Full text of Federal Reserve Bulletin : October 1973

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Federal Reserve

Bulletin

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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 ,
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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.
Subscription to monthly chart book includes o n e
issue. $ . 6 0 each in the United States and countries
listed a b o v e ; 10 or more to o n e address, $ . 5 0 each.
E l s e w h e r e , $ . 7 0 each.
THE FEDERAL RESERVE ACT, as a m e n d e d through
D e c e m b e r 1 9 7 1 , with an appendix containing provisions of certain other statutes affecting the Federal
Reserve S y s t e m . 2 5 2 pp. $ 1 . 2 5 .
REGULATIONS OF THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM.
PUBLISHED INTERPRETATIONS OF THE BOARD OF
GOVERNORS, as of D e c e m b e r 3 1 , 1972. $ 2 . 5 0 .
FLOW OF FUNDS IN THE UNITED STATES, 1939-53.
1955. 3 9 0 pp. $ 2 . 7 5 .
DEBITS AND CLEARING STATISTICS AND THEIR USE.
1959. 144 pp. $ 1 . 0 0 each; 10 or more to o n e

address $

CBCII

SUPPLEMENT TO BANKING AND MONETARY STATISTICS. S e c . 1. Banks and the Monetary S y s t e m .
1962. 35 pp. $ . 3 5 . S e c . 2 . M e m b e r Banks. 1967.
5 9 pp. $ . 5 0 . S e c . 5 . Bank Debits. 1966. 36 pp.
$ . 3 5 . S e c . 6 . Bank I n c o m e . 1966. 2 9 pp. $ . 3 5 .
S e c . 9 . Federal R e s e r v e Banks. 1965. 3 6 pp. $ . 3 5 .
S e c . 10. M e m b e r Bank R e s e r v e s and Related Items.
1962. 6 4 pp. $ . 5 0 . S e c . 1 1 . Currency. 1963. 11
pp. $ . 3 5 . S e c . 12. M o n e y Rates and Securities
Markets. 1966. 182 pp. $ . 6 5 . S e c . 1 4 . Gold. 1962.
2 4 pp. $ . 3 5 . S e c . 15. International Finance. 1962.
9 2 pp. $ . 6 5 . S e c . 1 6 ( N e w ) . Consumer Credit.
1965. 103 pp. $ . 6 5 .
INDUSTRIAL PRODUCTION—1971 edition. 3 8 3 pp.
$ 4 . 0 0 each; 10 or more to o n e address, $ 3 . 5 0 each.
BANK MERGERS & THE REGULATORY AGENCIES:
APPLICATION OF THE BANK MERGER ACT OF
1960. 1964. 2 6 0 pp. $ 1 . 0 0 each; 10 or more to
o n e address, $ . 8 5 each.




BANKING MARKET STRUCTURE & PERFORMANCE IN
METROPOLITAN AREAS: A STATISTICAL STUDY
OF FACTORS AFFECTING RATES ON BANK
LOANS. 1965. 7 3 pp. $ . 5 0 each; 10 or m o r e to
o n e address, $ . 4 0 e a c h .
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.
SURVEY OF CHANGES IN FAMILY FINANCES. 1968.
3 2 1 pp. $ 1 . 0 0 each; 10 or more to o n e address,
$ . 8 5 each.
REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY OF THE U.S. GOVERNMENT S E CURITIES MARKET. 1969. 4 8 pp. $ . 2 5 each; 10
or more to o n e address, $ . 2 0 each.
JOINT TREASURY-FEDERAL RESERVE STUDY OF
THE G O V E R N M E N T S E C U R I T I E S MARKET:
STAFF STUDIES—PART 1 . 1 9 7 0 . 86 pp. $ . 5 0 e a c h ;
10 or more to o n e address, $ . 4 0 each. P A R T 2.
1971. 153 pp. $ 1 . 0 0 each; 10 or more to o n e

£iddr6ss $ 85 c^cli
OPEN MARKET POLICIES AND OPERATING PROCED U R E S — S T A F F STUDIES. 1971. 2 1 8 pp. $ 2 . 0 0 ;
10 or more to o n e address, $ 1 . 7 5 each.
REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHANISM, V o l . 1. 1971. 2 7 6 pp. V o l .
2. 1971. 173 pp. V o l . 3. 1972. 2 2 0 pp. E a c h
v o l u m e $ 3 . 0 0 each; 10 or more to o n e address,
$ 2 . 5 0 each.
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.
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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

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THE FEDERAL RESERVE SYSTEM
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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

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