,444 4,341 4,376 4,138 4,360 4,354 4,155 270 263 263 271 263 278 261 272 271 253 3,280 3,228 3,250 3,390 3,383 3,327 3,065 3,248 3,368 3,488 11,355 11,437 11,808 12,061 11,941 12,034 12,544 12,399 11,887 10,623 12,265 12,014 12,283 12,121 12,618 12,501 3,097 3,145 3,225 3,218 3,261 3,253 >•3,334 3,293 3,169 2,943 3.371 3,233 3,369 3,282 3,374 3.372 4,649 4,627 4,755 4,963 4,917 4,955 r 5,141 5,168 5,077 4,409 5,013 4,888 5,043 4,921 5,031 5,135 267 275 286 294 290 300 r 308 298 267 254 288 292 298 303 315 307 3,342 3,390 3,542 3,586 3,473 3,526 '3,761 3,640 3,374 3,017 3,593 3,601 3,573 3,615 3,898 3,687 11,128 Net change in credit outstanding 3,502 1,573 -214 3,152 2,579 -343 3,480 5,465 8,198 5,352 3,183 8,317 9,360 4,959 9,231 16,037 1965. 1966. 1967. 1968. 1969. 1970. 1971. 1972. 2 158 105 167 231 374 457 343 788 2,150 2,249 1,657 2,237 3,687 3,152 2,888 5,727 1972—Aug.. Sept.. Oct... Nov.. Dec.. 643 286 496 718 663 2,209 1,282 1,312 1,820 3,007 595 495 463 597 786 720 321 518 512 455 595 469 617 674 535 718 557 471 848 2,016 101 77 72 56 88 1973—Jan... Feb.. Mar.. Apr.. May. June. July.. Aug.. 949 997 044 404 991 612 998 895 36 591 1,416 1,647 2,509 2,487 2,194 2,598 909 827 776 604 728 509 r 596 675 224 464 793 868 1,040 1,031 803 880 633 618 594 600 587 550 r802 793 -128 62 89 120 71 84 100 125 110 * Includes adjustments for differences in trading days. Net changes in credit outstanding are equal to extensions less repayments. 2 NOTE.—Estimates are based on accounting records and often include financing charges. Renewals and refinancing of loans, purchases and 23,938 25,663 27,405 30,163 32,710 33,835 35,823 39,095 -157 156 490 655 757 722 930 2,388 1,425 1,573 2,697 2,720 1,693 2,520 4,057 153 99 75 50 27 352 245 344 391 254 618 305 248 410 509 - 8 345 463 554 129 592 453 r 475 317 -52 238 378 209 681 552 512 624 46 89 80 133 147 157 164 sales of instalment paper, and certain other transactions may increase the amount of extensions and repayments without affecting the amount outstanding. For back figures and description of the data, see "Consumer Credit," Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and BULLETINS for Dec. 1968 and Oct. 1972. OCTOBER 1973 • CONSUMER CREDIT A 57 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Commercial banks Total Other financial lenders Finance companies Retail outlets Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 1965 1966 1967 1968 1969 1970 1971 1972 78,661 82,832 87,171 99,984 109,146 112,158 124,281 142,951 1972—Au g Sept Oct Dec 1973—Jan Feb May July 25,265 25,897 26,461 30,261 32,753 31,952 32,935 38,464 29,528 30,073 31,382 37,395 40,955 42,960 51,237 59,339 14,430 16,494 18,090 19,122 20,240 21,526 22,143 24,541 9,438 10,368 11,238 13,206 15,198 15,720 17,966 20,607 12,484 11,953 12,404 12,846 12,627 13,166 11,535 12,337 12,806 13,643 5,349 4,972 5,227 5,413 5,313 5,644 4,852 5,224 5,059 5,096 3,285 3,181 3,334 3,434 3,355 3,433 2.971 3,348 3,581 3,766 1,788 1,731 1.705 1,792 1.791 2,014 1,683 1,679 1,704 1,642 2,062 2,069 2,138 2,207 2,168 2,075 2,029 2,086 2,462 3,139 13,304 13,434 13,852 13,465 13,932 13,646 '14,542 14,294 11,923 11,214 13,681 13,661 14,792 14,608 14,812 15,099 5,762 5,664 5,853 5,644 5,859 5,684 '5,976 6,195 5,246 4,826 5,890 5,973 6,356 6,219 6,232 6,518 3,517 3,557 3,654 3,555 3,820 3,584 3,824 3,685 3,033 2.972 3,598 3,576 4,027 3,817 3,931 3,877 1.706 1,964 2,131 1.792 1,868 1,978 2,110 1,943 1,509 1,711 2,083 1,832 2,060 2,211 2,233 2,194 2,319 2,249 2,214 2,474 2,385 2,400 2,632 2,471 2,135 1,705 2,110 2,280 2,349 2,361 2,416 2,510 Repayments 1965 1966 1967 1968 1969 1970 1971 1972 25,663 27,716 29,549 32,611 36,470 40,398 45,395 50,796 70,463 77,480 83,988 91,667 99,786 107,199 115,050 126,914 13,433 15,470 17,421 18,588 19,142 20,742 21,892 22,742 8,311 9,342 10,337 11,705 13,193 14,354 16,033 18,117 23,056 24,952 26,681 28,763 30,981 31,705 31,730 35,259 Aug Sept Oct Nov Dec 10,841 10,667 10,908 11,128 10,964 10,957 10,253 11,025 10,986 10,636 4,414 4,221 4,408 4,531 4,485 4,486 4,132 4,524 4,447 4,191 3,021 2,938 3,023 3,061 2,952 3,034 2,785 3,028 3,124 3,105 1,510 1,533 1,550 1,578 1,561 1,557 1,457 1,572 1,505 1,499 1,896 1,975 1,927 1,958 1,966 1,880 1,879 1,901 1,910 1,841 1973—Jan Feb Mar 11,355 11,437 11,808 12,061 11,941 12,034 '12,544 12,399 11,887 10,623 12,265 12,014 12,283 12,121 12,618 12,501 4,734 4,684 4,870 4,919 4,976 4,890 '5,112 5,146 4,881 4,392 5,084 4,902 5,108 4,927 5,166 5,202 3,033 3,030 3,141 3,251 3,100 3,241 3,312 3,241 2,944 2,718 3,279 3,248 3,246 3,309 3,278 3,263 1,532 1,625 1,665 1.693 1,612 1.694 '1,771 1,738 1,655 1,459 1,648 1,694 1,651 1,726 1,923 1,780 2,056 2,098 2,132 2,198 2,253 2,209 2,349 2,274 2,407 2,054 2,254 2,170 2,278 2,159 2,251 2,256 1972 May June July Aug Net change in credit outstanding 1965 1966 1967 1968 1969 1970 1971 1972 3,865 2,357 1,833 4,784 4,485 2,977 5,842 8,543 8,198 5,352 3,183 8,317 9,360 4,959 9,231 16,037 2 997 1,024 669 534 1,098 784 251 1,799 1,127 1,026 901 1,501 2,005 1,366 1,933 2,490 2,209 945 -220 1,498 1,772 -168 1,205 3,205 Aug Sept Oct 1,643 1,286 1,496 1,718 1,663 2,209 1,282 1,312 1,820 3,007 935 751 819 882 828 1,158 720 700 612 905 264 243 311 373 403 399 186 320 457 661 278 198 155 214 230 457 226 107 199 143 166 94 211 249 202 195 150 185 552 1,298 1973—Jan Feb 1,949 1,997 2,044 1,404 1,991 1,612 '1,998 1,895 36 591 1,416 1,647 2,509 2,487 2,194 2,598 1,028 980 983 725 883 794 '864 1,049 365 434 806 1,071 1,248 1,292 1,066 1,316 484 527 513 304 720 343 512 444 89 254 319 328 781 508 653 614 174 339 466 99 256 284 '339 205 -146 252 435 138 409 485 310 414 263 151 82 276 132 191 283 197 -272 -349 -144 110 71 202 165 254 1972 Apr July 1 Includes adjustments for differences in trading days. Net changes in credit outstanding are equal to extensions less repayments, except in certain months when data for extensions and repayments have been adjusted to eliminate duplication resulting from large transfers of paper. In those months the differences between extensions and repayments for some particular holders do not equal the changes in 2 their outstanding credit. Such transfers do not affect total instalment credit extended, repaid, or outstanding. NOTE.—Other financial lenders include credit unions and miscellaneous lenders. See also NOTE to preceding table and footnote 1 at bottom of p. A-54. A 58 INDUSTRIAL PRODUCTION: S.A. • OCTOBER 1973 MARKET GROUPINGS (1967 = 100) Grouping Total index Products, total Final products Consumer goods Equipment intermediate products Materials 1967 proportion 1972 average 1972 Aug. Sept. Oct. 1973 Nov. Dec. Jan. Feb. Mar. Apr. May June r July r 100.0 115.2 116.3 117.6 119.2 120.2 121.1 122.2 123.4 123.7 124.1 124.8 125.6 62.21 48.95 28.53 20.42 13.26 37.79 113.8 114.7 115.6 111.9 112.6 113.6 123.6 124.3 125.2 95.5 96.3 97.7 121.1 122.3 122.8 117.4 118.8 120.9 117.3 115.3 127.0 98.9 124.7 122.3 118.6 116.3 127.4 100.7 127.6 122.8 119.1 116 127.7 101.5 127.7 124.4 120.7 118.6 129.8 102.9 128.4 124.5 121.5 119.3 130.2 104 129.5 126.7 121.7 119.6 130.8 104. 129.4 127.0 122.0 120.0 130.9 104.7 129.3 127.7 120.8 131.8 105.7 130.5 128.3 121.3 131.9 106.6 132.0 122.9 123.7 129.0 Consumer goods Durable consumer goods Automotive products Autos Auto parts and allied goods... 7.86 2.84 1.87 .97 125.7 127.7 112.7 156.5 124.9 126.0 109.5 158.1 125.7 125.4 109.6 155.8 129.1 132.3 118.9 158.0 131.0 138.3 126.6 160.6 135.0 142.9 133.9 160.0 136.0 138.6 130.2 155.0 137. 141.7 131.5 161.4 140.4 144. 130.8 169.9 140.5 141.7 128.1 167.5 141.5 142.6 129.8 167.0 141. 142.6 132.6 161.9 Home goods Appliances, TV, and radios Appliances and A/C TV and home audio Carpeting and furniture Misc. home goods 5.02 1.41 .92 .49 1.08 2.53 124.5 124.6 144.5 87.5 132.6 121.0 124.3 118.6 139.9 78.6 136.4 122.4 125.8 123.0 142.8 86.1 134.5 123.6 127.3 124.1 147.9 79.4 137.6 124.7 126.9 121.7 141.9 83.9 137.6 125.2 130.5 133.3 151. 99.9 139.0 125.3 134.5 140.7 153.2 117.4 142.1 127.5 135.8 137.8 153.8 108.0 145.0 130.9 138.3 143.0 156.9 116.8 145.7 132.7 139.8 149.7 157.6 135.0 146.7 131.4 140.9 148.0 157.8 129.6 147.8 134.0 141.3 147.2 154.1 134.3 148.9 134.7 Nondurable consumer goods Clothing Consumer staples Consumer foods and tobacco.. 20.67 4.32 16.34 8.37 122, 122.8 109.7 117.5 124.1 112.0 127.3 118.4 124.9 113.5 127.9 118.3 126.2 113.5 129.5 119.5 126.0 114.8 128.9 119.9 125.0 112.2 128.4 119.1 127.4 115. 130.7 121. 127.3 115.2 130.5 121.5 127.1 115.4 130.3 120.9 127.2 114.5 130.6 121.0 128.0 114.2 131.7 120.9 128.1 Nonfood staples Consumer chemical products Consumer paper products... Consumer fuel and lighting.. Residential utilities 7.98 2.64 1.91 3.43 2.25 135.3 144.6 114.8 139.5 147.8 136.6 145.9 115.1 141.1 149.4 138.1 147.6 115.6 143.2 152.2 140.0 149. 118.6 144.7 153.0 138.3 145. 119.3 143.7 152.5 138.1 143.9 119.3 144. 153.6 140.9 148.8 119. 147. 156.5 140.0 149.9 119.4 144.0 154.4 140. 151. 118.7 143.8 153.5 140.7 151.5 119.0 144.4 152.3 143.1 154.9 121.7 145.6 152.1 143.7 153.5 121.7 148.2 155.4 12.74 6.77 1.45 3.85 1.47 106.1 102.5 104.8 92.7 125.6 107.2 104.0 106.9 96.1 122.4 109.6 107.9 108.1 99.1 130.9 111.6 109.1 108.3 101.0 113.4 110.4 108.7 102.6 131.2 132.9 114.4 111.5 112.3 102.5 134.1 116.9 113.0 113.0 104.7 134.6 118.2 114.5 115.1 106.1 135.5 118.6 115.6 116.0 107.5 137.1 119.6 117.4 118. 109.4 137.6 121.3 119.1 118.8 112.0 138.2 122.5 119.8 119. 113. 138.3 116.6 125.5 101.9 116.3 117.6 126.5 101.7 120.0 121.4 122.4 121.9 128.8 129.9 130.6 110.0 111.8 110.2 118.3 117.6 114.6 122.2 131.3 107.5 120.9 123.7 131.6 109.8 126.5 125.4 134. 109.7 129.3 79.6 81.5 80.1 81.8 80.6 82.0 80.0 81.0 79.7 80.1 80.1 80.0 116.0 131.4 119.6 Equipment Business equipment Industrial equipment Building and mining equip. Manufacturing equipment Power equipment Commercial, transit, farm e q . . . . Commercial equipment Transit equipment Farm equipment * Defense and space equipment Military products Intermediate products Construction products 5.97 110.3 110.9 111.6 114.4 3.30 118.4 120.4 122.4 123.9 2.00 96.8 93.0 92.9 96.8 .67 110.5 117.7 114.7 120.3 7.68 5.15 77.9 80.1 78.1 80.1 77.6 79.3 77.9 79.4 79. 81.0 80.1 81.5 5.93 120.8 121.2 122.9 125.6 130.0 128.7 129.6 130.3 130.7 132.2 132.2 135.9 7.34 121.3 123.0 122.8 123.9 125.9 126.9 127.4 128.9 128.3 127.0 129.2 128.9 Misc. intermediate products Materials Durable goods materials Consumer durable parts Equipment parts Durable materials nec , Nondurable goods materials Textile, paper, and chem. mat... Nondurable materials n.e.c , Fuel and power, industrial Supplementary groups Home goods and clothing Containers 20.91 113.5 4.75 113.8 5.41 99.3 10.75 120.6 114.5 115.5 100.1 121.2 118.1 118.1 103.1 125.5 120.2 119.0 107.5 127.2 121.4 120.5 109.7 127.7 123.5 123.6 112.0 129.2 124.1 123.9 111.6 130.6 126.6 125.4 113.0 134.2 127.6 125.9 114.6 134.9 127.9 129.0 113.8 134.7 128.6 125.7 118.0 135.3 129.2 128.8 118.2 134.9 13.99 8.58 5.41 2.89 124.7 132.5 112.3 121.1 124.6 132.0 112.7 124.5 125.3 132.9 113.3 123.2 124.6 132.9 111.8 122.6 126.4 136.0 111.4 119.5 126.3 136.0 110.9 120.6 127.7 136.5 113.9 122.7 127.1 136.3 112.7 122.6 128.5 138.8 112.2 122.1 128.9 139.4 112.3 122.9 129.4 140.2 112.3 125.3 122.0 125.5 135.0 137.1 126.3 138.8 127.6 128. 145.2 139. 437.3 336.3 235.9 100.6 101.3 445.7 342.7 238.2 104.6 103.0 446.9 343.9 239.5 104.5 102.7 122.5 129.2 111.9 120.9 9.34 117.7 118.6 120.1 120.9 121.1 1.82 129.7 130.8 134.0 133.2 134.1 128.6 129.7 138.0 141.4 Gross value of products in market structure (In billions of 1963 dollars) Products, total Final products Consumer goods Equipment Intermediate products. For NOTE see p. A 61. 418.7 421.7 430.0 322.2 324.8 331.6 227.1 228.2 233.1 95.0 96.4 98.5 96.7 96.9 98.3 435.7 334.7 234.4 100.2 100.8 442.8 340.5 237.6 103.0 102.2 446.2 343.7 238.9 104.8 102.3 449.7 346.6 241.1 105.6 103.1 451.8 347.8 241.3 106.6 104.3 Aug OCTOBER 1973 • INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) Grouping 1967 proportion 1972 average 88.55 52.33 36.22 11.45 6.37 5.08 1972 1973 June r J u l y Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 114.0 108.4 122.1 124.1 108.8 143.4 115.4 109.7 123.6 124.8 108.8 144.9 117.0 111.6 124.8 126.5 110.8 146.4 118.5 113.8 125.2 126.6 110.2 147.1 119.5 115.3 125.6 126.7 109.7 148.2 120.4 116.3 126.2 126.1 108.2 148.5 121.4 117.5 127.0 127.3 108.5 151.0 122.7 118.7 128.4 128.0 110.2 150.5 123.4 119.9 128.6 127.3 109.5 149.6 123.8 120.6 128.4 126.6 109.0 148.7 124.9 121.8 129.3 127.0 109.1 149.5 125.6 123.0 129.3 128.2 109.5 151.5 126.6 123.5 131.0 130.3 111.1 154.7 125.9 122.5 130.8 131.2 112.4 154.9 12.55 6.61 4.23 5.94 113.9 113.1 107.1 114.8 115.3 114.3 108.1 116.6 118.8 119.7 114.7 118.0 121.3 122.1 118.4 120.4 122.6 122.9 119.2 122.2 124.0 125.4 120.0 122.3 124.3 123.1 118.6 125.7 125.4 124.7 120.0 126.2 125.8 123.5 117.5 128.4 127.3 125.8 119.7 128.9 128.1 126.1 119.8 130.3 128.7 124.5 119.9 133.4 130.7 128.0 120.9 133.9 130.7 126.9 119.2 134.8 32.44 Machinery and allied goods 17.39 Machinery 9.17 Nonelectrical machinery 8.22 Electrical machinery 9.29 Transportation equipment 4.56 Motor vehicles and parts Aerospace and misc. trans, e q . . . 4.73 2.07 Instruments Ordnance, private and Govt 3.69 103.5 107.5 105.7 109.6 99.0 123.1 75.8 120.2 86.0 104.6 109.7 109.8 109.5 98.1 121.0 76.1 122.7 86.5 106.0 111.8 111.7 112.0 99.5 122.9 77.2 124.3 84.8 108.2 114.0 113.5 114.7 102.7 128.7 77.6 125.0 85.2 110.1 115.7 115.3 116.1 105.0 132.3 78.7 125.1 87.3 111.2 116.8 114.4 119.6 106.6 135.9 78.3 126.6 87.8 112.5 118.4 116.3 120.8 107.6 139.3 77.1 130.1 87.0 113.7 119.1 117.3 121.2 110.0 141.5 79.7 131.9 87.6 115.1 121.4 119.0 123.9 110.3 141.0 80.8 133.8 87.1 115.7 122.6 121.5 123.8 110.0 140.1 81.1 134.7 86.4 117.3 124.7 124.0 125.4 111.0 140.9 82.2 138.9 85.4 118.8 126.9 126.1 127.8 112.2 143.3 82.2 140.2 86.7 119.0 126.8 126.2 127.4 112.1 144.1 81.3 141.3 86.7 117.2 126.9 127.2 126.5 105.8 131.1 81.6 141.9 85.9 Manufacturing Durable Nondurable Mining and utilities Mining Utilities Aug. Durable manufactures Primary metals Iron and steel, subtotal Fabricated metal products Lumber, clay, and glass Lumber and products Clay, glass, and stone products.... 4.44 120.0 121.0 121.9 124.9 124.5 123.7 126.4 127.3 129.1 129.9 130.3 129.2 129.2 129.1 1.65 122.4 121.8 123.6 127.3 126.8 122.7 125.8 128.5 129.5 129.1 127.5 126.6 125.3 127.7 2.79 118.6 120.4 120.9 123.5 123.1 124.3 126.8 126.6 128.9 130.4 132.0 130.5 131.5 130.0 Furniture and miscellaneous Furniture and fixtures Miscellaneous manufactures 2.90 122.7 126.2 126.6 126.9 126.6 127.7 130.3 132.8 133.4 133.1 136.0 135.4 134.7 138.4 1.38 113.5 116.4 116.7 117.6 118.5 120.3 119.1 122.3 122.8 123.8 126.5 126.5 127.5 129.4 1.52 131.1 135.1 135.6 135.4 134.0 134.5 140.5 142.4 143.0 141.6 144.5 143.6 141.3 146.6 Nondurable manufactures Apparel products Leather and products 6.90 108.1 109.7 111.2 112.1 113.0 113.2 113.4 114.4 114.6 114.0 113.3 115.0 114.1 114.7 2.69 117.4 120.8 121. J 123.2 125.7 124.2 125.3 126.1 127.1 126.1 127.2 129.2 128.0 128.3 3.33 105.7 106.8 108.3 109.5 110.1 111.1 112.3 112.6 112.4 111.7 110.0 111.0 112.1 .88 88.9 86.5 91.6 88.0 85.9 87.4 81.3 85.1 85.0 86.8 83.0 86.6 79.2 80.9 Paper and printing Paper and products Printing and publishing 7.92 116.1 117.6 117.7 119.9 120.0 120.3 120.0 121.5 122.4 120.8 122.0 122.8 125.1 124.2 3.18 128.2 130.5 130.1 131.1 131.3 133.6 131.8 134.1 137.1 133.6 135.1 134.6 135.3 134.5 4.74 107.9 108.7 109.4 112.4 112.6 111.3 112.1 113.0 112.4 112.2 113.2 114.8 118.3 117.2 Textiles, apparel, and leather Chemicals, petroleum, and rubber.... 11.92 7.86 Chemicals and products 1.80 Petroleum products 2.26 Rubber and plastics products Foods and tobacco Foods Tobacco products 137.8 139.6 120.6 145.5 140.0 141.3 121.0 150.6 142.2 144.8 121.3 149.8 141.6 143.9 123.8 148.4 142.0 143.2 124.4 151.5 143.8 144.7 125.5 154.7 145.5 146.4 127.3 157.1 146.3 147.2 124.1 160.4 146.3 146.8 123.5 163.4 147.9 147.8 126.9 165.1 150.2 150.2 128.5 166.8 149.8 150.4 129.7 163.9 152.2 152.4 129.6 169.6 152.0 152.0 128.4 171.0 9.48 117.6 118.3 118.6 118.5 119.0 118.5 119.6 122.0 121.5 120.7 121.5 119.5 121.8 121.3 8.81 118.6 119.0 119.8 119.0 119.4 119.7 120.5 122.9 121.8 121.3 122.4 120.3 123.1 122.4 .67 103.7 108.5 103.0 111.8 112.5 102.5 107.9 110.3 118.1 112.9 111.2 108.1 105.3 Mining Metal, stone, and earth minerals Metal mining Stone and earth minerals 1.26 107.3 106.8 110.6 110.4 112.6 113.7 116.4 117.6 117.0 116.8 116.2 111.8 117.7 119.1 .51 120.9 118.6 124.8 122.8 124.7 128.1 130.3 131.9 127.8 128.5 127.0 121.6 128.9 129.5 .75 98.1 98.5 101.1 102.0 104.4 104.0 106.9 107.8 109.4 108.8 108.8 105.2 110.1 1J2.0 Coal, oil, and gas Coal Oil and gas extraction 5.11 109.2 109.3 110.8 110.1 109.0 106.8 106.5 108.4 107.6 107.1 107.3 108.9 109.5 110.7 .69 104.2 97.8 105.2 100.8 102.6 98.6 99.1 103.9 105.7 99.9 100.9 108.0 109.0 104.2 4.42 110.0 111.1 111.8 111.5 110.0 108.2 107.7 109.1 107.9 108.3 108.4 109.1 109.5 111.7 Utilities Electric F o r NOTE s e e p . A - 6 1 . 3.91 149.4 151.3 153.1 1.17 123.4 154.2 155.2 155.6 159.1 158.3 157.4 156.2 156.8 159.7 163.6 164.0 A 60 INDUSTRIAL PRODUCTION: N.S.A. • OCTOBER 1973 MARKET GROUPINGS (1967 = 1967 Grouping Total index Products, total Final products Consumer goods Equipment Intermediate products Materials 1972 proportion average 100.0 115.2 100) 1972 Aug. Sept. Oct. 116.4 121.6 122.7 1973 Nov. 120.4 Dec. Jan. Feb. Mar. Apr. May 117.3 118.9 123.6 124.6 124.5 125.6 June r J u l y 128.9 122.4 Aug. 126.9 62.21 113.8 116.1 121.8 121.9 118.5 114.2 116.6 120.6 121.8 121.2 122.4 127.3 121.7 125.3 48.95 111.9 113.7 119.9 119.7 116.1 112.0 115.3 119.1 120.0 118.9 120.0 125.1 118.9 122.2 28.53 20.42 13.26 123.6 95.5 121.1 127.3 94.8 125.1 134.3 99.8 128.9 133.2 100.8 130.1 126.8 101.1 127.5 120.2 100.5 122.2 125.3 101.4 121.2 129.2 104.9 126.1 130.8 105.0 128.5 129.2 104.6 129.6 130.3 105.5 131.4 142.7 147.4 136.4 109.2 135.2 128.7 105.3 132.3 133.7 105.9 137.0 126.8 99.9 69.1 37.9 117.4 117.0 121.3 124.0 123.5 122.5 122.8 128.6 129.2 129.9 130.9 131.4 123.5 129.5 Consumer goods 119.5 108.0 133.9 137.2 140.2 134.8 14 7.0 141.9 125.1 133.3 140.6 143.5 141.3 78.4 164.9 120.6 169.2 135.6 168.9 132.9 159.0 123.9 109.8 150.9 138.5 134.8 145.7 149.1 144.6 157.7 151.5 143.9 166.0 147.6 135.8 170.2 124.5 126.0 132.0 136.3 130.8 125.8 130.3 135.8 138.9 1.41 .92 .49 1.08 2.53 124.6 144.5 87.5 132.6 121.0 112.3 129.1 80.9 138.4 128.3 127.7 143.5 98.2 139.6 131.1 142.7 164.9 101.2 139.7 131.3 129.1 143.5 102.2 140.8 127.6 122.0 134.6 98.4 140.0 121.9 139.7 153.7 113.6 141.0 120.4 142.6 157.0 115.7 150.2 125.9 Nondurable consumer goods 20.67 Clothing 4.32 Consumer staples 16.34 Consumer foods and tobacco.... 8 . 3 7 122.8 130.2 134.4 130.6 123.7 118.4 122.2 109.7 126.2 117.5 116.5 133.8 124.2 119.5 138.3 128.9 118.0 133.9 125.9 112.5 126.7 119.3 103.0 122.5 111.6 105.9 126.5 113.8 135.3 144.6 114.8 139.5 147.8 143.8 149.1 121.2 152.2 165.1 148.2 162.4 122. § 151.4 163.5 142.2 157.4 124.9 140.1 146.4 134.4 145.0 118.5 135.1 139.4 134.0 133.8 113.2 145.8 154.5 12.74 106.1 6.77 1 0 2 . 5 Automotive products Autos Auto parts and allied goods Appliances, TV, and home audio. Appliances and A/C TV and home audio. Carpeting and furniture Misc. home goods Nonfood staples Consumer chemical products.. Consumer paper products Consumer fuel and lighting... Residential utilities 7.86 125.7 2.84 1.87 .97 127.7 112.7 156.5 5.02 7.98 2.64 1.91 3.43 2.25 147.5 128.1 138.2 165.0 154.4 148.5 165.8 124.3 108.5 154.5 137.7 140.1 143.6 130.3 149.0 166.2 116.9 149.1 129.0 148.2 165.6 115.4 146.1 128.2 142.0 148.5 166.1 115.7 146.3 132.7 146.8 162.7 117.1 151.1 138.6 128.9 148.7 91.9 130.9 130.9 136.1 135.7 136.9 154.5 140.0 124.9 126.0 124.6 125.6 132.2 116.6 127.1 117.0 128.9 136.4 120.0 127.6 118.4 119.3 126.0 117.8 115.3 128.3 120.7 122.4 134.8 123.8 104.3 135.4 120.9 140.4 127.5 139.9 139.9 112.4 155.3 168.5 137.8 140.2 116.2 148.0 160.1 137.2 147.3 115.5 141.6 151.8 134.7 146.9 117.8 134.6 140.4 136.2 154.0 117.0 133.2 135.5 146.3 164.2 125.1 144.4 148.7 150.6 158.1 124.1 159.5 172.3 154.0 154.2 131.1 166.4 182.4 120.5 117.9 121.8 121.0 116.2 109.5 141.7 122.6 113.8 138.2 158.9 Equipment Industrial equipment Building and mining equip Manufacturing equipment Power equipment Commercial, transit, farm eq Commercial equipment Transit equipment Farm equipment Defense and space equipment Military products 105.4 113.1 114.5 113.7 112.0 114.4 119.6 119.8 121.1 103.5 106.5 94.7 123.7 111.2 111.7 102.0 134.6 111.2 113.0 102.3 132.9 126.4 104.8 92.7 125.6 110.3 112.1 100.2 134.8 119.7 1.45 3.85 1.47 110.6 114.3 101.7 130.2 111.6 112.0 103.4 132.7 116.4 118.6 108.9 133.9 116.8 117.2 109.6 135.3 116.8 115.7 109.3 137.3 117.9 115.6 111.4 137.1 122.6 120.2 116.2 141.8 5.97 3.30 2.00 .67 110.3 118.4 96.8 110.5 107.6 122.4 85.2 101.0 116.2 128.1 95.0 120.8 118.3 126.0 104.0 123.2 116.5 125.2 104.6 109.0 113.6 122.3 99.2 113.2 117.6 123.0 108.1 118.9 123.3 127.8 114.8 126.2 123.2 126.9 114.9 129.7 122.9 129.1 110.8 128.2 124.7 131.6 112.0 128.6 130.7 140.1 113.8 134.9 123.5 139.3 102.6 108.2 122.6 139.8 97.3 113.0 7.68 77.9 77.7 79.2 80.2 81.5 79.8 80.5 80.4 79.5 79.6 80.1 77.2 79.5 78.0 5.15 79.1 81.7 80.7 82.4 81.2 80.0 81.9 81.8 80.8 80.3 81.3 80.5 79.7 80.0 5.93 7.34 120.8 121.3 121.8 127.7 127.3 130.2 131.0 129.3 128.3 126.9 121.9 122.5 120.5 121.7 128.0 124.5 131.9 125.7 135.0 125.2 136.4 127.4 140.7 130.7 132.3 132.3 137.5 136.6 Durable goods materials Consumer durable parts Equipment parts Durable materials n.e.c 20.91 113.5 111.5 118.8 121.3 121.0 121.8 121.6 128.8 4.75 5.41 10.75 113.8 99.3 120.6 108.5 131.2 132.2 120.5 107.2 128.7 122.1 108.7 126.7 130.7 132.8 126.8 111.0 125.1 126.8 110.8 124.7 124.1 129.3 114.7 135.7 129.4 119.7 118.2 104.1 126.4 129.4 117.5 137.9 130.0 117.4 138.7 128.8 118.7 140.6 130.5 120.7 139.9 120.6 115.0 130.2 123.1 119.1 137.4 Nondurable goods materials Textile, paper, and chem. mat Nondurable materials n.e.c Fuel and power, industrial 13.99 122.5 124.3 124.7 128.2 127.1 123.9 124.5 129.2 8.58 5.41 2.89 128.2 129.2 111.9 120.9 131.4 113.0 121.3 129.4 130.7 130.8 131.9 113.2 123.5 135.7 116.4 123.3 135.6 113.7 123.6 123.3 131.8 111.4 120.3 133.7 110.0 122.6 139.6 112.8 124.5 130.3 139.0 111.2 123.2 140.9 122.3 142.2 112.6 122.7 142.2 112.7 123.9 131.9 109.6 119.9 141.6 112.5 126.8 9.34 1.82 117.7 129.7 121.6 134.6 126.2 136.9 127.8 141.3 122.3 133.3 115.3 125.0 119.0 129.4 126.9 140.5 130.2 142.6 129.2 139.4 128.6 140.9 133.8 145.8 118.3 130.7 132.5 137.5 Intermediate products Construction products Misc. intermediate products Materials 97.7 111.1 Supplementary groups Home goods and clothing Containers F o r NOTE s e e p . A - 6 1 . OCTOBER 1973 • INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967= 1967 Grouping 1972 proportion average 88.55 52.33 36.22 100) 1972 1973 May June r July 125.8 123.2 128.9 121.2 125.3 125.8 133.3 117.7 126.2 123.6 128.2 119.4 133.8 133.1 110.7 139.9 110.9 149.9 108.4 164.1 138.8 113.2 131.7 131.2 130.5 121.8 126.6 133.9 128.5 129.3 131.7 125.8 130.7 127.7 121.1 133.7 116.3 112.7 127.9 122.8 117.8 130.8 117.1 116.7 117.9 121.7 114.0 112.7 123.3 122.2 124.5 114.0 147.3 82.0 131.5 87.8 123.5 122.3 124.8 112.8 144.9 81.8 130.5 86.4 124.9 124.0 125.9 113.4 145.6 82.4 137.5 85.6 129.4 129.6 129.2 116.3 151.2 82.7 143.1 87.1 122.0 123.3 120.5 104.0 129.0 79.8 141.3 86.0 124.6 123.8 125.5 94.1 108.4 80.4 144.9 84.9 127.2 130.9 132.8 135.1 128.4 134.9 130.5 125.3 131.3 130.7 128.6 135.3 132.3 136.8 123.2 131.5 132.0 136.6 134.3 133.9 132.4 132.5 137.2 124.6 139.8 128.7 139.4 127.3 139.9 124.2 139.9 123.0 141.2 125.7 147.6 110.8 137.3 128.6 150.0 106.4 115.4 118.2 116.9 113.8 120.4 101.7 119.3 117.8 103.9 80.6 126.1 113.7 88.7 129.6 116.3 89.9 128.7 115.6 85.8 129.1 110.0 81.3 135.0 117.4 87.1 111.4 102.6 68.7 132.9 113.8 113.2 118.7 120.4 121.4 122.8 125.7 123.2 133.7 114.7 123.6 107.3 130.2 101.7 128.0 137.5 106.0 138.9 107.9 137.6 110.6 138.5 112.2 138.4 117.2 127.6 120.2 134.2 123.9 145.6 143.0 140.3 141.1 144.8 145.6 147.6 150.6 146.8 125.8 157.2 143.2 124.3 157.0 139.5 125.2 155.0 140.5 123.9 156.8 143.8 120.9 167.3 145.0 119.5 168.3 148.8 121.3 164.4 152.2 127.0 164.0 153.8 155.5 147.6 150.7 152.3 153.2 132.8 164.6 133.1 148.1 133.4 164.2 127.7 126.4 120.5 113.8 114.9 117.4 118.1 117.1 120.0 123.1 119.7 126.9 120.4 121.0 113.4 125.9 129.1 109.4 115.9 86.0 115.4 107.7 117.7 113.5 118.1 118.3 117.8 108.0 120.7 110.1 123.7 115.6 121.7 93.9 126.8 112.1 116.9 114.4 110.8 108.7 103.4 105.7 109.0 125.7 125.3 115.0 107.9 115.0 104.4 119.9 133.5 105.6 123.2 108.5 116.4 128.4 100.9 124.0 114.0 96.2 120.6 95.5 118.7 102.4 127.2 109.0 143.4 113.6 144.0 112.6 134.4 109.9 137.7 114.7 109.2 109.4 110.4 110.5 110.5 109.3 107.9 110.1 107.2 106.5 107.0 107.3 105.6 104.2 110.0 104.2 110.2 107.9 110.8 107.8 110.9 104.9 111.4 98.0 98.0 104.2 111.1 1 0 9 . 5 104.3 111.0 1 0 7 . 6 101.7 107.2 102.9 107.7 103.2 108.0 89.3 108.1 110.5 111.0 149.4 123.4 166.0 165.4 152.0 145.3 151.6 158.5 145.4 144.6 157.5 175.9 Dec. Jan. Feb. Mar. Apr. 120.0 116.3 117.6 123.2 124.6 124.7 115.3 126.7 113.3 120.6 114.9 121.5 121.0 126.3 122.5 127.7 129.5 126.5 123.8 125.2 122.4 128.0 128.6 127.5 125.0 122.7 111.3 145.5 110.6 140.5 109.2 145.4 107.0 155.7 109.2 150.6 107.6 146.8 108.5 140.5 117.4 121.1 120.3 120.5 120.4 130.0 132.1 115.4 108.3 119.7 119.4 113.4 123.0 117.1 110.9 123.9 118.9 114.2 122.3 118.5 112.3 122.6 131.3 125.8 128.5 133.8 128.3 130.1 100.3 108.6 111.3 110.6 109.0 111.8 116.0 106.8 106.8 106.8 88.6 102.7 75.0 125.3 85.5 114.7 113.6 116.0 102.1 127.4 77.8 129.5 84.5 117.1 114.3 120.3 107.2 137.5 78.0 128.9 84.6 115.0 113.1 117.1 108.0 138.3 78.9 126.5 87.4 114.6 112.5 117.0 103.2 129.2 78.1 125.3 88.2 116.9 114.0 120.2 108.7 142.6 76.0 126.3 87.5 121.8 121.2 122.4 113.5 148.6 79.6 128.1 87.9 120.0 126.4 127.3 130.9 124.5 115.4 115.3 123.2 122.4 118.6 126.1 126.5 129.0 126.3 133.0 129.7 124.8 124.3 111.9 117.5 115.6 115.1 128.4 120.1 2.90 122.7 127.5 131.0 131.1 131.3 127.6 126.1 1.38 1.52 113.5 131.1 115.7 138.2 117.9 142.9 118.8 142.2 122.1 139.6 121.5 133.2 121.6 130.2 Textiles, apparel, and leather Textile mill products Apparel products Leather and products 6.90 108.1 114.1 115.2 115.3 112.0 103.9 2.69 3.33 .88 117.4 105.7 88.9 125.2 111.1 91.3 123.9 114.3 92.0 125.7 113.0 92.1 125.1 108.2 86.5 117.0 98.7 83.3 Paper and printing Paper and products Printing and publishing 7.92 116 A 121.1 122.5 126.3 122.3 3.18 4.74 128.2 J07.9 130.2 114.9 128.4 118.6 137.9 118.5 11.92 137.8 140.3 145.9 7.86 1.80 2.26 139.6 120.6 145.5 142.4 126.0 144.6 148.6 126.0 152.5 9.48 117.6 123.0 8.81 .67 118.6 103.7 123.5 116.7 1.26 107.3 .51 .75 120.9 98.1 5.11 .69 4.42 3.91 1.17 Aug. Sept. Oct. Nov. 114.0 114.6 120.3 122.2 108.4 122.1 106.3 126.6 113.5 130.2 116.4 130.6 11.45 124.1 130.4 131.2 6.37 5.08 108.8 143.4 109.9 156.1 111.7 155.8 12.55 113.9 110.0 6.61 4.23 5.94 113.1 107.1 114.8 107.3 101.4 113.1 32.44 17.39 Machinery 9.17 Nonelectrical machinery 8.22 Electrical machinery 9.29 Transportation equipment 4.56 Motor vehicles and parts Aerospace and misc. trans, e q . . . 4 . 7 3 2.07 Instruments 3.69 Ordnance, private and Govt 103.5 107.5 105.7 109.6 99.0 123.1 75.8 120.2 86.0 Lumber, clay, and glass Lumber and products Clay, glass, and stone products.... 4.44 1.65 2.79 Furniture and miscellaneous Furniture and fixtures Miscellaneous manufactures Manufacturing, total Durable Nondurable Mining and utilities Mining Utilities Aug. 170.9 Durable manufactures Primary and fabricated metals Primary metals Iron and steel, subtotal Fabricated metal products Nondurable manufactures Chemicals, petroleum, and rubber Chemicals and products Petroleum products Rubber and plastics products Foods and tobacco Tobacco products 85^4 Mining Metal mining Stone and earth minerals Coal, oil, and gas Coal 110.4 Utilities Electric Gas NOTE.—Pages A-58 and A-59 include revisions stemming from changes in seasonal adjustment factors, and pages A-60 and A-61 include revisions in some series that are not seasonally adjusted, beginning in March 1972 in both instances. Data for the complete year of 1972 are available in a pamphlet Industrial Production Indexes 1972 from Pub- 165.1 153.8 184.8 lications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Published groupings include series and subtotals not shown separately. Figures for individual series and subtotals are published in the monthly Business Indexes release. A 62 BUSINESS ACTIVITY; CONSTRUCTION • OCTOBER 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manufacturing Industry Market Period Products Total Final Inter- Matemediate rials Consumer Equipgoods ment Total Total Manufacturing Capacity utilization in mfg. (1967 output = 100) Construction contracts Nonagricultural employment— Total i Employment Prices 2 Total retail sales 3 Payrolls 4 Consumer Wholesale commodity 1954. 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955. 1956. 1957. 1958. 1959. 58.5 61.1 61.9 57.9 64.8 56.6 59.7 61.1 58.6 64.4 54.9 58.2 59.9 57.1 62.7 59.5 61.7 63.2 62.6 68.7 48.9 53.7 55.9 50.0 54.9 62.6 65.3 65.3 63.9 70.5 61.5 63.1 63.1 56.8 65.5 58.2 60.5 61.2 56.9 64.1 90.0 88.2 84.5 75.1 81.4 76.9 79.6 80.3 78.0 81.0 92.9 93.9 92.2 83.9 88.1 61.1 64.6 65.4 60.3 67.8 59 61 64 64 69 80.2 81.4 84.3 86.6 87.3 87.8 90.7 93.3 94.6 94.8 1960, 1961. 1962. 1963 1964. 66.2 66.7 72.2 76.5 81.7 66.2 66.9 72.1 76.2 81.2 64.8 65.3 70.8 74.9 79.6 71.3 72.8 77.7 82.0 86.8 56.4 55.6 61.9 65.6 70.1 71.0 72.4 76.9 81.1 87.3 66.4 66.4 72.4 77.0 82.6 65.4 65.6 71.4 75.8 81.2 80.1 77.6 81.4 83.0 85.5 86.1 89.4 82.4 82.1 84.4 86.1 88.6 88.0 84.5 87.3 87.8 89.3 68.8 68.0 73.3 76.0 80.1 70 70 75 79 83 88.7 89.6 90.6 91.7 92.9 94.9 94.5 94.8 94.5 94.7 1965. 1966. 1967. 1968. 1969. 1970. 1971 1972 89.2 97.9 100.0 105.7 110.7 106.7 106.8 115.2 88.1 96.8 100.0 105.8 109.7 106.0 106.4 113.8 86.8 96.1 100.0 105.8 109.0 104.5 104.7 111.9 93.0 98.6 100.0 106.6 111.1 110.3 115.7 123.6 78.7 93.0 100.0 104.7 106.1 96.3 89.4 95.5 93.0 99.2 100.0 105.7 112.0 111.7 112.6 121.1 91.0 99.8 100.0 105.7 112.4 107.7 107.4 117.4 89.1 98.3 100.0 105.7 110.5 105.2 105.2 114.0 89.0 91.9 87.9 87.7 86.5 78.3 75.0 '78.6 93.2 94.8 100.0 113.2 123.7 123.1 145.4 165.3 92.3 97.1 100.0 103.1 106.7 107.2 107.3 110.5 93.9 99.9 100.0 101.4 103.2 98.0 93 9 96.7 88.1 97.8 100.0 108.3 116.6 114.1 116.3 130.2 91 97 100 109 114 120 122 142 94.5 97.2 100.0 104.2 109.8 116.3 121.2 125.3 96.6 99.8 100.0 102.5 106.5 110.4 113.9 119.8 1972-—Aug Sept Oct Nov Dec 116.3 117.6 119.2 120.2 121.1 114.7 115.6 117.3 118.6 119.1 112.6 113.6 115.3 116.3 116.8 124.3 125.2 127.0 127.4 127.7 96.3 97.7 98.9 100.7 101.5 122.3 122.8 124.7 127.6 127.7 118.8 120.9 122.3 122.8 124.4 115.4 117.0 118.5 119.5 120.4 579.4 180.0 187.0 171.0 177.0 163.0 110.9 111.3 111.7 112.1 112.4 97.0 97.5 98.4 99.1 99.6 131.2 133.8 136.1 139.0 139.3 145 144 149 148 151 125.7 126.2 126.6 126.9 127.3 119.9 120.2 120.0 120.7 122.9 122.2 120.7 118.6 129.8 102.9 128.4 123.4 121.5 119.3 130.2 104.1 129.5 123.7 121.7 119.6 130.8 104.1 129.4 124.1 122.0 120.0 130.9 104.7 129.3 124.8 122.9 120.8 131.8 105.7 130.5 125.6 '123.7 '121.3 '131.9 '106.6 '132.0 '126.7 '124.6 '122.3 '132.8 '107.4 '133.1 '126.5 '123.6 '120.8 '130.4 '107 5 '133.7 127.4 124.6 121.9 131.7 108.4 134.4 124.5 126.7 127.0 127.7 128.3 '129.0 '130.0 '131.3 132.2 121.4 122.7 123.4 123.8 124.9 '125.6 '126.6 '125.9 126.9 181.0 191.0 193.0 177.0 '83.3 173.0 183.0 177.0 83.4 2 0 6 . 0 112.7 113.5 113.8 114.0 114.4 114.7 '114.6 '114.9 115.2 99.9 100.7 101.0 101.5 101.7 '102.1 '101.8 '102.1 102.0 139.8 142.9 142.6 144.8 144.9 145.3 '146.3 '146.4 149.6 156 158 160 157 160 157 163 161 160 127.7 128.6 129.8 130.7 131.5 132.4 132.7 135.1 124.5 126.9 129.7 130.7 133.4 136.7 134.9 142.7 140.2 1973-—Jan Feb Mar Apr May June July Aug Sept.f 1 2 3 4 Employees only: excludes personnel in the Armed Forces. Production workers only. F.R. index based on Census Bureau figures. Prices are not seasonally adjusted. Latest figure is final. Figure is for 3rd quarter 1972. 81.5 82.8 Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept. of Commerce. Construction contracts: F. W. Dodge Co. monthly index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. NOTE.—All series: Data are seasonally adjusted unless otherwise noted. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 Type of ownership and type of construction 1971 1973 1972 July Total construction 1 80,188 91,877 Aug Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July 8,054 8,875 8,197 8,225 7,248 6,464 6,795 6,839 8,644 8,814 9,428 9,910 9,228 By type of ownership: Public Private i 23,927 24,404 2,517 56,261 67,473 5,537 By type of construction: Residential building 1 Nonresidential building Nonbuilding 34,754 45,473 3,810 4,671 4,135 4,298 3,663 3,120 3,195 3,277 4,643 4,512 4,754 4,612 4 . 2 2 4 25,574 27,327 2,461 2,458 2,378 2,384 2,184 2,215 2,420 2,229 2,707 2,634 2,629 2,976 2,991 19,282 19,077 1,843 1,746 1,684 1,544 1,402 1,132 1,180 1,333 1,294 1,668 2,045 2,322 2,013 Private housing units authorized... (In thousands, S.A., A.R.) 1,925 2,230 2,195 2,466 2,017 1,668 1,785 1,650 1,918 6,409 6,181 6,557 5,462 4,814 4,877 2,281 2,366 1 Because of improved procedures for collecting data for 1 -family homes, some totals are not strictly comparable with those prior to 1968. To improve comparability, earlier levels may be raised by approximately 3 per cent for total and private construction, in each case, and by 8 per cent for residential building. NOTE.—Dollar value of construction contracts as reported by the F. W. 2,318 2,226 2,399 2,233 1,717 2,046 5,122 6,599 2,209 2,129 2,071 2,359 2,995 2,581 6,743 7,069 6,916 6,647 1,939 1,838 2,030 1,780 Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly data exceed annual totals because adjustments—negative—are made in accumulated monthly data after original figures have been published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems; 1971 data are for 13,000 reporting areas. OCTOBER 1973 • CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total Buildings Total Residential Commercial Other buildings i Conservation & Other 2 development Highway Other Industrial Military Total 59,965 64,563 67,413 73,412 76,002 42,096 45,206 47,030 51,350 51,995 25,150 27,874 28,010 27,934 25,715 16,946 17,332 19,020 23,416 26,280 2,842 2,906 3,565 5,118 6,679 5,144 4,995 5,396 6,739 6,879 3,631 3,745 3,994 4,735 5,037 5,329 5,686 6,065 6,824 7,685 17,869 19,357 20,383 22,062 24,007 1,266 1,179 910 830 727 6,365 7,084 7,133 7,550 8,405 1,523 1,694 1,750 2,019 2,194 8,715 9,400 10,590 11,663 12,681 1967 1968 1969 197 0 197 1 197 2 77,503 86,626 93,368 94,167 109,238 123,836 51,967 59,021 65,404 66,071 79,367 93,640 25,568 30,565 33,200 31,864 43,268 54,186 26,399 28,456 32,204 34,207 36.099 39,454 6,131 6,021 6,783 6,538 5,423 4,676 6,982 7,761 9,401 9,754 11,619 13,462 4,993 4.382 4,971 5,125 5,437 5,898 8,293 10.292 11,049 12,790 13,620 13,418 25,536 27,605 27,964 28,096 29,871 30,196 695 808 879 718 901 1,080 8,591 9,321 9,250 9,981 10,658 10,448 2,124 1,973 1,783 1,908 2,095 2,172 14,126 15,503 4,822 4,832 4,820 4,996 1972—Sept.. Oct... Nov.. Dec.. 125,146 128,513 126,831 131,550 94,520 96,201 97,506 98,450 55,536 56,361 57,167 57,545 38,984 39,840 40,339 40,905 4,519 4,345 4,617 4,765 13,442 13,720 13,607 13,865 5,730 6,197 6,235 6,220 15.293 15,578 15,880 16,055 30,626 32,312 29,325 33,100 1,050 1,076 1,200 1,188 10,443 10,642 10,585 11,045 2,140 2,205 2,042 2,065 16,993 18,389 15,498 18,802 1973—Jan. r . Feb.'. Mar. r Apr. r May r June r July'. Aug. r 135,503 136,148 137,960 135,511 136,453 135,878 138,293 137,698 101,801 103,860 104,331 102,951 104,104 104,906 106,896 106,632 59,112 61,219 61,240 59,851 59,849 60,116 60,195 59,921 42,689 42,641 43,091 43.100 44,255 44,790 46,701 46,711 5,292 5,180 5,479 5,287 5,338 5,928 6,340 6,707 15,001 14,873 15,071 15,473 16,118 15,704 16,110 15,836 6,002 6,145 6,179 6,282 6,251 6.383 6,492 6,261 16,394 16,443 16,362 16,057 16,547 16,775 17,759 17,907 33,702 32,288 33,629 32,560 32,349 30,972 31,397 31,066 1,221 1,422 1,303 1,158 1,277 1,162 1,341 1,047 1962 3 1963 « 1964 1965 1966 1 Includes religious, educational, hospital, institutional, and other buildings. 2 Sewer and water, formerly shown separately, now included in "Other." 3 Beginning July 1962, reflects inclusion of new series affecting most private nonresidential groups. 1,999 1,712 2,490 1,675 2,291 1,870 1,679 1,825 4 Beginning 1963, reflects inclusion of new series under "Public" (for State and local govt, activity only). NOTE.—Census Bureau data; monthly series at seasonally adjusted annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R.) Private and public (N.S.A.) Region Mobile home shipments (N.S.A.) Type of structure Total North- North Central east Governmentunderwritten (N.S.A.) South West family 5- or 2- to 4- morefamily family Total Private 1- Public Total 196 3 196 4 196 5 196 6 1,603 1,529 1,473 1,165 261 254 270 206 328 340 362 288 591 578 575 472 430 357 266 198 1,012 970 964 778 589 450 108 87 422 61 325 1,635 1,561 1,510 1,196 1,603 1,529 1,473 1,165 292 264 246 195 221 205 197 158 71 59 49 37 151 191 216 217 196 7 196 8 196 9 197 0 197 1 197 2 1,292 1,508 1,467 1,434 2,052 2,357 215 227 206 520 588 612 869 1,057 220 294 324 310 486 527 844 900 814 813 1,151 1,309 72 81 85 85 120 141 376 527 571 536 781 906 1,322 1,546 1,500 1,469 2,084 2,379 1,292 1,508 1,467 1,434 2,052 2,357 232 283 284 482 621 475 180 264 330 337 369 349 294 434 443 227 233 421 528 371 53 56 51 61 93 104 240 318 413 401 497 576 1972—Aug.. Sept.. Oct... Nov.. Dec.. 2,424 2,426 2,446 2,395 2,369 349 355 372 353 486 475 474 469 400 330 1,014 1,096 1,125 1,106 1,080 586 501 480 536 473 1,373 1,382 1,315 1,324 1,207 137 125 153 134 128 914 920 978 937 1,034 231 204 218 187 153 229 203 217 186 151 40 37 34 29 48 30 28 25 21 42 10 9 9 52 49 54 50 38 1973—Jan... Feb.. Mar.. Apr.. May. June r July'. Aug.. 2,497 2,456 2,260 2,123 2,413 2,128 2,176 2,045 348 366 297 292 267 370 226 277 599 571 415 387 595 474 489 476 1,086 1,087 1,142 890 999 837 1,060 818 464 434 406 554 552 447 401 474 1,450 1,372 1,245 1,202 1,271 1,124 1,238 1,126 163 123 123 131 162 129 153 100 884 961 892 790 980 875 785 819 147 140 147 138 200 205 234 203 201 193 19 21 27 27 29 27 20 12 14 19 18 218 618 NOTE.—Starts are Census Bureau series (including farm starts) except for Govt.-underwritten, which are from Federal Housing Admin, and Veterans Admin, and represent units started, including rehabilitation 201 205 234 203 202 196 18 17 12 41 43 57 62 57 57 50 units under FHA, based on field office reports of first compliance inspections. Data may not add to totals because of rounding. Mobile home shipments are as reported by Mobile Homes Manufacturers Assn. A 64 EMPLOYMENT • OCTOBER 1973 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total noninstitutional population (N.S.A.) Period Not in labor force (N.S.A.) Total labor force (S.A.) Unemployed Unemployment rate 2 (percent; S.A.) Employed 1 Total Total In nonagricultural industries In agriculture 1967 196 8 196 9 197 0 197 1 1972 133,319 135,562 137,841 140,182 142,596 145,775 52,527 53,291 53,602 54,280 55,666 56,785 80,793 82,272 84,240 85,903 86,929 88,991 77,347 78,737 80,734 82,715 84,113 86,542 74,372 75,920 77,902 78,627 79,120 81,702 70,527 72,103 74,296 75,165 75,732 78,230 3,844 3,817 3,606 3,462 3,387 3,472 2,975 2,817 2,832 4,088 4,993 4,840 3.8 3.6 3.5 4.9 5.9 5.6 1972—Sept. Oct.. Nov. Dec., 146,289 146,498 146,709 146,923 57,191 56,907 57,309 57,486 89,471 89,651 89,454 89,707 87,066 87,236 87,023 87.267 82,256 82,397 82,525 82,780 78,677 78,739 78,969 79,130 3,579 3,658 3,556 3,650 4,810 4,839 4,498 4,487 5.5 5.5 5.2 5.1 1973—Jan.. Feb.. Mar. Apr., May, June, July. Aug. Sept. 147,129 147,313 147,541 147,729 147,940 148,147 148,361 148,565 148,782 59,008 58,238 57,856 57,906 58,050 55,417 55,133 56,129 57,484 89,325 89,961 90,629 90,700 90,739 91,247 91,121 90,958 91,694 86,921 87,569 88.268 88,350 88,405 88,932 88,810 88,651 89,403 82,555 83,127 83,889 83,917 84,024 84,674 84,614 84,434 85,127 79,054 79,703 80,409 80,606 80,749 81,271 81,098 80,991 81,757 3,501 3,424 3,480 3,311 3,275 3,403 3,516 3,443 3,370 4,366 4,442 4,379 4,433 4,381 4,258 4,196 4,217 4,276 5.0 5.1 5.0 5.0 5.0 4.8 4.7 4.8 4.8 1 2 Includes self-employed, unpaid family, and domestic service workers. Per cent of civilian labor force. NOTE.—Bureau of Labor Statistics. Information relating to persons 16 years of age and over is obtained on a sample basis. Monthly data relate to the calendar week that contains the 12th day; annual data are averages of monthly figures. Description of changes in series beginning 1967 is available from Bureau of Labor Statistics. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract construction Total Manufacturing 65,857 67,915 70,284 70,593 70,645 72,764 19,447 19,781 20,167 19,349 18,529 18,933 613 606 619 623 602 607 3,208 3,285 3,435 3,381 3,411 3,521 1972—Sep t Oct Nov Dec 73,268 73,584 73,835 74,002 19,069 19,210 19,312 19,402 606 608 608 607 1973—Jan Feb Mar Apr May June July Aug.f Sept p 74,252 74,715 74,914 75,105 75,321 75,526 75,493 75,702 75,892 19,463 19,586 19,643 19,727 19,782 19,856 19,804 19,856 19,863 1972—Sep t Oct Nov Dec 73,519 74,118 74,449 74,778 1973—Jan Feb Mar Apr May June July Aug.® Sept.P 73,343 73,724 74,255 74,861 75,404 76,308 75,384 75,623 76,124 Period 196 7 196 8 196 9 197 0 197 1 197 2 Transportation & public utilities Trade Finance Service Government 4,261 4,310 4,429 4,493 4,442 4,495 13,606 14,084 14,639 14,914 15,142 15,683 3,225 3,382 3,564 3,688 3,796 3,927 10,099 10,623 11,229 11,612 11,669 12,309 11,398 11,845 3,551 3,561 3,524 3,459 4,507 4,540 4,549 4,558 15,794 15,839 15,911 15,946 3,953 3,969 3,981 3,991 12,403 12,451 12,497 12,537 13,385 13,406 13,453 13,502 610 612 610 608 608 629 631 632 628 3,498 3,594 3,604 3,571 3,620 3,654 3,680 3,672 3,686 4,574 4,580 4,580 4,591 4,593 4.597 4.598 4,618 4,622 16,013 16,114 16,163 16,217 16,256 16,262 16,294 16,332 16,366 3,995 4,014 4,024 4,031 4,044 4,049 4,048 4,064 4,067 12,621 12,682 12,716 12,746 12,776 12,820 12,828 12,897 12,981 13,478 13,533 13,574 13,614 13,642 13,659 13,610 13,631 13,679 19,298 19,359 19,414 19,423 613 609 607 603 3,785 3,782 3,630 3,373 4.548 4.549 4,554 4.558 15,774 15,887 16,162 16,669 3,957 3,957 3,965 3,971 12,391 12,463 12,472 12,474 13,153 13,512 13,645 13,707 19,279 19,420 19,521 19,586 19,667 20,002 19,729 19,995 20,069 598 598 598 603 608 642 644 646 636 3,155 3,184 3,294 3,442 3,616 3,837 3,934 3,977 3,929 4,510 4,507 4,539 4.559 4,593 4,661 4,653 4,660 4,664 15,865 15,776 15,880 16,088 16,200 16,335 16,262 16,259 16,345 3,959 3,978 4,000 4,019 4,040 4,089 4,113 4,121 4,071 12,406 12,530 12,627 12,771 12,865 12,999 12,982 13,000 12,968 13,571 13,731 13,796 13,793 13,815 13,743 13,067 12,965 13,442 Mining 12,202 12,535 12,858 13,290 SEASONALLY ADJUSTED NOT SEASONALLY ADJUSTED NOTE.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period that includes the 12th of the month. Proprietors, self-employed persons, domestic servants, unpaid family workers, and members of Armed Forces are excluded. Beginning with 1970, series has been adjusted to Mar. 1971 benchmark. OCTOBER 1973 • EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Not seasonally adjusted 1 Seasonally adjusted 1 1972 Industry group 1972 1973 1973 Sept. Printing, publishing, and allied industries Chemicals and allied products Petroleum refining and related industries Rubber and misc. plastic products Aug.f Sept.* 14,566 14,605 14,592 14,180 14,458 14,706 14,785 8,562 99 541 431 557 1,050 8,592 96 545 434 554 1,067 8,598 96 543 434 549 1,077 8,099 95 540 416 543 1,003 8,507 98 557 422 568 1,062 8,540 97 563 437 570 1,066 8,642 98 554 437 562 1,067 1,127 1,379 1,392 1,338 306 342 1,129 1,404 1,378 1,336 310 339 1,125 1,561 1,381 1,339 313 337 1,069 1,251 1,267 1,285 282 348 1,109 1,369 1,373 1,312 305 334 1,125 1,383 1,376 1,263 311 350 1,136 1,403 1,399 1,319 314 353 6,004 1,160 64 899 1,140 556 6,013 1,145 60 903 1,161 559 5,994 1,149 58 901 1,148 556 6,081 1,293 65 877 1,180 544 5,951 1,189 56 885 1,094 556 6,166 1,264 67 906 1,169 564 6,143 1,265 70 902 1,159 559 658 585 117 495 262 Textile-mill products Apparel and related products July 5,929 1,174 54 875 1,168 541 Food and kindred products Sept. 1,059 1,252 1,251 1,273 281 333 Transportation equipment Sept.? 8,027 93 529 413 530 1,013 Primary metal industries Aug.? 13,956 Durable goods July 663 605 118 546 253 660 603 120 547 255 662 603 122 540 255 657 585 119 500 262 658 606 122 538 247 657 607 124 547 261 661 603 124 545 255 i Data adjusted to 1971 benchmark. NOTE.—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked 1 (per week; S.A.) Industry group 1973 1972 Sept. July Aug.23 Average weekly earnings 1 (dollars per week; N.S.A.) Sept.f Sept. July Aug.f 1973 1972 1973 1972 Average hourly earnings 1 (dollars per hour; N.S.A.) Sept.? Sept. July Aug.f Sept.? Total 40.8 40.7 40.5 40.9 158.26 164.43 164.43 169.74 3.86 4.06 4.06 4.13 Durable goods Lumber and wood products Furniture and fixtures Stone, clay, and glass products Primary metal industries 41.4 42.3 41.3 40.5 42.0 41.9 41.4 42.7 40.5 39.8 42.1 42.2 41.2 41.6 40.8 39.7 41.8 41.8 41.5 42.4 40.8 39.5 41.9 42.6 171.39 177.14 176.71 183.50 175.55 180.62 179.30 184.02 140.27 145.04 148.42 150.47 127.51 128.05 131.86 132.80 169.18 177.66 177.66 179.35 199.50 210.50 213.09 220.33 4.11 4. 15 3.38 3.11 3.99 4.75 4.31 4.28 3.59 3.25 4.20 5.00 4.31 4.31 3.62 3.28 4.20 5.11 4.39 4.34 3.67 3.32 4.24 5.16 Fabricated metal products Machinery Electrical equipment and supplies Transportation equipment Instruments and related products Miscellaneous manufacturing industries... 41.3 42.4 40.6 41.9 40.7 39.5 41.6 42.2 40.2 42.3 40.6 38.9 41.4 42.2 40.2 41.1 40.3 38.7 41.8 168.48 175.54 175.96 181.87 42.9 183.59 188.07 188.94 197.34 40.5 151.78 153.24 155.98 159.54 42.1 203.52 212.52 201.30 218.54 4 0 . 7 152.97 155.57 154.79 159.92 39.1 123.64 125.18 127.20 128.64 4.05 4.33 3.72 4.80 3.74 3.13 4.24 4.51 3.86 5.06 3.87 3.26 4.24 4.52 3.88 5.02 3.86 3.27 4.32 4.60 3.92 5.13 3.91 3.29 39.8 40.3 36.9 41.4 36.2 42.9 39.6 40.2 36.0 40.8 35.9 42.7 39.5 40.4 38.1 40.8 35.7 42.3 39.8 140.40 146.89 146.86 150.00 4 0 . 7 148.01 155.09 156.62 160.63 38.1 126.97 142.52 143.96 143.47 40.9 114.13 117.05 119.43 122.59 98.64 100.08 101.88 36.0 95.93 42.6 173.23 180.62 180.20 183.18 3.51 3.61 3.35 2.75 2.65 4.01 3.70 3.82 3.97 2.89 2.74 4.23 3.69 3.82 3.72 2.92 2.78 4.24 3.75 3.88 3.66 2.99 2.83 4.27 38.2 41.9 42.3 41.2 38.7 37.7 42.1 42.4 40.8 37.8 37.8 42.2 42.1 40.8 38.0 37.9 175.56 177.66 178.60 181.45 4 2 . 2 178.49 188.13 188.55 191 17 42.5 214.00 226.18 221.65 226.61 4 1 . 0 151.89 154.71 155.83 158.59 38.5 103.63 106.86 106.02 107.26 4.56 4.26 5.00 3.66 2.72 4.70 4.49 5.26 3.82 2.79 4.70 4.50 5.24 3.81 2.79 4.75 4.53 5.27 3.84 2.83 Nondurable goods Food and kindred products Tobacco manufactures Textile-mill products Apparel and related products Paper and allied products Printing, publishing, and allied industries. Chemicals and allied products Petroleum refining and related industries . Rubber and misc. plastic products Leather and leather products * Data adjusted to 1971 benchmark. NOTE.—Bureau of Labor Statistics; data are for production and related workers only. PRICES • OCTOBER 1973 A 66 CONSUMER PRICES (1967 = 100) Housing All items Food 51.3 38.8 44.1 53.9 88.7 94.5 48.3 30.6 38.4 50.7 88.0 94.4 53.7 59.1 90.2 94.9 1966... 1967.... 1968. 1969 97.2 100.0 104.2 109.8 99.1 100.0 103.6 108.9 1970. 1971 1Q72 116.3 121.3 125.3 114.9 118.4 123.5 1972- —Aug. Sept......... Oct.......... 125.7 126.2 124.6 124.8 Period 1929 c 1933 1041 lOdS 1960. 1965 Total 126.6 124.9 Nov.,....... 126.9 125.4 Dec. 127.3 126.0 1973—Ian 128.6 127.7 Feb......... 128.6 131.1 129.8 134.5 Mar. Apr......... 130.7 136.5 May 131.5 137.9 June........ 132.4 139.8 July......... 132.7 140.9 Aug......... 135.1 149.4 Fuel oil and coal Homeownership Rent Health and recreation Gas and electricity Fur- Apparel Transnishand portaings upkeep tion and operation Medical care Total Personal care Reading and recreation Other goods and services 86.3 92.7 40.5 48.0 89.2 94.6 81.4 79.6 98.6 99.4 93.8 95.3 48.5 36.9 44.8 61.5 89.6 93.7 97.2 100.0 104.2 110.8 98.2 96.3 100.0 100.0 102.4 105.7 105.7 116.0 97.0 100.0 103.1 105.6 99.6 100.0 100.9 102.8 97.0 100.0 104.4 109.0 96.1 100.0 105.4 111.5 97.2 100.0 103.2 107.2 96.1 100.0 105.0 110.3 93.4 100.0 106.1 113.4 97.1 100.0 104.2 109.3 97.5 100.0 104.7 108.7 97.2 100.0 104.6 109.1 118.9 124.3 129.2 110.1 128.5 115.2 133.7 119.2 140.1 110.1 117.5 118.5 107.3 114.7 120.5 113.4 118.1 121.0 116.1 119.8 122.3 112.7 118.6 119.9 116.2 122.2 126.1 120.6 128.4 132.5 113.2 116.8 119.8 113.4 119.3 122.8 116.0 120.9 125.5 129.9 130.1 fl 19.6 141.3 119.9 141.5 117.9 118.0 118.1 119.3 119.4 120.5 120.5 120.9 122.2 122.5 121.2 121.6 121.8 122.1 122.3 120.8 123.1 124.3 125.0 125.0 120.5 121.0 121.2 121.4 121.3 126.5 126.8 127.2 127.4 127.5 132.9 133.1 133.9 134.1 134.4 120.2 120.5 120.8 121.0 121.5 123.0 123.7 124.0 124.1 124.0 126.0 126.2 126.4 126.4 126.5 142.6 120.7 127.2 127.8 124.1 124.5 125.0 125.5 125.7 125.4 125.5 125.8 122.2 122.6 123.0 123.0 123.6 124.8 125.8 126.7 126.8 125.8 126.5 121.0 121.1 121.5 122.6 123.5 124.6 124.8 124.5 127.8 128.1 128.6 129.2 129.6 130.0 130.3 130.5 134.9 135.3 135.8 136.2 136.6 137.0 137.3 137.6 121.8 122.4 123.1 123.8 124.4 124.9 125.3 125.7 124.1 124.3 124.5 125.2 125.6 125.9 126.2 126.1 126.7 127.1 127.6 128.2 128.5 129.0 129.5 129.4 130.4 130.8 131.2 131.4 132.0 132.3 132,8 133.3 133.9 134.2 135.2 76.0 54.1 57.2 58.8 91.7 96.9 120.3 141.8 120.5 142.0 121.0 142.6 121.5 122.1 142.9 122.6 143.2 123.0 143.6 123.5 144.2 123.9 145.0 124.3 145.2 125.0 147.0 128.3 129.3 131.6 131.7 132.8 f Indexes affected by changes (refunds) in residential telephone series in California and by retroactive rent increases in New York City. 123.6 123.9 124.7 125.0 125.3 44.2 47.8 89.6 95.9 85.1 93.4 37.0 42.1 79.1 89.5 41.2 55.1 90.1 95.2 47.7 62.4 87.3 95.9 49.2 56.9 87.8 94.2 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All com- Farm modi- products ties Period 1. 1960. . . . . . O . . . . . . . . . 94.9 94.5 1961. 94.8 1962. 94.5 1963. 94.7 1964o 96.6 1965 o 99.8 1966„ 100.0 1967. 102.5 1968* 106,5 1969. 1 i ! ! 1970. ............ 110.4 113.9 1971. • 119.1 1972. i—Sept.,......... 120.2 Oct. „ . . . . . . , . . 120.0 Nov........... 120.7 Dec. . . . . 122.9 Pro- cessed foods and feeds 97,2 89.5 95,3 99.5 96.3 9 1 . 0 94.8 97.7 98,0 91.9 94,8 9 8 . 6 96-0 94.6 92.5 92.3 94,7 95.2 98,7 95.5 9 6 . 4 105,9 101.2 98,5 100.0 100.0 100,0 102,5 102.2 102,5 109.1 107.3 111.0 112.9 112.0 114.3 120.8 137,5 129.4 98,5 99.2 99.8 100.1 100.0 103.7 106.0 106.0 Hides, Fuel, Chem- Rubicals, ber, etc. etc. etc. etc. 96.1 97.2 96.7 96.3 93.7 101.8 100.7 99.1 97.9 98.3 94.3 95.5 103.4 97.8 100.0 100.0 103.2 98.9 108.9 100.9 100.0 90.8 91.7 92.7 90.0 90.3 99.0 99.4 99.8 99.9 103.1 99.2 96.3 96.8 95.5 Lum- Paper, Metber, als, etc. etc. etc. Machin- Furni- Non- Trans- Misme- portaery ture, tallic tion cellaand etc. min- equip- neous equiperals ment 1 ment 95.3 91.0 91.6 93.5 95.4 92.0 91.9 92.0 92.2 92.8 98.1 95.2 96.3 95.6 95.4 119.4 92.4 91.9 91.2 91.3 93.8 95.9 96.2 96.4 95.9 9 7 . 8 100.2 98.8 9 8 . 8 100.0 100.0 100.0 100.0 103.4 113.3 101.1 102.6 105.3 125.3 104.0 108.5 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 125.0 128,6 121.8 118.7 125.5 121,8 118.8 128.8 123.1 119.1 124.5 144.2 132.4 -Jan.,.,., 126.9 150.9 137.0 Feb. 129.7 160.9 141.4 Mar.,.. 130.7 160.6 139.8 Apr. May 133.5 170.4 145.0 June ..... 136.7 182.3 151.8 134.9 173.3 146.5 July. 142.7 213.3 166.2 Aug. Sept........... 140.2 200.4 156.3 i Dec. 1968 — 100. Total Textiles, etc. 114.3 135.7 120.3 104.4 109.5 114.8 139.8 120.6 104.4 109.5 115.1 144.0 121.3 104.7 109.8 115.6 142.2 121.9 104.8 109.8 148.5 114.3 149.2 114.7 149.4 115.0 149.8 115.1 99.0 98.4 97.7 97.0 97.4 97.2 97.6 97.6 97.1 97.3 93.0 93.3 93.7 94.5 95.2 93.9 9 6 . 9 97.5 96.8 98.0 98.4 100.0 100.0 100.0 103.2 102.8 103.7 106.5 104.9 107.7 95.9 97.7 100.0 102.2 100.8 105.2 113.3 122.4 126.1 104.5 109.9 110.3 112.8 113.8 114.6 116.7 111.4 107.5 119.0 115.5 109.9 123.5 117.9 111.4 124.0 124.1 124.1 124.4 118.3 112.0 126.9 118.4 112.0 127.3 118.5 112.3 127.3 118.6 112.4 127.4 114.2 112.9 113.0 114.2 115.2 115.0 115.0 115.1 128.2 128.4 129.0 130.0 130.5 131.1 130.0 130.0 129.9 114.1 114.2 114.5 114.9 115.1 115.0 115.0 115.1 114.5 115.8 117.1 117.9 118.6 119.5 120.2 120.9 121.0 121.1 120.0 116.6 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 112.6 121.3 117.4 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 113.1 122.7 119.0 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 113.5 124.4 120.8 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 114.1 125.8 122.3 142.2 135.5 109.3 111.5 186.9 120.7 131.7 121.5 115.1 126.9 123.7 140.9 142.8 110.4 112.6 183.1 122.0 132.5 121.9 115.2 126.9 124.2 141.4 142.8 110.8 112.9 177.8 122.3 132.8 122.0 115.2 127.4 125.2 143.0 142.9 111.0 113.1 178.8 123.3 133.7 122.3 115.9 128.1 126.8 143.8 144.8 111.5 112.8 181.9 124.4 134.4 122.6 116.0 OCTOBER 1973 • PRICES A 67 WHOLESALE PRICES: DETAIL (1967= 100) 1972 1973 1972 Sept. July Aug. 138.1 109.5 144.9 112.3 108.4 122.8 114.9 118.0 132.7 187.8 157.2 199.3 189.5 186.4 133.3 155.2 187.4 151.9 162.2 266.4 243.3 269.7 228.5 143.4 209.6 293.6 150.4 149.0 231.5 207.4 226.5 267.9 158.7 191.5 304.5 153.2 116.1 131.7 119.0 120.1 121.6 119.1 126.7 100.7 107.0 121.5 116.4 117.8 125.5 169.7 127.1 127.7 131.1 121.1 227.4 169.7 164.8 137.2 123.4 197.0 136.2 198.3 131.3 129.3 135.7 121.2 428.9 284.6 164.8 161.6 128.5 261.8 147.7 187.3 137.2 130.0 136.9 121.6 264.7 195.2 164.8 160.1 128.1 190.1 123.6 102.5 108.6 115.3 110.0 120.4 144.6 132.1 123.1 118.8 111.5 124.2 147.3 134.9 123.7 119.3 112.2 124.3 153.1 133.7 126.7 119.5 112.3 121.4 244.0 143.5 126.8 120.4 246.3 156.8 129.5 129.2 261.6 157.5 129.7 130.6 257.3 162.8 130.3 130.4 192.2 155.3 116.7 122.6 114.7 111.3 214.0 167.2 128.7 129.0 125.8 146.1 214.4 167.2 130.4 129.1 125.8 145.9 222.6 167.3 132.2 130.9 133.3 146.1 101.3 118.3 105.2 103.1 116.4 92.0 88.9 113.8 103.4 121.0 114.9 104.4 263.2 96.7 93.1 118.1 103.5 121.0 115.7 104.3 273.2 95.9 93.3 118.2 104.3 121.2 116.2 104.7 279.5 95.9 93.1 118.3 114.3 98.8 109.7 122.1 118.5 115.8 110.4 125.4 118.9 118.1 110.4 125.4 118.4 113.4 110.4 125.8 93.3 93.8 94.0 94.0 98.3 100.8 100.8 98.7 98.1 98.5 165.1 130.2 134.6 127.6 209.6 148.3 138.0 152.9 210.8 148.3 140.1 153.2 216.9 149.0 138.2 155.9 Fuels and related products, and power: Coal Coke Gas fuels Electric power Crude petroleum Petroleum products, refined Rubber and plastic products: Rubber and rubber products Crude rubber Tires and tubes Miscellaneous rubber products Plastic construction products (Dec. 1969 = 100) Unsupported plastic film and sheeting (Dec. 1970= 100) Laminated sheets, high pressure (Dec. 1970=100) Lumber and wood products: Lumber Millwork Plywood Other wood products i Dec. 1968 = 100. Pulp, paper and products, excluding building paper and board Woodpulp Wastepaper Paper Paperboard Converted paper and paperboard.. Building paper and board 114.6 111.5 139.2 116.7 106.5 114.6 107.3 122.7 130.8 187.6 121.8 116.7 121.5 112.2 123.7 133.3 187.6 121.5 116.7 123.2 112.8 124.8 133.3 230.5 121.7 116.7 123.8 115.9 128.8 130.2 117.4 131.1 120.8 120.5 119.2 122.7 124.7 135.9 134.3 135.9 135.6 124.5 126.3 120.9 127.1 129.1 136.0 134.3 137.9 135.5 124.5 126.4 120.7 127.8 130.9 136.5 134.3 138.5 135.6 126.8 127.2 120.7 128.7 131.4 122.6 126.1 121.0 125.5 130.9 125.8 125.5 131.4 125.8 125.6 131.4 126.6 Metals and metal products: Iron and steel Steelmill products Nonferrous metals Metal containers Hardware Plumbing equipment Heating equipment Fabricated structural metal products Miscellaneous metal products Agricultural machinery and equip... Construction machinery and equip.. Metalworking machinery and equip. General purpose machinery and equipment Special industry machinery and equipment Electrical machinery and equip Miscellaneous machinery 123.0 127.4 127.4 127.6 124.0 110.6 120.9 130.2 112.7 124.4 131.7 112.7 124.7 132.6 112.8 125.0 111.7 Household furniture 121.1 Commercial furniture 99.0 Floor coverings 108.1 Household appliances 92.9 Home electronic equipment Other household durable g o o d s . . . . 127.0 123.2 130.6 102.7 107.7 91.6 130.8 123.6 132.2 102.7 109.0 92.0 130.8 124.4 132.8 102.6 109.0 91.5 130.5 122.8 128.3 126.3 117.9 131.7 132.3 117.9 131.7 132.3 118.2 131.7 132.5 117.5 132.1 131.2 115.2 136.4 127.3 123.8 136.3 136.3 122.9 137.1 128.1 123.9 136.3 136.3 122.5 137.4 128.0 123.9 136.3 136.3 122.0 137.1 127.3 118.5 130.2 119.0 134.8 119.0 135.2 118.3 136.1 114.8 117.5 112.9 107.0 117.6 117.6 122.5 113.1 108.5 129.5 117.8 122.5 113.6 108.5 129.5 118.3 122.5 113.6 108.6 129.5 Furniture and household durables: Nonmetallic mineral products: Chemicals and allied products: Industrial chemicals Prepared paint Paint materials Drugs and pharmaceuticals Fats and oils, inedible Agricultural chemicals and products.. Plastic resins and materials Other chemicals and products Sept. 100.9 97.9 Hides, skins, leather, and products: Hides and skins Leather Footwear Other leather products Aug. Machinery and equipment: Textile products and apparel: Cotton products Wool products Manmade fiber textile products Apparel Textile housefurnishings Miscellaneous textile products July Pulp, paper, and allied products: Processed foods and feeds: Cereal and bakery products Meat, poultry, and fish Dairy products Processed fruits and vegetables Sugar and confectionery Beverages and beverage materials.... Animal fats and oils Crude vegetable oils Refined vegetable oils Vegetable oil end products Miscellaneous processed foods Manufactured animal feeds Sept. Sept. Farm products: Fresh and dried produce Grains Livestock Live poultry Plant and animal fibers Fluid milk Eggs Hay and seeds Other farm products 1973 Group Group Flat glass Concrete ingredients Concrete products Structural clay products excluding refractories Refractories Asphalt roofing Gypsum products Glass containers Other nonmetallic minerals Transportation equipment:1 Motor vehicles and equipment Railroad equipment Miscellaneous products: Toys, sporting goods, small arms, ammunition . Tobacco products Notions ............. Photographic equipment and supplies Other miscellaneous products NOTE.—Bureau of Labor Statistics indexes. A 68 NATIONAL PRODUCT AND INCOME • OCTOBER 1973 GROSS NATIONAL PRODUCT (In billions of dollars) Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 1972 II Gross national product. Final purchases 103.1 101.4 Personal consumption expenditures. Durable goods Nondurable goods Services 77.2 9.2 37.7 30.3 Gross private domestic investment Fixed investment Nonresidential Structures Producers' durable equipment. Residential structures Nonfarm Change in business inventories Nonfarm 16.2 14.5 10.6 5.0 5.6 4.0 3.8 1.7 55.6 124.5 284.8 864.2 930.3 977.1 1,055.51,155.2 1,142.4 1,166.51,199.2 1 , 2 4 2 . 5 1 , 2 7 2 . 0 57.2 120.1 278.0 857.1 922.5 972.6 1M9.41,U9.1 1,136.9 1,157.81,191.0 1,237.81,267.5 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 719.2 734.1! 752.6 9.6 30.5 84.0 90.8 91.3 103.6 117.4 115.1 120.2 122.9 3.5 22.3 42.9 98.1 230.8 245.9 263.8 278.7 299.9 297.9 302.3 310.7 20.1 28.1 62.4 221.3 242.7 262.6 284.9 309.2 306.2 319.0 3ui 1.4 17.9 54.1 126.0 139.0 136.3 153.2 178.3 174.7 181.5 189.4 3.0 13.4 47.3 118.9 131.1 131.7 147.1 172.3 169.2 172.9; 181.2 2.4 9.5 27.9 88.8 98.5 100.6 104.4 118.2 116.3 118.3 124.3 .9 2.9 9 . 2 30.3 34.2 36.1 37.9 41.7 41.5 41.3 43.0 1.5 6.6 18.7 58.5 64.3 64.4 66.5 76.5 74.9 77.0 81.2 .6 3.9 19.4 30.1 32.6 31.2 42.7 54.0 52.8 54.5 56.9 .5 3.7 18.6 29.5 32.0 30.7 42.2 53.5 52.3 53.9 56.4 -1.6 6.8 4.5 6 7. 7.8 4.5 6.0 8.7 8.2 5.5 -1.4 6.0 4.0 6.9 7.7 4.3 4.5 5.6 8.4 7.9 4.8 Net exports of goods and services. Exports Imports 1.1 7.0 5.9 .4 2.4 2.0 1.3 5.9 4.6 Government purchases of goods and services. Federal National defense Other State and local 8.5 1.3 8.0 24.8 16.9 13. 3. 7.9 Gross national product in constant (1958) dollars III 1.8 13.8 12.0 2.5 50.6 48.1 1.9 55.5 53.6 3.6 62.9 59.3 -4.6 73.5 78.1 -5.7 69.9 75.6 -3.8 74.0 77.7| -3.5 79.7 83.2 37.9 199.6 210.0 219.5 234.3 255.0 18.4\ 96.2 98.1 104.4 98.8 98.8 14.1 78.3 78.4 74.6 71.6 74.4 4.3! 20.5 20.4 21.6 26.5 30 19.5! 100.8 111.2 123.3 136.2 150.5 254.2 106.7 76.6 30. 147.5 254.7j 71.9s 30.4 152.41 260.7 102.7 72.4 30.3 158.0 203.6 141.5 263.7 355.3 706.6 725.6! 722.5 745.4 790.7 785.6 796.7 812.3 7.2 2.0 6.0 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, 66.3 65.5 102.3\ see the Survey of Current Business, (generally the July issue) and the Aug. 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1929 Item 1933 1941 1950 1968 1969 1970 1971 1972 1972 II National income 86.8 III 1973 IV I II 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.6 1,015.0 1,038.2 51.1 Wages and salaries Private Military Supplements to wages and salaries Employer contributions for social insurance Other labor income Proprietors' income Business and professional Farm Rental income of persons Corporate profits and inventory valuation adjustment Profits before tax Profits tax liability Profits after tax Dividends Undistributed profits Inventory valuation adjustment Net interest 29.5 64.8 154.6 514.6 566.0 603.9 644.1 707.1 699.6 713.1 731.2 757.4 774.9 50.4 45.5 .3 4.6 29.0 23.9 .3 4.9 62.1 146.8 464.9 509.7 542.0 573.8 627.3 620.8 632.5 648.7 666.7 682.3 51.9 124.4 369.2 405.6 426.9 449.7 493.3 488.4 497.5 510.9 525.1 538.7 1.9 5.0 17.9 19.0 19.6 19.4 20.3 20.1 20.0 20.1 20.9 20.5 8.3 17.4 77.8 85.1 95.5 104.7 113.8 112.3 115.1 117.7 120.7 123.1 .7 .5 2.7 7.8 49.7 56.3 61.9 70.3 79.7 78.9 80.5 82.5 90.8 92.6 .1 .6 .1 .4 2.0 .7 4.0 3.8 24.3 25.4 27.8 28.4 29.7 32.2 33.7 36.6 39.0 40.7 38.7 40.2 39.3 41.3 40.2 42.3 47.4 43.3 48.3 44.2 15.1 9.0 6.2 5.9 3.3 2.6 17.5 11.1 6.4 37.5 24.0 13.5 64.2 49.5 14.7 67.2 50.5 16.7 66.9 50.0 16.9 68.7 51.9 16.8 74.2 54.0 20.2 73.2 53.3 19.9 74.1 54.3 19.8 77.1 55.3 21.8 80.6 56.3 24.3 81.5 57.1 24.4 5.4 2.0 3.5 9.4 21.2 22.6 23.9 24.5 24.1 22.6 24.9 24.9 24.7 24.6 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1 88.0 91.5 98.8 104.3 107.9 10.0 1.4 8.6 5.8 2.8 1.0 .5 .4 2.0 -1.6 17.7 7.6 10.1 4.4 5.7 42.6 17.8 24.9 8.8 16.0 87.6 39.9 47.8 23.6 24.2 84.9 40.1 44.8 24.3 20.5 74.0 34.8 39.3 24.7 14.6 85.1 37.4 47.6 25.1 22.5 98.0 42.7 55.4 26.0 29.3 94.8 41.4 53.4 25.9 27.5 98.4 106.1 119.6 128.9 42.9 45.9 52.7 57.4 55.6 60.3 66.9 71.6 26.2 26.4 26.9 27.3 29.4 33.9 40.0 44.2 .5 -2.1 -2.5 -5.0 -3.3 -5.1 -4.8 -4.9 -6.9 -6.7 -6.9 4.7 4.1 3.2 2.0 26.9 30.5 36.5 42.0 45.2 44.8 45.7 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table above. -7.3 -15.4 -21.1 46.6 47.9 49.4 OCTOBER 1973 • NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1929 1950 1933 1968 1970 1971 1972 1972 111 103.1 Gross national product. Less: Capital consumption allowances Indirect business tax and nontax liability . Business transfer payments. Statistical discrepancy 7.9 7.0 8.2 7.0 .6 .7 7. .7 .6 11.3 .5 .4 18.3 74.5 81.6 87.3 102.4 103.6 102.3 105.1 106.9 109.0 23.3 78.6 85.9 93.5 102.4 109.5 .8 3.4 3. 4.0 4.3 4.6 1.5 - 2 . 7 - 6 . -6.4 -3.4 -1.5 108.4 4.6 -1.0 110.5 4.7 1.6 112. 4.7 0.2 115.6 117.2 4 4.9 1.1 3.2 .2 .7 1.0 1.7 1.5 928.3 949.2 88.0 72.9 91.5 74.5 Less: Corporate profits and inventory valuation adjustment Contributions for social insurance Excess of wage accruals over disbursements 10.5 - 1 . 2 .2 .3 15.2 2. 37.7 6.9 84.3 47.1 79.8 54.2 69.2 57.7 80. 64.6 91.1 73.7 1. 2.2 9 .4 978.6 1,015.0 1,038.2 98.8 75. 104.3 107.9 89.3 90.9 -.5 -.4 -.2 .0 .0 -.3 98.3 95.3 96.4 107.3 108.8 110.8 32.7 26.0 4.6 32.6 25.9 4.6 32.9 26.2 4.7 33.7 26.4 4.7 34.7 26.9 4. 36.1 27.3 4.9 96.0 227.6 688.9 750.9 808.3 863.5 939.2 926.1 943.7 976.1 97.9 116.5 116.6 117.5 142.2 140.7 142. 147.4 145 45.5 92.7 206.9 591.0 634.4 691.7 746.0 797.0 785.4 800.9 828.7 851.5 869.7 46.5 45.8 .5 81.7 193.9 551.2 596.2 635.5 685. 747.2 80.6 191.0 536.2 579.5 617.6 667.2 726.5 2.4 14.3 15 .9 17.7 19 7 16.8 'I 1.0 .2 .9 .5 K0 1.0 I 11.0 13.1 39.8 38.2 56.2 60.2 49.7 739.5 719.2 19.4 755.1 734.1 20.0 774.3 752.6 20.7 801.5 818.7 779.4 795.6 21.2 22.0 150.6 112.2 190.3 249.6 499.0 513.6 534.8 554.9 577.91 571.6 .0 .9 1.5 2.6 14.3 56.1 61.9 75. 2.5 5.8 .6 2.0 1.6 2.2 4.4 .5 7.2 8.8 .8 26.1 23.6 3.4 28.7 24.3 3. 31.0 24.7 4.0 , 85.9 47.0 Less: Personal tax and nontax payments..., 2.6 1.5 Equals: Disposable personal income 83.3 Less: Personal outlays Personal consumption expenditures, Consumer interest payments Personal transfer payments to foreigners 79.1 77.2 1.5 .7 .3 .2 4.2 Disposable personal income in constant (1958) dollars 1.2 1.7 86.8 Equals: Personal saving 93. 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 Equals: National income. Equals: Personal income IV I 55.6 124.5 284.8 864.2 930.3 977.1 1,055.5 1 , 1 5 5 . 2 1,142.4 1,166.5 1,199.21,242.5 1,272.0 Plus: Subsidies less current surplus of government enterprises. Plus: Government transfer payments Net interest paid by government and consumers Dividends Business transfer payments 1973 -.9 3.3 20.7 .6 88.9 31.0 25. 4.3 996.6 1,019.0 149.3 1.0 1.1 .9 1.0 45.8 54.4 50.0 51.0 579.3 595.1 603.9 604.8 June July .9 45.9 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. PERSONAL INCOME (In billions of dollars) Item 1971 1972 1972 Aug. Total personal Income Sept. Oct. 1973 Nov. Dec. Jan. Feb. Mar. Apr. May 863.5 939.2 944.4 951.3 967.0 977.6 983.6 989.1 997.4 1 , 0 0 3 . 3 1,011.6 1,018.7 Wage and salary disbursements 573.3 627.8 632.6 Commodity-producing industries.. 206.3 226.0 227.4 Manufacturing only 160.5 175.9 177.0 Distributive industries 138.3 151.5 152.4 Service industries 104.7 116.1 117.6 Government 123.9 134.2 135.1 638.7 230.1 179.3 153.6 643.8 232.8 181.6 155.2 118.8 119.2 136.2 136.7 648.4 235.0 183.8 155.6 119.8 138 654.0 236. 185.6 157.2 121.3 138.7 661.7 239.2 187.1 158.7 122.9 140.9 667.2 242.2 189.6 159.3 124. 141.6 671 243. 190. 160. 124. 142. 677. 245. 192. 162. 126. 143. 682 248. 194. 163. 126. 143. 1,026.6 1 , 0 3 5 . 1 688. 251. 197. 164. 127. 144. Aug. p 1,045.7 693. 253. 197. 165. 129. 145. 699.0 255.0 198.9 166.8 131.0 146.3 44. 45.1 83. 57. 25. 84.1 57.9 26.2 Other labor income 36.6 40.7 41.3 41.6 42.0 42.3 42.7 43.0 43.3 43.6 43. 44. Proprietors' income Business and professional Farm 68.7 51.9 16.8 74.2 54.0 20.2 74.3 54.5 19. 74.6 54.3 20.3 75.9 55.1 20.8 77.5 55.1 22.4 77.9 55.6 22.3 80. 56.1 24.0 80.6 56.3 24.3 81. 56. 24. 81. 81. 56. 24. 57. 24. 81. 57. 24. Rental income 24.5 24. 25.2 25.1 25.1 24.7 24.9 24. 24. 24. 24. 24. 24. 25. 25.1 26.2 26.3 26.3 26.5 26. 27. 27. 28.2 78.9 79.6 80.4 81. 81.9 Dividends 25.1 26.0 26.3 26.9 27. 27. 27. Personal interest income 73.0 78.0 78.5 82.6 83. 84. 85. 86. 87. 88.9 Transfer payments 93.2 103.0 101.3 101.4 109.7 113.7 112.6 112.5 113.8 114. 115. 115. 116. 116. 118.9 Less: Personal contributions for social insurance Nonagricultural income Agricultural income , 30.9 34.7 35.0 35.2 35.4 NOTE.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. 35.7 35.9 41.7 41.9 42.0 42.4 42.5 42.8 43.4 43.7 839.8 911.5 917.3 923.6 938.8 947.7 953.6 957.4 965.3 9 7 0 . 9 979.5 986.4 994.2 1,001.8 1,011.6 23.7 27.7 27.1 27.7 28.2 29.9 30.0 31.8 32.1 3 2 . 4 32.0 32.2 32.4 3 3 . 3 3 4 . 1 A 70 FLOW OF FUNDS • OCTOBER 1973 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973P 1972 HI H2 HI H2 HI Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors 2 Excluding equities 67.7 66.9 82.2 80.0 94.6 95.9 U.S. Government Public debt securities Budget agency issues 3.6 2.3 1.3 13.0 8.9 4.1 13.4 - 3 . 6 10.3 - 1 . 3 3.1 - 2 . 4 6 All other nonfinancial sectors Corporate equity shares 7 Debt instruments 8 64.1 .8 63.3 69.2 2.2 67.0 81.2 -1.4 82.6 3 4 5 91.4 88.0 97.5 146.7 166.1 134.7 158.7 144.8 187.6 191.0 92.6 135.0 156.1 123.8 146.1 134.4 178.1 183.1 1 2 12.8 12.9 1 15.4 14.1 1.3 3 4 5 95.0 3.4 91.6 84.7 121.2 148.8 112.0 130.4 132.4 165.5 175.6 4.9 11.7 10.0 10.9 12.6 10.4 9.5 7.9 79.8 109.5 138.8 101.1 117.8 122.0 155.9 167.7 6 7 8 25.5 26.0 -.5 17.3 13.9 3.4 22.7 24.2 -1.6 28.4 27.8 .5 12.4 10.5 1.9 22.2 17.2 4.9 9 10 11 12 13 14 15 16 17 18 19 20 21 Debt capital instruments State and local government securities Corporate and foreign bonds Mortgages Home mortgages Other residential Commercial Farm Other private credit Bank loans n.e.c Consumer credit Open-market paper Other 38.9 5.6 11.0 22.3 11.7 3.1 5.7 1.8 24.4 10.7 6.4 1.0 6.2 45.7 7.8 15.9 22.0 11.5 3.6 4.7 2.3 21.3 9.5 4.5 2.1 5.1 50.6 9.5 14.0 27.1 15.1 3.4 6.4 2.2 32.0 13.1 10.0 1.6 7.2 50.6 9.9 13.0 27.7 15.7 4.7 5.3 1.9 41.0 15.3 10.4 3.3 12.0 57.7 11.3 20.6 25.7 12.8 5.8 5.3 1.8 22.1 6.4 6.0 3.8 5.9 97.6 86.8 11.9 7.3 12.0 8.2 73.7 71.4 43.7 41.6 11.5 12.2 16.0 14.6 2.5 2.9 58.4 80.9 29.7 52.5 22.5 24.7 -2.8 -4.3 9.0 8.0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 By borrowing sector Debt instruments Foreign State and local governments Households Nonfinancial business Farm Nonfarm noncorporate Corporate 64.1 63.3 1.6 6.3 22.6 32.8 3.1 5.4 24.3 69.2 67.0 4.0 7.9 19.0 36.0 3.6 5.0 27.4 81.2 82.6 2.9 9.8 29.6 40.2 2.8 5.6 31.8 95.0 91.6 2.9 10.7 32.2 45.9 3.2 7.4 35.4 84.7 121.2 148.8 112.0 130.4 132.4 165.5 175.6 79.8 109.5 138.8 101.1 117.8 122.0 155.9 167.7 3.0 5.7 5.3 3.8 6.1 3.4 4.3 10.7 11.4 17.0 12.3 17.9 16.1 11.9 12.7 7.3 22.9 38.3 63.2 30.0 46.6 55.6 70.8 71.2 42.5 48.5 59.5 47.9 49.0 51.1 68.2 78.5 3.2 4.1 4.9 4.0 4.2 4.4 5.3 5.7 5.3 8.7 10.4 9.3 8.1 9.5 11.6 13.1 33.9 44.2 35.7 34.6 37.2 36.8 51.2 59.7 22 23 24 25 26 27 28 29 30 2.2 - 1 . 4 .1 .2 2.2 - 1 . 5 3.4 .5 2.9 4.9 .l 4.8 11.7 11.7 10.0 -.4 10.4 10.9 .4 10.5 12.6 -.3 12.9 10.4 -.2 10.7 9.5 -.6 10.1 7.9 -.9 8.7 31 32 33 3.0 47.3 38.8 5.7 60.2 47.4 3.4 69.9 54.6 5.7 58.4 45.1 5.8 61.9 49.7 3.2 61.8 47.9 3.7 78.3 61.3 9.8 87.2 68.4 34 35 36 2.8 3.2 .5 -.2 6.6 - 3 . 0 4.0 3.8 94.7 143.5 165.6 134.9 152.1 147.8 183.6 187.1 10.0 22.3 16.8 22.9 21.7 15.4 18.1 11.6 37 38 39 31 32 33 34 35 36 37 38 39 Corporate equities Foreign Nonfinancial corporations Totals incuding equities Foreign Nonfinancial business., Corporate Memo: U.S. Govt, cash balance totals net of changes in U.S Total funds raised By U.S. Government .8 -.3 1.1 1.3 33.9 25.4 4.0 38.2 29.6 3.1 38.7 30.3 3.3 48.8 38.3 -.4 68.1 4.0 1.2 - 1 . 1 81.1 95.7 11.8 14.5 .4 91.0 -4.0 83.2 16.6 19.7 46.8 26.0 8.8 10.0 2.0 26.3 9.3 11.2 -.9 6.6 * 92.4 11.9 13.2 67.3 39.7 10.3 14.8 2.6 46.4 21.8 19.2 -1.6 7.0 79.5 17.9 22.3 39.3 20.6 8.5 8.5 1.7 21.7 5.1 8.9 -1.0 8.7 86.9 15.4 17.2 54.3 31.5 9.1 11.5 2.3 30.9 13.5 13.6 -.8 4.6 87.3 12.0 14.4 60.9 35.6 9.1 13.5 2.7 34.7 14.2 15.8 -.3 5.0 Private net investment and borrowing in credit markets Total, households and business 1 Total capital outlays i 2 Capital consumption 2 Net physical investment 3 190.6 188.1 207.6 226.7 224.2 252.5 291.1 246.3 258.7 279.9 302.3 324.0 118.5 128.4 140.4 154.3 166.0 179.0 193.4 175.8 182.2 190.3 196.6 205.7 72.2 59.7 67.2 72.4 58.2 73.5 97.7 70.5 76.6 89.7 105.7 118.3 Net funds raised Excess net investment 3 Total business Total capital outlays Capital consumption Net physical investment 56.5 15.7 57.3 2.4 96.4 54.2 42.3 93.4 58.5 35.0 Net debt funds raised Corporate equity issues Excess net investment 3 Corporate business 12 Total capital outlays 13 Capital consumption 14 Net physical investment 32.8 1.1 8.4 76.5 38.2 38.3 71.4 41.5 29.9 15 16 17 Net debt funds raised Corporate equity issues Excess net investment 3 Households 18 Total capital outlays 19 Capital consumption 20 Net physical investment 24.3 1.1 12.9 27.4 31.8 2.2 - 1 . 5 .3 - . 4 21 22 4 5 6 7 8 9 10 11 Net funds raised Excess net investment 3 68.3 -1.1 81.0 70.2 98.5 133.1 88.4 108.5 117.4 149.1 158.5 - 8 . 6 -12.0 -25.0 -35.4 -17.9 -32.0 -27.7 -43.5 -40.2 4 5 97.9 108.9 108.0 116.6 133.3 115.8 117.3 127.4 139.3 145.7 63.2 69.5 74.6 80.3 87.6 78.8 81.7 86.2 88.9 92.8 34.7 39.4 33.5 36.3 45.8 37.0 35.5 41.2 50.4 52.9 6 7 8 36.0 40.2 2.2 - 1 . 5 -3.2 -4.0 75.0 45.1 29.9 45.9 42.5 48.5 59.5 47.9 49.0 51.1 68.2 78.5 11.7 10.4 10.5 12.9 10.7 10.1 2.9 4.8 8.7 - 9 . 4 -13.8 -23.9 -24.1 -21.4 -26.4 -20.6 -27.9 -34.3 83.7 49.8 33.9 84.0 53.6 30.4 86.7 100.7 57.7 62.8 29.1 37.8 86.5 56.7 29.8 87.0 58.7 28.3 9 10 11 96.0 105.4 108.4 61.8 63.8 66.6 34.1 41.5 41.8 12 13 14 35.4 33.9 35.7 44.2 34.6 36.8 37.2 51.2 59.7 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 8.7 - 4 . 4 - 8 . 4 -18.3 -16.8 -15.3 -21.4 -13.7 -19.8 -26.7 15 16 17 94.2 64.3 29.9 94.6 109.7 117.8 116.2 135.9 157.8 130.4 141.4 152.6 163.0 178.3 69.9 77.2 84.8 91.4 98.7 105.9 97.0 100.4 104.1 107.7 112.9 24.7 32.5 33.0 24.7 37.2 51.9 33.5 41.0 48.5 55.3 65.4 18 19 20 22.6 7.3 19.0 5.7 21 22 1 Capital outlays are totals for residential and nonresidential fixed capital, net change in inventories, and consumer durables, except outlays by 2financial business. Capital consumption includes amounts for consumer durables and excludes financial business capital consumption. 3 Excess of net investment over net funds raised. NOTE.—Data revised for all periods. Full statements for sectors and transaction types are available on a quarterly basis and annually for flows and for amounts outstanding. Requests for these statements should be addressed to the Flow of Funds Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C., 20551. 1 2 3 29.6 2.9 32.2 .8 22.9 1.8 38.3 63.2 -1.1 -11.3 30.0 3.5 46.6 -5.6 55.6 70.8 -7.1 -15.6 71.2 -5.8 Funds raised by type and sector. Credit flows included here are the net amounts raised by households, nonfinancial business, governments, and foreigners. All funds raised by financial sectors are excluded. U.S. Government budget issues (line 4) are loan participation certificates issued by CCC, Export-Import Bank, FNMA, and GNMA, together with security issues by FHA, Export-Import Bank, and TV A. Issues by Federally sponsored credit agencies are excluded as borrowing by financial institutions. Such issues are in U.S. Government securities on p. A-71, line 11. Corporate share issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open market paper is commercial paper issued by nonfinancial corporations plus bankers' acceptances. OCTOBER 1973 • FLOW OF FUNDS A 71 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1966 Transaction category, or sector 11 Total funds advanced in credit markets to nonfinancial sectors By public agencies and foreign Total net advances U.S. Government securities Residential mortgages FHLB advances to S&L's Other loans and securities By agency— U.S. Government Sponsored credit agencies Federal Reserve Foreign. Agency borrowing not in line 1.. 1967 1969 1968 1970 1971 1972 HI 1972 H2 HI 1973f H2 HI 66.9 95.9 88.0 92.6 135.0 156.1 123.8 146.1 134.4 178.1 183.1 11.3 6.8 2.1 -2.5 4.9 12.2 3.4 2.8 .9 5.1 15.8 .9 4.6 4.0 6.3 28.0 15.7 5.7 1.3 5.2 41.3 33.4 5.7 -2.7 4.9 16.9 7.3 5.2 4.9 5.1 3.5 -1.6 4.8 4.6 —. l 4.8 2.0 -.6 4.9 3.2 3.7 .3 3.5 2.9 9.0 4.2 -.3 8.8 2.8 9.9 5.0 10.3 8.2 3.2 2.8 8.8 26.4 4.3 59.8 68.1 5.7 5.4 7.8 5.6 10.3 16.0 12.0 13.0 27.4 23.1 .9 - 2 . 5 Private domestic funds advanced 12 Total net advances 13 U.S. Government securities 14 Municipal securities 15 Corporate and foreign bonds 16 Residential mortgages 17 Other mortgages and loans 18 Less: FHLB advances 80.0 11.9 3.4 2.8 .9 4.8 87.2 13.3 9.5 13.8 15.5 35.9 .9 80.9 4.6 9.9 12.5 15.7 42.2 4.0 72.8 5.4 11.3 20.0 12.8 24.6 1.3 4.3 38.6 32.9 4.2 -5.5 7.1 44.0 19.7 34.0 12,7 7.1 6.2 .2 -2.. 4 2.7 3.2 2.3 6.0 .2 8.4 6.2 4.3 -1.4 8.4 27.3 .9 2.2 7.0 9.3 25.5 7.7 * 98.0 145.4 -3.5 16.3 16.6 11.9 19.5 13.2 29.1 44.6 33.7 59.5 * -2.7 1 14.1 2.0 4.3 2.5 5.4 43.6 21.4 4.7 7.8 9.7 2 3 4 5 6 3.1 4.5 -4.1 10.6 5.0 .6 18.9 11.7 12.4 17.6 7 8 9 10 11 86.1 109.9 122.1 169.0 157.1 -9.2 2.1 7.1 25.3 11.7 17.9 15.4 12.0 11.9 7.3 22.1 16.8 14.2 12.1 6.9 24.8 33.4 38.4 50.8 49.1 25.0 42.3 47.9 71.4 90.0 -5.5 .2 - 2 . 4 2.5 7.8 12 13 14 15 16 17 18 1.5 7.5 4.5 6.2 7.4 20 21 22 23 Private financial intermediation Credit market funds advanced by private financial institutions Commercial banking Savings institutions Insurance and pension funds Other finance 45.4 17.5 7.9 15.5 4.5 63.5 35.9 15.0 12.9 -.3 75.3 38.7 15.6 14.0 7.0 54.9 18.2 14.5 12.3 9.9 74.9 111.4 150.2 112.2 110.6 130.1 170.5 172.7 35.1 50.6 69.7 53.2 48.0 56.9 82.7 87.0 16.9 41.5 48*. 7 45.4 37.5 48.4 48.9 49.2 17.3 14.1 16.0 12.5 15.7 14.1 17.8 21.6 5.3 15.8 1.2 9 . 4 10.6 21.0 14.8 5.7 19 20 21 22 23 24 25 26 Sources of funds Private domestic deposits Credit market borrowing 45.4 22.5 3.2 63.5 50.0 -.4 75.3 45.9 8.5 54.9 2.6 19.1 74.9 111.4 150.2 '112.2 110.6 130.1 170.5 172.7 63.2 90.8 97.8 107.7 73.9 97.2 98.6 92.9 9 . 2 20.2 -.4 2.6 15.9 16.4 24.0 37.1 24 25 26 19.8 3.7 -.5 13.6 3.0 13.9 2.3 .2 12.0 -.6 21.0 2.6 -.2 11.4 7.2 33.3 9.3 10.4 13.5 12.1 -8.5 2.9 13.1 4.5 17.6 8.2 2.6 2.1 2.3 2.3 4.2 -1.4 -2.5 4.6 1.9 1.7 20.3 8.0 -.2 4.7 5.8 2.1 45.0 16.8 8.7 7.4 10.2 2.0 -2.4 -4.2 -8.3 -13.0 — 1.1 - . 1 8.2 10.1 -.6 -4.4 1.3 1.4 24.4 20.3 -.2 13.3 7.3 52.1 39.3 4.3 18.3 16.7 5.4 48.3 33.9 - 2 . 3 3.5 - 1 3 . 7 3.4 17.5 8.0 12.9 66.6 56.1 15.0 24.2 16.9 94.2 102.2 110.6 81.2 85.7 92.6 7.7 8.7 3.4 32.9 31.0 44.0 40.6 46.0 45.3 4.1 2.1 2.0 12.8 10.6 2.1 14.5 12.1 2.4 7.7 4.8 2.8 10.5 7.1 3.5 13.0 9.6 3.4 16.5 12.1 4.4 17.9 15.1 2.8 8.1 4.1 3.9 13.8 8.4 5.5 42.0 56.3 68.7 50.5 64.2 90.0 117.7 87.1 93.0 111.0 17.9 75.9 2.1 14.1 93.2 4.3 12.7 86.4 2.9 19 27 28 29 30 31 Other sources Foreign funds Treasury balances Insurance and pension reserves Other, net Private domestic nonfinancial 32 Direct lending in credit markets 33 U.S. Government securities 34 Municipal securities 35 Corporate and foreign bonds 36 Commercial paper 37 Other investors 38 Deposits and currency 39 Time and savings accounts 40 Large negotiable CD'S 41 Other at commercial banks 42 At savings institutions 43 44 45 46 47 48 49 Money Demand deposits Currency Total of credit market instr., deposits, and currency. Public support rate (in per cent) Private fin. intermediation (in per cent) Total foreign funds 11.3 -3.2 2.2 9.6 2.7 32.2 5.1 .7 11.3 15.1 1.9 -7.2 -.8 7.7 2.2 20.8 .8 5.3 11.5 3.2 16.5 5.5 -3.6 8.4 6.3 47.9 4.7 5.1 14.1 24.0 42.6 3.1 -1.4 16.0 25.0 27 28 29 30 31 15.4 - 2 3 . 5 4.1 - 2 2 . 4 2.1 - 2 . 7 8.6 4.9 3.7 - 7 . 3 .3 .6 15.2 -3.5 2.6 7.7 6.0 2.3 8.3 -3.3 .9 4.5 6.7 -.4 22.5 11.5 3.4 5.2 .8 1.7 21.6 13.9 5.4 .2 1.2 .8 32 33 34 35 36 37 77.9 102.6 102.0 69.8 88.8 82.6 12.0 2.1 15.3 21.9 38.9 23.2 35.9 47.8 44.1 99.0 92.7 27.2 27.8 37.7 38 39 40 41 42 6.4 .3 6.1 43 44 45 124.5 120.6 46 18.0 30.2 30.6 10.8 31.2 30.1 14.6 7.9 23.8 67.9 102.8 113.7 103.3 130.3 100.7 106.6 100.9 109.9 9.1 1.8 23.2 13.5 20.1 26.3 11.6 15.3 15.4 47 48 49 * 19.4 16.0 3.4 Corporate equities not included above 1 Total net issues 2 Mutual fund shares 3 Other equities 4 Acquisitions by financial institutions. 5 Other net purchases . 5.3 4.6 3.0 3.7 2.3 .9 9.1 6.0 -1.4 -3.8 5.1 5.8 -.7 10.8 -5.8 Notes Line 1. Line 2 of p. A-70. 2. Sum of lines 3-6 or 7-10. 6. Includes farm and commercial mortgages. 11. Credit market funds raised by Federally sponsored credit agencies. Included below in lines 13 and 33. Includes all GNMA-guaranteed security issues backed by mortgage pools. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum of lines 27, 32, 39, and 44. 17. Includes farm and commercial mortgages. 25. Lines 39 + 44. 26. Excludes equity issues and investment company shares. Includes line 18. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, and liabilities of foreign banking agencies to foreign affiliates. 9.5 4.8 4.7 12.2 -2.7 9.5 2.6 6.9 11.4 -1.9 14.7 1.2 13.5 19.2 -4.6 12.0 13.0 -.6 .3 12.6 12.7 15.6 23.4 -3.6 -10.4 16.3 12.4 2.1 -.8 14.2 13.3 15.0 17.6 1.3 - 5 . 1 11.5 -.4 12.0 13.6 -2.1 7.8 -2.2 10.1 12.4 -4.6 1 2 3 4 5 29. Demand deposits at commercial banks. 30. Excludes net investment of these reserves in corporate equities. 31. Mainly retained earnings and net miscellaneous liabilities. 32. Line 12 less line 19 plus line 26. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes mortgages. 39+44. See line 25. 45. Mainly an offset to line 9. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. 47. Line 2/line 1. 48. Line 19/line 12. 49. Lines 10 plus 28. Corporate equities Line 1 and 3. Includes issues by financial institutions. A 72 U.S. BALANCE OF PAYMENTS • OCTOBER 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) Line 1970 Credits+, debits- 1971 1972 1972 1973 III II IV II P I Summary—Seasonally adjusted 1 ? 3 4 5 6 7 8 9 Merchandise trade balance Exports 1 2,176 - 2 , 6 9 8 - 6 , 9 1 2 - 1 , 7 7 4 - 1 , 5 7 3 - 1 , 7 4 5 -230 -960 41,964 42,768 48,769 12,362 13,213 15,320 16,747 11,539 -39,788 -45,466 -55,681 -13,313 -13,935 -14,958 -16,280 -16,977 -3,374 -2,013 Investment income, net 2 U.S. direct investments abroad 12 13 14 Balance on goods and services 3 -846 -679 -864 -730 -825 -608 -727 -742 7,972 9,456 3,443 -4,927 7,862 10,433 3,492 -6,063 1,791 2,450 820 -1,479 1,950 2,600 876 -1,526 2,232 2,991 875 -1,634 2,309 3,152 1,006 -1,849 2,071 3,210 1,056 -2,195 739 850 202 209 234 237 244 807 - 4 , 6 0 9 -1,426 -939 -870 150 616 -381 -1,481 16 17 18 Nonscheduled repayments of U.S. Government assets U.S. Government nonliquid liabilities to other than foreign official reserve agencies Long-term private capital flows, net U.S. direct investments abroad Foreign direct investments in the United States U.S. securities other than Treasury issues Other, reported by U.S. banks 4 -1,570 -375 -373 -429 -397 -745 -6,179 -1,801 -1,312 -1,299 -247 235 -1,734 -2,045 -2,174 -563 -581 -452 -345 -549 416 - 2 , 7 9 0 U.S. Government grants (excluding military) -1,553 2,150 Remittances, pensions, and other transfers Balance on goods, services, and remittances U.S. Government capital flows excluding nonscheduled 26 -954 -691 3,630 15 19 20 21 22 23 24 25 -3,558 -2,853 581 10 11 -2,918 -2,288 6,260 7,920 3,506 -5,166 Travel and transportation, net -8,353 -2,364 -1,893 -1,751 -592 -314 -1,829 -2,117 244 225 -1,714 137 -245 17 -542 7 -627 26 -671 111 -531 174 -433 -467 238 -1,429 -4,401 -151 -4,410 -4,943 -3,404 1,030 -115 160 -942 -966 -614 2,190 2,269 4,335 178 -862 -1,120 526 216 492 15 451 224 781 -562 -19 -771 -2,025 -1,158 160 455 273 -40 51 -128 1,768 512 1,745 -442 -293 -102 106 50 39 -9,550 -9,842 -1,855 -2,652 27 28 29 30 Nonliquid short-term private capital flows, net Claims reported by U.S. banks Claims reported by U.S. nonbanking concerns Liabilities reported by U.S. nonbanking concerns -482 -2,347 -1,023 -1,802 -361 -530 902 -15 -1,637 -1,495 -315 173 310 206 62 42 -430 -267 -122 -41 31 32 Allocations of Special Drawing Rights (SDR's) 867 717 710 -1,205 -10,784 -3,112 178 -940 -3,851 -21,965 -13,882 -2,307 -4,531 -3,851 1,456 109 246 -137 1,347 1,136 -70 281 7 -410 -274 -136 417 295 -32 154 2,367 -131 -77 -54 2,498 1,995 181 322 Balance on current account and long-term capital 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Liquid claims Reported by U.S. nonbanking concerns Liquid liabilities To foreign commercial banks To international and regional organizations To other foreigners -3,031 133 169 604 -393 -183 -1,148 178 183 209 -346 553 956 -426 -263 241 257 -5,988 252 -99 351 -6,240 -6,508 181 87 -7,788 3,542 -1,097 -1,234 -566 -742 -492 -531 -6,691 4,776 -6,908 3,862 682 104 -465 810 -9,839 -29,753 -10,340 Financed by changes in: Liquid liabilities to foreign official agencies Other readily marketable liabilities to foreign official agencies 5 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt Gold SDR's Convertible currencies Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14) Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20) Reinvested earnings of U.S. incorporated affiliates of For notes see end of table. -1,556 -947 177 177 -1,626 -1,490 -3,921 -851 -4,524 1,057 4,467 399 27 189 -2 32 547 -703 35 153 -231 -782 -982 -1,793 -1,054 -859 -1,796 -1,327 -250 -32 263 127 10 35 -6,661 -3,838 -1,939 -1,296 -643 -1,899 -1,916 10 7 -1,484 -10,499 229 -1,607 1,983 815 839 -24 1,168 734 73 361 376 7,637 27,615 9,720 -810 -551 535 341 2,477 787 -851 2,152 389 2,348 866 -249 381 1,350l 2,586 3,153 4,200 2,948! 3,192» (6) (6) (6) (6) (6) (6) 434t 498s (6) (6) (6) (6) (6) (6) -171 -245 185 920 1,645 9,121 -820 34 117 1,202 259 78 -167 -44 168 -55 3 -177 134 -15 -111 220 17 -177 82 -16 233 -13 1,189 949 716 9 8 832 OCTOBER 1973 • U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1972 Credits debits — 1970 1971 1973 1972 II Up III IV I -2,485 -1,029 -4,708 -4,701 -4,028 -1,661 -6,661 -10,499 -1,607 376 Balances excluding allocations of SDR's—Seasonally adjusted Net liquidity balance Official reserve transactions balance -4,718 -10,706 -22,682 -30,470 -14,592 -11,050 Balances not seasonally adjusted Balance on goods and services Balance on goods, services, and remittances Balance on current account Balance on current account and long-term capital Balances including allocations of SDR's: Net liquidity Official reserve transactions 3,630 2,150 416 -3,031 -1,489 -1,873 -2,471 -2,310 -2,409 -2,796 -3,333 -4,052 168 -263 -698 343 819 448 74 -865 721 332 -249 -965 -21,965 -29,753 -13,882 -10,340 -3,034 -741 -5,299 -5,590 -3,197 -1,503 -6,286 -9,995 -2,009 804 -4,718 -10,706 Balances excluding allocations of SDR's : Net liquidity Official reserve transactions -4,609 -6,179 -8,353 -9,842 -3,851 -9,839 4 807 -745 -2,790 -9,550 -22,682 -30,470 -14,592 -11,050 -3,034 -741 -5,299 -5,590 -3,197 -1,503 -6,286 -9,995 -2,009 804 1 Adjusted to balance of payments basis; excludes transfers under military grants, exports under U.S. military agency sales contracts and imports of U.S. military agencies. 2 Includes fees and royalties from U.S. direct investments abroad or from foreign direct investments in the United States. 3 Equal to net exports of goods and services in national income and product accounts of the United States. 4 Includes some short-term U.S. Govt, assets. 5 Includes changes in long-term liabilities reported by banks in the United States and in investments by foreign official agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations. 6 Not available. NOTE.—Data are from U.S. Department of Commerce, Bureau of Economic Analysis. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports i Imports * Trade balance 1970 1971 1972 1973 1970 1971 1972 3,406 3,546 3,375 3,410 3,661 3,727 3,704 3,591 3,553 3,688 3,499 3,569 3,601 3,695 3,790 3,631 3,746 3,672 3,573 3,667 4,487 2,669 3,196 3,881 4,074 3,824 3,869 3,820 3,882 3,971 4,074 4,197 4,176 4,316 4,473 4,558 4,977 5,065 5,380 5,487 5,603 5,778 5,869 6,004 3,222 3,279 3,219 3,262 3,367 3,265 3,254 3,346 3,423 3,498 3,428 3,401 3,599 3,564 3,628 3,774 3,908 4,037 3,832 3,913 4,179 3,469 3,456 4,169 4,415 4,473 4,515 4,417 4,486 4,468 4,565 4,726 4,612 4,738 5,148 5,002 5,281 5,541 5,432 5,291 5.761 5,794 5.762 6,021 II II I IV 10,327 10,798 10,848 10,756 11,086 11,049 11,727 9,746 11,767 11,673 12,447 13,347 15,421 16,868 9,720 9,864 10,023 10,327 10,792 11,719 11,924 11,094 13,403 13,370 13,903 14,888 16,254 16,846 Year3 42,659 43,549 49,208 39,952 45,563 55,555 Month: Jan Feb... Mar... Apr... May.. June.. July... Aug... Sept... Oct... Nov... Dec... Quarter: I 1 Exports of domestic and foreign merchandise; excludes Dept. of Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. 3 1970 184 267 156 148 324 462 450 245 130 190 71 168 1971 2 130 1972 1973 -304 -476 -53 196 -158 -800 -260 -288 -341 -649 -647 -596 -604 -497 -491 -530 -436 -421 -675 -444 607 933 816 425 294 -670 -197 -1,348 -1,637 -1,697 -1,456 -1,540 -833 22 2,707 -2,014 -6,347 160 -143 -161 -365 -259 -247 308 -16 106 -17 Sum of unadjusted figures. NOTE.—Bureau of the Census data. Details may not add to totals because of rounding. A 74 U.S. GOLD TRANSACTIONS • OCTOBER 1973 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales [—] or net acquisitions; in millions of dollars at $35 per fine troy ounce until May 8, 1972, and at $38 per fine troy ounce thereafter) 1972 Area and country 1965 1964 1963 1968 1967 1966 1969 1970 1971 III Western Europe: -82 -518 -55 -40 -405 -225 -100 -83 -884 -58 600 -2 -80 -35 -180 -50 150 -2 -60 -2 -85 -52 -209 -19 329 -2 80 -30 -879 -50 -835 1 -6 -35 -49 16 -88 -1,299 -659 -980 -669 150 -1 -399 -30 72 -11 54 10 -9 32 56 Asia: Jap*an Lebanon . Philippines Saudi Arabia Other Total All nther Total foreign countries 25 29 -25 -13 -25 * -129 -110 -473 25 20 -13 -6 3 12 -36 -392 -7 -50 51 -50 -25 -25 -175 -29 -13 969 -204 -796 -25 -28 -23 -1 11 -6 -40 -29 -80 -5 -54 -131 -5 17 -41 9 -4 -56 -11 -21 -42 -119 -14 -14 -22 -95 -34 9 -50 -81 -75 -24 -86 -44 -366 42 -213 -38 -16 -22 3-166 3-68 -1 -81 -6 -608 -1,031 -1,118 957 — 631 -845 -3 -3 10 —156 -22 -544 -431 -1,009 -1,121 967 — 787 -867 -547 * -36 -1,322 6-225 -392 2 * -65 -11 Intl Monetary Fund^ Grand total II 200 -10 Total I 50 -39 -3 7 325 500 41 -76 -47 200 Latin American republics: Argentina Brazil Colombia . Venezuela. . Other IV 4 -25 -601 200 -60 -32 -81 618 -130 Total 1973 1972 - 3 6 -1,547 - - 1 1 177 22 1 Includes purchase from Denmark of $25 million. 2 Includes purchase from Kuwait of $25 million. 3 Includes sales to Algeria of $150 million in 1967 and $50 million in 1968. 4 Data for I M F include the U.S. payment of $385 million increase in its gold subscription to the I M F and gold sold by the IMF to the United States in mitigation of U.S. sales to other countries making gold payments to the IMF. The country data include U.S. gold sales to various countries in connection with the I M F quota payments. Such U.S. sales to countries and resales to the United States by the I M F total $548 million each. 3 Includes IMF gold sales to and purchases from the United States, -4 -35 -10 -2 -9 2-91 -30 39 -3 -3 -3 -3 -3 40 ii 4 -3 U.S. payment of increases in its gold subscription to IMF, gold deposits by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The first withdrawal ($17 million) was made in June 1968 and the last withdrawal ($144 million) was made in Feb. 1972. IMF sold to the United States a total of $800 million of gold ($200 million in 1956, and $300 million in 1959 and in 1960) with the right of repurchase; proceeds from these sales invested by IMF in U.S. Treasury securities. IMF repurchased $400 million in Sept. 1970 and the remaining $400 million in Feb. 1972. 6 Payment to the IMF of $259 million increase in U.S. gold subscription less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in IMF operations. Does not include transactions in gold relating to gold deposit or gold investment (see Table 6). 2 Positive figures represent purchases from the IMF of currencies of other members for equivalent amounts of dollars; negative figures represent repurchase of dollars, including dollars derived from charges on purchases and from other net dollar income of the IMF. The United States has a commitment to repurchase within 3 to 5 years, but only to the extent that the holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. Purchases of dollars by other countries reduce the U.S. commitment to repurchase by an equivalent amount. 3 Includes dollars obtained by countries other than the United States from sales of gold to the IMF. 4 Represents the U.S. gold tranche position in the IMF (the U.S. quota minus the holdings of dollars of the IMF), which is the amount that the United States could purchase in foreign currencies automatically if needed. Under appropriate conditions, the United States could purchase additional amounts equal to its quota. 5 Includes $259 million gold subscription to the IMF in June 1965 for a U.S. quota increase, which became effective on Feb. 23,1966. In figures published by the IMF from June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. 6 Includes $30 million of Special Drawing Rights. 7 Represents amount payable in dollars to the IMF to maintain the value of IMF holdings of U.S. dollars. NOTE.—The initial U.S. quota in the I M F was $2,750 million. The U.S. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 1966, to $6,700 million in Dec. 1970, and to $7,274 million in May 1972 as a result of the change in par value of the U.S. dollar. Under the Articles of Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. OCTOBER 1973 • U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) Gold stock i End ol year Total 1959... 1960... 1961... 1962... 1963... 1964... Convertible foreign currencies Reserve position in IMF 3 Total 2 Treasury 21,504 19,359 18,753 17,220 16,843 16,672 19,507 17,804 16,947 16,057 15,596 15,471 19,456 17,767 16,889 15,978 15,513 15,388 432 1,997 1,555 1,690 1,064 1,035 769 1965... 15,450 1966... 14,882 1967... 14,830 1968.. . 15,710 1 9 6 9 . . . 7 16,964 6 13,806 13,235 12,065 10,892 11,859 613,733 13,159 11,982 10,367 10,367 781 1,321 2,345 3,528 72,781 6 863 326 420 1,290 2,324 1970... 14,487 1971. . . 812,167 19729.. 13,151 11,072 10,206 10,487 10,732 10,132 10,410 629 8 276 241 1,935 585 465 Gold stock End of month SDR's 4 116 99 212 Treasury Convertible foreign currencies 5 Reserve position in IMF3 Total Total 2 1972 Sept... Oct... Nov... Dec... 1 Includes (a) gold sold to the United States by the I M F with the right of repurchase, and (b) gold deposited by the IMF to mitigate the impact on the U.S. gold stock of foreign purchases for the purpose of making gold subscriptions to the IMF under quota increases. For corresponding liabilities, see Table 6. 2 Includes gold in Exchange Stabilization Fund. 3 The United States has the right to purchase foreign currencies equivalent to its reserve position in the IMF automatically if needed. Under appropriate conditions the United States could purchase additional amounts equal to the U.S. quota. See Table 5. 4 Includes allocations by the IMF of Special Drawing Rights as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDRs. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 6 Reserve position includes, and gold stock excludes, $259 million gold subscription to the IMF in June 1965 for a U.S. quota increase which 10,487 10,487 10,487 10,487 10,410 10,410 10,410 10,410 323 414 403 241 449 454 459 465 1973 Jan... Feb... Mar. . Apr... May.. June.. July.. Aug... Sept... 851 1,100 1,958 13,217 13,313 13,307 13,151 13,054 12.926 12,931 12,904 12,916 12,914 12,918 12,923 12.927 10,487 10,487 10,487 10,487 10,487 10,487 10,487 10,487 10,487 10,410 10,410 10,410 10,410 10,410 10,410 10,410 10,410 10,410 140 8 469 473 478 460 464 470 474 479 483 16 became effective on Feb. 23, 1966. In figures published by the IMF from June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. 7 Includes gain of $67 million resulting from revaluation of the German mark in Oct. 1969, of which $13 million represents gain on mark holdings at time of revaluation. 8 Includes $28 million increase in dollar value of foreign currencies revalued to reflect market exchange rates as of Dec. 31, 1971. 9 Total reserve assets include an increase of $1,016 million resulting from change in par value of the U.S. dollar on May 8, 1972; of which, total gold stock is $828 million (Treasury gold stock $822 million), reserve position in IMF $33 million, and SDR's $155 million. NOTE.—See Table 24 for gold held under earmark at F.R. Banks for foreign and international accounts. Gold under earmark is not included in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) IMF holdings of dollars (end of period) Transactions affecting IMF holdings of dollars (during period) U.S. transactions with IMF Transactions by other countries with IMF Period Payments of subscriptions in dollars 1946—1957 1958—1963 1964—1966 Net gold sales by IMF i 2,063 1,031 776 600 150 1,155 1967 1968 1969 1970 1971 1972 22 6712 * Transactions in foreign currencies 2 1,640 -84 7 541 150 1,362 200 IMF net income in dollars 827 2,740 6 775 2,315 1,744 775 3,090 4,834 28 75 94 1,975 1,035 5326 268 741 40 -94 -870 - 1 ,034 1,929 1,350 694 4,740 3,870 2,836 4,765 6,115 6,810 92 75 55 71 91 94 420 1,290 2,324 1,935 585 465 -6 -5 -4 -6 6,825 6,820 6,816 6,810 94 94 94 94 449 454 459 465 -4 -5 -5 18 -4 -6 -4 -5 -4 6,806 6,801 6,796 6,814 6,810 6,804 6,800 6,795 6.791 94 93 93 94 94 94 93 93 93 469 473 478 460 464 470 474 479 483 -2,670 -1,666 -723 20 20 19 25 -28 -47 -114 -806 -1,343 -854 -24 -4 -5 -5 18 -4 -6 -4 -5 -4 Per cent of U.S. quota -45 60 45 1973—jan Feb Mar Apr May June July Aiiff Sept For notes see opposite page. Amount Repurchases in dollars -6 -5 -4 -6 J Total change Purchases of dollars 3 1972—Sept Oct Nov Dec U.S. reserve position in IMF (end of period) 4 ''' r A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions 2 Total Liquid liabilities to IMF arising from gold transactions i Liquid liabilities to other foreigners Liquid Shortterm liabilities reported by banks in U.S. Liquid Nonmarliabiliketable ties Nonmar- noncon- Other Market- ketable vertible readily to comconable market- mercial U.S. banks vertible U.S. able Treas. U.S. Treas. liabili- abroad6 bonds Treas. bonds ties 5 and 4 bonds and notes and notes 3 notes Total Shortterm liabilities reported by banks in U.S. 24,268 800 12,914 11,963 751 5,346 3,013 2,565 /26,433 \26,394 800 800 14,459 14,425 12,467 12,467 1,217 1,183 703 703 63 63 9 9 5,817 5,817 3,397 3,387 3,046 3,046 J29,313 \29,364 800 800 15,790 15,786 13,224 13,220 1,125 1,125 1,079 1,079 204 204 158 158 7,271 7,303 3,730 3,753 3,354 3,377 200 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 (31,145 \31,020 1,011 1,011 14,841 14,896 12,484 12,539 860 860 256 256 328 328 913 913 10,116 9,936 4.271 4.272 3.743 3.744 (35,819 \35,667 1,033 1,033 18,201 18,194 14,034 14,027 908 908 711 711 741 741 1,807 1,807 11,209 11,085 4,685 4,678 4,127 4,120 (38,687 \38,473 1,030 1,030 17,407 17,340 11,318 11,318 529 462 701 701 2,518 2,518 2,341 2,341 14,472 14,472 5,053 4,909 4,444 4,444 »o/45,755 \ 45,914 1,019 1,019 ioi5,975 15,998 11,054 11,077 346 346 10 555 555 102,515 2,515 1,505 1,505 23,638 23,645 4,464 4,589 3,939 4,064 (47,009 \46,960 566 566 23,786 23,775 19,333 19,333 306 295 429 429 3,023 3,023 695 695 17,137 17,169 4,676 4,604 4,029 4,039 (67,681 167,808 544 544 51,209 50,651 39,679 39,018 1,955 1,955 6,060 6,093 3,371 3,441 144 144 10,262 10,949 4,138 4,141 3,691 3,694 60,606 60,075 60,931 61,127 61,520 40,616 39,633 40,266 40,045 39,994 3,881 4,117 4,457 4,834 5,236 12.094 12.095 12.097 12.098 12,108 3,647 3.804 3,651 3,651 3,639 368 426 460 499 543 12,906 13,577 14,173 14,776 14,802 4,419 4,630 4,822 4,745 4,952 4,041 4,241 4,416 4,322 4,527 60,797 68,475 38,535 45,413 46,924 45,949 46,099 45,693 46,122 45,599 5,798 12,110 6,377 12,110 6,917 1212,128 6,934 12,245 6,934 12,245 6,934 12,245 6,934 12,245 6,906 12,319 3,780 3.627 3,617 3,631 3.628 3.805 3,705 3,555 574 948 1,745 1,989 1,996 2,004 2,006 2,009 14,793 12,809 12,952 13,070 14,296 14,482 15,384 15,087 4,891 4,967 4,959 5,148 5,146 5,320 5,255 5,319 4,466 4,595 4,583 4,749 4,762 4,937 4,881 4,984 79,454 79,728 81,420 82,372 82,900 82,073 87,870 1290,878 1390,596 92,103 92,184 93,198 92,387 1271,331 70,748 70,902 70,681 71,012 70,388 1 Includes (a) liability on gold deposited by the I M F to mitigate the impact on the U.S. gold stock of foreign purchases for gold subscriptions to the I M F under quota increases, and (b) U.S. Treasury obligations at cost value and funds awaiting investment obtained from proceeds of sales of 2 gold by the IMF to the United States to acquire income-earning assets. Includes BIS and European Fund. 3 Derived by applying reported transactions to benchmark data; breakdown of transactions by type of holder estimated 1959-63. 4 Excludes notes issued to foreign official nonreserve agencies. 5 Includes long-term liabilities reported by banks in the United States and debt securities of U.S. Federally-sponsored agencies and U.S. corporations. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to commercial banks abroad and to "other foreigners." 1 Includes marketable U.S. Treasury bonds and notes held by commercial banks abroad. 8 Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks. From Dec. 1957 through Jan. 1972 includes difference between cost value and face value of securities in I M F gold investment account. 9 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on first line are comparable with those shown for the preceding date; figures on second line are comparable with those shown for the following date. 10 Includes $101 million increase in dollar value of foreign currency Marketable U.S. Treas. bonds and notes 3 • 7 liabilities resulting from revaluation of the German mark in Oct. 1969 as follows: liquid, $17 million, and other, $84 million. 11 Data on the second line differ from those on first line because certain accounts previously classified as "official institutions" are included with "banks"; a number of reporting banks are included in the series for the first time; and U.S. Treasury securities payable in foreign currencies issued to official institutions of foreign countries have been increased in value to reflect market exchange rates as of Dec. 31, 1971. 12 Includes $15 million increase in dollar value of foreign currency liabilities revalued to reflect market exchange rates. 13 Includes $147 million increase in dollar value of foreign currency liabilities to official institutions of foreign countries revalued to reflect market exchange rates as follows: short-term liabilities, $15 million; nonmarketable convertible U.S. Treasury bonds and notes, $113 million; and nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million. NOTE.—Based on Treasury Dept. data and on data reported to the Treasury Dept. by banks and brokers in the United States. Data correspond generally to statistics following in this section, except for the exclusion of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign official nonreserve agencies, the inclusion of investments by foreign official reserve agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations, and minor rounding differences. Table excludes IMF "holdings of dollars," and holdings of U.S. Treasury letters of credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total foreign countries Western Europe 1 Canada 18,194 /17,407 \17,340 15,975 15,998 /23,786 123,775 /51,209 150,651 10,321 8,070 8,062 4 7,074 7,074 13,620 13,615 30,010 30.134 1,310 1,867 1,866 1,624 1,624 2,951 2,951 3,980 3,980 1,582 1,865 1,865 1,888 1,911 1,681 1,681 1,414 1,429 4,428 5,043 4,997 4,552 4,552 4,713 4,708 14,519 13,823 250 259 248 546 546 407 407 415 415 303 303 302 291 291 414 413 871 870 1972—Aug. Sept. Oct.. Nov. Dec. 60,606 60,075 60,931 61,127 61,520 36,612 35,985 35,078 34,608 34,197 4,463 4,469 4,468 4.289 4,279 1,420 1,368 1,473 1,444 1,731 15,352 15,291 16,805 17,372 17,573 652 685 616 694 777 2,107 2,277 2,491 2,720 2,963 1973—Jan.. Feb. Mar. 60,797 68,475 71,331 70,748 70,902 70,681 71,012 70,388 34,146 40,773 6 45,229 7 45,608 46,641 46,962 47.135 47,145 4,201 4.290 4,221 4,157 4,104 4,111 4,043 3,836 1,728 1,895 1,749 1,915 1,903 1,993 2,073 2,004 17,034 17,907 16,564 15,415 14,417 13,725 13,683 13,631 673 809 823 839 940 992 928 738 3,015 2,801 2,745 2,814 2,897 2,898 3,150 3,034 End of period 1967.. 1968 3 1969 3 1970 3 1971 5 June.. Julyf. Aug.**. 1 2 Includes Bank for International Settlements and European Fund. Includes countries in Oceania and Eastern Europe, and Western European dependencies in Latin America. 3 See note 9 to Table 6. 4 Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. 5 Data on second line differ from those on the first line because certain accounts previously classified as "Official institutions" are included in "Banks"; a number of reporting banks are included in the series for the first time; and U.S. Treasury liabilities payable in foreign currencies to official institutions of foreign countries have been increased in value by $110 million to reflect market exchange rates as of Dec. 31, 1971. Latin American republics Asia Other countries Africa 6 Includes $15 million increase in dollar value of foreign currency liabilities revalued to reflect market exchange rates. 7 Includes $147 million increase in dollar value of foreign currency liabilities revalued to reflect market exchange rates. NOTE.—Data represent short- and long-term liabilities to the official institutions of foreign countries, as reported by banks in the United States; foreign official holdings of marketable and nonmarketable U.S. Treasury securities with an original maturity of more than 1 year, except for nonmarketable notes issued to foreign official nonreserve agencies; and investments by foreign official reserve agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international and regional organizations 6 To all foreigners Payable in dollars End of period Deposits Demand Total 1 Time 2 U.S. Treasury bills and certificates 3 Total Other shortterm liab. 4 Payable in foreign currencies 40,199 41,719 41,761 55,404 55,428 39,770 41,351 41,393 55,018 55,036 20,460 15,785 15,795 10,399 6,459 6,959 5,924 5,961 5,209 4,217 5,015 14,123 14,123 33,025 33,025 7,336 5,519 5,514 6,385 11,335 429 368 368 386 392 58,884 58,684 60,136 60,653 60,736 58,429 58,206 59,598 60,111 60,239 6,631 6,927 7,071 7,011 8,288 4,867 4,939 5,146 5,378 5,628 33,745 32,714 33,071 32,774 31,850 13,186 13,626 14,310 14,948 14,473 59,173 64,234 65,883 65,196 66,747 66,713 67,905 67,217 58,648 63,722 65,335 64,612 66,175 66,083 67,298 66,606 7,452 7,786 7,606 8,118 8,374 9,111 8,987 8,431 5,532 5,594 5,610 5,652 5,700 5,824 5,873 6,149 30,134 36,538 37,966 36,459 35,965 34,951 34,556 34,258 15,530 13,803 14,153 14,382 16,136 16,197 17,882 17,768 For notes see the following page. 2 IMF gold investment^ Dep osits Total Demand Time 2 U.S. Treasury bills and certificates Other shortterm liab. 4 613 820 820 1,372 1,367 62 69 69 73 73 83 159 159 192 192 244 211 211 210 210 223 381 381 896 892 455 478 538 543 496 1,322 1,233 1,281 1,511 1,412 65 79 63 95 86 267 224 210 241 201 172 145 204 380 326 818 785 804 794 800 526 513 548 584 572 631 607 611 1,379 1,417 1,425 1,428 1,589 1,602 1,518 1,547 118 133 114 119 147 155 206 178 171 143 133 111 118 133 114 114 279 303 279 240 148 189 116 61 811 838 899 957 1,177 1,125 1,081 1,193 800 400 400 400 400 A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) To official institutions 1 0 To residents of foreign countries Payable in dollars Total Deposits Demand Time 2 Payable in dollars U.S. Treasury bills and certificates 3 Other shortterm liab.4 Payable in foreign currencies Total Deposits Demand 38,786 /40,499 140,541 J53,632 153,661 20,397 15,716 15,726 10,326 6,386 6,876 5,765 5,802 5,017 4,025 3,971 13,511 13,511 32,415 32,415 7,113 5,138 5,133 5,489 10,443 429 368 368 386 392 11,077 19,333 19,333 39,679 39,018 57,563 57,451 58,855 59,143 59,323 6,566 6,848 7,008 6,915 8,203 4,600 4,716 4,935 5,137 5,427 33,573 32,569 32,867 32,394 31,523 12,368 12,841 13,506 14,154 13,674 455 478 538 543 496 57,794 62,817 64,459 63,768 65,157 65,112 66,387 65,670 7,333 7,653 7,492 7,999 8,227 8,956 8,781 8,253 5,361 5,450 5,477 5,541 5,583 5,691 5,758 6,035 29,855 36,235 37,687 36,219 35,817 34,762 34,440 34,196 14,720 12,965 13,254 13,425 14,959 15,072 16,801 16,575 526 513 548 584 572 631 607 611 1,930 1,652 1,652 Time 2 U.S. Treasury bills and certificates 3 Other shortterm liab.4 3,844 13,367 13,367 32,311 32,311 2,159 1,327 2,942 2,554 2,554 2,504 2,039 40,611 39,633 40,266 40,045 39,994 1,308 1,239 1,335 1,271 1,589 2,412 2,459 2,569 2,643 2,876 33,499 32,497 32,794 32,315 31,453 3,220 3,268 3,398 3,645 3,905 38,535 45,413 46,924 45,949 46,099 45,693 46,122 45,599 1,405 1,756 1,543 1,714 1,723 1,940 1,934 1,575 2,875 2,841 2,832 2,916 2,933 3,115 3,183 3,363 29,779 36,147 37,620 36,137 35,736 34,684 34,360 34,118 4,304 4,497 4,757 4,996 5,520 5,767 6,456 6,415 To b a n k s i i 1,620 1,612 1,612 3,086 3,177 To other foreigners Payable in dollars End of period Total Deposits Total Demand Time 2 U.S. Treasury bills and certificates Other shortterm liab.4 Deposits Total Demand Time 2 U.S. Treasury bills and certificates Other shortterm liab.4 To banks and other foreigners: Payable in foreign currencies 27,709 J21.166 \21,208 fl 3,953 \14,643 23,419 16,917 16,949 10,034 10,721 16,756 12,376 12,385 7,047 3,399 1,999 1,326 1,354 850 320 20 14 14 8 8 4,644 3,202 3,197 2,130 6,995 4,064 4,029 4,039 3,691 3,694 1,711 1,688 1,688 1,660 1,660 1,935 1,886 1,895 1,663 1,666 107 131 131 96 96 312 325 325 274 271 226 2?0 220 228 228 16,951 17,818 18,589 19,097 19,329 12,626 13,269 13,805 14,404 14,477 3,555 3,833 3,798 3,938 4,659 336 348 434 481 525 6 5 3 5 5 8,729 9,084 9,570 9,981 9,287 4,040 4,241 4,417 4,322 4,527 1,702 1,776 1,875 1,706 1,954 1,852 1,909 1,933 2,014 2,026 67 68 70 75 65 419 489 538 528 481 284 308 368 372 325 19,260 17,405 17,535 17,820 19,059 19,419 20,265 20,071 14,438 12,467 12,576 12,672 13,911 14,038 14,966 14,603 4,155 4,084 4,144 4,335 4,645 5,053 4,957 4,803 415 483 518 514 535 404 432 490 7 5 5 7 8 8 8 11 9,861 7,895 7,909 7,817 8,723 8,573 9,568 9,299 4,467 4,596 4,583 4,750 4,763 4,937 4,881 4,984 1,773 1,813 1,805 1,951 1,859 1,963 1,890 1,875 2,070 2,127 2,127 2,112 2,115 2,172 2,143 2,182 69 83 63 75 73 70 72 67 555 573 588 611 716 732 776 861 355 341 376 398 385 444 418 483 1 Data exclude "holdings of dollars" of the IMF. 2 Excludes negotiable time certificates of deposit, which are included in "Other." 3 Includes nonmarketable certificates of indebtedness issued to official institutions of foreign countries. 4 Principally bankers' acceptances, commercial paper, and negotiable time certificates of deposit. See also note 8(a). 5 U.S. Treasury bills and certificates obtained from proceeds of sales of gold by the I M F to the United States to acquire income-earning assets. Upon termination of investment, the same quantity of gold was reacquired by the IMF. 6 Principally the International Bank for Reconstruction and Development and the Inter-American Development Bank. Includes difference between cost value and face value of securities in I M F gold investment account. 7 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 8 Data on second line differ from those on first line because (a) those liabilities of U.S. banks to their foreign branches and those liabilities of U.S. agencies and branches of foreign banks to their head offices and foreign branches, which were previously reported as deposits, are included in "Other short-term liabilities"; (b) certain accounts previously classified as "Official institutions" are included in "Banks"; and (c) a number of reporting banks are included in the series for the first time. 9 Includes $15 million increase in foreign currency liabilities to official institutions of foreign countries revalued to reflect market exchange rates. i o Foreign central banks and foreign central govts, and their agencies, and Bank for International Settlements and European Fund. 11 Excludes central banks, which are included in "Official institutions." NOTE.—"Short term" refers to obligations payable on demand or having an original maturity of 1 year or less. For data on long-term liabilities reported by banks, see Table 10. Data exclude the "holdings of dollars" of the International Monetary Fund; these obligations to the I M F constitute contingent liabilities, since they represent essentially the amount of dollars available for drawings from the I M F by other member countries. Data exclude also U.S. Treasury letters of credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Development Bank and the International Development Association. OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) Area and country 1972 1971 1973 Dec. Italy Norway Portugal Spain Sweden Switzerland Turkey United Kingdom Yugoslavia Other Western Europe t U.S.S.R Other Eastern Europe Total Dec. Jan. Feb. Mar. Apr. May June July? Aug.* 254 701 168 160 3,150 6,596 170 1,887 270 685 303 203 792 3,249 68 7,379 34 1,391 14 53 245 1,070 254 157 4,630 5,514 190 1,354 1,442 960 413 223 1,081 2,838 96 5,430 98 1,479 10 58 272 1,092 284 163 4,441 5,346 238 1,338 1,468 978 416 256 1,184 2,857 97 5,011 117 1,483 11 81 268 974 321 152 4,434 5,034 210 1,085 1,356 973 439 231 1,189 2,924 109 5,510 82 1,464 14 71 267 1,165 364 158 4,483 10,494 224 1,041 1,762 995 498 222 1,403 2,845 94 4,546 78 1,502 21 65 281 1,253 400 142 5,000 12,990 223 968 2,532 1,018 518 256 1,483 2,901 105 4,657 58 1,619 14 71 292 1,245 406 168 5,167 12,701 175 1,020 2,543 1,035 502 250 1,682 2,959 118 4,741 69 1,772 8 71 301 1,373 502 244 5,327 12,161 219 1,171 2,427 1,046 511 325 1,787 3,272 71 5,899 73 2,159 9 66 297 1,376 489 194 5,406 12,003 219 1,072 2,369 1,049 500 334 1,905 3,268 75 6,317 66 2,355 11 74 305 1,443 477 165 5,452 12,837 240 870 2,029 1,082 477 282 1,951 3,310 102 6,457 66 2,960 18 81 302 1,366 437 153 5,246 12,912 236 1,506 1,945 1,055 472 237 1,871 3,245 115 5,815 57 2,900 17 90 27,529 27,541 27,134 26,840 32,227 36,488 36,924 38,944 39,378 40,603 39,976 3,441 Europe: Austria Belgium-Luxembourg Denmark Nov. 3,799 3,484 3,889 3,325 3,290 3,618 3,816 3,306 3,380 3,789 441 656 342 191 188 6 715 154 164 108 963 655 87 37 547 576 564 135 185 6 659 150 183 133 926 751 89 57 631 539 605 137 210 6 831 167 225 140 1,077 860 86 44 631 290 643 132 210 7 783 193 176 140 995 839 81 235 689 261 648 136 218 7 800 201 167 138 1,051 827 84 237 687 198 671 143 184 6 788 171 172 132 948 804 76 216 694 226 703 140 197 7 853 168 167 143 1,044 818 72 243 730 496 768 138 218 7 843 192 170 150 967 778 64 264 727 440 765 140 200 10 925 186 180 180 1,054 780 68 648 750 769 920 134 200 7 919 194 190 128 1,066 744 78 408 800 564 732 126 168 7 975 217 177 126 1,078 790 61 403 4,708 4,961 5,558 5,354 5,461 5,196 5,477 5,785 6,303 6,505 6,225 39 258 312 89 63 150 14,295 196 306 126 595 39 639 310 107 107 141 16,152 201 394 128 965 39 675 318 98 108 177 15,843 192 438 171 1,071 39 737 336 115 101 139 14,570 224 446 211 951 37 783 319 134 96 146 14,733 210 453 187 897 49 816 337 114 89 137 12,344 227 513 170 869 43 831 330 125 90 144 10,415 214 520 166 940 44 830 368 145 117 142 9,056 231 583 177 872 41 843 341 110 155 161 8,458 226 558 175 883 38 788 289 141 176 159 8,126 219 559 146 958 43 811 356 103 140 146 8,002 217 541 140 1,139 16,429 19,182 19,131 17,868 17,995 15,665 13,818 12,565 11,951 11,600 11,638 24 9 78 12 474 24 11 83 17 678 24 12 115 21 768 21 9 111 18 573 28 8 104 23 728 17 13 125 22 739 33 9 125 28 798 67 8 120 45 786 29 11 155 17 904 29 15 169 21 803 41 10 100 27 683 597 814 939 733 891 917 992 1,025 1,118 1,037 862 916 42 2,801 46 3,027 51 3,046 65 2,861 57 2,849 54 2,882 57 2,961 60 2,985 71 3,202 61 3,124 57 Latin America: Bahamas 2 Brazil Chile Cuba Peru Venezuela Other Latin American republics Netherlands Antilles and Surinam Other Latin America Total Asia: China, People's Rep. of (China Mainland) China, Republic of (Taiwan) Hong Kong Indonesia Israel Korea Thailand Other Total Africa: Egypt Morocco South Africa Zaire Other Total Other countries: Australia All other Total Total foreign countries International and regional: International3 Latin American regional Other regional4 Total Grand total For notes see the following page. 957 2,846 3,077 3,111 2,918 2,903 2,939 3,022 3,056 3,263 3,181 53,661 59,143 59,323 57,794 62,817 64,459 63,768 65,157 65,112 66,387 65,670 1,327 298 142 1,030 316 165 951 307 155 930 301 148 957 318 142 979 320 126 982 337 109 1,144 337 108 1,190 321 89 1,137 301 81 1,185 289 72 1,767 1,511 1,412 1,379 1,417 1,425 1,428 1,589 1,602 1,518 1,547 55,428 60,653 60,736 59,173 64,234 65,883 65,196 66,747 66,713 67,905 67,217 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 A 80 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1972 1971 Area and country 1973 1972 1971 Area and country Apr. Dec. Apr. Dec. Apr. Other Western Europe: Cyprus Iceland Ireland, Rep. of 7 10 29 11 2 16 2 9 15 3 9 17 9 12 22 Other Latin American republics: Bolivia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Haiti Honduras Jamaica Nicaragua Paraguay Trinidad & Tobago 59 43 90 72 80 97 19 44 19 47 15 14 55 62 123 57 78 117 18 42 19 50 17 10 53 70 91 62 83 123 23 50 32 66 17 15 87 92 114 121 76 132 27 58 41 61 22 20 65 75 104 109 86 127 25 64 32 79 26 17 Other Latin America: Bermuda British West Indies (2) 38 (2) 32 (2) 23 (2) 36 127 100 Other Asia: Afghanistan Bahrain Burma Cambodia Iran Iraq Jordan 15 35 3 2 67 7 3 19 21 10 5 59 10 2 17 18 5 2 88 9 2 25 24 2 3 93 10 4 19 (7) 114 (7) 4 1 Includes Bank for International Settlements and European Fund. 2 Bermuda included with Bahamas through Dec. 1972. 3 Data exclude "holdings of dollars" of the International Monetary Fund but include IMF gold investment until Feb. 1972, when investment was terminated. Apr. Apr. 36 2 60 28 28 39 41 43 4 3 161 20 3 46 23 33 29 79 35 4 4 159 16 3 60 25 58 53 80 45 6 6 185 13 12 6 13 21 91 25 2 23 11 8 9 23 274 46 2 31 29 10 6 5 14 6 9 3 13 1 14 25 296 56 2 5 6 7 10 7 22 Other Asia—Cont.: Kuwait Laos Lebanon Malaysia Pakistan Ryukyu Islands (incl. Okinawa) 6 Saudi Arabia Singapore Sri Lanka (Ceylon) Syria Vietnam Dec. 23 27 Other Africa: Algeria Ethiopia (incl. Eritrea) Ghana Kenya Liberia Libya Nigeria Southern Rhodesia Sudan Tanzania Tunisia Uganda Zambia 1 All other: New Zealand 11 4 Asian, African, and European regional organizations, except BIS and European Fund, which are included in "Europe." 5 Represent a partial breakdown of the amounts shown in the "other" categories (except "Other Eastern Europe"). 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries End of period Total To intl. and regional Total Country or area Official institutions Banks 1 Other foreigners Germany United Kingdom Other Europe Total Latin America Japan 655 385 3 582 137 87 70 62 9 • 1 1 24 33 32 32 32 17 17 16 14 10 1 1 1 1 1 2 2 2 30 71 96 98 96 94 93 95 13 16 16 16 16 10 19 17 1969 1970 1971 2,490 1,703 902 889 789 446 1,601 914 457 1,505 695 144 56 165 257 40 53 56 « 110 164 46 42 52 7 26 30 239 152 111 1972—Aug Sept Oct Nov Dec 1,093 1,067 1,068 1,051 1,000 650 612 615 600 562 443 455 453 450 439 88 99 97 94 93 269 269 269 269 259 86 87 87 88 87 165 167 165 165 165 68 68 68 68 63 34 35 37 37 32 135 135 135 134 136 1973—Jan Feb Mar Apr May June July? Aug.? 1,026 1,259 1,389 1,382 1,362 1,453 1,484 1,498 599 596 680 669 671 756 756 784 427 663 709 713 691 697 727 715 74 304 328 329 313 311 311 312 257 258 269 274 274 274 275 275 96 100 112 111 104 113 141 127 165 164 164 164 164 164 164 165 61 59 66 68 68 68 68 68 30 233 234 239 231 233 235 235 127 118 133 128 115 125 145 133 i Excludes central banks, which are included with "Official institutions." * * Other Asia All other countries OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1972 1973 Nov. Aug. Sept. 6 17 45 280 79 5 6 15 45 293 79 5 6 35 45 308 79 5 6 85 45 326 79 5 432 443 478 372 432 479 1 6 1 6 7 Europe: Belgium-Luxembourg Sweden Oct. Dec. Jan. Feb. 6 85 45 327 79 5 6 110 45 327 79 5 6 135 44 276 79 5 545 547 572 559 558 558 1 6 1 6 1 6 7 7 7 3,310 10 3,481 10 3,756 10 3,321 3,492 127 133 Other Western Europe Total Latin America: Latin American republics Total Asia: Other Asia Total Mar. Apr. May June July? Aug.p 6 135 43 281 85 5 6 135 43 280 85 5 6 135 42 275 85 5 6 135 37 236 85 5 6 135 43 278 79 5 6 135 44 300 79 5 544 546 569 555 554 547 504 559 561 561 560 560 560 560 1 6 1 6 1 6 1 6 1 6 1 6 1 6 5 6 7 7 7 7 7 7 7 7 11 4,003 10 4,380 10 4,867 10 5,421 10 5,961 10 5,978 10 5,978 10 5,977 10 5,977 9 5,949 9 3,766 4,013 4,391 4,877 5,431 5,971 5,988 5,988 5,988 5,987 5,959 133 133 133 183 183 183 183 183 183 183 183 * Total foreign countries * * * 25 25 25 25 25 25 25 25 25 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 7,333 7,318 7,317 7,308 7,241 176 27 186 27 186 27 186 28 186 28 186 28 176 26 186 26 176 27 142 27 72 27 1 28 1 45 International and regional: International Latin American regional 203 213 213 214 214 214 202 212 202 169 100 29 46 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 7,535 7,487 7,417 7,337 7,287 Total Grand total NOTE.—Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1 year, and are based on benchmark surveys of holdings and regular monthly reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars End of period Total Total Belgium Canada i China, Rep. of (Taiwan) 1969 1970 197 1 43,181 3,563 5 9,657 1,431 2,480 7,829 32 32 32 1,129 2,289 2,640 20 20 20 1972—Sept. Oct.. Nov. Dec.. 16,022 15.871 15.872 15,872 14,345 14,345 14,345 14,333 32 32 32 20 2,840 2,840 2,840 2,840 1973—Jan.. Feb. Mar. Apr. May June, July. Aug. Sept. 16,016 15,863 615,870 616,015 16,012 16,189 16,089 16,015 15,813 14,474 14,474 14,464 14,459 14,456 14,633 14,533 14,383 14,183 20 20 20 20 20 2,840 2,840 2,840 2,840 2,840 2,840 2,840 2,690 2,490 20 20 20 20 20 1 Includes bonds issued in 1964 to the Government of Canada in connection with transactions under the Columbia River treaty. Amounts outstanding end of 1967 through Oct. 1968, $114 million; Nov. 1968 through Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and Oct. 1970 through Oct. 1971, $24 million. 2 Notes issued to the Government of Italy in connection with military purchases in the United States. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 million equivalent were held by a group of German commercial banks from 20 10 5 2 Germany Payable in foreign currencies Italy 2 Korea Thailand Total Germany 3 Italy Switzerland 125 541 541 1,215 5,000 135 25 22 100 100 100 4 1,750 1,083 5 1,827 4 1,084 542 612 11,315 11,315 11,315 11,315 22 22 22 22 100 100 100 1,677 1,526 1,528 1,539 459 306 306 306 1,218 1,220 1,222 1,233 11,471 11,471 11,471 11,471 11,471 11,670 11,670 11,670 11,670 22 22 22 22 22 22 22 22 22 100 100 100 100 100 100 1,542 1,389 61,407 61,556 1,556 1,556 1,556 1,631 1,631 306 153 153 172 172 172 172 172 172 1,236 1,236 1,254 1,384 1,384 1,384 1,384 1,458 1,458 100 June 1968 through Nov. 1972. The dollar value of these notes was increased by 4$10 million in Oct. 1969 and by $18 million as of Dec. 31, 1971. Includes an increase in dollar value of $84 million resulting from revaluation of the German mark in Oct. 1969. 5 Includes $106 million increase in dollar value of foreign currency obligations revalued to reflect market exchange rates as of Dec. 31, 1971. 6 Includes $15 million increase in Mar. and $145 million increase in Apr. in dollar value of foreign currency obligations revalued to reflect market exchange rates. A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1972 1971 1973 Area and country Dec. Europe: Austria Belgium-Luxembourg Denmark Finland France Germany Greece Italy Netherlands Norway Portugal Spain Sweden Switzerland Turkey United Kingdom Yugoslavia Other Western Europe U.S.S.R Other Eastern Europe Total Canada. Latin America: Argentina Bahamas i Brazil Chile Colombia Cuba Mexico Panama Peru Uruguay Venezuela Other Latin American republics Netherlands Antilles and Surinam Other Latin America Total Asia: China, People's Rep. of (China Mainland) China, Republic of (Taiwan) Hong Kong India Indonesia Israel Japan Korea Philippines Thailand Other Total Africa: Egypt Morocco South Africa Zaire Other Total Other countries: Australia All other Total Total foreign countries International and regional Grand total 1 Nov. Dec. Jan. Mar. 11 57 49 135 263 235 30 160 105 67 12 70 118 145 3 559 19 12 28 37 10 84 57 123 272 296 27 170 101 62 21 215 123 150 4 723 16 19 32 38 8 120 59 118 330 321 29 255 108 69 19 207 156 125 6 849 22 20 41 49 7 67 58 127 275 267 34 221 93 62 21 210 176 187 5 672 18 23 44 47 2,114 2,545 2,911 2,613 3,431 1,627 1,695 1,897 1,939 2,372 305 262 435 139 380 13 934 125 176 41 268 374 18 26 357 403 631 53 396 15 1,168 177 147 38 386 368 13 33 379 476 649 52 418 13 1,202 244 145 40 383 388 14 36 389 413 641 53 408 12 1,202 219 129 40 388 393 15 56 417 521 727 49 412 13 1,213 220 136 38 385 379 15 70 3,494 4,187 4,437 4,359 109 70 21 41 129 4,280 348 138 172 252 1 201 76 17 74 105 3,998 317 160 183 260 I 194 93 14 87 105 4,158 296 149 191 300 5,560 5,393 10 4 156 21 96 13 124 59 122 312 414 23 271 152 63 26 236 249 206 6 1,001 20 26 55 51 Apr. May June Julyf Aug.f 9 87 63 134 451 345 32 288 129 66 30 238 238 186 5 795 20 29 61 60 9 73 69 140 447 356 19 327 115 67 17 360 259 190 6 876 13 21 50 69 3,269 3,265 3,483 3,575 3,472 3,596 2,461 2,286 2,379 2,022 2,164 2,183 406 461 740 51 380 13 1,320 212 132 40 404 369 20 103 396 505 759 45 401 13 1,343 183 143 36 401 382 27 85 408 409 851 40 397 13 1,343 190 147 31 440 383 35 74 408 399 891 43 411 14 1,399 218 169 34 454 380 38 66 431 495 965 36 420 13 1,376 223 180 34 454 373 48 71 442 438 915 50 422 13 1,338 262 176 35 441 394 38 89 4,592 4,649 4,717 4,761 4,924 5,119 5,054 2 205 84 15 87 126 4,081 271 148 184 288 2 211 103 15 103 106 5,277 288 150 195 335 2 231 111 16 127 141 5,568 301 140 205 274 2 238 122 14 127 126 5,663 331 150 197 296 5 216 132 19 97 116 5,536 338 139 194 324 3 200 204 21 94 111 5,756 347 144 173 354 7 198 218 18 91 133 5,753 348 134 188 352 6 183 116 17 77 133 5,791 336 129 185 350 5,589 5,490 6,786 7,116 7,267 7,116 7,407 7,441 7,321 16 4 145 10 112 21 4 143 13 124 22 6 150 15 116 20 5 155 13 113 20 7 155 11 133 22 5 151 13 137 25 4 166 13 136 34 4 163 42 145 44 5 150 43 149 41 5 151 49 173 288 286 304 309 305 325 327 343 388 391 419 158 28 271 36 291 40 272 50 256 44 244 47 249 50 232 47 260 46 271 40 230 41 9 100 60 131 424 371 29 269 118 70 20 282 235 152 5 847 18 22 54 52 12 94 69 141 389 397 19 326 109 65 19 387 234 245 9 893 12 29 56 73 10 96 56 134 434 349 28 278 101 79 18 272 224 208 7 1,006 12 20 56 84 18 107 67 125 368 281 20 278 155 70 14 251 184 206 6 1,288 10 21 42 84 186 308 330 322 300 291 299 280 305 310 271 13,269 14,413 15,468 15,032 17,787 18,111 18,161 18,362 18,622 18,897 18,845 3 6 3 3 3 1 2 2 1 2 1 13,272 14,419 15,471 15,035 17,789 18,113 18,163 18,364 18,623 18,899 18,846 Includes Bermuda through Dec. 1972. NOTE.—Short-term claims are principally the following items payable on demand or with a contractual maturity of not more than 1 year: loans made to, and acceptances made for, foreigners; drafts drawn against Feb. foreigners, where collection is being made by banks and bankers for their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Loans to— End of period Official institutions Banksi Others Collections outstanding Total Total Total Payable in foreign currencies Acceptances made for acct. of foreigners Other Total Foreign govt, seDeposits curities, with for- coml. eigners and finance paper Other 9,680 10,802 /13,170 {13,272 9,165 10,192 12,328 12,377 3,278 3,051 4,503 3,969 262 119 223 231 1,943 1,720 2,613 2,080 1,073 1,212 1,667 1,658 2,015 2,389 2,475 2,475 3,202 3,985 4,243 4,254 670 766 1,107 1,679 516 610 842 895 352 352 549 548 89 92 119 173 74 166 174 174 14,361 13,930 13,845 14,419 15,471 13,415 13,042 13,069 13,649 14,625 4,978 4,980 5,138 5,306 5,674 152 143 146 157 163 2,710 2,572 2,666 2,700 2,975 2,116 2,265 2,326 2,448 2,535 2,805 2,882 2,987 3,130 3,269 3,082 2,967 2,953 3,129 3,204 2,551 2,213 1,991 2,085 2,478 946 888 776 770 846 482 431 408 412 441 338 330 209 219 223 126 127 159 139 182 15,035 17,789 18,113 18,163 18,364 18.623 18^899 18,846 14,210 16,718 17,162 17,344 17,511 17,772 18,036 17,960 5,429 6,453 6,538 6,847 6,935 7,288 7,027 6,975 143 162 141 146 163 205 162 177 2,814 3,675 3,694 3,944 3,824 4,044 3,928 4,034 2,472 2,616 2,703 2,757 2,947 3,039 2,937 2,764 3,234 3,555 3,697 3,781 3,789 3,901 3,831 3,967 3,103 3,282 3,463 3,463 3,600 3,963 3,897 3,694 2,443 3,429 3,464 3,253 3,186 2,619 3,282 3,323 825 1,071 951 819 854 852 862 886 443 596 524 460 499 565 561 488 253 313 262 207 237 140 151 151 128 162 165 152 118 147 151 247 branches, which were previously reported as "Loans", are included in "Other short-term claims" ; and (b) a number of reporting banks are included in the series for the first time. 1 Excludes central banks, which are included with "Official institutions." 2 Data on second line differ from those on first line because (a) those claims of U.S. banks on their foreign branches and those claims of U.S. agencies and branches of foreign banks on their head offices and foreign 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars Total Loans to— Other longterm claims Payable in foreign currencies United Kingdom Other Europe Latin Canada America Japan Other Asia Total Official institutions Banksi Other foreigners 3,250 3,075 3,667 2,806 2,698 3,345 502 504 575 209 236 315 2,096 1,958 2,455 426 352 300 67 71 130 411 411 593 408 312 228 1,329 1,325 1,458 115 246 568 548 583 4,394 4,542 4,649 4,702 (4,954 \5,020 4,079 4,227 4,323 4,378 4,539 4,544 771 796 796 819 833 833 398 402 412 432 430 430 2,910 3,030 3,114 3,127 3,276 3,282 282 292 291 375 436 281 141 139 143 145 145 671 687 658 658 704 709 279 291 340 360 406 406 1,793 1,866 1,897 1,880 1,996 2,006 288 289 305 305 319 348 773 802 828 863 881 898 5,022 5,131 5,276 5,419 5,522 5,606 5,626 5,521 4,541 4,630 4,769 4,923 5,019 5,097 5,116 5,008 835 840 897 931 932 978 957 1,002 440 470 480 514 545 550 554 514 3,266 3,319 3,392 3,477 3,541 3,568 3,605 3,492 440 449 460 448 456 464 456 466 144 135 121 122 131 131 128 137 732 771 859 912 931 980 1,029 1,006 403 434 453 477 511 523 517 404 1,967 1,986 1,978 2,000 2,001 2,004 1,984 1,964 353 342 336 337 331 311 310 304 915 928 985 1,028 1,059 1,096 1,122 1,158 1 2 Excludes central banks, which are included with "Official institutions." Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage 128 with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 A 84 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate securities 2 Marketable U.S. Treas. bonds and notes * Foreign bonds Foreign stocks Net purchases or sales Period Total 56 1,672 3,316 1,413 Official -25 130 57 82 1,542 3,258 1,581 -41 1,661 3,281 1,669 40 10 373 247 356 395 404 365 237 340 377 403 562 527 544 40 -15 562 579 540 16 -168 413 258 356 395 404 1972—Au g Sept Oct Nov Dec 562 515 554 31 -48 -71 -79 -51 1973—Jan Feb Mar Apr. May June July* Aug.* -12 10 -9 -33 -69 -71 17 Net purchases or sales Purchases Sales 1,490 1,687 1,901 1,052 2,441 2,621 2,961 1,490 -951 -935 -1,060 -438 1,033 1,385 2,532 1,171 998 1,439 2,123 996 35 -57 409 175 279 322 309 632 639 129 173 154 136 243 98 163 207 171 465 30 11 -53 -35 -222 242 173 188 192 233 179 142 119 110 178 63 32 69 82 55 750 731 1,109 523 40 198 473 524 191 145 144 117 139 125 94 96 323 144 125 292 150 103 194 157 -132 161 194 211 121 137 123 107 117 158 145 114 112 125 111 107 125 4 49 97 9 12 12 9,844 13,158 15,015 8,008 1,582 1,415 4,058 4,348 1,502 1,165 1,353 1,927 2,014 1,223 843 1,045 1,295 1,375 1,874 1,796 2,220 1,564 1,141 1,097 1,320 1,343 1,125 1,066 1,111 1,040 1,101 899 847 819 Net purchases or sales Other 9 11 17 18 1 -52 3 23 -15 -9 -68 Sales Sales 123 11,426 -119 14,573 - 2 3 19,073 - 8 9 12,356 Total 1970 197 1 197 2 1973—Jan.-Aug.* Net purPurchases or chases sales Purchases Foreign Intl. and regional -9 -39 -28 t Excludes nonmarketable U.S. Treasury bonds and notes issued to official institutions of foreign countries; see Table 12. 2 Includes State and local govt, securities, and securities of U.S. Govt, agencies and corporations. Also includes issues of new debt securities * 19 -175 -11 22 -99 -61 * -8 sold abroad by U.S. corporations organized to finance direct investments abroad. NOTE.—Statistics include transactions of international and regional organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total 1970 626 1971 731 1972 2,188 1973—Jan.-Aug.* 2 , 1 1 0 Germany Nether- Switzer- United land Kingdom lands Other Europe Total Europe Canada Latin America Asia Othe countr Intl. & regional 58 87 372 234 195 131 -51 -34 128 219 297 230 110 168 642 664 -33 -49 561 256 24 71 137 229 482 627 1,958 1,580 -9 -93 -78 152 47 37 -32 -31 85 108 256 375 22 54 86 36 252 166 159 490 350 60 36 65 85 48 -13 -7 6 44 -3 8 15 24 55 42 68 51 83 61 59 101 56 -89 150 132 26 12 19 53 19 249 163 109 449 297 9 -12 8 13 -1 -16 1 2 25 8 4 11 29 -8 42 6 3 12 490 461 350 139 -121 134 316 341 32 25 35 21 -2 2 67 53 29 4 8 9 -43 -23 -19 1 47 67 47 -8 — 14 7 25 60 144 152 148 53 -22 52 80 57 118 89 21 -16 -39 15 28 40 22 46 29 46 3 21 28 34 392 383 288 105 -117 74 210 245 25 37 25 34 -7 8 19 10 -20 -10 5 -10 -16 -2 11 11 85 46 21 5 11 55 71 81 7 4 10 4 11 1972—Aug Sept Oct Nov Dec 1973—Jan Feb Mar Apr May June July* Aug.* France 12 4 - 2 5 -3 A 85 OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Other Europe Total Europe 134 197 135 118 327 357 91 39 315 464 612 1,293 128 37 82 194 165 424 939 68 France Germany 956 684 1,871 35 15 336 48 35 77 37 -1 74 —Jan .-Aug. p 2,239 133 46 -22 1970. 1971. 1972. Latin Canada America Nether- Switzer- United land Kingdom lands Total Period Asia Africa Other Intl. and countries regional 1 28 -2 323 23 968 * 230 -1 1 -44 12 * 2 —Aug Sept Oct Nov Dec 27 156 150 142 289 6 7 36 2 56 4 4 7 30 30 6 3 1 27 17 16 35 —l 14 -16 24 34 46 49 45 80 54 42 60 62 134 168 147 210 9 10 5 -6 8 -1 * * 3 1 3 2 1 29 « 1 —Jan Feb Mar 260 270 759 385 161 64 158 183 12 6 45 33 1 6 * -2 2 -22 29 30 -7 65 76 -3 9 -5 49 46 -3 -96 120 -9 -15 72 73 60 158 94 22 -2 7 10 161 149 174 98 215 -10 -1 154 1 36 6 1 4 4 1 -1 3 4 31 110 623 199 2 May June July? Aug.35 * 31 4 3 2 -4 -3 -2 46 * * -1 * * 1 N OTE .—Statistics include State and local govt, securities, and securities of U.S. Govt, agencies and corporations. Also includes issues of new * * " 324 39 148 25 19 22 16 7 7 3 -1 * 1 2 * -28 * 38 • 60 * * * * * * -26 -42 68 -63 59 150 24 * debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. 19. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM FOREIGN SECURITIES, BY AREA 20. FOREIGN CREDIT AND DEBIT BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Period Total Intl. and regional Total foreign countries Europe Canada Latin America Asia Africa Other countries End of period Credit balances (due to foreigners) Debit balances (due from foreigners) 1970 1971 1972 -915 -992 -651 -254 -310 -90 -662 -682 -561 50 31 492 -586 -275 -651 -11 -46 -69 -129 -366 -296 -6 -57 -66 20 32 29 334 291 349 182 203 281 1973—Jan.Aug.p.. -263 72 -335 4 -337 -69 35 * 31 1972—Aug.... Sept.... Oct . . . . Nov Dec 93 42 16 47 -167 _1 49 3 -73 -4 -158 -1 9 2 8 -26 -5 -24 23 -8 -2 * * * * 2 1 2 36 -176 50 47 46 39 7 314 300 320 314 6 16 11 9 94 36 511 419 333 311 2 1 1973—Jan Feb.. . . Mar Apr.. . . May.. . June. . . July . . Aug.f.. -129 49 116 -166 -1 34 -99 -69 9 -2 23 16 11 7 3 5 -138 51 93 -182 -10 27 -102 -75 8 -3 24 22 -22 10 -14 -21 -67 41 34 -193 -13 6 -100 -44 -70 -16 8 -6 6 13 -9 29 27 -5 6 -13 9 -8 * * 379 339 336 405 * * * * 325 312 286 372 310 315 364 242 * * -4 —1 1 * * * 1 * 14 9 2 3 1972—Mar NOTE.—Data represent the money credit balances and money debit balances appearing on the books of reporting brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by f oreigners. Notes to Tables 21a and 21b on following pages: i Total assets and total liabilities payable in U.S. dollars amounted to $15,439 million and $15,765 million, respectively, on July 31, 1973. NOTE.—Components may not add to totals due to rounding. For a given month, total assets may not equal total liabilities because some branches do not adjust the parent's equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent dollar values. A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Location and currency form Month-end Total Total IN ALL FOREIGN COUNTRIES Total, all currencies Claims on foreigners Parent bank Other Total Other branches of parent bank Other banks OffiNoncial bank instifortutions eigners 2,491 36,221 2,486 54,752 6,887 11,21 16,997 24,550 695 1,167 69,963 72,856 74,906 74,796 76,241 80,034 4,058 4,504 4,952 4,967 4,456 4,735 1,514 1,759 2,243 2,239 1,824 2,124 2,544 2,745 2,709 2,728 2,632 2,611 63,941 66,268 67,607 67,599 69,425 73,031 11,622 11,655 11,335 11,343 11,350 11,717 30,419 31,821 33,395 33,098 34,203 36,738 1,407 1,566 1,539 1,549 1,577 1,665 81,200 87,989 91,646 90,987 92,994 98,756 103,667 4,926 4,327 4,296 3,917 4,218 4,955 5,403 2,327 1,565 1,988 1,672 1,926 2,333 2,505 2,600 2,762 2,308 2,244 2,292 2,622 2,898 74,007 81,106 84,370 84,091 85,577 90,207 94,460 11,946 12,273 12,458 12,787 13,490 13.528 15,298 36,797 42,206 44,268 42,976 42,746 46,277 47,454 1,621 1,747 1,965 2,081 2,004 1.900 2,035 1970—De c 1971—De c 34,619 40,182 9,452 4,541 7,233 2,305 2,219 24.642 2,236 35,064 4,213 6,659 13,265 18,006 362 864 45,034 47,175 48,704 48,986 49,631 54,058 3,811 4,263 4,685 4,669 4,173 4,473 1,488 1,741 2,222 2,216 1,803 2,102 2,324 2,523 2.463 2,453 2,371 2,371 40,523 42,184 43,141 43,556 44,664 48,768 7,260 7,320 7.048 7,391 7,439 8,083 21,666 22,717 23,840 23,555 24,123 26,907 984 1,063 1,105 1,084 1,083 1,128 1973—Ja n Feb Mar Apr May r June July 54,197 57,633 58.745 57,515 58,019 61,843 64,034 4,592 3.987 3.988 3,589 3,930 4,602 4.799 2,303 1,534 1,957 1,645 1,899 2,285 2,469 2,289 48,829 2,452 52,718 2,031 53,752 1,944 52,871 2.031 52,871 2,317 55,885 2,330 57,757 8,094 8,551 8,438 8,426 8,548 8,493 9,211 26,764 29,831 30,568 29,498 28,677 31,261 31,715 1,063 1,097 1,124 1,108 1,140 1,129 1,220 1970—De c 1971—De c 28,451 34,552 6,729 2,694 5,214 1,230 1,515 21,121 1.464 30,996 3,475 5,690 11,095 16,211 316 476 1972—Jul y Aug Sept Oct Nov Dec 39,463 40,596 42,053 41,649 41,600 43,684 1,876 2,117 2,350 2,409 1,939 2,234 810 1,078 1,253 1,386 907 1,138 1,066 36,741 1,039 37,538 1,097 38,606 1,023 38,201 1.032 38.643 1.096 40,430 5,742 5,688 5,651 5,751 5,490 5,659 20,946 21,411 22,559 22,157 22,671 23,983 546 595 650 630 584 609 1973—Ja n Feb Mar Apr May June July 44,347 48,533 49,696 49,181 49,080 51,415 54.203 2,585 1,945 2,052 1,662 1,744 1,876 2,500 1,466 848 1,130 794 910 1,012 1,492 1,118 1.097 922 868 834 864 1,008 40,796 45,487 46.520 46,332 46.001 48,031 50,129 5,637 5,887 5,783 5,437 5,725 5,279 6,274 24,333 28,473 29,148 29,255 28,394 30,348 30,769 574 585 663 651 614 607 649 1970—De c 1971—Dec 22,574 24,428 6,596 2,585 15,655 21.493 2,223 4,135 9,420 12,762 1972—Jul y Aug Sept Oct Nov Dec 26,680 27,185 28.204 27,978 27,865 30,381 1,791 2,036 2,264 2,307 1,846 2,146 24.494 24,734 25,463 25,244 25,579 27,787 4,097 4,013 4,004 4,169 4.049 4,326 15,589 15,768 16,609 16,249 16,399 17,976 1973—Ja n Feb Mar Apr May June July 30.652 32.746 32,658 31,833 30,906 32,864 33,437 2,468 1,814 1,953 1,539 1,654 1,784 2,193 27,778 30,423 30,183 29,778 28,666 30,386 30.521 4,184 4,568 4,324 4,034 3,943 3,900 4,042 18,069 20,219 20,033 20,119 18,848 20,413 20,164 1970—De c 1971—Dec 4,815 8,493 1,173 1,282 1972—Jul y Aug Sept Oct Nov Dec IN THE BAHAMAS Total, all currencies. 7,248 2,311 1972—Jul y Aug Sept Oct Nov Dec Payable in U.S. dollars. 9,740 4.798 1973—Ja n Feb Mar Apr May r June July IN UNITED KINGDOM Total, all currencies 47,363 61,334 1972—Jul y Aug Sept Oct Nov Dec Payable in U.S. dollars. 1970—Dec 1971—De c 10.329 11,515 11,914 12,017 12.330 13,091 1,409 1,530 1,612 1,739 1,586 1,496 13,065 13,559 13,764 13.653 14,730 16,184 117,086 1,387 1,461 1,211 1,407 1,498 1,917 1,929 1973—Ja n Feb Mar Apr May r June July For notes see p. A-85. 455 505 717 778 3,583 7,119 2,119 3,798 110 251 221 225 1,298 1,413 1,391 1,489 1,365 1,272 8,786 9,846 10,150 10,120 10,577 11,419 4,924 5,682 5,929 5,836 6,209 6,965 182 83 90 293 272 410 350 1,206 11,496 1,378 11,860 1,121 12,283 1,113 11,988 1,227 12, r ~ 1,507 14.002 1,579 14,862 6,754 7,189 7,520 6,726 7,242 8,206 8,802 118 221 OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners To U.S. Total Total Parent bank Other Total Other branches of parent bank Other banks NonOffibank cial instifortutions eigners Other Month-end 6,426 24,829 10,773 31,081 4,180 5,513 7,377 8,756 1,967 2,098 .. 1970—Dec. .1971—Dec. 11,283 11,510 11,123 11,204 11,146 11,344 35.860 37.327 39.328 38,470 39,324 42,531 7,176 7,841 8,208 8,236 8,401 8,486 10,393 10,714 10,680 11,287 11,642 11,483 2,039 2,200 2,263 2,342 2,493 2,634 42,260 46,373 48,520 47,874 48,536 53,388 55,608 9,236 9,388 9,454 9,538 9,331 9,593 9,676 12,032 13,224 13,873 13,294 13,505 13,837 14,515 2,513 3,136 3,443 3,547 3,792 4,044 4,358 . 1973—Jan. Feb. Mar. Apr. May June July 32,509 38,083 4,079 19,816 6,653 22,069 3,737 4,433 4,877 4,928 1,243 1,276 .1970—Dec. .1971—Dec. 43,634 45,463 47,055 47,305 48,082 51,811 7,507 7,660 7,401 7,706 7,741 8,178 24,766 25.861 27,133 26,770 27,241 30,253 5,777 6,252 6,490 6,567 6,734 6,913 5,584 5,690 6,031 6,262 6,365 6,467 1,072 1,173 1,204 1,232 1,305 1,459 . 1972—July Aug. Sept. Oct. Nov. Dec. 693 954 1,038 886 955 868 1,045 2,302 52,114 2,511 55,815 2,575 57,127 2,676 55,604 3,050 55,636 3,167 58,781 2,841 60,381 8,400 8,783 8,735 8,657 8,810 8,774 9,611 29,234 32,024 33,131 31,970 32,275 35,470 36,187 7,680 7,809 7,771 7,743 7,361 7,354 7,092 6,800 7,200 7.489 7,234 7,190 7,183 7.490 1,297 1,609 1,691 1,750 1,786 1,844 1,957 . 1973—Jan. Feb. Mar. Apr. May 1 June July 1,339 1,660 116 111 1,222 26,520 1,550 32,128 2,320 3,401 16,533 19,137 3,119 4,464 4.548 5,126 592 763 .1970—Dec. .1971—Dec. 39,463 40,596 42,053 41,649 41,600 43,684 1.497 1.498 1,497 1,465 1,481 1,456 150 153 137 136 132 113 1,347 37,075 1,345 38,165 1,360 39,517 1,329 39,225 1,349 39,149 1,343 41,232 3,464 3,423 3,139 3,060 2,928 2,961 21,720 22,236 23,739 23,001 22,769 24,776 5,565 6,007 6,272 6,309 6,340 6,453 6,326 6,499 6,367 6,854 7,112 7,042 892 933 1,039 959 969 997 . 1972—July Aug. Sept. Oct. Nov. Dec. 44,347 48,533 49,696 49,181 49,080 51,415 54,203 1,501 1,844 1,858 1,970 2,028 1,957 1,868 107 264 235 165 170 122 163 1,394 1,580 1,624 1,805 1,857 1,835 1,705 41,933 45,628 46,750 46,075 45,792 48,145 50,918 3,277 3,157 3,164 3,397 3,614 3,321 3,883 23,959 27,038 28,119 27,796 27,168 29,332 30,978 7,285 7,517 7,388 7,509 7,324 7,585 7,817 7,412 7,915 8,078 7,373 7,685 7,907 8,241 913 1,062 1,088 1,136 1,260 1,313 1,417 . 1973—Jan. Feb. Mar. Apr. May June July 23,005 24,845 1,208 1,412 98 23 1,110 21,495 1,389 23,059 1,548 2,164 13,684 14,038 2,859 3,676 3,404 3,181 302 374 .1970—Dec. . 1971—Dec. 27,130 27,625 28,589 28,477 28,558 30,933 1,294 1,271 1.269 1,245 1.270 1,276 103 100 86 80 92 72 1,190 1,171 1,184 1,165 1,178 1,203 25,393 25,887 26,788 26,759 26,778 29,121 2,197 2,140 1,926 1,942 1,959 2,008 15,000 15,217 15,959 15,597 15,383 17,478 4,641 4,981 5,117 5,216 5,280 5,349 3,554 3.549 3,787 4,004 4,155 4,287 444 467 531 473 510 536 . 1972—July Aug. Sept. Oct. Nov. Dec. 30,926 33,966 33,929 33,050 32,148 33,584 33,851 1,335 1,661 1,676 1,735 1,809 1,731 1,655 72 226 195 119 138 102 148 1,264 1,436 1,481 1,616 1,671 1,629 1,507 29,091 31,714 31,655 30,782 29,730 31,278 31,603 2 , 2 3 4 16,205 2,188 18,360 2,128 18,334 2,318 17,672 2,225 16,982 2 , 2 3 4 18,390 2,316 18,683 6,162 6,394 6,251 6,245 5,897 5,990 5,868 4,490 4,771 4,942 4,546 4,626 4,663 4,736 500 591 598 533 608 575 594 IN ALL FOREIGN COUNTRIES . . . Total, all currencies . 1972—July Aug. Sept. Oct. Nov. Dec. 11,746 11,901 12,219 12,638 13,284 13,315 15,026 Location and currency form . 1973—Jan. Feb. Mar. Apr. May June July 1,859 42,812 2,445 56,124 47,354 61,336 2,575 3,114 716 669 69,963 72,855 74,905 74,795 76,239 80,035 3,212 3,263 3,303 3,255 3,233 3,559 736 680 728 716 802 1,000 2,476 2,583 2,575 2,539 2,432 2,559 64,712 67,392 69,340 69,198 70,513 73,842 81,200 87,989 91,646 90,987 92,994 98,756 103,667 3,414 3,967 4,137 4,095 4,548 4,578 4,484 836 1,132 1,218 1,044 1,122 1,009 1,211 2,578 2,835 2,919 3,051 3,426 3,569 3,273 75,273 80,886 84,066 83,345 84,655 90,133 94,825 36,086 42,033 2,334 2,674 657 511 1,677 2,163 47,460 49,436 51,092 51,326 52,139 56,375 2,754 2,800 2,833 2,789 2,753 3,104 611 549 605 582 651 848 2,143 2,252 2,227 2,207 2,102 2,256 56,405 60,890 62,430 60,915 61,427 64,660 66,224 2,995 3,466 3,613 3,562 4,005 4,035 3,886 28,451 34,552 4,815 8,495 542 750 4,183 7,557 488 1,649 2,872 4,784 823 1,124 90 188 ,.1970—Dec. .1971—Dec. 10,329 11,515 11,913 12,017 12,329 13,091 1,043 1,121 1,137 1,053 934 1,220 9,126 10,238 10,620 10,793 11,230 11,703 1,633 1,885 1,935 1,928 1,982 1,964 6,169 6,898 7,192 7,415 7,862 8,395 1,323 1,455 1,493 1,450 1,386 1,344 160 156 156 171 166 168 1972—.July Aug. Sept. Oct. Nov. Dec. 13,065 13,559 13,765 1,137 1,186 1,303 1,126 1,404 1,480 1,374 11,761 12,144 12,195 1,875 2,223 1,855 1,977 2,238 2,579 3,002 8,503 8,394 8,803 8,505 9,259 10,410 10,762 1,383 1,527 1,537 1,656 1,483 1,381 1,616 167 230 267 389 345 334 331 . 1973—Jan. Feb. Mar. Apr. May' June July 13,653 14,730 16,184 117,086 For notes see p. A-85. 12,138 12,981 14,370 15,381 .Payable in U.S. dollars IN UNITED KINGDOM . . .Total, all currencies .Payable in U.S. dollars IN T H E BAHAMAS .Total, all currencies A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S. GOVERNMENT SECURITIES 23. MATURITY OF EURO-DOLLAR DEPOSITS IN FOREIGN BRANCHES OF U.S. BANKS (Amounts outstanding; in millions of dollars) (End of month; in billions of dollars) Liabilities 1 Wednesday Liab. plus sec. 2 Wednesday Liabilities 1 Wednesday Liabilities 1 1973 Maturity of liability May Mar. June Sept. Dec. 1969 Mar. June Sept. Dec. Mar. June Sept. Dec. July 26. . . Aug. 3 0 . . . Sept. 2 7 . . . 25 24 30 30 31 30 29 29 2,858 1,492 2,475 909 Jan. 31... 6... 13... 20... 27... 7... 14. 21. 28. 3... 11... 18... 25... 1,766 1,664 2,146 2,086 1... 8... 15... 22... 29... 2,226 2,276 1,900 2,440 2,793 Sept. 5 . .. 12. .. 19. .. 26... 1,391 694 1,157 790 7. 14. 1,465 1,419 1,290 1,127 Mar. 21. 28. 1.87 3.25 2.57 3.04 3.19 3.16 12.63 8.01 6.08 3.60 3.55 3.57 .83 .45 .77 .86 .53 .35 15.47 7.61 6.55 3.96 3.67 3.08 .54 .82 .96 .54 .36 .32 13.38 8.14 7.49 4.20 3.45 3.55 .89 .98 .72 .38 .34 .76 1.92 1.88 48.08 940 1,266 1,242 1,521 1,512 1,942 1,801 1,725 1,413 Feb. 4,358 4,500 3,578 July 1.73 1,238 1,073 1,721 1,492 1,351 June 1973 1971 Mar. June Sept. Dec. 2... 9... 16... 23... 30... 1,415 1,745 1,406 1970 11,885 12,172 9,663 7,676 1,011 1,203 1,193 1,123 Aug. 1,345 1,270 2,023 Oct. 2 5 . . . Nov. 2 9 . . . Dec. 2 7 . . . 9,621 13,269 14,349 12,805 26 25 24 31 1,374 1,465 1,443 4... 11... 18... 25... May 1,419 1,068 1,532 Apr. 2 6 . . . May 3 1 . . . June 2 8 . . . Apr. July Jan. 2 6 . . . Feb. 2 3 . . . Mar. 2 9 . . . 4,920 6,202 7,104 6,039 27 26 25 31 (1/1/69) June 51.27 52.50 1973 1972 1968 Call Other liabilities, maturing in following calendar months after report date: 3rd 4th 5th 6th 8th 9th 10th 11th 12th Maturities of more than 1 NOTE.—Includes interest-bearing U.S. dollar deposits and direct borrowings of all branches in the Bahamas and of all other foreign branches for which such deposits and direct borrowings amount to $50 million or more. Details may not add to totals due to rounding. 1 Represents gross liabilities of reporting banks to their branches in foreign countries. 2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Eurodollar Series and special Export-Import Bank securities held by foreign branches. Beginning July 28, 1971, all of the securities held were U.S. Treasury Certificates Eurodollar Series. 24. DEPOSITS, U.S. TREAS. SECURITIES, AND GOLD HELD AT F.R. BANKS FOR FOREIGN OFFICIAL ACCOUNT 25. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of period End of period Deposits U.S. Treas. securities 1 Earmarked gold 1970 1971 148 294 16,226 43,195 12,926 13,815 1972—Sept... Oct.... Nov... Dec.. . 193 192 188 325 50,997 51,821 51,874 50,934 215,531 15,531 1973—Jan.... Feb. . . Mar... Apr... May.. June.. July... Aug... Sept... 310 455 327 328 289 334 280 259 250 50,118 56,914 359,389 358,255 58,015 57,545 57,054 55,855 55,407 15,526 15,522 15,519 15,513 15,511 15,486 15,464 15,455 15,437 1 Marketable U.S. Treasury bills, certificates of indebtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. 2 Increase reflects principally change in par value of the U.S. dollar in May 1972. 3 Includes $15 million increase in Mar. and $160 million increase in Apr. in dollar value of foreign currency obligations revalued to reflect market exchange rates. NOTE.—Excludes deposits and U.S. Treas. 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. Deposits 1968 1969 Shortterm invest- Deposits ments 1 Shortterm investments 1 United Kingdom Canada 1,638 /1,319 \1,491 1,141 1,219 952 1,062 697 87 116 161 150 272 174 183 173 60 76 86 121 979 610 663 372 280 469 534 443 1971—Dec. 2 . . . /1,648 \1,507 1,092 1,078 203 127 234 234 120 68 577 580 587 443 1972—July Aug Sept Oct Nov Dec.2.... 2,085 2,273 2,101 2,033 2,058 /I,965 \2,121 1,517 1,602 1,527 1,472 1,493 1,446 1,670 194 217 170 171 167 169 46 318 392 359 332 343 307 338 55 61 45 57 55 42 68 754 755 685 681 635 702 780 565 709 604 551 587 485 506 1973—Jan.... Feb Mar. r Apr. r Mayr Juner.... July 2,364 2,865 2,888 2,904 3,008 2,994 3,040 1,860 2,132 2,112 2,137 2,249 2,334 2,276 70 136 138 114 118 77 118 342 373 414 414 430 449 472 93 225 225 238 211 134 175 909 979 1,078 1,033 996 1,028 1,028 655 1,036 920 840 940 834 897 2 15,530 15,530 Total 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. 2 Data on the two lines for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 26 and 27. OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Claims on foreigners Liabilities to foreigners June Europe: Austria Belgium-Luxembourg Denmark Finland France Germany, Fed, Rep. of Greece Italy Netherlands Portugal Spain Sweden Switzerland Turkey United Kingdom Yugoslavia Other Western Europe Total Canada Latin America: Argentina Brazil Chile Colombia Cuba Mexico. Peru Uruguay Venezuela Other L.A. republics Bahamas 2 Neth. Antilles and Surinam. Other Latin America Total Asia: China, People's Republic of (China Mainland) China, Rep. of ( T a i w a n ) . . . . Hong Kong Indonesia Japan Philippines Thailand Other Asia Total Africa: South Africa Zaire Other Africa Total Other countries: Australia All other Total International and r e g i o n a l . . . . Grand total 1973 1972 Area and country Dec. 1 Sept. Mar.P June 6 108 5 2 139 104 5 99 65 5 2 70 13 97 3 981 6 2 3 2 82 5 3 145 130 14 108 79 5 3 63 14 119 2 943 5 2 9 2 75 9 4 163 144 24 118 102 9 4 79 12 122 3 949 7 2 3 2 81 9 4 167 154 24 121 110 14 4 81 12 105 4 989 7 2 3 2 80 10 4 159 145 28 108 102 14 5 82 22 126 3 836 16 2 9 16 64 20 19 207 191 36 184 66 17 21 117 37 59 11 990 10 10 22 1,714 1,733 1,830 1,896 1,753 185 183 208 210 267 18 22 16 6 • 18 6 6 3 17 32 357 6 6 16 24 17 6 1 21 5 5 2 17 30 293 9 6 19 35 18 8 1 27 8 5 6 17 35 319 10 7 29 35 18 8 1 27 8 5 7 21 43 366 10 6 514 453 514 584 1973 Sept. 2,098 Dec.i 15 63 19 16 188 200 30 174 71 19 20 130 45 57 8 992 11 11 Mar.* 7 20 62 28 23 220 176 39 194 78 17 21 137 56 79 47 1,043 12 14 42 19 63 29 25 230 194 35 202 83 16 19 157 57 82 47 1,068 12 12 41 14 101 26 21 288 242 36 205 96 17 19 159 45 86 23 1,370 14 8 41 2,117 2,307 2,392 2,812 936 996 899 920 1,293 30 42 17 8 • 34 8 5 5 23 44 288 10 11 50 153 41 38 1 143 22 32 5 75 106 442 10 18 52 163 33 39 1 154 20 36 7 74 96 519 11 23 59 175 33 41 1 180 19 40 4 89 91 520 12 23 79 169 34 43 1 183 67 39 5 92 99 546 13 35 74 172 31 42 1 197 74 36 5 106 100 473 12 42 527 1,134 1,226 1,289 1,404 1,365 67 24 33 33 31 456 63 49 15 201 • 66 32 34 33 31 467 63 47 22 205 1 61 31 31 38 34 509 47 45 25 190 972 1,000 1,011 7 45 7 64 7 53 5 75 16 52 8 79 24 56 16 79 1 ' i 4 j 1 25 11 7 5 9 188 16 6 4 103 28 26 12 7 6 11 223 16 5 5 112 32 28 12 7 12 12 149 20 15 5 117 32 27 12 7 13 13 161 20 15 5 152 32 28 12 7 13 16 194 19 25 5 157 • 45 23 32 25 17 451 61 67 15 174 1 51 22 36 32 18 452 57 63 14 171 374 451 410 456 506 911 918 1 37 1 31 1 17 2 37 25 7 1 59 32 8 1 61 37 6 12 69 71 57 92 103 124 133 122 140 156 175 54 11 46 11 47 13 46 13 53 11 97 18 92 18 94 20 83 24 81 25 66 57 60 59 64 116 110 114 108 106 • • * • * 3 5 1 1 2,925 2,933 3,114 3,308 3,241 5,331 5,495 1 Data in the two columns shown for this date differ because of changes in reporting coverage. Figures in the first column are comparable in coverage with those shown for the preceding date; figures in the second column are comparable with those shown for the following date. 2 Includes Bermuda. 1972 6 : 46 7 j' 74 |i * I 5,721 5,980 1 6,764 NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities End of period Total 1969—Mar.. June.. Sept.. Dec. 1 Payable in dollars Claims Payable in foreign currencies Payable in foreign currencies Payable in dollars Total Deposits with banks abroad in reporter's name Other 1,576 1,613 1,797 1,786 2,124 1,185 1,263 1,450 1,399 1,654 391 350 346 387 471 4,014 4,023 3,874 3,710 4.159 3,329 3,316 3,222 3,124 3,532 358 429 386 221 244 327 278 267 365 383 1970—June.. Sept... Dec... 2,387 2,512 2,677 1,843 1,956 2,281 543 557 496 4,457 4,361 4.160 3,868 3,756 3,579 234 301 234 355 305 348 1971—Mar... June.. Sept... Dec. 1 / \ 2,437 2,375 2,564 2,704 2,763 1,975 1,937 2,109 2,229 2,301 462 438 454 475 463 4,515 4,708 4,894 5,185 5,004 3,909 4,057 4,186 4,535 4,467 232 303 383 318 290 374 348 326 333 247 1972—Mar.., June.. Sept... Dec. 1 . 2,844 2,925 2,933 J 3,114 \ 3,308 2,407 2,452 2,435 2,629 2,817 437 472 498 484 491 5,177 5,331 5,495 5,721 5,980 4,557 4,685 4,833 5,084 5,310 318 376 432 400 382 302 270 230 238 288 1973—Mar. f 3,241 2,729 513 6,764 5,862 458 443 J I 1 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area Total liabilities End of period Total United Kingdom 1969—Mar June Sept Dec 1 Other Europe Canada Brazil Mexico Other Latin America Japan Other Asia Africa All other 1,285 1,325 1,418 1,725 2,304 1,872 1,952 1,965 2,215 2,363 175 168 167 152 152 342 368 369 433 442 432 447 465 496 562 194 195 179 172 177 75 76 70 73 77 222 216 213 388 420 126 142 143 141 142 191 229 246 249 271 72 72 71 69 75 43 40 42 42 46 2,358 2,587 2,785 3,102 2,744 2,757 2,885 2,950 159 161 157 146 735 712 720 708 573 580 620 669 181 177 180 183 74 65 63 60 458 477 586 618 158 166 144 140 288 288 284 292 71 76 73 71 47 54 58 64 1971—Mar June Sept _ i 3,177 3,172 2,939 J 3,159 \ 3,138 2,983 2,982 3,019 3,118 3,118 154 151 135 128 128 688 687 672 705 705 670 677 765 761 767 182 180 178 174 174 63 63 60 60 60 615 625 597 652 653 161 138 133 141 136 302 312 319 327 325 77 75 85 86 86 72 74 75 85 84 1972—Mar June Sept r\ AP 1 3,093 3,300 3,448 3,540 3,839 3,191 3,255 3,235 3,380 3,553 129 108 128 162 179 713 713 695 715 767 787 797 805 833 937 175 188 177 184 183 60 61 63 60 62 665 671 661 669 708 137 161 132 156 133 359 377 389 406 394 81 86 89 87 80 85 93 96 109 111 3,967 3,689 144 819 958 162 60 781 123 416 101 125 J \ 1970—Mar June Sept Dec 1973—Mar* f \ 1 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. OCTOBER 1973 • EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia (dollar) Austria (schilling) Belgium (franc) Canada (dollar) Ceylon (rupee) Denmark (krone) Finland (markka) France (franc) 111.25 111.10 111.36 113.61 119.23 Period 3.8675 3.8654 3.8659 4.0009 4.3228 2.0026 1.9942 2.0139 2.0598 2.2716 92.801 92.855 95.802 99.021 100.937 16.678 16.741 16.774 16.800 16.057 13.362 13.299 13.334 13.508 14.384 23.761 23.774 23.742 23.758 24.022 20.191 19.302 18.087 18.148 19.825 1972 Sept Oct 119.10 119.07 119.09 120.74 4.3354 4.3102 4.3064 4.3172 2.2742 2.2640 2.2685 2.2670 101.730 101.756 101.279 100.326 15.600 15.605 15.026 14.936 14.388 14.453 14.510 14.601 24.015 23.562 24.022 24.000 19.977 19.906 19.839 19.657 1973 Jan Feb 127.16 135.46 141.29 141.50 141.50 141.58 141.78 141.48 146.83 4.3203 4.8582 4.8759 4.8330 4.9082 5.2408 5.8124 5.5917 5.5695 2.2665 2.3981 2.5378 2.4895 2.5356 2.6643 2.8151 2.7035 2.7089 100.071 100.440 100.333 99.928 99.916 100.160 100.049 99.605 99.181 14.904 15.407 15.774 15.777 15.883 16.538 16.431 15.948 15.768 14.536 15.386 16.275 16.099 16.241 17.130 18.041 17.521 17.480 23.986 24.728 25.628 25.872 25.277 26.731 27.202 27.314 27.042 19.671 20.987 22.191 21.959 22.341 23.472 24.655 23.527 23.466 Germany (Deutsche mark) India (rupee) Ireland (pound) Italy (lira) Japan (yen) Malaysia (dollar) Mexico (peso) Netherlands (guilder) 25.048 25.491 27.424 28.768 31.364 13.269 13.230 13.233 13.338 13.246 239.35 239.01 239.59 244.42 250.08 .16042 .15940 .15945 .16174 .17132 .27735 .27903 .27921 .28779 .32995 32.591 32.623 32.396 32.989 35.610 8.0056 8.0056 8.0056 8.0056 8.0000 27.626 27.592 27.651 28.650 31.153 31.318 31.184 31.215 31.262 13.016 12.806 12.540 12.467 244.10 239.48 235.05 234.48 .17199 .17145 .17109 .17146 .33209 .33221 .33224 .33196 36.110 36.063 36.124 35.531 8.0000 8.0000 8.0000 8.0000 30.969 30.869 30.964 30.962 31.288 33.273 35.548 35.252 35.841 38.786 42.821 41.219 41.246 12.494 12.910 13.260 13.255 13.340 13.753 13.605 13.220 12.987 235.62 242.75 247.24 248.37 253.05 257.62 253.75 247.57 241.83 .17079 .17421 .17604 .16971 .17100 .16792 .17200 .17423 .17691 .33136 .36041 .38190 .37666 .37786 .37808 .37801 .37704 .37668 35.523 37.679 39.922 40.307 40.333 40.865 43.121 43.859 43.361 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 31.084 33.119 34.334 33.890 34.488 36.582 38.700 37.596 38.542 New Zealand (dollar) Norway (krone) Portugal (escudo) South Africa (rand) Spain (peseta) Sweden (krona) Switzerland (franc) United Kingdom (pound) 1968 111.37 111.21 111.48 113.71 119.35 14.000 13.997 13.992 14.205 15.180 3.4864 3.5013 3.4978 3.5456 3.7023 139.10 138.90 139.24 140.29 129.43 1.4272 1.4266 1.4280 1.4383 1.5559 19.349 19.342 19.282 19.592 21.022 23.169 23.186 23.199 24.325 26.193 239.35 239.01 239.59 244.42 250.08 1972—Sept Oct Nov. Dec 119.33 119.21 119.45 119.53 15.209 15.141 15.144 15.187 3.7221 3.7080 3.7140 3.7248 125.26 124.47 127.52 127.57 1.5754 1.5750 1.5753 1.5753 21.146 21.078 21.076 21.080 26.403 26.332 26.346 26.526 244.10 239.48 235.05 234.48 1973—Jan Feb Mar Apr May June July Aug Sept 119.52 126.87 132.21 132.99 132.34 132.40 135.02 135.33 145.07 15.128 16.038 16.954 16.428 17.196 18.192 18.932 18.145 18.048 3.7280 3.8562 4.1005 3.9563 4.0050 4.2175 4.4624 4.3243 4.2784 127.55 134.91 141.43 141.70 141.65 148.07 148.63 148.52 148.50 1.5755 1.6355 1.7183 1.7217 1.7224 1.7229 1.7385 1.7553 1.7610 21.092 21.935 22.582 22.161 22.567 23.746 24.732 24.070 23.769 26.820 29.326 31.084 30.821 31.494 32.757 35.428 33.656 33.146 235.62 242.75 247.24 248.37 253.05 257.62 253.75 247.57 241.83 July Sept Period 1972—Sept Oct Dec 1973 Jan Feb Mar May July Aug Sept Period NOTE.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see "International Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962. CENTRAL BANK RATES • OCTOBER 1973 A 92 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Sept. 30, 1972 1972 Country Per cent Month effective 1973 18.0 5.0 4.0 18.0 4.75 Feb. Jan. Mar. Feb. Oct. 1972 1970 1972 1972 1971 Ceylon Chile China, Rep. of (Taiwan). Colombia Costa Rica 6.5 7.0 9.25 8.0 5.0 Jan. Jan. May May June 8.0 8.0 5.0 4.0 6.50 June Jan. May Aug. Aug. 1972 1970 1962 1964 1970 Finland France Germany, Fed. Rep. of.. Ghana Greece 7.75 5.75 3.0 8.0 6.5 Jan. Apr. Feb. July Sept. 1972 1972 1972 1971 1969 Honduras. Iceland India Indonesia., Iran 4.0 5.25 6.0 6.0 7.0 Feb. Jan. Jan. May Oct. Sept. Apr. June June Jan. 1972 1972 1972 1972 1972 4.5 3.50 3.0 6.0 4.50 June Nov. Sept. Mar. June 1942 1951 1972 1972 1968 4.5 6.0 9.5 10.0 3.75 Sept. May Nov. June Feb. 1969 1972 1959 1969 1971 South Africa. Spain Sweden Switzerland.. Thailand.... 6.0 5.0 5.0 3.75 5.0 Aug. Oct. Nov. Sept. Oct. 1972 1971 1971 1969 1959 Tunisia Turkey United Kingdom. Venezuela Vietnam 5.0 9.0 6.0 5.0 Sept. Sept. June Oct. Sept. 1966 i 1970 1972 7.50 1970 1970 5.0 Jan. Feb. Mar. Apr. 1966 1966 1971 1969 1969 7.19 4.0 6.0 4.25 13.0 Dec. May June Argentina. Austria.... Belgium... Brazil Canada... Ireland.. Italy Jamaica. Japan... Korea... Mexico Morocco Netherlands... New Zealand. Nigeria Norway Pakistan Peru Philippine Republic. Portugal 18.0 5.25 5.75 Aug. 6.5 6.25 Sept. 6.75 10.5 7.0 3.5 8.0 7.5 4.5 6.0 5.0 9.25 8.50 9.5 6.0 7.0 7.0 6.0 6.5 11.0 7.0 7.44 7.0 5.0 5.5 5.0 4.0 8.0 5.5 4.0 6.0 5.0 4.50 9.0 NOTE.—Rates shown are mainly those at which the central bank either discounts or makes advances against eligible commercial paper and/or govt, securities for commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion of its credit operations. Other rates for some of these countries follow: Argentina—3 and 5 per cent for certain rural and industrial paper, depending on type of transaction; Brazil—8 per cent for secured paper and 4 per cent for certain agricultural paper; Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent for loans to make up reserve deficiencies. Colombia—5 per cent for warehouse receipts covering approved lists of products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent for rediscounts in excess of an individual bank's quota; Costa Rica—5 per cent for paper related to commercial transactions (rate shown is for agricultural and industrial paper); Ecuador—5 per cent for special advances and for bank acceptances for agricultural purposes, 7 per cent for bank acceptances for industrial purposes, and 10 per cent for advances to cover shortages in legal reserves; Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. Honduras—Rate shown is for advances only. Indonesia—Various rates depending on type of paper, collateral, commodity involved, etc.; Japan—Penalty rates (exceeding the basic rate shown) for borrowings from the central bank in excess of an individual bank's quota; 5.50 July 6.0 6.0 1970 1972 1971 1963 1966 Denmark... Ecuador.... Egypt El Salvador. Ethiopia.... Nov. 5.5 4.5 Oct. 8.75 8.0 8.5 7.75 7.50 11.50 Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of paper, maturity, collateral, guarantee, etc. Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish production, import substitution industries and manufacture of exports; 8 per cent for other agricultural, industrial and mining paper; Philippines—6 per cent for financing the production, importation, and distribution of rice and corn and 7.75 per cent for credits to enterprises engaged in export activities. Preferential rates are also granted on credits to rural banks; and t United Kingdom—On Oct. 9, 1972, the Bank of England announced: "With effect from Friday October 13th the Bank's minimum lending rate will until further notice be the average rate of discount for Treasury bills established at the most recent tender plus one half percent rounded to the nearest one quarter percent above. Although the rate will therefore be automatically determined by this formula it will for convenience be made known each Friday afternoon concurrently with and in the same manner as the results of the Treasury bill tender. The regular weekly bank rate announcement will be discontinued from now on." Therefore, the minimum lending rate as of last Friday of the month will be carried in place of Bank rate. Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi per cent for advances against government bonds, and 5 l /i per cent for rediscounts of certain industrial paper and on advances against promissory notes or securities of first-class Venezuelan companies. Vietnam—10 per cent for export paper; treasury bonds are rediscounted at a rate 4 percentage points above the rate carried by the bond; and there is a penalty rate of 24 per cent for banks whose loans exceed quantitative ceilings. OCTOBER 1973 • OPEN MARKET RATES; ARBITRAGE A 93 OPEN MARKET RATES (Per cent per annum) Month Treasury Day-today 2 bills, 3 months * money 3 Germany, Fed. Rep. of France United Kingdom Canada Netherlands Switzerland Day-today money Prime Treasury bank bills, bills, 3 3 months months Clearing banks' deposit rates4 Day-today money 5 Treasury bills, 60-90 days 6 Day-today money 7 Treasury bills, 3 months Day-today money Private discount rate 197 1 1972 3.62 3.55 3.76 3.65 6.41 6.06 5.57 5.02 4.93 4.83 3.84 3.84 5.84 4.54 3.04 6.10 4.30 4.34 2.15 3.76 1.97 5.24 4.81 1972—Sept. Oct.. Nov. Dec. 3.57 3.57 3.61 3.66 3.52 3.64 3.71 3.71 7.18 7.34 7.28 8.08 6.44 6.74 6.88 7.76 5.27 5.47 5.70 6.23 5.25 5.25 5.25 5.57 3.89 5.16 6.33 7.32 2.75 3.25 3.75 4.25 4.83 6.07 5.71 6.69 1.11 1.95 3.13 3.12 .54 2.61 3.31 3.20 4.75 4.75 4.75 4.75 1973—Jan.. Feb. Mar. Apr. May June July. Aug. Sept. 3.79 3.91 4.28 4.73 5.08 5.40 c 5.67 6.47 6.41 3.72 3.93 4.21 4.53 4.67 5.00 5.28 5.87 8.76 9.34 9.76 8.64 8.35 8.14 9.06 12.78 12.12 8.49 8.14 7.66 8.31 7.52 7.20 8.29 6.66 5.89 9.70 9.13 6.55 7.30 7.50 7.25 7.11 6.55 6.25 8.99 9.50 7.23 7.71 7.49 7.46 7.71 7.46 4.75 5.75 5.75 5.75 5.75 7.00 5.58 2.18 11.37 14.84 7.40 10.90 15.78 10.63 3.16 2.33 1.53 1.22 2.78 1.55 5.00 5.00 5.00 5.00 5.00 5.00 5.00 8.16 7.87 7.45 7.12 8.35 10.98 11.37 1 Based on average yield of weekly tenders during month. Based on weekly averages of daily closing rates. 3 Data for 1968 through Sept. 1971 are for bankers' acceptances, 3 months. * Data for 1968 through Sept. 1971 are for bankers' allowance on deposits. 2 3.59 5.58 .61 .77 3.88 4.28 5.65 5 Rate shown is on private securities. 6 Rate in effect at end of month. 7 Monthly averages based on daily quotations. 8 Bill rates in table are buying rates for prime paper. NOTE.—For description and back data, see "International Finance,' Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and Canada United States and United Kingdom Treasury bill rates Treasury bill rates Date Premium (-f)or discount (—) on forward pound Net incentive (favor of London) United Kingdom (adj. to U.S. quotation basis) United States Spread (favor of London) 7.77 7.35 6.34 6.12 1.43 1.23 -2.57 -2.15 7.56 6.13 1.43 7.56 7.26 7.15 7.08 6.16 6.04 6.22 6.46 1.40 1.22 .93 .62 29. 7.06 7.06 6.93 6.90 6.86 6.87 7.02 7.07 7.16 7.29 July 6. 13. 20. 27. 6.76 6.85 8.26 10.74 Aug. 3. 10. 17. 24. 31. Sept. 7. 14. 21 . Cantad a Spread (favor of Canada) Premium ( + ) or discount (—) on forward Canadian dollars Net incentive (favor of Canada) As quoted in Canada Adj. to U.S. quotation basis United States -1.14 -.92 4.48 4.75 4.37 4.63 6.34 6.12 -1.97 -1.49 2.16 1.48 .19 -.01 -1.86 -.43 4.86 4.82 6.13 -1.31 1.68 .37 -2.13 -1.80 -1.80 -1.52 -.73 -.58 -.87 -.90 5.02 4.99 5.70 5.20 4.89 4.86 5.06 5.06 6.16 6.04 6.22 6.46 -1.27 -1.18 -1.16 -1.40 1.54 1.30 1.48 1.48 .27 .12 .32 .08 .19 .04 -.14 -.26 -.43 -1.43 -1.41 -1.38 -1.40 -1.68 -1.24 -1.37 -1.52 -1.66 -2.11 5.19 5.25 5.44 5.46 5.48 5.07 5.11 5.29 5.31 5.33 6.87 7.02 7.07 7.16 7.29 -1.80 -1.91 -1.78 -1.85 -1.96 1.12 1.38 1.48 1.60 1.58 -.68 -.53 -.30 -.25 -.38 7.87 7.59 8.05 8.15 -1.11 -.74 .21 2.59 -2.36 -2.22 -2.13 -3.55 -3.47 -2.96 -1.92 -.96 5.62 5.62 5.71 5.74 5.47 5.47 5.55 5.59 7.87 7.59 8.05 8.15 -2.40 -2.12 -2.50 -2.56 1.70 1.68 2.27 2.48 -.70 -.44 -.23 -.08 10.63 10.76 10.78 10.83 10.82 8.18 8.76 8.47 8.45 8.53 2.45 2.00 2.31 2.38 2.29 -2.97 -4.60 -4.55 -4.88 -4.45 -.52 -2.60 -2.24 -2.50 -2.16 5.82 5.99 6.05 6.12 8.38 5.66 5.82 5.82 5.95 6.00 8.18 8.76 8.47 8.45 8.53 -2.52 -2.94 -2.65 -2.50 -2.53 2.64 2.88 2.69 2.64 2.58 .12 -.06 .04 .14 .05 10.84 10.80 10.83 10.79 8.77 8.75 8.00 6.94 2.07 2.05 2.83 3.85 -4.55 -5.49 -4.84 -4.52 -2.48 -3.44 -2.01 -.67 6.22 6.42 6.48 6.50 6.04 6.25 6.26 6.29 8.77 8.75 8.00 6.94 -2.73 -2.50 -1.74 -0.65 2.26 2.06 1.89 1.37 -.47 -.44 .15 .72 1973 Apr. 6. 13. 20 i 27. May 4. 18! 25. June 1. 8. 15. 22. 28. i No data because of holiday on Good Friday. NOTE.—Treasury bills: All rates are on the latest issue of 91-day bills. U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. rates are Friday opening market offer rates in London. Premium or discount on forward pound and on forward Canadian dollar: Rates per annum computed on basis of midpoint quotations (between bid and offer) at 11 a.m. Friday in New York for both spot and forward pound sterling and for both spot and forward Canadian dollars. All series: Based on quotations reported to F.R. Bank of New York by market sources. For description of series and for back figures, see Oct. 1964 BULLETIN, pp. 1241-60. For description of adjustments to U.K. and Canadian Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, O c t . 1 9 6 4 BULLETIN. A 94 GOLD RESERVES • OCTOBER 1973 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) Estimated total world i Intl. Monetary Fund United States Estimated rest of world Algeria Argentina 243,230 43,185 41,600 40,905 41,015 41,275 41,175 31,869 2,652 2,682 2,288 2,310 4,339 4,732 13,806 13,235 12,065 10,892 11,859 11,072 10,206 27,285 27,300 26,855 27,725 26,845 25,865 26,235 6 6 155 205 205 191 192 66 84 84 109 135 140 90 223 224 231 257 263 239 259 700 701 701 714 715 714 729 5,765 5,777 5.777 5.778 5,830 10,488 10,487 10,487 10,487 10,487 28,610 208 208 208 208 208 130 152 152 152 152 283 283 282 282 5,830 5,830 5,830 5.830 5,826 5.831 5,826 5,826 10,487 10,487 10,487 10,487 10,487 10,487 10,487 10,487 208 208 208 208 208 208 208 208 152 152 152 152 152 152 Finland 44,875 44,925 44,900 p End of period 44,875 China, Rep. of (Taiwan) Colombia 28,610 28,585 ^28^560 Denmark Egypt Australia Burma Canada 1,558 1,525 1,480 1,524 1,520 1,470 1,544 63 45 45 45 45 45 46 84 84 84 84 84 63 22 1,151 1,046 1,015 863 872 791 792 281 792 792 792 792 792 1,672 1,648 1,636 1,642 1,638 50 50 50 50 50 16 16 16 16 12 834 834 834 834 834 281 281 282 281 281 281 281 281 793 793 793 793 793 793 793 793 1,621 1,603 1,603 1,603 1,603 1,603 1,603 1,603 50 50 50 50 50 50 12 12 12 12 12 12 834 834 834 834 834 834 834 834 France Germany, Fed. Rep. of Greece India 110 106 115 193 193 144 144 21 23 25 79 39 4,437 4,436 4,436 4,436 4,459 132 132 132 132 133 264 264 264 264 264 142 142 142 142 142 156 156 156 156 156 17 17 17 17 17 4,468 4,468 4,468 4.468 4.469 4,462 4,469 4,469 133 133 133 133 133 133 133 133 264 264 264 264 142 142 142 142 142 142 142 142 156 156 156 156 156 156 156 156 17 17 17 17 17 17 17 17 139 93 93 93 93 85 85 84 45 45 45 45 29 49 4,706 5,238 5,234 3,877 3,547 3,532 3,523 4,410 4,292 4,228 4,539 4,079 3,980 4,077 1972--Aug Sept Oct Nov Dec 87 87 87 87 87 16 16 16 16 16 69 69 69 69 69 92 92 92 92 92 53 53 53 53 53 3,826 3,826 3,826 3,826 3,826 1973--Jan Feb Mar Apr May June July p Aug. 87 87 87 87 87 87 87 16 16 16 16 16 16 16 16 69 69 69 69 69 69 69 69 92 92 92 92 92 92 92 53 53 53 53 53 53 53 53 3,834 3,834 3,834 3,834 3.834 3,841 3.835 3,835 Malaysia Mexico Morocco Netherlands 158 109 166 165 169 176 184 21 21 21 21 21 21 21 1,756 1,730 1,711 1,697 1,720 1,787 1,909 188 23 23 23 23 23 23 23 23 23 23 23 328 329 338 356 413 532 679 52 67 136 122 86 86 87 182 193 193 288 288 288 322 68 68 68 85 85 85 85 2 1 31 66 63 48 58 3,131 3,130 3,130 3,130 3,130 801 801 801 801 801 94 94 94 94 94 350 350 350 350 350 93 93 93 93 93 63 63 63 63 63 3,134 3,134 3,134 3,134 3,134 3,134 3,134 3,134 801 801 801 801 802 802 802 802 94 94 94 94 350 350 350 350 350 350 350 350 93 93 93 93 93 93 93 93 63 63 63 63 63 63 63 For notes see end of table. 78 120 Libya 2,404 2,414 2,400 2,923 2,956 2,887 2,884 Ireland 146 130 144 158 158 131 131 97 108 107 114 89 64 64 Lebanon Iraq 281 243 243 243 243 243 243 35 26 31 31 26 17 14 Kuwait Iran 130 140 130 117 98 55 62 81 81 82 82 80 Japan Belgium Brazil 1965. 1966. 1967. 1968. 1969. 1970. 1971. Italy Austria 188 188 188 188 188 188 188 188 188 Norway 31 18 16 16 Pakistan 24 25 23 33 53 53 53 54 54 54 55 67 65 20 20 25 40 40 2,079 2,078 2,078 2,059 2,059 36 36 36 36 37 60 60 60 60 60 41 41 41 41 41 2,059 2,059 2,059 2,059 2,059 2,063 2,063 2,065 37 37 37 37 37 37 37 37 60 60 60 60 60 60 60 41 41 41 41 41 41 41 18 OCTOBER 1973 • GOLD RESERVES AND PRODUCTION A 95 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) End of period Bank for Intl. Settle-4 ments 155 146 140 133 165 162 148 401 401 401 403 403 384 391 19 21 22 50 51 52 51 -558 -424 -624 -349 -480 -282 310 800 800 800 800 800 169 169 169 169 133 425 425 425 425 425 56 56 56 56 56 276 267 267 255 218 810 810 810 810 810 810 133 133 133 133 133 133 133 133 425 425 425 425 425 425 425 425 56 56 56 56 56 56 56 56 218 214 214 214 199 205 204 205 96 92 92 92 92 92 82 116 102 97 97 117 126 130 2,265 1,940 1,291 1,474 1,471 1,349 775 3,158 3,158 3,158 3,158 3,158 89 89 89 89 89 122 122 122 122 136 3,162 3,162 3,162 3,162 3,162 3,162 3,162 3,162 89 89 89 89 89 89 89 89 136 136 136 136 136 136 136 136 South Africa 576 643 699 856 876 902 921 73 69 69 119 119 119 119 425 637 583 1,243 1,115 666 410 810 785 785 785 784 498 498 202 203 203 225 226 200 200 3,042 2,842 3,089 2,624 2,642 2,732 2,909 1972—Aug Sept Oct Nov Dec 1,021 1,021 1,021 1,021 1,021 129 129 129 129 129 580 601 636 662 681 541 541 541 541 541 217 217 217 217 217 1973—Jan Feb Mar Apr May June July?p Aug. 1,022 1,022 1,022 1,022 1,022 1,022 1,022 129 131 131 131 131 131 131 706 711 714 720 721 724 734 740 542 542 542 542 542 542 220 220 220 220 220 220 220 220 1965 1966 1967 1968 1969 1970 1971 Yugoslavia United Kingdom Saudi Arabia Sweden Switzerland Spain Venezuela Turk«y Portugal 1 Includes reported or estimated gold holdings of international and regional organizations, central banks and govts, of countries listed in this table, and also of a number not shown separately here, and gold to be distributed by the Tripartite Commission for the Restitution of Monetary Gold; excludes holdings of the U.S.S.R., other Eastern European countries, and China Mainland. The figures included for the Bank for International Settlements are the Bank's gold assets net of gold deposit liabilities. This procedure avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual countries. 2 Adjusted to include gold subscription payments to the IMF made by Thailand Uruguay some member countries in anticipation of increase in Fund quotas, except those matched by gold mitigation deposits with the United States and United Kingdom; adjustment is $270 million. 3 Excludes gold subscription payments made by some member countries in anticipation of increase in Fund quotas: for most of these countries the increased quotas became effective in Feb. 1966. 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. v NOTE.—For back figures and description of the data in this and the following tables on gold (except production), see "Gold," Section 14 of Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa World production i 1,445.0 1,410.0 1,420.0 1,420.0 1,450.0 North and South America South Africa Ghana Zaire United States Canada Mexico 1,080.8 24.0 26.7 25.4 24.8 24.6 24.4 5.6 5.4 5.9 6.0 6.2 6.0 63.1 53.4 53.9 60.1 63.5 52.3 54.3 114.6 103.7 94.1 89.1 84.3 79.1 77.2 7.5 5.8 6.2 6.3 6.9 5.3 1,068.7 1,088.0 1,090.7 1,128.0 1.098.7 1.109.8 94.4 94.1 93.9 94.2 91.5 84.3 Japan Philippines 9.8 9.0 8.4 7.7 7.1 6.6 7.1 4.2 3.4 4.0 3.4 3.7 4.1 4.0 19.4 23.7 21.5 23.7 24.8 27.0 32.2 15.8 17.2 18.5 20.0 21.1 22.2 23.0 .5 .6 .6 .5 .7 .5 .4 .3 .3 .3 .4 .3 2.8 2.8 3.1 2.7 5.2 5.2 4.9 3.7 4.0 3.7 6.2 6.1 6.3 6.2 6.8 6.4 5.6 1 Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. Other Nica- Colom- India ragua bia 6.4 5.9 6.3 6.3 6.0 6.3 88.2 86.5 88.5 86.6 86.0 87.6 88.3 Asia 2 Quarterly data. A 96 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ARTHUR F . BURNS, Chairman J. DEWEY DAANE GEORGE W . MITCHELL, A N D R E W F . BRIMMER JEFFREY M . B U C H E R J . C H A R L E S P A R T E E , Adviser to the Board ROBERT L . C A R D O N , Assistant to the Board J O H N J . H A R T , Special Assistant to the Board JOHN S . RIPPEY, OFFICE OF EXECUTIVE DIRECTOR D A V I D C . M E L N I C O F F , Deputy Executive Director D A N I E L M . D O Y L E , Deputy Director for Management GORDON B . G R I M W O O D , Assistant Director and Program Director for Contingency Planning W I L L I A M W . L A Y T O N , Director of Equal Employment Opportunity B R E N T O N C . L E A V I T T , Program Director for Banking Structure OFFICE OF THE SECRETARY CHESTER B . F E L D B E R G , Secretary T H E O D O R E E . A L L I S O N , Assistant Secretary M U R R A Y A L T M A N N , Assistant Secretary N O R M A N D R . V . B E R N A R D , Assistant Secretary A R T H U R L . B R O I D A , Assistant Secretary E L I Z A B E T H L . CARMICHAEL, Assistant Secretary LEGAL DIVISION THOMAS O ' C O N N E L L , General Counsel P A U L I N E B . H E L L E R , Assistant General Counsel J O H N N I C O L L , Assistant General Counsel ROBERT S . P L O T K I N , Assistant General Counsel B A L D W I N B . T U T T L E , Assistant General Counsel A N D R E W F . O E H M A N N , Special Assistant to the Vice Chairman JOHN E . SHEEHAN ROBERT C . H O L L A N D * ROBERT S O L O M O N , Adviser to the Board JOSEPH R . C O Y N E , Assistant to the Board FRANK O ' B R I E N , J R . , Special Assistant to the Board il Assistant to the Board DIVISION OF RESEARCH AND STATISTICS J . C H A R L E S P A R T E E , Director S T E P H E N H . A X I L R O D , Associate Director S A M U E L B . C H A S E , Associate Director L Y L E E . G R A M L E Y , Associate Director PETER M . K E I R , Adviser JAMES L . PIERCE, Adviser S T A N L E Y J . S I G E L , Adviser M U R R A Y S . W E R N I C K , Adviser K E N N E T H B . W I L L I A M S , Adviser JAMES B . E C K E R T , Associate Adviser ROBERT J . L A W R E N C E , Associate Adviser JOSEPH S . Z E I S E L , Associate Adviser E D W A R D C . E T T I N , Assistant Adviser E L E A N O R J . S T O C K W E L L , Assistant Adviser S T E P H E N P . T A Y L O R , Assistant Adviser L O U I S W E I N E R , Assistant Adviser L E V O N H . G A R A B E D I A N , Assistant Director DIVISION OF INTERNATIONAL FINANCE R A L P H C . B R Y A N T , Director J O H N E . R E Y N O L D S , Associate Director ROBERT F . G E M M I L L , Adviser R E E D J . IRVINE, Adviser S A M U E L I . K A T Z , Adviser B E R N A R D N O R W O O D , Adviser S A M U E L P I Z E R , Adviser G E O R G E B . H E N R Y , Associate Adviser H E L E N B . J U N Z , Associate Adviser NORMAN S . F I E L E K E , Assistant Adviser General Counsel DIVISION OF FEDERAL RESERVE BANK OPERATIONS R O N A L D G . B U R K E , Director E . M A U R I C E M C W H I R T E R , Associate Director W A L T E R A . A L T H A U S E N , Assistant Director D O N A L D G . B A R N E S , Assistant Director HARRY A . G U I N T E R , Assistant Director JAMES R . K U D L I N S K I , Assistant Director P . D . R I N G , Assistant Director On leave of absence. DIVISION OF SUPERVISION AND REGULATION FREDERIC S O L O M O N , Director B R E N T O N C . L E A V I T T , Deputy Director FREDERICK R . D A H L , Assistant Director J A C K M . E G E R T S O N , Assistant Director J A N E T O . H A R T , Assistant Director J O H N N . L Y O N , Assistant Director J O H N T . M C C L I N T O C K , Assistant Director T H O M A S A . S I D M A N , Assistant Director W I L L I A M W . W I L E S , Assistant Director GRIFFITH L . G A R W O O D , Adviser A 97 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION K E I T H D . E N G S T R O M , Director DIVISION OF ADMINISTRATIVE SERVICES W A L T E R W . K R E I M A N N , Director D O N A L D E . A N D E R S O N , Assistant Director J O H N D . S M I T H , Assistant Director OFFICE OF THE CONTROLLER J O H N K A K A L E C , Controller J O H N M . D E N K L E R , Assistant Controller DIVISION OF DATA PROCESSING J E R O L D E . S L O C U M , Director C H A R L E S L . H A M P T O N , Associate Director G L E N N L . C U M M I N S , Assistant Director H E N R Y W . M E E T Z E , Assistant Director W A R R E N N . M I N A M I , Assistant Director R I C H A R D S . W A T T , Assistant Director A 98 FEDERAL OPEN MARKET COMMITTEE ARTHUR F . BURNS, Chairman ALFRED HAYES, Vice Chairman JOHN J . BALLES J. DEWEY DAANE GEORGE W . A N D R E W F . BRIMMER DARRYL R . FRANCIS FRANK E . JEFFREY M . B U C H E R ROBERT C . H O L L A N D JOHN E . ROBERT P . MITCHELL MORRIS SHEEHAN MAYO Secretary Assistant Secretary B E R N A R D , Assistant Economist Finance) L E O N ALL C . A N D E R S E N , Associate Economist R A L P H C . B R Y A N T , Associate Economist ROBERT W . E I S E N M E N G E R , Associate Economist GEORGE G A R V Y , Associate Economist L Y L E E . G R A M L E Y , Associate Economist J O H N E . R E Y N O L D S , Associate Economist KARL A . S C H E L D , Associate Economist K E N T O . SIMS, Associate Economist ARTHUR L . BROIDA, *ROBERT SOLOMON, MURRAY ALTMANN, (International NORMAND R . V . Secretary General Counsel Deputy General Counsel JOHN N I C O L L , Assistant General Counsel J . C H A R L E S P A R T E E , Senior Economist S T E P H E N H . A X I L R O D , Economist (Domestic Finance) THOMAS J . O ' C O N N E L L , EDWARD G . G U Y , Manager, System Open Market Account Special Manager, System Open Market Account PETER D . S T E R N L I G H T , Deputy Manager, System Open Market Account Account D A V I D E . B O D N E R , Deputy Special Manager, System Open Market ALAN R . HOLMES, C H A R L E S A . COOMBS, FEDERAL ADVISORY COUNCIL G . MORRIS D O R R A N C E , J R . , THIRD FEDERAL RESERVE DISTRICT, HARRY H O O D BASSETT, SIXTH FEDERAL RESERVE DISTRICT, Vice JAMES F . E N G L I S H , J R . , FIRST FEDERAL DAVID H . M O R E Y , EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT CHESTER C . L I N D , N I N T H FEDERAL GABRIEL H A U G E , SECOND RESERVE DISTRICT FEDERAL RESERVE DISTRICT CLAIR E . F U L T Z , FOURTH FEDERAL MORRIS F . M I L L E R , T E N T H FEDERAL RESERVE DISTRICT RESERVE DISTRICT THOMAS I . STORRS, FIFTH FEDERAL L E W I S H . B O N D , ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT A L L E N P . S T U L T S , SEVENTH FEDERAL H . A . R O G E R S , TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT Secretary Assistant Secretary HERBERT V . P R O C H N O W , W I L L I A M J . KORSVIK, *On leave of absence. President President A 99 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Zip code Chairman Deputy Chairman President First Vice President Boston 02106 James S. Duesenberry Louis W. Cabot Frank E. Morris James A. Mcintosh New York 10045 Roswell L. Gilpatric Frank R. Milliken Rupert Warren Alfred Hayes Richard A. Debs Vice President in charge of branch A. A. Maclnnes, Jr. Buffalo 14240 Philadelphia 19101 John R. Coleman Edward J. Dwyer David P. Eastburn Mark H. Willes Cleveland 44101 Horace A. Shepard J. Ward Keener Graham E. Marx Robert E. Kirby Willis J. Winn Walter H. MacDonald Robert W. Lawson, Jr. Stuart Shumate John H. Fetting, Jr. Charles W. DeBell Robert P. Black John C. Wilson H. G. Pattillo David Mathews Henry Cragg James W. Long Fred Adams, Jr. Monroe Kimbrel Kyle K. Fossum William H. Franklin Peter B. Clark W.M. Defoe Robert P. Mayo Ernest T. Baughman Frederic M. Peirce Sam Cooper Roland R. Remmel William H. Stroube Alvin Huffman, Jr. Darryl R. Francis Eugene A. Leonard David M. Lilly Bruce B. Dayton William A. Cordinglev Bruce K. MacLaury M. H. Strothman, Jr. Robert W. Wagstaff Robert T. Person Maurice B. Mitchell Joseph H. Williams A. James Ebel George H. Clay John T. Boysen Chas. F. Jones John Lawrence Herbert M. Schwartz M. Steele Wright, Jr. Irving A. Mathews Philip E. Coldwell T. W. Plant O. Meredith Wilson Joseph F. Alibrandi Edward A. Sloan Frank Anderson Theodore C. Jacobsen Thomas T. Hirai John J. Balles John B. Williams Cincinnati Pittsburgh Richmond 45201 15230 23261 Baltimore 21203 Charlotte 28201 Culpeper Communications Center 22701 Atlanta Birmingham Jacksonville Nashville New Orleans Miami Office Chicago 30303 35202 32203 37203 70161 33152 60690 Detroit 48231 St. Louis 63166 Little Rock Louisville Memphis 72203 40201 38101 Minneapolis 55480 Helena 59601 Kansas City 64198 Denver Oklahoma City Omaha Dallas 80217 73125 68102 75222 El Paso Houston San Antonio 79999 77001 78295 San Francisco 94120 Los Angeles Portland Salt Lake City . Seattle 90051 97208 84110 98124 Fred O. Kiel Robert D. Duggan H. Lee Boatwright, III Jimmie R. Monhollon J. Gordon Dickerson, Jr. Hiram J. Honea^ Edward C. Rainey Jeffrey J. Wells George C. Guynn W. M. Davis William C. Conrad John F. Breen Donald L. Henry L. Terry Britt Howard L. Knous George C. Rankin William G. Evans Robert D. Hamilton Frederic W. Reed James L. Cauthen Carl H. Moore Gerald R. Kelly William M. Brown A. Grant Holman Paul W. Cavan A 100 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) ANNUAL REPORT FEDERAL RESERVE BULLETIN. Monthly. $ 6 . 0 0 per year or $ . 6 0 each in the United States and its p o s s e s s i o n s , B o l i v i a , Canada, Chile, C o l o m b i a , Costa R i c a , Cuba, D o m i n i c a n Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, M e x i c o , Nicaragua, Panama, Paraguay, Peru, El Salvador, U r u g u a y , and V e n e z u e l a ; 10 or more of same issue to o n e address, $ 5 . 0 0 per year or $ . 5 0 each. Elsew h e r e , $ 7 . 0 0 per year or $ . 7 0 e a c h . FEDERAL RESERVE CHART BOOK ON FINANCIAL AND B U S I N E S S STATISTICS. Monthly. Subscription includes o n e issue of Historical Chart B o o k . $ 6 . 0 0 per year or $ . 6 0 each in the United States and the countries listed above; 10 or more of same issue to o n e address, $ . 5 0 each. E l s e w h e r e , $ 7 . 0 0 per year or $ . 7 0 each. HISTORICAL CHART BOOK. Issued annually in Sept. 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THE PERFORMANCE OF BANK HOLDING COMPANIES. 1967. 2 9 pp. $ . 2 5 each; 10 or more to o n e address, $ . 2 0 each. THE FEDERAL FUNDS MARKET. 1959. I l l pp. $ 1 . 0 0 each; 10 or more to o n e address, $ . 8 5 e a c h . TRADING IN FEDERAL FUNDS. 1965. 116 pp. $ 1 . 0 0 each; 10 or more to o n e address, $ . 8 5 each. U.S. T R E A S U R Y A D V A N C E R E F U N D I N G , J U N E 1960-JULY 1964. 1966. 6 5 pp. $ . 5 0 e a c h ; 10 or more to o n e address, $ . 4 0 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 pp. $ 1 . 0 0 each; 10 or more to o n e address, $ . 8 5 e a c h . INTEREST RATE EXPECTATIONS: TESTS ON YIELD S P R E A D S AMONG SHORT-TERM GOVERNMENT SECURITIES. 1968. 8 3 pp. $ . 5 0 each; 10 or m o r e to o n e address, $ . 4 0 each. SURVEY OF FINANCIAL CHARACTERISTICS OF C O N S U M E R S . 1966. 166 pp. $ 1 . 0 0 each; 10 or more to o n e address, $ . 8 5 each. 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THE ECONOMETRICS OF PRICE DETERMINATION CONFERENCE, October 3 0 - 3 1 , 1 9 7 0 , W a s h i n g t o n , D . C . Oct. 1 9 7 2 , 3 9 7 pp. Cloth ed. $ 5 . 0 0 each; 10 or more to o n e address, $ 4 . 5 0 each. Paper ed. $ 4 . 0 0 each; 10 or m o r e to o n e address, $ 3 . 6 0 e a c h . FEDERAL RESERVE STAFF STUDY: WAYS TO MODE R A T E F L U C T U A T I O N S IN H O U S I N G C O N STRUCTION, D e c . 1 9 7 2 , 4 8 7 pp. $ 4 . 0 0 e a c h ; 10 or more to o n e address, $ 3 . 6 0 each. FEDERAL RESERVE BOARD PUBLICATIONS STAFF ECONOMIC STUDIES Studies and papers on economic and financial that are of general interest in the field of research. subjects economic Summaries only printed in the BULLETIN (Limited supply of mimeographed copies text available upon request for single of full copies) THE R E G U L A T I O N O F S H O R T - T E R M CAPITAL MOVEMENTS IN MAJOR COUNTRIES, by R o d n e y H . M i l l s , Jr. N o v . 1972. 53 pp. FEDERAL RESERVE DEFENSIVE BEHAVIOR AND THE RESERVE CAUSATION ARGUMENT, by R a y m o n d Lombra and R a y m o n d Torto. N o v . 1972. 15 pp. EXAMINATION OF THE MONEY STOCK CONTROL APPROACH OF BURGER, KALISH, AND BABB, by Fred J. Levin. March 1973. 18 pp. OBTAINING THE YIELD ON A STANDARD BOND FROM A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS, by James L. K i c h l i n e , P. Michael Laub, and G u y V . G. Stevens. M a y 1973. 3 0 pp. THE DETERMINANTS OF A DIRECT INVESTMENT OUTFLOW WITH EMPHASIS ON THE SUPPLY OF FUNDS, by Frederic Brill R u c k d e s c h e l . June 1973. 171 pp. MORTGAGE COMMITMENTS ON INCOME PROPERTIES: A NEW SERIES FOR 15 LIFE INSURANCE COMPANIES, 1951-70, by Robert M o o r e Fisher and Barbara Negri Opper. A u g . 1973. 83 pp. Printed in full in the BULLETIN (Staff Economic Studies shown in list below. Except for Staff Papers, Staff Economic Studies, and some leading articles, most of the articles reprinted do not exceed 12 pages.) REPRINTS ADJUSTMENT FOR SEASONAL VARIATION. 6 / 4 1 . SEASONAL FACTORS AFFECTING BANK RESERVES. 2/58. LIQUIDITY AND PUBLIC POLICY, Staff P a p e r by Stephen H. Axilrod. 1 0 / 6 1 . SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 7/62. INTEREST RATES AND MONETARY POLICY, Staff P a p e r by Stephen H. Axilrod. 9 / 6 2 . MEASURES OF MEMBER BANK RESERVES. 7 / 6 3 . REVISION OF BANK DEBITS AND DEPOSIT TURNOVER SERIES. 3 / 6 5 . RESEARCH ON BANKING STRUCTURE AND PER- FORMANCE, Staff Economic Study by Tynan Smith. 4 / 6 6 . A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with Frank E . Hopkins and Michael D . Sherman. 1 1 / 6 6 . REVISED SERIES ON COMMERCIAL AND INDUSTRIAL LOANS BY INDUSTRY. 2 / 6 7 . THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. 7 / 6 7 . A 101 INTEREST COST EFFECTS OF COMMERCIAL BANK U N D E R W R I T I N G O F MUNICIPAL R E V E N U E BONDS. 8 / 6 7 . U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. 4/68. FEDERAL FISCAL POLICY IN THE 1960's. 9 / 6 8 . B U S I N E S S FINANCING BY B U S I N E S S FINANCE COMPANIES. 1 0 / 6 8 . HOUSING PRODUCTION AND FINANCE. 3 / 6 9 . THE CHANNELS OF MONETARY POLICY, Staff E c o n o m i c S t u d y by Frank de L e e u w and Edward Gramlich. 6 / 6 9 . REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. 8 / 6 9 . EURO-DOLLARS: A CHANGING MARKET. 10/69. RECENT CHANGES IN STRUCTURE OF COMMERCIAL BANKING. 3 / 7 0 . S D R ' s IN FEDERAL RESERVE OPERATIONS AND STATISTICS. 5 / 7 0 . MEASURES OF SECURITY CREDIT. 1 2 / 7 0 . MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. 2 / 7 1 . BANK FINANCING OF MOBILE HOMES. 3 / 7 1 . INTEREST RATES, CREDIT FLOWS, AND MONETARY AGGREGATES SINCE 1964. 6 / 7 1 . TWO KEY ISSUES OF MONETARY POLICY. 6 / 7 1 . SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6 / 7 1 . BANK RATES ON B U S I N E S S LOANS—REVISED SERIES. 6 / 7 1 . INDUSTRIAL PRODUCTION—REVISED AND NEW MEASURES. 7 / 7 1 . REVISED MEASURES OF MANUFACTURING CAPACITY UTILIZATION. 1 0 / 7 1 . REVISION OF BANK CREDIT SERIES. 1 2 / 7 1 . PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. 1 2 / 7 1 . A S S E T S AND LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS. 2 / 7 2 . WAYS TO MODERATE FLUCTUATIONS IN THE CONSTRUCTION OF HOUSING. 3 / 7 2 . CONSTRUCTION LOANS AT COMMERCIAL BANKS. 6/72. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. 6 / 7 2 . CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. 6 / 7 2 . BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER—REVISED SERIES. 7 / 7 2 . RECENT REGULATORY CHANGES IN RESERVE REQUIREMENTS AND CHECK COLLECTION. 7 / 7 2 . YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 1 0 / 7 2 . REVISION OF CONSUMER CREDIT STATISTICS. 10/72. SURVEY OF FINANCE COMPANIES, 1970. 1 1 / 7 2 . ONE-BANK HOLDING COMPANIES BEFORE THE 1 9 7 0 AMENDMENTS. 1 2 / 7 2 . EVOLUTION OF THE PAYMENTS MECHANISM. 1 2 / 7 2 . REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANK R E S E R V E S AND DEPOSITS. 2 / 7 3 . DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. 4/73. STATE AND LOCAL BORROWING ANTICIPATIONS AND REALIZATIONS. 4 / 7 3 . A 102 FEDERAL RESERVE BULLETIN • OCTOBER 1973 YIELDS ON RECENTLY OFFERED CORPORATE BONDS. 5 / 7 3 . FEDERAL FISCAL POLICY, 1965-72. 6 / 7 3 . SOME PROBLEMS OF CENTRAL BANKING. 6 / 7 3 . OPEN MARKET OPERATIONS IN 1972. 6 / 7 3 . CHANGES IN BANK LENDING PRACTICES, 1972. 7 / 7 3 . TREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS, INTERIM REPORT. 7 / 7 3 . BANKING AND MONETARY STATISTICS, 1972. Selected series of banking and monetary statistics for 1972 o n l y . 3 / 7 3 and 7 / 7 3 . FINANCIAL D E V E L O P M E N T S IN THE S E C O N D QUARTER OF 1973. 8 / 7 3 . CAPACITY UTILIZATION IN MAJOR MATERIALS INDUSTRIES. 8 / 7 3 . TREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS. 9 / 7 3 . CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMERCIAL BANKS. 9 / 7 3 . RATES ON CONSUMER INSTALMENT LOANS. 9 / 7 3 . BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. 10/73. CHANGES IN TIME AND SAVINGS DEPOSITS, APRILJULY 1973. 10/73. NEW SERIES FOR LARGE MANUFACTURING CORPORATIONS. 1 0 / 7 3 . INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers', 11, 31, 33 Agricultural loans of commercial banks, 22, 24 Arbitrage, 93 Assets and liabilities (See also Foreigners): Banks, by classes, 18, 22, 23, 24, 37 Federal Reserve Banks, 12 Nonfinancial corporations, current, 48 Automobiles: Consumer instalment credit, 54, 55, 56 Production index, 58, 59 Bank credit proxy, 17 Bankers' balances, 23, 26 {See also Foreigners, claims on, and liabilities to) Banks for cooperatives, 38 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Yields and prices, 34, 35 Branch banks: Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Brokerage balances, 85 Business expenditures on new plant and equipment, 48 Business indexes, 62 Business loans (See Commercial and industrial loans) Capacity utilization, 62 Capital accounts: Banks, by classes, 18, 23, 28 Federal Reserve Banks, 12, 13 Central banks, 92, 94 Certificates of deposit, 28 Coins, circulation, 15 Commercial and industrial loans: Commercial banks, 17, 22, 31 Weekly reporting banks, 24, 29 Commercial banks: Assets and liabilities, 17, 18, 22, 23, 24 Consumer loans held, by type, 55 Deposits at, for payment of personal loans, 30 Loans sold outright, 31 Number, by classes, 18 Real estate mortgages held, by type, 50 Commercial paper, 31, 33 Condition statements (See Assets and liabilities) Construction, 62, 63 Consumer credit: Instalment credit, 54, 55, 56, 57 Noninstalment credit, by holder, 55 Consumer price indexes, 62, 66 Consumption expenditures, 68, 69 Corporations: Profits, taxes, and dividends, 48 Security issues, 46, 47 Security yields and prices, 34, 35 Cost of living (See Consumer price indexes) Currency and coin, 5, 9, 23 Currency in circulation, 5, 15, 16 Customer credit, stock market, 36 Debits to deposit accounts, 14 Debt (See specific types of debt or securities) Demand deposits: Adjusted, commercial banks, 14, 17, 23 Banks, by classes, 18, 23, 27 Demand deposits—Continued Ownership by individuals, partnerships, and corporations, 30 Subject to reserve requirements, 17 Turnover, 14 Deposits (See also specific types of deposits): Accumulated at commercial banks for payment of personal loans, 30 Banks, by classes, 18, 23, 27, 37 Euro-dollars, 88 Federal Reserve Banks, 12, 13, 88 Postal savings, 23 Subject to reserve requirements, 17 Discount rates (See Interest rates) Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 48 Dollar assets, foreign, 75, 81 Earnings and hours, manufacturing industries, 65 Employment, 62, 64, 65 Euro-dollar deposits in foreign branches of U.S. banks, 88 Farm mortgage loans, 49, 50 Federal agency obligations, 11, 12, 13, 14 Federal finance: Receipts and outlays, 40, 41 Treasury operating balance, 40 Federal funds, 7, 22, 24, 28, 33 Federal home loan banks, 38, 39, 51 Federal Home Loan Mortgage Corporation, 53 Federal Housing Administration, 49, 50, 51, 52, 53 Federal intermediate credit banks, 38, 39 Federal land banks, 38, 39 Federal National Mortgage Assn., 38, 39, 52 Federal Reserve Banks: Condition statement, 12 U.S. Govt, securities held, 4, 12, 14, 42, 43 Federal Reserve credit, 4, 6, 12, 14 Federal Reserve notes, 12, 13, 15 Federally sponsored credit agencies, 38, 39 Finance companies: Loans, 24, 54, 55, 57 Paper, 31, 33 Financial institutions, loans to, 22, 24 Float, 4 Flow of funds, 70 Foreign: Currency operations, 11, 12, 13, 75, 81 Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Exchange rates, 91 Trade, 73 Foreigners: Claims on, 82, 83, 88, 89, 90 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Gold: Certificates, 12, 13, 15 Earmarked, 88 Net purchases by United States, 74 Production, 95 Reserves of central banks and govts., 94 Stock, 4, 75 Government National Mortgage Assn., 52 Gross national product, 68, 69 A 104 Hours and earnings, manufacturing industries, 65 Housing permits, 62 Housing starts, 63 Income, national and personal, 68, 69 Industrial production index, 58-61, 62 Instalment loans, 54, 55, 56, 57 Insurance companies, 37, 42, 43, 50, 51 Insured commercial banks, 20, 22, 30 Interbank deposits, 18, 23 Interest rates: Business loans by banks, 32 Federal Reserve Banks, 8 Foreign countries, 92, 93 Money market rates, 33 Mortgage yields, 51, 52, 53 Prime rate, commercial banks, 32 Time and savings deposits, maximum rates, 10 Yields, bond and stock, 34 International capital transactions of U.S., 76-90 International institutions, 74, 75, 92, 94 Inventories, 68 Investment companies, issues and assets, 47 Investments (See also specific types of investments): Banks, by classes, 18, 22, 25, 26, 37 Commercial banks, 17 Federal Reserve Banks, 12, 14 Life insurance companies, 37 Savings and loan assns., 38 Labor force, 64 Life insurance companies (See Insurance companies) Loans (See also specific types of loans): Banks, by classes, 18, 22, 24, 37 Commercial banks, 17, 18, 22, 24, 29, 31, 32 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 Insurance companies, 37, 50, 51 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Savings and loan assns., 38, 51 Manufacturers: Capacity utilization, 62 Production index, 59, 62 Margin requirements, 10 Member banks: Assets and liabilities, by classes, 18, 22 Borrowings at Federal Reserve Banks, 6, 12 Number, by classes, 18 Reserve position, basic, 7 Reserve requirements, 9 Reserves and related items, 4, 6, 17 Mining, production index, 59, 61 Mobile home shipments, 63 Money market rates (See Interest rates) Money stock and related data, 16 Mortgages (See Real estate loans and Residential mortgage loans) Mutual funds (See Investment companies) Mutual savings banks, 27, 37, 42, 43, 50 National banks, 20, 30 National defense expenditures, 41, 68 National income, 68, 69 Nonmember banks, 20, 22, 23, 30 Open market transactions, 11 Payrolls, manufacturing index, 62 Personal income, 69 Postal savings, 23 Prices: Consumer and wholesale commodity, 62, 66 Security, 35 Prime rate, commercial banks, 32 FEDERAL RESERVE BULLETIN • OCTOBER 1973 Production, 58-61, 62 Profits, corporate, 48 Real estate loans: Banks, by classes, 22, 25, 37, 50 Delinquency rates on home mortgages, 53 Mortgage yields, 35, 51, 52, 53 Type of holder and property mortgaged, 49-53 Reserve position, basic, member banks, 7 Reserve requirements, member banks, 9 Reserves: Central banks and govts., 94 Commercial banks, 23, 26, 28 Federal Reserve Banks, 12, 13 Member banks, 5, 6, 17, 23 U.S. reserve assets, 75 Residential mortgage loans, 35, 49, 50, 51, 52, 53 Retail credit, 54 Retail sales, 62 Saving: Flow of funds series, 70 National income series, 68 Savings and loan assns., 38, 43, 51 Savings deposits (See Time deposits) Savings institutions, principal assets, 37, 38 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 38, 39 International transactions, 84, 85 New issues, 45, 46, 47 Silver coin, 15 Special Drawing Rights, 4, 12, 13, 72, 75 State and local govts.: Deposits, 23, 27 Holdings of U.S. Govt, securities, 42, 43 New security issues, 45, 46 Ownership of securities of, 22, 26, 37 Yields and prices of securities, 34, 35 State member banks, 20, 30 Stock market credit, 36 Stocks: New issues, 46, 47 Yields and prices, 34, 35 Tax receipts, Federal, 41 Time deposits, 10, 17, 18, 23, 27 Treasury cash, Treasury currency, 4, 5, 15 Treasury deposits, 5, 12, 13, 40 Treasury operating balance, 40 Unemployment, 64 U.S. balance of payments, 72 U.S. Govt, balances: Commercial bank holdings, 23, 27 Member bank holdings, 17 Treasury deposits at Reserve Banks, 5, 12, 13, 40 U.S. Govt, securities: Bank holdings, 18, 22, 25, 37, 42, 43 Dealer transactions, positions, and financing, 44 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 Foreign and international holdings, 12, 81, 84, 88 International transactions, 81, 84 New issues, gross proceeds, 46 Open market transactions, 11 Outstanding, by type of security, 42, 43, 45 Ownership, 42, 43 Yields and prices, 34, 35 United States notes, 15 Utilities, production index, 59, 61 Veterans Administration, 49, 50, 51, 52, 53 Weekly reporting banks, 24 Yields (See Interest rates) BOUNDARIES OF FEDERAL RESERVE DISTRICTS A N D THEIR BRANCH TERRITORIES (o C? THE FEDERAL RESERVE SYSTEM Q HAWAII Q) • © Legend Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Federal Reserve Bank Facilities a